Document:

Exhibit 10.1

 

CONFIDENTIAL
TREATMENT REQUESTED.

INFORMATION
FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN

REQUESTED
IS OMITTED AND MARKED WITH “[*******]” OR OTHERWISE

CLEARLY
INDICATED. AN UNREDACTED VERSION OF THIS DOCUMENT HAS

ALSO
BEEN PROVIDED TO THE SECURITIES AND EXCHANGE COMMISSION.

 

BINDING TERM SHEET

 

The intent of this term sheet (the “Term
Sheet”) is for the Parties to agree on the principal terms in relation to the license and distribution within the Territory
by L. Molteni & C. dei Fratelli Alitti Società di Esercizio S.p.A. of Probuphine, a pharmaceutical product developed
by Titan Pharmaceuticals Inc.. This Term Sheet and any attachment hereto constitutes a binding obligation on both Parties to enter
into, execute and deliver a definitive agreement containing the essential elements set forth herein, as well as any additional
agreement necessary in relation thereto by February 15, 2018 or such later date as may be mutually agreed in writing by the Parties.

 

	
        1. Parties

         
	
        L. Molteni & C. dei F.lli Alitti
        Società di Esercizio S.p.A., a company organized under the laws of Italy, with registered office at Strada Statale 67,
        Frazione Granatieri, Scandicci (Florence), Italy, or any of its affiliates (“Molteni”); and Titan
        Pharmaceuticals, Inc., a company organized under the laws of United States, with registered office at 400 Oyster Point Blvd.,
        Suite 505, South San Francisco CA 94080-1921, (“Titan” and, together with Molteni, the
        “Parties”).

         

	2. Definitions	
        In addition to the other terms
        defined herein, the following capitalized terms shall have the meaning set forth below:

        “Additional Services”
        means, in relation to the Product, the Release, the kit assembly, the secondary packaging (including serialization) and DEA reporting;

        “Braeburn License”
        means the License Agreement by and between Titan and Braeburn Pharmaceuticals, Inc., dated December 14, 2012 as amended to date.

        “Competitor Product”
        means any pharmaceutical product containing buprenorphine for the treatment of the Initial Indication that entails continuous delivery
        for more than 10 days.

        “Dossier”
        means the complete pharmaceutical registration dossier prepared by Titan in E.U. format suitable to obtain the Marketing Authorization(s)
        (as defined below) for the Product (as defined below) for the Initial Indication (as defined below) in the Territory (as defined
        below), including all scientific and technical data and documents regarding the Product for the Initial Indication, in all its
        available strengths and presentations;

        “DPT Agreement”
        means the Manufacturing Agreement by and between DPT Laboratories, Ltd. and Titan Pharmaceuticals, Inc. dated August 2, 2013;

        “Initial Indication”
        means the use of the Product for the treatment of opiate or opioid addiction.

        “Key Country”
        shall mean any of the following: United Kingdom, Italy, Germany, or France;

        “Marketing Authorization”
        means the required national registration and pricing approval for the Product for the Initial Indication issued by the relevant
        regulatory authorities in the Territory;

        “Net Sales” means the
        gross Ex-factory sales amount invoiced by Molteni and/or its appointed distributor(s) within the Territory for the sale of the
        Product, reduced by: (i) discounts actually granted and returns credited; (ii) payments by any distributor to Molteni other than
        for the final sale of the Product to the end customer; and (iii) sales taxes, value-added taxes, excise taxes, tariffs and duties,
        including government compulsory deduction on sales (i.e. payback mechanism) and other rebates and taxes directly related
        to the sale of the Product in the Territory, up to a limit of 20% (twenty percent) of the gross Ex-factory sales amount;

 

     

     

    

 

	 	
        “Product” means the
        subdermal implant containing buprenorphine and excipient ethylene vinyl acetate copolymer developed and/or provided by Titan (together
        with the relevant applicator);

        “Release” means the
        quality control assessment, upon receipt from Titan, and the European release activities to be performed on the Semi-Finished Products
        by Molteni as required by applicable laws and regulations in order to market the Product for the Initial Indication within the
        Territory;

        “Semi-Finished Products”
        means the Product, including all pharmaceutical components, applicator and related technology, prior to the performance by Molteni
        of the Additional Services;

        “Subsequent Indication”
        means the use of the Product for any indication other than the Initial Indication.

        “Territory”
        means the European Union, Switzerland, Norway, Iceland, Liechtenstein, Bosnia, Serbia, Montenegro, Macedonia and Albania (United
        Kingdom and Northern Ireland shall continue to be deemed as Territory also in the event they no longer belong to the European Union);

        “Titan IP”
        means the Titan Patents, the Trademark and all other related know-how and proprietary rights related to the Product.

        “Titan Patents”
        means all patent rights in the Territory owned and/or controlled by Titan during the term of this Agreement that claim or would
        be necessary for making, having made, using, offering for sale, selling or importing of the Products, including the patents listed
        on Schedule A hereto, as well as all continuations, continuations-in-part, divisionals, extensions and foreign equivalents thereof.

        “Trademark”
        means the trademark Probuphine® registered in the name of Titan in the European Union and Switzerland and any and all common
        law rights or other rights to this trademark in the Territory.

         

	3. Subject Matter	
        The Parties intend to enter into a license
        and distribution agreement (the “Agreement”) pursuant to which (i) Titan shall grant Molteni an exclusive license
        (even as to Titan and its affiliates), with the right to sublicense pursuant to the terms herein, to the Titan IP (A) to import,
        market, promote, distribute, offer for sale, sell or otherwise make use of the Product in the Territory and (B) to make or have
        made the Product for sale, distribution and/or use in the Territory, (ii) Titan shall transfer the Marketing Authorization Application
        (the “MAA”) to Molteni effective upon approval by the European Medicines Agency (the “EMA”) in accordance
        with EMA protocols, (iii) Titan shall supply the Semi-Finished Product to Molteni, (iv) Molteni shall perform the Additional Services
        and (v) Molteni shall, subject to the obligations of the Parties and the terms set forth herein, directly and/or indirectly distribute
        the Products within the Territory under the Trademark. In particular:

         

 

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        (a)    Registration.
        Titan shall carry out all the activities necessary to obtain approval of the MAA, including being responsible for the relevant
        submission with the EMA under a centralized procedure. Prior to the transfer of the MAA to Molteni and upon Molteni approval (the
        “MAA Transfer”), the relevant registration and application costs associated with obtaining EMA approval will
        be borne by Titan, with Molteni being responsible for any remaining costs. Prior to the MAA Transfer, Molteni shall reasonably
        assist Titan throughout the registration process with the EMA. It remains understood that if new clinical trials and data (such
        as pre-approval and post authorizations studies) are required to obtain regulatory approvals in the Territory (e.g. if the
        Dossier results are incomplete or if the regulatory authorities claim any integration thereof), Titan shall have no obligation
        to conduct or fund such trials and/or generate these data unless such trials are performed by or on behalf of Titan, in which case
        Titan shall provide such data to Molteni, and provided, however, that Titan shall remain obligated to provide any such trials and/or
        data to which Titan has rights pursuant to the Braeburn License and/or with any subsequent licensee. Subject to the requirements
        set forth in this section and Section 3(g) herein, Molteni shall have no obligation to conduct or fund trials and/or generate data.

         

        (b)    Label.
        The label pursued with the EMA shall permit Molteni to market the Product in the Territory for use in a broad population of opioid
        dependents, independent of their abuse history and their pre-treatment status with buprenorphine without restrictions on retreatment
        or implantation site in accordance with the draft label provided by Titan (the “Label”).

         

        (c)    Dossier.
        Upon execution of the Agreement, Titan shall provide Molteni with a complete copy of the Dossier. During the term of the Agreement,
        Titan shall provide Molteni free of charge with any updates of the same Dossier in e-CTD format, as soon as available to Titan.
        The parties agree that any changes, updates or additions to the Dossier made pursuant to or in furtherance of this Agreement shall
        belong to Molteni.

         

        (d)    Clinical
        / Pharmacoeconomic Data. Titan shall provide Molteni with full access to all existing and future clinical / pharmacoeconomic
        data and/or trials regarding the Product directly or indirectly generated/performed by, in the possession of, or accessible by
        Titan, including without limitation pursuant to the Braeburn License and/or from any subsequent licensee, as soon as available
        to it, it being understood that Titan has no obligation to conduct or fund any future trials or generate any future data.

         

        (e)    Local
        Medical & Public Affairs. Following the MAA Transfer, local medical affairs and public affairs activities shall be Molteni’s
        responsibility. Titan shall be regularly involved and consulted about all local clinical trials and it retains a prohibition right
        for all label-modifying trials or trials that may have an impact on other geographies possibly initiated by Molteni.

         

        (f)     Premarketing
        and Marketing Responsibilities. Molteni will manage, in its discretion and in line with the industry standard within the Territory,
        all local marketing and sales activities. Molteni will set local prices in each country within the Territory according to the market
        conditions. Titan will reasonably assist Molteni in all premarketing activities regarding the Product, including initial training,
        KOLs advisory board management, and scientific presentations at main congresses, with the possible participation of US based KOLs.
        The documented third-party costs of such activities shall be borne by Molteni. Molteni shall be responsible for the conduct and
        cost of any Health Technology Assessment or other studies required for pricing and reimbursement purposes.

        

 

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        (g)    Commercial
        Launch. Molteni shall (i) commence the submission process for obtaining Marketing Authorization in at least one of the Key
        Countries within 60 days and the remaining Key Countries within 180 days after receipt of the MAA and use its commercially reasonable
        efforts to obtain such Marketing Authorizations as soon as practicable thereafter and (ii) shall use commercially reasonable efforts
        to effect the commercial launch of the Product for the Initial Indication in the each Key Country within four months following
        the date of release of the relevant Marketing Authorization.

         

	4. Manufacturing and Supply	
        (a)          Price.
        Titan will manufacture and deliver the Semi-Finished Products to Molteni and Molteni will purchase the Semi-Finished Products exclusively
        from Titan subject to the terms herein. As consideration for the supply of the Semi-Finished Product in the Territory, Molteni
        shall pay to Titan the price specified in Schedule B hereto (the “Purchase Price”). The Purchase Price shall
        remain fixed and binding through December 31, 2019. Thereafter, any variation of the Purchase Price shall be adequately documented
        by Titan and provided to Molteni and, in any event, cannot exceed the annual cost increases incurred by Titan (i) under the DPT
        Agreement and (ii) associated with the acquisition of the API.

         

        (b)          Delivery.
        Titan shall deliver the Semi-Finished Products at Titan’s manufacturing facility to the custody of the carrier provided by
        Molteni, Free Carrier (FCA) (Incoterms 2010). Costs for the delivery of the Semi-Finished Products from Titan to Molteni shall
        be borne by Molteni.

         

        (c)          Analytical
        Methods. In order to facilitate the Release of the Product in the Territory, Titan shall provide to Molteni all analytical
        methods regarding the quality assessment of the Product (including the specification of the relevant laboratory equipment), as
        requested by applicable European regulators or as reasonably requested by Molteni to facilitate the Release.

         

        (d)          Inspections
        and Defects. Either prior to delivery from Titan’s manufacturing facilities, or once the Semi-Finished Products are delivered
        to Molteni’s warehouse in Scandicci - Florence, at Molteni’s discretion, Molteni will perform a visual incoming inspection,
        as well as any other quality control activities necessary to Release the Product. Molteni shall have the right to reject any batch
        containing defective Product or parts thereof.

         

        (e)          Regulatory
Support and Audits. Titan is committed to meeting the EU requirements for commercialization of the Product in the Territory
and shall use all commercially reasonable efforts to provide Molteni and/or any competent authorities full access to documents
and information regarding the manufacturing of the Product and it shall allow inspections of all facilities involved in the manufacturing
process of the Product and/or the API and to aid Molteni in obtaining all necessary licensing and regulatory approval. 

 

    	 	4	 

     

    

 

	 	
        (f)          Third-Party
        Manufacturing. Molteni shall be entitled, in its sole discretion, to include into the Dossier and register Molteni
        itself or another European contract manufacturing organization as an additional manufacturing site for the Product at
        any time: (i) following the fifth anniversary of the execution of the Agreement, (ii) if Titan fails to meet its obligations
        to timely or completely fill at least 90% of Molteni’s purchase orders for a period of 90 days, or (iii) if the
        Purchase Price increases by more than maximum increase allowed as calculated pursuant to Section 2.7(c) of the DPT Agreement,
        then, in each case, Molteni shall be released from any exclusivity obligation to order Product from Titan. For the sake
        of clarity, Titan shall be obligated to provide Semi-Finished Product to Molteni at Molteni’s request for the term
        of this Agreement.

         

	5. Steering Committee	
        The Parties shall set up a special
        committee (the “Steering Committee”) composed of qualified individuals from both companies. The Steering Committee
        shall meet on a quarterly basis prior to the registration of the Product and on a six month basis following such registration.
        The Steering Committee shall meet to (i) share all the clinical information relating to the Products, including those related to
        the pharmacovigilance activities, and any new planned or ongoing clinical trial relating to the Product, (ii) review sales performance,
        (iii) exchange best practices among the different geographic areas, (iv) share annual sales targets, (v) review/approve publication
        strategies, press releases and conference participations by Key Opinion Leaders, and (vi) share plans for additional launches within
        the Territory within six months following execution of the Agreement, which plans will be subject to change in Molteni’s
        reasonable discretion. Molteni may, at its discretion, invite Product licensees to participate as non-members of the Steering Committee.

         

	
        6. New Therapeutics Indications

         
	
        In the event that the Product is approved
        for a Subsequent Indication in any part of the Territory, Molteni shall make the milestone payment to Titan set forth below and
        shall have the ability to market and promote the Product for such Subsequent Indication in relevant part of the Territory under
        the same terms and conditions set forth in the Agreement, including pursuant to the same exclusive licenses set forth herein.

         

	7. Exclusivity/Non Competition	
        For the five year period following issuance
        of the MAA, Molteni shall not market any Competitor Product in the Territory. Thereafter, if Molteni markets any Competitor Products
        in the Territory, it shall pay Titan the royalties set forth below. During the term of the Agreement, Titan shall not enter into
        any additional arrangements relating to and shall not, directly or indirectly, commercialize the Product in the Territory. For
        the sake of clarity, Titan shall not market or offer for sale, directly or indirectly, any Competitor Product in the Territory
        during the term of this Agreement.

         

	
        8. Consideration

         
	
        As consideration for the granting of the
        license of the Product in the Territory, Molteni shall pay to Titan the following amounts:

         

 

    	 	5	 

     

    

 

	 	
        (a)         Milestones
Payments.

         

        (i)€ 2,000,000.00 (Euros
        two million) non-refundable, upon signing of the Agreement;

        (ii)€ 1,000,000.00 (Euros
        one million) upon release of a written positive scientific advise by the Committee for Medicinal Products for Human Use (CHMP)
        on the Product for the Initial Indication with the desired Label;

        (iii)€ 1,000,000.00 (Euros
        one million) upon issuance by the EMA of the Marketing Authorization;

        (iv)€ [*************************]
        upon approval of the reimbursement price in each of the following countries: Italy, German, United Kingdom and France for an aggregate
        of € 2,000,000.00 (Euros two million);

        (v)€ [*************************]
        upon issuance by the EMA of a Marketing Authorization of the Product for each Subsequent Indication, provided that marketing the
        Product for the Subsequent Indication would, in the absence of the license set forth herein, infringe valid claims of the Titan
        Patents. For the sake of clarity, such milestone payment shall be due and payable by Molteni one time for each Subsequent Indication.

         

        If the Marketing Authorization under section
        (c) is not obtained on or prior to September 30, 2019, then the milestone payments provided under sections (c) and (d) shall be
        reduced by 50% (fifty percent).

         

        (b)       Royalty
        Payments.

        Molteni shall pay to Titan the following
        annual royalties on Net Sales of Product in the Territory or Additional Territory, as applicable in each tier (e.g., € [************]
        total Net Sale of Product in the Territory shall be subject to royalty payments equal to [*************************]):

         

 

	 	 	From (€)    	To (€)    	Royalty (%) on Net Sales
	 	TIER 1    	[************]  	[************]	[************]
	 	TIER 2	[************]	[************]	[************]
	 	TIER 3	[************]	[************]	[************]
	 	TIER 4	[************]	[************]	[************]  
	 	TIER 5	[************]	[************]	[************]  
	 	TIER 6	[************]	[************]	[************]

 

	 	
        Molteni shall pay Titan a royalty of 3%
        on Net Sales of any Competitor Product sold by or on behalf of Molteni in the Territory or Additional Territory, as applicable.

        If the patent currently existing for the
        Product and/or any of the material claims therein ceases to be valid as a result of litigation on an alleged infringement of applicable
        IP, then Molteni shall cease to pay any royalties.

         

	

9. Sublicensing	
        Titan shall have the right to
approve any sublicense by Molteni other than to an affiliate, which approval shall not be unreasonably withheld. 

 

    	 	6	 

     

    

 

	
        10. Other territories

         

         
	
        Molteni shall have the right, exercisable
        at any time on or prior to June 30, 2019, to extend the Territory to the following additional groups of countries (which, upon
        exercise of this right, will each be an “Additional Territory”):

        GROUP A: Middle East / North Africa;

        GROUP B: Former CIS (Russia,
        Ukraine, Belarus, Armenia, Georgia, Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Uzbekistan), under the same
        terms and conditions set forth in relation to the Territory by paying to Titan an additional milestone of € 1,000,000.00
        (Euros one million) per group. For the sake of clarity, no additional milestone payments would be due as to any Additional
        Territory should Molteni exercise its right in this section.

         

	11. IP Protection	
        Titan shall be responsible for the initiation
        and prosecution of any legal action in connection with any infringement of applicable IP laws relating to the Product and the Trademark.
        Titan shall manage any litigation and bear any relevant cost. Under no circumstance shall Molteni be held liable for damages payable
        by Titan to any third party in relation thereto and Titan shall indemnify and hold Molteni harmless with respect thereto. Titan
        shall, at its expense, diligently prosecute the Titan IP, including the Titan Patents in the Territory.

         

	
        12. Third Party Rights

         
	
        Should Molteni, in its reasonable discretion,
        determine that it reasonably requires third party rights in order to exercise its rights and/or meet its obligations pursuant to
        this Agreement, the parties agree to discuss in good faith a reduction of royalty fees to account for such third party license
        fees as may be due and payable by Molteni.

         

	13. Pharmacovigilance and Drug Safety	
        Following the MAA Transfer, all activities
        related to local drug safety and pharmacovigilance in the Territory shall be Molteni’s responsibility and subject to applicable
        law. Molteni shall report all material and adverse events to Titan to ensure global coordination of adverse events. All activities
        connected to global drug safety, pharmacovigilance and global safety labeling are within Titan’s responsibility. In this
        respect, prior to the MAA Transfer, the Parties shall execute a separate pharmacovigilance agreement in compliance with applicable
        European laws and regulations. In addition, the Parties shall exchange any information relating to alerts, batch recall or manufacturing
        deficiencies as soon as they became aware of such, in each case, subject to applicable law.

         

	14. Term and Termination	
        The Agreement shall remain effective
until the later of (i) termination of any applicable data exclusivity period, (ii) expiration of the last valid claim of patent
rights covering the Product in the Territory and (iii) fifteen (15) years from the execution of the Agreement, provided that clause
(iii) shall terminate when any third party substantially similar product enters the market. To the extent Molteni enters into
any Additional Territories pursuant to the terms herein, this Agreement shall remain in effect for fifteen (15) years from the
written notice of such extension, provided that such term for the Additional Territories shall terminate when any third party
substantially similar product enters the relevant market. The parties agree that entering in to any Additional Territories shall
not affect the term of this Agreement as to the original Territory. Thereafter the term of any Territory or Additional Territory,
Molteni shall have a fully paid up, perpetual, exclusive (even as to Titan and its affiliates) and sublicensable license to continue
to use the Titan IP subject to the license rights set forth herein by making a one-time payment to Titan of € 100.000 (Euros
one hundred thousand), and Molteni will no longer be liable for any royalty or milestone payments.

 

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        In addition to standard termination clauses
        and to the other termination clauses provided herein, each Party shall be entitled to immediately terminate the Agreement in cases
        of (i) withdrawal of the Product from the market by any regulatory authorities within the Territory; and (ii) if the Marketing
        Authorization is not obtained on or prior to March 31, 2020.

         

	15. Governing Law and Jurisdiction	
        This Term Sheet and the Agreement shall
        be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of
        laws and any dispute arising out of, or in connection with, this Term Sheet or the Agreement, shall be subject to the exclusive
        jurisdiction of any New York State or federal court located in the City of New York, County of Manhattan.

         

	
        16. Press Release

         
	
        The parties will agree on the content of
        any press release relating to this Term Sheet and the proposed subsequent Agreement, and neither party shall make public the parties’
        relationship, the existence of the Term Sheet or any of the terms herein except as required by applicable securities or regulatory
        laws without the prior written consent of the other party.

         

	
        17. Binding Effect

         
	
        This Term Sheet and any attachment
hereto constitutes a binding obligation of the Parties to enter into, execute and deliver the Agreement containing all the essential
elements contained in this Term Sheet. 

 

The undersigned have executed
this Term Sheet as of the 27th day of November, 2017.

 

L. MOLTENI & C. DEI F.LLI
ALITTI

SOCIETÀ DI ESERCIZIO S.P.A.

 

	By:	 	 
	 	Name: Giovanni Seghi	 
	 	Title: President	 

 

TITAN PHARMACEUTICALS, INC.

 

	By:	 	 
	 	Name: Sunil Bhonsle	 
	 	Title:  Chief Executive Officer	 

 

    	 	8	 

     

    

 

Schedule A

 

European Patent Application No. 12193435.0

Publication No. EP 2561860A

“Implantable Polymeric Device for Sustained Release of
Buprenorphine”

Inventors: Rajesh A. PATEL and Louis R. BUCALO

 

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Schedule B

 

[************]

 

    	 	10Exhibit

Exhibit 10.1
Cannae Holdings, Inc.
 
Notice of Investment Success Incentive Award

You (the “Grantee”) have been granted the following Cannae Holdings, Inc. Investment Success Incentive Award (the “Award”) pursuant to the Cannae Holdings, Inc. 2017 Omnibus Incentive Plan (the “Plan”):

	
		
	Name of Grantee:
	 

	Effective Date of Grant:
	November __, 2017

	Liquidity Events:
	See Appendix A

	Share of ROI Incentive Pool
	[•]%

By your signature and the signature of the Company’s representative below, you and Cannae Holdings, Inc. (the “Company”) agree and acknowledge that the Award is granted under and governed by the terms and conditions of the Plan, this Notice of Investment Success Incentive Award (including Appendix A, the “Notice”) and the Investment Success Incentive Award Agreement (the “Award Agreement”), which are incorporated herein by reference, and that you have been provided a copy of the Plan, the Notice and the Award Agreement.

Grantee:                    

By:__________________________    
Print Name:
Date:

Cannae Holdings, Inc.

By: __________________________
Print Name:
Its: 

Appendix A
Overview and Purpose
of the Award

The Award is a performance-based, cash incentive award that provides the Grantee the opportunity to share in the Company’s “ROI” (as defined below) with respect to its interest in the following entity:
		
	•
	T-System Holdings (“T-System”) 

T-System is referred to herein as the “Portfolio Company.”  The shares or membership interests (as applicable) held by the Company in the Portfolio Company (and any securities into which or in exchange for which such shares or membership interests are converted or exchanged in connection with a recapitalization, share exchange, merger, reorganization, equity restructuring or other similar transaction, as well as any additional securities issued to the Company in respect of such shares or membership interests (including, by way of example, stock dividends or shares of a subsidiary of the Portfolio Company issued to the Company in a spin off)) are referred to herein as the “Securities”).
To the extent a “Liquidity Event” (defined below) occurs with respect to the Portfolio Company between the effective date of grant and December 31, 2024 (the “Performance Period”), ten (10%) percent of any ROI relating to such Liquidity Event (calculated as described below) will be credited to a notional incentive pool established for purposes of this program (the “ROI Incentive Pool”), and, to the extent the other “Payment Conditions” (described below) are satisfied, the Grantee will be entitled to receive a payment based on the Grantee’s Share of the ROI Incentive Pool (as reflect on the first page of the Notice).
The purpose of the Award is to help the Company maximize its ROI with respect to the Portfolio Company by aligning a portion of the Grantee’s long-term incentive compensation with the Company’s ROI relating to the Portfolio Company.  The Award is also designed to aid in retention of the Grantee by imposing service-based vesting conditions on payments under the Award.
Liquidity Events
Payments will only be made under the Award if a “Liquidity Event” occurs during the Performance Period (and the other conditions described herein are satisfied).  For purposes of the Award, a “Liquidity Event” means (a) a Public Offering (defined below) of the Securities of the Portfolio Company, (b) a sale or other disposition of the Securities of the Portfolio Company (whether pursuant to a merger or other transaction) in connection with which consideration (whether cash or securities) is received or receivable by the Company, (c) a spin off, split off or similar transaction in connection with which the Company’s stockholders receive Securities of the Portfolio Company, (d) a disposition of all or substantially all of the assets of the Portfolio Company in connection with which proceeds from such sale or disposition are paid or payable to the Company, (e) a recapitalization of the Portfolio Company in connection with which an extraordinary dividend or return of capital is paid to the Company (provided the amount of such extraordinary dividend or return of capital exceeds the “Base Value” (as defined below) of the Securities), (f) any other transaction or event (other than payment of ordinary dividends) in connection with which the ROI on the Portfolio Company investment can be determined by third party observable measures (such as a public stock price) or (g) a Change in Control that occurs on or after one year following the effective date of grant.  
For purposes of the Award, the term “Public Offering” means an initial public offering or any subsequent public offering of the Securities of the Portfolio Company pursuant to a registration statement under the Securities Act of 1933, as amended, which public offering has been declared effective by the Securities and 

Exchange Commission (or, in the case of an Up-C or similar structure, such an initial public offering of the securities of an affiliate of the Portfolio Company).  If the Company retains any Securities in the Portfolio Company following a Public Offering of such Portfolio Company’s Securities, a subsequent Liquidity Event may occur with respect to such retained Securities; provided, however, that the Base Amount of such retained Securities shall be increased at the time of the Public Offering to equal the value of the Securities at the time of the Public Offering (with such value determined as described below under “ROI”), so that no amount is credited or paid twice on the same ROI. 
For the avoidance of doubt, a Liquidity Event described above shall be deemed to occur whether or not (i) the Company has disposed of its Securities in connection with such Liquidity Event (ii) the Company is subject to a lockup or other restriction on transfer or disposition of the Securities (provided that such restriction on transfer or disposition is temporary) and/or (iii) the consideration (or part of the consideration) payable to the Company is subject to contingencies (including, by way of example, a transaction in which part of the transaction consideration is contingent upon an earnout and/or held in escrow to satisfy indemnity claims).
ROI
For purposes of the Award, “ROI” means the excess, if any, of “A” over “B,” 
		
	•
	where “A” equals, as the case may be, (i) the amount of cash (or Fair Market Value of securities or other property) received or receivable by the Company in connection with a Liquidity Event (other than a Public Offering, a spin off, split off or similar transaction in connection with which the Company’s stockholders receive Securities of the Portfolio Company, or a Change in Control), (ii) in the case of a Public Offering, the fair market value (determined as described below) of the Securities of the Portfolio Company with respect to which the Public Offering is occurring that are held (directly or indirectly) by the Company immediately before the Public Offering, (iii) in the case of a spin off, split off or similar transaction in connection with which the Company’s stockholders receive Securities of the Portfolio Company, the fair market value (determined as described below) of the Securities of the Portfolio Company with respect to which the spin off, split off or similar transaction is occurring that are held (directly or indirectly) by the Company immediately before the spin off, split off or similar transaction (regardless of the number of such Securities actually distributed to the Company’s stockholders), and (iv) in the case of a Change in Control that constitutes a Liquidity Event, the fair market value (determined as of immediately before the Change in Control) of the aggregate of the Company’s investments in the Portfolio Company held (directly or indirectly) by the Company immediately before the Change in Control, in each case, together with the amount of cash (other than ordinary dividends) and the Fair Market Value of securities or other property received during the Performance Period and prior to the Liquidity Event (to the extent not previously taken into account under the Award) for or with respect to the Securities of the Portfolio Company with respect to which the Liquidity Event occurs, including, by way of example, extraordinary dividends or returns of capital that do not constitute Liquidity Events, and 

		
	•
	“B” equals the Base Amount (as defined below) of the Securities with respect to which the Liquidity Event occurs.

Except as otherwise provided below in this paragraph, to the extent a sale occurs with respect to less than all of the Securities of the Portfolio Company then held (directly or indirectly) by the Company, ROI shall be measured solely with respect to the Securities that are sold.  For example, if the Company sells 50% of the total Securities it holds in the Portfolio Company, ROI shall be based on the excess, if any, of the 

consideration received or receivable with respect to the sold Securities, over the portion of the Base Amount allocable to such sold Securities.  In the case of a Public Offering or a spin off, split off or similar transaction, the Liquidity Event shall be treated as occurring with respect to all of the Securities of the Portfolio Company held by the Company immediately before such event or transaction.  In the case of a Change in Control that occurs on or after July 1, 2015, the Liquidity Event shall be treated as occurring with respect to the aggregate of the Company’s investments in the Portfolio Company held by the Company immediately before the Change in Control.  
To the extent any consideration receivable by the Company for or in respect of Securities in connection with a Liquidity Event is subject to contingencies or the payment of such consideration is delayed (including, by way of example, pursuant to an earnout or indemnity escrow), the maximum amount that could be received by the Company shall be treated as received or receivable when calculating ROI; provided, however, that the Committee may, through its exercise of negative discretion, determine whether and to what extent such consideration should not be so taken into account when calculating ROI (or, alternatively, the extent to which any crediting of the ROI Incentive Pool and/or the Grantee’s Award Account should, instead, be banked (as described below)), taking into account, among other factors, the likelihood that such amounts will be realized by the Company. 
Fair Market Value
In the case of a Public Offering, the fair market value of the Securities of the Portfolio Company shall be based on the implied value of the Portfolio Company’s Securities held by the Company immediately before the Public Offering (based on the volume weighted average trading price of the securities offered in the Public Offering over the first three trading days following the Public Offering) and shall include the aggregate fair market value of all of the Securities of the applicable Portfolio Company then held (directly or indirectly) by the Company, regardless of whether and when the Company sells such Securities in the Public Offering and regardless of whether the Company is subject to a lockup or other restriction on transfer or disposition of the Securities (provided that such restriction on transfer or disposition is temporary); provided, however, that the Committee may, through its exercise of negative discretion, determine whether and to what extent such a lockup or other restriction on transfer or disposition should reduce the amount taken into account when calculating ROI (or, alternatively, the extent to which any crediting of the ROI Incentive Pool and/or the Grantee’s Award Account should, instead, be banked (as described below)).  For example, if (x) the Portfolio Company has 10 million shares of common stock outstanding immediately following the Public Offering, (y) the Company owns 4 million shares of common stock (40%) immediately prior to the Public Offering, with a Base Amount of $100 million, and (z) the volume weighted average trading price of the Portfolio Company’s securities offered in the Public Offering over the first three trading days following the Public Offering is $35.00, the implied fair market value of the Portfolio Company would be $350 million and the resulting ROI would be $40 million ($140 million (40% of $350 million), less the $100 million Base Amount), subject to the Committee’s authority to reduce such ROI in its sole discretion.
In the case of a spin off, split off or similar transaction in connection with which the Company’s stockholders receive Securities of the Portfolio Company, the fair market value (determined as described below) of the Securities of the Portfolio Company with respect to which the spin off, split off or similar transaction is occurring will be based on the implied value of all of the Portfolio Company’s Securities held by the Company immediately before the spin off, split off or similar transaction (based on the volume weighted average trading price of the Portfolio Company’s Securities over the first three trading days following the spin off, split off or similar transaction).
In the case of a Change in Control that constitutes a Liquidity Event, the fair market value (determined as of immediately before the Change in Control) of the aggregate of the Company’s investments in the Portfolio 

Company held (directly or indirectly) by the Company immediately before the Change in Control will be determined in the case of (x) publicly-traded Securities, based on the volume weighted average trading price of the Securities over the first three trading days preceding the Change in Control and (y) Investments or Securities that are not publicly traded, based on the Fair Market Value of such Securities as determined in good faith by the Committee before the Change in Control. 
Without limiting the foregoing, the Committee may, in its sole and absolute discretion, exclude from any ROI calculation any amounts to the extent it determines that inclusion of such amounts would be inconsistent with the spirit and intent of the Award or for any other reason.  The Committee’s determination of ROI shall be final and binding.  
Base Amount
For purposes of the Award, the value of the Securities held by the Company in the Portfolio Company as of the effective date of grant (the “Base Amount”) is $200,000,000].
Crediting of ROI Incentive Pool
Promptly following each Liquidity Event that occurs during the Performance Period, ten (10%) percent of any ROI attributable to the Liquidity Event will be credited to the ROI Incentive Pool, subject to the Committee’s discretion to reduce, eliminate or bank (as described below) such amounts.
Crediting of Grantee’s Award Account
Simultaneous with the crediting of the ROI Incentive Pool, the Company will also credit (separately with respect to each Liquidity Event) to a bookkeeping account in the Grantee’s name (the “Grantee’s Award Account”) an amount equal to (i) [•]% of the amount credited to the ROI Incentive Pool with respect to the Liquidity Event; provided, however, that pursuant to Section 4.2 of the Plan, no more than $25,000,000 will be credited to the Grantee’s Award Account pursuant to the Award.  Unless otherwise determined by the Committee, if, after the Effective Date of Grant, the Grantee receives any additional Investment Success Incentive Awards relating to the Portfolio Company and measuring ROI over one or more overlapping time periods, to avoid duplication, the amount(s) that would otherwise be credited with respect to such Portfolio Company to the Grantee’s award account under such additional award(s) will be reduced so that the Grantee does not receive a credit under more than one award for the same ROI.  For purposes of the prior sentence, to the extent a measurement period in a subsequent award includes some, but not all, of the same days included in a Measurement Period under the Award (any such days not covered by both measurement periods, a “Non-Overlapping Period”), no reduction to the amount credited under a subsequent award shall be made with respect to ROI attributable to the Non-Overlapping Period.
The ROI Incentive Pool and the Grantee’s Award Account are notional bookkeeping accounts only and are used solely to determine the amounts that may become payable to the Grantee and, in the case of the ROI Incentive Pool, all participating employees.  Any rights arising under the Award are unfunded and unsecured and may not be transferred, alienated, assigned, pledged, hypothecated or encumbered, in any way.  At any time prior to a Change in Control, the Committee may, in its discretion, reduce the amounts credited to the ROI Incentive Pool and/or the Grantee’s Award Account.  Reasons for such reduction may include, without limitation, realization upon the sale of the Portfolio Company of gain that is less than the ROI upon which a prior credit or payment was made under the Award. 

Banked Amounts
To the extent the Committee, through its exercise of negative discretion, chooses to reduce or eliminate any amount that would otherwise be contributed to the ROI Incentive Pool and/or the Grantee’s Award Account, the Committee may either declare that the amount not contributed or paid due to such exercise of negative discretion shall be (a) forfeited and no longer available for future crediting to the Grantee’s Award Account (in which case such amount (and the ROI to which it relates) shall be treated as if credited, and the amount that would have been paid with respect thereto shall be treated as if paid, for purposes of determining the amount to be credited upon a future Liquidity Event relating to the same Portfolio Company)), or (b) credited to the Grantee’s Award Account, but not paid when it otherwise would have been paid (any such credited, but not paid amount, a “Banked Amount”), in which case, except as provided in Section 3 of the Award Agreement, such Banked Amount shall remain in the Grantee’s Award Account until the Committee determines in its sole discretion that the Banked Amount will be forfeited or paid to the Grantee, which may include a subsequent Liquidity Event or such other date or event selected by the Committee.  Except as otherwise provided in Section 3 of the Award Agreement, upon a termination of the Grantee’s employment for any reason, any Banked Amounts in the Grantee’s Award Account shall immediately be forfeited and the Grantee shall no longer have any rights with respect thereto.  Banked amounts shall not accrue interest or other earnings.  At any time prior to a Change in Control, the Committee may, in its discretion, reduce or eliminate a Grantee’s Banked Amount.  
Payment
Except as provided above with respect to payment of Banked Amounts, to become entitled to a payment under the Award, (a) a Liquidity Event must occur, (b) ROI must be generated by the Liquidity Event, and (c), except as otherwise provided in Section 3 of the Award Agreement, the Grantee must have remained continuously employed with the Company or a Subsidiary through the payment date (together, the “Payment Conditions”).
If all of the Payment Conditions are satisfied, then, subject to any exercise of negative discretion by the Committee to reduce, eliminate or bank the amounts otherwise payable with respect to such Liquidity Event, as soon as practicable following the Committee’s determination (and in the case of an Award intended to qualify as performance-based compensation for purposes of Code Section 162(m), following the Committee’s written certification) of the ROI, the amount credited to the Grantee’s Award Account with respect to such Liquidity Event shall be paid to the Grantee in a lump sum cash payment, less applicable tax withholdings.   
Annual Incentives
If the sum of the amounts paid to the Grantee in a calendar year pursuant to the Award and any other Investment Success Incentive Awards granted after the Effective Date of Grant is greater than fifty (50%) percent of the Grantee’s regular annual cash incentive from the Company relating to the same calendar year (payable in the following calendar year), then, unless otherwise determined by the Committee, the Grantee’s regular annual cash incentive shall be reduced by fifty (50%) percent.  Notwithstanding anything contained in any other plan or agreement to the contrary, the Grantee shall not be permitted to defer under any elective nonqualified deferred compensation plan any regular annual cash incentive that could be reduced pursuant to the preceding sentence. 

Cannae Holdings, Inc.
Investment Success Incentive Award Agreement

		
	SECTION 1.
	GRANT OF AWARD

(a)Award.  On the terms and conditions set forth in the Notice of Investment Success Incentive Award (including Appendix A, the “Notice”) and this Investment Success Incentive Award Agreement (the “Award Agreement”), the Company grants to the Grantee on the Effective Date of Grant the Award set forth in the Notice.  The Award represents the right to receive one or more cash payments in accordance with Appendix A if the conditions set forth in Appendix A and the Award Agreement are satisfied.

(b)Plan and Defined Terms.  The Award is granted pursuant to the Plan, and shall be considered an “Other Award” for purposes of the Plan.  Except as expressly provided otherwise herein, all applicable terms, provisions, and conditions set forth in the Plan and not set forth herein are hereby incorporated by reference herein.  All capitalized terms that are used in the Notice or the Award Agreement and not otherwise defined therein or herein shall have the meanings ascribed to them in the Plan.

SECTION 2.    TERMINATION OF EMPLOYMENT

If the Grantee’s employment with the Company and all Subsidiaries is terminated for any reason, including death or Disability, the Award shall immediately be forfeited and the Grantee shall not be entitled to any further payments with respect to the Award.  For purposes of the Award, references to employment shall be read to mean employment and/or provision of substantial services as a member of a board of directors or board of managers of the Company or a Subsidiary, and termination of employment (and similar terms) shall mean termination of employment and service in all such capacities.  Transitioning from an employment to a board of directors position, or from a board of directors position to an employment position, shall not constitute a termination of employment provided the Grantee is providing substantial services in all such capacities.
SECTION 3.    CHANGE IN CONTROL

If a Change in Control occurs on or after one year after date of grant, and the Grantee has remained continuously employed with the Company or a Subsidiary through the date of the Change in Control, a Liquidity Event shall be deemed to have occurred as of the date of the Change in Control and ROI shall be calculated with respect to the aggregate of the Company’s investments in the Portfolio Company held by the Company as of immediately before the Change in Control, with such ROI calculation to be made in accordance with Appendix A (without regard to the provisions in Appendix A that authorize the Committee to reduce, eliminate or bank amounts in determining ROI).  To the extent there is any such ROI recognized in connection with the Change in Control, the Grantee shall be entitled to receive a lump sum cash payment if the Grantee either remains employed with the Company or a Subsidiary through the payment date or is terminated without “Cause” (as defined below) on or before the payment date.  The amount of the payment shall equal the sum of the amount determined in accordance with Appendix A as a result of the Change in Control, together with any Banked Amounts that were unpaid as of the date of the Change in Control, less applicable tax withholdings.  The payment shall occur at, or promptly (and in all events within 10 days) following, the closing of the Change in Control.  Notwithstanding anything to contrary in the Plan, the Notice or the Award Agreement, if a Change in Control occurs on or after one year after date of grant, the Committee may not reduce or eliminate (through the exercise of negative discretion or otherwise) any amounts that are determined to be 

payable pursuant to the terms of Appendix A (without regard to the provisions in Appendix A that authorize the Committee to reduce, eliminate or bank amounts in determining ROI) in connection with the Change in Control or any Banked Amounts.  A Change in Control occurring before one year after date of grant will not constitute a Liquidity Event. 
For purposes hereof, the term “Cause” shall have the meaning set forth in the Grantee’s employment or similar agreement with the Company or a Subsidiary or, in the absence thereof, shall mean a termination by the Company or a Subsidiary based upon the Grantee’s: (i) persistent failure to perform duties consistent with a commercially reasonable standard of care (other than due to a physical or mental impairment or due to an action or inaction directed by the Company or a Subsidiary); (ii) willful neglect of duties (other than due to a physical or mental impairment or due to an action or inaction directed by the Company); (iii) conviction of, or pleading nolo contendere to, criminal or other illegal activities involving dishonesty; (iv) material breach of a material agreement with the Company or a Subsidiary; or (v) failure to materially cooperate with or impeding an investigation authorized by the Board.  
MISCELLANEOUS PROVISIONS
(a)Tax Withholding.  The Company or any Subsidiary of the Company shall have the power and right to deduct or withhold, or require the Grantee to remit to the Company, an amount sufficient to satisfy any federal, state and local taxes (including the Grantee’s FICA obligations) required by law to be withheld with respect to the Award.
(b)Ratification of Actions.  By accepting the Award Agreement, the Grantee and each person claiming under or through the Grantee shall be conclusively deemed to have indicated the Grantee’s acceptance and ratification of, and consent to, any action taken under the Plan, the Notice or the Award Agreement by the Company, the Board or the Committee.

(c)Notice.  Any notice required by the terms of the Award Agreement shall be given in writing and shall be deemed effective upon personal delivery or upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid.  Notice shall be addressed to the Company at its principal executive office and to the Grantee at the address that he or she most recently provided in writing to the Company.
(d)Choice of Law.  The Award Agreement and the Notice shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to any conflicts of law or choice of law rule or principle that might otherwise cause the Plan, the Award Agreement or the Notice to be governed by or construed in accordance with the substantive law of another jurisdiction.
(e)Modification or Amendment.  Except as otherwise provided in Section 4(k) of the Award Agreement, the Notice and the Award Agreement may only be modified or amended by written agreement executed by the parties hereto.
(f)Severability.  In the event any provision of the Award Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of the Award Agreement, and the Award Agreement shall be construed and enforced as if such illegal or invalid provision had not been included.
(g)Compensation under Other Arrangements.  Amounts earned with respect to the Award shall not be included in any calculation of severance or change in control benefits or payments under any employment agreement or other compensatory arrangement.
(h)References to Plan and Headings.  All references to the Plan shall be deemed references to the Plan as may be amended from time to time.  Headings in the Notice and Award Agreement are for convenience and shall not in any way affect the meaning or interpretation of any of the provisions hereof.
(i)Entire Agreement.  The Notice (including Appendix A) and the Award Agreement are the entire agreement between the Company and the Grantee relating to the subject matter thereof and hereof and 

supersede all prior agreements and understandings (including verbal agreements) between the Company and the Grantee relating to such subject matter.
(j)Clawback.  All amounts paid under the Award shall be subject to the Company’s policy regarding clawback of incentive compensation, as such policy may be amended from time to time.
(k)Section 409A Compliance.  It is intended that the Award qualify as a “short-term deferral” for purposes of Section 409A and shall be interpreted accordingly; provided, however, that (i) to the extent it is determined that the Award is subject to Section 409A, it is intended that the Award comply with the requirements of Section 409A, and the Plan, the Notice and the Award Agreement shall be interpreted accordingly and any provision thereof or hereof that would cause the Award to fail to comply with Section 409A will have no force or effect until amended to comply therewith (which amendment may be made without the Grantee’s consent and may be retroactive to the extent permitted by Section 409A) and (ii) the Company will consult with the Grantee in good faith regarding the implementation of the provisions of this Section 4(k).  The Grantee shall not be entitled to indemnification or other reimbursement for any taxes or other expenses incurred as a result of the applicability of Section 409A to the Award and neither the Company nor any of its employees or representatives shall have any liability to Grantee with respect to Section 409A.

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