Document:

Exhibit 10.1

 

Execution Version

 

SUPPORT AGREEMENT

 

This SUPPORT AGREEMENT (this “Agreement”), dated as of July 10, 2017, is entered into by and among Halcón Resources Corporation (the “Company”) and the undersigned investment advisors or managers (as applicable) for the account of beneficial holders (together with their respective successors and permitted assigns and any subsequent holder that becomes party hereto in accordance with the terms hereof, each a “Consenting Holder” and, collectively, the “Consenting Holders”) of the Company’s 6.75% Senior Notes due 2025 (the “Notes”) and the related guarantees thereof (together with the Notes, the “Securities”) issued under that certain Indenture, dated as of February 16, 2017, by and among the Company, the subsidiary guarantors of the Company party thereto (the “Guarantors”) and U.S. Bank National Association, as trustee (the “Indenture”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Indenture as the same is proposed to be modified consistent with the proposed amendments (the “Amendments”) set forth in Exhibit A hereto and to be included in a supplemental indenture to the Indenture (the “Supplemental Indenture”);

 

WHEREAS, the Company is assessing the merits of a sale in one transaction or a series of related transactions of all or substantially all of the Oil and Gas Properties of the Company and its Restricted Subsidiaries located in the States of North Dakota and Montana constituting a Williston Sale, whether directly or by sale of Capital Stock of one or more Subsidiaries, within the time period specified in the Amendments;

 

WHEREAS, the Company desires to amend the Indenture to permit the Williston Sale;

 

WHEREAS, the Indenture provides that certain amendments to the Indenture, including the Amendments, shall only be effective upon execution of the Supplemental Indenture after the Company solicits consents from all holders of the Notes (the “Consent Solicitation”) and receives the consent of the holders of at least a majority in principal amount of the then outstanding Notes;

 

WHEREAS, the Company and the Consenting Holders desire to hereby express to each other their mutual support and commitment in respect of the matters discussed hereunder and to the Amendments.

 

NOW, THEREFORE, the parties hereto agree as follows:

 

1.                                      Amendments to the Indenture

 

(a)                                 Amendments. The Amendments are expressly incorporated herein by reference and made part of this Agreement as if fully set forth herein. In the event of any inconsistency between the Amendments and this Agreement, the Amendments shall control.

 

(b)                                 Consent Solicitation Statement. In connection with the Consent Solicitation, the Company undertakes to furnish the Consenting Holders, together with all other holders of the Securities, with a consent solicitation statement detailing the terms of the Consent Solicitation and the Amendments.

 

 

(c)                                  Further Amendments and Modifications. Each Consenting Holder hereby agrees that the Company may, in connection with preparing the supplemental indenture that will effect the Amendments, amend, modify or supplement the Amendments following the date hereof, from time to time, to cure any non-substantive ambiguity, defect (including any technical defect) or inconsistency, and to include such Amendments in the form of a supplemental indenture to the Indenture; provided that any such amendments, modifications or supplements do not adversely affect the rights, interests or treatment of any Consenting Holder in any material respect, and that no such amendment, modification or supplement shall affect the support of each Consenting Holder for the Amendments expressed pursuant to this Agreement.

 

2.                                      Agreements of the Consenting Holders.

 

(a)                                 Support. Subject to the terms and conditions hereof, each Consenting Holder agrees that, in connection with the Consent Solicitation, it will use commercially reasonable efforts to: (i) timely furnish its consent to the Amendments for all Notes beneficially owned by the Consenting Holder, which shall include Notes in the aggregate principal amount of at least the amount set forth below its name on the signature page hereof (as may be reduced to reflect transfers of Notes made in accordance with Section 2(b) of this Agreement), in accordance with the terms of the Consent Solicitation, (ii) not withdraw such consent, (iii) not take any other action that is inconsistent with or that would reasonably be expected to prevent, materially interfere with, materially delay or materially impede the Consent Solicitation and the execution, delivery or effectiveness of the Supplemental Indenture; provided, that this Section 2(a) shall not restrict or limit in any manner any Consenting Holder’s right to transfer Notes in accordance with Section 2(b) of this Agreement.

 

(b)                                 Transfers. Each Consenting Holder agrees that from the date hereof until the completion of the Consent Solicitation, which shall be completed not later than August 15, 2017 (the “Solicitation Outside Date”), it shall not sell, transfer, loan, issue, pledge, hypothecate, assign or otherwise dispose of (other than ordinary course pledges and/or swaps) (each, a “Transfer”), directly or indirectly, in whole or in part, any of its Securities, as applicable, or any option thereon or any right or interest therein, unless the transferee thereof either (i) is a Consenting Holder or its affiliate, provided that such affiliate shall agree in writing to be bound by this Agreement as if an original party hereto, or (ii) prior to such Transfer, the transferee agrees in writing for the benefit of the parties hereto to become a Consenting Holder and to be bound by all of the terms of this Agreement applicable to Consenting Holders (including with respect to any and all claims or interests it already may hold against or in the Company prior to such Transfer) by executing a joinder agreement, in the form attached as Exhibit B hereto or otherwise reasonably satisfactory to the Company, and delivering an executed copy thereof to the Company within two (2) Business Days of such execution.

 

3.                                      Consent Fee.

 

The Company agrees that the Consenting Holders that validly consent to the Amendments in accordance with the terms and procedures of the Consent Solicitation will be entitled to a consent fee of 2.0% of the principal amount of the Notes with respect to which they provide such consent (the “Consent Fee”), with such fee payable upon the earlier of (a) receipt by the Company or its agent of valid consents to the Amendments from holders of at least 50.1%

 

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of aggregate principal amount of the outstanding Notes upon settlement of the Consent Solicitation in accordance with the terms and procedures of the Consent Solicitation and satisfaction of other customary conditions to the execution and delivery of the Supplemental Indenture or (b) a Consent Solicitation Termination Event (as defined below). In the event that either the Company elects not to commence the Consent Solicitation, or the Consent Solicitation is terminated, withdrawn or abandoned by the Company, or the Consent Solicitation is not settled by August 15, 2017 (other than by reason of the failure of the Consenting Holders to deliver valid consents) (any such event, a “Consent Solicitation Termination Event”), then, subject to the following sentence, each of the Consenting Holders that hold Notes in the aggregate principal amount of at least the amount set forth below its name on the signature page hereof or on the signature page of any joinder agreement hereto (in each case as such amounts may be reduced to reflect Transfers of Notes made in accordance with Section 2(b) of this Agreement) shall be paid a Consent Fee on such Notes indicated on such signature page (as such amounts may be reduced to reflect Transfers of Notes made in accordance with Section 2(b) of this Agreement), which Consent Fee shall be paid promptly by the Company upon the earlier of (i) the date the Company publicly announces it has withdrawn, terminated or abandoned the Consent Solicitation or elected not commence the Consent Solicitation the Consent Solicitation and (ii) the Solicitation Outside Date. Notwithstanding anything to the contrary in this Support Agreement, no Consent Fee shall be payable to Consenting Holders under the terms of this Agreement unless (A) the Consenting Holders collectively tender valid consents to the Amendments for at least 50.1% of aggregate principal amount of the outstanding Notes in the Consent Solicitation in accordance with its terms or (B) if the Company elects not to commence the Consent Solicitation, or the Consent Solicitation is withdrawn, terminated or abandoned or the Consent Solicitation is not settled by the Solicitation Outside Date, such Holders provide an Ownership Certificate (as defined below) or other reasonable proof to the Company that the Consenting Holders collectively held at least at least 50.1% of aggregate principal amount of the outstanding Notes on the date a Consent Fee would become payable under the immediately preceding sentence.  “Ownership Certificate” means, for any Consenting Holder, a notarized certificate pursuant to which such Consenting Holder represents and warrants to the Company regarding the aggregate principal amount of the outstanding Notes held by it.

 

4.                                      Company Termination Right.

 

(a)                                 Termination Right. The Company shall have the exclusive right to terminate the Consent Solicitation for any reason.

 

(b)                                 Effect of Termination. Upon the earlier of (x) termination of the Consent Solicitation by the Company and (y) 5:00 p.m. New York City time on the Solicitation Outside Date, this Agreement shall forthwith become void and of no further force or effect and each party shall be immediately released from its liabilities, obligations, commitments, undertakings and agreements under or related to this Agreement; provided, however, that (i) in no event shall any such termination relieve a party from liability for its breach or non-performance of its obligations hereunder prior to the date of such termination and (ii) the Company shall pay each Consenting Holder the Consent Fee to the extent such Consent Fee is or becomes payable under Section 3 hereof, provided that such Consenting Holder has not violated any material terms of, and has not materially breached any representation or warranty made in, this Agreement; provided, however, that that any such violation or breach shall not have any impact on the

 

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Company’s obligation to pay a Consent Fee unless the Company shall have given such Consenting Holder written notice of such violation or breach and (if capable of cure) the Consenting Holder shall have failed to cure such breach within 5 Business Days after its receipt of such written notice. Upon any such termination, any and all consents and ballots tendered by the Consenting Holders prior to such termination shall be deemed, for all purposes, automatically null and void ab initio, and shall not be considered or otherwise used in any manner by the parties in connection with the Consent Solicitation or otherwise.

 

5.                                      Representations and Warranties of the Parties.

 

(a)                                 Each Consenting Holder, severally and not jointly, represents and warrants to the other parties that the following statements are true, correct and complete as of the date hereof (or as of the date a Consenting Holder becomes a party hereto):

 

(i)                                     such Consenting Holder is validly existing and in good standing under the laws of its jurisdiction of incorporation or organization, and has all requisite corporate, partnership, limited liability company or similar authority to enter into this Agreement and carry out the transactions contemplated hereby and perform its obligations contemplated hereunder; and the execution and delivery of this Agreement and the performance of such Consenting Holder’s obligations hereunder have been duly authorized by all necessary corporate, limited liability company, partnership or other similar action on its part;

 

(ii)                                  the execution, delivery and performance by such Consenting Holder of this Agreement does not and will not (A) to the actual knowledge of such Consenting Holder, violate any material provision of law, rule or regulation applicable to it, (B) violate its charter or bylaws (or other similar governing documents), or (C) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligation to which it is a party;

 

(iii)                               the execution, delivery and performance by such Consenting Holder of this Agreement does not and will not require that such Consenting Holder make any material registration or filing with, obtain the consent or approval of, or provide notice to, or take other action, with or by, any federal, state or governmental authority or regulatory body, except such filings as may be necessary and/or required by the SEC or other securities regulatory authorities under applicable securities laws; and

 

(iv)                              this Agreement is the legally valid and binding obligation of such Consenting Holder, enforceable against it in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability or a ruling of a bankruptcy court.

 

(b)                                 Each Consenting Holder severally (and not jointly), represents and warrants to the Company that, as of the date hereof (or as of the date such Consenting Holder becomes a party hereto), such Consenting Holder (i) is the beneficial owner of the aggregate principal amount of Notes set forth below its name on the signature page hereof (or below its name on the signature

 

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page of a Joinder Agreement for any Consenting Holder that becomes a party hereto after the date hereof), or is the nominee, investment manager, or advisor for one or more beneficial holders thereof, and/or (ii) has, with respect to the beneficial owners of such Notes, (A) investment discretion with respect to such Notes, (B) power and authority to vote on and consent to matters concerning such Notes or to exchange, assign and transfer such Notes, and (C) power and authority to bind or act on the behalf of, such beneficial owners.

 

(c)                                  The Company represents and warrants to each of the Consenting Holders that the following statements are true, correct and complete as of the date hereof:

 

(i)                                     it is validly existing and in good standing under the laws of the State of Delaware, and has all requisite corporate authority to enter into this Agreement and carry out the transactions contemplated hereby and perform its obligations contemplated hereunder; and the execution and delivery of this Agreement and the performance of its obligations hereunder have been duly authorized by all necessary corporate action on its part;

 

(ii)                                  its execution, delivery and performance of this Agreement does not and will not (A) to the actual knowledge of the Company, violate any material provision of law, rule or regulation applicable to it, (B) violate its charter or bylaws (or other similar governing documents) or those of any of its subsidiaries, or (B) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligation to which it is a party;

 

(iii)                               its execution, delivery and performance of this Agreement does not and will not require that it make any material registration or filing with, obtain the consent or approval of, or provide notice to, or take other action, with or by, any federal, state or governmental authority or regulatory body, except such filings as may be necessary and/or required by the SEC or other securities regulatory authorities under applicable securities laws;

 

(iv)                              this Agreement is the legally valid and binding obligation of the Company, enforceable against it in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability or a ruling of a bankruptcy court; and

 

(v)                                 (a) there exists no Default or Event of Default and (b) after giving effect to this Agreement and the transactions contemplated hereunder, no Default or Event of Default shall have occurred and be continuing.

 

6.                                      Effectiveness.

 

This Agreement shall become effective and binding upon each party upon the execution and delivery by the Company and Consenting Holders that are beneficial owners of at least 50.1% of the aggregate principal amount of outstanding Notes. The Company shall promptly notify each Consenting Holder that is a party hereto of effectiveness of this Agreement. The Company shall, as a condition precedent to effectiveness of the Supplemental Indenture, deliver

 

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to each of the Consenting Holders a certificate, dated as of the date the Supplemental Indenture is executed (the “Supplemental Indenture Date”) and signed by a duly authorized officer of the Company, to the effect that the representations and warranties of the Company set forth in Section 5(c) are true and correct in all respects on the Supplemental Indenture Date with the same effect as though made at and as of such date.

 

7.                                      GOVERNING LAW; JURISDICTION; WAIVER OF JURY TRIAL.

 

(a)                                 This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York, without giving effect to the conflict of laws principles thereof to the extent such principles would result in application of the law of any other jurisdiction.

 

(b)                                 Each of the parties irrevocably agrees that any legal action, suit or proceeding arising out of or relating to this Agreement brought by any party or its successors or assigns shall be brought and determined in any federal or state court in the State of New York, and each of the parties hereby irrevocably submits to the exclusive jurisdiction of the aforesaid courts for itself and with respect to its property, generally and unconditionally, with regard to any such proceeding arising out of or relating to this Agreement. Each of the parties agrees not to commence any proceeding relating hereto or thereto except in the courts described above in New York, other than proceedings in any court of competent jurisdiction to enforce any judgment, decree or award rendered by any such court in New York as described herein. Each of the parties further agrees that notice as provided herein shall constitute sufficient service of process and the parties further waive any argument that such service is insufficient. Each of the parties hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any proceeding arising out of or relating to this Agreement, (i) any claim that it is not personally subject to the jurisdiction of the courts in New York as described herein for any reason, (ii) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (iii) that (A) the proceeding in any such court is brought in an inconvenient forum, (B) the venue of such proceeding is improper or (C) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.

 

(c)                                  EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

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8.                                      Specific Performance/Remedies.

 

It is understood and agreed by the Parties that money damages may not be a sufficient remedy for a breach of this Agreement by any Party and each non-breaching Party shall be entitled to seek specific performance and injunctive or other equitable relief (including reasonable and documented attorneys’ fees and costs) as a remedy with respect to any such breach, without the necessity of proving the inadequacy of money damages as a remedy.

 

9.                                      Headings.

 

The headings of the sections, paragraphs and subsections of this Agreement are inserted for convenience only and shall not affect the interpretation hereof or, for any purpose, be deemed a part of this Agreement.

 

10.                               Successors and Assigns; Severability; Several Obligations.

 

(a)                                 This Agreement is intended to bind and inure to the benefit of the parties and their respective successors, permitted assigns, heirs, executors, administrators and representatives; provided, however, that nothing contained in this Section 10 shall be deemed to permit Transfers of the Securities or claims arising under the Securities other than in accordance with the express terms of this Agreement.

 

(b)                                 If any provision of this Agreement, or the application of any such provision to any person or entity or circumstance, shall be held invalid or unenforceable in whole or in part, such invalidity or unenforceability shall attach only to such provision or part thereof and the remaining part of such provision hereof and this Agreement shall continue in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon any such determination of invalidity, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a reasonably satisfactory manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. The agreements, representations and obligations of the parties are, in all respects, ratable and several and neither joint nor joint and several.

 

11.                               No Third-Party Beneficiaries.

 

Unless expressly stated herein, this Agreement shall be solely for the benefit of the parties and no other person or entity shall be a third-party beneficiary hereof.

 

12.                               Prior Negotiations; Entire Agreement.

 

This Agreement, including the exhibits and schedules hereto (including the Amendments) constitutes the entire agreement of the parties, and supersedes all other prior negotiations, with respect to the subject matter hereof and thereof, except that the parties acknowledge that any confidentiality agreements (if any) heretofore executed between the Company and each Consenting Holder shall continue in full force and effect for the duration of such confidentiality agreement.

 

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13.                               Counterparts.

 

This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same agreement. Execution copies of this Agreement may be delivered by facsimile, electronic mail or otherwise, which shall be deemed to be an original for the purposes of this paragraph.

 

14.                               No Solicitation; Representation by Counsel; Adequate Information.

 

(a)                                 This Agreement is not and shall not be deemed to be a solicitation for consents in favor of the Amendments. The acceptance of any Consenting Holder with respect to the Amendments will not be solicited until such Consenting Holder has received the consent solicitation statement related to the Consent Solicitation.

 

(b)                                 Each party acknowledges that it has had an opportunity to receive information from the Company and that it has been represented by counsel in connection with this Agreement and the transactions contemplated hereby. Accordingly, any rule of law or any legal decision that would provide any party with a defense to the enforcement of the terms of this Agreement against such party based upon lack of legal counsel shall have no application and is expressly waived.

 

(c)                                  The Company (i) is a sophisticated party with respect to the subject matter of this Agreement, (ii) has been represented and advised by legal counsel and tax advisors in connection with this Agreement and the effects of the proposed consent and the Amendments to the extent it determines that it is appropriate, (iii) has adequate information concerning the matters that are the subject of this Agreement, and (iv) has independently and without reliance upon any other party and based on such information as it has deemed appropriate, made its own analysis and decision to enter into this Agreement, except that it has relied upon the Consenting Holders’ express representations, warranties, and covenants in this Agreement, and has entered into this Agreement voluntarily and of its own choice and not under coercion or duress.

 

(d)                                 Each Consenting Holder (i) is a sophisticated party with respect to the subject matter of this Agreement, (ii) has been represented and advised by legal counsel in connection with this Agreement and the effects of the proposed consent and the Amendments to the extent it determines that it is appropriate, (iii) has adequate information concerning the matters that are the subject of this Agreement, and (iv) has independently and without reliance upon any other party and based on such information as it has deemed appropriate, made its own analysis and decision to enter into this Agreement, except that it has relied upon the Company’s express representations, warranties, and covenants in this Agreement, and has entered into this Agreement voluntarily and of its own choice and not under coercion or duress.

 

15.                               No Fiduciary Duty; Acknowledgments.

 

(a)                                 The Company acknowledges and agrees that no fiduciary, advisory or agency relationship between the Company, on the one hand, and any Consenting Holder, on the other hand, is intended to be or has been created in respect of any of the transactions contemplated by this Agreement, irrespective of whether any Consenting Holder (or any of its affiliates, managed accounts and/or related funds) has advised or is advising the Company on other matters, (b) each

 

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of the Consenting Holders, on the one hand, and the Company, on the other hand, have an arm’s-length business relationship that does not directly or indirectly give rise to, nor does the Company rely on, any fiduciary duty on the part of such Consenting Holder, (c) the Company is capable of evaluating and understanding, and does understand and accept, the terms, risks and conditions of the transactions contemplated by this Agreement, (d) the Company has been advised that the Consenting Holders are engaged in a broad range of transactions that may involve interests that differ from the Company’s interests and that the Consenting Holders have no obligation to disclose such interests and transactions to the Company by virtue of any fiduciary, advisory or agency relationship and (e) the Company waives, to the fullest extent permitted by law, any claims the Company may have against any Consenting Holder for breach of fiduciary duty or alleged breach of fiduciary duty and agrees that the Consenting Holders shall have no liability (whether direct or indirect) to the Company in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of, or in right of, the Company or any of its equityholders, affiliates, directors, officers, employees, agents, investment bankers, attorneys, accountants, consultants, advisors and other representatives (collectively, the “Representatives”).

 

(b)                                 The Company further acknowledges and agrees that the Consenting Holders are full service firms engaged in securities trading as well as providing other services.  In the ordinary course of business, the Consenting Holders may provide services to, and/or acquire, hold or sell, for its own accounts and the accounts of customers, equity, debt and other securities and financial instruments (including bank loans and other obligations) of or issued by the Company and/or other companies with which the Company may have commercial or other relationships.  With respect to any securities and/or financial instruments so held by the any Consenting Holder or any of its customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion.

 

16.                               Confidentiality.

 

The Company agrees that is shall not, without the Consenting Holders’ prior written consent, disclose the amount of Notes held by any Consenting Holder or any information set forth on the signature pages hereto, other than the names of the Consenting Holders, to any other person except as may be compelled in a judicial or administrative proceeding or as otherwise required by law, rule or regulation or as requested by a governmental authority having proper jurisdiction (in which case the Company shall, to the extent permitted by law, promptly provide the Consenting Holders with prior written notice thereof sufficient to afford the Consenting Holders an opportunity to seek a protective order to prevent or limit disclosure of such information).

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their respective duly authorized officers, solely in their respective capacity as officers of the undersigned and not in any other capacity, as of the date first set forth above.

 

	
 
    	
HALCÓN RESOURCES   CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David S. Elkouri
    
	
 
    	
Name:
    	
David S.   Elkouri
    
	
 
    	
Title:
    	
EVP,   Chief Legal Officer
    

 

[HALCÓN – SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

	
 
    	
CONSENTING HOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
·                  BLACKROCK 2022 GLOBAL INCOME OPPORTUNITY TRUST
    
	
 
    	
·                  BLACKROCK FLOATING RATE INCOME TRUST
    
	
 
    	
·                  BLACKROCK CORE BOND TRUST
    
	
 
    	
·                  BLACKROCK MULTI-SECTOR INCOME TRUST
    
	
 
    	
·                  BLACKROCK LIMITED DURATION INCOME TRUST
    
	
 
    	
·                  BLACKROCK LIMITED DURATION INCOME TRUST
    
	
 
    	
·                  BLACKROCK FUNDS II, BLACKROCK FLOATING RATE INCOME PORTFOLIO
    
	
 
    	
·                  BLACKROCK FUNDS II, BLACKROCK HIGH YIED BOND PORTFOLIO
    
	
 
    	
·                  BLACKROCK MULTI-ASSET INCOME PORTFOLIO OF BLACKROCK FUNDS II
    
	
 
    	
·                  BLACKROCK CREDIT STRATEGIES INCOME FUND OF BLACKROCK FUNDS II
    
	
 
    	
·                  BLACKROCK HIGH YIELD PORTFOLIO OF THE BLACKROCK SERIES   FUND, INC.
    
	
 
    	
·                  BLACKROCK HIGH YIELD V.I. FUND OF BLACKROCK VARIABLE SERIES   FUNDS, INC.
    
	
 
    	
·                  BLACKROCK DEBT STRATEGIES FUND, INC.
    
	
 
    	
·                  BLACKROCK CORPORATE HIGH YIELD FUND, INC.
    
	
 
    	
 
    
	
 
    	
By:                            BlackRock Advisors, LLC, as investment advisor for beneficial   holders of Notes listed above
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Anne   Marie Smith
    
	
 
    	
Name:
    	
Anne   Marie Smith
    
	
 
    	
Title:
    	
Authorized   Signatory
    
	
 
    	
 
    
	
 
    	
Principal   Amount of outstanding Notes beneficially owned by the above Consenting Holder:
    
	
 
    	
 
    

 

[HALCÓN — SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

	
 
    	
CONSENTING HOLDER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
·                  ABR REINSURANCE LTD.
    
	
 
    	
·                  JPMBI RE BLACKROCK BANKLOAN FUND
    
	
 
    	
·                  BLACKROCK DIVERSIVFIED DISTRIBUTION FUND
    
	
 
    	
·                  DEN PROFESSIONELLE FORENING DANSKE INVEST INSTITUTIONAL HIGH   YIELD BOND PORTFOLIO
    
	
 
    	
·                  GLOBAL HIGH YIELD BOND FUND, A SERIES OF DSBI — GLOBAL   INVESTMENT TRUST
    
	
 
    	
·                  BGF GLOBAL HIGH YIELD BOND FUND
    
	
 
    	
·                  EMPLOYEES’ RETIREMENT FUND OF THE CITY OF DALLAS
    
	
 
    	
·                  FIDEURAM ASSET MANAGEMENT (IRELAND) LTD.
    
	
 
    	
·                  BLACKROCK FLOATING RATE INCOME STRATEGIES FUND, INC.
    
	
 
    	
·                  BLACKROCK GLOBAL INVESTMENT SERIES: INCOME STRATEGIES PORTFOLIO
    
	
 
    	
·                  BGF — GLOBAL MULTI-ASSET INCOME FUND
    
	
 
    	
·                  ADFAM INVESTMENT COMPANY LLC
    
	
 
    	
·                  METROPOLITAN LIFE INSURANCE COMPANY ON BEHALF OF ITS SEPARATE   ACCOUNT NO. 479
    
	
 
    	
·                  BRIGHTHOUSE FUNDS TRUST I — BLACKROCK HIGH YIELD PORTFOLIO
    
	
 
    	
·                  FIXED INCOME OPPORTUNITIES NERO, LLC
    
	
 
    	
·                  RETIREMENT & SECURITY PROGRAM FOR EMPLOYEES OF THE   NATIONAL TELECOMMUNICATIONS COOPERATIVE ASSOCIATION
    
	
 
    	
·                  PENSION BENEFIT GUARANTY CORPORATION
    
	
 
    	
·                  THE PNC FINANCIAL SERVICES GROUP, INC. PENSION PLAN
    
	
 
    	
·                  PPL SERVICES CORPORATION MASTER TRUST
    
	
 
    	
·                  ADVANCED SERIES TRUST — AST BLACKROCK GLOBAL STRATEGIES   PORTFOLIO
    
	
 
    	
·                  UNIVERSAL-INVESTMENT-GESELLSCHAFT MBH RE RB-UI-FONDS
    
	
 
    	
·                  BAV RBI RENTEN US HY I
    

 

[HALCÓN — SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

	
 
    	
 

·                  BGF US DOLLAR HIGH YIELD BOND FUND
    
	
 
    	
 
    
	
 
    	
By:                            BlackRock Financial Management, Inc., as investment advisor   for beneficial holders of Notes listed above
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Anne   Marie Smith
    
	
 
    	
Name:
    	
Anne   Marie Smith
    
	
 
    	
Title:
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of outstanding Notes beneficially owned by the above Consenting   Holder:
    

 

[HALCÓN — SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

	
 
    	
CONSENTING HOLDER
    
	
 
    	
 
    
	
 
    	
·                  BLACKROCK SENIOR FLOATING RATE PORTFOLIO
    
	
 
    	
 
    
	
 
    	
By:                            BlackRock Investment Management, LLC, as investment advisor for beneficial   holders of Notes listed above
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Anne   Marie Smith
    
	
 
    	
Name:
    	
Anne   Marie Smith
    
	
 
    	
Title:
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of outstanding Notes beneficially owned by the above Consenting   Holder:
    

 

[HALCÓN — SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

	
 
    	
CONSENTING HOLDER
    
	
 
    	
 
    
	
 
    	
BRIGADE   CAPITAL MANAGEMENT, LP, as Investment Manger on behalf of certain beneficial   holders of Notes
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Patrick Criscillo
    
	
 
    	
Name:
    	
Patrick   Criscillo
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of outstanding Notes beneficially owned by the above Consenting   Holder:
    

 

[HALCÓN — SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

	
 
    	
CONSENTING HOLDER
    
	
 
    	
 
    
	
 
    	
GOLDMAN   SACHS ASSET MANAGEMENT, L.P., on behalf of various funds and accounts as   beneficial holders of Notes
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Goldstein
    
	
 
    	
Name:
    	
Michael Goldstein
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of outstanding Notes represented by the above Consenting Holder:
    

 

[HALCÓN — SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

	
 
    	
CONSENTING HOLDER
    
	
 
    	
 
    
	
 
    	
INDIANAPOLIS   HIGH YIELD GROUP OF J.P. MORGAN INVESTMENT MANAGEMENT INC., solely as   investment manager on behalf of certain beneficial holders of Notes
    
	
 
    	
 
    
	
 
    	
By   executing this Agreement INDIANAPOLIS HIGH YIELD GROUP OF J.P. MORGAN   INVESTMENT MANAGEMENT INC., solely as investment manager of certain   discretionary accounts holding the Notes, binds only itself, and itself only   in that capacity, and not any other affiliate of JPMorgan Chase &   Co., or any of its or their respective business unit thereof), and no such   affiliate shall be deemed to be bound by the terms of this Agreement by   virtue of INDIANAPOLIS HIGH YIELD GROUP OF J.P. MORGAN INVESTMENT MANAGEMENT   INC.’S execution of this Agreement. Moreover, INDIANAPOLIS HIGH YIELD   GROUP OF J.P. MORGAN INVESTMENT MANAGEMENT INC. shall have no obligation to   cause any of its affiliates to take or refrain from taking any action.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mark   Prenger
    
	
 
    	
Name:
    	
Mark   Prenger
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of outstanding Notes represented by the above Consenting Holder:
    

 

[HALCÓN — SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

	
 
    	
CONSENTING HOLDER
    
	
 
    	
 
    
	
 
    	
J.P.   MORGAN CHASE BANK, N.A., as trustee for certain comingled pension trust funds   as beneficial holders of Notes
    
	
 
    	
 
    
	
 
    	
By   executing this Agreement J.P. Morgan Chase Bank, N.A., solely as trustee for   certain comingled pension trust funds as beneficial holders of Notes, binds   only itself, and itself only in that capacity, and not any other affiliate of   JPMorgan Chase & Co., or any of its or their respective business   unit thereof), and no such affiliate shall be deemed to be bound by the terms   of this Agreement by virtue of J.P. Morgan Chase Bank, N.A.’s execution of   this Agreement. Moreover, J.P. Morgan Chase Bank, N.A. shall have no   obligation to cause any of its affiliates to take or refrain from taking any   action.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mark   Prenger
    
	
 
    	
Name:
    	
Mark   Prenger
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of outstanding Notes represented by the above Consenting Holder:
    

 

[HALCÓN — SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

	
 
    	
CONSENTING HOLDER
    
	
 
    	
 
    
	
 
    	
PGIM, INC.,   as investment advisor to Holder
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ryan   Kelly
    
	
 
    	
Name:
    	
Ryan   Kelly
    
	
 
    	
Title:
    	
Vice   President PGIM, Inc., as investment advisor to Holder
    
	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of outstanding Notes represented by the above Consenting Holder:
    

 

[HALCÓN — SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

	
 
    	
CONSENTING HOLDER
    
	
 
    	
 
    
	
 
    	
EATON   VANCE MANAGEMENT, on behalf of various funds and accounts as beneficial   holders of Notes
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael W. Weilheimer
    
	
 
    	
Name:
    	
Michael   W. Weilheimer
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of outstanding Notes represented by the above Consenting Holder:
    

 

[HALCÓN — SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

	
 
    	
CONSENTING HOLDER
    
	
 
    	
 
    
	
 
    	
BOSTON   MANAGEMENT AND RESEARCH, on behalf of various funds and accounts as   beneficial holders of Notes
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael W. Weilheimer
    
	
 
    	
Name:
    	
Michael   W. Weilheimer
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of outstanding Notes represented by the above Consenting Holder:
    

 

[HALCÓN — SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

	
 
    	
CONSENTING HOLDER
    
	
 
    	
 
    
	
 
    	
EATON   VANCE TRUST COMPANY, on behalf of various funds and accounts as beneficial holders   of Notes
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael W. Weilheimer
    
	
 
    	
Name:
    	
Michael   W. Weilheimer
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of outstanding Notes represented by the above Consenting Holder:
    
	
 
    	
 
    
	
 
    	
CONSENTING HOLDER
    
	
 
    	
 
    
	
 
    	
COLUMBIA   MANAGEMENT INVESTMENT ADVISERS, LLC, as investment adviser for various   beneficial holders of Notes
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Authorized Signatory
    
	
 
    	
Name:
    	
Authorized   Signatory
    
	
 
    	
Title:
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of outstanding Notes represented by the above Consenting Holder:
    

 

[HALCÓN — SIGNATURE PAGE TO SUPPORT AGREEMENT]

 

 

EXHIBIT A

 

Proposed Amendments to Indenture dated February 16, 2017 by and among Halcón Resources Corporation, certain Subsidiary Guarantors and U.S. Bank National Association, as Trustee, Governing 6.75% Senior Notes due 2025

 

(1)                                 The first clause (1) of the definition of “Asset Sale” in Section 1.1 of the Indenture will be amended to add thereto the bold underlined text as set forth below:

 

(1)                                 the sale, lease, conveyance or other disposition (including, without limitation, by means of a sale and leaseback transaction) of any assets, including, without limitation, any sale of hydrocarbons or other mineral products as a result of the creation of Production Payments and Reserve Sales; provided that the sale, lease conveyance or other disposition of all or substantially all of the assets of the Company and its Restricted Subsidiaries taken as a whole (except, in each case, with respect to a Williston Sale other than as provided in Section 4.7(l) hereof) will be governed by Section 4.11 hereof and/or Section 5.1 hereof and not by the provisions of Section 4.7 hereof; and

 

(2)                                 The following will be added to the end of the definition of “Change of Control” in Section 1.1 of the Indenture:

 

“Notwithstanding the foregoing, a Williston Sale, other than a Williston Sale described in Section 4.7(l) hereof, will conclusively be deemed not to constitute a Change of Control. In the event a Williston Sale is consummated, the Company shall deliver a Williston Sale Notice in respect of such Williston Sale.”

 

(3)                                 Clause (1) of the definition of “Permitted Liens” shall be deleted in its entirety and replaced with the following:

 

“(1)  Liens securing Indebtedness under Credit Facilities incurred and classified as existing under Section 4.3(b)(1) of the definition of “Permitted Indebtedness;”

 

(4)                                 The following definitions will be added to Section 1.1 of the Indenture in appropriate alphabetical order:

 

“Williston Sale” means the sale, conveyance or other disposition, in one or more transactions, whether directly and/or by sale of Capital Stock of one or more Subsidiaries, of (i) of all or substantially all of the Company’s assets located in the States of North Dakota and Montana (the “Williston Assets”) or (ii) of Oil and Gas Properties of the Company and its Restricted Subsidiaries located on the Fort Berthold Indian Reservation of the Three Affiliated Tribes in the State of North Dakota (the “Fort Berthold Assets”) that constitute, or are attributed, more than 30% of (x) net leased acreage, (y) proved crude oil and natural gas reserves calculated in accordance with SEC guidelines (as estimated in good faith most recently by the Company) or (z) net equivalent production of oil, natural gas or other hydrocarbons for the 12 months ended on June 30, 2017, of all of the Williston Properties located on such reservation; and, in each case, which transaction or transactions meets both of the following criteria:

 

 

(a) such transaction or transactions are subject to one or more definitive sales or other disposition agreements which have been fully executed and delivered before       , 2018 [one year from date of supplemental indenture adopting the amendments to which this definition is a part] and which in each case shall have been consummated before       , 2018 [eighteen months from date of supplemental indenture adopting the amendments to which this definition is a part]; and

 

(b) immediately following consummation of the first such Williston Sale, the sum of (A) cash and cash equivalents of the Company and its Restricted Subsidiaries plus (B) undrawn borrowings then available from Credit Facilities less the sum of (x) 103% of the Target Amount (as defined in clause (j) of this Section 4.7) plus (y) the amount of then outstanding principal of the Company’s 12.0% Second Lien Secured Senior Notes due 2022 plus the amount of  redemption premium applicable to such outstanding notes assuming a redemption in full of such notes within 60 days of the Williston Sale Date in accordance with the terms of the indenture governing such notes, equals at least $400.0 million;

 

provided, that neither the sale of Capital Stock of the Company nor any merger or consolidation of the Company shall in any event constitute a Williston Sale. For purposes of this definition, all transactions involving the sale, conveyance or other disposition, whether directly and/or by sale of Capital Stock of one or more Subsidiaries, of the Williston Assets (including, but not limited to, the Fort Berthold Assets), shall be aggregated for purposes of determining whether such transaction(s) falls within the foregoing clauses (i) and/or (ii).

 

“Williston Sale Date” means the date on which a Williston Sale is consummated.

 

“Williston Sale Notice” means a notice delivered by the Company, in the form of an  Officers’ Certificate to the Trustee, no later than two Business Days following the first Williston Sale Date briefly describing such Williston Sale and identifying the Williston Sale Date.

 

(5)                                 Clause (i) of Section 4.3(b)(1) of the Indenture shall be revised in its entirety to read as follows:

 

“(i) $900.0 million; provided, that from and after the consummation of the first Williston Sale, this amount shall be $350.0 million”.

 

(6)                                 The reference to “or clause (1) of paragraph (b) of this Section 4.3” appearing in Section 4.3(c)(2) shall be deleted.

 

(7)                                 Section 4.4(b) of the Indenture shall be revised to add the following provision after the end thereof:

 

“Notwithstanding the provisions of foregoing Section 4.4(b), from and after the first Williston Sale Date:

 

 

(i) each reference to the term “Issue Date” in Section 4.4(b) above shall instead be deemed to be a reference to the first Williston Sale Date;

 

(ii) the reference in Section 4.4(b)(3)(A) to “January 1, 2017” will be deemed to refer to the beginning of the fiscal quarter in which the first Williston Sale Date occurs; and

 

(iii) a new clause (E) will be deemed to have been added after Section 4.4(b)(3)(D) (replacing the period at the end of clause (D) with a semi-colon and preceding clause (E) by the word “plus”) as follows:

 

“(E) the lesser of (i) $250.0 million and (ii) the amount that would have been available for Restricted Payments under this clause (b)(3) of Section 4.4 immediately prior to consummation of the first Williston Sale (assuming compliance with clauses (1) and (2) of Section 4.4(b)).”.

 

(8)                                 Clause (13) of Section 4.4(c) of the Indenture shall be deleted in its entirety and replaced with the following:

 

“(13)  payments made by any Person other than the Company or any Restricted Subsidiary to the stockholders of the Company in connection with or as part of a merger or consolidation that constitutes a Change of Control giving rise to the right of each Holder of Securities to require the Company to make a Change of Control Offer under Section 4.11 of this Indenture; or”

 

(9)                                 Clause (14) of Section 4.4(c) of the Indenture shall be deleted in its entirety and replaced with the following:

 

“(14)  other Restricted Payments not to exceed (x) until consummation of the first Williston Sale, $50.0 million in the aggregate since the Issue Date and (y) thereafter, $25.0 million in the aggregate since the Issue Date.”

 

(10)                          The following will be added to the beginning of Section 4.7(b), to replace “Within”:

 

“Except with respect to a Williston Sale (in which case the Company will be required to make a Williston Sale Offer in accordance with Section 4.7(j) of this Indenture), within”

 

(11)                          The following new clauses (j), (k) and (l) will be added to the end of Section 4.7 of the Indenture:

 

“(j)                              Upon the consummation of the first Williston Sale, (i) the Company shall deliver a Williston Sale Notice to the Trustee within two Business Days of the consummation of the Williston Sale and (ii) no later than 10 Business Days after the Williston Sale Date, the Company will make an offer (the “Williston Sale Offer”) to all Holders of Securities to purchase for cash up to the sum of (x) 50% of aggregate principal amount of the Securities outstanding at commencement of such offer and (y) 50% of aggregate cash Net Proceeds (which, solely for purposes of this clause (j), will not reflect any reduction for taxes paid or payable as a result of the Williston Sale or amounts

 

 

required to be applied to the repayment of Indebtedness secured by a Lien on the asset or assets that were the subject of such Williston Sale) received by the Company or any of its Restricted Subsidiaries in respect of the Williston Sale in excess of $1.4 billion (such sum constituting the “Target Amount”) at an offer price equal to 103.0% of principal amount plus accrued and unpaid interest, if any, to the date of purchase. A Williston Sale Offer may be made in advance of a Williston Sale and conditioned on and subject to the consummation of such Williston Sale. Any proceeds of a Williston Sale that remain after consummation of a Williston Sale Offer may be used by the Company or its Restricted Subsidiaries for any purpose not otherwise prohibited by this Indenture, and shall not be subject to the requirements of clauses (b) or (c) of this Section 4.7.  If the aggregate principal amount of Securities tendered into such Williston Sale Offer exceeds the Target Amount, the Trustee shall select the Securities to be purchased on a pro rata basis in minimum denominations of $2,000 principal amount or multiples of $1,000 in excess thereof.

 

In connection with a Williston Sale Offer, the Company will send a notice to each Holder briefly describing the transaction or transactions that constitute the Williston Sale and offering to repurchase Securities as required above that are validly tendered prior to the close of business on the last Business Day prior to the purchase date specified in such notice (the “Purchase Date”), which date will be no earlier than 30 days nor later than 60 days from later of the date such notice is mailed or the Williston Sale Date, pursuant to the procedures required by this Indenture and described in such notice, provided that if the Williston Sale Offer is made in advance of the Williston Sale Date, the Purchase Date may be deferred until the date on which the Williston Sale is completed. On the Purchase Date, the Company will, to the extent lawful, accept for payment all Securities or portions thereof properly tendered pursuant to the Williston Sale Offer, subject to proration as described above, deposit with the Paying Agent an amount equal to the required purchase price for Securities accepted for purchase in such Williston Sale Offer, and deliver or cause to be delivered to the Trustee the Securities so accepted together with an Officers’ Certificate stating the aggregate principal amount of Securities or portions thereof being purchased by the Company. The Paying Agent will promptly pay (or cause to be transferred through the facilities of the Depositary) to each Holder of Securities so tendered and not withdrawn and accepted for payment in accordance with this Section 4.7(j), the required purchase price for such tendered Securities, and the Trustee will promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a new Security equal in principal amount to any unpurchased portion of the Securities surrendered, if any, by such Holder; provided that each such new Security will be in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. If the Purchase Date is after the taking of a record of the Holders on a record date and on or before the related Interest Payment Date, any accrued and unpaid interest will be paid to the Person in whose name a purchased Security is registered on such record date, and no other interest will be payable to Holders who tender Securities pursuant to the Williston Sale Offer. The provisions of clauses (h) and (i) of this Section 4.7 shall apply to a Williston Sale Offer as though it were an Asset Sale Offer.

 

(k)                                 Upon the consummation of the first Williston Sale, the Company or its Restricted Subsidiaries shall, on or before 90 days after the Williston Sale Date, redeem,

 

 

repurchase, retire, or otherwise satisfy and discharge, all of the Company’s 12.0% Second Lien Secured Senior Notes due 2022 then outstanding.

 

(l)                                     Any transaction that, on its own or together with other transactions, (x) constitutes a Williston Sale under clause (i) of the “Williston Sale” definition and (y) would result in the Company or any of its Restricted Subsidiaries receiving less than $1.2 billion in aggregate cash Net Proceeds (which, solely for purposes of this clause (l), will not reflect any reduction for taxes paid or payable as a result of the Williston Sale or amounts required to be applied to the repayment of Indebtedness secured by a Lien on the asset or assets that were the subject of such Williston Sale) from such transaction or transactions, is subject to Section 4.11 hereof and/or Section 5.1 hereof, notwithstanding any other provisions herein to the contrary.”

 

(12)                          The following will be added as a new clause (d) at the end of Section 5.1 of the Indenture:

 

“(d)                           Notwithstanding the foregoing, a Williston Sale, other than a Williston Sale described in Section 4.7(l) hereof, will conclusively be deemed not to constitute a “sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all of the properties or assets of the Company and its Restricted Subsidiaries taken as a whole” for purposes of Section 5.1(a) or 5.2 of this Indenture or a “transfer of all or substantially all of the properties of or assets of the Company” pursuant to Section 5.1(b) of this Indenture.”

 

(13)                          The following will be added to the end of Section 10.9(a) of the Indenture:

 

“The provisions of this Section 10.9(a) shall not apply to a Williston Sale.”

 

(14)                          The following will be added to the end of Section 11.10 of the Indenture:

 

“For purposes of this Section 11.10, the purchasing or acquiring Person in any Williston Sale will be deemed not to be a successor of the Company or any Guarantor.”

 

 

EXHIBIT B

 

FORM OF

JOINDER AGREEMENT2017 STOCK INCENTIVE PLAN

 

EXHIBIT 4.1

HEAT BIOLOGICS, INC.

 

2017 STOCK INCENTIVE PLAN

 

1.  Establishment and Purpose.

 

The purpose of the Heat Biologics, Inc. 2017 Stock Incentive Plan (the “Plan”) is to promote the interests of the Company and the stockholders of the Company by providing directors, officers, employees and consultants of the Company with appropriate incentives and rewards to encourage them to enter into and continue in the employ or service of the Company, to acquire a proprietary interest in the long-term success of the Company and to reward the performance of individuals in fulfilling long-term corporate objectives.

 

2.  Administration of the Plan.

 

The Plan shall be administered by a Committee appointed by the Board of Directors. The Committee shall have the authority, in its sole discretion, subject to and not inconsistent with the express terms and provisions of the Plan, to administer the Plan and to exercise all the powers and authorities either specifically granted to it under the Plan or necessary or advisable in the administration of the Plan, including, without limitation, the authority to grant Awards; to determine the persons to whom and the time or times at which Awards shall be granted; to determine the type and number of Awards to be granted (including whether an Option granted is an Incentive Stock Option or a Nonqualified Stock Option); to determine the number of shares of stock to which an Award may relate and the terms, conditions, restrictions and performance criteria, if any, relating to any Award; to determine whether, to what extent, and under what circumstances an Award may be settled, cancelled, forfeited, exchanged or surrendered; to make adjustments in the performance goals that may be required for any award in recognition of unusual or nonrecurring events affecting the Company or the financial statements of the Company (to the extent not inconsistent with Section 162(m) of the Code, if applicable), or in response to changes in applicable laws, regulations, or accounting principles; to construe and interpret the Plan and any Award; to prescribe, amend and rescind rules and regulations relating to the Plan; to determine the terms and provisions of Agreements; and to make all other determinations deemed necessary or advisable for the administration of the Plan.

 

The Committee may, in its absolute discretion, without amendment to the Plan, (a) accelerate the date on which any Option granted under the Plan becomes exercisable, waive or amend the operation of Plan provisions respecting exercise after termination of employment or otherwise adjust any of the terms of such Option, and (b) accelerate the vesting date, or waive any condition imposed hereunder, with respect to any share of Restricted Stock, or other Award or otherwise adjust any of the terms applicable to any such Award. Notwithstanding the foregoing, and subject to Sections 4(c) and 4(d), neither the Board of Directors, the Committee nor their respective delegates shall have the authority to re-price (or cancel and/or re-grant) any Option, Stock Appreciation Right or, if applicable, other Award at a lower exercise, base or purchase price without first obtaining the approval of the Company’s stockholders.

 

Subject to Section 162(m) of the Code and except as required by Rule 16b-3 with respect to grants of Awards to individuals who are subject to Section 16 of the Exchange Act, or as otherwise required for compliance with Rule 16b-3 or other applicable law, the Committee may delegate all or any part of its authority under the Plan to an employee, employees or committee of employees.

 

Subject to Section 162(m) of the Code and Section 16 of the Exchange Act, to the extent the Committee deems it necessary, appropriate or desirable to comply with foreign law or practices and to further the purpose of the Plan, the Committee may, without amending this Plan, establish special rules applicable to Awards granted to Participants who are foreign nationals, are employed outside the United States, or both, including rules that differ from those set forth in the Plan, and grant Awards to such Participants in accordance with those rules.

 

All decisions, determinations and interpretations of the Committee or the Board of Directors shall be final and binding on all persons with any interest in an Award, including the Company and the Participant (or any person claiming any rights under the Plan from or through any Participant). No member of the Committee or the Board of Directors shall be liable for any action taken or determination made in good faith with respect to the Plan or any Award.

 

1

 

3.  Definitions.

 

(a) “Agreement” shall mean the written agreement between the Company and a Participant evidencing an Award.

 

(b) “Annual Incentive Award” shall mean an Award described in Section 6(g) hereof that is based upon a period of one year or less.

 

(c) “Award” shall mean any Option, Restricted Stock, Stock Bonus award, Stock Appreciation Right, Performance Award, Other Stock-Based Award or Other Cash-Based Award granted pursuant to the terms of the Plan.

 

(d) “Board of Directors” shall mean the Board of Directors of the Company.

 

(e) “Cause” shall mean a termination of a Participant’s employment by the Company or any of its Subsidiaries due to (i) the continued failure, after written notice, by such Participant substantially to perform his or her duties with the Company or any of its Subsidiaries (other than any such failure resulting from incapacity due to reasonably documented physical illness or injury or mental illness), (ii) the engagement by such Participant in serious misconduct that causes, or in the good faith judgment of the Board of Directors may cause, harm (financial or otherwise) to the Company or any of its Subsidiaries including, without limitation, the disclosure of material secret or confidential information of the Company or any of its Subsidiaries or (iii) the material breach by the Participant of any agreement between such Participant, on the one hand, and the Company, on the other hand. Notwithstanding the above, with respect to any Participant who is a party to an employment agreement with the Company, Cause shall have the meaning set forth in such employment agreement.

 

(f) A “Change in Control” shall be deemed to have occurred if the event set forth in any one of the following paragraphs shall have occurred:

 

(i) any Person is or becomes the “Beneficial Owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company) representing 30% or more of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (A) of paragraph (iii) below; or

 

(ii) the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the Effective Date, constitute the Board of Directors and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board of Directors or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least a two-thirds of the directors then still in office who either were directors on the Effective Date or whose appointment, election or nomination for election was previously so approved or recommended; or

 

(iii) there is consummated a merger or consolidation of the Company with any other corporation other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 50% of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a re-capitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company) representing 30% or more of the combined voting power of the Company’s then outstanding securities; or

 

(iv) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity at least 75% of the combined voting power of the voting securities of which are owned by Persons in substantially the same proportions as their ownership of the Company immediately prior to such sale.

 

(g) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any regulations promulgated thereunder. References in the Plan to specific sections of the Code shall be deemed to include any successor provisions thereto.

2

 

(h) “Committee” shall mean, at the discretion of the Board of Directors, a Committee of the Board of Directors, which shall consist of two or more persons, each of whom, unless otherwise determined by the Board of Directors, is an “outside director” within the meaning of Section 162(m) of the Code and a “nonemployee director” within the meaning of Rule 16b-3.

 

(i) “Company” shall mean Heat Biologics, Inc., a Delaware corporation, and, where appropriate, each of its Subsidiaries.

 

(j) “Company Stock” shall mean the common stock of the Company, par value $0.0002 per share.

 

(k) “Disability” shall mean permanent disability as determined pursuant to the Company’s long-term disability plan or policy, in effect at the time of such disability.

 

(l) “Effective Date” shall mean the date as of which this Plan is adopted by the Board of Directors.

 

(m) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

(n) The “Fair Market Value” of a share of Company Stock, as of a date of determination, shall mean (1) the closing sales price per share of Company Stock on the national securities exchange on which such stock is principally traded on the date of the grant of such Award, or (2) if the shares of Company Stock are not listed or admitted to trading on any such exchange, the closing price as reported by the Nasdaq Stock Market for the last preceding date on which there was a sale of such stock on such exchange, or (3) if the shares of Company Stock are not then listed on a national securities exchange or traded in an over-the-counter market or the value of such shares is not otherwise determinable, such value as determined by the Committee in good faith upon the advice of a qualified valuation expert. In no event shall the fair market value of any share of Company Stock, the Option exercise price of any Option, the appreciation base per share of Company Stock under any Stock Appreciation Right, or the amount payable per share of Company Stock under any other Award, be less than the par value per share of Company Stock.

 

(o) “Full Value Award” means any Award, other than an Option or a Stock Appreciation Right, which Award is settled in Stock.

 

(p) “Incentive Stock Option” shall mean an Option that is an “incentive stock option” within the meaning of Section 422 of the Code, or any successor provision, and that is designated by the Committee as an Incentive Stock Option.

 

(q) “Long Term Incentive Award” shall mean an Award described in Section 6(g) hereof that is based upon a period in excess of one year.

 

(r) “Nonemployee Director” shall mean a member of the Board of Directors who is not an employee of the Company.

 

(s) “Nonqualified Stock Option” shall mean an Option other than an Incentive Stock Option.

 

(t) “Option” shall mean an option to purchase shares of Company Stock granted pursuant to Section 6(b).

 

(u) “Other Cash-Based Award” shall mean a right or other interest granted to a Participant pursuant to Section 6(g) hereof other than an Other Stock-Based Award.

 

(v) “Other Stock-Based Award” shall mean a right or other interest granted to a Participant, valued in whole or in part by reference to, or otherwise based on, or related to, Company Stock pursuant to Section 6(g) hereof, including but not limited to (i) unrestricted Company Stock awarded as a bonus or upon the attainment of performance goals or otherwise as permitted under the Plan, and (ii) a right granted to a Participant to acquire Company Stock from the Company containing terms and conditions prescribed by the Committee.

 

(w) “Participant” shall mean an employee, consultant or director of the Company to whom an Award is granted pursuant to the Plan, and, upon the death of the employee, consultant or director, his or her successors, heirs, executors and administrators, as the case may be.

 

(x) “Performance Award” shall mean an Award granted to a Participant pursuant to Section 6(f) hereof.

 

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(y) “Person” shall have the meaning set forth in Section 3(a)(9) of the Exchange Act, except that such term shall not include (1) the Company, (2) a trustee or other fiduciary holding securities under an employee benefit plan of the Company, (3) an underwriter temporarily holding securities pursuant to an offering of such securities, or (4) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

 

(z) “Restricted Stock” shall mean a share of Company Stock which is granted pursuant to the terms of Section 6(e) hereof.

 

(aa) “Retirement” shall mean, in the case of employees, the termination of employment with the Company (other than for Cause) during or after the calendar year in which a Participant has or will reach (i) age 55 with ten years of service with the Company, or (ii) age 60 with five years of service with the Company. “Retirement” shall mean, in the case of directors, the termination of service with the Company (other than for Cause) during or after the calendar year in which a Participant has or will reach age 75 with five years of service with the Company.

 

(bb) “Rule 16b-3” shall mean the Rule 16b-3 promulgated under the Exchange Act, as amended from time to time.

 

(cc) “Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

 

(dd) “Stock Appreciation Right” shall mean the right, granted to a Participant under Section 6(d), to be paid an amount measured by the appreciation in the Fair Market Value of a share of Company Stock from the date of grant to the date of exercise of the right, with payment to be made in cash and/or a share of Company Stock, as specified in the Award or determined by the Committee.

 

(ee) “Stock Bonus” shall mean a bonus payable in shares of Company Stock granted pursuant to Section 6(e) hereof.

 

(ff) “Subsidiary” shall mean a “subsidiary corporation” within the meaning of Section 424(f) of the Code.

  

4. Stock Subject to the Plan.

  

(a)  Shares Available for Awards. The maximum number of shares of Company Stock reserved for issuance under the Plan (all of which may be granted as Incentive Stock Options) shall be Five Million (5,000,000) shares. Notwithstanding the foregoing, of the Five Million (5,000,000) shares reserved for issuance under this Plan. Shares reserved under the Plan may be authorized but unissued Company Stock or authorized and issued Company Stock held in the Company’s treasury. The Committee may direct that any stock certificate evidencing shares issued pursuant to the Plan shall bear a legend setting forth such restrictions on transferability as may apply to such shares pursuant to the Plan.

 

(b)  Individual Limitation. The total number of shares of Company Stock subject to Awards awarded to any one Participant during any tax year of the Company shall be limited 2,500,000 shares of Common Stock.

 

(c)  Adjustment for Change in Capitalization. In the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Company Stock, or other property), recapitalization, Company Stock split, reverse Company Stock split, reorganization, merger, consolidation, spin-off, combination, repurchase, or share exchange, or other similar corporate transaction or event has occurred,  then the Committee shall make such equitable changes or adjustments as it deems necessary or appropriate to any or all of (1) the number and kind of shares of Company Stock which may thereafter be issued in connection with Awards, (2) the number and kind of shares of Company Stock, securities or other property (including cash) issued or issuable in respect of outstanding Awards, (3) the exercise price, grant price or purchase price relating to any Award, and (4) the maximum number of shares subject to Awards which may be awarded to any employee during any tax year of the Company; provided that, with respect to Incentive Stock Options, any such adjustment shall be made in accordance with Section 424 of the Code; and provided further that, no such adjustment shall cause any Award hereunder which is or could be subject to Section 409A of the Code to fail to comply with the requirements of such section.

 

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(d)  Reuse of Shares. Except as set forth below, if any shares subject to an Award are forfeited, cancelled, exchanged or surrendered, or if an Award terminates or expires without a distribution of shares to the Participant, the shares of stock with respect to such Award shall, to the extent of any such forfeiture, cancellation, exchange, surrender, withholding, termination or expiration, again be available for Awards under the Plan. Notwithstanding the foregoing, upon the exercise of any Award granted in tandem with any other Awards, such related Awards shall be cancelled to the extent of the number of shares of Company Stock as to which the Award is exercised and such number of shares shall no longer be available for Awards under the Plan. In addition, notwithstanding the forgoing, the shares of stock surrendered or withheld as payment of either the exercise price of an Option (including shares of stock otherwise underlying an Award of a Stock Appreciation Right that are retained by the Company to account for the appreciation base of such Stock Appreciation Right) and/or withholding taxes in respect of an Award shall no longer be available for Awards under the Plan.

 

5. Eligibility.

 

The persons who shall be eligible to receive Awards pursuant to the Plan shall be the individuals the Committee shall select from time to time, who are employees (including officers of the Company and its Subsidiaries, whether or not they are directors of the Company or its Subsidiaries), Nonemployee Directors, and consultants of the Company and its Subsidiaries; provided, that Incentive Stock Options shall be granted only to employees (including officers and directors who are also employees) of the Company or its Subsidiaries.

 

6. Awards Under the Plan.

 

(a)  Agreement.  The Committee may grant Awards in such amounts and with such terms and conditions as the Committee shall determine in its sole discretion, subject to the terms and provisions of the Plan. Each Award granted under the Plan (except an unconditional Stock Bonus) shall be evidenced by an Agreement as the Committee may in its sole discretion deem necessary or desirable and unless the Committee determines otherwise, such Agreement must be signed, acknowledged and returned by the Participant to the Company. Unless the Committee determines otherwise, any failure by the Participant to sign and return the Agreement within such period of time following the granting of the Award as the Committee shall prescribe shall cause such Award to the Participant to be null and void. By accepting an Award or other benefits under the Plan (including participation in the Plan), each Participant, shall be conclusively deemed to have indicated acceptance and ratification of, and consent to, all provisions of the Plan and the Agreement.

 

(b)  Stock Options.

 

(i)  Grant of Stock Options. The Committee may grant Options under the Plan to purchase shares of Company Stock in such amounts and subject to such terms and conditions as the Committee shall from time to time determine in its sole discretion, subject to the terms and provisions of the Plan. The exercise price of the share purchasable under an Option shall be determined by the Committee, but in no event shall the exercise price be less than the Fair Market Value per share on the grant date of such Option. The date as of which the Committee adopts a resolution granting an Option shall be considered the day on which such Option is granted unless such resolution specifies a later date.

 

(ii)  Identification. Each Option shall be clearly identified in the applicable Agreement as either an Incentive Stock Option or a Nonqualified Stock Option and shall state the number of shares of Company Stock to which the Option (and/or each type of Option) relates.

 

(c)  Special Requirements for Incentive Stock Options.

 

(i)  To the extent that the aggregate Fair Market Value of shares of Company Stock with respect to which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year under the Plan and any other stock option plan of the Company shall exceed $100,000, such Options shall be treated as Nonqualified Stock Options. Such Fair Market Value shall be determined as of the date on which each such Incentive Stock Option is granted.

 

(ii)  No Incentive Stock Option may be granted to an individual if, at the time of the proposed grant, such individual owns (or is deemed to own under the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company unless (A) the exercise price of such Incentive Stock Option is at least 110% of the Fair Market Value of a share of Company Stock at the time such Incentive Stock Option is granted and (B) such Incentive Stock Option is not exercisable after the expiration of five years from the date such Incentive Stock Option is granted.

 

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(d)  Stock Appreciation Rights.

 

(i)  The Committee may grant a related Stock Appreciation Right in connection with all or any part of an Option granted under the Plan, either at the time such Option is granted or at any time thereafter prior to the exercise, termination or cancellation of such Option, and subject to such terms and conditions as the Committee shall from time to time determine in its sole discretion, consistent with the terms and provisions of the Plan, provided, however, that in no event shall the appreciation base of the shares of Company Stock subject to the Stock Appreciation Right be less than the Fair Market Value per share on the grant date of such Stock Appreciation Right. The holder of a related Stock Appreciation Right shall, subject to the terms and conditions of the Plan and the applicable Agreement, have the right by exercise thereof to surrender to the Company for cancellation all or a portion of such related Stock Appreciation Right, but only to the extent that the related Option is then exercisable, and to be paid therefor an amount equal to the excess (if any) of (i) the aggregate Fair Market Value of the shares of Company Stock subject to the related Stock Appreciation Right or portion thereof surrendered (determined as of the exercise date), over (ii) the aggregate appreciation base of the shares of Company Stock subject to the Stock Appreciation Right or portion thereof surrendered. Upon any exercise of a related Stock Appreciation Right or any portion thereof, the number of shares of Company Stock subject to the related Option shall be reduced by the number of shares of Company Stock in respect of which such Stock Appreciation Right shall have been exercised.

 

(ii)  The Committee may grant unrelated Stock Appreciation Rights in such amount and subject to such terms and conditions, as the Committee shall from time to time determine in its sole discretion, subject to the terms and provisions of the Plan, provided, however, that in no event shall the appreciation base of the shares of Company Stock subject to the Stock Appreciation Right be less than the Fair Market Value per share on the grant date of such Stock Appreciation Right. The holder of an unrelated Stock Appreciation Right shall, subject to the terms and conditions of the Plan and the applicable Agreement, have the right to surrender to the Company for cancellation all or a portion of such Stock Appreciation Right, but only to the extent that such Stock Appreciation Right is then exercisable, and to be paid therefor an amount equal to the excess (if any) of (x) the aggregate Fair Market Value of the shares of Company Stock subject to the Stock Appreciation Right or portion thereof surrendered (determined as of the exercise date), over (y) the aggregate appreciation base of the shares of Company Stock subject to the Stock Appreciation Right or portion thereof surrendered.

 

(iii)  The grant or exercisability of any Stock Appreciation Right shall be subject to such conditions as the Committee, in its sole discretion, shall determine.

 

(e)  Restricted Stock and Stock Bonus.

 

(i)  The Committee may grant Restricted Stock awards, alone or in tandem with other Awards under the Plan, subject to such restrictions, terms and conditions, as the Committee shall determine in its sole discretion and as shall be evidenced by the applicable Agreements. The vesting of a Restricted Stock award granted under the Plan may be conditioned upon the completion of a specified period of employment or service with the Company or any Subsidiary, upon the attainment of specified performance goals, and/or upon such other criteria as the Committee may determine in its sole discretion.

 

(ii)  Each Agreement with respect to a Restricted Stock award shall set forth the amount (if any) to be paid by the Participant with respect to such Award and when and under what circumstances such payment is required to be made.

 

(iii)  The Committee may, upon such terms and conditions as the Committee determines in its sole discretion, provide that a certificate or certificates representing the shares underlying a Restricted Stock award shall be registered in the Participant’s name and bear an appropriate legend specifying that such shares are not transferable and are subject to the provisions of the Plan and the restrictions, terms and conditions set forth in the applicable Agreement, or that such certificate or certificates shall be held in escrow by the Company on behalf of the Participant until such shares become vested or are forfeited. Except as provided in the applicable Agreement, no shares underlying a Restricted Stock award may be assigned, transferred, or otherwise encumbered or disposed of by the Participant until such shares have vested in accordance with the terms of such Award.

 

(iv)  If and to the extent that the applicable Agreement may so provide, a Participant shall have the right to vote and receive dividends on the shares underlying a Restricted Stock award granted under the Plan. Unless otherwise provided in the applicable Agreement, any stock received as a dividend on or in connection with a stock split of the shares underlying a Restricted Stock award shall be subject to the same restrictions as the shares underlying such Restricted Stock award.

 

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(v)  The Committee may grant Stock Bonus awards, alone or in tandem with other Awards under the Plan, subject to such terms and conditions as the Committee shall determine in its sole discretion and as may be evidenced by the applicable Agreement.

 

(f)  Performance Awards.

 

(i)  The Committee may grant Performance Awards, alone or in tandem with other Awards under the Plan, to acquire shares of Company Stock in such amounts and subject to such terms and conditions as the Committee shall from time to time in its sole discretion determine, subject to the terms of the Plan. To the extent necessary to satisfy the short-term deferral exception to Section 409A of the Code, unless the Committee shall determine otherwise, the Performance Awards shall provide that payment shall be made within 2 1/2 months after the end of the year in which the Participant has a legally binding vested right to such award.

 

(ii)  In the event that the Committee grants a Performance Award or other Award (other than Nonqualified Stock Option or Incentive Stock Option or a Stock Appreciation Right) that is intended to constitute qualified performance-based compensation within the meaning Section 162(m) of the Code, the following rules shall apply (as such rules may be modified by the Committee to conform with Section 162(m) of the Code and the Treasury Regulations thereunder as may be in effect from time to time, and any amendments, revisions or successor provisions thereto): (a) payments under the Performance Award shall be made solely on account of the attainment of one or more objective performance goals established in writing by the Committee not later than 90 days after the commencement of the period of service to which the Performance Award relates (but in no event after 25% of the period of service has elapsed); (b) the performance goal(s) to which the Performance Award relates shall be based on one or more of the following business criteria applied to the Participant and/or a business unit or the Company and/or a Subsidiary: (1) scientific progress, (2) product development progress, (3) business development progress, including in-licensing, (4) sales, (5) sales growth, (6) earnings growth, (7) cash flow or cash position, (8) gross margins, (9) stock price, (10) financings (issuance of debt or equity), (11) market share, (12) total shareholder return, (13) net revenues, (14) earnings per share of Company Stock; (15) net income (before or after taxes), (16) return on assets, (17) return on sales, (18) return on assets, (19) equity or investment, (20) improvement of financial ratings, (21) achievement of balance sheet or income statement objectives or (22) total stockholder return. (23) earnings from continuing operations; levels of expense, cost or liability, (24) earnings before all or any interest, taxes, depreciation and/or amortization (“EBIT”, “EBITA” or “EBITDA”), (25) cost reduction goals, (26) business development goals (including without limitation regulatory submissions, product launches and other business development-related opportunities), (27) identification or consummation of investment opportunities or completion of specified projects in accordance with corporate business plans, including strategic mergers, acquisitions or divestitures, (28) meeting specified market penetration or value added goals, (29) development of new technologies (including patent application or issuance goals), (30) any combination of, or a specified increase or decrease of one or more of the foregoing over a specified period, and (31) such other criteria as the stockholders of the Company may approve; in each case as applicable, as determined in accordance with generally accepted accounting principles; and (c) once granted, the Committee may not have discretion to increase the amount payable under such Award, provided, however, that whether or not an Award is intended to constitute qualified performance-based compensation within the meaning of Section 162(m) of the Code, the Committee, to the extent provided by the Committee at the time the Award is granted or as otherwise permitted under Section 162(m) of the Code, shall have the authority to make appropriate adjustments in performance goals under an Award to reflect the impact of extraordinary items not reflected in such goals. For purposes of the Plan, extraordinary items shall be defined as (1) any profit or loss attributable to acquisitions or dispositions of stock or assets, (2) any changes in accounting standards that may be required or permitted by the Financial Accounting Standards Board or adopted by the Company after the goal is established, (3) all items of gain, loss or expense for the year related to restructuring charges for the Company, (4) all items of gain, loss or expense for the year determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the disposal of a segment of a business, (5) all items of gain, loss or expense for the year related to discontinued operations that do not qualify as a segment of a business as defined in APB Opinion No. 30, and (6) such other items as may be prescribed by Section 162(m) of the Code and the Treasury Regulations thereunder as may be in effect from time to time, and any amendments, revisions or successor provisions and any changes thereto. The Committee shall, prior to making payment under any award under this Section 6(f), certify in writing that all applicable performance goals have been attained. Notwithstanding anything to the contrary contained in the Plan or in any applicable Agreement, no dividends or dividend equivalents will be paid with respect to unvested Performance Awards.

 

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(g)  Other Stock- or Cash-Based Awards.

 

(i)  The Committee is authorized to grant Awards to Participants in the form of Other Stock-Based Awards or Other Cash-Based Awards, as deemed by the Committee to be consistent with the purposes of the Plan. To the extent necessary to satisfy the short-term deferral exception to Section 409A of the Code, unless the Committee shall determine otherwise, the awards shall provide that payment shall be made within 21⁄2 months after the end of the year in which the Participant has a legally binding vested right to such award. With respect to Other Cash-Based Awards intended to qualify as performance based compensation under Section 162(m) of the Code, (i) the maximum value of the aggregate payment that any Participant may receive with respect to any such Other Cash-Based Award that is an Annual Incentive Award is $6,000,000, (ii) the maximum value of the aggregate payment that any Participant may receive with respect to any such Other Cash-Based Award that is a Long Term Incentive Award is the amount set forth in clause (i) above multiplied by a fraction, the numerator of which is the number of months in the performance period and the denominator of which is twelve, and (iii) such additional rules set forth in Section 6(f) applicable to Awards intended to qualify as performance-based compensation under Section 162(m) shall apply. The Committee may establish such other rules applicable to the Other Stock- or Cash-Based Awards to the extent not inconsistent with Section 162(m) of the Code.

  

(h)  Exercisability of Awards; Cancellation of Awards in Certain Cases.

 

(i)  Except as hereinafter provided, each Agreement with respect to an Option or Stock Appreciation Right shall set forth the period during which and the conditions subject to which the Option or Stock Appreciation Right evidenced thereby shall be exercisable, and each Agreement with respect to a Restricted Stock award, Stock Bonus award, Performance Award or other Award shall set forth the period after which and the conditions subject to which amounts underlying such Award shall vest or be deliverable, all such periods and conditions to be determined by the Committee in its sole discretion.

 

(ii)  Except as provided in Section 7(d) hereof, no Option or Stock Appreciation Right may be exercised and no shares of Company Stock underlying any other Award under the Plan may vest or become deliverable more than ten years after the date of grant (the “Stated Expiration Date”).

 

(iii)  Except as provided in Section 7 hereof, no Option or Stock Appreciation Right may be exercised and no shares of Common Stock underlying any other Award under the Plan may vest or become deliverable unless the Participant is at such time in the employ (for Participants who are employees) or service (for Participants who are Nonemployee Directors or consultants) of the Company or a Subsidiary (or a company, or a parent or subsidiary company of such company, issuing or assuming the relevant right or award in a Change in Control) and has remained continuously so employed or in service since the relevant date of grant of the Award.

 

(iv)  An Option or Stock Appreciation Right shall be exercisable by the filing of a written notice of exercise or a notice of exercise in such other manner with the Company, on such form and in such manner as the Committee shall in its sole discretion prescribe, and by payment in accordance with Section 6(i) hereof.

 

(v)  Unless the applicable Agreement provides otherwise, the “Option exercise date” and the “Stock Appreciation Right exercise date” shall be the date that the written notice of exercise, together with payment, are received by the Company.

  

(i)  Payment of Award Price.

 

(i)  Unless the applicable Agreement provides otherwise or the Committee in its sole discretion otherwise determines, any written notice of exercise of an Option or Stock Appreciation Right must be accompanied by payment of the full Option or Stock Appreciation Right exercise price.

 

(ii)  Payment of the Option exercise price and of any other payment required by the Agreement to be made pursuant to any other Award shall be made in any combination of the following: (a) by certified or official bank check payable to the Company (or the equivalent thereof acceptable to the Committee), (b) with the consent of the Committee in its sole discretion, by personal check (subject to collection) which may in the Committee’s discretion be deemed conditional, (c) unless otherwise provided in the applicable Agreement, and as permitted by the Committee, by delivery of previously-acquired shares of Common Stock owned by the Participant having a Fair Market Value (determined as of the Option exercise date, in the case of Options, or other relevant payment date as determined by the Committee, in the case of other Awards) equal to the portion of the exercise price being paid thereby; and/or (d) unless otherwise provided in applicable agreement, and as permitted by the Committee, on a net-settlement basis with the Company withholding the amount of Common Stock sufficient to cover the exercise price and tax withholding obligation. Payment in accordance with clause 

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(a) of this Section 6(i)(ii) may be deemed to be satisfied, if and to the extent that the applicable Agreement so provides or the Committee permits, by delivery to the Company of an assignment of a sufficient amount of the proceeds from the sale of Company Stock to be acquired pursuant to the Award to pay for all of the Company Stock to be acquired pursuant to the Award and an authorization to the broker or selling agent to pay that amount to the Company and to effect such sale at the time of exercise or other delivery of shares of Company Stock.

7.  Termination of Employment.

 

(a)  Unless the applicable Agreement provides otherwise or the Committee in its sole discretion determines otherwise, upon termination of a Participant’s employment or service with the Company and its Subsidiaries by the Company or its Subsidiary for Cause (or in the case of a Nonemployee Director upon such Nonemployee Director’s failure to be renominated as Nonemployee Director of the Company), the portions of outstanding Options and Stock Appreciation Rights granted to such Participant that are exercisable as of the date of such termination of employment or service shall remain exercisable, and any payment or notice provided for under the terms of any other outstanding Award as respects the portion thereof that is vested as of the date of such termination of employment or service, may be given, for a period of thirty (30) days from and including the date of termination of employment or service (and shall thereafter terminate). All portions of outstanding Options or Stock Appreciation Rights granted to such Participant which are not exercisable as of the date of such termination of employment or service, and any other outstanding Award which is not vested as of the date of such termination of employment or service shall terminate upon the date of such termination of employment or service.

 

(b)  Unless the applicable Agreement provides otherwise or the Committee in its sole discretion determines otherwise, upon termination of the Participant’s employment or service with the Company and its Subsidiaries for any reason other than as described in subsection (a), (c), (d) or (e) hereof, the portions of outstanding Options and Stock Appreciation Rights granted to such Participant that are exercisable as of the date of such termination of employment or service shall remain exercisable for a period of ninety (90) days (and shall terminate thereafter), and any payment or notice provided for under the terms of any other outstanding Award as respects the portion thereof vested as of the date of termination of employment or service may be given, for a period of ninety (90) days from and including the date of termination of employment or service (and shall terminate thereafter). All additional portions of outstanding Options or Stock Appreciation Rights granted to such Participant which are not exercisable as of the date of such termination of employment or service, and any other outstanding Award which is not vested as of the date of such termination of employment or service shall terminate upon the date of such termination of employment or service.

 

(c)  Unless the applicable Agreement provides otherwise or the Committee in its sole discretion determines otherwise, if the Participant voluntarily Retires with the consent of the Company or the Participant’s employment or service terminates due to Disability, all outstanding Options, Stock Appreciation Rights and all other outstanding Awards (except, in the event a Participant voluntarily Retires, with respect to Awards (other than Options and Stock Appreciation Rights) intended to qualify as performance-based compensation within the meaning of Section 162(m) of the Code) granted to such Participant shall continue to vest in accordance with the terms of the applicable Agreements. The Participant shall be entitled to exercise each such Option or Stock Appreciation Right and to make any payment, give any notice or to satisfy other condition under each such other Award, in each case, for a period of one year from and including the later of (i) date such entire Award becomes vested or exercisable in accordance with the terms of such Award and (ii) the date of Retirement, and thereafter such Awards or parts thereof shall be canceled. Notwithstanding the foregoing, the Committee may in its sole discretion provide for a longer or shorter period for exercise of an Option or Stock Appreciation Right or may permit a Participant to continue vesting under an Option, Stock Appreciation Right or Restricted Stock award or to make any payment, give any notice or to satisfy other condition under any other Award. The Committee may in its sole discretion, and in accordance with Section 409A of the Code, determine (i) for purposes of the Plan, whether any termination of employment or service is a voluntary Retirement with the Company’s consent or is due to Disability for purposes of the Plan, (ii) whether any leave of absence (including any short-term or long-term Disability or medical leave) constitutes a termination of employment or service, or a failure to have remained continuously employed or in service, for purposes of the Plan (regardless of whether such leave or status would constitute such a termination or failure for purposes of employment law), (iii) the applicable date of any such termination of employment or service, and (iv) the impact, if any, of any of the foregoing on Awards under the Plan.

 

(d)  Unless the applicable Agreement provides otherwise or the Committee in its sole discretion determines otherwise, if the Participant’s employment or service terminates by reason of death, or if the Participant’s employment or service terminates under circumstances providing for continued rights under subsection (b), (c) or (e) of this Section 7 and during the period of continued rights described in subsection (b), (c) or (e) the Participant dies, all outstanding Options, Restricted Stock and Stock Appreciation Rights granted to such Participant shall vest and become fully exercisable, and any payment or notice provided for under the terms of any other outstanding Award may be immediately paid or given and any 

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condition may be satisfied, by the person to whom such rights have passed under the Participant’s will (or if applicable, pursuant to the laws of descent and distribution) for a period of one year from and including the date of the Participant’s death and thereafter all such Awards or parts thereof shall be canceled.

 

(e)  Unless the applicable Agreement provides otherwise or the Committee in its sole discretion determines otherwise, upon termination of a Participant’s employment or service with the Company and its Subsidiaries (i) by the Company or its Subsidiaries without Cause (including, in case of a Nonemployee Director, the failure to be elected as a Nonemployee Director) or (ii) by the Participant for “good reason” or any like term as defined under any employment agreement with the Company or a Subsidiary to which a Participant may be a party to, the portions of outstanding Options and Stock Appreciation Rights granted to such Participant which are exercisable as of the date of termination of employment or service of such Participant shall remain exercisable, and any payment or notice provided for under the terms of any other outstanding Award as respects the portion thereof vested as of the date of termination of employment or service may be given, for a period of one year from and including the date of termination of employment or service and shall terminate thereafter. Unless the applicable Agreement provides otherwise or the Committee in its sole discretion determines otherwise, any other outstanding Award shall terminate as of the date of such termination of employment or service.

 

(f)  Notwithstanding anything in this Section 7 to the contrary, no Option or Stock Appreciation Right may be exercised and no shares of Company Stock underlying any other Award under the Plan may vest or become deliverable past the Stated Expiration Date.

 

8.  Effect of Change in Control.

 

Unless otherwise determined in an Award Agreement, in the event of a Change in Control:

 

(a)  With respect to each outstanding Award that is assumed or substituted in connection with a Change in Control, in the event of a termination of a Participant’s employment or service by the Company without Cause during the 24-month period following such Change in Control, on the date of such termination (i) such Award shall become fully vested and, if applicable, exercisable, (ii) the restrictions, payment conditions, and forfeiture conditions applicable to any such Award granted shall lapse, and (iii) any performance conditions imposed with respect to Awards shall be deemed to be fully achieved at target levels.

 

(b)  With respect to each outstanding Award that is not assumed or substituted in connection with a Change in Control, immediately upon the occurrence of the Change in Control, (i) such Award shall become fully vested and, if applicable, exercisable, (ii) the restrictions, payment conditions, and forfeiture conditions applicable to any such Award granted shall lapse, and (iii) any performance conditions imposed with respect to Awards shall be deemed to be fully achieved at target levels.

 

(c)  For purposes of this Section 8, an Award shall be considered assumed or substituted for if, following the Change in Control, the Award remains subject to the same terms and conditions that were applicable to the Award immediately prior to the Change in Control except that, if the Award related to Shares, the Award instead confers the right to receive Common Stock of the acquiring entity.

 

(d)  Notwithstanding any other provision of the Plan: (i) in the event of a Change in Control, except as would otherwise result in adverse tax consequences under Section 409A of the Code, the Board may, in its sole discretion, provide that each Award shall, immediately upon the occurrence of a Change in Control, be cancelled in exchange for a payment in cash or securities in an amount equal to (x) the excess of the consideration paid per Share in the Change in Control over the exercise or purchase price (if any) per Share subject to the Award multiplied by (y) the number of Shares granted under the Award and (ii) with respect to any Award that constitutes a deferral of compensation subject to Section 409A of the Code, in the event of a Change in Control that does not constitute a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company under Section 409A(a)(2)(A)(v) of the Code and regulations thereunder, such Award shall be settled in accordance with its original terms or at such earlier time as permitted by Section 409A of the Code.

  

9.  Miscellaneous.

 

(a) Agreements evidencing Awards under the Plan shall contain such other terms and conditions, not inconsistent with the Plan, as the Committee may determine in its sole discretion, including penalties for the commission of competitive acts or other actions detrimental to the Company. Notwithstanding any other provision hereof, the Committee shall have the right at any time to deny or delay a Participant’s exercise of Options if such Participant is reasonably believed by the 

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Committee (i) to be engaged in material conduct adversely affecting the Company or (ii) to be contemplating such conduct, unless and until the Committee shall have received reasonable assurance that the Participant is not engaged in, and is not contemplating, such material conduct adverse to the interests of the Company. 

(b)  Participants are and at all times shall remain subject to the trading window policies adopted by the Company from time to time throughout the period of time during which they may exercise Options, Stock Appreciation Rights or sell shares of Company Stock acquired pursuant to the Plan. 

10. No Special Employment Rights, No Right to Award.

 

(a)  Nothing contained in the Plan or any Agreement shall confer upon any Participant any right with respect to the continuation of employment or service by the Company or interfere in any way with the right of the Company, subject to the terms of any separate employment agreement to the contrary, at any time to terminate such employment or service or to increase or decrease the compensation of the Participant.

 

(b)  No person shall have any claim or right to receive an Award hereunder. The Committee’s granting of an Award to a Participant at any time shall neither require the Committee to grant any other Award to such Participant or other person at any time or preclude the Committee from making subsequent grants to such Participant or any other person.

 

11. Securities Matters.

 

(a)  The Company shall be under no obligation to effect the registration pursuant to the Securities Act of any interests in the Plan or any shares of Company Stock to be issued hereunder or to effect similar compliance under any state laws. Notwithstanding anything herein to the contrary, the Company shall not be obligated to cause to be issued or delivered any certificates evidencing shares of Company Stock pursuant to the Plan unless and until the Company is advised by its counsel that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange on which shares of Company Stock are traded. The Committee may require, as a condition of the issuance and delivery of certificates evidencing shares of Company Stock pursuant to the terms hereof, that the recipient of such shares make such agreements and representations, and that such certificates bear such legends, as the Committee, in its sole discretion, deems necessary or desirable.

 

(b)  The transfer of any shares of Company Stock hereunder shall be effective only at such time as counsel to the Company shall have determined that the issuance and delivery of such shares is in compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange on which shares of Company Stock are traded. The Committee may, in its sole discretion, defer the effectiveness of any transfer of shares of Company Stock hereunder in order to allow the issuance of such shares to be made pursuant to registration or an exemption from registration or other methods for compliance available under federal or state securities laws. The Committee shall inform the Participant in writing of its decision to defer the effectiveness of a transfer. During the period of such deferral in connection with the exercise of an Award, the Participant may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto.

 

12. Withholding Taxes.

 

(a)  Whenever cash is to be paid pursuant to an Award, the Company shall have the right to deduct therefrom an amount sufficient to satisfy any federal, state and local withholding tax requirements related thereto.

 

(b)  Whenever shares of Company Stock are to be delivered pursuant to an Award, the Company shall have the right to require the Participant to remit to the Company in cash an amount sufficient to satisfy any federal, state and local withholding tax requirements related thereto. With the approval of the Committee, a Participant may satisfy the foregoing requirement by electing to have the Company withhold from delivery shares of Company Stock having a value equal to the minimum amount of tax required to be withheld. Such shares shall be valued at their Fair Market Value on the date of which the amount of tax to be withheld is determined. Fractional share amounts shall be settled in cash. Such a withholding election may be made with respect to all or any portion of the shares to be delivered pursuant to an Award.

 

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13. Non-Competition and Confidentiality.

 

By accepting Awards and as a condition to the exercise of Awards and the enjoyment of any benefits of the Plan, including participation therein, each Participant agrees to be bound by and subject to non-competition, confidentiality and invention ownership agreements acceptable to the Committee or any officer or director to whom the Committee elects to delegate such authority.

  

14. Notification of Election Under Section 83(b) of the Code.

 

If any Participant shall, in connection with the acquisition of shares of Company Stock under the Plan, make the election permitted under Section 83(b) of the Code, such Participant shall notify the Company of such election within 10 days of filing notice of the election with the Internal Revenue Service.

 

15. Amendment or Termination of the Plan.

 

The Board of Directors or the Committee may, at any time, suspend or terminate the Plan or revise or amend it in any respect whatsoever; provided, however, that the requisite stockholder approval shall be required if and to the extent the Board of Directors or Committee determines that such approval is appropriate or necessary for purposes of satisfying Sections 162(m) or 422 of the Code or Rule 16b-3 or other applicable law. Awards may be granted under the Plan prior to the receipt of such stockholder approval of the Plan but each such grant shall be subject in its entirety to such approval and no Award may be exercised, vested or otherwise satisfied prior to the receipt of such approval. No amendment or termination of the Plan may, without the consent of a Participant, adversely affect the Participant’s rights under any outstanding Award.

 

16. Transfers Upon Death; Nonassignability.

 

(a)  A Participant may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Participant, upon the death of a Participant, outstanding Awards granted to such Participant may be exercised only by the executor or administrator of the Participant’s estate or by a person who shall have acquired the right to such exercise by will or by the laws of descent and distribution. No transfer of an Award by will or the laws of descent and distribution shall be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and with a copy of the will and/or such evidence as the Committee may deem necessary to establish the validity of the transfer and an agreement by the transferee to comply with all the terms and conditions of the Award that are or would have been applicable to the Participant and to be bound by the acknowledgments made by the Participant in connection with the grant of the Award.

 

(b)  During a Participant’s lifetime, the Committee may, in its discretion, pursuant to the provisions set forth in this clause (b), permit the transfer, assignment or other encumbrance of an outstanding Option unless such Option is an Incentive Stock Option and the Committee and the Participant intends that it shall retain such status. Subject to the approval of the Committee and to any conditions that the Committee may prescribe, a Participant may, upon providing written notice to the General Counsel of the Company, elect to transfer any or all Options granted to such Participant pursuant to the Plan to members of his or her immediate family, including, but not limited to, children, grandchildren and spouse or to trusts for the benefit of such immediate family members or to partnerships in which such family members are the only partners; provided, however, that no such transfer by any Participant may be made in exchange for consideration. Any such transferee must agree, in writing, to be bound by all provisions of the Plan.

 

17. Effective Date and Term of Plan.

 

The Plan shall become effective on the Effective Date, but the Plan shall be subject to the requisite approval of the stockholders of the Company at the Company’s next annual meeting of its shareholders. In the absence of such approval, such Awards shall be null and void. Unless earlier terminated by the Board of Directors, the right to grant Awards under the Plan shall terminate on the tenth anniversary of the Effective Date. Awards outstanding at Plan termination shall remain in effect according to their terms and the provisions of the Plan.

 

18. Applicable Law.

 

Except to the extent preempted by any applicable federal law, the Plan shall be construed and administered in accordance with the laws of the State of Delaware, without reference to its principles of conflicts of law.

 

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19. Participant Rights.

 

(a)  No Participant shall have any claim to be granted any award under the Plan, and there is no obligation for uniformity of treatment for Participants. Except as provided specifically herein, a Participant or a transferee of an Award shall have no rights as a stockholder with respect to any shares covered by any award until the date of the issuance of a Company Stock certificate to him or her for such shares.

(b)  Determinations by the Committee under the Plan relating to the form, amount and terms and conditions of grants and Awards need not be uniform, and may be made selectively among persons who receive or are eligible to receive grants and awards under the Plan, whether or not such persons are similarly situated.

 

20. Unfunded Status of Awards.

 

The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Agreement shall give any such Participant any rights that are greater than those of a general creditor of the Company.

 

21. No Fractional Shares.

 

No fractional shares of Company Stock shall be issued or delivered pursuant to the Plan. The Committee 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. 

22. Interpretation.

 

The Plan is designed and intended to the extent applicable, to comply with Section 162(m) of the Code, and to provide for grants and other transactions which are exempt under Rule 16b-3, and all provisions hereof shall be construed in a manner to so comply. Awards under the Plan are intended to comply with Code Section 409A to the extent subject thereto and the Plan and all Awards shall be interpreted in accordance with Code Section 409A and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the effective date of the Plan. Notwithstanding any provision in the Plan to the contrary, no payment or distribution under this Plan that constitutes an item of deferred compensation under Code Section 409A and becomes payable by reason of a Participant’s termination of employment or service with the Company will be made to such Participant until such Participant’s termination of employment or service constitutes a “separation from service” (as defined in Code Section 409A). For purposes of this Plan, each amount to be paid or benefit to be provided shall be construed as a separate identified payment for purposes of Code Section 409A. If a participant is a “specified employee” (as defined in Code Section 409A), then to the extent necessary to avoid the imposition of taxes under Code Section 409A, such Participant shall not be entitled to any payments upon a termination of his or her employment or service until the earlier of: (i) the expiration of the six (6)-month period measured from the date of such Participant’s “separation from service” or (ii) the date of such Participant’s death. Upon the expiration of the applicable waiting period set forth in the preceding sentence, all payments and benefits deferred pursuant to this Section 22 (whether they would have otherwise been payable in a single lump sum or in installments in the absence of such deferral) shall be paid to such Participant in a lump sum as soon as practicable, but in no event later than sixty (60) calendar days, following such expired period, and any remaining payments due under this Plan will be paid in accordance with the normal payment dates specified for them herein.

 

 

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This 2017 Plan was approved and adopted by (1) the Board of Directors on the 28th day of April, 2017 and (2) by the Company’s stockholders on the 29th day of June, 2017.

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