Document:

Exhibit 10.3

 

TENDER AND SUPPORT AGREEMENT

 

This Tender and Support Agreement
(this “Agreement”) is made and entered into as of November 21, 2021, by and among Paloma Partners VI Holdings,
LLC, a Delaware limited liability company (“Parent”), Paloma VI Merger Sub, Inc., a Delaware corporation and
wholly-owned subsidiary of Parent (“Merger Sub”), solely as set forth in Section 2.05, 6.02 and
Section 6.04, Goodrich Petroleum Corporation, a Delaware corporation (the “Company”), and each Person
set forth in Schedule A hereto (each, a “Stockholder”). Capitalized terms used herein are defined as provided
in Section 6.10 of this Agreement.

 

WHEREAS, as of the date of
this Agreement, each Stockholder is the Beneficial Owner of the number of shares of Company Common Stock (as defined below) set forth
opposite such Stockholder’s name on Schedule A hereto; and

 

WHEREAS, as a condition and
inducement to Parent’s and Merger Sub’s willingness to enter into the Agreement and Plan of Merger, dated as of the date
of this Agreement (the “Merger Agreement”), with the Company, Parent has requested each Stockholder, and each Stockholder
has agreed severally and not jointly, to enter into this Agreement with respect to such Stockholder’s Subject Shares (as defined
below).

 

NOW, THEREFORE, the parties
hereto agree as follows:

 

Article 1

AGREEMENT TO TENDER

 

Section 1.01     Tender
of Shares. Each Stockholder shall as promptly as practicable (a) validly tender or cause to be validly tendered pursuant to
and in accordance with the terms of the Tender Offer, all of the Subject Shares (free and clear of any liens, encumbrances or restrictions,
other than Permitted Encumbrances (as defined below)) Beneficially Owned by such Stockholder at any time during the Support Period and
(b) deliver all other documents or instruments required to be delivered by such Stockholder pursuant to the terms of the Tender
Offer in connection with such valid tender of such Subject Shares, including (i) a letter of transmittal with respect to such Subject
Shares, complying with the terms of the Tender Offer as set forth in the Offer to Purchase and (ii) a certificate representing such
Subject Shares or an “agent’s message” (or such other evidence, if any, of transfer as may be required) in the case
of a book-entry share of any uncertificated Subject Shares. Without limiting the generality of the foregoing, each Stockholder shall
comply fully with the obligations set forth in this Section 1.01, (a) with respect to all Subject Shares Beneficially
Owned by such Stockholder at any time during the first five (5) Business Days of the Support Period, not later than ten (10) Business
Days after the commencement of the Tender Offer and (b) with respect to all other Subject Shares Beneficially Owned by such Stockholder
at any time during the Support Period, not later than two (2) Business Days following the acquisition of Beneficial Ownership, but
in any event prior to the expiration of the Tender Offer.

 

Section 1.02     No
Withdrawal. Each Stockholder covenants and agrees not to withdraw, and not to cause or permit to be withdrawn, any Subject Shares
from the Tender Offer, unless and until this Agreement is terminated in accordance with Section 6.02.

 

     

     

    

 

Section 1.03     Conditional
Obligation. Each Stockholder acknowledges and agrees that Merger Sub’s obligation to accept for payment shares of Company Common
Stock tendered pursuant to the Offer to Purchase, including any Subject Shares tendered by such Stockholder, is subject to the terms
and conditions of the Merger Agreement and the Offer to Purchase.

 

Section 1.04     Return
of Subject Securities. If the Merger Agreement is terminated prior to the Acceptance Time, Parent and Merger Sub shall, or shall
cause any depository or other party acting on behalf of Parent and Merger Sub to, promptly return to each Stockholder all shares of Company
Common Stock tendered by such Stockholder in the Offer to Purchase.

 

Article 2

VOTING AGREEMENT; GRANT OF PROXY; CONVERTIBLE NOTES; WARRANTS

 

Section 2.01     Voting
Agreement. Each Stockholder hereby agrees that such Stockholder will not vote any Subject Shares in favor of, or consent to, and
will vote against and not consent to, the approval of any (a) Acquisition Proposal, other than the Merger and the other Transactions,
(b) corporate action or proposal submitted for approval by stockholders of the Company (including, without limitation, any amendment
to the Company’s certificate of incorporation or bylaws), the consummation of which could impede, interfere with, prevent or delay
the consummation of the Transactions, including, without limitation, the Merger and the purchase of all shares of Company Common Stock
validly tendered pursuant to the Tender Offer and not withdrawn, or (c) other corporate action or proposal submitted for approval
by stockholders of the Company, substantially facilitating any of the foregoing matters described in the immediately preceding clauses (a) or
(b), or that could reasonably be expected to result in a breach of any covenant, representation or warranty or any other obligation or
agreement of such Stockholder under this Agreement. Each Stockholder shall ensure that any other Person having voting power with respect
to any of such Stockholder’s Subject Shares will not vote any of such Subject Shares in favor of or consent to, and will vote against,
the approval of the matters described in clauses (a) through (c) of the preceding sentence.

 

Section 2.02     Irrevocable
Proxy. Each Stockholder hereby revokes any and all previous proxies granted with respect to any of such Stockholder’s Subject
Shares. By entering into this Agreement, each Stockholder hereby grants a proxy appointing Parent as such Stockholder’s attorney-in-fact
and proxy, with full power of substitution, for and in such Stockholder’s name, to vote, express consent or dissent, or otherwise
to utilize such voting power with respect to the matters described in Section 2.01 (in the manner contemplated by Section 2.01).
Subject to the last sentence of this Section 2.02, the proxy granted by each Stockholder pursuant to this Section 2.02
is irrevocable and is granted in consideration of Parent and Merger Sub entering into this Agreement and the Merger Agreement and
incurring certain related fees and expenses. The proxy granted by each Stockholder shall not be exercised to vote, consent or act on
any matter except as contemplated by Section 2.01. The proxy granted by each Stockholder shall be revoked upon termination
of this Agreement in accordance with its terms.

 

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Section 2.03     Convertible
Notes. Each Stockholder that Beneficially Owns any Convertible Notes at any time during the Support Period shall exercise its right
to convert fully all of its Convertible Notes into shares of Company Common Stock pursuant to Article Four of the Indenture no later
than ten (10) Business Days prior to the expiration of the Tender Offer; provided, however, each such Stockholder shall not be required
to convert all of its Convertible Notes unless and until the sales price of Company Common Stock as reported on NYSE American, EEC is
greater than the Conversion Price (as defined in the Indenture). Each such Stockholder that Beneficially Owns any Convertible Notes at
any time during the Support Period shall take all action and execute and deliver all documentation (including without limitation any
notices, waivers and other instruments or actions required pursuant to the Indenture, the Convertible Notes or the policies or procedures
of The Depository Trust Company) necessary to effect such conversion in accordance with the previous sentence in order to facilitate
its tender of all shares of Company Common Stock issued upon such conversion pursuant to and in accordance with the terms of the Tender
Offer, in strict compliance with Section 1.01.

 

Section 2.04     Warrants.
Each Stockholder that Beneficially Owns any Warrants at any time during the Support Period (a) hereby irrevocably and fully exercises
all such Warrants to purchase shares of Company Common Stock and (b) as soon as practicable following the execution and delivery
of this Agreement, shall execute and deliver all documentation (including any notices required pursuant to the terms governing such Warrants)
necessary to effect such exercise as soon as possible following its execution and delivery of this Agreement and on a timely basis to
enable and facilitate its tender of all such shares of Company Common Stock pursuant to and in accordance with the terms of the Tender
Offer, in strict compliance with Section 1.01.

 

Section 2.05     Company.
The Company and each Stockholder that Beneficially Owns any Convertible Notes at any time during the Support Period acknowledge and agree
that Section 4.09 of the Indenture is hereby waived and shall be of no force or effect with respect to the conversions of Convertible
Notes contemplated by this Agreement. Furthermore, the Company agrees that it will comply with its obligations under the Indenture and
the Warrant Agreement with respect to the transactions contemplated by Section 2.03 and Section 2.04.

 

Article 3

REPRESENTATIONS AND WARRANTIES OF STOCKHOLDER

 

Each Stockholder represents
and warrants to Parent and Merger Sub as to such Stockholder, severally but not jointly, that:

 

Section 3.01     Authorization.
The execution, delivery and performance by such Stockholder of this Agreement and the consummation by such Stockholder of the transactions
contemplated hereby are within the powers (corporate and otherwise) of such Stockholder and, if applicable, have been duly authorized
by all necessary corporate, company, partnership or other action. Assuming the due authorization, execution and delivery of this Agreement
by Parent and Merger Sub, this Agreement constitutes a valid and binding agreement of such Stockholder, enforceable against such Stockholder
in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law
affecting creditors’ rights generally and to rules of law governing specific performance, injunctive relief and other equitable
remedies.

 

Section 3.02     Consents
and Approvals. No filing with, and no permit, authorization, consent or approval of, any Governmental Authority is necessary for
the execution of this Agreement by such Stockholder and the consummation by such Stockholder of the transactions contemplated by this
Agreement, except where the failure to obtain such permits, authorizations, consents or approvals would not adversely affect in any material
respect the ability of such Stockholder to perform its obligations hereunder and except for filing requirements as may be required under
applicable state or federal securities laws.

 

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Section 3.03     Non-Contravention.
The execution, delivery and performance by such Stockholder of this Agreement and the consummation of the transactions contemplated hereby
do not and will not (a) violate the certificate of incorporation or bylaws, operating agreement, limited liability company agreement,
partnership agreement or other comparable charter or organizational documents, of such Stockholder, if any, (b) violate any applicable
Law, (c) conflict with or violate or require any consent, approval, notice or other action by any Person under, constitute a default
(with or without notice of lapse of time or both) under, or give rise to any right of termination, cancellation or acceleration or to
a loss of any benefit to which such Stockholder is entitled under any provision of any Contract binding on such Stockholder or any of
Stockholder’s properties or assets, including the Subject Shares or (d) result in the imposition of any lien, encumbrance
or restriction on any asset of such Stockholder, except, in the case of clauses (b), (c) and (d), for such occurrences which
would not adversely affect in any material respect the ability of such Stockholder to perform its obligations hereunder.

 

Section 3.04     Ownership
of Shares. Such Stockholder is the Beneficial Owner of the aggregate principal amount Convertible Notes, if any, the aggregate number
of shares of Company Common Stock and Warrants, in each case, set forth in Schedule A hereto opposite such Stockholder’s
name (after giving effect to Section 5.04), free and clear of any lien, encumbrance and any other limitation or restriction
(including any restriction on the right to vote, tender or otherwise dispose of the Subject Shares, including without limitation pursuant
to the Tender Offer), other than liens arising under applicable securities Laws, any liens created by this Agreement and any liens under
the organizational documents of the Company (collectively, “Permitted Encumbrances”). None of such shares of Company
Common Stock and none of such Convertible Notes is subject to any voting trust or other Contract with respect to the voting of such shares
of Company Common Stock (including shares issuable upon conversion of Convertible Notes) except as set forth in this Agreement.

 

Section 3.05     Total
Shares. Except for the shares of Company Common Stock; Convertible Notes and Warrants set forth in Schedule A hereto
(after giving effect to Section 5.04), such Stockholder does not Beneficially Own any Equity Securities of the Company.

 

Section 3.06     Stockholder
Has Adequate Information. Such Stockholder is a sophisticated seller with respect to the Subject Shares and has adequate information
concerning the business and financial condition of the Company to make an informed decision regarding the sale of the Subject Shares
and has independently and without reliance upon either Merger Sub or Parent and based on such information as such Stockholder has deemed
appropriate, made its own analysis and decision to enter into this Agreement. Such Stockholder acknowledges that neither Merger Sub nor
Parent has made and neither makes any representation or warranty, whether express or implied, of any kind or character except as expressly
set forth in this Agreement or the Merger Agreement.

 

Section 3.07     No
Broker’s Fees. No broker, investment banker, financial advisor, or other person is entitled to any broker’s, finder’s,
financial advisor’s, or other similar fee or commission payable by Parent, Merger Sub or the Company in connection with the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of such Stockholder.

 

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Section 3.08     Reliance.
Such Stockholder understands and acknowledges that each of Parent and Merger Sub is entering into the Merger Agreement in reliance upon
such Stockholder’s execution, delivery and performance of this Agreement.

 

Article 4

REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB

 

Parent and Merger Sub represent
and warrant to each Stockholder that:

 

Section 4.01     Authorization.
The execution, delivery and performance by Parent and Merger Sub of this Agreement and the consummation by Parent and Merger Sub of the
transactions contemplated hereby are within the powers of Parent and the corporate powers of Merger Sub and have been duly authorized
by all necessary action. Assuming the due authorization, execution and delivery of this Agreement by each Stockholder, this Agreement
constitutes a valid and binding agreement of Parent and Merger Sub, enforceable against Parent and Merger Sub in accordance with its
terms, subject to the effect of any applicable bankruptcy, insolvency, moratorium or similar law affecting creditors’ rights generally
and to rules of law governing specific performance, injunctive relief and other equitable remedies.

 

Section 4.02     Consents
and Approvals. No filing with, and no permit, authorization, consent or approval of, any Governmental Authority is necessary for
the execution of this Agreement by Parent and Merger Sub and the consummation by Parent and Merger Sub of the transactions contemplated
by this Agreement, except where the failure to obtain such permits, authorizations, consents or approvals would not adversely affect
in any material respect the ability of Parent or Merger Sub to perform its obligations hereunder and except for filing requirements as
may be required under applicable state or federal securities laws.

 

Section 4.03     Non-Contravention.
The execution, delivery and performance by Parent and Merger Sub of this Agreement and the consummation of the transactions contemplated
hereby do not and will not (a) violate the certificate of incorporation or bylaws, operating agreement, limited liability company
agreement, partnership agreement or other comparable charter or organizational documents, of Parent and Merger Sub, if any, (b) violate
any applicable Law, (c) conflict with or violate or require any consent, approval, notice or other action by any Person under, constitute
a default (with or without notice of lapse of time or both) under, or give rise to any right of termination, cancellation or acceleration
or to a loss of any benefit to which Parent or Merger Sub is entitled under any provision of any Contract binding on Parent or Merger
Sub or any of Parent or Merger Sub’s properties or assets or (d) result in the imposition of any lien, encumbrance or restriction
on any asset of Parent or Merger Sub, except, in the case of clauses (b), (c) and (d), for such occurrences which would not
adversely affect in any material respect the ability of Parent and Merger Sub to perform its obligations hereunder.

 

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Article 5

COVENANTS OF STOCKHOLDER

 

Each Stockholder hereby covenants
and agrees, severally and not jointly, that:

 

Section 5.01     No
Proxies for, Encumbrances on or Disposition of Shares. Except pursuant to the terms of this Agreement, such Stockholder shall not,
without the prior written consent of Parent or the Company, directly or indirectly (except, if such Stockholder is an individual, as
a result of the death of such Stockholder), (a) grant any proxies, or enter into any voting trust or other Contract, with respect
to the voting of any Subject Shares with respect to the matters described in clauses (a) through (c) of Section 2.01,
(b) sell, assign, transfer, tender, encumber or otherwise dispose of, or enter into any Contract with respect to the direct or indirect
sale, assignment, transfer, tender, encumbrance or other disposition of, any such Subject Shares or (c) subject to the qualifications
set forth in Section 6.11, take any other action that would make any representation or warranty of such Stockholder contained
herein untrue or incorrect in any material respect or in any way restrict, limit or interfere in any material respect with the performance
of such Stockholder’s obligations hereunder or the transactions contemplated hereby or by the Merger Agreement, or seek to do or
solicit any of the foregoing actions. Notwithstanding anything to the contrary in the foregoing sentence, this Section 5.01
shall not prohibit a transfer of Subject Shares by Stockholder (i) if such Stockholder is an individual, (A) to any member
of Stockholder’s immediate family or to a trust solely for the benefit of Stockholder or any member of Stockholder’s immediate
family or (B) to a charitable entity qualified as a 501(c)(3) organization under the Code or (ii) if Stockholder is not
a natural person, to an Affiliate; provided, however, that in each case a transfer shall be permitted only if, and as a
condition precedent to the effectiveness of such transfer, the transferee agrees in a writing, approved in writing by the Parent (which
approval shall not be withheld, conditioned or delayed unreasonably), to be bound by all of the terms of this Agreement as though such
transferee were the “Stockholder” hereunder. Without limiting the generality of the first sentence of this Section 5.01,
such Stockholder shall not tender, agree to tender or cause or permit to be tendered any of such Stockholder’s Subject Shares into
or otherwise in connection with any tender or exchange offer, except pursuant to the Offer to Purchase.

 

Section 5.02     No
Solicitation. Each Stockholder shall not, and shall cause its Affiliates and its and their respective directors, officers and employees
not to, and shall direct and use its reasonable best efforts to cause its and its Affiliates’ respective other Representatives
not to, directly or indirectly, (a) solicit, initiate, knowingly facilitate or knowingly encourage the submission or announcement
of any inquiries, proposals or offers that constitute or could reasonably be expected to lead to any Acquisition Proposal, (b) provide
any non-public information concerning the Company to any Person or group who has made or could reasonably be expected to make any Acquisition
Proposal, or engage in any discussions or negotiations with respect to any Acquisition Proposal, (c) otherwise cooperate with or
assist or participate in, or facilitate, any such inquiries, proposals, offers, discussions or negotiations, or (d) resolve or agree
to do any of the foregoing. Each Stockholder shall, and shall cause its Affiliates and its and their respective directors, officers and
employees to, and shall direct and use its reasonable best efforts to cause its and its Affiliates’ respective other Representatives
to, immediately cease and cause to be terminated any solicitation, encouragement, discussion or negotiation with any Person or groups
that may be ongoing with respect to any Acquisition Proposal or potential Acquisition Proposal. Notwithstanding anything to the contrary
provided in this Agreement, each Stockholder and its Affiliates and Representatives shall not be required to comply with the terms of
this Section 5.02 with respect to a particular Acquisition Proposal in the event that the Company is permitted to take the
actions set forth in Section 7.03(b) of the Merger Agreement with respect to such Acquisition Proposal.

 

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Section 5.03     Communications.
Such Stockholder hereby (a) consents to and authorizes the publication and disclosure by Parent, Merger Sub and the Company (including
in the Offer Documents, the Schedule 14D-9 or any other publicly filed document relating to the Transactions) of (i) such Stockholder’s
identity, (ii) such Stockholder’s Beneficial Ownership of shares of Company Common Stock, Warrants or Convertible Notes (including
the number of such shares of Company Common Stock or the principal amount of Convertible Notes, in each case Beneficially Owned by Stockholder)
and (iii) the nature of such Stockholder’s commitments, arrangements and understandings under this Agreement, and (b) agrees
as promptly as practicable to notify Parent, Merger Sub and the Company of any required corrections with respect to any written information
supplied by such Stockholder specifically for use in any such disclosure document. During the term of this Agreement, each Stockholder
agrees that it shall consult with Parent before issuing any press releases or otherwise making any public statements with respect to
the transactions contemplated herein, except as may be required in connection with the Offer to Purchase in any Form 4, Schedule 13D,
Schedule 13G or other disclosure required by the SEC or any other Governmental Authority to be made by any Stockholder in connection
with the Offer to Purchase.

 

Section 5.04     Additional
Shares. In the event that such Stockholder acquires Beneficial Ownership of, or the power to dispose of or vote or direct the disposition
or voting of, any additional shares of Company Common Stock or other similar interests in or with respect to the Company, such shares
or other similar interests shall, without further action of the parties, be subject to the provisions of this Agreement, and the number
of shares of Company Common Stock Beneficially Owned by such Stockholder on Schedule A will be deemed amended accordingly
(and, if applicable, the ownership of Warrants or Convertible Notes shall be reduced). Such Stockholder shall promptly notify Parent
and Merger Sub of any such event.

 

Section 5.05     Waiver
of Appraisal and Dissenters’ Rights and Actions. Such Stockholder hereby (a) waives and agrees not to exercise any rights
(including under Section 262 of the General Corporation Law of the State of Delaware) to demand appraisal of any Subject Shares
or rights to dissent from the Merger which may arise with respect to the Merger and (b) agrees not to commence or participate in,
and to take all actions necessary to opt out of any class in any class action with respect to, any claim, derivative or other Action,
against Parent, Merger Sub, the Company or any of their respective successors relating to the negotiation, execution or delivery of this
Agreement or the Merger Agreement or the making or consummation of the Offer to Purchase or consummation of the Merger, including any
Action (i) challenging the validity of, or seeking to enjoin the operation of, any provision of this Agreement or (ii) alleging
a breach of any fiduciary duty of the board of directors of the Company in connection with the Transactions.

 

Section 5.06     No
Stockholder Meetings, etc. Subject to the qualifications set forth in Section 6.11, for so long as this Agreement
remains in effect, each Stockholder agrees that it shall not seek to call a special meeting of the stockholders of the Company or deliver
or caused to be delivered any written consent, in person or in proxy, with respect to such Stockholder’s Subject Shares for the
matters described in clauses (a) through (c) of Section 2.01.

 

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Article 6

MISCELLANEOUS

 

Section 6.01     Other
Definitional and Interpretative Provisions. Unless specified otherwise, in this Agreement the obligations of any party hereto consisting
of more than one (1) Person are joint and several. The words “hereof,” “herein” and “hereunder”
and words of similar import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement. The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation
hereof. References to Articles and Sections are to Articles and Sections of this Agreement unless otherwise specified. Any singular term
in this Agreement shall be deemed to include the plural, and any plural term the singular. Whenever the words “include”,
 “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without
limitation”, whether or not they are in fact followed by those words or words of similar import. The word “or” has
the inclusive meaning represented by the phrase “and/or.” “Writing,” “written” and comparable terms
refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any Contract
(including the Merger Agreement) are to that Contract as amended, modified or supplemented from time to time in accordance with the terms
hereof and thereof. References to any Person include the successors and permitted assigns of that Person. References from or through
any date mean, unless otherwise specified, from and including or through and including, respectively.

 

Section 6.02     Amendments;
Termination. Any provision of this Agreement may be amended if, and only if, such amendment is in writing and is signed by Parent,
Merger Sub, the Company and each party to this Agreement as to whom such amendment is to be effective. Accordingly no amendment of any
provision of this Agreement shall be effective as to Parent, Merger Sub, the Company or any other party hereto, unless such amendment
is in writing and is signed by Parent, Merger Sub, the Company and such party. This Agreement shall terminate automatically, without
any notice or other action by any Person, upon the earliest of (a) the mutual written agreement of Parent and the Stockholders,
(b) the termination of the Merger Agreement in accordance with its terms, (c) the Effective Time, (d) the occurrence of
an Adverse Recommendation Change in compliance with the provisions of the Merger Agreement and (e) the date of any amendment to
the Merger Agreement that reduces the Offer Price or Merger Consideration or changes the form of consideration payable in the Offer or
the Merger. Upon termination of this Agreement, no party shall have any further obligations or liabilities under this Agreement; provided,
however, that (x) nothing set forth in this Section 6.02 shall relieve any party hereto from an liability for
any fraud or willful and material breach of any provision of this Agreement prior to such termination hereof, and (y) the provisions
of Section 5.05 and this Article 6 shall survive any termination of this Agreement. The representations and warranties
herein shall not survive the termination of this Agreement.

 

Section 6.03     Expenses.
All costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such cost or expense.

 

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Section 6.04     Parties
in Interest; Third Party Beneficiaries. The parties hereto hereby agree that their respective agreements and obligations set forth
herein are solely for the benefit of the other parties hereto and their respective successors and permitted assigns, in accordance with
and subject to the terms of this Agreement, and this Agreement is not intended to, and does not, confer upon any Person other than the
parties hereto and their respective successors and permitted assigns any benefits, rights or remedies under or by reason of, or any rights
to enforce or cause the parties hereto to enforce, the obligations set forth herein; provided, however, the Company shall
be entitled to enforce the obligations of the parties hereto as if it were a full party hereto, and the Company may use all available
means at law or equity to enforce such obligations hereunder.

 

Section 6.05     Successors
and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns; provided, however, that the parties hereto covenant and agree not to assign, delegate
or otherwise transfer any of their rights or obligations under this Agreement without the prior written consent of Parent except as otherwise
provided in Section 5.01 of this Agreement. Any assignment, delegation or transfer in violation of the foregoing shall be
null and void ab initio.

 

Section 6.06     Governing
Law. This Agreement and any Action arising out of or related hereto or the Transactions or to the inducement of any party thereto
to enter into this Agreement, (whether for breach of contract, tortious conduct or otherwise and whether predicated on contract law,
common law, tort law, statute or otherwise), and any claim or dispute arising hereunder or relating hereto, shall be governed by and
construed in accordance with the laws of the State of Delaware, without regard to the conflicts of law rules of such state.

 

Section 6.07     Counterparts;
Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same instrument. Signatures to this Agreement transmitted by facsimile transmission,
by electronic mail in portable document format (PDF) form, or by any other electronic means designed to preserve the original graphic
and pictorial appearance of a document, will be deemed to have the same effect as physical delivery of the paper document bearing the
original signatures. This Agreement shall become an effective and binding agreement as among (a) Parent and Merger Sub, on the one
hand, and (b) any Stockholder, on the other hand, only at (and not prior to) such time when both (i) the Merger Agreement shall
have become and is effective and (ii) Parent, Merger Sub, and such Stockholder shall have received counterparts hereof duly executed
by Parent, Merger Sub, and such Stockholder, regardless of whether at such time this Agreement shall have been executed and delivered
by any other Stockholder.

 

Section 6.08     Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other Governmental
Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance
of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such a determination,
the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as
closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated
to the fullest extent possible.

 

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Section 6.09     Specific
Performance. Parent, Merger Sub and each Stockholder agree and acknowledge that irreparable damage to the Company, Parent and Merger
Sub would occur, damages would be incalculable and would be an insufficient remedy and no other adequate remedy would exist at law or
in equity, in each case in the event that any provision of this Agreement were not performed by such Stockholder strictly in accordance
with the terms hereof, and that each of Parent, Merger Sub and the Company shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement or to enforce specifically such Stockholder’s performance of the terms and provisions hereof, in addition
to any other remedy to which Parent, Merger Sub or the Company may be entitled at law or in equity. Each Stockholder hereby waives any
defenses based on the adequacy of any other remedy, whether at law or in equity, that might be asserted as a bar to the remedy of specific
performance of any of the terms or provisions hereof or injunctive relief in any action brought therefor by Parent, Merger Sub or the
Company. Each Stockholder further agrees that neither Parent nor any other Person shall be required to obtain, furnish or post any bond
or similar instrument in connection with or as a condition to obtaining any remedy referred to in this Section 6.09, and
each Stockholder irrevocably waives any right such Stockholder may have to require the obtaining, furnishing or posting of any such bond
or similar instrument.

 

Section 6.10     Defined
Terms. Capitalized terms used but not defined herein have the respective meanings given to such terms in the Merger Agreement. Furthermore,
the following capitalized terms used in this Agreement have the respective meanings given to such terms below:

 

“Agreement”
has the meaning set forth in the preamble hereof.

 

“Beneficial Owner”
has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial
ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person”
will be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or
exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time; provided,
however, that, for purposes of this Agreement, a Person shall not be deemed to be the Beneficial Owner of any shares of Company
Common Stock underlying any Convertible Notes or Warrants unless and until such Convertible Notes shall have been converted or Warrants
have been exercised, as applicable, into shares of Company Common Stock. The terms “Beneficially Owns” and “Beneficially
Owned” have corresponding meanings.

 

“Company”
has the meaning set forth in the preamble hereof.

 

“Company Common
Stock” means the common stock, par value $0.01 per share, of the Company.

 

“Convertible Notes”
means the 13.50% Convertible Second Lien Senior Secured Notes due 2023, of the Company.

 

“Indenture”
means the Indenture dated as of March 9, 2021 by and between the Company, Goodrich Petroleum Company, L.L.C., and Wilmington Trust,
National Association, as trustee and collateral agent, pursuant to which the Company issued the Convertible Notes.

 

“Merger Agreement”
has the meaning set forth in the Recitals.

 

“Merger Sub”
has the meaning set forth in the preamble hereof.

 

    	 	10	 

     

    

 

“Offer to Purchase”
means the Offer to Purchase any and all of the issued and outstanding Company Common Stock, setting forth the terms and conditions of
the Tender Offer, as contemplated by the Merger Agreement.

 

“Parent”
has the meaning set forth in the preamble hereof.

 

“Permitted Encumbrances”
has the meaning set forth in Section 3.04.

 

“Stockholder”
has the meaning set forth in the preamble hereof.

 

“Stockholder Parties”
has the meaning set forth in Section 6.11.

 

“Subject Shares”
means shares of Company Common Stock that on the date hereof have been issued and are outstanding and are Beneficially Owned by any Stockholder,
together with any unissued shares of Company Common Stock Beneficially Owned by any Stockholder at any time during the Support Period,
and any shares of Company Common Stock that are hereafter issued to, or otherwise directly or indirectly acquired by, or become Beneficially
Owned by, any Stockholder during the Support Period, including, without limitation, any shares of Company Common Stock acquired by such
Stockholder (a) upon the exercise of any Warrants after the date hereof, (b) upon the conversion or exchange of the Convertible
Notes or (c) by means of any purchase, dividend, distribution, stock split, recapitalization, combination or exchange of shares,
merger, consolidation, reorganization or other change or transaction, in one or a series of related transactions, of or by the Company
or otherwise.

 

“Support Period”
means the period from the date of this Agreement through the earlier of (a) the Effective Time and (b) the date of the termination
of the Merger Agreement in accordance with the terms thereof.

 

“Tender Offer”
means the tender offer made by Merger Sub, in accordance with the Merger Agreement and the Offer to Purchase, to purchase any and all
issued and outstanding shares of Company Common Stock.

 

“Transactions”
means the transactions contemplated by the Merger Agreement.

 

“Warrants”
means any warrants, options or other rights to purchase shares of Company Common Stock, including without limitation warrants issued
pursuant to the Warrant Agreement.

 

“Warrant Agreement”
means that certain Warrant Agreement, dated as of October 12, 2016, by and between the Company and American Stock Transfer &
Trust Company, LLC.

 

Section 6.11     Action
in Stockholder’s Capacity Only. Each Stockholder and each partner, officer, employee or Affiliate of such Stockholder (the
 “Stockholder Parties”), if a director, officer, employee or fiduciary of the Company, does not make any agreement
or understanding herein, and shall not otherwise be subject to the terms of this Agreement, as a director, officer, employee or fiduciary
of the Company. Each Stockholder signs this Agreement solely in such Stockholder’s capacity as a Beneficial Owner of the shares
of Company Common Stock Beneficially Owned by such Stockholder, and nothing herein shall limit or affect any actions taken in such Stockholder’s
capacity, or in any partner, officer, employee or Affiliate of Stockholder’s capacity, as an director, officer, employee or fiduciary
of the Company, including complying with or exercising such Stockholder’s, or any partner, officer, employee or Affiliate of Stockholder’s,
fiduciary duties owed to the Company. No action taken by any Stockholder in such Stockholder’s capacity as a director, officer,
employee or fiduciary of the Company shall be deemed to constitute a breach of this Agreement.

 

    	 	11	 

     

    

 

Section 6.12     Notices.
Any notices or other communications required or permitted under, or otherwise given in connection with, this Agreement shall be in writing
and shall be deemed to have been duly given (i) when delivered, if delivered in person, (ii) on the first (1st) Business Day
after dispatch by registered or certified mail, (iii) on the next Business Day if transmitted by national overnight courier (with
confirmation of delivery) or (iv) on the date transmitted if sent by email (provided no “bounce back” or similar message
of non-delivery is received with respect thereto), in each case as follows:

 

if to Parent or Merger Sub,
to:

 

Paloma Partners VI Holdings,
LLC

1100 Louisiana Street, Suite 5100

Houston, TX 77002

Attention: Christopher N.
O’Sullivan

Email: cosullivan@palomaresources.com

 

with a copy (which shall
not constitute notice) to:

 

Hunton Andrews Kurth LLP

600 Travis Street

4200 JPMorgan Chase Tower

Houston, TX 77002

Attention: G. Michael O’Leary
and Henry Havre

E-mail: moleary@huntonak.com;
hhavre@huntonak.com

 

If to the Company:

 

Goodrich Petroleum Corporation

801 Louisiana, Suite 700

Houston, TX 77002

Attention: Michael J. Killelea

E mail: Mike.Killelea@goodrichpetroleum.com

 

with a copy (which shall
not constitute notice) to:

 

Vinson & Elkins
L.L.P.

1001 Fannin Street, Suite 2500

Houston, TX 77002

Attention: Michael S. Telle;
Benjamin Barron

E mail: mtelle@velaw.com;
bbarron@velaw.com

 

if to Stockholder, to: the
address for notice set forth on Schedule A.

 

    	 	12	 

     

    

 

Section 6.13     Time
of the Essence. Time is of the essence regarding every obligation of each of the parties hereto.

 

Section 6.14     Submission
to Jurisdiction. The parties hereto hereby irrevocably agree (i) that any Action seeking to enforce any provision of, or based
on any matter arising out of or in connection with, this Agreement or the Transactions shall be brought in the Chancery Court of the
State of Delaware and any state appellate court therefrom, or, if no such state court has proper jurisdiction, the Federal District Court
for the District of Delaware located in Wilmington, Delaware, and any appellate court therefrom and (ii) not to commence any such
Action in any court except such courts. Each party hereby irrevocably submits to the exclusive jurisdiction of such court in respect
of any legal or equitable Action arising out of or relating to this Agreement or the Transactions, or relating to enforcement of any
of the terms of this Agreement, and hereby waives, and agrees not to assert, as a defense in any such Action, any claim that it is not
subject personally to the jurisdiction of such court, that the Action is brought in an inconvenient forum, that the venue of the Action
is improper or that this Agreement or the Transactions may not be enforced in or by such courts. Each party agrees that notice or the
service of process in any Action arising out of or relating to this Agreement or the Transactions shall be properly served or delivered
if delivered in the manner contemplated by Section 6.12 or in any other manner permitted by Applicable Law.

 

Section 6.15     Waiver
of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING DIRECTLY OR INDIRECTLY OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) 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 EITHER OF SUCH WAIVERS, (ii) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS, (iii) IT MAKES SUCH
WAIVERS VOLUNTARILY AND (iv) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS Section 6.15.

 

Section 6.16     Rules of
Construction. The parties hereto agree that they have been represented by counsel during the negotiation and execution of this Agreement
and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement
or other document will be construed against the party drafting such agreement or document.

 

Section 6.17     Waiver.
No failure on the part of any party to exercise any power, right, privilege or remedy under this Agreement, and no delay on the part
of any party in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power, right,
privilege or remedy; and no single or partial exercise of any such power, right, privilege or remedy shall preclude any other or further
exercise thereof or of any other power, right, privilege or remedy. A party hereto shall not be deemed to have waived any claim arising
out of this Agreement, or any power, right, privilege or remedy under this Agreement, unless the waiver of such claim, power, right,
privilege or remedy is expressly set forth in a written instrument duly executed and delivered on behalf of such party; and any such
waiver shall not be applicable or have any effect except in the specific instance in which it is given.

 

    	 	13	 

     

    

 

Section 6.18     No
Ownership Interest. All rights, ownership and economic benefits of and relating to the shares of Company Common Stock Beneficially
Owned by each Stockholder at a given time shall remain vested in and belong to such Stockholder as of such time, and Parent shall have
no authority to exercise any power or authority to direct such Stockholder in the voting of any of the shares of Company Common Stock
Beneficially Owned by such Stockholder, except as otherwise specifically provided herein, or in the performance of such Stockholder’s
duties or responsibilities as a stockholder of the Company.

 

Section 6.19     Entire
Agreement. This Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and
supersedes all other prior agreements and understandings, both written and oral, among the parties hereto with respect to the subject
matter hereof. Company.

 

Section 6.20     Stockholder
Obligation Several and Not Joint. The obligations of each Stockholder hereunder shall be several and not joint, and no Stockholder
shall be liable for any breach of the terms of this Agreement by any other Stockholder.

 

Section 6.21     Counterparts.
This Agreement may be executed and delivered (including by portable document format (PDF) form or email transmission) in one or more
counterparts, each of which shall be deemed to be an original copy of this Agreement and all of which, when taken together, shall be
deemed to constitute one and the same agreement.

 

(Remainder of Page Intentionally Left
Blank)

 

    	 	14	 

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed as of the date first above written.

 

	 	PALOMA PARTNERS VI HOLDINGS, LLC
	 	 
	 	 
	 	By:	/s/ Christopher
    N. O’Sullivan
	 	 	Name:	Christopher N. O’Sullivan
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	 
	 	PALOMA VI MERGER SUB, INC.
	 	 
	 	 
	 	By:	/s/ Christopher
    N. O’Sullivan
	 	 	Name:	Christopher N. O’Sullivan
	 	 	Title:	Director

 

(Signature Page to Tender and Support Agreement)

 

     

     

    

 

 

	 	Solely as set forth in Section 2.05, 6.02
and Section 6.04:
	 	 
	 	GOODRICH PETROLEUM CORPORATION
	 	 
	 	 
	 	By:	/s/ Walter
    G. Goodrich
	 	 	Name:	Walter G. Goodrich
	 	 	Title:	 Chairman and Chief Executive Officer

 

(Signature Page to Tender and Support Agreement)

 

     

     

    

 

Stockholders:

 

	 	FRANKLIN ADVISERS, INC. AS INVESTMENT MANAGER ON BEHALF OF CERTAIN FUNDS AND ACCOUNTS
	 	 
	 	 
	 	By:	/s/ Glenn Voyles
	 	 	Name:	 Glenn Voyles
	 	 	Title:	 SVP

 

(Signature Page to Tender and Support Agreement)

 

     

     

    

 

Schedule A

 

	
    Stockholder
	
    Contact
    Person 
	
    Address
	
    E-Mail
	
    Shares
	
    Warrants
	
    Principal
    Amount Convertible Notes

	Franklin Advisers, Inc. as Investment Manager on behalf of certain funds and accounts	Bryant Dieffenbacher / Chris Chen	
     

     
	 	2,233,995	0	28,180,474

 

    	 	Schedule AEX-10.1

  EX 10.1

   

  Palisade Bio, Inc.

  2021 Inducement Plan 

  Adopted by the Compensation Committee of the Board of Directors:  November 18, 2021

   

  1.General.

  (a)Eligible Award Recipients.  The only persons eligible to receive grants of Awards under this Plan are individuals who satisfy the standards for inducement grants under Nasdaq Marketplace Rule 5635(c)(4) or 5635(c)(3), if applicable, and the related guidance under Nasdaq IM 5635-1. A person who previously served as an Employee or Director will not be eligible to receive Awards under the Plan, other than following a bona fide period of non-employment. Persons eligible to receive grants of Awards under this Plan are referred to in this Plan as “Eligible Employees.” These Awards must be approved by either a majority of the Company’s “Independent Directors” (as such term is defined in Nasdaq Marketplace Rule 5605(a)(2)) (“Independent Directors”) or the Company’s compensation committee, provided such committee is comprised solely of Independent Directors of the Company (the “Independent Compensation Committee”) in order to comply with the exemption from the stockholder approval requirement for “inducement grants” provided under Rule 5635(c)(4) of the Nasdaq Marketplace Rules. Nasdaq Marketplace Rule 5635(c)(4) and the related guidance under Nasdaq IM 5635-1 (together with any analogous rules or guidance effective after the date hereof, the “Inducement Award Rules”).

  (b)Plan Purpose.  The Company, by means of the Plan, intends to provided (i) an inducement material for certain individuals to enter into employment with the Company within the meaning of Rule 5635(c)(4) of the Nasdaq Marketplace Rules, (ii) incentives for such persons to exert maximum efforts for the success of the Company and any Affiliate and (iii) a means by which Eligible Employees may be given an opportunity to benefit from increases in value of the Common Stock through the granting of Awards.

  (c)Available Awards.  The Plan provides for the grant of the following Awards: (i) Nonstatutory Options; (ii) SARs; (iii) Restricted Stock Awards; (iv) RSU Awards; (v) Performance Awards, and (vi) Other Awards. 

  2.Shares Subject to the Plan.

  (a)Share Reserve.  Subject to adjustment in accordance with Section 2(b) and any adjustments as necessary to implement any Capitalization Adjustments, the aggregate number of shares of Common Stock that may be issued pursuant to Awards will not exceed 750,000 shares.

  (b)Share Reserve Operation.

  (i)Limit Applies to Shares of Common Stock Issued Pursuant to Awards.  For clarity, the Share Reserve is a limit on the number of shares of Common Stock that may be issued pursuant to Awards and does not limit the granting of Awards, except that the Company will keep available at all times the number of shares of Common Stock reasonably required to satisfy its obligations to issue shares pursuant to such Awards.  Shares may be issued in 

   

  

   

   

  connection with a merger or acquisition as permitted by, as applicable, Nasdaq Listing Rule 5635(c), NYSE Listed Company Manual Section 303A.08, NYSE American Company Guide Section 711 or other applicable rule, and such issuance will not reduce the number of shares available for issuance under the Plan.  

  (ii)Actions that Do Not Constitute Issuance of Shares of Common Stock and Do Not Reduce Share Reserve.  The following actions do not result in an issuance of shares under the Plan and accordingly do not reduce the number of shares of Common Stock subject to the Share Reserve and available for issuance under the Plan:  (1) the expiration or termination of any portion of an Award without the shares covered by such portion of the Award having been issued, or (2) the settlement of any portion of an Award in cash (i.e., the Participant receives cash rather than shares of Common Stock).

   

  (iii)Reversion of Previously Issued Shares of Common Stock to Share Reserve.

  (1)Shares Available for Subsequent Issuance. If any Award is forfeited back to the Company or shares of Common Stock are redeemed or repurchased by the Company or any Affiliate (in accordance with applicable law) because of the failure to meet a contingency or condition required to vest such shares of Common Stock, then the shares of Common Stock that are forfeited, redeemed or repurchased shall revert to and again become available for issuance under the Plan. The number of shares of Common Stock that shall revert to and again available for issuance under the Plan pursuant to the foregoing provision shall be one share of Common Stock for each forfeited, redeemed or repurchased share subject to an Award granted under the Plan. Any shares of Common Stock that are reacquired or withheld (or not issued) by the Company to satisfy the exercise, strike or purchase price of an Award (including any shares subject to such Award  that are not delivered because such award is exercised through a reduction of shares subject to such Award (i.e., “net exercised”)) will again become available for issuance under the Plan. 

  (2)Shares Not Available for Subsequent Issuance.  The following shares of Common Stock will not become available again for issuance under the Plan:  (A) any shares repurchased by the Company on the open market with the proceeds of the exercise, strike or purchase price of any Award; and (B) in the event that a Stock Appreciation Right is settled in shares of Common Stock, the gross number of shares of Common Stock subject to such award.

  3.Eligibility and Limitations.

  (a)Eligible Award Recipients.  Awards may only be granted to persons who are Eligible Employees described in Section 1(a) of the Plan, where the Award is an inducement material to the individual’s entering into employment with the Company or an Affiliate within the meaning of Rule 5635(c)(4) of the Nasdaq Marketplace Rules or is otherwise permitted pursuant to Rule 5635(c) of the Nasdaq Marketplace Rules.

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  (b)Approval Requirements.  All Awards must be granted either by a majority of the Company’s Independent Directors or the Independent Compensation Committee. 

  (c)Specific Award Limitations.  

  (i)Limitations on Nonstatutory Stock Options and SARs.  Nonstatutory Stock Options and SARs may not be granted to Eligible Employees who are providing Continuous Service only to any “parent” of the Company (as such term is defined in Rule 405) unless the stock underlying such Awards is treated as “service recipient stock” under Section 409A because the Awards are granted pursuant to a corporate transaction (such as a spin off transaction) or unless such Awards otherwise comply with the distribution requirements of Section 409A.

  4.Options and Stock Appreciation Rights.

  Each Option and SAR will have such terms and conditions as determined by the Board.  All Options will be designated in writing as Nonstatutory Stock Option at the time of grant.  Each SAR will be denominated in shares of Common Stock equivalents.  The terms and conditions of separate Options and SARs need not be identical; provided, however, that each Option Agreement and SAR Agreement will conform (through incorporation of provisions hereof by reference in the Award Agreement or otherwise) to the substance of each of the following provisions:

  (a)Term.  No Option or SAR will be exercisable after the expiration of ten years from the date of grant of such Award or such shorter period specified in the Award Agreement.

  (b)Exercise or Strike Price.  The exercise or strike price of each Option or SAR will not be less than 100% of the Fair Market Value on the date of grant of such Award.  Notwithstanding the foregoing, an Option or SAR may be granted with an exercise or strike price lower than 100% of the Fair Market Value on the date of grant of such Award if such Award is granted pursuant to an assumption of or substitution for another option or stock appreciation right pursuant to a Transaction and in a manner consistent with the provisions of Sections 409A of the Code.  

  (c)Exercise Procedure and Payment of Exercise Price for Options.  In order to exercise an Option, the Participant must provide notice of exercise to the Plan Administrator in accordance with the procedures specified in the Option Agreement or otherwise provided by the Company. The Board has the authority to grant Options that do not permit all of the following methods of payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the Company to utilize a particular method of payment.  The exercise price of an Option may be paid, to the extent permitted by Applicable Law and as determined by the Board, by one or more of the following methods of payment to the extent set forth in the Option Agreement:

  (i)by cash or check, bank draft or money order payable to the Company;

  (ii)pursuant to a “cashless exercise” program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of the Common Stock 

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  subject to the Option, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the exercise price to the Company from the sales proceeds;

  (iii)by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock that are already owned by the Participant free and clear of any liens, claims, encumbrances or security interests, with a Fair Market Value on the date of exercise that does not exceed the exercise price, provided that (1) at the time of exercise the Common Stock is publicly traded, (2) any remaining balance of the exercise price not satisfied by such delivery is paid by the Participant in cash or other permitted form of payment, (3) such delivery would not violate any Applicable Law or agreement restricting the redemption of the Common Stock, (4) any certificated shares are endorsed or accompanied by an executed assignment separate from certificate, and (5) such shares have been held by the Participant for any minimum period necessary to avoid adverse accounting treatment as a result of such delivery; 

  (iv)by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Common Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value on the date of exercise that does not exceed the exercise price, provided that (1) such shares used to pay the exercise price will not be exercisable thereafter and (2) any remaining balance of the exercise price not satisfied by such net exercise is paid by the Participant in cash or other permitted form of payment; or

  (v)in any other form of consideration that may be acceptable to the Board and permissible under Applicable Law.

  (d)Exercise Procedure and Payment of Appreciation Distribution for SARs.  In order to exercise any SAR, the Participant must provide notice of exercise to the Plan Administrator in accordance with the SAR Agreement or as otherwise provided by the Company.  The appreciation distribution payable to a Participant upon the exercise of a SAR will not be greater than an amount equal to the excess of (i) the aggregate Fair Market Value on the date of exercise of a number of shares of Common Stock equal to the number of Common Stock equivalents that are vested and being exercised under such SAR, over (ii) the strike price of such SAR.  Such appreciation distribution may be paid to the Participant in the form of Common Stock or cash (or any combination of Common Stock and cash) or in any other form of payment, as determined by the Board and specified in the SAR Agreement.

  (e)Transferability.  Options and SARs may not be transferred to third party financial institutions for value.  The Board may impose such additional limitations on the transferability of an Option or SAR as it determines.  In the absence of any such determination by the Board, the following restrictions on the transferability of Options and SARs will apply, provided that except as explicitly provided in the Plan, neither an Option nor a SAR may be transferred for consideration:

  (i)Restrictions on Transfer.  An Option or SAR will not be transferable, except by will or by the laws of descent and distribution, and will be exercisable during the lifetime of the Participant only by the Participant; provided, however, that the Board may permit transfer of an Option or SAR in a manner that is not prohibited by applicable tax and securities laws upon the Participant’s request, including to a trust if the Participant is considered to be the sole 

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  beneficial owner of such trust (as determined under Section 671 of the Code and applicable state law) while such Option or SAR is held in such trust, provided that the Participant and the trustee enter into a transfer and other agreements required by the Company.

  (ii)Domestic Relations Orders.  Notwithstanding the foregoing, subject to the execution of transfer documentation in a format acceptable to the Company and subject to the approval of the Board or a duly authorized Officer, an Option or SAR may be transferred pursuant to a domestic relations order.

  (f)Vesting.  The Board may impose such restrictions on or conditions to the vesting and/or exercisability of an Option or SAR as determined by the Board.  Except as otherwise provided in the Award Agreement or other written agreement between a Participant and the Company or an Affiliate, vesting of Options and SARs will cease upon termination of the Participant’s Continuous Service.

  (g)Termination of Continuous Service for Cause.  Except as explicitly otherwise provided in the Award Agreement or other written agreement between a Participant and the Company or an Affiliate, if a Participant’s Continuous Service is terminated for Cause, the Participant’s Options and SARs will terminate and be forfeited immediately upon such termination of Continuous Service, and the Participant will be prohibited from exercising any portion (including any vested portion) of such Awards on and after the date of such termination of Continuous Service and the Participant will have no further right, title or interest in such forfeited Award, the shares of Common Stock subject to the forfeited Award, or any consideration in respect of the forfeited Award.

  (h)Post-Termination Exercise Period Following Termination of Continuous Service for Reasons Other than Cause.  Except as otherwise provided in the Award Agreement or other written agreement between Participant and the Company or an Affiliate, subject to Section 4(i), if a Participant’s Continuous Service terminates for any reason other than for Cause, the Participant may exercise his or her Option or SAR to the extent vested, but only within the following period of time or, if applicable, such other period of time provided in the Award Agreement or other written agreement between a Participant and the Company or an Affiliate; provided, however, that in no event may such Award be exercised after the expiration of its maximum term (as set forth in Section 4(a)):

  (i)three months following the date of such termination if such termination is a termination without Cause (other than any termination due to the Participant’s Disability or death);

  (ii)12 months following the date of such termination if such termination is due to the Participant’s Disability;

  (iii)18 months following the date of such termination if such termination is due to the Participant’s death; or

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  (iv)18 months following the date of the Participant’s death if such death occurs following the date of such termination but during the period such Award is otherwise exercisable (as provided in (i) or (ii) above).

  Following the date of such termination, to the extent the Participant does not exercise such Award within the applicable Post-Termination Exercise Period (or, if earlier, prior to the expiration of the maximum term of such Award), such unexercised portion of the Award will terminate, and the Participant will have no further right, title or interest in the terminated Award, the shares of Common Stock subject to the terminated Award, or any consideration in respect of the terminated Award.

  (i)Restrictions on Exercise; Extension of Exercisability.  A Participant may not exercise an Option or SAR at any time that the issuance of shares of Common Stock upon such exercise would violate Applicable Law.  Except as otherwise provided in the Award Agreement or other written agreement between a Participant and the Company or an Affiliate, if a Participant’s Continuous Service terminates for any reason other than for Cause and, at any time during the last thirty days of the applicable Post-Termination Exercise Period: (i) the exercise of the Participant’s Option or SAR would be prohibited solely because the issuance of shares of Common Stock upon such exercise would violate Applicable Law, or (ii) the immediate sale of any shares of Common Stock issued upon such exercise would violate the Company’s Trading Policy, then the applicable Post-Termination Exercise Period will be extended to the last day of the calendar month that commences following the date the Award would otherwise expire, with an additional extension of the exercise period to the last day of the next calendar month to apply if any of the foregoing restrictions apply at any time during such extended exercise period, generally without limitation as to the maximum permitted number of extensions); provided, however, that in no event may such Award be exercised after the expiration of its maximum term (as set forth in Section 4(a)).

  (j)Non-Exempt Employees.  No Option or SAR, whether or not vested, granted to an Employee who is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, will be first exercisable for any shares of Common Stock until at least six months following the date of grant of such Award.  Notwithstanding the foregoing, in accordance with the provisions of the Worker Economic Opportunity Act, any vested portion of such Award may be exercised earlier than six months following the date of grant of such Award in the event of (i) such Participant’s death or Disability, (ii) a Transaction in which such Award is not assumed, continued or substituted, (iii) a Change in Control, or (iv) such Participant’s retirement (as such term may be defined in the Award Agreement or another applicable agreement or, in the absence of any such definition, in accordance with the Company’s then current employment policies and guidelines).  This Section 4(j) is intended to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option or SAR will be exempt from his or her regular rate of pay.

  (k)Whole Shares.  Options and SARs may be exercised only with respect to whole shares of Common Stock or their equivalents.

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  5.Awards Other Than Options and Stock Appreciation Rights.

  (a)Restricted Stock Awards and RSU Awards.  Each Restricted Stock Award and RSU Award will have such terms and conditions as determined by the Board; provided, however, that each Restricted Stock Award Agreement and RSU Award Agreement will conform (through incorporation of the provisions hereof by reference in the Award Agreement or otherwise) to the substance of each of the following provisions: 

  (i)Form of Award.  

  (1)RSAs: To the extent consistent with the Company’s Bylaws, at the Board’s election, shares of Common Stock subject to a Restricted Stock Award may be (i) held in book entry form subject to the Company’s instructions until such shares become vested or any other restrictions lapse, or (ii) evidenced by a certificate, which certificate will be held in such form and manner as determined by the Board.  Unless otherwise determined by the Board, a Participant will have voting and other rights as a stockholder of the Company with respect to any shares subject to a Restricted Stock Award.  

  (2)RSUs:  A RSU Award represents a Participant’s right to be issued on a future date the number of shares of Common Stock that is equal to the number of restricted stock units subject to the RSU Award.  As a holder of a RSU Award, a Participant is an unsecured creditor of the Company with respect to the Company's unfunded obligation, if any, to issue shares of Common Stock in settlement of such Award and nothing contained in the Plan or any RSU Agreement, and no action taken pursuant to its provisions, will create or be construed to create a trust of any kind or a fiduciary relationship between a Participant and the Company or an Affiliate or any other person.  A Participant will not have voting or any other rights as a stockholder of the Company with respect to any RSU Award (unless and until shares are actually issued in settlement of a vested RSU Award).  

  (ii)Consideration.  

  (1)RSA: A Restricted Stock Award may be granted in consideration for (A) cash or check, bank draft or money order payable to the Company, or (B) any other form of consideration (including future services) as the Board may determine and permissible under Applicable Law.

  (2)RSU: Unless otherwise determined by the Board at the time of grant, a RSU Award will be granted in consideration for the Participant’s services to the Company or an Affiliate, such that the Participant will not be required to make any payment to the Company (other than such services) with respect to the grant or vesting of the RSU Award, or the issuance of any shares of Common Stock pursuant to the RSU Award.  If, at the time of grant, the Board determines that any consideration must be paid by the Participant (in a form other than the Participant’s services to the Company or an Affiliate) upon the issuance of any shares of Common Stock in settlement of the RSU Award, such consideration may be paid in any form of consideration as the Board may determine and permissible under Applicable Law.

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  (iii)Vesting.  The Board may impose such restrictions on or conditions to the vesting of a Restricted Stock Award or RSU Award as determined by the Board.  Except as otherwise provided in the Award Agreement or other written agreement between a Participant and the Company or an Affiliate, vesting of Restricted Stock Awards and RSU Awards will cease upon termination of the Participant’s Continuous Service. 

  (iv)Termination of Continuous Service.  Except as otherwise provided in the Award Agreement or other written agreement between a Participant and the Company or an Affiliate, if a Participant’s Continuous Service terminates for any reason, (i) the Company may receive through a forfeiture condition or a repurchase right any or all of the shares of Common Stock held by the Participant under his or her Restricted Stock Award that have not vested as of the date of such termination as set forth in the Restricted Stock Award Agreement and (ii) any portion of his or her RSU Award that has not vested will be forfeited upon such termination and the Participant will have no further right, title or interest in the RSU Award, the shares of Common Stock issuable pursuant to the RSU Award, or any consideration in respect of the RSU Award.

  (v)Settlement of RSU Awards.  A RSU Award may be settled by the issuance of shares of Common Stock or cash (or any combination thereof) or in any other form of payment, as determined by the Board and specified in the RSU Award Agreement.  At the time of grant, the Board may determine to impose such restrictions or conditions that delay such delivery to a date following the vesting of the RSU Award.

  (b)Performance Awards.  With respect to any Performance Award, the length of any Performance Period, the Performance Goals to be achieved during the Performance Period, the other terms and conditions of such Award, and the measure of whether and to what degree such Performance Goals have been attained will be determined by the Board.  In addition, to the extent permitted by Applicable Law and set forth in the Award Agreement, the Board may determine that cash or other property may be used in payment of Performance Awards.  Performance Awards that are settled in cash or other property are not required to be valued in whole or in part by reference to, or otherwise based on, the Common Stock.

  (a)Other Awards.  Other forms of Awards valued in whole or in part by reference to, or otherwise based on, Common Stock may be granted either alone or in addition to Awards provided for under Section 4 and the preceding provisions of this Section 5. Subject to the provisions of the Plan, a majority of the Company’s Independent Directors or the Independent Compensation Committee will have sole and complete discretion to determine the persons to whom and the time or times at which such Other Awards will be granted, the number of shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such Other Awards, and all other terms and conditions of such Other Awards.

  6.Adjustments upon Changes in Common Stock; Other Corporate Events.

  (a)Capitalization Adjustments.  In the event of a Capitalization Adjustment, the Board shall appropriately and proportionately adjust: (i) the class(es) and maximum number of shares of Common Stock subject to the Plan pursuant to Section 2(a) and (ii) the class(es) and number of securities and exercise price, strike price or purchase price of Common Stock subject to outstanding Awards.  The Board shall make such adjustments, and its determination shall be 

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  final, binding and conclusive.  Notwithstanding the foregoing, no fractional shares or rights for fractional shares of Common Stock shall be created in order to implement any Capitalization Adjustment.  The Board shall determine an appropriate equivalent benefit, if any, for any fractional shares or rights to fractional shares that might be created by the adjustments referred to in the preceding provisions of this Section.

  (b)Dissolution or Liquidation.  Except as otherwise provided in the Award Agreement or other written agreement between the Participant and the Company or an Affiliate, or unless otherwise provided by the Board, in the event of a dissolution or liquidation of the Company, all outstanding Awards (other than Awards consisting of vested and outstanding shares of Common Stock not subject to a forfeiture condition or the Company’s right of repurchase) will terminate immediately prior to the completion of such dissolution or liquidation, and the shares of Common Stock subject to the Company’s repurchase rights or subject to a forfeiture condition may be repurchased or reacquired by the Company notwithstanding the fact that the holder of such Award is providing Continuous Service.

  (c)Transaction.  The following provisions will apply to Awards in the event of a Transaction unless otherwise provided in the instrument evidencing the Award or any other written agreement between the Company or any Affiliate and the Participant or unless otherwise expressly provided by the Board at the time of grant of an Award.

  (i)Awards May Be Assumed.  In the event of a Transaction, any surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) may assume or continue any or all Awards outstanding under the Plan or may substitute similar awards for Awards outstanding under the Plan (including but not limited to, awards to acquire the same consideration paid to the stockholders of the Company pursuant to the Transaction), and any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to Awards may be assigned by the Company to the successor of the Company (or the successor’s parent company, if any), in connection with such Transaction.  A surviving corporation or acquiring corporation (or its parent) may choose to assume or continue only a portion of an Award or substitute a similar award for only a portion of an Award, or may choose to assume or continue the Awards held by some, but not all Participants.  The terms of any assumption, continuation or substitution will be set by the Board.

  (ii)Awards Held by Current Participants.  In the event of a Transaction in which the surviving corporation or acquiring corporation (or its parent company) does not assume or continue such outstanding Awards or substitute similar awards for such outstanding Awards, then with respect to Awards that have not been assumed, continued or substituted and that are held by Participants whose Continuous Service has not terminated prior to the effective time of the Transaction (referred to as the “Current Participants”), the vesting of such Awards (and, with respect to Options and Stock Appreciation Rights, the time when such Awards may be exercised) will be accelerated in full to a date prior to the effective time of such Transaction (contingent upon the effectiveness of the Transaction) as the Board determines (or, if the Board does not determine such a date, to the date that is five (5) days prior to the effective time of the Transaction), and such Awards will terminate if not exercised (if applicable) at or prior to the effective time of the Transaction, and any reacquisition or repurchase rights held by the Company 

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  with respect to such Awards will lapse (contingent upon the effectiveness of the Transaction).  With respect to the vesting of Performance Awards that will accelerate upon the occurrence of a Transaction pursuant to this subsection (ii), unless otherwise provided in the Award Agreement, the vesting of such Performance Awards will accelerate at 100% of the target level upon the occurrence of the Transaction.  With respect to the vesting of Awards that will accelerate upon the occurrence of a Transaction pursuant to this subsection (ii) and are settled in the form of a cash payment, such cash payment will be made no later than 30 days following the occurrence of the Transaction. 

  (iii)Awards Held by Persons other than Current Participants.  In the event of a Transaction in which the surviving corporation or acquiring corporation (or its parent company) does not assume or continue such outstanding Awards or substitute similar awards for such outstanding Awards, then with respect to Awards that have not been assumed, continued or substituted and that are held by persons other than Current Participants, such Awards will terminate if not exercised (if applicable) prior to the occurrence of the Transaction; provided, however, that any reacquisition or repurchase rights held by the Company with respect to such Awards will not terminate and may continue to be exercised notwithstanding the Transaction.

  (iv)Payment for Awards in Lieu of Exercise.  Notwithstanding the foregoing, in the event an Award will terminate if not exercised prior to the effective time of a Transaction, the Board may provide, in its sole discretion, that the holder of such Award may not exercise such Award but will receive a payment, in such form as may be determined by the Board, equal in value, at the effective time, to the excess, if any, of (1) the value of the property the Participant would have received upon the exercise of the Award (including, at the discretion of the Board, any unvested portion of such Award), over (2) any exercise price payable by such holder in connection with such exercise.

  (d)Appointment of Stockholder Representative.  As a condition to the receipt of an Award, a Participant will be deemed to have agreed that the Award will be subject to the terms of any agreement governing a Transaction involving the Company, including, without limitation, a provision for the appointment of a stockholder representative that is authorized to act on the Participant’s behalf with respect to any escrow, indemnities and any contingent consideration.

  (e)No Restriction on Right to Undertake Transactions.  The grant of any Award and the issuance of shares pursuant to any Award does not affect or restrict in any way the right or power of the Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of stock or of options, rights or options to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

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  7.Administration.

  (a)Administration by Board.  The Board will administer the Plan; provided however, that Awards may only be granted by either (i) a majority of the Company’s Independent Directors or (ii) the Independent Compensation Committee. Subject to those constraints and the other constraints of the Inducement Award Rules, the Board may delegate some of its powers of administration of the Plan to a Committee or Committees, as provided in subsection (c) below.  

  (b)Powers of Board.  The Board will have the power, subject to, and within the limitations of, the express provisions of the Plan and the Inducement Award Rules:

  (i)To determine from time to time (1) which of the persons eligible under the Plan will be granted Awards; (2) when and how each Award will be granted; (3) what type or combination of types of Award will be granted; (4) the provisions of each Award granted (which need not be identical), including the time or times when a person will be permitted to receive an issuance of Common Stock or other payment pursuant to an Award; (5) the number of shares of Common Stock or cash equivalent with respect to which an Award will be granted to each such person; and (6) the Fair Market Value applicable to an Award; provided, however, that Awards may only be granted by either (i) a majority of the Company’s Independent Directors or (ii) the Independent Compensation Committee.

  (ii)To construe and interpret the Plan and Awards granted under it, and to establish, amend and revoke rules and regulations for its administration.  The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Award Agreement, in a manner and to the extent it deems necessary or expedient to make the Plan or Award fully effective.

  (iii)To settle all controversies regarding the Plan and Awards granted under it.

  (iv)To accelerate the time at which an Award may first be exercised or the time during which an Award or any part thereof will vest, notwithstanding the provisions in the Award Agreement stating the time at which it may first be exercised or the time during which it will vest.

  (v)To prohibit the exercise of any Option, SAR or other exercisable Award during a period of up to 30 days prior to the consummation of any pending stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Company assets to stockholders, or any other change affecting the shares of Common Stock or the share price of the Common Stock including any Transaction, for reasons of administrative convenience.

  (vi)To suspend or terminate the Plan at any time.  Suspension or termination of the Plan will not Materially Impair rights and obligations under any Award granted while the Plan is in effect except with the written consent of the affected Participant.

  (vii)To amend the Plan in any respect the Board deems necessary or advisable; provided, however, that stockholder approval will be required for any amendment to the extent required by Applicable Law.  Except as provided above, a Participant’s rights under any Award 

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  granted before amendment of the Plan will not be Materially Impaired by any amendment of the Plan unless (1) the Company requests the consent of the affected Participant, and (2) such Participant consents in writing.

  (viii)To submit any amendment to the Plan for stockholder approval.

  (ix)To approve forms of Award Agreements for use under the Plan and to amend the terms of any one or more Awards, including, but not limited to, amendments to provide terms more favorable to the Participant than previously provided in the Award Agreement, subject to any specified limits in the Plan that are not subject to Board discretion; provided however, that, a Participant’s rights under any Award will not be Materially Impaired by any such amendment unless (1) the Company requests the consent of the affected Participant, and (2) such Participant consents in writing.

  (x)Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company and that are not in conflict with the provisions of the Plan or Awards.

  (xi)To adopt such procedures and sub-plans as are necessary or appropriate to permit and facilitate participation in the Plan by, or take advantage of specific tax treatment for Awards granted to Eligible Employees who are foreign nationals or employed outside the United States (provided that Board approval will not be necessary for immaterial modifications to the Plan or any Award Agreement to ensure or facilitate compliance with the laws of the relevant foreign jurisdiction).

  (c)Delegation to Committee.

  (i)General.  Subject to the terms of Section 3(b), the Board may delegate some or all of the administration of the Plan to a Committee or Committees.  If administration of the Plan is delegated to a Committee, the Committee will have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to another Committee or a subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board will thereafter be construed as being to the Committee or subcommittee, as applicable), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board.  Each Committee may retain the authority to concurrently administer the Plan with Committee or subcommittee to which it has delegated its authority hereunder and may, at any time, revest in such Committee some or all of the powers previously delegated.  The Board may retain the authority to concurrently administer the Plan with any Committee and may, at any time, revest in the Board some or all of the powers previously delegated.  

  (ii)Rule 16b-3 Compliance.  To the extent an Award is intended to qualify for the exemption from Section 16(b) of the Exchange Act that is available under Rule 16b-3 of the Exchange Act, the Award will be granted by the Board or a Committee that consists solely of two or more Non-Employee Directors, as determined under Rule 16b-3(b)(3) of the Exchange Act and thereafter any action establishing or modifying the terms of the Award will be approved by 

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  the Board or a Committee meeting such requirements to the extent necessary for such exemption to remain available.

  (d)Effect of Board’s Decision. All determinations, interpretations and constructions made by the Board or any Committee in good faith will not be subject to review by any person and will be final, binding and conclusive on all persons.

  (e)Cancellation and Re-Grant of Awards.  Neither the Board nor any Committee will have the authority to: (i) reduce the exercise price or strike price of any outstanding Options or SARs, or (ii) cancel any outstanding Options or SARs that have an exercise price or strike price greater than the current Fair Market Value in exchange for cash or other Awards, unless the stockholders of the Company have approved such an action within twelve months prior to such an event.

  8.Tax Withholding

  (a)Withholding Authorization.  As a condition to acceptance of any Award, a Participant authorizes withholding from payroll and any other amounts payable to such Participant, and otherwise agrees to make adequate provision for (including), any sums required to satisfy any U.S. federal, state, local and/or foreign tax or social insurance contribution withholding obligations of the Company or an Affiliate, if any, which arise in connection with the grant, exercise, vesting or settlement of such Award, as applicable.  Accordingly, a Participant may not be able to exercise an Award even though the Award is vested, and the Company shall have no obligation to issue shares of Common Stock subject to an Award, unless and until such obligations are satisfied.

  (b)Satisfaction of Withholding Obligation.  To the extent permitted by the terms of an Award Agreement, the Company may, in its sole discretion, satisfy any U.S. federal, state, local and/or foreign tax or social insurance withholding obligation relating to an Award by any of the following means or by a combination of such means: (i) causing the Participant to tender a cash payment; (ii) withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Award; (iii) withholding cash from an Award settled in cash; (iv) withholding payment from any amounts otherwise payable to the Participant; (v) by allowing a Participant to effectuate a “cashless exercise” pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board, or (vi) by such other method as may be set forth in the Award Agreement.  

  (c)No Obligation to Notify or Minimize Taxes; No Liability to Claims.  Except as required by Applicable Law the Company has no duty or obligation to any Participant to advise such holder as to the time or manner of exercising such Award.  Furthermore, the Company has no duty or obligation to warn or otherwise advise such holder of a pending termination or expiration of an Award or a possible period in which the Award may not be exercised.  The Company has no duty or obligation to minimize the tax consequences of an Award to the holder of such Award and will not be liable to any holder of an Award for any adverse tax consequences to such holder in connection with an Award.  As a condition to accepting an Award, each Participant (i) agrees to not make any claim against the Company, or any of its Officers, Directors, Employees or Affiliates related to tax liabilities arising from such Award or other Company compensation and (ii) acknowledges that such Participant was advised to consult with his or her 

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  own personal tax, financial and other legal advisors regarding the tax consequences of the Award and has either done so or knowingly and voluntarily declined to do so. Additionally, each Participant acknowledges any Option or SAR is exempt from Section 409A only if the exercise or strike price is at least equal to the “fair market value” of the Common Stock on the date of grant as determined by the Internal Revenue Service and there is no other impermissible deferral of compensation associated with the Award.  Additionally, as a condition to accepting an Option or SAR, each Participant agrees not make any claim against the Company, or any of its Officers, Directors, Employees or Affiliates in the event that the Internal Revenue Service asserts that such exercise price or strike price is less than the “fair market value” of the Common Stock on the date of grant as subsequently determined by the Internal Revenue Service.

  (d)Withholding Indemnification.  As a condition to accepting an Award, in the event that the amount of the Company’s and/or its Affiliate’s withholding obligation in connection with such Award was greater than the amount actually withheld by the Company and/or its Affiliates, each Participant agrees to indemnify and hold the Company and/or its Affiliates harmless from any failure by the Company and/or its Affiliates to withhold the proper amount.

  9.Miscellaneous.

  (a)Dividends and Dividend Equivalents.  Dividends or dividend equivalents may be paid or credited, as applicable, with respect to any shares of Common Stock subject to an Award other than an Option or Stock Appreciation Right, as determined by the Board and contained in the applicable Award Agreement; provided, however, that (i) no dividends or dividend equivalents may be paid with respect to any such shares before the date such shares have vested under the terms of such Award Agreement, (ii) any dividends or dividend equivalents that are credited with respect to any such shares will be subject to all of the terms and conditions applicable to such shares under the terms of such Award Agreement (including, but not limited to, any vesting conditions), and (iii) any dividends or dividend equivalents that are credited with respect to any such shares will be forfeited to the Company on the date, if any, such shares are forfeited to or repurchased by the Company due to a failure to meet any vesting conditions under the terms of such Award Agreement.

  (b)Source of Shares.  The stock issuable under the Plan will be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market or otherwise.

  (c)Use of Proceeds from Sales of Common Stock.  Proceeds from the sale of shares of Common Stock pursuant to Awards will constitute general funds of the Company.

  (d)Corporate Action Constituting Grant of Awards.  Corporate action constituting a grant by the Company of an Award to any Participant will be deemed completed as of the date of such corporate action, unless otherwise determined by the Board, regardless of when the instrument, certificate, or letter evidencing the Award is communicated to, or actually received or accepted by, the Participant.  In the event that the corporate records (e.g., Board consents, resolutions or minutes) documenting the corporate action approving the grant contain terms (e.g., exercise price, vesting schedule or number of shares) that are inconsistent with those in the Award Agreement or related grant documents as a result of a clerical error in the Award Agreement or 

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  related grant documents, the corporate records will control and the Participant will have no legally binding right to the incorrect term in the Award Agreement or related grant documents.

  (e)Stockholder Rights.  No Participant will be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to such Award unless and until (i) such Participant has satisfied all requirements for exercise of the Award pursuant to its terms, if applicable, and (ii) the issuance of the Common Stock subject to such Award is reflected in the records of the Company.

  (f)No Employment or Other Service Rights.  Nothing in the Plan, any Award Agreement or any other instrument executed thereunder or in connection with any Award granted pursuant thereto will confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Award was granted or affect the right of the Company or an Affiliate to terminate at will and without regard to any future vesting opportunity that a Participant may have with respect to any Award (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate, or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state or foreign jurisdiction in which the Company or the Affiliate is incorporated, as the case may be.  Further, nothing in the Plan, any Award Agreement or any other instrument executed thereunder or in connection with any Award will constitute any promise or commitment by the Company or an Affiliate regarding the fact or nature of future positions, future work assignments, future compensation or any other term or condition of employment or service or confer any right or benefit under the Award or the Plan unless such right or benefit has specifically accrued under the terms of the Award Agreement and/or Plan.

  (g)Change in Time Commitment.  In the event a Participant’s regular level of time commitment in the performance of his or her services for the Company and any Affiliates is reduced (for example, and without limitation, if the Participant is an Employee of the Company and the Employee has a change in status from a full-time Employee to a part-time Employee  or takes an extended leave of absence) after the date of grant of any Award to the Participant, the Board may determine, to the extent permitted by Applicable Law, to (i) make a corresponding reduction in the number of shares or cash amount subject to any portion of such Award that is scheduled to vest or become payable after the date of such change in time commitment, and (ii) in lieu of or in combination with such a reduction, extend the vesting or payment schedule applicable to such Award. In the event of any such reduction, the Participant will have no right with respect to any portion of the Award that is so reduced or extended.

  (h)Execution of Additional Documents.  As a condition to accepting an Award, the Participant agrees to execute any additional documents or instruments necessary or desirable, as determined in the Plan Administrator’s sole discretion, to carry out the purposes or intent of the Award, or facilitate compliance with securities and/or other regulatory requirements, in each case at the Plan Administrator’s request.

  (i)Electronic Delivery and Participation.  Any reference herein or in an Award Agreement to a “written” agreement or document will include any agreement or document 

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  delivered electronically, filed publicly at www.sec.gov (or any successor website thereto) or posted on the Company’s intranet (or other shared electronic medium controlled by the Company to which the Participant has access).  By accepting any Award the Participant consents to receive documents by electronic delivery and to participate in the Plan through any on-line electronic system established and maintained by the Plan Administrator or another third party selected by the Plan Administrator.  The form of delivery of any Common Stock (e.g., a stock certificate or electronic entry evidencing such shares) shall be determined by the Company.

  (j)Clawback/Recovery.  All Awards will be subject to recoupment in accordance with any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other Applicable Law and any clawback policy that the Company otherwise adopts, to the extent applicable and permissible under Applicable Law. In addition, the Board may impose such other clawback, recovery or recoupment provisions in an Award Agreement as the Board determines necessary or appropriate, including but not limited to a reacquisition right in respect of previously acquired shares of Common Stock or other cash or property upon the occurrence of Cause. No recovery of compensation under such a clawback policy will be an event giving rise to a Participant’s right to voluntary terminate employment upon a “resignation for good reason,” or for a “constructive termination” or any similar term under any plan of or agreement with the Company.

  (k)Securities Law Compliance.  A Participant will not be issued any shares in respect of an Award unless either (i) the shares are registered under the Securities Act; or (ii) the Company has determined that such issuance would be exempt from the registration requirements of the Securities Act.  Each Award also must comply with other Applicable Law governing the Award, and a Participant will not receive such shares if the Company determines that such receipt would not be in material compliance with Applicable Law.

  (l)Transfer or Assignment of Awards; Issued Shares.  Except as expressly provided in the Plan or the form of Award Agreement, Awards may not be transferred or assigned by the Participant.  After the vested shares subject to an Award have been issued, or in the case of Restricted Stock and similar awards, after the issued shares have vested, the holder of such shares is free to assign, hypothecate, donate, encumber or otherwise dispose of any interest in such shares provided that any such actions are in compliance with the provisions herein, the terms of the Trading Policy and Applicable Law.

  (m)Effect on Other Employee Benefit Plans.  The value of any Award, as determined upon grant, vesting or settlement, shall not be included as compensation, earnings, salaries, or other similar terms used when calculating any Participant’s benefits under any employee benefit plan sponsored by the Company or any Affiliate, except as such plan otherwise expressly provides. The Company expressly reserves its rights to amend, modify, or terminate any of the Company's or any Affiliate's employee benefit plans.

  (n)Deferrals.  To the extent permitted by Applicable Law, the Board, in its sole discretion, may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Award may be deferred and may also 

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  establish programs and procedures for deferral elections to be made by Participants.  Deferrals by will be made in accordance with the requirements of Section 409A.

  (o)Section 409A.  Unless otherwise expressly provided for in an Award Agreement, the Plan and Award Agreements will be interpreted to the greatest extent possible in a manner that makes the Plan and the Awards granted hereunder exempt from Section 409A, and, to the extent not so exempt, in compliance with the requirements of Section 409A. If the Board determines that any Award granted hereunder is not exempt from and is therefore subject to Section 409A, the Award Agreement evidencing such Award will incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code, and to the extent an Award Agreement is silent on terms necessary for compliance, such terms are hereby incorporated by reference into the Award Agreement. Notwithstanding anything to the contrary in this Plan (and unless the Award Agreement specifically provides otherwise), if the shares of Common Stock are publicly traded, and if a Participant holding an Award that constitutes “deferred compensation” under Section 409A is a “specified employee” for purposes of Section 409A, no distribution or payment of any amount that is due because of a “separation from service” (as defined in Section 409A without regard to alternative definitions thereunder) will be issued or paid before the date that is six months and one day following the date of such Participant’s “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) or, if earlier, the date of the Participant’s death, unless such distribution or payment can be made in a manner that complies with Section 409A, and any amounts so deferred will be paid in a lump sum on the day after such six month period elapses, with the balance paid thereafter on the original schedule.

  (p)Choice of Law.  This Plan and any controversy arising out of or relating to this Plan shall be governed by, and construed in accordance with, the internal laws of Delaware, without regard to conflict of law principles that would result in any application of any law other than the law of Delaware.

  10.Covenants of the Company.

  (a)Compliance with Law.  The Company will seek to obtain from each regulatory commission or agency, as may be deemed to be necessary, having jurisdiction over the Plan such authority as may be required to grant Awards and to issue and sell shares of Common Stock upon exercise or vesting of the Awards; provided, however, that this undertaking will not require the Company to register under the Securities Act the Plan, any Award or any Common Stock issued or issuable pursuant to any such Award.  If, after reasonable efforts and at a reasonable cost, the Company is unable to obtain from any such regulatory commission or agency the authority that counsel for the Company deems necessary or advisable for the lawful issuance and sale of Common Stock under the Plan, the Company will be relieved from any liability for failure to issue and sell Common Stock upon exercise or vesting of such Awards unless and until such authority is obtained. A Participant is not eligible for the grant of an Award or the subsequent issuance of Common Stock pursuant to the Award if such grant or issuance would be in violation of any Applicable Law.

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  11.Additional Rules for Awards Subject to Section 409A.

  (a)Application.  Unless the provisions of this Section of the Plan are expressly superseded by the provisions in an Award Agreement, the provisions of this Section shall apply and shall supersede anything to the contrary set forth in the Award Agreement for a Non-Exempt Award. 

  (b)Non-Exempt Awards Subject to Non-Exempt Severance Arrangements.  To the extent a Non-Exempt Award is subject to Section 409A due to application of a Non-Exempt Severance Arrangement, the following provisions of this subsection (b) apply.  

  (i)If the Non-Exempt Award vests in the ordinary course during the Participant’s Continuous Service in accordance with the vesting schedule set forth in the Award Agreement, and does not accelerate vesting under the terms of a Non-Exempt Severance Arrangement, in no event will the shares be issued in respect of such Non-Exempt Award any later than the later of: (i) December 31st of the calendar year that includes the applicable vesting date, or (ii) the 60th day that follows the applicable vesting date. 

  (ii)If vesting of the Non-Exempt Award accelerates under the terms of a Non-Exempt Severance Arrangement in connection with the Participant’s Separation from Service, and such vesting acceleration provisions were in effect as of the date of grant of the Non-Exempt Award and, therefore, are part of the terms of such Non-Exempt Award as of the date of grant, then the shares will be earlier issued in settlement of such Non-Exempt Award upon the Participant’s Separation from Service in accordance with the terms of the Non-Exempt Severance Arrangement, but in no event later than the 60th day that follows the date of the Participant’s Separation from Service.  However, if at the time the shares would otherwise be issued the Participant is subject to the distribution limitations contained in Section 409A applicable to “specified employees,” as defined in Section 409A(a)(2)(B)(i) of the Code, such shares shall not be issued before the date that is six months following the date of such Participant’s Separation from Service, or, if earlier, the date of the Participant’s death that occurs within such six month period.

  (iii)If vesting of a Non-Exempt Award accelerates under the terms of a Non-Exempt Severance Arrangement in connection with a Participant’s Separation from Service, and such vesting acceleration provisions were not in effect as of the date of grant of the Non-Exempt Award and, therefore, are not a part of the terms of such Non-Exempt Award on the date of grant, then such acceleration of vesting of the Non-Exempt Award shall not accelerate the issuance date of the shares, but the shares shall instead be issued on the same schedule as set forth in the Grant Notice as if they had vested in the ordinary course during the Participant’s Continuous Service, notwithstanding the vesting acceleration of the Non-Exempt Award.  Such issuance schedule is intended to satisfy the requirements of payment on a specified date or pursuant to a fixed schedule, as provided under Treasury Regulations Section 1.409A-3(a)(4).

  (c)Treatment of Non-Exempt Awards Upon a Transaction for Employees and Consultants.  The provisions of this subsection (c) shall apply and shall supersede anything to the contrary set forth in the Plan with respect to the permitted treatment of any Non-Exempt Award in 

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  connection with a Transaction if the Participant was either an Employee or Consultant upon the applicable date of grant of the Non-Exempt Award.

  (i)Vested Non-Exempt Awards.  The following provisions shall apply to any Vested Non-Exempt Award in connection with a Transaction:

  (1)If the Transaction is also a Section 409A Change in Control then the Acquiring Entity may not assume, continue or substitute the Vested Non-Exempt Award.  Upon the Section 409A Change in Control the settlement of the Vested Non-Exempt Award will automatically be accelerated and the shares will be immediately issued in respect of the Vested Non-Exempt Award.  Alternatively, the Company may instead provide that the Participant will receive a cash settlement equal to the Fair Market Value of the shares that would otherwise be issued to the Participant upon the Section 409A Change in Control.

  (2)If the Transaction is not also a Section 409A Change in Control, then the Acquiring Entity must either assume, continue or substitute each Vested Non-Exempt Award.  The shares to be issued in respect of the Vested Non-Exempt Award shall be issued to the Participant by the Acquiring Entity on the same schedule that the shares would have been issued to the Participant if the Transaction had not occurred.  In the Acquiring Entity’s discretion, in lieu of an issuance of shares, the Acquiring Entity may instead substitute a cash payment on each applicable issuance date, equal to the Fair Market Value of the shares that would otherwise be issued to the Participant on such issuance dates, with the determination of the Fair Market Value of the shares made on the date of the Transaction.

  (ii)Unvested Non-Exempt Awards.  The following provisions shall apply to any Unvested Non-Exempt Award unless otherwise determined by the Board pursuant to subsection (e) of this Section.

  (1)In the event of a Transaction, the Acquiring Entity shall assume, continue or substitute any Unvested Non-Exempt Award.  Unless otherwise determined by the Board, any Unvested Non-Exempt Award will remain subject to the same vesting and forfeiture restrictions that were applicable to the Award prior to the Transaction.  The shares to be issued in respect of any Unvested Non-Exempt Award shall be issued to the Participant by the Acquiring Entity on the same schedule that the shares would have been issued to the Participant if the Transaction had not occurred.  In the Acquiring Entity’s discretion, in lieu of an issuance of shares, the Acquiring Entity may instead substitute a cash payment on each applicable issuance date, equal to the Fair Market Value of the shares that would otherwise be issued to the Participant on such issuance dates, with the determination of Fair Market Value of the shares made on the date of the Transaction.  

  (2)If the Acquiring Entity will not assume, substitute or continue any Unvested Non-Exempt Award in connection with a Transaction, then such Award shall automatically terminate and be forfeited upon the Transaction with no consideration payable to any Participant in respect of such forfeited Unvested Non-Exempt Award.  Notwithstanding the foregoing, to the extent permitted and in compliance with the requirements of Section 409A, the Board may in its discretion determine to elect to accelerate the vesting and settlement of the Unvested Non-Exempt Award upon the Transaction, or instead substitute a cash payment equal to 

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  the Fair Market Value of such shares that would otherwise be issued to the Participant, as further provided in subsection (e)(ii) below.  In the absence of such discretionary election by the Board, any Unvested Non-Exempt Award shall be forfeited without payment of any consideration to the affected Participants if the Acquiring Entity will not assume, substitute or continue the Unvested Non-Exempt Awards in connection with the Transaction.

  (3)The foregoing treatment shall apply with respect to all Unvested Non-Exempt Awards upon any Transaction, and regardless of whether or not such Transaction is also a Section 409A Change in Control.

  (d)Treatment of Non-Exempt Awards Upon a Transaction for Non-Employee Directors.  The following provisions of this subsection (d) shall apply and shall supersede anything to the contrary that may be set forth in the Plan with respect to the permitted treatment of a Non-Exempt Director Award in connection with a Transaction. 

  (i)If the Transaction is also a Section 409A Change in Control then the Acquiring Entity may not assume, continue or substitute the Non-Exempt Director Award.  Upon the Section 409A Change in Control the vesting and settlement of any Non-Exempt Director Award will automatically be accelerated and the shares will be immediately issued to the Participant in respect of the Non-Exempt Director Award.  Alternatively, the Company may provide that the Participant will instead receive a cash settlement equal to the Fair Market Value of the shares that would otherwise be issued to the Participant upon the Section 409A Change in Control pursuant to the preceding provision.

  (ii)If the Transaction is not also a Section 409A Change in Control, then the Acquiring Entity must either assume, continue or substitute the Non-Exempt Director Award.  Unless otherwise determined by the Board, the Non-Exempt Director Award will remain subject to the same vesting and forfeiture restrictions that were applicable to the Award prior to the Transaction.  The shares to be issued in respect of the Non-Exempt Director Award shall be issued to the Participant by the Acquiring Entity on the same schedule that the shares would have been issued to the Participant if the Transaction had not occurred.  In the Acquiring Entity’s discretion, in lieu of an issuance of shares, the Acquiring Entity may instead substitute a cash payment on each applicable issuance date, equal to the Fair Market Value of the shares that would otherwise be issued to the Participant on such issuance dates, with the determination of Fair Market Value made on the date of the Transaction.

  (e)If the RSU Award is a Non-Exempt Award, then the provisions in this Section 11(e) shall apply and supersede anything to the contrary that may be set forth in the Plan or the Award Agreement with respect to the permitted treatment of such Non-Exempt Award:

  (i)Any exercise by the Board of discretion to accelerate the vesting of a Non-Exempt Award shall not result in any acceleration of the scheduled issuance dates for the shares in respect of the Non-Exempt Award unless earlier issuance of the shares upon the applicable vesting dates would be in compliance with the requirements of Section 409A.

  (ii)The Company explicitly reserves the right to earlier settle any Non-Exempt Award to the extent permitted and in compliance with the requirements of Section 409A, 

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  including pursuant to any of the exemptions available in Treasury Regulations Section 1.409A-3(j)(4)(ix).

  (iii)To the extent the terms of any Non-Exempt Award provide that it will be settled upon a Transaction, to the extent it is required for compliance with the requirements of Section 409A, the Transaction event triggering settlement must also constitute a Section 409A Change in Control. To the extent the terms of a Non-Exempt Award provides that it will be settled upon a termination of employment or termination of Continuous Service, to the extent it is required for compliance with the requirements of Section 409A, the termination event triggering settlement must also constitute a Separation From Service.  However, if at the time the shares would otherwise be issued to a Participant in connection with a “separation from service” such Participant is subject to the distribution limitations contained in Section 409A applicable to “specified employees,” as defined in Section 409A(a)(2)(B)(i) of the Code, such shares shall not be issued before the date that is six months following the date of the Participant’s Separation From Service, or, if earlier, the date of the Participant’s death that occurs within such six month period.

  (iv)The provisions in this subsection (e) for delivery of the shares in respect of the settlement of a RSU Award that is a Non-Exempt Award are intended to comply with the requirements of Section 409A so that the delivery of the shares to the Participant in respect of such Non-Exempt Award will not trigger the additional tax imposed under Section 409A, and any ambiguities herein will be so interpreted.

  12.Severability.  

  If all or any part of the Plan or any Award Agreement is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any portion of the Plan or such Award Agreement not declared to be unlawful or invalid. Any Section of the Plan or any Award Agreement (or part of such a Section) so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid.

  13.Termination of the Plan.

  The Board may suspend or terminate the Plan at any time.  No Awards may be granted while the Plan is suspended or after it is terminated.

  14.Definitions.

  As used in the Plan, the following definitions apply to the capitalized terms indicated below:

  (a) “Acquiring Entity” means the surviving or acquiring corporation (or its parent company) in connection with a Transaction.

  (b)“Affiliate” means, at the time of determination, any “parent” or “subsidiary” of the Company as such terms are defined in Rule 405 promulgated under the Securities Act.  The Board 

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  may determine the time or times at which “parent” or “subsidiary” status is determined within the foregoing definition.

  (b)“Annual Meeting” means the first meeting of the Company’s stockholders held each calendar year at which Directors are selected.

  (c)“Applicable Law” means any applicable securities, federal, state, foreign, material local or municipal or other law, statute, constitution, principle of common law, resolution, ordinance, code, edict, decree, rule, listing rule, regulation, judicial decision, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Body (including under the authority of any applicable self-regulating organization such as the Nasdaq Stock Market, New York Stock Exchange, or the Financial Industry Regulatory Authority).

  (d) “Award” means any right to receive Common Stock, cash or other property granted under the Plan (including a Nonstatutory Stock Option, a Restricted Stock Award, a RSU Award, a SAR, a Performance Award or any Other Award).

  (e)“Award Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of an Award.  The Award Agreement generally consists of the Grant Notice and the agreement containing the written summary of the general terms and conditions applicable to the Award and which is provided to a Participant along with the Grant Notice. 

  (f)“Board” means the Board of Directors of the Company (or its designee).  Any decision or determination made by the Board shall be a decision or determination that is made in the sole discretion of the Board (or its designee), and such decision or determination shall be final and binding on all Participants.

  (g)“Capitalization Adjustment” means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Award after the Effective Date without the receipt of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring cash dividend, stock split, reverse stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or any similar equity restructuring transaction, as that term is used in Statement of Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor thereto).  Notwithstanding the foregoing, the conversion of any convertible securities of the Company will not be treated as a Capitalization Adjustment.

  (h) “Cause” shall have the meaning ascribed to such term in any written agreement between the Participant and the Company defining such term and, in the absence of such agreement, such term means, with respect to a Participant, the occurrence of any of the following events:  (i) such Participant’s commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof; (ii) such Participant’s attempted commission of, or participation in, a fraud or act of dishonesty against the Company; (iii) such Participant’s intentional, material violation of any contract or agreement between the 

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  Participant and the Company or of any statutory duty owed to the Company; (iv) such Participant’s unauthorized use or disclosure of the Company’s confidential information or trade secrets; or (v) such Participant’s gross misconduct. The determination that a termination of the Participant’s Continuous Service is either for Cause or without Cause shall be made by the Company, in its sole discretion.  Any determination by the Company that the Continuous Service of a Participant was terminated with or without Cause for the purposes of outstanding Awards held by such Participant shall have no effect upon any determination of the rights or obligations of the Company or such Participant for any other purpose.

  (i)“Change in Control” or “Change of Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events; provided, however, to the extent necessary to avoid adverse personal income tax consequences to the Participant in connection with an Award, also constitutes a Section 409A Change in Control:

  (i)any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction.  Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (A) on account of the acquisition of securities of the Company directly from the Company, (B) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person that acquires the Company’s securities in a transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities, or (C) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur;

  (ii)there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than 50% of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction; or

  (iii)there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the 

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  Company and its Subsidiaries to an Entity, more than 50% of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition.

  Notwithstanding the foregoing or any other provision of this Plan, (A) the term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company, and (B) the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any Affiliate and the Participant shall supersede the foregoing definition with respect to Awards subject to such agreement; provided, however, that (1) if no definition of Change in Control (or any analogous term) is set forth in such an individual written agreement, the foregoing definition shall apply and (2) no Change in Control (or any analogous term) will be deemed to occur with respect to Awards subject to such an individual written agreement without a requirement that the Change in Control (or any analogous term) actually occur.

  (j)“Code” means the Internal Revenue Code of 1986, as amended, including any applicable regulations and guidance thereunder.

  (k)“Committee” means a committee of one or more Independent Directors to whom authority has been delegated by the Board in accordance with Section 7(c).

  (l)“Common Stock” means the common stock of the Company.

  (m)“Company” means Palisade Bio, Inc., a Delaware corporation.

  (n)“Compensation Committee” means the Compensation Committee of the Board.

  (o)“Consultant” means any person, including an advisor, who is (i) engaged by the Company or an Affiliate to render consulting or advisory services and is compensated for such services, or (ii) serving as a member of the board of directors of an Affiliate and is compensated for such services.  However, service solely as a Director, or payment of a fee for such service, will not cause a Director to be considered a “Consultant” for purposes of the Plan. Notwithstanding the foregoing, a person is treated as a Consultant under this Plan only if a Form S-8 Registration Statement under the Securities Act is available to register either the offer or the sale of the Company’s securities to such person. Consultants are not eligible to receive Awards under the Plan with respect to their service in such capacity.

  (p)“Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated.  A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Director or Consultant or a change in the Entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s service with the Company or an Affiliate, will not terminate a Participant’s Continuous Service; provided, however, that if the Entity for which a Participant is rendering services ceases to qualify as an Affiliate, as determined by the Board, such Participant’s Continuous Service will be considered to have terminated on the date such Entity ceases to qualify as an Affiliate.  For example, a change 

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  in status from an Employee of the Company to a Consultant of an Affiliate or to a Director will not constitute an interruption of Continuous Service.  To the extent permitted by law, the Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service will be considered interrupted in the case of (i) any leave of absence approved by the Board or chief executive officer, including sick leave, military leave or any other personal leave, or (ii) transfers between the Company, an Affiliate, or their successors.  Notwithstanding the foregoing, a leave of absence will be treated as Continuous Service for purposes of vesting in an Award only to such extent as may be provided in the Company’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to the Participant, or as otherwise required by law.  In addition, to the extent required for exemption from or compliance with Section 409A, the determination of whether there has been a termination of Continuous Service will be made, and such term will be construed, in a manner that is consistent with the definition of “separation from service” as defined under Treasury Regulation Section 1.409A-1(h) (without regard to any alternative definition thereunder).

  (q)“Corporate Transaction” means the consummation, in a single transaction or in a series of related transactions, of any one or more of the following events:

  (iv)a sale or other disposition of all or substantially all, as determined by the Board, of the consolidated assets of the Company and its Subsidiaries;

  (v)a sale or other disposition of at least 50% of the outstanding securities of the Company;

  (vi)a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or

  (vii)a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise.

  (r)“determine” or “determined” means as determined by the Board or the Committee (or its designee) in its sole discretion.

  (s)“Director” means a member of the Board.  Directors are not eligible to receive Awards under the Plan with respect to their service in such capacity.

  (t)“Disability” means, with respect to a Participant, such Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, as provided in Section 22(e)(3) of the Code, and will be determined by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.

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  (u)“Effective Date” means November 18, 2021, which is the date this Plan was originally approved by the Independent Compensation Committee.

  (v)“Employee” means any person employed by the Company or an Affiliate.  However, service solely as a Director, or payment of a fee for such services, will not cause a Director to be considered an “Employee” for purposes of the Plan.

  (w)“Employer” means the Company or the Affiliate of the Company that employs the Participant.

  (x)“Entity” means a corporation, partnership, limited liability company or other entity.

  (y)“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

  (z)“Exchange Act Person” means any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” will not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to a registered public offering of such securities, (iv) an Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock of the Company; or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the Effective Date, is the Owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities.

  (aa)“Fair Market Value” means, as of any date, unless otherwise determined by the Board, the value of the Common Stock (as determined on a per share or aggregate basis, as applicable) determined as follows:

  (viii)If the Common Stock is listed on any established stock exchange or traded on any established market, the Fair Market Value will be the closing sales price for such stock as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the date of determination, as reported in a source the Board deems reliable.

  (ix)If there is no closing sales price for the Common Stock on the date of determination, then the Fair Market Value will be the closing selling price on the last preceding date for which such quotation exists.

  (x)In the absence of such markets for the Common Stock, or if otherwise determined by the Board, the Fair Market Value will be determined by the Board in good faith and in a manner that complies with Sections 409A of the Code.

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  (bb)“Governmental Body” means any: (a) nation, state, commonwealth, province, territory, county, municipality, district or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other government; (c) governmental or regulatory body, or quasi-governmental body of any nature (including any governmental division, department, administrative agency or bureau, commission, authority, instrumentality, official, ministry, fund, foundation, center, organization, unit, body or Entity and any court or other tribunal, and for the avoidance of doubt, any Tax authority) or other body exercising similar powers or authority; or (d) self-regulatory organization (including the Nasdaq Stock Market, New York Stock Exchange, and the Financial Industry Regulatory Authority).

  (cc)“Grant Notice” means the notice provided to a Participant that he or she has been granted an Award and which includes the name of the Participant, the type of Award, the date of grant of the Award, number of shares of Common Stock subject to the Award or potential cash payment right, (if any), the vesting schedule for the Award (if any) and other key terms applicable to the Award. 

  (dd)“Materially Impair” means that a Participant’s rights under an Award will be materially adversely affected by a suspension or termination of the Plan, an amendment of the Plan, or an amendment to the terms of the Award, as applicable.  For purposes of the Plan, a Participant’s rights under an Award will not be deemed to have been Materially Impaired by any of the foregoing actions if the Board, in its sole discretion, determines that such action, taken as a whole, does not materially impair the Participant’s rights under the Award.  For example, an amendment to the terms of an Award in order to do any of the following, or that results in any of the following, will not be deemed to Materially Impair the Participant’s rights under the Award: (i) an imposition of reasonable restrictions on the minimum number of shares subject to an Option that may be exercised; (ii) to clarify the manner of exemption from, or to bring the Award into compliance with or qualify it for an exemption from, Section 409A; or (iii) to comply with other Applicable Laws.

  (ee)“Non-Employee Director” means a Director who either (i) is not a current employee or officer of the Company or an Affiliate, does not receive compensation, either directly or indirectly, from the Company or an Affiliate for services rendered as a consultant or in any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act (“Regulation S-K”)), does not possess an interest in any other transaction for which disclosure would be required under Item 404(a) of Regulation S-K, and is not engaged in a business relationship for which disclosure would be required pursuant to Item 404(b) of Regulation S-K; or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3.

  (ff)“Non-Exempt Award” means any Award that is subject to, and not exempt from, Section 409A, including as the result of (i) a deferral of the issuance of the shares subject to the Award which is elected by the Participant or imposed by the Company, or (ii) the terms of any Non-Exempt Severance Agreement.

  (gg)“Non-Exempt Director Award” means a Non-Exempt Award granted to a Participant who was a Director but not an Employee on the applicable grant date. 

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  (hh)“Non-Exempt Severance Arrangement” means a severance arrangement or other agreement between the Participant and the Company or an Affiliate that provides for acceleration of vesting of an Award and issuance of the shares in respect of such Award upon the Participant’s termination of employment or separation from service (as such term is defined in Section 409A(a)(2)(A)(i) of the Code (and without regard to any alternative definition thereunder) (“Separation from Service”) and such severance benefit does not satisfy the requirements for an exemption from application of Section 409A provided under Treasury Regulations Section 1.409A-1(b)(4), 1.409A-1(b)(9) or otherwise.

  (ii)“Nonstatutory Stock Option” means any option granted pursuant to Section 4 of the Plan that does not qualify as an “incentive stock option” within the meaning of Section 422 of the Code.

  (jj)“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act.

  (kk)“Option” means a Nonstatutory Stock Option to purchase shares of Common Stock granted pursuant to the Plan.

  (ll)“Option Agreement” means a written agreement between the Company and the Optionholder evidencing the terms and conditions of the Option grant.  The Option Agreement includes the Grant Notice for the Option and the agreement containing the written summary of the general terms and conditions applicable to the Option and which is provided to a Participant along with the Grant Notice.  Each Option Agreement will be subject to the terms and conditions of the Plan.

  (mm)“Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.

  (nn)“Other Award” means an award based in whole or in part by reference to the Common Stock which is granted pursuant to the terms and conditions of Section 5(c).

  (oo)“Other Award Agreement” means a written agreement between the Company and a holder of an Other Award evidencing the terms and conditions of an Other Award grant.  Each Other Award Agreement will be subject to the terms and conditions of the Plan. 

  (pp)“Own,” “Owned,” “Owner,” “Ownership” means that a person or Entity will be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities.

  (qq)“Participant” means an Employee, Director or Consultant to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Award.

  (rr)“Performance Award” means an Award that may vest or may be exercised or a cash award that may vest or become earned and paid contingent upon the attainment during a 

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  Performance Period of certain Performance Goals and which is granted under the terms and conditions of Section 5(b) pursuant to such terms as are approved a majority of the Company’s Independent Directors or the Independent Compensation Committee.   

  (ss)“Performance Criteria” means the one or more criteria that a majority of the Company’s Independent Directors or the Independent Compensation Committee will select for purposes of establishing the Performance Goals for a Performance Period. The Performance Criteria that will be used to establish such Performance Goals may be based on any measure of performance selected by the Company’s Independent Directors or the Independent Compensation Committee.

  (tt) “Performance Goals” means, for a Performance Period, the one or more goals established by a majority of the Company’s Independent Directors or the Independent Compensation Committee for the Performance Period based upon the Performance Criteria.  Performance Goals may be based on a Company-wide basis, with respect to one or more business units, divisions, Affiliates, or business segments, and in either absolute terms or relative to the performance of one or more comparable companies or the performance of one or more relevant indices.  Unless specified otherwise by the Company’s Independent Directors or the Independent Compensation Committee (i) in the Award Agreement at the time the Award is granted or (ii) in such other document setting forth the Performance Goals at the time the Performance Goals are established, the Company’s Independent Directors or the Independent Compensation Committee will appropriately make adjustments in the method of calculating the attainment of Performance Goals for a Performance Period as follows: (1) to exclude restructuring and/or other nonrecurring charges; (2) to exclude exchange rate effects; (3) to exclude the effects of changes to generally accepted accounting principles; (4) to exclude the effects of any statutory adjustments to corporate tax rates; (5) to exclude the effects of items that are “unusual” in nature or occur “infrequently” as determined under generally accepted accounting principles; (6) to exclude the dilutive effects of acquisitions or joint ventures; (7) to assume that any business divested by the Company achieved performance objectives at targeted levels during the balance of a Performance Period following such divestiture; (8) to exclude the effect of any change in the outstanding shares of common stock of the Company by reason of any stock dividend or split, stock repurchase, reorganization, recapitalization, merger, consolidation, spin-off, combination or exchange of shares or other similar corporate change, or any distributions to common stockholders other than regular cash dividends; (9) to exclude the effects of stock based compensation and the award of bonuses under the Company’s bonus plans; (10) to exclude costs incurred in connection with potential acquisitions or divestitures that are required to be expensed under generally accepted accounting principles; (11) to exclude the goodwill and intangible asset impairment charges that are required to be recorded under generally accepted accounting principles; and (12) to exclude the effects of the timing of acceptance for review and/or approval of submissions to the U.S. Food and Drug Administration or any other regulatory body.  In addition, the Company’s Independent Directors or the Independent Compensation Committee retains the discretion to reduce, increase or eliminate the compensation or economic benefit due upon attainment of Performance Goals and to define the manner of calculating the Performance Criteria it selects to use for such Performance Period. Partial achievement of the specified criteria may result in the payment or vesting corresponding to the degree of achievement as specified in the Award Agreement or the written terms of a Performance Award. 

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  (uu)“Performance Period” means the period of time selected by a majority of the Company’s Independent Directors or the Independent Compensation Committee over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to vesting or exercise of an Award.  Performance Periods may be of varying and overlapping duration, at the sole discretion of a majority of the Company’s Independent Directors or the Independent Compensation Committee.

  (vv)“Plan” means this Palisade Bio, Inc. 2021 Inducement Plan, as it may be amended.

  (ww)“Plan Administrator” means the person, persons, and/or third-party administrator designated by the Company to administer the day to day operations of the Plan and the Company’s other equity incentive programs.

  (xx)“Post-Termination Exercise Period” means the period following termination of a Participant’s Continuous Service within which an Option or SAR is exercisable, as specified in Section 4(h).

  (yy) “Prospectus” means the document containing the Plan information specified in Section 10(a) of the Securities Act.

  (zz)“Restricted Stock Award” or “RSA” means an Award of shares of Common Stock which is granted pursuant to the terms and conditions of Section 5(a).

  (aaa)“Restricted Stock Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Award evidencing the terms and conditions of a Restricted Stock Award grant.  The Restricted Stock Award Agreement includes the Grant Notice for the Restricted Stock Award and the agreement containing the written summary of the general terms and conditions applicable to the Restricted Stock Award and which is provided to a Participant along with the Grant Notice.  Each Restricted Stock Award Agreement will be subject to the terms and conditions of the Plan.

  (bbb)“RSU Award” or “RSU” means an Award of restricted stock units representing the right to receive an issuance of shares of Common Stock which is granted pursuant to the terms and conditions of Section 5(a).

  (ccc)“RSU Award Agreement” means a written agreement between the Company and a holder of a RSU Award evidencing the terms and conditions of a RSU Award grant.  The RSU Award Agreement includes the Grant Notice for the RSU Award and the agreement containing the written summary of the general terms and conditions applicable to the RSU Award and which is provided to a Participant along with the Grant Notice.  Each RSU Award Agreement will be subject to the terms and conditions of the Plan.

  (ddd)“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.

  (eee)“Rule 405” means Rule 405 promulgated under the Securities Act.  

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  (fff)“Section 409A” means Section 409A of the Code and the regulations and other guidance thereunder.

  (ggg)“Section 409A Change in Control” means a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the Company’s assets, as provided in Section 409A(a)(2)(A)(v) of the Code and Treasury Regulations Section 1.409A-3(i)(5) (without regard to any alternative definition thereunder).

  (hhh)“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

  (iii)“Share Reserve” means the number of shares available for issuance under the Plan as set forth in Section 2(a).

  (jjj)“Stock Appreciation Right” or “SAR” means a right to receive the appreciation on Common Stock that is granted pursuant to the terms and conditions of Section 4.

  (kkk)“SAR Agreement” means a written agreement between the Company and a holder of a SAR evidencing the terms and conditions of a SAR grant.  The SAR Agreement includes the Grant Notice for the SAR and the agreement containing the written summary of the general terms and conditions applicable to the SAR and which is provided to a Participant along with the Grant Notice.  Each SAR Agreement will be subject to the terms and conditions of the Plan.

  (lll)“Subsidiary” means, with respect to the Company, (i) any corporation of which more than 50% of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation will have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital contribution) of more than 50%.

  (mmm)“Trading Policy” means the Company’s policy permitting certain individuals to sell Company shares only during certain "window" periods and/or otherwise restricts the ability of certain individuals to transfer or encumber Company shares, as in effect from time to time.

  (nnn)“Transaction” means a Corporate Transaction or Change in Control.

  (ooo)“Unvested Non-Exempt Award” means the portion of any Non-Exempt Award that had not vested in accordance with its terms upon or prior to the date of any Transaction.

  (ppp)“Vested Non-Exempt Award” means the portion of any Non-Exempt Award that had vested in accordance with its terms upon or prior to the date of a Transaction.

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