Document:

Exhibit 10.23
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CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL
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October 30, 2021
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VIA E-MAIL
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Jill Quigley
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Re:Terms of Transition and Separation of Employment
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Dear Jill:
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This letter confirms the agreement (“Agreement”) between you and Passage Bio, Inc. (the “Company”) concerning the terms of your transition and the termination of your employment with the Company without Cause (as defined in the Amended and Restated Employment Agreement that you entered into with the Company on November 12, 2018, as amended, attached hereto as Exhibit A (the “Employment Agreement”). If you agree to the terms outlined herein, please sign and return this Agreement to me in the timeframe outlined below.
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1.Separation of Employment:   As we have discussed, we have agreed that it is in our mutual best interests for you and the Company to part ways and for your employment with the Company to end on December 31, 2021. The Company has discussed with you the terms under which it is willing to continue your employment through the Transition Period, as described further below.

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2.Continued Employment; Separation Benefits: The Company agrees to continue your employment on the following terms:

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a.Date of Separation; Transition Period and Communications Regarding Transition: Subject to the provisions of Section 2(d) below, your last day of employment with the Company will be December 31, 2021 (the “Date of Separation”). Between now and the Date of Separation (the “Transition Period”), you agree to be available at the request of the Company’s CEO or members of the Executive Team on a remote basis upon reasonable notice for limited assistance with transition of the responsibilities, duties, and knowledge relative to your position. During the Transition Period, [*]. On October 26, 2021, the Company issued internal communications regarding your transition as attached hereto as Exhibit D. The Company agrees that all external communications from the Company’s President and CEO, members of the Executive Team and their representatives shall be consistent with Exhibit D including, but not limited to, the Company’s Form 8-K statements (a form of which is also included in Exhibit D) and statements during earnings calls regarding your transition from Company.

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b.Compensation and Benefits: During the Transition Period, the Company will continue to pay you your current base salary of four hundred fifty-three thousand three hundred ninety dollars ($453,390), your current personal transportation and commuting allowance of two thousand dollars ($2,000) per month, and you will continue to be eligible to participate in benefits customarily afforded to other employees, including bonus awards, participation in the Company-sponsored health benefits plan and continued vesting of options, to the fullest extent allowed by the governing plans, agreements, and policies.

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c.Separation Benefits:

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i.At the end of the Transition Period, and in exchange for your agreement to the general release and waiver of claims and covenant not to sue set forth in Exhibit B (the “Release”), to be signed no earlier than the Date of Separation, and your other promises and obligations outlined herein, the Company agrees to provide you with the following separation benefits: (1) a lump sum payment in the total gross amount of four hundred fifty-three thousand three hundred ninety dollars ($453,390.00) (the “Severance”); (2) a lump sum payment in the total gross amount of two hundred four thousand twenty-five dollars and fifty cents ($204,025.50) (the “2021 Bonus”); (3) COBRA Continuation (as defined below); (4 ) 100% of the unvested shares underlying the stock options granted to you pursuant to (A) the February 6, 2019 Notice of Stock Option Grants (Employee Grant Numbers OPT-3, OPT-4 and OPT-5); (B) the January 15, 2020 Notice of Stock Option Grant (Option 16-ISO and Option 16-NQ); and (C) the February 27, 2020 Notice of Stock Option Grant (Option 35 and Option 35 Split) shall be deemed fully vested as of the Date of Separation; and (5) the Company agrees to extend your post-employment deadline to exercise any unexercised vested shares (including, but not limited to, shares that become vested pursuant to Section 2(c)(i)(4) above) subject to the January 15, 2020 Notice of Stock Option Grant and February 27, 2020 Notice of Stock Option Grant to the [*] anniversary of the Date of Separation (Section 2(c)(i)(1)-(5) above, collectively, the “Separation Benefits”). For the avoidance of doubt, the Company acknowledges and agrees that, effective as of the Date of Separation and contingent on the Release becoming effective, all shares previously acquired by you pursuant to the exercise of options granted to you pursuant to the February 6, 2019 Notice of Stock Option Grant (Employee Grant Number OPT-3) will become fully vested and not subject to the repurchase option described therein.

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ii.The Severance and the 2021 Bonus shall be paid, less applicable taxes and withholdings, within thirty (30) days following the effective date of the Release.

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iii.“COBRA Continuation” means that, provided that you elect COBRA coverage, the Company will pay all premiums and other costs of such COBRA coverage for you and your eligible dependents to maintain your health insurance benefits for one year from the Date of Separation, at no cost to you. The Company will pay all costs associated with COBRA Continuation directly to the health insurance carrier and those payments will not be taxable to you.

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iv.You expressly acknowledge that the consideration provided above in this Section 2(c) fully satisfies any and all severance obligations the Company may have to you under Section 6.4 of the Employment Agreement or otherwise.

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d. Death or Incapacity: In the event of your death prior to December 31, 2021, the Company will provide to your estate the Separation Benefits that the Company would have otherwise provided to you under this Agreement. Your disability or incapacity in any respect will not impact the Company’s obligations under this Agreement including, but not limited to, the Company’s obligation to provide you with the Separation Benefits.

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3.Final Pay: On the Date of Separation, the Company will pay you f or all wages, salary, transportation and commuting allowance, bonuses, commissions, reimbursable expenses previously submitted by you, accrued vacation (if applicable) and any similar payments due you from the Company as of your termination of employment. By signing below, you acknowledge that the Company does not owe you any other amounts, except as otherwise may become payable under this Agreement and the Release.
4.Return of Company Property; Retrieval of Personal Property: You hereby warrant to the Company that the only Company computer you currently have in your possession is the Company issued Surface Pro laptop computer. You further warrant that, no later than the Date of Separation, you will return to the Company the Surface Pro laptop computer that the Company provided to you in connection with your employment. Other than devices no longer in your possession, custody, or control, you warrant that (i) the Surface Pro laptop is the only computer and (ii) your current personal cell phone is the only cell phone that you have used to conduct Company business since the commencement of your employment with the Company and that you do not have any Company information on any other computer or device. Prior to the Date of Separation, you will conduct a diligent review of your home remote workspace and return or destroy any physical Company documents in your possession. You will provide reasonable cooperation to allow the Company to remove any Company-owned applications and data from your personal cell phone without deleting your personal data. At a mutually-agreeable time on or before November 15, 2021, the Company will allow you access to Company premises so you may retrieve your personal belongings from your office and you agree to return your office access badge to the Company at that same time.
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5.Post-Employment Obligations: You hereby acknowledge that: (a) you continue to be bound by the attached Employee Invention Assignment, Confidentiality, and Non- Competition Agreement (Exhibit C hereto) (the “Restrictive Covenant Agreement”), as amended by Section 6 below; (b) as a result of your employment with the Company, you have had access to the Company’s proprietary and/or confidential information, and you will continue to hold all such information in strictest confidence and not make use of it on behalf of anyone; and (c) you must, and by your signature below confirm that you shall, deliver to the Company, no later than the Date of Separation, all documents and data of any nature containing or pertaining to such information, and not take with you, or otherwise retain in any respect, any such documents or data or any reproduction thereof.
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6.Amendment of Restrictive Covenant Agreement: You and the Company agree that Section 14(a) of the Restrictive Covenant Agreement is hereby amended and restated in its entirety as follows:
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“(a) Non-Competition. I understand that the Company’s interests in protecting its investments, goodwill, Proprietary Information. trade secrets, and/or technologies make it reasonable for the Company to ask me to agree that I will not compete with the Company for a reasonable period after the termination of my employment for any reason, whether voluntary or involuntary. Accordingly, I further agree that I will not, during the six (6) month period following the termination of my employment (the “Post-Employment Period”), anywhere within the United States (including state and state- equivalents and county and country equivalents within the United States) (the “Restricted Territory”), directly or indirectly, provide services that are the same or similar in function or purpose to the services I provided to the Company as Chief Operating Officer or such other non-attorney roles as I may have held, whether provided as an employee, consultant, director, owner or in any other capacity, to any person or entity (including any business in planning or formation) that is or intends to be engaged in the design, development, manufacture, production, marketing or sale of any gene therapy product, investigational compound or technology for use in GM1, FTD-GRN, Krabbe or MLD, CMT2A, ALS, Parkinson’s Disease, Huntington’s Disease, Alzheimer’s Disease and Temporal Lobe Epilepsy. It will not be deemed to be a violation of this section for me to make or hold either of the following investments: (a) ownership, as a passive investor, of up to two percent (2%) of any publicly traded company; or (b) an equity interest of up to two percent (2%) in any venture capital fund or other investment vehicle that makes investments in early stage companies so long as I do not participate in or influence the investment decision process of such fund or vehicle.”
7.Arbitration: Except for any claim for injunctive relief arising out of a breach of a party’s obligations to protect the other’s proprietary information, the parties agree to arbitrate, in Philadelphia, Pennsylvania through JAMS, any and all disputes or claims arising out of or related to the validity, enforceability, interpretation, performance or breach of this Agreement, whether sounding in tort, contract, statutory violation or otherwise, or involving the construction or application or any of the terms, provisions, or conditions of this Agreement. Any arbitration may be initiated by a written demand to the other party. The arbitrator's decision shall be final, binding, and conclusive. The parties further agree that this Agreement is intended to be strictly construed to provide for arbitration as the sole and exclusive means for resolution of all disputes hereunder to the fullest extent permitted by law. The parties expressly waive any entitle ment to have such controversies decided by a court or a jury. All costs unique to arbitration incurred by you or the Company in connection with any arbitration initiated pursuant to this Section 7 including, but not limited to, all arbitrator fees, will be fully and promptly paid by the Company.
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8.Attorneys’ Fees: If any action is brought to enforce the terms of this Agreement, the prevailing party will be entitled to recover its reasonable attorneys’ fees, costs and expenses from the other party, in addition to any other relief to which the prevailing party may be entitled.
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9.Reimbursement of Legal Fees: The Company will reimburse you up to [*] for legal fees incurred by you in connection with the negotiation and execution of this Agreement. You agree to promptly (and no later than thirty (30) days after the Effective Date) submit appropriate (non-privileged, non-detailed) documentation in connection therewith and the Company shall reimburse you for such legal fees no later than thirty (30) days following receipt of such documentation.
10.Confidentiality: The contents, terms and conditions of this Agreement (excluding Exhibits A, C and D) must be kept confidential by you and may not be disclosed except to your immediate family, accountant or attorneys or pursuant to subpoena or court order. You agree that if you are asked for information concerning this Agreement, you will state only that you and the Company reached an amicable resolution of any disputes concerning your separation f rom the Company. Any breach of this confidentiality provision shall be deemed a material breach of this Agreement. Nothing in this Section 10 prohibits you from disclosing the contents, terms and conditions of this Agreement: (1) in connection with an action to enforce the Agreement’s terms; (2) if the Company discloses the contents, terms or conditions of this Agreement to any third party; or (3) as otherwise required by law.
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11.Mutual Non-disparagement: You agree that you will not, directly or indirectly, disparage or make negative remarks regarding the Company or its current executive officers, directors, and employees, including, but not limited to, any statement posted on social media (including online company review sites) or otherwise on the Internet, whether or not made anonymously or with attribution. The Company agrees that its current executive officers, f or so long as they are employed by or providing services to the Company, will not, directly or indirectly, disparage or make negative remarks regarding you, including, but not limited to, any statement posted on social media or otherwise on the Internet, whether or not made anonymously or with attribution. For the avoidance of doubt, the Company agrees that all Company communications regarding your transition from the Company shall be consistent with the communications set forth in Exhibit D. Nothing in this section shall prohibit you or the Company from providing truthful information in response to a subpoena or other legal process.
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12.Indemnification; No Duty to Mitigate: The Company’s indemnification obligations set forth in Section 8 of the Employment Agreement remain in full force and effect, and survive your separation from employment with the Company. The Release attached as Exhibit B does not waive or release the Company’s indemnification obligations set forth in Section 8 of the Employment Agreement. As set forth in Section 9.10 of the Employment Agreement (which section is incorporated by reference), you have no duty to mitigate damages with respect to the termination of your employment by seeking other employment or otherwise, and there shall be no offset against any of the consideration set forth in Section 2(c) of this Agreement on account of your subsequent employment.
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13.Complete and Voluntary Agreement: This Agreement, together with Exhibits A, B, C and D hereto, and any agreements between you and the Company concerning your equity interests in the Company (as modified herein), constitute the entire agreement between you and the Company with respect to the subject matter hereof and supersedes all prior negotiations and agreements, whether written or oral, relating to such subject matter. You acknowledge that neither the Company nor its agents or attorneys have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this Agreement for the purpose of inducing you to execute the Agreement, and you acknowledge that you have executed this Agreement in reliance only upon such promises, representations and warranties as are contained herein, and that you are executing this Agreement voluntarily, free of any duress or coercion.
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14.Severability: The provisions of this Agreement are severable, and if any part of it is found to be invalid or unenforceable, the other parts shall remain fully valid and enforceable. Specifically, should a court, arbitrator, or government agency conclude that a particular claim may not be released as a matter of law, it is the intention of the parties that the general release, the waiver of unknown claims and the covenant not to sue above shall otherwise remain effective to release any and all other claims provided that the Company timely provides you with all payments and other consideration described in this Agreement.
15. Modification; Counterparts; Electronic/PDF Signatures:   It is expressly agreed that this Agreement may not be altered, amended, modified, or otherwise changed in any respect except by another written agreement that specifically refers to this Agreement, executed by authorized representatives of each of the parties to this Agreement. This Agreement may be executed in any number of counterparts, each of which shall constitute an original and all of which together shall constitute one and the same instrument. Execution of an electronic or PDF copy shall have the same force and effect as execution of an original, and a copy of a signature will be equally admissible in any legal proceeding as if an original.
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16.Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.
17. Effective Date: This Agreement is effective on the date it is signed by both parties (the “Effective Date”).
If you agree to abide by the terms outlined in this Agreement, please sign and return it to me by October 30, 2021. I wish you the best in your future endeavors.
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[Remainder of page left blank intentionally; signature page follows]
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	Sincerely,

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	PASSAGE BIO, INC.

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	By: /s/ Bruce Goldsmith

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	Bruce Goldsmith, PhD.

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	President and Chief Executive Officer

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READ, UNDERSTOOD AND AGREED
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	/s/ Jill Quigley
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	Date: 
	10/30/2021

	Jill Quigley
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EXHIBIT A
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AMENDED AND RESTATED EMPLOYMENT AGREEMENT EFFECTIVE 
NOVEMBER 12, 2018 (AS AMENDED NOVEMBER 12, 2018)
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[*]
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EXHIBIT B
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[*]
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EXHIBIT C
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EMPLOYEE INVENTION ASSIGNMENT, CONFIDENTIALITY, AND NON- COMPETITION AGREEMENT
(As Amended by Section 6 of this Agreement)
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[*]
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EXHIBIT D
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COMMUNICATIONS REGARDING EMPLOYEE DEPARTURE
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[*]Document

EXHIBIT 4.9

DESCRIPTION OF SECURITIES REGISTERED UNDER SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

The following description of the capital stock of SilverBow Resources, Inc. (the “Company,” “we,” “us,” and “our”) is based upon our First Amended and Restated Certificate of Incorporation and our First Amended and Restated Bylaws, which we refer to as our “Certificate of Incorporation” and “Bylaws,” respectively, and applicable provisions of law. The following summary does not purport to be complete and is qualified in its entirety by reference to the provisions of applicable law and to our Certificate of Incorporation and Bylaws. 

Authorized Capital Stock

We are authorized to issue up to 50,000,000 shares of stock, including up to 40,000,000 shares of common stock, par value $0.01 per share, and up to 10,000,000 shares of preferred stock, par value $0.01 per share. 

Common Stock

Voting Rights. Each holder of common stock is entitled to one vote per share. Subject to the rights, if any, of the holders of any series of preferred stock pursuant to applicable law or the provisions of the certificate of designation creating that series, all voting rights are vested in the holders of shares of common stock. Holders of shares of common stock have noncumulative voting rights, which means that the holders of more than 50% of the shares voting for the election of directors can elect 100% of the directors, and the holders of the remaining shares voting for the election of directors will not be able to elect any directors.

Dividends. Dividends may be paid to the holders of common stock when, as and if declared by the board of directors (the “Board”) out of funds legally available for their payment, subject to the rights of holders of any preferred stock. 

Rights upon Liquidation. In the event of our voluntary or involuntary liquidation, dissolution or winding up, the holders of common stock will be entitled to share equally, in proportion to the number of shares of common stock held by them, in any of our assets available for distribution after the payment in full of all debts and distributions and after the holders of all series of outstanding preferred stock, if any, have received their liquidation preferences in full.

Non-Assessable. All outstanding shares of common stock are fully paid and non-assessable.

No Preemptive Rights. Holders of common stock are not entitled to preemptive purchase rights in future offerings of our common stock.

Section 1123. We are prohibited from issuing any nonvoting equity securities to the extent required under Section 1123(a)(6) of the U.S. Bankruptcy Code and only for so long as Section 1123 of the U.S. Bankruptcy Code is in effect and applicable to us.

Preferred Stock

The Board can, without approval of our stockholders, issue one or more series of preferred stock and determine the number of shares of each series and the rights, preferences and limitations of each series. The Board shall determine the designations and the powers, preferences, rights, qualifications, limitations and restrictions of the 

preferred stock and may, at its option, divide such preferred stock into series and determine variations, if any, between any series so established.

Anti-Takeover Effects of Delaware Law, Our Certificate of Incorporation and Our Bylaws

Some provisions of Delaware law, our Certificate of Incorporation and our Bylaws contain provisions that could make the following transactions more difficult: acquisitions of us by means of a tender offer, a proxy contest or otherwise or removal of our incumbent officers and directors. These provisions may also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in our best interests, including transactions that might result in a premium over the market price for our shares.

These provisions are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with us. We believe that the benefits of increased protection and our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging these proposals because, among other things, negotiation of these proposals could result in an improvement of their terms.

Delaware Law

Section 203 of the Delaware General Corporation Law (“DGCL”) prohibits a Delaware corporation from engaging in any business combination with any interested stockholder for a period of three years following the date that the stockholder became an interested stockholder, unless:

						
		
	•	the transaction is approved by the Board before the date the interested stockholder attained that status;

						
		
	•	upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced; or

						
		
	•	on or after such time the business combination is approved by the Board and authorized at a meeting of stockholders by at least 66 2⁄3% of the outstanding voting stock that is not owned by the interested stockholder.

We have elected to not be subject to the provisions of Section 203 of the DGCL.

Our Certificate of Incorporation and Our Bylaws

Among other things, our Certificate of Incorporation and Bylaws:
						
		
	•	provide for the division of the Board into three classes, each class consisting as nearly as possible of one-third of the whole. The term of office of one class of directors expires each year; with each class of directors elected for a term of three years and until the stockholders elect their qualified successors, subject to the terms of the Nomination Agreement (as defined below);

						
		
	•	provide that all vacancies, including newly created directorships, may, except as otherwise required by law or, if applicable, the rights of holders of a series of preferred stock or certain board designation rights, and subject to the terms of the Nomination Agreement, be filled by a majority of directors then in office, even if less than a quorum, or by the sole remaining director;

						
		
	•	provide that our Bylaws may be amended by the affirmative vote of the holders of at least 66 2⁄3% of our then outstanding voting stock;

						
		
	•	provide that special meetings of our stockholders may only be called by our Chairman of the Board, Chief Executive Officer or by a majority of the total number of directors which the Company would have if there were no vacancies;

						
		
	•	authorize the Board to adopt resolutions providing for the issuance of undesignated preferred stock. This ability makes it possible for the Board to issue, without stockholder approval, preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of us;

						
		
	•	provide that the authorized number of directors may be changed only by the Board, subject to the terms of the Nomination Agreement;

						
		
	•	establish advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for election as directors or new business (other than proposals submitted in accordance with Rule 14a-8 for inclusion in our proxy proposals) to be brought before meetings of our stockholders. These procedures provide that notice of stockholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is to be taken. Generally, for a proposal to be timely submitted for consideration at an annual meeting, notice must be delivered to our secretary not less than 90 days nor more than 120 days prior to the first anniversary date of the annual meeting for the preceding year. Our Bylaws specify the requirements as to form and content of all stockholders’ notices. These requirements may preclude stockholders from bringing matters before the stockholders at an annual or special meeting;
		
	•	provide that our Bylaws may be amended by the Board; and

						
		
	•	provide that that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall, to the fullest extent permitted by law, be the sole and exclusive forum for (a) any derivative action or proceeding brought on behalf of the Company, (b) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, employee or agent of the Company to the Company or the Company’s stockholders, (c) any action asserting a claim arising pursuant to any provision of the DGCL, the Certificate of Incorporation or Bylaws, or (d) any action asserting a claim against the Company or any director or officer or other employee of the Company governed by the internal affairs doctrine, in each such case subject to such Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein.

Any person or entity purchasing or otherwise holding any interest in shares of our capital stock will be deemed to have notice of, and consented to, the provisions of our Certificate of Incorporation regarding exclusive forum. The enforceability of similar exclusive forum provisions in other companies’ certificates of incorporation has been challenged in legal proceedings, and it is possible that, in connection with one or more actions or proceedings described above, a court could rule that this provision in our Certificate of Incorporation is inapplicable or unenforceable.

The exclusive forum provision would not apply to suits brought to enforce any liability or duty created by the Securities Act of 1933, as amended (the “Securities Act”), or the Securities Exchange Act of 1934, as amended (“Exchange Act”), or any other claim for which the federal courts have exclusive jurisdiction. To the extent that any such claims may be based upon federal law claims, Section 27 of the Exchange Act creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder. Furthermore, Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder.

Director Nomination Agreement

In connection with our emergence from bankruptcy on April 22, 2016 (the “Effective Date”), we entered into the Director Nomination Agreement (the “Nomination Agreement”) with Strategic Value Partners, LLC (“SVP”) and certain other consenting noteholders named therein (the “Consenting Noteholders”). The Nomination Agreement is referenced in the Certificate of Incorporation as necessary to effectuate its terms. Pursuant to the Nomination Agreement:

(a) following the expiration of the initial terms of the Board, the Board will consist of seven members as follows:

(i) the Chief Executive Officer of the Company, which shall be a Class III Director;

(ii) two nominees designated by SVP (the “SVP Designated Directors”), which shall be one Class I Director and one Class III Director; provided, that (A) the number of nominees designated by SVP shall be reduced to one director, which shall be a Class III Director, at such time as SVP and its affiliates (other than other Consenting Noteholders) (the “SVP Entities”) collectively beneficially own common stock representing an equity percentage of less than 15% and greater than or equal to 8%, with the understanding that such reduction to one director shall be permanent and despite any later increase in their equity percentage, and (B) SVP shall permanently, and despite any later increase in their equity percentage, no longer be entitled to designate a nominee at such time as the SVP Entities collectively beneficially own common stock representing an equity percentage of less than 8%;

(iii) two nominees designated by the Consenting Noteholders (excluding SVP until such time that SVP is no longer entitled to designate an SVP Designated Director), which shall be two Class II Directors; provided, that (A) the number of nominees designated by the Consenting Noteholders shall be reduced to one director, which shall be a Class II Director, at such time as the Consenting Noteholders and their affiliates (the “Noteholder Entities”) collectively beneficially own common stock representing an equity percentage of less than 15% and greater than or equal to 8%, with the understanding that such reduction to one director shall be permanent and despite any later
increase in their equity percentage, and (B) except as set forth in section (b)(iv) below, such Consenting Noteholders shall permanently, and despite any later increase in their equity percentage, no longer be entitled to designate a nominee at such time as the Noteholder Entities collectively beneficially own common stock representing an equity percentage of less than 8%;

(iv) for the purposes of calculating the equity percentage in clauses (A) and (B) of section (b)(iii), with respect to SVP’s ownership, the equity percentage shall only include the portion of SVP’s equity percentage that exceeds 15% up to a maximum of 7.9%, until such time that SVP is no longer entitled to designate an SVP Designated Director. At such time that SVP is no longer entitled to designate an SVP Designated Director, all of SVP’s ownership shall be included in the equity percentage calculations in clauses (A) and (B) of section (b)(iii). For the purposes of section (b)(iii), the designation right contained in such provision shall still be available at the time SVP is no longer entitled to designate an SVP Designated Director, if at such time, the equity percentage ownership threshold in clause (B) of section (b)(iii) is satisfied; and

(v) one independent director and one additional director (which will be the Non-Executive Chairman) nominated by the Nominating and Strategy Committee of the Board, which shall be a Class I Director and a Class III Director.

(b) for so long as such persons are entitled to designate a nominee for director under the terms thereof, SVP and the Consenting Noteholders have the right to remove the respective directors nominated by them pursuant to the Nomination Agreement, and to designate an individual to fill the vacancy created by such removal or upon any other removal of such person as director under the Certificate of Incorporation or Bylaws on the date of such replacement designation.

The Nomination Agreement terminates upon the earlier to occur of (a) such time as the Consenting Noteholders in the aggregate no longer beneficially own common stock representing an equity percentage equal to or greater than 8% or (b) the delivery of written notice to the Company by all of the Consenting Noteholders, requesting the termination of the Nomination Agreement. Further, at such time as a particular Consenting Noteholder no longer beneficially owns any shares of common stock, all rights and obligations of such Consenting Noteholder under the Nomination Agreement will terminate.

As of March 3, 2022, the Consenting Noteholders own less than the requisite equity percentage necessary to maintain their right to nominate two Class II Directors under the Nomination Agreement and certain negative control rights provided for in the Certificate of Incorporation. As such, the related provisions of the Nomination Agreement and Certificate of Incorporation are no longer operative.

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