Document:

Exhibit
10.1 

 

Execution
Version

 

WORKIng
capital loan AGREEMENT

 

THIS
WORKING CAPITAL LOAN AGREEMENT (this “Agreement”), dated as of April 30, 2021, is made and entered into by
and among Pontem Corporation, a Cayman Islands exempted company (the “Company”), and Pontem LLC, a Delaware
limited liability company, and HSM-Invest, a Switzerland simple or general non-commercial partnership (each, a “Funding Party,”
and collectively, the “Funding Parties”).

 

RECITALS

 

WHEREAS,
the Company completed an initial public offering (the “Offering”) pursuant to which it issued 69,000,000 units
(the “Units”), with each Unit comprised of one Class A ordinary share, par value $0.0001 per share (the “Class
A Shares”), of the Company and one-third of one warrant, each whole warrant exercisable to purchase one Class A Share at
$11.50 per share, subject to certain adjustments; and

 

WHEREAS,
the Funding Parties desire to enter into this Agreement in order to provide working capital to the Company to facilitate any merger,
capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination by the Company with one
or more businesses (a “Business Combination”).

 

NOW, THEREFORE,
in consideration of the representations, covenants and agreements contained herein, and certain other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1. (a) From
time to time, as may be requested by the Company, each of the Funding Parties agree to advance to the Company from time to time up to
the maximum amount allocated thereto on Schedule 1 hereto on a pro rata basis (collectively, the “Advances”),
up to a maximum of $1,200,000 in the aggregate, in each instance pursuant to the terms of the form of promissory note attached as Exhibit
A hereto (the “Note”), as may be necessary to fund the Company’s working capital expenses prior
to completion of any potential Business Combination.

  

(b) Each
of the Funding Parties represents to the Company that they are capable of making such Advances to satisfy their respective obligations
under clause (a) of this Section 1. In addition, the Company acknowledges and agrees that the respective obligations of each of the Funding
Parties to provide such Advances are several and not joint, and that the failure of any Funding Party to fund any Advance when due shall
not impose any additional obligation on the other non-defaulting Funding Parties.

 

(c) Notwithstanding
anything herein to the contrary, the Payee hereby waives any and all right, title, interest or claim of any kind (each, a “Claim”)
in or to, and any distribution of or from the trust account established for the benefit of the public stockholders of the Company and
into which substantially all of the proceeds of the Company’s Offering are deposited (the “Trust Account”),
and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason
whatsoever; provided, however, that if the Maker completes a Business Combination, the Maker shall promptly repay the principal
balance of this Note out of the proceeds released to the Maker from the Trust Account.

 

2. This
Agreement, together with the Note, constitutes the entire agreement and understanding of the parties hereto in respect of the advancement
of expenses contemplated herein and supersedes all prior understandings, agreements, or representations by or among the parties hereto,
written or oral, to the extent they relate in any way thereto or to the transactions contemplated hereby in connection therewith. This
Agreement may not be changed, amended, modified or waived (other than to correct a typographical error) as to any particular provision,
except by a written instrument executed by the parties hereto.

 

     

     

    

 

3. No
party may assign either this Agreement or any of his, her or its rights, interests, or obligations hereunder without the prior written
consent of the other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate
to transfer or assign any interest or title to the purported assignee. This Agreement shall be binding on the undersigned and each of
his or its heirs, personal representatives, successors and assigns including, in the case of the Company, any successor thereto as a
result of the completion of a Business Combination.

 

4. All
notices, statements or other documents which are required or contemplated by this Agreement shall be: (i) in writing and delivered personally
or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission to the address
designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address or fax number as may
be designated in writing by such party and (iii) by electronic mail, to the electronic mail address most recently provided to such party
or such other electronic mail address as may be designated in writing by such party. Any notice or other communication so transmitted
shall be deemed to have been given on the day of delivery, if delivered personally, on the business day following receipt of written
confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery to an overnight courier service or
five (5) days after mailing if sent by mail. Such notice, statement or demand shall be addressed as follows.

 

If
to the Company:

 

Pontem
Corporation

1140 Avenue of the Americas, 9th Floor

New York, NY 10036

Attn: Hubertus Muehlhaeuser

 

If
to the Funding Parties:

 

Pontem
LLC

1140
Avenue of the Americas, 9th Floor

New York, NY 10036

Attn:
Nina Murphy

 

HSM-Invest

Hurdnerstrasse
66

8640 Hurden SZ, Switzerland

Attn:
Hubertus Muehlhaeuser

 

5. This
Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

6. This
Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity
or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable
term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to
such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

7. This
Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect
to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The parties hereto
(i) agree that any action, proceeding, claim or dispute arising out of, or relating in any way to, this Agreement shall be brought and
enforced in the courts of New York, in the State of New York, and irrevocably submit to such jurisdiction and venue, which jurisdiction
and venue shall be exclusive and (ii) waive any objection to such exclusive jurisdiction and venue or that such courts represent an inconvenient
forum.

 

[Signature
Page Follows]

 

     

     

    

  

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

 

	 	PONTEM CORPORATION
	 	 	 
	 	By: 	/s/ Nina Murphy
	 	Name: 	Nina Murphy
	 	Title: 	Chief Financial Officer
	 	 	 
	 	PONTEM LLC
	 	 	 
	 	By: 	/s/ Nina Murphy
	 	Name: 	Nina Murphy
	 	Title: 	Chief Financial Officer and Secretary
	 	 	 
	 	HSM-INVEST
	 	 	 
	 	By: 	/s/ Hubertus Muehlhaeuser
	 	Name:   	Hubertus Muehlhaeuser
	 	Title:  	Partner

 

     

     

    

 

Schedule
I

Allocation

 

	 	 	Maximum Advances	 	 	Percentage	 
	Pontem LLC	 	$	600,000	 	 	 	50.00	%
	HSM-Invest	 	$	600,000	 	 	 	50.00	%
	Total	 	$	1,200,000	 	 	 	100.00	%

  

    Schedule I

     

    

 

Exhibit
A

Promissory Note

 

THIS
PROMISSORY NOTE (“NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).
THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE
THEREOF UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.

 

PROMISSORY
NOTE

 

Dated
as of     , 2021

Principal
Amount: $600,000

(as
set forth on the Schedule of Borrowings attached hereto)

New
York, New York

 

Pursuant
to that certain Working Capital Loan Agreement (the “Agreement”), dated as of , 2021 by and among Pontem Corporation,
a Cayman Islands exempted company (the “Maker”), and Pontem LLC, Delaware limited liability company (“Sponsor”),
and HSM-Invest, a Switzerland simple or general non-commercial partnership (“HSM-Invest”), the Maker promises to pay
to the order of [Sponsor // HSM-Invest], or its registered assigns or successors in interest (the “Payee”), the principal
sum of Six Hundred Thousand U.S. Dollars ($600,000) (as set forth on the Schedule of Borrowings attached hereto) in lawful money of the
United States of America, on the terms and conditions described below. All payments on this Note shall be made by check or wire transfer
of immediately available funds or as otherwise determined by the Maker to such account as the Payee may from time to time designate by
written notice in accordance with the provisions of this Note. Certain terms used herein but not defined herein shall have the meaning
given to such terms in the Agreement.

 

This
Note, together with that certain Promissory Note, dated as of the date hereof, between the Maker and [HSM-Invest // Sponsor], are
collectively referred to as the “Working Capital Promissory Notes”. The “Payee” under the Working Capital
Promissory Notes are collectively referred to as the “WC Payees” and each as a “WC Payee”.

 

1. Principal. The
principal balance of this Note shall be payable by the Maker on the date on which Maker consummates its Business Combination (the “Maturity
Date”). The principal balance may be prepaid at any time. Under no circumstances shall any individual, including but not limited
to any officer, director, employee or shareholder of the Maker, be obligated personally for any obligations or liabilities of the Maker
hereunder.

 

2. Interest. No
interest shall accrue on the unpaid principal balance of this Note.

 

3. Drawdown
Requests. Maker and the Payee agree that Maker may request up to Six Hundred Thousand Dollars ($600,000) to fund Maker’s
working capital expenses prior to completion of any potential Business Combination. The principal of this Note may be drawn down from
time to time prior to the Maturity Date, upon written request from Maker to the Payee (each, a “Drawdown Request”).
Each Drawdown Request must state the amount to be drawn down, and must not be an amount less than One Thousand Dollars ($1,000) unless
agreed upon by Maker and the Payee. The Payee shall fund each Drawdown Request no later than one (1) business day after receipt of a
Drawdown Request; provided, however, that the maximum amount of drawdowns collectively under the Working Capital Promissory Notes is
One Million Two Hundred Thousand Dollars ($1,200,000) and that amounts of principal may only be drawn down under this Note on a pro rata
basis (based on the allocation set forth on Schedule I of the Agreement) with amounts drawn down upon under the other Working Capital
Promissory Note. The obligation of each WC Payee to fund Drawdown Requests shall be several and not joint. No fees, payments or other
amounts shall be due to Payee in connection with, or as a result of, any Drawdown Request by Maker.

 

4.  Application
of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due under
this Note, including (without limitation) reasonable attorney’s fees, then to the payment in full of any late charges and finally
to the reduction of the unpaid principal balance of this Note.

 

    Exhibit A-1

     

    

 

5. Events
of Default. The following shall constitute an event of default (“Event of Default”):

 

(a) Failure
to Make Required Payments. Failure by Maker to pay the principal amount due pursuant to this Note within five (5) business days of
the Maturity Date.

 

(b) Voluntary
Bankruptcy, Etc. The commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization, rehabilitation
or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator (or other similar official) of Maker or for any substantial part of its property, or the making by it of any assignment
for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts become due, or the taking of corporate
action by Maker in furtherance of any of the foregoing.

 

(c) Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker in
an involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering the winding-up
or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive
days.

 

[(d) Cross
Defaults, Etc. The provision of notice of an Event of Default to Maker by any other WC Payee with respect to any other Working Capital
Promissory Note.]

  

6. Remedies.

 

(a) Upon
the occurrence of an Event of Default specified in Section 5(a) hereof, the Payee may, by written notice to Maker, declare this Note
to be due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable hereunder, shall
become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly
waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b) Upon
the occurrence of an Event of Default specified in Section 5(b) or 5(c) hereof, the unpaid principal balance of this Note, and all other
sums payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action on
the part of the Payee.

 

7. Waivers. Maker
and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest,
and notice of protest with regard to this Note, all errors, defects and imperfections in any proceedings instituted by the Payee under
the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property, real
or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution, or
providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any real
estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution issued hereon, may be sold
upon any such writ in whole or in part in any order desired by the Payee.

 

8. Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other party,
and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to
by the Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by Payee with respect
to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors, or sureties may become parties
hereto without notice to Maker or affecting Maker’s liability hereunder.

 

9. Notices. All
notices, statements or other documents which are required or contemplated by this Agreement shall be: (i) in writing and delivered personally
or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission to the address
designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address or fax number as may
be designated in writing by such party and (iii) by electronic mail, to the electronic mail address most recently provided to such party
or such other electronic mail address as may be designated in writing by such party. Any notice or other communication so transmitted
shall be deemed to have been given on the day of delivery, if delivered personally, on the business day following receipt of written
confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery to an overnight courier service or
five (5) days after mailing if sent by mail.

 

    Exhibit A-2

     

    

 

10.   CONSTRUCTION. THIS
NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.

 

11.   Severability. Any
provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

12.   Trust
Waiver. Notwithstanding anything herein to the contrary, the Payee hereby waives any and all right, title, interest or claim
of any kind (each, a “Claim”) in or to, and any distribution of or from the trust account established for the
benefit of the public stockholders of the Company and into which substantially all of the proceeds of the Company’s Offering are
deposited (the “Trust Account”), and hereby agrees not to seek recourse, reimbursement, payment or satisfaction
for any Claim against the Trust Account for any reason whatsoever; provided, however, that if the Maker completes a Business Combination,
the Maker shall promptly repay the principal balance of this Note out of the proceeds released to the Maker from the Trust Account.

 

13.   Amendment;
Waiver. Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of the Maker
and the Payee.

 

14.   Assignment. No
assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation of law or otherwise)
without the prior written consent of the other party hereto and any attempted assignment without the required consent shall be void.

 

15.   Conversion.

 

(a) At
the Payee’s option, at any time prior to payment in full of the principal balance of this Note, the Payee may elect to convert
all or any portion of the outstanding principal amount of this Note into that number of warrants (the “Conversion Warrants”)
equal to: (i) the portion of the principal amount of the Note being converted pursuant to this Section 15, divided by (ii) $1.50, rounded
up to the nearest whole number; provided, however, that the principal amount of any Working Capital Promissory Notes converted shall
not exceed in the aggregate $1,500,000 and that amounts of principal converted under this Note shall be on a pro rata basis (based on
the allocation set forth on Schedule I of the Agreement) with amounts converted under the other Working Capital Promissory Note. Each
Conversion Warrant shall have the same terms and conditions as the warrants issued by the Maker to the Payee pursuant to a private placement,
as described in Maker’s Registration Statement on Form S-1 (333-251756). The Conversion Warrants, the Class A Shares underlying
the Conversion Warrants and any other equity security of Maker issued or issuable with respect to the foregoing by way of a share dividend
or share split or in connection with a combination of shares, recapitalization, amalgamation, consolidation or reorganization, shall
be entitled to the registration rights set forth in that certain Registration and Shareholder Rights Agreement, dated as of January 12,
2021, among the Company, the Payees and the other parties thereto.

 

(b) Upon
any complete or partial conversion of the principal amount of this Note, (i) such principal amount shall be so converted and such
converted portion of this Note shall become fully paid and satisfied, (ii) the Payee shall surrender and deliver this Note, duly endorsed,
to Maker or such other address which Maker shall designate against delivery of the Conversion Warrants, (iii) Maker shall promptly deliver
a new duly executed Note to the Payee in the principal amount that remains outstanding, if any, after any such conversion and (iv) in
exchange for all or any portion of the surrendered Note, Maker shall deliver to Payee the Conversion Warrants, which shall bear such
legends as are required, in the opinion of counsel to Maker or by any other agreement between Maker and the Payee and applicable state
and federal securities laws.

 

(c) The
Payee shall pay any and all issue and other taxes that may be payable with respect to any issue or delivery of the Conversion Warrants
upon conversion of this Note pursuant hereto; provided, however, that the Payee shall not be obligated to pay any transfer taxes
resulting from any transfer requested by the Payee in connection with any such conversion.

 

(d) The
Conversion Warrants shall not be issued upon conversion of this Note unless such issuance and such conversion comply with all applicable
provisions of law.

 

[Signature
Page Follows] 

 

    Exhibit A-3

     

    

 

IN
WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the
day and year first above written.

 

	 	PONTEM
    CORPORATION
	 	 
	 	By:	 
	 	Name: 	Nina Murphy
	 	Title: 	Chief Financial Officer
	 	 
	 	[PAYEE]
	 	 
	 	By:	    
	 	Name: 	 
	 	Title: 	 

 

[Signature
Page to Promissory Note]

 

    Exhibit A-4

     

    

 

SCHEDULE
OF BORROWINGS

 

The
following increases or decreases in this Note have been made:

 

	Date of Increase or

    Decrease	 	Amount of Decrease in

    Principal Amount of this

    Note	 	Amount of Increase in

    Principal Amount of this

    Note	 	Principal Amount of this

    Note Following Such

    Decrease or Increase
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

Schedule of BorrowingsDocument

Nasdaq, Inc. Board 
Compensation Policy
						
	
	Amended and Restated as of June 16, 2021

	/                                                                               Chief Financial Officer    /    Version 2.1

	
		
	Purpose & Statement Of Policy
	QUESTIONS?
Please contact the Office of the Corporate Secretary with questions about the policy.

	
	Annual Non-Employee Director (“Director”) compensation consists of the following elements, each of which is discussed further below: (i) annual retainer, (ii) annual equity award, (iii) annual committee chair fees and (v) annual committee member fees.

	Director compensation will be based on a compensation year in connection with the annual meeting of stockholders (the “Annual Meeting”). This enables Directors to receive equity immediately following election and appointment to the Board at the Annual Meeting.

	Applicability & Scope	
	This Policy is applicable to all non-employee Directors of Nasdaq, Inc.
	
	Annual Retainer	

•Annual Director Retainer compensation is equal to a total value of $75,000 for each Director, other than the Chairman of the Board.
•The Lead Independent Director, if any, will receive the Annual Director Retainer plus an additional Lead Independent Director Retainer of $75,000.
•The Chairman of the Board will receive Annual Board Chairman Retainer compensation equal to a total value of $240,000.
•Annual Retainer compensation will be delivered in the form of equity; however, Directors may annually elect to receive the entire Retainer compensation in cash or equity. Each Director will have the opportunity to make this election during the thirty (30) day period preceding the Annual Meeting. If the Director declines to make an election, the entire Annual Retainer will be paid in equity.
•Equity will be issued as Restricted Stock Units to each eligible director automatically on the date of the Annual Meeting immediately following the Director’s election and appointment by the Board. The equity portion selected will be paid in accordance with the “Policies and Procedures Relating to Equity Grants” below.

						
		

 

•If cash is selected, the cash portion will be paid semi- annually in arrears, in equal installments, no later than the fifteenth day of the third month following the end of the semi-annual period; provided, however, that a Director will have a right to receive a cash payment for any given period only if that person serves as a Director during all or a portion of that period, with the cash payment for the period being prorated in the case of a person who serves as a Director during only a portion of a period (other than on account of death or disability).
•A Director appointed after the annual shareholders meeting will be eligible to receive a prorated share of the Annual Retainer compensation. Such a Director may elect to receive the entire prorated share of the Annual Retainer compensation in cash or equity. Any cash portion will be paid semi-annually in arrears.
Annual Equity Award
•All Directors, including the Chairman and Lead Independent Director, will receive an additional annual equity award in the form of Restricted Stock Units, in the amount of $260,000 per annum.
•The annual equity award will be granted to each Director automatically on the date of the Annual Meeting immediately following the Director’s election and appointment to the Board.  A Director appointed to the Board at any time after the annual shareholders meeting will be eligible to receive a prorated share of the annual equity award.
•The annual equity award will be paid in accordance with the “Policies and Procedures Relating to Equity Grants” below.
Annual Committee Chair Fees
•The Chairperson of the Audit & Risk Committee will receive an Annual Chair Fee of $40,000.
•The Chairperson of the Management Compensation Committee will receive an Annual Chair Fee of $30,000.
•The Chairperson of the Finance and Nominating & ESG Committees will receive an Annual Chair Fee of $20,000.
•The Annual Chair fees will be paid in equity; however, each Chairperson may elect to receive the entire Annual Chair fees in cash. The Annual Chair fees will be issued as Restricted Stock Units to each eligible director automatically on the date of the Annual Meeting immediately following the Director’s election  and appointment by the Board. A Chairperson appointed to the Board at any time after the annual shareholders meeting will be eligible to receive a prorated share of the Annual Committee Chair Fees. Fees paid in equity will be paid in accordance with the “Policies and Procedures Relating to Equity Grants” below.

•If cash is selected, the cash portion will be paid semi- annually in arrears, in equal installments, no later than the fifteenth day of the third month following the end of the semi-annual period; provided, however, that a Director will have a right to receive a cash payment for any given period only if that person serves as a Director during all or a portion of that period, with the cash payment for the period being prorated in the case of a person who serves as a Director during only a portion of a period (other than on account of death or disability).
Annual Committee Member Fees
•Each Non-Chair Member of the Audit & Risk Committee will receive an annual membership fee of $20,000.
•Each Non-Chair Member of the Management Compensation Committee and Nominating &  ESG Committee will receive an annual membership fee of $10,000.
•Each Non-Chair Member of the Finance Committee will receive an annual membership fee of $5,000.
•The Annual Committee Member fees will be paid in equity; however, each Non-Chair Member may elect to receive the entire Annual Committee Member fees in cash. The Annual Committee Member fees will be issued as Restricted Stock Units to each eligible director automatically on the date of the Annual Meeting immediately following the Director’s election and appointment by the Board. A Director appointed to the Board at any time after the annual shareholders meeting will be eligible to receive a prorated share of the Annual Committee Member Fees. Fees paid in equity will be paid in accordance with the “Policies and  Procedures Relating to Equity Grants” below.
•If cash is selected, the cash portion will be paid semi- annually in arrears, in equal installments, no later than the fifteenth day of the third month following the end of the semi-annual period; provided, however, that a Director will have a right to receive a cash payment for any given period only if that person serves as a Director during all or a portion of that period, with the cash payment for the period being prorated in the case of a person who serves as a Director during only a portion of a period (other than on account of death or disability).
Policies And Procedures Relating To Equity Grants
General
•All Director equity will be granted under the Equity Plan.
•Calculation of the number of shares of equity to be awarded to Directors will be valued at 100% of face value and based on the closing price of Nasdaq’s 

						
		

 

common stock on the date of the grant. Equity awards are non-transferable and must be issued to the Director.
•Any grants of equity under this policy shall be exempt pursuant to Rule 16b-3 under the Securities Exchange Act of 1934, as amended.
Vesting
•Equity awards will vest 100% one (1) year from the date of the grant. Equity awards will also vest upon the scheduled expiration of a Director’s term, if such term is not renewed.
•Upon a Director’s resignation (other than for death or disability) prior to the end of the Director’s term, unvested equity awards will be forfeited.
•Upon termination of a Director for “Misconduct,” all unvested equity awards will be forfeited without further consideration to the Director.
•Upon termination of a Director on account of his death or disability, unvested equity awards will vest.
•Shortly after vesting, vested shares will appear in the Director’s account at E*Trade. To view this information, a Director may log directly onto his or her online E*Trade account at https://us.etrade.com/e/t/user/login_sp. Additionally, a Director may contact E*Trade’s Executive Services Team at 1.972.218.0187 or via email at executiveservices@etrade.com
Equity Agreements, Share Restrictions & Voting Rights
•Equity awards will be evidenced by an Equity Award Agreement to be entered into with each Director.
•Once vested, shares will be freely tradeable. Nasdaq does not have a repurchase right or obligation.
•Trading in Nasdaq shares, however, is subject to the Director and Executive Officers Trading Policy and to any contractual restrictions on transfer, such as lock- up agreements, that may be applicable.
Reporting and Disclosure
•SEC Form 4s (Change in Beneficial Ownership) must be filed by each Director with the SEC within 2 business days of equity grants. The Director may request Nasdaq’s assistance with the preparation and filing of Form 4s and other Section 16 reports by providing a completed Power of Attorney and CIK/CCC Code, if the Director has a CIK/CCC Code currently assigned.
•Equity will be reflected as stock owned by Directors, if required, in the Beneficial Ownership Table of the 

Nasdaq Proxy and will be disclosed under the general Director Compensation section of the Proxy.

Stock Ownership Guidelines For Directors
•Stock ownership guidelines for Directors of Nasdaq are as follows.
						
		Value of Shares Owned
	Chairman of the Board
	6x Annual Board Chairman Equity Grant

	All Other Directors
	2x Annual Director Equity Grant

•New Directors are expected to meet the applicable level of ownership within four years of their election to the Board of Directors.
•The value of shares owned will be calculated based upon Nasdaq’s average closing common stock price for a 90 day period prior to the date on which the Director is expected to meet the applicable level of stock ownership.
•Shares that count toward meeting the stock ownership guidelines include:
•Shares owned outright (e.g., shares obtained upon option exercise, shares purchased in the open market, etc.)
•Shared ownership (e.g., shares owned or held in trust by immediate family)
•Vested and unvested restricted shares
•Shares that do not count toward meeting the stock ownership guidelines:
•Vested stock options
•Unvested stock options
•Once an applicable guideline threshold has been attained, the Director is expected to continuously retain sufficient share ownership to meet the guideline for as long as the Director is subject to the Stock Ownership Guidelines.
•There may be instances where an exception to the guidelines is necessary or appropriate, including in cases where the satisfaction of the guidelines would place a severe hardship on the Director. In such cases, the Chairman of the Board will make a final determination as to whether an exception to the Stock Ownership Guidelines, in whole or in part, will be granted.

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