Document:

Exhibit

SEPARATION AGREEMENT AND GENERAL RELEASE 

This Separation Agreement and General Release (this “Agreement”) is entered into by and between Marcellous P. Frye, Jr. (“Executive”) and Washington Gas Light Company, a corporation duly organized and existing under the laws of the District of Columbia and the Commonwealth of Virginia (the “Company”).  

WHEREAS, Executive currently serves as the Vice President of Economic Development and Strategy of the Company;
WHEREAS, the Company currently maintains the WGL Holdings, Inc. and Washington Gas Light Company Change in Control Severance Plan for Certain Executives (as amended, the “CIC Severance Plan”), and Executive participates in the CIC Severance Plan;
WHEREAS, WGL Holdings, Inc., a Virginia corporation and parent of the Company (“Holdings”), maintains the WGL Holdings, Inc. 2016 Omnibus Incentive Compensation Plan (the “Omnibus Plan”), pursuant to which Executive has been granted certain long-term incentive awards, including grants of equity compensation awards and cash-settled performance unit awards (“LTI Awards”);
WHEREAS, on July 6, 2018, Holdings consummated the transactions contemplated by that certain Agreement and Plan of Merger, dated as of January 25, 2017 (the “Merger Agreement”), by and among AltaGas Ltd., a Canadian corporation (“Parent”), Wrangler Inc., a Virginia corporation, and Holdings;
WHEREAS, on or about August 1, 2018, Executive and Company entered into a retention agreement which provided for a retention bonus to be paid to Executive under certain circumstances (the “Retention Bonus Letter Agreement”);
WHEREAS, Executive’s employment with the Company will end effective as of May 10, 2019 (the “Separation Date”);
WHEREAS, the parties desire for Executive to receive (i) the benefits Executive is eligible to receive upon a Good Reason Resignation (as defined in the CIC Severance Plan) under the CIC Severance Plan, which benefits are conditioned upon Executive’s timely execution (and non-revocation) of this Agreement and Executive’s compliance with the terms of this Agreement, and (ii) accelerated vesting of Executive’s Post-Signing LTI Awards (as defined below) upon a Good Reason Resignation as provided in the Company Disclosure Schedules to the Merger Agreement (the “Disclosure Schedules”);
WHEREAS, this Agreement is intended to qualify as the “Separation of Employment Agreement and General Release” referenced in Section 2.23 of the CIC Severance Plan; and
WHEREAS, the parties wish to resolve any and all claims that Executive has or may have against the Company or any of the other Company Parties (as defined below), including any claims that Executive may have arising out of Executive’s employment or the end of such employment.

NOW, THEREFORE, in consideration of the promises set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties agree as follows:
1.Separation from Employment.  Executive’s employment with the Company will end effective as of the Separation Date.  The parties hereby acknowledge and agree that such termination is a Good Reason Resignation for purposes of the CIC Severance Plan and the Post-Signing LTI Awards. As of the Separation Date, Executive will not have any further employment relationship with the Company or any other Company Party. The end of Executive’s employment with the Company on the Separation Date shall constitute, as applicable, an automatic resignation of Executive: (a) as an officer of the Company, Holdings, and their direct and indirect subsidiaries  (collectively, the “Company Group”); and (b) from the board of directors or board of managers (or similar governing body) of any member of the Company Group and from the board of directors or board of managers (or similar governing body) of any corporation, limited liability entity, unlimited liability entity or other entity in which any member of the Company Group holds an equity interest and with respect to which board of directors or board of managers (or similar governing body) Executive serves as such Company Group member’s designee or other representative.
2.    Separation Benefits and Additional Benefits.  
(a)    Provided that Executive (x) executes this Agreement on or after the Separation Date and returns it to Luanne S. Gutermuth, EVP and Chief Administrative Officer, at 6801 Industrial Road, Springfield, VA 22151, no later than May 28, 2019; (y) does not exercise his revocation right described in Section 6 of this Agreement; and (z) abides by each of his commitments set forth herein and in the CIC Severance Plan, then: 
		
	(i)
	Pursuant to Section 4.1(a) of the CIC Severance Plan, the Company will provide Executive with a salary replacement benefit in the total amount of $1,211,262.80, less applicable taxes and withholdings (the “Severance Payment”), which amount (I) equals the sum of: (A) an amount equal to the product of (1) Executive’s Annual Bonus (as defined in the CIC Severance Plan) for the 2019 calendar year ($189,500), multiplied by (2) a fraction, the numerator of which is the number of days in the 2019 calendar year up to and including the Separation Date and the denominator of which is 365; (B) an amount equal to the product of (1) the sum of (x) Executive’s Base Salary (as defined in the CIC Severance Plan plus (y) Executive’s Annual Bonus, and (2) two, and  (C) Executive’s unpaid current-year PTOA through the Separation Date (II) is subject to adjustment under Section 4.5 of the CIC Severance Plan.  In accordance with Section 5.1 of the CIC Severance Plan, the Severance Payment will be paid in a single lump sum on the date that is 65 days after the Separation Date (the date of such payment, the “Separation Payment Date”);

		
	(ii)
	Pursuant to Section 4.1(b)(1) of the CIC Severance Plan, Executive shall continue to be eligible to participate in the medical and dental coverage in effect with respect to Executive on the Separation Date for Executive and, 

if applicable, Executive’s spouse and eligible dependents (as the same may be changed from time to time for employees of the Company generally), and as if Executive had remained continuously employed by the Company during the 18-month period immediately following the Separation Date (the “COBRA Continuation Coverage Period”).  The Company shall be responsible for the payment of the employee portion of the required medical and dental contributions with respect to such coverage during the COBRA Continuation Coverage Period.  Each of the Company's payments pursuant to the foregoing sentence shall be increased by an additional amount equal to the Federal, state and local income tax and FICA applicable to such payment, determined by applying the highest marginal Federal, state and local tax rates in effect at the payment date, with the intention that the Company will pay the full cost of the continued benefit coverage, including any applicable taxes. The Company reserves the right to determine the amount of any increased payment under this paragraph in its full discretion;
		
	(iii)
	Pursuant to Section 4.1(b)(2) of the CIC Severance Plan, the Company will provide Executive with a medical and dental benefit continuation payment, less applicable taxes and withholdings (the “Benefit Continuation Payment”), with such Benefit Continuation Payment in an amount equal to 102% of the Company’s cost of providing Executive, his spouse and eligible dependents coverage under the Company’s medical and dental plans for the 6-month period beginning on the last day of the COBRA Continuation Coverage Period, plus an additional amount equal to the federal income tax applicable to such amount (determined by applying the highest marginal federal income tax rate in effect on the Separation Payment Date). In accordance with Section 5.1 of the CIC Severance Plan, the Benefit Continuation Payment will be paid in a single lump sum on the Separation Payment Date;

		
	(iv)
	Pursuant to Section 4.1(c) of the CIC Severance Plan, the Company will credit Executive with two years of benefit service (but shall not credit such additional years in determining Executive’s age) under the Washington Gas Light Company Supplemental Executive Retirement Plan; and

		
	(v)
	Pursuant to Section 4.1(d) of the CIC Severance Plan, the Company will pay or reimburse Executive for up to $25,000 in outplacement services, the scope and provider of which shall be selected by Executive (the “Outplacement Services”); provided, however, that in no event will the Company pay or reimburse Executive for any expenses relating to Outplacement Services that are incurred following the date that is 12 months following the Separation Date, and all such payments and reimbursements must be paid no later than the date that is 18 months following the Separation Date. 

The payments and benefits set forth in this Section 2(a) are referred to herein collectively as the “Separation Benefits”.
(b)    The Company acknowledges that Executive is entitled to the following benefits without regard to Executive’s execution of this Agreement:
		
	(i)
	Payment of Executive’s unpaid Base Salary for services performed through the Separation Date and payment in lieu of Executive’s current PTO balance as of the Separation Date, payable no later than 30 days following the Separation Date or such earlier date as required by applicable law;

		
	(ii)
	Pursuant to Section 4.1(b)(x)7 of the Disclosure Schedules and the applicable Award Agreements (as defined in the Omnibus Plan) evidencing any LTI Awards granted in connection with an Ordinary Course LTI Award Grant Date (as defined in the Disclosure Schedules) (such LTI Awards, “Post-Signing LTI Awards”), each Post-Signing LTI Award granted before July 6, 2018 shall become immediately fully vested as of the Separation Date and be settled in accordance with the applicable Award Agreement; and

		
	(iii)
	To the extent not paid or provided prior to the Separation Date, the Company shall timely pay or provide Executive with any other amounts or benefits required to be paid or provided or which Executive is eligible to receive under any employee benefit plan that is subject to ERISA (as defined below), including any rights to benefits under health plans and vested benefits under retirement plans or pension plans.

The payments and benefits set forth in this Section 2(b) are referred to herein collectively as the “Additional Benefits”. 
3.    Satisfaction of All Leaves and Payment Amounts; Prior Rights and Obligations.  In entering into this Agreement, Executive expressly acknowledges and agrees that, except as otherwise set forth in this Agreement, Executive has received all leaves (paid and unpaid) to which Executive has been entitled during Executive’s employment or engagement with the Company and any other Company Party, and Executive has received all wages, bonuses and other compensation, been provided all benefits and been afforded all rights and been paid all sums that Executive is owed or has been owed by the Company or any other Company Party, including all payments arising out of all incentive plans and any other bonus arrangements. For the avoidance of doubt, Executive shall not be entitled to receive (a) any payments or benefits pursuant to the Washington Gas Light Company Severance Pay Plan, (b) any payments under the Retention Bonus Letter Agreement, or (c) any payments under the LTI Awards granted after July 6, 2018.  Notwithstanding the foregoing, Executive remains entitled to receive (to the extent still unpaid as of the date that Executive signs this Agreement) the Separation Benefits and the Additional Benefits in accordance with this Agreement, and Executive remains entitled to any benefits that may become due to him pursuant to Sections 4.5 and 4.6 of the CIC Severance Plan.  Executive acknowledges and agrees that Executive had no right to the Separation Benefits (or any portion thereof) but for Executive’s entry into this Agreement and satisfaction of the terms herein.  

4.    General Release of Claims.
(a)    As a condition of Executive’s receipt of the Separation Benefits (and any portion thereof), Executive hereby acquits, releases and forever discharges the Company, Holdings, Parent, their respective affiliates and each of the foregoing entities’ respective past and present owners, shareholders, partners, officers, managers, members, employees, directors, attorneys, affiliates, subsidiaries, parent companies, successors and assigns, heirs, executors, and administrators (hereinafter referred to collectively as the “Company Parties”) of and from any and all actions and causes of action, suits, debts, liabilities, claims, damages, and demands whatsoever in law or in equity, which Executive ever had, now has, or which Executive or Executive’s heirs, executors or administrators may have, by reason of anything whatsoever, arising from or relating in any way to Executive’s employment or the termination of Executive’s employment, or any other act or omission related to any matter occurring or existing on or prior to the time that Executive signs this Agreement, whether known or unknown, including any claims which have been asserted, could have been asserted or could be asserted now or in the future.
(b)    Executive acknowledges and agrees that the release of claims described in Section 4(a) includes any claims under any federal, state or local laws prohibiting employment discrimination (including (each as may have been amended) Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967 (“ADEA”), the Americans With Disabilities Act, the Virginia Human Rights Act, the Virginians with Disabilities Act, and the D.C. Human Rights Act); the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); any common law, contract, or tort claims now or hereafter recognized (including any claim for breach of contract (including any claim arising out of or relating to the CIC Severance Plan, except with respect to the payment of the Separation Benefits hereunder), wrongful discharge, emotional distress, wrongful termination, fraud or misrepresentation, or defamation); any public policy; and all claims for attorney’s fees and costs.
(c)    Executive acknowledges and agrees that in no event shall the release of claims described in Section 4(a) include any claim that first arises after Executive signs this Agreement, or any claim to vested benefits under an employee benefit plan that is subject to ERISA (including any rights to benefits under health plans and vested benefits under retirement plans or pension plans). Further, nothing in this Agreement prevents Executive from filing any non-legally waivable claim (including a challenge to the validity of the release of claims under the Age Discrimination in Employment Act of 1967, as amended), and nothing in this Agreement shall be construed to prohibit Executive from engaging in any activity protected by the Sarbanes-Oxley Act, 18 U.S.C. § 1514A, or subject to Section 4(d) below, from filing any charge or claim with the federal Equal Employment Opportunity Commission (the “EEOC”) or any other governmental agency (including without limitation the Virginia Human Rights Commission) or participating in any investigation or proceeding conducted by the EEOC or other governmental agency or cooperating with such agency; however, Executive acknowledges and agrees that Executive is waiving any and all rights to recover any monetary or personal relief as a result of such EEOC or other governmental 

agency proceeding or subsequent legal actions.  Nothing herein waives Executive’s right to receive an award for information provided to a governmental agency.
(d)    Upon the receipt of reasonable notice from the Company (including outside counsel), Executive agrees that, following the Separation Date, Executive will respond and provide information with regard to matters about which Executive has knowledge as a result of Executive’s employment with the Company, and Executive will provide reasonable assistance to the Company and the other Company Parties in defense of any claims that may be made against the Company or the other Company Parties and assist the Company and the other Company Parties in the prosecution of any claims that may be made by the Company or the other Company Parties, to the extent that such claims may relate to the period of Executive’s employment with the Company (collectively, the “Claims”).  Executive agrees to promptly inform the Company if Executive becomes aware of any lawsuits involving Claims that may be filed or threatened against the Company or the other Company Parties.  Executive also agrees to promptly inform the Company (to the extent that Executive is legally permitted to do so) if Executive is asked to assist in any investigation of the Company or and the other Company Parties (or their actions) or another party attempts to obtain information or documents from Executive (other than in connection with any litigation or other proceeding in which Executive is a party-in-opposition) with respect to matters Executive believes in good faith to relate to any investigation of the Company or the other Company Parties, in each case, regardless of whether a lawsuit or other proceeding has then been filed against the Company or the other Company Parties with respect to such investigation, and shall not do so unless legally required.  During the pendency of any litigation or other proceeding involving Claims, Executive shall not communicate with anyone (other than Executive’s attorneys and tax and/or financial advisors) with respect to the facts or subject matter of any pending or potential litigation or regulatory or administrative proceeding involving the Company or any of the other Company Parties without giving prior written notice to the Company or the Company’s counsel.  Executive acknowledges and agrees that if any person, organization or other entity files, charges, claims, sues or causes or permits to be filed, charged or claimed, any civil action, suit or legal proceeding for personal relief (including any action for damages, injunctive, declaratory, monetary or other relief) against the Company or any of the other Company Parties involving any claim that Executive has released herein, Executive will not accept any personal relief in any such action.  Upon presentation of appropriate documentation, the Company shall pay or reimburse Executive for all reasonable out-of-pocket travel, duplicating or telephonic expenses incurred by Executive in complying with this Section 4(d).  
5.    Executive’s ADEA Waiver Acknowledgements.  Executive expressly acknowledges and agrees that, among the matters waived in this Agreement are any and all rights or claims arising under the ADEA.  Pursuant to the Older Workers Benefit Protection Act (“OWBPA”), which contains special provisions and requirements affecting the release of ADEA claims, Executive also expressly acknowledges and agrees that:

(a)    In return for this Agreement, he will receive consideration, i.e., something of value, beyond that which he was already entitled to receive before entering into this Agreement;
(b)    Executive has had sufficient time (and at least 21 days from the receipt of this Agreement) to consider this Agreement before the execution and delivery to the Company;
(c)    If Executive knowingly and voluntarily chooses to do so, he may accept the terms of the Agreement before the twenty-one (21) day consideration period has expired; 
(d)    Executive has been advised, and hereby is advised in writing, to consult an attorney regarding this Agreement before signing;
(e)    Executive acknowledges and agrees that Executive is competent to enter into this Agreement and knowingly and voluntarily does so, understanding it as fully resolving any differences and disputes between Executive and the Company and the other Company Parties; 
(f)    Executive has carefully read this Agreement; and
(g)    Any changes made to this Agreement in accordance with the provisions set forth herein, whether material or immaterial, will not restart the running of the twenty-one (21) day period;
6.    Revocation Right.  Notwithstanding the initial effectiveness of this Agreement, Executive has the right to revoke the delivery (and therefore the effectiveness) of this Agreement within the seven-day period beginning on the day Executive signs this Agreement (such seven-day period being referred to herein as the “Release Revocation Period”). To be effective, such revocation must be in writing signed by Executive and must be received by the Company, care of: General Counsel, Washington Gas Light Company, 1000 Maine Avenue, SW, Suite 700, Washington, D.C. 20024, on or before the last day of the Release Revocation Period. If an effective revocation is delivered in the foregoing manner and timeframe, then the Separation Benefits shall not be paid or provided to Executive pursuant to Section 2(a) of this Agreement, the release of claims set forth in Section 4 shall be of no force or effect and the remainder of this Agreement shall be in full force and effect.  This Agreement shall not become effective until the eighth (8th) day following its execution by Executive.
7.    Affirmation of Restrictive Covenants; Permitted Disclosures.  Executive acknowledges and agrees that he is subject to the restrictions set forth in Article 6 of the CIC Severance Plan, including the Company’s Policy of Post-Employment Restrictions attached as Exhibit 2 thereto (the “Post-Employment Restrictions”), which include certain confidentiality, non-solicitation and non-competition restrictive covenants.  Provided that Executive satisfies the requirements to receive the Separation Benefits set forth in Section 2(a), then, effective as of the Separation Date, Section III.B.2. of the Company’s Policy of Post-Employment Restrictions 

attached as Exhibit 2 to the CIC Severance Plan as it applies to Executive shall be amended and restated so that it reads, in its entirety, as follows: 
2.    Solicitation of Customers.  The solicitation of any customer or prospective customer of WGL Holdings, Inc. and/or Washington Gas Light Company with whom or which the executive had material contact regarding actual or prospective business with WGL Holdings, Inc. and/or Washington Gas Light Company during the preceding year, or for whom or which the executive had direct or indirect responsibility, or about whom or which the executive obtained Confidential Information, in each case as an employee or representative of WGL Holdings, Inc. and/or Washington Gas Light Company, which solicitation is with the intent of soliciting business competitive to that of WGL Holdings, Inc. and/or Washington Gas Light Company or diverting business from WGL Holdings, Inc. and/or Washington Gas Light Company.
Executive expressly acknowledges and agrees that the Post-Employment Restrictions (as amended by this Agreement) are enforceable in all respects and promises to abide by their terms. Notwithstanding the foregoing, nothing in this Agreement or the Post-Employment Restrictions shall prohibit or restrict Executive from lawfully (a) initiating communications directly with, cooperating with, providing information to, causing information to be provided to, or otherwise assisting in an investigation by, any governmental authority regarding a possible violation of any law; (b) responding to any inquiry or legal process directed to Executive from any such governmental authority; (c) testifying, participating or otherwise assisting in an action or proceeding by any such governmental authority relating to a possible violation of law; or (d) making any other disclosures that are protected under the whistleblower provisions of any applicable law. Additionally, pursuant to the federal Defend Trade Secrets Act of 2016, Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (i) is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; (ii) is made to Executive’s attorney in relation to a lawsuit for retaliation against Executive for reporting a suspected violation of law; or (iii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Nothing in this Agreement requires Executive to obtain prior authorization from the Company before engaging in any conduct described in this paragraph, or to notify the Company that Executive has engaged in any such conduct.
8.    Entire Agreement.  This Agreement constitutes the entire agreement between the parties with respect to the matters herein provided. No modifications or waiver of any provision hereof shall be effective unless in writing and signed by each party.
9.    Governing Law and Jurisdiction.  The validity, interpretation, construction, performance and enforcement of this Agreement shall be governed by the laws of the Commonwealth of Virginia to the extent not superseded by Federal law. With respect to any claim or dispute related to or arising under this Agreement, the parties hereby consent to the exclusive jurisdiction, forum and venue of the state and federal courts (as applicable) located in the Commonwealth of Virginia; provided, however, that Executive may not bring any action with respect to any claim or dispute under this Agreement in any court without first exhausting the claims procedures described in Article 

10 of the CIC Severance Plan. Executive irrevocably waives Executive's right to object to or challenge the above selected forum on the basis of inconvenience or unfairness.
10.    Assignment.  The Company has the right to assign this Agreement, but Executive does not. This Agreement inures to the benefit of the successors and assigns of the Company, who are intended third party beneficiaries of this Agreement, and any such successors and assigns shall assume the obligations under this Agreement and expressly agree to perform the obligations under this Agreement, consistent with Section 11.3 of the CIC Severance Plan.
11.    Headings; Interpretation.  Titles and headings to Sections hereof are for the purpose of reference only and shall in no way limit, define or otherwise affect the provisions hereof. Unless the context requires otherwise, all references herein to an agreement, instrument or other document shall be deemed to refer to such agreement, instrument or other document as amended, supplemented, modified and restated from time to time to the extent permitted by the provisions thereof. The word “or” as used herein is not exclusive and is deemed to have the meaning “and/or.” The words “herein”, “hereof”, “hereunder” and other compounds of the word “here” shall refer to the entire Agreement, including exhibits, and not to any particular provision hereof. The use herein of the word “including” following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation”, “but not limited to”, or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against any party hereto, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by each of the parties hereto and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of the parties.
12.    Third Party Beneficiaries.  Each Company Party that is not a signatory hereto shall be a third-party beneficiary of Executive’s covenants, warranties, representations, and release of claims set forth in this Agreement and entitled to enforce such covenants, warranties, representations, and release of claims as if it, he or she was a party hereto.
13.    No Waiver.  No failure by any party at any time to give notice of any breach by the other party of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
14.    Severability and Modification.  To the extent permitted by applicable law, the parties agree that any term or provision of this Agreement (or part thereof) that renders such term or provision (or part thereof) or any other term or provision (or part thereof) of this Agreement invalid or unenforceable in any respect shall be severable and shall be modified or severed to the extent necessary to avoid rendering such term or provision (or part thereof) invalid or unenforceable, and such severance or modification shall be accomplished in the manner that most nearly preserves the benefit of the parties’ bargain hereunder.

15.    Withholding of Taxes and Other Deductions.  The Company may withhold from any payments made pursuant to this Agreement all federal, state, local, and other taxes and withholdings as may be required pursuant to any law or governmental regulation or ruling.
16.    Notices.  The notice provisions set forth in Section 11.2 of the CIC Severance Plan shall apply to this Agreement as fully as though set forth herein.
17.    Counterparts.  This Agreement may be executed in one or more counterparts (including electronic mail in portable document format (.pdf), facsimile or by any other electronic means intended to preserve the original graphic and pictorial appearance of the document), each of which shall be deemed to be an original, but all of which together will constitute one and the same agreement. Delivery of a copy of this Agreement bearing an original signature by facsimile transmission or by electronic mail shall have the same effect as physical delivery of the paper document bearing the original signature.
18.    Section 409A.  This Agreement and the payments provided hereunder are intended to be compliant with, or exempt from, the requirements of Section 409A of the Code and the Treasury regulations and interpretive guidance issued thereunder, and this Agreement shall be construed and administered in accordance with such intent.  Section 11.14 of the CIC Severance Plan is incorporated herein by reference in its entirety and shall apply to this Agreement as fully as though set forth herein. 
19.    Mutual Non-Disparagement.  Executive agrees that he shall not disparage or cause or encourage anyone else to disparage any of the Company Parties or any Company employees.  The Company shall instruct its executive officers and directors not to disparage Executive.
[Remainder of Page Intentionally Blank; 
Signature Page Follows]

IN WITNESS WHEREOF, the parties have executed this Agreement with the intent to be legally bound.
	
				
	MARCELLOUS P. FRYE, JR.

	 
	 
	 

	 
	 
	 

	/s/ Marcellous P. Frye, Jr.

	Marcellous P. Frye, Jr.

	Date:
	May 27, 2019

	 
	 
	 

	 
	 
	 

	WASHINGTON GAS LIGHT COMPANY

	 
	 
	 

	 
	 
	 

	By:
	/s/ John F. Stark

	Name:
	John F. Stark
	 

	Title:
	Chair, Washington Gas Light Company

	Date:
	May 30, 2019Exhibit 10.1

 

 

FLUIDIGM CORPORATION

 

2011 EQUITY INCENTIVE PLAN

 

(as amended and restated effective June 3, 2019)

 

1.                  
Purposes of the Plan. The purposes of this Plan are (a) to attract and retain the best available personnel for positions
of substantial responsibility, (b) to provide additional incentive to Employees, Directors and Consultants, and (c) to promote
the success of the Company’s business. The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options,
Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Units and Performance Shares.

 

2.                  
Definitions. As used herein, the following definitions will apply:

 

(a)               
“Administrator” means the Board or any of its Committees as may administer the Plan in accordance with Section 4
hereof.

 

(b)               
“Applicable Laws” means the requirements relating to the administration of equity-based awards under U.S. state
corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock
is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under
the Plan.

 

(c)               
“Award” means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted
Stock, Restricted Stock Units, Performance Units or Performance Shares.

 

(d)               
“Award Agreement” means the written or electronic agreement setting forth the terms and provisions applicable
to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan.

 

(e)               
“Board” means the Board of Directors of the Company.

 

(f)                
“Change in Control” means the occurrence of any of the following events:

 

(i)            A change in the ownership of the Company which occurs on
the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the
stock of the Company that, together with the stock held by such Person, constitutes more than 50% of the total voting power of
the stock of the Company; provided, however, that for purposes of this subsection (i), the acquisition of additional stock by any
one Person, who is considered to own more than 50% of the total voting power of the stock of the Company will not be considered
a Change in Control; or

 

(ii)            A change in the effective control of the Company which occurs
on the date that a majority of members of the Board is replaced during any twelve (12) month period by Directors whose appointment
or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. For purposes
of this clause (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control
of the Company by the same Person will not be considered a Change in Control; or

 

(iii)            A change in the ownership of a substantial portion of the
Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending
on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market
value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately prior to such
acquisition or acquisitions; provided, however, that for purposes of this subsection (iii), the following will not constitute
a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled
by the Company’s stockholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder
of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock, (2) an
entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person,
that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of the Company,
or (4) an entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a Person described
in this subsection (iii)(B)(3). For purposes of this subsection (iii), gross fair market value means the value of the
assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with
such assets.

 

     

     

    

For purposes of this definition, persons will
be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or
acquisition of stock, or similar business transaction with the Company.

 

Notwithstanding the foregoing, a transaction
will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Code
Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and Internal
Revenue Service guidance that has been promulgated or may be promulgated thereunder from time to time.

 

Further and for the avoidance of doubt, a transaction
will not constitute a Change in Control if: (i) its sole purpose is to change the state of the Company’s incorporation,
or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons
who held the Company’s securities immediately before such transaction.

 

(g)               
“Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation
thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision
of any future legislation or regulation amending, supplementing or superseding such section or regulation.

 

(h)               
“Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the
Board in accordance with Section 4 hereof.

 

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

 

(j)                
“Company” means Fluidigm Corporation, a Delaware corporation, or any successor thereto.

 

(k)               
“Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render
services to such entity.

 

(l)                
“Director” means a member of the Board.

 

(m)             
“Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code, provided
that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent
and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time
to time.

 

    -2-

     

    

(n)               
“Employee” means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary
of the Company. Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute
“employment” by the Company.

 

(o)               
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(p)               
“Exchange Program” means a program under which (i) outstanding Awards are surrendered or cancelled in exchange
for Awards of the same type (which may have higher or lower exercise prices and different terms), Awards of a different type, and/or
cash, (ii) Participants would have the opportunity to transfer any outstanding Awards to a financial institution or other
person or entity selected by the Administrator, and/or (iii) the exercise price of an outstanding Award is increased or reduced.
The Administrator will determine the terms and conditions of any Exchange Program in its sole discretion.

 

(q)               
“Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

 

(i)            If the Common Stock is listed on any established stock exchange
or a national market system, including without limitation the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq
Capital Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing
bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable. If there are no trades on such date, the closing price on
the latest preceding business day upon which trades occurred shall be the Fair Market Value.

 

(ii)            If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of a Share will be the mean between the high bid and
low asked prices for the Common Stock on the day of determination, as reported in The Wall Street Journal or such other
source as the Administrator deems reliable.

 

(iii)            In the absence of an established market for the Common
Stock, the Fair Market Value will be determined in good faith by the Administrator.

 

(r)                
“Fiscal Year” means the fiscal year of the Company.

 

(s)                
“Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning
of Section 422 of the Code and the regulations promulgated thereunder.

 

(t)                
“Inside Director” means a Director who is an Employee.

 

(u)               
“Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to qualify
as an Incentive Stock Option.

 

(v)               
“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange
Act and the rules and regulations promulgated thereunder.

 

(w)             
“Option” means a stock option granted pursuant to the Plan.

 

(x)               
“Outside Director” means a Director who is not an Employee.

 

(y)               
“Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e)
of the Code.

 

    -3-

     

    

(z)               
“Participant” means the holder of an outstanding Award.

 

(aa)            
“Performance Share” means an Award denominated in Shares which may be earned in whole or in part upon attainment
of performance goals or other vesting criteria as the Administrator may determine pursuant to Section 10.

 

(bb)           
“Performance Unit” means an Award which may be earned in whole or in part upon attainment of performance goals
or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities or a
combination of the foregoing pursuant to Section 10.

 

(cc)            
“Period of Restriction” means the period during which the transfer of Shares of Restricted Stock are subject
to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the
passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.

 

(dd)           
“Plan” means this 2011 Equity Incentive Plan, as amended and restated at the 2019 Annual Meeting of Stockholders.

 

(ee)            
“Restatement Effective Date” means the date of the Company’s 2019 Annual Meeting of Stockholders.

 

(ff)              
“Restricted Stock” means Shares issued pursuant to a Restricted Stock award under Section 7 of the Plan,
or issued pursuant to the early exercise of an Option.

 

(gg)           
“Restricted Stock Unit” means a bookkeeping entry representing an amount equal to the Fair Market Value of one
Share, granted pursuant to Section 8. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.

 

(hh)           
“Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion
is being exercised with respect to the Plan.

 

(ii)              
“Section 16(b)” means Section 16(b) of the Exchange Act.

 

(jj)              
“Service Provider” means an Employee, Director or Consultant.

 

(kk)           
“Share” means a share of the Common Stock, as adjusted in accordance with Section 13 of the Plan.

 

(ll)              
“Stock Appreciation Right” means an Award, granted alone or in connection with an Option, that pursuant to Section 9
is designated as a Stock Appreciation Right.

 

(mm)       
“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in
Section 424(f) of the Code.

 

3.                  
Stock Subject to the Plan.

 

(a)               
Stock Subject to the Plan. Subject to the provisions of Section 13 of the Plan, the maximum aggregate number of Shares
that may be issued under the Plan as of the Restatement Effective Date is (i) 4,950,644 Shares, plus (ii) any Shares that, as
of immediately prior to the Restatement Effective Date, were available for grant under the pre-existing version of the 2011 Equity
Incentive Plan (prior to this amendment and restatement) (the “Existing Plan”), with the maximum number of
Shares to be added to the Plan pursuant to clause (ii) equal to 1,396,356 Shares. The Shares may be authorized, but unissued,
or reacquired Common Stock.

 

    -4-

     

    

(b)               
Lapsed Awards. If an Award expires or becomes unexercisable without having been exercised in full or, with respect to Restricted
Stock, Restricted Stock Units, Performance Units or Performance Shares, is forfeited to or repurchased by the Company due to failure
to vest, the unpurchased Shares (or for Awards other than Options or Stock Appreciation Rights the forfeited or repurchased Shares)
which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated). With
respect to Stock Appreciation Rights, only Shares actually issued (i.e., the net Shares issued) pursuant to a Stock Appreciation
Right will cease to be available under the Plan; all remaining Shares under Stock Appreciation Rights will remain available for
future grant or sale under the Plan (unless the Plan has terminated). Shares that have actually been issued under the Plan under
any Award will not be returned to the Plan and will not become available for future distribution under the Plan; provided, however,
that if Shares issued pursuant to Awards of Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units are
repurchased by the Company or are forfeited to the Company, such Shares will become available for future grant under the Plan.
Shares used to pay the exercise price of an Award or to satisfy the tax withholding obligations related to an Award will become
available for future grant or sale under the Plan. To the extent an Award under the Plan is paid out in cash rather than Shares,
such cash payment will not result in reducing the number of Shares available for issuance under the Plan. Notwithstanding the foregoing
and, subject to adjustment as provided in Section 13, the maximum number of Shares that may be issued upon the exercise of
Incentive Stock Options will equal the aggregate Share number stated in Section 3(a), plus, to the extent allowable under
Section 422 of the Code and the Treasury Regulations promulgated thereunder, any Shares that become available for issuance
under the Plan pursuant to Sections 3(b) and 3(c).

 

(c)               
Share Reserve. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares
as will be sufficient to satisfy the requirements of the Plan.

 

4.                  
Administration of the Plan.

 

(a)               
Procedure.

 

(i)            Multiple Administrative Bodies. Different Committees
may administer the Plan with respect to different groups of Service Providers.

 

(ii)            Rule 16b-3. To the extent desirable to qualify transactions
hereunder as exempt under Rule 16b-3, such transactions will be structured to satisfy the requirements for exemption under Rule
16b-3.

 

(iii)            Other Administration. Other than as provided above,
the Plan will be administered by (A) the Board or (B) a Committee constituted to satisfy Applicable Laws.

 

(b)               
Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific
duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:

 

(i)            to determine the Fair Market Value;

 

(ii)            to select the Service Providers to whom Awards may be granted
hereunder;

 

    -5-

     

    

(iii)            to determine the number of Shares to be covered by each
Award granted hereunder;

 

(iv)            to approve forms of Award Agreements for use under the Plan;

 

(v)            to determine the terms and conditions, not inconsistent with
the terms of the Plan, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise
price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or
waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based
in each case on such factors as the Administrator will determine;

 

(vi)            to construe and interpret the terms of the Plan and Awards
granted pursuant to the Plan;

 

(vii)            to prescribe, amend and rescind rules and regulations relating
to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable foreign
laws or for qualifying for favorable tax treatment under applicable foreign laws;

 

(viii)            to modify or amend each Award (subject to Section 18
of the Plan), including but not limited to the discretionary authority to extend the post-termination exercisability period of
Awards and to extend the maximum term of an Option (subject to Section 6(b) of the Plan);

 

(ix)            to allow Participants to satisfy tax withholding obligations
in such manner as prescribed in Section 14 of the Plan;

 

(x)            to authorize any person to execute on behalf of the Company
any instrument required to effect the grant of an Award previously granted by the Administrator;

 

(xi)            to allow a Participant to defer the receipt of the payment
of cash or the delivery of Shares that would otherwise be due to such Participant under an Award; and

 

(xii)            to make all other determinations deemed necessary or advisable
for administering the Plan.

 

(c)               
Effect of Administrator’s Decision. The decisions, determinations, and interpretations of the Administrator will be
final and binding on all Participants and any other holders of Awards.

 

(d)               
Limitations on Administrative Authority. Notwithstanding anything herein to the contrary,
the Administrator shall be limited as follows:

 

(i)            Exchange Program.
The Administrator may not implement an Exchange Program.

 

(ii)            No Dividends or Dividend Equivalents Paid on Unvested
Awards. No dividends or dividend equivalents shall be paid on any unvested Awards. Any dividends or dividend equivalents may
be declared or accrue on unvested Awards, but shall not be paid until the vesting of such Awards.

 

(iii)            Outside Director Limitations. No Outside Director
may be paid, issued or granted, in any Fiscal Year, Awards with an aggregate value greater than $400,000 (with the value of each
Award based on its grant date fair value (determined in accordance with U.S. generally accepted accounting principles)), except
that such limit will be increased to $500,000 in the Fiscal Year of his or her initial service as an Outside Director. Any Awards
granted to an individual for his or her services as an Employee, or for his or her services as a Consultant (other than as an Outside
Director), will not count for purposes of the limitation under this Section 4(d)(iii).

 

    -6-

     

    

5.                  
Eligibility. Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance
Shares and Performance Units may be granted to Service Providers. Incentive Stock Options may be granted only to Employees.

 

6.                  
Stock Options.

 

(a)               
Limitations. Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory
Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with
respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options will be treated
as Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options will be taken into account in the
order in which they were granted. The Fair Market Value of the Shares will be determined as of the time the Option with respect
to such Shares is granted.

 

(b)               
Term of Option. The term of each Option will be stated in the Award Agreement. In the case of any Option (whether Incentive
Stock Option or Nonstatutory Stock Option), the maximum term will be ten (10) years from the date of grant or such shorter term
as may be provided in the Award Agreement. Moreover, in the case of an Incentive Stock Option granted to a Participant who, at
the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5)
years from the date of grant or such shorter term as may be provided in the Award Agreement.

 

(c)               
Option Exercise Price and Consideration.

 

(i)            Exercise Price. The per share exercise price for the
Shares to be issued pursuant to exercise of an Option will be determined by the Administrator, subject to the following:

 

(1)               
In the case of an Incentive Stock Option

 

a)                  
granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%)
of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no
less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant.

 

b)                 
granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price will
be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

 

(2)               
In the case of a Nonstatutory Stock Option, the per Share exercise price will be no less than one hundred percent (100%) of the
Fair Market Value per Share on the date of grant.

 

(3)               
Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than one hundred percent (100%) of
the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Section 424(a)
of the Code.

 

    -7-

     

    

(ii)            Waiting Period and Exercise Dates. At the time an
Option is granted, the Administrator will fix the period within which the Option may be exercised and will determine any conditions
that must be satisfied before the Option may be exercised.

 

(iii)            Form of Consideration. The Administrator will determine
the acceptable form of consideration for exercising an Option, including the method of payment. In the case of an Incentive Stock
Option, the Administrator will determine the acceptable form of consideration at the time of grant. Such consideration may consist
entirely of: (1) cash; (2) check; (3) other Shares, provided that such Shares have a Fair Market Value on the date of surrender
equal to the aggregate exercise price of the Shares as to which such Option will be exercised and provided that accepting such
Shares will not result in any adverse accounting consequences to the Company, as the Administrator may determine in its sole discretion;
(4) consideration received by the Company under a broker-assisted (or other) cashless exercise program (whether through a broker
or otherwise) implemented by the Company in connection with the Plan; (5) by net exercise; (6) such other consideration and method
of payment for the issuance of Shares to the extent permitted by Applicable Laws; or (7) any combination of the foregoing methods
of payment.

 

(d)               
Exercise of Option.

 

(i)            Procedure for Exercise; Rights as a Stockholder. Any
Option granted hereunder will be exercisable according to the terms of the Plan and at such times and under such conditions as
determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share.

 

An Option will be deemed exercised when the
Company receives: (i) notice of exercise (in such form as the Administrator may specify from time to time) from the person entitled
to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable
withholding taxes). Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted
by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be issued in the name of the Participant or,
if requested by the Participant, in the name of the Participant and his or her spouse. Until the Shares are issued (as evidenced
by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or
receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to an Option, notwithstanding
the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised.
No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued,
except as provided in Section 13 of the Plan.

 

Exercising an Option in any manner will decrease
the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares
as to which the Option is exercised.

 

(ii)            Termination of Relationship as a Service Provider.
If a Participant ceases to be a Service Provider, other than upon the Participant’s termination as the result of the Participant’s
death or Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement
to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of such
Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain
exercisable for three (3) months following the Participant’s termination. Unless otherwise provided by the Administrator,
if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option will revert to the Plan. If after termination the Participant does not exercise his or her Option within
the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

 

    -8-

     

    

(iii)            Disability of Participant. If a Participant ceases
to be a Service Provider as a result of the Participant’s Disability, the Participant may exercise his or her Option within
such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination (but in
no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified
time in the Award Agreement, the Option will remain exercisable for twelve (12) months following the Participant’s termination.
Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire
Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant
does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such
Option will revert to the Plan.

 

(iv)            Death of Participant. If a Participant dies while
a Service Provider, the Option may be exercised following the Participant’s death within such period of time as is specified
in the Award Agreement to the extent that the Option is vested on the date of death (but in no event may the option be exercised
later than the expiration of the term of such Option as set forth in the Award Agreement), by the Participant’s designated
beneficiary, provided such beneficiary has been designated prior to Participant’s death in a form acceptable to the Administrator.
If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative
of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will
or in accordance with the laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option
will remain exercisable for twelve (12) months following Participant’s death. Unless otherwise provided by the Administrator,
if at the time of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of
the Option will immediately revert to the Plan. If the Option is not so exercised within the time specified herein, the Option
will terminate, and the Shares covered by such Option will revert to the Plan.

 

7.                  
Restricted Stock.

 

(a)               
Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time
to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion,
will determine.

 

(b)               
Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the
Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion,
will determine. Unless the Administrator determines otherwise, the Company as escrow agent will hold Shares of Restricted Stock
until the restrictions on such Shares have lapsed.

 

(c)               
Transferability. Except as provided in this Section 7 or in the Award Agreement, Shares of Restricted Stock may not
be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction.

 

(d)               
Other Restrictions. The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted
Stock as it may deem advisable or appropriate.

 

(e)               
Removal of Restrictions. Except as otherwise provided in this Section 7, Shares of Restricted Stock covered by each
Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period
of Restriction or at such other time as the Administrator may determine. The Administrator, in its discretion, may accelerate the
time at which any restrictions will lapse or be removed.

 

    -9-

     

    

(f)                
Voting Rights. During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder
may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.

 

(g)               
Dividends and Other Distributions. During the Period of Restriction, Service Providers holding Shares of Restricted Stock
will be entitled to receive all dividends and other distributions paid with respect to such Shares, unless the Administrator provides
otherwise, subject to Section 4(d)(ii). If any such dividends or distributions are paid in Shares, the Shares will be subject to
the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid.

 

(h)               
Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which restrictions
have not lapsed will revert to the Company and again will become available for grant under the Plan.

 

8.                  
Restricted Stock Units.

 

(a)               
Grant. Restricted Stock Units may be granted at any time and from time to time as determined by the Administrator. After
the Administrator determines that it will grant Restricted Stock Units under the Plan, it will advise the Participant in an Award
Agreement of the terms, conditions, and restrictions related to the grant, including the number of Restricted Stock Units.

 

(b)               
Vesting Criteria and Other Terms. The Administrator will set vesting criteria in its discretion, which, depending on the
extent to which the criteria are met, will determine the number of Restricted Stock Units that will be paid out to the Participant.
The Administrator may set vesting criteria based upon the achievement of Company-wide, business unit, or individual goals (including,
but not limited to, continued employment), or any other basis determined by the Administrator in its discretion.

 

(c)               
Earning Restricted Stock Units. Upon meeting the applicable vesting criteria, the Participant will be entitled to receive
a payout as determined by the Administrator. Notwithstanding the foregoing, at any time after the grant of Restricted Stock Units,
the Administrator, in its sole discretion, may reduce or waive any vesting criteria that must be met to receive a payout.

 

(d)               
Form and Timing of Payment. Payment of earned Restricted Stock Units will be made as soon as practicable after the date(s)
determined by the Administrator and set forth in the Award Agreement. The Administrator, in its sole discretion, may only settle
earned Restricted Stock Units in cash, Shares, or a combination of both.

 

(e)               
Cancellation. On the date set forth in the Award Agreement, all unearned Restricted Stock Units will be forfeited to the
Company.

 

9.                  
Stock Appreciation Rights.

 

(a)               
Grant of Stock Appreciation Rights. Subject to the terms and conditions of the Plan, a Stock Appreciation Right may be granted
to Service Providers at any time and from time to time as will be determined by the Administrator, in its sole discretion.

 

(b)               
Number of Shares. The Administrator will have complete discretion to determine the number of Stock Appreciation Rights granted
to any Service Provider.

 

    -10-

     

    

(c)               
Exercise Price and Other Terms. The per share exercise price for the Shares to be issued pursuant to exercise of a Stock
Appreciation Right will be determined by the Administrator and will be no less than one hundred percent (100%) of the Fair Market
Value per Share on the date of grant. Otherwise, subject to Section 6(a) of the Plan, the Administrator, subject to the provisions
of the Plan, will have complete discretion to determine the terms and conditions of Stock Appreciation Rights granted under the
Plan; provided, that the maximum term of any Stock Appreciation Right will be ten (10) years from the date of grant.

 

(d)               
Stock Appreciation Right Agreement. Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will
specify the exercise price, the term of the Stock Appreciation Right, the conditions of exercise, and such other terms and conditions
as the Administrator, in its sole discretion, will determine.

 

(e)               
Expiration of Stock Appreciation Rights. A Stock Appreciation Right granted under the Plan will expire upon the date determined
by the Administrator, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of
Section 6(b) relating to the maximum term and Section 6(d) relating to exercise also will apply to Stock Appreciation
Rights.

 

(f)                
Payment of Stock Appreciation Right Amount. Upon exercise of a Stock Appreciation Right, a Participant will be entitled
to receive payment from the Company in an amount determined by multiplying (i) the difference between the Fair Market Value of
a Share on the date of exercise over the exercise price times (ii) the number of Shares with respect to which the Stock Appreciation
Right is exercised. At the discretion of the Administrator, the payment upon exercise of a Stock Appreciation Right may be made
in cash, in Shares of equivalent value, or in some combination thereof.

 

10.              
Performance Units and Performance Shares.

 

(a)               
Grant of Performance Units/Shares. Performance Units and Performance Shares may be granted to Service Providers at any time
and from time to time, as will be determined by the Administrator, in its sole discretion. The Administrator will have complete
discretion in determining the number of Performance Units and Performance Shares granted to each Participant.

 

(b)               
Value of Performance Units/Shares. Each Performance Unit will have an initial value that is established by the Administrator
on or before the date of grant. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on
the date of grant.

 

(c)               
Performance Objectives and Other Terms. The Administrator will set performance objectives or other vesting provisions (including,
without limitation, continued status as a Service Provider) in its discretion which, depending on the extent to which they are
met, will determine the number or value of Performance Units/Shares that will be paid out to the Service Providers. The time period
during which the performance objectives or other vesting provisions must be met will be called the “Performance Period.”
Each Award of Performance Units/Shares will be evidenced by an Award Agreement that will specify the Performance Period, and such
other terms and conditions as the Administrator, in its sole discretion, will determine. The Administrator may set performance
objectives based upon the achievement of Company-wide, divisional, or individual goals, applicable federal or state securities
laws, or any other basis determined by the Administrator in its discretion.

 

(d)               
Earning of Performance Units/Shares. After the applicable Performance Period has ended, the holder of Performance Units/Shares
will be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the Performance Period,
to be determined as a function of the extent to which the corresponding performance objectives or other vesting provisions have
been achieved. After the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce or waive any
performance objectives or other vesting provisions for such Performance Unit/Share.

 

    -11-

     

    

(e)               
Form and Timing of Payment of Performance Units/Shares. Payment of earned Performance Units/Shares will be made as soon
as practicable after the expiration of the applicable Performance Period. The Administrator, in its sole discretion, may pay earned
Performance Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned
Performance Units/Shares at the close of the applicable Performance Period) or in a combination thereof.

 

(f)                
Cancellation of Performance Units/Shares. On the date set forth in the Award Agreement, all unearned or unvested Performance
Units/Shares will be forfeited to the Company, and again will be available for grant under the Plan.

 

11.              
Leaves of Absence/Transfers Between Locations. Unless the Administrator provides otherwise, vesting of Awards granted hereunder
will be suspended during any unpaid leave of absence. A Participant will not cease to be an Employee in the case of (i) any
leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent,
or any Subsidiary. For purposes of Incentive Stock Options, no such leave may exceed three (3) months, unless reemployment upon
expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by
the Company is not so guaranteed, then six (6) months following the first day of such leave any Incentive Stock Option held by
the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock
Option.

 

12.              
Transferability of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, such
Award will contain such additional terms and conditions as the Administrator deems appropriate; provided that no Award shall be
transferred for value or consideration.

 

13.              
Adjustments; Dissolution or Liquidation; Merger or Change in Control.

 

(a)               
Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities,
or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of
the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential
benefits intended to be made available under the Plan, will adjust the number and class of Shares that may be delivered under the
Plan and/or the number, class, and price of Shares covered by each outstanding Award, and the numerical Share limits in Section 3
of the Plan.

 

(b)               
Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator will
notify each Participant as soon as practicable prior to the effective date of such proposed transaction. To the extent it has not
been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.

 

(c)               
Change in Control. In the event of a merger or Change in Control, each outstanding Award will be treated in accordance with
this Section 13(c) or as provided in an Award Agreement, including, without limitation, that each Award be assumed or an equivalent
option or right substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. The Administrator
will not be required to treat all Awards similarly in the transaction.

 

    -12-

     

    

In the event that the successor corporation
does not assume or substitute for the Award, the Participant will fully vest in and have the right to exercise all of his or her
outstanding Options and Stock Appreciation Rights, including Shares as to which such Awards would not otherwise be vested or exercisable,
all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with performance-based
vesting, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels
and all other terms and conditions met. In addition, if an Option or Stock Appreciation Right is not assumed or substituted in
the event of a Change in Control, the Administrator will notify the Participant in writing or electronically that the Option or
Stock Appreciation Right will be exercisable for a period of time determined by the Administrator in its sole discretion, and the
Option or Stock Appreciation Right will terminate upon the expiration of such period.

 

For the purposes of this subsection (c), an
Award will be considered assumed if, following the Change in Control, the Award confers the right to purchase or receive, for each
Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, or other securities
or property) received in the Change in Control by holders of Common Stock for each Share held on the effective date of the transaction
(and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received in the Change in Control is not solely common stock of the successor
corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration
to be received upon the exercise of an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, Performance
Unit or Performance Share, for each Share subject to such Award, to be solely common stock of the successor corporation or its
Parent equal in fair market value to the per share consideration received by holders of Common Stock in the Change in Control.

 

Notwithstanding anything in this Section 13(c)
to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be
considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent;
provided, however, a modification to such performance goals only to reflect the successor corporation’s post-Change in Control
corporate structure will not be deemed to invalidate an otherwise valid Award assumption.

 

(d)               
Outside Director Awards. With respect to Awards granted to an Outside Director that are assumed or substituted for, if on
the date of or following such assumption or substitution the Participant’s status as a Director or a director of the successor
corporation, as applicable, is terminated other than upon a voluntary resignation by the Participant (unless such resignation is
at the request of the acquirer), then the Participant will fully vest in and have the right to exercise Options and/or Stock Appreciation
Rights as to all of the Shares underlying such Award, including those Shares which would not otherwise be vested or exercisable,
all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Performance Units and Performance
Shares, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels
and all other terms and conditions met.

 

14.              
Tax.

 

(a)               
Withholding Requirements. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company
will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient
to satisfy federal, state, local, foreign or other taxes (including the Participant’s FICA obligation) required to be withheld
with respect to such Award (or exercise thereof).

 

    -13-

     

    

(b)               
Withholding Arrangements. The Administrator, in its sole discretion and pursuant to such procedures as it may specify from
time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by (without limitation)
(a) paying cash, (b) electing to have the Company withhold otherwise deliverable cash or Shares having a fair market value not
in excess of the maximum statutory amount required to be withheld, or (c) delivering to the Company already-owned shares having
a fair market value not in excess of the maximum statutory amount required to be withheld. the fair market value of the shares
to be withheld or delivered will be determined as of the date that the taxes are required to be withheld.

 

(c)               
Compliance With Code Section 409A. Awards will be designed and operated in such a manner that they are either exempt
from the application of, or comply with, the requirements of Code Section 409A such that the grant, payment, settlement or deferral
will not be subject to the additional tax or interest applicable under Code Section 409A, except as otherwise determined in the
sole discretion of the Administrator. The Plan and each Award Agreement under the Plan is intended to meet the requirements of
Code Section 409A and will be construed and interpreted in accordance with such intent, except as otherwise determined in the sole
discretion of the Administrator. To the extent that an Award or payment, or the settlement or deferral thereof, is subject to Code
Section 409A the Award will be granted, paid, settled or deferred in a manner that will meet the requirements of Code Section 409A,
such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code
Section 409A.

 

15.              
No Effect on Employment or Service. Neither the Plan nor any Award will confer upon a Participant any right with respect
to continuing the Participant’s relationship as a Service Provider with the Company, nor will they interfere in any way with
the Participant’s right or the Company’s right to terminate such relationship at any time, with or without cause, to
the extent permitted by Applicable Laws.

 

16.              
Date of Grant. The date of grant of an Award will be, for all purposes, the date on which the Administrator makes the determination
granting such Award, or such other later date as is determined by the Administrator. Notice of the determination will be provided
to each Participant within a reasonable time after the date of such grant.

 

17.              
Term of Plan. Subject to Section 22 of the Plan, the Plan will become effective upon the Restatement Effective Date.
It will continue in effect for a term of ten (10) years from the date adopted by the Board, unless terminated earlier under Section 18
of the Plan.

 

18.              
Amendment and Termination of the Plan.

 

(a)               
Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan.

 

(b)               
Stockholder Approval. The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable
to comply with Applicable Laws.

 

(c)               
Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan will impair the rights
of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in
writing and signed by the Participant and the Company. Termination of the Plan will not affect the Administrator’s ability
to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

 

    -14-

     

    

19.              
Conditions Upon Issuance of Shares.

 

(a)               
Legal Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the
issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for
the Company with respect to such compliance.

 

(b)               
Investment Representations. As a condition to the exercise of an Award, the Company may require the person exercising such
Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without
any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is
required.

 

20.              
Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder,
will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority
will not have been obtained.

 

21.              
Forfeiture Events.

 

(a)               
All Awards under the Plan will be subject to recoupment under the Company’s current
Clawback Policy and 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 Laws. In addition, the Administrator may impose such other clawback,
recovery or recoupment provisions in an Award Agreement as the Administrator determines necessary or appropriate, including but
not limited to a reacquisition right regarding previously acquired Shares or other cash or property. Unless this Section 21(a)
is specifically mentioned and waived in an Award Agreement or other document, no recovery of compensation under a clawback policy
or otherwise will be an event that triggers or contributes to any right of a Participant to resign for “good reason”
or “constructive termination” (or similar term) under any agreement with the Company or a Subsidiary, Parent,
or affiliate of the Company.

 

(b)       The
Administrator may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an
Award will be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition
to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but will not be limited to,
termination of such Participant’s status as Service Provider for cause or any specified action or inaction by a Participant,
whether before or after such termination of service, that would constitute cause for termination of such Participant’s status
as a Service Provider.

 

22.              
Stockholder Approval. This amendment and restatement of the Plan is subject to, and contingent upon, stockholder approval
at the 2019 Annual Meeting of Stockholders. Such stockholder approval will be obtained in the manner and to the degree required
under Applicable Laws.

 

 

 

 

 

 

 

-15-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}]]