Document:

Exhibit 10.7

 

 

Identified information
has been excluded from the exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

INDUSTRY EXPRESS 2

 

SPONSORED RESEARCH AGREEMENT

 

This Sponsored Research Agreement (“Agreement”)
is between the University of Georgia Research Foundation, Inc., a Georgia non-profit corporation with principal offices in Athens,
Georgia (“UGARF”), and Sunshine Biopharma, Inc., a Colorado corporation organized under the laws of the State
of Colorado with a principal place of business located at 6500 Trans-Canada Highway, 4th Floor, Pointe-Claire, Quebec, Canada,
H9R 0A5 (“Sponsor”). UGARF and Sponsor each may be referred to individually as a “Party” and/or
collectively as the “Parties.”

 

Sponsor desires to fund research to be performed at the University
of Georgia (“UGA”), a public institution of higher education governed by the Board of Regents of the University System
of Georgia (“Regents”). UGARF is authorized to contract with external sponsors with respect to research projects that
UGARF will then subcontract to UGA for performance. In addition, UGARF is Regents’ assignee of certain intellectual property created
by UGA faculty, staff, and students.

 

NOW, THEREFORE, in consideration of the mutual obligations stated herein,
and for other valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows.

 

 1.           Research Project. UGARF shall complete, or have completed, the research project titled Creation and Testing of [*] Coronavirus PLpro Inhibitors, which is further described in Appendix A (“Project”), by subcontracting performance of the Project to UGA. UGARF, through its subcontractor UGA, shall use reasonable efforts to perform the Project according to the standards customary among U.S. research universities.

 

2.          
Principal Investigator. The “Principal Investigator” is responsible for directing performance of the Project
at UGA. Dr. Scott D. Pegan shall be Principal Investigator. However, if for any reason Dr. Scott D. Pegan becomes unavailable to complete
the Project, then with Sponsor’s prior approval, which approval Sponsor shall not unreasonably withhold, UGARF may replace Dr. Scott
D. Pegan as with another qualified researcher at UGA who will then be the Principal Investigator and direct the Project at UGA.

 

3.          
Term. This Agreement will begin on October 1, 2020 (“Effective Date”) and will end on the earlier of September
30, 2021 or early termination of this Agreement either by mutual agreement of the Parties or pursuant to Article 18 herein (“Term”).

 

4.          
Cost of Research. This Agreement is a FIXED PRICE agreement.

 

4.1.      Research
Budget. Sponsor shall pay UGARF per the budget and payment schedule identified in Appendix B. UGARF shall issue invoices
to Sponsor per Appendix B, and Sponsor shall deliver payment to UGARF in the amount of each invoice within thirty (30)
days of receipt of each invoice or on the date identified as the due date on the invoice, whichever is later.

 

4.2.      License Fee. In addition to the amounts
due to UGARF per Appendix B, Sponsor shall also pay to UGARF an additional fee in the amount of $9,869.96 (“License
Fee”) as consideration for the license and other rights granted to Sponsor under Articles 6, 7, 8, and 9 of this Agreement.
On or about the Effective Date, UGARF shall issue an invoice to Sponsor in the amount of the License Fee, and Sponsor shall deliver full
payment of the License Fee to UGARF within thirty (30) days of Sponsor’s receipt of such invoice or on the date identified
as the due date on the invoice, whichever is later.

 

4.3.      Interest.
Any and all overdue payments under this Agreement will bear interest at the rate of 12% per annum from the date due until paid.

 

 

 

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5.          
Equipment. Except as may be expressly set out herein, Sponsor shall have no ownership, license, or any other right, title, or interest
in or to equipment, supplies, and/or other tangible or intangible materials purchased with funding received by UGARF under this Agreement.

 

6.          
Ownership of Project Intellectual Property. “Project Intellectual Property” means all patentable inventions first
made and reduced to practice in performance of the Project, and all patent, intellectual property, and other legal rights therein under
the laws of any state or country.

 

6.1.      “Sponsor
Intellectual Property” means all Project Intellectual Property invented solely by one or more employees of Sponsor. All right
and title in and to Sponsor Intellectual Property shall be owned by Sponsor and is hereby assigned to Sponsor. Sponsor may, in its sole
discretion and at its sole expense, seek legal protection for any Sponsor Intellectual Property.

 

6.2.      “UGARF
Intellectual Property” means all Project Intellectual Property invented solely by one or more employees and/or students of Regents
at UGA. All right and title in and to UGARF Intellectual Property shall be owned solely by UGARF and is hereby assigned to UGARF.

 

6.3.      “Joint
Intellectual Property” means all Project Intellectual Property invented jointly by one or more employees and/or students of
Regents at UGA and by one or more employees of Sponsor. All right and title in and to Joint Intellectual Property shall be owned
jointly by UGARF and Sponsor. The Parties shall negotiate an intellectual property management agreement to define their respective rights
and obligations regarding legal protection, payment of expenses, licensing, infringement, and enforcement of Joint Intellectual Property.

 

7.          
Disclosure of Project Intellectual Property. Each Party shall disclose all Project Intellectual Property promptly to the other Party
in writing, but no later than thirty (30) days after the end of the Term. Each Party agrees that it shall not file any patent applications
or other forms of intellectual property protection on any Project Intellectual Property without prior notice to the other Party.

 

8.          
Fixed-Royalty Exclusive License. UGARF shall draft, and the Parties shall execute, one or more fixed-royalty exclusive licenses to
UGARF Intellectual Property and UGARF’s interest in Joint Intellectual Property under materially the same terms contained in the
template license agreement attached at Appendix D (each, a “License Agreement”). After the Parties have executed
a License Agreement to specific UGARF Intellectual Property and/or Joint Intellectual Property, then that License Agreement shall control
with respect to the intellectual property identified therein. Unless and until both Parties have executed a License Agreement to specific
UGARF Intellectual Property and/or Joint Intellectual Property, then the following provisions at Sections 8.1-8.5 shall control with
respect to such UGARF Intellectual Property and/or Joint Intellectual Property.

 

8.1.      UGARF
as Lead in Prosecution and Maintenance. UGARF shall file for, prosecute, and maintain protection for UGARF Intellectual Property and
Joint Intellectual Property, as UGARF may elect. UGARF shall provide Sponsor with copies of all filings, official actions, and pertinent
correspondence pertaining to such activities so as to give Sponsor reasonable opportunities to advise and cooperate with UGARF.

 

8.2.      Sponsor
Election of Rights. Sponsor shall notify UGARF in writing, with sufficient notice so as not to compromise UGARF’s or Sponsor’s
rights, of the countries in which Sponsor wishes patent or other applications to be filed, including but not limited to national phase
filings and registrations in individual countries stemming from regional filings. UGARF shall use reasonable efforts to file for, prosecute,
and maintain protection for any patent and/or other rights among UGARF Intellectual Property and/or Joint Intellectual Property that are
timely requested by Sponsor.

 

8.3.      Patent
Expense Reimbursement. Sponsor shall reimburse UGARF for all of UGARF’s actual expenses incurred in filing for, prosecuting,
and maintaining any and all UGARF Intellectual Property and Joint Intellectual Property (“Patent Expenses”). However,
notwithstanding the foregoing, Sponsor is not required to reimburse UGARF for Patent Expenses incurred with respect to specific UGARF
Intellectual Property rights and UGARF’s interest in specific Joint Intellectual Property rights if Sponsor affirmatively and by
written notice to UGARF declines to license those rights. In that case, effective as of receipt of Sponsor’s notice or upon a later
effective date stated in the notice, the declined rights shall be removed from the scope of any License Agreement, Sponsor shall no longer
have any obligation to reimburse UGARF for associated Patent Expenses thereafter incurred, and UGARF thereafter shall have no obligation
to Sponsor whatsoever with respect to such declined rights.

 

 

 

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8.4.      Invoices
for Patent Expenses. UGARF shall from time to time deliver invoices to Sponsor seeking reimbursement for Patent Expenses under this
Agreement. Sponsor shall pay each invoice within thirty (30) days of its receipt or on the date identified as the due date on the
invoice, whichever is later.

 

8.5.      Failure
to Reimburse Patent Expenses. If Sponsor fails to timely reimburse UGARF for any Patent Expenses per Sections 8.3-8.4, then,
in addition to UGARF’s other remedies and effective as of the missed payment due date, UGARF shall have no further obligation to
prosecute or maintain those rights for which Patent Expense reimbursement was not timely received, Sponsor shall no longer have any obligation
to reimburse UGARF for associated Patent Expenses thereafter incurred, and UGARF thereafter shall have no obligation to Sponsor whatsoever
with respect to such rights.

 

9.          
Work Product. UGARF owns all pre-existing know-how developed by UGARF and/or UGA and utilized in performance of the Project, as well
as all data and results first generated by UGARF and/or UGA in performance of the Project (collectively, “Work Product”);
however, Work Product specifically excludes Project Intellectual Property. Subject to the provisions of Section 18.4, UGARF hereby
grants to Sponsor, for Sponsor’s internal use only, a non-exclusive, perpetual license to use and reproduce, but not transfer to
third parties that Work Product delivered to Sponsor under this Agreement.

 

10.       U.S. Government
Rights. In the event that UGARF is required to grant, and/or has granted, to the U.S. Government any rights in and to Project Intellectual
Property, then the Parties agree that their rights to such Project Intellectual Property are subject to those rights of the U.S. Government
and the provisions of 37 CFR 401, et seq. 

 

11.       No Implied
or Background Rights. No rights or obligations other than those expressly recited herein are granted or may be implied by this Agreement.
Nothing herein constitutes a license or other transfer of rights in or to any intellectual property that is not explicitly the subject
of this Agreement.

 

12.       Confidential
Information. “Confidential Information” means all information embodied in written, electronic, biological, chemical,
or any other tangible or electronic form, which is disclosed or provided under this Agreement by one Party (“Provider”)
to the other Party (“Recipient”) and is marked confidential at time of disclosure. “Confidential Information”
also includes orally disclosed information where Provider alerts Recipient that such information is confidential at the time of initial
disclosure and confirms such by written notice to Recipient within thirty (30) days of initial disclosure. Further, “Confidential
Information” includes, whether or not marked, all Work Product and/or Project Intellectual Property disclosed by a Provider
to a Recipient hereunder.

 

 12.1.   Applicability to Subcontractor. Notwithstanding the foregoing, the Parties acknowledge and agree that UGA, as UGARF’s permitted subcontractor hereunder, may be a Provider of Confidential Information to Sponsor and/or UGARF, and the Parties further acknowledge that UGA and may be a Recipient of Confidential Information from Sponsor and/or UGARF. In any subcontract between UGARF and UGA for the performance of this Agreement, UGARF shall require UGA to adhere to the obligations imposed upon UGARF herein with respect to Confidential Information. Sponsor agrees to protect Confidential Information received by Sponsor from UGA under the terms provided herein for the protection of Confidential Information disclosed to Sponsor by UGARF.

 

12.2.   Limited Exchange.
The Parties agree they will only exchange Confidential Information under this Agreement as necessary for performance of the Project and/or
this Agreement.

 

12.3.   Obligation of Confidentiality
and Limited Use. Except to the extent required by law, during the Term and for a period of five (5) years thereafter, a Recipient
of the Provider’s Confidential Information shall not disclose such Confidential Information to any third party, except to UGA as
permitted herein, without prior written consent of the Provider, and each Recipient shall only use Provider’s Confidential Information
as necessary to perform the Project and/or this Agreement or as otherwise may be expressly permitted by this Agreement.

 

12.4.   Exceptions.
A Recipient shall have no obligations of non-disclosure or limited use under Section 12.3 with respect to any portion of the Provider’s
Confidential Information that:

a.          
Recipient can demonstrate through documentation to have been within Recipient’s legitimate possession prior to the date of disclosure
of such information to Recipient by Provider;

b.          
Recipient can demonstrate through documentation that it independently developed without reference to Confidential Information provided
by Provider to Recipient;

c.          
was in the public domain prior to Provider’s disclosure to Recipient as evidenced by documentation published prior to such disclosure;

d.          
came into the public domain as evidence by published documentation through no fault of Recipient after disclosure to Recipient by Provider;
and/or

e.          
is obtained by Recipient from a third party having legitimate possession of the information and the legal right to disclose it to Recipient
without breach of any contract or duty.

 

 

 

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13.       Publication.
Sponsor acknowledges and agrees that UGARF, UGA, and/or Principal Investigator shall have the sole right to publish or otherwise disclose
the Project protocol and results of the Project, but only to the extent that doing so does not impermissibly disclose Sponsor Confidential
Information hereunder. To avoid loss of patent rights from premature public disclosure, UGARF and UGA shall require Principal Investigator
to deliver to Sponsor all proposed articles, manuscripts, presentations, or any other publication of the Project. Sponsor may review the
proposed publication and shall provide any comments within thirty (30) days of receiving the proposed publication. If Sponsor provides
notice to UGARF within such thirty (30) day period that Sponsor desires to file an application to protect certain identified Project
Intellectual Property related to the proposed publication, then UGARF will require Principal Investigator to delay publication until the
first of the following has occurred: (i) a patent application has been filed on such identified Project Intellectual Property; or (ii)
the Parties agree not to pursue protection for such Project Intellectual Property; or (iii) sixty (60) days have expired after Sponsor’s
notice to UGARF.

 

14.       DISCLAIMER
OF WARRANTIES. PROJECT WILL BE CONDUCTED IN UNIVERSITY FACILITIES AND IS EXPERIMENTAL IN NATURE. WORK PRODUCT, CONFIDENTIAL INFORMATION,
AND/OR PROJECT INTELLECTUAL PROPERTY DELIVERED TO SPONSOR HEREUNDER ARE PROVIDED “AS IS.” UGARF, REGENTS, AND PRINCIPAL INVESTIGATOR
MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, REGARDING ANY WORK PRODUCT, CONFIDENTIAL INFORMATION, AND/OR PROJECT
INTELLECTUAL PROPERTY, AND THEY EACH EXPRESSLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE
RELATED THERETO OR THAT SUCH DO NOT INFRINGE THIRD PARTY RIGHTS. Nothing contained in this Agreement
shall be construed as either a warranty or representation by UGARF, regents, OR PRINCIPAL INVESTIGATOR as to the validity or scope of
ANY PROJECT INTELLECTUAL PROPERTY, OR THAT ANY PATENT OR OTHER INTELLECTUAL PROPERTY WILL ISSUE AMONG PROJECT INTELLECTUAL PROPERTY.

 

15.       LIMITATION
OF LIABILITY. EACH OF UGARF, REGENTS, AND PRINCIPAL INVESTIGATOR ASSUME NO LIABILITY, AND SHALL HAVE NO LIABILITY TO SPONSOR WHATSOEVER,
FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, INCIDENTAL, LOST PROFITS, AND/OR CONSEQUENTIAL DAMAGES (collectively, “DAMAGES”)
OF ANY KIND ARISING OUT OF OR RELATED TO SPONSOR’S USE OF WORK PRODUCT, CONFIDENTIAL INFORMATION, OR PROJECT INTELLECTUAL PROPERTY.
SPONSOR ASSUMES ALL RISK AND LIABILITIES ASSOCIATED WITH ITS USE OF WORK PRODUCT, CONFIDENTIAL INFORMATION, AND PROJECT INTELLECTUAL PROPERTY,
INCLUDING BUT NOT LIMITED THOSE RISKS AND LIABILITIES RELATED TO THE SAFETY, UTILITY, VALUE, MARKETABILITY, OR PERFORMANCE THEREOF. THESE
LIMITATIONS OF LIABILITY IN ARTICLE 15 APPLY EVEN THOUGH UGARF OR ANY ONE OR MORE INDEMNITTES (AS DEFINED IN ARTICLE 16 BELOW)
MAY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH LIABILITY AND/OR RELATED DAMAGES.

 

16.       INDEMNIFICATION.
SPONSOR SHALL INDEMNIFY, PAY FOR THE DEFENSE OF, AND HOLD HARMLESS, AND SHALL ITSELF BRING NO SUIT AGAINST, UGARF, REGENTS, AND/OR PRINCIPAL
INVESTIGATOR (AND/OR ANY AND ALL OF THEIR RESPECTIVE TRUSTEES, DIRECTORS, OFFICERS, FACULTY, STUDENTS, EMPLOYEES, CONSULTANTS, AND AGENTS)
(“COLLECTIVELY “INDEMNITEES”) FROM AND AGAINST ANY AND ALL CLAIMS, LIABILITIES, AND/OR DAMAGES OF ANY KIND ASSERTED
AGAINST ANY ONE OR MORE OF INDEMNITEES BY SPONSOR AND/OR ANY THIRD PARTY ARISING OUT OF OR RELATED TO SPONSOR’S USE OF WORK PRODUCT,
CONFIDENTIAL INFORMATION, AND/OR PROJECT INTELLECTUAL PROPERTY. HOWEVER, SPONSOR SHALL HAVE NO OBLIGATION TO AN INDEMNITEE UNDER THIS
ARTICLE 16 DIRECTLY ARISING OUT OF OR RELATED TO THE NEGLIGENCE OR INTENTIONAL MISCONDUCT, OR BREACH OF THIS AGREEMENT, OF SUCH INDEMNITEE.

 

17.       Insurance.
Sponsor shall obtain and carry liability insurance in an amount commensurate with similarly situated companies, with UGARF and Regents
added as additional insureds with respect to Sponsor’s products, continuing operations, and completed operations coverage if applicable.
During the Term, Sponsor shall give UGARF thirty (30) days’ prior written notice of cancellation of any policy relied upon
by Sponsor to meet its requirements hereunder. Within thirty (30) days of a request by UGARF, Sponsor shall provide UGARF with appropriate
certificates of insurance showing Licensee’s compliance with its obligations under this Article 17.

 

 

 

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18.       Early
Termination.

 

18.1.   Termination for Convenience.
This Agreement may be terminated by Sponsor upon ninety (90) days’ prior written notice to UGARF (“Final Termination
Notice”), in which case termination shall be effective as of the ninetieth (90th) day or upon a later termination date
identified in the notice (“Effective Date of Termination”).

 

18.2.   Termination for Breach.
If a Party materially breaches any material term of this Agreement (“Breaching Party”) and fails to cure such breach
within thirty (30) days after receipt of written notice of such breach by the other Party (“Terminating Party”),
then the Terminating Party may thereafter deliver, at any time during the Term while the noticed breach remains uncured, notice of termination
(“Final Termination Notice”) to the Breaching Party, in which case this Agreement automatically shall terminate as
of the date of the Breaching Party’s receipt of such Final Termination Notice or on a later date identified in such Final Termination
Notice (“Effective Date of Termination”).

 

18.3.   Payment upon Early
Termination. Upon termination of this Agreement pursuant to Section 18.1 or 18.2, Sponsor shall deliver payment to UGARF, within
thirty (30) days of Sponsor’s receipt of one or more invoices from UGARF, for (i) all amounts due and owing up to and including
the Effective Date of Termination per the Budget at Appendix B; (ii) all work actually performed by UGARF and/or UGA but not
otherwise paid under (i) above; and (iii) all non-cancelable obligations incurred by UGARF and/or UGA prior to receipt of the Final Termination
Notice not otherwise paid under (i) above (“Termination Payment”). However, in the event that, as of the Effective
Date of Termination, UGARF has received payment from Sponsor in an amount greater than the Termination Payment, then UGARF shall return
the excess amount to Sponsor.

 

18.4.   Rights and Obligations
Extinguished upon Early Termination. Upon termination of this Agreement by Sponsor under Section 18.1 or by UGARF under Section 18.2,
then as of the Effective Date of Termination (i) Sponsor’s rights to license UGARF Intellectual Property and UGARF’s interest
in Joint Intellectual Property are terminated (though executed License Agreements remain in effect); (ii) Sponsor’s right and license
to Work Product is terminated; and (iii) UGARF’s obligations to conduct the Project, deliver Work Product, and disclose Project
Intellectual Property are terminated.

 

18.5.   Survival. Notwithstanding
termination or expiration of this Agreement for any reason, the following provisions shall survive: Section 4.3 and Articles 5,
6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, and 28; and any cause of action, claim, and/or payment of
a Party accrued prior to termination. However, any rights under any one or more of the above-identified Sections or Articles that are
extinguished pursuant to Sections 8.3, 8.5, or 18.4 do not survive termination.

 

19.       Return
or Destruction of Confidential Information. Upon termination of this Agreement for any reason, each Recipient of Confidential Information
shall destroy all of the Provider’s Confidential Information that Recipient has in its possession or control; or upon timely notice
from the Provider, Recipient shall return such Confidential Information to the Provider at the Provider’s expense. However, each
Recipient may keep one (1) copy of the Provider’s Confidential Information to the extent required by the Recipient’s records
retention policies, but except as required by law Recipient may not use or access any such retained Confidential Information of another
Party for any purpose whatsoever unless or until such retained Confidential Information meets one of the exceptions at Sections 12.4(a)-(e).

 

20.       Integration.
This Agreement and its appendices and attachments embody the entire understanding of the Parties with respect to the matters herein and
supersede all previous communications, either oral or written.

 

21.       Amendment
and Waiver. This Agreement may be amended only by mutual written agreement of the Parties. Without limiting the foregoing, the terms
and conditions of any purchase order that may be associated with the Project or this Agreement do not apply, and the terms stated in this
Agreement shall control regardless of when the purchase order was issued or whether statements on the purchase order indicate otherwise.
The waiver of an obligation hereunder by a Party shall not constitute a waiver of any other obligation, and shall not constitute a permanent
waiver of that obligation.

 

22.       Assignment.
A Party may not assign, or subcontract performance of, this Agreement to any third party without the prior written consent of the other
Party; except UGARF may subcontract performance of this Agreement to UGA under the terms set forth in herein.

 

 

 

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23.       Relationship
of Parties. UGARF’s relationship to Sponsor is that of independent contractor and not agent, joint venturer, or partner.

 

24.       Use of
Names. Neither Party may use the names or marks of the other Party or its subcontractors in publicity without prior written approval
from the owner of the name or mark. Notwithstanding, a Party may use the name of the other Party solely to accurately identify the source
of funding or research.

 

25.       Governing
law. This Agreement is to be governed by and construed under the laws of the state of Georgia without regard to its conflict of law
rules.

 

26.       Export
Controls. Work Product, Project Intellectual Property, and Confidential Information may be subject to U.S. export control laws, sanctions,
and/or embargo requirements. Sponsor shall be solely responsible for complying with such laws and other requirements in its use of any
rights, information, and/or materials obtained under this Agreement. Sponsor understands and agrees that UGARF makes no representations
that an export license may not be required nor that, if required, such an export license will issue with respect to any rights, information,
and/or materials delivered by UGARF and/or UGA to Sponsor under this Agreement. At the time of disclosure to UGARF and/or UGA, Sponsor
shall identify and mark with a legend any information and/or materials subject to U.S. export control laws, sanctions, and/or embargo
requirements before providing such to UGARF or UGA under this Agreement. UGARF and/or UGA may decline to accept any such information or
materials from Sponsor.

 

27.       Severability.
All rights and duties herein are binding only to the extent that they do not violate any laws. If any provision of this Agreement is held
by a court of competent jurisdiction to be invalid, illegal, or unenforceable, it is the intent of the Parties that any such provision
be replaced by a valid provision that implements the commercial purpose of the illegal, invalid, or unenforceable provision. In the event
that any provision essential to the commercial purpose of this Agreement is held to be illegal, invalid, or unenforceable by a court of
competent jurisdiction, all right of appeal has been exhausted, and such essential provision cannot be replaced by a valid provision that
will implement the commercial purpose of this Agreement, then this Agreement and the rights granted herein shall automatically terminate.

 

28.       Force
Majeure. Delays in, or failure of, performance by any Party will not constitute default, or trigger any claim for damages, if and
to the extent such damages are caused by acts of God, strikes, work stoppages, civil disturbances, fires, floods, explosions, riots, war,
rebellion, and/or sabotage.

 

29.       Notices.
All notices to a Party under this Agreement must be delivered in person, by verified email, or via commercial carrier with tracking to
the Administrative Contact identified in Appendix C for such Party, or to such other persons and addresses as may be designated
by such Party as its Administrative Contact by written notice to the other. Notice shall be effective upon receipt.

 

IN WITNESS whereof, the Parties have executed this Agreement by their
authorized representatives on the dates indicated below.

 

 

	University of Georgia	Sunshine Biopharma, Inc.
	Research Foundation, Inc.	 
	 	 
	 	 
	_______________________	_______________________
	Name:     Nicholas Hinson 	Name:Dr. Steve N. Slilaty
	Title:     Contract Manager	Title:Chief Executive Officer
	Date:__________	Date:__________

 

 

 

 

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APPENDIX A – PROJECT

 

 

 

 

 

 

 

 

 

 

 

 

 

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APPENDIX B – BUDGET

 

 

 

 

 

 

 

 

 

 

 

 

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APPENDIX C – CONTACT INFORMATION

 

 

 

 

 

 

 

 

 

 

 

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APPENDIX D – TEMPLATE LICENSE AGREEMENT

 

LICENSE AGREEMENT

 

This License Agreement, effective as of the date last signed below
(“Effective Date”), is between the University of Georgia Research Foundation, Inc., a Georgia non-profit corporation
with principal offices in Athens, Georgia (“UGARF”), and Sunshine Biopharma, Inc., a Colorado corporation organized
under the laws of the State of Colorado with a principal place of business located at 6500 Trans-Canada Highway, 4th Floor,
Pointe-Claire, Quebec, Canada, H9R 0A5 (“Licensee”). UGARF and Licensee each may be referred to individually as a “Party”
and/or collectively as the “Parties.”

 

UGARF holds certain rights to inventions and intellectual property
created in the performance of a Sponsored Research Agreement (“Sponsored Research Agreement”) entered between the Parties
dated October 1, 2020 and related to the performance of the Project entitled “Creation and Testing of Peptide-Based Coronavirus
PLpro Inhibitors.” Per the terms of that Sponsored Research Agreement, Licensee wishes to license the right to use certain of
those inventions and intellectual property rights for commercial purposes, and UGARF grants those rights as set out herein.

 

NOW, THEREFORE, in consideration of the mutual obligations stated herein,
and for other valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows.

 

ARTICLE 1.             
DEFINITIONS

 

1.1.      “Licensed
Field” means all fields of use of any one or more Valid Claims.

 

1.2.      “Licensed
Patent Expenses” means all costs incurred by UGARF with respect to the filing, prosecution, maintenance, and extension of any
one or more Licensed Patents, including all costs incurred by UGARF in connection with the defense of any interference or challenge.

 

1.3.      “Licensed
Patents” means the patent applications and patents listed in Exhibit A, together with any and all substitutions,
extensions, divisionals, continuations, continuations-in-part (to the extent that the claimed subject matter of a continuation-in-part
is disclosed and enabled in the parent patent application and is not, as of the Effective Date, obligated to a third party), foreign counterparts
of such patent applications in the Licensed Territory, and any and all patents that issue on any one or more of those in the Licensed
Territory including reexamined and reissued patents.

 

1.4.      “Licensed
Product” means any product, service, or process in the Licensed Field, the manufacture, use, or sale of which is covered by
any one or more Valid Claims.

 

1.5.      “Licensed
Product Sales” means all cash consideration received by Licensee and by any and all Sublicensees in exchange for the sale or
other transfer of a Licensed Product; but does not include (a) amounts received for shipping product to a purchaser including but
not limited to insurance, packing, and transportation costs or (b) sales taxes collected; and Licensee may subtract from Licensed
Product Sales the amount of any refund or credit actually issued by Licensee or a Sublicensee to a purchaser for the return of Licensed
Product where consideration for the sale of such Licensed Product is, or was previously, included in Licensed Product Sales.

 

1.6.      “Licensed
Territory” means the world.

 

1.7.      “Sublicense”
means a sublicense between Licensee and a third party in which Licensee grants to such third party, either alone or with other rights,
the right to offer for sale and sell Licensed Products in the third party’s name.

 

1.8.      “Sublicensee”
means a third party to which Licensee has granted a Sublicense.

 

 

 

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1.9.      “Valid
Claim” means a claim in an unexpired patent or pending patent application included among the Licensed Patents so long as such
claim has not have been irrevocably abandoned or held invalid in an unappealable decision of a court or other authority of competent jurisdiction.

 

ARTICLE 2.             
GRANT OF LICENSE

 

2.1.      Grant of Rights.
Subject to the reservations and payment obligations in this Agreement, UGARF grants to Licensee the exclusive right and license to practice
Licensed Patents in the Licensed Territory as necessary to make, use, import, offer for sale, and sell Licensed Products in the Licensed
Territory. However, the rights and license granted in Sections 2.1 and 2.2 are subject to a reserved, non-exclusive license for UGARF
and the University of Georgia and their respective collaborators to practice Licensed Patents and to make, have made, use, have used,
and import Licensed Products for the limited purpose of scientific inquiry, research, education, and internal uses. Rights not expressly
granted to Licensee or reserved for UGARF or any third party hereunder are hereby reserved to UGARF.

 

2.2.      Sublicensing.
Licensee may grant one or more Sublicenses, without the right to grant sub-sublicenses, having terms consistent with this Agreement.
Licensee must comply with the following requirements with respect to any and all Sublicenses.

 

2.2.1. Copy of Sublicenses. Licensee
shall provide UGARF with a complete, unredacted copy of any Sublicense within thirty (30) days after its execution.

 

2.2.2. Copy of Sublicense Reports.
Licensee shall provide UGARF with a complete copy of each report received by Licensee from each Sublicensee.

 

2.2.3. Sublicensee Records. Licensee
shall require that each Sublicensee shall keep accurate records in sufficient detail to enable UGARF to verify all amounts due under this
Agreement and to verify the progress of each Sublicensee toward development and commercialization of Licensed Products.

 

2.2.4. Responsibility for Sublicensees.
Licensee shall remain fully responsible for those operations of each Sublicensee that are relevant to this Agreement as if such operations
were carried out by Licensee. A breach by a Sublicensee of any terms required of the Sublicensee directly by this Agreement, or that Licensee
is required to flow to Sublicensee in a Sublicense, shall be considered a breach of this Agreement by Licensee.

 

2.2.5. Sublicensee Indemnification.
Licensee must include in each Sublicense a provision requiring each Sublicensee to indemnify, pay for the defense of, and hold Indemnitees
(as defined in Section 9.4) harmless from and against certain claims and damages related to such Sublicensee’s operations to the
same extent required of Licensee hereunder.

 

2.2.6. Sublicensee Insurance Requirements.
Licensee must include a provision in each Sublicense requiring the Sublicensee to maintain insurance coverage to materially the same extent
that Licensee is so required under this Agreement.

 

2.2.7. Sublicense Audit Requirements.
Licensee must include a provision in each Sublicense requiring the Sublicensee to permit access to, and examination of, the Sublicensee’s
facilities, books, and records by Licensee to the same extent Licensee is so required to allow UGARF access to and examination of Licensee’s
facilities, books, and records under this Agreement. No more than once per year per Sublicense, UGARF may send notice to Licensee instructing
Licensee to examine the facilities, books, and/or records of Sublicensee for full compliance with the terms of this Agreement and the
applicable Sublicense. Licensee shall complete an examination of Licensee’s facilities, books, and/records as requested in UGARF’s
notice within four (4) months of the notice, and Licensee shall within that four (4) month period provide UGARF with a final report of
the examination, including a report of any amounts incorrectly reported and/or paid by Licensee. UGARF shall be responsible for Licensee’s
reasonable and actual expenses associated with such, except that if such examination discloses a shortage of three percent (3%) or more
between the amount due UGARF under this Agreement with respect to such Sublicense in any calendar year and the amount actually paid by
Licensee with respect to such, or if an audit reveals a material breach of this Agreement or the Sublicense, then Licensee shall be responsible
for all associated costs of the examination, including any professional fees and out of pocket costs incurred, with Licensee reimbursing
UGARF to the extent UGARF has already paid for such.

 

 

 

    	 	11	 

     

    

 

2.3.      U.S. Government
Reservation of Rights. Licensed Patents may have been conceived or otherwise developed with the use of U.S. Government funds. Therefore,
there is reserved from the rights granted to Licensee hereunder those rights the U.S. Government may have to practice Licensed Patents
in such manner to which the U.S. Government is entitled under provisions of 37 CFR 401, et seq. or other applicable law or contract.
UGARF further reserves for itself the royalty-free right to grant to the U.S. Government a license or licenses, with the right to sublicense,
to the Licensed Patents to the extent that such grant of rights is or may be required by law or contract.

 

2.4.      Reasonable
Commercial Diligence. Licensee shall use commercially reasonable efforts to bring Licensed Products to market, and to create, supply,
and service throughout the Licensed Territory as large a market for Licensed Products as is reasonably possible. In no instance shall
Licensee’s commercially reasonable efforts be less than efforts customary in Licensee’s industry.

 

ARTICLE 3.             
ROYALTY PAYMENTS

 

3.1.      Royalty Payments.
Licensee owes and shall pay UGARF a royalty on all Licensed Product Sales, and the amount due shall be determined by applying the applicable
Royalty Rate per Sections 3.1.1 and 3.1.2 below to the corresponding Licensed Product Sales (“Royalty Payment”). The
applicable royalty percentage is to be determined per Paragraphs 3.1.1 and 3.1.2 each quarter on a Licensed Product-by-Licensed Product
basis and may vary by quarter for each Licensed Product depending upon the total Licensed Product Sales for that Licensed Product during
the calendar year (“Royalty Rate”). Licensee shall deliver Royalty Payments to UGARF four (4) times per year, one for
each calendar quarter, with each Royalty Payment due no later than sixty (60) days after the close of the calendar quarter to which it
relates.

 

3.1.1. Licensed Product Sales in a Calendar
Year Below $50mil. The Royalty Rate of 1.5% applies to the first $50million U.S. of all Licensed Product Sales of a particular
Licensed Product in each calendar year.

 

3.1.2. Licensed Product Sales in a Calendar
Year Above $50mil. The Royalty Rate of 2.5% applies to all Licensed Product Sales of a particular Licensed Product above the first
$50million U.S. in each calendar year.

 

3.2.      Taxes.
Licensee shall deliver all payments due UGARF under this Agreement free and clear of any taxes, customs, or other governmental charges
or levies (“Taxes”). If Licensee is obligated by law to withhold Taxes on any payments to UGARF, Licensee shall increase
such payment so that UGARF receives the amount that would have been paid but for the withholding. If UGARF becomes obligated to pay Taxes,
and such Taxes were not satisfied by way of withholding, Licensee shall promptly reimburse UGARF for such payment, in an amount such that
after the payment of the Taxes, UGARF has received from Licensee the same amount that UGARF would have received under this Agreement had
such Taxes not been payable.

 

3.3.      Currency Conversion.
Licensee shall make all Royalty Payments to UGARF in U.S. Dollars. If any Licensed Products are sold for consideration other than
U.S. Dollars, the amount of Licensed Product Sales of such Licensed Products shall first be determined in the currency of the country
in which such sales of Licensed Products were made and then converted to U.S. Dollars as published by the Wall Street Journal (U.S.
ed.) for conversion of the foreign currency into dollars on the last day of the quarter for which such payment is due.

 

3.4.      Overdue Payments.
Any and all overdue payments under this Agreement will bear interest at the rate of 12% per annum from the date due until paid.

 

3.5.      Making Payments.
Licensee shall deliver all payments due UGARF under this Agreement either by (a) wire transfer to an account designated by UGARF in Exhibit
C; or (b) check payable to University of Georgia Research Foundation, Inc. delivered to Innovation Gateway, Boyd Graduate Studies
Research Center, Athens, GA 30602-7411. Licensee shall include in any payment made to UGARF by wire transfer a handling fee of $50.00 U.S.
Dollars for payments originating from a domestic U.S. account and $75.00 U.S. Dollars for payments originating from a foreign account.
UGARF shall not provide invoices for any payments due other than for the reimbursement of Patent Expenses.

 

 

 

    	 	12	 

     

    

 

3.6.      No Refunds
or Credits. All amounts paid to UGARF pursuant to this Agreement shall be non-refundable, and no amount paid shall be credited against
any other amount due by Licensee or any Sublicensee under this Agreement or any other agreement.

 

ARTICLE 4.             
REPORTS AND AUDITS

 

4.1.      Progress Reporting.
Once per calendar year, on February 28 of each year, Licensee shall deliver to UGARF a written report detailing Licensee’s
current progress toward development and commercialization of Licensed Products throughout the Licensed Territory (each a “Progress
Report”).

 

4.2.      Royalty Reporting.
For each quarter, Licensee shall deliver to UGARF a written report in the form provided at Exhibit B providing all applicable
sales, royalty, and other information as set out on Exhibit B (each, a “Royalty Report”). Licensee shall deliver
Royalty Reports to UGARF on the same schedule as Royalty Payments, and specifically Licensee shall deliver Royalty Reports to UGARF four
(4) times per year, one for each calendar quarter, with each Royalty Report due at the earlier of the date the associated Royalty Payment
is delivered or sixty (60) days after the close of the calendar quarter to which it relates.

 

4.3.      Recordkeeping.
Licensee shall keep, and shall require that each Sublicensee shall keep, accurate records in sufficient and customary detail to enable
UGARF to verify all financial calculations and amounts payable to UGARF under this Agreement as well as Licensee’s and each Sublicensee’s
full compliance with this Agreement and any relevant Sublicense.

 

4.4.      Audit.
During the term of this Agreement and for a period of three (3) years thereafter, Licensee is required to permit UGARF or its representatives,
no more than once per year, to inspect, audit, and copy, upon reasonable notice during regular business hours, Licensee’s facilities,
as well as books and records, whether in hard copy or electronically maintained, regarding the marketing, offer for sale, and sale of
all Licensed Products, the completeness and accuracy of Progress Reports and Royalty Reports, the amounts paid by Licensee to UGARF under
this Agreement, Licensee’s and any one or more Sublicensee’s diligence efforts, and the full compliance by Licensee and each
Sublicensee with the terms of this Agreement (the “Audit”). Such books and records include, but are not limited to,
invoice registers and original invoices; product sales reports and accounting general ledgers; Sublicenses and distributor agreements;
price lists, product catalogs, and marketing materials; financial statements and income tax returns; sales tax returns; inventory and
production records; and shipping records. UGARF shall be responsible for the expense of an Audit, except that if such examination discloses
a shortage of three percent (3%) or more between the amount due UGARF under this Agreement in any calendar year and the amount actually
paid by Licensee, or if an Audit reveals a material breach of this Agreement, then Licensee shall reimburse UGARF for UGARF’s Audit
costs, including any professional fees and out of pocket costs incurred by UGARF.

 

ARTICLE 5.             
LICENSED PATENT FILING, PROSECUTION, AND MAINTENANCE

 

5.1.      Prosecution
and Maintenance. UGARF shall file for, prosecute, and maintain protection for Licensed Patents. UGARF shall provide Licensee with
copies of all filings, official actions, and pertinent correspondence pertaining to such activities so as to give Licensee reasonable
opportunities to advise and cooperate with UGARF.

 

5.2.      Licensee Election
of Rights. Licensee shall notify UGARF in writing, with sufficient notice so as not to compromise UGARF’s or Licensee’s
rights, of the countries in which Licensee wishes patent or applications along the Licensed Patents to be filed, including but not limited
to national phase filings and registrations in individual countries stemming from regional filings. UGARF shall use reasonable efforts
to file for, prosecute, and maintain protection for those timely requested by Licensee.

 

5.3.      Patent Expense
Reimbursement. Licensee shall reimburse UGARF for all Licensed Patent Expenses. However, notwithstanding the foregoing, Licensee is
not required to reimburse UGARF for Licensed Patent Expenses incurred with respect to specific Licensed Patents if Licensee affirmatively
and by written notice to UGARF declines to license those rights. In that case, effective as of receipt of Licensee’s notice or upon
a later effective date stated in the notice, the declined rights shall be removed from the scope of any license granted herein (or in
any Sublicense) and from the definition of Licensed Patents; Licensee shall no longer have any obligation to reimburse UGARF for the associated
Licensed Patent Expenses thereafter incurred; and UGARF thereafter shall have no obligation to Licensee or Sublicensee whatsoever with
respect to such declined rights, which UGARF may license to one or more other entities in UGARF’s discretion.

 

 

 

    	 	13	 

     

    

 

5.4.      Invoices for
Patent Expenses. UGARF shall from time to time deliver invoices to Licensee seeking reimbursement for Licensed Patent Expenses. Licensee
shall pay each invoice by delivering payment to UGARF at the address indicated on the invoice by either thirty (30) days from Licensee’s
receipt of the invoice or the date identified as the due date on the invoice, whichever is later. Any and all overdue payments under this
Agreement will bear interest at the rate of 12% per annum from the date due until paid.

 

5.5.      Failure to
Reimburse Patent Expenses. If Licensee fails to timely reimburse UGARF for any Licensed Patent Expenses per Sections 5.3 and
5.4, then, in addition to UGARF’s other remedies and effective as of the missed payment due date, UGARF may elect, upon written
notice to Licensee at any time while such Licensed Patent Expenses remain unpaid, to remove from the scope of this Agreement those rights
for which Licensed Patent Expense reimbursement was not timely received. Effective upon Licensee’s receipt of UGARF’s notice
of removal of certain Licensed Patents under this Section 5.5, then those Licensed Patents identified in the notice shall be removed
from the scope of the licenses granted herein (and in any Sublicense) and from the definition of Licensed Patents; Licensee shall no longer
have any obligation to reimburse UGARF for the associated Licensed Patent Expenses thereafter incurred; and UGARF thereafter shall have
no obligation to Licensee or any Sublicensee whatsoever with respect to such removed rights, which UGARF may license to one or more other
entities in UGARF’s discretion.

 

5.6.      Amending Exhibit A.
UGARF and Licensee shall as may be necessary from time to time amend Exhibit A so that it accurately reflects those Licensed
Patents added and/or removed from the scope of this Agreement per Sections 3.3 and/or 3.5.

 

ARTICLE 6.             
INFRINGEMENT

 

6.1.      Notice of Possible
Infringement. Licensee shall report all suspected infringement of Licensed Patents to UGARF. It is a breach of this Agreement, and
grounds for termination under Section 8.3, for Licensee to contact any third party suspected of infringement of any one or more Licensed
Patents without prior written authorization from UGARF.

 

6.2.      Licensee Enforcement.
If Licensee desires to file suit against an alleged infringer of one or more Licensed Patents, where such alleged infringement is
or was in the Licensed Territory and Licensed Field during the term of Licensee’s rights to Licensed Patents hereunder, then Licensee
shall so notify UGARF. If and only if UGARF authorizes, in UGARF’s sole discretion, Licensee to proceed, then the following terms
apply:

 

a.          
UGARF shall cooperate with Licensee in all reasonable respects in the litigation, and UGARF acknowledges and agrees that it shall give
its consent to be added as a party to the suit if UGARF is determined to be a necessary party.

b.          
Licensee shall have the sole authority to negotiate and settle the matter in any manner consistent with the rights granted to Licensee
herein, and so long as such settlement does not reduce or negatively impact UGARF’s rights in any way.

c.          
Licensee shall employ counsel reasonably satisfactory to UGARF, inform UGARF of all material developments, and provide UGARF with copies
of all material correspondence and pleadings. Counsel shall also represent UGARF, if UGARF is added as a party to the suit, with respect
to all claims asserted by and against UGARF.

d.          
Licensee shall be responsible for all costs of the litigation, including representation of UGARF. UGARF may also be represented by its
own separate counsel at UGARF’s own expense.

e.          
Recoveries collected by Licensee and/or UGARF (i) will be paid to Licensee and to UGARF to reimburse their expenses incurred in such action
(and if the recovery is not sufficient to reimburse both Parties for all expenses then the Parties will be reimbursed proportionally based
upon their expenses incurred), and then (ii) any remaining amount shall be paid to Licensee, and (iii) Licensee shall then pay UGARF 1.5%
of the amount paid to UGARF under (ii).

 

 

 

    	 	14	 

     

    

 

6.3.      UGARF Enforcement.
If Licensee does not desire to file suit against an alleged infringer of one or more Licensed Patents, where such alleged infringement
is or was in the Licensed Territory and Licensed Field during the term of Licensee’s rights to Licensed Patents hereunder, but UGARF
does so desire, then UGARF may move forward with suit in UGARF’s sole discretion, and the following terms apply:

a.          
Licensee shall cooperate with UGARF in all reasonable respects in the litigation, and Licensee acknowledges and agrees that Licensee shall
give its consent to be added as a party if necessary.

b.          
UGARF shall have sole authority to negotiate and settle the matter without limitation. UGARF has the right to grant and may grant non-exclusive
licenses in settlement of any enforcement action it initiates hereunder, thereby reducing the exclusivity of the license granted to Licensee
herein, provided such licenses are not granted to any direct competitor of Licensee.

c.          
UGARF shall employ counsel of its own choosing. If Licensee is a party to the suit, then Licensee may be represented by its own counsel
at Licensee’s own expense.

d.          
UGARF shall be responsible for its own expenses.

e.          
Recoveries collected by UGARF and/or Licensee (i) will be paid to UGARF and to Licensee to reimburse their expenses incurred in such action
(and if the recovery is not sufficient to reimburse both Parties for all expenses, then the Parties will be reimbursed proportionally
based upon their expenses incurred), and then (ii) the remainder, if any, shall be paid to UGARF.

 

6.4.      Abandonment.
If either Party commences suit against an alleged infringer under Section 6.2 or 6.3 above and thereafter elects to abandon it,
the abandoning Party shall give timely notice to the other Party, which may continue prosecution of such suit so long as the Parties first
reach an agreement on a formula for sharing recoveries and expenses.

 

ARTICLE 7.             
CONFIDENTIALITY

 

7.1.      Proprietary
Business Information. “Proprietary Business Information” means any and all proprietary business information that
contains or makes reference to any one or more of the following: inventions; patent applications; intellectual property holdings or strategy;
know-how; source code or software; data; biological or chemical materials; prototypes or devices; product development information and
marketing efforts; financial information; sales information; Progress Reports; Royalty Reports; customer, Sublicense, or Sublicensee information;
or business or legal arrangements.

 

7.2.      Confidential
Information. For the purpose of this Agreement, “Confidential Information” means any and all Proprietary Business
Information embodied in written, electronic, biological, chemical, or any other tangible or electronic form, or communicated verbally,
which is held by and then disclosed or provided under this Agreement by one Party (“Provider”) to the other Party (“Recipient”),
whether or not such information is marked as confidential at the time of disclosure.

 

7.3.      Limited Exchange.
The Parties agree they will only exchange Confidential Information under this Agreement as necessary to fulfill the material purpose of
this Agreement and their obligations hereunder.

 

7.4.      Non-Disclosure
of Confidential Information. Except to the extent required by law, during the Term and for a period of five (5) years thereafter,
a Recipient of the Provider’s Confidential Information shall not disclose such Confidential Information to any third party without
prior written consent of the Provider, and Recipient shall only use Provider’s Confidential Information as necessary to perform
the its obligations hereunder and to fulfill the material purpose of this Agreement. However, a Recipient may disclose the Provider’s
Confidential Information to those affiliates, agents, sublicensees (including Sublicensees), research sponsors, and financial, legal,
and other professional advisors who reasonably need to know such Confidential Information in furtherance of the material purpose of this
Agreement (“Third Party Recipients”), but only after the Third Party Recipient has signed a written agreement of confidentiality
with the Recipient that limits disclosure of, protects, and requires return or destruction of, the Provider’s Confidential Information
to the same or a greater extent as the terms of this Agreement. The Recipient disclosing a Provider’s Confidential Information to
a Third Party Recipient shall be fully responsible to the Provider for the Third Party Recipient’s full compliance with the terms
of this Agreement, including but not limited to the terms of Article 5 and Section 6.4 herein.

 

 

 

    	 	15	 

     

    

 

7.5.      Exceptions.
A Recipient or Third Party Recipient shall have no obligations of non-disclosure per Section 7.4 with respect to any portion of the
Provider’s Confidential Information that:

a.          
Recipient or Third Party Recipient can demonstrate through documentation to have been within its legitimate possession prior to the date
of receipt of such information under this Agreement;

b.          
Recipient or Third Party Recipient can demonstrate through documentation that it independently developed without reference to Confidential
Information provided to it hereunder;

c.          
was in the public domain prior to Provider’s disclosure to Recipient or Third Party Recipient as evidenced by documentation published
prior to such disclosure;

d.          
came into the public domain as evidence by published documentation through no fault of Recipient or Third Party Recipient after disclosure
by Provider hereunder; and/or

e.          
is obtained by Recipient or Third Party Recipient from a third party having legitimate possession of the information and the legal right
to disclose it to Recipient or Third Party Recipient without breach of any contract or duty.

 

7.6.      Prior Agreements.
The provisions of this Agreement supersede and shall be substituted for the terms of any prior confidentiality obligation between Licensee
and UGARF relating to the same Confidential Information that is not consistent with this Agreement.

 

ARTICLE 8.             
TERM AND TERMINATION

 

8.1.      Term. Unless
sooner terminated as otherwise provided herein or by the mutual consent of the Parties, this Agreement begins on the Effective Date and
terminates five (5) years thereafter. However, notwithstanding the foregoing, Licensee’s rights to any particular Licensed Patent
are co-terminus with the existence of at least one Valid Claim of such Licensed Patent (unless Licensee’s rights to such Licensed
Patent are earlier removed from the scope of this Agreement pursuant to the terms of this Agreement or by the mutual consent of the Parties).

 

8.2.      Termination
by Licensee. Licensee may terminate this Agreement by delivering notice of termination to UGARF, and in that event the effective date
of termination will be the later of either thirty (30) days from the date of receipt of the notice of termination or a later termination
date identified in the notice.

 

8.3.      Termination
by UGARF. If Licensee or a Sublicensee materially breaches any term of this Agreement and fails to cure such breach within thirty (30)
days after Licensee’s receipt of written notice of such breach by UGARF, then UGARF may thereafter deliver, at any time during the
Term while the noticed breach remains uncured, a notice of termination to Licensee, in which case this Agreement automatically shall terminate
as of the date of Licensee’s receipt of such notice of termination or on a later termination date identified in the notice. Notwithstanding
the foregoing, if Licensee files any action that challenges UGARF’s rights in any one or more Licensed Patents, then UGARF may send
notice of termination to Licensee, in which case termination is effective immediately upon Licensee’s receipt of such notice.

 

8.4.      Effect of Termination.
If this Agreement terminates for any reason, then on the effective date of termination Licensee and all Sublicensees shall immediately
cease practicing the Licensed Patents and making, having made, offering to sell, and selling Licensed Products. Further, in the event
this Agreement terminates for any reason, then on the effective date of termination each Recipient and Third Party Recipient of the Provider’s
Confidential Information shall destroy all such Confidential Information in its possession or control; or upon timely notice from the
Provider, the Recipient and each Third Party Recipient shall return such Confidential Information to the Provider at the Provider’s
expense. However, each Recipient may keep one (1) copy of the Provider’s Confidential Information to the extent required by the
Recipient’s records retention policies, but except as required by law the Recipient may not use or access any such retained Confidential
Information of another Party for any purpose whatsoever unless or until such retained Confidential Information meets one of the exceptions
at Sections 7.5(a)-(e).

 

8.5.      Termination
Payments and Reports. Within sixty (60) days after the effective date of termination of this Agreement for any reason, Licensee shall
deliver to UGARF a final Royalty Payment, Royalty Report, and Progress Report per Articles 3 and 4 that correspond to the period from
the last previously delivered such reports and payments through the effective date of termination.

 

 

 

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8.6.      Survival. Notwithstanding
termination or expiration of this Agreement for any reason, the following provisions shall survive: Section 4.4 and Articles 1,
6, 7, 8, 9, and 10; and any cause of action, claim, and/or payment of a Party accrued prior to termination. However, any rights under
any one or more of the above-identified Articles that are extinguished pursuant to Sections 5.3. 5.5, and/or 8.4 do not survive termination.

 

ARTICLE 9.             
WARRANTIES AND DISCLAIMERS; LIABILITY, INDEMNITY, AND INSURANCE

 

9.1.      Authority.
Each of UGARF and Licensee represent and warrant to the other that it has the right, power, and authority to enter into and perform its
obligations under this Agreement.

 

9.2.      DISCLAIMER
OF WARRANTIES. EXCEPT AS SET OUT IN SECTION 9.1, LICENSED PATENTS ARE PROVIDED “AS IS.” UGARF MAKES NO REPRESENTATIONS
OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, REGARDING ANY LICENSED PATENTS AND/OR LICENSED PRODUCTS, AND UGARF EXPRESSLY DISCLAIMS
ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE RELATED THERETO OR THAT SUCH DO NOT INFRINGE THIRD PARTY
RIGHTS. Nothing contained in this Agreement shall be construed as either a warranty or representation
by UGARF as to the validity or scope of ANY LICENSED PATENT OR THAT ANY PATENT OR OTHER INTELLECTUAL PROPERTY WILL ISSUE AMONG LICENSED
PATENTS.

 

9.3.      LIMITATION
OF LIABILITY. UGARF ASSUMES NO LIABILITY, AND SHALL HAVE NO LIABILITY TO LICENSEE OR TO ANY SUBLICENSEE WHATSOEVER, FOR ANY DIRECT,
INDIRECT, SPECIAL, PUNITIVE, INCIDENTAL, LOST PROFITS, AND/OR CONSEQUENTIAL DAMAGES OF ANY KIND (collectively, “DAMAGES”)
ARISING OUT OF OR RELATED TO LICENSEE’S AND/OR ANY SUBLICENSEE’S PRACTICE OF LICENSED PATENTS, DEVELOPMENT, OFFER FOR SALE,
AND/OR SALE OF LICENSED PRODUCTS, OR TO LICENSEE’S AND/OR ANY SUBLICENSEE’S PERFORMANCE UNDER THIS AGREEMENT. LICENSEE AND
EACH SUBLICENSEE ASSUMES ALL RISK AND LIABILITIES ASSOCIATED WITH ITS USE OF WORK PRODUCT, CONFIDENTIAL INFORMATION, AND PROJECT INTELLECTUAL
PROPERTY, AND ITS PREFORMANCE UNDER THIS AGREEMENT AND/OR ANY SUBLICENSE, INCLUDING BUT NOT LIMITED THOSE RISKS AND LIABILITIES ARISING
OUT OF OR RELATED TO THE SAFETY, UTILITY, VALUE, AND/OR MARKETABILITY OF LICENSED PATENTS AND/OR LICENSED PRODUCTS. THESE LIMITATIONS
OF LIABILITY IN SECTION 9.3 APPLY EVEN THOUGH UGARF OR ANY ONE OR MORE INDEMNITTES (as defined in Section 9.4 below) MAY HAVE
BEEN ADVISED OF THE POSSIBILITY OF SUCH LIABILITY AND/OR RELATED DAMAGES.

 

9.4.      INDEMNIFICATION.
LICENSEE SHALL INDEMNIFY, PAY FOR THE DEFENSE OF, AND HOLD HARMLESS, AND SHALL ITSELF BRING NO CLAIM OR SUIT AGAINST, UGARF, REGENTS,
AND/OR PRINCIPAL INVESTIGATOR (AND/OR ANY AND ALL OF THEIR RESPECTIVE TRUSTEES, DIRECTORS, OFFICERS, FACULTY, STUDENTS, EMPLOYEES, CONSULTANTS,
AND AGENTS) (collectively “INDEMNITEES”) FROM AND AGAINST ANY AND ALL CLAIMS, LIABILITIES, AND/OR DAMAGES OF ANY KIND
ASSERTED OR ASSESSED AGAINST ANY ONE OR MORE OF INDEMNITEES BY LICENSEE, SUBLICENSEE, AND/OR ANY THIRD PARTY ARISING OUT OF OR RELATED
TO LICENSEE’S OR SUBLICENSEE’S PRACTICE OF LICENSED PATENTS, DEVELOPMENT, OFFER FOR SALE, AND/OR SALE OF LICENSED PRODUCTS
OR TO LICENSEE’S AND/OR ANY SUBLICENSEE’S PREFORMANCE UNDER THIS AGREEMENT OR ANY SUBLICENSE. HOWEVER, LICENSEE SHALL HAVE
NO OBLIGATION TO AN INDEMNITEE UNDER THIS SECTION 9.4 DIRECTLY ARISING OUT OF OR RELATED TO THE NEGLIGENCE OR INTENTIONAL MISCONDUCT,
OR BREACH OF THIS AGREEMENT, OF SUCH INDEMNITEE.

 

9.5.          
Insurance. Licensee and each Sublicensee shall obtain and carry in full effect during the term of this Agreement and for five (5)
years thereafter general liability insurance in an amount commensurate with similarly situated companies, with UGARF and the Board of
Regents of the University System of Georgia by and on behalf of the University of Georgia added as additional insureds with respect to
its products, continuing operations, and completed operations coverage as applicable. This insurance shall be primary and non-contributory
to other insurance available to UGARF. Licensee shall give UGARF thirty (30) days’ prior written notice of cancellation of any policy
relied upon by Licensee or any Sublicensee to meet its requirements hereunder. Within thirty (30) days of a request by UGARF, Licensee
shall provide UGARF with appropriate certificates of insurance showing Licensee’s and each Sublicensee’s compliance with its
obligations under this Section 9.5.

 

 

 

    	 	17	 

     

    

 

ARTICLE 10.         
MISCELLANEOUS

 

10.1.   Integration. This Agreement,
including its Exhibits, contains the entire understanding of the Parties with respect to the subject matter of this Agreement and supersedes
any and all prior written or oral discussions, arrangements, courses of conduct, or agreements with respect to the same subject matter;
provided that any contemporaneous agreements executed by the Parties for research or other funding shall be read independently of this
Agreement.

 

10.2.   Amendment and Waiver. Except
as expressly permitted herein, this Agreement may be amended only by a written instrument executed by both Parties. The waiver of an obligation
hereunder by a Party shall not constitute a waiver of any other obligation, and shall not constitute a permanent waiver of that obligation.

 

10.3.   Assignment. This Agreement
shall not be assigned by Licensee without the prior written consent of UGARF, and absent the prior written consent of UGARF any assignment
is void. If UGARF provides prior written approval, then Licensee shall provide UGARF with a copy of the assignment within five (5) days
of such action.

 

10.4.   Severability. If any one
or more of the provisions of this Agreement is held by any court of competent jurisdiction to be invalid, illegal, or unenforceable, then
such provisions shall be reformed to approximate as nearly as possible the intent of the Parties, and the validity of the remaining provisions
shall not be affected. If it is not possible to reform the Agreement while maintaining the material intent of the Parties, then this Agreement
shall automatically terminate.

 

10.5.   Relationship of Parties.
The Parties are independent contractors. There is no relationship of principal to agent, master to servant, employer to employee, or franchiser
to franchisee between the Parties. Neither Party has the authority to bind the other or incur any obligation on its behalf except as may
be expressly provided herein.

 

10.6.   Use of Names. None of Licensee
and/or any Sublicensee shall use the names or marks of UGARF, the University of Georgia, or any of their employees or students in connection
with any commercial activity without the prior written consent of the owner of the name or mark.

 

10.7.   Governing Law; Jurisdiction.
This Agreement is governed and interpreted under the laws of the State of Georgia applicable to contracts made and to be performed entirely
within Georgia by Georgia residents. All actions or proceedings related to this Agreement Licensed Patents shall be litigated in the Superior
Courts of Clarke County, Georgia or the U.S. District Court for the Middle District of Georgia.

 

10.8.   Patent Marking. Licensee
and each Sublicensee shall place in a conspicuous location on all Licensed Products (or on their packaging and accompanying written materials
where appropriate) made or sold under this Agreement and/or any Sublicense a patent notice in accordance with applicable law.

 

10.9.   U.S. Manufacture. To the
extent required by U.S. law or by the terms of any U.S. Government funding agreement with respect to the Licensed Patents, Licensed Products
for sale in the U.S. will be manufactured or produced substantially in the U.S.

 

10.10.     Export Controls.
Licensee acknowledges that Licensed Products may be subject to U.S. laws and regulations controlling the export of technical data, biological
materials, chemical compositions, computer software, laboratory prototypes and other commodities and/or controlling the financial transactions
that may take place with certain foreign individuals, entities, or governments. Licensee’s practice of Licensed Patents and/or manufacture,
transport, or sale of Licensed Products may require a license from an agency of the U.S. government. UGARF neither represents that such
a license will not be required nor that, if required, such license shall issue.

 

10.11.     Severability.
All rights and duties herein are binding only to the extent that they do not violate any laws. If any provision of this Agreement is held
by a court of competent jurisdiction to be invalid, illegal, or unenforceable, it is the intent of the Parties that any such provision
be replaced by a valid provision that implements the commercial purpose of the illegal, invalid, or unenforceable provision. In the event
that any provision essential to the commercial purpose of this Agreement is held to be illegal, invalid, or unenforceable by a court of
competent jurisdiction, all right of appeal has been exhausted, and such essential provision cannot be replaced by a valid provision that
will implement the commercial purpose of this Agreement, then this Agreement and the rights granted herein shall automatically terminate.

 

 

 

    	 	18	 

     

    

 

10.12.     Force Majeure.
Delays in, or failure of, performance by any Party will not constitute default, or trigger any claim for damages, if and to the extent
such damages are caused by acts of God, strikes, work stoppages, civil disturbances, fires, floods, explosions, riots, war, rebellion,
and/or sabotage.

 

10.13.     Notices. All
notices required under this Agreement shall be delivered to the Parties at the addresses set forth below. Notice may be given by hand
or by commercial carrier. Such notice is effective upon receipt by an employee, agent, or representative of the receiving Party authorized
to receive notices or other communications sent or delivered in the manner set forth above.

 

	 	If to UGARF:	Director, Innovation Gateway
	 	 	University of Georgia Research Foundation, Inc.
	 	 	Boyd Graduate Studies Research Center, 8th Floor
	 	 	Athens, Georgia  30602-7411
	 	 	 
	 	If to Licensee:	Dr. Steve N. Slilaty, CEO
	 	 	Sunshine Biopharma, Inc.
	 	 	6500 Trans-Canada Highway, 4th Floor
	 	 	Pointe-Claire, Quebec H9R 0A5
	 	 	CANADA
	 	 	Tel: 
	 	 	Email: steve.slilaty@sunshinebiopharma.com
	 	 	cc: info@sunshinebiopharma.com

 

IN WITNESS WHEREOF, the Parties hereto have caused this License Agreement
to be executed by their authorized representatives on the date indicated below.

 

	University of Georgia	Sunshine Biopharma, Inc.
	Research Foundation, Inc.	 
	 	 
	 	 
	_______________________	_______________________
	Name:     NDr. David Lee 	Name:Dr. Steve N. Slilaty
	Title:     Executive Vice President	Title:Chief Executive Officer
	Date:__________	Date:__________

 

 

 

 

    	 	19	 

     

    

 

EXHIBIT A

 

LICENSED PATENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	20	 

     

    

 

EXHIBIT B

 

ROYALTY REPORTS

 

 

 

 

 

 

 

 

 

 

 

    	 	21	 

     

    

 

EXHIBIT B-1

 

SAMPLE TABLE FOR ROYALTY REPORTS

 

 

 

 

 

 

 

 

 

 

    	 	22	 

     

    

 

EXHIBIT C

 

WIRE TRANSFER INSTRUCTIONS

 

 

 

 

 

 

 

 

 

 

 

 

    	 	23Document

Exhibit 10.1

THE SCOTTS MIRACLE-GRO COMPANY 
LONG-TERM INCENTIVE PLAN
(EFFECTIVE AS OF JANUARY 24, 2022)

Article 1.

Establishment, Purpose, and Duration

1.1    Establishment.  This Plan, an incentive compensation plan, was established by The Scotts Miracle-Gro Company.  This Plan was originally effective on January 26, 2006, was amended and restated effective as of October 30, 2007, January 20, 2010, January 17, 2013, January 27, 2017, and is hereby further amended and restated effective as of January 24, 2022 (the “Effective Date”), as set forth in this document.  This Plan shall remain in effect as provided in Section 1.3 hereof.

This Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units and Other Stock-Based Awards.  Awards granted under the Plan prior to the Effective Date shall continue to be governed by the applicable Award Agreements and the terms of the Plan without giving effect to the changes made pursuant to this amendment and restatement, and the Committee shall administer such Awards in accordance with the Plan without giving effect to changes made pursuant to this amendment and restatement.

1.2    Purpose of this Plan.  The purpose of this Plan is to provide a means whereby Employees, Directors, and Third-Party Service Providers develop a sense of proprietorship and personal involvement in the development and financial success of the Company, and to encourage them to devote their best efforts to the business of the Company, thereby advancing the interests of the Company and its shareholders.  A further purpose of this Plan is to provide a means through which the Company may attract able individuals to become Employees or serve as Directors or Third-Party Service Providers and to provide a means whereby those individuals upon whom the responsibilities of the successful administration and management of the Company are of importance, can acquire and maintain stock ownership, thereby strengthening their concern for the welfare of the Company.

1.3    Duration of this Plan.  Unless sooner terminated as provided herein, this Plan shall terminate on January 23, 2032.  After this Plan is terminated, no Awards may be granted but Awards previously granted shall remain outstanding in accordance with their applicable terms and conditions and this Plan’s terms and conditions. 

Article 2.

Definitions

Whenever used in this Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word shall be capitalized.

2.1    “Affiliate” shall mean any corporation or other entity (including, but not limited to, a partnership or a limited liability company), that is affiliated with the Company through stock or equity ownership or otherwise, and is designated as an Affiliate for purposes of this Plan by the Committee.

2.2    “Award” means, individually or collectively, a grant under this Plan of Nonqualified Stock Options, Incentive Stock Options, SARs, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units or Other Stock-Based Awards, in each case subject to the terms of this Plan.

2.3    “Award Agreement” means either (i) a written agreement entered into by the Company and a Participant setting forth the terms and provisions applicable to an Award granted under this Plan, or (ii) a written or electronic statement issued by the Company to a Participant describing the terms and provisions of such Award, including in each case any amendment or modification thereof.  The Committee may provide for the use of electronic, internet or other non-paper Award Agreements, and the use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder by a Participant.

2.4    “Beneficial Owner” or “Beneficial Ownership” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

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2.5    “Board” or “Board of Directors” means the Board of Directors of the Company.

2.6    “Cause” means, unless otherwise specified in an Award Agreement or in an applicable employment agreement between the Company and a Participant, with respect to any Participant, that the Participant has:

(a)    willfully and materially breached the terms of any employment agreement between the Participant and the Company;

(b)    engaged in willful misconduct that has materially injured the business of the Company or any Subsidiary or Affiliate;

(c)    willfully committed a material act of fraud or material breach of the Participant’s duty of loyalty to the Company or any Subsidiary or Affiliate;

(d)    willfully and continually failed to attempt in good faith to perform the Participant’s duties hereunder (other than any such failure resulting from the Participant’s incapacity due to physical or mental illness), after written notice has been delivered to the Participant by the Company, which notice specifically identifies the manner in which the Participant has not attempted in good faith to perform his duties; or

(e)    been convicted, or plead guilty or nolo contendere for the commission of an act or acts constituting a felony under the laws of the United States or any state thereof.  

For purposes of subsections (a) - (d), no act, or failure to act, on the Participant’s part shall be deemed “willful” unless, the Company reasonably determines, in good faith, that it was done, or omitted to be done, by the Participant not in good faith and without reasonable belief that his act, or failure to act, was in the best interest of the Company or any Subsidiary or Affiliate.

2.7    “Change in Control” means the occurrence of any of the following:

(a)    The members of the Board on the Effective Date (“Incumbent Directors”) cease for any reason other than death to constitute at least a majority of the members of the Board, provided that any director whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the then Incumbent Directors also will be treated as an Incumbent Director; or

(b)    Any “person,” including a “group” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act, but excluding the Company, any of its Subsidiaries, any employee benefit plan of the Company or any of its Subsidiaries or Hagedorn Partnership, L.P. or any party related to Hagedorn Partnership, L.P. as determined by the Committee) becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing more than thirty percent (30%) of the combined voting power of the Company’s then outstanding securities; or

(c)    Consummation of (i) the merger or other business combination of the Company with or into another entity in which the shareholders of the Company immediately before the effective date of such merger or other business combination own less than fifty percent (50%) of the voting power in such entity; or (ii) the sale or other disposition of all or substantially all of the assets of the Company; or

(d)    The adoption by the shareholders of the Company of a plan relating to the liquidation or dissolution of the Company; or

(e)    For any reason, Hagedorn Partnership, L.P. or any party related to Hagedorn Partnership, L.P. as determined by the Committee becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing more than forty-nine percent (49%) of the combined voting power of the Company’s then outstanding securities.

The Committee may provide for a more restrictive definition of Change in Control in an Award Agreement if necessary or appropriate to comply with Code Section 409A or as the Committee deems appropriate.

Notwithstanding the foregoing, an Award that is subject to Code Section 409A will not be paid or settled upon a Change in Control unless the Change in Control also constitutes a “change in control event” under Code Section 409A and Treasury Regulation Section 1.409A-3(i)(5).
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2.8    “Change in Control Price” means the price per Share paid in conjunction with any transaction resulting in a Change in Control (as determined in good faith by the Committee if any part of the offered price is payable other than in cash) or, in the case of a Change in Control occurring solely by reason of events not related to a transfer of Shares, the highest Fair Market Value of a Share on any of the thirty (30) consecutive trading days ending on the last trading day before the Change in Control occurs.

2.9    “Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time.  For purposes of this Plan, references to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision, as well as any applicable interpretative guidance issued related thereto.

2.10    “Committee” means the Compensation and Organization Committee of the Board or a subcommittee thereof, or any other committee designated by the Board to administer this Plan.  The members of the Committee shall be appointed from time to time by and shall serve at the discretion of the Board.  If the Committee does not exist or cannot function for any reason, the Board may take any action under the Plan that would otherwise be the responsibility of the Committee.

2.11    “Company” means The Scotts Miracle-Gro Company, an Ohio corporation, and any successor thereto as provided in Article 19 herein.

2.12    “Director” means any individual who is a member of the Board of Directors of the Company.

2.13    “Dividend Equivalent” has the meaning set forth in Article 13.

2.14    “Effective Date” has the meaning set forth in Section 1.1.

2.15    “Employee” means any individual who performs services for and is designated as an employee of the Company, its Affiliates, and/or its Subsidiaries on the payroll records thereof.  An Employee shall not include any individual during any period he or she is classified or treated by the Company, Affiliate, and/or Subsidiary as an independent contractor, a consultant, or any employee of an employment, consulting, or temporary agency or any other entity other than the Company, Affiliate, and/or Subsidiary, without regard to whether such individual is subsequently determined to have been, or is subsequently retroactively reclassified as a common-law employee of the Company, Affiliate, and/or Subsidiary during such period.

2.16    “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

2.17    “Fair Market Value” or “FMV” means a price that is based on the opening, closing, actual, high, low, or average selling prices of a Share reported on the New York Stock Exchange (“NYSE”) or other established stock exchange (or exchanges) on the applicable date, the preceding trading day, the next succeeding trading day, or an average of trading days, as determined by the Committee in its discretion.  Unless the Committee determines otherwise, Fair Market Value shall be deemed to be equal to the closing price of a Share on the relevant date if it is a trading day or, if such date is not a trading day, on the next trading day.  In the event Shares are not publicly traded at the time a determination of their value is required to be made hereunder (a) with respect to NQSOs, SARs and Awards that are subject to Code Section 409A, “Fair Market Value” shall mean the value as determined by the Committee through the reasonable application of a reasonable valuation method, taking into account all information material to the value of the Company, within the meaning of Code Section 409A and (b) with respect to all other Awards, the determination of “Fair Market Value” shall be made by the Committee in such manner as it deems appropriate.  Such definition(s) of FMV shall be specified in each Award Agreement and may differ depending on whether FMV is in reference to the grant, exercise, vesting, settlement, or payout of an Award.

2.18    “Full-Value Award” means an Award other than in the form of an ISO, NQSO, or SAR, and which is settled by the issuance of Shares.

2.19    “Full-Value Factor” has the meaning set forth in Section 4.1(b).

2.20    “Grant Date” means the date an Award is granted to a Participant pursuant to the Plan.

2.21    “Grant Price” means the price established at the time of grant of a SAR pursuant to Article 7, used to determine whether there is any payment due upon exercise of the SAR.

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2.22    “Incentive Stock Option” or “ISO” means an Option to purchase Shares granted under Article 6 that is designated as an Incentive Stock Option and that is intended to meet the requirements of Code Section 422, or any successor provision.

2.23    “Insider” shall mean an individual who is, on the relevant date, an officer or Director of the Company, or a more than ten percent (10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Board or Committee in accordance with Section 16 of the Exchange Act.

2.24    “Non-employee Director” means a Director who is not an Employee on the Grant Date.

2.25    “Non-employee Director Award” means any NQSO, SAR, or Full-Value Award granted to a Participant who is a Non-employee Director pursuant to such applicable terms, conditions, and limitations as the Board or Committee may establish in accordance with this Plan.

2.26    “Nonqualified Stock Option” or “NQSO” means an Option that is not intended to meet the requirements of Code Section 422, or that otherwise does not meet such requirements.

2.27    “Option” means an Incentive Stock Option or a Nonqualified Stock Option, as described in Article 6.

2.28    “Option Price” means the price at which a Share may be purchased by a Participant pursuant to the exercise of an Option.

2.29    “Other Stock-Based Award” means an equity-based or equity-related Award not otherwise described by the terms of this Plan, granted pursuant to Article 10.

2.30    “Participant” means any eligible individual as set forth in Article 5 to whom an Award is granted.

2.31    “Performance Goals” shall be established by the Committee, based on one or more of the following criteria or derivations of such criteria or such other criteria as determined by the Committee, including but not limited to the following: net earnings or net income (before or after taxes); earnings per share (basic or diluted); net sales or revenue growth; net operating profit; return measures (including, but not limited to, return on assets, capital, invested capital, investor return, equity, sales, revenue or dividend yield); cash flow (including, but not limited to, operating cash flow, free cash flow, cash flow return on equity, and cash flow return on investment); earnings before or after taxes, interest, depreciation, and/or amortization; gross or operating margins; productivity ratios; share price (including, but not limited to, growth measures and total shareholder return); expense targets; margins; operating efficiency; market share; customer satisfaction; working capital targets; economic value added or EVA(R) (net operating profit after tax minus the sum of capital multiplied by the cost of capital); developing new products and lines of revenue; reducing operating expenses; developing new markets; meeting completion schedules; developing and managing relationships with regulatory and other governmental agencies; managing cash; managing claims against the Company, including litigation; identifying and completing strategic acquisitions or joint ventures. Any Performance Goal(s) may be used to measure the performance of the Company, Subsidiary, and/or Affiliate as a whole or any business unit or joint venture of the Company, Subsidiary, and/or Affiliate or any combination thereof, as the Committee may deem appropriate, or any of the above Performance Goals as compared to the performance of a group of comparator companies, or published or special index that the Committee, in its sole discretion, deems appropriate.  The Committee may provide in any such Award that any evaluation of performance may include or exclude any of the following events that occurs during a Performance Period: (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs, (e) unusual and infrequently occurring items as described in applicable Accounting Principles Board opinions and in management’s discussion and analysis of financial conditions and results of operations appearing in the Company’s annual report to shareholders for the applicable year, (f) acquisitions or divestitures, (g) foreign exchange gains and losses, and (h) other appropriate events.  The Committee has the authority to provide for accelerated vesting of any Award based on the achievement of Performance Goals.

2.32    “Performance Period” means the period of time during which the Performance Goals must be met in order to determine the degree of payout and/or vesting with respect to an Award.

2.33    “Performance Share” means an Award under Article 9 herein and subject to the terms of this Plan, denominated in Shares, the value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria or Performance Goal(s), as applicable, have been achieved.
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2.34    “Performance Unit” means an Award under Article 9 herein and subject to the terms of this Plan, denominated in units, the value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria or Performance Goals, as applicable, have been achieved.

2.35    “Period of Restriction” means the period when Restricted Stock or Restricted Stock Units are subject to a substantial risk of forfeiture (based on the passage of time, the achievement of Performance Goals, or the occurrence of other events as determined by the Committee, in its discretion), as provided in Article 8.

2.36    “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.

2.37    “Plan” means The Scotts Miracle-Gro Company Long-Term Incentive Plan, as amended and restated from time to time.

2.38    “Plan Year” means the Company’s fiscal year.

2.39    “Restricted Stock” means an Award granted to a Participant pursuant to Article 8.

2.40    “Restricted Stock Unit” means an Award granted to a Participant pursuant to Article 8, except no Shares are actually awarded to the Participant on the Grant Date.

2.41    “Share” means a common share of the Company, without par value per share.

2.42    “Stock Appreciation Right” or “SAR” means an Award granted to a Participant pursuant to Article 7.

2.43    “Subsidiary” means any corporation or other entity, whether domestic or foreign, in which the Company has or obtains, directly or indirectly, a proprietary interest of more than fifty percent (50%) by reason of stock ownership or otherwise.

2.44    “Termination” or “Terminate” means: (a) if a Participant is an Employee, cessation of the employee-employer relationship between a Participant and the Company and all Affiliates and Subsidiaries for any reason; (b) if a Participant is a Non-employee Director, termination of the Non-employee Director’s service on the Board for any reason; and (c) if a Participant is a Third-Party Service Provider, termination of the Third-Party Service Provider’s service relationship with the Company and all Affiliates and Subsidiaries for any reason.  Notwithstanding the foregoing, with respect to any Award subject to Code Section 409A, any such cessation or termination also must constitute a “separation from service” as defined under Treasury Regulation Section 1.409A-1(h).  Effective for Awards granted on or after January 20, 2010, an Award Agreement may specify a different definition of “Termination” or “Terminate,” that will apply to such Award Agreement; provided that no such different definition shall cause the term of the Award to which it relates to extend beyond the maximum possible term for such Award contemplated under the applicable provisions of this Plan and any applicable law, regulation or stock exchange rule.

2.45    “Third-Party Service Provider” means any consultant, agent, advisor, or independent contractor who renders services to the Company, a Subsidiary, or an Affiliate that (a) are not in connection with the offer or sale of the Company’s securities in a capital raising transaction, and (b) do not directly or indirectly promote or maintain a market for the Company’s securities.

Article 3.

Administration

3.1    General.  The Committee shall be responsible for administering this Plan, subject to this Article 3 and the other provisions of this Plan.  The Committee shall be comprised, unless otherwise determined by the Board, solely of not less than two members who shall be (i) “non-employee directors” within the meaning of Rule 16b-3(b)(3) (or any successor rule) promulgated under the Exchange Act, and (ii) “independent directors,” as determined in accordance with the independence standards established by the stock exchange on which the Shares are at the time primarily traded.  The Committee may employ attorneys, consultants, accountants, agents, and other individuals, any of whom may be an Employee, and the Committee, the Company, and its officers and Directors shall be entitled to rely upon the advice, opinions, or valuations of any such individuals.  All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon 
5

the Participants, the Company, and all other interested individuals.  By accepting an Award under this Plan, each Participant agrees to all Committee determinations as described above.

3.2    Authority of the Committee.  The Committee shall have full and exclusive discretionary power to interpret the terms and the intent of this Plan and any Award Agreement or other agreement or document ancillary to or in connection with this Plan, to determine eligibility for Awards and to adopt such rules, regulations, forms, instruments, and guidelines for administering this Plan as the Committee may deem necessary or proper.  Such authority shall include, but not be limited to, selecting Award recipients, establishing all Award terms and conditions, including the terms and conditions set forth in Award Agreements and whether the terms of any exercise, vesting or restriction periods will be based upon the achievement of specific Performance Goals, granting Awards as an alternative to or as the form of payment for grants or rights earned or due under compensation plans or arrangements of the Company, construing any provision of the Plan or any Award Agreement, and, subject to Article 17, adopting modifications and amendments to this Plan or any Award Agreement, including without limitation, any that are necessary to comply with the laws of the countries and other jurisdictions in which the Company, its Affiliates, and/or its Subsidiaries operate.

3.3    Delegation.  The Committee may delegate to one or more of its members or to one or more officers of the Company, and/or its Subsidiaries and Affiliates or to one or more agents or advisors such administrative duties or powers as it may deem advisable, and the Committee or any individuals to whom it has delegated duties or powers as aforesaid may employ one or more individuals to render advice with respect to any responsibility the Committee or such individuals may have under this Plan.  The Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as can the Committee: (a) designate Employees to be recipients of Awards; (b) determine the size of any such Awards; provided, however, (i) the Committee shall not delegate such responsibilities to any such officer for Awards granted to an Employee who is considered an Insider; (ii) the resolution providing such authorization sets forth the total number of Awards such officer(s) may grant; and (iii) the officer(s) shall report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the authority delegated. Notwithstanding the foregoing, awards to Non-employee Directors shall be administered and interpreted by the Board.  

Article 4.

Shares Subject to this Plan and Maximum Awards

4.1    Number of Shares Available for Awards.

(a)    Subject to adjustment as provided in Section 4.3 herein, the maximum number of Shares that may be issued under the Plan with respect to Awards granted on or after the Effective Date (the “Share Authorization”) is the sum of: (i) one million five hundred (1,500,000) Shares, plus (ii) the number of Shares that remained available for Awards under the Plan as of December 1, 2021 (1,392,894), plus (iii) the number of Shares subject to outstanding Awards under the Plan as of December 1, 2021 that terminate, expire, or are cancelled, forfeited, exchanged, or surrendered without having been exercised, vested, or paid under the Plan (not exceeding 2,070,587 Shares).  The Shares available for issuance under this Plan may be authorized and unissued Shares or treasury Shares.

(b)    Subject to the provisions of Section 4.2, in determining the number of Shares that remain available for issuance to Participants pursuant to Awards granted under this Plan on or after January 17, 2013, the Share Authorization shall be reduced by one Share for each Share covered by an Option or Stock Appreciation Right granted on or after January 17, 2013, and the Share Authorization shall be reduced by two Shares (the “Full Value Factor”) per each Share subject to an Award, other than an Option or Stock Appreciation Right, granted on or after January 17, 2013.  If a Stock Appreciation Right is settled by the issuance of Shares, the Share Authorization shall be reduced by the number of Shares covered by the Stock Appreciation Right rather than the number of Shares issued in settlement of the Stock Appreciation Right.

(c)    Subject to adjustment as provided in Section 4.3, the maximum number of Shares of the Share Authorization that may be issued pursuant to the exercise of ISOs granted on or after the Effective Date, shall be two million eight hundred and ninety-two thousand eight hundred and ninety-four (2,892,894) Shares.
 
(d)    The maximum Grant Date value of Shares subject to Awards granted to a Non-employee Director during any Plan Year, in the Participant’s capacity as a Non-employee Director, shall not exceed $500,000 in total value.  For purposes of this limit, the value of such Awards shall be calculated based on the Grant Date fair value of such Awards for financial reporting purposes.  
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4.2    Reallocation of Shares.  To the extent that Awards terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of Shares, or are exchanged with the Committee’s permission, prior to the issuance of Shares, for Awards not involving Shares, then the Shares subject to such Award shall be available again for grant under Section 4.1(a) of this Plan; provided, however, that the number of Shares that shall again be available shall be based on the Full Value Factor if the previous Award was not an Option or Stock Appreciation Right.  If any Shares are withheld by the Company or are tendered (either actually or by attestation) by a Participant to satisfy any tax withholding obligation with respect to an Award (other than an Option or Stock Appreciation Right), then the Shares so tendered or withheld shall again be available for issuance under the Plan and correspondingly increase the total number of Shares available for issuance under Section 4.1(a) of the Plan based on the Full Value Factor. Notwithstanding anything to the contrary in this Section 4.2, the following Shares will not again become available for issuance under the Plan: (i) any Shares which would have been issued upon any exercise of an Option but for the fact that the exercise price was paid by a “net exercise” or any Shares tendered (either actually or by attestation) by a Participant in payment of the exercise price of an Option; (ii) any Shares withheld by the Company or Shares tendered (either actually or by attestation) by a Participant to satisfy any tax withholding obligation with respect to an Option or a Stock Appreciation Right (but not other Awards); (iii) Shares covered by a Stock Appreciation Right that are not issued in connection with the stock settlement upon its exercise; or (iv) Shares that are repurchased by the Company using Option exercise proceeds.

4.3    Adjustments in Authorized Shares.  In the event of any corporate event or transaction (including, but not limited to, a change in the Shares of the Company or the capitalization of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, partial or complete liquidation, stock dividend, stock split, reverse stock split, split up, spin-off, or other distribution of stock or property of the Company, combination of Shares, exchange of Shares, dividend in kind, or other like change in capital structure, number of outstanding Shares or distribution (other than normal cash dividends) to shareholders of the Company, or any similar corporate event or transaction, the Committee, in its sole discretion, in order to prevent dilution or enlargement of Participants’ rights under this Plan, shall substitute or adjust, as applicable, the number and kind of Shares that may be issued under this Plan or under particular forms of Awards, the Full Value Factor set forth in Section 4.1, the number and kind of Shares subject to outstanding Awards, the Option Price or Grant Price applicable to outstanding Awards, and other value determinations applicable to outstanding Awards.

The Committee, in its sole discretion, may also make appropriate adjustments in the terms of any Awards under this Plan to reflect such changes or distributions and to modify any other terms of outstanding Awards, including modifications of Performance Goals and changes in the length of applicable Performance Periods.  The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under this Plan.

Notwithstanding anything to the contrary in this Section 4.3, an adjustment to an Option or SAR shall be made only to the extent such adjustment complies with the requirements of Code Section 409A.

Subject to the provisions of Article 17 and notwithstanding anything else herein to the contrary, without affecting the number of Shares reserved or available hereunder, the Committee may authorize the issuance or assumption of benefits under this Plan in connection with any merger, consolidation, acquisition of property or stock, or reorganization upon such terms and conditions as it may deem appropriate (including, but not limited to, a conversion of equity awards into Awards under this Plan in a manner consistent with paragraph 53 of FASB Interpretation No. 44), subject to compliance with the rules under Code Sections 409A, 422 and 424, as and where applicable.

Article 5.

Eligibility and Participation

5.1    Eligibility.  Individuals eligible to participate in this Plan include all Employees, Directors, and Third-Party Service Providers.

5.2    Actual Participation.  Subject to the provisions of this Plan, the Committee may, from time to time, select from all eligible individuals, those individuals to whom Awards shall be granted and shall determine, in its sole discretion, the nature of, any and all terms permissible by law, and the amount of, each Award.

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Article 6.

Stock Options

6.1    Grant of Options.  Subject to the terms and provisions of this Plan, Options may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee, in its sole discretion; provided that ISOs may be granted only to eligible Employees of the Company or of any parent or subsidiary corporation (as permitted under Code Sections 422 and 424).

6.2    Award Agreement.  Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the maximum duration of the Option, the number of Shares to which the Option pertains, the conditions upon which the Option shall become vested and exercisable, including, without limitation, whether Options will vest based upon the achievement of specific Performance Goals, and such other provisions as the Committee shall determine which are not inconsistent with the terms of this Plan.  The Award Agreement also shall specify whether the Option is intended to be an ISO or a NQSO.

6.3    Option Price.  The Option Price for each grant of an Option under this Plan shall be determined by the Committee in its sole discretion and shall be specified in the Award Agreement; provided, however, the Option Price must be at least equal to one hundred percent (100%) of the FMV of the Shares as determined on the Grant Date; provided, further, however, that the Option Price must be at least equal to one hundred and ten percent (110%) of the FMV of a Share on the Grant Date with respect to any ISO issued to a Participant who, on the Grant Date, owns (as defined in Code Section 424(d)) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of its subsidiary corporation (as defined in Code Section 424(f)) (a “10% Shareholder”).

6.4    Term of Options.  Each Option granted to a Participant shall expire at such time as the Committee shall determine at the time of grant; provided, however, no Option shall be exercisable later than the day before the tenth (10th) anniversary of the Grant Date; provided, further, however, that no ISO granted to a 10% Shareholder shall be exercisable later than the day before the fifth (5th) anniversary of its Grant Date. 

6.5    Exercise of Options.  Options granted under this Article 6 shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which terms and restrictions need not be the same for each grant or for each Participant.  Notwithstanding anything in this Plan to the contrary, to the extent that the aggregate FMV of the Shares (determined as of the Grant Date of the applicable ISO) with respect to which ISOs are exercisable for the first time by a Participant during any calendar year (under all plans of the Company and its subsidiary corporations (as defined in Code Section 424(f)) exceeds $100,000, such Options shall be treated as Nonqualified Stock Options.

6.6    Payment.  Options granted under this Article 6 shall be exercised by the delivery of a notice of exercise to the Company or an agent designated by the Company in a form specified or accepted by the Committee, or by complying with any alternative procedures which may be authorized by the Committee, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares.

A condition of the issuance of the Shares as to which an Option shall be exercised shall be the payment of the Option Price.  The Option Price of any Option shall be payable to the Company in full either: (a) in cash or its equivalent; (b) by tendering (either by actual delivery or attestation) previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the Option Price (provided that except as otherwise determined by the Committee, the Shares that are tendered must have been held by the Participant for at least six (6) months (or such other period, if any, as the Committee may permit) prior to their tender to satisfy the Option Price if acquired under this Plan or any other compensation plan maintained by the Company or have been purchased on the open market); (c) by a cashless (broker-assisted) exercise; (d) by a combination of (a), (b) and/or (c); or (e) any other method approved or accepted by the Committee in its sole discretion, including by the withholding of Shares subject to the exercisable Option, which have a Fair Market Value on the date of exercise equal to the Option Price, if permitted by the Committee.

Subject to any governing rules or regulations, as soon as practicable after receipt of written notification of exercise and full payment (including satisfaction of any applicable tax withholding), the Company shall deliver to the Participant evidence of book entry Shares, or upon the Participant’s request, Share certificates in an appropriate amount based upon the number of Shares purchased under the Option(s).

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Unless otherwise determined by the Committee, all payments under all of the methods indicated above shall be paid in United States dollars.

6.7    Restrictions on Share Transferability.  The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an Option granted under this Article 6 as it may deem advisable, including, without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, or under any blue sky or state securities laws applicable to such Shares.

6.8    Termination of Employment or Service.  Each Participant’s Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the Option following the Participant’s Termination.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Options issued pursuant to this Article 6, and may reflect distinctions based on the reasons for Termination.

6.9    Notification of Disqualifying Disposition.  If any Participant shall make any disposition of Shares issued pursuant to the exercise of an ISO under the circumstances described in Code Section 421(b) (relating to certain disqualifying dispositions), such Participant shall notify the Company of such disposition within ten (10) calendar days thereof.

Article 7.

Stock Appreciation Rights

7.1    Grant of SARs.  Subject to the terms and conditions of this Plan, SARs may be granted to Participants at any time and from time to time as shall be determined by the Committee.

Subject to the terms and conditions of this Plan, the Committee shall have complete discretion in determining the number of SARs granted to each Participant and, consistent with the provisions of this Plan, in determining the terms and conditions pertaining to such SARs, including, without limitation, whether SARs will vest based upon the achievement of specific Performance Goals.

The Grant Price for each grant of a SAR shall be determined by the Committee and shall be specified in the Award Agreement; provided, however, the Grant Price on the Grant Date must be at least equal to one hundred percent (100%) of the FMV of the Shares as determined on the Grant Date.

7.2    SAR Agreement.  Each SAR Award shall be evidenced by an Award Agreement that shall specify the Grant Price, the term of the SAR, and such other provisions as the Committee shall determine.

7.3    Term of SAR.  The term of a SAR granted under this Plan shall be determined by the Committee, in its sole discretion, and no SAR shall be exercisable later than the tenth (10th) anniversary date of its Grant Date.

7.4    Exercise of SARs.  SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion, imposes.

7.5    Settlement of SARs.  Upon the exercise of a SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by multiplying:

(a)    The excess of the Fair Market Value of a Share on the date of exercise over the Grant Price; by

(b)    The number of Shares with respect to which the SAR is exercised.

At the discretion of the Committee, the payment upon SAR exercise may be in cash, Shares, or any combination thereof, or in any other manner approved by the Committee in its sole discretion.  The Committee’s determination regarding the form of SAR payout may be set forth in the Award Agreement pertaining to the grant of the SAR.

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7.6    Termination of Employment or Service.  Each Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the SAR following the Participant’s Termination.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with Participants, need not be uniform among all SARs issued pursuant to this Plan, and may reflect distinctions based on the reasons for Termination.

7.7    Other Restrictions.  The Committee shall impose such other conditions and/or restrictions on any Shares received upon exercise of a SAR granted pursuant to this Plan as it may deem advisable or desirable.  These restrictions may include, but shall not be limited to, a requirement that the Participant hold the Shares received upon exercise of a SAR for a specified period of time.

Article 8.

Restricted Stock and Restricted Stock Units

8.1    Grant of Restricted Stock or Restricted Stock Units.  Subject to the terms and provisions of this Plan or an Award Agreement, the Committee, at any time and from time to time, may grant Shares of Restricted Stock and/or Restricted Stock Units to Participants in such amounts as the Committee shall determine.  Restricted Stock Units shall be similar to Restricted Stock except that no Shares are actually awarded to the Participant on the Grant Date.

8.2    Restricted Stock or Restricted Stock Unit Agreement.  Each Restricted Stock and/or Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units granted, and such other provisions as the Committee shall determine.

8.3    Other Restrictions.  The Committee shall impose such other conditions and/or restrictions on any Shares of Restricted Stock or Restricted Stock Units granted pursuant to this Plan as it may deem advisable, including, without limitation, a requirement that Participants pay a stipulated purchase price for each Share of Restricted Stock or each Restricted Stock Unit, whether Shares of Restricted Stock and/or Restricted Stock Units will vest based upon the achievement of specific Performance Goals, time-based restrictions on vesting following the attainment of the Performance Goals, time-based restrictions, and/or restrictions under applicable laws or under the requirements of any stock exchange or market upon which such Shares are listed or traded, or holding requirements or sale restrictions placed on the Shares by the Company upon vesting of such Restricted Stock or Restricted Stock Units.

To the extent deemed appropriate by the Committee, the Company may retain the certificates representing Shares of Restricted Stock in the Company’s possession until such time as all conditions and/or restrictions applicable to such Shares have been satisfied or lapse.

Except as otherwise provided in this Article 8, Shares of Restricted Stock covered by each Restricted Stock Award shall become freely transferable by the Participant after all conditions and restrictions applicable to such Shares have been satisfied or lapse (including satisfaction of any applicable tax withholding obligations), and Restricted Stock Units shall be paid in cash, Shares, or a combination of cash and Shares as the Committee, in its sole discretion shall determine.

8.4    Certificate Legend.  In addition to any legends placed on certificates pursuant to Section 8.3, each certificate representing Shares of Restricted Stock granted pursuant to this Plan may bear a legend such as the following or as otherwise determined by the Committee in its sole discretion:

The sale or transfer of the common shares of The Scotts Miracle-Gro Company represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set forth in The Scotts Miracle-Gro Company Long-Term Incentive Plan, and in the associated Award Agreement.  A copy of this Plan and such Award Agreement will be provided by The Scotts Miracle-Gro Company, without charge, within five (5) days after receipt of a written request therefor.

8.5    Voting Rights.  Unless otherwise determined by the Committee and set forth in a Participant’s Award Agreement, to the extent permitted or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock granted hereunder may be granted the right to exercise full voting rights with respect to those Shares during the Period of Restriction.  A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder.

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8.6    Termination of Employment or Service.  Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain Restricted Stock and/or Restricted Stock Units following the Participant’s Termination.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Shares of Restricted Stock or Restricted Stock Units issued pursuant to this Plan, and may reflect distinctions based on the reasons for Termination.

8.7    Section 83(b) Election.  The Committee may provide in an Award Agreement that the Award of Restricted Stock is conditioned upon the Participant making or refraining from making an election with respect to the Award under Code Section 83(b).  If a Participant makes an election pursuant to Code Section 83(b) concerning a Restricted Stock Award, the Participant shall be required to file promptly a copy of such election with the Company.

Article 9.

Performance Units/Performance Shares

9.1    Grant of Performance Units/Performance Shares.  Subject to the terms and provisions of this Plan, the Committee, at any time and from time to time, may grant Performance Units and/or Performance Shares to Participants in such amounts and upon such terms as the Committee shall determine.

9.2    Value of Performance Units/Performance Shares.  Each Performance Unit shall have an initial value that is established by the Committee at the Grant Date.  Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the Grant Date.  The Committee shall set Performance Goals in its discretion which, depending on the extent to which they are met, will determine the value and/or number of Performance Units/Performance Shares that will be paid out to the Participant.

9.3    Earning of Performance Units/Performance Shares.  Subject to the terms of this Plan, after the applicable Performance Period has ended (unless otherwise specified in the Award Agreement), the holder of Performance Units/Performance Shares shall be entitled to receive payout on the value and number of Performance Units/Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding Performance Goals have been achieved.

9.4    Form and Timing of Payment of Performance Units/Performance Shares.  Payment of earned Performance Units/Performance Shares shall be as determined by the Committee and as evidenced in the Award Agreement.  Subject to the terms of this Plan, the Committee, in its sole discretion, may pay earned Performance Units/Performance Shares in the form of cash or in Shares (or in a combination thereof) equal to the value of the earned Performance Units/Performance Shares at the close of the applicable Performance Period, or as soon as practicable after the end of the Performance Period (unless otherwise specified in the Award Agreement).  Any Shares may be granted subject to any restrictions deemed appropriate by the Committee.  The determination of the Committee with respect to the form of payout of such Awards shall be set forth in the Award Agreement pertaining to the grant of the Award.

9.5    Termination of Employment or Service.  Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain Performance Units and/or Performance Shares following the Participant’s Termination.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Awards of Performance Units or Performance Shares issued pursuant to this Plan, and may reflect distinctions based on the reasons for Termination.

9.6    Performance Units and Performance Shares shall be transferred or paid to the Participant as determined by the Committee in the applicable Award Agreement, consistent with the requirements of Code Section 409A. 

Article 10.

Other Stock-Based Awards

10.1    Other Stock-Based Awards.  The Committee may grant other types of equity-based or equity-related Awards not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted Shares) in such amounts and subject to such terms and conditions, as the Committee shall determine.  Such Awards may involve the transfer of actual Shares to Participants, or payment in cash or otherwise of amounts based on the value of Shares and may include, without limitation, Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United States.
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10.2    Value of Other Stock-Based Awards.  Each Other Stock-Based Award shall be expressed in terms of Shares or units based on Shares, as determined by the Committee.  The Committee may establish Performance Goals in its discretion applicable to Other Stock-Based Awards.  If the Committee exercises its discretion to establish Performance Goals, the number and/or value of Other Stock-Based Awards that will be paid out to the Participant will depend on the extent to which the Performance Goals are met.

10.3    Payment of Other Stock-Based Awards.  Payment, if any, with respect to an Other Stock-Based Award shall be made in accordance with the terms of the Award, in cash or Shares as the Committee determines and as specified in the Award Agreement.

10.4    Termination of Employment or Service.  The Committee shall determine the extent to which the Participant shall have the right to receive Other Stock-Based Awards following the Participant’s Termination.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in an agreement entered into with each Participant, need not be uniform among all Awards of Other Stock-Based Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for Termination.

Article 11.

Transferability of Awards

11.1    Transferability.  Except as provided in Section 11.2 below, during a Participant’s lifetime, his or her Awards shall be exercisable only by the Participant or the Participant’s legal representative.  Awards shall not be transferable other than by will or the laws of descent and distribution; no Awards shall be subject, in whole or in part, to attachment, execution, or levy of any kind; and any purported transfer in violation hereof shall be null and void.  The Committee may establish such procedures as it deems appropriate for a Participant to designate a beneficiary to whom any amounts payable or Shares issuable in the event of, or following, the Participant’s death, may be provided.

11.2    Committee Action.  The Committee may, in its discretion, determine that notwithstanding Section 11.1, any or all Awards (other than ISOs) shall be transferable to and exercisable by such transferees, and subject to such terms and conditions, as the Committee may deem appropriate; provided, however, no Award may be transferred for value (as defined in the General Instructions to Form S-8).

Article 12.

Non-employee Director Awards

The Board shall determine all Awards to Non-employee Directors.  The terms and conditions of any grant to any such Non-employee Director shall be set forth in an Award Agreement.

Article 13.

Dividends or Dividend Equivalents

Any Participant selected by the Committee may be granted dividends or Dividend Equivalents based on the dividends declared on Shares that are subject to any Award (other than Options or SARs), to be credited as of dividend payment dates, during the period between the Grant Date and the date the Award becomes payable or as otherwise provided in an Award Agreement, as determined by the Committee; provided, however, that dividends or Dividend Equivalents on Shares shall be payable only when and to the extent that the underlying Awards vest and become payable.  Such dividends and Dividend Equivalents shall be converted to cash or additional Shares by such formula and at such time and subject to such limitations as may be determined by the Committee.

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Article 14.

Beneficiary Designation

Each Participant under this Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Plan is to be paid in case of his death before he receives any or all of such benefit.  Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime.  In the absence of any such beneficiary designation, benefits remaining unpaid or rights remaining unexercised at the Participant’s death shall be paid to or exercised by the Participant’s spouse, executor, administrator, or legal representative in that order.

Article 15.

Rights of Participants

15.1    Employment or Service.  Nothing in this Plan or an Award Agreement shall interfere with or limit in any way the right of the Company, its Affiliates, and/or its Subsidiaries, to Terminate any Participant at any time or for any reason not prohibited by law, nor confer upon any Participant any right to continue his employment or service as a Director or Third-Party Service Provider for any specified period of time.

Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company, its Affiliates, and/or its Subsidiaries and, accordingly, subject to Articles 3 and 17, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company, its Affiliates, and/or its Subsidiaries.

15.2    Participation.  No individual shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award.

15.3    Rights as a Shareholder.  Except as otherwise provided herein, a Participant shall have none of the rights of a shareholder with respect to Shares covered by any Award until the Participant becomes the record holder of such Shares.

Article 16.

Change in Control 

16.1    Accelerated Vesting and Settlement.  Subject to Section 16.2, on the date of any Change in Control:

(a)    Each Option and SAR (other than Options and SARs of Non-employee Directors) outstanding on the date of a Change in Control (whether or not exercisable) will be cancelled in exchange (i) for cash equal to the excess of the Change in Control Price over the Option Price or Grant Price, as applicable, associated with the cancelled Option or SAR or, (ii) at the Committee’s discretion, for whole Shares with a Fair Market Value equal to the excess of the Change in Control Price over the Option Price or Grant Price, as applicable, associated with the cancelled Option or SAR and the Fair Market Value of any fractional Share will be distributed in cash.  However, the Committee, in its sole discretion, may offer the holders of the Options or SARs to be cancelled a reasonable opportunity (not longer than 15 days beginning on the date of the Change in Control) to exercise all their outstanding Options and SARs (whether or not otherwise then exercisable);

(b)    Except as otherwise provided in an Award Agreement, all performance goals associated with Awards for which Performance Goals have been established will be deemed to have been met on the date of the Change in Control, all Performance Periods accelerated to the date of the Change in Control and all outstanding Awards for which Performance Goals have been established (including those subject to the acceleration described in this subsection) will be distributed in a single lump sum cash payment within thirty (30) days following such Change in Control; and

(c)    All other then-outstanding Awards whose exercisability or vesting depends merely on the satisfaction of a service obligation by a Participant to the Company, Subsidiary, or Affiliate (“Service Award”) shall vest in full and be free of restrictions related to the vesting of such Awards.  All Service Awards whose vesting is so accelerated will be distributed, if not already held by a Participant and to the extent applicable, (i) in a single lump-sum 
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cash payment within thirty (30) days following such Change in Control based on the Change in Control Price or, (ii) at the Committee’s discretion, in the form of whole Shares based on the Change in Control Price.

16.2    Alternative Awards.  Section 16.1 will not apply to the extent that the Committee reasonably concludes in good faith before the Change in Control occurs that Awards will be honored or assumed, or new rights will be substituted (collectively, “Alternative Awards”), by the Employee’s employer (or the parent or a subsidiary of that employer), or (if the Company is the surviving company) that the Awards in effect immediately prior to the Change in Control shall continue without change following the Change in Control (“Continued Award”), provided that any Alternative Award or Continued Award must, as applicable:

(a)    Be based on stock that is (or, within 60 days of the Change in Control, will be) traded on an established securities market;

(b)    Provide the Employee with the rights and entitlements substantially equivalent to or better than the rights, terms and conditions of each Award for which it is substituted, including an identical or better exercise or vesting schedule and identical or, in the case of an Award that is not subject to Code Section 409A, better timing and methods of payment;

(c)    Have substantially equivalent economic value to the Award (determined at the time of the Change in Control) for which it is substituted; and

(d)    Provide that, if the Employee is involuntarily Terminated without Cause or the Employee constructively Terminates within twenty-four (24) months following the Change in Control, any conditions on the Employee’s rights under, or any restrictions on transfer or exercisability applicable to, each Alternative Award or Continued Award will be waived or lapse.  For purposes of this section, a constructive Termination means a Termination by an Employee following a material reduction in the Employee’s compensation or job responsibilities (when compared to the Employee’s compensation and job responsibilities on the date of the Change in Control) or the relocation of the Employee’s principal place of employment to a location at least fifty (50) miles from his or her principal place of employment on the date of the Change in Control (or other location to which the Employee has been reassigned with his or her written consent), in each case without the Employee’s written consent.

Notwithstanding anything herein to the contrary, no Alternative Award shall be made with respect to an Option or SAR if it would cause the Option or SAR to fail to comply with the requirements of Code Section 409A.

16.3    Non-employee Directors’ Awards.  Upon a Change in Control, each outstanding:

(a)    Option or SAR held by a Non-employee Director will be cancelled unless (i) the Shares continues to be traded on an established securities market after the Change in Control or (ii) the Non-employee Director continues to be a Board member after the Change in Control.  In the situations just described, the Options or SARs held by a Non-employee Director will be unaffected by a Change in Control.  Any Options and SARs held by a Non-employee Director to be cancelled under the next preceding sentence will be exchanged (iii) for cash equal to the excess of the Change in Control Price over the Option Price or Grant Price, as applicable, associated with the cancelled Option or SAR held by a Non-employee Director or, (iv) at the Board’s discretion, for whole Shares with a Fair Market Value equal to the excess of the Change in Control Price over the Option Price or Grant Price, as applicable, associated with the cancelled Option or SAR held by a Non-employee Director and the Fair Market Value of any fractional Share will be distributed in cash.  However, the Board, in its sole discretion, may offer Non-employee Directors holding Options or SARs to be cancelled a reasonable opportunity (not longer than 15 days beginning on the date of the Change in Control) to exercise all their outstanding Options and SARs (whether or not otherwise then exercisable).

(b)    Restricted Stock or Restricted Stock Unit held by a Non-employee Director will be settled within thirty (30) days following such Change in Control for a lump sum cash payment equal to the Change in Control Price.

(c)    All other types of Awards held by a Non-employee Director will be settled within thirty (30) days following such Change in Control for a lump sum cash payment equal to the Change in Control Price less any amount the Non-employee Director would be required to pay in order for the Award to be exercised or settled, other than any such amount related to taxes.

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Article 17.

Amendment, Modification, Suspension, and Termination

17.1    Amendment, Modification, Suspension, and Termination.  Subject to Section 17.3, the Committee may, at any time and from time to time, alter, amend, modify, suspend, or terminate this Plan and any Award Agreement in whole or in part; provided, however, that except in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, or exchange of Shares), the Company shall not, without the prior approval of the Company’s shareholders, (i) amend the terms of outstanding Options or SARs to reduce the exercise price of such outstanding Options or SARs, (ii) cancel outstanding Options or SARs in exchange for Options or SARs with an exercise price that is less than the exercise price of the original Options or SARs, or (iii) cancel outstanding Options or SARs with an exercise price above the current stock price in exchange for cash or other securities.  No material amendment of this Plan shall be made without shareholder approval if shareholder approval is required by law, regulation, or stock exchange rule. 

17.2    Adjustment of Awards Upon the Occurrence of Certain Unusual and Infrequently Occurring Events.  The Committee may make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or infrequently occurring events (including, without limitation, the events described in Section 4.3 hereof) affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan.  The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under this Plan.  Notwithstanding anything to the contrary in this Section 17.2, an adjustment to an Option or SAR shall be made only to the extent such adjustment complies with the requirements of Code Section 409A.

17.3    Awards Previously Granted.  Notwithstanding any other provision of this Plan to the contrary (other than Section 17.4), no termination, amendment, suspension, or modification of this Plan or an Award Agreement shall adversely affect in any material way any Award previously granted under this Plan, without the written consent of the Participant holding such Award.

17.4    Amendment to Conform to Law.  Notwithstanding any other provision of this Plan to the contrary, the Board may amend the Plan or an Award Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or an Award Agreement to any present or future law relating to plans of this or similar nature (including, but not limited to, Code Section 409A), and to the administrative regulations and rulings promulgated thereunder.  By accepting an Award under this Plan, each Participant agrees to any amendment made pursuant to this Section 17.4 to any Award granted under the Plan without further consideration or action.

Article 18.

Tax Withholding

The Company has the right to withhold from any payment of cash or Shares to a Participant or other person under the Plan an amount sufficient to cover any required withholding taxes, including the Participant’s social security and Medicare taxes (FICA) and federal, state, local income tax or such other applicable taxes (“Taxes”) with respect to an Award. The Company may require the payment of any Taxes before issuing any Shares pursuant to an Award. The Committee may, if it deems appropriate in the case of a Participant, withhold such Taxes through a reduction of the number of Shares issued to such Participant, or allow the Participant to elect to cover all or any part of such withholding for Taxes, through a reduction of the number of Shares issued to the Participant or a subsequent return to the Company of Shares held by the Participant, in each case valued in the same manner as used in computing the withholding taxes under the applicable laws.

Article 19.

Successors

All obligations of the Company under this Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

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Article 20.

General Provisions

20.1    Forfeiture Events.

(a)    The Committee may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award.  Such events may include, but shall not be limited to, Termination for Cause, termination of the Participant’s provision of services to the Company, Affiliate, and/or Subsidiary, violation of material Company, Affiliate, and/or Subsidiary policies, breach of noncompetition, confidentiality, or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business or reputation of the Company, its Affiliates, and/or its Subsidiaries.

(b)    If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, if the Participant knowingly or grossly negligently engaged in the misconduct, or knowingly or grossly negligently failed to prevent the misconduct, or if the Participant is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, the Participant shall reimburse the Company the amount of any payment in settlement of an Award earned or accrued during the twelve (12)-month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurs) of the financial document embodying such financial reporting requirement.

20.2    Legend.  The certificates for Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer of such Shares.

20.3    Gender and Number.  Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the plural shall include the singular, and the singular shall include the plural.

20.4    Severability.  In the event any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Plan, and this Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

20.5    Requirements of Law.  The granting of Awards and the issuance of Shares under this Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or stock exchange as may be required.

20.6    Delivery of Title.  The Company shall have no obligation to issue or deliver evidence of title for Shares issued under this Plan prior to:

(a)    Obtaining any approvals from governmental agencies that the Company determines are necessary; and

(b)    Completion of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any governmental body that the Company determines to be necessary.

20.7    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, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

20.8    Investment Representations.  The Committee may require any individual receiving Shares pursuant to an Award under this Plan to represent and warrant in writing that the individual is acquiring the Shares for investment and without any present intention to sell or distribute such Shares.

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20.9    Employees Based Outside of the United States.  Notwithstanding any provision of this Plan to the contrary, in order to comply with the laws in other countries in which the Company, its Affiliates, and/or its Subsidiaries operate or have Employees, Directors, or Third-Party Service Providers, the Committee, in its sole discretion, shall have the power and authority to:

(a)    Determine which Affiliates and Subsidiaries shall be covered by this Plan;

(b)    Determine which Employees, Directors, and/or Third-Party Service Providers outside the United States are eligible to participate in this Plan;

(c)    Modify the terms and conditions of any Award granted to Employees and/or Third-Party Service Providers outside the United States to comply with applicable foreign laws;

(d)    Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable.  Any subplans and modifications to Plan terms and procedures established under this Section 20.9 by the Committee shall be attached to this Plan document as appendices; and

(e)    Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals.

Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate applicable law.

20.10    Uncertificated Shares.  To the extent that this Plan provides for issuance of certificates to reflect the transfer of Shares, the transfer of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange.

20.11    Unfunded Plan.  Participants shall have no right, title, or interest whatsoever in or to any investments that the Company, and/or its Subsidiaries, and/or its Affiliates may make to aid it in meeting its obligations under this Plan.  Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative, or any other individual.  To the extent that any individual acquires a right to receive payments from the Company, its Subsidiaries, and/or its Affiliates under this Plan, such right shall be no greater than the right of an unsecured general creditor of the Company, a Subsidiary, or an Affiliate, as the case may be.  All payments to be made hereunder shall be paid from the general funds of the Company, a Subsidiary, or an Affiliate, as the case may be and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in this Plan.

20.12    No Fractional Shares.  No fractional Shares shall be issued or delivered pursuant to this Plan or any Award.  The Committee shall determine whether cash, Awards, or other property shall be issued or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be forfeited or otherwise eliminated.

20.13    Retirement and Welfare Plans.  Neither Awards made under this Plan nor Shares or cash paid pursuant to such Awards may be included as “compensation” for purposes of computing the benefits payable to any Participant under the Company’s or any Subsidiary’s or Affiliate’s retirement plans (both qualified and non-qualified) or welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Participant’s benefit.

20.14    Deferred Compensation.  This Plan is intended to comply with the requirements of Code Section 409A, to the extent applicable.  All Awards shall be construed and administered such that the Award either (i) qualifies for an exemption from the requirements of Code Section 409A or (ii) satisfies the requirements of Code Section 409A.  If an Award is subject to Code Section 409A, unless the Agreement specifically provides otherwise:  (i) distributions shall only be made in a manner and upon an event permitted under Code Section 409A, (ii) payments to be made upon a termination of employment shall only be made upon a “separation from service” under Code Section 409A, (iii) payments to be made upon a Change in Control shall only be made upon a “change of control event” under Code Section 409A, (iv) each payment shall be treated as a separate payment for purposes of Code Section 409A, and (v) in no event shall a Participant, directly or indirectly, designate the calendar year in which a distribution is made except in accordance with Code Section 409A.  Any Award granted under this 
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Plan that is subject to Code Section 409A and that is to be distributed to a “specified employee” (as defined below) upon Termination shall be administered so that any distribution with respect to such Award shall be postponed for six months following the date of the Participant’s Termination, if required by Code Section 409A.  If a distribution is delayed pursuant to Code Section 409A, the distribution shall be paid within 30 days after the end of the six-month period.  If the Participant dies during such six-month period, any postponed amounts shall be paid within 90 days of the Participant’s death.  The determination of “specified employees,” including the number and identity of persons considered “specified employees” and the identification date, shall be made by the Committee or its delegate each year in accordance with Code Section 416(i) and the “specified employee” requirements of Code Section 409A. In no event shall the Company have any responsibility or liability if any Award does not meet the applicable requirements of Code Section 409A.  Although the Company intends to administer the Plan to prevent taxation under Code Section 409A, the Company does not represent or warrant that the Plan or any Award complies with any provision of federal, state, local or other tax law.

20.15    Company Policies.  All Awards granted under the Plan shall be subject to any applicable Company clawback or recoupment policies, share trading policies and other policies that may be implemented by the Company from time to time.

20.16    Nonexclusivity of this Plan.  The adoption of this Plan shall not be construed as creating any limitations on the power of the Board or Committee to adopt such other compensation arrangements as it may deem desirable for any Participant.

20.17    No Constraint on Corporate Action.  Nothing in this Plan shall be construed to: (i) limit, impair, or otherwise affect the Company’s or a Subsidiary’s or an Affiliate’s right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or, (ii) limit the right or power of the Company or a Subsidiary or an Affiliate to take any action which such entity deems to be necessary or appropriate.

20.18    Governing Law.  The Plan and each Award Agreement shall be governed by the laws of the State of Ohio, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan to the substantive law of another jurisdiction.  Unless otherwise provided in the Award Agreement, recipients of an Award under this Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Ohio, to resolve any and all issues that may arise out of or relate to this Plan or any related Award Agreement.

20.19    Indemnification.  Subject to requirements of Ohio law, each individual who is or shall have been a member of the Board, or a Committee appointed by the Board, or an officer of the Company to whom authority was delegated in accordance with Article 3, shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under this Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his/her own behalf, unless such loss, cost, liability, or expense is a result of his/her own willful misconduct or except as expressly provided by statute.

The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such individuals may be entitled under the Company’s Articles of Incorporation or Code of Regulations, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

20.20    Controlling Language.  Unless otherwise specified herein, in the event of a conflict between the terms of the Plan and the terms of an Award Agreement, the terms of the Plan shall control.

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