Document:

EX-10.1

 Exhibit 10.1 

$1,000,000,000 
 Kinetik Holdings
LP 
 5.875% Sustainability-Linked Senior Notes due 2030 

Purchase Agreement 

June 1, 2022 
 J.P. Morgan
Securities LLC 
 As Representative of the 
 several Initial
Purchasers listed 
 in Schedule 1 hereto 
 c/o J.P.
Morgan Securities LLC 
 383 Madison Avenue 
 New York, New York
10179 
 Ladies and Gentlemen: 
 Kinetik
Holdings LP (formerly known as Altus Midstream LP), a Delaware limited partnership (the “Company”), proposes to issue and sell to the several initial purchasers listed in Schedule 1 hereto (the “Initial
Purchasers”), for whom you are acting as representative (the “Representative”), $1,000,000,000 principal amount of its 5.875% Sustainability-Linked Senior Notes due 2030 (the “Securities”). The Securities
will be issued pursuant to an Indenture to be dated as of June 8, 2022 (the “Indenture”), among the Company, Kinetik Holdings Inc. (formerly known as Altus Midstream Company) (the “Parent Guarantor”) and U.S.
Bank Trust Company, National Association, as trustee (the “Trustee”), and will be guaranteed on an unsecured senior basis by the Parent Guarantor (the “Guarantee”). 

The Company and the Parent Guarantor hereby confirm their agreement with the several Initial Purchasers concerning the purchase and resale of the Securities,
as follows: 
 1.    Offering Memorandum and Transaction Information. 

The Securities will be sold to the Initial Purchasers without being registered under the Securities Act of 1933, as amended (the
“Securities Act”), in reliance upon an exemption therefrom. The Company and the Parent 

 
Guarantor have prepared a preliminary offering memorandum dated June 1, 2022 (the “Preliminary Offering Memorandum”) and will prepare an offering memorandum dated the date
hereof (the “Offering Memorandum”) setting forth information concerning the Company, the Parent Guarantor and the Securities. Copies of the Preliminary Offering Memorandum have been, and copies of the Offering Memorandum will be,
delivered by the Company to the Initial Purchasers pursuant to the terms of this purchase agreement (the “Agreement”). The Company hereby confirms that it has authorized the use of the Preliminary Offering Memorandum, the other Time
of Sale Information (as defined below) and the Offering Memorandum in connection with the offering and resale of the Securities by the Initial Purchasers in the manner contemplated by this Agreement. References herein to the Preliminary Offering
Memorandum, the Time of Sale Information and the Offering Memorandum shall be deemed to refer to and include any document incorporated by reference therein and any reference to “amend,” “amendment” or “supplement” with
respect to the Preliminary Offering Memorandum or the Offering Memorandum shall be deemed to refer to and include any documents filed after such date and incorporated by reference therein. Capitalized terms used but not defined herein shall have the
meanings given to such terms in the Preliminary Offering Memorandum. 
 At or prior to the time when sales of the Securities were first made
(the “Time of Sale”), the Company had prepared the following information (collectively, the “Time of Sale Information”): the Preliminary Offering Memorandum, as supplemented and amended by the written communications
listed on Annex A hereto. 
 The Company intends to use the net proceeds of the offering of the Securities, together with cash on hand and
borrowings under the New Term Loan Credit Facility, to repay all outstanding borrowings under its existing credit facilities and to pay fees and expenses related to the offering and the foregoing transactions (the “Transactions”). 

2.    Purchase and Resale of the Securities. 

(a)    The Company agrees to issue and sell the Securities to the several Initial Purchasers as provided in this Agreement,
and each Initial Purchaser, on the basis of the representations, warranties and agreements set forth herein and subject to the conditions set forth herein, agrees, severally and not jointly, to purchase from the Company the respective principal
amount of Securities set forth opposite such Initial Purchaser’s name in Schedule 1 hereto at a price equal to 98.713% of the principal amount of the Securities, plus accrued interest, if any, from June 8, 2022 to the Closing Date.
The Company will not be obligated to deliver any of the Securities except upon payment for all the Securities to be purchased as provided herein. 

 (b)    The Company understands that the Initial Purchasers intend to
offer the Securities for resale on the terms set forth in the Time of Sale Information. Each Initial Purchaser, severally and not jointly, represents, warrants and agrees that: 

(i)    it is a qualified institutional buyer within the meaning of Rule 144A under the Securities Act (a
“QIB”) and an accredited investor within the meaning of Rule 501(a) of Regulation D under the Securities Act (“Regulation D”); 

(ii)    it has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or
sell, the Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act;
and 
 (iii)    it has not solicited offers for, or offered or sold, and will not solicit offers for, or
offer or sell, the Securities as part of their initial offering except: 
 (A)    to persons whom it
reasonably believes to be QIBs in transactions pursuant to Rule 144A under the Securities Act (“Rule 144A”) and in connection with each such sale, it has taken or will take reasonable steps to ensure that the purchaser of the
Securities is aware that such sale is being made in reliance on Rule 144A; or 
 (B)    in accordance
with the restrictions set forth in Annex C hereto. 
 (c)    Each Initial Purchaser acknowledges and agrees that the
Company and, for purposes of the “no registration” opinions to be delivered to the Initial Purchasers pursuant to Sections 6(f) and 6(g), counsel for the Company and counsel for the Initial Purchasers, respectively, may rely upon the
accuracy of the representations and warranties of the Initial Purchasers, and compliance by the Initial Purchasers with their agreements, contained in paragraph (b) above (including Annex C hereto), and each Initial Purchaser hereby consents to
such reliance. 
 (d)    The Company acknowledges and agrees that the Initial Purchasers may offer and sell Securities
to or through any affiliate of an Initial Purchaser and that any such affiliate may offer and sell Securities purchased by it to or through any Initial Purchaser. 

(e)    Payment for and delivery of the Securities will be made at the offices of Latham & Watkins LLP, 811 Main
Street, Suite 3700, Houston, Texas at 10:00 A.M., New York City time, on June 8, 2022, or at such other time or place on the same or such other date, not later than the fifth business day 

 
thereafter, as the Representative and the Company may agree upon in writing. The time and date of such payment and delivery is referred to herein as the “Closing Date.” 

(f)    Payment for the Securities shall be made by wire transfer in immediately available funds to the account(s)
specified by the Company to the Representative against delivery to the nominee of The Depository Trust Company (“DTC”), for the account of the Initial Purchasers, of one or more global notes representing the Securities
(collectively, the “Global Note”), with any transfer taxes payable in connection with the sale of the Securities duly paid by the Company. The Global Note will be made available for inspection by the Representative not later than
1:00 P.M., New York City time, on the business day prior to the Closing Date. 
 (g)    The Company and the Parent
Guarantor acknowledge and agree that each Initial Purchaser is acting solely in the capacity of an arm’s length contractual counterparty to the Company and the Parent Guarantor with respect to the offering of Securities contemplated hereby
(including in connection with determining the terms of the offering) and not as a financial advisor or a fiduciary to, or an agent of, the Company, the Parent Guarantor or any other person. Additionally, neither the Representative nor any other
Initial Purchaser is advising the Company, the Parent Guarantor or any other person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction. The Company and the Parent Guarantor shall consult with their own advisors
concerning such matters and shall be responsible for making their own independent investigation and appraisal of the transactions contemplated hereby, and the Initial Purchasers shall have no responsibility or liability to the Company or the Parent
Guarantor with respect thereto. Any review by the Representative or any Initial Purchaser of the Company, the Parent Guarantor, and the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the
benefit of the Representative or such Initial Purchaser, as the case may be, and shall not be on behalf of the Company, the Parent Guarantor or any other person. 

(h)    The Company and the Parent Guarantor acknowledge and agree that the Representative, Morgan Stanley & Co.
LLC, Credit Suisse Securities (USA) LLC, Barclays Capital Inc. (together with the Representative, the “Structuring Agents”) have been engaged by the Company as sustainability-linked bond structuring agents and in that capacity solely as
independent contractors to provide services in connection with the Company’s establishment of a sustainability-linked financing framework. In rendering such services, the Structuring Agents are acting solely on an arm’s length basis in
connection with such role and not as a financial advisor or a fiduciary to the Company or any other person. The Structuring Agents make no assurances as to (i) whether any potential sustainability-linked financing issuance will meet investor
criteria or expectations with regard to environmental impact and sustainability performance for any investors or (ii) whether a second party opinion provider 

 
will determine that the characteristics of the Securities, including their sustainability criteria, meet any industry standards for sustainability bond issuance (or whether the Company will
otherwise be satisfied with any such second party opinion). 
 3.    Representations and Warranties of the Company
and the Parent Guarantor. The Company and the Parent Guarantor jointly and severally represent and warrant to each Initial Purchaser that: 

(a)    Preliminary Offering Memorandum, Time of Sale Information and Offering Memorandum. The Preliminary Offering
Memorandum, as of its date, did not, the Time of Sale Information, at the Time of Sale, did not, and at the Closing Date, will not, and the Offering Memorandum, in the form first used by the Initial Purchasers to confirm sales of the Securities and
as of the Closing Date, will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided that the Company and the Parent Guarantor make no representation or warranty with respect to any statements or omissions made in reliance upon and in conformity with information relating to any Initial Purchaser furnished to the
Company in writing by such Initial Purchaser through the Representative expressly for use in the Preliminary Offering Memorandum, the Time of Sale Information or the Offering Memorandum. 

(b)    Additional Written Communications. The Company and the Parent Guarantor (including their agents and
representatives, other than the Initial Purchasers in their capacity as such) have not prepared, made, used, authorized, approved or referred to and will not prepare, make, use, authorize, approve or refer to any written communication that
constitutes an offer to sell or solicitation of an offer to buy the Securities (each such communication by the Company and the Parent Guarantor or their agents and representatives (other than a communication referred to in clauses (i) and (ii)
below) an “Issuer Written Communication”) other than (i) the Preliminary Offering Memorandum, (ii) the Offering Memorandum, (iii) the documents listed on Annex A hereto, including a term sheet substantially in the
form of Annex B hereto, which constitute part of the Time of Sale Information, and (iv) any electronic road show or other written communications, in each case used in accordance with Section 4(c) hereof. Each such Issuer Written
Communication, when taken together with the Time of Sale Information at the Time of Sale, did not, and at the Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading; provided that the Company and the Parent Guarantor make no representation or warranty with respect to any statements or omissions made in each
such Issuer Written Communication in reliance upon and in conformity with information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representative expressly for use in any Issuer Written
Communication. 

 (c)    Incorporated Documents. The documents incorporated by
reference in each of the Time of Sale Information and the Offering Memorandum, when they were filed with the Commission, conformed or will conform, as the case may be, in all material respects to the requirements of the Exchange Act, and the rules
and regulations of the Commission thereunder, and did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. 
 (d)    Financial Statements (Parent Guarantor).
The financial statements and the related notes thereto of the Parent Guarantor included or incorporated by reference in each of the Time of Sale Information and the Offering Memorandum present fairly the financial position of the Parent
Guarantor and its subsidiaries as of the dates indicated and the results of their operations and the changes in their cash flows for the periods specified; such financial statements have been prepared in conformity with generally accepted accounting
principles in the United States (“GAAP”) applied on a consistent basis throughout the periods covered thereby; the other financial information of the Parent Guarantor included or incorporated by reference in each of the Time of Sale
Information and the Offering Memorandum has been derived from the accounting records of the Parent Guarantor and its subsidiaries and presents fairly the information shown thereby. 

(e)    Financial Statements (BCP). The financial statements and the related notes thereto of BCP Raptor Holdco, LP,
a Delaware limited partnership (“BCP”) included or incorporated by reference in each of the Time of Sale Information and the Offering Memorandum present fairly the financial position of BCP and its respective subsidiaries as of the
dates indicated and the results of their operations and the changes in their cash flows for the periods specified; such financial statements have been prepared in conformity with GAAP applied on a consistent basis throughout the periods covered
thereby; the other financial information of BCP included or incorporated by reference in each of the Time of Sale Information and the Offering Memorandum has been derived from the accounting records of BCP and its subsidiaries and presents fairly
the information shown thereby. 
 (f)    Financial Statements (Joint Ventures). The financial statements and the
related notes thereto of each of Breviloba, LLC, Gulf Coast Express Pipeline LLC and Permian Highway Pipeline LLC, included or incorporated by reference in each of the Time of Sale Information and the Offering Memorandum present fairly the financial
position of each of Breviloba, LLC, Gulf Coast Express Pipeline LLC and Permian Highway Pipeline LLC and their respective subsidiaries as of the dates indicated and the results of their operations and the

 
changes in their cash flows for the periods specified; such financial statements have been prepared in conformity with GAAP applied on a consistent basis throughout the periods covered thereby;
the other financial information of each of Breviloba, LLC, Gulf Coast Express Pipeline LLC and Permian Highway Pipeline LLC included or incorporated by reference in each of the Time of Sale Information and the Offering Memorandum has been derived
from the accounting records of each of Breviloba, LLC, Gulf Coast Express Pipeline LLC and Permian Highway Pipeline LLC and their respective subsidiaries and presents fairly the information shown thereby; 

(g)    Pro Forma Financial Statements. The pro forma financial information and the related notes
thereto included or incorporated by reference in each of the Time of Sale Information and the Offering Memorandum has been prepared in accordance with the Commission’s rules and guidance with respect to pro forma financial
information, and the assumptions underlying such pro forma financial information are reasonable and are set forth in each of the Time of Sale Information and the Offering Memorandum. The interactive data in eXtensible Business
Reporting Language included or incorporated by reference in each of the Preliminary Offering Memorandum, the Time of Sale Information and the Offering Memorandum fairly presents the information called for in all material respects and is prepared in
accordance with the Commission’s rules and guidelines applicable thereto. 
 (h)    No Material Adverse Change.
Except as otherwise stated therein, since the respective dates as of which information is given in each of the Time of Sale Information and the Offering Memorandum (i) there has been no material adverse change in the condition, financial or
otherwise, the long-term debt, or in the earnings, business affairs or business prospects of the Parent Guarantor and any of its subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business, (ii) there
have been no transactions entered into, or liabilities or obligations incurred, direct or contingent, by the Parent Guarantor or any of its subsidiaries, other than those in the ordinary course of business, which are material with respect to the
Parent Guarantor and its subsidiaries considered as one enterprise, and (iii) except for regular quarterly dividends on the common stock of Parent Guarantor, there has been no dividend or distribution of any kind declared, paid or made by the
Parent Guarantor or its subsidiaries on any class of capital stock. 
 (i)    Organization and Good Standing. The
Parent Guarantor and each of its subsidiaries have been duly organized and are validly existing and in good standing under the laws of their respective jurisdictions of organization, are duly qualified to do business and are in good standing in each
jurisdiction in which their respective ownership or lease of property or the conduct of their respective businesses requires such qualification, and have all power and authority necessary to own or hold their respective properties and to conduct the
businesses in which they are engaged, except where the failure to be so qualified, in good standing or have such power or authority would not, individually 

 
or in the aggregate, have a material adverse effect on the condition, financial or otherwise, or in the earnings, business affairs or business prospects of the Parent Guarantor and its
subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business or on the performance by the Parent Guarantor and its subsidiaries of their obligations under this Agreement, the Securities and the Guarantee (a
“Material Adverse Effect”). Neither the Parent Guarantor nor any of its subsidiaries owns or controls, directly or indirectly, any corporation, association or other entity other than the subsidiaries listed in Schedule 2 to
this Agreement. 
 (j)    Capitalization and Corporate Structure. The Parent Guarantor has the capitalization as
set forth in each of the Time of Sale Information and the Offering Memorandum under the heading “Capitalization”; all of the issued shares of capital stock of the Parent Guarantor have been duly and validly authorized and issued and are
fully paid and non-assessable. The Parent Guarantor indirectly owns the sole general partner interest of the Company and 30.0% of the limited partner interests in the Company. 

(k)    Ownership of Operating Subsidiaries. Other than Permian Highway Pipeline, LLC, Gulf Coast Express Pipeline
LLC, Breviloba LLC and EPIC Crude Holdings LP, the Parent Guarantor owns directly or indirectly 100% of the outstanding shares of capital stock, membership interests or other equity interests of each of its subsidiary free and clear of any lien,
charge, encumbrance, security interest, restriction on voting or transfer or any other claim of any third party (collectively, “Liens”), except for Liens pursuant to the 2017 Credit Facility, the 2018 Credit Facility, the 2019 Credit
Facility and the Altus Credit Facility (each as defined in the Time of Sale Information and the Offering Memorandum, and collectively the “Existing Indebtedness”), which will be fully repaid and terminated upon consummation of the
Transactions on the Closing Date, as described in each of the Time of Sale Information and the Offering Memorandum. All of the issued shares of capital stock, membership interests or other equity interests of each subsidiary of the Parent Guarantor
have been duly and validly authorized and issued, are fully paid and non-assessable (except, in the case of subsidiaries that are limited partnerships or limited liability companies, as such non-assessability may be limited by applicable state law). The Parent Guarantor owns, directly or indirectly, (i) a 53.4% equity interest in Permian Highway Pipeline, LLC, (ii) a 16.0% equity interest in
Gulf Coast Express Pipeline LLC, (iii) a 33.0% equity interest in Breviloba, LLC and (iv) a 15.0% equity interest in EPIC Crude Holdings, LP. 

(l)    Due Authorization. The Company and the Parent Guarantor have full right, power and authority to execute and
deliver this Agreement, the Securities, the Indenture (including, in the case of the Parent Guarantor, each Guarantee set forth therein) and the Credit Agreements (as defined below) (collectively, the “Transaction Documents”) and to
perform their respective obligations hereunder and thereunder; and all action required to be taken for the due and proper authorization, execution and delivery of each of the Transaction Documents and the consummation of the transactions
contemplated thereby has been duly and validly taken. 

 (m)    The Indenture. The Indenture has been duly authorized by
the Company and the Parent Guarantor and on the Closing Date will be duly executed and delivered by the Company and the Parent Guarantor and, when duly executed and delivered in accordance with its terms by each of the parties thereto, will
constitute a valid and legally binding agreement of the Company and the Parent Guarantor enforceable against the Company and the Parent Guarantor in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to enforceability (regardless of whether such enforceability is considered
in a proceeding at law or in equity) and by public policy, applicable law relating to fiduciary duties and indemnification and an implied covenant of good faith and fair dealing (collectively, the “Enforceability Exceptions”); and
on the Closing Date the Indenture will conform in all material respects to the applicable requirements of the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission thereunder (collectively, the “Trust
Indenture Act”). 
 (n)    The Securities and the Guarantee. The Securities have been duly authorized by
the Company and, when duly executed, authenticated, issued and delivered as provided in the Indenture and paid for as provided herein, will be duly and validly issued and outstanding and will constitute valid and legally binding obligations of the
Company enforceable against the Company in accordance with their terms, subject to the Enforceability Exceptions, and will be entitled to the benefits of the Indenture; and the Guarantee has been duly authorized by the Parent Guarantor and, when the
Securities have been duly executed, authenticated, issued and delivered as provided in the Indenture and paid for as provided herein, will be a valid and legally binding obligation of the Parent Guarantor, enforceable against the Parent Guarantor in
accordance with its terms, subject to the Enforceability Exceptions, and will be entitled to the benefits of the Indenture. 

(o)    Purchase Agreement. This Agreement has been duly authorized, executed and delivered by the Company and the
Parent Guarantor. 
 (p)    New Credit Facilities. On the Closing Date, that certain Credit Agreement, dated
June 8, 2022, by and among the Company, Bank of America, N.A., as administrative agent, the Parent Guarantor as guarantor, and the lenders from time to time party thereto (the “Revolving Credit Agreement”) and that certain Credit
Agreement, dated June 8, 2022 by and among the Company, PNC Bank, National Association, as administrative agent, the Parent Guarantor as guarantor, and the lenders from time to time party thereto (the “Term Loan Credit Agreement,”
together with the Revolving Credit Agreement, the “Credit Agreements”), will have been duly authorized, executed and delivered by the 

 
Company and the Parent Guarantor and will constitute a valid and legally binding agreement of the Company and the Parent Guarantor, enforceable against the Company and the Parent Guarantor in
accordance with its terms, subject to the Enforceability Exceptions. 
 (q)    Descriptions of the Transaction
Documents. Each Transaction Document conforms in all material respects to the description thereof contained in each of the Time of Sale Information and the Offering Memorandum. 

(r)    No Violation or Default. Neither the Parent Guarantor nor any of its subsidiaries is (i) in violation
of its charter, certificate of formation, by-laws, limited liability company agreement, limited partnership agreement or similar organizational documents; (ii) in default, and no event has occurred that,
with notice or lapse of time or both, would constitute such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to
which the Parent Guarantor or any of its subsidiaries is a party or by which the Parent Guarantor or any of its subsidiaries is bound or to which any property or asset of the Parent Guarantor or any of its subsidiaries is subject; or (iii) in
violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority, except, in the case of clauses (ii) and (iii) above, for any such default or violation that would
not, individually or in the aggregate, have a Material Adverse Effect. 
 (s)    No Conflicts. The execution,
delivery and performance by the Parent Guarantor and the Company of each of the Transaction Documents to which each is a party, the issuance and sale of the Securities and the issuance of the Guarantee, and compliance by the Parent Guarantor and the
Company with the terms thereof and the consummation of the transactions contemplated by the Transaction Documents will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under,
result in the termination, modification or acceleration of, or result in the creation or imposition of any lien, charge or encumbrance upon any property, right or asset of the Parent Guarantor or any of its subsidiaries pursuant to, any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to which the Parent Guarantor or any of its subsidiaries is a party or by which the Parent Guarantor or any of its subsidiaries is bound or to which any property, right or
asset of the Parent Guarantor or any of its subsidiaries is subject, (ii) result in any violation of the provisions of the charter, certificate of formation, by-laws, limited liability company agreement,
limited partnership agreement or similar organizational documents of the Parent Guarantor or any of its subsidiaries or (iii) result in the violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or
governmental or regulatory authority, except, (A) in the case of clauses (i) and (iii) above, for any such conflict, breach, violation, default, lien, charge or encumbrance that would not, individually or in the aggregate, have a Material
Adverse Effect and (B) in the case of clause (i) above after giving effect to the repayment and termination of the Existing Indebtedness. 

 (t)    No Consents Required. No consent, approval, authorization,
order, registration or qualification of or with any court or arbitrator or governmental or regulatory authority (each, a “consent”) is required for the execution, delivery and performance by the Company and the Parent Guarantor of each of
the Transaction Documents to which each is a party, the issuance and sale of the Securities and the issuance of the Guarantee, and compliance by the Company and the Parent Guarantor with the terms thereof and the consummation of the transactions
contemplated by the Transaction Documents, except (i) for such consents that have been, or prior to the Closing Date, will be obtained or made, (ii) for such consents as may be required under applicable state securities laws in connection
with the purchase and resale of the Securities by the Initial Purchasers. 
 (u)    Legal Proceedings. Except as
described in each of the Time of Sale Information and the Offering Memorandum, there are no legal, governmental or regulatory investigations, actions, demands, claims, suits, arbitrations, inquiries or proceedings (“Actions”)
pending to which the Parent Guarantor or any of its subsidiaries is or may be a party or to which any property of the Parent Guarantor or any of its subsidiaries is or may be the subject that, individually or in the aggregate, if determined
adversely to the Parent Guarantor or any of its subsidiaries, could reasonably be expected to have a Material Adverse Effect; and, to the knowledge of the Parent Guarantor and its subsidiaries, no such Actions are threatened or contemplated by any
governmental or regulatory authority or threatened by others. 
 (v)    Independent Accountants (KPMG LLP). KPMG
LLP, who have certified certain financial statements of (i) BCP and (ii) EPIC Crude Holdings, LP (“EPIC”), are independent public accountants with respect to the Parent Guarantor and its subsidiaries within the applicable rules
and regulations adopted by the Commission and the Public Company Accounting Oversight Board (United States) (the “PCAOB”) and as required by the Securities Act. 

(w)    Independent Accountants (Ernst & Young LLP). Ernst & Young LLP, who have
certified certain financial statements of (i) the Parent Guarantor and (ii) Breviloba, LLC, are independent public accountants with respect to Parent Guarantor and Breviloba, LLC within the applicable rules and regulations adopted by the
Commission and the PCAOB and as required by the Securities Act. 
 (x)    Independent Accountants (BDO USA, LLP).
BDO USA, LLP, who have certified certain financial statements of (i) Gulf Coast Express Pipeline LLC and (ii) Permian Highway Pipeline LLC, are independent public accountants with respect to Gulf Coast Express Pipeline LLC and Permian
Highway Pipeline LLC within the applicable rules and regulations adopted by the Commission and the PCAOB and as required by the Securities Act. 

 (y)    Title to Real and Personal Property. The Parent Guarantor
and its subsidiaries have good and marketable to all real property owned by them and good title to all other properties owned by them, in each case free and clear of all liens, charges, encumbrances, claims and defects and imperfections of title
except those that (i) do not, singly or in the aggregate, materially interfere with the use made and proposed to be made of such property by the Parent Guarantor and its subsidiaries or (ii) could not reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect, (iii) those described in the Time of Sale Information and the Offering Memorandum or (iv) those that secure the Existing Indebtedness, which liens, charges, encumbrances and claims
will be released substantially contemporaneously with the issuance of the Securities on the Closing Date. 

(z)    Easements and Rights-of-Way.
Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, the Parent Guarantor and its subsidiaries have such consents, easements,
rights-of-way or licenses from any person as are necessary to enable the Parent Guarantor and its subsidiaries to conduct their respective business in the manner
described in the Time of Sale Information and the Offering Memorandum, subject to such qualifications as may be set forth in the Time of Sale Information and the Offering Memorandum. 

(aa)    Intellectual Property. (i) The Parent Guarantor and its subsidiaries own or possess, or can acquire on
reasonable terms, adequate patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems
or procedures), trademarks, service marks, trade names or other intellectual property (collectively, “Intellectual Property”) necessary to carry on the business now operated by them, as currently conducted, and neither the Parent Guarantor
nor any of its subsidiaries has received any written notice of any infringement of or conflict with asserted rights of others with respect to any Intellectual Property which would render any Intellectual Property invalid or inadequate to protect the
interest of the Parent Guarantor or any of its subsidiaries therein, and which infringement or conflict (if the subject of any unfavorable decision, ruling or finding) or invalidity or inadequacy, singly or in the aggregate, would result in a
Material Adverse Effect. 
 (bb)    No Undisclosed Relationships. No relationship, direct or indirect, exists
between or among the Parent Guarantor or any of its subsidiaries, on the one hand, and the directors, officers, stockholders or other affiliates of the Parent Guarantor or any of its subsidiaries, on the other, that would be required by the
Securities Act to be described in a registration statement on Form S-1 to be filed with the Commission and that is not so described in each of the Time of Sale Information and the Offering Memorandum. 

(cc)    Investment Company Act. Neither the Parent Guarantor nor the Company are, and after giving effect to the
offering and sale of the Securities and the application of the proceeds thereof as described in each of the Time of Sale 

 
Information and the Offering Memorandum, none of them will be, an “investment company” or an entity “controlled” by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended, and the rules and regulations of the Commission thereunder (collectively, the “Investment Company Act”). 

(dd)    Taxes. Except, in the case of either clauses (i) or (ii), as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, the Parent Guarantor and each of its subsidiaries have (i) filed all federal, state, local and foreign tax returns required to be filed through the date hereof, subject to
permitted extensions, and (ii) paid all taxes required to be paid, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP;
and except as otherwise disclosed in each of the Time of Sale information and the Offering Memorandum, there is no tax deficiency that has been, or would reasonably be expected to be, asserted against the Parent Guarantor or any of its subsidiaries
or any of their respective properties or assets and that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

(ee)    Licenses and Permits. The Parent Guarantor and its subsidiaries possess all licenses, sub-licenses, certificates, permits and other authorizations issued by, and have made all declarations and filings with, the appropriate federal, state, local or foreign governmental or regulatory authorities that
are necessary for the ownership or lease of their respective properties or the conduct of their respective businesses as described in each of the Time of Sale Information and the Offering Memorandum, except where the failure to possess or make the
same would not, individually or in the aggregate, have a Material Adverse Effect; and except as described in each of the Time of Sale Information and the Offering Memorandum, neither the Parent Guarantor nor any of its subsidiaries have received
notice of any revocation or modification of any such license, sub-license, certificate, permit or authorization or has any reason to believe that any such license,
sub-license, certificate, permit or authorization will not be renewed in the ordinary course. 

(ff)    No Labor Disputes. No labor dispute with the employees of the Parent Guarantor or any of its subsidiaries
exists or, to the knowledge of the Company and the Parent Guarantor, is imminent, which would result in a Material Adverse Effect. 

(gg)    Environmental Laws. Except as disclosed in the Time of Sale Information and the Offering Memorandum, (a)(i)
neither the Parent Guarantor nor any of its subsidiaries is in violation of, and does not have any liability under, any federal, state, local or non-U.S. statute, law, treaty, rule, regulation, ordinance,
code, other requirement or rule of law, or decision or order of any domestic or foreign governmental agency, governmental body or court, relating to pollution, to the generation, use, handling, transportation, treatment, storage, discharge,

 
disposal or release of Hazardous Substances (as defined below), to the protection or restoration of the environment or natural resources, to human health and safety including as such relates to
exposure to Hazardous Substances, and to natural resource damages (collectively, “Environmental Laws”) that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (ii) neither the
Parent Guarantor nor any of its subsidiaries is liable or allegedly liable for any release or threatened release of Hazardous Substances, including at any off site storage, treatment, or disposal site, (iii) neither the Parent Guarantor nor any
of its subsidiaries is subject to any pending, or to the knowledge of the Parent Guarantor or the Company, threatened, claim by any governmental agency or governmental body or person arising under Environmental Laws or relating to the release of or
exposure to Hazardous Substances, and (iv) the Parent Guarantor and its subsidiaries have received, are in compliance with all, and have no liability under any, permits, licenses, certificates, registrations, exemptions, waivers, franchises,
authorizations, identification numbers or other approvals required under applicable Environmental Laws to conduct their business, except in each case covered by clauses (ii) — (iv) such as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect; (b) to the knowledge of the Parent Guarantor and the Company, there are no facts or circumstances that would reasonably be expected to result in a violation of, liability under, or claim pursuant
to any Environmental Law that would reasonably be expected to have a Material Adverse Effect; and (c) there is no proceeding that is pending, or that is known to be contemplated, against the Parent Guarantor or any of its subsidiaries under any
Environmental Laws in which a governmental entity is also a party, other than such proceeding regarding which it is reasonably believed no monetary sanctions of $300,000 or more will be imposed. For purposes of this
subsection “Hazardous Substances” means (A) petroleum and petroleum products, by-products or breakdown products, radioactive materials, asbestos-containing materials, per- and polyfluoroalkyl substances and polychlorinated biphenyls, and (B) any other chemical, material or substance defined or regulated as toxic or hazardous or as a pollutant, contaminant or waste under
Environmental Laws. 
 (hh)    Compliance with ERISA. (i) Each employee benefit plan, within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), for which the Parent Guarantor or any member of its “Controlled Group” (defined as any entity, whether or not incorporated, that is
under common control with the Parent Guarantor within the meaning of Section 4001(a)(14) of ERISA or any entity that would be regarded as a single employer with the Parent Guarantor under Section 414(b),(c),(m) or (o) of the Internal
Revenue Code of 1986, as amended (the “Code”)) would have any liability (each, a “Plan”) has been maintained in compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including
but not limited to ERISA and the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any Plan, excluding transactions effected pursuant to a
statutory or 

 
administrative exemption; (iii) for each Plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no Plan has failed (whether or not waived),
or is reasonably expected to fail, to satisfy the minimum funding standards (within the meaning of Section 302 of ERISA or Section 412 of the Code) applicable to such Plan; (iv) no Plan is, or is reasonably expected to be, in “at
risk status” (within the meaning of Section 303(i) of ERISA), and no Plan that is a “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA is in “endangered status” or “critical status”
(within the meaning of Sections 304 and 305 of ERISA); (v) the fair market value of the assets of each Plan exceeds the present value of all benefits accrued under such Plan (determined based on those assumptions used to fund such Plan); (vi)
no “reportable event” (within the meaning of Section 4043(c) of ERISA and the regulations promulgated thereunder) has occurred or is reasonably expected to occur; (vii) each Plan that is intended to be qualified under
Section 401(a) of the Code is so qualified, and nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification; (viii) neither the Parent Guarantor nor any member of the Controlled Group has
incurred, nor reasonably expects to incur, any liability under Title IV of ERISA (other than contributions to the Plan or premiums to the Pension Benefit Guarantee Corporation, in the ordinary course and without default) in respect of a Plan
(including a “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA); and (ix) none of the following events has occurred or is reasonably likely to occur: (A) a material increase in the aggregate amount of
contributions required to be made to all Plans by the Parent Guarantor or its Controlled Group affiliates in the current fiscal year of the Parent Guarantor and its Controlled Group affiliates compared to the amount of such contributions made in the
Parent Guarantor’s and its Controlled Group affiliates’ most recently completed fiscal year; or (B) a material increase in the Parent Guarantor and its subsidiaries’ “accumulated post-retirement benefit obligations”
(within the meaning of Accounting Standards Codification Topic 715-60) compared to the amount of such obligations in the Parent Guarantor and its subsidiaries’ most recently completed fiscal year, except
in each case with respect to the events or conditions set forth in clauses (i) through (ix) hereof, as would not, individually or in the aggregate, have a Material Adverse Effect. 

(ii)     Disclosure Controls. The Parent Guarantor and its subsidiaries maintain an effective system of
“disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that is designed to ensure that information required to be disclosed by the Parent Guarantor in reports that it
files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms, including controls and procedures designed to ensure that such information is
accumulated and communicated to the Parent Guarantor’s management as appropriate to allow timely decisions regarding required disclosure. The Parent Guarantor and its subsidiaries have carried out evaluations of the effectiveness of their
disclosure controls and procedures as required by Rule 13a-15 of the Exchange Act. 

 (jj)    Accounting Controls. The Parent Guarantor and its
subsidiaries maintain systems of “internal control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that comply with the requirements of the Exchange Act and have been
designed by, or under the supervision of, their respective principal executive and principal financial officers, or persons performing similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with GAAP. The Parent Guarantor and its subsidiaries maintain internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in
accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii) access to
assets is permitted only in accordance with management’s general or specific authorization; (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences; and (v) interactive data in eXtensible Business Reporting Language included or incorporated by reference in each of the Preliminary Offering Memorandum, the Time of Sale Information and the Offering Memorandum is
prepared in accordance with the Commission’s rules and guidelines applicable thereto. Except as disclosed in each of the Time of Sale Information and the Offering Memorandum, there are no material weaknesses or significant deficiencies in the
Parent Guarantor’s or its subsidiaries’ internal controls. 
 (kk)    Insurance. The Parent Guarantor
and its subsidiaries carry or are entitled to the benefits of insurance, with financially sound and reputable insurers, in such amounts and covering such risks as is generally maintained by companies of established repute engaged in the same or
similar business in similar industries and markets, and all such insurance is in full force and effect. The Parent Guarantor has no reason to believe that it or any of its subsidiaries will not be able (A) to renew its existing insurance
coverage as and when such policies expire or (B) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not result in a Material Adverse
Effect. Neither of the Parent Guarantor nor any of its subsidiaries has been denied any insurance coverage which it has sought or for which it has applied. 

(ll)    No Unlawful Payments. Neither the Parent Guarantor nor any of its subsidiaries, nor any director, officer
or employee of the Parent Guarantor or any of its subsidiaries nor, to the knowledge of the Company and the Parent Guarantor, any agent, affiliate or other person acting on behalf of the Parent Guarantor or any of its subsidiaries has violated or is
in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business
Transactions, or committed an offence under the U.K. Bribery Act 2010, or any other applicable anti-bribery or anti-corruption law (collectively, the “Anti-Corruption Laws”), nor have any of the foregoing: (i) used any corporate funds
for any unlawful contribution, gift, entertainment or other 

 
unlawful expense relating to political activity; (ii) made or taken an act in furtherance of an offer, promise or authorization of any direct or indirect unlawful payment or benefit to any
foreign or domestic government official or employee, including of any government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any
political party or party official or candidate for political office; or (iii) made, offered, agreed, requested or taken an act in furtherance of any unlawful bribe or other unlawful benefit, including, without limitation, any rebate, payoff,
influence payment, kickback or other unlawful or improper payment or benefit, in each case of (i), (ii), or (iii) to the extent that such conduct violates the applicable Anti-Corruption Laws. The Parent Guarantor and its subsidiaries have
instituted, maintain and enforce, and will continue to maintain and enforce, policies and procedures reasonably designed to promote and ensure compliance with all applicable Anti-Corruption Laws. 

(mm)    Compliance with Anti-Money Laundering Laws. The operations of the Parent Guarantor and its subsidiaries are
and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements, including those of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the applicable money laundering
statutes of all jurisdictions where the Parent Guarantor or any of its subsidiaries conducts business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any
governmental agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Parent Guarantor or any of its
subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company or the Parent Guarantor, threatened. 

(nn)    No Conflicts with Sanctions Laws. Neither the Parent Guarantor nor any of its subsidiaries, directors,
officers or employees, nor, to the knowledge of the Company or the Parent Guarantor, any agent, affiliate or other person associated with, owned or controlled by or acting on behalf of the Parent Guarantor or any of its subsidiaries is currently the
target of any comprehensive sanctions administered or enforced by the U.S. government, (including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”) or the U.S. Department of
State and including, without limitation, the designation as a “specially designated national” or “blocked person”), the United Nations Security Council (“UNSC”), the European Union, Her Majesty’s Treasury
(“HMT”), or other relevant sanctions authority (collectively, “Sanctions”), nor is the Parent Guarantor or any of its subsidiaries located, organized or resident in a country or territory that is the target of
comprehensive Sanctions, including, without limitation, the Crimea Region of Ukraine, the so-called Donetsk People’s Republic, the so-called Luhansk People’s
Republic, Cuba, Iran, North Korea and Syria (each, a “Sanctioned Country”); and the Parent Guarantor and its subsidiaries will not directly or indirectly use the proceeds of the offering of the Securities hereunder, or lend,
contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or 

 
other person or entity (i) to fund or facilitate any activities of or business with any person that, at the time of such funding or facilitation, is the target of Sanctions except as
authorized by applicable Sanctions, (ii) to fund or facilitate any activities of or business in any Sanctioned Country except as authorized by applicable Sanctions or (iii) in any other manner that will result in a violation by any person
(including any person participating in the transaction, whether as initial purchaser, underwriter, advisor, investor or otherwise) of Sanctions. For the past five years, the Parent Guarantor and its subsidiaries have not knowingly engaged in, are
not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any Sanctioned Country. 

(oo)    Solvency. On and immediately after the Closing Date, the Company and the Parent Guarantor (after giving
effect to the issuance and sale of the Securities, the issuance of the Guarantee and the other transactions related thereto as described in each of the Time of Sale Information and the Offering Memorandum) will be Solvent. As used in this paragraph,
the term “Solvent” means, with respect to a particular date and entity, that on such date (i) the fair value (and present fair saleable value) of the assets of such entity is not less than the total amount required to pay the
probable liability of such entity on its total existing debts and liabilities (including contingent liabilities) as they become absolute and matured; (ii) such entity is able to realize upon its assets and pay its debts and other liabilities,
contingent obligations and commitments as they mature and become due in the normal course of business; (iii) assuming consummation of the issuance and sale of the Securities and the issuance of the Guarantee as contemplated by this Agreement,
the Time of Sale Information and the Offering Memorandum, such entity does not have, intend to incur or believe that it will incur debts or liabilities beyond its ability to pay as such debts and liabilities mature; (iv) such entity is not
engaged in any business or transaction, and does not propose to engage in any business or transaction, for which its property would constitute unreasonably small capital; and (v) such entity is not a defendant in any civil action that would
result in a judgment that such entity is or would become unable to satisfy. 
 (pp)    No Restrictions on
Subsidiaries. No subsidiary of the Company is currently prohibited, directly or indirectly, under any agreement or other instrument to which it is a party or is subject, from paying any dividends to the Company, from making any other
distribution on such subsidiary’s capital stock or similar ownership interest, from repaying to the Company any loans or advances to such subsidiary from the Company or from transferring any of such subsidiary’s properties or assets to the
Company or any other subsidiary of the Company, except for any such restrictions (a) contained in the Existing Indebtedness, which will be repaid in full and terminated upon consummation of the Transactions on the Closing Date as described in
each of the Time of Sale Information and the Offering Memorandum, or (b) that will be permitted by the Indenture. 

 (qq)    No Broker’s Fees. Neither the Parent Guarantor nor
any of its subsidiaries is a party to any contract, agreement or understanding with any person (other than this Agreement) that would give rise to a valid claim against any of them or any Initial Purchaser for a brokerage commission, finder’s
fee or like payment in connection with the offering and sale of the Securities. 
 (rr)    Rule 144A Eligibility.
On the Closing Date, the Securities will not be of the same class as securities listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted in an automated inter-dealer quotation system; and each of the
Preliminary Offering Memorandum and the Offering Memorandum, as of its respective date, contains or will contain all the information that, if requested by a prospective purchaser of the Securities, would be required to be provided to such
prospective purchaser pursuant to Rule 144A(d)(4) under the Securities Act. 
 (ss)    No Integration. Neither
the Parent Guarantor, its subsidiaries nor any of their affiliates (as defined in Rule 501(b) of Regulation D) has, directly or through any agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security
(as defined in the Securities Act), that is or will be integrated with the sale of the Securities in a manner that would require registration of the Securities under the Securities Act. 

(tt)    No General Solicitation or Directed Selling Efforts. None of the Parent Guarantor, its subsidiaries or any
of their affiliates or any other person acting on its or their behalf (other than the Initial Purchasers, as to which no representation is made) has (i) solicited offers for, or offered or sold, the Securities by means of any form of general
solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act or (ii) engaged in any directed selling efforts
within the meaning of Regulation S under the Securities Act (“Regulation S”), and all such persons have complied with the offering restrictions requirement of Regulation S. 

(uu)    Securities Law Exemptions. Assuming the accuracy of the representations and warranties of the Initial
Purchasers contained in Section 2(b) (including Annex C hereto) and their compliance with their agreements set forth therein, it is not necessary, in connection with the issuance and sale of the Securities to the Initial Purchasers and the
offer, resale and delivery of the Securities by the Initial Purchasers in the manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum, to register the Securities under the Securities Act or to qualify the
Indenture under the Trust Indenture Act. 
 (vv)    No Stabilization. Neither the Parent Guarantor nor its
subsidiaries has taken, directly or indirectly, any action designed to or that could reasonably be expected to cause or result in any stabilization or manipulation of the price of the Securities. 

 (ww)    Forward-Looking Statements. No forward-looking statement
(within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) included or incorporated by reference in any of the Time of Sale Information or the Offering Memorandum has been made or reaffirmed without a
reasonable basis or has been disclosed other than in good faith. 
 (xx)    Statistical and Market Data. Nothing
has come to the attention of the Company or any Parent Guarantor that has caused the Company or such Parent Guarantor to believe that the statistical and market-related data included or incorporated by reference in each of the Time of Sale
Information and the Offering Memorandum is not based on or derived from sources that are reliable and accurate in all material respects. 

(yy)    Cybersecurity; Data Protection. (A) There has been no known security breach or incident, unauthorized
access or disclosure, or other compromise of or relating to the Parent Guarantor or its subsidiaries information technology and computer systems, networks, hardware, software, data and databases (including the data and information of their
respective customers, employees, suppliers, vendors and any third party data maintained, processed or stored by the Parent Guarantor and its subsidiaries, and any such data processed or stored by third parties on behalf of the Parent Guarantor and
its subsidiaries), equipment or technology (collectively, “IT Systems and Data”), except as would not, individually or in the aggregate, have a Material Adverse Effect; (B) neither the Parent Guarantor nor its subsidiaries have
been notified of, and each of them have no knowledge of any event or condition that could result in, any security breach or incident, unauthorized access or disclosure or other compromise to their IT Systems and Data, except as would not,
individually or in the aggregate, have a Material Adverse Effect and (C) the Parent Guarantor and its subsidiaries have implemented commercially reasonable controls, policies, procedures, and technological safeguards to maintain and protect the
integrity, continuous operation, redundancy and security of their IT Systems and Data reasonably consistent with industry standards and practices, or as required by applicable regulatory standards. The Parent Guarantor and its subsidiaries are
presently in material compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the
privacy and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification. 

(zz)     Sarbanes-Oxley Act. There is and has been no failure on the part of the Parent Guarantor’s or its
subsidiaries’ directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley
Act”), including Section 402 related to loans and Sections 302 and 906 related to certifications. 

 Any certificate signed by any officer of the Company or the Parent Guarantor and delivered
to the Representative or counsel for the Initial Purchasers in connection with the offering of the Securities shall be deemed a representation and warranty by the Company or the Parent Guarantor, as applicable, as to matters covered thereby, to each
Initial Purchaser. 
 4.    Further Agreements of the Company and the Parent Guarantor. The Company and the
Parent Guarantor jointly and severally covenant and agree with each Initial Purchaser that: 
 (a)    Delivery of
Copies. The Company will deliver, without charge, to the Initial Purchasers as many copies of the Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer Written Communication and the Offering Memorandum (including all
amendments and supplements thereto) as the Representative may reasonably request. 
 (b)    Offering Memorandum,
Amendments or Supplements. Before finalizing the Offering Memorandum or making or distributing any amendment or supplement to any of the Time of Sale Information or the Offering Memorandum or filing with the Commission any document that will be
incorporated by reference therein, the Company will furnish to the Representative and counsel for the Initial Purchasers a copy of the proposed Offering Memorandum or such amendment or supplement or document to be incorporated by reference therein
for review, and will not distribute any such proposed Offering Memorandum, amendment or supplement or file any such document with the Commission to which the Representative reasonably objects. 

(c)    Additional Written Communications. Before making, preparing, using, authorizing, approving or referring to
any Issuer Written Communication, the Company and the Parent Guarantor will furnish to the Representative and counsel for the Initial Purchasers a copy of such written communication for review and will not make, prepare, use, authorize, approve or
refer to any such written communication to which the Representative reasonably objects. 
 (d)    Notice to the
Representative. The Company will advise the Representative promptly, and confirm such advice in writing, (i) of the issuance by any governmental or regulatory authority of any order preventing or suspending the use of any of the Time of
Sale Information, any Issuer Written Communication or the Offering Memorandum or the initiation or threatening of any proceeding for that purpose; (ii) of the occurrence of any event at any time prior to the completion of the initial offering
of the Securities as a result of which any of the Time of Sale Information, any Issuer Written Communication or the Offering Memorandum as then amended or supplemented would include any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the circumstances existing when such Time of Sale Information, Issuer Written Communication or the Offering Memorandum is delivered to a purchaser, not misleading; and
(iii) of the 

 
receipt by the Company or the Parent Guarantor of any notice with respect to any suspension of the qualification of the Securities for offer and sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; and the Company and the Parent Guarantor will use their reasonable best efforts to prevent the issuance of any such order preventing or suspending the use of any of the Time of Sale Information, any
Issuer Written Communication or the Offering Memorandum or suspending any such qualification of the Securities and, if any such order is issued, will obtain as soon as possible the withdrawal thereof. 

(e)    Time of Sale Information. If at any time prior to the Closing Date (i) any event shall occur or
condition shall exist as a result of which any of the Time of Sale Information as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading or (ii) it is necessary to amend or supplement the Time of Sale Information to comply with law, the Company will immediately notify the Initial Purchasers
thereof and forthwith prepare and, subject to paragraph (b) above, furnish to the Initial Purchasers such amendments or supplements to the Time of Sale Information (or any document to be filed with the Commission and incorporated by reference
therein) as may be necessary so that the statements in any of the Time of Sale Information as so amended or supplemented (including such documents to be incorporated by reference therein) will not, in the light of the circumstances under which they
were made, be misleading or so that any of the Time of Sale Information will comply with law. 
 (f)    Ongoing
Compliance. If at any time prior to the completion of the initial offering of the Securities (i) any event shall occur or condition shall exist as a result of which the Offering Memorandum as then amended or supplemented would include any
untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances existing when the Offering Memorandum is delivered to a purchaser, not misleading or
(ii) it is necessary to amend or supplement the Offering Memorandum to comply with law, the Company will immediately notify the Initial Purchasers thereof and forthwith prepare and, subject to paragraph (b) above, furnish to the Initial
Purchasers such amendments or supplements to the Offering Memorandum (or any document to be filed with the Commission and incorporated by reference therein) as may be necessary so that the statements in the Offering Memorandum as so amended or
supplemented (including such document to be incorporated by reference therein) will not, in the light of the circumstances existing when the Offering Memorandum is delivered to a purchaser, be misleading or so that the Offering Memorandum will
comply with law. 
 (g)    Blue Sky Compliance. The Company will take such action as the Representative
reasonably requests to qualify the Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions as the Representative shall reasonably request and will continue such qualifications in effect so long as

 
required for the offering and resale of the Securities; provided that neither the Company nor the Parent Guarantor shall be required to (i) qualify as a foreign corporation or other
entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify, (ii) file any general consent to service of process in any such jurisdiction or (iii) subject itself to taxation in any
such jurisdiction if it is not otherwise so subject. 
 (h)    Clear Market. During the period from the date
hereof through and including the date that is 60 days after the date hereof, the Company and the Parent Guarantor will not, without the prior written consent of the Representative, offer, sell, contract to sell or otherwise dispose of any debt
securities issued or guaranteed by the Company or the Parent Guarantor and having a tenor of more than one year. 

(i)    Use of Proceeds. The Company will apply the net proceeds from the sale of the Securities as described in
each of the Time of Sale Information and the Offering Memorandum under the heading “Use of proceeds.” 

(j)    Supplying Information. While the Securities remain outstanding and are “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act, the Company and the Parent Guarantor will, during any period in which the Company is not subject to and in compliance with Section 13 or 15(d) of the Exchange Act, furnish to
holders of the Securities and prospective purchasers of the Securities designated by such holders, upon the request of such holders or such prospective purchasers, the information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act. 
 (k)    DTC. The Company will assist the Initial Purchasers in arranging for the Securities to
be eligible for clearance and settlement through DTC. 
 (l)    No Resales by the Company. The Company will not,
and will not permit any of its affiliates (as defined in Rule 144 under the Securities Act) to, resell any of the Securities that have been acquired by any of them, except for Securities purchased by the Company or any of its affiliates and
resold in a transaction registered under the Securities Act. 
 (m)    No Integration. Neither the Company nor
any of its affiliates (as defined in Rule 501(b) of Regulation D) will, directly or through any agent, sell, offer for sale, solicit offers to buy or otherwise negotiate in respect of, any security (as defined in the Securities Act), that is or will
be integrated with the sale of the Securities in a manner that would require registration of the Securities under the Securities Act. 

(n)    No General Solicitation or Directed Selling Efforts. None of the Company or any of its affiliates or any
other person acting on its or their behalf (other than the Initial Purchasers, as to which no covenant is given) will (i) solicit offers for, or offer or sell, the Securities by means of any form of general

 
solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act
or (ii) engage in any directed selling efforts within the meaning of Regulation S, and all such persons will comply with the offering restrictions requirement of Regulation S. 

(o)    No Stabilization. Neither the Company nor the Parent Guarantor will take, directly or indirectly, any action
designed to or that could reasonably be expected to cause or result in any stabilization or manipulation of the price of the Securities. 

5.    Certain Agreements of the Initial Purchasers. Each Initial Purchaser hereby represents and agrees that it has
not and will not use, authorize use of, refer to, or participate in the planning for use of, any written communication that constitutes an offer to sell or the solicitation of an offer to buy the Securities other than (i) the Preliminary
Offering Memorandum and the Offering Memorandum, (ii) any written communication that contains either (a) no “issuer information” (as defined in Rule 433(h)(2) under the Securities Act) or (b) “issuer information” that
was included (including through incorporation by reference) in the Time of Sale Information or the Offering Memorandum, (iii) any written communication listed on Annex A or prepared pursuant to Section 4(c) (including any electronic road
show) above, (iv) any written communication prepared by such Initial Purchaser and approved by the Company and the Representative in advance in writing or (v) any written communication relating to or that contains the terms of the
Securities or their offering and/or other information that was included (including through incorporation by reference) in the Time of Sale Information or the Offering Memorandum. 

6.    Conditions of Initial Purchasers’ Obligations. The obligation of each Initial Purchaser to purchase
Securities on the Closing Date as provided herein is subject to the performance by the Company and the Parent Guarantor of their respective covenants and other obligations hereunder and to the following additional conditions: 

(a)    Representations and Warranties. The representations and warranties of the Company and the Parent Guarantor
contained herein shall be true and correct on the date hereof and on and as of the Closing Date; and the statements of the Company, the Parent Guarantor and their respective officers made in any certificates delivered pursuant to this Agreement
shall be true and correct on and as of the Closing Date. 
 (b)    No Downgrade. Subsequent to the earlier of
(A) the Time of Sale and (B) the execution and delivery of this Agreement, (i) no downgrading shall have occurred in the rating accorded the Securities or any other debt securities or preferred stock issued or guaranteed by the Parent
Guarantor or any of its subsidiaries by any “nationally recognized statistical rating organization,” as such term is defined under Section 3(a)(62) under the Exchange Act and (ii) no such

 
organization shall have publicly announced that it has under surveillance or review, or has changed its outlook with respect to, its rating of the Securities or of any other debt securities or
preferred stock issued or guaranteed by the Parent Guarantor or any of its subsidiaries (other than an announcement with positive implications of a possible upgrading). 

(c)    No Material Adverse Change. No event or condition of a type described in Section 3(g) hereof shall have
occurred or shall exist, which event or condition is not described in each of the Time of Sale Information (excluding any amendment or supplement thereto) and the Offering Memorandum (excluding any amendment or supplement thereto) the effect of
which in the judgment of the Representative makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities on the terms and in the manner contemplated by this Agreement, the Time of Sale Information and the
Offering Memorandum. 
 (d)    Officer’s Certificates. The Representative shall have received on and as of
the Closing Date certificates of executive officers of the Company and of the Parent Guarantor who have specific knowledge of the Company’s or the Parent Guarantor’s financial matters, as applicable, and are satisfactory to the
Representative (i) confirming that such officer has carefully reviewed the Time of Sale Information and the Offering Memorandum and, to the knowledge of such officer, the representations set forth in Sections 3(a) and 3(b) hereof that are
true, (ii) confirming that the other representations and warranties of the Company and the Parent Guarantor in this Agreement are true and correct and that the Company and the Parent Guarantor have complied with all agreements and satisfied all
conditions on their part to be performed or satisfied hereunder at or prior to the Closing Date and (iii) to the effect set forth in paragraphs (b) and (c) above. 

(e)    Comfort Letters. On the date of this Agreement and on the Closing Date, each of KPMG LLP, Ernst &
Young LLP and BDO USA, LLP shall have furnished to the Representative, at the request of the Company, letters, dated the respective dates of delivery thereof and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to
the Representative, containing statements and information of the type customarily included in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain financial information contained or
incorporated by reference in each of the Time of Sale Information and the Offering Memorandum; provided that the letter delivered on the Closing Date shall use a “cut-off” date no more than
three business days prior to the Closing Date. 
 (f)    Opinion and 10b-5
Statement of Counsel for the Company. Vinson & Elkins L.L.P., counsel for the Company, shall have furnished to the Representative, at the request of the Company, their written opinion and 10b-5
statement (which may be included in the written opinion) dated the Closing Date and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to the Representative, to the effect set forth in Annex D hereto. 

 (g)    Opinion and 10b-5
Statement of Counsel for the Initial Purchasers. The Representative shall have received on and as of the Closing Date an opinion and 10b-5 statement, addressed to the Initial Purchasers, of
Latham & Watkins LLP, counsel for the Initial Purchasers, with respect to such matters as the Representative may reasonably request, and such counsel shall have received such documents and information as they may reasonably request to
enable them to pass upon such matters. 
 (h)    No Legal Impediment to Issuance. No action shall have been taken
and no statute, rule, regulation or order shall have been enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority that would, as of the Closing Date, prevent the issuance or sale of the Securities or the
issuance of the Guarantee; and no injunction or order of any federal, state or foreign court shall have been issued that would, as of the Closing Date, prevent the issuance or sale of the Securities or the issuance of the Guarantee. 

(i)    Good Standing. The Representative shall have received on and as of the Closing Date satisfactory evidence of
the good standing of the Parent Guarantor and its subsidiaries in their respective jurisdictions of organization and their good standing in such other jurisdictions as the Representative may reasonably request, in each case in writing or any
standard form of telecommunication from the appropriate governmental authorities of such jurisdictions. 

(j)    DTC. The Securities shall be eligible for clearance and settlement through DTC. 

(k)    Indenture and Securities. The Indenture shall have been duly executed and delivered by a duly authorized
officer of the Company, the Parent Guarantor and the Trustee, and the Securities shall have been duly executed and delivered by a duly authorized officer of the Company and duly authenticated by the Trustee. 

(l)    Existing Indebtedness. The Representative shall have received evidence reasonably satisfactory to it that,
substantially simultaneously with the purchase of the Securities by the Initial Purchasers, all outstanding Existing Indebtedness, and all accrued and unpaid interest, fees and other amounts owing thereunder, shall have been paid in full, all
commitments to extend credit under the Existing Indebtedness shall have terminated, and all liens securing obligations thereunder shall have been released. 

(m)    Credit Agreement. Concurrently with or prior to the Closing Date, the Company and the Parent Guarantor shall
have entered into the Credit Agreements consistent in all material respects with the terms described in the Time of Sale Information and the Offering Memorandum and the Representative shall have received conformed counterparts thereof. 

 (n)    Additional Documents. On or prior to the Closing Date, the
Company and the Parent Guarantor shall have furnished to the Representative such further certificates and documents as the Representative may reasonably request. 

All opinions, letters, certificates and evidence mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Initial Purchasers. 

7.    Indemnification and Contribution. 

(a)    Indemnification of the Initial Purchasers. The Company and the Parent Guarantor jointly and severally agree
to indemnify and hold harmless each Initial Purchaser, its affiliates, directors and officers and each person, if any, who controls such Initial Purchaser within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are
incurred), joint or several, that arise out of, or are based upon, any untrue statement or alleged untrue statement of a material fact contained in the Preliminary Offering Memorandum, any of the other Time of Sale Information, any Issuer Written
Communication or the Offering Memorandum (or any amendment or supplement thereto) or any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading, in each case except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representative expressly for use therein. 

(b)    Indemnification of the Structuring Agents. The Company and the Parent Guarantor jointly and severally agree
to indemnify and hold harmless the Structuring Agents, their affiliates, directors and officers and each person, if any, who controls the Structuring Agents within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, reasonable legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such
fees and expenses are incurred), joint and several, that arise out of the Structuring Agents’ role as sustainability-linked bond structuring agents; provided that the indemnification in this Section 7(b) will not apply to the extent
that there is a final judicial determination that such losses, claims, damages or liabilities resulted from the gross negligence or willful misconduct of the Structuring Agents in performing their services as sustainability-linked bond structuring
agents. 

 (c)    Indemnification of the Company and the Parent Guarantor.
Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless the Company, the Parent Guarantor, each of their respective directors and officers and each person, if any, who controls the Company or the Parent Guarantor
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that
arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to such Initial Purchaser furnished to the Company in writing by or on
behalf of such Initial Purchaser through the Representative expressly for use in the Preliminary Offering Memorandum, any of the other Time of Sale Information, any Issuer Written Communication or the Offering Memorandum (or any amendment or
supplement thereto), it being understood and agreed that the only such information consists of the following: the statements contained in the (i) fourth paragraph, (ii) fifth and sixth sentences of the seventh paragraph and
(iii) eighth paragraph, in each case, under the heading “Plan of distribution” in the Time of Sale Information and the Offering Memorandum. 

(d)    Notice and Procedures. If any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any person in respect of which indemnification may be sought pursuant to either paragraph (a), (b) or (c) above, such person (the “Indemnified Person”) shall
promptly notify the person against whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have
under paragraph (a), (b) or (c) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided, further, that the failure to notify the
Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise than under paragraph (a), (b) or (c) above. If any such proceeding shall be brought or asserted against an Indemnified Person and it
shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person (who shall not, without the consent of the Indemnified Person, be counsel to the Indemnifying Person)
to represent the Indemnified Person and any others entitled to indemnification pursuant to this Section 7 that the Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such proceeding and shall pay the
fees and expenses of such counsel related to such proceeding, as incurred. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such
Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the
Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named

 
parties in any such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees
and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be paid or reimbursed as they are incurred. Any such separate firm for any Initial Purchaser, its
affiliates, directors and officers and any control persons of such Initial Purchaser and for the Structuring Agents in their respective roles as sustainability-linked bond structuring agents, their respective affiliates, directors and officers and
control person shall be designated in writing by the Structuring Agents and any such separate firm for the Company, the Parent Guarantor, their respective directors and officers and any control persons of the Company and the Parent Guarantor shall
be designated in writing by the Company. The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the
Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or judgment. No Indemnifying Person shall, without the written consent of the Indemnified Person, effect any
settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (x) includes an
unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from all liability on claims that are the subject matter of such proceeding and (y) does not include any statement as to
or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person. 

(e)    Contribution. If the indemnification provided for in paragraph (a), (b) or (c) above is unavailable to
an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to
the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Parent Guarantor on the
one hand and the Initial Purchasers on the other from the offering of the Securities or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) but also the relative fault of the Company and the Parent Guarantor on the one hand and the Initial Purchasers on the other in connection with the statements or omissions that resulted in such losses, claims,
damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Parent Guarantor on the one hand and the Initial Purchasers and the Structuring Agents on the other shall be deemed
to be in the same respective 

 
proportions as the net proceeds (before deducting expenses) received by the Company from the sale of the Securities and the total discounts and commissions received by the Initial Purchasers in
connection therewith, as provided in this Agreement, bear to the aggregate offering price of the Securities. The relative fault of the Company and the Parent Guarantor on the one hand and the Initial Purchasers and the Structuring Agents on the
other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the
Parent Guarantor or by the Initial Purchasers and the Structuring Agents and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 

(f)    Limitation on Liability. The Company, the Parent Guarantor, the Initial Purchasers and the Structuring Agent
agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of
allocation that does not take account of the equitable considerations referred to in paragraph (e) above. The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph
(e) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in connection with any such action or claim. Notwithstanding the provisions of this
Section 7, in no event shall an Initial Purchaser or Structuring Agent be required to contribute any amount in excess of the amount by which the total discounts and commissions received by such Initial Purchaser with respect to the offering of
the Securities exceeds the amount of any damages that such Initial Purchaser or Structuring Agent has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ and Structuring Agents’
obligations to contribute pursuant to this Section 7 are several in proportion to their respective purchase obligations hereunder and not joint. 

(g)    Non-Exclusive Remedies. The remedies provided for in this
Section 7 are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Indemnified Person at law or in equity. 

8.    Effectiveness of Agreement. This Agreement shall become effective as of the date first written above. 

9.    Termination. This Agreement may be terminated in the absolute discretion of the Representative, by notice to
the Company, if after the execution and delivery of this Agreement and on or prior to the Closing Date (i) trading generally shall have been suspended or materially limited on the New 

 
York Stock Exchange or the over-the-counter market; (ii) trading of any securities issued or guaranteed by the
Company or the Parent Guarantor shall have been suspended on any national securities exchange or in any over-the-counter market; (iii) a general moratorium on
commercial banking activities shall have been declared by federal or New York State authorities; or (iv) there shall have occurred any outbreak or escalation of hostilities or any change in financial markets or any calamity or crisis, either
within or outside the United States, that, in the judgment of the Representative, is material and adverse and makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities on the terms and in the manner
contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum. 
 10.    Defaulting
Initial Purchaser. 
 (a)    If, on the Closing Date, any Initial Purchaser defaults on its obligation to purchase
the Securities that it has agreed to purchase hereunder, the non-defaulting Initial Purchasers may in their discretion arrange for the purchase of such Securities by other persons satisfactory to the Company
on the terms contained in this Agreement. If, within 36 hours after any such default by any Initial Purchaser, the non-defaulting Initial Purchasers do not arrange for the purchase of such Securities, then the
Company shall be entitled to a further period of 36 hours within which to procure other persons satisfactory to the non-defaulting Initial Purchasers to purchase such Securities on such terms. If other persons
become obligated or agree to purchase the Securities of a defaulting Initial Purchaser, either the non-defaulting Initial Purchasers or the Company may postpone the Closing Date for up to five full business
days in order to effect any changes that in the opinion of counsel for the Company or counsel for the Initial Purchasers may be necessary in the Time of Sale Information, the Offering Memorandum or in any other document or arrangement, and the
Company agrees to promptly prepare any amendment or supplement to the Time of Sale Information or the Offering Memorandum that effects any such changes. As used in this Agreement, the term “Initial Purchaser” includes, for all purposes of
this Agreement unless the context otherwise requires, any person not listed in Schedule 1 hereto that, pursuant to this Section 10, purchases Securities that a defaulting Initial Purchaser agreed but failed to purchase. 

(b)    If, after giving effect to any arrangements for the purchase of the Securities of a defaulting Initial Purchaser or
Initial Purchasers by the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate principal amount of such Securities that remains unpurchased does not exceed one-eleventh of the aggregate principal amount of all the Securities, then the Company shall have the right to require each non-defaulting Initial Purchaser to purchase the
principal amount of Securities that such Initial Purchaser agreed to purchase hereunder plus such Initial Purchaser’s pro rata share (based on the principal amount of Securities that such Initial Purchaser agreed to purchase
hereunder) of the Securities of such defaulting Initial Purchaser or Initial Purchasers for which such arrangements have not been made. 

 (c)    If, after giving effect to any arrangements for the purchase of
the Securities of a defaulting Initial Purchaser or Initial Purchasers by the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate principal amount of such
Securities that remains unpurchased exceeds one-eleventh of the aggregate principal amount of all the Securities, or if the Company shall not exercise the right described in paragraph (b) above, then this
Agreement shall terminate without liability on the part of the non-defaulting Initial Purchasers. Any termination of this Agreement pursuant to this Section 10 shall be without liability on the part of
the Company or the Parent Guarantor, except that the Company and the Parent Guarantor will continue to be liable for the payment of expenses as set forth in Section 11 hereof and except that the provisions of Section 7 hereof shall not
terminate and shall remain in effect. 
 (d)    Nothing contained herein shall relieve a defaulting Initial Purchaser of
any liability it may have to the Company, the Parent Guarantor or any non-defaulting Initial Purchaser for damages caused by its default. 

11.    Payment of Expenses. 

(a)    Whether or not the transactions contemplated by this Agreement are consummated or this Agreement is terminated, the
Company and the Parent Guarantor jointly and severally agree to pay or cause to be paid all costs and expenses incident to the performance of their respective obligations hereunder, including without limitation, (i) the costs incident to the
authorization, issuance, sale, preparation and delivery of the Securities and any transfer taxes payable in that connection; (ii) the costs incident to the preparation and printing of the Preliminary Offering Memorandum, any other Time of Sale
Information, any Issuer Written Communication and the Offering Memorandum (including any amendment or supplement thereto) and the distribution thereof; (iii) the costs of reproducing and distributing each of the Transaction Documents;
(iv) the fees and expenses of the Company’s and the Parent Guarantor’s counsel and independent accountants; (v) the fees and expenses incurred in connection with the qualification and determination of eligibility for investment
of the Securities under the laws of such jurisdictions as the Representative may designate and the preparation, printing and distribution of a Blue Sky Memorandum (including the related fees and expenses of counsel for the Initial
Purchasers); (vi) any fees charged by rating agencies for rating the Securities; (vii) the fees and expenses of the Trustee and any paying agent (including related fees and expenses of any counsel to such parties); (viii) the fees and
expenses of the External Verifier (as defined in the Time of Sale Information and the Offering Memorandum), the second party opinion provider and all other fees and expenses associated with the Company’s establishment of a sustainability-linked
bond framework (ix) all expenses and application fees incurred in connection with the approval of the Securities for book-entry transfer by DTC; and (x) all expenses incurred by the Company in connection with any “road show”
presentation to potential investors. 

 (b)    If (i) this Agreement is terminated pursuant to clause
(ii) of Section 9, (ii) the Company for any reason fails to tender the Securities for delivery to the Initial Purchasers or (iii) the Initial Purchasers decline to purchase the Securities for any reason permitted under this Agreement,
the Company and the Parent Guarantor jointly and severally agree to reimburse the Initial Purchasers for all out-of-pocket costs and expenses (including the reasonable
fees and expenses of their counsel) reasonably incurred by the Initial Purchasers in connection with this Agreement and the offering contemplated hereby. 

12.    Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective successors and the officers and directors and any controlling persons referred to herein, and the affiliates of each Initial Purchaser referred to in Section 7 hereof. Nothing in this Agreement is
intended or shall be construed to give any other person any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein. No purchaser of Securities from any Initial Purchaser shall be deemed to
be a successor merely by reason of such purchase. 
 13.    Survival. The respective indemnities, rights of
contribution, representations, warranties and agreements of the Company, the Parent Guarantor and the Initial Purchasers contained in this Agreement or made by or on behalf of the Company, the Parent Guarantor or the Initial Purchasers pursuant to
this Agreement or any certificate delivered pursuant hereto shall survive the delivery of and payment for the Securities and shall remain in full force and effect, regardless of any termination of this Agreement or any investigation made by or on
behalf of the Company, the Parent Guarantor or the Initial Purchasers. 
 14.    Certain Defined Terms. For
purposes of this Agreement, (a) except where otherwise expressly provided, the term “affiliate” has the meaning set forth in Rule 405 under the Securities Act; (b) the term “business day” means any day
other than a day on which banks are permitted or required to be closed in New York City; (c) the term “subsidiary” has the meaning set forth in Rule 405 under the Securities Act; (d) the term “Exchange
Act” collectively means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder; and (e) the term “written communication” has the meaning set forth in Rule 405 under
the Securities Act. 
 15.    Compliance with USA Patriot Act. In accordance with the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Initial Purchasers are required to obtain, verify and record information that identifies their respective clients,
including the Company, which information may include the name and address of their respective clients, as well as other information that will allow the Initial Purchasers to properly identify their respective clients. 

 16.    Miscellaneous. 

(a)    Authority of the Representative. Any action by the Initial Purchasers hereunder may be taken by the
Representative on behalf of the Initial Purchasers, and any such action taken by the Representative shall be binding upon the Initial Purchasers. 

(b)    Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been
duly given if mailed or transmitted and confirmed by any standard form of telecommunication. Notices to the Initial Purchasers shall be given to the Representative c/o J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179;
Attention: Jack Smith. Notices to the Company and the Parent Guarantor shall be given to them at 2700 Post Oak Blvd., Suite 300, Houston, Texas 77056, Attention: General Counsel (email: tcarpenter@kinetik.com). 

(c)    Governing Law. This Agreement and any claim, controversy or dispute arising under or related to this
Agreement shall be governed by and construed in accordance with the laws of the State of New York. 

(d)    Submission to Jurisdiction. The Company and the Parent Guarantor hereby submit to the exclusive jurisdiction
of the U.S. federal and New York state courts in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. The Company and the Parent Guarantor
waive any objection which it may now or hereafter have to the laying of venue of any such suit or proceeding in such courts. Each of the Company and the Parent Guarantor agrees that final judgment in any such suit, action or proceeding brought in
such court shall be conclusive and binding upon the Company and the Parent Guarantor, as applicable, and may be enforced in any court to the jurisdiction of which Company and the Parent Guarantor, as applicable, is subject by a suit upon such
judgment. 
 (e)    Waiver of Jury Trial. Each of the parties hereto hereby waives any right to trial by jury in
any suit or proceeding arising out of or relating to this Agreement. 
 (f)    Recognition of the U.S. Special
Resolution Regimes. 
 (i) In the event that any Initial Purchaser that is a Covered Entity becomes subject to a
proceeding under a U.S. Special Resolution Regime, the transfer from such Initial Purchaser of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under
the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States. 

 (ii) In the event that any Initial Purchaser that is a Covered Entity or a
BHC Act Affiliate of such Initial Purchaser becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Initial Purchaser are permitted to be exercised to no greater
extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States. 

As used in this Section 16(f): 

“BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12
U.S.C. § 1841(k). 
 “Covered Entity” means any of the following: 

(i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); 

(ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or 

(iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b). 

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R.
§§ 252.81, 47.2 or 382.1, as applicable. 
 “U.S. Special Resolution Regime” means each of (i) the Federal
Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder. 

(g)    Counterparts. This Agreement may be signed in counterparts (which may include counterparts delivered by any
standard form of telecommunication), each of which shall be an original and all of which together shall constitute one and the same instrument. The words “execution,” “signed,” “signature,” “delivery,” and
words of like import in or relating to this Agreement or any document to be signed in connection with this Agreement shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of
the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, and the parties hereto consent to conduct the transactions
contemplated hereunder by electronic means. 

 (h)    Amendments or Waivers. No amendment or waiver of any
provision of this Agreement, nor any consent or approval to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto. 

(i)    Headings. The headings herein are included for convenience of reference only and are not intended to be part
of, or to affect the meaning or interpretation of, this Agreement. 

 If the foregoing is in accordance with your understanding, please indicate your acceptance
of this Agreement by signing in the space provided below. 
  

			
	Very truly yours,
	
	KINETIK HOLDINGS, LP
		
	By:	 	Altus Midstream GP LLC, its general partner
		
	By:	 	Kinetik Holdings Inc, its sole manager
		
	By:	 	 /s/ Jamie Welch

	Name:	 	Jamie Welch
	Title:	 	President, Chief Executive Officer & Chief Financial Officer
	
	KINETIK HOLDINGS INC.
		
	By:	 	 /s/ Jamie Welch

	Name:	 	Jamie Welch
	Title:	 	President, Chief Executive Officer & Chief Financial Officer

			
	Accepted: As of the date first written above
	
	J.P. MORGAN SECURITIES LLC
	
	For itself and on behalf of the
	several Initial Purchasers listed
	in Schedule 1 hereto.
		
	By:	 	 /s/ Hunter Bollman

	Name:	 	Hunter Bollman
	Title:	 	Executive Director

 Schedule 1 
  

					
	 Initial Purchaser
	  	Principal
Amount	 
	 J.P. Morgan Securities LLC
	  	$	90,000,000	 
	 Morgan Stanley & Co. LLC
	  	$	90,000,000	 
	 Credit Suisse Securities (USA) LLC
	  	$	90,000,000	 
	 Barclays Capital Inc.
	  	$	90,000,000	 
	 BofA Securities, Inc.
	  	$	65,000,000	 
	 Mizuho Securities USA LLC
	  	$	65,000,000	 
	 MUFG Securities Americas Inc.
	  	$	65,000,000	 
	 PNC Capital Markets LLC
	  	$	65,000,000	 
	 RBC Capital Markets, LLC
	  	$	65,000,000	 
	 TD Securities (USA) LLC
	  	$	65,000,000	 
	 Truist Securities, Inc.
	  	$	65,000,000	 
	 Wells Fargo Securities, LLC
	  	$	65,000,000	 
	 Blackstone Securities Partners L.P.
	  	$	30,000,000	 
	 Citigroup Global Markets Inc.
	  	$	30,000,000	 
	 Goldman Sachs & Co. LLC
	  	$	30,000,000	 
	 Scotia Capital (USA) Inc.
	  	$	30,000,000	 
	 Total
	  	$	1,000,000,000	 

 Schedule 2 

Subsidiaries 
  

			
	 Entity
	  	 State of Formation

	 Altus Midstream GP LLC
	  	 Delaware

	 Kinetik Holdings LP
	  	 Delaware

	 Altus Midstream Subsidiary GP LLC
	  	 Delaware

	 Altus Midstream Gathering LP
	  	 Delaware

	 Altus Midstream Processing LP
	  	 Delaware

	 Altus Midstream NGL Pipeline LP
	  	 Delaware

	 Altus Midstream Pipeline LP
	  	 Delaware

	 BCP Raptor Holdco, LP
	  	 Delaware

	 BCP Raptor Holdco GP, LLC
	  	 Delaware

	 BCP Management Services, LLC
	  	 Delaware

	 BCP Raptor Midco, LLC
	  	 Delaware

	 BCP Raptor Intermediate Holdco, LLC
	  	 Delaware

	 BCP Raptor, LLC
	  	 Delaware

	 EagleClaw Midstream Ventures, LLC
	  	 Delaware

	 Pinnacle Midstream, LLC
	  	 Delaware

	 Dew Point Midstream, LLC
	  	 Delaware

	 EagleClaw Gas Gathering, LLC
	  	 Delaware

	 Permian Gas, LLC
	  	 Delaware

	 EagleClaw Toyah Ventures Holdings, LLC
	  	 Delaware

	 Pinnacle Transpecos Processing, LLC
	  	 Delaware

	 Pinnacle Transpecos Midstream Gas, LLC
	  	 Delaware

	 EagleClaw Toyah Ventures, LLC
	  	 Delaware

	 EagleClaw Procurement Company, LLC
	  	 Delaware

	 BCP Raptor Intermediate Holdco II, LLC
	  	 Delaware

	 BCP Raptor II, LLC
	  	 Delaware

	 CR Permian Holdings, LLC
	  	 Texas

	 CR Permian Processing, LLC
	  	 Texas

	 CR Field Services, LLC
	  	 Texas

	 CR Permian Crude, LLC
	  	 Texas

	 CR Permian Natural Gas Transmission, LLC
	  	 Texas

	 Pinnacle Transpecos Midstream, LLC
	  	 Delaware

	 Pinnacle Transpecos Stabilization, LLC
	  	 Delaware

	 Sierra Grande Connector, LLC
	  	 Delaware

	 BCP Raptor Intermediate Holdco III, LLC
	  	 Delaware

	 BCP Raptor III, LLC
	  	 Delaware

	 EagleClaw Marketing, LLC
	  	 Delaware

	 EagleClaw Intrastate Ventures, LLC
	  	 Delaware

	 EagleClaw Crude Marketing, LLC
	  	 Delaware

	 BCP Residue Pipeco, LLC
	  	 Delaware

	 Delaware Link Ventures Holdings, LLC
	  	 Delaware

	 Delaware Link Ventures, LLC
	  	 Delaware

	 BCP PHP Intermediate Holdco, LLC
	  	 Delaware

	 BCP PHP, LLC
	  	 Delaware

 ANNEX A 

Additional Time of Sale Information 

1.    Term sheet containing the terms of the Securities, substantially in the form of Annex B. 

 ANNEX B 

PRICING TERM SHEET 
 DATED JUNE 1, 2022 

KINETIK HOLDINGS LP 

5.875% SUSTAINABILITY-LINKED SENIOR NOTES DUE 2030 

The information in this pricing term sheet supplements the preliminary offering memorandum, dated June 1, 2022 (the “Preliminary Offering
Memorandum”), and supplements and supersedes the information in the Preliminary Offering Memorandum to the extent supplementary to or inconsistent with the information in the Preliminary Offering Memorandum. In all other respects, this pricing
term sheet is qualified in its entirety by reference to the Preliminary Offering Memorandum and should be read together with the Preliminary Offering Memorandum. Terms used but not defined herein shall have the respective meanings set forth in the
Preliminary Offering Memorandum. 
 The notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the
securities laws of any other jurisdiction, and are being offered only to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act and outside the United States to non-U.S. persons in
accordance with Regulation S under the Securities Act. For details about eligible offers, deemed representations and agreements by investors and transfer restrictions, see “Transfer restrictions” in the Preliminary Offering Memorandum.

  

			
	Issuer:	  	Kinetik Holdings LP
		
	Securities Title:	  	5.875% Sustainability-Linked Senior Notes due 2030 (the “notes”)
		
	Principal Amount:	  	$1,000,000,000
		
	Gross Proceeds:	  	$995,880,000
		
	Distribution:	  	144A and Regulation S (no registration rights)
		
	Maturity Date:	  	June 15, 2030
		
	Interest Rate:	  	5.875%
		
	Interest Payment Dates:	  	June 15 and December 15, commencing on December 15, 2022
		
	Record Dates:	  	June 1 and December 1 of each year
		
	Interest Rate Step-Up Date (if SPTs have not been satisfied and verified):	  	June 15, 2027 (with the first payment on such stepped-up interest rate due on December 15, 2027)
		
	Subsequent SPT Notice Date (if SPT 1 and/or SPT 2 are satisfied and verified subsequent to the Interest Rate Step-Up Date):	  	June 15, 2029 (with the first payment on such interest rate due on December 15, 2029)
		
	Issue Price:	  	99.588% plus any accrued interest from the settlement date
		
	Yield to Maturity:	  	5.94%
		
	Spread to Treasury:	  	+300 basis points
		
	Benchmark Treasury:	  	UST 0.625% due May 15, 2030
		
	Ratings:*	  	Ba1/BB+/BB+
		
	Trade Date:	  	June 1, 2022

  
 1 

			
	Settlement Date:**	  	June 8, 2022 (T+5)
		
	CUSIP Numbers:	  	 144A: 49461MAA8
 Reg. S: U49467
AA8

		
	ISIN Numbers:	  	 144A: US49461MAA80
 Reg. S:
USU49467AA87

		
	Denominations:	  	$2,000 and multiples of $1,000 in excess thereof
		
	Global Coordinators:	  	 J.P. Morgan Securities LLC
 Morgan
Stanley & Co. LLC
 Credit Suisse Securities (USA) LLC

Barclays Capital Inc.

		
	Active Bookrunners:	  	 BofA Securities, Inc.
 Mizuho Securities
USA LLC
 MUFG Securities Americas Inc.
 PNC Capital Markets
LLC
 RBC Capital Markets, LLC
 TD Securities (USA) LLC

Truist Securities, Inc.
 Wells Fargo Securities, LLC

		
	Passive Bookrunners:	  	 Blackstone Securities Partners L.P.

Citigroup Global Markets Inc.
 Goldman Sachs & Co. LLC

Scotia Capital (USA) Inc.

		
	Sustainability-Linked Bond Structuring Agents to the Issuer	  	 J.P. Morgan Securities LLC
 Credit Suisse
Securities (USA) LLC
 Barclays Capital Inc.

		
	Optional Redemption:	  	 Make-whole call @ T+50 bps prior to June 15, 2025, then:
  

On or after June 15, 2025:

  

							
	 A
	  	 B
	  	 C
	  	 D

	 Redemption Price

(if (x) all Sustainability Performance Targets are not satisfied, but an Expected SPT Satisfaction Certificate is delivered for all three
Sustainability Performance Targets or (y) all Sustainability Performance Targets are satisfied)
	  	 Redemption Price

(if all Sustainability Performance Targets are not satisfied, but an Expected SPT Satisfaction Certificate is delivered for two of three
Sustainability Performance Targets)
	  	 Redemption Price

(if all Sustainability Performance Targets are not satisfied, but an Expected SPT Satisfaction Certificate is delivered for one of three
Sustainability Performance Targets)
	  	 Redemption Price

(if all Sustainability Performance Targets are not satisfied and no Expected SPT Satisfaction Certificate is delivered)

  

																	
	 Year
	  	Percentage	 
	 2025
	  	 	102.938	% 	  	 	102.979	% 	  	 	103.021	% 	  	 	103.062	% 
	 2026
	  	 	101.469	% 	  	 	101.490	% 	  	 	101.510	% 	  	 	101.531	% 
	 2027 and thereafter
	  	 	100.000	% 	  	 	100.000	% 	  	 	100.000	% 	  	 	100.000	% 

  
 2 

			
	Change of Control:	 	Putable at 101% of principal, plus accrued and unpaid interest; provided that, if it occurs prior to delivery by the Issuer of a Satisfaction Notification on or before the Step-Up Notice Date and an Expected SPT
Satisfaction Certificate is not delivered with respect to each SPT, then such purchase price shall be increased by 0.0833% for each SPT not set forth in such Expected SPT Satisfaction Certificate as expected to be satisfied on or before the Step-Up
Notice Date)

  
  

* Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

  
  

** Delivery of the notes will be made to investors on or about the fifth business day following the date hereof. Under Rule 15c6-1(a)
promulgated under the Securities Exchange Act of 1934, trades in the secondary market are required to settle in two business days, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade notes prior
to the second business day prior to the delivery of the notes will be required, by virtue of the fact that the notes initially settle T+5, to specify an alternate settlement arrangement at the time of any such trade to prevent a failed settlement.
Purchasers of the notes who wish to trade the notes prior to the second day prior to their date of delivery hereunder should consult their advisors. 
  

 
 This
communication is intended for the sole use of the person to whom it is provided by the sender. This material is confidential and is for your information only and is not intended to be used by anyone other than you. This information does not purport
to be a complete description of the notes or the offering. This communication does not constitute an offer to sell or the solicitation of an offer to buy any notes in any jurisdiction to any person to whom it is unlawful to make such offer or
solicitation in such jurisdiction. Please refer to the Preliminary Offering Memorandum for a complete description. 
 The notes have
not been registered under the Securities Act, or any other securities laws, and may not be offered or sold within the United States or any other jurisdiction, except pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act and any other applicable securities laws. The initial purchasers are initially offering the notes only (1) to persons reasonably believed to be qualified institutional buyers as defined in, and in reliance on, Rule
144A under the Securities Act and (2) outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act. 

ANY LEGENDS, DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH
LEGENDS, DISCLAIMERS OR OTHER NOTICES HAVE BEEN AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION HAVING BEEN SENT VIA BLOOMBERG OR ANOTHER SYSTEM. 

  
 3 

 ANNEX C 

Restrictions on Offers and Sales Outside the United States 

In connection with offers and sales of Securities outside the United States: 

(a)    Each Initial Purchaser acknowledges that the Securities have not been registered under the Securities Act and may
not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in transactions not subject to, the registration requirements of the Securities Act. 

(b)    Each Initial Purchaser, severally and not jointly, represents, warrants and agrees that: 

(i)    Such Initial Purchaser has offered and sold the Securities, and will offer and sell the Securities,
(A) as part of their distribution at any time and (B) otherwise until 40 days after the later of the commencement of the offering of the Securities and the Closing Date, only in accordance with Regulation S under the Securities Act
(“Regulation S”) or Rule 144A or any other available exemption from registration under the Securities Act. 

(ii)    None of such Initial Purchaser or any of its affiliates or any other person acting on its or their
behalf has engaged or will engage in any directed selling efforts with respect to the Securities, and all such persons have complied and will comply with the offering restrictions requirement of Regulation S. 

(iii)    At or prior to the confirmation of sale of any Securities sold in reliance on Regulation S, such Initial Purchaser
will have sent to each distributor, dealer or other person receiving a selling concession, fee or other remuneration that purchases Securities from it during the distribution compliance period a confirmation or notice to substantially the following
effect: 
 The Securities covered hereby have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities
Act”), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise until 40 days after the later of the commencement
of the offering of the Securities and the date of original issuance of the Securities, except in accordance with Regulation S or Rule 144A or any other available exemption from registration under the Securities Act. Terms used above have the
meanings given to them by Regulation S. 

 (iv)    Such Initial Purchaser has not and will not
enter into any contractual arrangement with any distributor with respect to the distribution of the Securities, except with its affiliates or with the prior written consent of the Company. 

Terms used in paragraph (a) and this paragraph (b) and not otherwise defined in this Agreement have the meanings given to them by Regulation S. 

 ANNEX D 

Form of Opinion of Counsel for the Company and the Parent Guarantor 

See attached.Exhibit
10.1

 

THE
ARENA GROUP HOLDINGS, INC.

2022 STOCK AND INCENTIVE COMPENSATION PLAN

 

1.
Purpose of the Plan.

 

The
purpose of this Plan is to enhance shareholder value by linking the compensation of officers, directors, key employees and consultants
of the Company to increases in the price of The Arena Group Holdings, Inc. common stock and the achievement of other performance objectives,
and to encourage ownership in the Company by key personnel whose long-term employment is considered essential to the Company’s
continued progress and success. The Plan is also intended to assist the Company in the recruitment of new employees and to motivate,
retain and encourage such employees and directors to act in the shareholders’ interest and share in the Company’s success.
In addition, the purpose of this amended and restated Plan is to incorporate the ability to offer Employees options to purchase the Company’s
Shares that qualify as Incentive Stock Options, subject to the approval of the shareholders of the Company.

 

2.
Definitions.

 

As
used herein, the following definitions shall apply:

 

“Administrator”
means the Board, any Committee or such delegates as shall be administering the Plan in accordance with Section 4.

 

“Affiliate”
means any Subsidiary or other entity that is directly or indirectly controlled by the Company or any entity in which the Company
has a significant ownership interest as determined by the Administrator. The Administrator shall, in its sole discretion, determine which
entities are classified as Affiliates and designated as eligible to participate in this Plan.

 

“Applicable
Law” means the requirements relating to the administration of stock option plans under U.S. federal and state laws, any stock
exchange or quotation system on which the Company has listed or submitted for quotation the Common Shares to the extent provided under
the terms of the Company’s agreement with such exchange or quotation system and, with respect to Awards subject to the laws of
any foreign jurisdiction where Awards are, or will be, granted under the Plan, the laws of such jurisdiction.

 

“Award”
means a Stock Award, Option, Stock Appreciation Right, Stock Unit, or Other Stock-Based Award granted in accordance with the terms
of the Plan, or any other property (including cash) granted pursuant to the Plan.

 

“Awardee”
means an Employee, Director or Consultant who has been granted an Award under the Plan.

 

“Award
Agreement” means a Stock Award Agreement, Option Agreement, Stock Appreciation Right Agreement, Restricted Stock Agreement,
Restricted Stock Unit Agreement or Other Stock-Based Award Agreement, which may be in written or electronic format, in such form and
with such terms as may be specified by the Administrator, evidencing the terms and conditions of an individual Award. Each Award Agreement
is subject to the terms and conditions of the Plan. The Award Agreement shall be delivered to the Participant receiving such Award upon,
or as promptly as is reasonably practicable following, the grant of such Award. The effectiveness of an Award shall not be subject to
the Award Agreement’s being signed by the Company or the Participant receiving the Award unless specifically so provided in the
Award Agreement.

 

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

 

    	 

    	 

    

 

“Change
of Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the
following events:

 

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

 

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

 

(iii)
there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets
of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated
assets of the Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting power of the voting securities
of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the outstanding voting
securities of the Company immediately prior to such sale, lease, license or other disposition.

 

Notwithstanding
the foregoing definition or any other provision of this Plan, (A) the term Change of Control will not include a sale of assets, merger
or other transaction effected exclusively for the purpose of changing the domicile of the Company, (B) the definition of Change of Control
(or any analogous term) in an individual written agreement between the Company or any Affiliate and the Participant will supersede the
foregoing definition with respect to Stock Awards subject to such agreement; provided, however, that if no definition of Change of Control
or any analogous term is provided in an individual written agreement, the foregoing definition will apply and (C) if any payment or distribution
event applicable to an Award is subject to the requirements of Section 409A(a)(2)(A) of the Code, the determination of the occurrence
of a Change of Control shall be governed by applicable provisions of Section 409A(a)(2)(A) of the Code for purposes of determining whether
such payment or distribution may then occur.

 

    	2

    	 

    

 

“Code”
means the United States Internal Revenue Code of 1986, as amended, and any successor thereto, the Treasury Regulations thereunder
and other relevant, lawful interpretive guidance issued by the Internal Revenue Service or the Treasury Department. Reference to any
specific section of the Code shall be deemed to include such regulations and guidance, as well as any successor provision of the Code.

 

“Committee”
means a committee of Directors appointed by the Board in accordance with Section 4 or, in the absence of any such special appointment,
the Compensation Committee of the Board. If there is no Compensation Committee, the full Board shall constitute the Committee.

 

“Common
Shares” means the common stock of the Company or any security of the Company issued in substitution, exchange or lieu thereof.

 

“Company”
means The Arena Group Holdings, Inc. or, except as utilized in the definition of Change of Control, its successor.

 

“Consultant”
means an individual providing services to the Company or any of its Affiliates as an independent contractor, and includes prospective
consultants who have accepted offers of consultancy for the Company or any of its Affiliates, so long as such person (i) renders bona
fide services that are not in connection with the offer and sale of the Company’s securities in a capital-raising transaction,
(ii) does not directly or indirectly promote or maintain a market for the Company’s securities, and (iii) otherwise qualifies as
a consultant under the applicable rules of the SEC for registration of shares of stock on a Form S-8 registration statement.

 

“Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant,
is not interrupted or terminated. A change in the capacity in which the Participant renders service to the Company or an Affiliate as
an Employee, Director, or Consultant or a change in the Entity for which the Participant renders the service, provided that there is
no interruption or termination of the Participant’s service with the Company or an Affiliate, will not terminate a Participant’s
Continuous Service; provided, however, if the Entity for which a Participant is rendering service ceases to qualify as an Affiliate,
as determined by the Board in its sole discretion, the Participant’s Continuous Service will be considered to have terminated on
the date the Entity ceases to qualify as an Affiliate. For example, a change in status from an Employee of the Company to a Consultant
of an Affiliate or to a Director will not constitute an interruption of Continuous Service. To the extent permitted by law, the Board
or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service will be
considered interrupted in the case of (i) any leave of absence approved by the Board or chief executive officer, including sick leave,
military leave or any other personal leave, or (ii) transfers between the Company, an Affiliate, or their successors. Notwithstanding
the foregoing, a leave of absence will be treated as Continuous Service for purposes of vesting in a Stock Award only to the extent as
may be provided in the Company’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable
to the Participant, or as otherwise required by law.

 

    	3

    	 

    

 

“Conversion
Award” has the meaning set forth in Section 4(b)(xii).

 

“Corporate
Transaction” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the
following events: (i) the consummation of a sale or other disposition of all or substantially all, as determined by the Board in its
sole discretion, of the consolidated assets of the Company and its Subsidiaries; (ii) the consummation of a sale or other disposition
of more than fifty percent (50%) of the outstanding securities of the Company; (iii) the consummation of a merger, consolidation or similar
transaction following which the Company is not the surviving corporation; or (iv) the consummation of a merger, consolidation or similar
transaction following which the Company is the surviving corporation but the Common Shares outstanding immediately preceding the merger,
consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other
property, whether in the form of securities, cash or otherwise.

 

“Director”
means a member of the Board. Any Director who does not serve as an employee of the Company is referred to herein as a “Non-employee
Director.

 

“Disability”
means the inability of a Participant to engage in any substantially gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than twelve (12) months as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code and will be determined by the Board
on the basis of such medical evidence as the Board deems warranted under the circumstances.

 

“Disaffiliation”
means a Subsidiary’s or Affiliate’s ceasing to be a Subsidiary or Affiliate for any reason (including, without limitation,
because of a public offering, or a spin-off or sale by the Company, of the stock of the Subsidiary or Affiliate) or a sale of a division
of the Company and its Affiliates.

 

“Employee”
means a regular, active employee of the Company or any Affiliate, including an Officer or Director who is also a regular, active
employee of the Company or any Affiliate. For any and all purposes under the Plan, the term “Employee” shall not include
a person hired as a leased employee, Consultant or a person otherwise designated by the Administrator, the Company or an Affiliate at
the time of hire as not eligible to participate in or receive benefits under the Plan or not on the payroll, even if such ineligible
person is subsequently determined to be a common law employee of the Company or an Affiliate or otherwise an employee by any governmental
or judicial authority. Unless otherwise determined by the Administrator in its sole discretion, for purposes of the Plan, an Employee
shall be considered to have terminated employment and to have ceased to be an Employee if his or her employer ceases to be an Affiliate,
even if he or she continues to be employed by such employer.

 

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

 

    	4

    	 

    

 

“Exchange
Act” means the United States Securities Exchange Act of 1934, as amended, and any successor thereto, the Securities and Exchange
Commission regulations thereunder and other relevant, lawful interpretive guidance issued by such Commission.

 

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

 

“Fair
Market Value” means the closing price for the Common Shares reported on a consolidated basis on the primary national securities
exchange on which such Common Shares are traded on the date of measurement, or if the Common Shares were not traded on such measurement
date, then on the next preceding date on which Common Shares were traded, all as reported by such source as the Committee may select.
If the Common Shares are not listed on a national securities exchange, Fair Market Value shall be determined by the Committee in its
good faith discretion, considering, to the extent appropriate, the requirements of Sections 409A and 422 of the Code and bid and offered
prices on any applicable over the counter market.

 

“Grant
Date” means, with respect to each Award, the date upon which the Award is granted to an Awardee pursuant to this Plan, which
may be a designated future date as of which such Award will be effective, as determined by the Committee.

 

“Incentive
Stock Option” means an Option that is identified in the Option Agreement as intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code and that does so qualify.

 

“Nonqualified
Stock Option” means an Option that is not an Incentive Stock Option.

 

“Officer”
means an officer of the Company within the meaning of Section 16 of the Exchange Act.

 

“Option”
means a right granted under Section 8 to purchase a number of Shares at such exercise price, at such times, and on such other terms
and conditions as are specified in the agreement or other documents evidencing the Award (the “Option Agreement”).
Both Incentive Stock Options and Nonqualified Stock Options may be granted under the Plan.

 

“Other
Stock-Based Award” means an Award granted pursuant to Section 12 on such terms and conditions as are specified in the agreement
or other documents evidencing the Award (the “Other Stock-Based Award Agreement”).

 

    	5

    	 

    

 

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

 

“Participant”
means the Awardee or any person (including any estate) to whom an Award has been assigned or transferred as permitted hereunder.

 

“Performance
Criteria” shall have the meaning set forth in Section 13(b).

 

“Plan”
means this 2022 Stock and Incentive Compensation Plan, as set forth herein and as amended from time to time.

 

“Securities
Act” means the United States Securities Act of 1933, as amended, and any successor thereto, the Securities and Exchange Commission
regulations thereunder and other relevant, lawful interpretive guidance issued by such Commission.

 

“Share”
means a Common Share, as adjusted in accordance with Section 15.

 

“Stock
Appreciation Right” or “SAR” means a right granted under Section 10 on such terms and conditions as are
specified in the agreement or other documents evidencing the Award (the “Stock Appreciation Right Agreement”).

 

“Stock
Award” means an award or issuance of Shares made under Section 11, the grant, issuance, retention, vesting and transferability
of which is subject during specified periods of time to such conditions (including, without limitation, continued employment or performance
conditions) and terms as are expressed in the agreement or other documents evidencing the Award (the “Stock Award Agreement”).

 

“Stock
Unit” means a bookkeeping entry representing an amount equivalent to the Fair Market Value of one Share, payable in cash, property
or Shares. Stock Units represent an unfunded and unsecured obligation of the Company, except as otherwise provided for by the Administrator.

 

“Stock
Unit Award” means an award or issuance of Stock Units made under Section 12 of the Plan, the grant, issuance, retention, vesting
and transferability of which is subject during specified periods of time to such conditions (including, without limitation, continued
employment or performance conditions) and terms as are expressed in the agreement or other documents evidencing the Award (the “Stock
Unit Award Agreement”).

 

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

 

    	6

    	 

    

 

“Termination
for Cause” means, unless otherwise provided in an Award Agreement, Termination of Employment on account of any of the following
events: (i) the Participant’s commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws
of the United States or any state thereof; (ii) the Participant’s attempted commission of, or participation in, a fraud or act
of dishonesty against the Company; (iii) the Participant’s intentional, material violation of any contract or agreement between
the Participant and the Company or of any statutory duty owed to the Company; (iv) the Participant’s unauthorized use or disclosure
of the Company’s confidential information or trade secrets; or (v) the Participant’s gross misconduct; , provided that, for
an Employee who is party to an individual severance or employment agreement defining Cause, “Cause” shall have the meaning
set forth in such agreement except as may be otherwise provided in such agreement. For purposes of this Plan, a Participant’s Termination
of Employment shall be deemed to be a Termination for Cause if, after the Participant’s employment has terminated, facts and circumstances
are discovered that would have justified, in the opinion of the Committee, a Termination for Cause.

 

“Termination
of Employment” means, for purposes of this Plan, unless otherwise determined by the Administrator, ceasing Continuous Service
as an Employee (as determined in accordance with Section 3401(c) of the Code) of the Company and any of its Subsidiaries or Affiliates.
The term shall also be deemed to include cessation of a relationship as a Contractor (without related assumption of Employee status).
Unless otherwise determined by the Committee in the terms of an Award Agreement or otherwise, if a Participant’s employment with
the Company and its Affiliates terminates but such Participant continues to provide services to the Company and its Affiliates in a Non-employee
Director capacity, such change in status shall not be deemed a Termination of Employment. A Participant employed by, or performing services
for, a Subsidiary or an Affiliate or a division of the Company and its Affiliates shall be deemed to incur a Termination of Employment
if, as a result of a Disaffiliation, such Subsidiary, Affiliate, or division ceases to be a Subsidiary, Affiliate or division, as the
case may be, and the Participant does not immediately thereafter become an Employee of (or service provider for), or member of the board
of directors of, the Company or another Subsidiary or Affiliate. Temporary absences from employment because of illness, vacation or leave
of absence and transfers among the Company and its Subsidiaries and Affiliates shall not be considered Terminations of Employment. In
addition, Termination of Employment shall mean a “separation from service” within the meaning of Code Section 409A whenever
necessary to ensure compliance therewith for any payment or settlement of a benefit conferred under this Plan that is subject to such
Code section, and, for such purposes, shall be determined based upon a reduction in the bona fide level of services performed to a level
equal to twenty percent (20%) or less of the average level of services performed by the Employee during the immediately preceding 36-month
period.

 

3.
Stock Subject to the Plan.

 

(a)
Aggregate Limit. Subject to the provisions of Section 15(a), the maximum aggregate number of Shares which may be subject to or
delivered under Awards granted under the Plan is 1,800,000 Shares. Shares subject to or delivered under Conversion Awards shall
not reduce the aggregate number of Shares which may be subject to or delivered under Awards granted under this Plan. The Shares issued
under the Plan may be either Shares reacquired by the Company, including Shares purchased in the open market, or authorized but unissued
Shares.

 

    	7

    	 

    

 

(b)
Code Section 422 Limits; Limit on Awards to Directors; Limit on Stock Performance Awards. Subject to the provisions of Section
15(a), the aggregate number of Shares that may be subject to all Incentive Stock Options granted under the Plan shall not exceed the
total aggregate number of Shares that may be subject to or delivered under Awards under the Plan, as the same may be amended from time
to time. Notwithstanding any other provision of the Plan to the contrary, the aggregate grant date fair value (computed as of the date
of grant in accordance with applicable financial accounting rules) of all Awards granted to any Non-employee Director during any single
fiscal year shall not exceed the fair value of 75,000 Common Shares.

 

(c)
Share Counting Rules.

 

(i)
For purposes of this Section 3, Shares subject to Awards that have been canceled, expired, settled in cash, or not issued or forfeited
for any reason (in whole or in part) shall not reduce the aggregate number of Shares which may be subject to or delivered under Awards
granted under this Plan and shall be available for future Awards granted under this Plan.

 

(ii)
Shares subject to Awards that have been retained by the Company in payment or satisfaction of the purchase price of an Award or the
tax withholding obligation of an Awardee, and Shares that have been delivered (either actually or constructively by attestation) to the
Company in payment or satisfaction of the purchase price of an Award or the tax withholding obligation of an Awardee, shall again be
available for grant under the Plan.

 

(iii)
Conversion Awards shall not reduce the Shares authorized for grant under the Plan or the limitations on Awards to a Participant under
subsection (b), above, nor shall Shares subject to a Conversion Award again be available for an Award under the Plan as provided in this
subsection (c).

 

4.
Administration of the Plan.

 

(a)
Procedure.

 

(i)
Multiple Administrative Bodies. The Plan shall be administered by the Board, a Committee designated by the Board to so administer
this Plan and their respective delegates.

 

(ii)
Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3 promulgated under the Exchange
Act (“Rule 16b-3”), Awards to Officers and Directors shall be made by the entire Board or a Committee of two or more
“non-employee directors” within the meaning of Rule 16b-3.

 

(iii)
Other Administration. To the extent required by the rules of the principal U.S. national securities exchange on which the
Shares are traded, if applicable, the members of the Committee shall also qualify as “independent directors” as set forth
in such rules. Except to the extent prohibited by Applicable Law, the Board or a Committee may delegate to a Committee of one or more
Directors or to authorized officers of the Company the power to approve Awards to persons eligible to receive Awards under the Plan who
are not subject to Section 16 of the Exchange Act.

 

    	8

    	 

    

 

(iv)
Awards to Directors. The Board shall have the power and authority to grant Awards to Non-employee Directors, including the
authority to determine the number and type of awards to be granted; determine the terms and conditions, not inconsistent with the terms
of this Plan, of any award; and to take any other actions the Board considers appropriate in connection with the administration of the
Plan.

 

(v)
Delegation of Authority for the Day-to-Day Administration of the Plan. Except to the extent prohibited by Applicable Law,
the Administrator may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned
to it in this Plan. Such delegation may be revoked at any time.

 

(b)
Powers of the Administrator. Subject to the provisions of the Plan and, in the case of a Committee or delegates acting as the
Administrator, subject to the specific duties delegated to such Committee or delegates, the Administrator shall have the authority, in
its discretion:

 

(i)
to select the Non-employee Directors, Consultants and Employees of the Company or its Affiliates to whom Awards are to be granted
hereunder;

 

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

 

(iii)
to determine the type of Award to be granted to the selected Employees, Consultants and Non-employee Directors;

 

(iv)
to approve forms of Award Agreements;

 

(v)
to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and
conditions include, but are not limited to, the exercise or purchase price, the time or times when an Award may be exercised (which may
or may not be based on Performance Criteria), the vesting schedule, any vesting and exercisability provisions, terms regarding acceleration
of Awards or waiver of forfeiture restrictions, the acceptable forms of consideration for payment for an Award, the term, and any restriction
or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole
discretion, shall determine and may be established at the time an Award is granted or thereafter;

 

(vi)
to correct administrative errors;

 

(vii)
to construe and interpret the terms of the Plan (including sub-plans and Plan addenda) and Awards granted pursuant to the Plan;

 

(viii)
to adopt rules and procedures relating to the operation and administration of the Plan to accommodate the specific requirements of
local laws and procedures. Without limiting the generality of the foregoing, the Administrator is specifically authorized (A) to adopt
rules and procedures regarding the conversion of local currency, the shift of tax liability from employer to employee (where legally
permitted) and withholding procedures and handling of stock certificates which vary with local requirements, and (B) to adopt sub-plans
and Plan addenda as the Administrator deems desirable, to accommodate state, local and foreign laws, regulations and practices;

 

    	9

    	 

    

 

(ix)
to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans
and Plan addenda;

 

(x)
to modify or amend each Award, including, but not limited to, the acceleration of vesting and exercisability, provided, however,
that any such modification or amendment (A) is subject to the plan amendment provisions set forth in Section 16, and (B) may not materially
impair any outstanding Award unless agreed to in writing by the Participant, except that such agreement shall not be required if the
Administrator determines in its sole discretion that such modification or amendment either (Y) is required or advisable in order for
the Company, the Plan or the Award to satisfy any Applicable Law or to meet the requirements of any accounting standard, or (Z) is not
reasonably likely to significantly diminish the benefits provided under such Award, or that adequate compensation has been provided for
any such diminishment, except following a Change of Control;

 

(xi)
to allow or require Participants to satisfy withholding tax amounts by electing to have the Company withhold from the Shares to be
issued upon exercise of a Nonqualified Stock Option or vesting of a Stock Award or Stock Unit Award that number of Shares having a Fair
Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined in such
manner and on such date that the Administrator shall determine or, in the absence of provision otherwise, on the date that the amount
of tax to be withheld is to be determined. All elections by a Participant to have Shares withheld for this purpose shall be made in such
form and under such conditions as the Administrator may provide;

 

(xii)
to authorize conversion or substitution under the Plan of any or all stock options, stock appreciation rights or other stock awards
held by awardees of an entity acquired by the Company (the “Conversion Awards”). Any conversion or substitution shall
be effective as of the close of the merger or acquisition. The Conversion Awards may be Incentive Stock Options or Nonqualified Stock
Options, as determined by the Administrator, with respect to options granted by the acquired entity;

 

(xiii)
(A) to cancel any outstanding Option or SAR and grant in substitution therefore of (1) a new Option or SAR covering the same or a
different number of Common Shares, (2) a Restricted Stock Award, (3) a Restricted Stock Unit Award, (4) cash or (5) other valuable consideration
(as determined by the Administrator in its sole discretion), or (B) to take any other action that is treated as a repricing under generally
accepted accounting principles, all in accordance with the terms of the Plan;

 

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

 

(xv)
to impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resale by
a Participant or of other subsequent transfers by the Participant of any Shares issued as a result of or under an Award or upon the exercise
of an Award, including, without limitation, (A) restrictions under an insider trading policy, (B) restrictions as to the use of a specified
brokerage firm for such resale or other transfers, and (C) institution of “blackout” periods on exercises of Awards;

 

(xvi)
to provide, either at the time an Award is granted or by subsequent action, that an Award shall contain as a term thereof, a right,
either in tandem with the other rights under the Award or as an alternative thereto, of the Participant to receive, without payment to
the Company, a number of Shares, cash or a combination thereof, the amount of which is determined by reference to the value of the Award;
and

 

    	10

    	 

    

 

(xvii)
to make all other determinations deemed necessary or advisable for administering the Plan and any Award granted hereunder.

 

(c)
Effect of Administrator’s Decision. All questions arising under the Plan or under any Award shall be decided by the Administrator
in its total and absolute discretion. All decisions, determinations and interpretations by the Administrator regarding the Plan, any
rules and regulations under the Plan and the terms and conditions of any Award granted hereunder, shall be final and binding on all Participants
and anyone claiming through them. The Administrator shall consider such factors as it deems relevant, in its sole and absolute discretion,
to making such decisions, determinations and interpretations, including, without limitation, the recommendations or advice of any officer
or other employee of the Company and such attorneys, consultants and accountants as it may select.

 

(d)
Indemnity. To the extent allowable under Applicable Law, each member of the Committee or of the Board and any person to whom the
Committee has delegated any of its authority under the Plan shall be indemnified and held harmless by the Company from any loss, cost,
liability, or expense that may be imposed upon or reasonably incurred by such person 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 or failure
to act pursuant to the Plan, and against and from any and all amounts paid by him or her in satisfaction of judgment in such action,
suit, or proceeding against him or her; provided he or she gives 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 or her own behalf. The foregoing right of indemnification shall not
be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Company’s Articles of
Incorporation or bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

 

5.
Eligibility.

 

Awards
may be granted only to Directors, Employees and Consultants of the Company or any of its Affiliates; provided, however, that Incentive
Stock Options may be granted only to Employees of the Company and its Subsidiaries (within the meaning of Section 424(f) of the Code).

 

6.
Term of Plan.

 

The
Plan shall become effective upon its approval by shareholders of the Company. It shall continue in effect from the date the Plan is approved
by the shareholders of the Company (the “Effective Date”) until terminated under Section 16.

 

7.
Term of Award.

 

Subject
to the provisions of the Plan, the term of each Award shall be determined by the Administrator and stated in the Award Agreement and
may extend beyond the termination of the Plan. In the case of an Option or a Stock Appreciation Right, the term shall be ten (10) years
from the Grant Date or such shorter term as may be provided in the Award Agreement. Notwithstanding the foregoing, the term of Awards
other than Awards that are structured to qualify as Incentive Stock Options under Section 9 shall be extended automatically if the Award
would expire at a time when trading in Common Shares is prohibited by law or the Company’s insider trading policy to the 30th
day after the expiration of the prohibition.

 

    	11

    	 

    

 

8.
Options.

 

The
Administrator may grant an Option or provide for the grant of an Option, either from time to time in the discretion of the Administrator
or automatically upon the occurrence of specified events, including, without limitation, the achievement of performance goals.

 

(a)
Option Agreement. Each Option Agreement shall contain provisions regarding (i) the number of Shares that may be issued upon exercise
of the Option, (ii) the type of Option, (iii) the exercise price of the Option and the means of payment of such exercise price, (iv)
the term of the Option, (v) such terms and conditions regarding the vesting and exercisability of an Option as may be determined from
time to time by the Administrator, (vi) restrictions on the transfer of the Option and forfeiture provisions, and (vii) such further
terms and conditions, in each case not inconsistent with this Plan, as may be determined from time to time by the Administrator.

 

(b)
Exercise Price. The per share exercise price for the Shares to be issued upon exercise of an Option shall be determined by the
Administrator, except that the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the Grant Date,
except with respect to Conversion Awards, as otherwise allowed under subsection (c) below or to the extent the Option is compliant with
Section 409A of the Code.

 

(c)
Option Repricings. Subject to Section 15(a), the exercise price of an Option may be reduced by the Administrator, but not to less
than 100% of the Fair Market Value per Share on the date of the reduction. Such reduction may be made by the Administrator in its sole
discretion, except: (i) to the extent shareholder approval is required by Applicable Law; or (ii) only with the consent of the affected
Option holder if doing so would, in the aggregate, result in material adverse tax consequences to such holder. Such reduction shall only
be permissible under this Plan if it would not result in taxation under Section 409A of the Code.

 

(d)
Vesting Period and Exercise Dates. Options granted under this Plan shall vest or be exercisable at such time and in such installments
during the period prior to the expiration of the Option’s term as determined by the Administrator and as specified in the Option
Agreement. The Administrator shall have the right to make the timing of the ability to exercise any Option granted under this Plan subject
to continued active employment, the passage of time and such performance requirements as deemed appropriate by the Administrator. At
any time after the grant of an Option, the Administrator may reduce or eliminate any restrictions surrounding any Participant’s
right to exercise all or part of the Option.

 

An
Option may, but need not, include a provision whereby the Option holder may elect at any time before the Option holder’s continuous
active employment terminates to exercise the Option as to any part or all of the Common Shares subject to the Option prior to the full
vesting of the Option. Any unvested Common Shares so purchased shall be subject to such restrictions (on transfer or otherwise) as the
Board determines to be appropriate, may be subject to a repurchase right in favor of the Company or to any other restriction the Board
determines to be appropriate. The Company will not be required to exercise its repurchase right until at least six (6) months (or such
longer or shorter period of time required to avoid classification of the Option as a liability for financial accounting purposes) have
elapsed following exercise of the Option unless the Board otherwise specifically provides in the Option Award.

 

    	12

    	 

    

 

(e)
Form of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an Option, including
the method of payment, either through the terms of the Option Agreement or at the time of exercise of an Option. Acceptable forms of
consideration may include:

 

(i)
cash or its equivalent;

 

(ii)
check or wire transfer (denominated in U.S. Dollars);

 

(iii)
by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock;

 

(iv)
if the Option is a Nonstatutory Stock Option, by a “net exercise” arrangement pursuant to which the Company will reduce
the number of Common Shares issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed
the aggregate exercise price; provided, however, that the Company will accept a cash or other payment from the Participant to the extent
of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued;
provided, further, that Common Shares will no longer be subject to an Option and will not be exercisable thereafter to the extent that
(A) shares issuable upon exercise are reduced to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered
to the Participant as a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations;

 

(v)
by cashless exercise and/or pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that,
prior to the issuance of the stock subject to the Option, results in either the receipt of cash (or check) by the Company or the receipt
of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds;

 

(vi)
subject to any conditions or limitations established by the Administrator, other Shares which were held for a period of more than
six (6) months on the date of surrender and which have a Fair Market Value on the date of surrender equal to or greater than the aggregate
exercise price of the Shares as to which said Option shall be exercised (it being agreed that the excess of the Fair Market Value over
the aggregate exercise price, if any, shall be refunded to the Awardee in cash);

 

(vii)
subject to any conditions or limitations established by the Administrator, the Company withholding Shares otherwise issuable upon
exercise of an Option;

 

(viii)
consideration received by the Company under a broker-assisted sale and remittance program acceptable to the Administrator and in
compliance with Applicable Law;

 

(ix)
such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Law; or

 

(x)
any combination of the foregoing methods of payment.

 

    	13

    	 

    

 

(f)
Procedure for Exercise; Rights as a Shareholder.

 

(i)
Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions
as determined by the Administrator and set forth in the applicable Option Agreement.

 

(ii)
An Option shall be deemed exercised when (A) the Company receives (1) written or electronic notice of exercise (in accordance with
the Option Agreement or procedures established by the Administrator) from the person entitled to exercise the Option and (2) full payment
for the Shares with respect to which the related Option is exercised, and (B) with respect to Nonqualified Stock Options, provisions
acceptable to the Administrator have been made for payment of all applicable withholding taxes.

 

(iii)
Unless provided otherwise by the Administrator or pursuant to this Plan, until the Shares are issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option.

 

(iv)
The Company shall issue (or cause to be issued) such Shares as soon as administratively practicable after the Option is exercised.
An Option may not be exercised for a fraction of a Share.

 

9.
Incentive Stock Option Terms and Limitations.

 

(a)
Eligibility. Only Employees (who qualify as employees under Section 3401(c) of the Code and the regulations promulgated thereunder)
of the Company or any of its Subsidiaries may be granted Incentive Stock Options. No Incentive Stock Option shall be granted to any such
Employee who as of the Grant Date owns stock possessing more than 10% of the total combined voting power of the Company unless at the
time such Option is granted the Option exercise price is at least 110% of the Fair Market Value of the Shares subject to the Option on
the Grant Date and such Option by its terms is not exercisable after the expiration of 5 years from the Grant Date.

 

(b)
$100,000 Limitation. Notwithstanding the designation “Incentive Stock Option” in an Option Agreement, if and to the
extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first
time by the Awardee during any calendar year (under all plans of the Company and any of its Subsidiaries) exceeds U.S. $100,000, such
Options shall be treated as Nonqualified Stock Options. For purposes of this Section 9(b), Incentive Stock Options shall be taken into
account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the Grant Date.

 

(c)
Transferability. The Option Agreement must provide that an Incentive Stock Option is not transferable by the Awardee otherwise
than by will or the laws of descent and distribution, and, during the lifetime of such Awardee, must not be exercisable by any other
person. If the terms of an Incentive Stock Option are amended to permit transferability, the Option will be treated for tax purposes
as a Nonqualified Stock Option.

 

(d)
Exercise Price. The per Share exercise price of an Incentive Stock Option shall be consistent with the requirements for qualification
of the Incentive Stock Option under Section 422 of the Code.

 

    	14

    	 

    

 

(e)
Other Terms. Option Agreements evidencing Incentive Stock Options shall contain such other terms and conditions as may be necessary
to qualify, to the extent determined desirable by the Administrator, with the applicable provisions of Section 422 of the Code. If any
such terms and conditions, as of the Grant Date or any later date, do not so comply, the Option will be treated thereafter for tax purposes
as a Nonqualified Stock Option.

 

10.
Stock Appreciation Rights.

 

A
Stock Appreciation Right entitles the Awardee to receive, in cash or Shares (as determined by the Administrator), value equal to or otherwise
based on the excess of (i) the Fair Market Value of a specified number of Shares at the time of exercise over (ii) the aggregate exercise
price of the right, as established by the Administrator on the Grant Date. All Stock Appreciation Rights under the Plan shall be granted
subject to the same terms and conditions applicable to Options as set forth in Section 8. Stock Appreciation Rights may be granted to
Awardees either alone (“freestanding”) or in addition to or in tandem with other Awards granted under the Plan and may, but
need not, relate to a specific Option granted under Section 8. However, any Stock Appreciation Right granted in tandem with an Option
may be granted at the same time such Option is granted or at any time thereafter before exercise or expiration of such Option, and shall
be based on the Fair Market Value of one Share on the Grant Date or, if applicable, on the Grant Date of the Option with respect to a
Stock Appreciation Right granted in exchange for or in tandem with, but subsequent to, the Option (subject to the requirements of Section
409A of the Code). Subject to the provisions of Section 8, the Administrator may impose such other conditions or restrictions on any
Stock Appreciation Right as it shall deem appropriate.

 

11.
Stock Awards.

 

(a)
Stock Award Agreement. Each Stock Award Agreement shall contain provisions regarding (i) the number of Shares subject to such
Stock Award or a formula for determining such number, (ii) the purchase price of the Shares, if any, and the means of payment for the
Shares, (iii) the Performance Criteria, if any, and level of achievement versus these criteria that shall determine the number of Shares
granted, issued, retainable or vested, (iv) such terms and conditions on the grant, issuance, vesting or forfeiture of the Shares as
may be determined from time to time by the Administrator, (v) restrictions on the transferability of the Stock Award, and (vi) such further
terms and conditions, in each case not inconsistent with this Plan, as may be determined from time to time by the Administrator. The
Committee may, in its sole discretion, waive the vesting restrictions and any other conditions set forth in any Award Agreement under
such terms and conditions as the Committee shall deem appropriate.

 

(b)
Restrictions and Performance Criteria. The grant, issuance, retention or vesting of Stock Awards issued to Employees may be subject
to such Performance Criteria and level of achievement versus these criteria as the Administrator shall determine, which criteria may
be based on financial performance, the occurrence of a specified corporate event, personal performance evaluations or completion of service
by the Awardee. Awards with vesting conditions that are based upon Performance Criteria and level of achievement versus such criteria
are referred to as “Performance Stock Awards” and Awards with vesting conditions that are based upon continued employment
or the passage of time are referred to as “Restricted Stock Awards.”

 

(c)
Rights as a Shareholder. Unless otherwise provided for by the Administrator, the Participant shall have the rights equivalent
to those of a shareholder and shall be a shareholder only after Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company) to the Participant. Any certificate issued in respect of a Restricted
Stock Award shall be registered in the name of the applicable Participant and shall bear an appropriate legend referring to the terms,
conditions, and restrictions applicable to such Award. The Committee may require that the certificates evidencing such Shares be held
in custody by the Company until the restrictions thereon shall have lapsed and that, as a condition of any Award of Restricted Stock,
the applicable Participant shall have delivered a stock power, endorsed in blank, relating to the Common Shares covered by such Award.
The Participant shall not be permitted to sell, assign, transfer, pledge or otherwise encumber a Stock Award.

 

    	15

    	 

    

 

12.
Stock Unit Awards and Other Stock-Based Awards.

 

(a)
Stock Unit Awards. Each Stock Unit Award Agreement shall contain provisions regarding (i) the number of Shares subject to such
Stock Unit Award or a formula for determining such number, (ii) the Performance Criteria, if any, and level of achievement versus these
criteria that shall determine the number of Shares granted, issued or vested, (iii) such terms and conditions on the grant, issuance,
vesting and forfeiture of the Shares as may be determined from time to time by the Administrator, (iv) restrictions on the transferability
of the Stock Unit Award, and (v) such further terms and conditions, in each case not inconsistent with this Plan, as may be determined
from time to time by the Administrator. The Committee may, in its sole discretion, waive the vesting restrictions and any other conditions
set forth in any Award Agreement under such terms and conditions as the Committee shall deem appropriate.

 

(b)
Restrictions and Performance Criteria. The grant, issuance, retention and vesting of Stock Unit Awards issued to Employees may
be subject to such Performance Criteria and level of achievement versus these criteria as the Administrator shall determine, which criteria
may be based on financial performance, the occurrence of a specified corporate event, personal performance evaluations or completion
of service by the Awardee. Awards with vesting conditions that are based upon Performance Criteria and level of achievement versus such
criteria are referred to as “Performance Stock Unit Awards” and Awards with vesting conditions that are based upon
continued employment or the passage of time are referred to as “Restricted Stock Unit Awards.”

 

(c)
Rights as a Shareholder. Unless otherwise provided for by the Administrator, the Participant shall have the rights equivalent
to those of a shareholder and shall be a shareholder only after Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company) to the Participant.

 

(d)
Other Stock-Based Award. An “Other Stock-Based Award” means any other type of equity-based or equity-related Award
not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted Shares), as well as any cash-based
bonus based on the attainment of Performance Criteria as described in Section 13(b), in such amount and subject to such terms and conditions
as the Administrator 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 or pursuant to attainment of a performance goal. Each Other Stock-Based Award will be evidenced
by an Award Agreement containing such terms and conditions as may be determined by the Administrator.

 

(e)
Value of Other Stock-Based Awards. Each Other Stock-Based Award shall be expressed in terms of Shares or units based on Shares
or a target amount of cash, as determined by the Administrator. The Administrator may establish Performance Criteria in its discretion.
If the Administrator exercises its discretion to establish Performance Criteria, the number and 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.

 

(f)
Payment of Other Stock-Based Awards. Payment, if any, with respect to Other Stock-Based Awards shall be made in accordance with
the terms of the Award, in cash or Shares as the Administrator determines.

 

    	16

    	 

    

 

13.
Other Provisions Applicable to Awards.

 

(a)
Non-Transferability of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned,
hypothecated, transferred or disposed of in any manner other than by beneficiary designation, will or by the laws of descent or distribution,
and any such attempted sale, assignment or transfer shall be of no effect prior to the date an Award is vested and settled. If the Administrator
makes an Award transferable, either as of the Grant Date or thereafter, such Award shall contain such additional terms and conditions
as the Administrator deems appropriate, and any transferee shall be deemed to be bound by such terms upon acceptance of such transfer.
Notwithstanding the foregoing provisions of this Section 13(a), an Option or SAR may be transferred pursuant to a domestic relations
order; provided, however, that if an Option is an Incentive Stock Option, such Option will be deemed to be a Nonstatutory Stock Option
as a result of such transfer. In addition, the Company may have the unilateral right to purchase the underlying shares acquired by a
non-Employee regardless of how the interests were transferred.

 

(b)
Performance Criteria. For purposes of this Plan, the term “Performance Criteria” shall mean any one or more
criteria based on financial performance, the occurrence of a specified corporate event (such as an acquisition or merger), personal performance
evaluations or completion of service, either individually, alternatively or in any combination, applied, as applicable, to either the
Company as a whole or to a Subsidiary, business unit, Affiliate or business segment, either individually, alternatively or in any combination,
and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to
previous years’ results or to a designated comparison group, in each case as specified by the Committee in the Award or by duly
adopted resolution. The Administrator may establish specific performance targets (including thresholds and whether to exclude certain
extraordinary, non-recurring, or similar items) and Award amounts, subject to the right of the Administrator to exercise discretion to
adjust payment amounts, either up or down, following the conclusion of the performance period on the basis of such further considerations
as the Administrator in its sole discretion shall determine. Extraordinary, non-recurring items that may be the basis of adjustment include,
but are not limited to, acquisitions or divestitures, restructurings, discontinued operations, extraordinary items, and other unusual
or non-recurring charges, an event either not directly related to the operations of the Company, Subsidiary, division, business segment
or business unit or not within the reasonable control of management, the cumulative effects of tax or accounting changes in accordance
with U.S. generally accepted accounting principles, and foreign exchange gains or losses. Without limiting the foregoing, performance
criteria may include objective measures with respect to the Company or any Business Unit: earnings, earnings per share, stock price increase,
total shareholder return (stock price increase plus dividends), return on equity, return on assets, return on capital, economic value
added, revenues, operating income, inventories, inventory turns, cash flows or any of the foregoing before the effect of acquisitions,
divestitures, accounting changes, and restructuring and special charges (determined according to criteria established by the Board).

 

    	17

    	 

    

 

(c)
Termination of Employment or Board Membership. The Administrator shall determine as of the Grant Date (subject to modification
subsequent to the Grant Date) the effect a termination from membership on the Board by a Non-employee Director for any reason or a Termination
of Employment due to Disability, death, or otherwise (including Termination for Cause) shall have on any Award. Unless otherwise provided
in the Award Agreement:

 

(i)
Upon termination from membership on the Board by a Non-employee Director for any reason other than Disability or death or Termination
for Cause, any Option or SAR held by such Director that (1) has not vested and is not exercisable as of the effective date of such termination
from membership on the Board shall be subject to immediate cancellation and forfeiture, or (2) is vested and exercisable as of the effective
date of such termination shall remain exercisable for three (3) months thereafter (or such longer or shorter period specified in the
Award Agreement), or the remaining term of the Option or SAR, if less. Any unvested Stock Award, Stock Unit Award or Other Stock Based
Award held by a Non-employee Director at the time of termination from membership on the Board for a reason other than Disability or death
shall be immediately cancelled and forfeited.

 

(ii)
Termination from membership on the Board by a Non-employee Director due to Disability or death shall result in full vesting of any
outstanding Options or SARs and vesting of a prorated portion of any Stock Award, Stock Unit Award or Other Stock Based Award based upon
the full months of the applicable performance period, vesting period or other period of restriction elapsed as of the end of the month
in which the termination from membership on the Board by a Non-employee Director due to Disability or death occurs over the total number
of months in such period. Any Options or SARs that vest upon Disability shall remain exercisable for one year thereafter (or such longer
or shorter period specified in the Award Agreement), or the remaining term of the Option or SAR, if less. Any Options or SARs that vest
upon death shall remain exercisable for eighteen (18) months thereafter (or such longer or shorter period specified in the Award Agreement),
or the remaining term of the Option or SAR, if less. In the case of any Stock Award, Stock Unit Award or Other Stock Based Award that
vests on the basis of attainment of Performance Criteria, the pro-rata vested amount shall be based upon the target award.

 

(iii)
Upon Termination of Employment due to Disability or death, any Option or SAR held by an Employee shall, if not already fully vested,
become fully vested and exercisable as of the effective date of such Termination of Employment and shall remain exercisable for one year
after such Termination of Employment due to Disability or death (or such longer or shorter period specified in the Award Agreement),
or, in either case, the remaining term of the Option or SAR, if less. Termination of Employment due to Disability or death shall result
in vesting of a prorated portion of any Stock Award, Stock Unit Award or Other Stock Based Award based upon the full months of the applicable
performance period, vesting period or other period of restriction elapsed as of the end of the month in which the Termination of Employment
due to Disability or death occurs over the total number of months in such period. In the case of any Stock Award, Stock Unit Award or
Other Stock Based Award that vests on the basis of attainment of Performance Criteria, the pro-rata vested amount shall be based upon
the target award.

 

(iv)
Any other Termination of Employment shall result in immediate cancellation and forfeiture of all outstanding Awards that have not
vested as of the effective date of such Termination of Employment, and any vested and exercisable Options and SARs held at the time of
such Termination of Employment shall remain exercisable for three (3) months thereafter (or such longer or shorter period specified in
the Award Agreement), or the remaining term of the Option or SAR, if less. Notwithstanding the foregoing, all outstanding and unexercised
Options and SARs shall be immediately cancelled in the event of a Termination for Cause.

 

    	18

    	 

    

 

(d)
Extension of Termination Date. Except as otherwise provided in the applicable Stock Award Agreement or other agreement between
the Participant and the Company, if the exercise of an Option or SAR following the termination of the Participant’s Continuous
Service (other than for Termination for Cause or upon the Participant’s death or Disability) would be prohibited at any time solely
because the issuance of Common Shares would violate the registration requirements under the Securities Act, then the Option or SAR will
terminate on the earlier of (i) the expiration of a period of three (3) months after the termination of the Participant’s Continuous
Service during which the exercise of the Option or SAR would not be in violation of such registration requirements, or (ii) the expiration
of the term of the Option or SAR as set forth in the Stock Award Agreement. In addition, unless otherwise provided in a Participant’s
Stock Award Agreement, if the sale of any Common Shares received upon exercise of an Option or SAR following the termination of the Participant’s
Continuous Service (other than Termination for Cause) would violate the Company’s insider trading policy, then the Option or SAR
will terminate on the earlier of (i) the expiration of a period equal to the applicable post-termination exercise period after the termination
of the Participant’s Continuous Service during which the exercise of the Option or SAR would not be in violation of the Company’s
insider trading policy, or (ii) the expiration of the term of the Option or SAR as set forth in the applicable Stock Award Agreement.

 

(e)
Non-Exempt Employees. No Option or SAR granted to an Employee who is a non-exempt employee for purposes of the Fair Labor Standards
Act of 1938, as amended, will be first exercisable for any Common Shares until at least six (6) months following the date of grant of
the Option or SAR. Notwithstanding the foregoing, consistent with the provisions of the Worker Economic Opportunity Act, in the event
of the Participant’s death or Disability, upon a Corporate Transaction or a Change in Control in which the vesting of such Options
or SARs accelerates, or upon the Participant’s retirement (as such term may be defined in the Participant’s Stock Award Agreement
or in another applicable agreement or in accordance with the Company’s then current employment policies and guidelines) any such
vested Options and SARs may be exercised earlier than six months following the date of grant. The foregoing provision is intended to
operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option or SAR will be exempt
from his or her regular rate of pay.

 

14.
Dividends and Dividend Equivalents.

 

Awards
other than Options and Stock Appreciation Rights may provide the Awardee with the right to receive dividend payments or dividend equivalent
payments on the Shares subject to the Award, whether or not such Award is vested. Notwithstanding the foregoing, dividends or dividend
equivalents shall not be paid with respect to Stock Awards, Stock Unit Awards or Other Stock-Based Awards that vest based on the achievement
of performance goals prior to the date the performance goals are satisfied and the Award is earned, and then shall be payable only with
respect to the number of Shares or Stock Units actually earned under the Award. Such payments may be made in cash, Shares or Stock Units
or may be credited as cash or Stock Units to an Awardee’s account and later settled in cash or Shares or a combination thereof,
as determined by the Administrator. Such payments and credits may be subject to such conditions and contingencies as the Administrator
may establish.

 

    	19

    	 

    

 

15.
Adjustments upon Changes in Capitalization, Organic Change or Change of Control.

 

(a)
Adjustment Clause. In the event of (i) a stock dividend, extraordinary cash dividend, stock split, reverse stock split, share
combination, or recapitalization or similar event affecting the capital structure of the Company (each, a “Share Change”),
or (ii) a merger, consolidation, acquisition of property or shares, separation, spin-off, reorganization, stock rights offering, liquidation,
Disaffiliation, or similar event affecting the Company or any of its Subsidiaries (each, an “Organic Change”), the
Administrator or the Board shall make such substitutions or adjustments as it deems appropriate and equitable to (i) the Share limitations
set forth in Section 3, (ii) the number and kind of Shares covered by each outstanding Award, and (iii) the price per Share subject to
each such outstanding Award. In the case of Organic Changes, such adjustments may include, without limitation, (x) the cancellation of
outstanding Awards in exchange for payments of cash, property or a combination thereof having an aggregate value equal to the value of
such Awards, as determined by the Administrator or the Board in its sole discretion (it being understood that in the case of an Organic
Change with respect to which shareholders receive consideration other than publicly traded equity securities of the ultimate surviving
entity, any such determination by the Administrator that the value of an Option or Stock Appreciation Right shall for this purpose be
deemed to equal the excess, if any, of the value of the consideration being paid for each Share pursuant to such Organic Change over
the exercise price of such Option or Stock Appreciation Right shall conclusively be deemed valid); (y) the substitution of other property
(including, without limitation, cash or other securities of the Company and securities of entities other than the Company) for the Shares
subject to outstanding Awards; and (z) in connection with any Disaffiliation, arranging for the assumption of Awards, or replacement
of Awards with new awards based on other property or other securities (including, without limitation, other securities of the Company
and securities of entities other than the Company), by the affected Subsidiary, Affiliate, or division or by the entity that controls
such Subsidiary, Affiliate, or division following such Disaffiliation (as well as any corresponding adjustments to Awards that remain
based upon Company securities). The Committee may adjust in its sole discretion the Performance Criteria applicable to any Awards to
reflect any Share Change and any Organic Change and any unusual or non-recurring events and other extraordinary items, impact of charges
for restructurings, discontinued operations, and the cumulative effects of accounting or tax changes, each as defined by generally accepted
accounting principles or as identified in the Company’s financial statements, notes to the financial statements, management’s
discussion and analysis or the Company’s other SEC filings. Any adjustment under this Section 15(a) need not be the same for all
Participants.

 

(b)
Liquidation and Dissolution. Except as otherwise provided in the Stock Award Agreement, in the event of a dissolution or liquidation
of the Company, all outstanding Stock Awards (other than Stock Awards consisting of vested and outstanding Common Shares not subject
to a forfeiture condition or the Company’s right of repurchase) will terminate immediately prior to the completion of such dissolution
or liquidation, and the Common Shares subject to the Company’s repurchase rights or subject to a forfeiture condition may be repurchased
or reacquired by the Company notwithstanding the fact that the holder of the Stock Award is providing Continuous Service; provided, however,
that the Board may, in its sole discretion, cause some or all Stock Awards to become fully vested, exercisable and no longer subject
to repurchase or forfeiture (to the extent such Stock Awards have not previously expired or terminated) before the dissolution or liquidation
is completed but contingent on its completion.

 

    	20

    	 

    

 

(c)
Corporate Transactions. The following provisions will apply to Stock Awards in the event of a Corporate Transaction unless otherwise
provided in the instrument evidencing the Stock Award or any other written agreement between the Company or any Affiliate and the holder
of the Stock Award or unless otherwise expressly provided by the Board at the time of grant of the Stock Award. Except as otherwise stated
in the Stock Award Agreement, in the event of a Corporate Transaction, then, notwithstanding any other provision of this Plan, the Board
will take one or more of the following actions with respect to Stock Awards, contingent upon the closing or completion of the Corporate
Transaction:

 

(i)
arrange for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to
assume or continue the Stock Award or to substitute a similar stock award for the Stock Award (including, but not limited to, an award
to acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate Transaction);

 

(ii)
arrange for the assignment of any reacquisition or repurchase rights held by the Company in respect of Common Shares issued pursuant
to the Stock Award to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company);

 

(iii)
accelerate the vesting, in whole or in part, of the Stock Award (and, if applicable, the time at which the Stock Award may be exercised)
to a date prior to the effective time of such Corporate Transaction, as the Board will determine (or, if the Board will not determine
such a date, to the date that is five (5) days prior to the effective date of the Corporate Transaction), with the Stock Award terminating
if not exercised (if applicable) at or prior to the effective time of the Corporate Transaction; 

 

(iv)
arrange for the lapse of any reacquisition or repurchase rights held by the Company with respect to the Stock Award; 

 

(v)
cancel or arrange for the cancellation of the Stock Award, to the extent not vested or not exercised prior to the effective time of the
Corporate Transaction, in exchange for cash consideration, if any, as the Board, in its sole discretion, may consider appropriate; or

 

(vi)
provide that holder of the Stock Award may not exercise the Stock Award but will receive a payment, in the form as may be determined
by the Board equal to the excess, if any, of (A) the value of the property the holder of the Stock Award would have received upon the
exercise of the Stock Award, over (B) any exercise price payable by such holder in connection with such exercise. Payments under this
Section 9(c)(vi) may be delayed to the same extent that payment of consideration to the holders of the Common Shares in connection with
the Corporate Transaction is delayed as a result of escrows, earn outs, holdbacks or any other contingencies. 

 

The
Board need not take the same action with respect to all Stock Awards or with respect to all Participants.

 

(d)
Change of Control. A Stock Award may be subject to additional acceleration of vesting and exercisability upon or after a Change
in Control as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement
between the Company or any Affiliate and the Participant, but in the absence of such provision, no such acceleration will occur.

 

(e)
Section 409A. Notwithstanding the foregoing: (i) any adjustments made pursuant to Section 14(a) to Awards that are considered
“deferred compensation” within the meaning of Section 409A of the Code shall be made in compliance with the requirements
of Section 409A of the Code; (ii) any adjustments made pursuant to Section 15(a) to Awards that are not considered “deferred compensation”
subject to Section 409A of the Code shall be made in such a manner as to ensure that, after such adjustment, the Awards either continue
not to be subject to Section 409A of the Code or comply with the requirements of Section 409A of the Code; (iii) the Administrator shall
not have the authority to make any adjustments pursuant to Section 15(a) to the extent that the existence of such authority would cause
an Award that is not intended to be subject to Section 409A of the Code to be subject thereto; and (iv) if any Award is subject to Section
409A of the Code, Section 15(b) shall be applicable only to the extent specifically provided in the Award Agreement and permitted pursuant
to Section 24 in order to ensure that such Award complies with Section 409A of the Code.

 

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16.
Amendment and Termination of the Plan.

 

(a)
Amendment and Termination. The Administrator may amend, alter or discontinue the Plan or any Award Agreement, but any such amendment
shall be subject to approval of the shareholders of the Company to the extent required by Applicable Law. In addition, unless approved
by the Board (and the shareholders of the Company to the extent required by Applicable Law) and subject to Section 16(b), no such amendment
shall be made that would increase the maximum aggregate number of Shares which may be subject to Awards granted under the Plan.

 

(b)
Effect of Amendment or Termination. No amendment, suspension or termination of the Plan shall impair the rights of any Participant
with respect to an outstanding Award, unless mutually agreed otherwise between the Participant and the Administrator, which agreement
must be in writing and signed by the Participant and the Company, except that no such agreement shall be required if the Administrator
determines in its sole discretion that such amendment either (i) is required or advisable in order for the Company, the Plan or the Award
to satisfy any Applicable Law or to meet the requirements of any accounting standard, or (ii) is not reasonably likely to significantly
diminish the benefits provided under such Award, or that any such diminishment has been adequately compensated, except that this exception
shall not apply following a Change of Control. Termination of the Plan shall not affect the Administrator’s ability to exercise
the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

 

(c)
Effect of the Plan on Other Arrangements. Neither the adoption of the Plan by the Board or a Committee nor the submission of the
Plan to the shareholders of the Company for approval, if required, shall be construed as creating any limitations on the power of the
Board or any Committee to adopt such other incentive arrangements as it or they may deem desirable, including without limitation, the
granting of restricted shares or restricted share units or stock options otherwise than under the Plan, and such arrangements may be
either generally applicable or applicable only in specific cases.

 

17.
Designation of Beneficiary.

 

(a)
An Awardee may file a written designation of a beneficiary who is to receive the Awardee’s rights pursuant to Awardee’s Awards
or the Awardee may include his or her Awards in an omnibus beneficiary designation for all benefits under the Plan. To the extent that
Awardee has completed a designation of beneficiary while employed with the Company or an Affiliate, such beneficiary designation shall
remain in effect with respect to any Award hereunder until changed by the Awardee to the extent enforceable under Applicable Law.

 

(b)
Such designation of beneficiary may be changed by the Awardee at any time by written notice. In the event of the death of an Awardee
and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Awardee’s death, the Company
shall allow the legal representative of the Awardee’s estate to exercise the Award.

 

18.
No Right to Awards or to Employment.

 

No
person shall have any claim or right to be granted an Award and the grant of any Award shall not be construed as giving an Awardee the
right to continue in the employ of the Company or its Affiliates. Further, the Company and its Affiliates expressly reserve the right,
at any time, to dismiss any Employee or Awardee at any time without liability or any claim under the Plan, except as provided herein
or in any Award Agreement entered into hereunder.

 

19.
Legal Compliance.

 

Shares
shall not be issued pursuant to an Option, Stock Appreciation Right, Stock Award, Stock Unit Award or Other Stock-Based Award unless
such Option, Stock Appreciation Right, Stock Award or Other Stock-Based Award and the issuance and delivery of such Shares shall comply
with Applicable Law and shall be further subject to the approval of counsel for the Company with respect to such compliance. Unless the
Awards and Shares covered by this Plan have been registered under the Securities Act or the Company has determined that such registration
is unnecessary, each person receiving an Award or Shares pursuant to any Award may be required by the Company to give a representation
in writing that such person is acquiring such Shares for his or her own account for investment and not with a view to, or for sale in
connection with, the distribution of any part thereof.

 

    	22

    	 

    

 

20.
Inability to Obtain Authority.

 

To
the extent the Company is unable to or the Administrator deems it unfeasible to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company’s counsel to be advisable or necessary to the lawful issuance and sale of any Shares hereunder,
the Company shall be relieved of any liability with respect to the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

 

21.
Reservation of Shares.

 

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

 

22.
Notice.

 

Any
written notice to the Company required by any provisions of this Plan shall be addressed to the Secretary of the Company and shall be
effective when received. Any notice to a Participant hereunder shall be addressed to the last address of record with the Company and
shall be effective when sent via first class mail, courier service, or electronic mail to such last address of record.

 

23.
Governing Law; Interpretation of Plan and Awards.

 

(a)
This Plan and all determinations made and actions taken pursuant hereto shall be governed by the substantive laws, but not the choice
of law rules, of the state of Delaware, except as to matters governed by U.S. federal law.

 

(b)
If any provision of the Plan or any Award granted under the Plan is declared to be illegal, invalid or otherwise unenforceable by a court
of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable,
or otherwise deleted, and the remainder of the terms of the Plan or Award shall not be affected except to the extent necessary to reform
or delete such illegal, invalid or unenforceable provision.

 

(c)
The headings preceding the text of each section hereof are inserted solely for convenience of reference, and shall not constitute a part
of the Plan, nor shall they affect its meaning, construction or effect.

 

(d)
The terms of the Plan and any Award shall inure to the benefit of and be binding upon the parties hereto and their respective permitted
heirs, beneficiaries, successors and assigns.

 

    	23

    	 

    

 

24.
Section 409A.

 

It
is the intention of the Company that no Award shall be “deferred compensation” subject to Section 409A of the Code, unless
and to the extent that the Administrator specifically determines otherwise, and the Plan and the terms and conditions of all Awards shall
be interpreted accordingly. The terms and conditions governing any Awards that the Administrator determines will be subject to Section
409A of the Code, including any rules for elective or mandatory deferral of the delivery of cash or Shares pursuant thereto and any rules
regarding treatment of such Awards in the event of a Change of Control, shall be set forth in the applicable Award Agreement, deferral
election forms and procedures, and rules established by the Administrator, and shall comply in all respects with Section 409A of the
Code. The following rules will apply to Awards intended to be subject to Section 409A of the Code (“409A Awards”):

 

(a)
If a Participant is permitted to elect to defer an Award or any payment under an Award, such election will be permitted only at times
in compliance with Code Section 409A.

 

(b)
The Company shall have no authority to accelerate distributions relating to 409A Awards in excess of the authority permitted under Section
409A.

 

(c)
Any distribution of a 409A Award following a Termination of Employment that would be subject to Code Section 409A(a)(2)(A)(i) as a distribution
following a separation from service of a “specified employee” as defined under Code Section 409A(a)(2)(B)(i), shall occur
no earlier than the expiration of the six-month period following such Termination of Employment.

 

(d)
In the case of any distribution of a 409A Award, if the timing of such distribution is not otherwise specified in the Plan or an Award
Agreement or other governing document, the distribution shall be made not later than the end of the calendar year during which the settlement
of the 409A Award is specified to occur.

 

(e)
In the case of an Award providing for distribution or settlement upon vesting or the lapse of a risk of forfeiture, if the time of such
distribution or settlement is not otherwise specified in the Plan or an Award Agreement or other governing document, the distribution
or settlement shall be made not later than March 15 of the year following the year in which the Award vested or the risk of forfeiture
lapsed.

 

(f)
Notwithstanding anything herein to the contrary, neither the Company nor the Administrator makes any representation or guarantee that
the Plan or its administration shall comply with Code Section 409A, and in no event shall the Company or the Administrator be liable
for the payment of, or any gross up payment in connection with, any taxes or penalties owed by the Participant pursuant to Code Section
409A.

 

25.
Limitation on Liability.

 

The
Company and any Affiliate which is in existence or hereafter comes into existence shall not be liable to a Participant, an Employee,
an Awardee or any other persons as to:

 

(a)
The Non-Issuance of Shares. The non-issuance or sale of Shares as to which the Company has been unable to obtain from any regulatory
body having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares
hereunder; and

 

(b)
Tax or Exchange Control Consequences. Any tax consequence expected, but not realized, or any exchange control obligation owed,
by any Participant, Employee, Awardee or other person due to the receipt, exercise or settlement of any Option or other Award granted
hereunder.

 

26.
Unfunded Plan.

 

Insofar
as it provides for Awards, the Plan shall be unfunded. Although bookkeeping accounts may be established with respect to Awardees who
are granted Stock Awards, Stock Unit Awards or Other Stock-Based Awards under this Plan, any such accounts will be used merely as a bookkeeping
convenience. The Company shall not be required to segregate any assets which may at any time be represented by Awards, nor shall this
Plan be construed as providing for such segregation. Neither the Company nor the Administrator shall be deemed to be a trustee of Shares
or cash to be awarded under the Plan. Any liability of the Company to any Participant with respect to an Award shall be based solely
upon any contractual obligations which may be created by the Plan; no such obligation of the Company shall be deemed to be secured by
any pledge or other encumbrance on any property of the Company. Neither the Company nor the Administrator shall be required to give any
security or bond for the performance of any obligation which may be created by this Plan.

 

    	24

    	 

    

 

27.
Foreign Employees and Consultants.

 

Awards
may be granted hereunder to Employees and Consultants who are foreign nationals, who are located outside the United States or who are
not compensated from a payroll maintained in the United States, or who are otherwise subject to (or could cause the Company to be subject
to) legal or regulatory provisions of countries or jurisdictions outside the United States, on such terms and conditions different from
those specified in the Plan as may, in the judgment of the Administrator, be necessary or desirable to foster and promote achievement
of the purposes of the Plan, and, in furtherance of such purposes, the Administrator may make such modifications, amendments, procedures,
or subplans as may be necessary or advisable to comply with such legal or regulatory provisions.

 

28.
Tax Withholding.

 

Each
Participant shall pay to the Company, or make arrangements satisfactory to the Company regarding the payment of, any federal, state,
local or foreign taxes of any kind required by law to be withheld with respect to any Award under the Plan no later than the date as
of which any amount under such Award first becomes includible in the gross income of the Participant for any tax purposes with respect
to which the Company has a tax withholding obligation. Unless otherwise determined by the Company, withholding obligations may be settled
with Shares, including Shares that are part of the Award that gives rise to the withholding requirement; provided, however, that not
more than the maximum statutory withholding requirement may be settled with Shares that are part of the Award. The obligations of the
Company under the Plan shall be conditional on such payment or arrangements, and the Company and its Affiliates shall, to the extent
permitted by law, have the right to deduct any such taxes from any vested Shares or any other payment due to the Participant at that
time or at any future time. The Administrator may establish such procedures as it deems appropriate, including making irrevocable elections,
for the settlement of withholding obligations with Shares.

 

29.
Cancellation of Award; Forfeiture of Gain.

 

Notwithstanding
anything to the contrary contained herein, an Award Agreement may provide that the Award will be cancelled and the Participant will forfeit
the Shares or cash received or payable on the vesting or exercise of the Award, and that the amount of any proceeds of the sale or gain
realized on the vesting or exercise of the Award must be repaid to the Company, under such conditions as may be required by Applicable
Law or established by the Committee in its sole discretion.

 

    	25

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