Document:

ex_207471.htm

Exhibit 10.1

 

EIGHTH AMENDMENT TO THE AMENDED AND RESTATED

CREDIT AND GUARANTY AGREEMENT

 

 

THIS EIGHTH AMENDMENT TO THE AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT dated as of October 16, 2020 (this “Agreement”) is entered into among The Providence Service Corporation, a Delaware corporation (the “Borrower”), the Guarantors, the Lenders party hereto and Bank of America, N.A., as Administrative Agent. All capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (as defined below).

 

RECITALS

 

WHEREAS, the Borrower, the Guarantors, the Lenders and Bank of America, N.A., as Administrative Agent, entered into that certain Amended and Restated Credit and Guaranty Agreement dated as of August 2, 2013 (as amended by that certain First Amendment and Consent dated as of May 28, 2014, by that certain Second Amendment and Consent dated October 23, 2014, by that certain Third Amendment and Consent dated September 3, 2015, by that certain Fourth Amendment and Consent dated August 28, 2016, by that certain Fifth Amendment dated as of June 7, 2018, by that certain Sixth Amendment dated as of July 12, 2019, and by that certain Seventh Amendment dated as of May 6, 2020, the “Credit Agreement”); and

 

WHEREAS, the Borrower has requested that the Lenders amend the Credit Agreement as set forth below.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

	 	
			1.

				
			Amendments to Credit Agreement.

			

 

(a)     Section 1.01. The following definitions in Section 1.01 of the Credit Agreement are hereby amended to read as follows:

 

(i)     The definition of “Applicable Rate” is hereby amended and restated in its entirety to read as follows: “Applicable Rate” means with respect to Revolving Loans, the Term Loan, Swing Line Loans, Letters of Credit Fees and the Commitment Fee, the following percentages per annum, based upon the Consolidated Net Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 7.02(a):

 

	
			Pricing Tier

				
			Consolidated Net

			Leverage Ratio

				
			Commitment

			Fee

				
			Letter of Credit

			Fee

				
			Eurocurrency

			Rate Loans

				
			Base Rate

			Loans

			
	
			1

				
			> 3.75:1.0

				
			0.500%

				
			3.50%

				
			3.50%

				
			2.50%

			
	
			2

				
			< 3.75:1.0 but ≥ 3.25:1.0

				
			0.375%

				
			3.25%

				
			3.25%

				
			2.25%

			
	
			3

				
			< 3.25:1.0 but ≥ 2.75:1.0

				
			0.350%

				
			2.75%

				
			2.75%

				
			1.75%

			
	
			4

				
			< 2.75:1.0

				
			0.350%

				
			2.25%

				
			2.25%

				
			1.25%

			

 

1

 

 

Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Net Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 7.02(a); provided, however, that if a Compliance Certificate is not delivered when due in accordance with Section 7.02(a), then, upon the request of the Required Lenders, Pricing Tier 1 shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and shall continue to apply until the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 7.02(a), whereupon the Applicable Rate shall be adjusted based upon the calculation of the Consolidated Net Leverage Ratio contained in such Compliance Certificate. The Applicable Rate in effect from the Eighth Amendment Effective Date to the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 7.02(a) for the first full fiscal quarter ending after the Eighth Amendment Effective Date shall be determined based upon Pricing Tier 2. Notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Rate for any period shall be subject to the provisions of Section 2.10(b).

 

(ii)     The definition of “Excluded Subsidiary” is hereby amended as follows: (i) the “and” appearing at the end of clause (f) is hereby deleted and replaced with a “,”, (ii) the “.” appearing at the end of clause (g) is hereby deleted and replaced with “, and”, and (iii) new clause (h) is inserted thereof to read “(h) any Escrow Issuer”.

 

(iii)     The definition of “Funded Indebtedness” is hereby amended to add the following sentence at the end thereof: “Notwithstanding the foregoing, Escrow Notes, and all related Escrow Funds, shall not constitute Funded Indebtedness, and shall be disregarded for purposes of calculation of Consolidated Interest Coverage Ratio, Consolidated Interest Charges, Consolidated Leverage Ratio and Consolidated Net Leverage Ratio until such Escrow Funds are released from the Escrow Account for the benefit of the Borrower and its Restricted Subsidiaries, in each case, so long as (i) such Escrow Funds remain in an Escrow Account and (ii) the release of the proceeds thereof to the Borrower and its Restricted Subsidiaries is contingent upon the consummation of the Socrates Acquisition (and, if the Escrow Notes Indenture is terminated prior to the consummation of the Socrates Acquisition or if the Socrates Acquisition is otherwise not consummated by the date specified in the definitive documentation relating to such Indebtedness, such proceeds shall be promptly applied to satisfy and discharge all obligations of the Borrower and its Restricted Subsidiaries in respect of such Indebtedness).”

 

(iv)     The definition of “Maturity Date” is hereby amended and restated in its entirety as follows: “Maturity Date” means August 2, 2023; provided, however, that if such date is not a Business Day, the Maturity Date shall be the immediately preceding Business Day.

 

(v)     The definition of “Relevant Governmental Body” is hereby amended and restated in its entirety as follows: “Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York.

 

(vi)     The definition of “SOFR” is hereby amended and restated in its entirety as follows: “SOFR” means, with respect to any Business Day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark (or a successor administrator) on the Federal Reserve Bank of New York’s website (or any successor source) at approximately 8:00 a.m. (New York City time) on the immediately succeeding Business Day and, in each case, that has been selected or recommended by the Relevant Governmental Body.

 

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(vii)     The definition of “Successor Rate Conforming Changes” is hereby amended and restated in its entirety as follows: “Successor Rate Conforming Changes” means, with respect to any proposed Successor Rate, any conforming changes to the definition of Base Rate, Interest Period, timing and frequency of determining rates and making payments of interest and other technical, administrative or operational matters (including, for the avoidance of doubt, the definition of Business Day, timing of borrowing requests or prepayment, conversion or continuation notices and length of lookback periods) as may be appropriate, in the discretion of the Administrative Agent, to reflect the adoption and implementation of such Successor Rate and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines that adoption of any portion of such market practice is not administratively feasible or that no market practice for the administration of such Successor Rate exists, in such other manner of administration as the Administrative Agent determines is reasonably necessary in connection with the administration of this Agreement and any other Loan Document).

 

(b)     Section 1.01. The definition of “SOFR-Based Rate” is hereby deleted in its entirety.

 

(c)     Section 1.01. The following definitions are hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order to read as follows:

 

“Additional Escrow Amount” means an amount equal to (a) all interest that could accrue on any Escrow Notes from and including the date of issuance thereof to and including the date of any potential mandatory redemption to occur if the proceeds of such Escrow Notes are not released from the applicable Escrow Account, plus (b) the amount of any original issue discount on such Escrow Notes, plus (c) all fees and expenses that are incurred in connection with the issuance of such Escrow Notes and all fees, expenses or other amounts payable in connection with any redemption of such Escrow Notes.

 

“Eighth Amendment Effective Date” means October 16, 2020.

 

“Escrow Account” means a deposit or securities account at a financial institution selected by the Borrower (any such institution, an “Escrow Agent”) into which any Escrow Funds are deposited.

 

“Escrow Account Documents” means the agreement(s) governing an Escrow Account and any other documents entered into in order to provide the applicable Escrow Agent (or its designee) Liens on the related Escrow Funds.

 

“Escrow Agent” has the meaning set forth in the definition of the term “Escrow Account”.

 

“Escrow Funds” means the sum of (a) the proceeds of any Escrow Notes, plus (b) the related Additional Escrow Amount, plus (c) so long as they are retained in an Escrow Account, any income, proceeds or products of the foregoing.

 

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“Escrow Issuer” means a Subsidiary of the Borrower established for the purpose of, and having no business activities other than, issuing the Escrow Notes, receiving and holding the proceeds thereof (and any Additional Escrow Amount) in the Escrow Account, performing its obligations under the Escrow Notes Documents (including, if necessary, redeeming the Escrow Notes), performing its obligations in respect of the Socrates Acquisition, and activities reasonably related thereto.

 

“Escrow Notes” means debt securities of the Borrower (or, prior to consummation of the Socrates Acquisition, of an Escrow Issuer, if applicable) issued after the Eighth Amendment Effective Date; provided that the net proceeds of such debt securities are deposited into an Escrow Account upon the issuance thereof.

 

“Escrow Notes Documents” mean the Escrow Notes Indentures, the Escrow Account Documents and any other documents entered into by the Borrower (and/or an Escrow Issuer, if applicable) in connection with any Escrow Notes.

 

“Escrow Notes Indentures” means the indenture(s) pursuant to which any Escrow Notes shall be issued.

 

“ISDA Definitions” means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto. 

 

“LCT Election” has the meaning provided in Section 1.11.

 

“LCT Test Date” has the meaning provided in Section 1.11.

 

“Licensed Entity” has the meaning specified in the definition of Transition Period.

 

“Limited Condition Acquisition” means (i) the Socrates Acquisition and (ii) any other Acquisition by the Borrower or any Restricted Subsidiary the consummation of which is not conditioned on the availability of financing.

 

“Permitted Junior Debt” means (i) Socrates Acquisition Indebtedness and (ii) (x) subordinated Indebtedness issued or incurred by the Borrower or a Restricted Subsidiary and (y) senior unsecured Indebtedness issued or incurred by the Borrower or a Restricted Subsidiary, provided, that in the case of each of clauses (ii)(x) and (y), (1) the terms of such Indebtedness do not provide for a final maturity date, scheduled amortization or any other scheduled repayment, scheduled mandatory redemption or scheduled sinking fund obligation prior to the date that is 91 days after the Maturity Date (provided that the terms of such Permitted Junior Debt may require the payment of interest from time to time), (2) the terms of such Indebtedness do not contain covenants and events of default that, taken as a whole, are more restrictive than the covenants and Events of Default set forth in this Agreement and the other Loan Documents, as reasonably determined in good faith by the Borrower, (3) the terms of such Indebtedness provide for covenants and events of default customary for Indebtedness of a similar nature as such Permitted Junior Debt, as reasonably determined in good faith by the Borrower, (4) subject to Section 1.11, no Event of Default shall have occurred and be continuing at the time such Indebtedness is incurred, and (5) subject to Section 1.11, the Borrower shall have delivered a certificate to the Administrative Agent demonstrating that the Borrower is in compliance with the financial covenants contained in Section 8.11 as of the most recent fiscal quarter end for which financial statements were required to be delivered pursuant to Section 7.01(a) or 7.01(b), determined on a Pro Forma Basis after giving effect to the incurrence of any such Indebtedness (assuming for such calculation that such Indebtedness is fully drawn and excluding the proceeds of such Indebtedness).

 

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“Pre-Adjustment Successor Rate” has the meaning specified in Section 3.03(b).

 

“Related Adjustment” means, in determining any LIBOR Successor Rate, the first relevant available alternative set forth in the order below that can be determined by the Administrative Agent applicable to such LIBOR Successor Rate:

 

(a)     the spread adjustment, or method for calculating or determining such spread adjustment, that has been selected or recommended by the Relevant Governmental Body for the relevant Pre-Adjustment Successor Rate (taking into account the interest period, interest payment date or payment period for interest calculated and/or tenor thereto) and which adjustment or method (x) is published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion or (y) solely with respect to Term SOFR, if not currently published, which was previously so recommended for Term SOFR and published on an information service acceptable to the Administrative Agent; or

 

(b)     the spread adjustment that would apply (or has previously been applied) to the fallback rate for a derivative transaction referencing the ISDA Definitions (taking into account the interest period, interest payment date or payment period for interest calculated and/or tenor thereto).

 

“Replacement Date” has the meaning specified in Section 3.03(b).

 

“Socrates Acquisition” means the acquisition of OEP AM Holdings, LLC, as publicly announced by the Borrower on September 29, 2020.

 

“Socrates Acquisition Costs” has the meaning specified in Section 5.02.

 

“Socrates Acquisition Indebtedness” means (i) (x) senior unsecured bridge loans of the Borrower in an aggregate principal amount not to exceed $600,000,000, including, at the maturity thereof, rollover extended senior unsecured term loans and (y) any exchange notes issued to refinance such bridge loans or extended term loans or (ii) senior unsecured (other than Liens described in clauses (aa) and (bb) of Section 8.01) debt securities, including any Escrow Notes, of the Borrower (and/or of an Escrow Issuer, if applicable) in an aggregate principal amount not to exceed $600,000,000 and, in each case, Guarantees of such Indebtedness provided by Subsidiaries of the Borrower.

 

“Subsequent Transaction” has the meaning provided in Section 1.11.

 

“Transition Period” means, with respect to any Subsidiary that is subject to an “affidavit of no control” or similar filing with any Governmental Authority (a “Licensed Entity”), the period commencing on the date of Acquisition of such Subsidiary and ending on the date that such “affidavit of no control” or similar filing is no longer outstanding.

 

5

 

 

(d)     Section 1.03.     Section 1.03(c) is hereby amended and restated in its entirety as follows:

 

Calculations. Notwithstanding the above, subject to Section 1.11, the parties hereto acknowledge and agree that all calculations of the Consolidated Leverage Ratio and Consolidated Net Leverage Ratio (including for purposes of determining the Applicable Rate) and the financial covenants in Section 8.11 shall be made on a Pro Forma Basis.

 

(e)     Section 1.11. A new Section 1.11 is hereby added to the Credit Agreement to read as follows:

 

1.11     Limited Condition Transactions. As it relates to any action being taken solely in connection with a Limited Condition Acquisition, for purposes of:

 

(a) determining compliance with any provision of this Agreement which requires the calculation of any financial ratio or financial test,

 

(b) testing availability under baskets set forth in this Agreement (including baskets determined by reference to Consolidated Adjusted EBITDA) or,

 

(c) testing whether a Default or Event of Default has occurred or would result therefrom,

 

in each case, at the option of the Borrower (the Borrower’s election to exercise such option in connection with any Limited Condition Acquisition, an “LCT Election”), the date of determination of whether any such action is permitted hereunder and any such Default or Event of Default exists shall be deemed to be the date the definitive agreements for such Limited Condition Acquisition are entered into (the “LCT Test Date”), and if, after giving effect to the Limited Condition Acquisition on a Pro Forma Basis (and the other transactions to be entered into in connection therewith, including any incurrence of Indebtedness and the use of proceeds thereof, as if they had occurred on the first day of the most recently ended Test Period prior to the LCT Test Date), the Borrower or the applicable Restricted Subsidiary would have been permitted to take such action on the relevant LCT Test Date in compliance with such ratio, test or basket, such ratio, test or basket shall be deemed to have been complied with or if no such Default or Event of Default shall exist on such LCT Test Date then such condition shall be deemed satisfied on the date of consummation of such LCT Test Date for purposes of clause (c) above; provided, that, if financial statements for one or more subsequent fiscal periods shall have become available, the Borrower may elect, in its sole discretion, to redetermine all such ratios, tests or baskets on the basis of such financial statements, in which case, such date of redetermination shall thereafter be deemed to be the applicable LCT Test Date. For the avoidance of doubt, if the Borrower has made an LCT Election and any of the ratios, tests or baskets for which compliance was determined or tested as of the LCT Test Date would have failed to have been complied with as a result of fluctuations in any such ratio, test or basket, including due to fluctuations in Consolidated Adjusted EBITDA of the Borrower or the Person subject to such Limited Condition Acquisition or at or prior to the consummation of the relevant transaction or any Default or Event of Default has occurred and is continuing on the date of such Limited Condition Acquisition, such baskets, tests or ratios or requirement will not be deemed to have failed to have been complied with as a result of such circumstance; however, if any ratios improve or baskets increase as a result of such fluctuations, such improved ratios or baskets may be utilized. If the Borrower has made an LCT Election for any Limited Condition Acquisition, then in connection with any calculation of any ratio, test or basket availability with respect to any transaction permitted hereunder (each, a “Subsequent Transaction”) following the relevant LCT Test Date and prior to the earlier of the date on which such Limited Condition Acquisition is consummated or the date that the definitive agreement for such Limited Condition Acquisition is terminated or expires without consummation of such Limited Condition Acquisition, for purposes of determining whether such Subsequent Transaction is permitted under this Agreement, any such ratio, test or basket shall be required to be satisfied on a Pro Forma Basis (i) assuming such Limited Condition Acquisition and other transactions in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof) have been consummated and (ii) solely in the case of a Subsequent Transaction constituting a Restricted Payment, assuming such Limited Condition Transaction and other transactions in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof) have not been consummated.

 

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(f)     Section 3.03. Section 3.03(b) is hereby amended and restated in its entirety to read as follows:

 

(b)     Notwithstanding anything to the contrary in this Agreement or any other Loan Documents, if the Administrative Agent determines (which determination shall be conclusive absent manifest error), or the Borrower or Required Lenders notify the Administrative Agent (with, in the case of the Required Lenders, a copy to Borrower) that the Borrower or Required Lenders (as applicable) have determined, that:

 

(i)     adequate and reasonable means do not exist for ascertaining the Applicable Reference Rate for an Applicable Currency for any requested Interest Period, including, without limitation, because the Screen Rate for such Applicable Currency is not available or published on a current basis and such circumstances are unlikely to be temporary; or

 

(ii)     the administrator of the Screen Rate for an Applicable Currency or a Governmental Authority having jurisdiction over the Administrative Agent or such administrator has made a public statement identifying a specific date after which (x) the Applicable Reference Rate for an Applicable Currency or the Screen Rate for an Applicable Currency shall no longer be made available, or used for determining the interest rate of loans denominated in such Applicable Currency or (y) the administrator of the Screen Rate for an Applicable Currency will be insolvent, provided that, in each case, at the time of such statement, there is no successor administrator that is satisfactory to the Administrative Agent, that will continue to provide the Applicable Reference Rate for such Applicable Currency after such specific date (such specific date, the “Scheduled Unavailability Date”); or

 

(iii)     the administrator of the Screen Rate for an Applicable Currency or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement announcing that all Interest Periods and other tenors of the Applicable Reference Rate for an Applicable Currency are no longer representative; or

 

(iv)     syndicated loans currently being executed, or that include language similar to that contained in this Section 3.03, are being executed or amended (as applicable) to incorporate or adopt a new benchmark interest rate to replace the Applicable Reference Rate for an Applicable Currency,

 

then, in the case of clauses (i)-(iii) above, on a date and time determined by the Administrative Agent (any such date, the “Replacement Date”), which date shall be at the end of an Interest Period or on the relevant interest payment date, as applicable, for interest calculated and shall occur reasonably promptly upon the occurrence of any of the events or circumstances under clauses (i), (ii) or (iii) above and, solely with respect to clause (ii) above, no later than the Scheduled Unavailability Date,

 

7

 

 

(A)      the Applicable Reference Rate for the Dollars will be replaced hereunder and under any Loan Document with, subject to the proviso below, the first available alternative set forth in the order below for any payment period for interest calculated that can be determined by the Administrative Agent, in each case, without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document (the “LIBOR Successor Rate”; and any such rate before giving effect to the Related Adjustment, the “Pre-Adjustment Successor Rate”):

 

(x)     Term SOFR plus the Related Adjustment; and

 

(y)      SOFR plus the Related Adjustment;

 

and in the case of clause (iv) above, the Borrower and Administrative Agent may amend this Agreement solely for the purpose of replacing the Applicable Reference Rate for Dollars under this Agreement and under any other Loan Document in accordance with the definition of “LIBOR Successor Rate” and such amendment will become effective at 5:00 p.m., on the fifth Business Day after the Administrative Agent shall have notified all Lenders and the Borrower of the occurrence of the circumstances described in clause (iv) above unless, prior to such time, Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders object to the implementation of a LIBOR Successor Rate pursuant to such clause;

 

provided that, if the Administrative Agent determines that Term SOFR has become available, is administratively feasible for the Administrative Agent and would have been identified as the Pre-Adjustment Successor Rate in accordance with the foregoing if it had been so available at the time that the LIBOR Successor Rate then in effect was so identified, and the Administrative Agent notifies the Borrower and each Lender of such availability, then from and after the beginning of the Interest Period, relevant interest payment date or payment period for interest calculated, in each case, commencing no less than thirty (30) days after the date of such notice, the Pre-Adjusted Successor Rate shall be Term SOFR and the LIBOR Successor Rate shall be Term SOFR plus the relevant Related Adjustment; and

 

(B)     with respect to any Applicable Currency other than Dollars, the Administrative Agent and the Borrower may amend this Agreement solely for the purpose of replacing the Applicable Reference Rate for the Applicable Currency in accordance with this Section 3.03 with another alternate benchmark rate giving due consideration to any evolving or then existing convention for similar syndicated credit facilities syndicated in the U.S. and denominated in the Applicable Currency for such alternative benchmarks and, in each case, including any mathematical or other adjustments to such benchmark giving due consideration to any evolving or then existing convention for similar syndicated credit facilities syndicated in the U.S. and denominated in the Applicable Currency for such benchmarks, each of which adjustments or methods for calculating such adjustments shall be published on one or more information services as selected by the Administrative Agent from time to time in its reasonable discretion and may be periodically updated (each, an “Adjustment;” and any such proposed rate, an “Applicable Successor Rate” and together with the LIBOR Successor Rate, a “Successor Rate”), and any such amendment shall become effective at 5:00 p.m. on the fifth Business Day after the Administrative Agent shall have posted such proposed amendment to all Lenders and the Borrower unless, prior to such time, Lenders comprising the Required Revolving B Lenders have delivered to the Administrative Agent written notice that such Required Revolving B Lenders object to such amendment. If no Applicable Successor Rate has been determined for the Applicable Currency and the circumstances under clause (i) above exist or the Scheduled Unavailability Date has occurred (as applicable), the Administrative Agent will promptly so notify the Borrower and each Lender.  

 

8

 

 

The Administrative Agent will promptly (in one or more notices) notify the Borrower and each Lender of (x) any occurrence of any of the events, periods or circumstances under clauses (i) through (iii) above, (y) a Replacement Date and (z) the Successor Rate.

 

Any Successor Rate shall be applied in a manner consistent with market practice; provided that to the extent such market practice is not administratively feasible for the Administrative Agent, such Successor Rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.

 

Notwithstanding anything else herein, if at any time any Successor Rate as so determined would otherwise be less than 1.00%, the Successor Rate will be deemed to be 1.00% for the purposes of this Agreement and the other Loan Documents.

 

In connection with the implementation of a Successor Rate, the Administrative Agent will have the right to make Successor Rate Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Successor Rate Conforming Changes will become effective without any further action or consent of any other party to this Agreement; provided that, with respect to any such amendment effected, the Administrative Agent shall post each such amendment implementing such Successor Conforming Changes to the Borrower and the Lenders reasonably promptly after such amendment becomes effective.

 

If the events or circumstances of the type described in Section 3.03(b)(i)-(iii) have occurred with respect to the Successor Rate then in effect, then the successor rate thereto shall be determined in accordance with the definition of “Successor Rate.”

 

(g)     Section 3.03. A new clause (c) and a new clause (d) are hereby added to Section 3.03 of the Credit Agreement to read as follows:

 

(c)     Notwithstanding anything to the contrary herein, (i) after any such determination by the Administrative Agent or receipt by the Administrative Agent of any such notice described under Section 3.03(b)(i)-(iii) with respect to an Applicable Reference Rate for an Applicable Currency, as applicable, if the Administrative Agent determines that a Successor Rate is not available (or in the case of the LIBOR Successor Rate, none of the LIBOR Successor Rates are available) on or prior to the Replacement Date, (ii) if the events or circumstances described in Section 3.03(b)(iv) have occurred with respect to an Applicable Reference Rate for an Applicable Currency but a Successor Rates is not available (or in the case of the LIBOR Successor Rate, none of the LIBOR Successor Rates are available), or (iii) if the events or circumstances of the type described in Section 3.03(b)(i)-(iii) have occurred with respect to the Successor Rate then in effect for an Applicable Currency and the Administrative Agent determines that the Successor Rate is not available (or in the case of the LIBOR Successor Rate, none of the LIBOR Successor Rates are available), then in each case, the Administrative Agent and the Borrower may amend this Agreement solely for the purpose of replacing the Applicable Reference Rate for the Applicable Currency or any then current Successor Rate for such Applicable Currency at the end of any Interest Period, relevant interest payment date or payment period for interest calculated, as applicable, in accordance with this Section 3.03 with another alternate benchmark rate giving due consideration to any evolving or then existing convention for similar U.S. dollar denominated syndicated credit facilities for such alternative benchmarks and, in each case, including any Related Adjustments and any other mathematical or other adjustments to such benchmark giving due consideration to any evolving or then existing convention for similar U.S. dollar denominated syndicated credit facilities for such benchmarks, which adjustment or method for calculating such adjustment shall be published on an information service as selected by the Administrative Agent from time to time in its reasonable discretion and may be periodically updated. For the avoidance of doubt, any such proposed rate and adjustments shall constitute a Successor Rate. Any such amendment shall become effective at 5:00 p.m. on the fifth Business Day after the Administrative Agent shall have posted such proposed amendment to all Lenders and the Borrower unless, prior to such time, Lenders comprising the Required Lenders (or in the case of an Alternative Currency, the Required Revolving B Lenders) have delivered to the Administrative Agent written notice that such Required Lenders (or in the case of an Alternative Currency, the Required Revolving B Lenders) object to such amendment.

 

9

 

 

(d)      If, at the end of any Interest Period, relevant interest payment date or payment period for interest calculated, no Successor Rate has been determined for an Applicable Currency in accordance with clauses (b) or (c) of this Section 3.03 and the circumstances under clauses (b)(i) or (b)(iii) above exist or the Scheduled Unavailability Date has occurred (as applicable), the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter, (x) the obligation of the Lenders to make or maintain Eurocurrency Rate Loans in each such Applicable Currency shall be suspended, (to the extent of the affected Eurocurrency Rate Loans, Interest Periods, interest payment dates or payment periods), and (y) the Eurocurrency Rate component shall no longer be utilized in determining the Base Rate, until the Successor Rate has been determined in accordance with clauses (b) or (c). Upon receipt of such notice, (i) the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurocurrency Rate Loans in each such affected Applicable Currency (to the extent of the affected Eurocurrency Rate Loans, Interest Periods, interest payment dates or payment periods) or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans (subject to the foregoing clause (y)) in the amount specified therein and (ii) any outstanding affected Eurocurrency Rate Loans denominated in an Alternative Currency shall be prepaid at the end of the applicable Interest Period in full.

 

(h)     Section 5.02.     Section 5.02 is hereby modified by adding the following sentence at the end thereof:

 

Notwithstanding anything to the contrary contained herein or in any other Loan Document, if any portion of the Aggregate Revolving Commitments are utilized to pay a portion of the purchase price in connection with the Socrates Acquisition and/or to pay the fees, costs and expenses incurred in connection with the Socrates Acquisition, including, for the avoidance of doubt, to pre-fund interest on the proceeds of notes funded into escrow (the “Socrates Acquisition Costs”), for purposes of the borrowing of such Revolving Loans in an amount not to exceed the Socrates Acquisition Costs, (x) the only representations and warranties the accuracy of which shall be a condition precedent to the funding of the Socrates Acquisition Costs in Loans hereunder are those set forth in Sections 6.01 (only with respect to subclauses (a) and (b)(ii) thereof and with respect to subclause (b)(ii) exclusive of requisite governmental licenses, authorizations, consents and approvals), 6.02 (exclusive of subclauses (b) and (d) thereof), 6.04, 6.07(b) (only with respect to Events of Default pursuant to Section 9.01(a), 9.01(f) and (g)) 6.14, 6.18, 6.19 (subject to any post-closing periods provided for perfection of the Administrative Agent’s security interest in the Collateral), 6.27 and 6.28 and (y) the requirements set forth in Section 5.02(b) shall be satisfied if no Event of Default under Section 9.01(a), 9.01(f) or 9.01(g) exists or would result from such proposed Credit Extension or from the application of the proceeds thereof.

 

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(i)     Section 7.12. Section 7.12(b) is hereby modified by adding the following proviso at the end thereof:

 

; provided, however, with respect to any Licensed Entity, the obligation to cause such Person to become a Guarantor hereunder shall be deferred until the end of the Transition Period applicable to such Licensed Entity (it being agreed that any such Licensed Entity may elect to become a Guarantor during the Transition Period).

 

(j)     Section 8.01. Section 8.01 is hereby amended as follows: (i) the “and” appearing at the end of clause (y) is hereby deleted, (ii) the “.” appearing at the end of clause (z) is hereby deleted and replaced with “;” in lieu thereof; and (iii) new clauses (aa) and (bb) are hereby added to read as follows:

 

(aa)     Liens on Escrow Funds in favor of any Escrow Agent; and

 

(bb)     Liens on Cash and Cash Equivalents of the Borrower and its Restricted Subsidiaries, including in respect of amounts borrowed hereunder, in Escrow Accounts for purposes of financing a portion of the Socrates Acquisition.

 

(k)     Section 8.02. Section 8.02(g) is hereby amended and restated in its entirety as follows:

 

(g)     Permitted Acquisitions, the Matrix Acquisition and the Socrates Acquisition.

 

(l)     Section 8.03. Section 8.03 is hereby amended to (i) delete the “and” appearing at the end of clause (v) thereof, (ii) amending and restating clause (w) as follows: “the Socrates Acquisition Indebtedness;” and (iii) adding the following clauses (x) and (y) as follows:

 

(x)      Permitted Junior Debt (other than the Socrates Acquisition Indebtedness); and

 

(y)     all Permitted Refinancing Indebtedness in respect of Indebtedness of the types referred to in clauses (b) through (h), clause (o), clauses (s) through (u) above, and clauses (w) and (x) above.     

 

(m)     Section 8.09.

 

	 	
			(i)

				
			Section 8.09(a) is hereby amended by (i) deleting the “and” appearing after “Section 8.03(t)” and replacing it with “,” in lieu thereof and (ii) adding the following at the end thereof “and (14) documents in respect of any Permitted Junior Debt, including any Escrow Notes Documents, and the organizational documents of any Escrow Issuer”.

			

 

	 	
			(ii)

				
			Section 8.09(b) is hereby amended by (i) deleting the “and” appearing after “the Convertible Indebtedness Notes Documents” and replacing it with “,” in lieu thereof and (ii) adding the following at the end thereof “and (xi) documents in respect of any Permitted Junior Debt, including any Escrow Notes Documents, and the organizational documents of any Escrow Issuer”

			

 

(n)     Section 8.11. Section 8.11(a) is hereby amended and restated in its entirety as follows:

 

11

 

 

(a)     Consolidated Net Leverage Ratio. Permit the Consolidated Net Leverage Ratio as of the end of any fiscal quarter of the Borrower set forth below to be greater than the ratio set forth below opposite such period:

 

	
			Period Ending

				
			Maximum 

			Consolidated Net 

			Leverage Ratio

			
	
			Eighth Amendment Effective Date through

			September 30, 2021 (or, if the Increase Period occurred, the last fiscal quarter of the Increase Period)

				
			4.00 to 1.00

			
	
			December 31, 2021 (or, if the Increase Period occurred, the first fiscal quarter ending after the Increase Period) and each fiscal quarter thereafter

				
			3.50 to 1.00

			

 

Notwithstanding the foregoing, with respect to the four fiscal quarters ending after the consummation of the Socrates Acquisition (it being understood such four quarter period shall commence with the fiscal quarter in which in the Socrates Acquisition is consummated and such four quarter period shall be defined as the “Increase Period”), the Borrower shall not permit the Consolidated Net Leverage Ratio as of the end of any fiscal quarter of the Borrower during such four quarter period to be greater than 4.50 to 1.00.

 

(o)     Section 8.18. A new Section 8.18 is hereby added to the Credit Agreement to read as follows:

 

8.18     Prometheus. The parties hereto acknowledge that, as of the Eighth Amendment Effective Date, the Loan Parties’ interest in the Mercury Joint Venture is held through Prometheus Holdco, LLC (“Prometheus”), a Delaware limited liability company and a Wholly Owned Subsidiary of the Borrower. Notwithstanding anything to the contrary in Article VII or this Article VIII, (a) so long as substantially all of the assets of Prometheus consist of Equity Interests in the Mercury Joint Venture, Prometheus shall be deemed listed on Schedule 1.01(a) as of its date of formation, (b) the Loan Parties’ interest in the Mercury Joint Venture shall be permitted to be held through Prometheus, and (c) the provisions of Section 8.05(c), addressing Dispositions of the Loan Parties’ interest in the Mercury Joint Venture, shall apply also to a Disposition by Prometheus of its interest in the Mercury Joint Venture, and/or to a Disposition by the Loan Parties of their interest in Prometheus.

 

2.     Conditions Precedent. This Agreement shall be effective upon the satisfaction or waiver of the following conditions (the date of such satisfaction or waiver of such conditions being herein referred to as the “Eighth Amendment Effective Date”): (i) execution and delivery of counterparts hereof by the Borrower, the Guarantors, the Lenders and the Administrative Agent; (ii) receipt by the Administrative Agent of (x) copies of the Organization Documents of each Loan Party certified to be true and complete as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its incorporation or organization, where applicable (or, to the extent such Organization Documents have not been amended or modified since the Closing Date (or such later date when such Organization Documents were delivered to the Administrative Agent), a certification from a secretary or assistant secretary of such Loan Party that no amendments or modifications to such Organization Documents have been made since the Closing Date (or such later date when such Organization Documents were delivered to the Administrative Agent)), and certified by a secretary or assistant secretary of such Loan Party to be true and correct as of the Eighth Amendment Effective Date, (y) such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party and (z) good standings or similar certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and is validly existing and in good standing its state of organization or formation (to the extent the concept of good standing is applicable to such Loan Party under the laws of such jurisdiction), in each case dated as of a recent date; (iii) receipt by the Administrative Agent of favorable opinions of legal counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, dated as of the Eighth Amendment Effective Date, and in form and substance reasonably satisfactory to the Administrative Agent; (iv) [reserved]; (v) the Administrative Agent shall have received, for the benefit of each Lender executing this Agreement (other than the Exiting Lender), a fee equal to 0.375% of such Lender’s Revolving Commitment and (vi) the Loan Parties having paid the reasonable and invoiced out-of-pocket costs and expenses of the Administrative Agent, including, without limitation, the reasonable and invoiced fees and expenses of Moore & Van Allen, PLLC.

 

12

 

 

3.      Agreement on Escrow Funds. Notwithstanding anything else to the contrary in the Credit Agreement or any other Loan Document, the parties hereto agree that any assets subject to a Lien described in clauses (aa) and (bb) of Section 8.01 of the Credit Agreement (as amended hereby), for so long as such assets shall be subject to such Lien, shall not constitute Collateral under the Credit Agreement or any Loan Document, and the Administrative Agent and the Secured Parties (as defined in the Security and Pledge Agreement) shall not be entitled to, and shall not have, a Lien thereon securing the Obligations.

 

4.      [Reserved].

 

5.      Miscellaneous.

 

(a) The Credit Agreement, Security Agreement and Pledge Agreement and the obligations of the Loan Parties thereunder and under the other Loan Documents are hereby ratified and confirmed and shall remain in full force and effect according to their terms. This Agreement is a Loan Document.

 

(b) Each Guarantor (i) acknowledges and consents to all of the terms and conditions of this Agreement, (ii) affirms all of its obligations under the Loan Documents, and (iii) agrees that this Agreement and all documents executed in connection herewith do not operate to reduce or discharge its obligations under the Credit Agreement or the other Loan Documents.

 

(c) The Borrower and the Guarantors hereby represent and warrant as follows:

 

(i) Each Loan Party has taken all necessary action to authorize the execution, delivery and performance of this Agreement.

 

(ii) This Agreement has been duly executed and delivered by the Loan Parties and constitutes each of the Loan Parties’ legal, valid and binding obligations, enforceable in accordance with its terms, except as such enforceability may be limited by Debtor Relief Laws and by general principles of equity and principles of good faith and fair dealing.

 

(iii) No approval, consent, exemption, authorization or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement other than (A) those approvals, consents, exemptions, authorizations or other actions, notices or filings, that have already been obtained, taken, given or made and are in full force and effect, (B) filings and recordings necessary to perfect and continue certain Liens on the Collateral created by the Collateral Documents and (C) recording of the transfer of registrations and applications for IP Rights upon foreclosure.

 

13

 

 

(d) The Loan Parties represent and warrant to the Lenders that (i) the representations and warranties of the Loan Parties set forth in Article VI of the Credit Agreement and in each other Loan Document are (i) with respect to representations and warranties that contain a materiality qualification, true and correct on and as of the date hereof and (ii) with respect to representations and warranties that do not contain a materiality qualification, true and correct in all material respects as of the date hereof with the same effect as if made on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date in which case they shall be true and correct or true and correct in all material respects, as applicable, as of such earlier date and (ii) no event has occurred and is continuing which constitutes a Default or an Event of Default.

 

(e) This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract. This Agreement and any other Loan Document may be executed and delivered by electronic means (including electronic image, facsimile, “.pdf”, “.tif” and “.jpeg”), and thereupon such agreement, certificate or instrument shall be treated in each case and in all manner and respects and for all purposes as an original agreement, certificate or instrument and shall be considered to have the same binding legal effect as if it were an original manually-signed counterpart thereof delivered in person. No party to this Agreement or any other Loan Document shall assert the fact that electronic means were used to make or deliver a signature, or the fact that any signature, agreement, certificate or instrument was created, transmitted or communicated through the use of electronic means, as a defense to the formation, effectiveness, validity or enforceability of any such agreement, certificate or instrument.

 

(f) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

(g) EACH PARTY HERETO AGREES AS SET FORTH IN SECTION 11.15 OF THE CREDIT AGREEMENT AS IF SUCH SECTION WERE SET FORTH IN FULL HEREIN.

 

[SIGNATURE PAGES FOLLOW]

 

14

 

 

 

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

 

	BORROWER:	
			THE PROVIDENCE SERVICE CORPORATION

			 

			By:     /s/ Kathryn Stalmack                                      

			Name:      Kathryn Stalmack

			Title:        Senior Vice President, General Counsel and Secretary

			
	 	 
	GUARANTORS: 	
			LOGISTICARE SOLUTIONS, LLC

			 

			By:     /s/ Kathryn Stalmack                                      

			Name:   Kathryn Stalmack

			Title:     Senior Vice President, General Counsel and Secretary

			 

			Health Trans, Inc.

			Red Top Transportation, Inc.

			Ride Plus, LLC

			ProvADO TECHNOLOGIES, LLC

			CIRCULATION, INC.

			National MedTrans, LLC

			CALIFORNIA MEDTRANS NETWORK MSO LLC

			CALIFORNIA MEDTRANS NETWORK IPA LLC

			FLORIDA MEDTRANS NETWORK MSO LLC

			FLORIDA MEDTRANS NETWORK LLC

			METROPOLITAN MEDICAL TRANSPORTATION IPA, LLC

			TRIMED, LLC

			 

			 

			 

			By:     /s/ Kathryn Stalmack                                      

			Name:     Kathryn Stalmack

			Title:       Secretary

			

 

[Signature Page to Amendment]

 

 

	administrative agent: 	
			bank of america, n.a.,

			as Administrative Agent

			 

			By:     /s/ Gavin Shak          

			Name: Gavin Shak

			Title: Assistant Vice President

			

 

[Signature Page to Eighth Amendment to Amended and Restated Credit and Guaranty Agreement]

 

 

	LENDERS:   	
			bank of america, n.a.,

			as a Lender, Swing Line Lender and L/C Issuer

			 

			By:     /s/ Heath B Lipson                    

			Name:      Heath B Lipson

			Title:        Senior Vice President

			

 

[Signature Page to Eighth Amendment to Amended and Restated Credit and Guaranty Agreement]

 

 

	 	
			TRUIST BANK,

			as a Lender

			 

			By:           /s/ Katie Lundin               

			Name:   Katie Lundin

			Title:     Director

			

 

[Signature Page to Eighth Amendment to Amended and Restated Credit and Guaranty Agreement]

 

 

	 	
			JPMORGAN CHASE BANK, N.A.,

			as a Lender

			 

			By:     /s/ Erik Barragan                     

			Name: Erik Barragan

			Title: Authorized Officer

			

 

[Signature Page to Eighth Amendment to Amended and Restated Credit and Guaranty Agreement]

 

 

	 	
			BMO HARRIS BANK, N.A.

			as a Lender

			 

			By:     /s/ Patrick Epum                    

			Name: Patrick Epum

			Title:      Director

			

 

[Signature Page to Eighth Amendment to Amended and Restated Credit and Guaranty Agreement]

 

 

	 	
			REGIONS BANK,

			as a Lender

			 

			By:     /s/ Robert Laporte                    

			Name: Robert Laporte

			Title:      Director

			

 

[Signature Page to Eighth Amendment to Amended and Restated Credit and Guaranty Agreement]

 

 

	 	
			DEUTSCHE BANK AG NEW YORK BRANCH,

			as a Lender

			 

			By:     /s/ Jennifer Culbert                     

			Name:      Jennifer Culbert

			Title:     Vice President

			 

			 

			 

			By:      /s/ Michael Strobel                    

			Name:     Michael Strobel

			Title:     Vice President

			
	 	 

 

 

[Signature Page to Eighth Amendment to Amended and Restated Credit and Guaranty Agreement]Exhibit 10.1

 

SORRENTO THERAPEUTICS, INC.

2020 EMPLOYEE STOCK PURCHASE PLAN

 

Adopted by the Board of Directors on
August 15, 2020

Approved by Stockholders on or about
October 16, 2020

 

		1.	Establishment of Plan.

 

Sorrento Therapeutics, Inc.
(the “Company”) proposes to grant options to purchase shares (“Purchase Rights”)
of the Company’s Common Stock (the “Common Stock”) to eligible employees of the Company and its
Participating Subsidiaries (as hereinafter defined) pursuant to this Sorrento Therapeutics, Inc. 2020 Employee Stock Purchase
Plan (this “Plan”). For the purposes of this Plan, “Parent Corporation” and “Subsidiary”
shall have the same meanings with respect to the Company as “parent corporation” and “subsidiary corporation”
in Sections 424(e) and 424(f), respectively, of the Internal Revenue Code of 1986, as amended (the “Code”).
 “Participating Subsidiaries” are Subsidiaries that the Board of Directors of the Company (the “Board”)
or the Compensation Committee of the Board (the “Committee”) designates from time to time as corporations
that shall participate in this Plan. The Company intends this Plan to qualify as an “employee stock purchase plan”
under Section 423 of the Code (including any amendments to or replacements of such Section), and this Plan shall be so construed.
Any term not expressly defined in this Plan but defined for purposes of Section 423 of the Code shall have the same definition
herein.

 

		2.	Number of Shares.

 

The total number of
shares of Common Stock initially reserved and available for issuance pursuant to this Plan shall be 7,500,000, subject to adjustments
effected in accordance with Section 15. If any Purchase Right granted under this Plan terminates without having been exercised
in full, the shares of Common Stock not purchased under such Purchase Right will again become available for issuance under this
Plan. The shares purchasable under this Plan will be shares of authorized but unissued or reacquired Common Stock, including shares
repurchased by the Company on the open market.

 

		3.	Purpose.

 

The purpose of this
Plan is to provide eligible employees of the Company and Participating Subsidiaries with a convenient means of acquiring an equity
interest in the Company through payroll deductions, to enhance such employees’ sense of participation in the affairs of the
Company and Participating Subsidiaries, and to provide an incentive for continued employment. For the purposes of this Plan, “employee”
shall mean any individual who is an employee of the Company or a Participating Subsidiary. Whether an individual qualifies as an
employee shall be determined by the Committee, in its sole discretion. The Committee shall be guided by the provisions of Treasury
Regulation Section 1.421-7 and Section 3401(c) of the Code and the Treasury Regulations thereunder, with the intent
that this Plan cover all “employees” within the meaning of those provisions other than those who are not eligible to
participate in this Plan. For purposes of an individual’s participation in or other rights, if any, under this Plan as of
the time of the determination by the Committee of whether or not an individual is an employee, all such determinations by the Committee
shall be final, binding and conclusive as to such rights, if any, notwithstanding that the Company or any court of law or governmental
agency subsequently makes a contrary determination as to such individual’s status as an employee. Unless the Committee makes
a contrary determination, the employees of the Company shall, for all purposes of this Plan, be those individuals who are carried
as employees of the Company or a Participating Subsidiary for regular payroll purposes or are on a leave of absence for not more
than 90 days. Any inquiries regarding eligibility to participate in this Plan shall be directed to the Committee, whose decision
shall be final.

 

    

    

    

 

		4.	Administration.

 

This Plan shall be
administered by the Committee. Subject to the provisions of this Plan and the limitations of Section 423 of the Code or any
successor provision in the Code, all questions of interpretation or application of this Plan shall be determined by the Committee
and its decisions shall be final, binding and conclusive upon all participants. Members of the Committee shall receive no compensation
for their services in connection with the administration of this Plan, other than standard fees as established from time to time
by the Board for services rendered by Board members serving on Board committees. All expenses incurred in connection with the administration
of this Plan shall be paid by the Company. The Committee will have the power, subject to, and within the limitations of, the express
provisions of this Plan: (a) to designate from time to time which entities are Participating Subsidiaries, (b) to construe
and interpret this Plan and rights granted hereunder, and to establish, amend and revoke rules and regulations for its administration,
(c) to settle all controversies regarding this Plan and Purchase Rights granted under this Plan, (d) to amend or terminate
this Plan at any time as provided in Section 26, and (e) to adopt such rules, procedures and sub-plans relating to the
operation and administration of this Plan as are necessary or appropriate under applicable local laws, regulations and procedures
to permit or facilitate participation in this Plan by employees who are foreign nationals or employed or located outside the United
States.

 

		5.	Eligibility.

 

Any employee of the
Company or the Participating Subsidiaries is eligible to participate in an Offering Period (as hereinafter defined) under this
Plan except the following:

 

(a)            employees
who are not employed by the Company or a Participating Subsidiary prior to the beginning of such Offering Period or, if specified
by the Committee with respect to an Offering Period, the employee has not been in the employ of the Company or a Participating
Subsidiary, as the case may be, for such continuous period preceding such start of such Offering Period as the Committee may require,
but in no event will the required period of continuous employment be equal to or greater than two years,

 

(b)            employees
who are customarily employed for twenty (20) hours or less per week,

 

(c)            employees
who are customarily employed for five (5) months or less in a calendar year, and

 

(d)            employees
who, together with any other person whose stock would be attributed to such employee pursuant to Section 424(d) of the
Code, own stock or hold options to purchase stock possessing five percent (5%) or more of the total combined voting power or value
of all classes of stock of the Company or any Parent Corporation or Subsidiary or who, as a result of being granted an option under
this Plan with respect to such Offering Period, would own stock or hold options to purchase stock possessing five percent (5%)
or more of the total combined voting power or value of all classes of stock of the Company or any Parent Corporation or Subsidiary.

 

    2

    

    

 

		6.	Offering & Purchase Periods.

 

Unless otherwise specified
by the Committee, the offering periods of this Plan (each, an “Offering Period”) shall (a) be of
six (6) months’ duration, and (b) commence on November 6th and end on May 5th,
or commence on May 6th of each year and end on November 5th of the following year, as applicable.

 

Each Offering Period
shall consist of one (1) six (6)-month purchase period (a “Purchase Period”) during which payroll
deductions of the participants are accumulated under this Plan.

 

The first business
day of each Offering Period is referred to as the “Offering Date”. The last business day of each Purchase
Period is referred to as the “Purchase Date”.

 

The Committee shall
have the power to change the Offering Dates, the Purchase Dates and the duration of Offering Periods (provided that the duration
of an Offering Period may not exceed twenty-seven (27) months from the Offering Date) or Purchase Periods without stockholder approval
if such change is announced prior to the relevant Offering Period or prior to such other time period as specified by the Committee.

 

		7.	Participation in this Plan.

 

Eligible employees
may become participants in an Offering Period under this Plan on the Offering Date, after satisfying the eligibility requirements,
by delivering a subscription agreement to the Company prior to such Offering Date, or such other time period as specified by the
Committee. An eligible employee who does not deliver a subscription agreement to the Company after becoming eligible to participate
in an Offering Period shall not participate in that Offering Period or any subsequent Offering Period unless such employee enrolls
in this Plan by delivering a subscription agreement with the Company prior to such Offering Period, or such other time period as
specified by the Committee. Once an employee becomes a participant in an Offering Period by delivering a subscription agreement
to the Company, such employee shall automatically participate in the Offering Period commencing immediately following the last
day of the prior Offering Period unless the employee withdraws or is deemed to withdraw from this Plan or terminates further participation
in the Offering Period as set forth in Section 12. Such participant is not required to deliver any additional subscription
agreement in order to continue participation in this Plan.

 

		8.	Grant of Purchase Right on Enrollment.

 

On each Offering Date,
each eligible employee will be granted a Purchase Right to purchase up to that number of shares of Common Stock (rounded down to
the nearest whole share) purchasable either with a percentage or with a maximum dollar amount, as designated by the Committee,
but in either case not exceeding fifteen percent (15%) of such employee’s compensation for such Offering Period during the
period that begins on the Offering Date and ends on the last day of the Offering Period.

 

    3

    

    

 

		9.	Purchase Price.

 

The purchase price
per share at which a share of Common Stock shall be sold in any Offering Period shall be eighty-five percent (85%) of the lesser
of: (a) the fair market value on the Offering Date; or (b) the fair market value on the Purchase Date.

 

For the purposes of
this Plan, the term “fair market value” means, as of any date, the value of a share of the Company’s
Common Stock determined as follows:

 

(a)            If
the Common Stock is listed on any established stock exchange or traded on any established market, the fair market value of a share
of Common Stock will be the closing sales price for such shares as quoted on such exchange or market (or the exchange or market
with the greatest volume of trading in the Common Stock) on the date of determination, as reported in such source as the Committee
deems reliable. Unless otherwise provided by the Committee, if there is no closing sales price for the Common Stock on the date
of determination, then the fair market value will be the closing sales price on the last preceding date for which such quotation
exists;

 

(b)            If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the fair market value
of a share of Common Stock will be the average of the closing bid and asked prices for the Common Stock on the date of determination
(or if no bids and asks were reported on that date, as applicable, on the last trading day such bids and asks were reported); or

 

(c)            In
the absence of an established market for the Common Stock, the fair market value of a share of Common Stock will be determined
in good faith by the Committee.

 

		10.	Payment of Purchase Price; Changes in Payroll Deductions; Issuance of Shares.

 

(a)           The
purchase price of the shares is accumulated by regular payroll deductions made during each Offering Period. The deductions may
be made (at the election of the participant) either (a) as an election of a whole dollar amount not less than $10 per payroll
period, nor greater than an amount equal to the amount that is fifteen percent (15%) of the participant’s compensation, or
(b) as a percentage of the participant’s compensation in one percent (1%) increments, not less than one percent (1%),
nor greater than fifteen percent (15%), or, in each case, such lower limit set by the Committee. Compensation shall mean base pay,
incentive compensation, bonuses and commissions (provided, however, that with respect to an Offering Period, the
participant may elect to have his or her percentage of payroll deductions under this Plan calculated with respect to (and solely
deducted from) only his or her base pay); provided, however, that for purposes of determining a participant’s
compensation, any election by such participant to reduce his or her regular cash remuneration under Sections 125 or 401(k) of
the Code shall be treated as if the participant did not make such election. Payroll deductions shall commence on the first payday
after the beginning of the Offering Period and shall continue to the end of the Offering Period unless sooner altered or terminated
as provided by this Plan.

 

    4

    

    

 

(b)           A
participant may increase or decrease the rate of payroll deductions during an Offering Period by filing with the Company a new
authorization for payroll deductions, in which case the new rate shall become effective for the next payroll period commencing
after the Company’s receipt of the authorization and shall continue for the remainder of the Offering Period unless changed
as described below. Such change in the rate of payroll deductions may be made at any time during an Offering Period, but unless
otherwise provided by the Committee with respect to a Purchase Period, not more than one (1) change may be made effective
during any Purchase Period. A participant may increase or decrease the rate of payroll deductions for any subsequent Offering Period
by filing with the Company a new authorization for payroll deductions prior to the beginning of such Offering Period, or such other
time period as specified by the Committee.

 

(c)           A
participant may reduce his or her payroll deduction percentage to zero during an Offering Period by filing with the Company a request
for cessation of payroll deductions. Such reduction shall be effective beginning with the next payroll period after the Company’s
receipt of the request and no further payroll deductions shall be made for the duration of the Offering Period. Payroll deductions
credited to the participant’s account prior to the effective date of the request shall be used to purchase shares of Common
Stock of the Company in accordance with Section 10(e). A participant may not resume making payroll deductions during the Offering
Period in which he or she reduced his or her payroll deductions to zero.

 

(d)           All
payroll deductions made for a participant are credited to his or her account under this Plan and are deposited with the general
funds of the Company. No interest accrues on the payroll deductions. All payroll deductions received or held by the Company may
be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions.

 

(e)           On
each Purchase Date, for so long as this Plan remains in effect and provided that the participant has not submitted a signed and
completed withdrawal form before that date (or such deadline prior to the Purchase Date established by the Committee), which notifies
the Company that the participant wishes to withdraw from that Offering Period under this Plan and have all payroll deductions accumulated
in the account maintained on behalf of the participant, as of that date returned to the participant, the Company shall apply the
funds then in the participant’s account to the purchase of whole shares of Common Stock reserved under the Purchase Right
granted to such participant with respect to the Offering Period to the extent that such Purchase Right is exercisable on the Purchase
Date. The purchase price per share shall be as specified in Section 9. Any cash remaining in a participant’s account
after such purchase of shares shall be refunded to such participant in cash, without interest; provided, however,
that any amount remaining in such participant’s account on a Purchase Date which is less than the amount necessary to purchase
a full share of Common Stock shall be carried forward, without interest, into the next Purchase Period or Offering Period, as the
case may be. In the event that this Plan has been oversubscribed, all funds not used to purchase shares on the Purchase Date shall
be returned to the participant, without interest. No Common Stock shall be purchased on a Purchase Date on behalf of any employee
whose participation in this Plan has terminated prior to such Purchase Date.

 

(f)           As
soon as practicable after the Purchase Date, the Company shall issue shares for the participant’s benefit representing the
shares purchased upon exercise of his or her Purchase Right.

 

    5

    

    

 

(g)           During
a participant’s lifetime, his or her Purchase Right hereunder is exercisable only by him or her. The participant shall have
no interest or voting rights in shares covered by any of his or her Purchase Right until such Purchase Right has been exercised.

 

		11.	Limitations on Shares to be Purchased.

 

(a)           As
specified by Section 423(b)(8) of the Code, an eligible employee may be granted Purchase Rights under this Plan only
if such Purchase Rights, together with any other rights granted under all employee stock purchase plans of the Company and any
Parent Corporation or Subsidiary, do not permit such eligible employee’s Purchase Rights to accrue at a rate which, when
aggregated, exceeds $25,000 of fair market value of such shares (determined at the time such rights are granted, and which, with
respect to this Plan, will be determined as of their respective Offering Dates) for each calendar year in which such Purchase Rights
are outstanding at any time. The Company shall automatically suspend the payroll deductions of any participant as necessary to
enforce such limit; provided that when the Company automatically resumes such payroll deductions, the Company must apply
the rate in effect immediately prior to such suspension. This limitation shall apply on a calendar year by calendar year basis
and no unused portion of this limitation may be used in subsequent calendar years.

 

(b)           No
participant shall be entitled to purchase more than the Maximum Share Amount (as defined below) on any single Purchase Date. Prior
to the commencement of any Offering Period or prior to such time period as specified by the Committee, the Committee may, in its
sole discretion, set a maximum number of shares which may be purchased by any employee at any single Purchase Date (hereinafter
the “Maximum Share Amount”) and unless otherwise specified by the Committee, the Maximum Share Amount
shall be 20,000 shares. If a new Maximum Share Amount is set, then all participants must be notified of such Maximum Share Amount
prior to the commencement of the next Offering Period. The Maximum Share Amount shall continue to apply with respect to all succeeding
Purchase Dates and Offering Periods unless revised by the Committee as set forth above. In addition, prior to the commencement
of an Offering Period or prior to such time period as may be specified by the Committee, the Committee may, in its sole discretion,
set a maximum number of shares which may be purchased by all participants on any single Purchase Date (hereinafter the “Aggregate
Purchase Date Amount”).

 

(c)            If
the number of shares to be purchased on a Purchase Date by all employees participating in this Plan exceeds the number of shares
then available for issuance under this Plan (or if applicable, the Aggregate Purchase Date Amount), then the Company shall make
a pro rata allocation of the remaining shares in as uniform a manner as shall be reasonably practicable and as the Committee shall
determine to be equitable. In such event, the Company shall give written notice of such reduction of the number of shares to be
purchased under a participant’s Purchase Right to each participant affected.

 

(d)           Any
payroll deductions accumulated in a participant’s account which are not used to purchase stock due to the limitations in
this Section 11 shall be returned to the participant as soon as practicable after the end of the applicable Purchase Period,
without interest.

 

    6

    

    

 

		12.	Withdrawal.

 

(a)            Each
participant may withdraw from an Offering Period under this Plan by signing and delivering to the Company a written notice to that
effect on a form provided for such purpose. Such withdrawal may be elected at any time prior to the end of an Offering Period,
or such other time period as specified by the Committee.

 

(b)           Upon
withdrawal from this Plan, the accumulated payroll deductions shall be returned to the withdrawn participant, without interest,
and his or her interest in this Plan shall terminate. In the event a participant voluntarily elects to withdraw from this Plan,
he or she may not resume his or her participation in this Plan during the same Offering Period, but he or she may participate in
any Offering Period under this Plan which commences on a date subsequent to such withdrawal by filing a new authorization for payroll
deductions in the same manner as set forth in Section 7 for initial participation in this Plan.

 

		13.	Termination of Employment.

 

Termination of a participant’s
employment for any reason, including retirement, death or the failure of a participant to remain an eligible employee of the Company
or of a Participating Subsidiary, shall immediately terminate his or her participation in this Plan. In such event, the payroll
deductions credited to the participant’s account shall be returned to him or her or, in the case of his or her death, to
his or her legal representative, without interest. For purposes of this Section 13, an employee shall not be deemed to have
terminated employment or failed to remain in the continuous employ of the Company or of a Participating Subsidiary in the case
of sick leave, military leave, or any other leave of absence approved by the Committee; provided, however, that such
leave is for a period of not more than ninety (90) days or reemployment upon the expiration of such leave is guaranteed by contract
or statute. The Committee will have sole discretion to determine whether a participant has terminated employment and the effective
date on which the participant terminated employment.

 

		14.	Return of Payroll Deductions.

 

In the event a participant’s
interest in this Plan is terminated by withdrawal, termination of employment or otherwise, or in the event this Plan is terminated
by the Board or the Committee, the Company shall deliver to the participant all payroll deductions credited to such participant’s
account. No interest shall accrue on the payroll deductions of a participant in this Plan.

 

		15.	Capital Changes.

 

Subject to any required
action by the stockholders of the Company, the number and type of shares of Common Stock covered by each Purchase Right under this
Plan which has not yet been exercised and the number and type of shares of Common Stock which have been authorized for issuance
under this Plan but have not yet been placed under a Purchase Right (collectively, the “Reserves”), the
Maximum Share Amount and, if applicable, any Aggregate Purchase Date Amount, as well as the price per share of Common Stock covered
by each Purchase Right under this Plan which has not yet been exercised, shall be proportionately adjusted for any increase or
decrease in the number of issued and outstanding shares of Common Stock of the Company resulting from a stock split or the payment
of a stock dividend (but only on the Common Stock), any other increase or decrease in the number of issued and outstanding shares
of Common Stock effected without receipt of any consideration by the Company or other change in the corporate structure or capitalization
affecting the Company’s present Common Stock; provided, however, that conversion of any convertible securities
of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall
be made by the Committee, whose determination shall be final, binding and conclusive. Except as expressly provided herein, no issue
by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and
no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to a Purchase
Right.

 

    7

    

    

 

In the event of the
proposed dissolution or liquidation of the Company, the Offering Period shall terminate immediately prior to the consummation of
such proposed action, unless otherwise provided by the Committee. The Committee may, in the exercise of its sole discretion in
such instances, declare that this Plan shall terminate as of a date fixed by the Committee and give each participant the right
to purchase shares under this Plan prior to such termination. In the event of (a) a merger or consolidation in which the Company
is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a reincorporation of the
Company in a different jurisdiction, or other transaction in which there is no substantial change in the stockholders of the Company
or their relative stock holdings and the Purchase Rights under this Plan are assumed, converted or replaced by the successor corporation,
which assumption shall be final, binding and conclusive on all participants), (b) a merger in which the Company is the surviving
corporation but after which the stockholders of the Company immediately prior to such merger (other than any stockholder that merges,
or which owns or controls another corporation that merges, with the Company in such merger) cease to own their shares or other
equity interest in the Company, (c) the sale of all or substantially all of the consolidated assets of the Company and its
Subsidiaries, or (d) the acquisition, sale, or transfer of more than 50% of the outstanding shares of the Company or similar
transaction, then (i) any surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s
parent company) may assume or continue outstanding Purchase Rights granted under this Plan or may substitute similar rights (including
a right to acquire the same consideration paid to the stockholders in the transaction) for outstanding Purchase Rights, or (ii) if
any surviving or acquiring corporation (or its parent company) does not assume or continue such Purchase Rights or does not substitute
similar rights for such Purchase Rights, then the participants’ accumulated Plan contributions will be used to purchase shares
of Common Stock (rounded down to the nearest whole share) under the outstanding Purchase Rights within ten business days (or such
other period specified by the Committee) prior to the transaction, and the Purchase Rights will terminate immediately after such
purchase.

 

The Committee may,
if it so determines in the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price
per share of Common Stock covered by each outstanding Purchase Right, in the event that the Company effects one or more reorganizations,
recapitalizations, rights offerings or other increases or reductions of shares of its outstanding Common Stock, or in the event
of the Company being consolidated with or merged into any other corporation.

 

    8

    

    

 

		16.	Nonassignability.

 

Neither payroll deductions
credited to a participant’s account nor any rights with regard to the exercise of a Purchase Right or to receive shares under
this Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by the laws of descent and distribution
or as provided in Section 23) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall
be void and without effect.

 

		17.	Reports.

 

Individual accounts
shall be maintained for each participant in this Plan. Each participant shall receive, at least annually, a report of his or her
account setting forth the total payroll deductions accumulated, the number of shares purchased, the per share price thereof and
the remaining cash balance, if any, carried forward to the next Purchase Period or Offering Period, as the case may be.

 

		18.	Disposition Requirements.

 

(a)            Each
participant shall notify the Company in writing if the participant disposes of any of the shares purchased in any Offering Period
pursuant to this Plan if such disposition occurs within two (2) years from the Offering Date or within one (1) year from
the Purchase Date on which such shares were purchased (the “Notice Period”). After the Notice Period,
the Company may require each participant to give the Company prompt notice of any disposition of shares purchased in any Offering
Period pursuant to this Plan.

 

(b)           The
Company may place a legend or legends on any certificate representing shares acquired pursuant to this Plan requesting the Company’s
transfer agent to notify the Company of any transfer of the shares.

 

		19.	No Rights to Continued Employment.

 

Neither this Plan
nor the grant of any Purchase Right hereunder shall confer any right on any employee to remain in the employ of the Company or
any Participating Subsidiary, or restrict the right of the Company or any Participating Subsidiary to terminate such employee’s
employment.

 

		20.	Equal Rights and Privileges; Rules for Foreign Jurisdictions.

 

All eligible employees
shall have equal rights and privileges with respect to this Plan so that this Plan qualifies as an “employee stock purchase
plan” within the meaning of Section 423 or any successor provision of the Code and the related regulations. Any provision
of this Plan which is inconsistent with Section 423 or any successor provision of the Code shall, without further act or amendment
by the Company, the Committee or the Board, be reformed to comply with the requirements of Section 423. This Section 20
shall take precedence over all other provisions in this Plan. Notwithstanding the foregoing, the Company may adopt (a) rules or
procedures relating to the operation and administration of this Plan to accommodate the specific requirements of local laws and
procedures, including, without limitation, rules and procedures regarding handling of payroll deductions, payment of interest,
conversion of local currency, payroll tax, withholding procedures and handling of stock certificates which vary with local requirements,
or (b) sub-plans applicable to particular Subsidiaries or locations, which sub-plans may be designed to be outside the scope
of Section 423 of the Code, and the rules of such sub-plans may take precedence over other provisions of this Plan with
respect to such foreign participants, but unless otherwise superseded by the specific terms of such sub-plan, the provisions of
this Plan shall govern the operation of such sub-plan.

 

    9

    

    

 

		21.	Notices.

 

All notices or other
communications by a participant to the Company under or in connection with this Plan shall be deemed to have been duly given when
received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

 

		22.	Term; Stockholder Approval.

 

This Plan shall be
approved by the stockholders of the Company, in any manner permitted by applicable corporate law, within twelve (12) months after
the date this Plan is adopted by the Board. No purchase of shares pursuant to this Plan shall occur prior to such stockholder approval.
This Plan shall continue until the earlier to occur of (a) termination of this Plan by the Board or the Committee (which termination
may be effected by the Board or the Committee at any time), or (b) issuance of all of the shares of Common Stock reserved
for issuance under this Plan.

 

		23.	Designation of Beneficiary.

 

(a)            The
Company may, but is not obligated to, permit a participant to submit a form designating a beneficiary who will receive any shares
of Common Stock and/or contributions from the participant’s account under this Plan if the participant dies before such shares
and/or contributions are delivered to the participant. The Company may, but is not obligated to, permit the participant to change
such designation of beneficiary. Any such designation and/or change must be on a form approved by the Company.

 

(b)            If
a participant dies and has no valid beneficiary designation, the Company will deliver any shares of Common Stock and/or contributions
to the executor or administrator of the estate of the participant. If no executor or administrator has been appointed (to the knowledge
of the Company), the Company, in its sole discretion, may deliver such shares of Common Stock and/or contributions, without interest,
to the participant’s spouse, dependents or relatives, or if no spouse, dependent or relative is known to the Company, then
to such other person as the Company may designate.

 

		24.	Conditions Upon Issuance of Shares; Limitation on Sale of Shares.

 

Shares shall not be
issued with respect to a Purchase Right unless the exercise of such Purchase Right and the issuance and delivery of such shares
pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities
Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder,
and the requirements of any stock exchange or automated quotation system upon which the shares may then be listed, and shall be
further subject to the approval of counsel for the Company with respect to such compliance.

 

    10

    

    

 

		25.	Applicable Law.

 

This Plan shall be
governed by the substantive laws (excluding the conflict of laws rules) of the State of Delaware.

 

		26.	Amendment or Termination.

 

The Board or the Committee
may at any time amend, terminate or extend the term of this Plan, except that any such termination cannot affect Purchase Rights
previously granted under this Plan, nor may any amendment make any change in a Purchase Right previously granted which would adversely
affect the right of a participant without the consent of such participant, nor may any amendment be made without approval of the
stockholders of the Company obtained in accordance with Section 22 within twelve (12) months of the adoption of such amendment
(or earlier if required by Section 22) if such amendment would:

 

(a)            increase
the number of shares that may be issued under this Plan; or

 

(b)            change
the designation of the employees (or class of employees) eligible for participation in this Plan.

 

Notwithstanding the
foregoing, in the event that the Board or the Committee determines that the ongoing operation of this Plan may result in unfavorable
financial accounting consequences, the Board (or the Committee) may, in its discretion and, to the extent necessary or desirable,
modify, amend or terminate this Plan to reduce or eliminate such accounting consequence.

 

    11

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