Document:

Exhibit 10.28

 

TUTOR.COM, INC. 2013 INCENTIVE PLAN

 

1.     Purpose.  The purpose of the Tutor.com, Inc. 2013 Incentive Plan (the “Plan”) is to retain and motivate certain key employees of Tutor.com, Inc. (the “Company”) who regularly, or are expected to regularly, make or influence decisions that affect the long-term success of the Company.

 

2.     Definitions.  As used herein, unless the context clearly requires otherwise, the following words and expressions shall have the meanings respectively provided:

 

(a)   “Affiliate” with respect to an entity means an entity controlling, controlled by or under common control with such entity.

 

(b)   “Award Agreement” means the written agreement among the Company, IAC and a Participant evidencing the award of SARs or other stock-based awards granted under this Plan and setting forth the terms and conditions thereof.

 

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

 

(d)   “Cause” shall have the meaning, if any, provided in the Participant’s employment agreement with the Company, or, if there is no such agreement, (i) the plea of guilty or nolo contendere to, or indictment for, the commission of a felony offense by the Participant; (ii) any act of material dishonesty, malfeasance, negligence, misconduct or breach of fiduciary duty by the Participant in connection with his or her employment with or duties to the Company or any of its subsidiaries or Affiliates (including, without limitation, IAC and its direct and indirect subsidiaries); (iii) commission by the Participant of fraud, misappropriation, theft or embezzlement with respect to the Company’s or any of its subsidiaries’ or Affiliates’ (including, IAC and its direct and indirect subsidiaries) funds or property; (iv) a breach by the Participant of any of the covenants made by the Participant contained in any restrictive covenant agreement to which the Participant is a party; (v) the failure or refusal of the Participant, after written notice thereof from the Company, to (x) perform the duties and responsibilities reasonably required as an employee or other service provider of the Company or any of its subsidiaries or Affiliates (including, without limitation, IAC and its direct and indirect subsidiaries) consistent with his position or (y) act in accordance with specific, reasonable and lawful instructions from the individual to whom the Participant reports or, to the extent applicable, the board of directors of the Company; (vi) a violation by the Participant of any IAC or Company policy previously provided or made available to Participant pertaining to ethics, wrongdoing or conflicts of interest; or (vii) the Participant has caused material loss, damage or injury to or otherwise materially endangered the property, reputation or employees of the Company or any of its subsidiaries or Affiliates (including, without limitation, IAC and its direct and indirect subsidiaries), other than as a result of the Participant following specific instructions from the individual to whom the Participant reports or, to the extent applicable, the board of directors of the Company.

 

(e)   “Change in Control” shall mean:

 

(i)            The acquisition, in one or more related transactions, by any individual, entity or group, within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, other

 

 

than IAC or Barry Diller, and their respective Affiliates (a “Person”), directly or indirectly, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% of the Outstanding Company Voting Securities; provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control: (1) any acquisition by the Company, (2) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company and (3) any acquisitions by any Person pursuant to a transaction which complies with clauses (A) and (B) of subsection (ii); or

 

(ii)           The consummation, in one or more related transactions, of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the capital stock or assets of the Company or the purchase of assets or stock of another entity (a “Business Combination”), in each case, unless immediately following the Business Combination (A) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then outstanding combined voting power of the then outstanding securities entitled to vote generally in the election of directors of the entity resulting from such Business Combination (including, without limitation, an entity, which as a result of such transaction owns the Company or all or substantially all of the assets of the Company either directly or indirectly through subsidiaries) in substantially the same proportion as their ownership immediately prior to such Business Combination of the Outstanding Company Voting Securities and (B) no Person (excluding IAC, Barry Diller and their respective Affiliates, any employee benefit plan (or related trust) of the Company or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, more than a majority of the combined voting power of the then outstanding voting securities of such entity except to the extent that such ownership of the Company existed prior to the Business Combination.

 

Notwithstanding paragraphs (i) and (ii) above, in no event shall a Change in Control be deemed to occur under paragraphs (i) and (ii) above if IAC or its Affiliates (or Barry Diller or his Affiliates) maintains a direct or indirect Controlling Interest in the Company or an entity that maintains a Controlling Interest in the Company.  A “Controlling Interest” in an entity shall mean (x) beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of (A) more than 50% of the outstanding equity securities of the entity or (B) equity securities representing more than 50% of the voting power of the outstanding equity securities of the entity or (y) voting control of more than 50% of the voting power of the entity.

 

(f)    “Code” means the Internal Revenue Code of 1986, as amended.

 

(g)   “Committee” means a committee appointed by the Board from time to time to administer the Plan and perform the duties set forth in Section 3.

 

(h)   “Common Stock” means a share of common stock of the Company, par value $.01 or other common equity of the Company into which the common stock is exchanged or converted.

 

(i)    “Disability” shall have the meaning, if any, provided in the Participant’s employment agreement with the Company, if any, or, if there is no such agreement, shall occur if as a result

 

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of the Participant’s incapacity due to physical or mental illness, the Participant shall have been absent from the full-time performance of the Participant’s duties with the Company for a period of four (4) consecutive months and, within thirty (30) days after written notice is provided to the Participant by the Company, the Participant shall not have returned to the full-time performance of the Participant’s duties.

 

(j)    “Effective Date” has the meaning specified in Section 16.

 

(k)   “Eligible Person” means any Company employee who is selected by the Committee to participate in the Plan.

 

(l)    “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto.

 

(m)  “FMV” means the Committee’s reasonable, good faith judgment, determined in accordance with Section 409A of the Internal Revenue Code, of the fair market value of a share of common stock of the Company, taking into account all relevant factors, including the capital structure of the Company. IAC’s determination of FMV shall be based upon valuation methodologies it deems appropriate for the type of business maintained by the Company, which may include but not be limited to (i) discounted cash flows analysis, (ii) comparable companies analysis and (iii) analyst estimates.  The determination of FMV shall be determined by reference to the value of 100% of the equity interests of the Company, i.e., it shall not be based on valuations of comparable companies implied by investments for less than 100% of the equity interests of such companies or by reference to publicly-traded companies with small or thinly-traded floats.  Notwithstanding the foregoing, in the event that shares of Common Stock are publicly traded on a national securities exchange, FMV shall mean the closing price of a share of Common Stock on the applicable exchange on the date of measurement (or, if not traded on such measurement date, the next preceding date on which such shares of Common Stock were traded).

 

(n)   “Grant Date” means the date specified in an Award Agreement on which a Participant is granted one or more SARs under the Plan.

 

(o)   “Good Reason” shall have the meaning, if any, provided in the Participant’s employment agreement with the Company, or, if there is no such agreement, shall mean any of the following without the Participant’s written consent, (A) the reduction in such Participant’s base salary, or (B) the relocation of such Participant’s principal place of employment to a location that is more than 60 miles from the current place of work of the participant; provided, however, that in no event shall such Participant’s resignation be for “Good Reason” unless (x) an event or circumstance set forth in clauses (A) through (B) shall have occurred and such Participant provides the Company with written notice thereof within sixty (60) days after such Participant has knowledge of the occurrence or existence of such event or circumstance, which notice specifically identifies the event or circumstance that such Participant believes constitutes Good Reason, (y) the Company fails to correct the circumstance or event so identified within thirty (30) days after the receipt of such notice, and (z) such Participant resigns within ninety (90) days after the date of delivery of the notice referred to in clause (x) above.

 

(p)   “IAC” means IAC/InterActiveCorp, the ultimate parent company of the Company.

 

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(q)   “Outstanding Company Voting Securities” means equity securities of the Company entitled to vote generally in the election of directors or managers, as the case may be.

 

(r)    “Participant” means any Eligible Person to whom an award of SARs has been granted under the Plan.

 

(s)    “Person” means any person or entity, including an individual, trustee, corporation, partnership, limited liability company, joint venture, trust, unincorporated organization, business association, firm or governmental authority.

 

(t)    “SAR” means a stock appreciation right to be granted hereunder.

 

(u)   “Termination of Employment” means a Participant’s termination of employment with the Company and/or any of its subsidiaries.

 

3.     Administration of the Plan.

 

(a)   Administrator.  The Plan shall be administered by the Committee, which shall have complete discretion and authority to select Eligible Persons to whom awards may be granted, determine the type of award to be granted (which may include SARs, stock options, restricted stock units or other stock-based awards), interpret and construe the Plan and any awards issued hereunder, decide all questions of eligibility and benefits (including underlying factual determinations), and adjudicate all claims and disputes.  In the event the Committee determines to grant awards under the Plan other than SARs, references in the Plan to SARs shall be deemed to refer to the type of award being granted, unless otherwise set forth in the Plan or the Award Agreement for such award.  The determination of the Committee on the matters pertaining to the Plan shall be final, binding, and conclusive on all interested parties.  If there is no Committee, all references in this Plan or any Award Agreement to the Committee shall be deemed a reference to the Board.

 

(b)   Administrative Rules.  The Committee may (i) adopt, amend and rescind rules and regulations relating to the Plan; (ii) determine the terms and provisions of the respective awards of SARs, including provisions defining or otherwise relating to (A) the duration of the awards, (B) the effect of termination of employment on continued benefits under the Plan (C) the effect of approved leaves of absence on the rights to benefits under the Plan and (D) the exercise price or grant price applicable to any SAR award; (iii) construe the provisions of the Plan and the respective Award Agreements; and (iv) make all determinations necessary or advisable for administering the Plan.  The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Award Agreement in the manner and to the extent it shall deem expedient to carry the Plan or Award Agreement into effect, and it shall be the sole and final judge of such expediency.  The determination of the Committee on the matters pertaining to the Plan shall be final, binding, and conclusive on all interested parties.

 

(c)   Good Faith Determinations.  No member of the Committee or the Board shall be liable, with respect to the Plan or any Award Agreement, for any act, whether of commission or omission, taken by any other member or by any officer, agent, or employee of IAC or any of its subsidiaries (including the Company), nor, excepting circumstances involving his or her own bad faith, for anything done or omitted to be done by himself.

 

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4.     Eligibility and Participation.

 

(a)   Eligibility and Grant of Awards.  Awards may be granted by the Committee to any Eligible Person.

 

(b)   Effect of Adoption.  The adoption of the Plan shall not be deemed to give any person a right to be granted any award under the Plan.

 

5.     SARs.

 

(a)   Grant of SARs; Number of SARs Issuable.  The Committee may grant SARs to such Eligible Persons subject to such terms and conditions as the Committee may determine in its sole discretion.  Subject to Section 13, the number of shares of Common Stock underlying SARs that may be issued pursuant to the Plan shall not exceed 168 shares of Common Stock plus the number of shares of Common Stock underlying SARs issued under the 2012 Tutor.com, Inc. 2012 Incentive Plan that are forfeited after the Effective Date through and including December 31, 2013.  As of the date hereof, there are 1,000 shares of Common Stock outstanding.  No SAR shall be granted with an exercise price or grant price that is less than the FMV on the grant date.

 

(b)   Award Agreements.  Each award of SARs granted pursuant to the Plan shall be evidenced by an Award Agreement, executed by IAC, the Company and the Participant, which shall specify the number of SARs awarded to the Eligible Person and shall incorporate such terms as the Committee shall deem necessary or desirable, including with respect to the vesting and exercise prices or grant prices of the SARs.

 

(c)   Vesting.

 

(i)            Continuation of Employment.  Subject to the terms and conditions of this Plan and any Award Agreement, each SAR shall vest and no longer be subject to forfeiture (other than as provided in Section 5(c)(iii)) as provided in the applicable Award Agreement; provided that the vesting of SARs shall be contingent on continued employment by a Participant with the Company or its subsidiaries through the applicable vesting date.  Any unvested SARs shall be immediately forfeited by a Participant without consideration and cancelled upon a Termination of Employment of such Participant, except as provided in Section 5(c)(ii) below.  For purposes of the Plan, employment with the Company shall include employment with any direct or indirect subsidiary of the Company.

 

(ii)           Change in Control.  Upon a Participant’s Termination of Employment, during the two-year period following a Change in Control, (A) by the Company other than for Cause or Disability, or (B) by the Participant for Good Reason, any SARs outstanding as of such

 

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Termination of Employment which were outstanding as of the date of such Change in Control shall vest.

 

(iii)          Termination of Employment for Cause.  Notwithstanding anything herein to the contrary, if a Participant incurs a Termination of Employment for Cause, a Participant resigns in anticipation of being terminated by the Company for Cause or following any termination of a Participant’s employment with the Company for any reason, the Company becomes aware that during the two (2) years prior to such Termination of Employment with the Company there was an event or circumstance that would have been grounds for termination for Cause, and the basis of any such termination (x) causes, caused or is reasonably likely to cause significant business or reputational harm to the Company or any of its Affiliates (as determined in the good faith discretion of the Board) or (y) involves or involved fraudulent misconduct that relates to or harms the Company or any of its Affiliates (the circumstances of either (x) or (y), the “Underlying Event”), then (A) all SARs, whether or not vested, held by such Participant shall be immediately forfeited by the Participant without consideration and cancelled and (B) if any portion of the Participant’s SARs were settled after the Underlying Event, the Company shall be entitled to recover from the Participant at any time within two (2) years after such settlement, and the Participant shall pay over to the Company, any amounts realized as a result of the settlement.  This remedy shall be without prejudice to, or waiver of, any other remedies the Company or its subsidiaries or Affiliates may have in such event.

 

(d)   Exercise and Settlement (Private Company).  This paragraph (d) shall apply solely during such time as shares of Common Stock are not traded on a national securities exchange.  Subject to the terms and conditions of this Plan and any Award Agreement with a Participant, all vested SARs shall be exercisable and settled (as applicable) as follows:

 

(i)            General.  Commencing in 2016 and as long as there are vested and exercisable SARs outstanding, IAC shall deliver to each Participant, no later than March 31st, its written determination of the FMV (the “Annual FMV Notice”) as of the date of delivery of such written determination.  The vested SARs shall be exercisable by a Participant, in whole or in part, once each year during the 30-day period following each delivery of the Annual FMV Notice (each, an “Exercise Window”).  The determination by Participant of whether to exercise any or all vested SARs during a particular Exercise Window shall be made by delivery of a written notice of exercise to IAC and the Company (the “Exercise Notice”) by 5:00 p.m., New York time, no later than the 30th day following the date of delivery of the applicable Annual FMV Notice, which Exercise Notice shall indicate the number of vested SARs to be exercised by Participant.  If Participant elects to exercise any or all vested SARs, the Settlement Amount shall be paid as provided in Section 5(d)(iv).  In no event shall a Participant’s SARs be validly exercised unless such Participant has substantially complied with any restrictive covenants to which such Participant is subject.

 

(ii)           Notwithstanding the foregoing, if during any Exercise Window, IAC determines in its sole discretion that the FMV determination contained in the applicable Annual FMV Notice is no longer accurate or appropriate (including by virtue of new information that became available following delivery of the Annual FMV Notice that materially impacts the Fair Market Value), then it shall promptly notify Executive and provide an updated Annual FMV Notice during the Exercise Window; provided, if the Exercise Window is otherwise scheduled to

 

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expire within 10 days of delivery of the updated Annual FMV Notice, it shall be extended to the 10th tenth day following delivery of the Annual FMV Notice.   In no event shall IAC be permitted to modify its determination of Fair Market Value for any SARs which have been exercised but not yet settled pursuant to Section 5(d)(iv).

 

(iii)          Exercise upon Termination.  In the event of a Termination of Employment of a Participant (other than a Termination of Employment for Cause in which case Participant immediately shall forfeit all SARs), that portion of the SAR held by such Participant, if any, which is vested at the time of such Termination of Employment (including any portion vested pursuant to Section 5(c)(ii) above) shall be exercised, at IAC’s election, (i) on the date that IAC delivers its written determination of the FMV as of the date of delivery (which such delivery shall occur not later than 60 days following such Termination of Employment) (the “Termination FMV”) or (ii) during the next Exercise Window immediately following the date of such Termination of Employment.

 

(iv)          Settlement.  Within five (5) business days following the receipt of the Exercise Notice or the delivery of notice of the Termination, as applicable, in full settlement of the number of shares with respect to which the SARs are exercised, each Participant who has exercised SARs shall be entitled to receive payment in an amount (the “Settlement Amount”) equal to the excess, if any, of the FMV set forth in the most recently delivered Annual FMV Notice or the Termination FMV (as applicable) over the Exercise Price (as defined in the applicable Award Agreement) or grant price, as applicable, multiplied by the number of SARs being exercised.  Payment of the Settlement Amount shall be made in a number of freely transferable shares of common stock, par value $0.001, of IAC (“IAC Common Stock”) with a value (based on the price as of the close of business on the trading day immediately prior to the date of settlement) equal to the Settlement Amount; provided that if there is a successor to IAC as the ultimate parent of the Company, and the common stock of the successor is publicly traded, the SARs shall be settled using common stock of the successor; provided further that any fractional shares of IAC Common Stock (or successor common stock) will be settled in cash.  As long as shares of Common Stock are not traded on a national securities exchange, no Participant shall be entitled to receive any shares of Common Stock of the Company upon exercise of a SAR.

 

(e)   Exercise and Settlement (Public Company).  This paragraph (e) shall apply during such time as shares of Common Stock are traded on a national securities exchange.

 

(i)            FMV for purposes hereof shall equal the closing price of a share of Common Stock on such exchange on the relevant date of measurement (or, if not traded on such measurement date, the next preceding date on which shares of Common Stock were traded).

 

(ii)           A SAR shall be exercisable in accordance with customary terms and conditions established by the Committee.  Alternatively, the Company may convert SARs into stock options to acquire shares of Common Stock, and references in this Plan to SARs shall be deemed references to stock options.

 

(iii)          In the event of a Termination of Employment of a Participant (other than a Termination of Employment for Cause in which case Participant immediately shall forfeit all

 

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SARs), that portion of the SAR held by such Participant, if any, which is vested at the time of such Termination of Employment (including any portion vested pursuant to Section 5(c)(ii) above) shall remain exercisable for 90 days following such Termination of Employment and thereafter shall be forfeited.

 

6.     Withholding of Taxes.

 

(a)           To the extent IAC or the Company determines in its good faith discretion that, prior to exercise, a Participant is required to pay any federal, state or local taxes (or other required withholdings) by reason of any SARs granted hereunder being treated as wages or being included in such Participant’s gross income, the Company shall be permitted to (i) require the Participant, promptly upon request by the Company, to pay to IAC or the Company any such amounts as may be required by law to be withheld by IAC or the Company or (ii) cause the Company to deduct any such amounts from any payment otherwise due from the Company to the Participant (including wage and bonus payments).  IAC’s or the Company’s determination of the fair market value of the SARs granted hereunder for such purposes, and its calculation of the amount of taxes to be withheld, shall be binding on the Participant.

 

(b)           To the extent IAC or the Company determines in its good faith discretion that upon exercise a Participant is required to pay any federal, state or local taxes (or other required withholdings) by reason of the settlement of any SARs granted hereunder being treated as wages or being included in such Participant’s gross income, the amounts payable to Participants under the Plan shall be reduced by the amount which IAC or any of its subsidiaries or Affiliates is required to withhold with respect to such payments under the then applicable provisions of federal, state or local income tax laws.  Any such withheld amounts shall be treated for purposes of the Plan and any Award Agreement as having been paid to the Participant.

 

7.     No Right to Continued Employment.  The grant of SARs to a Participant pursuant to the Plan shall not confer upon the Participant any right to continue in the employ of the Company or any of its Affiliates or interfere in any way with the right of the Company or any such Affiliates to terminate the Participant’s employment at any time.

 

8.     No Rights as a Stockholder or Member.  A Participant shall have no distribution, voting, or any other rights as a stockholder or member of the Company or any of its subsidiaries or Affiliates as a result of participation in the Plan or with respect to any SARs or shares of Common Stock underlying such SARs.

 

9.     Unfunded Plan.  The Plan is unfunded.  Neither IAC nor any of its subsidiaries (including the Company) or Affiliates shall segregate any assets in connection with or as a result of the Plan.  The rights of a Participant to benefits under this Plan shall be solely those of a general, unsecured creditor of IAC and its subsidiaries (including the Company).

 

10.  Amendment; Termination.  The Board or the Committee may, from time to time, amend, modify, change, suspend, or terminate, in whole or in part, any or all provisions of the Plan.  No amendment, modification, change, suspension, or termination may materially and adversely affect any right of any Participant with respect to previously granted SARs, without his consent; provided, that Participants shall be deemed to consent to an amendment, change, suspension, or

 

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termination if approval is provided in writing by Participants holding a majority of the SARs granted hereunder outstanding and not forfeited at the time of such amendment.

 

11.  Nontransferability.  No right or interest to or in any SAR, payment or benefit to a Participant shall be assignable by such Participant except by will or the laws of descent and distribution.  No right, benefit or interest of a Participant hereunder shall be subject to anticipation, alienation, sale, assignment, encumbrance, charge, pledge, hypothecation or set off in respect of any claim, debt or obligation, or to execution, attachment, levy or similar process, or assignment by operation of law.  Any attempt, voluntarily or involuntarily, to effect any action specified in the immediately preceding sentences shall, to the fullest extent permitted by law, be null, void and of no effect; provided, however, that this provision shall not preclude a Participant from designating one or more beneficiaries to receive any amount that may be payable to such Participant under the Plan after his or her death and shall not preclude the legal representatives of a Participant’s estate from assigning any right hereunder to the person or persons entitled thereto under his or her will, or, in the case of intestacy, to the person or persons entitled thereto under the laws of intestacy applicable to his or her estate.

 

12.  Notices.  All notices and other communications under this Agreement shall be in writing and shall be given by first-class mail, certified or registered with return receipt requested or hand delivery acknowledged in writing by the recipient personally, and shall be deemed to have been duly given three days after mailing or immediately upon duly acknowledged hand delivery to the respective persons named below:

 

	
If to IAC:
    	
IAC/InterActiveCorp
    
	
 
    	
555 West 18th Street
    
	
 
    	
New York, New York 10011
    
	
 
    	
Attn: General Counsel
    
	
 
    	
Fax: (212) 632-9551
    
	
 
    	
 
    
	
If to the Company:
    	
Tutor.com, Inc.
    
	
 
    	
555 West 18th Street
    
	
 
    	
New York, NY 10011
    
	
 
    	
Attention: Board of Directors
    

 

If to a Participant, to the Participant’s address as set forth in the applicable Award Agreement.

 

13.  No Limitations on Corporate Actions.  This Plan and the SARs granted hereunder shall have no effect on the Company’s capital structure, and shall not affect the right of the Company, IAC or any of their respective subsidiaries or Affiliates to reclassify, recapitalize, issue equity or otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup or otherwise reorganize. The Board shall equitably and proportionately make adjustments to the Plan, the awards made hereunder, and the maximum number of SARs available for grant under the Plan to reflect any changes that the Board may deem appropriate as a result of any distribution, stock split, reverse stock split, combination, recapitalization, reclassification, merger, consolidation or similar transaction affecting the Common Stock.  Upon the occurrence of any such events, the Board may make appropriate

 

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adjustments, taking into account a fair market valuation of the Company, as determined in good faith by either the IAC Board of Directors or an IAC senior executive officer (with notice to the applicable Participants), and treating each SAR as one share of Common Stock for which payment equal to the exercise price remains due and owing.  Any good faith determination by the Board as to whether an adjustment is required in the circumstances pursuant to this Section 13 and the extent and nature of any such adjustments shall be conclusive and binding on all Participants.  In addition, IAC will ensure that in connection with a Change in Control, the acquiring entity assumes all obligations of IAC hereunder.  Any adjustments pursuant to this Section 13 shall be made in accordance with Section 409A of the Code.

 

14.  Successors.  The rights and obligations under the Plan and any Award Agreements shall inure to the benefit of, and shall be binding upon the Company, its successors and assigns, and the Participants and their respective beneficiaries and legal representatives.

 

15.  Entire Agreement; Headings; Severability.  This Plan and any Award Agreement contain the entire agreement and understanding among IAC, the Company and the Participants with respect to the subject matter hereof and supersede all prior agreements, understandings, arrangements and communications, whether oral or written, with respect to the subject matter hereof.  Headings appearing in this Agreement are for convenience only and shall not be deemed to explain, limit or amplify the provisions hereof.  The invalidity or unenforceability of any particular provision of this Plan or any Award Agreement shall not affect the other provisions hereof or thereof, and this Plan and/or such Award Agreement shall be construed in all respects as if the invalid or unenforceable provision were omitted.

 

16.  Effective Date.  The Plan shall be effective as of April 1, 2013 (the “Effective Date”).

 

17.  Governing Law.  This agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflicts of law.

 

18.  Miscellaneous.  For the avoidance of doubt, (a) in the event a Participant exercises a SAR (whether during an Exercise Window or following a Termination of Employment), the date of determination of FMV, the exercise date and the settlement date shall occur in the same calendar year, and (b) the measurement date for purposes of establishing the exercise price of a SAR will be the Grant Date and the measurement date for purposes of determining the FMV on the date of exercise of a SAR will be the date of exercise of the SAR.

 

19.  Section 409A of the Code.  It is the intention of the Company that no SAR (or other award) shall be “deferred compensation” subject to Section 409A of the Code, unless and to the extent that the Committee specifically determines otherwise as provided in this Section 19, and the Plan and the terms and conditions of all SARs (or other awards) shall be interpreted accordingly.  The terms and conditions governing any SARs (or other awards) that the Committee 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 in Control, shall be set forth in the applicable Award Agreement, and shall comply in all respects with Section 409A of the Code.  Notwithstanding any other provision of the Plan to the contrary, with respect to any award that constitutes a “nonqualified deferred compensation plan” subject to Section 409A of the Code, if the Participant is a “specified

 

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employee” within the meaning of Section 409A of the Code, any payments (whether in cash, shares or other property) to be made with respect to the award upon the Participant’s Termination of Employment shall be delayed until the earlier of (A) the first day of the seventh month following the Participant’s Termination of Employment and (B) the Participant’s death. Each payment under any award shall be treated as a separate payment for purposes of Section 409A of the Code.  In no event may a Participant, directly or indirectly, designate the calendar year of any payment to be made under any award that constitutes nonqualified deferred compensation.

 

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TUTOR.COM, INC. 2013 INCENTIVE PLAN

FORM OF SARS AWARD AGREEMENT

 

Tutor.com, Inc. (the “Company”), pursuant to the Tutor.com, Inc. 2013 Incentive Plan (the “Plan”), hereby grants to the Participant listed below (“Participant”), the SARs set forth below, subject to the terms and conditions of the Plan and this Award Agreement. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Award Agreement.

 

I.                                        NOTICE OF STOCK APPRECIATION RIGHT GRANT

 

	
Participant:
    	
 
    	
[                       ]
    
	
 
    	
 
    	
 
    
	
Date of Grant:
    	
 
    	
[                       ]
    
	
 
    	
 
    	
 
    
	
SAR
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Exercise Price per SAR:
    	
 
    	
$XXX
    
	
 
    	
 
    	
 
    
	
Total Number of SARs Granted:
    	
 
    	
[                       ]
    

 

II.                                   AWARD AGREEMENT

 

1.             Grant of SARs.  The Company hereby grants to you the SARs set forth in Section I above (the “SARs”), at the exercise price per SAR set forth in Section I above (the “Exercise Price”).  Notwithstanding anything to the contrary anywhere else in this Award Agreement, this grant of SARs is subject to the terms, definitions and provisions of the Plan, which are incorporated herein by reference.

 

2.             Vesting.  Subject to Section 5 of the Plan, 50% of your SARs shall vest on the second anniversary of the Grant Date, 25% of your SARS shall vest on the third anniversary of the Grant Date and the remaining 25% of your SARs shall vest on the fourth anniversary of the Grant Date, subject, in each case, to your continued employment through the applicable vesting date.  If you suffer a Termination of Employment for any reason, any unvested SARs shall be immediately forfeited by you without consideration and canceled, except as specifically provided in the Plan.

 

3.             Exercise.  If the SARs are to be exercised and settled during such time as the shares of Common Stock are not traded on a national securities exchange, the vested SARs shall be exercisable during the Exercise Windows in [2016, 2017 and 2018].  [Notwithstanding the foregoing, if the Company is not cash flow positive during fiscal 2015, there shall be no exercise window at the beginning of 2016, unless the reason it is not cash flow positive is because of marketing expenditures being done on a lifetime profitable basis, as reasonably determined by IAC.]

 

4.             Term.  Subject to the terms and conditions of the Plan and this Award Agreement, all SARs held by you, whether vested or unvested, shall expire on [December 31, 2019].

 

5.             Limitations on Transfer of SARs.  Except as set forth in Section 11 of the Plan, your SARs are not transferable.

 

12

 

6.             SAR Not an Employment Contract.  Your SARs are not an employment or service contract, and nothing in your SARs shall be deemed to create in any way whatsoever any obligation on your part to continue in the service of the Company or any Affiliate in any capacity.

 

7.             Notices.  Any notices provided for in this Award Agreement or the Plan shall be given in writing in accordance with the Plan.

 

8.             SARs Subject to Plan Document.  The provisions of the Plan are hereby made a part of this Award Agreement, which is further subject to all interpretations, amendments, rules and regulations that may from time to time be promulgated and adopted pursuant to the Plan, to the extent not inconsistent with the terms of this Award Agreement.

 

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which shall constitute one document.

 

	
 
    	
TUTOR.COM, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IAC/INTERACTIVECORP
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Participant acknowledges and agrees that the vesting of the SARs pursuant to this Award Agreement is earned only by continuing service with the Company (not through the act of being hired, being granted or acquiring shares hereunder).  Participant further acknowledges and agrees that nothing in this Award Agreement or in the Plan shall confer upon the Participant any right to continue in the service of the Company, nor shall it interfere in any way with the Company’s right to terminate Participant’s service at any time, with or without cause.

 

Participant acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof.  Participant hereby accepts these SARs subject to all of the terms and provisions hereof.  Participant further agrees to notify the Company upon any change in the residence address indicated below.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PARTICIPANT
    
	
 
    	
 
    	
Residence   Address:
    

 

13Exhibit 10.32

 

FOURTH AMENDMENT TO CREDIT AGREEMENT

 

This FOURTH AMENDMENT TO CREDIT AGREEMENT
(this “Amendment”) is made effective as of October 24, 2015, but executed on November 10, 2015, by and among
WILHELMINA INTERNATIONAL, INC., a Delaware corporation (“Borrower”), AMEGY BANK NATIONAL ASSOCIATION,
a national banking association (“Bank”), and each of the Guarantors set forth on the signature pages hereof
(each a “Guarantor”, and collectively the “Guarantors”).

 

RECITALS

 

A.                
Borrower and Bank entered into that certain Credit Agreement dated as of April 20, 2011, as amended by that certain First
Amendment to Credit Agreement dated as of January 1, 2012, that certain Second Amendment to Credit Agreement dated as of October
24, 2012, and that certain Third Amendment to Credit Agreement dated as of July 31, 2014 (the “Credit Agreement”).

 

B.                
In connection with the Credit Agreement, Borrower executed and delivered to Bank that certain Line of Credit Promissory
Note dated April 20, 2011, in the stated principal amount of $500,000.00, as amended and restated by that certain Amended and Restated
Line of Credit Promissory Note dated as of January 1, 2012, in the stated principal amount of $1,500,000.00, and as amended
and restated by that certain Second Amended and Restated Line of Credit Promissory Note dated as of October 24, 2012, in the stated
principal amount of $5,000,000.00 (the “Existing Line of Credit Note”).

 

C.                
In connection with the Credit Agreement, (i) Guarantors (other than Wilhelmina Creative, LLC, Artists at Wilhelmina LLC,
and Wilhelmina Licensing (Texas) LLC) executed and delivered to Bank that certain Unlimited Guaranty dated April 20, 2011,
and (ii) Wilhelmina Creative, LLC, at the time of its formation as an additional subsidiary of Borrower, executed and delivered
to Bank pursuant to Section 4.14 of the Credit Agreement that certain Unlimited Guaranty dated effective as of May 25, 2012
(collectively, the “Original Guaranty Agreements”).

 

D.                
Borrower has requested Bank to (i) extend additional credit to Borrower in the form of a new term loan, (ii) extend the
maturity date and reduce the maximum outstanding principal balance of the Line of Credit, (iii) amend certain financial covenants
of Borrower set forth in the Credit Agreement, (iv) amend the Borrowing Base set forth in the Credit Agreement in certain respects,
and (v) amend the Credit Agreement in certain other respects, all as more fully set forth herein, and Bank has agreed to the same
upon the terms and conditions hereinafter set forth.

 

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

 

ARTICLE
I

Definitions

 

Section 1.1.          
Definitions. Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have
the same meaning as assigned to them in the Credit Agreement, as amended hereby.

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT- Page 1

     

    

ARTICLE
II

Amendments

 

Section 2.1.          
Amendment to Section 1.1 of the Credit Agreement. Sections 1.1 of the Credit Agreement is hereby amended
and restated in its entirety to hereafter read as follows.

 

“(a)Line of Credit.
Subject to the terms and conditions of this Agreement, Bank hereby agrees to make advances to Borrower from time to time up to
and including October 24, 2016 not to exceed at any time the aggregate principal amount of Four Million and No/100 Dollars ($4,000,000.00)
minus all outstanding Letter of Credit Liabilities, as hereinafter defined (“Line of Credit”), the proceeds
of which shall be used (i) to pay fees and expenses incurred in connection with this Agreement and the transaction contemplated
hereby, and (ii) for working capital and other general business purposes of Borrower. Borrower’s obligation to repay advances
under the Line of Credit are evidenced by a Third Amended and Restated Line of Credit Promissory Note dated as of October 24, 2015,
in the stated principal amount of $4,000,000.00 (as such promissory note may be amended, restated, refinanced or otherwise modified
from time to time, the “Line of Credit Note”), all terms of which are incorporated herein by this reference.

 

(b)Limitation on Borrowings.
Outstanding borrowings under the Line of Credit shall not at any time exceed the then-current borrowing base (the “Borrowing
Base”) equal to the following amount as determined in good faith by Bank based upon a Borrowing Base Certificate (herein
so called) in the form of Exhibit A attached hereto and incorporated herein by reference or in such other form as may be
acceptable to Bank and such other information as Bank may consider relevant to such determination: an amount equal to eighty percent
(80%) of the aggregate value of Borrower’s Eligible Accounts Receivable (which amount, as of any date of determination, is
hereinafter called the “Borrowing Base Amount”), minus all outstanding Letter of Credit Liabilities,
minus all outstanding indebtedness under the Term Loan, as hereinafter defined. All of the foregoing shall be determined
by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information
as Bank may from time to time reasonably require. Borrower acknowledges that the Borrowing Base was established by Bank with the
understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately
preceding three (3) months at all times shall be less than five percent (5%) of Borrower’s aggregate gross sales for said
period. If such dilution of Borrower’s accounts for the immediately preceding three (3) months at any time exceeds five percent
(5%) of Borrower’s aggregate gross sales for said period, or if there at any time exists any other matters, events, conditions
or contingencies which Bank reasonably believes may affect payment of any portion of any Borrower’s accounts, Bank, in its
sole discretion, may reduce the foregoing advance rate against Eligible Accounts Receivable to a percentage appropriate to reflect
such additional dilution and/or establish additional reserves against Borrowers’ Eligible Accounts Receivable.

 

As used herein, “Eligible Accounts
Receivable” shall mean and consist solely of trade accounts created in the ordinary course of Borrower’s business,
upon which Borrower’s right to receive payment is absolute and not contingent upon the fulfillment of any condition whatsoever,
and in which Bank has a perfected security interest of first priority, and shall not include:

 

(i)                
any account which is unpaid more than one hundred twenty (120) days past the initial invoice date therefor;

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT- Page 2

     

    

(ii)              
that portion of any account for which there exists any right of setoff, defense or discount (except regular discounts allowed
in the ordinary course of business to promote prompt payment) or for which any defense or counterclaim has been asserted;

 

(iii)            
any account which represents an obligation of any state or municipal government or of the United States government or any
political subdivision thereof;

 

(iv)            
any account which represents an obligation of an account debtor located in a foreign country;

 

(v)              
any account which arises from the sale or lease to or performance of services for, or represents an obligation of, an employee,
affiliate, partner, member, parent or subsidiary of Borrower;

 

(vi)            
that portion of any account, which represents interim or progress billings or retention rights on the part of the account
debtor;

 

(vii)          
any account which represents an obligation of any account debtor when twenty percent (20%) or more of Borrower’s accounts
from such account debtor are not eligible pursuant to (i) above;

 

(viii)        
that portion of any account from an account debtor which represents the amount by which such Borrower’s total accounts
from said account debtor exceeds twenty percent (20%) of Borrower’s total accounts; or

 

(ix)            
any account deemed ineligible by Bank when Bank, in its sole discretion, deems the creditworthiness or financial condition
of the account debtor, or the industry in which the account debtor is engaged, to be unsatisfactory.

 

(c)               
Term Loan. Subject to the terms and conditions of this Agreement, in addition to the Line of Credit, Bank hereby
agrees to make advances to Borrower from time to time up to and including October 24, 2016 not to exceed at any time the aggregate
principal amount of Three Million and No/100 Dollars ($3,000,000.00) (the “Term Loan”), the proceeds of which
shall be used by Borrower to (i) pay for stock repurchases (including any associated costs) of its equity interests from June 30,
2015 through and until October 24, 2016, (ii) pay for stock repurchases (including any associated costs) of its equity interests,
and (iii) finance capital expenditures funded during the 2015 calendar year, in each case, as approved by Bank. Borrower’s
obligation to repay advances under the Term Loan are evidenced by a Promissory Note dated as of October 24, 2015, in the stated
principal amount of $3,000,000.00 (as such promissory note may be amended, restated, refinanced or otherwise modified from time
to time, the “Term Note”), all terms of which are incorporated herein by this reference.

 

(d)              
Borrowing and Repayment. With respect to the Line of Credit, Borrower may from time to time during the term of the
Line of Credit borrow, partially or wholly repay its outstanding borrowings, and reborrow under the Line of Credit, subject to
all of the limitations, terms and conditions contained herein or in the Line of Credit Note; provided however, that the total outstanding
borrowings under the Line of Credit shall not at any time exceed the maximum principal amount available thereunder, as set forth
above. With respect to the Term Loan, and notwithstanding anything herein or in any other Loan Document to the contrary, Borrower
shall not be entitled to any advances thereunder after October 24, 2016, and Borrower may not re-borrow any amounts repaid under
the Term Loan; provided, Borrower may partially or wholly repay its outstanding borrowings under the Term Loan, subject to all
of the limitations, terms and conditions contained herein or in the Term Note. If at any time the total outstanding borrowings
under the Line of Credit exceed the then current Borrowing Base, then Borrower shall immediately repay the amount of such excess.”

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT- Page 3

     

    

Section 2.2.          
Amendment to Section 1.2(a) of the Credit Agreement. Section 1.2(a) of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

 

“(a)Interest. The outstanding
principal balance of each credit subject hereto shall bear interest from the date such advance is made to the date such amount
is fully repaid by Borrower, at the rate of interest set forth in the Line of Credit Note or the Term Note, as applicable.”

 

Section 2.3.          
Deletion of Section 1.2(c) of the Credit Agreement. Subparagraph (c) of Section 1.2 of the Credit Agreement
is hereby deleted in its entirety and shall be of no further force or effect.

 

Section 2.4.          
Amendment to Section 1.3 of the Credit Agreement. Section 1.3 of the Credit Agreement is hereby amended
by deleting the reference to the term “the Line of Credit Note” and inserting the term “the Line of Credit Note,
the Term Note” in lieu thereof.

 

Section 2.5.          
Amendment to Section 1.5 of the Credit Agreement. Section 1.5 of the Credit Agreement is hereby amended
and restated in its entirety to read as follows:

 

“SECTION 1.5. LETTERS
OF CREDIT.

 

(a)               
Issuance. Subject to the terms and conditions of this Agreement, Bank agrees to issue one or more standby letters
of credit for the account of Borrower from time to time from the date hereof through the date that is five (5) business days prior
to October 24, 2016; provided, however, that the outstanding Letter of Credit Liabilities shall not at any time exceed the
least of: (a) Five Hundred Thousand and No/100 Dollars ($500,000.00); (b) an amount equal to $7,000,000.00 minus
the outstanding borrowings under the Line of Credit and the Term Loan, in the aggregate; or (c) an amount equal to the Borrowing
Base Amount minus the outstanding borrowings under the Line of Credit and the Term Loan, in the aggregate. Each Letter of
Credit shall have an expiration date not to exceed three hundred sixty-five (365) days, shall not have an expiration date beyond
October 24, 2016, shall be payable in Dollars, shall have a minimum face amount of Fifty Thousand and No/100 Dollars ($50,000.00),
must support a transaction that is entered into in the ordinary course of Borrower’s business, must be satisfactory in form
and substance to Bank, will be subject to the payment of such Letter of Credit fees as Bank may require, and shall be issued pursuant
to such documents and instruments executed by Borrower (including, without limitation, Bank’s form of Letter of Credit application
as then in effect) as Bank may require. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of
any obligations of, or is for the account of, a direct or indirect subsidiary of Borrower, Borrower shall be obligated to reimburse
Bank hereunder for any and all drawings under such Letter of Credit. Borrower hereby acknowledges that the issuance of Letters
of Credit for the account of any of its direct or indirect subsidiaries inures to the benefit of Borrower, and that Borrower’s
business derives substantial benefits from the businesses of such subsidiaries. For purposes of this Agreement, the term “Letter
of Credit Liabilities” shall mean, at any time, the aggregate face amount of all outstanding Letters of Credit, plus
any amounts drawn under any Letters of Credit for which Bank has not been fully reimbursed by Borrower (unless Bank, in its sole
discretion, has cleared the drawn amount, in which case the drawn amount would not constitute a Letter of Credit Liability). The
Letter of Credit Liabilities are part of Borrower’s indebtedness and obligations hereunder. For purposes of this Agreement,
the term “Letter of Credit” shall mean any letter of credit issued by Bank for the account of or at the direction
of Borrower pursuant to this section.

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT- Page 4

     

    

(b)              
Fees. Borrower agrees to pay to Bank, as a condition precedent to the issuance (including the extension) of each
Letter of Credit, an issuance fee payable on the date of issuance equal to the greater of (i) one percent (1%) per annum of
the face amount of such Letter of Credit, and (ii) $1,000 (including any extension).

 

(c)               
Reimbursement. Each payment by Bank pursuant to a drawing under a Letter of Credit is required to be reimbursed by
Borrower to Bank and payable immediately upon such drawing and, at the sole option of Bank, can be charged by Bank as a borrowing
under the Line of Credit Note and this Agreement by Borrower as of the day and time such payment is made by Bank and in the amount
of such payment.

 

(d)              
Additional Costs in Respect of Letters of Credit. If, after the date hereof, there shall occur the adoption of any
applicable law, rule, or regulation, or any change therein, or any change in the interpretation or administration thereof by any
governmental authority, central bank, or comparable agency charged with the interpretation or administration thereof, or compliance
by Bank with any request or directive (whether or not having the force of law) of any such authority, central bank, or comparable
agency there shall be imposed, modified, or deemed applicable any tax, reserve, special deposit, or similar requirement against
or with respect to or measured by reference to Letters of Credit issued or to be issued hereunder or Bank’s commitment to
issue Letters of Credit hereunder, and the result shall be to increase the cost to Bank of issuing or maintaining any Letter of
Credit or its commitment to issue Letters of Credit hereunder or reduce any amount receivable by Bank hereunder in respect of any
Letter of Credit (which increase in cost, or reduction in amount receivable, shall be the result of Bank’s reasonable allocation
of the aggregate of such increases or reductions resulting from such event), then, upon demand by Bank, Borrower agrees to pay
to Bank, from time to time as specified by Bank, such additional amounts as shall be sufficient to compensate Bank for such increased
costs or reductions in amount. A statement as to such increased costs or reductions in amount incurred by Bank, submitted by Bank
to Borrower, shall be conclusive as to the amount thereof; provided that the determination thereof is made on a reasonable
basis.”

 

Section 2.6.          
Amendment to Section 2,2 of Credit Agreement. Section 2.2 of the Credit Agreement is hereby amended
by deleting the reference to the term “the Line of Credit Note” and inserting the term “the Line of Credit Note,
the Term Note” in lieu thereof.

 

Section 2.7.          
Amendment to Section 4.3 of Credit Agreement.

 

(a)               
Section 4.3(a) and Section 4.3(b) of the Credit Agreement are hereby amended and restated in their entirety
to read as follows:

 

“(a)not later than 90 days
after and as of the end of each fiscal year of Borrower, (i) financial statements of the Loan Parties, to include a balance sheet
and statements of income, cash flow and shareholders’ equity, prepared on a consolidated basis in accordance with generally
accepted accounting principles by certified public accountants of recognized standing acceptable to Bank and audited on an unqualified
basis, and (ii) the Borrower’s 10-K filed with the United States Securities and Exchange Commission for such year;

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT- Page 5

     

    

(b)not later than 45 days after
and as of the end of each fiscal quarter of Borrower, (i) financial statements of the Loan Parties, to include a balance sheet
and statements of income, cash flow and shareholders’ equity, prepared on a consolidated basis in accordance with generally
accepted accounting principles (subject to normal year-end adjustments and the absence of footnotes), and (ii) the Borrower’s
10-Q filed with the United States Securities and Exchange Commission for such quarter;”

 

(b)              
Section 4.3(c) and Section 4.3(d) of the Credit Agreement are each hereby amended by deleting the reference
to the term “30” and inserting the term “45” in lieu thereof.

 

Section 2.8.          
Amendments to Section 4.9 of Credit Agreement.

 

(a)               
Section 4.9(a) of the Credit Agreement is hereby amended by deleting the reference to the term “$22,000,000.00”
and inserting the term “$20,000,000.00” in lieu thereof.

 

(b)              
Section 4.9(b) of the Credit Agreement is hereby amended by (i) deleting the reference to the term “1.5”
and inserting the term “1.25” in lieu thereof, and (ii) amending and restating the definitions of “EBITDA”
and “Fixed Charge Coverage Ratio” in their entirety to read as follows:

 

“‘EBITDA’ means,
with respect to the Loan Parties for any period (a) net income determined in accordance with generally accepted accounting principles
for such period (not inclusive of any non-cash income or losses with respect to non-controlling interests of Wilhelmina Kids &
Creative Management, LLC), plus (b) to the extent deducted in the calculation of net income, interest expense, income taxes, depreciation,
and amortization, less (c) extraordinary, non-recurring items of revenues which Bank elects to exclude from net income, in the
exercise of its sole discretion.”

 

“‘Fixed Charge Coverage
Ratio’ means, with respect to the Loan Parties and on the date of calculation, the ratio of (a) EBITDA plus (i)
operating lease payments, plus (ii) non-cash impairment charges, minus (iii) non-financed capital expenditures,
minus (iv) dividends and distributions, minus (v) cash taxes, minus (vi) non-financed amounts paid
by Borrower to purchase or acquire any of its equity interests to (b) the sum of (i) Debt Service plus (ii) operating
lease payments, in each case determined for the 12-month period then ending.”

 

Section 2.9.          
Amendment to Section 5.7 of the Credit Agreement. Section 5.7 of the Credit Agreement is hereby amended
by inserting the following sentence at the end of such Section to read as follows: “Notwithstanding the foregoing, Borrower
shall be permitted to repurchase its equity interests using proceeds of the Term Loan in the manner set forth in Section 2.1(c)
hereof.”

 

Section 2.10.      
Amendment to Section 7.2 of the Credit Agreement. Section 7.2 of the Credit Agreement is amended and
restated in its entirety to hereafter read as follows:

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT- Page 6

     

    

“Section 7.2.        NOTICES.
All notices, requests and demands which any party is required or may desire to give to any other party under any provision of
this Agreement must be in writing delivered to each party at the following address:

 

Loan Parties: Wilhelmina International, Inc.

200 Crescent Court

Suite 1400

Dallas, Texas 75201

Attention: Mark Schwarz

 

with a copy to:

300 Park Avenue South

New York, NY 10010

Attention: David S. Chaiken

 

 

Bank:              Amegy Bank National Association

2501 N. Harwood

Suite 1600

Dallas, Texas 75201

Attention: Ms. Tamara Ray

 

or to such other address as any party may designate by written
notice to all other parties. Each such notice, request and demand shall be deemed given or made as follows: (a) if sent by hand
delivery, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or three (3) days after deposit in the U.S.
mail, first class and postage prepaid; and (c) if sent by telecopy, upon receipt.”

 

Section 2.11.      
Replacement of Borrowing Base Certificate. The Borrowing Base Certificate attached as Exhibit A to the Credit
Agreement is hereby amended and restated in its entirety with the form of Borrowing Base Certificate attached hereto as Exhibit
A.

 

ARTICLE
III

Conditions Precedent

 

Section 3.1.          
Conditions. The effectiveness of this Amendment is subject to the satisfaction of the following conditions
precedent, unless specifically waived by the Bank:

 

(a)               
The following instruments shall have been duly and validly executed and delivered to Bank by the parties thereto, all in
form, scope and content satisfactory to the Bank:

 

(i)                
this Amendment executed by Borrower and Guarantors;

 

(ii)              
Third Amended and Restated Line of Credit Promissory Note of even date herewith, executed by Borrower made payable to Bank,
in the stated principal amount of $4,000,000.00 (the “Line of Credit Note”), which Line of Credit Note shall
amend and restate the Existing Line of Credit Note in its entirety;

 

(iii)            
Promissory Note of even date herewith, executed by Borrower made payable to Bank, in the stated principal amount of $3,000,000.00
(the “Term Note”), which Term Note evidences the Term Loan;

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT- Page 7

     

    

(iv)            
Third Amendment to Pledge and Security Agreement of even date herewith, execute by Borrower and each Guarantor (except Wilhelmina
Licensing (Texas) LLC and Artists at Wilhelmina LLC);

 

(v)              
Unlimited Guaranty executed by each of Wilhelmina Licensing (Texas) LLC and Artists at Wilhelmina LLC (collectively with
the Original Guaranty Agreements, the “Guaranty Agreements”), executed and delivered to Bank pursuant to Section
4.14 of the Credit Agreement;

 

(vi)            
Pledge and Security Agreement executed by each of Wilhelmina Licensing (Texas) LLC and Artists at Wilhelmina LLC, executed
and delivered to Bank pursuant to Section 4.14 of the Credit Agreement; and

 

(vii)          
Resolutions of the Board of Directors (or other governing body) of Borrower and each Guarantor certified by the Secretary
or an Assistant Secretary (or other custodian of records of each such entity) which authorize the execution, delivery, and performance
by Borrower and each Guarantor of this Amendment and the other Loan Documents to be executed in connection herewith.

 

(b)              
The representations and warranties contained herein, in the Credit Agreement, as amended hereby, and in each other Loan
Document shall be true and correct as of the date hereof, as if made on the date hereof, except to the extent such representation
and warranties relate to an earlier date.

 

(c)               
No Event of Default shall have occurred and be continuing and no Default shall exist, unless such Event of Default or Default
has been specifically waived in writing by Bank.

 

(d)              
All corporate proceedings taken in connection with the transactions contemplated by this Amendment and all documents, instruments
and other legal matters incident thereto, shall be satisfactory to Bank and its legal counsel.

 

(e)               
There shall have been no material adverse change in the condition (financial or otherwise) of Borrower or any Guarantor
since July 31, 2014.

 

ARTICLE
IV

Ratifications, Representations, Warranties

 

Section 4.1.          
Ratifications. The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent
terms and provisions set forth in the Credit Agreement and except as expressly modified and superseded by this Amendment, the terms
and provisions of the Credit Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force
and effect. Borrower and Guarantors agree that the Credit Agreement, as amended hereby, and the other Loan Documents shall continue
to be legal, valid, binding obligations of Borrower and Guarantors, enforceable against Borrower and Guarantors in accordance with
their respective terms.

 

Section 4.2.          
Renewal of Security Interests. Each of Borrower and Guarantors hereby renews, regrants and affirms the liens
and security interests created and granted in the Credit Agreement and in all other Loan Documents (including, without limitation,
those certain Pledge and Security Agreements to which it is a party, as amended), to secure the prompt payment of all indebtedness
and obligations of Borrower and each Guarantor under the Loan Documents as amended and increased by the terms hereof, including
without limitation any Letter of Credit Liabilities and the Term Loan. Each of Borrower and Guarantors agree that this Amendment
shall in no manner affect or impair the liens and security interests securing the indebtedness of Borrowers and Guarantors to Bank
and that such liens and security interests shall not in any manner be waived, the purposes of this Amendment being to modify the
Credit Agreement as herein provided, and to carry forward all liens and security interests securing same, which are acknowledged
by Borrower and Guarantors to be valid and subsisting.

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT- Page 8

     

    

Section 4.3.          
Representations and Warranties. Borrower and Guarantors hereby represent and warrant to Bank as follows:

 

(a)               
The execution, delivery and performance of this Amendment and any and all other Loan Documents executed and delivered in
connection herewith have been authorized by all requisite corporate action on the part of Borrower and each Guarantor and do not
and will not conflict with or violate any provision of any applicable laws, rules, regulations or decrees, the organizational documents
of Borrower or any Guarantor, or any agreement, document, judgment, license, order or permit applicable to or binding upon Borrower
or any Guarantor or their respective assets. No consent, approval, authorization or order of, and no notice to or filing with,
any court or governmental authority or third person is required in connection with the execution, delivery or performance of this
Amendment or to consummate the transactions contemplated hereby;

 

(b)              
The representations and warranties contained in the Credit Agreement, as amended hereby, and the other Loan Documents are
true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof, except to the
extent such representations and warranties relate to an earlier date;

 

(c)               
No Event of Default under the Credit Agreement or any Loan Document has occurred and is continuing;

 

(d)              
Borrower and Guarantors are in full compliance with all covenants and agreements contained in the Credit Agreement, as amended
hereby, and the other Loan Documents to which each is a party;

 

(e)               
Neither Borrower nor any Guarantor has amended any of its organizational documents since the date of the execution of the
Credit Agreement; and

 

(f)               
As of the date of this Amendment, the unpaid principal amount of the Line of Credit Note is $0.00, which amount is unconditionally
owed by Borrower to Bank without offset, defense or counterclaim of any kind or nature whatsoever.

 

Section 4.4.          
Guarantors’ Consent and Ratification. Each Guarantor hereby consents and agrees to the terms of this
Amendment, and agrees that the Guaranty Agreement to which it is a party shall remain in full force and effect and shall continue
to be the legal, valid and binding obligation of such Guarantor, enforceable against such Guarantor in accordance with its terms.
Furthermore, each Guarantor hereby agrees and acknowledge that (a) the Guaranty Agreements are Loan Document, (b) the Guaranty
Agreements are not subject to any claims, defenses or offsets, (c) nothing contained in this Amendment or any other Loan Document
shall adversely affect any right or remedy of Bank under the Guaranty Agreements, (d) the execution and delivery of this Amendment
shall in no way reduce, impair or discharge any obligations of any Guarantor pursuant to the Guaranty Agreements and shall not
constitute a waiver by Bank against any Guarantor, (e) by virtue hereof and by virtue of the Guaranty Agreements, each Guarantor
hereby guarantees to Bank the prompt and full payment and full and faithful performance by the Borrower of the entirety of the
Guaranteed Indebtedness (as defined in the Guaranty Agreements) including, without limitation, all amounts owing under the Line
of Credit Note, the Term Note, and all Letter of Credit Liabilities, (f) no Guarantor’s consent is required to the effectiveness
of this Amendment, and (g) no consent by any Guarantor is required for the effectiveness of any future amendment, modification,
forbearance or other action with respect to the Credit Agreement or any present or future Loan Document.

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT- Page 9

     

    

ARTICLE
V

Miscellaneous

 

Section 5.1.          
Survival of Representations and Warranties. All representations and warranties made in the Credit Agreement
or any other Loan Document, including without limitation, any Loan Document furnished in connection with this Amendment, shall
survive the execution and delivery of this Amendment and the other Loan Documents, and no investigation by Bank or any closing
shall affect such representations and warranties or the right of Bank to rely thereon.

 

Section 5.2.          
Reference to Credit Agreement. Each of the Loan Documents, including the Credit Agreement and any and all
other agreements, documents or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to
the terms of the Credit Agreement, as amended hereby, are hereby amended so that any reference in such Loan Documents to the Credit
Agreement shall mean a reference to the Credit Agreement, as amended hereby.

 

Section 5.3.          
Expenses of Bank. As provided in the Credit Agreement, Borrower agrees to pay on demand all reasonable costs
and expenses incurred by Bank in connection with the preparation, negotiation and execution of this Amendment and the other Loan
Documents executed pursuant hereto and any and all amendments, modifications, and supplements hereto, including, without limitation,
the reasonable costs and fees of Bank’s legal counsel, and all reasonable costs and expenses incurred by Bank in connection
with the enforcement or preservation of any rights under the Credit Agreement, as amended hereby, and any other Loan Document,
including, without limitation, the reasonable costs and fees of Bank’s legal counsel.

 

Section 5.4.          
RELEASE. BORROWER AND EACH GUARANTOR HEREBY VOLUNTARILY AND KNOWINGLY RELEASE AND FOREVER DISCHARGE BANK,
ITS DIRECTORS, OFFICERS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION,
DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN. ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED,
FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS
EXECUTED, WHICH BORROWER AND ANY GUARANTOR MAY NOW OR HEREAFTER HAVE AGAINST BANK, ITS DIRECTORS, OFFICERS, AGENTS, EMPLOYEES,
SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS,
OR OTHERWISE, AND ARISING FROM ANY LOAN, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING
OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN DOCUMENTS,
AND NEGOTIATIONS FOR AND EXECUTION OF THE LOAN DOCUMENTS.

 

Section 5.5.          
Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable
shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held
to be invalid or unenforceable.

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT- Page 10

     

    

Section 5.6.          
GOVERNING LAW. THIS AMENDMENT SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN AND SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

 

Section 5.7.          
Successors and Assigns. This Amendment is binding upon and shall inure to the benefit of the parties hereto
and their respective successors, assigns, heirs, executors, and legal representatives, except that none of the parties hereto other
than Bank may assign or transfer any of its rights or obligations hereunder without the prior written consent of Bank.

 

Section 5.8.          
WAIVER OF TRIAL BY JURY. THE PARTIES HERETO AGREE THAT NO PARTY SHALL REQUEST A TRIAL BY JURY IN THE EVENT
OF LITIGATION BETWEEN THEM CONCERNING THE LOAN DOCUMENTS OR ANY CLAIMS OR TRANSACTIONS IN CONNECTION THEREWITH, IN EITHER A STATE
OR FEDERAL COURT, THE RIGHT TO TRIAL BY JURY BEING EXPRESSLY WAIVED BY BANK, BORROWER AND GUARANTORS. EACH OF BANK, BORROWER AND
GUARANTORS ACKNOWLEDGES THAT SUCH WAIVER IS MADE WITH FULL KNOWLEDGE AND UNDERSTANDING OF THE NATURE OF THE RIGHTS AND BENEFITS
WAIVED HEREBY, AND WITH THE BENEFIT OF ADVICE OF COUNSEL OF ITS CHOOSING.

 

Section 5.9.          
Counterparts. This Amendment may be executed in one or more counterparts, each of which when so executed shall
be deemed to be an original, but all of which when taken together shall constitute one and the same instrument.

 

Section 5.10.      
Descriptive Headings. The captions in this Amendment are for convenience only and shall not define or limit
the provisions hereof.

 

Section 5.11.      
ENTIRE AGREEMENT. THIS AMENDMENT, THE CREDIT AGREEMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED AND DELIVERED
IN CONNECTION WITH AND PURSUANT TO THIS AMENDMENT AND THE CREDIT AGREEMENT REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES.

 

Section 5.12.      
Arbitration. All disputes, claims, and controversies arising from this Amendment shall be arbitrated in accordance
with Section 7.15 of the Credit Agreement.

 

[Remainder of Page Intentionally Left Blank]

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT- Page 11

     

    

EXECUTED as of the date first written above.

 

BORROWER:

 

WILHELMINA INTERNATIONAL, INC.,

a Delaware corporation

 

By: /s/ David S. Chaiken 

David S. Chaiken 

Chief Accounting Officer

 

BANK:

AMEGY BANK NATIONAL ASSOCIATION, a national banking association

 

By: /s/ Tamara Ray 

Name: Tamara Ray

Title: Vice President

 

GUARANTORS:

 

WILHELMINA LICENSING LLC,

a Delaware limited liability company

 

By: /s/ David S. Chaiken

David S. Chaiken

Chief Accounting Officer

 

WILHELMINA LICENSING (TEXAS) LLC,

a Texas limited liability company

 

By: /s/ David S. Chaiken

David S. Chaiken

Chief Accounting Officer

 

WILHELMINA FILM & TV PRODUCTIONS LLC, a Delaware limited liability
company

 

By: /s/ David S. Chaiken

David S. Chaiken

Chief Accounting Officer

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT – Signature Page

     

    

WILHELMINA ARTIST MANAGEMENT LLC, a New York limited liability company

 

By: /s/ David S. Chaiken

David S. Chaiken

Chief Accounting Officer

 

WILHELMINA-MIAMI, INC.,

a Florida corporation

 

By: /s/ David S. Chaiken

David S. Chaiken

Chief Accounting Officer

 

WILHELMINA INTERNATIONAL, LTD.,

a New York corporation

 

By: /s/ David S. Chaiken

David S. Chaiken

Chief Accounting Officer

 

WILHELMINA WEST, INC.,

a California corporation

 

By: /s/ David S. Chaiken

David S. Chaiken

Chief Accounting Officer

 

WILHELMINA MODELS, INC.,

a New York corporation

 

By: /s/ David S. Chaiken

David S. Chaiken

Chief Accounting Officer

 

 

 

 

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT – Signature Page

     

    

LW1, INC.,

a California corporation

 

By: /s/ David S. Chaiken

David S. Chaiken

Chief Accounting Officer

 

WILHELMINA CREATIVE, LLC,

a Florida limited liability company

 

By: /s/ David S. Chaiken

David S. Chaiken

Chief Accounting Officer

 

ARTISTS AT WILHELMINA LLC,

a Florida limited liability company

 

By: /s/ David S. Chaiken

David S. Chaiken

Chief Accounting Officer

 

 

 

 

 

    	FOURTH AMENDMENT TO CREDIT AGREEMENT – Signature Page

     

    

EXHIBIT A

 

Borrowing Base Certificate

 

(see attached)

 

 

 

 

 

 

 

 

 

 

 

 

    	
FOURTH AMENDMENT TO CREDIT AGREEMENT – Exhibit A

     

    

BORROWING BASE CERTIFICATE

 

Date: _______________, 20__ (the “Certificate Date”)

 

Amegy Bank National Association

2501 N. Harwood, Suite 1600

Dallas TX 75201

Attention: Ms. Tamara Ray

 

To Whom It May Concern:

 

Reference is made to that certain Credit Agreement
dated as of April 20, 2011 (as amended by that certain First Amendment to Credit Agreement dated January 1, 2012, that certain
Second Amendment to Credit Agreement dated October 24, 2012, that certain Third Amendment to Credit Agreement dated July 31, 2014,
that certain Fourth Amendment to Credit Agreement dated October 24, 2015, and as amended, restated, supplemented or modified from
time to time, the “Credit Agreement”) by and between Wilhelmina International, Inc. (“Borrower”)
and Amegy Bank National Association (“Bank”). Capitalized terms used herein and not otherwise defined herein
shall have the meanings given to such terms in the Credit Agreement.

 

This Borrowing Base Certificate (this “Certificate”)
is prepared, and is based upon information accurate, as of the Certificate Date, and is provided in accordance with Section
3.1(b)(iv) or Section 4.3(d) of the Credit Agreement.

 

Borrower hereby certifies, represents and warrants
to Bank as follows:

 

1.all information contained herein is true,
correct and complete as of the Certificate Date; and

 

2.the calculation of the Borrowing Base
as of the Certificate Date is as follows:

 

	A.	Borrowing Base Amount	 
	 	(i)Maximum Line Amount	$4,000,000.00
	 	(ii)Eligible Accounts Receivable Advance Rate	80%
	 	(iii)Eligible Accounts Receivable (see Schedule 1):	$
	 	(iv)Eligible Account Receivable Component – Line A(ii) multiplied by Line A(iii)	$
	B.	Outstanding principal amount of advances, loans, or other extensions of credit, including the Term Loan:	$
	C.	Outstanding Letter of Credit Liabilities:	$
	D.	
        TOTAL AVAILABILITY

         

        The lesser of (a) Line A(i) or (b) Line A(iv)
        minus Line B minus Line C

         
	
        $

         

    	
FOURTH AMENDMENT TO CREDIT AGREEMENT – Exhibit A

     

    

Borrower has signed this Borrowing Base Certificate
as of the day and year first above written.

 

WILHELMINA INTERNATIONAL, INC., a Delaware corporation

 

By: /s/ David S. Chaiken

David S. Chaiken

Chief Accounting Officer

 

 

 

 

 

 

    	
FOURTH AMENDMENT TO CREDIT AGREEMENT – Exhibit A

     

    

SCHEDULE 1 

CALCULATION OF ELIGIBLE ACCOUNTS RECEIVABLE

 

	1.	Trade accounts receivable in the ordinary course of Borrowers' business:	 	$____________
	2.	Minus the sum of the following ineligible accounts (to be determined with respect to the accounts of each Borrower and then added to determine the aggregate amount for all Borrowers):	 	 
	 	
        (i)       
        such accounts as to which payment is not absolute or is contingent:

         
	$____________

         
	 
	 	(ii)      such accounts which are unpaid more than 120 days past the initial invoice date therefor:	$____________

         
	 
	 	(iii)    that portion of such accounts for which there exists any right of setoff, defense or discount (except regular discounts allowed in the ordinary course of business to promote prompt payment) or for which any defense or counterclaim has been asserted:	$____________

         
	 
	 	(iv)    such accounts which represent an obligation of any state or municipal government or of the United States government or any political subdivision thereof:	$____________

         
	 
	 	(v)      such accounts which represent an obligation of an account debtor located in a foreign country:	$____________

         
	 
	 	(vi)    such accounts which arise from the sale or lease to or performance of services for, or represents an obligation of, an employee, affiliate, partner, member, parent or subsidiary of any Borrower.	$____________

         
	 
	 	(vii)  that portion of such accounts which represents interim or progress billings or retention rights on the part of the account debtor:	$____________

         
	 
	 	(viii)   such accounts which represent an obligation of any account debtor when twenty percent (20%) or more of a Borrower’s accounts from such account debtor are not eligible pursuant to clause (ii) above:	$____________

         
	 
	 	
        (ix)    that
        portion of such accounts from an account debtor which represents the amount by which Borrower’s total accounts from said
        account debtor exceeds twenty percent (20%) of Borrower’s total accounts:

         

        and

         
	$____________

         
	 
	

    	
FOURTH AMENDMENT TO CREDIT AGREEMENT – Exhibit A

     

    

	 	(x)      such accounts deemed ineligible by Bank when Bank, in its sole discretion, deems the creditworthiness or financial condition of the account debtor, or the industry in which the account debtor is engaged, to be unsatisfactory:	
        $____________

         
	 
	 	Subtotal:	 	$____________
	3.	Total amount of Eligible Accounts Receivable (item 1 minus item 2):	 	$____________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOURTH AMENDMENT TO CREDIT AGREEMENT – Exhibit A

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