Document:

2014 Section 16 Officer Employment Agreement

Exhibit 10.1

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”), dated ________________________, is by and between Cedar Fair, L.P., a publicly traded Delaware limited partnership, Cedar Fair Management, Inc., an Ohio Corporation (“Cedar Fair Management”), Magnum Management Corporation, an Ohio corporation (“Magnum”), and _______________________ (the “Executive”).
WHEREAS, Cedar Fair, L.P. is affiliated with several corporations and partnerships including, without limitation, Cedar Fair Management and Magnum (collectively, “Cedar Fair” or the “Company”);
WHEREAS, Cedar Fair Management manages the day-to-day activities of, and establishes the long-term objectives for, Cedar Fair;
WHEREAS, The Board of Directors of Cedar Fair Management (the “Board”) and its Chief Executive Officer have directed Cedar Fair to enter into an employment agreement with Executive to set the terms and conditions of employment.
WHEREAS, the Board and Executive intend and agree that upon the date that this Agreement has been fully executed by all of the parties hereto (the “Effective Date”) this Agreement shall supersede and replace all employment agreements between Executive and Cedar Fair that pre-date the Effective Date.  
NOW, THEREFORE, in consideration of such employment and the mutual covenants and promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Executive agree as follows:
		
	1.
	Employment.  Magnum hereby agrees to employ Executive, and Executive hereby agrees to accept employment with Magnum, upon the terms and conditions contained in this Agreement.  Executive’s employment with Magnum under the terms of this  Agreement shall commence on the Effective Date and shall continue, subject to earlier termination of such employment pursuant to the terms hereof, until (and including) December 31, ___________________(the “Employment Period”). This Agreement shall automatically renew for a period of twenty four (24) months commencing January 1, _____________, and on every twenty four (24) month anniversary of January 1, _______ thereafter unless one of the parties provides written notice of intent to terminate not less than sixty (60) days prior to January 1, __________ or any such twenty four (24) month anniversary thereafter; provided, however, that Cedar Fair shall have the right to terminate this Agreement at any time, subject to the obligations to provide the benefits and make the payments provided herein.  The term of Executive’s employment, as set forth herein and as it may be extended pursuant to this Section 1, is hereinafter referred to as the “Employment Period”. 

In the event Executive continues in employment after the expiration of the Employment Period and has not entered into a New Agreement (as defined in Section 6.3) as of the expiration of the Employment Period, such employment shall be “at will” employment and may be terminated at any time by either party on written notice.  Executive’s at will employment will remain subject to Sections 8 and 9 of this Agreement (and any defined terms set forth in this Agreement referenced 

Exhibit 10.1

in such sections shall continue to apply); however, no other provisions of this Agreement will remain in effect. 
2.     Duties.  During the Employment Period, Executive shall serve on a full-time basis and perform services in a capacity and in a manner consistent with Executive’s position for the Company.  Executive shall have the title of ___________________________________  commencing as of the Effective Date and shall have such duties, authorities and responsibilities as are consistent with such position, and as the CEO and Board may designate from time to time while the Executive serves as the ____________________ of the Company.   Executive will report directly to the  CEO and the Board; Executive shall devote substantially all of Executive’s business time and attention and Executive’s best efforts (excepting vacation time, holidays, sick days and periods of disability) to Executive’s employment and service with the Company; provided, that this Section 2 shall not be interpreted as prohibiting Executive from (i) managing Executive’s personal investments (so long as such investment activities are of a passive nature), (ii) engaging in charitable or civic activities, (iii) participating on boards of directors or similar bodies of non-profit organizations, or (iv) subject to approval by the Board in its sole discretion, participating on boards of directors or similar bodies of for-profit organizations, in each case, so long as such activities in the aggregate do not (a) materially interfere with the performance of Executive’s duties and responsibilities hereunder, (b) create a fiduciary conflict, or (c) with respect to (ii), (iii), and (iv) only, detrimentally affect the Company’s reputation as reasonably determined by the Company in good faith.  If requested, Executive shall also serve as an executive officer and/or member of the board of directors of any entity that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, Cedar Fair, L.P. (an “Affiliate”) without additional compensation.
3.    Location of Employment.  Executive’s principal place of employment shall be at the Company’s corporate office, currently located in ____________________, subject to reasonable business travel consistent with Executive’s duties and responsibilities. 
4.    Compensation.
4.1    Base Salary.
(a)In consideration of all services rendered by Executive under this Agreement, the Company shall pay Executive a base salary (the “Base Salary”) at an annual rate of $___________________ during the Employment Period.  Executive’s Base Salary will be reviewed from time to time (but will not decrease, except in the event of an across the board reduction applicable to substantially all senior executives of the Company).
(b)The Base Salary shall be paid in such installments and at such times as the Company pays its regularly salaried employees and shall be subject to all required withholding taxes, including income, FICA, and Medicare contributions, and similar deductions.
4.2    Incentive Compensation.  During the Employment Period, Executive will be eligible to participate in one or more of Cedar Fair’s cash incentive compensation plans and equity incentive plans (awards or compensation under any such plans being referred to as “Incentive Compensation”) including the Company’s 2008 Omnibus Incentive Plan (or any successor thereto (the “Company Omnibus Plan”) at a level appropriate to Executive’s position 

Exhibit 10.1

and performance, as solely determined by the Board. Any cash incentive (‘Annual Cash Incentive”) payable to Executive for a calendar year shall be paid to Executive at the same time that other senior executives of the Company receive bonus payments, but in no event later than March 15 of the calendar year following the end of the calendar year to which such Annual Cash Incentive relates.  Executive shall not be paid any Annual Cash Incentive  with respect to a calendar year unless Executive is employed with the Company on the last day of the calendar year to which such Annual Cash Incentive  relates, except as otherwise set forth in Section 6 hereof.    
Any Equity award shall be subject to the terms and conditions set forth in the Company Omnibus Plan and an applicable award agreement entered into thereunder, which shall not be inconsistent with the Plan or this Agreement, and to approval of such grant by the Board; provided that upon the occurrence of a Change in Control, Executive shall become immediately vested in any equity award granted to Executive pursuant to the Company Omnibus Plan, in each case, then held by the Executive as of the date of such Change in Control provided further that any equity awards conditioned upon performance criteria, goals or objectives that so vest upon a Change in Control shall be, payable at the level specified in the Company Omnibus Plan or an applicable award agreement or as specified in connection with the grant, where applicable.  
4.3    Vacation.  Executive shall be entitled to annual paid vacation days, which shall accrue and be useable by Executive in accordance with Company policy, as may be in effect from time to time. 
4.4    Benefits.  During the Employment Period, Executive shall be entitled to participate in any benefit and compensation plans, including but not limited to medical, disability,  and life insurance 401K and deferred compensation plans (but excluding any severance or bonus plans unless specifically referenced in this Agreement) offered by the Company as in effect from time to time (collectively, “Benefit Plans”), on the same basis as those generally made available to other senior executives of the Company (other than the CEO), to the extent Executive may be eligible to do so under the terms of any such Benefit Plan; Executive understands that any such Benefit Plans may be terminated or amended from time to time by the Company in its sole discretion. 
4.5    Business Expenses. During the Employment Period reasonable travel, entertainment, and other business expenses incurred by Executive in the performance of his duties hereunder shall be reimbursed by Cedar Fair in accordance with Cedar Fair’s policies as in effect from time to time.  
4.6    Clawback.     Executive agrees that the Board may, in appropriate circumstances, require reimbursement of any Incentive Compensation paid or granted to Executive within the preceding twenty four months  where: (1) the payment was predicated upon achieving certain financial results that were subsequently the subject of a substantial restatement of Company financial statements filed with the Securities and Exchange Commission; and  (2) the Board determines Executive engaged in intentional misconduct that caused or substantially caused the need for the substantial restatement; and (3) a lower payment would have been made to the Executive based upon the restated financial results. In each such instance, the Company will, to the extent practicable, seek to recover from Executive the amount by which Executive’s 

Exhibit 10.1

Incentive Compensation for the relevant period exceeded the lower payment that would have been made based on the restated financial results and Executive shall be liable to repay the same. 

5.    Termination.  Executive’s employment hereunder may be terminated as follows:
5.1    Automatically in the event of the death of Executive;
5.2    At the option of the Company, by written notice to Executive or Executive’s personal representative in the event of the Disability of Executive.  As used herein, the term “Disability” shall mean a physical or mental incapacity or disability which has rendered, or is likely to render, Executive unable to perform Executive’s material duties for a period of either (i) one hundred eighty (180) days in any twelve- (12-) month period or (ii) ninety (90) consecutive days, as determined by a medical physician selected by the Company;
5.3    At the option of the Company for Cause (as defined in Section 6.5), on prior written notice to Executive;
5.4    At the option of the Company, but subject to ten (10) days prior written notice to Executive, at any time without Cause (provided that the assignment of this Agreement to and assumption of this Agreement by the purchaser of all or substantially all of the assets of the Company shall not be treated as a termination without Cause under this Section 5.4);
5.5    At the option of Executive for Good Reason (as provided in Section 6.5); or
5.6    At the option of Executive for any or no reason, on sixty (60) days prior written notice to the Company (which the Company may, in its sole discretion, make effective as a resignation earlier than the termination date provided in such notice), subject to Section 6.6 to the extent applicable.

6.    Severance Payments.
6.1    Termination Without Cause, Disability or Resignation for Good Reason.  If Executive’s employment is terminated at any time during the Employment Period by the Company without Cause (and not for death) or pursuant to Section 5.2 (Disability) or by Executive for Good Reason (as defined in Section 6.5), subject to Section 6.6 and Section 12.7 , Executive shall be entitled to:
(c)within thirty (30) days following such termination, (i) payment of Executive’s accrued and unpaid Base Salary, (ii) reimbursement of expenses under Section 7 hereof and (iii) payment for accrued and unused vacation days, in each case accrued as of  the date of termination;
(b)     an amount equal to one (1) times Executive’s Base Salary payable at the same time Base Salary would be paid over the twelve- (12) month period following termination if Executive had remained employed with the Company; provided that, subject to Section 6.6 and 

Exhibit 10.1

12.7, the first payment shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after Executive’s termination.  The first payment shall include payment of any amounts that would otherwise be due prior thereto. To the extent any such termination of employment occurs during the twenty-four- (24) month period following a Change in Control such amount shall be two and one-half (2-1/2) times  annual “Cash Compensation” for the year preceding the calendar year in which the Change in Control of Cedar Fair occurred, less one United States dollar (US $1.00); and payment shall be made in a lump sum on the next regularly scheduled payroll date following the sixtieth (60th) day after Executive’s termination;  provided further that to the extent any such termination of employment occurs pursuant to Section 5.2 (Disability), monetary payments actually received by the Executive from a bona fide short-term or long-term disability plan maintained by the Company shall be used to reduce any payment made by the Company pursuant to this provision on a dollar for dollar basis; provided that: (i) the disability plan payments qualify as “disability pay” under Treasury Regulation Section 31.3121(v)(2)-1(b)(4)(iv)(C) (ii) such reduction does not otherwise affect the time of payment of such Base Salary or the provision of benefits; (iii) the disability plan covers a substantial number of employees and, was in effect before Executive became Disabled; and (iv) any subsequent amendment of such plan or any change in the benefits payable under such plan results from actions taken by an independent third party or, if taken by Cedar Fair, that they are generally applicable to a substantial number of other employees. 

c)    any Annual Cash Incentive  earned with respect to a calendar year ending on or prior to the date of such termination of employment but unpaid as of such date, shall be payable at the same time such payment would be made if Executive continued to be employed by the Company:
(d)    a pro-rata portion of Executive’s Annual Cash Incentive for the calendar year in which Executive’s termination of employment occurs (determined by multiplying the amount of such Annual Cash Incentive, which would be due for the full calendar year by a fraction, the numerator of which is the number of days during the calendar year of termination that Executive is employed with the Company and the denominator of which is 365 based on actual performance and payable at the same time that other senior executives of the Company receive bonus payments in respect of the calendar year in which such termination occurs, but in no event later than March 15 of the calendar year following the end of the calendar year to which such Annual Cash Incentive relates; provided, that to the extent Executive's Annual Cash Incentive   for the calendar year in which Executive's termination occurs (i) is intended to be "qualified performance-based compensation" (within the meaning of Section 162(m) of the Code (as defined in Section 12.7)), any qualitative performance criteria applicable to such bonus relating to the potential application of "negative discretion" in respect of such bonus shall be deemed satisfied in full and (ii) is not intended to be "qualified performance-based compensation" (within the meaning of Section 162(m) of the Code), any qualitative performance criteria applicable to such bonus shall be deemed satisfied in full;  
(e)         subject to Executive’s timely election of continuation coverage under the under Part 6 of Title I of the Employee Retirement Income Security Act of 1974, as amended, and Section 4980B of the Internal Revenue Code of 1986, as amended (“COBRA”), the Company shall pay to Executive each month an after-tax amount equal to the monthly amount of the COBRA continuation coverage premium under the Company’s group medical plans as in effect from time 

Exhibit 10.1

to time, less the amount of Executive’s portion of the premium as if Executive were an active employee until the earliest of: (i) twelve (12) months after the date of Executive’s termination of employment; (ii) the date Executive is no longer eligible for benefits under COBRA; or (iii) the date Executive obtains other employment that offers medical benefits, provided that the first payment of any amount described in this Section 6.1(e) shall be paid  following Executive’s termination of employment as described in Section 6.6 or Section 12.7 and shall include any amounts due prior thereto; provided, further, that to the extent any such termination occurs during the twenty-four- (24-) month period following a Change in Control, Executive shall have the right to continue medical and dental insurance coverage during the thirty- (30-) month period after the date of such termination pursuant to COBRA, and from the Executive’s termination of employment date through the end of such thirty- (30-) month period Executive shall be required to pay the full cost of the amount for such coverage (both employee and employer) on an after-tax basis and, if permitted under applicable law, as determined in good faith by Cedar Fair, Cedar Fair shall reimburse Executive for the payments on a monthly basis; and
(f)     if such termination is the result of a Termination Without Cause or Resignation for Good Reason, then, subject to Executive executing a general release of all claims as set forth in Section 6.6, Executive shall become fully vested in any equity awards made under the Company’s Omnibus Incentive Plan (or any successor plan), whether such grants were made prior to or following the Effective Date, that are scheduled to vest within the eighteen month period following Executive’s date of termination.  Other than as set forth below in the context of options, Executive shall receive payments on the Payment Date as provided in the applicable award agreement as if the Executive were employed by the Company on the relevant Payment Date.  All such equity awards shall be paid or vest pursuant to the terms of the original award agreements, but without regard to any continuing employment requirements or proration.  Options that vest within the eighteen month post termination period will terminate thirty (30) calendar days after the vesting date unless exercised by the Executive.  Equity awards made under the Company’s Omnibus Incentive Plan (or any successor plan), that are scheduled to vest (in whole or in part) after the eighteen month period following Executive’s date of termination as described above under this paragraph (f), shall vest and be paid only in accordance with the terms of the applicable award and the terms of the Omnibus Incentive Plan (or any successor plan).
(g)     Facility of Payments in the Event of Death After Termination of Employment.  Severance payments (made by reason of terminations without Cause, for Disability, Resignation for Good Reason, and after a Change in Control) which have not yet commenced (i.e., because of the six month waiting period), or which have commenced, but are unpaid at death of Executive (i.e., during months six to twelve months after termination), will be paid to Executive’s designated beneficiary or legal representative, as applicable; and,

 (h)      Other Accrued Amounts.  All other accrued amounts or accrued benefits due to Executive in accordance with the Company’s benefit plans, programs or policies (other than severance).
6.2    Termination due to Death.  Upon the termination of Executive’s employment due to Executive’s death pursuant to Section 5.1, subject to Section 6.6 hereof, Executive or Executive’s legal representatives shall be entitled to receive the payments and benefits described

Exhibit 10.1

 under Sections 6.1(a), (c), (d),and (h) hereof. In addition subject to Executive’s spouse and eligible dependents timely election of continuation coverage under the COBRA, the Company shall pay to Executive’s spouse and eligible dependents each month an after-tax amount equal to the monthly amount of the COBRA continuation coverage premium under the Company’s group medical plans as in effect from time to time, less the amount of Executive’s portion of the premium as if Executive were an active employee for a period of up to twelve (12) months after the date of Executive’s death, if permitted under applicable law as determined in good faith by Cedar Fair.   
6.3    Company Non-renewal Following Expiration of Employment Period. 
(a)  If Executive submits timely notice of his intent not to renew as provided under Section 1, his employment with the Company will terminate immediately following the expiration of the Employment Period and Executive will be entitled only to those benefits or payments provided under Section 6.1(a), (c) and (h) or pursuant to relevant law or plan provisions.
 (b)  If the Company submits timely notice of its intent not to renew as provided under Section 1 and Executive chooses to terminate his employment immediately following the Employment Period, subject to Section 6.6 and Section 12.7 hereof, Executive shall be entitled to receive  the payments and benefits described under  Sections 6.1(a), (b) (c), (e), (f),(g) & (h); provided that, subject to Section 6.6 and Section 12.7, the first payment shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after Executive’s termination and shall include payment of any amounts that would otherwise be due prior thereto. 
 (c) If the Executive continues his employment without a New Agreement following the expiration of the Employment Period, such employment will be at will consistent with Section 1. 
6.4    Termination for Any Other Reason.  Upon the termination of Executive’s employment for any reason not otherwise covered in Sections 6.1, 6.2 and 6.3 hereof, Executive or Executive’s legal representatives shall be entitled to receive the payments and benefits described under Sections 6.1(a), (c), and (h) hereof.  
6.5    Certain Definitions.  For purposes of this Agreement, 
(a)    “Cause” shall mean:
(i)Executive’s willful and continued failure to perform his duties hereunder or to follow the lawful direction of the CEO or the Board or a material breach of fiduciary duty after written notice specifying the failure or breach; 
(ii)theft, fraud, or dishonesty with regard to the Company or in connection with Executive’s duties; 
(iii)Executive’s indictment for, conviction of (or pleading guilty or nolo contendere to) a felony or any lesser offense involving fraud, or moral turpitude; 
(iv)material violation of the Company’s Code of Conduct or similar written policies after written notice specifying the failure or breach; 

Exhibit 10.1

(v)willful misconduct unrelated to the Company having, or likely to have, a material negative impact on the Company (economically or its reputation) after written notice specifying the failure or breach; 
(vi)an act of gross negligence or willful misconduct by the Executive that relates to the affairs of the Company;
(vii)material breach by Executive of any provisions of this Agreement;
(viii)a final, non-appealable determination by a court or other governmental body of competent jurisdiction that a material violation by the Executive of federal or state securities laws has occurred; or
(ix)as provided in Section 12.1 hereof.
(b)    “Change in Control” shall mean a “change in the ownership” of the Company, a “change in effective control” of the Company, or a “change in the ownership of a substantial portion of the assets” of the Company under Treasury Regulations § 1.409A-3(i)(5), or any successor provision.
(c)    “Good Reason” shall mean, without Executive’s express consent:
(i)    any material diminution in Executive’s responsibilities, authorities or duties; 
(ii)    any material reduction in (x) Executive’s Base Salary or (y) target Incentive  Compensation  opportunity (except in the event of an across the board reduction in Base Salary or Incentive Compensation  opportunity applicable to substantially all senior executives of the Company); 
(iii)    a forced relocation of Executive’s place of employment by the greater of seventy (70) miles or, if greater, the distance constituting a “material change in the geographic location” of Executive’s place of employment within the meaning of Code Section 409A (as defined in Section 12.7);  or
(iv)    a material breach of this Agreement by the Company; 
provided, however, that no event described in clause (i), (ii), or (iii)  shall constitute Good Reason unless (A) Executive has given the Company written notice of the termination, setting forth the conduct of the Company that is alleged to constitute Good Reason, within sixty (60) days of the first date on which Executive has knowledge of such conduct, and (B) Executive has provided the Company at least thirty (30) days following the date on which such notice is provided to cure such conduct and the Company has failed to do so.  Failing such cure, a termination of employment by Executive for Good Reason shall be effective on the day following the expiration of such cure period.  
(d)“Noncompetition Period” shall mean during Executive’s employment and during the twelve- (12-) month period following such termination of employment regardless of 

Exhibit 10.1

reason, plus during any additional period in which Executive receives severance payments from the Company pursuant to Section 6.1(b) or 6.1(f) hereof.
(e)“Cash Compensation” shall mean, with respect to any calendar year, as (i) the total salary payable in such calendar year, (ii) the target Annual Cash Incentive  compensation   with respect to such calendar year, notwithstanding the fact that a portion of such bonuses may be paid to the Executive by March 15 of the following calendar year in compliance with the short-term deferral rule under Code Section 409A (as defined in Section 12.7), and (iii) respect to any multi-year cash bonuses, the amount actually paid in such calendar year.  For the avoidance of doubt, the term Cash Compensation  does not include payments or benefits to the Executive under any employee benefit or fringe benefit plan, program, or arrangement or awards or payments under the Cedar Fair, L.P. Amended and Restated Senior Management Long-Term Incentive Compensation Plan, the Cedar Fair, L.P. Amended and Restated 2000 Equity Incentive Plan, or the Cedar Fair, L.P. Amended and Restated Supplemental Retirement Program, as such plans, programs, or arrangements currently exist or are hereafter amended.
6.6       Conditions to Payment.  All payments and benefits due to Executive under this Section 6 which are not otherwise required by law shall be payable only if Executive (or Executive’s beneficiary or estate) delivers to the Company and does not revoke (under the terms of applicable law) a general release of all claims in the form attached hereto as Exhibit A, provided that if necessary, such general release may be updated and revised to comply with applicable law to achieve its intent.   Such general release shall be executed and delivered (and no longer subject to revocation) within sixty (60) days following termination and provided further that  if the sixty- (60-) day period begins in one calendar year and ends in a second calendar year, payments shall always be made in the second calendar year. Failure to timely execute and return such release or revocation thereof shall be a waiver by Executive of Executive’s right to severance (which, for the avoidance of doubt, shall not include any amounts described in Sections 6.1(a), (c) and (h) hereof).  In addition, severance shall be conditioned on Executive’s compliance with Section 8 hereof as provided in Section 9 below.
6.7    No Other Severance.  Executive hereby acknowledges and agrees that, other than the severance payments described in this Section 6, upon termination of employment Executive shall not be entitled to any other severance under any Company benefit plan or severance policy generally available to the Company’s employees or otherwise.
7.    Reimbursement of Expenses.  Subject to Section 6.6 and Section 12.7, the Company shall reimburse Executive for reasonable and necessary expenses actually incurred by Executive directly in connection with the business and affairs of the Company and the performance of Executive’s duties hereunder upon presentation of proper receipts or other proof of expenditure and in accordance with the guidelines and limitations established by the Company under the Company’s Travel and Entertainment Policy as in effect from time to time; provided, that Executive shall present all such proper receipts or other proof of expenditure promptly following the date the expense was incurred, but in no event later than one week after the date the expense was incurred, and reimbursement shall be made promptly thereafter.  When traveling for Company business, Executive shall be subject to Company travel policies, including, without limitation, the Company’s Travel and Entertainment Policy, in effect from time to time.

Exhibit 10.1

  
8.    Restrictions on Activities of Executive.
8.1    Confidentiality
(a)    Executive acknowledges that it is the policy of the Company to maintain as secret and confidential all “Confidential Information” (as defined herein). The parties hereto recognize that the services to be performed by Executive pursuant to this Agreement are special and unique, and that by reason of his employment by the Company after the Effective Date, Executive will acquire, or may have acquired, Confidential Information. Executive recognizes that all such Confidential Information is and shall remain the sole property of the Company, free of any rights of Executive, and acknowledges that the Company has a vested interest in assuring that all such Confidential Information remains secret and confidential. Therefore, in consideration of Executive’s employment with the Company pursuant to this Agreement,  Executive agrees that at all times from and after the Effective Date, he will not, directly or indirectly, disclose to any person, firm, company or other entity (other than the Company) any Confidential Information, except as specifically required in the performance of his duties hereunder, without the prior written consent of the Company, except to the extent that (i) any such Confidential Information becomes generally available to the public, other than as a result of a breach by Executive of this Section 8.1 or by any other executive officer of the Company subject to confidentiality obligations, or (ii) any such Confidential Information becomes available to Executive on a non-confidential basis from a source other than the Company, or its executive officers or advisors; provided, that such source is not known by Executive to be bound by a confidentiality agreement with, or other obligation of secrecy to, the Company or another party. In addition, it shall not be a breach of the confidentiality obligations hereof if Executive is required by law to disclose any Confidential Information; provided, that in such case, Executive shall (x) give the Company the earliest notice possible that such disclosure is or may be required and (y) cooperate with the Company, at the Company’s expense, in protecting to the maximum extent legally permitted, the confidential or proprietary nature of the Confidential Information which must be so disclosed. The obligations of Executive under this Section 8.1 shall survive any termination of this Agreement.  During the Employment Period Executive shall exercise all due and diligent precautions to protect the integrity of the business plans, customer lists, statistical data and compilation, agreements, contracts, manuals or other documents of the Company which embody the Confidential Information, and upon the expiration or the termination of the Employment Period, Executive agrees that all Confidential Information in his possession, directly or indirectly, that is in writing or other tangible form (together with all duplicates thereof) will forthwith be returned to the Company and will not be retained by Executive or furnished to any person, either by sample, facsimile film, audio or video cassette, electronic data, verbal communication or any other means of communication.  Executive agrees that the provisions of this Section 8.1 are reasonably necessary to protect the proprietary rights of the Company in the Confidential Information and its trade secrets, goodwill and reputation.
(b)    For purposes hereof, the term “Confidential Information” means all information developed or used by the Company relating to the “Business” (as herein defined), operations, employees, customers, suppliers and distributors of the Company, including, but not limited to, customer lists, purchase orders, financial data, pricing information and price lists, business plans and market strategies and arrangements and any strategic plan, all books, records, manuals, advertising materials, catalogues, correspondence, mailing lists, production data, sales 

Exhibit 10.1

materials and records, purchasing materials and records, personnel records, quality control records and procedures included in or relating to the Business or any of the assets of the Company and all trademarks, copyrights and patents, and applications therefore, all trade secrets, inventions, processes, procedures, research records, market surveys and marketing know-how and other technical papers. The term “Confidential Information” also includes any other information heretofore or hereafter acquired by the Company and deemed by it to be confidential. For purposes of this Agreement, the term “Business” shall mean: (i) the business of amusement and water parks; (ii) leisure theme parks; (iii) any other business engaged in or being developed (including production of materials used in the Company’s businesses) by the Company, or being considered by the Company, at the time of Executive’s termination, in each case, to the extent such business is primarily related to the business of amusement and water parks or leisure theme parks; and (iv) any joint venture, partnership or agency arrangements relating to the businesses described in (b)(i) through (iii) above provided that, in determining when an entity is in a “Business”, the Board will not act unreasonably in making such determination.
8.2    Non-Competition.   
(a)    Executive agrees that, during the Noncompetition Period, Executive will not:
directly or indirectly, own, manage, operate, control or participate in the ownership, management or control of, or be connected as an officer, employee, partner, consultant, contractor, director, or otherwise with, or have any financial interest in, or aid, consult, advise, or assist anyone else in the conduct of, any entity or business:         
(x)    in which ten percent (10%) or more of whose annual revenues are derived from a Business as defined above; and
(y)    which conducts business in any locality or region of the United States or Ontario, Canada (whether or not such competing entity or business is physically located in the United States or Canada), or any other area where Business is being conducted by the Company on the date Executive’s employment is terminated hereunder or in each and every area where the Company intends to conduct such Business as it expresses such intent in the written strategic plan developed by the Company as of the date Executive’s employment is terminated hereunder; and 
(i)either personally or by his agent or by letters, circulars or advertisements, and whether for himself or on behalf of any other person, company, firm or other entity, except in his capacity as an executive of the Company, canvass or solicit, or enter into or effect (or cause or authorize to be solicited, entered into, or effected), directly or indirectly, for or on behalf of himself or any other person, any business relating to the services of the type provided by, or orders for business or services similar to those provided by, the Company from any person, company, firm, or other entity who is, or has at any time within two (2) years prior to the date of such action been, a customer or supplier of the Company; provided that the restrictions of Section 8.2(a)(i)(y) above shall also apply to any person, company, firm, or other 

Exhibit 10.1

entity with whom the Company is specifically seeking to develop a relationship as a customer or supplier of the Company at the date of such action. 

Notwithstanding the forgoing, Executive’s ownership of securities of a public company engaged in competition with the Company not in excess of five percent (5%) of any class of such securities shall not be considered a breach of the covenants set forth in this Section 8.1(a). 
(b)    Executive agrees that, at all times from after the Effective Date, Executive will not, either personally or by his agent or by letters, circulars or advertisements, and whether for himself or on behalf of any other person, company, firm, or other entity, except in his capacity as an executive of the Company: 
(i)    seek to persuade any employee of the Company to discontinue his or her status or employment therewith or to become employed in a business or activities likely to be competitive with the Business; or 
(ii)solicit or employ any such person at any time within twelve (12) months following the date of cessation of employment of such person with the Company, in any locality or region of the United States or Canada and in each and every other area where the Company conducts its Business;  
(iii)

provided; however, that the restrictions set forth in this Section 8.2(b) shall cease upon the expiration of the Noncompetition Period.  
8.3    Assignment of Inventions.  
(a)    Executive agrees that during employment with the Company, any and all inventions, discoveries, innovations, writings, domain names, improvements, trade secrets, designs, drawings, formulas, business processes, secret processes and know-how, whether or not patentable or a copyright or trademark, which Executive may create, conceive, develop or make, either alone or in conjunction with others and related or in any way connected with the Company’s strategic plans, products, processes or apparatus or the Business (collectively, “Inventions”), shall be fully and promptly disclosed to the Company and shall be the sole and exclusive property of the Company as against Executive or any of Executive’s assignees.  Regardless of the status of Executive’s employment by the Company, Executive and Executive’s heirs, assigns and representatives shall promptly assign to the Company any and all right, title and interest in and to such Inventions made during employment with the Company.
(b)    Whether during or after the Employment Period, Executive further agrees to execute and acknowledge all papers and to do, at the Company’s expense, any and all other things necessary for or incident to the applying for, obtaining and maintaining of such letters patent, copyrights, trademarks or other intellectual property rights, as the case may be, and to execute, on request, all papers necessary to assign and transfer such Inventions, copyrights, patents, patent applications and other intellectual property rights to the Company and its successors and assigns.  In the event that the Company is unable, after reasonable efforts and, in any event, after ten (10) business days, to secure Executive’s signature on a written assignment to the Company, of any application for letters patent, trademark registration or to any common law or statutory copyright or other property right therein, whether because of Executive’s 

Exhibit 10.1

physical or mental incapacity, or for any other reason whatsoever, Executive irrevocably designates and appoints the Secretary of the Company as Executive’s attorney‐in‐fact to act on Executive’s behalf to execute and file any such applications and to do all lawfully permitted acts to further the prosecution or issuance of such assignments, letters patent, copyright or trademark.
8.4    Return of Company Property.  Within ten (10) days following the date of any termination of Executive’s employment, Executive or Executive’s personal representative shall return all property of the Company in Executive’s possession, including but not limited to all Company-owned computer equipment (hardware and software), telephones, facsimile machines, smart phones, cell phones,  tablet computer and other communication devices, credit cards, office keys, security access cards, badges, identification cards and all copies (including drafts) of any documentation or information (however stored) relating to the Business, the Company’s customers and clients or its prospective customers and clients.  Anything to the contrary notwithstanding, Executive shall be entitled to retain (i) personal papers and other materials of a personal nature, provided that such papers or materials do not include Confidential Information, (ii) information showing Executive’s compensation or relating to reimbursement of expenses, and (iii) copies of plans, programs and agreements relating to Executive’s employment, or termination thereof, with the Company which he received in Executive’s capacity as a participant.
8.5    Resignation as an Officer and Director.  Upon any termination of Executive’s employment, Executive shall be deemed to have resigned, to the extent applicable as an officer of the Company, a member of the board of directors or similar body of any of Cedar Fair, L.P.’s Affiliates and as a fiduciary of any Company benefit plan.  On or immediately following the date of any termination of Executive’s employment, Executive shall confirm the foregoing by submitting to the Company in writing a confirmation of Executive’s resignation(s).
8.6    Cooperation.  During and following the Employment Period, Executive shall give Executive’s assistance and cooperation willingly, upon reasonable advance notice (which shall include due regard to the extent reasonably feasible for Executive’s employment obligations and prior commitments), in any matter relating to Executive’s position with the Company, or Executive’s knowledge as a result thereof as the Company may reasonably request, including Executive’s attendance and truthful testimony where deemed appropriate by the Company, with respect to any investigation or the Company’s defense or prosecution of any existing or future claims or litigations or other proceeding relating to matters in which he was involved or had knowledge by virtue of Executive’s employment with the Company.  The Company will reimburse Executive for reasonable out-of-pocket travel costs and expenses incurred by him (in accordance with Company policy) as a result of providing such assistance, upon the submission of the appropriate documentation to the Company.
8.7    Non-Disparagement.  During his employment with the Company and at any time thereafter, Executive agrees not to disparage or encourage or induce others to disparage the Company, any of its respective employees that were employed during Executive’s employment with the Company or any of its respective past and present, officers, directors, products or services (the “Company Parties”).  For purposes of this Section 8.7, the term “disparage” includes, without limitation, comments or statements to the press, to the Company’s employees or to any individual or entity with whom the Company has a business relationship (including, 

Exhibit 10.1

without limitation, any vendor, supplier, customer or distributor), or any public statement, that in each case is intended to, or can be reasonably expected to, materially damage any of the Company Parties.  Notwithstanding the foregoing, nothing in this Section 8.7 shall prevent Executive from making any truthful statement to the extent, but only to the extent (A) necessary with respect to any litigation, arbitration or mediation involving this Agreement, including, but not limited to, the enforcement of this Agreement, in the forum in which such litigation, arbitration or mediation properly takes place or (B) required by law, legal process or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with apparent jurisdiction over Executive.  
8.8    Tolling.  In the event of any violation of the provisions of this Section 8, Executive acknowledges and agrees that the post-termination restrictions contained in this Section 8 shall be extended by a period of time equal to the period of such violation, it being the intention of the parties hereto that the running of the applicable post-termination restriction period shall be tolled during any period of such violation.
8.9    Survival.  This Section 8 and any pertinent definitions of terms contained elsewhere in this Agreement shall survive any termination or expiration of this Agreement or employment of Executive.

9.    Remedies; Scope.  
9.1    It is specifically understood and agreed that any breach of the provisions of Section 8 of this Agreement is likely to result in irreparable injury to the Company and that the remedy at law alone will be an inadequate remedy for such breach, and that in addition to any other remedy it may have in the event of a breach or threatened breach of Section 8 above, the Company shall be entitled to enforce the specific performance of this Agreement by Executive and to seek both temporary and permanent injunctive relief (to the extent permitted by law) without bond and without liability should such relief be denied, modified or violated.  Furthermore, in the event of any breach of the provisions of Section 8.2 above or a material and willful breach of any other provision in Section 8 above (the “Forfeiture Criteria”), the Company shall be entitled to cease making any severance payments being made hereunder, and in the event of a final, non-appealable determination by a federal or state court of competent jurisdiction that a breach of any provision of Section 8 above has occurred, if such breach of Section 8 above satisfies the Forfeiture Criteria and occurs while Executive is receiving severance payments in accordance with Section 6 above (regardless whether the Company discovers such breach during such period of severance payment or anytime thereafter), the Company shall be entitled to recover any severance payments made to Executive.
9.2    Scope.  Executive has carefully considered the nature and extent of the restrictions upon Executive and the rights and remedies conferred upon the Company under Section 8 and Section 9.1, and hereby acknowledges and agrees that the same are reasonable and necessary in time and territory, are intended to eliminate competition which otherwise would be unfair to the Company, do not stifle the inherent skill and experience of Executive, would not operate as a bar to Executive’s sole means of support, are fully required to protect the business 

Exhibit 10.1

interests of the Company, and do not confer a benefit upon the Company disproportionate to the detriment to Executive.
10.    Severable Provisions.  The provisions of this Agreement are severable and the invalidity of any one or more provisions shall not affect the validity of any other provision.  In the event that a court of competent jurisdiction shall determine that any provision of this Agreement or the application thereof is unenforceable in whole or in part because of the duration or scope thereof, the parties hereto agree that said court in making such determination shall have the power to reduce the duration and scope of such provision to the extent necessary to make it enforceable, and that the Agreement in its reduced form shall be valid and enforceable to the full extent permitted by law.
11.    Notices.  All notices hereunder, to be effective, shall be in writing and shall be deemed effective when delivered by hand or mailed by (a) certified mail, postage and fees prepaid, or (b) nationally recognized overnight express mail service, as follows:
If to the Company:     One Cedar Point Drive
Sandusky, Ohio 44870-5259
Attn: General Counsel 
        
If to Executive:             The last address shown on records of the Company

or to such other address as a party may notify the other pursuant to a notice given in accordance with this Section 11.
12.    Miscellaneous.
12.1    Executive Representation.  Executive hereby represents to the Company that the execution and delivery of this Agreement by Executive and the Company and the performance by Executive of Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, or be prevented, interfered with or hindered by, the terms of any employment agreement or other agreement or policy to which Executive is a party or otherwise bound, and further that Executive is not subject to any limitation on his activities on behalf of the Company as a result of agreements into which Executive has entered except for obligations of confidentiality with former employers.  To the extent this representation and warranty is not true and accurate, it shall be treated as a Cause event and the Company may terminate Executive for Cause or not permit Executive to continue employment.  

12.2    No Mitigation; Offset. 

Exhibit 10.1

(a)    No Mitigation.  In the event of any termination of Executive’s employment hereunder, Executive shall be under no obligation to seek other employment or otherwise mitigate the obligations of the Company under this Agreement.
(b)    Offset.     To the extent that following Executive’s termination of employment with the Company, Executive becomes employed by or provides consultation services to any natural person, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental entity, or other entity or organization (each, a “Person”) during any period, if any, in which the Company may be obligated, pursuant to Section 6.3 of this Agreement, to pay or provide to Executive compensation or benefits following such termination of employment, 
(i)    Executive shall immediately notify the Company of any Person for whom Executive works or provides services; 
(ii)    Executive shall promptly provide to the Company copies of all pay statements (or similar statements) received from any such Person, or, if no such statements are available, a true, correct and complete description of any payments Executive is receiving; and
(iii)    in addition to any other rights the Company may have pursuant to the terms of this Agreement or otherwise, the Company shall be entitled to offset any compensation or benefits, if any, which the Company may be obligated, pursuant to Section 6.3 of this Agreement, to pay or provide to Executive following such termination of employment by the compensation, consultant’s and/or other fees (excluding any such fees received by Executive in connection with his participation on the board of directors of any Person in which Executive is a member of such Person's board of directors as of immediately prior to his termination of employment with the Company) being paid to Executive during the same period; provided, that any such offset shall, in each case, be applied to the next dollars due to Executive from the Company during the applicable period and provided further that such offset is permitted under Code Section 409A and other applicable law. 
12.3    Entire Agreement; Amendment.  Except as otherwise expressly provided herein and as further set forth in the grant agreement of any equity awards, this Agreement constitutes the entire Agreement between the parties hereto with regard to the subject matter hereof, superseding all prior understandings, term sheets and agreements, whether written or oral.  This Agreement may not be amended or revised except by a writing signed by the parties.
12.4    Assignment and Transfer.  The provisions of this Agreement shall be binding on and shall inure to the benefit of the Company and any successor in interest to the Company who acquires all or substantially all of the Company’s assets.  Neither this Agreement nor any of the rights, duties or obligations of Executive shall be assignable by Executive, nor shall any of the payments required or permitted to be made to Executive by this Agreement be encumbered, transferred or in any way anticipated, except as required by applicable laws.  All rights of Executive under this Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, estates, executors, administrators, heirs and beneficiaries.

Exhibit 10.1

12.5    Waiver of Breach.  A waiver by either party of any breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any other or subsequent breach by the other party.
12.6    Reporting and Withholding.  The Company shall be entitled to report all income and withhold from any amounts to be paid or benefits provided to Executive hereunder any federal, state, local or foreign income tax withholding, FICA contributions, Medicare contributions, or other taxes, charges or deductions which it is from time to time required to withhold or that Executive has authorized the Company to withhold.   The Company shall be entitled to rely on an opinion of counsel if any question as to the amount or requirement of any such withholding shall arise.
12.7    Code Section 409A.  Notwithstanding anything to the contrary contained in this Agreement:
(a)    The parties agree that this Agreement shall be interpreted to comply with or, to the extent possible, be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations and guidance promulgated thereunder to the extent applicable (collectively “Code Section 409A”), and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A.  Except to the extent attributable to a breach of this Agreement by the Company, in no event whatsoever will the Company be liable for any additional tax, interest or penalties that may be imposed on Executive under Code Section 409A or any damages for failing to comply with Code Section 409A.
(b)    A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits considered “nonqualified deferred compensation” under Code Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  If Executive is deemed on the date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered nonqualified deferred compensation under Code Section 409A payable on account of a “separation from service,” if no exemption or exclusion from Section 409 (A) is determined to apply, such payment or benefit shall not be made or provided until the date which is the earlier of (i) the expiration of the six (6)-month period measured from the date of such “separation from service” of Executive, and (ii) the date of Executive’s death (the “Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 12.7(b) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed on the first business day following the expiration of the Delay Period to Executive in a lump sum with interest at the prime rate during the Delay Period, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates and in the normal payment forms specified for them herein.

Exhibit 10.1

(c)    With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits, to be provided in any other taxable year, provided that this clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Internal Revenue Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect and (iii) such payments shall be made on or before the last day of Executive’s taxable year following the taxable year in which the expense occurred.
(d)    For purposes of Code Section 409A, Executive’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company, unless provided otherwise herein.
12.8    Arbitration.  
(a)    Executive and Cedar Fair agree that, except as provided in Section 12.8(h) below, any dispute, claim, or controversy between them, including without limitation disputes, claims, or controversies arising out of or relating to this Agreement or Executive’s employment with Cedar Fair or the termination of that employment, shall be settled exclusively by final and binding arbitration.  Judgment upon the award of the arbitrators may be entered and enforced in any federal or state court having jurisdiction over the parties. Executive and Cedar Fair expressly acknowledge that this agreement to arbitrate applies without limitation to any disputes, claims or controversies between them, including without limitation claims of unlawful discrimination (including without limitation claims under Title VII, the Age Discrimination in Employment Act, the Americans with Disabilities Act and all amendments to those statutes, as well as state anti-discrimination statutes), harassment, whistleblowing, retaliation, wrongful discharge, constructive discharge, claims related to the payment of wages or benefits, contract claims, and tort claims under federal, state, or local law, whether created by statute or the common law. By agreeing to submit any and all claims to arbitration (except as set forth in Section 12.8(h) below), Executive and Cedar Fair expressly waive any right that they may have to resolve any disputes, claims, or controversies through any other means, including a jury trial or bench trial.
(b)    The arbitration shall be conducted by a panel of three (3) arbitrators in accordance with the Employment Arbitration Rules of the American Arbitration Association (“AAA”) except as provided in this Agreement. Within twenty (20) days after notice from one party to the other of the notifying party’s election to arbitrate, each party shall select one (1) arbitrator. Within twenty (20) days after the selection of the two (2) arbitrators by the parties, said arbitrators shall in turn select a third arbitrator. If the two (2) arbitrators cannot agree upon the selection of a third arbitrator, the parties agree that the third arbitrator shall be appointed by the AAA in accordance with AAA’s arbitrator selection procedures, including the provision of a list of potential arbitrators to both parties.  Each member of the panel shall be a lawyer admitted to practice law for a minimum of 15 years.

Exhibit 10.1

  
(c)    Executive and Cedar Fair waive their right to file any arbitration on a class or collective basis; both Executive and Cedar Fair agree to file any arbitration only on an individual basis and agree not to file any arbitration as a representative of any class or group of others.  Therefore, neither Executive nor Cedar Fair will seek to certify a class or collective arbitration or otherwise seek to proceed in arbitration on a representative basis, and the arbitrators shall have no authority to conduct a proceeding as a class or collective action or to award any relief to a class of employees.   Nor shall Executive or Cedar Fair participate in any class or collective action involving claims covered by this Agreement, but instead shall arbitrate all claims covered by this Agreement on an individual basis.  
(d)    The arbitration panel shall have authority to award any remedy or relief that an Ohio or federal court in Ohio could grant in conformity with applicable law on the basis of the claims actually made in the arbitration. The arbitration panel shall not have the authority either to abridge or change substantive rights available under existing law.  Notwithstanding the above, any remedy for an alleged breach of the Agreement, wrongful discharge, or constructive discharge, or claims related to compensation and benefits will be governed solely by the applicable provisions of this Agreement, with no right to compensatory, punitive, or equitable relief. Further notwithstanding the foregoing, given the nature of Executive’s position with Cedar Fair, the arbitrator shall not have the authority to order reinstatement, and Executive waives any right to reinstatement to the full extent permitted by law.  
(e)    The arbitrator may award attorneys’ fees and costs to the extent authorized by statute.  The arbitration panel shall issue a written award listing the issues submitted by the parties, together with a succinct explanation of the manner in which the panel resolved the issues. The costs of the arbitration panel shall be borne by the parties in accordance with the Employment Arbitration Rules of the AAA.  
(f)All arbitration proceedings, including the arbitration panel’s decision and award, shall be confidential. Neither party shall disclose any information or evidence adduced by the other in the arbitration proceedings, or the panel’s award except (i) to the extent that the parties agree otherwise in writing; (ii) as necessary in any subsequent proceedings between the parties, such as to enforce the arbitration award; or (iii) as otherwise compelled by law.
(g)The terms of this arbitration Agreement are severable. The invalidity or unenforceability of any provisions herein shall not affect the application of any other provisions. This Agreement to arbitrate shall be governed by the Federal Arbitration Act.  The claims, disputes, and controversies submitted to arbitration will be governed by Ohio law and applicable federal law.  The arbitrators shall have exclusive jurisdiction to decide questions concerning the interpretation and enforceability of this Agreement to arbitrate, including but not limited to questions of whether the parties have agreed to arbitrate a particular claim, whether a binding contract to arbitrate has been entered into, and whether the Agreement to arbitrate is unconscionable or otherwise unenforceable; provided however, that it is agreed that the arbitrators shall have no authority to decide any questions as to whether the waiver of class and collective actions is valid or enforceable and all questions of the validity or enforceability of the waiver shall be decided by a court, not the arbitrators, and the court shall stay any arbitration that 

Exhibit 10.1

purports to proceed as a class or collective action or where the claimant in the arbitration seeks to otherwise act in a representative capacity. 
           (h)      The parties agree and acknowledge that the promises and agreements set forth in Sections 8.1 (Confidentiality) and 8.2 (Non-Competition) of this Agreement shall not be subject to the arbitration provisions set forth in this Section 12.8, but rather such claims may be brought in any federal or state court of competent jurisdiction. This Agreement to arbitrate does not apply to claims arising under federal statutes that prohibit pre-dispute arbitration agreements.  This Agreement to arbitrate does not preclude Executive from filing a claim or charge with a governmental administrative agency, such as the National Labor Relations Board, the Department of Labor, and the Equal Employment Opportunity Commission, or from filing a workers’ compensation or unemployment compensation claim in a statutorily-specified forum.
12.9      Code Section 280G. Anything in this Agreement to the contrary notwithstanding, Executive and Cedar Fair agree that in no event shall the present value of all payments, distributions and benefits provided to Executive or for Executive’s benefit pursuant to the terms of this Agreement or otherwise which constitute a “parachute payment” when aggregated with other payments, distributions, and benefits which constitute “parachute payments,” exceed two hundred ninety-nine percent (299%) of Executive’s “base amount.”  As used herein, “parachute payment” has the meaning ascribed to it in Section 280G(b)(2) of the Code, without regard to Code Section 280G(b)(2)(A)(ii); and “base amount” has the meaning ascribed to it in Code Section 280G and the regulations thereunder.  If the “present value” as defined in Code Sections 280G (d) (4) and 1274(b) (2), of such aggregate “parachute payments” exceeds the 299% limitation set forth herein, such payments, distributions and benefits shall be reduced by Cedar Fair in accordance with the order of priority set forth below so that such reduced amount will result in no portion of the payments, distributions and benefits being subject to excise tax.  Such payments, distributions and benefits will be reduced by Cedar Fair in accordance with the following order of priority  (A) reduction of cash payments; (B) cancellation of accelerated vesting of unit awards; and (C) reduction of employee benefits. If acceleration of vesting of unit award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Executive's unit awards. 

12.10    Indemnification; Liability Insurance. To the extent provided in the Company’s Code of Regulations and Certificate of Incorporation, the Company shall indemnify Executive for losses or damages incurred by Executive as a result of all causes of action arising from Executive's performance of duties for the benefit of the Company, whether or not the claim is asserted during the Employment Period.  Executive shall be provided with the same level of directors and officers liability insurance coverage provided to other directors and officers of the Company on the same terms and conditions applicable to such other directors and officers.
12.11    Governing Law.  This Agreement shall be construed under and enforced in accordance with the laws of the State of Ohio, without regard to the conflicts of law provisions thereof.

Exhibit 10.1

  
12.12    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and shall have the same effect as if the signatures hereto and thereto were on the same instrument.
12.13    Compliance with Dodd-Frank.  The Company and the Executive acknowledge and agree that it is the intent of both parties that this Agreement comply with all applicable laws, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act.  In accordance with the foregoing sentence, the Company and Executive agree to enter into any amendments to this Agreement from time to time, as may be necessary to comply with all applicable laws, including, without limitation, any incentive compensation policy established from time to time by the Company to comply with Dodd-Frank Wall Street Reform and Consumer Protection Act.
    
[Remainder of Page Intentionally Left Blank]

Exhibit 10.1

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.
Cedar Fair, L.P.

By:    _________________________________
Name:     
Title:    

Cedar Fair Management, Inc.

By:    _________________________________
Name:     
Title:    

Magnum Management Corp.

By:    _________________________________
Name:     
Title:    

EXECUTIVE

_________________________________ 

Exhibit 10.1

Exhibit A
RELEASE AGREEMENT
This RELEASE AGREEMENT (this "Agreement") dated ________ ___, _____, is made and entered into by and between Cedar Fair, L.P., a publicly traded Delaware limited partnership, Cedar Fair Management, Inc., an Ohio Corporation (“Cedar Fair Management”), Magnum Management Corporation, an Ohio corporation (“Magnum”) and ________________ (the “Employee”).
WHEREAS, Cedar Fair, L.P. is affiliated with several corporations and partnerships including, without limitation, Cedar Fair Management and Magnum (collectively, “Cedar Fair” or the “Company”);
WHEREAS, the Company and the Employee previously entered into an Employment Agreement dated ____________ (the “Employment Agreement”); and
WHEREAS, the Employee’s employment with Magnum and the Company has terminated effective _______ __, ____.
NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein and in the Employment Agreement, the Company and the Employee agree as follows:
		
	1.
	General Release and Waiver of Claims.

a.In consideration of Employee’s right to receive the severance payments and benefits set forth in Sections [6.1(b), (d), and (e)] References to be used in connection with a termination without Cause or for Good Reason or as a result of Disability. /[Sections 6.1(d) and the last sentence of 6.2  ]22 References to be used in connection with a termination as a result of death/[Sections 6.1 (e)  and  6.3(y)]33 References to be used in connection with a termination as a result of application of Section 6.3. of the Employment Agreement, the Employee, on behalf of himself and his heirs, executors, administrators, trustees, legal representatives, successors and assigns (hereinafter collectively referred to for purposes of this Section 1 as “Employee”), hereby agrees to irrevocably and unconditionally waive, release and forever discharge the Company and its past, present and future affiliates and related entities, parent and subsidiary corporations, divisions, shareholders, predecessors, current, former and future officers, directors, employees, trustees, fiduciaries, administrators, executives, agents, representatives, successors and assigns (collectively, the “Company Released Parties”) from any and all waivable claims, charges, demands, sums of money, actions, rights, promises, agreements, causes of action, obligations and liabilities of any kind or nature whatsoever, at law or in equity, whether known or unknown, existing or contingent, suspected or unsuspected, apparent or concealed, foreign or domestic (hereinafter collectively referred to as “claims”) which he has now or in the future may claim to have against any or all of the Company Released Parties based upon or arising out of any facts, acts, conduct, omissions, transactions, occurrences, contracts, claims, events, causes, matters or things of any conceivable kind or character existing or occurring or claimed to exist or to have occurred prior to the date of the Employee’s execution of this Agreement.  Such claims include, without limitation, claims arising under the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq.; Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.; the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq.; the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.; the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq.; the Equal Pay Act of 1963, 29 U.S.C. § 206(d); Section 806 of the Corporate and Criminal Fraud Accountability Act of 2002, 18 U.S.C. § 1681
_________________________________ 
1 References to be used in connection with a termination without Cause or for Good Reason or as a result of Disability. 
2 References to be used in connection with a termination as a result of death
3 References to be used in connection with a termination as a result of application of Section 6.3.

Exhibit 10.1

et seq.; the Fair Credit Reporting Act, 15 U.S.C. §1681 et seq.; any other federal, state or local statutory laws relating to employment, discrimination in employment, termination of employment, wages, benefits or otherwise; or any other federal, state or local constitution, statute, rule, or regulation, including, but not limited to, any ordinance addressing fair employment practices; any claims for employment or reemployment by the Company Released Parties; any common law claims, including but not limited to actions in tort, defamation and breach of contract; any claim or damage arising out of Employee’s employment with or separation from the Company Released Parties (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; and any and all claims for counsel fees and cost.

b.To the fullest extent permitted by law, and subject to the provisions of Section 1.d and 1.e below, Employee represents and affirms that he has not filed or caused to be filed on his behalf any claim for relief against any of the Company Released Parties or any releasee and, to the best of his knowledge and belief, no outstanding claims for relief have been filed or asserted against the Company Released Parties or any releasee on his behalf. In the event Employee has filed or caused to be filed on his behalf any such claim for relief, he shall promptly withdraw and dismiss such claim with prejudice.

c.In waiving and releasing any and all waivable claims whether or not now known, Employee understands that this means that, if he later discovers facts different from or in addition to those facts currently known by him, or believed by him to be true, the waivers and releases of this Agreement will remain effective in all respects - despite such different or additional facts and his later discovery of such facts, even if he would not have agreed to this Agreement if he had prior knowledge of such facts.

d.Nothing in this Section 1, or elsewhere in this Agreement, prevents or prohibits Employee from filing a claim with a government agency, such as the U.S. Equal Employment Opportunity Commission, that is responsible for enforcing a law on behalf of the government. However, Employee understands that, because Employee is waiving and releasing, among other things, any and all claims for monetary damages and any other form of personal relief (per Section 1.a above), Employee may only seek and receive non-monetary forms of relief through any such claim.

e.Nothing in this Section 1, or elsewhere in this Agreement, is intended as, or shall be deemed or operate as, a release by the Employee (i) of any claims for payments to which  the Employee is entitled under the express language of Section 6 of the Employment Agreement, (ii) of any claims for vested benefits (e.g., medical or 401(k) benefits) and (iii) of any right that the Employee had immediately prior to his termination of employment to be indemnified by any Company Released Party or to coverage under any directors and officers insurance policy and any run-off policy thereto.  

		
	2.
	No Admission of Liability.  It is understood that nothing in this Agreement is to be construed as an admission on behalf of the Company Released Parties of any wrongdoing with respect to the Employee, any such wrongdoing being expressly denied.  

		
	3.
	Acknowledgement of Waiver and Release of Claims Under ADEA.

a.The Employee acknowledges that, pursuant to Section 1 hereof, he is agreeing to waive and release any claims he may have under the Age Discrimination in Employment Act of 1967 (“ADEA”) and that he is doing so knowingly and voluntarily.  The Employee also acknowledges that the consideration given for the ADEA waiver and release under this Agreement is in addition to anything of value to which the Employee was already entitled.  The Employee further acknowledges that he has been advised by the Company, as required by the ADEA, that:

i.the ADEA waiver and release contained in this Agreement does not apply to any rights or claims that may arise after the date he signs this Agreement;

Exhibit 10.1

ii.he should consult with an attorney prior to signing this Agreement (although he may choose voluntarily not to do so);

iii.he has twenty-one (21) days within which to consider this Agreement (although he may choose voluntarily to sign it earlier);

iv.he has seven (7) days following the date he signs this Agreement to revoke this Agreement by delivering a written notice of such revocation to [PERSON/ADDRESS]; and

v.this Agreement shall not become effective or enforceable until the first day following the end of the seven-day revocation period; provided that the Employee has signed, returned and not revoked this Agreement in accordance with the terms hereof.

b.Nothing in this Agreement shall prevent the Employee from challenging or seeking a determination in good faith of the validity of the ADEA waiver and release contained in this Agreement, nor does it prevent the Employee from filing a charge with the EEOC to enforce the ADEA, nor does it impose any condition precedent, penalties or costs for doing so, unless specifically authorized by federal law.

		
	4.
	Miscellaneous.

a.Governing Law.  This Agreement will be governed by, and construed in accordance with, the laws of the State of Ohio without giving effect to its conflict of laws principles.

b.Consent to Jurisdiction.  Any action by the parties hereto related to this Agreement may be instituted in any state or federal court having proper subject matter jurisdiction located within the State of Ohio, or in any other court in which jurisdiction is otherwise proper.  Accordingly, the Company and the Employee irrevocably and unconditionally (a) submit to the jurisdiction of any such court and (b) waive (i) any objection to the laying of venue of any such action brought in such court and (ii) any claim that any such action brought in any such court has been brought in an inconvenient forum.

c.Prior Agreements.  Unless stated otherwise expressly herein, the terms and conditions of the Employment Agreement shall remain in full force and effect.

d.Construction.  There shall be no presumption that any ambiguity in this Agreement should be resolved in favor of one party hereto and against another party hereto.  Any controversy concerning the construction of this Agreement shall be decided neutrally without regard to authorship.

e.Counterparts.  This Agreement may be executed in any number of counterparts, each of which so executed will be deemed to be an original, and such counterparts will, when executed by the parties hereto, together constitute but one agreement.  Facsimile and electronic signatures shall be deemed to be the equivalent of manually signed originals.

THE UNDERSIGNED HAVE CAREFULLY READ THE FOREGOING AGREEMENT, KNOW THE CONTENTS THEREOF, FULLY UNDERSTAND IT, AND SIGN THE SAME AS HIS OR ITS OWN FREE ACT.

[Signature page to follow]

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day 

Exhibit 10.1

and year first set forth above.

Cedar Fair, L.P.

By:    _________________________________
Name:     
Title:    

Cedar Fair Management, Inc.

By:    _________________________________
Name:     
Title:    

Magnum Management Corp.

By:    _________________________________
Name:     
Title:    

EMPLOYEE

_________________________

Signature Page to ____________________ Release AgreementExhibit 4.8

 

Warrant Agreement

 

THIS WARRANT AGREEMENT
(the “Agreement”), dated [______], 2014, by and between Crossroads Systems, Inc., a Delaware corporation (the
“Company”) and American Stock Transfer & Trust Company, LLC, (the “Warrant Agent”).

 

1.          Definitions.
As used in this Agreement, the following terms shall have the respective definitions set forth in this Section 1. Capitalized terms
that are used and not defined in this Agreement that are defined in the Purchase Agreement (as defined below) shall have the respective
definitions set forth in the Purchase Agreement.

 

“Closing Price”
means, for any date of determination, the price determined by the first of the following clauses that applies: (i) if the Common
Stock is then listed or quoted on a Trading Market, the closing bid price per share of the Common Stock for such date (or the nearest
preceding date) on such market; (ii) if prices for the Common Stock are then quoted on the OTC Bulletin Board or OTC Quotation
Board, the closing bid price per share of the Common Stock for such date (or the nearest preceding date) so quoted; (iii) if prices
for the Common Stock are then reported in the “Pink Sheets” published by the National Quotation Bureau Incorporated
(or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the
Common Stock so reported; or (iv) in all other cases, the fair market value of a share of Common Stock as determined by an independent
qualified appraiser selected in good faith and paid for by the Company.

 

“Common Stock”
means the common stock of the Company, par value $0.001 per share, and any securities into which such common stock may hereafter
be reclassified.

 

“Exercise Price” means
$[_____], subject to adjustment in accordance with Section 10.

 

“Fundamental
Transaction” means any of the following: (i) the Company effects any merger or consolidation of the Company with or into
another person, (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions,
or (iii) any tender offer or exchange offer (whether by the Company or another person) is completed pursuant to which holders of
Common Stock are permitted to tender or exchange their shares for other securities, cash or property and that has been accepted
by holders of more than 50% of the Company’s Common Stock.

 

“Purchase
Agreement” means the Underwriting Agreement, dated [_____ __], 2014, to which the Company and Northland Securities, Inc.
are parties.

 

“Trading Day”
means (i) a day on which the Common Stock is traded on a Trading Market (other than the OTC Bulletin Board or OTC Quotation Board),
or (ii) if the Common Stock is not listed on a Trading Market (other than the OTC Bulletin Board or OTC Quotation Board), a day
on which the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board or OTC Quotation Board,
or (iii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter
market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding to its functions
of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in clauses (i), (ii)
and (iii) hereof, then Trading Day shall mean a Business Day.

 

“Trading Market”
means whichever of the New York Stock Exchange, NYSE AMEX, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ
Capital Market or the OTC Bulletin Board or OTC Quotation Board (or any successors to the foregoing), or any other national securities
exchange approved under Rule 146(b) promulgated under the U.S. Securities Act of 1933, as amended (“Securities Act”),
on which the Common Stock is listed or quoted for trading on the date in question.

 

2.          Global
Warrant Certificate. Each Common Stock Purchase Warrant (the “Warrant”) will certify that for value received,
the holder or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise
and the conditions hereinafter set forth, at any time on or after the date hereof (the “Original Issue Date”)
and on or prior to 5:30 p.m., New York City time, on the date that is three (3) years following the Original Issue Date (the “Expiration
Date”) but not thereafter, to subscribe for and purchase from the Company, up to an aggregate of [_____] shares for all
Warrants (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price per
share of Common Stock under the Warrant shall be equal to the Exercise Price, as defined in Section 1. The Warrants shall be represented
by one more Global Warrant Certificates (“Global Warrant Certificates”) registered in the name of Cede &
Co., as the nominee of the Depository Trust Company (the “Depository”), in substantially the form of Exhibit
A hereto, the provisions of which are incorporated herein and which shall be signed by, or bear the facsimile signature of,
an authorized officer of the Company.

 

    	- 1 -

    	 

    

 

3.          Registration
of Warrant; Beneficial Owner. The Warrant Agent shall register the Warrants upon records to be maintained by the Warrant Agent
for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company
and the Warrant Agent may deem and treat the registered Holder of the Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. The term “beneficial
owner” shall mean any person in whose name ownership of a beneficial interest in the Warrants evidenced by a Warrant is recorded
in the records maintained by the Depository or its nominee.

 

4.          Registration
of Transfers.

 

(a)         The
Warrant Agent shall register the transfer of any portion of the Warrant in the Warrant Register, upon surrender of the Warrant,
with the Form of Assignment attached hereto duly completed and signed, to the Warrant Agent at its address specified herein. Upon
any such registration or transfer, a new Warrant to purchase Common Stock, in substantially the form of the Warrant (any such new
Warrant, a “New Warrant”), evidencing the portion of the Warrant so transferred shall be issued to the transferee
and a New Warrant evidencing the remaining portion of the Warrant not so transferred, if any, shall be issued to the transferring
Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of
the rights and obligations of a holder of a Warrant.

 

(b)         The
transfer and exchange of beneficial ownership interests in Global Warrant Certificates shall be effected (i) through the Depository,
in accordance with this Agreement and the procedures of the Depository therefor or (ii) by institutions that have accounts with
the Depository (such institution, with respect to a Warrant in its account, a “Participant”).

 

5.          Exercise
and Duration of Warrants.

 

(a)         The
Warrant shall be exercisable by the registered Holder in whole at any time and in part from time to time from the Original Issue
Date through and including the Expiration Date, by delivering to the Warrant Agent (i) the Warrants to be exercised shown on the
records of the Depository to an account of the Warrant Agent at the Depository designated for such purpose in writing by the Warrant
Agent to the Depository from time to time, (ii) an Exercise Notice with respect to such Warrants to be exercised (in the form attached
hereto) (an “Exercise Notice”) properly delivered by the Participant in accordance with the Depository’s
procedures, and (iii) payment of the Exercise Price in accordance with Section 11. On the Expiration Date, the portion of the Warrant
not exercised prior thereto shall be and become void and of no value. The Company may not call or redeem any portion of the Warrant
without the prior written consent of the affected Holder.

 

(b)         The
number of Warrant Shares that may be acquired by the Holder upon any exercise of the Warrant (or otherwise in respect hereof) shall
be limited to the extent necessary to insure that, following such exercise (or other issuance), the total number of shares of Common
Stock then beneficially owned by such Holder and its affiliates (as defined under Rule 144, “Affiliates”) and
any other persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section
13(d) of the Exchange Act, does not exceed 19.999% (the “19.999% Ownership Limitation”) of the total number
of issued and outstanding shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise
but excluding any shares of Common Stock issuable upon (a) exercise of the remaining, unexercised portion of the Warrant beneficially
owned by such Holder and its Affiliates or (b) exercise or conversion of the unexercised or un-converted portion of any other securities
of the Company (including, without limitation any other shares of Common Stock or warrants) subject to a limitation on exercise
analogous to the limitation included in this Section 5(b) that are beneficially owned by such Holder or any of its Affiliates).
Except as described in the preceding sentence, for purposes of the Section 5(b), beneficial ownership shall be determined in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. This provision shall not restrict
the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities
or other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 10 of
this Agreement.

 

    	- 2 -

    	 

    

  

In addition to the
limitation contained in the preceding paragraph, (1) during any period of time in which a Holder’s beneficial ownership of
Common Stock is less than 10%, the number of Warrant Shares that may be acquired by such Holder upon any exercise of the Warrant
(or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise (or other issuance),
the total number of shares of Common Stock then beneficially owned by such Holder and its affiliates does not exceed 9.999% (the
“9.999% Ownership Limitation” (calculated as described in the first sentence of the preceding paragraph), and
(2) during any period of time in which a Holder’s beneficial ownership of Common Stock is less than 5%, the number of Warrant
Shares that may be acquired by such Holder upon any exercise of the Warrant (or otherwise in respect hereof) shall be limited to
the extent necessary to insure that, following such exercise (or other issuance), the total number of shares of Common Stock then
beneficially owned by such Holder and its affiliates does not exceed 4.999% (the “4.999% Ownership Limitation”
(calculated as described in the first sentence of the preceding paragraph). The 4.999% limitation may only be waived by the approval
of the Board of Directors of the Company (but such waiver shall not affect any other Holder). By written notice to the Company,
the Holder may waive the 9.99% Ownership Limitation, but any such waiver will not be effective until the 61st day after delivery
of such notice, nor will any such waiver effect any other Holder. The 19.999% Ownership Limitation may not be waived.

 

For purposes of Section
5(b), it understood that (1) that the Company is not representing to any Holder that any calculations required hereby are in compliance
with Section 13(d) of the Exchange Act and each Holder is solely responsible for any schedules required to be filed therewith and
(2) to the extent that the limitation contained in this Section 5(b) applies, the determination of whether this Warrant is exercisable
(in relation to other securities owned by such Holder) and of which portion of this Warrant is exercisable shall be in the sole
discretion of a Holder, and the submission of an Exercise Notice shall be deemed to be each Holder’s determination of whether
a Warrant is exercisable (in relation to other securities owned by such Holder) and of which portion of a Warrant is exercisable,
in each case subject to such aggregate percentage limitation, and the Company shall have no obligation to verify or confirm the
accuracy of such determination.

 

6.          Delivery
of Warrant Shares.

 

(a)         To
effect exercises hereunder, the Holder shall not be required to physically surrender the Warrant unless the aggregate Warrant Shares
represented by the Warrant are being exercised. Upon delivery of the Exercise Notice to the Warrant Agent (with the attached Warrant
Shares Exercise Log) at its address for notice set forth herein and upon payment of the Exercise Price multiplied by the number
of Warrant Shares that the Holder intends to purchase hereunder and the Warrant Agent shall promptly (but in no event later than
three Trading Days after the Date of Exercise (as defined herein)) issue and deliver to the Holder, a certificate for the Warrant
Shares issuable upon such exercise, which, unless otherwise required by the Purchase Agreement or unless a registration statement
is not then effective for the resale of the Warrant Shares or the Warrant Shares are not freely transferable without volume restrictions
under Rule 144, shall be free of restrictive legends. If the Warrant Shares may be delivered without restrictive legends, the Warrant
Agent shall deliver Warrant Shares hereunder electronically through the Depository or another established clearing corporation
performing similar functions, if available, to the Depository by crediting the account of the Depository or of the Participant
through its Deposit Withdrawal Agent Commission system.. A “Date of Exercise” means the date on which the Holder
shall have delivered to the Warrant Agent: (i) the Exercise Notice (with the Warrant Exercise Log attached to it), appropriately
completed and duly signed and (ii) if such Holder is not utilizing the cashless exercise provisions set forth in this Agreement,
payment of the Exercise Price for the number of Warrant Shares so indicated by the Holder to be purchased.

 

(b)         If
by the third Trading Day after the Company receives notice of the Warrant Agent receiving an Exercise Notice, the Company fails
to cause the Warrant Agent to deliver the required number of Warrant Shares in the manner required pursuant to Section 6(a), then
the Holder will have the right to rescind such exercise.

 

    	- 3 -

    	 

    

  

(c)         If
by the third Trading Day after the Company receives notice of the Warrant Agent receiving an Exercise Notice, the Company fails
to cause the Warrant Agent to deliver the required number of Warrant Shares in the manner required pursuant to Section 6(a), and
if after such third Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder
anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (1) pay in cash to the Holder
the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common
Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required
to deliver to the Holder in connection with the exercise at issue by (B) the closing bid price of the Common Stock at the time
of the obligation giving rise to such purchase obligation and (2) at the option of the Holder, either reinstate the portion of
the Warrant and equivalent number of Warrant Shares for which such exercise was not honored or deliver to the Holder the number
of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations
hereunder. The Holder shall provide the Warrant Agent written notice indicating the amounts payable to the Holder in respect of
the Buy-In.

 

(d)         The
Company’s obligations to cause the Warrant Agent to issue and deliver Warrant Shares in accordance with the terms hereof
are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent
with respect to any provision hereof, the recovery of any judgment against any person or any action to enforce the same, or any
setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other person
of any obligation to the Company or any violation or alleged violation of law by the Holder or any other person, and irrespective
of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance
of Warrant Shares. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at
law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver certificates representing Warrant Shares upon exercise of the Warrant as required pursuant to the terms
hereof.

 

(e)         If
the Warrant is exercised in part, the Warrant Agent shall, at the request of a Holder and upon surrender of the Warrant, at the
time of delivery of the certificate or certificates representing Warrant Shares, deliver to the Holder a new Warrant evidencing
the rights of the Holder to purchase the unpurchased Warrant Shares called for by the Warrant, which new Warrant shall in all other
respects be identical with the Warrant.

 

7.          Charges,
Taxes and Expenses. Issuance and delivery of Warrant Shares upon exercise of the Warrant shall be made without charge to the
Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the
issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company
shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates
for Warrant Shares or Warrants in a name other than that of the Holder. The Holder shall be responsible for all other tax liability
that may arise as a result of holding or transferring the Warrant or receiving Warrant Shares upon exercise hereof. The Company
shall pay all Warrant Agent fees required for same-day processing of any Notice of Exercise.

 

8.          Replacement
of Warrant. If the Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange
and substitution for and upon cancellation hereof, or in lieu of and substitution for the Warrant, a New Warrant, but only upon
receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity
(which shall not include a surety bond), if requested. Applicants for a New Warrant under such circumstances shall also comply
with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe.
If a New Warrant is requested as a result of a mutilation of the Warrant, then the Holder shall deliver such mutilated Warrant
to the Company as a condition precedent to the Company’s obligation to issue the New Warrant.

 

9.          Reservation
of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized
but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise
of the Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this
entire Warrant, free from preemptive rights or any other contingent purchase rights of Persons other than the Holder (taking into
account the adjustments and restrictions of Section 10). The Company covenants that all Warrant Shares so issuable and deliverable
shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly
authorized, issued and fully paid and nonassessable.

 

    	- 4 -

    	 

    

  

10.         Certain
Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of the Warrant are subject to adjustment
from time to time as set forth in this Section 10.

 

(a)          Stock
Dividends and Splits. If the Company, at any time while the Warrant is outstanding, (i) pays a stock dividend on its Common
Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides
outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a
smaller number of shares, then in each such case the Exercise Price shall be adjusted to equal the product obtained by multiplying
the then-current Exercise Price by a fraction of which the numerator shall be the number of shares of Common Stock outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record
date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause
(ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.

 

(b).         Reclassification,
etc. If at any time while the Warrant is outstanding, the Company, by reclassification of securities or otherwise, changes
the Common Stock issuable upon exercise of the Warrant into the same or a different number of shares of any class or classes of
securities (other than a merger or consolidation contemplated by clause (i) of the definition of “Fundamental Transaction”),
the Warrant shall become exercisable for the same amount and kind of securities (and for the same aggregate Exercise Price) receivable
upon such reclassification that the Holder of the Warrant would have been entitled to receive upon the occurrence of such reclassification
if it had been, immediately prior to such reclassification, the holder of the number of Warrant Shares then issuable upon exercise
in full of the Warrant, and the per-share Exercise Price therefor shall be appropriately adjusted.

 

(c)          Fundamental
Transactions. If, at any time while the Warrant is outstanding there is a Fundamental Transaction, then the Holder shall have
the right thereafter to receive, upon exercise of the Warrant, the same amount and kind of securities, cash or property as it would
have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental
Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of the Warrant (the “Alternate
Consideration”). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of the Warrant following such Fundamental
Transaction. At the Holder’s option and request and upon surrender of the Holder’s Warrant, any successor to the Company
or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant substantially in the form of the Warrant
and consistent with the foregoing provisions and evidencing the Holder’s right to purchase the Alternate Consideration for
the aggregate Exercise Price upon exercise thereof. The terms of any agreement pursuant to which a Fundamental Transaction is effected
shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph (c) and insuring
that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental
Transaction. In the event of a Fundamental Transaction other than one in which the consideration consists of only cash and/or stock
quoted or listed for trading on a Trading Market (“Public Stock”), the Company or the successor entity shall,
at the Holder’s option and request and upon surrender of the Holder’s Warrant, purchase the Warrant from the Holder
for a purchase price, payable in cash within five Trading Days after such request (or, if later, on the effective date of the Fundamental
Transaction), equal to the Black Scholes value of the remaining unexercised portion of the Warrant on the date of such request.
Notwithstanding anything in this Section 10(c) to the contrary, if at any time while this Warrant is outstanding, the Company engages
in any Fundamental Transaction in which the holders of Common Stock receive in exchange for their shares of Common Stock only cash
and/or Public Stock, then the Holder of this Warrant shall only be entitled to receive only an amount of cash or Public Stock (as
applicable) equal to (or in the case of Public Stock, having a fair market value equal to) (i) (A) the amount of cash (or fair
market value of the number of shares of Public Stock) payable in such Fundamental Transaction to the holders of Common Stock for
each share of Common Stock held; less (B) the Exercise Price of this Warrant, as adjusted; multiplied by (ii) the number of Warrant
Shares issuable upon exercise of this Warrant, at the same time and on the same terms as the holders of Common Stock, and immediately
upon the receipt of such payment by the Holder this Warrant shall terminate.

 

    	- 5 -

    	 

    

  

(d)          Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 10, the number of Warrant
Shares that may be purchased upon exercise of the Warrant shall be increased or decreased proportionately, so that after such adjustment
the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise
Price in effect immediately prior to such adjustment.

 

(e)          Calculations.
All calculations under this Section 10 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account
of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(f)          De
Minimis Adjustments. No adjustment in the Exercise Price shall be required unless such adjustment would require an increase
or decrease of at least $0.01 in such price; provided, however, that any adjustment which by reason of this Section 10(f) is not
required to be made shall be carried forward and taken into account in any subsequent adjustments under this Section 10. No adjustment
need be made for a change in the par value or no par value of the Company’s Common Stock.

 

(g)          Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 10, the Company at its expense will promptly
compute such adjustment in accordance with the terms of the Warrant and prepare a certificate setting forth such adjustment, including
a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise
of the Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon
which such adjustment is based. Upon written request, the Warrant Agent will promptly deliver a copy of each such certificate to
the Holder.

 

(h)          Notice
of Corporate Events. In case any time: (1) the Company shall declare any cash dividend on its Common Stock; (2) the Company
shall pay any dividend payable in stock upon its Common Stock or make any distribution to the holders of its Common Stock; (3)
the Company shall offer for subscription pro rata to the holders of its Common Stock any additional shares of stock of any class
or other rights; (4) there shall be any capital reorganization, or reclassification of the capital stock of the Company, or consolidation
or merger of the Company with, or sale of all or substantially all of its assets to, another corporation; or (5) there shall be
a voluntary or involuntary dissolution, liquidation or winding up of the Company; then, in any one or more of said cases, the Company
shall give written notice to the Holder within the time period specified below. Such notice shall also specify the date as of which
the holders of Common Stock of record shall participate in such dividend, distribution or subscription rights, or shall be entitled
to exchange their Common Stock for securities or other property deliverable upon such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation or winding up, or conversion or redemption, as the case may be. Such written notice shall
be given at least 20 days prior to the action in question and not less than 20 days prior to the record date or the date on which
the Company’s transfer books are closed in respect thereto, except that the Company may delay such notice if its Board of
Directors determines, in good faith, that such notice would constitute premature disclosure of material non-public information
or would otherwise harm a legitimate business or financial objective of the Company. The Company shall have complied with this
Section 10(h) if it discloses within the necessary time period the required information in a press release or by filing the appropriate
form with the Securities and Exchange Commission.

 

11.         Payment
of Exercise Price. The Holder may pay the Exercise Price in one of the following manners:

 

(a)          Cash
Exercise. The Holder may deliver the Exercise Price in the form of a check payable to American Stock Transfer & Trust Company
LLC, or by wire transfer of immediately available funds to an account designated by the Warrant Agent; or

 

    	- 6 -

    	 

    

  

(b)          Cashless
Exercise. At a time when a registration statement permitting the Holder to resell the Warrant Shares is not then effective
or the prospectus forming a part thereof is not then available to the Holder for the resale of the Warrant Shares, then the Holder
may deliver an Exercise Notice to the Company at the address set forth in Section 13 of its election to utilize a cashless
exercise, in which event the Company shall issue to the Holder the number of Warrant Shares determined as follows:

 

X = Y [(A-B)/A]

where:

X = the
number of Warrant Shares to be issued to the Holder.

Y = the
number of Warrant Shares with respect to which the Warrant is being exercised.

A = the
average of the Closing Prices for the five Trading Days immediately prior to (but not including) the Exercise Date.

B = the
Exercise Price.

 

For purposes of Rule 144 promulgated under
the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction
shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced,
on the date the Warrant was originally issued.

 

(c)          Disposition
of Proceeds on Exercise of Warrants. The Warrant Agent shall promptly forward to the Company all monies received by the Warrant
Agent for the purchase of shares of Common Stock through the exercise of Warrants.

 

12.         No
Fractional Shares. No fractional shares of Warrant Shares will be issued in connection with any exercise of any Warrant. In
lieu of any fractional shares which would otherwise be issuable, the Company shall round up to the next whole share.

 

13.         Notices
under this Agreement. Any and all notices or other communications or deliveries hereunder (including, without limitation, any
Exercise Notice) shall be in writing and shall be deemed given and effective when delivered (i) if to the Company, at 11000 North
Mopac Expressway, Austin, Texas 78759, Attention: Chief Executive Officer and Chief Financial Officer, or such other headquarters
address as the Company may publicly disclose on its website or in its filings with the Securities and Exchange Commission, with
a copy (which shall not constitute notice) to Andrews Kurth LLP, 111 Congress Avenue, Suite 1700, Austin, Texas 78701, Fax: (512)
320-9292, Attention: J. Matthew Lyons and (ii) if to the Warrant Agent, at American Stock Transfer & Trust Company, LLC, 6201
15th Avenue, Brooklyn, NY 11219, Attention: Corporate Trust Department, Fax: (718) 765-8711. Any party to this Agreement may change
such address for notices by sending to the parties to this Agreement written notice of a new address for such purpose.

 

14.         Warrant
Agent. The Company’s transfer agent for its Common Stock, American Stock Transfer & Trust Company, LLC, shall serve
as the Warrant Agent. Upon thirty (30) days’ notice to the Holder (which may be satisfied by a press release or filing the
appropriate form with the Securities and Exchange Commission), the Company may appoint a new warrant agent. Any corporation into
which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to which the Company
or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially
all of its corporate trust or shareholders services business shall be a successor warrant agent under the Warrant without any further
act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class
mail, postage prepaid) to the Holder at the Holder’s last address as shown on the Warrant Register. The Warrant Agent is
hereby authorized to countersign and to deliver, in accordance with the terms of this Agreement, the Warrant Shares required to
be issued pursuant to the provisions of Section 6, and the Company, whenever required by the Warrant Agent, will supply the Warrant
Agent with certificates duly executed on behalf of the Company for such purpose. The Warrant Agent shall be liable under this Agreement
only for its own gross negligence, willful misconduct and bad faith. The Company agrees to indemnify the Warrant Agent and save
it harmless against any and all liabilities, including judgments, costs and reasonable counsel fees, for anything done or omitted
by the Warrant Agent in the execution of this Agreement except as a result of the Warrant Agent’s gross negligence, willful
misconduct or bad faith. The Warrant Agent shall have no responsibility with respect to the validity of this Agreement or any Warrant
(except its countersignature thereof), nor shall it be responsible for any breach by the Company of any covenant or condition contained
in this Agreement or in any Warrant. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform
the same upon the terms and conditions herein set forth and among other things, shall account promptly to the company with respect
to the Warrants exercised and concurrently account for, and pay to the Company, all moneys received by the Warrant Agent for the
purchase of shares of the Company’s Common stock through the exercise of Warrants. The Warrant Agent shall keep copies of
this Agreement available for inspection by holders of Warrants during normal business hours.

 

    	- 7 -

    	 

    

  

15. Miscellaneous.

 

(a)          Successors
and Assigns. This Agreement shall be binding on and inure to the benefit of the parties hereto and their respective successors
and assigns. Subject to the preceding sentence, nothing in this Agreement shall be construed to give to any Person other than the
Company and the Holder any legal or equitable right, remedy or cause of action under this Agreement.

 

(b)          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of
conflicts of law thereof.

 

(c)          Amendment.
From time to time, the Company and the Warrant Agent, without the consent of the Holders of the Warrants, may amend or supplement
this Agreement for certain purposes, including curing ambiguities, defects or inconsistencies, appointing a successor Warrant Agent,
or making any other change that does not adversely affect the rights of any Holder in any material respect. Any material
modification to the rights of the Holders or amendment that would materially and adversely affect the exercise rights of the Holders
may be made only if the Company has obtained the written consent of the Holders representing not less than a majority of the Warrant
Shares obtainable upon exercise of the Warrants then outstanding.

 

(d)          Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.

 

(e)          Severability.
In case any one or more of the provisions of this Agreement shall be invalid or unenforceable in any respect, the validity
and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby
and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

(f)          No
Rights as Stockholder Until Exercise. Prior to exercise of the Warrant, the Holder hereof shall not, by reason of by being
a Holder, be entitled to any rights of a stockholder with respect to the Warrant Shares.

 

(g)          Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of the
Warrant, pursuant to the terms hereof.

 

[signature page follows]

 

    	- 8 -

    	 

    

 

In witness whereof, the undersigned have
caused this Agreement to be duly executed as of the date first indicated above.

 

	 	Crossroads Systems, Inc.	 
	 	 	 	 
	 	By: 	 	 
	 	Name:  	 	 
	 	Its:	 	 
	 	American Stock Transfer & Trust Company, LLC	 
	 	 	 	 
	 	By: 	 	 
	 	Name:	 	 
	 	Its:	 	 

 

Signature Page — Crossroads Systems,
Inc.

Warrant Agent Agreement

 

    	 

    	 

    

 

EXHIBIT A

 

	Number	 	Crossroads Systems, INC.	 	Warrant
	 	 	THIS WARRANT WILL BE VOID IF NOT EXERCISED PRIOR	 	 
	 	 	TO 5:30 P.M. NEW YORK CITY TIME, [_______], 2017	 	 
	 	 	 	 	 

 

THIS
WARRANT IS SUBJECT TO CERTAIN EXERCISE LIMITATIONS SET FORTH IN THE WARRANT AGREEMENT BETWEEN THE COMPANY AND THE WARRANT AGENT.
CERTAIN OF THESE EXERCISE LIMITATIONS ARE RELATED TO THE COMPANY’S TAX BENEFIT PRESERVATION PLAN, DATED
AS OF MAY 23, 2014, BETWEEN THE COMPANY AND AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, AS RIGHTS AGENT, AS THE SAME MAY
BE AMENDED FROM TIME TO TIME (THE “TAX BENEFIT PLAN”), A COPY OF WHICH IS ON FILE AT THE PRINCIPAL EXECUTIVE
OFFICES OF THE COMPANY. THESE LIMITATIONS ARE INTENDED TO PRESERVE THE VALUE OF CERTAIN TAX ASSETS HELD BY THE COMPANY. PRIOR TO
EXERCISING THIS WARRANT, YOU ARE ENCOURAGED TO REFER TO THE WARRANT AGREEMENT AND THE TAX BENEFIT PLAN. THE COMPANY WILL MAIL TO
THE HOLDER OF THIS CERTIFICATE A COPY OF THE TAX BENEFIT PLAN WITHOUT CHARGE AFTER RECEIPT OF A WRITTEN REQUEST THEREFOR.

 

THIS CERTIFIES
THAT, for value received, the Depository Trust Company, or its nominee for the benefit of the beneficial owners hereof,
is the registered holder of a Warrant or Warrants expiring [__________], 2017 (the “Warrant”) to purchase one fully
paid and non-assessable share of common stock, $0.001 par value (“Shares”) of Crossroads Systems, Inc., a Delaware
corporation (the “Company”) for each Warrant evidenced by this Warrant Certificate. The Warrant entitles the holder
thereof to purchase from the Company, commencing upon the date of issuance, such number of Shares of the Company at the price of
$[______] per full Share (the “Exercise Price”), upon surrender of the Warrant, with a duly executed facsimile copy
of the Notice of Exercise Form attached hereto and payment of the Exercise Price at the office or agency of the Warrant Agent,
American Stock Transfer & Trust Company, LLC (the “Warrant Agent”), but subject to the conditions set forth herein
and in the Warrant Agreement between the Company and the Warrant Agent (the “Warrant Agreement”). The terms of the
Warrant Agreement are incorporated herein in their entirety. In the event of a conflict between this Warrant Certificate and the
Warrant Agreement, the terms of the Warrant Agreement shall control.

 

This Warrant will expire on the date first
written above if it is not exercised prior to such date by the registered holder pursuant to the terms of the Warrant Agreement.

 

No fraction of a Share will be issued upon
any exercise of a Warrant. If the holder of a Warrant would be entitled to receive a fraction of a Share upon any exercise of a
Warrant, the Company shall, at its option upon such exercise, round up to the nearest whole number the number of Shares to be issued
to such holder or pay a cash adjustment in respect of such fractional amount pursuant to the relevant provision of the Warrant
Agreement.

 

Warrant Certificates, when surrendered
at the office or agency of the Warrant Agent by the registered holder hereof in person or by attorney duly authorized in writing,
may be exchanged in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any service
charge, for another Warrant Certificate or Warrant Certificates of like tenor evidencing in the aggregate a like number of Warrants.

 

Upon due presentment for registration of
transfer of the Warrant Certificate at the office or agency of the Warrant Agent in the manner provided in the Warrant Agreement,
a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants shall
be issued to the transferee in exchange for this Warrant Certificate as provided in the Warrant Agreement.

 

The Company and the Warrant Agent may deem
and treat the registered holder as the absolute owner of this Warrant Certificate (notwithstanding any notation of ownership or
writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the registered holder, and for all
other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

 

This Warrant does not entitle the registered
holder to any of the rights of a stockholder of the Company.

 

	 	 	 	 	 	American Stock Transfer & Trust Company, LLC 
	 	 	 	 	 	 	 
	 	 	 	 	 	By:	 
	 	President	 	Secretary	 	 	Transfer Agent and Registrar Authorized Officer

 

    	 

    	 

    

  

EXERCISE NOTICE

 

The undersigned Holder hereby irrevocably
elects to purchase shares of Common Stock pursuant to the attached Warrant. Capitalized terms used herein and not otherwise defined
have the respective meanings set forth in the Warrant.

 

(1) The undersigned Holder hereby exercises
its right to purchase Warrant Shares pursuant to the Warrant.

 

(2) The Holder intends that payment of
the Exercise Price shall be made as (check one):

 

 ̈
“Cash Exercise” under Section 11

 ̈
“Cashless Exercise” under Section 11

 

(3) If the holder has elected a Cash Exercise,
the holder shall pay the sum of $____________ to the Company in accordance with the terms of the Warrant.

 

(4) Pursuant to this Exercise Notice, the
Company shall deliver to the holder Warrant Shares in accordance with the terms of the Warrant.

 

	Dated ______________ __, _____ 	Name of Holder:	 
	 	 	 
	 	(Print)	 
	 	By: 	 	 
	 	Its:	 	 
	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)	 

 

    	 

    	 

    

  

Warrant Shares Exercise Log

 

	Date	 	Number of Warrant

Shares Available

to be Exercised	 	Number of Warrant

Shares Exercised	 	Number of Warrant

Shares Remaining

to be Exercised
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 

    	 

    

 

FORM OF ASSIGNMENT

 

[To be completed and
signed only upon transfer of Warrant]

 

FOR VALUE RECEIVED, the undersigned hereby
sells, assigns and transfers unto the right represented by the attached Warrant to purchase shares of Common Stock to which such
Warrant relates and appoints ___________ attorney to transfer said right on the books of the Company with full power of substitution
in the premises.

 

Dated: __________ __, _______

	 	 	 
	 	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
	 	 	 
	 	 	Address of Transferee
	 	 	 
	 	 	Note: Address for Delivery may not be a P.O. box and must be a physical address where stock certificates may be delivered in connection with this purchase or any future stock issued through splits, warrant conversions or other circumstances. The delivery address may be a personal residence, or a broker dealer where the certificate would be deposited
	Attest:

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