Document:

Exhibit 10.1

 

JX LUXENTURE LIMITED

 

NEW 2022 EQUITY INCENTIVE PLAN

 

	1.	Purposes of the New 2022 EIP. JX Luxventure Limited, a non-resident domestic corporation incorporated in the Republic of the Marshall Islands (the “Company”) hereby establishes the JX LUXVENTURE LIMITED NEW 2022 EQUITY INCENTIVE PLAN (the “New 2022 EIP”). The purposes of this New 2022 EIP are to promote the long-term growth and profitability of the Company and its Affiliates by stimulating the efforts of Employees, Directors and Consultants of the Company and its Affiliates who are selected to be participants, aligning the long-term interests of participants with those of shareholders, heightening the desire of participants to continue in working toward and contributing to the success of the Company, attracting and retaining the best available personnel for positions of substantial responsibility, and generally providing additional incentive for them to promote the success of the Company’s business through the grant of Awards of or pertaining to shares of the Company’s Common Stock. The New 2022 EIP permits the grant of Incentive Share Options, Non-statutory Share Options, Restricted Shares, Restricted Share Units, Share Appreciation Rights, Performance Units and Performance Shares as the Administrator may determine.

 

	2.	Definitions. The following definitions will apply to the terms in the New 2022 EIP:

 

“Administrator”
means the Board or any of its Committees as will be administering the New 2022 EIP, in accordance with Section 4.

 

“Affiliate”
means any corporation, partnership, limited liability company, limited liability partnership, business trust, or other entity or person
controlling, controlled by or under common control of the Company, as determined by the Administrator in its sole discretion. For purposes
of this defined term, “control” means having the power to direct or appoint the management of a company and “controlled”
or “controlling” shall have correlative meanings. The term “Affiliate” shall include any business venture in which
the Company has a direct or indirect significant interest, as determined by the Administrator in its sole discretion.

 

“Applicable
Laws” means (i) laws of the Republic of the Marshall Islands as they relate to the Company and its Shares, (ii) the legal requirements
relating to the New 2022 EIP and the Awards under applicable provisions of the corporate, securities, tax and other laws, rules, regulations
and government orders of any jurisdiction applicable to Awards granted to its residents; and (iii) the rules of any applicable stock exchange,
of any jurisdiction applicable to Awards granted to residents therein.

 

“Award”
means, individually or collectively, a grant under the New 2022 EIP of Options, SARs, Restricted Shares, Restricted Share Units, Performance
Units or Performance Shares.

 

“Award
Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted
under the New 2022 EIP. The Award Agreement is subject to the terms and conditions of the New 2022 EIP.

 

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

 

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

 

	 	(i)	Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; provided however, that for purposes of this subsection, the following shall not constitute a Change in Control: (1) any acquisition of securities directly from the Company other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company; (2) any acquisition by the Company; or (3) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company; or

 

     

     

    

 

	 	(ii)	A change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” means directors who either (A) are Directors as of the effective date of the New 2022 EIP, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Directors at the time of such election or nomination (except where such election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company);

 

	 	(iii)	The consummation of the sale, transfer or other disposition by the Company of all or substantially all of the Company’s assets, except with respect to a sale, transfer or other disposition of assets to a Parent, Subsidiary, or Affiliate;

 

	 	(iv)	The consummation of a merger or consolidation of the Company with or into any other person, unless securities possessing more than 50% of the total combined voting power of the survivor’s or acquiror’s outstanding securities (or the securities of any parent thereof) are held by a person or persons who directly or indirectly held securities possessing more than 50% of the total combined voting power of the Company’s outstanding securities immediately prior to that transaction.

 

For avoidance of
doubt, a transaction will not constitute a Change in Control if: (i) its sole purpose is to change the jurisdiction of the Company’s
incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the
persons who held the Company’s securities immediately before such transaction.

 

“Code”
means the Internal Revenue Code of 1986, as amended. Any reference in the New 2022 EIP to a section of the Code will be a reference to
any successor or amended section of the Code.

 

“Committee”
means a committee or subcommittee of Directors or of other individuals satisfying Applicable Laws appointed by the Board in accordance
with Section 4 hereof.

 

“Common
Stock” means the common stock of the Company.

 

“Company”
means JX LUXVENURE LIMITED, a non-resident domestic corporation incorporated in the Republic of the Marshall Islands, or any successor
thereto. For purposes of the New 2022 EIP, the term “Company” shall include any present or future Parent and Subsidiary.

 

“Consultant”
means any person, including an advisor, engaged by the Company or any Affiliate of the Company to render services to such entity if: (i)
such person renders bona fide services to the Company or any Affiliate; (ii) the services rendered by such person are not in connection
with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for
the Company’s securities; and (iii) such person is a natural person who has contracted directly with the Company or any Affiliate
to render such services.

 

“Covered
Employee” means an employee who is a “covered employee” within the meaning of Section 162(m) of the Code.

 

    2

     

    

 

“Designated
Beneficiary” means the beneficiary designated by a Participant, in a manner determined by the Administrator, to receive amounts
due or exercise rights of the Participant in the event of the Participant’s death or, in the absence of an effective designation
by a Participant, the Participant’s estate.

 

“Director”
means a member of the Board or any board of directors (or similar governing authority) of any Affiliate, including a non-employee Director.

 

“Disability”
generally means total and permanent disability as determined by the Administrator in its discretion in accordance with uniform and non-discriminatory
standards adopted by the Administrator from time to time, but “Disability,” for purposes of an ISO, means total and permanent
disability as defined in Section 22(e)(3) of the Code.

 

“Employee”
means any person, including Officers and Directors, employed by the Company or any Affiliate of the Company. Neither service as a Director
nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Fair Market
Value” means, as of any date, the value of Common Stock determined as follows:

 

	 	(i)	If the Common Stock is listed on any established stock exchange or a national market system, including without limitation, any division or subdivision of the Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination or, if no closing price is reported on that date, the closing price on the next preceding date for which a closing price is reported, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

 

	 	(ii)	If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, including without limitation quotation through the over the counter bulletin board (“OTCBB”) quotation service administered by the Financial Industry Regulatory Authority (“FINRA”), the Fair Market Value of a Share will be the mean between the high bid and low asked prices for the Common Stock on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

 

	 	(iii)	In the absence of an established market for the Common Stock of the type described in (i) and (ii), above, the Fair Market Value will be determined in good faith by the Administrator, and to the extent Section 15 applies (a) with respect to ISOs, the Fair Market Value shall be determined in a manner consistent with Code Section 422 or (b) with respect to NSOs or SARs, the Fair Market Value shall be determined in a manner consistent with Code Section 409A.

 

“Grant
Date” means, for all purposes, the date on which the Administrator determines to grant an Award, or such other later date as
is determined by the Administrator, provided that the Administrator cannot grant an Award prior to the date the material terms of the
Award are established. Notice of the Administrator’s determination to grant an Award will be provided to each Participant within
a reasonable time after the Grant Date.

 

“Incentive
Share Option” or “ISO” means an Option that by its terms qualifies and is otherwise intended to qualify as an Incentive
Share Option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

 

    3

     

    

 

“Nonstatutory
Share Option” or “NSO” means an Option that by its terms does not qualify or is not intended to qualify as an ISO.

 

“Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder.

 

“Option”
means a share option granted pursuant to the New 2022 Plan.

 

“Optionee”
means the holder of an outstanding Option.

 

“Parent”
means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

 

“Participant”
means the holder of an outstanding Award.

 

“Performance
Period” means, in respect of a Performance Share or Performance Unit or Qualified Performance-Based Awards, the time period
during which the performance objectives or other vesting provisions must be met.

 

“Performance
Share” means an Award denominated in Shares which may vest in whole or in part upon attainment of performance goals or other
vesting criteria as the Administrator may determine pursuant to Section 10.

 

“Performance
Unit” means an Award which may vest in whole or in part upon attainment of performance goals or other vesting criteria as the
Administrator may determine and which may be settled for cash, Shares or other securities or a combination of the foregoing pursuant to
Section 10.

 

“Period
of Restriction” means the period during which Restricted Shares or Restricted Share Units are subject to forfeiture (such forfeiture
may be effected by way of redemption by the Company in respect of the Restricted Shares).

 

“New 2022
EIP” means this JX Luxventure Limited New 2022 Equity Incentive Plan.

 

“Qualified
Performance-Based Award” means an Award intended to qualify as “performance-based compensation” under Section 162(m)
of the Code.

 

“Restricted
Shares” means Shares awarded to a Participant subject to forfeiture (such forfeiture may be effected by way of redemption by
the Company) in accordance with Section 7.

 

“Restricted
Share Unit” means the right to receive one Share at or after the end of the Period of Restriction, which right is subject to
forfeiture in accordance with Section 8 of the New 2022 EIP.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Service
Provider” means an Employee, Director or Consultant.

 

“Share”
means a share of Common Stock, as adjusted in accordance with Section 13.

 

“Share
Appreciation Right” or “SAR” means the right to receive payment from the Company in an amount no greater
than the excess of the Fair Market Value of a Share at the date the SAR is exercised over a specified price fixed by the Administrator
in the Award Agreement, which shall not be less than the Fair Market Value of a Share on the Grant Date. In the case of a SAR which is
granted in connection with an Option, the specified price shall be the Option exercise price.

 

    4

     

    

 

“Subsidiary”
means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.

 

“Ten Percent
Owner” means any Service Provider who is, on the grant date of an ISO, the owner of Shares (determined with application of ownership
attribution rules of Section 424(d)) of the Code possessing more than 10% of the total combined voting power of all classes of shares
of the Company, or any Parent or Subsidiaries.

 

	3.	Shares Subject to the New 2022 EIP.

 

	 	a.	Shares Subject to the New 2022 EIP. Subject to the provisions of Section 13, the maximum aggregate number of Shares that may be issued under the New 2022 EIP is forty million (40,000,000) Shares.

 

	 	b.	Lapsed Awards. If an Award expires or becomes unexercisable without having been exercised in full or, with respect to Restricted Shares, Restricted Share Units, Performance Shares or Performance Units, is forfeited (such forfeiture may be effected by way of redemption by the Company in respect of Restricted Shares) in whole or in part to the Company, the unpurchased, forfeited, redeemed or unissued Shares (as the case may be) which were subject to the Award will become available for future grant or sale under the New 2022 EIP (unless the New 2022 EIP has terminated). With respect to SARs, only Shares actually issued pursuant to an SAR will cease to be available under the New 2022 EIP; all remaining Shares subject to the SARs will remain available for future grant or sale under the New 2022 EIP (unless the New 2022 EIP has terminated). Shares that are exchanged by a Participant or withheld by the Company to pay the full or partial exercise price of an Award or to satisfy tax withholding obligations with respect to an Award will become available for future grant or sale under the New 2022 EIP. Notwithstanding the foregoing, Shares that have actually been issued under the New 2022 EIP under any Award will not be returned to the New 2022 EIP and will not become available for future distribution under the New 2022 EIP; provided, however, that if Shares issued pursuant to Awards of Restricted Shares, Restricted Share Units, Performance Shares or Performance Units are forfeited (such forfeiture may be effected by way of redemption by the Company in respect of Restricted Shares) to the Company, such Shares will become available for future grant under the New 2022 EIP. To the extent an Award under the New 2022 EIP is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the New 2022 EIP. To the extent required by Section 162(m) of the Code in order for Awards to be exempt from the tax deduction limits thereof, Shares subject to Awards that are cancelled shall not be available for future grant or sale under the New 2022 EIP.

 

	 	c.	Share Reserve. The Company, during the term of this New 2022 EIP, will at all times reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of the New 2022 EIP.

 

	4.	Administration of the New 2022 EIP.

 

	 	a.	Procedure. The New 2022 EIP shall be administered by the Board or a Committee (or Committees) appointed by the Board, which Committee shall be constituted to comply with Applicable Laws. If and so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, the Board shall consider in selecting the Administrator and the membership of any committee acting as Administrator the requirements regarding: (i) “nonemployee directors” within the meaning of Rule 16b-3 under the Exchange Act; (ii) “independent directors” as described in the listing requirements for any share exchange on which Shares are listed; and (iii) Section 15(b)(i) of the New 2022 EIP, if the Company grants any Qualified Performance-Based Award. The Board may delegate the responsibility for administering the New 2022 EIP with respect to designated classes of eligible Participants to different committees consisting of two or more members of the Board, subject to such limitations as the Board or the Administrator deems appropriate. Committee members shall serve for such term as the Board may determine, subject to removal by the Board at any time.

 

    5

     

    

 

	 	b.	Powers of the Administrator. Subject to the provisions of the New 2022 EIP and the approval of any relevant authorities, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:

 

	 	i.	to determine the Fair Market Value;

 

	 	ii.	to select the Service Providers to whom Awards may be granted hereunder;

 

	 	iii.	to determine the type of Award and number of Shares to be covered by each Award granted hereunder;

 

	 	iv.	to approve forms of agreement for use under the New 2022Plan;

  

	 	v.	to determine the terms and conditions, not inconsistent with the terms of the New 2022 EIP, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on continued employment, continued service or performance criteria), any vesting acceleration (whether by reason of a Change of Control or otherwise) or waiver of forfeiture, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, will determine;

 

	 	vi.	to construe and interpret the terms of the New 2022 EIP and Awards granted pursuant to the Plan, including the right to construe disputed or doubtful New 2022 EIP and Award provisions;

 

	 	vii.	to prescribe, amend and rescind rules and regulations relating to the New 2022 EIP;

 

	 	viii.	to modify or amend each Award to the extent any modification or amendment is consistent with the terms of the New 2022 EIP, and does not materially impair the rights of any Participant unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company;

 

	 	ix.	to allow Participants to satisfy withholding tax obligations in such manner as prescribed in Section 14;

 

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

 

	 	xi.	to delay issuance of Shares or suspend Participant’s right to exercise an Award as deemed necessary to comply with Applicable Laws;

 

	 	xii	to the extent permitted by Applicable Laws, to delegate, as it may deem appropriate, to one or more executive officers of the Company the authority to grant Awards to Service Providers who are not Officers and Directors, and exercise such other powers under the New 2022 EIP as the Administrator may determine, in accordance with such guidelines as the Administrator shall set forth at any time or from time to time; and

 

	 	xiii.	to make all other determinations deemed necessary or advisable for administering the New 2022 EIP.

 

    6

     

    

 

	 	c.	Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations will be final and binding on all Participants and any other holders of Awards. Any decision or action taken or to be taken by the Administrator, arising out of or in connection with the construction, administration, interpretation and effect of the New 2022 EIP and of its rules and regulations, shall, to the maximum extent permitted by Applicable Laws, be within its absolute discretion (except as otherwise specifically provided in the New 2022 EIP) and shall be final, binding and conclusive upon the Company, all Participants and any person claiming under or through any Participant.

 

	5.	Authorization of Grants

 

	 	a.	Eligibility. NSOs, Restricted Shares, Restricted Share Units, SARs, Performance Units and Performance Shares may be granted to Service Providers either alone or in combination with any other Awards. ISOs may be granted as specified in Section 15(a) to employees of the Company, and of any Parent or Subsidiary.

 

	 	b.	General Terms of Awards.    Each grant of an Award shall be subject to all applicable terms and conditions of the New 2022 EIP (including but not limited to any specific terms and conditions applicable to that type of Award set out in the following Sections), and such other terms and conditions, not inconsistent with the terms of the New 2022 EIP, as the Administrator may prescribe. Any additional terms of an Award shall be set forth in an agreement evidencing the Award by and between the Company and the Participant.

 

	 	c.	Vesting Conditions. The Administrator may impose vesting schedules, limitations on transferability and forfeiture conditions on any Award granted under this New 2022 EIP as the Administrator in its sole discretion may deem advisable or appropriate, on the basis of such conditions, including but not limited to, achievement of Company-wide, business unit, or individual goals (including, but not limited to, continued status as a Service Provider), or any other basis the Administrator may determine in its discretion and provide for in the applicable Award Agreement. The Administrator, in its discretion, may accelerate the time at which any such restrictions will lapse or be removed. The Administrator may, in its discretion, also provide for such complete or partial exceptions to an employment or service restriction as it deems equitable.

 

	 	d.	Effect of Termination of Employment, Etc.    Except as otherwise provided in Section 13, unless the Administrator in its sole discretion shall at any time determine otherwise with respect to any Award, if the Participant’s employment or other association with the Company and its Affiliates ends for any reason, including because of the Participant’s employer ceasing to be an Affiliate, (a) any outstanding Option or SAR of the Participant shall cease to be exercisable in any respect not later than three (3) months following that event and, for the period it remains exercisable following that event, shall be exercisable only to the extent exercisable at the date of that event, and (b) any other outstanding Award of the Participant shall be forfeited or otherwise subject to return to or repurchase by the Company on the terms specified in the applicable Award Agreement. Military or sick leave or other bona fide leave shall not be deemed a termination of employment or other association, provided that it does not exceed the longer of three (3) months days or the period during which the absent Participant’s reemployment rights, if any, are guaranteed by statute or by contract.

 

	6.	Share Options.

 

	 	a.	Grant of Options. Subject to the terms and conditions of the New 2022 EIP, the Administrator, at any time and from time to time, may grant Options to Service Providers in such amounts as the Administrator will determine in its sole discretion. The Administrator may grant NSOs, ISOs, or any combination of the two. ISOs shall be granted in accordance with Section 15(a) of the New 2022 EIP.

 

    7

     

    

 

	 	b.	Option Award Agreement. Each Option shall be evidenced by an Award Agreement that shall specify the type of Option granted, the Option’s exercise price, the exercise date, the term of the Option, the number of Shares to which the Option pertains, vesting criteria and such other terms and conditions (which need not be identical among Participants) as the Administrator shall determine in its sole discretion. If the Award Agreement does not specify that the Option is to be treated as an ISO, the Option shall be deemed a NSO.

 

	 	c.	Exercise Price. The per Share exercise price for the Shares to be issued pursuant to exercise of an Option will be no less than the Fair Market Value per Share on the Grant Date. Notwithstanding the above or any other term in this New 2022 EIP or any Award Agreement, Shares shall be issued pursuant to exercise of an Option at a price at least equal to their par value.

 

	 	d.	Term of Options. The term of each Option will be stated in the Award Agreement. Unless terminated sooner in accordance with the New 2022 EIP or Award Agreement, no Option shall be exercisable on or after the fifth anniversary of the Grant Date.

 

	 	e.	Time and Form of Payment.

 

	 	i.	Exercise Date. Each Award Agreement shall specify how and when Shares covered by an Option may be purchased. The Award Agreement may specify waiting periods, the dates on which Options become exercisable or “vested” and, subject to the termination provisions of the Option, exercise periods. The Administrator may accelerate the exercisability of any Option or portion thereof.

 

	 	ii.	Exercise of Option. Any Option granted hereunder will be exercisable according to the terms of the New 2022 EIP and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share. An Option will be deemed exercised when the Company receives: (1) notice of exercise (in such form as the Administrator shall specify from time to time) from the person entitled to exercise the Option, and (2) full payment for the Shares with respect to which the Option is exercised (together with all applicable withholding taxes). Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan (together with all applicable withholding taxes). Shares issued upon exercise of an Option will be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse or a Designated Beneficiary. Until the Shares are issued (as evidenced by the appropriate entry in the records of the transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder will exist with respect to the Shares subject to the Option, notwithstanding the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 13.

 

	 	iii.	Payment. The Administrator will determine the acceptable form of consideration for exercising an Option, including the method of payment. Such consideration may consist entirely of:

 

	 	(1)	cash;

 

	 	(2)	check;

 

	 	(3)	to the extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, a promissory note;

 

    8

     

    

 

	 	(4)	other Shares, provided such Shares have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option will be exercised (such Shares will be repurchased by the Company at a repurchase price equal to their Fair Market Value);

 

	 	(5)	to the extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, in accordance with any broker-assisted cashless exercise procedures approved by the Company and as in effect from time to time;

 

	 	(6)	by asking the Company to withhold Shares from the total Shares to be delivered upon exercise equal to the number of Shares having a value equal to the aggregate exercise price of the Shares being acquired;

 

	 	(7)	any combination of the foregoing methods of payment; or

 

	 	(8)	such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws.

 

	 	f.	Forfeiture of Options. All unexercised Options shall be forfeited to the Company in accordance with the terms and conditions set forth in the Award Agreement and again will become available for grant under the New 2022 EIP.

 

	7.	Restricted Shares.

 

	 	a.	Grant of Restricted Shares. Subject to the terms and conditions of the New 2022 EIP, the Administrator, at any time and from time to time, may grant Restricted Shares to Service Providers in such amounts as the Administrator will determine in its sole discretion.

 

	 	b.	Restricted Shares Award Agreement. Each Award of Restricted Shares will be evidenced by an Award Agreement that will specify the Period of Restriction, the number of Shares granted, the purchase price of the Shares, if any, and the means of payment for the Shares, vesting criteria, transferability restrictions, and such other terms and conditions (which need not be identical among Participants) as the Administrator will determine in its sole discretion. Unless the Administrator determines otherwise, the Company’s designee as escrow agent will hold Restricted Shares until the restrictions on such Shares have lapsed. Any share certificates issued in respect of an Award of Restricted Shares shall be registered in the name of the Participant and, unless otherwise determined by the Administrator, deposited by the Participant, together with a signed share transfer instrument endorsed in blank, with the Company (or its designee).

 

	 	c.	Terms and Conditions.

 

	 	i.	Vesting Conditions. During the Period of Restriction, Restricted Shares shall be subject to forfeiture (such forfeiture may be effected by way of redemption by the Company pursuant to the Company’s amended and restated articles of association and bylaws as well as the Business Corporations Act of the Republic of the Marshall Islands (as amended) and the Participants whose Restricted Shares are redeemed grants their consent to such redemption in advance)) (including a right in the Company to repurchase Restricted Shares at less than the then Fair Market Value per Share) arising on the basis of such conditions as the Administrator may determine in its sole discretion. Any such risk of forfeiture may be waived or terminated, or the Period of Restriction shortened, at any time by the Administrator on such basis as it deems appropriate.

 

    9

     

    

 

	 	ii.	Sale Price. Subject to the requirements of the Applicable Laws, the Administrator shall determine the price, if any, at which Restricted Shares shall be sold or awarded to a Participant, which may vary from time to time and among Participants and which may be below the market value of such Shares at the date of grant or issuance.

 

	 	iii.	Voting Rights. During the Period of Restriction, Service Providers holding Restricted Shares granted hereunder may exercise full voting rights with respect to those Shares.

 

	 	iv.	Dividends and Other Distributions. During the Period of Restriction, Service Providers holding Restricted Shares will be entitled to receive all dividends and other distributions paid with respect to such Shares. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Restricted Shares with respect to which they were paid.

 

	 	v.	Transferability. Except as provided in the New 2022 EIP, Restricted Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction.

 

	 	d.	Removal of Restrictions. All restrictions imposed on Restricted Shares shall lapse and the Period of Restriction shall end upon the satisfaction of the vesting conditions imposed by the Administrator. Restricted Shares not previously forfeited will be released from escrow as soon as practicable after the last day of the Period of Restriction or at such other time as the Administrator may determine, but in no event later than the 15th day of the third month following the end of the year in which vesting occurred.

 

	8.	Restricted Share Units.

 

	 	a.	Grant of Restricted Share Units. Subject to the terms and conditions of the New 2022 EIP, the Administrator, at any time and from time to time, may grant Restricted Share Units to Service Providers in such amounts as the Administrator will determine in its sole discretion.

 

	 	b.	Restricted Share Units Award Agreement. Each Award of Restricted Share Units will be evidenced by an Award Agreement that will specify the number of Restricted Share Units granted, vesting criteria, form of payout, vesting criteria and such other terms and conditions (which need not be identical among Participants) as the Administrator will determine in its sole discretion.

 

	 	c.	Vesting Conditions. During the Period of Restriction, Restricted Shares Units shall be subject to forfeiture arising on the basis of such conditions as the Administrator may determine in its sole discretion. Any such risk of forfeiture may be waived or terminated, or the Period of Restriction shortened, at any time by the Administrator on such basis as it deems appropriate.

 

	 	d.	Time and Form of Payment. Upon satisfaction of the applicable vesting conditions, payment of vested Restricted Share Units shall occur in the manner and at the time provided in the Award Agreement, but in no event later than the 15th day of the third month following the end of the year in which vesting occurred. Except as otherwise provided in the Award Agreement, Restricted Share Units may be paid in cash (equal to the aggregate Fair Market Value of the Shares underlying the vested Restricted Share Units), Shares, or a combination thereof at the sole discretion of the Administrator. Restricted Share Units that are fully paid in cash will not reduce the number of Shares available for issuance under the New 2022 EIP.

 

    10

     

    

 

	9.	Share Appreciation Rights.

 

	 	a.	Grant of SARs. Subject to the terms and conditions of the New 2022 EIP, the Administrator, at any time and from time to time, may grant SARs to Service Providers in such amounts as the Administrator will determine in its sole discretion.

 

	 	b.	Award Agreement. Each SAR grant will be evidenced by an Award Agreement that will specify the exercise price, the number of Shares underlying the SAR grant, the term of the SAR, the conditions of exercise, vesting criteria and such other terms and conditions (which need not be identical among Participants) as the Administrator will determine in its sole discretion.

 

	 	c.	Exercise Price and Other Terms. The per Share exercise price for the exercise of an SAR will be no less than the Fair Market Value per Share on the Grant Date. No SAR shall be exercisable on or after the fifth anniversary of the Grant Date. Notwithstanding the above or any other term in this New 2022 EIP or any Award Agreement, Shares shall be issued pursuant to exercise of an SAR at a price at least equal to their par value.

 

	 	d.	Time and Form of Payment of SAR Amount. Upon exercise of a SAR, a Participant will be entitled to receive payment from the Company in an amount no greater than: (i) the difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times (ii) the number of Shares with respect to which the SAR is exercised. An Award Agreement may provide for a SAR to be paid in cash, Shares of equivalent value, or a combination thereof.

 

	10.	Performance Units and Performance Shares.

 

	 	a.	Grant of Performance Units and Performance Shares. Performance Units or Performance Shares may be granted to Service Providers at any time and from time to time, as will be determined by the Administrator, in its sole discretion. The Administrator will have complete discretion in determining the number of Performance Units and Performance Shares granted to each Participant.

 

	 	b.	Award Agreement. Each Award of Performance Units and Performance Shares will be evidenced by an Award Agreement that will specify the initial value, the Performance Period, the number of Performance Units or Performance Shares granted, and such other terms and conditions (which need not be identical among Participants) as the Administrator will determine in its sole discretion.

 

	 	c.	Value of Performance Units and Performance Shares. Each Performance Unit will have an initial value that is established by the Administrator on or before the Grant Date. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the Grant Date.

 

	 	d.	Vesting Conditions and Performance Period. The Administrator will set performance objectives or other vesting provisions (including, without limitation, continued status as a Service Provider) in its discretion which, depending on the extent to which they are met, will determine the number or value of Performance Units or Performance Shares that will be paid out to the Participant. The time period during which the performance objectives or other vesting provisions must be met will be called the “Performance Period.” After the applicable Performance Period has ended, the holder of Performance Units shall be entitled to receive payout on the number and value of Performance Units or Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives have been achieved.

 

	 	e.	Time and Form of Payment. After the applicable Performance Period has ended, the holder of Performance Units or Performance Shares will be entitled to receive a payout of the number of vested Performance Units or Performance Shares by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives or other vesting provisions have been achieved. Vested Performance Units or Performance Shares will be paid as soon as practicable after the expiration of the applicable Performance Period, but in no event later than the 15th day of the third month following the end of the year the applicable Performance Period expired. An Award Agreement may provide for the satisfaction of Performance Unit or Performance Share Awards in cash or Shares (which have an aggregate Fair Market Value equal to the value of the vested Performance Units or Performance Shares at the close of the applicable Performance Period) or in a combination thereof.

 

    11

     

    

 

	 	f.	Forfeiture of Performance Units and Performance Shares. All unvested Performance Units or Performance Shares will be forfeited to the Company on the date set forth in the Award Agreement, and again will become available for grant under the New 2022 EIP.

 

	11.	Leaves of Absence/Transfer Between Locations. Unless the Administrator provides otherwise or as required by Applicable Laws, vesting of Awards will be suspended during any unpaid leave of absence. An Employee will not cease to be an Employee in the case of (i) any approved leave of absence or (ii) transfers between locations of the Company or between the Company and any Affiliate.

 

	12.	Transferability of Awards. Unless otherwise provided in this New 2022 EIP or otherwise determined by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant. However, the Administrator may, at or after the grant of an Award other than an ISO, provide that such Award may be transferred by the recipient to a family member; provided, however, that any such transfer is without payment of any consideration whatsoever and that no transfer shall be valid unless first approved by the Administrator, acting in its sole discretion and as required by the articles of association of the Company. For this purpose, “family member” means any child, stepchild, grandchild, parent, stepparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the employee’s household (other than a tenant or employee), a trust in which the foregoing persons have more than fifty (50) percent of the beneficial interests, a foundation in which the foregoing persons (or the Participant) control the management of assets, and any other entity in which these persons (or the Participant) own more than fifty (50) percent of the voting interests. If the Administrator makes an Award transferable, such Award will contain such additional terms and conditions as the Administrator deems appropriate.

 

	13.	Adjustments; Dissolution or Liquidation; Merger or Change in Control.

 

	 	a.	Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, share split, reverse share split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the New 2022 EIP, shall appropriately adjust the number and kind of Shares that may be delivered under the New 2022 EIP, the Share-based limitations under Section 15(b), and/or the number, kind, and price of Shares covered by each outstanding Award.

 

	 	b.	Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each Participant as soon as practicable prior to the effective date of such proposed transaction. To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.

 

	 	c.	Change in Control. In the event of a Change in Control, any or all outstanding Awards may be assumed by the successor corporation on an equitable basis, which assumption shall be binding on all Participants. In the alternative, the successor corporation may substitute equivalent Awards (after taking into account the existing provisions of the Awards) on an equitable basis. The successor corporation may also issue, in place of outstanding Shares of the Company held by the Participant, substantially similar shares or other property subject to vesting requirements and repurchase restrictions no less favorable to the Participant than those in effect prior to the Change in Control.

 

    12

     

    

 

In the event that the successor corporation
does not assume or substitute for the Award, unless the Administrator provides otherwise, the Participant will fully vest in and have
the right to exercise all of his or her outstanding Options and SARs, including Shares as to which such Awards would not otherwise be
vested or exercisable, all restrictions on Restricted Shares and Restricted Share Units will lapse, and, with respect to Performance Shares
and Performance Units, all Performance Goals or other vesting criteria will be deemed achieved at target levels and all other terms and
conditions met. In addition, if an Option or SAR is not assumed or substituted in the event of a Change in Control, the Administrator
will notify the Participant in writing or electronically that the Option or SAR will be exercisable for a period of time determined by
the Administrator in its sole discretion, and the Option or SAR will terminate upon the expiration of such period.

 

For the purposes of this Section 13(c),
an Award will be considered assumed if, following the Change in Control, the Award confers the right to purchase or receive, for each
Share subject to the Award immediately prior to the Change in Control, the consideration (whether shares, cash, or other securities or
property) or, in the case of a SAR upon the exercise of which the Administrator determines to pay cash or a Performance Share or Performance
Unit which the Administrator can determine to pay in cash, the fair market value of the consideration, received in the Change in Control
by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration,
the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration
received in the Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the
consent of the successor corporation, provide for the consideration to be received upon the exercise of an Option or SAR or upon the payout
of a Restricted Share Unit, Performance Share or Performance Unit, for each Share subject to such Award (or in the case of Restricted
Share Units and Performance Units, the number of implied shares determined by dividing the value of the Restricted Share Units and Performance
Units, as applicable, by the per share consideration received by holders of Common Stock in the Change in Control), to be solely common
stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common
Stock in the Change in Control.

 

Notwithstanding anything in this Section
13(c) to the contrary, (A) an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will
not be considered assumed upon a Change in Control if the Company or its successor modifies any of such performance goals without the
Participant’s consent; provided, however, a modification to such performance goals only to reflect the successor corporation’s post-Change
in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption and (B) in the event of an involuntary
termination of services of a Service Provider for any reason other than death, Disability or cause within six (6) months following the
consummation of a Change in Control, any of his or her Awards assumed or substituted in the Change in Control which are subject to vesting
conditions and/or a right of repurchase in favor of the Company or a successor entity, shall accelerate in full. All such Accelerated
Awards shall be exercisable for a period of one (1) year following termination, but in no event after expiration date of such Award.

 

	14.	Tax Withholding.

 

	 	a.	Withholding Requirements. Prior to the issue or delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company will have the power and the right to deduct or withhold or cause to be deducted or withheld, or require a Participant to remit to the Company or its Affiliates, an amount sufficient to satisfy national, federal, state, provincial, local, foreign or other taxes required by Applicable Laws to be withheld with respect to such Award (or exercise thereof).

 

    13

     

    

 

	 	b.	Withholding Arrangements. The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by (without limitation) (i) paying cash, (ii) electing to have the Company withhold otherwise deliverable Shares having a Fair Market Value equal to the amount required to be withheld, or (iii) delivering to the Company already-owned Shares for repurchase having a Fair Market Value equal to the amount required to be withheld. The amount of the withholding requirement will be deemed to include any amount which the Administrator agrees may be withheld at the time the election is made. The Fair Market Value of the Shares to be withheld or delivered will be determined as of the date that the taxes are required to be withheld.

 

	 	15.	Provisions Applicable In the Event the Company or the Service Provider is Subject to U.S. Taxation.

 

	 	a.	Grant of Incentive Share Options. If the Administrator grants Options to Employees subject to U.S. taxation, the Administrator may grant such Employee an ISO and the following terms shall also apply:

 

	 	i.	Maximum Amount. Subject to the provisions of Section 13, to the extent consistent with Section 422 of the Code, not more than an aggregate of forty million (40,000,000) Shares may be issued as ISOs under the New 2022 EIP.

 

	 	ii.	General Rule. Only employees of the Company or any Parent or Subsidiary shall be eligible for the grant of ISOs. The ability of the Company to grant ISOs is subject to the shareholder approval requirement under the Code.

 

	 	iii.	Continuous Employment. Unless otherwise provided under the Code, the ISO will cease to be treated as an ISO unless the Optionee remains in the continuous employ of the Company or its Parent or Subsidiaries from the date the ISO is granted until not more than three months before the date on which it is exercised (or such longer periods as may be permitted by provisions in each Service Provider’s contract with the Company, such as the employment agreement, that predates this New 2022 EIP, or in the event termination is due to death or Disability). A leave of absence approved by the Company may exceed three (3) months if reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then on the first day following the first three (3) months of such leave, the Optionee’s employment will be deemed terminated for this purpose and any ISO held by the Optionee will cease to be treated as an ISO if not exercised within three (3) months after the deemed termination date.

 

	 	iv.	Award Agreement.

 

	 	(1)	The Administrator shall designate Options granted as ISOs in the Award Agreement. Notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which ISOs are exercisable for the first time by the Optionee during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars (U.S.$100,000), Options will not qualify as an ISO. For purposes of this section, ISOs will be taken into account in the order in which they were granted. The Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares are granted.

 

    14

     

    

 

	 	(2)	The Award Agreement shall specify the term of the ISO. The term shall not exceed five (5) years from the Grant Date.

 

	 	(3)	The Award Agreement shall specify an exercise price of not less than the Fair Market Value per Share on the Grant Date or one hundred ten percent (110%) of the Fair Market Value per Share on the Grant Date for Ten Percent Owners.

 

	 	(4)	The Award Agreement shall specify that an ISO is not transferable except by will, beneficiary designation or the laws of descent and distribution.

 

	 	v.	Form of Payment. The consideration to be paid for the Shares to be issued upon exercise of an ISO, including the method of payment, shall be determined by the Administrator in accordance with Section 6(e)(iii).

 

	 	vi.	Notice. In the event of any disposition of the Shares acquired pursuant to the exercise of an ISO within two years from the Grant Date or one year from the exercise date, the Optionee will notify the Company thereof in writing within thirty (30) days after such disposition. In addition, the Optionee shall provide the Company with such information as the Company shall reasonably request in connection with determining the amount and character of Optionee’s income, the Company’s deduction, and the Company’s obligation to withhold taxes or other amounts incurred by reason of a disqualifying disposition, including the amount thereof.

 

	 	b.	Performance-based Compensation. If the Company grants an Award as “performance-based compensation” for which it claims deductions that are subject to the Code Section 162(m) limitation on its U.S. tax returns, then the following terms shall control over any contrary provision contained in the New 2022 EIP and be applied in a manner consistent with the requirements of, and only to the extent required for compliance with, the exclusion from the limitation on deductibility of compensation under Section 162(m) of the Code:

 

	 	i.	Outside Directors. All grants of Awards intended to qualify as Qualified Performance-Based Awards and determination of terms applicable thereto shall be made by the Administrator or, if not all of the members thereof qualify as “outside directors” within the meaning of applicable regulations under Section 162 of the Code, a subcommittee of the Administrator consisting of such of the members of the Administrator as do so qualify. Any action by such a subcommittee shall be considered the action of the Administrator for purposes of the New 2022 EIP.

 

	 	ii.	Applicability.    This Section 15(b) will apply only to those Covered Employees, or to those persons who the Administrator determines are reasonably likely to become Covered Employees in the period covered by an Award, selected by the Administrator to receive Qualified Performance-Based Awards. The Administrator may, in its discretion, grant Awards not intended to qualify as Qualified Performance-Based Awards to Covered Employees that do not satisfy the requirements of this Section 15(b).

 

	 	iii.	Maximum Amount. Subject to the provisions of Section 13, the maximum number of Shares that can be subject to Awards granted to any individual Participant in the aggregate in any one fiscal year of the Company is one million (1,000,000) Shares. For purposes of this limitation:

 

	 	(1)	For Awards denominated in Shares and satisfied in cash, the maximum Award to any individual Participant in the aggregate in any one fiscal year of the Company is the Fair Market Value of one million (1,000,000) Shares on the Grant Date; and

 

    15

     

    

 

	 	(2)	The maximum amount payable pursuant to any cash Awards to any individual Participant in the aggregate in any one fiscal year of the Company is the Fair Market Value of one million (1,000,000) Shares on the Grant Date.

 

	 	iv.	Performance Criteria. All performance criteria must be objective and be established in writing prior to the beginning of the Performance Period or at later time as permitted by Section 162(m) of the Code and shall otherwise meet the requirements of Section 162(m) of the Code, including the requirement that the outcome of the performance goals be substantially uncertain (as defined in the regulations under Section 162(m) of the Code) at the time established. Performance criteria may include alternative and multiple performance goals and may be based on one or more business and/or financial criteria. In establishing the performance goals, the Committee in its discretion may include one or any combination of the following criteria in either absolute or relative terms, for the Company or any Subsidiary:

 

	 	(1)	Increased revenue;

 

	 	(2)	Net income measures (including but not limited to income after capital costs and income before or after taxes);

 

	 	(3)	Share price measures (including but not limited to growth measures and total shareholder return);

 

	 	(4)	Market share;

 

	 	(5)	Earnings per Share (actual or targeted growth);

 

	 	(6)	Earnings before interest, taxes, depreciation, and amortization (“EBITDA”);

 

	 	(7)	Cash flow measures (including but not limited to net cash flow and net cash flow before financing activities);

 

	 	(8)	Return measures (including but not limited to return on equity, return on average assets, return on capital, risk-adjusted return on capital, return on investors’ capital and return on average equity);

 

	 	(9)	Operating measures (including operating income, funds from operations, cash from operations, after-tax operating income, sales volumes, production volumes, and production efficiency);

 

	 	(10)	Expense measures (including but not limited to overhead cost and general and administrative expense);

 

	 	(11)	Margins;

 

	 	(12)	Shareholder value;

 

	 	(13)	Total shareholder return;

 

	 	(14)	Proceeds from dispositions;

 

	 	(15)	Total market value; and

 

	 	(16)	Corporate values measures (including but not limited to ethics compliance, environmental, and safety).

 

    16

     

    

 

	 	c.	Share Options and SARs Exempt from Section 409A of the Code. If the Administrator grants Options or SARs to Service Providers subject to U.S. taxation, the Company must qualify as an eligible issuer of service recipient shares within the meaning of Section 409A of the Code with respect to such Service Provider (unless the Option or SAR otherwise complies with Section 409A of the Code), and the Administrator may not modify or amend the Options or SARs to the extent that the modification or amendment adds a feature allowing for additional deferral within the meaning of Section 409A of the Code.

 

	16.	Grants to Foreign Nationals. Awards may be granted to Service Providers who are foreign nationals or employed outside the United States, or both, on such terms and conditions different from those applicable to grants to Services Providers in the United States as in the judgment of the Administrator may be necessary or desirable in order to recognize differences in local law or tax policy, and such Awards shall be considered granted pursuant to a non-U.S. sub-plan. The Administrator also may impose conditions on the exercise or vesting of Awards in order to minimize the company’s obligation with respect to tax equalization for employees on assignments outside their home country.

 

	17.	No Effect on Employment or Service. Neither the New 2022 EIP nor any Award will confer upon any Participant any right with respect to continuing the Participant’s relationship as a Service Provider with the Company or any Affiliate of the Company, nor will they interfere in any way with the Participant’s right or the Company’s or its Affiliates’ right to terminate such relationship at any time, with or without cause, to the extent permitted by Applicable Laws.

 

	18.	Effective Date. The effective date of the New 2022 EIP is the date on which it is adopted by the Board. The Company will obtain shareholder approval of the New 2022 EIP to the extent necessary and desirable to comply with Applicable Laws.

 

	19.	Term of New 2022 EIP. The New 2022 EIP will terminate ten (10) years following the date it was adopted by the Board, unless sooner terminated by the Board pursuant to Section 20.

 

	20.	Amendment and Termination of the New 2022 EIP.

 

	 	a.	Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the New 2022 EIP.

 

	 	b.	Shareholder Approval. The Company will obtain shareholder approval of any New 2022 EIP amendment to the extent necessary and desirable to comply with Applicable Laws.

 

	 	c.	Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the New 2022 EIP will impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company. Termination of the New 2022 EIP will not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

 

	21.	Conditions Upon Issuance of Shares.

 

	 	a.	Legal Compliance. The Administrator may delay or suspend the issuance and delivery of Shares, suspend the exercise of Options or SARs, or suspend the Plan as necessary to comply with Applicable Laws. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance.

 

	 	b.	Corporate Restrictions on Rights in Shares. Any Shares to be issued pursuant to Awards granted under the Plan shall be subject to all restrictions upon the transfer thereof which may be now or hereafter imposed by the memorandum and articles of association of the Company. In addition, either at the time an Award is granted or by subsequent action, the Administrator may, but need not, impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales or other subsequent transfers by a Participant, or a holder of Shares acquired pursuant to the Plan, of any Share issued under an Award, including without limitation (a) restrictions under an insider trading policy, (b) restrictions designed to delay and/or coordinate the timing and manner of sales by the Participant(s), and (c) restrictions as to the use of a specified brokerage firm for such resales or other transfers.

 

    17

     

    

 

	 	c.	Registration. If the Company shall deem it necessary or desirable to register under the Securities Act or other Applicable Law any Shares issued or to be issued pursuant to Awards granted under the Plan, or to qualify any such Shares for exemption from the Securities Act or other Applicable Law, then the Company may, but shall not be required to, take such action at its own expense. The Company may require from each Participant, or each holder of Shares acquired pursuant to the Plan, such information in writing for use in any registration statement, prospectus, preliminary prospectus or offering circular as is reasonably necessary for that purpose and may require reasonable indemnity to the Company and its officers and directors from that holder against all losses, claims, damage and liabilities arising from use of the information so furnished and caused by any untrue statement of any material fact therein or caused by the omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made. In addition, the Company may require any such person to agree to lock-up terms as the Company may deem advisable or appropriate.

 

	 	d.	Investment Representations. As a condition to the exercise of an Award, the Shares to be issued pursuant to such Award shall have been effectively registered under the Securities Act, or the Participant exercising such Award shall have made such written representations and warranties to the Company (upon which the Company believes it may reasonably rely) as the Administrator may deem necessary or appropriate for the purposes of confirming that the issuance of the Shares pursuant to such Award will be exempt from the registration requirements of the Securities Act and any applicable state securities laws and otherwise in compliance with all Applicable Laws, including but not limited to that the Participant is acquiring the Shares only for investment and without any present intention to sell or distribute such Shares.

 

	 	e.	Placement of Legends; Stop Orders; etc.    Each Share to be issued pursuant to Awards granted under the Plan may bear a reference to the investment representations made in accordance with Section 21(d) in addition to any other applicable restriction under the Plan, the terms of the Award and to the fact that no registration statement has been filed with the Securities and Exchange Commission in respect to such Shares. All certificates for Shares or other securities delivered under the Plan shall be subject to such share transfer orders and other restrictions as the Administrator may deem advisable under the rules, regulations, and other requirements of any share exchange upon which the Shares are then listed, and any Applicable Law, and the Administrator may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

	22.	Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority will not have been obtained.

 

	23.	Repricing; Exchange And Buyout of Awards. The repricing or termination and subsequent repricing of Options or SARs at a lower purchase price per Share than the original grant is permitted without prior shareholder approval. The Administrator may authorize the Company to issue new Option or SAR Awards in exchange for the surrender and cancellation of any or all outstanding Awards, subject to the consent of any Participant whose rights would be impaired. The Administrator may at any time repurchase Options with payment in cash, Shares or other consideration, based on such terms and conditions as the Administrator and the Participant shall agree.

 

	24.	Substitution and Assumption of Awards. The Administrator may make Awards under the Plan by assumption, substitution or replacement of performance shares, phantom shares, share awards, share options, Share Appreciation Rights or similar awards granted by another entity (including an Affiliate), if such assumption, substitution or replacement is in connection with an asset acquisition, share acquisition, merger, consolidation or similar transaction involving the Company (and/or its Affiliate) and such other entity (and/or its affiliate). The Administrator may also make Awards under the Plan by assumption, substitution or replacement of a similar type of award granted by the Company prior to the adoption and approval of the Plan. Notwithstanding any provision of the Plan (other than the maximum number of shares of Common Stock that may be issued under the Plan), the terms of such assumed, substituted or replaced Awards shall be as the Administrator, in its discretion, determines is appropriate.

 

	 	 	 

 Adopted by
the Board of Directors on October 26, 2022

 

18Exhibit 10.1

 

October 27, 2022

 

New Mountain Guardian IV BDC, L.L.C.

1633 Broadway, 48th Floor

 New York, New York 10019

 

Re:     New Mountain Guardian
IV BDC, L.L.C. –

Facility Increase and Advance Rate Amendment Letter

 

Ladies and Gentlemen:

 

Reference
is hereby made to the Loan Authorization Agreement dated as of May 9, 2022, between New Mountain Guardian IV BDC, L.L.C., a Delaware limited
liability company (the “Fund”), and BMO Harris Bank N.A. (the “Lender”) (as amended, restated, supplemented
or otherwise modified prior to date hereof, the “Loan Agreement”). All capitalized terms used but not defined herein
shall have the meanings assigned thereto in the Loan Agreement.

 

The
Fund has requested that the Lender agree, and the Lender has agreed in its sole discretion, to increase the Advance Rate and to
increase the Amount of Maximum Credit from $71,604,000 to $109,714,000, in each case, subject to the terms and conditions of the
Loan Agreement. The parties hereto agree that immediately prior to giving effect to this letter agreement (i) the Advance Rate under
the Loan Agreement is 45% and (ii) the Amount of Maximum Credit under the Loan Agreement is $71,604,000.

 

As of the
date hereof and until otherwise agreed to in writing by the Lender, the Loan Agreement shall be and hereby is amended as follows:

 

(i)                
The paragraph titled “Amount of Maximum Credit” set forth on the first page of the Loan Agreement shall be and
hereby is amended and restated in its entirety to read as follows:

 

Amount
of Maximum Credit: $109,714,000; provided, however, that the Lender may, if requested by the Fund, elect in its sole and
absolute discretion to increase the Amount of Maximum Credit to up to $250,000,000.00, it being understood that the Lender has no
obligation to increase the Amount of Maximum Credit at any time.

 

     

     

    

 

(ii)             
Section 7(c) of the Loan Agreement shall be and hereby is amended and restated in its entirety to read as follows:

 

(c) that the aggregate amount
of outstanding indebtedness of the Fund does not as of the date hereof and will not at any time hereafter exceed the 55% of the Fund’s
Remaining Capital Commitments (the “Advance Rate”); provided, however, that such availability is subject to
change solely at the Lender’s discretion upon notice to the Fund, and in the event such change requires a repayment of the Loans
or a portion thereof, the Fund shall have fifteen (15) Business Days to make such payment;

 

(iii)           
Exhibit B to the Loan Agreement shall be and hereby is amended and restated in its entirety to read as set forth on Annex A to
this letter agreement.

 

Except for
the amendments set forth herein, the Loan Agreement shall remain in full force and effect in accordance with its current terms. This letter
agreement is a Loan Document. Delivery of executed counterparts of this letter agreement by telecopy or by e-mail transmission of an Adobe
portable document format file (also known as a “PDF” file) shall be effective as originals.

 

This letter
agreement supersedes and replaces any other written agreement or prior oral discussion regarding the matters set forth herein. This letter
agreement shall be governed by the laws of the State of New York.

 

     

     

    

 

	 	Very
    truly yours,
	 	 
	 	BMO Harris Bank N.A.
	 	 
	 	By:	       
	 	Name:
    Jack Murphy
	 	Its:
    Vice President

 

[Signature Page to Letter Amendment (October 2022) – 

New Mountain Guardian IV BDC, L.L.C.]

 

     

     

    

 

Acknowledged and agreed to by:

 

	 	New Mountain Guardian IV
    BDC, L.L.C.
	 	 
	 	By:	            
	 	Name: Shiraz Kajee
	 	Its: Authorized Signatory

 

[Signature Page to Letter Amendment (October 2022) – 

New Mountain Guardian IV BDC, L.L.C.]

 

     

     

    

 

Annex
A to Letter Amendment

 

Exhibit
B

 

Certificate
of Status

of

New
Mountain Guardian IV BDC, L.L.C.

 

New
Mountain Guardian IV BDC, L.L.C., a Delaware limited liability company (the “Fund”),
does hereby certify that:

 

1.         
Rob Hamwee is the Chief Executive Officer of the Fund.

 

2.         
This Certificate is being delivered to BMO Harris Bank N.A. and its affiliates (collectively, the
“Lender”) in connection with, and may be relied upon by the Lender in connection with, its extension of credit from
time to time to the Fund.

 

3.         
The Fund has secured proper authorization to enter into the Loan Authorization Agreement between
the Fund and Lender dated as of May 9, 2022 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan
Authorization Agreement”), and to execute all instruments and documents in connection therewith (together with the Note, the
Security Agreement, the Control Agreement and the Adviser Letter Agreement, each as defined in the Loan Authorization Agreement, collectively,
the “Loan Documents”), in compliance with the Amended and Restated Limited Liability Company Agreement, dated as of
May 3, 2022 (as amended, restated, supplemented or otherwise modified from time to time, the “Fund’s LLC Agreement”;
all capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Fund’s LLC Agreement).
The Fund has incurred indebtedness, and will continue to incur indebtedness, only to the extent the same can be done in compliance with
the Fund’s LLC Agreement, including, without limitation, the limitations therein on indebtedness set forth in Section 4.2 thereof.

 

4.         

The aggregate amount of outstanding indebtedness of the Fund as of the date hereof is $                       .

 

5.
         
The aggregate amount of Capital Commitments to the Fund as of the date hereof is $                       .

 

6.         
The aggregate amount of outstanding guarantees, repurchase obligations and similar contingent obligations
on which the Fund is liable as of the date hereof is $                       .

 

7.
          
The aggregate amount of Remaining Capital Commitments to the Fund as of the date hereof is $                      .

 

8.         
The aggregate amount of Contributed Capital made by the Members to the Fund as of the date hereof
is $                      .

 

     

     

    

 

9.         
The stated termination date of the Investment Period is                    (leave blank if such date cannot be determined).

 

10.          
(a) The aggregate amount of outstanding indebtedness, guarantee, repurchase obligations and other similar obligations of the Fund
does not as of the date hereof and will not at any time hereafter exceed 55% of the Fund’s Remaining Capital Commitments (the “Advance
Rate”); provided, however, that such availability is subject to change solely at the Lender’s discretion upon notice
to the Fund, and in the event such change requires a repayment of the Loans (as defined the Loan Authorization Agreement) or a portion
thereof, the Fund shall have fifteen (15) Business Days (as defined in the Loan Authorization Agreement) to make such payment.

 

(b) As of the date hereof, the Fund is in compliance
with the terms of Section 4.2 of the Fund’s LLC Agreement.

 

11.          
The aggregate amount of investments of the Fund in any one Portfolio Company as of the date hereof do not and will not at any time
hereafter exceed the limitations set forth in Section 4.1(a) of the Fund’s LLC Agreement.

 

12.          
The aggregate amount of Drawdown Notices made on the Fund’s Members since the most recently completed fiscal quarter of
the Fund is $                       
.

 

13.          
The aggregate amount of distributions made by the Fund in respect of equity interests therein since the most recently completed
fiscal quarter of the Fund is $                       
.

 

14.          
We will promptly notify you (i) upon our becoming aware of the occurrence of any event which would give any one or more of our
Members the right to terminate or suspend its Capital Commitment, whether in whole or in part and whether or not contingent upon the passage
of time or the giving of notice or both, (ii) upon the occurrence of a Key Person Event or Alternative Key Person Event, (iii) upon becoming
aware of any action taken, or to be taken, which could result in the termination of the Investment Period, (iv) upon our becoming aware
of any event which would permit a Member to withdraw from the Fund, (v) upon our becoming aware of any event or agreement which would
excuse a Member from participating in any Drawdown Purchase relating to the Fund, (vi) of any assignment of a Member’s membership
interest in the Fund, (vii) of the failure of any Member to honor a Drawdown Notice that continues unremedied for ten (10) Business Days,
(viii) prior to approving the requested withdrawal of any Member (other than those previously disclosed to the Lender), (ix) of either
the Fund or Adviser being a named party in any material litigation, arbitration or other judicial or administrative proceeding, (x) of
receipt of a notice of default under an SPV Facility (as defined in the Loan Authorization Agreement), (xi) in writing fifteen (15) days
(or such shorter period as agreed to by the Lender) prior to providing any Member the right to exchange their Common Units for interest
in another investment vehicle managed by the Advisor or its affiliates and (xii) in writing fifteen (15) days (or such shorter period
as agreed to by the Lender) prior to revoking or in any way amending the Adviser’s right to issue Capital Call Notices or of any
change in the form of organization of, identity of or replacement or other substitution of the Adviser.

 

15.          
We will notify you prior to (i) the dissolution of the Fund pursuant to Article XI of the Fund’s LLC Agreement or (ii) any
amendment, supplement or other modification to the Fund’s LLC Agreement or any material resolution of the Fund’s Board of
Directors related to the Fund’s investment parameters thereunder or the Fund’s right to incur indebtedness or to pledge the
Fund’s assets.

 

    2

     

    

 

16.          
No Portfolio Investment has been made by the Fund in contravention of Sections 1.3 or 4.1 of the Fund’s LLC Agreement.

 

17.          
The Fund shall not grant or permit to exist any lien, security interest, encumbrance on, or any assignment of, its assets, including,
but not limited to, the Remaining Capital Commitments, nor the right to call capital or issue Drawdown Notices to such Members, or the
proceeds of any such capital call, including the proceeds from capital calls to pay management fees (it being agreed that the Fund shall
be permitted to pay management fees so long as no Default (as defined in the Loan Authorization Agreement) then exists and is continuing)
except (i) liens granted to the Lender pursuant to the Security Agreement (as defined in the Loan Authorization Agreement), (ii) liens
in favor of a depository bank that are permitted under the applicable Control Agreement (as defined in the Loan Authorization Agreement),
(iii) liens of a collecting bank arising under Section 4-210 of the Uniform Commercial Code on items in the course of collection and
liens in favor of a banking institution at which the Fund maintains an account arising as a matter of law encumbering deposits (including
set-off rights) and which are in the general parameters customary in the banking industry, (iv) liens arising under applicable law for
taxes or other obligations not yet due or being contested in good faith for which adequate reserves have been established under GAAP
(as defined in the Loan Authorization Agreement), (v) any liens in favor of the Lender or any affiliate thereof and (vi) with the prior
written consent of the Lender.

 

18.               
The Fund agrees that to the extent that any obligation has become due and payable under the Loan Authorization Agreement and monies
are not otherwise readily available to the Fund to satisfy such obligation, that it shall or it shall promptly issue, or cause the Adviser
to issue, Drawdown Notices with respect to the Capital Commitments of the Fund’s Members in an amount sufficient to satisfy in full
its obligations under the Loan Authorization Agreement and related Loan Documents (subject to the terms and conditions of the Fund’s
LLC Agreement) and the Fund shall, promptly upon receipt, apply the proceeds of the capital calls to the repayment of the outstanding
obligations then due.

 

19.          
We will provide you with copies of all Subscription Agreements and any other documentation received in connection with the admission
of an additional Member promptly following receipt thereof.

 

20.          
By executing below, the undersigned certifies that it is acting on behalf of the Fund and that its acts are authorized.

 

21.          
The Board of Directors of the Fund has resolved that they will not act in their discretion to effect an early termination of the
Fund at any time that the Fund has any outstanding indebtedness to the Lender. If the Fund does not have any outstanding indebtedness
to the Lender, the Board of Directors will not act in their discretion to effect an early termination of the Fund without first providing
the Lender written notice of its intention to do so.

 

22.          
We will provide you with copies of all side letters or other agreements between the Fund and its Members promptly following receipt
thereof. There are no side letters or other agreements which would prohibit the Fund from entering into or performing its obligations
under the Loan Authorization Agreement or affect the applicable Members’ obligations to honor Drawdown Purchases as set forth in
such the Fund’s LLC Agreement or create obligations on the Fund to repurchase unit interests or redeem the interest of a Member
in the Fund, other than those that have been previously disclosed to the Lender.

 

23.          Except
to the extent written notice thereof has been previously delivered to Lender, neither Fund nor the Adviser is currently a named
party in a pending or threatened action or proceeding before any court, governmental agency or arbitrator, which (x) could
reasonably be expected to materially adversely affect the Fund’s financial condition or operations or (y) purports to affect
the legality, validity, or enforceability of the Loan Authorization Agreement.

 

    3

     

    

 

24.         
Both after the termination or expiration of the Investment Period and after the occurrence and during the continuance of a dissolution
of the Fund, the Adviser is permitted to call capital under the Fund’s LLC Agreement in order to repay the Fund’s outstanding
loans made by the Lender to the Fund under the Loan Authorization Agreement.

 

25.          
Upon the termination of the Loan Authorization Agreement and the payment in full in cash of all Loans and other obligations, including
interest, fees, costs and expenses, under the Loan Authorization Agreement and any Loan Document, the Fund’s covenant obligations
under this Certificate of Status shall terminate.

 

The Fund hereby agrees to notify the
Lender in the event it becomes aware of any change which would cause any of the above representations and warranties to cease to be true
and correct in any material respect.

 

This
Certificate of Status shall be governed by the laws of the State of New York.

 

[Signature
Page to Follow]

 

    4

     

    

 

This
Certificate of Status is Dated:                                       ,
20    .

 

	 	New Mountain Guardian IV
    BDC, L.L.C.
	 	 	 
	 	By	 
	 	 	Name: Shiraz Kajee
	 	 	Its: Authorized Signatory

 

[Certificate of Status]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00349-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00349-of-00352.parquet"}]]