Document:

Exhibit 10.3

 

AMENDMENT TO

SECOND AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT OF

BRIGHT HEALTH GROUP, INC.

 

This AMENDMENT TO SECOND AMENDED
AND RESTATED REGISTRATION RIGHTS AGREEMENT OF BRIGHT HEALTH GROUP, INC. (this “Amendment”), dated as of May 19, 2021
(the “Effective Date”), is made by and among Bright Health Group, Inc. (formerly known as Bright Health Inc.), a Delaware
corporation (the “Company”), New Enterprise Associates 15, L.P. (“NEA 15”), NEA Ventures 2016, Limited
Partnership (“NEA Ventures”), New Enterprise Associates 16, L.P. (together with NEA 15 and NEA Ventures, “NEA”),
Bessemer Venture Partners IX L.P. (“Bessemer IX”), Bessemer Venture Partners IX Institutional L.P. (together with Bessemer
IX, “Bessemer”), Greenspring Global Partners VII-A, L.P. (“Greenspring VII-A”), Greenspring Global
Partners VII-C, L.P. (“Greenspring VII-C”) and Greenspring Opportunities IV, L.P. (together with Greenspring VII-A
and Greenspring VII-C, “Greenspring” and, together with NEA, Bessemer, the “Majority Holders”).
Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Registration Rights Agreement (as defined
below).

 

RECITALS

 

WHEREAS, the Company, the
Majority Holders and the other Holders are parties to that certain Second Amended and Restated Registration Rights Agreement, dated as
of November 15, 2018 (the “Registration Rights Agreement”);

 

WHEREAS, the Majority Holders
represent the requisite Holders necessary to amend the Registration Rights Agreement pursuant to Section 19 of the Registration Rights
Agreement; and

 

WHEREAS, in connection with
the Company’s proposed IPO, the Company and the Majority Holders desire to make certain modifications and amendments to the Registration
Rights Agreement as set forth herein.

 

NOW, THEREFORE, in consideration
of the mutual promises and covenants set forth herein, and other consideration, the receipt and adequacy of which is hereby acknowledged,
the parties hereto agree that the Registration Rights Agreement is hereby amended as follows:

 

1.                  
Amendments.

 

		a.	Secondary Registration. Clause (iv) of Section 2 of the Registration Rights Agreement is
hereby amended to read in its entirety as follows:

 

“(iv)         With
respect to any registration pursuant to this Section 2, the Corporation shall give notice of such registration, in accordance
with the provisions of Section 3 hereunder, to the Holders who do not request registration hereunder (and the FF Beneficial
Investor, if the FF Investor is a Holder and does not request registration) and the Corporation may include in such registration any Primary
Shares or Other Shares; provided, however, that if the managing underwriter(s) advises the Corporation that the inclusion of all
Registrable Shares, Primary Shares and/or Other Shares proposed to be included in such registration would interfere with the successful
marketing (including pricing) of the Registrable Shares proposed to be included in such registration, then the number of Registrable Shares,
Primary Shares and/or Other Shares proposed to be included in such registration shall be included in the following order:

 

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		(A)	first, the Registrable Shares held by the Holders (or, if necessary, such Registrable Shares pro rata
among the Holders thereof based on the number of Registrable Shares then held by such Holders);

 

		(B)	second, the Primary Shares; and

 

		(C)	third, the Other Shares.”

 

		b.	Piggyback Registration. Section 3 of the Registration Rights Agreement is hereby amended
to read in its entirety as follows:

 

“Section 3.         Piggyback
Registration. If the Corporation at any time proposes for any reason to register Primary Shares or Other Shares under the Securities
Act (other than an Excluded Registration), it shall give written notice to each Holder and the FF Beneficial Investor of its intention
to so register such Primary Shares or Other Shares at least thirty (30) days before the initial filing of the registration statement
related thereto and, upon the request, delivered to the Corporation within twenty (20) days after delivery of any such notice by the
Corporation, of any Holder to include in such registration Registrable Shares (which request shall specify the number of Registrable
Shares proposed to be included in such registration), the Corporation shall use commercially reasonable efforts to cause all such Registrable
Shares to be included in such registration on the same terms and conditions as the securities otherwise being sold in such registration;
provided, however, that if the managing underwriter advises the Corporation that the inclusion of all Registrable Shares requested
to be included in such registration would interfere with the successful marketing (including pricing) of the Primary Shares or Other
Shares proposed to be registered by the Corporation, then (i) the number of Primary Shares, Registrable Shares and Other Shares proposed
to be included in such registration shall be included in the following order:

 

		(i)	first, the Primary Shares;

 

		(ii)	second, the Registrable Shares held by the Holders (or, if necessary, such Registrable Shares pro rata
among the Holders thereof based on the number of Registrable Shares then held by such Holders); and

 

		(iii)	third, the Other Shares;

 

provided,
that in no event shall the managing underwriter include in such registration less than thirty percent (30%) of Registrable Shares proposed
to be included in such registration by the Holders, unless such registration relates to the IPO, in which case the selling Holders may
be excluded further if the underwriters in their reasonable discretion determine that the total number of securities, including Registrable
Shares, requested by stockholders to be included in such offering exceeds the number of securities to be sold (other than by the Company)
that is compatible with the success of the offering and no other stockholder’s securities are
included in such offering. The Corporation shall have the right to terminate or withdraw any registration initiated by it under this Section
3 before the effective date of such registration, whether or not any Holder has elected to include Registrable Shares in such registration.”

 

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		c.	Holdback Agreement. Section 5 of the Registration Rights Agreement is hereby amended to
read in its entirety as follows:

 

“Section 5.         Holdback
Agreement. In connection with the IPO, each Holder agrees that, (i) for a period (the “Lockup Period”) that is
consistent and coterminous with the shortest “Lockup Period” as defined in the lockup agreements entered into by the executive
officers and directors in connection with the IPO (or such other similar definition), which period shall not last more than one hundred
eighty (180) days after the date of the final prospectus relating to the IPO, he, she or it shall be bound by the restrictions contained
in such lockup agreements and (ii) if requested by the Board (including at least one (1) Investor Director), he, she or it shall execute
an agreement reflecting the foregoing; provided, that (i) any applicable period shall terminate on such earlier date as the Corporation
gives notice to the Holders and the FF Beneficial Investor that the Corporation will not proceed with the offering; (ii) all securityholders
of the Company subject to a Lockup Period shall only be released early from such restrictions on a pro rata basis; (iii) such Lockup Period
shall be subject to customary exceptions; and (iv) the Company shall promptly notify the Holders if it becomes aware of any lock-up agreements
relating to the securities of the Company that are more favorable to any securityholder of the Company than the provisions of this Section 5
and/or any lockup agreement that the underwriter requests a Holder to enter into in connection with the IPO.”

 

		d.	Investor’s Counsel. Clause (ii) of Section 6(a) of the Registration Rights Agreement
is hereby amended to read in its entirety as follows:

 

“(ii)         furnish,
as far in advance as possible but in no event less than five (5) business days before filing a registration statement that registers such
Registrable Shares, a prospectus relating thereto or any amendments or supplements relating to such a registration statement or prospectus,
to one counsel selected by the Holders of a majority of Registrable Shares (the “Investor’s Counsel”), copies
of all such documents proposed to be filed, and shall use commercially reasonable efforts to reflect in each such document, when so filed
with the Commission, such comments as the holders of Registrable Shares whose Registrable Shares are to be covered by such registration
statement may reasonably propose and shall not file any such document to which any Holder objects in writing, unless in the judgment of
the Corporation such filing is necessary to comply with applicable law;”

 

		e.	Legend Removal. Section 11 of the Registration Rights Agreement is hereby amended by adding
a new Section 11A that shall be inserted following Section 11 that reads as follows:

 

“Section 11A.        Legend
Removal. Subject to compliance with applicable securities laws and regulations, and any contractual restrictions entered into by a
Holder or a transferee of a Holder’s securities (such as the provisions of Section 5 or a lock-up agreement entered into at
the request of an underwriter), at a Holder’s request and at the Company’s expense, the Company will use commercially reasonable
efforts to (x) promptly remove all transfer restrictions (and any legends relating thereto) that are no longer required to restrict transfers
of the securities of the Company (or its successor) held by such Holder (or such Holder’s transferees) and (y) subject only to a
letter agreement containing customary representations of the applicable Holder and reasonably satisfactory to the Company and its transfer
agent with respect to ongoing compliance with Rule 144 under the Securities Act of 1933, cause the removal of restrictive legends restricting
the sale of shares provided that such Holder (or such Holder’s transferee, as applicable) has held such shares (and/or any predecessor
shares allowing for tacking of the holding period under Rule 144) for at least six (6) months;”

 

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		f.	Amendments and Waivers. Section 19 of the Registration Rights Agreement is hereby amended
to read in its entirety as follows:

 

“Section 19.        Modifications;
Amendments; Waivers. Any term of this Agreement may be amended, modified or terminated and the observance of any term of this Agreement
may be waived (either generally or in a particular instance, and either retroactively or prospectively) with the written consent of the
Corporation and holders of a majority of the Registrable Shares then outstanding; provided, however, that no such amendment, modification,
termination or waiver shall be made that, by its terms, affects any Holder in a disproportionately adverse manner as compared to the other
Holders with respect to the same class of Registrable Shares held by such Holders without obtaining the consent of such adversely and
disproportionately affected Holder. In addition, any party may waive any provision hereof intended for its benefit in writing. No failure
or delay on the part of any party hereto in exercising any right, power or remedy hereunder shall operate as a waiver thereof. The remedies
provided for herein are cumulative and are not exclusive of any remedies that may be available to any party hereto at law, in equity or
otherwise. Each Holder shall be bound by any amendment, modification, termination or waiver effected in accordance with this Section 19,
whether or not such Holder has consented to such amendment, modification, termination or waiver.”

 

2.                  
Full Force and Effect. Except as otherwise amended by this Amendment, the Registration Rights Agreement remains in full
force and effect.

 

3.                 
Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of Delaware,
without giving effect to any law or rule that would cause the laws of any jurisdiction other than the State of Delaware to be applied.

 

4.                
Counterparts. This Amendment may be executed in several counterparts, each of which shall be deemed an original and
all of which shall constitute one and the same instrument. The exchange of a fully executed Amendment (in counterparts or otherwise) by
facsimile or by electronic delivery in .pdf format shall be sufficient to bind the parties to the terms and provisions of this Amendment.
The words “execution,” “signed,” “signature,” “delivery,” and words of like import in
or relating to this Amendment or any document to be signed in connection with this Amendment shall be deemed to include electronic signatures,
deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as
a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, and the
parties hereto consent to conduct the transactions contemplated hereunder by electronic means.

 

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IN WITNESS WHEREOF,
the parties have executed this Amendment as of the Effective Date.

  

	COMPANY:
	 
	BRIGHT HEALTH GROUP, INC.
	 	 	 
	By:	 /s/ Keith Nelsen	 
	 	Name:  Keith Nelsen	 
	 	Title:    General Counsel	 

 

[Signature Page to Amendment to Registration
Rights Agreement]

 

     

     

    

 

	Holder:
	 
	New Enterprise Associates 15, L.P.
	By: NEA Partners 15, L.P., its general partner
	By: NEA 15 GP, LLC, its general partner
	 	 	 
	By:	 /s/ Louis S. Citron	 
	 	Name:  Louis S. Citron	 
	 	Title:    Chief Legal Officer	 

 

 

	Holder:
	 
	NEA Ventures 2016, lIMITED PARTNERSHIP
	 	 	 
	By:	 /s/ Louis S. Citron	 
	 	Name:  Louis S. Citron	 
	 	Title:    Vice President	 

 

 

	Holder:
	 
	New Enterprise Associates 16, L.P.
	By: NEA Partners 16, L.P., its general partner
	By: NEA 16 GP, LLC, its general partner
	 	 	 
	By:	 /s/ Louis S. Citron	 
	 	Name:  Louis S. Citron	 
	 	Title:    Chief Legal Officer	 

 

[Signature Page to Amendment to Registration
Rights Agreement]

 

     

     

    

 

	Holder:
	 
	BESSEMER VENTURE PARTNERS IX L.P.
	By: Deer IX & Co. L.P., its general partner
	By: Deer IX & Co. Ltd., its general partner
	 	 	 
	By:	 /s/ Scott Ring	 
	 	Name:  Scott Ring	 
	 	Title:    General Counsel	 

  

	Holder:
	 
	BESSEMER VENTURE PARTNERS IX INSTITUTIONAL L.P.
	By: Deer IX & Co. L.P., its general partner
	By: Deer IX & Co. Ltd., its general partner
	 	 	 
	By:	 /s/ Scott Ring	 
	 	Name:  Scott Ring	 
	 	Title:    General Counsel	 

 

[Signature Page to Amendment to Registration
Rights Agreement]

 

     

     

    

 

	Holder:
	 
	GREENSPRING GLOBAL PARTNERS VII-A, L.P.
	By: Greenspring General Partner VII, L.P., its general partner
	By: Greenspring GP VII, Ltd., its general partner
	 	 	 
	By:	 /s/ Eric Thompson	 
	 	Name:  Eric Thompson	 
	 	Title:    COO	 

 

 

	Holder:
	 
	GREENSPRING GLOBAL PARTNERS VII-C, L.P.
	By: Greenspring General Partner VII, L.P., its general partner
	By: Greenspring GP VII, Ltd., its general partner
	 	 	 
	By:	 /s/ Eric Thompson 	 
	 	Name:  Eric Thompson	 
	 	Title:    COO	 

 

 

	Holder:
	 
	GREENSPRING Opportunities IV, L.P.
	By: Greenspring Opportunities General Partner IV, L.P., its general partner
	By: Greenspring Opportunities General Partner IV, LLC., its general partner
	By: Greenspring Associates, Inc., its sole member
	 	 	 
	By:	 /s/ Eric Thompson	 
	 	Name:  Eric Thompson	 
	 	Title:    COO	 

 

[Signature Page to Amendment to Registration
Rights Agreement]Exhibit 10.9  

 

2021 Time Options

 

OPTION GRANT NOTICE

UNDER

BRIGHT HEALTH GROUP, INC.

2021 OMNIBUS INCENTIVE PLAN

 

Bright Health Group, Inc. (the
 “Company”), pursuant to its 2021 Omnibus Incentive Plan, as it may be amended and restated from time to time (the “Plan”),
hereby grants to the Participant set forth below the number of Options (each Option representing the right to purchase one share of Common
Stock) set forth below, at an Exercise Price per share as set forth below. The Options are subject to all of the terms and conditions
as set forth herein, in the Option Agreement (attached hereto or previously provided to the Participant in connection with a prior grant)
and in the Plan, all of which are incorporated herein in their entirety. Capitalized terms not otherwise defined herein shall have the
meaning set forth in the Plan. [FOR IPO GRANTS: In the event the initial public offering of the Company (the “IPO”)
is not consummated within thirty (30) days following the Date of Grant, this Option Grant Notice shall be null and void and of no further
force or effect.]

 

	Participant:	[First Name] [Last Name]

 

	Date of Grant: 	[__]

 

	Number of Options: 	[Number of Options Granted]

 

	Exercise Price per Share: 	$[__]

 

	Option Period Expiration Date: 	10th anniversary of Date of Grant

 

	Type of Option: 	Nonqualified Stock Option

 

	Vesting Schedule:	Subject to the Participant’s continued service with the Company and its Subsidiaries on each applicable vesting date, the Options
shall vest as follows: 25% of the Options shall vest and become exercisable on each of the first four anniversaries of the Date of Grant.

 

	 	Notwithstanding any of the foregoing, upon a Termination at any time by reason of death or Disability, any unvested Options that would
have become vested and exercisable on the vesting date immediately following the date of such Termination, had the Participant remained
in service with the Company and its Subsidiaries through such vesting date, will become vested and exercisable as of the Participant’s
Termination.

 

		If a Change in Control occurs and during the 24 month period
  following such Change in Control, the Participant’s service is terminated by the Service Recipient without Cause or due to the
  Participant’s resignation for Good Reason (as defined below), all unvested Options shall become fully vested and exercisable
  upon the date of the Participant’s Termination.

 

    

     

    

 

	Definitions:	“Good Reason”
shall have the meaning given to such term in any employment or consulting agreement between the Participant and the Service Recipient
in effect at the time of the Participant’s Termination. In the absence of any such employment or consulting agreement or the absence
of any definition of “Good Reason” contained therein, “Good Reason” means the occurrence of one or more of the
following events arising without the express written consent of the Participant, but only if the Participant notifies the Service Recipient
in writing of the event within 60 days following the occurrence of the event, the event remains uncured after the expiration of 30 days
from receipt of such notice, and the Participant resigns effective no later than 30 days following the Service Recipient’s failure
to cure the event: (i) a material diminution in the Participant’s base salary or target bonus opportunity, (ii) the relocation of
the Participant’s principal place of employment or service to a location more than 35 miles from the Participant’s then current
principal place of employment or service, if a move to such other location materially increases the Participant’s commute, or (iii)
any material breach by the Company or the Service Recipient of this Option Agreement or the Participant’s offer letter or employment
agreement with the Service Recipient.

 

*    *     *

 

    

     

    

 

	BRIGHT HEALTH GROUP, INC.	 
	 	 
	 	 
	 	 
	By:	 
	Title:	 

 

    

     

    

 

THE UNDERSIGNED PARTICIPANT
ACKNOWLEDGES RECEIPT OF THIS OPTION GRANT NOTICE, THE OPTION AGREEMENT AND THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF OPTIONS
HEREUNDER, AGREES TO BE BOUND BY THE TERMS OF THIS OPTION GRANT NOTICE, THE OPTION AGREEMENT AND THE PLAN.

 

Participant1

 

	 	 

 

 

	1	To the extent that the Company has established, either itself or through a third-party plan administrator, the ability to accept this
award electronically, such acceptance shall constitute the Participant’s signature hereto.

 

    

     

    

 

OPTION AGREEMENT

UNDER

BRIGHT HEALTH GROUP, INC.

2021 OMNIBUS INCENTIVE PLAN

 

Pursuant to the Option Grant
Notice (the “Grant Notice”) delivered to the Participant (as defined in the Grant Notice), and subject to the terms
of this Option Agreement (this “Option Agreement”) and Bright Health Group, Inc. 2021 Omnibus Incentive Plan, as it
may be amended and restated from time to time (the “Plan”), Bright Health Group, Inc. (the “Company”)
and the Participant agree as follows. Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Plan.

 

1. Grant of Option.
Subject to the terms and conditions set forth herein and in the Plan, the Company hereby grants to the Participant the number of Options
provided in the Grant Notice (with each Option representing the right to purchase one share of Common Stock), at an Exercise Price per
share as provided in the Grant Notice. The Company may make one or more additional grants of Options to the Participant under this Option
Agreement by providing the Participant with a new Grant Notice, which may also include any terms and conditions differing from this Option
Agreement to the extent provided therein. The Company reserves all rights with respect to the granting of additional Options hereunder
and makes no implied promise to grant additional Options.

 

2. Vesting. Subject to the conditions
contained herein and in the Plan, the Options shall vest as provided in the Grant Notice.

 

3. Exercise of Options
Following Termination. Except as otherwise provided in the Grant Notice or as otherwise may be provided by the Committee, in the
event of: (A) a Participant’s Termination by the Service Recipient for Cause, all outstanding Options granted to such Participant
shall immediately terminate and expire; (B) a Participant’s Termination due to death or Disability, each outstanding unvested Option
granted to such Participant shall immediately terminate and expire, and each outstanding vested Option shall remain exercisable for one
(1) year thereafter (but in no event beyond the expiration of the Option Period); (C) a Participant’s Termination without Good Reason,
each outstanding unvested Option granted to such Participant shall immediately terminate and expire, and each outstanding vested Option
shall remain exercisable for thirty (30) days thereafter (but in no event beyond the expiration of the Option Period); and (D) a Participant’s
Termination for any other reason (including, for the avoidance of doubt, termination by the Company without Cause or by the Participant
for Good Reason), each outstanding unvested Option granted to such Participant shall immediately terminate and expire, and each outstanding
vested Option shall remain exercisable for one hundred eighty (180) days thereafter (but in no event beyond the expiration of the Option
Period).

 

4. Method of Exercising
Options. The Options may be exercised by the delivery of notice of the number of Options that are being exercised accompanied
by payment in full of the Exercise Price applicable to the Options so exercised. Such notice shall be delivered either (a) in writing
to the Company at its principal office or at such other address as may be established by the Committee, to the attention of the Company’s
Compensation Department or its designee; or (b) to a third-party plan administrator as may be arranged for by the Company or the Committee
from time to time for purposes of the administration of outstanding Options under the Plan, in the case of either (a) or (b), as communicated
to the Participant by the Company from time to time. Payment of the aggregate Exercise Price may be made using any of the methods described
in Section 7(d)(i) or (ii) of the Plan; provided, that the Participant shall obtain written consent from the Committee prior to
the use of the method described in Section 7(d)(ii)(A) of the Plan.

 

5. Issuance of
Shares of Common Stock. Following the exercise of an Option hereunder, as promptly as practical after receipt of such
notification and full payment of such Exercise Price and any required income or other tax withholding amount (as provided in Section
10 hereof), the Company shall issue or transfer, or cause such issue or transfer, to the Participant the number of shares of Common
Stock with respect to which the Options have been so exercised, and shall either (a) deliver, or cause to be delivered, to the
Participant a certificate or certificates therefor, registered in the Participant’s name or (b) cause such shares of Common
Stock to be credited to the Participant’s account at the third-party plan administrator.

 

    

     

    

 

6. Conditions to Issuance
of Common Stock. The Company shall not be required to record the ownership by the Participant of shares of Common Stock purchased
upon the exercise of the Options or portion therefore prior to fulfillment of all of the following conditions: (i) the obtaining of approval
or other clearance from any federal, state, local or non-U.S. governmental agency which the Committee shall, in its reasonable and good
faith discretion, determine to be necessary; (ii) the lapse of such reasonable period of time following the exercise of the Option as
may otherwise be required by applicable law; and (iii) the execution and delivery to the Company, to the extent not so previously executed
and delivered, of such other documents and instruments as may be reasonably required by the Committee.

 

7. Participant.
Whenever the word “Participant” is used in any provision of this Option Agreement under circumstances where the provision
should logically be construed to apply to the executors, the administrators, or the person or persons to whom the Options may be transferred
in accordance with Section 14(b) of the Plan, the word “Participant” shall be deemed to include such person or persons.

 

8. Non-Transferability.
The Options are not transferable by the Participant; provided, to the extent permitted by the Committee in accordance with Section
14(b) of the Plan, vested Options may be transferred to Permitted Transferees. Except as otherwise provided herein, no assignment or transfer
of the Options, or of the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise, shall vest in
the assignee or transferee any interest or right herein whatsoever, but immediately upon such assignment or transfer the Options shall
terminate and become of no further effect.

 

[FOR IPO GRANTS AND GRANTS MADE WITHIN 180
DAYS FOLLOWING IPO: The Participant further hereby agrees that the Participant shall, without further action on the part of the Participant,
be bound by the provisions of the lock-up agreements executed by the executive officers of the Company to the same extent as if the Participant
had directly executed such lock-up agreement himself or herself. Such lock-up agreement will provide that the Participant shall not, subject
to certain customary exceptions, dispose of or hedge any shares of Common Stock or securities convertible into or exchangeable for shares
of Common Stock during the period from the date of the final prospectus relating to the IPO and continuing through the date one hundred
eighty (180) days following the date of such prospectus, except with the prior consent of the representative(s) of the underwriters.]

 

9. Rights as Shareholder.
The Participant shall have no rights as a shareholder with respect to any share of Common Stock covered by an Option unless and until
the Participant shall have become the holder of record or the beneficial owner of such share of Common Stock, and no adjustment shall
be made for dividends or distributions or other rights in respect of such share of Common Stock for which the record date is prior to
the date upon which the Participant shall become the holder of record or the beneficial owner thereof.

 

    

     

    

 

10. Tax
Withholding. Concurrently with the exercise of an Option, the Participant must pay to the Company any amount that the
Company determines it is required to withhold under applicable federal, state or local or foreign tax laws in respect of the
exercise or the transfer of the shares of Common Stock in connection therewith (“Withholding Taxes”). The
Participant may elect to make payment: (i) in cash or by check or wire transfer (or any combination thereof) or (ii) and to the
extent permitted by applicable law, by delivery of a notice that the Participant has placed a market sell order with a broker with
respect to shares of Common Stock then issuable upon exercise of the Options being so exercised, and that the broker has been
directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Withholding Taxes; provided,
that payment of such proceeds is then made to the Company upon settlement of such sale; and provided, further, that
the Committee may, in its sole discretion, allow such withholding obligation to be satisfied by any other method described in
Section 14 of the Plan and, if Participant is a Section 16 officer of the Company under the Exchange Act, then the Committee shall
establish the method of withholding required to be utilized by the Participant from alternatives available under the Plan prior to
the exercise of any Options.

 

11. Notice. Every
notice or other communication relating to this Option Agreement between the Company and the Participant shall be in writing, and shall
be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by such party in
a notice mailed or delivered to the other party as herein provided; provided, that, unless and until some other address be so designated,
all notices or communications by the Participant to the Company shall be mailed or delivered to the Company at its principal executive
office, to the attention of the Company’s Compensation Department, and all notices or communications by the Company to the Participant
may be given to the Participant personally or may be mailed to the Participant at the Participant’s last known address, as reflected
in the Company’s records. Notwithstanding the above, all notices and communications between the Participant and any third-party
plan administrator shall be mailed, delivered, transmitted or sent in accordance with the procedures established by such third-party plan
administrator and communicated to the Participant from time to time.

 

12. No Right to Continued
Service. This Option Agreement does not confer upon the Participant any right to continue as an employee or service provider to
the Company or any of its Subsidiaries.

 

13. Binding Effect.
This Option Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto.

 

14. Waiver and Amendments.
Except as otherwise set forth in Section 13 of the Plan, any waiver, alteration, amendment or modification of any of the terms of this
Option Agreement shall be valid only if made in writing and signed by the parties hereto; provided, that any such waiver, alteration,
amendment or modification is consented to on the Company’s behalf by the Committee. No waiver by either of the parties hereto of
their rights hereunder shall be deemed to constitute a waiver with respect to any subsequent occurrences or transactions hereunder unless
such waiver specifically states that it is to be construed as a continuing waiver.

 

15. Clawback;
Forfeiture. Notwithstanding anything to the contrary contained herein or in the Plan, if the Participant has engaged in or
engages in any Detrimental Activity, then the Committee may, in its sole discretion, take actions permitted under the Plan,
including: (a) canceling the Options, or (b) requiring that the Participant forfeit any gain realized on the exercise of the Options
or the disposition of any shares of Common Stock received upon exercise of the Options, and repay such gain to the Company. In
addition, if the Participant receives any amount in excess of what the Participant should have received under the terms of this
Option Agreement for any reason (including without limitation by reason of a financial restatement, mistake in calculations or other
administrative error), then the Participant shall be required to repay any such excess amount to the Company. Without limiting the
foregoing, all Options shall be subject to reduction, cancellation, forfeiture, offset or recoupment to the extent necessary to
comply with applicable law. “Detrimental Activity” means any of the following: (i)
unauthorized disclosure of any confidential or proprietary information of any member of the Company Group; (ii) any activity that
would be grounds to terminate the Participant’s employment or service with the Service Recipient for Cause; (iii) a breach by
the Participant of any restrictive covenant by which such Participant is bound, including, without limitation, any covenant not to
compete or not to hire or solicit, in any agreement with any member of the Company Group; or (iv) fraud, gross negligence or conduct
contributing to any financial restatements or irregularities, as determined by the Committee in its sole discretion.

 

    

     

    

 

16. Governing Law; Venue.
This Option Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware, without regard to the principles
of conflicts of law thereof. Notwithstanding anything contained in this Option Agreement, the Grant Notice or the Plan to the contrary,
if any suit or claim is instituted by the Participant or the Company relating to this Option Agreement, the Grant Notice or the Plan,
the Participant hereby submits to the exclusive jurisdiction of and venue in the courts of Houston, Texas.

 

17. Award Subject to Plan.
The Options granted hereunder, and the shares of Common Stock issued to the Participant upon exercise of the Options, are subject to the
Plan and the terms of the Plan are hereby incorporated into this Option Agreement. By accepting the Options, the Participant acknowledges
that the Participant has received and read the Plan and agrees to be bound by the terms, conditions, and restrictions set forth in the
Plan, this Option Agreement, and the Company’s policies, as in effect from time to time, relating to the Plan. In the event of a
conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the
Plan will govern and prevail. The provisions of this Option Agreement shall survive the termination of this Award to the extent consistent
with, or necessary to carry out, the purposes thereof.

 

18. Imposition of Other
Requirements. The Company reserves the right to impose other requirements on the Participant’s participation in the Plan,
on the Options and on any shares of Common Stock acquired under the Plan, to the extent the Company determines it is necessary or advisable
for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings that may be necessary
to accomplish the foregoing.

 

19. Transmission Acknowledgement.
To the extent necessary, the Participant authorizes, agrees and unambiguously consents to the transmission by the Company or any other
member of the Company Group of any of the Participant’s personal data related to the Award for legitimate business purposes (including,
without limitation, the administration of the Plan). The Participant confirms and acknowledges that the Participant gives this authorization
and consent freely.

 

20. Electronic Delivery
and Acceptance. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation
in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate
in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
In the event that any information regarding the Options provided to the Participant through the third-party stock plan administrator’s
web portal or otherwise conflicts with any of the terms and conditions of this Option Agreement or the Plan (collectively, the “Option
Governing Documents”), the Option Governing Documents shall control.

 

21. Entire Agreement.
The Option Governing Documents constitute the entire agreement of the parties hereto in respect of the subject matter contained herein
and supersede all prior agreements and understandings of the parties, oral and written, with respect to such subject matter.

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