Document:

Exhibit 10-3

		
			EXHIBIT 10.3
		

		
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			AMENDMENT #2 TO CREDIT AGREEMENT
		

		
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			This AMENDMENT #2 TO CREDIT AGREEMENT, dated as of November 4, 2016 (this “Second Amendment”), is made among KADMON PHARMACEUTICALS, LLC, a Pennsylvania limited liability company,  (the “Borrower”), certain Affiliates of the Borrower listed on the signature pages hereof under the heading “GUARANTORS” (each a “Guarantor” and, collectively, the “Guarantors”), and the lenders listed on the signature pages hereof under the heading “LENDERS” (each  a “Lender” and, collectively, the “Lenders”), with respect to the Credit Agreement referred to below.
		

		
			SECTION 1.1.1.       RECITALS
		

		
			WHEREAS, the Borrower, the Guarantors and the Lenders are parties to a Credit Agreement, dated as of August 28, 2015 (as subsequently amended or otherwise modified, including pursuant to this Second Amendment, the “Credit Agreement”); and 
		

		
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			WHEREAS, the parties hereto desire to amend the Existing Credit Agreement (defined below) on the terms and subject to the conditions set forth herein.
		

		
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			NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties hereto agree as follows:
		

		
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			SECTION 1.Definitions; Interpretation.
		

		
			(a)Terms Defined in Credit Agreement.   All capitalized terms used in this Second Amendment (including in the preamble and recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.
		

		
			(b)Terms Defined in This Second Amendment.  The following terms when used in this Second Amendment shall have the following meanings (such meanings to be equally applicable to the singular and plural forms thereof):
		

		
			“Borrower” is defined in the preamble.
		

		
			“Credit Agreement” is defined in the first recital.
		

		
			“Existing Credit Agreement” means the Credit Agreement as in effect immediately prior to the effectiveness of this Second Amendment.
		

		
			“Guarantor” is defined in the preamble.
		

		
			“Lender” is defined in the preamble.
		

		
			“Second Amendment” is defined in the preamble.
		

		
			“Second Amendment Effective Date” is defined in Section 3.
		

		
			(c)Interpretation.  The rules of interpretation set forth in Section 1.02,  1.03 and 1.04 of the Credit Agreement shall be applicable to this Second Amendment and are incorporated herein by this reference.
		

		

		

		 

 

		SECTION 2.Amendments to Existing Credit Agreement.    Effective as of (and subject to the occurrence of) the Second Amendment Effective Date, the Existing Credit Agreement is hereby amended as follows:
		

		
			(a)Section 1.01 of the Existing Credit Agreement is hereby amended by inserting the following defined terms in their respective alphabetically correct places:
		

		
			“Disqualified Equity Interest” means, with respect to any Person, any Equity Interest of such Person that, by its terms (or by the terms of any security or other Equity Interest into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (i) matures or is mandatorily redeemable (other than solely for Qualified Equity Interests), including pursuant to a sinking fund obligation or otherwise, (ii) is redeemable at the option of the holder thereof (other than solely for Qualified Equity Interests), in whole or in part, (iii) provides for the scheduled payments of dividends in cash, or (iv) is or becomes convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is 91 days after all monetary Obligations are satisfied in full in cash.
		

		
			“Qualified Equity Interest” means, with respect to any Person, any Equity Interest of such Person that is not a Disqualified Equity Interest.
		

		
			“Second Amendment” means the Amendment #2 to Credit Agreement, dated as of November 4, 2016, among the Borrower, the Guarantors party thereto and the Lenders party thereto.
		

		
			“Second Amendment Effective Date” means the Second Amendment Effective Date as that term is defined in Section 3 of the Second Amendment.
		

		
			(b)Section 3.01(a) of the Existing Credit Agreement is hereby amended in its entirety and to read as follows:
		

		
			“Repayment.  Until the Payment Date occurring on August 31, 2017, no payments of principal of the Loans shall be due. On each Payment Date occurring on or after August 31, 2017, the Borrower shall repay the outstanding principal of the Loans at par in an amount equal to $380,000, by paying to each Lender its Proportionate Share of such amount on such Payment Date. To the extent not previously paid, the outstanding principal amount of the Loans, together with all other outstanding Obligations, shall be due and payable on the Maturity Date.”
		

		
			(c)Section 9.17 of the Existing Credit Agreement is hereby amended in its entirety to read as follows:
		

		
			“9.17 Developmental Milestones.  
		

		
			(a) Not later than December 31, 2017, at least one patient shall have enrolled in a Phase 3 clinical trial for KD019-101 for the treatment of autosomal dominant polycystic kidney disease.
		

		
			(b) Not later than December 31, 2016, at least one patient shall have enrolled in a Phase 2b clinical trial for KD025-205 for the treatment of psoriasis.
		

		

		

		 

 

		(c) Not later than December 31, 2016, the Borrower shall have submitted to FDA for acceptance an NDA for a 505(b)(2) or an abbreviated new drug application for trientine for the treatment of Wilson’s Disease.
		

		
			(d) Not later than June 30, 2017, the Borrower shall have, for the purposes of advancing IND #069215 towards FDA approval, initiated a new clinical trial for KD019 (separate and distinct from the clinical trial referred to in clause (a) above) for the treatment of non-small cell lung cancer (NSCLC) with activating EGFR mutations and brain metastases or leptomeningeal disease.”
		

		
			(d)Section 10 of the Existing Credit Agreement is hereby amended by adding new Section 10.03 to read as follows:
		

		
			10.03 Future Capital Raising.  During the period commencing with the Second Amendment Effective Date and ending on  June 30, 2017, Holdings shall have received not less than $40,000,000 in gross cash proceeds from one or more sales, offerings or issuances of its Qualified Equity Interests.
		

		
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			SECTION 3.Conditions of Effectiveness.  This Second Amendment shall become effective upon, and shall be subject to, the prior or simultaneous satisfaction of each of the following conditions in a manner reasonably satisfactory to the Majority Lenders (the date when all such conditions are so satisfied being the “Second Amendment Effective Date”):
		

		
			(a)The Lenders shall have received counterparts of this Second Amendment executed on behalf of the Borrower, Guarantors and all Lenders.
		

		
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			(b)The representations, warranties and reaffirmations set forth in Section 4 below shall be true and correct.
		

		
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			(c)The Lenders shall have received all fees, costs and expenses due and payable pursuant to Section 13.03(a)(i)(z) of the Credit Agreement (including without limitation the reasonable fees and expenses of Morrison & Foerster LLP, counsel to the Lenders if then invoiced, together with all other fees separately agreed to by the Borrower and the Lenders.
		

		
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			(d)All legal matters incident to the effectiveness of this Second Amendment shall be reasonably satisfactory to the Majority Lenders.
		

		
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			SECTION 4.Representations and Warranties; Reaffirmation.  
		

		
			(a)The Obligors hereby jointly and severally represent and warrant to each Lender as follows:
		

		
			(i)Each Obligor has full power, authority and legal right to make and perform this Second Amendment.  This Second Amendment is within each Obligor’s corporate powers and has been duly authorized by all necessary corporate and, if required, by all necessary shareholder action.  This Second Amendment has been duly executed and delivered by each Obligor and each of this Second Amendment and the Credit Agreement, as amended hereby, and each other Loan Document to which such Obligor is a party constitutes a legal, valid and binding obligation of such Obligor, enforceable against each Obligor in accordance with its terms, except as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the 
		

		 

 

		enforcement of creditors’ rights and (b) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).  Neither this Second Amendment nor the Credit Agreement (x) requires any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any third party, except for such as have been obtained or made and are in full force and effect, (y) violates any applicable Law or the charter, bylaws or other organizational documents of any Obligor or any of its Subsidiaries or any order of any Governmental Authority, other than any such violations that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (z) violates or would reasonable likely to result in an event of default under any Material Agreement binding upon such Obligor or any of its Subsidiaries or assets, or give rise to a right thereunder to require any payment to be made by any such Person.
		

		
			(ii)The representations and warranties set forth in each Loan Document, in each case, are true and correct in all material respects with the same effect as if then made (unless stated to relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date).
		

		
			(iii)No Default has occurred or is continuing or will result after giving effect to this Second Amendment.  
		

		
			(b)Each Obligor hereby ratifies, confirms, reaffirms, and acknowledges its obligations under each Loan Document (including without limitation the Credit Agreement) to which it is a party and agrees that each such Loan Document remains in full force and effect, undiminished by this Second Amendment, except as expressly provided herein; provided that, after the Second Amendment Effective Date, all references in any Loan Document to the “Credit Agreement”, “Loan Document”, “thereunder”, “thereof”, or words of similar import shall mean the Existing Credit Agreement and the Loan Documents, as amended or otherwise modified by this Second Amendment.  By executing this Second Amendment, each Obligor acknowledges that it has read, consulted with its attorneys regarding, and understands, this Second Amendment.
		

		
			SECTION 5.Guarantors’ Acknowledgement and Consent.  Each Guarantor has read this Second Amendment and consents to the terms hereof and hereby acknowledges and agrees that any Loan Document to which such Person is a party shall continue in full force and effect and that all of its obligations thereunder shall be valid, binding, and enforceable, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally and by equitable principles relating to enforceability, and shall not be impaired or limited by the execution or effectiveness of this Second Amendment.  Each Guarantor acknowledges and agrees that (i) such Person is not required by the terms of the Credit Agreement or any other Loan Document to consent to the supplements and amendments to the Credit Agreement effected pursuant to this Second Amendment and (ii) nothing in the Credit Agreement, this Second Amendment or any other Loan Document shall be deemed to require the consent of such Person to any future supplements or amendments to the Credit Agreement.
		

		
			SECTION 6.Miscellaneous.
		

		
			(a)No Waiver.  Nothing contained herein shall be deemed to constitute a waiver of compliance with any term or condition contained in the Existing Credit Agreement, the Credit Agreement or any of the other Loan Documents or constitute a course of conduct or dealing among the parties.  Except as expressly stated herein, the Lenders reserve all rights, privileges and remedies under the Loan Documents.  Except as expressly amended hereby, the Credit Agreement and other Loan Documents remain unmodified and in full force and effect.
		

		

		

		 

 

		(b)Severability.  In case any provision of or obligation under this Second Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.
		

		
			(c)Headings.  Headings and captions used in this Second Amendment (including the Exhibits, Schedules and Annexes hereto, if any) are included for convenience of reference only and shall not be given any substantive effect.
		

		
			(d)Integration.  This Second Amendment constitutes a Loan Document and, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.  This Second Amendment shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with all of the terms and provisions of the Credit Agreement, including Section 13 thereof (including, without limitation, Sections 13.09,  13.10 and 13.11).
		

		
			(e)This Second Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
		

		
			(f)Counterparts.  This Second Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Second Amendment by signing any such counterpart.
		

		
			(g)Controlling Provisions.  In the event of any inconsistencies between the provisions of this Second Amendment and the provisions of any other Loan Document, the provisions of this Second Amendment shall govern and prevail.  Except as expressly modified by this Second Amendment, the Loan Documents shall not be modified and shall remain in full force and effect.
		

		
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		IN WITNESS WHEREOF, the parties hereto have duly executed this Second Amendment, as of the date first above written.
		

		
			BORROWER:
		

		
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			KADMON PHARMACEUTICALS, LLC
		

		
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			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		
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			GUARANTORS:
		

		
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			KADMON CORPORATION, LLC
		

		
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			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		
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			KADMON HOLDINGS, LLC
		

		
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			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		
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			KADMON RESEARCH INSTITUTE, LLC
		

		
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			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		
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			THREE RIVERS RESEARCH INSTITUTE I, LLC
		

		
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			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		

		

		 

 

		THREE RIVERS BIOLOGICS, LLC
		

		
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			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		
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			THREE RIVERS GLOBAL PHARMA, LLC
		

		
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			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		
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		COLLATERAL REPRESENTATIVE:
		

		
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			PERCEPTIVE CREDIT HOLDINGS, LP
		

		
			By Perceptive Credit Opportunities GP, LLC, its general partner
		

		
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			By ____________________________________
		

		
			Sandeep Dixit
		

		
			Chief Credit Officer
		

		
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			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
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			LENDERS:
		

		
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			PERCEPTIVE CREDIT HOLDINGS, LP
		

		
			By Perceptive Credit Opportunities GP, LLC, its general partner
		

		
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			By ____________________________________
		

		
			Sandeep Dixit
		

		
			Chief Credit Officer
		

		
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			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
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			GOLDENTREE CREDIT OPPORTUNITIES, LP
		

		
			By GoldenTree Asset Management, LP
		

		
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			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
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			GOLDENTREE CREDIT OPPORTUNITIES, LTD
		

		
			By GoldenTree Asset Management, LP
		

		
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			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
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			GOLDENTREE INSURANCE FUND SERIES INTERESTS OF THE SALI MULTI-SERIES FUND, LPBY GOLDENTREE ASSET MANAGEMENT, LP
		

		
			By GoldenTree Asset Management, LP
		

		
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			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
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			GT NM, LP
		

		
			By GoldenTree Asset Management, LP
		

		
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			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
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			SAN BERNARDINO COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION
		

		
			By GoldenTree Asset Management, LP
		

		
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			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
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			﻿Exhibit
10.1

 

2016 NQSO Award Notice
and Agreement

 

 

NONQUALIFIED
STOCK OPTION AWARD NOTICE

 

HMS
Holdings Corp.

2016
Omnibus Incentive Plan

 

Dear <Participant Name>,

 

Congratulations, HMS Holdings
Corp. (the “Company”) has granted you a stock option award under the Company’s 2016 Omnibus Incentive
Plan, as it may be amended from time to time (the “Plan”). A stock option gives you the right to purchase
a specific number of shares of the Company’s common stock at a fixed price, assuming that you satisfy the terms and conditions
of the Plan and the attached implementing Nonqualified Stock Option Award Agreement (the “Award Agreement”).
We would like you to have an opportunity to share in the success of the Company through this stock option award under the Plan.
The following represents a brief description of your individual award.

 

Stock Option Award Summary:

 

	Date of Grant	<Date>
	Option
    Shares	<Number
    of Shares Covered by the Option Granted>
	Option
    Exercise Price per Share	$_____
	Exercisability
    	[One-sixth/one-fourth/one-third]
    of the Option Shares shall vest and become exercisable on each of the first, second and third anniversaries of the Date
    of Grant[, with the remainder vesting and becoming exercisable in accordance with the applicable schedule for the Performance
    Option set forth in Appendix B to the Award Agreement].  Each of those dates is an “Exercisability
    Date.”
	Option
    Expiration Date	<Date
    of tenth anniversary of the Date of Grant>
	Participant
    Management-Level 	<Management
    level of Participant at Date of Grant>

 

		•	You
                                         have been granted a nonqualified stock option (the “Option”) to purchase
                                         shares of the Company’s common stock (“Shares”). The
                                         total number of Shares covered by the Option granted to you is in the chart above under
                                         “Option Shares” and the price per share is under “Option
                                         Exercise Price per Share.”
	 	 	 

		•	The
                                         potential value of your stock option award increases if the price of the Company’s
                                         stock increases, but you also have to continue to provide services to the Company (except
                                         as the Award Agreement provides) to actually receive such value. Of course, the value
                                         of the stock may go up and down over time.
	 	 	 

		•	You
                                         cannot exercise the Option (actually purchase Shares) until it becomes exercisable. Your
                                         stock option becomes exercisable as provided in the chart above under “Exercisability,”
                                         assuming you remain an employee or a member of the Board of Directors of the Company
                                         through each Exercisability Date and subject to the terms in the Award Agreement.
	 	 	 

		•	Additional
                                         details regarding your stock option award are provided in the Plan and the Award Agreement.
	 	 	 

		•	Whether
                                         or not you decide to exercise your stock option and purchase the Shares is your decision,
                                         and you have until the stock option expires (which will be no later than the tenth
                                         anniversary of the “Date of Grant” but can end earlier
                                         in various situations) to make that decision.
	 	 	 

		•	Once
                                         you have purchased the Shares, you will own them and may decide whether to hold the stock,
                                         sell the stock or give the stock to someone as a gift.
	 	 	 

 

     

     

    

You can access the Merrill
Lynch website, including updates and additional information at: https://www29.benefits.ml.com/login/login.aspx. Please
email EquityAdministration@hms.com with any questions regarding the Merrill Lynch website.

 

 

 

 

 

 

 

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NONQUALIFIED
STOCK OPTION AWARD AGREEMENT

FOR
EMPLOYEES 

 

HMS
Holdings Corp.

2016
Omnibus Incentive Plan

 

HMS Holdings
Corp. (the “Company”) has granted you, the individual named in the attached Nonqualified Stock Option
Award Notice (the “Award Notice”), an option (the “Option”) to purchase from
the Company a specific number of shares of the Company’s common stock (“Shares”) at a specified
price per Share (the “Option Exercise Price”) under the HMS Holdings Corp. 2016 Omnibus Incentive Plan
(as it may be amended from time to time) (the “Plan”), the terms of which are incorporated by reference
herein in their entirety. The Option is subject in all respects to the applicable provisions of the Plan, the Award Notice and
this Nonqualified Stock Option Award Agreement (the “Award Agreement”). Any term used in this Award
Agreement that is not specifically defined herein or in the Award Notice shall have the meaning specified in the Plan.

 

Please
refer to the attached Award Notice for individualized details regarding your stock Option award, including the Date of Grant,
the total number of Shares covered by the Option granted to you (the “Option Shares”), the Option Exercise
Price per Share, the schedule for Exercisability and applicable Exercisability Dates, and the latest date the Option will expire
(the “Option Expiration Date”).

 

 

 

 

 

The Plan document and the Prospectus
for the Plan are available on the Merrill Lynch website. The Company’s Registration Statement on Form S-8, the Company’s
Annual Report on Form 10-K, and other filings the Company makes with the Securities and Exchange Commission are available for
your review under the Investor Relations tab on the Company’s web site (http://investor.hms.com/financials.cfm).
You may also obtain paper copies of these documents, without charge, upon request to the Company’s Corporate Secretary,
5615 High Point Drive, Irving, Texas 75038, telephone: 972-916-2380.

 

Neither the Company nor anyone
else is making any representations or promises regarding the duration of your service, exercisability of the Option, the value
of the Shares or of this Option, or the Company's prospects. The Company is not providing any advice regarding tax consequences
to you or your decisions regarding the Option; you agree to rely only upon your own personal advisors.

 

NO
ONE MAY SELL, TRANSFER, OR DISTRIBUTE THE OPTION OR THE SECURITIES THAT MAY BE PURCHASED UPON EXERCISING THE OPTION WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATING THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY OR OTHER INFORMATION AND
REPRESENTATIONS SATISFACTORY TO IT THAT SUCH REGISTRATION IS NOT REQUIRED.

 

 

 

 

 

 

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In addition
to the Plan’s terms and restrictions, the following terms and restrictions apply:

 

	Option Exercisability		While the Option remains
in effect under the Option Expiration section below, you may exercise any exercisable portions of the Option (and buy the Option Shares) under the timing rules of this section.

  

 

			The Option will become vested and
                                                                                                                                            exercisable according to the schedule provided in the Award Notice assuming that you remain an employee of the Company or a
                                                                                                                                            member of the Company’s Board of Directors (the “Board”) through each Exercisability Date. For purposes
                                                                                                                                            of this Award Agreement, employment with the Company will include employment with any Affiliate whose employees are then
                                                                                                                                            eligible to receive awards under the Plan. Unless the Compensation Committee (the “Committee”) of the Board
                                                                                                                                            determines otherwise, if an entity employing you ceases to be an Affiliate, your employment with the Company will be treated
                                                                                                                                            as ended even though you continue to be employed by that entity.

 

			Unless otherwise specified in
                                                                                                                                            your employment or separation agreement, if your employment or service ends as a result of your disability or death, the
                                                                                                                                            Option will become vested and fully exercisable on your termination of employment. For this purpose,
                                                                                                                                            “disability” means permanent and total disability as defined by Section 22(e)(3) of the Internal
                                                                                                                                            Revenue Code.

 

			If your employment or service ends
                                                                                                                                            as a result of Retirement, you will be treated as continuing in service for vesting purposes and the vested portion of
                                                                                                                                            the Option shall remain exercisable until (i) the earlier to occur of second anniversary of your Retirement and (ii) the
                                                                                                                                            Option Expiration Date (the “Retirement Period”). Unless determined by the Committee otherwise, any portion of
                                                                                                                                            the Option outstanding but not yet vested on the last day of the Retirement Period shall be forfeited.
                                                                                                                                            “Retirement” for the purpose of this Award Agreement means cessation of service on or after
                                                                                                                                            attaining age 60 and completing five years of service with the Company.

 

	Change in 

Control		In addition
to any terms under your employment or separation agreement, if applicable, in the event
a Change in Control occurs, the Option, including any Performance Option, will be treated as provided in Section 11 of the Plan
(and, if applicable, your employment or separation agreement) if within 24 months following the Change in Control, your employment
or service ends on (i) a termination without Gross Misconduct or (ii) a resignation for good reason as specified under your employment
agreement, if applicable, provided also that the Option will remain outstanding for twelve months following such termination but
not beyond the Option Expiration Date.

 

	Option Expiration		The
Option will expire no later than the close of business on the Option Expiration Date. Unless otherwise specified in your employment
or separation agreement, this Award Agreement, or the Committee determines otherwise, unexercisable portions of the Option expire
immediately when you cease to be employed (unless you are concurrently remaining or becoming a member of the Board, or, for a
Board member, concurrently remaining or becoming an employee of the Company). If the Company terminates your employment or service
for Gross Misconduct, the Option will immediately expire without regard to whether it is then exercisable. “Gross
Misconduct” for purposes of this Award Agreement: (i) shall have the same meaning as “cause” in your
employment or separation agreement if you have an employment or separation agreement with the Company and cause is defined in
such agreement; or (ii) if you do not have an employment or separation agreement or your agreement does not define cause, “gross
misconduct” shall mean the occurrence of one of the following events: (A) your conviction or plea of guilty or nolo contendere
to any felony (or to a felony charge reduced to a misdemeanor) or with respect to your employment to any misdemeanor (other than
a traffic violation), (B) theft or embezzlement of assets of the Company or an Affiliate, or (C) violation of the terms of any
non-competition, non-disclosure or similar agreement with respect to the Company or any Affiliate to which the Plan participant
is a party, including the terms of Appendix A.

 

    	Page 4

     

    

 

			Unless otherwise specified in
                                                                                                                                            your employment or separation agreement, exercisable portions of the Option remain exercisable until the first to occur of
                                                                                                                                            the following (the “Final Exercise Date”), each as defined further in the Plan or this Award
                                                                                                                                            Agreement:

 

		•	Three
                                         months (measured to the corresponding date in the month) after your employment (or directorship)
                                         ends if you resign or if the Company terminates your employment or service without Gross
                                         Misconduct, except as provided above under the Change in Control section;
	 	 	 

		•	For
                                         death or disability, the first anniversary of the date employment or service ends;
	 	 	 

		•	For
                                         Retirement, the end of the second year following your date of Retirement; or
	 	 	 

		•	The
                                         Option Expiration Date.

 

			The Committee can override
                                                                                                                                            the expiration provisions of this Award Agreement as provided in Section 6(b) of the Plan (including without limitation as a
                                                                                                                                            result of a legal prohibition on exercise or an applicable “black-out period” or “lock-up”
                                                                                                                                            agreement).

 

	Method of 

Exercise and
 Payment for 

Shares		Subject to this Award
                                               Agreement and the Plan, you may exercise the Option only by providing a written notice (or notice through another previously
                                               approved method, which could include a voice- or web-based, other electronic, or e-mail system)
                                         to the Corporate Secretary of the Company or the Corporate Secretary’s designee,
                                         received on or before the date the Option expires. Each such notice must satisfy whatever
                                         then-current procedures apply to that Option and must contain such representations (statements
                                         from you about your situation) as the Company requires. You must, at the same time, pay
                                         the Option Exercise Price using one or more of the following methods:

 

	 	Cash/

Check		by cash or check in the amount
of the Option Exercise Price payable to the order of the Company;

 

	 	Cashless		through an approved cashless
exercise method, including directing

 

	 	Exercise		the Company to send the stock
certificates (or other acceptable evidence of ownership) to be issued under the Option to a licensed broker acceptable
to the Company as your agent in exchange for the broker’s tendering to the Company cash (or acceptable cash equivalents)
equal to the Option Exercise Price and, if you so elect, any required tax withholdings;

 

	 	Net Exercise		by delivery
of a notice of “net exercise” to us or as directed by the Company, as a result of which you will receive (i) the number
of Shares underlying the portion of the Option being exercised less (ii) such number of shares as is equal to (x) the aggregate
Option Exercise Price for the portion of the Option being exercised divided by (y) the Fair Market Value on the date of exercise;

 

    	Page 5

     

    

 

		Stock	 	If
                                         permitted by the Committee, by delivery of Shares that you already own having a Fair
                                         Market Value equal to the Option Exercise Price on the date of exercise, provided that
                                         (i) applicable law then permits such method of payment, (ii) you owned such Shares, if
                                         acquired directly from the Company, for such minimum period of time, if any, as the Committee
                                         may establish in its discretion, and (iii) the Shares are not subject to any repurchase,
                                         forfeiture, unfulfilled vesting, or other similar restrictions; or
	 	 	 	 
	 	 	 	any
                                         combination of the above permitted forms for payment.

 

	Withholding		The issuance of the Option
Shares is contingent on satisfaction of all obligations with respect to required tax or other required withholdings (for example,
in the United States, any applicable Federal, state, and local taxes). The Company may take any action permitted under Section
14(c) of the Plan to satisfy such obligation, including, as permitted by the Committee, satisfying the tax obligations by (i)
reducing the number of Option Shares to be issued to you in connection with any exercise of such Option by the number of Option
Shares (valued at their Fair Market Value on the date of exercise) that would equal all taxes required to be withheld (at their
minimum withholding levels, except as otherwise permitted by the Committee or the Board), (ii) accepting payment of the withholdings
directly from you or from a broker in connection with a Cashless Exercise of the Option (as set forth above under Cashless
Exercise), or (iii) taking any other action under Section 14(c) of the Plan.

 

	Compliance

with
Law		You may not exercise the
Option if the Company’s issuing stock upon such exercise would violate any applicable Federal or state securities laws or other laws or regulations. You may not sell
or otherwise dispose of the Option Shares in violation of applicable law. As part of this prohibition, you may not use the Cashless
Exercise methods if the Company’s insider trading policy then prohibits you from selling to the market.

 

	Additional

Conditions

to Exercise		The Company may postpone
issuing and delivering any Option Shares for so long
                                         as the Company determines to be advisable to satisfy the following:

its completing or amending
any securities registration or qualification of the Option Shares or its or your satisfying any exemption from registration
under any Federal or state law, rule, or regulation;

 

its receiving proof
it considers satisfactory that a person seeking to exercise the Option after your death is entitled to do so;

 

your complying with
any requests for representations under the Plan; and/or

 

your complying with
any Federal, state, or local tax withholding obligations.

 

	Additional
Representations from
You		If you exercise the Option
at a time when the Company does not have a current registration
                                         statement (generally on Form S-8) under the Securities Act of 1933 (the “Act”) that covers issuances of shares to you, you must comply with the following before
the Company will issue the Option Shares to you. You must —

 

    	Page 6

     

    

represent to the Company,
in a manner satisfactory to the Company’s counsel, that you are acquiring the Option Shares for your own account and not
with a view to reselling or distributing the Option Shares; and

 

agree that you will
not sell, transfer, or otherwise dispose of the Option Shares unless:

 

a registration statement
under the Act is effective at the time of disposition with respect to the Option Shares you propose to sell, transfer, or otherwise
dispose of; or

 

the Company has received
an opinion of counsel or other information and representations it considers satisfactory to the effect that, because of Rule 144
under the Act or otherwise, no registration under the Act is required.

 

	No Effect on Employment 

or Other Relationship		Nothing in this Award
                                                                 Agreement restricts the Company’s rights or those of any of                                          its Affiliates to
                                                                 terminate your employment or other relationship at any time and for any or no reason. The termination of employment or other
                                                                 relationship, whether
                                         by the Company or any of its Affiliates or otherwise, and regardless of the reason for
                                         such termination, has the consequences provided for under the Plan and any applicable
                                         employment or severance agreement or plan.

 

	Not a Shareholder		You
understand and agree that the Company will not consider you a shareholder for any purpose with respect to any of the Option Shares
until you have exercised the Option, paid for the shares, and received evidence of ownership.

 

	No Effect on Running Business		You understand
and agree that the existence of the Option will not affect in any way the
right or power of the Company or its shareholders to make or authorize any adjustments, recapitalizations, reorganizations, or
other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any
issuance of bonds, debentures, preferred or other stock, with preference ahead of or convertible into, or otherwise affecting
the Shares or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part
of its assets or business, or any other corporate act or proceeding, whether or not of a similar character to those described
above.

 

	Governing Law		The laws of
the State of Delaware will govern all matters relating to the Option, without regard to the principles of conflict of laws, except
as otherwise specified herein or in an appendix attached hereto.

 

	Clawbacks		The Committee may cancel
this Option if you have engaged in or are engaging in activity that is in conflict with or adverse to the interest of the Company
while employed by or providing services to the Company or any subsidiary, including fraud or conduct contributing to any financial
restatements or irregularities. The Committee may cause you to forfeit any compensation, gain or other value realized thereafter
on the vesting or exercise of the Option or the sale of Shares acquired under the Option, and must promptly repay such amounts
to the Company. You agree that the Committee may require you to promptly repay to the Company any amount in excess of what you
should have received under the terms of the Option for any reason (including without limitation by reason of a financial restatement,
mistake in calculations or other administrative error). Furthermore, to the extent required by applicable law (including, without
limitation, Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection
Act) and/or the rules and regulations of NASDAQ or any other securities exchange or inter-dealer quotation service on which the
Shares are listed or quoted, or if so required pursuant to a written policy adopted by the Company, the Option shall be subject
(including on a retroactive basis) to clawback, forfeiture or similar requirements.

 

    	Page 7

     

    

 

	Restrictive Covenants		Attached to this Award Agreement
is Appendix A regarding your applicable “Restrictive
Covenants” (as defined therein). Your confirmation of receipt of this Option provides your consent to the Restrictive
Covenants and to the additional clawback rules set forth in Appendix A.

 

	Notices		Unless the Company specifies
another method of transmitting notice, any notice to the Company under this Award Agreement must be sent in writing, by hand or
by mail, to the office of the Company’s Corporate Secretary at the Company’s then corporate headquarters. The Company
will address any notices to you using its standard electronic communications methods, or to your current office or home address,
as reflected in the Company’s personnel or other business records. You and the Company may change the address for notice
by like notice to the other, and the Company may also change the address for notice by general announcements to the Plan participants.

 

	Amendment		The Committee may amend the
Option without your consent provided that it concludes such amendment is not materially adverse to you, is required for compliance
with Section 409A, or is permitted under Section 12 of the Plan.

 

	Plan Governs		Wherever
a conflict may arise between the terms of this Award Agreement and the terms of the Plan, the terms of the Plan will control.
The Committee may adjust the number of Option Shares, the Option Exercise Price, and other terms of the Option from time to time
as the Plan provides.

 

	Electronic Execution of 

Award
Agreement		You, by your electronic execution of
                                                     this Award Agreement, agree to the terms and conditions contained herein, including the terms set forth in Appendix A [and, if applicable, Appendix B], and further agree to execute any documents requested by
the Company required to effect the issuance of stock to you in connection with your exercise of the Option.

 

    	Page 8

     

    

Appendix
A

 

Restrictive
Covenants

 

<Insert
Applicable Restrictive Covenants>

 

 

 

 

 

 

 

    	Page 9

     

    

Appendix
B

 

Performance
Option for Executive Vice Presidents and Senior Vice Presidents

 

<Insert
Applicable Vesting Schedule>

 

 

 

 

 

 

 

Page 10

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