Document:

Exhibit 10.1

  

   

    

  

    THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

    

    

    THIS THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as of September 30, 2019 (this “Amendment”), is by and among CROSS COUNTRY HEALTHCARE, INC., a Delaware corporation (the “Borrower”),
      the Guarantors party hereto, the Lenders party hereto and SunTrust Bank, in its capacities as Administrative Agent, Swingline Lender and Issuing Bank.

    

    

    RECITALS

    

    

    WHEREAS, the Borrower, the Guarantors from time to time party thereto, the Lenders from time to time party thereto and the
      Administrative Agent are parties to that certain Amended and Restated Credit Agreement, dated as of August 1, 2017 (as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of October 30, 2018, that certain Second
      Amendment to Amended and Restated Credit Agreement dated as of March 29, 2019 and as further amended, restated, supplemented or otherwise modified from time to time, the “Credit
          Agreement”);

    

    

    WHEREAS, the Borrower has requested that the Lenders make certain modifications to the Credit Agreement; and

    

    

    WHEREAS, the Lenders (by act of Required Lenders) have agreed to provide such requested amendments, subject to the terms and conditions
      herein.

    

    

    AGREEMENT

    

    

    NOW, THEREFORE, in consideration of the agreements contained herein, and for other good and valuable consideration, the receipt and
      sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

    

    

    
      1.            Introductory Paragraph and Recitals. The above introductory
          paragraph and recitals of this Amendment are incorporated herein by reference as if fully set forth herein.

      

      

      2.            Definitions. Capitalized terms used herein (including in the recitals hereof) and
          not otherwise defined herein shall have the meanings provided in the Credit Agreement.

    

    

    

    3.            Optional Reduction of Aggregate Revolving Commitments. Pursuant to Section 2.8 of the
        Credit Agreement (other than the requirement for three Business Days’ prior written notice, which is waived below), the Borrower hereby reduces the Aggregate Revolving Commitments from SEVENTY-FIVE MILLION DOLLARS ($75,000,000) to SIXTY-FIVE
        MILLION DOLLARS ($65,000,000), which partial reduction shall apply to reduce proportionately and permanently the Revolving Commitment of each Revolving Lender. The Lenders (by act of the Required Lenders), hereby waive the notice requirements for
        such optional reduction by the company of the Aggregate Revolving Commitments. The Revolving Commitment of each Revolving Lender after giving effect to this optional reduction by the Borrower is as reflected on Schedule I attached hereto.

    

    

    4.            Amendments.

    

    

    (a)            Section 1.1 of the Credit Agreement is amended to include the following new definition in appropriate alphabetical order:

     

    “Third Amendment Effective Date”
      shall mean September 30, 2019.

    
      
        

    

    
     

    (b)            The definition of “Aggregate Revolving Commitments” in Section 1.1 of the Credit Agreement is amended and restated to read as follows:

     

    “Aggregate Revolving Commitments”
      shall mean the Revolving Commitments of all of the Lenders at any time outstanding. On the Third Amendment Effective Date, the Aggregate Revolving Commitments is Sixty-Five Million Dollars ($65,000,000).

     

    (c)            The definition of “Base Rate” in Section 1.1 of the Credit Agreement is amended to add the following sentence at the end thereof:

     

    The term “Base Rate” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
      comprising such Borrowing, bears interest based on the Base Rate.

     

    (d)            The definition of “LC Commitment” in Section 1.1 of the Credit Agreement is amended and restated to read as follows:

     

    “LC Commitment” shall mean
      that portion of the Aggregate Revolving Commitments that may be used by the Borrower for the issuance of Letters of Credit in an aggregate face amount not to exceed Twenty-Five Million Dollars ($25,000,000).

     

    (e)            Section 2.8 of the Credit Agreement is amended by adding a new clause (c) immediately following clause (b) thereof to read as follows:

     

    (c)            The Aggregate Revolving Commitments shall be automatically reduced to (i) $55,000,000 on October 31, 2019, (ii) $45,000,000 on November 30, 2019 and (iii) $35,000,000 on
        December 31, 2019, with each such partial reduction in the Aggregate Revolving Commitments applying to reduce proportionately and permanently the Revolving Commitment of each Revolving Lender (and Schedule I shall be deemed to have been automatically amended and restated to give effect to each such partial reduction contemporaneously with the effectiveness thereof).

     

    (f)            Section 2.9 of the Credit Agreement is amended by adding a new clause (d) immediately following clause (c) thereof to read as follows:

     

    (d)            If at any time the Revolving Credit Exposure of all Lenders exceeds the Aggregate Revolving Commitments, then the Borrower shall immediately repay Swingline Loans and Revolving
        Loans in an amount equal to such excess, together with all accrued and unpaid interest on such excess amount and any amounts due under Section 2.19, with
        any such repayment being applied first to Swingline Loans to the full extent thereof, second to Base Rate Loans and LIBOR Index Rate Loans to the full extent thereof, and finally to Eurodollar Loans to the full extent thereof.

     

    (g)            Section 6.1 of the Credit Agreement is amended by replacing the text “4.25:1.00” in clause (d) thereof with “4.60:1.00”.

     

    (h)            Section 6.2 of the Credit Agreement is amended and restated to read as follows:

    

    

    Section 6.2                          Consolidated Fixed Charge Coverage Ratio. Permit a Consolidated Fixed Charge Coverage
        Ratio as of the end of each Fiscal Quarter, commencing with the Fiscal Quarter ending September 30, 2017, to be less than 1.50:1.00; provided, that
        notwithstanding the foregoing, for the Fiscal Quarter ending September 30, 2019 the Loan Parties shall not permit the Consolidated Fixed Charge Coverage Ratio to be less than 1.10:1.00.

    
      2

      
        

    

    

    

    (i)            Schedule I (Commitment Amounts) to the Credit Agreement is hereby amended in its entirety to read as Schedule I (Commitment Amounts) attached hereto.

    

    

    5.            Amendment Fee. In consideration of the agreements of the Lenders (by act of Required
        Lenders) set forth herein, an amendment fee (the “Amendment Fee”) of 0.40% of the sum of (a) the aggregate amount of the Lenders’ Revolving Commitments as of
        the Effective Date (such amount being determined immediately after giving effect to the reduction of the Aggregate Revolving Commitments contemplated hereby), plus (b) the outstanding principal amount of the Lenders’ Term Loans as of the Effective
        Date, in each case, held by the Consenting Lenders (as defined below), for the account of each Lender that executes and delivers to the Administrative Agent (or its counsel) a signature page to this Amendment so that it is actually received
        (whether as an original or as an electronic transmission in accordance with Section 9(e) below) by the Administrative Agent (or its counsel) no later than
        5:00 pm Eastern Time on September 27, 2019 (such Lenders, the “Consenting Lenders”), shall be (i) fully-earned as of the Effective Date (as defined below),
        (ii) not applied to reduce the Obligations and (iii) due and payable by the Borrower in cash in four equal installments of twenty five percent (25%) of the Amendment Fee with such installments due on each of the Effective Date (such installment,
        the “Effective Date Installment Payment”), October 31, 2019, November 30, 2019 and December 31, 2019; provided, that (A) any unpaid amount of the Amendment Fee shall become automatically due and payable upon acceleration of the Obligations and (B) so long as no Default or Event of Default has occurred and is
        continuing after the Effective Date, any portion of the Amendment Fee that is not yet due and payable shall be cancelled and waived upon payment in full in cash of all Obligations (other than contingent indemnification obligations for which no
        demand has been made in writing, and Cash Collateralized reimbursement obligations). Any portion of the Amendment Fee paid to the Administrative Agent, for the benefit of the Consenting Lenders, shall be non-refundable as of the date of such
        payment.

    

    

    6.            Effectiveness; Conditions Precedent. This Amendment shall be effective on the date
        (the “Effective Date”) that each of the following conditions have been satisfied or waived by the Administrative Agent, in each case as determined by the
        Administrative Agent in its sole discretion:

    

    

    (a)            The Administrative Agent shall have received a counterpart of this Amendment signed by the Administrative Agent, the Required Lenders, the Borrower and each Guarantor.

    

    

    (b)            The Administrative Agent shall have received the Effective Date Installment Payment.

    

    

    (c)            The Administrative Agent shall have received all other fees and other amounts due and payable on or prior to the Effective Date (by provision of a summary invoice to the
        Borrower before the Effective Date), including reimbursement or payment of all out-of-pocket expenses (including reasonable fees, charges and disbursements of counsel to the Administrative Agent) required to be reimbursed or paid by the Borrower
        hereunder, under any other Loan Document and under any agreement with the Administrative Agent.

    

    

    7.            Release. In consideration of the agreements of the Lenders (by act of Required
        Lenders) set forth herein, each Loan Party hereby releases and forever discharges the Administrative Agent, the Lenders (including, for the avoidance of doubt, the Swingline Lender), each Issuing Bank and the Administrative Agent’s, the Lenders’
        (including, for the avoidance of doubt, the Swingline Lender) and each Issuing Bank’s respective predecessors, successors, assigns and Related Parties (collectively, the “Lender
            Group”) from any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever, in each case to the extent arising in connection with any of the Loan Documents
        through the Effective Date, whether arising at law or in equity, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or unforeseen, and whether or not heretofore
        asserted, which any Loan Party may have or claim to have against any member of the Lender Group.

    
      3

      
        

    

    

    

    8.            No Action, Claims. Each Loan Party represents, warrants, acknowledges and confirms
        that, as of the date hereof, it has no knowledge of any action, cause of action, claim, demand, damage or liability of whatever kind or nature, in law or in equity, against any member of the Lender Group arising from any action by such Person, or
        failure of such Person to act, under or in connection with any of the Loan Documents.

    

    

    9.            Miscellaneous.

    

    

    (a)            This Amendment shall be deemed to be, and is, a Loan Document.

    

    

    (b)            Effective as of the Effective Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment.

    

    

    (c)            Each of the Loan Parties (i) acknowledges and consents to all of the terms and conditions of this Amendment, (ii) agrees that this Amendment and all documents, agreements and
        instruments executed in connection herewith do not operate to reduce or discharge its obligations under the Credit Agreement or the other Loan Documents or any certificates, documents, agreements and instruments executed in connection therewith
        (except to the extent such obligations are modified pursuant to this Amendment), (iii) affirms all of its obligations under the Loan Documents (as amended by this Amendment), (iv) agrees that this Amendment and all documents, agreements and
        instruments executed in connection with this Amendment shall in no manner impair or otherwise adversely affect any of the Liens granted in or pursuant to the Loan Documents and (v) affirms that each of the Liens granted in or pursuant to the Loan
        Documents are valid and subsisting.

    

    

    (d)            Each of the Loan Parties hereby represents and warrants to the Administrative Agent and the Lenders as follows:

    

    

    (i)            such Loan Party has taken all necessary action to authorize the execution, delivery and performance of this Amendment;

    

    

    (ii)            this Amendment has been duly executed and delivered by such Loan Party and constitutes such Loan Party’s legal, valid and binding obligations, enforceable in accordance with its
        terms, except as such enforceability may be subject to (A) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (B) general principles of equity (regardless
        of whether such enforceability is considered in a proceeding at law or in equity);

    

    

    (iii)            no consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with
        the execution, delivery or performance by any Loan Party of this Amendment;

    
      4

      
        

    

    

    

    (iv)            all representations and warranties of each Loan Party set forth in the Loan Documents are true and correct in all material respects (other than those representations and
        warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties are true and correct in all respects) except to the extent that such representations and warranties
        specifically refer to an earlier date, in which case they are true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case
        such representations and warranties are true and correct in all respects) as of such earlier date; and

    

    

    (v)            the parties executing this Agreement as Guarantors include each Subsidiary of any Loan Party that is required by the Credit Agreement to become a Guarantor as of the Effective
        Date.

    

    

    (e)            This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts (including by telecopy), and all of said counterparts taken
        together shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment by facsimile transmission or by any other electronic imaging means (including pdf), shall be effective as
        delivery of a manually executed counterpart of this Amendment.

     

    (f)            This Amendment and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Amendment and
        the transactions contemplated hereby shall be construed in accordance with and be governed by the Law of the State of New York.

    

    

    10.            No Other Changes. Except as modified hereby, all of the terms and provisions of the
        Loan Documents shall remain in full force and effect.

    

    

    11.            Fees and Expenses. The Borrower agrees to pay all reasonable out-of-pocket fees and
        expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including without limitation the reasonable fees and expenses of Moore & Van Allen PLLC, counsel to the Administrative Agent.

    

    

    [SIGNATURE PAGES FOLLOW]

    

    

    
      5

      
        

    

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

     

    
      	
              
                 BORROWER:  

                  

              

            	
              CROSS COUNTRY HEALTHCARE, INC., 

              

            
	
               

            	
              a Delaware corporation 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Executive Vice President and CFO

              

            
	
               

            	
               

            
	
              GUARANTORS: 

              

            	
              CEJKA SEARCH, INC., 

              

            
	
               

            	
              a Delaware corporation 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	
               

            
	
               

            	
              CROSS COUNTRY STAFFING, INC., 

              

            
	
               

            	
              
                a Delaware corporation

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	
               

            
	
               

            	
              CROSS COUNTRY SUPPORT SERVICES, LLC, 

              

            
	
               

            	
              a Delaware limited liability company 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	
               

            
	
               

            	
              MDA HOLDINGS, INC., 

              

            
	
               

            	
              a Delaware corporation 

              

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	
               

            
	
               

            	
              ASSIGNMENT AMERICA, LLC, 

              

            
	
               

            	
              a Delaware limited liability company 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            

    

     

    

    

    

    
      
        

    

    
      	
               

            	
              TRAVEL STAFF, LLC, 

              

            
	
               

            	
              a Delaware limited liability company 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	
               

            
	
               

            	
              LOCAL STAFF, LLC, 

              

            
	
               

            	
              a Delaware limited liability company 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:      William Burns

              

            
	
               

            	
              Title:        Vice President

            
	
               

            	
               

            
	
               

            	
              MEDICAL DOCTOR ASSOCIATES, LLC, 

              

            
	
               

            	
              a Delaware limited liability company 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	
               

            
	
               

            	
              CREDENT VERIFICATION AND LICENSING 

              

            
	
               

            	
              SERVICES, LLC, 

              

            
	
               

            	
              a Delaware limited liability company 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	

            
	
               

            	OWS, LLC,
	
               

            	
              a Delaware limited liability company 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	
               

            
	
               

            	
              NEW MEDISCAN II, LLC, 

              

            
	
               

            	
              a California limited liability company 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	 	
              By:            /s/ William Burns

            
	 	
              Name:       William Burns

            
	 	
              Title:         Vice President

            

    

    

    
      
        

    

    
      	
               

            	
              MEDISCAN NURSING STAFFING, LLC, 

              

            
	
               

            	
              a California limited liability company 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	
               

            
	
               

            	
              MEDISCAN DIAGNOSTIC SERVICES, LLC, 

              

            
	
               

            	
              a California limited liability company 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              Name:       William Burns

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	
               

            
	
               

            	
              ADVANTAGE RN, LLC, 

              

            
	
               

            	
              a Delaware limited liability company 

              

            
	
               

            	
              (f/k/a ARNC HOLDCO, LLC) 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:             /s/ William Burns

              

            
	
               

            	
              
                Name:        William Burns

              

            
	
               

            	
              
                Title:          Vice President

              

            
	
               

            	
               

            
	
               

            	
              ADVANTAGE ON CALL, LLC, 

              

            
	
               

            	
              a Delaware limited liability company 

              

            
	
               

            	
              (f/k/a CAOC, LLC) 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:           /s/ William Burns

              

            
	
               

            	
              
                Name:      William Burns

              

            
	
               

            	
              Title:        Vice President

            
	
               

            	
               

            
	
               

            	
              
                ADVANTAGE LOCUMS, LLC,

              

            
	
               

            	
              a Delaware limited liability company 

              

            
	
               

            	
              (f/k/a LTU, LLC) 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	

            

    

    

    

    
      
        

    

    
      	
               

            	
              ADVANTAGE RN LOCAL STAFFING, LLC, 

              

            
	
               

            	
              a Delaware limited liability company 

              

            
	
               

            	
              (f/k/a CARNLS, LLC) 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	
               

            
	
               

            	
              ARNCP, LLC, 

              

            
	
               

            	
              a Delaware limited liability company 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                AMERICAN PERSONNEL, INC.,

              

            
	
               

            	
              a Massachusetts corporation 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ William Burns

              

            
	
               

            	
              
                Name:       William Burns

              

            
	
               

            	
              
                Title:         Vice President

              

            

    

     

    

    

    

    
      
        

    

    
      	
              
                ADMINISTRATIVE

              

            	
              
                SUNTRUST BANK,

              

            
	
              
                AGENT:

              

            	
              
                as Administrative Agent, as an Issuing Bank and as

              

            
	
               

            	
              
                Swingline Lender

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ Juan De Jesus-Caballero

              

            
	
               

            	
              
                Name:       Juan De Jesus-Caballero

              

            
	
               

            	
              
                Title:         Senior Vice President

              

            

    

    

    

    

    
      
        

    

    
      	
              LENDERS: 

              

            	
              SUNTRUST BANK, 

              

            
	
               

            	
              as a Lender 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ Juan De Jesus-Caballero

              

            
	
               

            	
              
                Name:       Juan De Jesus-Caballero

              

            
	
               

            	
              
                Title:         Senior Vice President

              

            

    

    

    

    

    
      
        

    

    
      	
               

            	
              BMO HARRIS BANK N.A., 

              

            
	
               

            	
              as a Lender 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ Jason Deegan

              

            
	
               

            	
              
                Name:       Jason Deegan

              

            
	
               

            	
              
                Title:         Director

              

            

    

    

    

    

    
      
        

    

    
      	
               

            	
              BANK UNITED, N.A., 

              

            
	
               

            	
              as a Lender 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ John Winn

              

            
	
               

            	
              
                Name:       John Winn

              

            
	
               

            	
              
                Title:         SVP

              

            

      

      

    

    

    

    
      
        

    

    
      	
               

            	
              FIFTH THIRD BANK, 

              

            
	
               

            	
              as a Lender 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ Ellie Robertson

              

            
	
               

            	
              
                Name:       Ellie Robertson

              

            
	
               

            	
              
                Title:         Officer

              

            

    

     

    

    

    

    
      
        

    

    
      	
               

            	
              
                BANK OF AMERICA, N.A.,

              

            
	
               

            	
              as a Lender 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ G. Christopher Miller

              

            
	
               

            	
              
                Name:       G. Christopher Miller

              

            
	
               

            	
              
                Title:         Senior Vice President

              

            

    

     

    

    

    

    
      
        

    

    
      	
               

            	
              CADENCE BANK, 

              

            
	
               

            	
              as a Lender 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ Will Donnelly

              

            
	
               

            	
              
                Name:       Will Donnelly

              

            
	
               

            	
              
                Title:         Portfolio Manager

              

            

    

     

    

    

    

    
      
        

    

    
      	
               

            	
              CAPITAL BANK-a division of FIRST TENNESSEE 

              

            
	
               

            	
              BANK NATIONAL ASSOCIATION, as a Lender 

              

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              
                By:            /s/ Dilian Schulz

              

            
	
               

            	
              
                Name:       Dilian Schulz

              

            
	
               

            	
              
                Title:         Senior Vice President

              

            

    

     

    

     

    
      
        

    

    SCHEDULE I

    

    

    Commitment Amounts

    

    

    	
             

             

            Lenders

          	 	
            Revolving Commitment as of the Third Amendment Effective Date

          	 	 	
            Pro Rata Share of Revolving Commitment

          	 	 	
            Term Loan A Commitment as of the Effective Date 1

          	 	 	
            Pro Rata Share of Term Loan A Commitment

          	 
	
            SunTrust Bank

          	 	
            $

          	
            12,848,837.22

          	 	 	 	
            19.767441870

          	
            %

          	 	
            $

          	
            19,767,441.85

          	 	 	 	
            19.767441850

          	
            %

          
	
            BMO Harris Bank N.A.

          	 	
            $

          	
            11,337,209.30

          	 	 	 	
            17.441860461

          	
            %

          	 	
            $

          	
            17,441,860.47

          	 	 	 	
            17.441860470

          	
            %

          
	
            Bank United, N.A.

          	 	
            $

          	
            10,581,395.35

          	 	 	 	
            16.279069765

          	
            %

          	 	
            $

          	
            16,279,069.77

          	 	 	 	
            16.279069770

          	
            %

          
	
            Fifth Third Bank

          	 	
            $

          	
            10,581,395.35

          	 	 	 	
            16.279069765

          	
            %

          	 	
            $

          	
            16,279,069.77

          	 	 	 	
            16.279069770

          	
            %

          
	
            Bank of America, N.A.

          	 	
            $

          	
            10,581,395.35

          	 	 	 	
            16.279069765

          	
            %

          	 	
            $

          	
            16,279,069.77

          	 	 	 	
            16.279069770

          	
            %

          
	
            Cadence Bank

          	 	
            $

          	
            6,046,511.63

          	 	 	 	
            9.302325583

          	
            %

          	 	
            $

          	
            9,302,325.58

          	 	 	 	
            9.302325580

          	
            %

          
	
            Capital Bank

          	 	
            $

          	
            3,023,255.81

          	 	 	 	
            4.651162791

          	
            %

          	 	
            $

          	
            4,651,162.79

          	 	 	 	
            4.651162790

          	
            %

          
	
            Total:

          	 	
            $

          	
            65,000,000.00

          	 	 	 	
            100.000000000

          	
            %

          	 	
            $

          	
            100,000,000.00

          	 	 	 	
            100.000000000

          	
            %

          

    

    

     

    

    

    

    1 Pursuant to Section 2.8(a) of the Credit Agreement, the Term Loan A Commitments terminated upon the making of the Term Loan A pursuant to Section
      2.5 of the Credit Agreement on or about the Effective Date.Exhibit

Exhibit 10.1

TRANSDIGM GROUP INCORPORATED
2019 STOCK OPTION PLAN
1. Purpose.
The purpose of the Plan is to assist the Company in attracting, retaining, motivating and rewarding certain key employees, officers, directors and consultants of the Company and its Affiliates, and promoting the creation of long-term value for stockholders of the Company by closely aligning the interests of such individuals with those of such stockholders. The Plan authorizes the award of Options to Eligible Persons to encourage such persons to expend their maximum efforts in the creation of stockholder value.  The Plan does not authorize the issuance of any equity awards other than Options.
2. Definitions.
For purposes of the Plan and related Option Agreements, the following terms shall be defined as set forth below:
(a) “Affiliate” means, with respect to any entity, any other entity that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such entity.
(b) “Applicable Laws” means the requirements related to or implicated by the administration or the Plan under applicable state corporate law, federal and statute securities laws, the Code, any stock exchange or quotation system on which the shares of Stock are listed or quoted and the applicable laws of any foreign country or jurisdiction where Options are granted under the Plan.
(c) “Board” means the Board of Directors of the Company.
(d) “Cause” means, in the absence of any employment agreement between a Participant and the Employer otherwise defining Cause, (i) acts of personal dishonesty, gross negligence or willful misconduct on the part of a Participant in the course of his or her employment or services; (ii) a Participant’s engagement in conduct that results, or could be reasonably expected to result, in material injury to the reputation or business of the Company or its Affiliates; (iii) misappropriation by a Participant of the assets or business opportunities of the Company or its Affiliates; (iv) embezzlement or fraud committed by a Participant, at his or her direction, or with his or her personal knowledge; (v) a Participant’s conviction by a court of competent jurisdiction of, or pleading “guilty” or “no contest” to, (x) a felony, or (y) any other criminal charge (other than minor traffic violations) that has, or could be reasonably expected to have, an adverse impact on the performance of the Participant’s duties to the Company or its Affiliates; or (vi) failure by a Participant to follow the lawful directions of a superior officer or the Board. If there is an employment agreement between a Participant and the Employer defining Cause, “Cause” shall have the meaning provided in such agreement. Unless an applicable employment agreement otherwise provides, the Committee, in its absolute discretion, will determine the effect of all matters on questions relating to whether a Participant has been discharged for Cause.
(e) “Change in Control” means:
(i) A change in ownership or control of the Company effected through a transaction or series of transactions (other than an offering of Stock to the general public through a registration statement filed with the Securities and Exchange Commission) whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company or any of its Affiliates, or an employee benefit plan maintained by the Company or any of its Affiliates) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than fifty percent (50%) of the total combined voting power of the Company’s securities outstanding immediately after such acquisition;
(ii) Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”), cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board; or
(iii) the sale or disposition, in one or a series of related transactions, of all or substantially all of the assets of the Company to any “person” or “group” (as such terms are defined in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) other than the Company’s Affiliates.

(f) “Code” means the Internal Revenue Code of 1986, as amended from time to time, including regulations thereunder and successor provisions and regulations thereto.
(g) “Committee” means the Board or such other committee appointed by the Board consisting of two or more individuals.
(h) “Company” means TransDigm Group Incorporated, a Delaware corporation.
(i) “Disability” means, in the absence of any employment agreement between a Participant and the Employer otherwise defining Disability, the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code. If there is an employment agreement between a Participant and the Employer defining Disability, “Disability” has the meaning provided in such agreement.
(j) “Disqualifying Disposition” means any disposition (including any sale) of Stock acquired by exercise of an Incentive Stock Option made within the period that is (i) two years after the date the Participant was granted the Incentive Stock Option or (ii) one year after the date the Participant acquired Stock by exercising the Incentive Stock Option.
(k) “Effective Date” shall mean the date this Plan is adopted by the Board of Directors.
(l) “Eligible Person” means (i) each employee of the Company or of any of its Affiliates, including each such person who may also be a director of the Company and/or its Affiliates; (ii) each non-employee director of the Company and/or its Affiliates; (iii) each other person who provides substantial consulting or advisory services to the Company and/or its Affiliates and who is designated as eligible by the Committee; and (iv) any person who has been offered employment by the Company or its Affiliates; provided, that such prospective employee may not receive any payment or exercise any right relating to an Option until such person has commenced employment with the Company or its Affiliates. An employee on an approved leave of absence may be considered as still in the employ of the Company or its Affiliates for purposes of eligibility for participation in the Plan.
(m) “Employer” means either the Company or an Affiliate of the Company that the Participant (determined without regard to any transfer of an Option) is principally employed by or provides services to, as applicable.
(n) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, including rules thereunder and successor provisions and rules thereto.
(o) “Expiration Date” means the date upon which the term of an Option expires, as determined under Section 5(b).
(p) “Fair Market Value” means (i) if the Stock is listed on a national securities exchange, the closing price reported on the primary exchange with which the Stock is listed and traded on the date of determination, or if there is no such sale on that date, then on the last preceding date on which such a sale was reported, or (ii) if the Stock is not listed on any national securities exchange but is listed on the Nasdaq National Market System, the last sale price reported on the date of determination, or, if there is no such sale on that date then on the last preceding date on which such a sale was reported. If the Stock is not listed on a national securities exchange or the Nasdaq National Market System, the Fair Market Value means the amount determined by the Board in good faith to be the fair market value per share of Stock, on a fully diluted basis.

(q) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.
(r) “Nonqualified Stock Option” means an Option not intended to qualify as an Incentive Stock Option.
(s) “Option” means a conditional right, granted to a Participant under Section 5, to purchase Stock at a specified price during specified time periods. Options under the Plan may be Incentive Stock Options or Nonqualified Stock Options.
(t) “Option Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual Option grant.
(u) “Participant” means an Eligible Person who has been granted an Option under the Plan, or if applicable, such other person or entity who holds an Option.
(v) “Plan” means this TransDigm Group Incorporated 2019 Stock Option Plan.
(w) “Qualified Member” means a member of the Committee who is a “Non-Employee Director” within the meaning of Rule 16b-3.
(x) “Securities Act” means the Securities Act of 1933, as amended from time to time, including rules thereunder and successor provisions and rules thereto.
(y) “Stock” means the Company’s common stock, $0.01 par value, and such other securities as may be substituted for Stock pursuant to Section 6.

3. Administration.
(a) Authority of the Committee. Except as otherwise provided below, the Plan shall be administered by the Committee. The Committee has full and final authority, in each case subject to and consistent with the provisions of the Plan, to (i) select Eligible Persons to become Participants; (ii) grant Options; (iii) determine the type, number of shares of Stock subject to, and other terms and conditions of, and all other matters relating to, Options; (iv) prescribe Option agreements (which need not be identical for each Participant) and rules and regulations for the administration of the Plan; (v) construe and interpret the Plan and Option agreements and correct defects, supply omissions, or reconcile inconsistencies therein; and (vi) make all other decisions and determinations as the Committee may deem necessary or advisable for the administration of the Plan. The foregoing notwithstanding, the Board shall perform the functions of the Committee for purposes of granting Options under the Plan to non-employee directors. In any case in which the Board is performing a function of the Committee under the Plan, each reference to the Committee herein shall be deemed to refer to the Board, except where the context otherwise requires. Any action of the Committee shall be final, conclusive and binding on all persons, including, without limitation, the Company, its Affiliates, Eligible Persons, Participants and beneficiaries of Participants.
(b) Manner of Exercise of Committee Authority. At any time that a member of the Committee is not a Qualified Member, any action relating to an Option granted or to be granted to a Participant who is then subject to Section 16 of the Exchange Act in respect of the Company may be taken either by such a subcommittee or by the Committee but with each such member who is not a Qualified Member abstaining or recusing himself or herself from such action; provided, that upon such abstention or recusal, the Committee remains composed of two or more Qualified Members. Such action, authorized by such a subcommittee or by the Committee upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the Committee for purposes of the Plan. The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee.

(c) Delegation. The Committee may delegate to officers or employees of the Company or any of its Affiliates, or committees thereof, the authority, subject to such terms as the Committee shall determine, to perform such functions, including but not limited to administrative functions, as the Committee may determine appropriate. The Committee may appoint agents to assist it in administering the Plan. Notwithstanding the foregoing or any other provision of the Plan to the contrary, any Option granted under the Plan to (i) any person who is an “insider” within the meaning of Section 16 of the Exchange Act or (ii) any person or entity who is not an employee of the Company or any of its Affiliates shall be expressly approved by the Committee.
(d) Section 409A. The Committee shall take into account compliance with Section 409A of the Code in connection with any grant of an Option under the Plan, to the extent applicable.
4. Shares Available Under the Plan.
(a) Number of Shares Available for Delivery. Subject to adjustment as provided in Section 6, the total number of shares of Stock reserved and available for delivery in connection with Options under the Plan is 4,000,000. Shares of Stock delivered under the Plan shall consist of authorized and unissued shares or previously issued shares of Stock reacquired by the Company on the open market or by private purchase.
(b) Share Counting Rules. The Committee may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or substitute awards) and make adjustments if the number of shares of Stock actually delivered differs from the number of shares previously counted in connection with an Option. To the extent that an Option expires or is canceled, forfeited, or otherwise terminated without a delivery to the Participant of the full number of shares to which the Option related, the undelivered shares will again be available for grant; provided, however, that any shares subject to an Option that are surrendered to pay the exercise price or taxes related to the exercise of such Option shall not be available for re-granting and shall be extinguished from the Plan.
(c) Award Limitation. Subject to the provisions of Section 8, no Employee shall be eligible to be granted Options covering more than 1,500,000 shares of Stock during any calendar year. This subsection (c) shall not apply until the earliest date required by Section 162(m) of the Code and the rules and regulations promulgated thereunder.
5. Options.
(a) General. Options may be granted to Eligible Persons in such form and having such terms and conditions as the Committee shall deem appropriate; provided, however, that Incentive Stock Options may only be granted to Eligible Persons who are employed by the Employer and in accordance with Section 5(h). The provisions of separate Options shall be set forth in an Option Agreement, which agreements need not be identical.
(b) Term. The term of each Option shall be set by the Committee at the time of grant; provided, however, that no Option granted hereunder shall be exercisable after the expiration of ten (10) years from the date it was granted.

(c) Exercise Price. The exercise price per share of Stock for each Option shall be set by the Committee at the time of grant but shall not be less than the Fair Market Value of a share of Stock on the date of grant.
(d) Payment for Stock. Payment for shares of Stock acquired pursuant to Options granted hereunder shall be made in full, upon exercise of the Options and paid, to the extent permitted by applicable statutes and regulations: (a) in immediately available funds in United States dollars, or by certified or bank cashier’s check at the time the option is exercised; (ii) by surrender to the Company of shares of Stock that (A) have been held by the Participant for at least six-months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes), or (B) were acquired from a person other than the Company (i.e., a stock-for-stock exchange); (iii) a “cashless” exercise program established with a broker selected by the Company; or (iv) at the discretion of the Committee, (A) by reduction in the number of shares of Common Stock otherwise deliverable upon
exercise of such Option with a Fair Market Value on the date of exercise equal to the aggregate Option Exercise Price or (B) in any other form of legal consideration that may be acceptable to the Committee; or (v) by any combination of the foregoing methods. Anything herein to the contrary notwithstanding, the Company shall not directly or indirectly extend or maintain credit, or arrange for the extension of credit, in the form of a personal loan to or for any director or executive officer of the Company through the Plan in violation of Section 402 of the Sarbanes-Oxley Act of 2002 (“Section 402 of SOX”), and to the extent that any form of payment would, in the opinion of the Company’s counsel, result in a violation of Section 402 of SOX, such form of payment shall not be available.
(e) Vesting. Options shall vest and become exercisable in such manner, on such date or dates, or upon the achievement of performance or other conditions, in each case, as may be determined by the Committee and set forth in the Option Agreement; provided, however, that notwithstanding any such vesting dates, the Committee may in its sole discretion accelerate the vesting of any Option, which acceleration shall not affect the terms and conditions of any such Option other than with respect to vesting. Unless otherwise specifically determined by the Committee, the vesting of an Option shall occur only while the Participant is employed or rendering services to the Employer, and all vesting shall cease upon a Participant’s termination of employment or services with the Employer for any reason. If an Option is exercisable in installments, such installments or portions thereof that become exercisable shall remain exercisable until the Option expires.
(f) Transferability of Options. An Incentive Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant. Nonqualified Stock Options shall not be transferable except by will or the laws of descent and distribution, except that the Committee may permit any portion of a Nonqualified Stock Option to be transferred to, exercised by and paid to certain persons or entities related to such Participant, including but not limited to members of such Participant’s family, charitable institutions or trusts or other entities whose beneficiaries or beneficial owners are members of such Participant’s family and/or charitable institutions, or to such other persons or entities as may be expressly approved by the Committee, pursuant to such conditions and procedures as the Committee may establish. Any permitted transfer shall be subject to the condition that the Committee receive evidence satisfactory to it that the transfer is being made for estate and/or tax planning purposes (or to a “blind trust” in connection with such Participant’s termination of employment or service with the Company or a Subsidiary to assume a position with a governmental, charitable, educational or similar non-profit institution) and on a basis consistent with the Company’s lawful issue of securities. 
(g) Termination of Employment or Service. Except as may otherwise be provided by the Committee in the Option Agreement or otherwise:
(i) If prior to the Expiration Date, a Participant’s employment or service, as applicable, with the Employer terminates for any reason other than (A) by the Employer for Cause, or (B) by reason of the Participant’s death or Disability, (1) all vesting with respect to the Options shall cease, (2) any unvested Options shall expire as of the date of such termination, and (3) any vested Options shall remain exercisable until the earlier of the Expiration Date or the date that is six (6) months after the date of such termination.
(ii) If prior to the Expiration Date, a Participant’s employment or service, as applicable, with the Employer terminates by reason of such Participant’s death or Disability, (A) all vesting with respect to the Options shall cease, (B) any unvested Options shall expire as of the date of such termination, and (C) any vested Options shall expire on the earlier of the Expiration Date or the date that is twelve (12) months after the date of such termination due to death or Disability of the Participantand shall be exercisable by the person or persons to whom a Participant’s rights under the Options pass by will or the applicable laws of descent and distribution.
(iii) If prior to the Expiration Date, a Participant’s employment or service, as applicable, with the Employer is terminated by the Employer for Cause, all Options (whether or not vested) shall immediately expire as of the date of such termination.

(h) Special Provisions Applicable to Incentive Stock Options.
(i) No Incentive Stock Option may be granted to any Participant who, at the time the option is granted, owns directly, or indirectly within the meaning of Section 424(d) of the Code, stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any parent or subsidiary thereof, unless such Option (A) has an exercise price of at least one hundred ten percent (110%) of the Fair Market Value on the date of the grant of such Option; and (B) cannot be exercised more than five (5) years after the date it is granted.

(ii) To the extent the aggregate Fair Market Value (determined as of the date of grant) of Stock for which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under all plans of the Company and its Affiliates) exceeds $100,000, such excess Incentive Stock Options shall be treated as Nonqualified Stock Options.
(iii) Each Participant who receives an Incentive Stock Option must agree to notify the Company in writing immediately after the Participant makes a Disqualifying Disposition of any Stock acquired pursuant to the exercise of an Incentive Stock Option.
6. Adjustment for Recapitalization, Merger, etc.
(a) Capitalization Adjustments. The aggregate number of shares of Stock that may be granted or purchased pursuant to Options granted hereunder, the number of shares that may be granted or purchased pursuant to Options in any calendar year, the number of shares of Stock covered by each outstanding Option, and the price per share thereof in each such Option shall be equitably and proportionally adjusted or substituted, as determined by the Committee, as to the number, price or kind of a share of Stock or other consideration subject to such Options (i) in the event of changes in the outstanding Stock or in the capital structure of the Company by reason of stock dividends, stock splits, reverse stock splits, recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, or other relevant changes in capitalization occurring after the date of grant of any such Option; or (ii) in the event of any change in applicable laws or any change in circumstances that results in or would result in any substantial dilution or enlargement of the rights granted to, or available for, Participants in the Plan.
(b) Corporate Events. Notwithstanding the foregoing, except as may otherwise be provided in an Option agreement, in the event of (i) a merger or consolidation involving the Company in which the Company is not the surviving corporation; (ii) a merger or consolidation involving the Company in which the Company is the surviving corporation but the holders of shares of Stock receive securities of another corporation and/or other property, including cash; (iii) a Change in Control; or (iv) the reorganization or liquidation of the Company (each, a “Corporate Event”), in lieu of providing the adjustment set forth in subsection (a) above, the Committee may, in its discretion, “cash-out” vested and/or unvested Options by providing that such vested and/or unvested Options shall be cancelled as of the consummation of such Corporate Event, and that holders of Options will receive a payment in respect of cancellation of their Options based on the amount of the per share consideration being paid for the Stock in connection with such Corporate Event, less, in the case of Options and other Options subject to exercise, the applicable exercise price; provided, however, that holders of “performance vested” Options shall only be entitled to consideration in respect of cancellation of such Options to the extent that applicable performance criteria are achieved prior to or as a result of such Corporate Event, and shall not otherwise be entitled to payment in consideration of cancelled unvested Options. Payments to holders pursuant to the preceding sentence shall be made in cash, or, in the sole discretion of the Committee, in such other consideration necessary for a holder of an Option to receive property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to such transaction, the holder of the number of shares of Stock covered by the Option at such time.
(c) Fractional Shares. Any such adjustment may provide for the elimination of any fractional share that might otherwise become subject to an Option.
7. Use of Proceeds.
The proceeds received from the sale of Stock pursuant to the Plan shall be used for general corporate purposes.
 
8. Rights and Privileges as a Stockholder.
Except as otherwise specifically provided in the Plan, no person shall be entitled to the rights and privileges of stock ownership in respect of shares of Stock that are subject to Options hereunder until such shares have been issued to that person.

9. Employment or Service Rights.
No individual shall have any claim or right to be granted an Option under the Plan or, having been selected for the grant of an Option, to be selected for a grant of any other Option. Neither the Plan nor any action taken hereunder shall be construed as giving any individual any right to be retained in the employ or service of the Company or an Affiliate of the Company.
10. Compliance with Laws.
The obligation of the Company to deliver Stock upon vesting and/or exercise of any Option shall be subject to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Option to the contrary, the Company shall be under no obligation to offer to sell or to sell and shall be prohibited from offering to sell or selling any shares of Stock pursuant to an Option unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and Exchange Commission or unless the Company has received an opinion of counsel, satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register for sale or resale under the Securities Act any of the shares of Stock to be offered or sold under the Plan or any shares of Stock issued upon exercise or settlement of Options. If the shares of Stock offered for sale or sold under the Plan are offered or sold pursuant to an exemption from registration under the Securities Act, the Company may restrict the transfer of such shares and may legend the Stock certificates representing such shares in such manner as it deems advisable to ensure the availability of any such exemption.
11. Withholding Obligations.
As a condition to the vesting and/or exercise of any Option, the Committee may require that a Participant satisfy, through deduction or withholding from any payment of any kind otherwise due to the Participant, or through such other arrangements as are satisfactory to the Committee, the minimum amount of all Federal, state and local income and other taxes of any kind required or permitted to be withheld in connection with such vesting and/or exercise. The Committee, in its discretion, may permit shares of Stock to be used to satisfy tax withholding requirements and such shares shall be valued at their Fair Market Value as of the settlement date of the Option; provided, however, that the aggregate Fair Market Value of the number of shares of Stock that may be used to satisfy tax withholding requirements may not exceed the minimum statutory required withholding amount with respect to such Option.
13. Amendment of the Plan or Options.
(a) Amendment of Plan. The Board at any time, and from time to time, may amend the Plan; provided, however, that, except as contemplated by Section 6, no amendment shall be effective unless approved by the stockholders of the Company to the extent stockholder approval is necessary to satisfy any Applicable Laws. At the time of such amendment, the Board shall determine, upon advice of counsel, whether such amendment will be contingent on stockholder approval.
(b) Amendment of Options. The Committee, at any time, and from time to time, may amend the terms of any one or more Option awards; provided, however, that the rights under any Option shall not be impaired by any such amendment unless the Participant consents in writing.
14. Termination or Suspension of the Plan.
The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the Effective Date. No Options may be granted under the Plan while the Plan is suspended or after it is terminated.

15. Effective Date of the Plan.
The Plan is effective as of the date of adoption by the Board of Directors.
16. Miscellaneous.
(a) Participants Outside of the United States. The Committee may modify the terms of any Option under the Plan made to or held by a Participant who is then a resident or primarily employed outside of the United States in any manner deemed by the Committee to be necessary or appropriate in order that such Option shall conform to laws, regulations and customs of the country in which the Participant is then a resident or primarily employed, or so that the value and other benefits 

of the Option to the Participant, as affected by foreign tax laws and other restrictions applicable as a result of the Participant’s residence or employment abroad, shall be comparable to the value of such Option to a Participant who is a resident or primarily employed in the United States. An Option may be modified under this Section 16(a) in a manner that is inconsistent with the express terms of the Plan, so long as such modifications will not contravene any applicable law or regulation or result in actual liability under Section 16(b) of the Exchange Act for the Participant whose Option is modified.
(b) No Liability of Committee Members. No member of the Committee shall be personally liable by reason of any contract or other instrument executed by such member or on his or her behalf in his or her capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each member of the Committee and each other employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim) arising out of any act or omission to act in connection with the Plan unless arising out of such person’s own fraud or willful bad faith; provided, however, that approval of the Board shall be required for the payment of any amount in settlement of a claim against any such person. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s certificate or articles of incorporation or by-laws, each as may be amended from time to time, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.
(c) Payments Following Accidents or Illness. If the Committee finds that any person to whom any amount is payable under the Plan is unable to care for his or her affairs because of illness or accident, or is a minor, or has died, then any payment due to such person or his or her estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if the Committee so directs the Company, be paid to his or her spouse, child, relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor.
(d) Governing Law. The Plan shall be governed by and construed in accordance with the internal laws of the State of Delaware without reference to the principles of conflicts of laws thereof.
(e) Funding. No provision of the Plan shall require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors of the Company, except that insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as other employees under general law.
(f) Reliance on Reports. Each member of the Committee and each member of the Board shall be fully justified in relying, acting or failing to act, and shall not be liable for having so relied, acted or failed to act in good faith, upon any report made by the independent public accountant of the Company and its Affiliates and upon any other information furnished in connection with the Plan by any person or persons other than such member.

(g) Titles and Headings. The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.
(h) Clawback. Notwithstanding any other provisions in the Plan, Options, any shares of Stock acquired on exercise and any proceeds from the sale thereof will be subject to such deduction and clawback recovery to the extent required by Applicable Laws.

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