Exhibit 10.6
BELK INC. 2010 INCENTIVE STOCK PLAN
2011-2013 Stretch Incentive Plan
CERTIFICATE
This CERTIFICATE and the attached Exhibit A set forth the terms and conditions
under which Belk will issue shares of Belk, Inc. Class B common stock (“Stock”)
to Executive based on the extent to which Belk meets or exceeds the Performance
Goals for the Performance Period of the 2011-2013 Stretch Incentive Plan
(“SIP”), all as defined in this Certificate and Exhibit A. All of the terms used
in this CERTIFICATE and in Exhibit A that begin with a capital letter are either
defined in this CERTIFICATE, in Exhibit A or in the Belk Inc. 2010 Incentive
Stock Plan, which is incorporated by reference.

             
Executive:
           
 
   
 
   
Target Award:
    $      
 
           

          Performance Goals for the Performance Period  
Cumulative Sales Goal
($ in Million)
       
 
       
EBIT Goal
       

            BELK INC.
      BY:           Adam Orvos, EVP Human Resources

    DATE:
 
   

 

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EXHIBIT A
Terms and Conditions
§ 1. Executive. The term “Executive” means the Belk executive who has been
selected within the first 90 days of the Performance Period by the Committee in
its discretion to participate in the SIP for the Performance Period.
§ 2. Target Award. The term “Target Award” means the dollar amount shown
opposite such term on the CERTIFICATE. Although the Target Award is expressed as
a dollar amount, any amounts owed pursuant to the SIP will be satisfied solely
through the issuance of shares of Stock under the Belk Inc. 2010 Incentive Stock
Plan.
§ 3. Definitions.
     3.1 Business Criteria. The term “Business Criteria” for purposes of this
Program means (1) Belk’s cumulative sales, and (2) Belk’s cumulative normalized
earnings before interest and taxes.
     3.2 Committee. The term “Committee” means the Compensation Committee of the
Board of Directors of Belk, or, if all the members of such Committee fail to
satisfy the requirements to be an “outside director” under § 162(m) of the Code,
a sub-committee of such committee which consists solely of members who satisfy
such requirements.
     3.3 Delayed Issuance Date. The term “Delayed Issuance Date” means the last
day of Belk’s fiscal year that immediately follows the Performance Period.
     3.4 Performance Period. The term “Performance Period” means the period of
ten consecutive Belk fiscal quarters that begins on the first day of the third
quarter of Belk’s fiscal year 2011 and ends on the last day of Belk’s fiscal
year 2013.

 

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§ 4. Performance Goals.
     4.1 General. The Committee shall set forth in writing the Performance Goals
for each Participant for the Performance Period no later than 90 days after the
beginning of the Performance Period based on such Business Criteria as the
Committee deems appropriate under the circumstances. The Committee shall have
the right to use different Business Criteria for different Participants, and the
Committee shall have the right to set different Performance Goals for
Participants whose goals look to the same Business Criteria. The Business
Criteria for each Participant may be based on company-wide performance,
division-specific performance, department-specific performance, personal
performance or on any combination of such criteria. No later than 90 days after
the beginning of the Performance Period, the Committee shall establish the
general, objective rules which the Committee will use to determine the extent,
if any, that a Participant’s Performance Goals have been met and the specific,
objective rules, if any, regarding any exceptions to the use of such general
rules. Further, in determining whether the Performance Goals for the Performance
Period have been satisfied, the Committee may look at the performance of Belk on
the first day of the Performance Period, the last day of the Performance Period,
or either such date if there is an acquisition, disposition, or other corporate
transaction involving Belk during the Performance Period.

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     4.2 Specific Performance Goals. The Performance Goals for the Performance
Period shall be based on a Cumulative Sales Goal and/or a Cumulative EBIT Goal.
     4.3 Cumulative Sales Goal.
     (a) Goal and Goal Adjustments. The term “Cumulative Sales Goal” means the
cumulative sales (not including leased department sales) goal for Belk for the
Performance Period.
     (b) Target Award Subject to Goal. Fifty percent (50%) of the Target Award
shall be subject to the Cumulative Sales Goal, and no portion of the Target
Award shall be issuable to Executive for the Performance Period under this § 4.3
if Belk’s cumulative sales for the Performance Period are less than or equal to
95% of the Cumulative Sales Goal for such period.
     (c) Percentage of Target Award to be Issued. If Belk’s cumulative sales for
the Performance Period exceed 95% of the Cumulative Sales Goal for such period,
then the percentage of the Target Award issuable (subject to § 5 and § 6) under
this § 4.3 to Executive shall be based on the percentage of the Cumulative Sales
Goal which Belk reaches as outlined in Exhibit B — Sales Scale.
     4.4 EBIT Goal.
     (a) Goal and Goal Adjustments. The term “EBIT Goal” means the earnings
before interest and taxes goal for Belk for the Performance Period.
     (b) Target Award Subject to Goal. Fifty percent (50%) of the Target Award
shall be subject to the EBIT Goal, and no portion of the

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Target Award shall be issuable to Executive for the Performance Period under
this § 4.4 if Belk’s earnings before interest and taxes for the Performance
Period is less than or equal to 74% of the EBIT Goal for such period.
     (c) Percentage of Target Award to be Issued. If Belk’s earnings before
interest and taxes for the Performance Period exceed 74% of the EBIT Goal for
such period, then the percentage of the Target Award issuable (subject to § 5
and § 6) under this § 4.4 to Executive shall be based on the percentage of the
EBIT Goal as outlined in Exhibit B -— EBIT Scale.
     4.5 Rounding and Interpolation. All percentage figures computed under this
§ 4 shall be rounded down to the nearest one tenth (1/10th) of a percent, all
dollar figures computed under this § 4 shall be rounded to the nearest dollar,
the number of shares of Stock issuable under § 4.6 shall be rounded up to the
nearest whole share and the Committee shall (wherever the Committee deems
appropriate) interpolate between the percentages shown in § 4.3 and § 4.4 to
determine the amount of the Target Award to be issued to Executive.
     4.6 Certification. As soon as practical (and in any event within 75 days)
after the end of the Performance Period, the Committee shall certify the extent,
if any, to which the Performance Goals set for each Participant for the
Performance Period have been met and shall determine the percentage of the
Target Award, if any, issuable to a Participant based on the extent, if any, to
which he or she met his or her Performance Goals. However, the Committee shall
have the right to reduce (but not to increase) the percentage of the Target
Award determined under this § 4 to the extent that the

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Committee acting in its discretion determines that the Performance Goals set for
a Participant for the Performance Period no longer were appropriate for such
Participant at the end of such Performance Period. If the Committee certifies
that a percentage of the Target Award is issuable to a Participant for any
Performance Period, the Committee shall determine the dollar amount represented
by such percentage. The Committee will then convert such dollar amount into a
number of whole shares of Stock by dividing such dollar amount by the Fair
Market Value of a share of Stock on the date such shares are issued. Such shares
of Stock shall be issued under the Belk Inc. 2010 Incentive Stock Plan with
fifty percent of such shares of Stock to be issued as soon as practical after
such certification has been made and in any event no later than 21/2 months
after the end of the calendar year which includes the last day of the
Performance Period, provided the employment requirement under § 5 is satisfied
on the last day of the Performance Period. The remaining fifty percent of the
number of shares of Stock issuable for the Performance Period shall be issued
under the Belk Inc. 2010 Incentive Stock Plan as soon as practical after the
Delayed Issuance Date (provided the employment requirement in § 5 is satisfied
on the Delayed Issuance Date) and in any event no later than 2 1/2 months after
the Delayed Issuance Date.
     4.7 Maximum Shares of Stock. The maximum number of Shares of Stock issuable
in any calendar year under this § 4 to Executive for the Performance Period
shall be equal to the maximum number of shares permitted to be issued pursuant
to a Stock Grant under § 6 of the Belk, Inc. 2010 Incentive Stock Plan for such
calendar year.
§ 5. Employment Requirement.
     5.1 General Rule. Executive shall forfeit Executive’s right to the issuance
of any shares of Stock pursuant to § 4.3 or § 4.4 if Executive fails for any
reason

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whatsoever to remain employed throughout the Performance Period by Belk, a Belk
Affiliate or a Belk Subsidiary or, for the issuance scheduled to be made on the
Delayed Issuance Date, through the Delayed Issuance Date, except to the extent
provided in § 5.2.

5.2   Exceptions.

     (a) Employed After Performance Period Started. If Executive is employed by
Belk, a Belk Affiliate or a Belk Subsidiary after the start of the Performance
Period and remains so employed through the end of the Performance Period,
Executive will (subject to 5.2(e)(1)) be treated as employed throughout the
Performance Period, but the number of shares of Stock issuable to Executive, if
any, shall be determined under § 5.2(e).
     (b) Death. No forfeiture shall be effected under § 5.1 if Executive’s
employment by Belk, a Belk Affiliate or a Belk Subsidiary terminates during the
Performance Period as a result of Executive’s death, but the number of shares of
Stock issuable on behalf of Executive, if any, shall be determined under §
5.2(e) and such shares shall be issued to Executive’s estate.
     (c) Disability. No forfeiture shall be effected under § 5.1 if Executive’s
employment is terminated during the Performance Period by Belk, a Belk Affiliate
or a Belk Subsidiary because the Board deems that Executive is no longer able
even with reasonable accommodation to perform the essential functions of
Executive’s job as a result of a physical or mental impairment, but the number
of shares of Stock issuable to Executive, if any, shall be determined under §
5.2(e).

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     (d) Retirement. No forfeiture shall be effected under § 5.1 if Executive
with the consent of the Board or the Committee retires or otherwise separates
from employment under circumstances which the Board or Committee determines
should be treated as the equivalent of retirement during the Performance Period
and Executive for the remainder of the Performance Period refrains from engaging
in any employment related activities which the Board or Committee deems
inconsistent with Executive’s status as a retired employee of Belk, a Belk
Affiliate or a Belk Subsidiary, but the number of shares of Stock issuable to
Executive, if any, shall be determined under § 5.2(e).
     (e) Two Year Minimum and Pro-Ration Rules.
     (1) Executive shall forfeit Executive’s right to the issuance of any shares
of Stock pursuant to § 4.3, § 4.4 and this § 5.2(e) unless Executive was
employed by Belk, a Belk Affiliate or a Belk Subsidiary for at least two full
years in the Performance Period.
     (2) If Executive was employed by Belk, a Belk Affiliate or a Belk
Subsidiary for at least two full years in the Performance Period, the number of
shares of Stock otherwise issuable to or on behalf of Executive shall be reduced
by the Committee pursuant to this § 5.2(e) to reflect the fact that Executive
was so employed for less than the full Performance Period. The Committee shall
determine the reduced number of shares of Stock to be issued under the Plan to
Executive by multiplying the number of shares of Stock otherwise issuable to
Executive pursuant to § 4 by a fraction,

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the numerator of which shall be the number of full fiscal months (rounding down
to the nearest fiscal month) that Executive was employed by Belk, a Belk
Affiliate or a Belk Subsidiary in such Performance Period and the denominator of
which shall be thirty (30), and then rounding up to the nearest whole share of
Stock.
§ 6. Stock Issuance and Minimum Tax Withholding. The Committee shall determine
the number of whole shares of Stock, if any, to be issued to Executive, the
minimum income tax withholding due on such shares and Executive’s deadline for
making a payment to Belk equal to such minimum income tax withholding. If
Executive fails to make such payment by such deadline, Belk shall reduce the
total number of whole shares of Stock to be issued to or on behalf of Executive
by a number sufficient for Belk to pay the minimum income tax withholding due on
all such shares of Stock based on the value assigned by Belk to such shares of
Stock and shall then issue the reduced number of shares of Stock to or on behalf
of Executive. If Executive makes such payment, there will be no reduction in the
total number of shares of Stock issued to Executive pursuant to this § 6, and
the total number of shares of Stock due shall be issued to or on behalf of
Executive.
§ 7. 2010 Incentive Stock Plan. Any Shares of Stock issued to or on behalf of
Executive pursuant to the CERTIFICATE and this Exhibit A shall be issued subject
to the terms and conditions set forth in the Belk, Inc. 2010 Incentive Stock
Plan.
§ 8. Reference. Unless otherwise specified, all references in this Exhibit A or
the Certificate to sections (§) shall be to sections (§) of this Exhibit A.

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§ 9. Administration, Amendment and Termination. The Committee shall have the
power to interpret and administer this SIP as the Committee in its absolute
discretion deems in the best interest of Belk and the Committee to the extent
practicable shall do so to protect Belk’s right to deduct, in light of § 162(m)
of the Internal Revenue Code, any shares of Stock issuable under the SIP to any
participant who is Belk’s chief executive officer or one of its four other
executive officers who are treated under § 162(m) of the Internal Revenue Code
as a “covered employee”. The Committee shall have the power to amend this SIP
from time to time as the Committee deems necessary or appropriate and to
terminate this SIP if the Committee deems such termination in the best interest
of Belk.

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EXHIBIT B
Belk Stretch Incentive Plan (SIP)
Sales Scale

                              % of Pln   % of   % of Pln   % of   % of Pln   %
of   % of Pln   % of Attained   Payout   Attained   Payout   Attained   Payout  
Attained   Payout              
95.0
  0.0%                        
95.1
  1.0%   97.1   21.0%   99.1   41.0%   101.1   59.2%
95.2
  2.0%   97.2   22.0%   99.2   42.0%   101.2   60.0%
95.3
  3.0%   97.3   23.0%   99.3   43.0%   101.3   60.8%
95.4
  4.0%   97.4   24.0%   99.4   44.0%   101.4   61.7%
95.5
  5.0%   97.5   25.0%   99.5   45.0%   101.5   62.5%
95.6
  6.0%   97.6   26.0%   99.6   46.0%   101.6   63.3%
95.7
  7.0%   97.7   27.0%   99.7   47.0%   101.7   64.2%
95.8
  8.0%   97.8   28.0%   99.8   48.0%   101.8   65.0%
95.9
  9.0%   97.9   29.0%   99.9   49.0%   101.9   65.8%
96.0
  10.0%   98.0   30.0%   100.0   50.0%   102.0   66.7%
96.1
  11.0%   98.1   31.0%   100.1   50.8%   102.1   67.5%
96.2
  12.0%   98.2   32.0%   100.2   51.7%   102.2   68.3%
96.3
  13.0%   98.3   33.0%   100.3   52.5%   102.3   69.2%
96.4
  14.0%   98.4   34.0%   100.4   53.3%   102.4   70.0%
96.5
  15.0%   98.5   35.0%   100.5   54.2%   102.5   70.8%
96.6
  16.0%   98.6   36.0%   100.6   55.0%   102.6   71.7%
96.7
  17.0%   98.7   37.0%   100.7   55.8%   102.7   72.5%
96.8
  18.0%   98.8   38.0%   100.8   56.7%   102.8   73.3%
96.9
  19.0%   98.9   39.0%   100.9   57.5%   102.9   74.2%
97.0
  20.0%   99.0   40.0%   101.0   58.3%   103.0   75.0%

EBIT Scale

                                                                               
              % of Pln   % of   % of Pln   % of   % of Pln   % of   % of Pln   %
of   % of Pln     % of     % of Pln     % of     % of Pln     % of     % of Pln
    % of   Attained   Payout   Attained   Payout   Attained   Payout   Attained
  Payout   Attained     Payout     Attained     Payout     Attained     Payout  
  Attained     Payout                                
74.0
  0.0%                                                                          
             
74.1
  0.2%   79.1   9.8%   84.1   19.4%   89.1   29.0%     94.1       38.7 %    
99.1       48.3 %     104.1       60.2 %     109.1       72.7 %
74.2
  0.4%   79.2   10.0%   84.2   19.6%   89.2   29.2%     94.2       38.8 %    
99.2       48.5 %     104.2       60.5 %     109.2       73.0 %
74.3
  0.6%   79.3   10.2%   84.3   19.8%   89.3   29.4%     94.3       39.0 %    
99.3       48.7 %     104.3       60.7 %     109.3       73.2 %
74.4
  0.8%   79.4   10.4%   84.4   20.0%   89.4   29.6%     94.4       39.2 %    
99.4       48.8 %     104.4       61.0 %     109.4       73.5 %
74.5
  1.0%   79.5   10.6%   84.5   20.2%   89.5   29.8%     94.5       39.4 %    
99.5       49.0 %     104.5       61.2 %     109.5       73.7 %
74.6
  1.2%   79.6   10.8%   84.6   20.4%   89.6   30.0%     94.6       39.6 %    
99.6       49.2 %     104.6       61.5 %     109.6       74.0 %
74.7
  1.3%   79.7   11.0%   84.7   20.6%   89.7   30.2%     94.7       39.8 %    
99.7       49.4 %     104.7       61.7 %     109.7       74.2 %
74.8
  1.5%   79.8   11.2%   84.8   20.8%   89.8   30.4%     94.8       40.0 %    
99.8       49.6 %     104.8       62.0 %     109.8       74.5 %
74.9
  1.7%   79.9   11.3%   84.9   21.0%   89.9   30.6%     94.9       40.2 %    
99.9       49.8 %     104.9       62.2 %     109.9       74.7 %
75.0
  1.9%   80.0   11.5%   85.0   21.2%   90.0   30.8%     95.0       40.4 %    
100.0       50.0 %     105.0       62.5 %     110.0       75.0 %
75.1
  2.1%   80.1   11.7%   85.1   21.3%   90.1   31.0%     95.1       40.6 %    
100.1       50.3 %     105.1       62.7 %                
75.2
  2.3%   80.2   11.9%   85.2   21.5%   90.2   31.2%     95.2       40.8 %    
100.2       50.5 %     105.2       63.0 %                
75.3
  2.5%   80.3   12.1%   85.3   21.7%   90.3   31.3%     95.3       41.0 %    
100.3       50.8 %     105.3       63.2 %                
75.4
  2.7%   80.4   12.3%   85.4   21.9%   90.4   31.5%     95.4       41.2 %    
100.4       51.0 %     105.4       63.5 %                
75.5
  2.9%   80.5   12.5%   85.5   22.1%   90.5   31.7%     95.5       41.3 %    
100.5       51.3 %     105.5       63.7 %                
75.6
  3.1%   80.6   12.7%   85.6   22.3%   90.6   31.9%     95.6       41.5 %    
100.6       51.5 %     105.6       64.0 %                
75.7
  3.3%   80.7   12.9%   85.7   22.5%   90.7   32.1%     95.7       41.7 %    
100.7       51.8 %     105.7       64.2 %                
75.8
  3.5%   80.8   13.1%   85.8   22.7%   90.8   32.3%     95.8       41.9 %    
100.8       52.0 %     105.8       64.5 %                
75.9
  3.7%   80.9   13.3%   85.9   22.9%   90.9   32.5%     95.9       42.1 %    
100.9       52.3 %     105.9       64.7 %                
76.0
  3.8%   81.0   13.5%   86.0   23.1%   91.0   32.7%     96.0       42.3 %    
101.0       52.5 %     106.0       65.0 %                
76.1
  4.0%   81.1   13.7%   86.1   23.3%   91.1   32.9%     96.1       42.5 %    
101.1       52.7 %     106.1       65.2 %                
76.2
  4.2%   81.2   13.8%   86.2   23.5%   91.2   33.1%     96.2       42.7 %    
101.2       53.0 %     106.2       65.5 %                
76.3
  4.4%   81.3   14.0%   86.3   23.7%   91.3   33.3%     96.3       42.9 %    
101.3       53.2 %     106.3       65.7 %                
76.4
  4.6%   81.4   14.2%   86.4   23.8%   91.4   33.5%     96.4       43.1 %    
101.4       53.5 %     106.4       66.0 %                
76.5
  4.8%   81.5   14.4%   86.5   24.0%   91.5   33.7%     96.5       43.3 %    
101.5       53.7 %     106.5       66.2 %                
76.6
  5.0%   81.6   14.6%   86.6   24.2%   91.6   33.8%     96.6       43.5 %    
101.6       54.0 %     106.6       66.5 %                
76.7
  5.2%   81.7   14.8%   86.7   24.4%   91.7   34.0%     96.7       43.7 %    
101.7       54.2 %     106.7       66.7 %                
76.8
  5.4%   81.8   15.0%   86.8   24.6%   91.8   34.2%     96.8       43.8 %    
101.8       54.5 %     106.8       67.0 %                
76.9
  5.6%   81.9   15.2%   86.9   24.8%   91.9   34.4%     96.9       44.0 %    
101.9       54.7 %     106.9       67.2 %                
77.0
  5.8%   82.0   15.4%   87.0   25.0%   92.0   34.6%     97.0       44.2 %    
102.0       55.0 %     107.0       67.5 %                
77.1
  6.0%   82.1   15.6%   87.1   25.2%   92.1   34.8%     97.1       44.4 %    
102.1       55.2 %     107.1       67.7 %                
77.2
  6.2%   82.2   15.8%   87.2   25.4%   92.2   35.0%     97.2       44.6 %    
102.2       55.5 %     107.2       68.0 %                
77.3
  6.3%   82.3   16.0%   87.3   25.6%   92.3   35.2%     97.3       44.8 %    
102.3       55.7 %     107.3       68.2 %                
77.4
  6.5%   82.4   16.2%   87.4   25.8%   92.4   35.4%     97.4       45.0 %    
102.4       56.0 %     107.4       68.5 %                
77.5
  6.7%   82.5   16.3%   87.5   26.0%   92.5   35.6%     97.5       45.2 %    
102.5       56.2 %     107.5       68.7 %                
77.6
  6.9%   82.6   16.5%   87.6   26.2%   92.6   35.8%     97.6       45.4 %    
102.6       56.5 %     107.6       69.0 %                
77.7
  7.1%   82.7   16.7%   87.7   26.3%   92.7   36.0%     97.7       45.6 %    
102.7       56.7 %     107.7       69.2 %                
77.8
  7.3%   82.8   16.9%   87.8   26.5%   92.8   36.2%     97.8       45.8 %    
102.8       57.0 %     107.8       69.5 %                
77.9
  7.5%   82.9   17.1%   87.9   26.7%   92.9   36.3%     97.9       46.0 %    
102.9       57.2 %     107.9       69.7 %                
78.0
  7.7%   83.0   17.3%   88.0   26.9%   93.0   36.5%     98.0       46.2 %    
103.0       57.5 %     108.0       70.0 %                
78.1
  7.9%   83.1   17.5%   88.1   27.1%   93.1   36.7%     98.1       46.3 %    
103.1       57.7 %     108.1       70.2 %                
78.2
  8.1%   83.2   17.7%   88.2   27.3%   93.2   36.9%     98.2       46.5 %    
103.2       58.0 %     108.2       70.5 %                
78.3
  8.3%   83.3   17.9%   88.3   27.5%   93.3   37.1%     98.3       46.7 %    
103.3       58.2 %     108.3       70.7 %                
78.4
  8.5%   83.4   18.1%   88.4   27.7%   93.4   37.3%     98.4       46.9 %    
103.4       58.5 %     108.4       71.0 %                
78.5
  8.7%   83.5   18.3%   88.5   27.9%   93.5   37.5%     98.5       47.1 %    
103.5       58.7 %     108.5       71.2 %                
78.6
  8.8%   83.6   18.5%   88.6   28.1%   93.6   37.7%     98.6       47.3 %    
103.6       59.0 %     108.6       71.5 %                
78.7
  9.0%   83.7   18.7%   88.7   28.3%   93.7   37.9%     98.7       47.5 %    
103.7       59.2 %     108.7       71.7 %                
78.8
  9.2%   83.8   18.8%   88.8   28.5%   93.8   38.1%     98.8       47.7 %    
103.8       59.5 %     108.8       72.0 %                
78.9
  9.4%   83.9   19.0%   88.9   28.7%   93.9   38.3%     98.9       47.9 %    
103.9       59.7 %     108.9       72.2 %                
79.0
  9.6%   84.0   19.2%   89.0   28.8%   94.0   38.5%     99.0       48.1 %    
104.0       60.0 %     109.0       72.5 %                

-11-