exv10w26






Exhibit 10.26




EVERBANK FINANCIAL CORP

2011 OMNIBUS EQUITY INCENTIVE PLAN




Section 1. Purpose of Plan.




     The name of the Plan is the EverBank Financial Corp 2011 Omnibus Equity Incentive Plan (the
“Plan”). The purposes of the Plan are to provide an additional incentive to selected
management, employees, directors, independent contractors, and consultants of the Company or its
Affiliates (as hereinafter defined) whose contributions are essential to the growth and success of
the Company’s business, in order to strengthen the commitment of such persons to the Company and
its Subsidiaries, motivate such persons to faithfully and diligently perform their responsibilities
and attract and retain competent and dedicated persons whose efforts will result in the long-term
growth and profitability of the Company. To accomplish such purposes, the Plan provides that the
Company may grant Options, Share Appreciation Rights, Restricted Shares, Deferred Shares,
Performance Shares, Other Share-Based Awards, or any combination of the foregoing.



Section 2. Definitions.




     For purposes of the Plan, the following terms shall be defined as set forth below:



     (a) “Administrator” means the Board, or, if and to the extent the Board does not
administer the Plan, the Committee in accordance with Section 3 hereof.



     (b) “Affiliate” means a Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, the Person
specified. An entity shall be deemed an Affiliate of the Company for purposes of this definition
only for such periods as the requisite ownership or control relationship is maintained.



     (c) “Award” means any Option, Share Appreciation Right, Restricted Share, Deferred
Share, Performance Share, or Other Share-Based Award granted under the Plan.



     (d) “Award Agreement” means any written agreement, contract or other instrument or
document evidencing an Award.



     (e) “Beneficial Owner” (or any variant thereof) has the meaning defined in Rule 13d-3
under the Exchange Act.



     (f) “Board” means the Board of Directors of the Company.



     (g) “By-laws” mean the by-laws of the Company, as may be amended and/or restated from
time to time.



 









 





     (h) “Cause” shall have the meaning assigned to such term in any individual employment
or severance agreement or Award Agreement with the Participant or, if no such agreement exists or
if such agreement does not define “Cause,” Cause shall mean (i) the Participant commits any act of
fraud, intentional misrepresentation or serious misconduct in connection with the business of the
Company or any Affiliate, including, but not limited to, falsifying any documents or agreements
(regardless of form); (ii) the Participant materially violates any rule or policy of the Company or
any Affiliate (A) for which violation an employee may be terminated pursuant to the written
policies of the Company or any Affiliate reasonably applicable to such an employee, (B) which
violation results in material damage to the Company or any Affiliate or (C) which, after written
notice to do so, the Participant fails to correct within a reasonable time; (iii) other than solely
due to Disability, the Participant willfully breaches or habitually neglects any material aspect of
the Participant’s duties assigned to the Participant by the Company or any Affiliate, which
assignment was reasonable in light of the Participant’s position with the Company or its
Subsidiaries (all of the foregoing duties, “Duties”); (iv) other than solely due to
Disability, the Participant fails, after written notice, adequately to perform any Duties and such
failure is reasonably likely to have a material adverse impact upon the Company or any Affiliate or
the operations of any of them; provided, that, for purposes of this clause (iv), such a
material adverse impact will be solely determined with reference to the Participant’s Duties and
annual compensation as such Duties and compensation relate to the Participant’s job classification;
(v) the Participant materially fails to comply with a direction from the Chief Executive Officer of
the Company, the Board or the board of directors of any Affiliate of the Company with respect to a
material matter, which direction was reasonable in light of the Participant’s position with the
Company or any Affiliate; (vi) while employed by or providing services to the Company or any
Affiliate, and without the written approval of the Board, the Participant performs services for any
other corporation or person which competes with the Company or any of its Subsidiaries, or
otherwise violates any restrictive covenants contained in any Award Agreement or any other
agreement between the Participant and the Company or any Affiliate; (vii) the Participant’s
indictment, conviction, or entering a plea of guilty or nolo contendere to, a felony (other than a
traffic or moving violation) or any crime involving dishonesty; (viii) the Participant engages in
any other action that may result in termination of an employee for cause pursuant to any generally
applied standard, of which standard the Participant knew or reasonably should have known, adopted
in good faith by the Board or the board of directors of any of the Company’s Subsidiaries from time
to time but prior to such action or condition; or (ix) any willful breach by the Participant of his
fiduciary duties as a director of the Company or any of its Subsidiaries.



     (i) “Change in Capitalization” means any (1) merger, amalgamation, consolidation,
reclassification, recapitalization, spin-off, spin-out, repurchase or other reorganization or
corporate transaction or event, (2) ordinary or special dividend (whether in the form of cash,
Common Shares or other property), share split or reverse share split, (3) combination or exchange
of shares, (4) other change in corporate structure, or (5) any other transaction, distribution or
action, which, in any such case, the Administrator determines, in its sole discretion, affects the
Shares such that an adjustment pursuant to Section 5 hereof is appropriate.



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     (j) “Change in Control” shall be deemed to have occurred if an event set forth in any
one of the following paragraphs shall have occurred:



          (1) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of
the Company (not including the securities beneficially owned by such Person or any securities
acquired directly from the Company or any Affiliate thereof) representing 50% or more of the
combined voting power of the Company’s then outstanding securities, excluding any Person who
becomes such a Beneficial Owner in connection with a transaction described in clause (A) of
paragraph (3) below; or




          (2) the following individuals cease for any reason to constitute a majority of the number of
directors then serving on the Board: individuals who, on the date hereof, constitute the Board and
any new director (other than a director whose initial assumption of office is in connection with an
actual or threatened election contest, including, but not limited to, a consent solicitation,
relating to the election of directors of the Company) whose appointment or election by the Board or
nomination for election by the Company’s shareholders was approved or recommended by a vote of at
least two-thirds (2/3) of the directors then still in office who either were directors on the date
hereof or whose appointment, election or nomination for election was previously so approved or
recommended; or




          (3) there is consummated a merger, amalgamation or consolidation of the Company or any
Subsidiary thereof with any other corporation, other than (A) a merger, amalgamation or
consolidation which results in the voting securities of the Company outstanding immediately prior
to such merger, amalgamation or consolidation continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity or any parent
thereof) at least 50% of the combined voting power of the securities of the Company or such
surviving entity or any parent thereof outstanding immediately after such merger, amalgamation or
consolidation or (B) a merger, amalgamation or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Company (not including in the
securities Beneficially Owned by such Person any securities acquired directly from the Company or
its Affiliates) representing 50% or more of the combined voting power of the Company’s then
outstanding securities; or




          (4) the shareholders of the Company approve a plan of complete liquidation or dissolution of
the Company or there is consummated an agreement for the sale or disposition by the Company of all
or substantially all of the Company’s assets, other than (A) a sale or disposition by the Company
of all or substantially all of the Company’s assets to an entity, at least fifty percent (50%) of
the combined voting power of the voting securities of which are owned by shareholders of the
Company following the completion of such transaction in substantially the same proportions as their
ownership of the Company immediately prior to such sale or (B) a sale or disposition of all or
substantially all of the Company’s assets immediately following which the individuals who comprise
the Board immediately prior thereto




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constitute at least a majority of the board of directors of the entity to which such assets
are sold or disposed or, if such entity is a subsidiary, the ultimate parent thereof.



For each Award that constitutes deferred compensation under Section 409A of the Code, a Change in
Control shall be deemed to have occurred under the Plan with respect to such Award, resulting in
the payment of such Award, only if a change in the ownership or effective control of the Company or
a change in ownership of a substantial portion of the assets of the Company shall also be deemed to
have occurred under Section 409A of the Code.



Notwithstanding the foregoing, a Change in Control shall not be deemed to have occurred by virtue
of the consummation of any transaction or series of integrated transactions immediately following
which the holders of Common Shares immediately prior to such transaction or series of transactions
continue to have substantially the same proportionate ownership in an entity which owns all or
substantially all of the assets of the Company immediately following such transaction or series of
transactions.




     (k) “Code” means the Internal Revenue Code of 1986, as amended from time to time, or
any successor thereto.



     (l) “Committee” means the Compensation Committee of the Board, or a sub-committee of
the Compensation Committee. Subject to the discretion of the Board, the Committee shall be
composed entirely of individuals who meet the qualifications of an “outside director” within the
meaning of Section 162(m) of the Code, a “non-employee director” within the meaning of Rule 16b-3
under the Exchange Act and any other qualifications required by the applicable stock exchange on
which the Common Shares are traded. If at any time or to any extent the Board shall not administer
the Plan, then the functions of the Administrator specified in the Plan shall be exercised by the
Committee. Except as otherwise provided in the Articles of Incorporation or By-laws of the
Company, any action of the Committee with respect to the administration of the Plan shall be taken
by a majority vote at a meeting at which a quorum is duly constituted or unanimous written consent
of the Committee’s members.



     (m) “Common Shares” means the common shares, par value $0.01 per share, of the
Company.



     (n) “Company” means EverBank Financial Corp (or any successor company, except as the
term “Company” is used in the definition of “Change in Control” above).



     (o) “Deferred Shares” means the right granted pursuant to Section 9 hereof to receive
Shares at the end of a specified deferral period or periods and/or upon attainment of specified
performance objectives.



     (p) “Disability” means, with respect to any Participant, that such Participant (i) as
determined by the Administrator in its sole discretion, is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be



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expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by
reason of any medically determinable physical or mental impairment which can be expected to result
in death or can be expected to last for a continuous period of not less than twelve (12) months,
receiving income replacement benefits for a period of not less than three (3) months under an
accident and health plan covering employees of the Company or an Affiliate thereof.




     (q) “Eligible Recipient” means an employee, director, independent contractor or
consultant of the Company or any Affiliate of the Company who has been selected as an eligible
participant by the Administrator; provided, however, to the extent required to
avoid the imposition of additional taxes under Section 409A of the Code, an Eligible Recipient of
an Option or a Share Appreciation Right means an employee, director, independent contractor or
consultant of the Company or any Subsidiary of the Company who has been selected as an eligible
participant by the Administrator.



     (r) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from
time to time.



     (s) “Exercise Price” means, with respect to any Award under which the holder may
purchase Shares, the per share price at which a holder of such Award granted hereunder may purchase
Shares issuable upon exercise of such Award.



     (t) “Fair Market Value” as of a particular date shall mean the fair market value of a
Common Share as determined by the Administrator in its sole discretion; provided,
however, that (i) if the Common Shares are admitted to trading on a national securities
exchange, the fair market value of a Common Share on any date shall be the closing sale price
reported for such share on such exchange on such date or, if no sale was reported on such date, on
the last day preceding such date on which a sale was reported, (ii) if the Common Shares are
admitted to quotation on the National Association of Securities Dealers Automated Quotation
(“NASDAQ”) system or other comparable quotation system and has been designated as a
National Market System (“NMS”) security, the fair market value of a Common Share on any
date shall be the closing sale price reported for such share on such system on such date or, if no
sale was reported on such date, on the last date preceding such date on which a sale was reported,
or (iii) if the Common Shares are admitted to quotation on NASDAQ but has not been designated as an
NMS security, the fair market value of a Common Share on any date shall be the average of the
highest bid and lowest asked prices of such share on such system on such date or, if both bid and
ask prices were not reported on such date, on the last date preceding such date on which both bid
and ask prices were reported.



     (u) “Option” means an option to purchase Common Shares granted pursuant to Section 7
hereof.



     (v) “Other Share-Based Award” means a right or other interest granted pursuant to
Section 10 hereof that may be denominated or payable in, valued in whole or in part by reference
to, or otherwise based on or related to, Common Shares, including, but not limited to, unrestricted
Shares, restricted share units, dividend equivalents or



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performance units, each of which may be subject to the attainment of Performance Goals or a
period of continued employment or other terms or conditions as permitted under the Plan.




     (w) “Participant” means any Eligible Recipient selected by the Administrator, pursuant
to the Administrator’s authority provided for in Section 3 below, to receive grants of Options,
Share Appreciation Rights, Restricted Shares, Deferred Shares, Performance Shares, Other
Share-Based Awards or any combination of the foregoing, and, upon his or her death, his or her
successors, heirs, executors and administrators, as the case may be.



     (x) “Performance Goals” means performance goals based on one or more of the following
criteria: (i) earnings, including one or more of operating income, earnings before or after taxes,
earnings before or after interest, depreciation, amortization, adjusted EBITDA, economic earnings,
or extraordinary or special items or book value per share (which may exclude nonrecurring items);
(ii) pre-tax income or after-tax income; (iii) earnings per Share (basic or diluted); (iv)
operating profit; (v) revenue, revenue growth or rate of revenue growth; (vi) return on assets
(gross or net), return on investment, return on capital, or return on equity; (vii) returns on
sales or revenues; (viii) operating expenses; (ix) share price or total shareholder return; (x)
cash flow, free cash flow, cash flow return on investment (discounted or otherwise), net cash
provided by operations, or cash flow in excess of cost of capital; (xi) implementation or
completion of critical projects or processes; (xii) cumulative earnings per share growth; (xiii)
operating margin or profit margin; (xiv) cost targets, reductions and savings, productivity and
efficiencies; (xv) strategic business criteria, consisting of one or more objectives based on
meeting specified market penetration, geographic business expansion, customer satisfaction,
employee satisfaction, human resources management, supervision of litigation, information
technology, and goals relating to acquisitions, divestitures, joint ventures and similar
transactions, and budget comparisons; (xvi) personal professional objectives, including any of the
foregoing performance goals, the implementation of policies and plans, the negotiation of
transactions, the development of long term business goals, formation of joint ventures, research or
development collaborations, and the completion of other corporate transactions; and (xvii) any
combination of, or a specified increase in, any of the foregoing. Performance goals not specified
herein may be used to the extent that an Award is not intended to comply with Section 162(m) of the
Code. Where applicable, the Performance Goals may be expressed in terms of attaining a specified
level of the particular criteria or the attainment of a percentage increase or decrease in the
particular criteria, and may be applied to one or more of the Company or Affiliate thereof, or a
division or strategic business unit of the Company, or may be applied to the performance of the
Company relative to a market index, a group of other companies or a combination thereof, all as
determined by the Committee. The Performance Goals may include a threshold level of performance
below which no payment shall be made (or no vesting shall occur), levels of performance at which
specified payments shall be made (or specified vesting shall occur), and a maximum level of
performance above which no additional payment shall be made (or at which full vesting shall occur).
Each of the foregoing Performance Goals shall be determined in accordance with generally accepted
accounting principles and shall be subject to



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certification by the Committee; provided, that, to the extent permitted by Section
162(m) of the Code, the Committee shall have the authority to make equitable adjustments to the
Performance Goals in recognition of unusual or non-recurring events affecting the Company or any
Affiliate thereof or the financial statements of the Company or any Affiliate thereof, in response
to changes in applicable laws or regulations, or to account for items of gain, loss or expense
determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the
disposal of a segment of a business or related to a change in accounting principles.




     (y) “Performance Shares” means Shares that are subject to restrictions that lapse upon
the attainment of specified performance objectives and that are granted pursuant to Section 9
below.



     (z) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i)
the Company or any Subsidiary thereof, (ii) a trustee or other fiduciary holding securities under
an employee benefit plan of the Company or any Subsidiary thereof, (iii) an underwriter temporarily
holding securities pursuant to an offering of such securities, or (iv) a corporation owned,
directly or indirectly, by the shareholders of the Company in substantially the same proportions as
their ownership of shares of the Company.



     (aa) “Restricted Shares” means Shares granted pursuant to Section 9 below subject to
certain restrictions that lapse at the end of a specified period or periods.



     (bb) “Retirement” means a termination of a Participant’s employment, other than for
Cause, on or after the attainment of age 65.



     (cc) “Shares” means Common Shares reserved for issuance under the Plan, as adjusted
pursuant to the Plan, and any successor security (pursuant to a merger, amalgamation, consolidation
or other reorganization).



     (dd) “Share Appreciation Right” means the right pursuant to an Award granted under
Section 8 below to receive an amount equal to the excess, if any, of (i) the aggregate Fair Market
Value, as of the date such Award or portion thereof is surrendered, of the Shares covered by such
Award or such portion thereof, over (ii) the aggregate Exercise Price of such Award or such portion
thereof.



     (ee) “Subsidiary” means, with respect to any Person, as of any date of determination,
any other Person as to which such first Person owns or otherwise controls, directly or indirectly,
more than 50% of the voting shares or other similar interests or a sole general partner interest or
managing member or similar interest of such other Person. An entity shall be deemed a Subsidiary
of the Company for purposes of this definition only for such periods as the requisite ownership or
control relationship is maintained.



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Section 3. Administration.




     (a) The Plan shall be administered by the Administrator and shall be administered in
accordance with the requirements of Section 162(m) of the Code (but only to the extent necessary
and desirable to maintain qualification of awards under the Plan under Section 162(m) of the Code)
and, to the extent applicable, Rule 16b-3 under the Exchange Act (“Rule 16b-3”). The Plan
is intended to comply with or be exempt from Section 409A of the Code, and shall be administered,
construed and interpreted in accordance with such intent. To the extent that an Award, issuance
and/or payment is subject to or exempt from Section 409A of the Code, it shall be awarded and/or
issued or paid in a manner that will comply with Section 409A of the Code or the applicable
exemption of Section 409A, including any applicable regulations or guidance issued by the Secretary
of the United States Treasury Department and the Internal Revenue Service with respect thereto.



     (b) Pursuant to the terms of the Plan, the Administrator, subject, in the case of any
Committee, to any restrictions on the authority delegated to it by the Board, shall have the power
and authority, without limitation:



          (1) to select those Eligible Recipients who shall be Participants;




          (2) to determine whether and to what extent Options, Share Appreciation Rights, Restricted
Shares, Deferred Shares, Performance Shares, Other Share-Based Awards or a combination of any of
the foregoing, are to be granted hereunder to Participants;




          (3) to determine the number of Shares to be covered by each Award granted hereunder;




          (4) to determine the terms and conditions, not inconsistent with the terms of the Plan, of
each Award granted hereunder (including, but not limited to, (i) the restrictions applicable to
Restricted Shares or Deferred Shares and the conditions under which restrictions applicable to such
Restricted Shares or Deferred Shares shall lapse, (ii) the performance goals and periods applicable
to Performance Shares, (iii) the Exercise Price of each Award, (iv) the vesting schedule applicable
to each Award, (v) the number of Shares subject to each Award and (vi) subject to the requirements
of Section 409A of the Code (to the extent applicable), any amendments to the terms and conditions
of outstanding Awards, including, but not limited to, extending the exercise period of such Awards
and accelerating the vesting schedule of such Awards), and, if the Administrator in its discretion
determines to accelerate the vesting of Options and/or Share Appreciation Rights in connection with
a Change in Control, the Administrator shall also have discretion in connection with such action to
provide that all Options and/or Share Appreciation Rights outstanding immediately prior to such
Change in Control shall expire on the effective date of such Change in Control;







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          (5) to determine the terms and conditions, not inconsistent with the terms of the Plan, which
shall govern all written instruments evidencing Options, Share Appreciation Rights, Restricted
Shares, Deferred Shares, Performance Shares or Other Share-Based Awards or any combination of the
foregoing granted hereunder;




          (6) to determine the Fair Market Value;




          (7) to determine the duration and purpose of leaves of absence which may be granted to a
Participant without constituting termination of the Participant’s employment for purposes of Awards
granted under the Plan;




          (8) to adopt, alter and repeal such administrative rules, guidelines and practices governing
the Plan as it shall from time to time deem advisable; and




          (9) to construe and interpret the terms and provisions of the Plan and any Award issued under
the Plan (and any Award Agreement relating thereto), and to otherwise supervise the administration
of the Plan and to exercise all powers and authorities either specifically granted under the Plan
or necessary and advisable in the administration of the Plan.




     (c) All decisions made by the Administrator pursuant to the provisions of the Plan shall be
final, conclusive and binding on all persons, including the Company and the Participants. No
member of the Board or the Committee, nor any officer or employee of the Company or any Subsidiary
thereof acting on behalf of the Board or the Committee, shall be personally liable for any action,
omission, determination, or interpretation taken or made in good faith with respect to the Plan,
and all members of the Board or the Committee and each and any officer or employee of the Company
and of any Subsidiary thereof acting on their behalf shall, to the maximum extent permitted by law,
be fully indemnified and protected by the Company in respect of any such action, omission,
determination or interpretation.



Section 4. Shares Reserved for Issuance Under the Plan.




     (a) Subject to Section 5 hereof, the number of Common Shares that are reserved and available
for issuance pursuant to Awards granted under the Plan is fifteen (15) million Shares, provided
that no more than three (3) million Shares shall be granted as full value Awards. From and after
such time as the Plan is subject to 162(m) of the Code, the aggregate Awards intended to qualify as
“performance-based compensation” under Section 162(m) of the Code granted during any single fiscal
year to any individual who is likely to be a “covered employee” (as defined in Section 162(m) of
the Code) shall not exceed 1.5 million Shares.



     (b) Shares issued under the Plan may, in whole or in part, be authorized but unissued Shares
or Shares that shall have been or may be reacquired by the Company in the open market, in private
transactions, or otherwise. If any Shares subject to an Award are forfeited, cancelled, exchanged
or surrendered, settled in cash or if an Award otherwise terminates or expires without a
distribution of shares to the



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Participant, the Shares with respect to such Award shall, to the extent of any such
forfeiture, cancellation, exchange, surrender, settlement, termination or expiration, again be
available for Awards under the Plan. The reserve of Shares shall not be reduced by any Awards
granted in substitution for, or in assumption of, outstanding awards previously granted by an
entity acquired by the Company or an Affiliate or with which the Company or Affiliate combines.
Notwithstanding the foregoing, Shares surrendered or withheld as payment of either the Exercise
Price of an Award (including Shares otherwise underlying an Award of a Share Appreciation Right
that are retained by the Company to account for the grant price of such Share Appreciation Right)
and/or withholding taxes in respect of an Award shall no longer be available for grant under the
Plan.




Section 5. Equitable Adjustments.




     In the event of any Change in Capitalization, an equitable substitution or proportionate
adjustment shall be made, in each case, as may be determined by the Administrator, in its sole
discretion, in (i) the aggregate number of Common Shares reserved for issuance under the Plan and
the maximum number of Shares that may be subject to Awards granted to any Participant in any
calendar or fiscal year, (ii) the kind, number and Exercise Price subject to outstanding Options
and Share Appreciation Rights granted under the Plan, and (iii) the kind, number and purchase price
of Shares subject to outstanding Restricted Shares, Deferred Shares, Performance Shares or Other
Share-Based Awards granted under the Plan; provided, however, that any fractional
shares resulting from the adjustment shall be eliminated; and provided further that
no such adjustment shall cause any Award hereunder which is or could be subject to Section 409A of
the Code to fail to comply with the requirements of such section. Such other equitable
substitutions or adjustments shall be made as may be determined by the Administrator, in its sole
discretion. Without limiting the generality of the foregoing, in connection with a Change in
Capitalization, the Administrator may provide, in its sole discretion, for the cancellation of any
outstanding Award granted hereunder in exchange for payment in cash or other property having an
aggregate Fair Market Value of the Shares covered by such award, reduced by the aggregate Exercise
Price or purchase price thereof, if any. The Administrator’s determinations pursuant to this
Section 5 shall be final, binding and conclusive.



Section 6. Eligibility.




     The Participants under the Plan shall be selected from time to time by the Administrator, in
its sole discretion, from those individuals that qualify as Eligible Recipients.



Section 7. Options.




     (a) General. Each Participant who is granted an Option shall enter into an Award
Agreement with the Company, containing such terms and conditions as the Administrator shall
determine, in its sole discretion, which Award Agreement shall set forth, among other things, the
Exercise Price of the Option, the term of the Option and



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provisions regarding exercisability of the Option. Notwithstanding the foregoing, except as
otherwise determined by the Administrator, the prospective recipient of an Option shall not have
any rights with respect to such Award, unless and until such recipient has executed an Award
Agreement and delivered a fully executed copy thereof to the Company, within a period of sixty (60)
days (or such other period as the Administrator may specify) after the award date. The provisions
of each Option need not be the same with respect to each Participant. More than one Option may be
granted to the same Participant and be outstanding concurrently hereunder. Options granted under
the Plan shall be subject to the terms and conditions set forth in this Section 7 and shall contain
such additional terms and conditions, not inconsistent with the terms of the Plan, as the
Administrator shall deem desirable and set forth in the applicable Award Agreement. Each Option
granted hereunder is intended to be a non-qualified Option and is not intended to qualify as an
“incentive stock option” within the meaning of Section 422 of the Code.




     (b) Exercise Price. The Exercise Price of Shares purchasable under an Option shall be
determined by the Administrator in its sole discretion at the time of grant, but in no event shall
the exercise price of an Option be less than one hundred percent (100%) of the Fair Market Value of
the Common Shares on the date of grant.



     (c) Option Term. The maximum term of each Option shall be fixed by the Administrator,
but no Option shall be exercisable more than ten (10) years after the date such Option is granted.
Each Option’s term is subject to earlier expiration pursuant to the applicable provisions in the
Plan and the Award Agreement. Notwithstanding the foregoing, the Administrator shall have the
authority to accelerate the exercisability of any outstanding Option at such time and under such
circumstances as the Administrator, in its sole discretion, deems appropriate.



     (d) Exercisability. Each Option shall be exercisable at such time or times and
subject to such terms and conditions, including the attainment of preestablished corporate
performance goals, as shall be determined by the Administrator in the applicable Award Agreement.
The Administrator may also provide that any Option shall be exercisable only in installments, and
the Administrator may waive such installment exercise provisions at any time, in whole or in part,
based on such factors as the Administrator may determine in its sole discretion. Notwithstanding
anything to the contrary contained herein, an Option may not be exercised for a fraction of a
share.



     (e) Method of Exercise. Options may be exercised in whole or in part by giving
written notice of exercise to the Company specifying the number of whole Shares to be purchased,
accompanied by payment in full of the aggregate Exercise Price of the Shares so purchased in cash
or its equivalent, as determined by the Administrator. As determined by the Administrator, in its
sole discretion, with respect to any Option or category of Options, payment in whole or in part may
also be made (i) by means of consideration received under any cashless exercise procedure approved
by the Administrator (including the withholding of Shares otherwise issuable upon exercise), (ii)
in the form of unrestricted Shares already owned by the Participant which, (x) in the case of
unrestricted Shares acquired upon exercise of an Option, have been owned by the



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Participant for more than six (6) months on the date of surrender, and (y) have a Fair Market
Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such
Option shall be exercised, (iii) any other form of consideration approved by the Administrator and
permitted by applicable law or (iv) any combination of the foregoing.




     (f) Rights as Shareholder. A Participant shall have no rights to dividends or
distributions or any other rights of a shareholder with respect to the Shares subject to an Option
until the Participant has given written notice of the exercise thereof, has paid in full for such
Shares and has satisfied the requirements of Section 15 hereof.



     (g) Termination of Employment or Service.



          (1) Unless the applicable Award Agreement provides otherwise, in the event that the employment
or service of a Participant with the Company and all Affiliates thereof shall terminate for any
reason other than Cause, Retirement, Disability, or death, (A) Options granted to such Participant,
to the extent that they are exercisable at the time of such termination, shall remain exercisable
until the date that is ninety (90) days after such termination, on which date they shall expire,
and (B) Options granted to such Participant, to the extent that they were not exercisable at the
time of such termination, shall expire at the close of business on the date of such termination.
The ninety (90) day period described in this Section 7(g)(1) shall be extended to one (1) year
after the date of such termination in the event of the Participant’s death during such ninety (90)
day period. Notwithstanding the foregoing, no Option shall be exercisable after the expiration of
its term.




          (2) Unless the applicable Award Agreement provides otherwise, in the event that the employment
or service of a Participant with the Company and all Affiliates thereof shall terminate on account
of the Retirement, Disability, or death of the Participant, (A) Options granted to such
Participant, to the extent that they were exercisable at the time of such termination, shall remain
exercisable until the date that is one (1) year after such termination, on which date they shall
expire and (B) Options granted to such Participant, to the extent that they were not exercisable at
the time of such termination, shall expire at the close of business on the date of such
termination. Notwithstanding the foregoing, no Option shall be exercisable after the expiration of
its term.




          (3) In the event of the termination of a Participant’s employment or service for Cause, all
outstanding Options granted to such Participant shall expire at the commencement of business on the
date of such termination.




     (h) Other Change in Employment Status. An Option may be affected, in the sole
discretion of the Administrator, both with regard to vesting schedule and termination, by leaves of
absence, changes from full-time to part-time employment, partial disability or other changes in the
employment status of an Participant.



PAGE 12









 





Section 8. Share Appreciation Rights.




     (a) General. Share Appreciation Rights may be granted either alone (“Free
Standing Rights”) or in conjunction with all or part of any Option granted under the Plan
(“Related Rights”). Related Rights may be granted either at or after the time of the grant
of such Option. The Administrator shall determine the Eligible Recipients to whom, and the time or
times at which, grants of Share Appreciation Rights shall be made, the number of Shares to be
awarded, the price per Share, and all other conditions of Share Appreciation Rights.
Notwithstanding the foregoing, no Related Right may be granted for more Shares than are subject to
the Option to which it relates and any Share Appreciation Right must be granted with an Exercise
Price not less than the Fair Market Value of Common Shares on the date of grant. The provisions of
Share Appreciation Rights need not be the same with respect to each Participant. Share
Appreciation Rights granted under the Plan shall be subject to the following terms and conditions
set forth in this Section 8 and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Administrator shall deem desirable, as set forth in
the applicable Award Agreement.



     (b) Awards; Rights as Shareholder. The prospective recipient of a Share Appreciation
Right shall not have any rights with respect to such Award, unless and until such recipient has
executed an Award Agreement and delivered a fully executed copy thereof to the Company, within a
period of sixty (60) days (or such other period as the Administrator may specify) after the award
date. Participants who are granted Share Appreciation Rights shall have no rights as shareholders
of the Company with respect to the grant or exercise of such rights.



     (c) Exercisability.



          (1) Share Appreciation Rights that are Free Standing Rights shall be exercisable at such time
or times and subject to such terms and conditions as shall be determined by the Administrator in
the applicable Award Agreement.



          (2) Share Appreciation Rights that are Related Rights shall be exercisable only at such time
or times and to the extent that the Options to which they relate shall be exercisable in accordance
with the provisions of Section 7 hereof and this Section 8 of the Plan.



     (d) Payment Upon Exercise.



          (1) Upon the exercise of a Free Standing Right, the Participant shall be entitled to receive
up to, but not more than, that number of Shares equal in value to the excess of the Fair Market
Value as of the date of exercise over the price per share specified in the Free Standing Right
multiplied by the number of Shares in respect of which the Free Standing Right is being exercised,
with the Administrator having the right to determine the form of payment.




          (2) A Related Right may be exercised by a Participant by surrendering the applicable portion
of the related Option. Upon such exercise and




PAGE 13









 




surrender, the Participant shall be entitled to receive up to, but not more than, that number
of Shares equal in value to the excess of the Fair Market Value as of the date of exercise over the
Exercise Price specified in the related Option multiplied by the number of Shares in respect of
which the Related Right is being exercised, with the Administrator having the right to determine
the form of payment. Options which have been so surrendered, in whole or in part, shall no longer
be exercisable to the extent the Related Rights have been so exercised.




          (3) Notwithstanding the foregoing, the Administrator may determine to settle the exercise of a
Share Appreciation Right in cash (or in any combination of Shares and cash).




     (e) Termination of Employment or Service.



          (1) In the event of the termination of employment or service with the Company and all
Affiliates thereof of a Participant who has been granted one or more Free Standing Rights, such
rights shall be exercisable at such time or times and subject to such terms and conditions as shall
be determined by the Administrator in the applicable Award Agreement.




          (2) In the event of the termination of employment or service with the Company and all
Affiliates thereof of a Participant who has been granted one or more Related Rights, such rights
shall be exercisable at such time or times and subject to such terms and conditions as set forth in
the related Options.




     (f) Term.



          (1) The term of each Free Standing Right shall be fixed by the Administrator, but no Free
Standing Right shall be exercisable more than ten (10) years after the date such right is granted.




          (2) The term of each Related Right shall be the term of the Option to which it relates, but no
Related Right shall be exercisable more than ten (10) years after the date such right is granted.




Section 9. Restricted Shares, Deferred Shares and Performance Shares.




     (a) General. Restricted Shares, Deferred Shares or Performance Shares may be issued
either alone or in addition to other awards granted under the Plan. The Administrator shall
determine the Eligible Recipients to whom, and the time or times at which, Restricted Shares,
Deferred Shares or Performance Shares shall be made; the number of Shares to be awarded; the price,
if any, to be paid by the Participant for the acquisition of Restricted Shares, Deferred Shares or
Performance Shares; the period of time prior to which such shares become vested and free of
restrictions on Transfer (the “Restricted Period”), if any, applicable to Restricted
Shares, Deferred Shares or Performance Shares; the performance objectives (if any) applicable to
Deferred Shares or Performance Shares; and all other conditions of the Restricted Shares, Deferred
Shares and Performance Shares. If the restrictions, performance objectives and/or conditions



PAGE 14









 




established by the Administrator are not attained, a Participant shall forfeit his or her
Restricted Shares, Deferred Shares or Performance Shares, in accordance with the terms of the
grant. The provisions of the Restricted Shares, Deferred Shares or Performance Shares need not be
the same with respect to each Participant.




     (b) Awards and Certificates. The prospective recipient of Restricted Shares, Deferred
Shares or Performance Shares shall not have any rights with respect to any such award, unless and
until such recipient has executed an Award Agreement and delivered a fully executed copy thereof to
the Company, within a period of sixty (60) days (or such other period as the Administrator may
specify) after the award date. Except as otherwise provided below in Section 9(c), (i) each
Participant who is granted an award of Restricted Shares or Performance Shares may, in the
Company’s sole discretion, be issued a share certificate in respect of such Restricted Shares or
Performance Shares; and (ii) any such certificate so issued shall be registered in the name of the
Participant, and shall bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to any such Award.



     The Company may require that the share certificates, if any, evidencing Restricted Shares or
Performance Shares granted hereunder be held in the custody of the Company until the restrictions
thereon shall have lapsed, and that, as a condition of any award of Restricted Shares or
Performance Shares, the Participant shall have delivered a stock power, endorsed in blank, relating
to the Shares covered by such award.



     With respect to Deferred Shares, at the expiration of the Restricted Period, share
certificates in respect of such shares of Deferred Shares may, in the Company’s sole discretion, be
delivered to the Participant, or his legal representative, in a number equal to the number of
Shares covered by the Deferred Shares award.



     Notwithstanding anything in the Plan to the contrary, any Restricted Shares, Deferred Shares
(at the expiration of the Restricted Period) or Performance Shares (whether before or after any
vesting conditions have been satisfied) may, in the Company’s sole discretion, be issued in
uncertificated form pursuant to the customary arrangements for issuing shares in such form.



     Further, notwithstanding anything in the Plan to the contrary, with respect to Deferred
Shares, at the expiration of the Restricted Period, Shares shall promptly be issued (either in
certificated or uncertificated form) to the Participant, unless otherwise deferred in accordance
with procedures established by the Company in accordance with Section 409A of the Code, and such
issuance shall in any event be made within such period as is required to avoid the imposition of a
tax under Section 409A of the Code.



     (c) Restrictions and Conditions. The Restricted Shares, Deferred Shares and
Performance Shares granted pursuant to this Section 9 shall be subject to the following
restrictions and conditions and any additional restrictions or conditions as determined by the
Administrator at the time of grant or, subject to Section 409A of the Code, thereafter:



PAGE 15









 





          (1) The Administrator may, in its sole discretion, provide for the lapse of restrictions in
installments and may accelerate or waive such restrictions in whole or in part based on such
factors and such circumstances as the Administrator may determine, in its sole discretion,
including, but not limited to, the attainment of certain performance related goals, the
Participant’s termination of employment or service as a director, independent contractor or
consultant to the Company or any Affiliate thereof, or the Participant’s death or Disability;
provided, however, that the Administrator may not waive the attainment of
performance related goals in the case of any Award which is intended to qualify as
“performance-based compensation” under Section 162(m) of the Code. Notwithstanding the foregoing,
upon a Change in Control, the outstanding Awards shall be subject to Section 12 hereof.




          (2) Except as provided in Section 16 or in the applicable Award Agreement, the Participant
shall generally have the rights of a shareholder of the Company with respect to Restricted Shares
or Performance Shares during the Restricted Period. Except as provided in Section 16 or in the
applicable Award Agreement, the Participant shall generally not have the rights of a shareholder
with respect to Shares subject to Deferred Shares during the Restricted Period; provided,
however, that, subject to Section 409A of the Code, an amount equal to dividends declared
during the Restricted Period with respect to the number of Shares covered by Deferred Shares shall
be paid to the Participant as set forth in the Award Agreement, provided that the Participant is
then providing services to the Company. Certificates for Shares of unrestricted Common Shares may,
in the Company’s sole discretion, be delivered to the Participant only after the Restricted Period
has expired without forfeiture in respect of such Restricted Shares, Deferred Shares or Performance
Shares, except as the Administrator, in its sole discretion, shall otherwise determine.




          (3) The rights of Participants granted Restricted Shares, Deferred Shares or Performance
Shares upon termination of employment or service as a director, independent contractor, or
consultant to the Company or to any Affiliate thereof terminates for any reason during the
Restricted Period shall be set forth in the Award Agreement.




Section 10. Other Share-Based Awards.




     The Administrator is authorized to grant Awards to Participants in the form of Other
Share-Based Awards, as deemed by the Administrator to be consistent with the purposes of the Plan
and as evidenced by an Award Agreement. The Administrator shall determine the terms and conditions
of such Awards, consistent with the terms of the Plan, at the date of grant or thereafter,
including any Performance Goals and performance periods. Common Shares or other securities or
property delivered pursuant to an Award in the nature of a purchase right granted under this
Section 10 shall be purchased for such consideration, paid for at such times, by such methods, and
in such forms, including, without limitation, Shares, other Awards or other property, as the
Administrator shall determine, subject to any required corporate action.



PAGE 16









 





Section 11. Performance-Based Awards.




     To the extent that the Plan is subject to Section 162(m) of the Code, no payment with respect
to an Award made under Section 9 or 10 hereof which is intended to qualify as “performance-based
compensation” (within the meaning of Section 162(m) of the Code) shall be made to a Participant
that is likely to be a “covered employee” (within the meaning of Section 162(m) of the Code) prior
to the certification by the Committee that the applicable Performance Goals have been attained.



Section 12. Accelerated Vesting In Connection With a Change in Control.




     Unless otherwise determined by the Administrator and evidenced in an Award Agreement, in the
event that (a) a Change in Control occurs, and (b) the Participant’s employment is terminated by
the Company, its successor or Affiliate thereof without Cause on or after the effective date of the
Change in Control but prior to twelve (12) months following the Change in Control, then:



          (1) any unvested or unexercisable portion of any Award carrying a right to exercise shall
become fully vested and exercisable; and




          (2) the restrictions, deferral limitations, payment conditions and forfeiture conditions
applicable to an Award granted under the Plan shall lapse and such Awards shall be deemed fully
vested and any performance conditions imposed with respect to such Awards shall be deemed to be
fully achieved.




Section 13. Amendment and Termination.




     The Board may amend, alter or terminate the Plan, but no amendment, alteration, or termination
shall be made that would impair the rights of a Participant under any Award theretofore granted
without such Participant’s consent. Unless the Board determines otherwise, the Board shall obtain
approval of the Company’s shareholders for any amendment that would require such approval in order
to satisfy the requirements of Section 162(m) of the Code, any rules of the stock exchange on which
the Common Shares are traded or other applicable law, including, without limitation, repricing of
options and option exchanges. The Administrator may amend the terms of any Award theretofore
granted, prospectively or retroactively, but, subject to Section 5 of the Plan and the immediately
preceding sentence, no such amendment shall impair the rights of any Participant without his or her
consent.



Section 14. Unfunded Status of Plan.




     The Plan is intended to constitute an “unfunded” plan for incentive compensation. With
respect to any payments not yet made to a Participant by the Company, nothing contained herein
shall give any such Participant any rights that are greater than those of a general creditor of the
Company.



PAGE 17









 





Section 15. Withholding Taxes.




     Each Participant shall, no later than the date as of which the value of an Award first becomes
includible in the gross income of such Participant for federal and/or state income tax purposes,
pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of,
any federal, state, or local taxes of any kind required by law to be withheld with respect to the
Award. The obligations of the Company under the Plan shall be conditional on the making of such
payments or arrangements, and the Company shall, to the extent permitted by law, have the right to
deduct any such taxes from any payment of any kind otherwise due to such Participant. Whenever
cash is to be paid pursuant to an award granted hereunder, the Company shall have the right to
deduct therefrom an amount sufficient to satisfy any federal, state and local withholding tax
requirements related thereto. Whenever Shares are to be delivered pursuant to an Award, the
Company shall have the right to require the Participant to remit to the Company in cash an amount
sufficient to satisfy any related federal, state and local taxes to be withheld and applied to the
tax obligations. With the approval of the Administrator, a Participant may satisfy the foregoing
requirement by electing to have the Company withhold from delivery of Shares or by delivering
already owned unrestricted Common Shares, in each case, having a value not exceeding the minimum
federal, state and local taxes required to be withheld and applied to the tax obligations. Such
Shares shall be valued at their Fair Market Value on the date of which the amount of tax to be
withheld is determined. Fractional share amounts shall be settled in cash. Such an election may
be made with respect to all or any portion of the Shares to be delivered pursuant to an award. The
Company may also use any other method of obtaining the necessary payment or proceeds, as permitted
by law, to satisfy its withholding obligation with respect to any Option or other Award.



Section 16. Transfer of Awards.




     Until such time as the Awards are fully vested and/or exercisable in accordance with the Plan
or an Award Agreement, no purported sale, assignment, mortgage, hypothecation, transfer, charge,
pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation
of a security interest in or lien on, any Award or any agreement or commitment to do any of the
foregoing (each, a “Transfer”) by any holder thereof in violation of the provisions of the
Plan or an Award Agreement will be valid, except with the prior written consent of the
Administrator, which consent may be granted or withheld in the sole discretion of the
Administrator. Any purported Transfer of an Award or any economic benefit or interest therein in
violation of the Plan or an Award Agreement shall be null and void ab initio, and shall not create
any obligation or liability of the Company, and any person purportedly acquiring any Award or any
economic benefit or interest therein transferred in violation of the Plan or an Award Agreement
shall not be entitled to be recognized as a holder of such Shares. Unless otherwise determined by
the Administrator in accordance with the provisions of the immediately preceding sentence, an
Option may be exercised, during the lifetime of the Participant, only by the Participant or, during
any period during which the Participant is under a legal disability, by the Participant’s guardian
or legal representative.



PAGE 18









 





Section 17. Continued Employment.




     The adoption of the Plan shall not confer upon any Eligible Recipient any right to continued
employment or service with the Company or any Affiliate thereof, as the case may be, nor shall it
interfere in any way with the right of the Company or any Affiliate thereof to terminate the
employment or service of any of its Eligible Recipients at any time. Awards are subject to any
clawback policy adopted by the Company from time to time.



Section 18. Effective Date.




     The Plan was adopted by the Board on January 18, 2011, and shall become effective without
further action as of the later of (a) the effectiveness of the Company’s registration statement on
Form S-1 filed with the U.S. Securities and Exchange Commission on October 8, 2010, as amended, and
(b) the Common Shares being listed or approved for listing upon notice of issuance on the New York
Stock Exchange (the date of such effectiveness, the “Effective Date”).



Section 19. Term of Plan.




     No award shall be granted pursuant to the Plan on or after the tenth anniversary of the
Effective Date, but awards theretofore granted may extend beyond that date.



Section 20. Section 409A of the Code.




     The intent of the parties is that payments and benefits under the Plan comply with Section
409A of the Code to the extent subject thereto or an exemption therefrom, and, accordingly, to the
maximum extent permitted, the Plan shall be interpreted and be administered to be in compliance
therewith. Any payments described in the Plan that are due within the “short-term deferral period”
as defined in Section 409A of the Code shall not be treated as deferred compensation unless
applicable law requires otherwise. Notwithstanding anything to the contrary in the Plan, no
payment or distribution under this Plan that constitutes an item of deferred compensation under
Section 409A of the Code and becomes payable by reason of a Participant’s termination of employment
or service with the Company will be made to such Participant until such Participant’s termination
of employment or service constitutes a “separation from service” (as defined in Section 409A of the
Code). Notwithstanding anything to the contrary in the Plan, to the extent required in order to
avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would
otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the
six (6) month period immediately following the Participant’s termination of employment shall
instead be paid on the first business day after the date that is six (6) months following the
Participant’s separation from service (or upon the Participant’s death, if earlier). In addition,
for purposes of the Plan, each amount to be paid or benefit to be provided to the Participant
pursuant to the Plan, which constitute deferred compensation subject to



PAGE 19









 




Section 409A of the Code, shall be construed as a separate identified payment for purposes of
Section 409A of the Code.




Section 21. Governing Law.




     The Plan shall be governed by and construed in accordance with the laws of the State of
Delaware, without giving effect to principles of conflicts of law of such state.




PAGE 20