Document:

Restricted Stock Unit Notice of Award

 Exhibit 10.1 
 NATIONAL FINANCIAL PARTNERS CORP. 
 2009 STOCK INCENTIVE PLAN

 RESTRICTED STOCK UNIT NOTICE OF AWARD 
 This Restricted Stock Unit Notice of Award (“Notice”) is to certify that the participant named below (the “Participant”) has been granted the number of Restricted Stock
Units (“RSUs”) set forth below under the terms and conditions set forth in this Notice. The award described below (the “Award”) is subject to, and this Notice incorporates by reference, the attached additional terms
and conditions (the “Additional Terms and Conditions”). Please refer to the Additional Terms and Conditions and the National Financial Partners Corp. 2009 Stock Incentive Plan (the “Plan”) for an explanation of the
terms and conditions of the Award and a full description of your rights and obligations. 
  

			
	Award Number:	  	3796
		
	Name of Participant:	  	Douglas W. Hammond
		
	Number of Restricted Stock Units:	  	34,200
		
	Grant Date:	  	May 1, 2012
		
	Vesting Schedule:	  	See Section 2 in Exhibit A attached - Additional Terms and Conditions
		
	Payment of Taxes:	  	See Section 9 in Exhibit A.
		
	Additional Terms:	  	See Exhibit A.

 A copy of the Plan and related Prospectus and additional information regarding the Award, as well as any other awards you
may have previously received from National Financial Partners Corp. (“NFP”), can be viewed on Merrill Lynch’s web site at www.benefits.ml.com. 
 To login you will need the Personal Identification Number (“PIN”) mailed to you by Merrill Lynch. If you cannot locate your PIN or if you encounter any problems with the account creation
process, contact Merrill Lynch Customer Service at 877-767-2404. 

 EXHIBIT A 

ADDITIONAL TERMS AND CONDITIONS 
 OF RESTRICTED STOCK UNIT GRANT 
 These Additional Terms and Conditions shall be construed
in accordance with the provisions of the Plan and any capitalized terms not otherwise defined herein shall have the definitions set forth in the Plan. 
  

	1.	Grant of Award. Pursuant to Section 7(b) of the Plan, the Company grants to the Participant, as of the Grant Date specified in the Notice and subject to the
terms and conditions of the Notice and the Plan, and further subject to the terms and conditions set forth herein, the number of RSUs as shown on the Notice. Record of the Participant’s grant shall be kept on the books of the Company until the
Restricted Period (as defined in Section 2 below) shall have lapsed or the Award shall have been forfeited. 

  

	2.	Vesting. Except as otherwise provided herein and subject to the Participant’s continuous Employment/Service with the Company or a Related Entity, the RSUs
granted to the Participant shall vest and become payable ratably on each of the first three yearly anniversaries of the Grant Date (each such anniversary, a “Vesting Date”); provided that the Company shall have met or exceeded the
annual Adjusted EBITDA incentive compensation threshold amount (as adopted by the Compensation Committee of NFP’s Board of Directors under the Company’s Management Incentive Plan for the fiscal year prior to the applicable Vesting Date)
for the four fiscal quarters immediately preceding the applicable Vesting Date (the “Performance Condition”). The period from the Grant Date to the date the applicable RSU becomes vested and payable shall be referred to herein as
the “Restricted Period.” In the event that the Company fails to satisfy the Performance Condition in any applicable time period, the RSUs scheduled to vest and become payable on the Vesting Date immediately following such time
period, shall be immediately be forfeited and cancelled. For purposes of this Agreement, “Adjusted EBITDA” shall have the same meaning as used for purposes of performance-based bonuses awarded under the Company’s Management Incentive
Plan. 

  

	3.	Form of Payment. Unless otherwise determined by the Committee at the time of payment, and except as provided in Section 8 below, each RSU granted hereunder
shall represent the right to receive one share of Common Stock, which shall be delivered upon the vesting of such RSU. 

  

	4.	Dividend Equivalents. The RSUs granted hereunder shall earn dividend equivalents that shall be credited and paid out as follows: 

 

	 	(a)	As of each date on which cash dividends or distributions are paid with respect to Common Stock (a “Dividend Date”), an amount in cash equal to such
cash dividend or distribution shall be credited to the Participant’s account; provided that the record date with respect to such dividend or distribution occurs during the Restricted Period. 

  
 A-1

	 	(b)	As of each Vesting Date, dividend equivalents credited pursuant to paragraph (a) above during (i) the period from the Grant Date to the initial Vesting Date
and (ii) each successive one-year period, if any, following the initial Vesting Date (each, an “Applicable Period”) shall, subject to Section 4(c) below, be paid in cash, unless the Committee (or its designee) determines
that such dividend equivalents shall be converted into additional RSUs. If converted into additional RSUs, the number of additional RSUs to be credited to the Participant shall be calculated by aggregating the number of RSUs earned on each Dividend
Date during the Applicable Period. The number of RSUs earned on each such Dividend Date shall be equal to the quotient (rounded to the nearest whole number) obtained by dividing (i) the amount of cash credited to such Participant’s account
as of the record date for such dividend or distribution by (ii) the Fair Market Value of a share of Common Stock as of such Dividend Date. 

  

	 	(c)	Any additional RSUs (or cash, as the case may be) credited pursuant to this Section 4 shall be subject to the same terms and conditions (including vesting,
forfeiture and payment) as are applicable to the RSUs on which they are earned, and any such RSU (or cash) which becomes vested as of each Vesting Date shall be paid within the 90-day period following such Vesting Date. 

 

	5.	Restrictions on Transfer. RSUs may not be transferred or otherwise disposed of by the Participant, including by way of sale, assignment, transfer, pledge,
hypothecation or otherwise, except as permitted by the Committee, or by will or the laws of descent and distribution. No purported sale, assignment, mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust (voting or other) or
other disposition of, or creation of a security interest in or lien on, any of the RSUs by any holder thereof in violation of the provisions of these Additional Terms and Conditions shall be valid, and the Company will not transfer any of such RSUs
on its books, nor will any dividends be paid thereon, unless and until there has been full compliance with such provisions to the satisfaction of the Company. The foregoing restrictions are in addition to and not in lieu of any other remedies, legal
or equitable, available to enforce such provisions. 

  

	6.	Approvals. No shares of Common Stock shall be issued hereunder unless and until all legal requirements applicable to the issuance of such shares have been
complied with to the satisfaction of the Committee. The issuance of such shares to the Participant is conditioned upon the Participant’s acceptance of such restrictions on the subsequent disposition of such shares as the Committee shall deem
necessary or advisable as a result of any applicable law or regulation. 

  

	7.	 Termination of Employment/Service. Except as otherwise specified in a written and executed agreement between the Participant and the Company
that is then in effect, and subject to Section 8 below, in the event that the Participant’s Employment/Service with the Company and its Related Entities terminates other than because of the Participant’s death or Disability, those
RSUs that have not become vested and payable as of the effective date of such termination shall immediately be forfeited and cancelled. In the event that the Participant’s Employment/Service with the Company and its Related Entities terminates
because of the Participant’s death or Disability, all RSUs that have not 

  
 A-2

	 	
become vested and payable as of the effective date of such death or Disability, unless such RSUs had not vested and had been previously forfeited and cancelled due to the failure to reach an
applicable Performance Condition, shall, subject to Section 10 below, immediately vest as of the effective date of such death or Disability and be paid or settled within 60 days following such date. 

 

	8.	Change in Control. In the event of a Change in Control (as defined in paragraph 8(c) below, except if otherwise defined in a written and executed agreement
between the Participant and the Company that is then in effect), the following provisions shall apply to the RSUs that have not become vested and payable as of the effective date of such Change in Control: 

 

	 	(a)	In the event that the RSUs are not expressly assumed by a successor to the Company’s business pursuant to the transaction(s) constituting a Change in Control, all
of the RSUs that have not become vested and payable as of the effective date of such Change in Control shall immediately vest and be paid in cash within 10 business days following such Change in Control. The amount to be so paid to the Participant
shall be calculated by multiplying (i) the number of RSUs then becoming vested and payable by (ii) the per share Fair Market Value of the Common Stock as of the date of the Change in Control. 

 

	 	(b)	Except as otherwise specified in a written and executed agreement between the Participant and the Company that is then in effect, in the event that the RSUs are
expressly assumed by a successor to the Company’s business pursuant to the transaction(s) constituting a Change in Control, the RSUs shall remain subject to their original terms and conditions, except as adjusted by the Committee to provide for
such assumption; provided, however, that in the event the Participant’s Employment/Service with the Company and its Related Entities is terminated either (i) in contemplation of the Change in Control within six months prior
to the Change in Control or (ii) as a result of the Change in Control within 18 months after the Change in Control, in each case, either (x) by the Company or Related Entity if such termination occurs within the six-month period prior to a
Change in Control or by such successor entity or one of its affiliates if the termination occurs within the 18-month period following the Change in Control, other than for Cause, or (y) by the Participant for Good Reason (as defined in
paragraph 8(c) below, except if otherwise defined in a written and executed agreement between the Participant and the Company that is then in effect), those RSUs that have not become vested and payable as of the effective date of such termination
shall, subject to Section 10 below, become immediately vested and payable as of the later to occur of the effective date of the Change in Control or the effective date of such termination. 

 

	 	(c)	Definitions: For purposes of these Additional Terms and Conditions: 

  

	 	(1)	A “Change in Control” shall be deemed to have occurred if: 

 

	 	(A)	any Person, other than the Company or any employee benefit plan sponsored by the Company, becomes a Beneficial Owner of 30% or more of the outstanding shares of common
stock of the Company; 

  
 A-3

	 	(B)	the dissolution, or sale to any Person, of all or substantially all of the assets of the Company is consummated, except in the event of a sale of assets to a Person in
which more than 50% of Voting Securities of such Person is owned by shareholders of the Company in substantially the same proportion as their ownership of Voting Securities of the Company immediately prior to the sale; 

 

	 	(C)	a merger or consolidation is consummated after which, (i) the shareholders of the Company immediately prior to the combination do not hold, directly or indirectly,
Voting Securities of the entity or entities, if any, that succeed to the business of the Company having more than 50% of the Voting Power of the combined company in substantially the same proportions as they beneficially owned the Voting Securities
of the Company (there being excluded from the Voting Securities held by such shareholders, but not from the Voting Securities of the combined company, any Voting Securities received by affiliates of such other company in exchange for Voting
Securities of such other company) or (ii) individuals who were Incumbent Members of the Board immediately before such combination do not hold a majority of the seats on the board of directors of the combined company; or

  

	 	(D)	during any period of twelve consecutive months, Incumbent Members cease for any reason to constitute at least a majority of the Board. 

For purposes of the definition of Change in Control: 
 “Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 under the Exchange Act and any successor to such rule (except that a Person shall be deemed to be the
Beneficial Owner of all shares that any such Person has the right to acquire pursuant to any agreement or arrangement or upon exercise of conversion rights, warrants or options or otherwise, without regard to the sixty (60) day period referred
to in Rule 13d-3). 
 “Incumbent Members” shall mean the individuals who, as of the Grant Date, constitute the
Board, provided, however, that any individual who becomes a member of the Board subsequent to the Grant Date whose election or nomination for election by the stockholders of the Company was endorsed by a vote of at least a majority of
the then Incumbent Members (excluding any such individual whose initial assumption of 

  
 A-4

 
office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 under the Exchange Act) or other actual or threatened solicitation of proxies
or consents by or on behalf of any person other than the Board) shall be considered as though such individual were an Incumbent Member. 
 “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, and shall include a
“group” as defined in Section 13(d) thereof. 
 “Voting Securities” shall mean any
securities or other ownership interests of an entity entitled, or which may be entitled, to matters submitted to Persons holding such securities or other ownership interests in such entity generally (whether or not entitled to vote in the general
election of directors), or securities or other ownership interests which are convertible into, or exercisable in exchange for, such Voting Securities, whether or not subject to the passage of time or any contingency. 

“Voting Power” shall mean the number of votes available to be cast (determined by reference to the maximum number of
votes entitled to be cast by the holders of such Voting Securities, or by the holders of any other Voting Securities into which such other Voting Securities may be convertible, exercisable or exchangeable for, upon any matter submitted to
stockholders where the holders of all Voting Securities vote together as a single class) by the holders of Voting Securities. 
  

	 	(2)	“Good Reason” shall mean any of the following without the consent of the Participant: (i) a material diminution in Participant’s position,
duties or responsibilities from those held, exercised and/or assigned to Participant immediately prior to a Change in Control, (ii) a substantial reduction, in the aggregate, of current base salary, bonus opportunity, incentive compensation and
benefits provided to the Participant other than an across-the-board reduction which applies to other similarly situated Participants or (iii) any requirement that the Participant’s services be rendered primarily at a location or locations
more than 50 miles from the Participant’s principal place of Employment/Service as of the date of a Change in Control. 

  

	9.	 Taxes. The Participant (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions
contemplated by this Award. At the time the Participant recognizes taxable income from the payment in respect of the RSUs, the Participant shall pay to the Company an amount equal to the federal, state and/or local taxes the Company determines it is
required to withhold under applicable tax laws with respect to the payment in respect of the RSUs (e.g. in the case of a Participant who is an employee). To satisfy the foregoing requirement, the Company shall withhold a portion of the RSUs, or a
portion of the shares of Common Stock to be received hereunder, having a value approximately equal to the minimum amount required to be withheld, or, 

  
 A-5

	 	
at the Committee’s discretion, the Participant may satisfy the foregoing requirement by one or a combination of the following methods: (i) making a payment to the Company in cash or
cash equivalents or (ii) by authorizing the Company to withhold cash otherwise due to the Participant. In the event the Company determines it is not required to withhold under applicable tax laws with respect to the payment in respect of the
RSUs (e.g. in the case of a Participant who is an independent contractor), the Participant shall be responsible for the remittance of any federal, state and/or local taxes to the proper authorities, and the Company shall issue a Form 1099 to report
such taxable income. The Company cannot provide tax advice and the Participant is encouraged to consult an independent tax professional. 

  

	10.	Section 409A Compliance. The intent of the parties is that payments and benefits under these Additional Terms and Conditions comply with (or be exempt from)
Section 409A of the Code and, accordingly, to the maximum extent permitted, these Additional Terms and Conditions shall be interpreted and be administered to be in compliance therewith. Notwithstanding anything contained herein to the contrary,
to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, the Participant shall not be considered to have terminated Employment/Service with the Company and its Related Entities for
purposes of these Additional Terms and Conditions and no payment shall be due to the Participant under these Additional Terms and Conditions until the Participant would be considered to have incurred a “separation from service” from the
Company within the meaning of Section 409A of the Code. Any payments described in these Additional Terms and Conditions or 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 these Additional Terms and Conditions or the Plan, to the extent that any RSUs are payable upon a separation from service
and such payment would result in the imposition of any individual excise tax and late interest charges imposed under Section 409A of the Code, the settlement and payment of such awards shall instead be made on the first business day after the
date that is six months following such separation from service (or death, if earlier). 

  

	11.	Compliance with Law and Regulations. These Additional Terms and Conditions, the Award granted hereby and any obligation of the Company hereunder shall be subject
to all applicable federal, state and local laws, rules and regulations and to such approvals by any government or regulatory agency as may be required. 

  

	12.	Incorporation of Plan. These Additional Terms and Conditions are governed by the provisions of the Plan (which is incorporated herein by reference) and shall be
interpreted in a manner consistent with it. To the extent that these Additional Terms and Conditions are silent with respect to, or in any way inconsistent with, the terms of the Plan, the provisions of the Plan shall govern and these Additional
Terms and Conditions shall be deemed to be modified accordingly. 

  

	13.	 Notices. Any notices required or permitted hereunder shall be addressed to Office of the General Counsel, National Financial Partners Corp., 340
Madison Avenue, 20th Floor, New York, New York 10173, or to the Participant at the postal address then on record 

  
 A-6

	 	
with the Company or by electronic communication, as the case may be, and deposited, postage prepaid, in the United States mail or delivered by electronic communication. Either party may, by
notice to the other given in the manner aforesaid, change his/her or its address for future notices. 

  

	14.	Binding Agreement; Successors. These Additional Terms and Conditions shall bind and inure to the benefit of the Company, its successors and assigns, and the
Participant and the Participant’s personal representatives and beneficiaries. 

  

	15.	Governing Law. These Additional Terms and Conditions shall be governed by and construed in accordance with the laws of the State of Delaware without giving
effect to any principles thereof relating to the conflict of laws. The Committee shall have final authority to interpret and construe the Plan and these Additional Terms and Conditions and to make any and all determinations under them, and its
decision shall be binding and conclusive upon all Persons. 

  

	16.	Amendment. These Additional Terms and Conditions may be amended or modified by the Company at any time in accordance with the Plan; provided, that notice
is provided to the Participant in accordance with Section 13 hereof; and provided, further, that no amendment or modification that is adverse to the rights of the Participant as provided by the Notice and these Additional Terms
and Conditions shall be effective unless set forth in a writing signed by the Participant and the Company. 

  

	17.	Headings. The captions used in these Additional Terms and Conditions are inserted for convenience and shall not be deemed a part of the Additional Terms and
Conditions for construction or interpretation. 

  

	18.	Dispute Resolution. The provisions of this Section 18 shall be the exclusive means of resolving disputes arising out of or relating to the Notice, the Plan
and these Additional Terms and Conditions. Any dispute or controversy between the parties relating to or arising out the Notice, the Plan or these Additional Terms and Conditions shall be determined by arbitration in New York, New York by and
pursuant to the rules then prevailing of the American Arbitration Association. The arbitration award shall be final and binding upon the parties and judgment may be entered thereon by any court of competent jurisdiction. The service of any notice,
process, motion or other document in connection with any arbitration under the Notice, the Plan or these Additional Terms and Conditions or the enforcement of any arbitration award hereunder may be effectuated either by personal service upon a party
or by certified mail duly addressed to him or to his executors, administrators, personal representatives, next of kin, successors or assigns, at the last known address or addresses of such party or Parties. If any one or more provisions of this
Section 18 shall for any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable.

  
 A-7EX-10.1

 Exhibit 10.1 
  

 
 PS BUSINESS PARKS, INC.

 2012 EQUITY AND PERFORMANCE-BASED INCENTIVE COMPENSATION PLAN 

 
  

  
 1 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 1. PURPOSE
	  	 	1	  
	 2. DEFINITIONS
	  	 	1	  
	 3. ADMINISTRATION OF THE PLAN
	  	 	7	  
	 3.1. Committee
	  	 	7	  
	 3.1.1. Powers and Authorities
	  	 	7	  
	 3.1.2. Composition of Committee
	  	 	8	  
	 3.1.3. Other Committees
	  	 	8	  
	 3.2. Board
	  	 	8	  
	 3.3. Terms of Awards
	  	 	8	  
	 3.3.1. Committee Authority
	  	 	8	  
	 3.3.2. Forfeiture; Recoupment
	  	 	9	  
	 3.4. No Repricing
	  	 	10	  
	 3.5. Deferral Arrangement
	  	 	10	  
	 3.6. No Liability
	  	 	10	  
	 3.7. Registration; Share Certificates
	  	 	10	  
	 4. STOCK SUBJECT TO THE PLAN
	  	 	10	  
	 4.1. Number of Shares of Stock Available for Awards
	  	 	10	  
	 4.2. Adjustments in Authorized Shares of Stock
	  	 	11	  
	 4.3. Share Usage
	  	 	11	  
	 5. EFFECTIVE DATE; TERM; AMENDMENT AND TERMINATION
	  	 	12	  
	 5.1. Effective Date
	  	 	12	  
	 5.2. Term
	  	 	12	  
	 5.3. Amendment and Termination
	  	 	12	  
	 6. AWARD ELIGIBILITY AND LIMITATIONS
	  	 	12	  
	 6.1. Eligible Grantees
	  	 	12	  
	 6.2. Limitation on Shares of Stock Subject to Awards
	  	 	13	  
	 6.3. Stand-Alone, Additional, Tandem and Substitute Awards
	  	 	13	  
	 7. AWARD AGREEMENT
	  	 	14	  
	 8. TERMS AND CONDITIONS OF OPTIONS
	  	 	14	  
	 8.1. Option Price
	  	 	14	  
	 8.2. Vesting
	  	 	14	  
	 8.3. Term
	  	 	14	  
	 8.4. Termination of Service
	  	 	15	  
	 8.5. Limitations on Exercise of Option
	  	 	15	  
	 8.6. Method of Exercise
	  	 	15	  
	 8.7. Rights of Holders of Options
	  	 	15	  
	 8.8. Delivery of Stock
	  	 	15	  
	 8.9. Transferability of Options
	  	 	16	  
	 8.10. Family Transfers
	  	 	16	  
	 8.11. Limitations on Incentive Stock Options
	  	 	16	  
	 8.12. Notice of Disqualifying Disposition
	  	 	16	  

  
 - i -

					
	 9. TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS
	  	 	17	  
	 9.1. Right to Payment and Grant Price
	  	 	17	  
	 9.2. Other Terms
	  	 	17	  
	 9.3. Term
	  	 	17	  
	 9.4. Transferability of SARs
	  	 	17	  
	 9.5. Family Transfers
	  	 	18	  
	 10. TERMS AND CONDITIONS OF RESTRICTED STOCK AND STOCK UNITS
	  	 	18	  
	 10.1. Grant of Restricted Stock and Stock Units
	  	 	18	  
	 10.2. Restrictions
	  	 	18	  
	 10.3. Registration; Restricted Share Certificates
	  	 	18	  
	 10.4. Rights of Holders of Restricted Stock
	  	 	19	  
	 10.5. Rights of Holders of Stock Units
	  	 	19	  
	 10.5.1. Voting and Dividend Rights
	  	 	19	  
	 10.5.2. Creditor’s Rights
	  	 	19	  
	 10.6. Termination of Service
	  	 	20	  
	 10.7. Purchase of Restricted Stock and Shares of Stock Subject to Stock Units
	  	 	20	  
	 10.8. Delivery of Shares of Stock
	  	 	20	  
	 11. TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS
	  	 	20	  
	 11.1. Unrestricted Stock Awards
	  	 	20	  
	 11.2. Other Equity-Based Awards
	  	 	21	  
	 12. FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK
	  	 	21	  
	 12.1. General Rule
	  	 	21	  
	 12.2. Surrender of Shares of Stock
	  	 	21	  
	 12.3. Cashless Exercise
	  	 	21	  
	 12.4. Other Forms of Payment
	  	 	22	  
	 13. TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS
	  	 	22	  
	 13.1. Dividend Equivalent Rights
	  	 	22	  
	 13.2. Termination of Service
	  	 	22	  
	 14. TERMS AND CONDITIONS OF PERFORMANCE-BASED AWARDS
	  	 	23	  
	 14.1. Grant of Performance-Based Awards
	  	 	23	  
	 14.2. Structure of Performance-Based Awards
	  	 	23	  
	 14.3. Earning of Performance-Based Awards
	  	 	23	  
	 14.4. Form and Timing of Payment of Performance-Based Awards
	  	 	23	  
	 14.5. Performance Conditions
	  	 	23	  
	 14.6. Performance-Based Awards Granted to Designated Covered Employees
	  	 	24	  
	 14.6.1. Performance Goals Generally
	  	 	24	  
	 14.6.2. Timing For Establishing Performance Goals
	  	 	24	  
	 14.6.3. Payment of Awards; Other Terms
	  	 	24	  
	 14.6.4. Performance Measures
	  	 	25	  
	 14.6.5. Evaluation of Performance
	  	 	25	  
	 14.6.6. Adjustment of Performance-Based Compensation
	  	 	26	  

  
 - ii -

					
	 14.6.7. Committee Discretion
	  	 	26	  
	 14.7. Status of Awards Under Code Section 162(m)
	  	 	26	  
	 15. PARACHUTE LIMITATIONS
	  	 	26	  
	 16. REQUIREMENTS OF LAW
	  	 	27	  
	 16.1. General
	  	 	27	  
	 16.2. Rule 16b-3
	  	 	28	  
	 17. EFFECT OF CHANGES IN CAPITALIZATION
	  	 	28	  
	 17.1. Changes in Stock
	  	 	28	  
	 17.2. Reorganization in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control
	  	 	29	  
	 17.3. Change in Control in which Awards are not Assumed
	  	 	29	  
	 17.4. Change in Control in which Awards are Assumed
	  	 	30	  
	 17.5. Adjustments
	  	 	31	  
	 17.6. No Limitations on Company
	  	 	31	  
	 18. GENERAL PROVISIONS
	  	 	31	  
	 18.1. Disclaimer of Rights
	  	 	31	  
	 18.2. Nonexclusivity of the Plan
	  	 	32	  
	 18.3. Withholding Taxes
	  	 	32	  
	 18.4. Captions
	  	 	33	  
	 18.5. Construction
	  	 	33	  
	 18.6. Other Provisions
	  	 	33	  
	 18.7. Number and Gender
	  	 	33	  
	 18.8. Severability
	  	 	33	  
	 18.9. Governing Law
	  	 	33	  
	 18.10. Section 409A of the Code
	  	 	34	  

  
 - iii -

 PS BUSINESS PARKS, INC. 

2012 EQUITY AND PERFORMANCE-BASED INCENTIVE COMPENSATION PLAN 

PS Business Parks, Inc., a California corporation (the “Company”), sets forth herein the terms of its 2012 Equity and
Performance-Based Incentive Compensation Plan (the “Plan”), as follows: 
  

	1.	PURPOSE 

 The Plan is
intended to (a) provide eligible persons with an incentive to contribute to the success of the Company and to operate and manage the Company’s business in a manner that will provide for the Company’s long-term growth and profitability
to benefit its stockholders and other important stakeholders, including its employees and customers, and (b) provide a means of obtaining, rewarding and retaining key personnel. To this end, the Plan provides for the grant of awards of stock
options, stock appreciation rights, restricted stock, stock units, unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards, and cash bonus awards. Any of these awards may, but
need not, be made as performance incentives to reward the holders of such awards for the achievement of performance goals in accordance with the terms of the Plan. Stock options granted under the Plan may be non-qualified stock options or incentive
stock options, as provided herein. 
  

	2.	DEFINITIONS 

 For purposes
of interpreting the Plan documents (including the Plan and Award Agreements), the following definitions shall apply: 
 2.1
“Affiliate” means any company or other entity that controls, is controlled by or is under common control with the Company within the meaning of Rule 405 of Regulation C under the Securities Act, including any Subsidiary. For
purposes of grants of Options or Stock Appreciation Rights, an entity may not be considered an Affiliate unless the Company holds a “controlling interest” in such entity within the meaning of Treasury Regulation
Section 1.414(c)-2(b)(2)(i), provided that (a) except as specified in clause (b) below, an interest of “at least 50 percent” shall be used instead of an interest of “at least 80 percent” in each case
where “at least 80 percent” appears in Treasury Regulation Section 1.414(c)-2(b)(2)(i) and (b) where the grant of Options or Stock Appreciation Rights is based upon a legitimate business criterion, an interest of “at
least 20 percent” shall be used instead of an interest of “at least 80 percent” in each case where “at least 80 percent” appears in Treasury Regulation Section 1.414(c)-2(b)(2)(i). 

2.2 “Applicable Laws” means the legal requirements relating to the Plan and the Awards under (a) applicable
provisions of the corporate, securities, tax and other laws, rules, regulations and government orders of any jurisdiction applicable to Awards granted to residents therein and (b) the rules of any Stock Exchange on which the Stock is listed.

 2.3 “Award” means a grant under the Plan of an Option, a Stock Appreciation
Right, Restricted Stock, a Stock Unit, Unrestricted Stock, a Dividend Equivalent Right, a Performance Share or other Performance-Based Award, an Other Equity-Based Award or cash. 

2.4 “Award Agreement” means the agreement between the Company and a Grantee that evidences and sets out the terms and
conditions of an Award. 
 2.5 “Award Stock” shall have the meaning set forth in
Section 17.3(a)(ii). 
 2.6 “Benefit Arrangement” shall have the meaning set forth in
Section 15. 
 2.7 “Board” means the Board of Directors of the Company. 

2.8 “Cause” means, with respect to any Grantee, as determined by the Committee and unless otherwise provided in an
applicable agreement between such Grantee and the Company or an Affiliate, (a) gross negligence or willful misconduct in connection with the performance of duties; (b) conviction of a criminal offense (other than minor traffic offenses);
or (iii) material breach of any term of any employment, consulting or other services, confidentiality, intellectual property or non-competition agreements, if any, between the Service Provider and the Company or an Affiliate. 

2.9 “Change in Control” means 
 (a) the dissolution or liquidation of the Company or upon a merger, consolidation or reorganization of the Company with one or more entities (other than Public Storage or its affiliates) in which the
Company is not the surviving entity; 
 (b) a sale of substantially all of the assets of the Company to another entity (other
than Public Storage or its affiliates); 
 (c) a merger in which the Company is the surviving corporation but after which the
Company’s stockholders immediately prior to such merger cease to own their shares or other equity interest in the Company (other than a merger with Public Storage or its affiliates); 

(d) the acquisition, sale or transfer of more than 50% of the Company’s outstanding shares by tender offer or similar transaction
(other than by or to Public Storage or its affiliates); or 
 (e) any other transaction that the Board specifies constitutes a
Change of Control, in its sole discretion. 
 2.10 “Code” means the Internal Revenue Code of 1986, as amended,
as now in effect or as hereafter amended, and any successor thereto. References in the Plan to any Code Section shall be deemed to include, as applicable, regulations promulgated under such Code Section. 

  
 2 

 2.11 “Committee” means a committee of, and designated from time to time by
resolution of, the Board, which shall be constituted as provided in Section 3.1.2 and Section 3.1.3 (or, if no Committee has been so designated, the Board). 

2.12 “Company” means PS Business Parks, Inc., a California corporation. 

2.13 “Covered Employee” means a Grantee who is a “covered employee” within the meaning of Code
Section 162(m)(3). 
 2.14 “Determination Date” means the Grant Date or such other date as of which the
Fair Market Value of a share of Stock is required to be established for purposes of the Plan. 
 2.15 “Disability”
means the Grantee is unable to perform each of the essential duties of such Grantee’s position by reason of a medically determinable physical or mental impairment which is potentially permanent in character or which can be expected to last
for a continuous period of not less than 12 months; provided, however, that, with respect to rules regarding expiration of an Incentive Stock Option following termination of the Grantee’s Service, Disability shall mean the Grantee
is unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less
than 12 months. 
 2.16 “Dividend Equivalent Right” means a right, granted to a Grantee pursuant to
Section 13, to receive cash, Stock, other Awards or other property equal in value to dividends or other periodic payments paid or made with respect to a specified number of shares of Stock. 

2.17 “Effective Date” means February 20, 2012, the date on which the Plan was approved by the Board of Directors.

 2.18 “Employee” means, as of any date of determination, an employee (including an officer) of the Company or
an Affiliate. 
 2.19 “Exchange Act” means the Securities Exchange Act of 1934, as amended, as now in effect or
as hereafter amended. 
 2.20 “Fair Market Value” means the fair market value of a share of Stock for purposes
of the Plan, which shall be determined as of any Determination Date as follows: 
 (a) If on such Determination
Date the shares of Stock are listed on a Stock Exchange, or are publicly traded on another established securities market (a “Securities Market”), the Fair Market Value of a share of Stock shall be the closing price of the Stock on such
Determination Date as reported on such Stock Exchange or such Securities Market (provided that, if there is more than one such Stock Exchange or Securities Market, the Committee shall designate the appropriate Stock Exchange or Securities
Market for purposes of the Fair Market Value determination). If there is no such reported closing price on such Determination Date, the Fair Market Value of a share of Stock shall be the closing price of the Stock on the next preceding day on which
any sale of Stock shall have been reported on such Stock Exchange or such Securities Market. 

  
 3 

 (b) If on such Determination Date the shares of Stock are not listed on a
Stock Exchange or publicly traded on a Securities Market, the Fair Market Value of a share of Stock shall be the value of the Stock on such Determination Date as determined by the Committee by the reasonable application of a reasonable valuation
method, in a manner consistent with Code Section 409A. 
 Notwithstanding this Section 2.20 or
Section 18.3, for purposes of determining taxable income and the amount of the related tax withholding obligation pursuant to Section 18.3, for any shares of Stock subject to an Award that are sold by or on behalf of a
Grantee on the same date on which such shares may first be sold pursuant to the terms of the related Award Agreement, the Fair Market Value of such shares shall be the sale price of such shares on such date (or if sales of such shares are
effectuated at more than one sale price, the weighted average sale price of such shares on such date). 
 2.21 “Family
Member” means, with respect to any Grantee as of any date of determination, (a) a person who is a spouse, former spouse, child, stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive relationships, of such Grantee, (b) any person sharing such Grantee’s household (other than a tenant or employee), (c) a trust in which
any one or more of the persons specified in clauses (a) and (b) above (and such Grantee) own more than fifty percent (50%) of the beneficial interest, (d) a foundation in which any one or more of the persons specified in clauses
(a) and (b) above (and such Grantee) control the management of assets, and (e) any other entity in which one or more of the persons specified in clauses (a) and (b) above (and such Grantee) own more than fifty percent
(50%) of the voting interests. 
 2.22 “Grant Date” means, as determined by the Committee, the latest to
occur of (a) the date as of which the Committee approves the Award, (b) the date on which the recipient of an Award first becomes eligible to receive an Award under Section 6 hereof (e.g., in the case of a new hire, the first
date on which such new hire performs any Service), or (c) such subsequent date specified by the Committee in the corporate action approving the Award. 
 2.23 “Grantee” means a person who receives or holds an Award under the Plan. 
 2.24 “Incentive Stock Option” means an “incentive stock option” within the meaning of Code Section 422, or the corresponding provision of any subsequently enacted tax
statute, as amended from time to time. 
 2.25 “Non-qualified Stock Option” means an Option that is not an
Incentive Stock Option. 
 2.26 “Option” means an option to purchase one or more shares of Stock pursuant to
the Plan. 
 2.27 “Option Price” means the exercise price for each share of Stock subject to an Option.

  
 4 

 2.28 “Other Agreement” shall have the meaning set forth in
Section 15. 
 2.29 “Other Equity-Based Award” means an Award representing a right or other
interest that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock, other than an Option, a Stock Appreciation Right, Restricted Stock, a Stock Unit, Unrestricted Stock, a Dividend
Equivalent Right or a Performance Share. 
 2.30 “Outside Director” means a member of the Board who is not an
employee of the Company or any Affiliate. 
 2.31 “Parachute Payment” shall have the meaning set forth in
Section 15(a). 
 2.32 “Performance-Based Award” means an Award of Options, Stock Appreciation
Rights, Restricted Stock, Stock Units, Performance Shares, Other Equity-Based Awards or cash made subject to the achievement of performance goals (as provided in Section 14) over a Performance Period specified by the Committee.

 2.33 “Performance-Based Compensation” means compensation under an Award that is intended to satisfy the
requirements of Code Section 162(m) for “qualified performance-based compensation” paid to Covered Employees. Notwithstanding the foregoing, nothing in the Plan shall be construed to mean that an Award which does not satisfy the
requirements for “qualified performance-based compensation” within the meaning of and pursuant to Code Section 162(m) does not constitute performance-based compensation for other purposes, including the purposes of Code
Section 409A. 
 2.34 “Performance Measures” means measures as specified in Section 14 on
which the performance goals under Performance-Based Awards are based and which are approved by the Company’s shareholders pursuant to, and to the extent required by, the Plan in order to qualify such Performance-Based Awards as
Performance-Based Compensation. 
 2.35 “Performance Period” means the period of time of up to ten
(10) years during which the performance goals under Performance-Based Awards must be met in order to determine the degree of payout and/or vesting with respect to any such Performance-Based Awards. 

2.36 “Performance Shares” means a Performance-Based Award representing a right or other interest that may be denominated
or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock, made subject to the achievement of performance goals (as provided in Section 14) over a Performance Period. 

2.37 “Plan” means this PS Business Parks, Inc. 2012 Equity and Performance-Based Incentive Compensation Plan, as amended
from time to time. 
 2.38 “Prior Plans” means the PS Business Parks, Inc. 1997 Stock Option and Incentive
Plan, the PS Business Parks, Inc. 2003 Stock Option and Incentive Plan and the PS Business Parks, Inc. Retirement Plan for Non-Employee Directors. 

  
 5 

 2.39 “Reporting Person” means a person who is required to file reports
under Section 16(a) of the Exchange Act, or any successor provision. 
 2.40 “Restricted Period” shall
have the meaning set forth in Section 10.2. 
 2.41 “Restricted Stock” means shares of Stock
awarded to a Grantee pursuant to Section 10. 
 2.42 “SAR Price” shall have the meaning set forth
in Section 9.1. 
 2.43 “Securities Act” means the Securities Act of 1933, as amended, as now in
effect or as hereafter amended. 
 2.44 “Service” means service qualifying the Grantee as a Service Provider in
the Company or an Affiliate. Unless otherwise stated in the applicable Award Agreement, a Grantee’s change in position or duties shall not result in interrupted or terminated Service, so long as such Grantee continues to qualify as a Service
Provider in the Company or an Affiliate. Subject to the preceding sentence, whether a termination of Service shall have occurred for purposes of the Plan shall be determined by the Committee, which determination shall be final, binding and
conclusive. If a Service Provider’s employment or other service relationship is with an Affiliate and the applicable entity ceases to be an Affiliate, a termination of Service shall be deemed to have occurred when such entity ceases to be an
Affiliate unless the Service Provider transfers his or her employment or other service relationship to the Company or any other Affiliate. 
 2.45 “Service Provider” means an employee, officer or director of the Company or an Affiliate, or a consultant or adviser (who is a natural person) currently providing services to the
Company or an Affiliate. 
 2.46 “Stock” means the common stock, par value $0.01 per share, of the Company, or
any security which shares of Stock may be changed into or for which shares of Stock may be exchanged as provided in Section 17.1. 
 2.47 “Stock Appreciation Right” or “SAR” means a right granted to a Grantee pursuant to Section 9. 

2.48 “Stock Exchange” means the New York Stock Exchange or another established national or regional stock exchange.

 2.49 “Stock Unit” means a bookkeeping entry representing the equivalent of one (1) share of Stock
awarded to a Grantee pursuant to Section 10. 
 2.50 “Subsidiary” means any corporation (other than
the Company) or non-corporate entity with respect to which the Company owns, directly or indirectly, fifty percent (50%) or more of the total combined voting power of all classes of stock, membership interests or other ownership interests of
any class or kind ordinarily having the power to vote for the directors, managers or other voting members of the governing body of such corporation or non-corporate entity. In addition, any other entity may be designated by the Committee as a
Subsidiary, provided that (a) such entity could be considered as a subsidiary according to generally accepted accounting principles in the United States of America, and (b) in the case of an Award of Options or Stock Appreciation
Rights, such Award would be considered to be granted in respect of “service recipient stock” under Code section 409A. 

  
 6 

 2.51 “Substitute Award” means an Award granted upon assumption of, or in
substitution for, outstanding awards previously granted under a compensatory plan by a business entity acquired or to be acquired by the Company or an Affiliate or with which the Company or an Affiliate has combined or will combine. 

2.52 “Ten Percent Shareholder” means a natural person who owns more than ten percent (10%) of the total combined
voting power of all classes of outstanding voting securities of the Company, the Company’s parent (if any) or any of the Company’s Subsidiaries. In determining stock ownership, the attribution rules of Code Section 424(d) shall be
applied. 
 2.53 “Unrestricted Stock” shall have the meaning set forth in Section 11. 

 

	3.	ADMINISTRATION OF THE PLAN 

  

	 	3.1.	Committee. 

  

	 	3.1.1.	Powers and Authorities. 

The Committee shall administer the Plan and shall have such powers and authorities related to the administration of the Plan as are
consistent with the Company’s articles of incorporation and bylaws and Applicable Laws. Without limiting the generality of the foregoing, the Committee shall have full power and authority to take all actions and to make all determinations
required or provided for under the Plan, any Award or any Award Agreement, and shall have full power and authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and provisions of the
Plan which the Committee deems to be necessary or appropriate to the administration of the Plan, any Award or any Award Agreement. All such actions and determinations shall be made by (a) the affirmative vote of a majority of the members of the
Committee present at a meeting at which a quorum is present, or (b) the unanimous consent of the members of the Committee executed in writing in accordance Company’s articles of incorporation and bylaws and Applicable Laws. Unless
otherwise expressly determined by the Board, the Committee shall have the authority to interpret and construe all provisions of the Plan, any Award and any Award Agreement, and any such interpretation or construction, and any other determination
contemplated to be made under the Plan or any Award Agreement, by the Committee shall be final, binding and conclusive whether or not expressly provided for in any provision of the Plan, such Award or such Award Agreement. 

In the event that the Plan, any Award or any Award Agreement provides for any action to be taken by the Board or any determination to be
made by the Board, such action may be taken or such determination may be made by the Committee constituted in accordance with this Section 3.1 if the Board has delegated the power and authority to do so to such Committee. 

  
 7 

	 	3.1.2.	Composition of Committee. 

The Committee shall be a committee composed of not fewer than two directors of the Company designated by the Board to administer the Plan.
Each member of the Committee shall be a “Non-Employee Director” within the meaning of Rule 16b-3 under the Exchange Act, an “outside director” within the meaning of Code Section 162(m)(4)(C)(i) and, for so long as the Stock
is listed on the New York Stock Exchange, an “independent director” within the meaning of Section 303A of the New York Stock Exchange Listed Company Manual (or, in each case, any successor term or provision); provided, that any
action taken by the Committee shall be valid and effective whether or not members of the Committee at the time of such action are later determined not to have satisfied the requirements for membership set forth in this Section 3.1.2 or
otherwise provided in any charter of the Committee. Without limiting the generality of the foregoing, the Committee may be the Compensation Committee of the Board or a subcommittee thereof if the Compensation Committee of the Board or such
subcommittee satisfies the foregoing requirements. 
  

	 	3.1.3.	Other Committees. 

 The
Board also may appoint one or more committees of the Board, each composed of one or more directors of the Company who need not be Outside Directors, subject to the requirements of applicable law, which may administer the Plan with respect to
Grantees who are not “executive officers” as defined in Rule 3b-7 under the Exchange Act or directors of the Company, may grant Awards under the Plan to such Grantees, and may determine all terms of such Awards, subject to the requirements
of Rule 16b-3 under the Exchange Act, Code Section 162(m) and, for so long as the Stock is listed on the New York Stock Exchange, the rules of the New York Stock Exchange. 

 

	 	3.2.	Board. 

 The Board from
time to time may exercise any or all of the powers and authorities related to the administration and implementation of the Plan, as set forth in Section 3.1 and other applicable provisions of the Plan, as the Board shall determine,
consistent with the Company’s articles of incorporation and bylaws and Applicable Laws. 
  

	 	3.3.	Terms of Awards. 

  

	 	3.3.1.	Committee Authority. 

Subject to the other terms and conditions of the Plan, the Committee shall have full and final authority to: 

(a) designate Grantees; 
 (b) determine the type or types of Awards to be made to a Grantee; 
 (c) determine
the number of shares of Stock to be subject to an Award; 

  
 8 

 (d) establish the terms and conditions of each Award (including the Option Price of any
Option or the purchase price for Restricted Stock), the nature and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the shares of Stock subject
thereto, the treatment of an Award in the event of a Change in Control (subject to applicable agreements), and any terms or conditions that may be necessary to qualify Options as Incentive Stock Options; 

(e) prescribe the form of each Award Agreement evidencing an Award; and 

(f) subject to the limitation on repricing in Section 3.4, amend, modify or supplement the terms of any outstanding Award,
which authority shall include the authority, in order to effectuate the purposes of the Plan but without amending the Plan, to make Awards or to modify outstanding Awards made to eligible natural persons who are foreign nationals or are natural
persons who are employed outside the United States to reflect differences in local law, tax policy, or custom, provided that, notwithstanding the foregoing, no amendment, modification or supplement of the terms of any outstanding Award
shall, without the consent of the Grantee thereof, impair the Grantee’s rights under such Award. 
 The Committee shall
have the right, in its discretion, to make Awards in substitution or exchange for any award granted under another compensatory plan of the Company, any Affiliate, or any business entity acquired or to be acquired by the Company or an Affiliate or
with which the Company or an Affiliate has combined or will combine. 
  

	 	3.3.2.	Forfeiture; Recoupment. 

The Committee may reserve the right in an Award Agreement to cause a forfeiture of the gain realized by a Grantee with respect to an Award
thereunder on account of actions taken by, or failed to be taken by, such Grantee in violation or breach of or in conflict with any (a) employment agreement, (b) non-competition agreement, (c) agreement prohibiting solicitation of
Employees or clients of the Company or any Affiliate, (d) confidentiality obligation with respect to the Company or any Affiliate, (e) Company policy or procedure, (f) other agreement or (g) any other obligation of such Grantee
to the Company or any Affiliate, as and to the extent specified in such Award Agreement. The Committee may annul an outstanding Award if the Grantee thereof is an Employee of the Company or any Affiliate and is terminated for Cause as defined in the
Plan or the applicable Award Agreement or for “cause” as defined in any other agreement between the Company or such Affiliate and such Grantee, as applicable. 
 Any Award granted pursuant to the Plan shall be subject to mandatory repayment by the Grantee to the Company to the extent the Grantee is, or in the future becomes, subject to (a) any Company
“clawback” or recoupment policy that is adopted to comply with the requirements of any Applicable Law, rule or regulation, or otherwise, or (b) any law, rule or regulation which imposes mandatory recoupment under circumstances set
forth in such law, rule or regulation. 

  
 9 

	 	3.4.	No Repricing. 

 Except in
connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, distribution (whether in the form of cash, shares of Stock, other securities or other property), stock split, extraordinary cash
dividend, recapitalization, change in control, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares of Stock or other securities or similar transaction), the Company may not, without obtaining
stockholder approval: (a) amend the terms of outstanding Options or SARs to reduce the exercise price of such outstanding Options or SARs; (b) cancel outstanding Options or SARs in exchange for or substitution of Options or SARs with an
exercise price that is less than the exercise price of the original Options or SARs; or (c) cancel outstanding Options or SARs with an exercise price above the current stock price in exchange for cash or other securities.  

 

	 	3.5.	Deferral Arrangement. 

The Committee may permit or require the deferral of any payment pursuant to any Award into a deferred compensation arrangement, subject to
such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest or Dividend Equivalent Rights and, in connection therewith, provisions for converting such credits into Stock Units and for
restricting deferrals to comply with hardship distribution rules affecting tax-qualified retirement plans subject to Code Section 401(k)(2)(B)(IV), provided that no Dividend Equivalent Rights may be granted in connection with, or related
to, an Award of Options or SARs. Any such deferrals shall be made in a manner that complies with Code Section 409A. 
  

	 	3.6.	No Liability. 

 No member
of the Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award or Award Agreement. 
  

	 	3.7.	Registration; Share Certificates. 

 Notwithstanding any provision of the Plan to the contrary, the ownership of the shares of Stock issued under the Plan may be evidenced in such a manner as the Committee, in its sole discretion, deems
appropriate, including by book-entry or direct registration or the issuance of one or more share certificates. 
  

	4.	STOCK SUBJECT TO THE PLAN 

  

	 	4.1.	Number of Shares of Stock Available for Awards. 

 (a) Subject to such additional shares of Stock as shall be available for issuance under the Plan pursuant to Section 4.2, and subject to adjustment pursuant to Section 17, the
maximum number of shares of Stock available for issuance under the Plan shall be equal to the sum of (x) 1,000,000 shares of Stock plus (y) the number of shares of Stock available for future awards under the Prior Plans as of the date
of shareholder approval of the Plan plus (z) the number of shares of Stock related to awards outstanding under the Prior Plans as of the date of shareholder approval of the Plan which thereafter terminate by expiration, forfeiture,
cancellation, or otherwise without the issuance of such shares. 

  
 10 

 (b) The maximum number of shares of Stock available for issuance pursuant to Incentive Stock
Options shall be the same as the maximum number of shares available for issuance under the Plan pursuant to Section 4.1(a). 
 (c) Shares of Stock to be issued under the Plan shall be authorized but unissued shares, or, to the extent permitted by Applicable Laws, shares of treasury stock or issued shares that have been reacquired
by the Company. 
  

	 	4.2.	Adjustments in Authorized Shares of Stock. 

 In connection with mergers, reorganizations, separations, or other transactions to which Code Section 424(a) applies, the Committee shall have the right to cause the Company to assume awards
previously granted under a compensatory plan by another business entity that is a party to such transaction and to substitute Awards under the Plan for such awards. The number of shares of Stock available for issuance under the Plan pursuant to
Section 4.1(a) shall be increased by the number of shares of Stock subject to any such assumed awards and substitute Awards. Shares available for issuance under a shareholder-approved plan of a business entity that is a party to such
transaction (as appropriately adjusted, if necessary, to reflect such transaction) may be used for Awards under the Plan and shall not reduce the number of shares of Stock otherwise available for issuance under the Plan, subject to applicable rules
of any Stock Exchange on which the Stock is listed. 
  

	 	4.3.	Share Usage. 

 (a) Shares
of Stock subject to an Award shall be counted as used as of the Grant Date. 
 (b) Any shares of Stock that are subject to
Awards shall be counted against the share issuance limit set forth in Section 4.1(a) as one (1) share of Stock for every one (1) share of Stock subject to an Award. With respect to SARs, the number of shares subject to an award
of SARs will be counted against the aggregate number of shares of Stock available for issuance under the Plan regardless of the number of shares actually issued to settle the SAR upon exercise. The target number of shares issuable under a
Performance Share grant shall be counted against the share issuance limit set forth in Section 4.1(a) as of the Grant Date, but such number shall be adjusted to equal the actual number of shares issued upon settlement of the Performance
Shares to the extent different from such target number of shares. 
 (c) Notwithstanding anything to the contrary in
Section 4.3(a) or Section 4.3(b), any shares of Stock subject to Awards under the Plan or under a Prior Plan which thereafter terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such shares
shall be available again for issuance under the Plan in the same amount as such shares were counted against the limit set forth in Section 4.1, provided that any shares covered by an award granted under a Prior Plan will again be
available for making Awards under the Plan in the same ratio as Awards under Section 4.1. 

  
 11 

 (d) The number of shares of Stock available for issuance under the Plan shall not be
increased by the number of shares of Stock (i) tendered or withheld or subject to an Award surrendered in connection with the purchase of shares of Stock upon exercise of an Option as provided in Section 12.2, (ii) deducted or
delivered from payment of an Award in connection with the Company’s tax withholding obligations as provided in Section 18.3 or (iii) purchased by the Company with proceeds from Option exercises. 

 

	5.	EFFECTIVE DATE; TERM; AMENDMENT AND TERMINATION 

  

	 	5.1.	Effective Date. 

 The Plan
shall be effective as of the Effective Date, subject to approval of the Plan by the Company’s stockholders within one year of the Effective Date. Upon approval of the Plan by the stockholders of the Company as set forth above, all Awards made
under the Plan on or after the Effective Date shall be fully effective as if the stockholders of the Company had approved the Plan on the Effective Date. If the stockholders fail to approve the Plan within one year of the Effective Date, any Awards
made hereunder shall be null and void and of no effect. Following the date of stockholder approval of the Plan, no awards shall be made under the Prior Plans. Notwithstanding the foregoing, shares of Stock reserved under the Prior Plans to settle
awards, including performance-based awards, which are made under the Prior Plans prior to the date of stockholder approval of the Plan may be issued and delivered following the date of stockholder approval of the Plan to settle such awards.

  

	 	5.2.	Term. 

 The Plan shall
terminate automatically ten (10) years after the Effective Date and may be terminated on any earlier date as provided in Section 5.3. 
  

	 	5.3.	Amendment and Termination. 

The Board may, at any time and from time to time, amend, suspend or terminate the Plan as to any shares of Stock as to which Awards have
not been made. The effectiveness of any amendment to the Plan shall be contingent on approval of such amendment by the Company’s shareholders to the extent provided by the Board or required by Applicable Laws (including the rules of any Stock
Exchange on which the Stock is then listed), provided that no amendment shall be made to the no-repricing provisions of Section 3.4 or the Option pricing provisions of Section 8.1 without the approval of the
Company’s shareholders. No amendment, suspension or termination of the Plan shall impair rights or obligations under any Award theretofore made under the Plan without the consent of the Grantee thereof. 

 

	6.	AWARD ELIGIBILITY AND LIMITATIONS 

  

	 	6.1.	Eligible Grantees. 

Subject to this Section 6, Awards may be made under the Plan to (i) any Service Provider (including any employee, officer
or director of the Company or an Affiliate, or a consultant or adviser (who is a natural person) currently providing services to the Company or an Affiliate) as the Committee shall determine and designate from time to time, and (ii) any other
individual whose participation in the Plan is determined to be in the best interests of the Company by the Committee. 

  
 12 

	 	6.2.	Limitation on Shares of Stock Subject to Awards. 

 During any time when the Company has a class of equity securities registered under Section 12 of the Exchange Act: 
 (a) the maximum number of shares of Stock subject to Options or SARs that may be granted under the Plan in a calendar year to any person eligible for an Award under Section 6 is 250,000
shares; 
 (b) the maximum number of shares of Stock that may be granted under the Plan, other than pursuant to Options or SARs,
in a calendar year to any person eligible for an Award under Section 6 is 250,000 shares; 
 (c) the maximum amount
that may be paid as a cash-settled Performance-Based Award for a performance period of twelve (12) months or less to any person eligible for an Award shall be $2,500,000. 
 (d) In the event a Performance Period is greater than twelve-months, then the maximum award that may be paid to a participant under the Plan with respect to the Performance Period will be an amount that
bears the same relationship to the new period of time as the foregoing amounts bear to a twelve-month Performance Period. 
 The
preceding limitations in this Section 6.2 are subject to adjustment as provided in Section 17. 
  

	 	6.3.	Stand-Alone, Additional, Tandem and Substitute Awards. 

 Subject to Section 3.4, Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution or exchange for,
(a) any other Award, (b) any award granted under another plan of the Company, any Affiliate, or any business entity that has been a party to a transaction with the Company or any Affiliate, or (c) any other right of a Grantee to
receive payment from the Company or any Affiliate. Such additional, tandem and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award, or for an award granted under another plan
of the Company, any Affiliate, or any business entity that has been a party to a transaction with the Company or any Affiliate, the Committee shall require the surrender of such other Award or award under such other plan in consideration for the
grant of such substitute or exchange Award. In addition, Awards may be granted in lieu of cash compensation, including in lieu of cash payments under other plans of the Company or any Affiliate. Notwithstanding Section 8.1 and
Section 9.1, but subject to Section 3.4, the Option Price of an Option or the SAR Price of a SAR that is a Substitute Award may be less than one hundred percent (100%) of the Fair Market Value of a share of Stock on the
original Grant Date; provided that the Option Price or SAR Price is determined in accordance with the principles of Code Section 424 for any Incentive Stock Option and consistent with Code Section 409A for any other Option or SAR.

  
 13 

	7.	AWARD AGREEMENT 

 Each
Award granted pursuant to the Plan shall be evidenced by an Award Agreement, which shall be in such form or forms as the Committee shall from time to time determine. Award Agreements employed under the Plan from time to time or at the same time need
not contain similar provisions, but shall be consistent with the terms of the Plan. Each Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be Non-qualified Stock Options or Incentive Stock Options,
and, in the absence of such specification, such Options shall be deemed to constitute Non-qualified Stock Options. 
  

	8.	TERMS AND CONDITIONS OF OPTIONS 

  

	 	8.1.	Option Price. 

 The Option
Price of each Option shall be fixed by the Committee and stated in the Award Agreement evidencing such Option. Except in the case of Substitute Awards, the Option Price of each Option shall be at least the Fair Market Value of one (1) share of
Stock on the Grant Date; provided that in the event that a Grantee is a Ten Percent Shareholder, the Option Price of an Option granted to such Grantee that is intended to be an Incentive Stock Option shall be not less than one hundred ten
percent (110%) of the Fair Market Value of one (1) share of Stock on the Grant Date. In no case shall the Option Price of any Option be less than the par value of a share of Stock. 

 

	 	8.2.	Vesting. 

 Subject to
Sections 8.3 and 17.3, each Option granted under the Plan shall become exercisable at such times and under such conditions as shall be determined by the Committee and stated in the Award Agreement, in another agreement with the
Grantee or otherwise in writing, provided that no Option, other than Options granted to persons who are not entitled to overtime under applicable state or federal laws, will vest or be exercisable within a six-month period starting on the Grant
Date. 
  

	 	8.3.	Term. 

 Each Option
granted under the Plan shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of ten (10) years from the Grant Date of such Option, or under such circumstances and on such date prior thereto as
is set forth in the Plan or as may be fixed by the Committee and stated in the Award Agreement relating to such Option; provided, that in the event that the Grantee is a Ten Percent Shareholder, an Option granted to such Grantee that is
intended to be an Incentive Stock Option shall not be exercisable after the expiration of five (5) years from its Grant Date. 

  
 14 

	 	8.4.	Termination of Service. 

Each Award Agreement with respect to the grant of an Option shall set forth the extent to which the Grantee thereof, if at all, shall have
the right to exercise such Option following termination of such Grantee’s Service. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination of Service. 
  

	 	8.5.	Limitations on Exercise of Option. 

 Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in whole or in part, prior to the date the Plan is approved by the shareholders of the Company as provided herein
or after the occurrence of an event referred to in Section 17 which results in the termination of such Option. 
  

	 	8.6.	Method of Exercise. 

Subject to the terms of Section 12 and Section 18.3, an Option that is exercisable may be exercised by the
Grantee’s delivery to the Company or its designee or agent of notice of exercise on any business day, at the Company’s principal office or the office of such designee or agent, on the form specified by the Company and in accordance with
any additional procedures specified by the Committee. Such notice shall specify the number of shares of Stock with respect to which such Option is being exercised and shall be accompanied by payment in full of the Option Price of the shares of Stock
for which such Option is being exercised plus the amount (if any) of federal and/or other taxes which the Company may, in its judgment, be required to withhold with respect to the exercise of such Option. 

 

	 	8.7.	Rights of Holders of Options. 

 Unless otherwise stated in the applicable Award Agreement, a Grantee or other person holding or exercising an Option shall have none of the rights of a shareholder of the Company (for example, the right
to receive cash or dividend payments or distributions attributable to the shares of Stock subject to such Option, to direct the voting of the shares of Stock subject to such Option, or to receive notice of any meeting of the Company’s
shareholders) until the shares of Stock subject thereto are fully paid and issued to such Grantee or other person. Except as provided in Section 17, no adjustment shall be made for dividends, distributions or other rights with respect to
any shares of Stock subject to an Option for which the record date is prior to the date of issuance of such shares of Stock. 
  

	 	8.8.	Delivery of Stock. 

Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price with respect thereto, such Grantee shall
be entitled to receive such evidence of such Grantee’s ownership of the shares of Stock subject to such Option as shall be consistent with Section 3.7. 

  
 15 

	 	8.9.	Transferability of Options. 

 Except as provided in Section 8.10, during the lifetime of a Grantee of an Option, only such Grantee (or, in the event of such Grantee’s legal incapacity or incompetency, such
Grantee’s guardian or legal representative) may exercise such Option. No Option shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and distribution. 

 

	 	8.10.	Family Transfers 

 If
authorized in the applicable Award Agreement and by the Committee, in its sole discretion, a Grantee may transfer, not for value, all or part of an Option which is not an Incentive Stock Option to any Family Member. For the purpose of this
Section 8.10, a transfer “not for value” is a transfer which is (a) a gift, (b) a transfer under a domestic relations order in settlement of marital property rights or (c) unless Applicable Laws do not permit
such transfer, a transfer to an entity in which more than fifty percent (50%) of the voting interests are owned by Family Members (and/or the Grantee) in exchange for an interest in such entity. Following a transfer under this
Section 8.10, any such Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to such transfer, and the shares of Stock acquired pursuant to such Option shall be subject to the same
restrictions with respect to transfers of such shares of Stock as would have applied to the Grantee thereof. Subsequent transfers of transferred Options shall be prohibited except to Family Members of the original Grantee in accordance with this
Section 8.10 or by will or the laws of descent and distribution. The provisions of Section 8.4 relating to termination of Service shall continue to be applied with respect to the original Grantee of the Option, following
which such Option shall be exercisable by the transferee only to the extent, and for the periods specified, in Section 8.4. 
  

	 	8.11.	Limitations on Incentive Stock Options. 

 An Option shall constitute an Incentive Stock Option only (a) if the Grantee of such Option is an Employee of the Company or any corporate Subsidiary, (b) to the extent specifically provided in
the related Award Agreement and (c) to the extent that the aggregate Fair Market Value (determined at the time such Option is granted) of the shares of Stock with respect to which all Incentive Stock Options held by such Grantee become
exercisable for the first time during any calendar year (under the Plan and all other plans of the Company and its Affiliates) does not exceed one hundred thousand dollars ($100,000). Except to the extent provided in the regulations under Code
Section 422, this limitation shall be applied by taking Options into account in the order in which they were granted. 
  

	 	8.12.	Notice of Disqualifying Disposition. 

 If any Grantee shall make any disposition of shares of Stock issued pursuant to the exercise of an Incentive Stock Option under the circumstances provided in Code Section 421(b) (relating to certain
disqualifying dispositions), such Grantee shall notify the Company of such disposition within ten (10) days thereof. 

  
 16 

	9.	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS 

  

	 	9.1.	Right to Payment and Grant Price. 

 A SAR shall confer on the Grantee to whom it is granted a right to receive, upon exercise thereof, the excess of (x) the Fair Market Value of one (1) share of Stock on the date of exercise over
(y) the per share exercise price of such SAR (the “SAR Price”) as determined by the Committee. The Award Agreement for a SAR shall specify the SAR Price, which shall be no less than the Fair Market Value of one (1) share
of Stock on the Grant Date of such SAR. SARs may be granted in tandem with all or part of an Option granted under the Plan or at any subsequent time during the term of such Option, in combination with all or any part of any other Award or without
regard to any Option or other Award; provided that a SAR that is granted subsequent to the Grant Date of a related Option must have a SAR Price that is no less than the Fair Market Value of one (1) share of Stock on the Grant Date of
such SAR. 
  

	 	9.2.	Other Terms. 

 The
Committee shall determine, on the Grant Date or thereafter, the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including based on achievement of performance goals and/or future Service
requirements), the time or times at which SARs shall cease to be or become exercisable following termination of Service or upon other conditions, the method of exercise, method of settlement, form of consideration payable in settlement, method by or
forms in which shares of Stock shall be delivered or deemed to be delivered to Grantees, whether or not a SAR shall be granted in tandem or in combination with any other Award, and any and all other terms and conditions of any SAR. 

 

	 	9.3.	Term. 

 Each SAR granted
under the Plan shall terminate, and all rights thereunder shall cease, upon the expiration of ten (10) years from the Grant Date of such SAR or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be
fixed by the Committee and stated in the Award Agreement relating to such SAR. 
  

	 	9.4.	Transferability of SARs. 

Except as provided in Section 9.5, during the lifetime of a Grantee of a SAR, only the Grantee (or, in the event of such
Grantee’s legal incapacity or incompetency, such Grantee’s guardian or legal representative) may exercise such SAR. No SAR shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent
and distribution. 

  
 17 

	 	9.5.	Family Transfers. 

 If
authorized in the applicable Award Agreement and by the Committee, in its sole discretion, a Grantee may transfer, not for value, all or part of a SAR to any Family Member. For the purpose of this Section 9.5, a transfer “not for
value” is a transfer which is (a) a gift, (b) a transfer under a domestic relations order in settlement of marital property rights or (c) unless Applicable Laws do not permit such transfer, a transfer to an entity in which more
than fifty percent (50%) of the voting interests are owned by Family Members (and/or the Grantee) in exchange for an interest in such entity. Following a transfer under this Section 9.5, any such SAR shall continue to be subject to
the same terms and conditions as were in effect immediately prior to such transfer, and shares of Stock acquired pursuant to a SAR shall be subject to the same restrictions on transfers of such shares of Stock as would have applied to the Grantee or
such SAR. Subsequent transfers of transferred SARs shall be prohibited except to Family Members of the original Grantee in accordance with this Section 9.5 or by will or the laws of descent and distribution. 

 

	10.	TERMS AND CONDITIONS OF RESTRICTED STOCK AND STOCK UNITS 

  

	 	10.1.	Grant of Restricted Stock and Stock Units. 

 Awards of Restricted Stock and Stock Units may be made for consideration or for no consideration, other than the par value of the shares of Stock, which shall be deemed paid by past Service or, if so
provided in the related Award Agreement or a separate agreement, the promise by the Grantee to perform future Service to the Company or an Affiliate. 
  

	 	10.2.	Restrictions. 

 At the
time a grant of Restricted Stock or Stock Units is made, the Committee may, in its sole discretion, (a) establish a period of time (a “Restricted Period”) applicable to such Award and (b) prescribe restrictions in addition
to or other than the expiration of the Restricted Period, including the satisfaction of corporate or individual performance goals, which may be applicable to all or any portion of such Award as provided in Section 14. Awards of
Restricted Stock and Stock Units may not be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Restricted Period or prior to the satisfaction of any other restrictions prescribed by the Committee with respect to
such Awards. 
  

	 	10.3.	Registration; Restricted Share Certificates. 

 Pursuant to Section 3.7, to the extent that ownership of Restricted Stock is evidenced by a book-entry registration or direct registration, such registration shall be notated to evidence the
restrictions imposed on such Award of Restricted Stock under the Plan and the applicable Award Agreement. Subject to Section 3.7 and the immediately following sentence, the Company may issue, in the name of each Grantee to whom
Restricted Stock has been granted, share certificates representing the total number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date of such Restricted Stock. The Committee may provide in
an Award Agreement with respect to an Award of Restricted Stock that either (a) the Secretary of the Company shall hold such share certificates for such Grantee’s benefit until such time as such shares of Restricted Stock are forfeited to
the Company or the restrictions applicable thereto lapse and such Grantee shall deliver a stock power to the Company with respect to each share certificate, or (b) such share certificates shall be delivered to such Grantee, provided that
such share certificates shall bear legends that comply with applicable securities laws and regulations and make appropriate reference to the restrictions imposed on such Award of Restricted Stock under the Plan and such Award Agreement. 

  
 18 

	 	10.4.	Rights of Holders of Restricted Stock. 

 Unless the Committee otherwise provides in an Award Agreement, holders of Restricted Stock shall have the right to vote such shares of Restricted Stock and the right to receive any dividends declared or
paid with respect to such shares of Restricted Stock. The Committee may provide that any dividends paid on Restricted Stock must be reinvested in shares of Stock, which may or may not be subject to the same vesting conditions and restrictions as the
vesting conditions and restrictions applicable to such Restricted Stock. Dividends paid on Restricted Stock which vests or is earned based upon the achievement of performance goals shall not vest unless such performance goals for such Restricted
Stock are achieved, and if such performance goals are not achieved, the Grantee of such Restricted Stock shall promptly forfeit and repay to the Company such dividend payments. All stock distributions, if any, received by a Grantee with
respect to Restricted Stock as a result of any stock split, stock dividend, combination of stock, or other similar transaction shall be subject to the vesting conditions and restrictions applicable to such Restricted Stock. 

 

	 	10.5.	Rights of Holders of Stock Units. 

  

	 	10.5.1.	Voting and Dividend Rights. 

 Holders of Stock Units shall have no rights as shareholders of the Company (for example, the right to receive cash or dividend payments or distributions attributable to the shares of Stock subject to such
Stock Units, to direct the voting of the shares of Stock subject to such Stock Units, or to receive notice of any meeting of the Company’s shareholders). The Committee may provide in an Award Agreement evidencing a grant of Stock Units that the
holder of such Stock Units shall be entitled to receive, upon the Company’s payment of a cash dividend on its outstanding shares of Stock, a cash payment for each such Stock Unit which is equal to the per-share dividend paid on such shares of
Stock. Such Award Agreement also may provide that such cash payment shall be deemed reinvested in additional Stock Units at a price per unit equal to the Fair Market Value of a share of Stock on the date that such cash dividend is paid. Such cash
payments paid in connection with Stock Units which vest or are earned based upon the achievement of performance goals shall not vest unless such performance goals for such Stock Units are achieved, and if such performance goals are not achieved, the
Grantee of such Stock Units shall promptly forfeit and repay to the Company such cash payments. 
  

	 	10.5.2.	Creditor’s Rights. 

A holder of Stock Units shall have no rights other than those of a general unsecured creditor of the Company. Stock Units represent
unfunded and unsecured obligations of the Company, subject to the terms and conditions of the applicable Award Agreement. 

  
 19 

	 	10.6.	Termination of Service. 

Unless the Committee otherwise provides in an Award Agreement, in another agreement with the Grantee or otherwise in writing after such
Award Agreement is entered into, but prior to termination of Grantee’s Service, upon the termination of such Grantee’s Service, any Restricted Stock or Stock Units held by such Grantee that have not vested, or with respect to which all
applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited. Upon forfeiture of such Restricted Stock or Stock Units, the Grantee thereof shall have no further rights with respect thereto, including any right to
vote such Restricted Stock or any right to receive dividends with respect to such Restricted Stock or Stock Units. 
  

	 	10.7.	Purchase of Restricted Stock and Shares of Stock Subject to Stock Units. 

 The Grantee of an Award of Restricted Stock or vested Stock Units shall be required, to the extent required by Applicable Laws, to purchase such Restricted Stock or the shares of Stock subject to such
vested Stock Units from the Company at a purchase price equal to the greater of (x) the aggregate par value of the shares of Stock represented by such Restricted Stock or such vested Stock Units or (y) the purchase price, if any, specified
in the Award Agreement relating to such Restricted Stock or such vested Stock Units. Such purchase price shall be payable in a form provided in Section 12 or, in the sole discretion of the Committee, in consideration for past or future
Services rendered to the Company or an Affiliate. 
  

	 	10.8.	Delivery of Shares of Stock. 

 Upon the expiration or termination of any Restricted Period and the satisfaction of any other conditions prescribed by the Committee, including but not limited to any delayed delivery period, the
restrictions applicable to Restricted Stock or Stock Units settled in shares of Stock shall lapse, and, unless otherwise provided in the applicable Award Agreement, a book-entry or direct registration or a share certificate evidencing ownership of
such shares of Stock shall, consistent with Section 3.7, be issued, free of all such restrictions, to the Grantee thereof or such Grantee’s beneficiary or estate, as the case may be. Neither the Grantee, nor the Grantee’s
beneficiary or estate, shall have any further rights with regard to a Stock Unit once the shares of Stock represented by such Stock Unit have been delivered in accordance with this Section 10.8. 

 

	11.	TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS 

 

	 	11.1.	Unrestricted Stock Awards. 

The Committee may, in its sole discretion, grant (or sell at the par value of a share of Stock or at such other higher purchase price as
shall be determined by the Committee) an Award to any Grantee pursuant to which such Grantee may receive shares of Stock free of any restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards may be granted or
sold to any Grantee as provided in the immediately preceding sentence in respect of past or, if so provided in the related Award Agreement or a separate agreement, the promise by the Grantee to perform future Service to the Company or an Affiliate
or other valid consideration, or in lieu of, or in addition to, any cash compensation due to such Grantee. 

  
 20 

	 	11.2.	Other Equity-Based Awards. 

The Committee may, in its sole discretion, grant awards in the form of Other Equity-Based Awards, as deemed by the Committee to be
consistent with the purposes of the Plan. Awards granted pursuant to this Section 11.2 may be granted with vesting, value and/or payment contingent upon the achievement of one or more performance goals. The Committee shall determine the
terms and conditions of Other Equity-Based Awards at the Grant Date or thereafter. Unless the Committee otherwise provides in an Award Agreement, in another agreement with the Grantee, or otherwise in writing after such Award Agreement is issued,
upon the termination of a Grantee’s Service, any Other Equity-Based Awards held by such Grantee that have not vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited.
Upon forfeiture of any Other Equity-Based Award, the Grantee thereof shall have no further rights with respect to such Other Equity-Based Award. 
  

	12.	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK 

  

	 	12.1.	General Rule. 

 Payment of
the Option Price for the shares of Stock purchased pursuant to the exercise of an Option or the purchase price, if any, for shares of Restricted Stock shall be made in cash or in cash equivalents acceptable to the Company. 

 

	 	12.2.	Surrender of Shares of Stock. 

 To the extent that the applicable Award Agreement so provides, payment of the Option Price for shares of Stock purchased pursuant to the exercise of an Option or the purchase price, if any, for Restricted
Stock may be made all or in part through the tender or attestation to the Company of shares of Stock, which shall be valued, for purposes of determining the extent to which such Option Price or purchase price has been paid thereby, at their Fair
Market Value on the date of such tender or attestation. 
  

	 	12.3.	Cashless Exercise. 

 To
the extent permitted by Applicable Laws and to the extent the Award Agreement so provides, payment of the Option Price for shares of Stock purchased pursuant to the exercise of an Option may be made all or in part by delivery (on a form acceptable
to the Committee) of an irrevocable direction to a licensed securities broker acceptable to the Company to sell shares of Stock and to deliver all or part of the proceeds of such sale to the Company in payment of such Option Price and any
withholding taxes described in Section 18.3, or, with the consent of the Company, by issuing the number of shares of Stock equal in value to the difference between such Option Price and the Fair Market Value of the shares of Stock
subject to the portion of such Option being exercised. 

  
 21 

	 	12.4.	Other Forms of Payment. 

To the extent the Award Agreement so provides and/or unless otherwise specified in an Award Agreement, payment of the Option Price for
shares of Stock purchased pursuant to exercise of an Option or the purchase price, if any, for Restricted Stock may be made in any other form that is consistent with Applicable Laws, including (a) Service to the Company or any Affiliate and
(b) by withholding shares of Stock that would otherwise vest or be issuable in an amount equal to the Option Price or purchase price and the required tax withholding amount. 

 

	13.	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS 

  

	 	13.1.	Dividend Equivalent Rights. 

 A Dividend Equivalent Right is an Award entitling the recipient thereof to receive credits based on cash distributions that would have been paid on the shares of Stock specified in such Dividend
Equivalent Right (or other Award to which such Dividend Equivalent Right relates) if such shares of Stock had been issued to and held by the recipient of such Dividend Equivalent Right as of the record date. A Dividend Equivalent Right may be
granted hereunder to any Grantee, provided that no Dividend Equivalent Rights may be granted in connection with, or related to, an Award of Options or SARs. The terms and conditions of Dividend Equivalent Rights shall be
specified in the Award Agreement therefor. Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid currently (with or without being subject to forfeiture or a repayment obligation) or may be deemed to be reinvested in
additional shares of Stock, which may thereafter accrue additional Dividend Equivalent Rights (with or without being subject to forfeiture or a repayment obligation). Any such reinvestment shall be at the Fair Market Value thereof on the date of
such reinvestment. Dividend Equivalent Rights may be settled in cash or shares of Stock or a combination thereof, in a single installment or in multiple installments, all as determined in the sole discretion of the Committee. A Dividend Equivalent
Right granted as a component of another Award may provide that such Dividend Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall
expire or be forfeited or annulled under the same conditions as such other Award. A Dividend Equivalent Right granted as a component of another Award also may contain terms and conditions which are different from the terms and conditions of such
other Award, provided that Dividend Equivalent Rights credited pursuant to a Dividend Equivalent Right granted as a component of another Award which vests or is earned based upon the achievement of performance goals shall not
vest unless such performance goals for such underlying Award are achieved, and if such performance goals are not achieved, the Grantee of such Dividend Equivalent Rights shall promptly forfeit and repay to the Company payments made in connection
with such Dividend Equivalent Rights. 
  

	 	13.2.	Termination of Service. 

Unless the Committee otherwise provides in an Award Agreement, in another agreement with the Grantee, or otherwise in writing after such
Award Agreement is issued, a Grantee’s rights in all Dividend Equivalent Rights shall automatically terminate upon the Grantee’s termination of Service for any reason. 

  
 22 

	14.	TERMS AND CONDITIONS OF PERFORMANCE-BASED AWARDS 

  

	 	14.1.	Grant of Performance-Based Awards. 

 Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Performance-Based Awards to a Plan participant in such amounts and upon such terms as the
Committee shall determine. 
  

	 	14.2.	Structure of Performance-Based Awards. 

 Each grant of a Performance-Based Award shall have an actual or target number of shares of Stock or initial value that is established by the Committee at the time of grant. The Committee shall set
performance goals in its discretion which, depending on the extent to which they are achieved, shall determine the number of shares of Stock or value subject to a Performance-Based Award that will be paid out to the Grantee thereof as described in
Section 14.6.3. 
  

	 	14.3.	Earning of Performance-Based Awards. 

 Subject to the terms of the Plan, in particular Section 14.6.3, after the applicable Performance Period has ended, the Grantee of Performance-Based Awards shall be entitled to receive a payout
on the number of the Performance-Based Awards or value earned by such Grantee over such Performance Period as determined by the Committee. 
  

	 	14.4.	Form and Timing of Payment of Performance-Based Awards. 

 Payment of earned Performance-Based Awards shall be made in the manner described in the applicable Award Agreement as determined by the Committee. Subject to the terms of the Plan, the Committee, in its
sole discretion, may pay earned Performance-Based Awards in the form of cash or shares of Stock (or a combination thereof) equal to the value of such earned Performance-Based Awards and shall pay the Awards that have been earned at the close of the
applicable Performance Period, or as soon as reasonably practicable after the Committee has determined that the performance goal or goals relating thereto have been achieved; provided that, unless specifically provided in the Award Agreement
for such Awards, such payment shall occur no later than the 15th day of the third month following the end of the calendar year in which such Performance Period ends. Any shares of Stock paid out under such Performance-Based Awards may be granted
subject to any restrictions deemed appropriate by the Committee. The determination of the Committee with respect to the form of payout of such Performance-Based Awards shall be set forth in the Award Agreement therefor. 

 

	 	14.5.	Performance Conditions. 

The right of a Grantee to exercise or receive a grant or settlement of any Performance-Based Award, and the timing thereof, may be subject
to such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions. If and to the extent required
under Code Section 162(m), any power or authority relating to an Award intended to qualify under Code Section 162(m) shall be exercised by the Committee and not by the Board. 

  
 23 

	 	14.6.	Performance-Based Awards Granted to Designated Covered Employees. 

 If and to the extent that the Committee determines that a Performance-Based Award to be granted to a Grantee should constitute “qualified performance-based compensation” for purposes of Code
Section 162(m), the grant, exercise and/or settlement of such Award shall be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 14.6. 

 

	 	14.6.1.	Performance Goals Generally. 

 The performance goals for Performance-Based Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to each of such criteria, as specified by the
Committee consistent with this Section 14.6. Performance goals shall be objective and shall otherwise meet the requirements of Code Section 162(m), including the requirement that the level or levels of performance targeted by the
Committee result in the achievement of performance goals being “substantially uncertain.” The Committee may determine that such Awards shall be granted, exercised and/or settled upon achievement of any single performance goal or of two
(2) or more performance goals. Performance goals may differ for Awards granted to any one Grantee or to different Grantees. 
  

	 	14.6.2.	Timing For Establishing Performance Goals. 

 Performance goals for any Performance-Based Award shall be established not later than the earlier of (a) 90 days after the beginning of any Performance Period applicable to such Award, and
(b) the date on which twenty-five percent (25%) of any Performance Period applicable to such Award has expired, or at such other date as may be required or permitted for compensation payable to a Covered Employee to constitute
Performance-Based Compensation. 
  

	 	14.6.3.	Payment of Awards; Other Terms. 

 Payment of Performance-Based Awards shall be in cash, shares of Stock or other Awards, including an Award that is subject to additional Service-based vesting, as determined in the sole discretion of the
Committee. The Committee may, in its sole discretion, reduce the amount of a payment otherwise to be made in connection with such Awards. The Committee shall specify the circumstances in which such Performance-Based Awards shall be paid or forfeited
in the event of termination of Service by the Grantee prior to the end of a Performance Period or settlement of such Awards. In the event payment of the Performance-Based Award is made in the form of another Award subject to Service-based vesting,
the Committee shall specify the circumstances in which the payment Award will be paid or forfeited in the event of a termination of Service. 

  
 24 

	 	14.6.4.	Performance Measures. 

The performance goals upon which the payment or vesting of a Performance-Based Award to a Covered Employee that is intended to qualify as
Performance-Based Compensation may be conditioned shall be limited to the following Performance Measures, with or without adjustment: 
  

	 	(1)	funds available for distribution (FAD); 

  

	 	(2)	total shareholder return or stock price; 

  

	 	(3)	net asset value (NAV); 

  

	 	(4)	revenue, revenue growth, or rate of revenue growth or net operating income; 

 

	 	(5)	funds from operations (FFO); 

  

	 	(6)	intrinsic business value; 

  

	 	(7)	implementation or completion of critical or strategic projects, acquisitions, dispositions, joint ventures, development or processes; 

 

	 	(8)	return on invested capital; 

  

	 	(9)	rental income, transaction costs, occupancy or geographic business expansion; 

 

	 	(10)	customer or employee satisfaction or human resources management; 

  

	 	(11)	operations, cost targets, reductions and savings, productivity and efficiencies, legal matters or information technology, 

 

	 	(12)	compliance, financial controls and savings, investor relations, or staffing; and 

 

	 	(13)	any combination of the foregoing criteria. 

 Performance under any of the foregoing Performance Measures (a) may be used to measure the performance of (i) the Company and its Subsidiaries and other Affiliates as a whole, (ii) the
Company, any Subsidiary, and/or any other Affiliate or any combination thereof, or (iii) any one or more business units of the Company, any Subsidiary, and/or any other Affiliate, as the Committee, in its sole discretion, deems appropriate and
(b) may be compared to the performance of one or more other companies or one or more published or special indices designated or approved by the Committee for such comparison, as the Committee, in its sole discretion, deems appropriate. In
addition, the Committee, in its sole discretion, may select performance under the Performance Measure specified in clause (b) above for comparison to performance under one or more stock market indices designated or approved by the Committee.
The Committee also shall have the authority to provide for accelerated vesting of any Performance-Based Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Section 14. 

 

	 	14.6.5.	Evaluation of Performance. 

The Committee may provide in any Performance-Based Award that any evaluation of performance may include or exclude any of the following
events that occur during a Performance Period: (a) asset write-downs; (b) litigation or claims, judgments or settlements; (c) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported
results; (d) any reorganization or restructuring events or programs; (e) extraordinary, non-core, non-operating or non-recurring items; (f) acquisitions or divestitures; and (g) foreign exchange gains and losses. To the extent
such inclusions or exclusions affect Awards to Covered Employees that are intended to qualify as Performance-Based Compensation, such inclusions or exclusions shall be prescribed in a form that meets the requirements of Code Section 162(m) for
deductibility. 

  
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	 	14.6.6.	Adjustment of Performance-Based Compensation. 

 The Committee shall have the sole discretion to adjust Awards that are intended to qualify as Performance-Based Compensation, either on a formula or discretionary basis, or on any combination thereof, as
the Committee determines consistent with the requirements of Code Section 162(m) for deductibility. 
  

	 	14.6.7.	Committee Discretion. 

 In
the event that Applicable Laws change to permit Committee discretion to alter the governing Performance Measures without obtaining stockholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining
stockholder approval, provided that the exercise of such discretion shall not be inconsistent with the requirements of Code Section 162(m). In addition, in the event that the Committee determines that it is advisable to grant Awards that
shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base vesting on Performance Measures other than those set forth in
Section 14.6.4. 
  

	 	14.7.	Status of Awards Under Code Section 162(m). 

 It is the intent of the Company that Performance-Based Awards under Section 14.6 granted to persons who are designated by the Committee as likely to be Covered Employees within the meaning of
Code Section 162(m) and the regulations promulgated thereunder shall, if so designated by the Committee, constitute “qualified performance-based compensation” within the meaning of Code Section 162(m). Accordingly, the terms of
Section 14.6, including the definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent with Code Section 162(m). If any provision of the Plan or any agreement relating to any such
Performance-Based Award does not comply or is inconsistent with the requirements of Code Section 162(m), such provision shall be construed or deemed amended to the extent necessary to conform to such requirements. 

 

	15.	PARACHUTE LIMITATIONS 

 If
any Grantee is a “disqualified individual,” as defined in Code Section 280G(c), then, notwithstanding any other provision of the Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by such
Grantee with the Company or an Affiliate, except an agreement, contract, or understanding that expressly addresses Code Section 280G or Code Section 4999 (an “Other Agreement”), and notwithstanding any formal or informal
plan or other arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or beneficiaries of which the Grantee is a member), whether or not such compensation is deferred, is in cash, or
is in the form of a benefit to or for the Grantee (a “Benefit Arrangement”), any right of the Grantee to any exercise, vesting, payment or benefit under the Plan shall be reduced or eliminated: 

  
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 (a) to the extent that such right to exercise, vesting, payment, or benefit, taking into
account all other rights, payments, or benefits to or for the Grantee under the Plan, all Other Agreements, and all Benefit Arrangements, would cause any exercise, vesting, payment, or benefit to the Grantee under the Plan to be considered a
“parachute payment” within the meaning of Code Section 280G(b)(2) as then in effect (a “Parachute Payment”); and 
 (b) if, as a result of receiving such Parachute Payment, the aggregate after-tax amounts received by the Grantee from the Company under the Plan, all Other Agreements, and all Benefit Arrangements would
be less than the maximum after-tax amount that could be received by the Grantee without causing any such payment or benefit to be considered a Parachute Payment. 
 The Company shall accomplish such reduction by first reducing or eliminating any cash payments (with the payments to be made furthest in the future being reduced first), then by reducing or eliminating
any accelerated vesting of Performance-Based Awards, then by reducing or eliminating any accelerated vesting of Options or SARs, then by reducing or eliminating any accelerated vesting of Restricted Stock or Stock Units, then by reducing or
eliminating any other remaining Parachute Payments. 
  

	16.	REQUIREMENTS OF LAW 

  

	 	16.1.	General. 

 The Company
shall not be required to offer, sell or issue any shares of Stock under any Award, whether pursuant to the exercise of an Option or SAR or otherwise, if the offer, sale or issuance of such shares of Stock would constitute a violation by the Grantee,
the Company or an Affiliate, or any other person, of any provision of Applicable Laws, including any federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or
qualification of any shares of Stock subject to an Award upon any securities exchange or under any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the offering, issuance, sale or purchase of shares of
Stock in connection with any Award, no shares of Stock may be offered, issued or sold to the Grantee or any other person under such Award, whether pursuant to the exercise of an Option or SAR or otherwise, unless such listing, registration or
qualification shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of such Award. Without limiting the generality of the foregoing,
upon the exercise of any Option or any SAR that may be settled in shares of Stock or the delivery of any shares of Stock underlying an Award, unless a registration statement under the Securities Act is in effect with respect to the shares of Stock
subject to such Award, the Company shall not be required to offer, sell or issue such shares of Stock unless the Committee shall have received evidence satisfactory to it that the Grantee or any other person exercising such Option or SAR or
accepting delivery of such shares may acquire such shares of Stock pursuant to an exemption from registration under the Securities Act. Any determination in this connection by the Committee shall be final, binding, and conclusive. The Company may
register, but shall in no event be obligated to register, any shares of Stock or other securities issuable pursuant to the Plan pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the
exercise of an Option or a SAR or the issuance of shares of Stock or other securities issuable pursuant to the Plan or any Award to comply with any Applicable Laws. As to any jurisdiction that expressly imposes the requirement that an Option or SAR
that may be settled in shares of Stock shall not be exercisable until the shares of Stock subject to such Option or SAR are registered under the securities laws thereof or are exempt from such registration, the exercise of such Option or SAR under
circumstances in which the laws of such jurisdiction apply shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption. 

  
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	 	16.2.	Rule 16b-3. 

 During any
time when the Company has a class of equity security registered under Section 12 of the Exchange Act, it is the intention of the Company that Awards pursuant to the Plan and the exercise of Options and SARs granted hereunder that would
otherwise be subject to Section 16(b) of the Exchange Act shall qualify for the exemption provided by Rule 16b-3 under the Exchange Act. To the extent that any provision of the Plan or action by the Committee does not comply with the
requirements of such Rule 16b-3, such provision or action shall be deemed inoperative with respect to such Awards to the extent permitted by Applicable Laws and deemed advisable by the Committee, and shall not affect the validity of the Plan. In the
event that such Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify the Plan in any respect necessary or advisable in its judgment to satisfy the requirements of, or to permit the Company to avail itself of the
benefits of, the revised exemption or its replacement. 
  

	17.	EFFECT OF CHANGES IN CAPITALIZATION 

  

	 	17.1.	Changes in Stock. 

 If the
number of outstanding shares of Stock is increased or decreased or the shares of Stock are changed into or exchanged for a different number of shares or kind of capital stock or other securities of the Company on account of any recapitalization,
reclassification, stock split, reverse stock split, spin-off, combination of stock, exchange of stock, stock dividend or other distribution payable in capital stock, or other increase or decrease in shares of Stock effected without receipt of
consideration by the Company occurring after the Effective Date, the number and kinds of shares of stock for which grants of Options and other Awards may be made under the Plan, including the share limits set forth in Section 6.2, shall
be adjusted proportionately and accordingly by the Committee. In addition, the number and kind of shares of stock for which Awards are outstanding shall be adjusted proportionately and accordingly by the Committee so that the proportionate interest
of the Grantee therein immediately following such event shall, to the extent practicable, be the same as immediately before such event. Any such adjustment in outstanding Options or SARs shall not change the aggregate Option Price or SAR Price
payable with respect to shares that are subject to the unexercised portion of such outstanding Options or SARs, as applicable, but shall include a corresponding proportionate adjustment in the per share Option Price or SAR Price, as the case may be.
The conversion of any convertible securities of the Company shall not be treated as an increase in shares effected without receipt of consideration. Notwithstanding the foregoing, in the event of any distribution to the Company’s shareholders
of securities of any other entity or other assets (including an extraordinary dividend, but excluding a non-extraordinary dividend, declared and paid by the Company) without receipt of consideration by the Company, the Board or the Committee
constituted pursuant to Section 3.1.2 shall, in such manner as the Board or the Committee deems appropriate, adjust (a) the number and kind of shares of stock subject to outstanding Awards and/or (b) the aggregate and per share
Option Price of outstanding Options and the aggregate and per share SAR Price of outstanding SARs as required to reflect such distribution. 

  
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	 	17.2.	Reorganization in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control. 

Subject to Section 17.3, if the Company shall be the surviving entity in any reorganization, merger or consolidation of the
Company with one or more other entities which does not constitute a Change in Control, any Option or SAR theretofore granted pursuant to the Plan shall pertain to and apply to the securities to which a holder of the number of shares of Stock subject
to such Option or SAR would have been entitled immediately following such reorganization, merger or consolidation, with a corresponding proportionate adjustment of the per share Option Price or SAR Price so that the aggregate Option Price or SAR
Price thereafter shall be the same as the aggregate Option Price or SAR Price of the shares of Stock remaining subject to the Option or SAR as in effect immediately prior to such reorganization, merger, or consolidation. Subject to any contrary
language in an Award Agreement or in another agreement with the Grantee, or otherwise set forth in writing, any restrictions applicable to such Award shall apply as well to any replacement shares received by the Grantee as a result of such
reorganization, merger or consolidation. In the event of any reorganization, merger or consolidation of the Company referred to in this Section 17.2, Performance-Based Awards shall be adjusted (including any adjustment to the Performance
Measures applicable to such Awards deemed appropriate by the Committee) so as to apply to the securities that a holder of the number of shares of Stock subject to the Performance-Based Awards would have been entitled to receive immediately following
such reorganization, merger or consolidation. 
  

	 	17.3.	Change in Control in which Awards are not Assumed. 

 Except as otherwise provided in the applicable Award Agreement or in another agreement with the Grantee, or as otherwise set forth in writing, upon the occurrence of a Change in Control in which
outstanding Options, SARs, Restricted Stock, Stock Units, Dividend Equivalent Rights or Other Equity-Based Awards are not being assumed or continued, the following provisions shall apply to such Award, to the extent not assumed or continued:

 (a) in each case, with the exception of Performance-Based Awards, 

(i) all outstanding Restricted Stock shall be deemed to have vested, all Stock Units shall be deemed to have vested and
the shares of Stock subject thereto shall be delivered, and all Dividend Equivalent Rights shall be deemed to have vested and the shares of Stock subject thereto shall be delivered, immediately prior to the occurrence of such Change in Control, and
fifteen (15) days prior to the scheduled consummation of such Change in Control, all Options and SARs outstanding hereunder shall become immediately exercisable and shall remain exercisable for a period of fifteen (15) days; or 

  
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 (ii) the Committee may elect, in its sole discretion, to cancel any
outstanding Awards of Options, Restricted Stock, Stock Units, Dividend Equivalent Rights and/or SARs and pay or deliver, or cause to be paid or delivered, to the holder thereof an amount in cash or securities having a value (as determined by the
Committee acting in good faith), in the case of Restricted Stock, Stock Units, and Dividend Equivalent Rights (for shares of Stock subject thereto) equal to the formula or fixed price per share paid to holders of shares of Stock pursuant to such
Change in Control and, in the case of Options or SARs, equal to the product of the number of shares of Stock subject to such Options or SARs (the “Award Stock”) multiplied by the amount, if any, by which (x) the formula or
fixed price per share paid to holders of shares of Stock pursuant to such transaction exceeds (y) the Option Price or SAR Price applicable to such Award Stock. 
 (b) No Performance-Based Award shall vest, partially or fully, in connection with a Change in Control unless the performance conditions for such award has been satisfied. 

(c) Other Equity-Based Awards shall be governed by the terms of the applicable Award Agreement. 

With respect to the Company’s establishment of an exercise window, (A) any exercise of an Option or SAR during the fifteen
(15)-day period referred to above shall be conditioned upon the consummation of the applicable Change in Control and shall be effective only immediately before the consummation thereof, and (B) upon consummation of any Change in Control, the
Plan and all outstanding but unexercised Options and SARs shall terminate. The Committee shall send notice of an event that shall result in such a termination to all natural persons and entities who hold Options and SARs not later than the time at
which the Company gives notice thereof to its shareholders. Notwithstanding the foregoing, a majority of the Board may determine that a Change in Control shall not trigger application of the provisions of this Section 17.3. 

 

	 	17.4.	Change in Control in which Awards are Assumed. 

 Except as otherwise provided in the applicable Award Agreement or in another agreement with the Grantee, or as otherwise set forth in writing, upon the occurrence of a Change in Control in which
outstanding Options, SARs, Restricted Stock, Stock Units, Dividend Equivalent Rights or Other-Equity Based Awards are being assumed or continued, the following provisions shall apply to such Award, to the extent assumed or continued: 

  
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 The Plan and the Options, SARs, Restricted Stock, Stock Units, Dividend Equivalent Rights
and Other Equity-Based Awards granted under the Plan shall continue in the manner and under the terms so provided in the event of any Change in Control to the extent that provision is made in writing in connection with such Change in Control for the
assumption or continuation of such Options, SARs, Restricted Stock, Stock Units, Dividend Equivalent Rights and Other Equity-Based Awards for the substitution for such Options, SARs, Restricted Stock, Stock Units and Dividend Equivalent Rights of
new common stock options, stock appreciation rights, restricted stock, common restricted stock units, dividend equivalent rights and other equity-based awards relating to the stock of a successor entity, or a parent or subsidiary thereof, with
appropriate adjustments as to the number of shares (disregarding any consideration that is not common stock) and option and stock appreciation rights exercise prices. In the event an Award is assumed, continued or substituted upon the consummation
of any Change in Control and the employment of such Grantee with the Company or any Affiliate is involuntarily terminated without Cause within one year following the consummation of such Change in Control, such Award shall be fully vested and may be
exercised in full, to the extent applicable, beginning on the date of such termination and for the one-year period immediately following such termination or for such longer period as the Committee shall determine. 

 

	 	17.5.	Adjustments. 

 Adjustments
under this Section 17 related to shares of Stock or other securities of the Company shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive. The Committee shall determine the effect of a
Change in Control upon Awards other than Options, SARs, Stock Units and Restricted Stock, and such effect shall be set forth in the applicable Award Agreements, in another agreement with the Grantee, or otherwise in writing. No fractional shares or
other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share. The Committee may provide in the applicable
Award Agreement at the time of grant, in another agreement with the Grantee, or otherwise in writing at any time thereafter with the consent of the Grantee, for different provisions to apply to an Award in place of those provided in
Sections 17.1, 17.2, 17.3 and 17.4. This Section 17 shall not limit the Committee’s ability to provide for alternative treatment of Awards outstanding under the Plan in the event of a change in control event that
is not a Change in Control. 
  

	 	17.6.	No Limitations on Company. 

The making of Awards pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or assets (including all or any part of the business or
assets of any Subsidiary or other Affiliate) or engage in any other transaction or activity. 
  

	18.	GENERAL PROVISIONS 

  

	 	18.1.	Disclaimer of Rights. 

 No
provision in the Plan or in any Award or Award Agreement shall be construed to confer upon any individual the right to remain in the employ or Service of the Company or an Affiliate, or to interfere in any way with any contractual or other right or
authority of the Company or an Affiliate either to increase or decrease the compensation or other payments to any natural person or entity at any time, or to terminate any employment or other relationship between any natural person or entity and the
Company or an Affiliate. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, in another agreement with the Grantee, or otherwise in writing, no Award granted under
the Plan shall be affected by any change of duties or position of the Grantee thereof, so long as such Grantee continues to provide Service. The obligation of the Company to pay any benefits pursuant to the Plan shall be interpreted as a contractual
obligation to pay only those amounts provided herein, in the manner and under the conditions prescribed herein. The Plan and Awards shall in no way be interpreted to require the Company to transfer any amounts to a third party trustee or otherwise
hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan. 

  
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	 	18.2.	Nonexclusivity of the Plan. 

 Neither the adoption of the Plan nor the submission of the Plan to the shareholders of the Company for approval shall be construed as creating any limitations upon the right and authority of the Board to
adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual or particular individuals) as the Board in its discretion
determines desirable. 
  

	 	18.3.	Withholding Taxes. 

 The
Company or an Affiliate, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any federal, state, or local taxes of any kind required by law to be withheld with respect to the vesting of or other
lapse of restrictions applicable to an Award or upon the issuance of any shares of Stock upon the exercise of an Option or pursuant to any other Award. At the time of such vesting, lapse, or exercise, the Grantee shall pay in cash to the Company or
an Affiliate, as the case may be, any amount that the Company or such Affiliate may reasonably determine to be necessary to satisfy such withholding obligation; provided that if there is a same-day sale of shares of Stock subject to an Award,
the Grantee shall pay such withholding obligation on the day on which such same-day sale is completed. Subject to the prior approval of the Company or an Affiliate, which may be withheld by the Company or such Affiliate, as the case may be, in its
sole discretion, the Grantee may elect to satisfy such withholding obligation, in whole or in part, (a) by causing the Company or such Affiliate to withhold shares of Stock otherwise issuable to the Grantee or (b) by delivering to the
Company or such Affiliate shares of Stock already owned by the Grantee. The shares of Stock so withheld or delivered shall have an aggregate Fair Market Value equal to such withholding obligation. The Fair Market Value of the shares of Stock used to
satisfy such withholding obligation shall be determined by the Company or such Affiliate as of the date on which the amount of tax to be withheld is to be determined. A Grantee who has made an election pursuant to this Section 18.3 may
satisfy such Grantee’s withholding obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. The maximum number of shares of Stock that may be withheld from any
Award to satisfy any federal, state or local tax withholding requirements upon the exercise, vesting, or lapse of restrictions applicable to any Award or payment of shares of Stock pursuant to such Award, as applicable, may not exceed such number of
shares of Stock having a Fair Market Value equal to the minimum statutory amount required by the Company or the applicable Affiliate to be withheld and paid to any such federal, state or local taxing authority with respect to such exercise, vesting,
lapse of restrictions or payment of shares of Stock. Notwithstanding Section 2.20 or this Section 18.3, for purposes of determining taxable income and the amount of the related tax withholding obligation pursuant to this
Section 18.3, for any shares of Stock subject to an Award that are sold by or on behalf of a Grantee on the same date on which such shares may first be sold pursuant to the terms of the related Award Agreement, the Fair Market Value of
such shares shall be the sale price of such shares on such date (or if sales of such shares are effectuated at more than one sale price, the weighted average sale price of such shares on such date), so long as such Grantee has provided the Company,
or its designee or agent, with advance written notice of such sale. In such case, the percentage of shares of Stock withheld shall equal the applicable withholding rate. 

  
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	 	18.4.	Captions. 

 The use of
captions in the Plan or any Award Agreement is for convenience of reference only and shall not affect the meaning of any provision of the Plan or such Award Agreement. 
  

	 	18.5.	Construction. 

 Unless the
context otherwise requires, all references in the Plan to “including” shall mean “including without limitation.” 
  

	 	18.6.	Other Provisions. 

 Each
Award granted under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Committee, in its sole discretion. 
  

	 	18.7.	Number and Gender. 

 With
respect to words used in the Plan, the singular form shall include the plural form and the masculine gender shall include the feminine gender, as the context requires. 
  

	 	18.8.	Severability. 

 If any
provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms,
and all provisions shall remain enforceable in any other jurisdiction. 
  

	 	18.9.	Governing Law. 

 The
validity and construction of the Plan and the instruments evidencing the Awards hereunder shall be governed by, and construed and interpreted in accordance with, the laws of the State of California, other than any conflicts or choice of law rule or
principle that might otherwise refer construction or interpretation of the Plan and the instruments evidencing the Awards granted hereunder to the substantive laws of any other jurisdiction. 

  
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	 	18.10.	Section 409A of the Code. 

 The Company intends to comply with Code Section 409A, or an exemption to Code Section 409A, with regard to Awards hereunder that constitute nonqualified deferred compensation within the meaning
of Code Section 409A. To the extent that the Company determines that a Grantee would be subject to the additional twenty percent (20%) tax imposed on certain nonqualified deferred compensation plans pursuant to Code Section 409A as a
result of any provision of any Award granted under the Plan, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional tax. The nature of any such amendment shall be determined by the Committee.

 * * * 

  
 34

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