Document:

Toys "R" Us, Inc. 2010 Incentive Plan (the "2010 Incentive Plan").

 EXHIBIT 10.26 

 
  
  

 
  
 TOYS “R” US, INC. 
 2010 INCENTIVE PLAN 

 
  
  

 

 TOYS “R” US, INC. 

2010 INCENTIVE PLAN 
  

							
		
	 ARTICLE 1 PURPOSE
	  	 	1	  
			
	 1.1  
	  	General	  	 	1	  
		
	 ARTICLE 2 DEFINITIONS
	  	 	1	  
			
	 2.1  
	  	Definitions	  	 	1	  
		
	 ARTICLE 3 EFFECTIVE TERM OF PLAN
	  	 	7	  
			
	 3.1  
	  	Effective Date	  	 	7	  
			
	 3.2  
	  	Term of Plan	  	 	7	  
		
	 ARTICLE 4 ADMINISTRATION
	  	 	7	  
			
	 4.1  
	  	Committee	  	 	7	  
			
	 4.2  
	  	Actions and Interpretations by the Committee	  	 	8	  
			
	 4.3  
	  	Authority of Committee	  	 	8	  
			
	 4.4  
	  	Delegation	  	 	9	  
			
	 4.5  
	  	Indemnification	  	 	9	  
		
	 ARTICLE 5 SHARES SUBJECT TO THE PLAN
	  	 	9	  
			
	 5.1  
	  	Number of Shares	  	 	9	  
			
	 5.2  
	  	Share Counting	  	 	9	  
			
	 5.3  
	  	Stock Distributed	  	 	10	  
		
	 ARTICLE 6 ELIGIBILITY
	  	 	10	  
			
	 6.1  
	  	General	  	 	10	  
		
	 ARTICLE 7 STOCK OPTIONS
	  	 	10	  
			
	 7.1  
	  	General	  	 	10	  
			
	 7.2  
	  	Incentive Stock Options	  	 	11	  
		
	 ARTICLE 8 STOCK APPRECIATION RIGHTS
	  	 	11	  
			
	 8.1  
	  	Grant of Stock Appreciation Rights	  	 	11	  
		
	 ARTICLE 9 RESTRICTED STOCK, RESTRICTED STOCK UNITS AND DEFERRED STOCK UNITS
	  	 	12	  
			
	 9.1  
	  	Grant of Restricted Stock, Restricted Stock Units and Deferred Stock Units	  	 	12	  
			
	 9.2  
	  	Issuance and Restrictions	  	 	12	  
			
	 9.3  
	  	Dividends on Restricted Stock	  	 	13	  
			
	 9.4  
	  	Forfeiture	  	 	13	  
			
	 9.5  
	  	Delivery of Restricted Stock	  	 	13	  

							
		
	 ARTICLE 10 PERFORMANCE AWARDS
	  	 	13	  
			
	 10.1  
	  	Grant of Performance Awards	  	 	13	  
			
	 10.2  
	  	Performance Goals	  	 	14	  
		
	 ARTICLE 11 DIVIDEND EQUIVALENTS
	  	 	14	  
			
	 11.1  
	  	Grant of Dividend Equivalents	  	 	14	  
		
	 ARTICLE 12 STOCK OR OTHER STOCK-BASED AWARDS
	  	 	14	  
			
	 12.1  
	  	Grant of Stock or Other Stock-Based Awards	  	 	14	  
		
	 ARTICLE 13 PROVISIONS APPLICABLE TO AWARDS
	  	 	15	  
			
	 13.1  
	  	Award Certificates	  	 	15	  
			
	 13.2  
	  	Form of Payment of Awards	  	 	15	  
			
	 13.3  
	  	Limits on Transfer	  	 	15	  
			
	 13.4  
	  	Beneficiaries	  	 	15	  
			
	 13.5  
	  	Stock Trading Restrictions	  	 	15	  
			
	 13.6  
	  	Acceleration upon Death or Disability	  	 	16	  
			
	 13.7  
	  	Effect of a Change in Control	  	 	16	  
			
	 13.8  
	  	Acceleration for Other Reasons	  	 	16	  
			
	 13.9  
	  	Forfeiture Events	  	 	17	  
			
	 13.10
	  	Substitute Awards	  	 	17	  
		
	 ARTICLE 14 CHANGES IN CAPITAL STRUCTURE
	  	 	17	  
			
	 14.1  
	  	Mandatory Adjustments	  	 	17	  
			
	 14.2  
	  	Discretionary Adjustments	  	 	18	  
			
	 14.3  
	  	General	  	 	18	  
		
	 ARTICLE 15 AMENDMENT, MODIFICATION AND TERMINATION
	  	 	18	  
			
	 15.1  
	  	Amendment, Modification and Termination	  	 	18	  
			
	 15.2  
	  	Awards Previously Granted	  	 	18	  
			
	 15.3  
	  	Compliance Amendments	  	 	19	  
		
	 ARTICLE 16 GENERAL PROVISIONS
	  	 	19	  
			
	 16.1  
	  	Rights of Participants	  	 	19	  
			
	 16.2  
	  	Withholding	  	 	20	  
			
	 16.3  
	  	Special Provisions Related to Section 409A of the Code	  	 	20	  
			
	 16.4  
	  	Unfunded Status of Awards	  	 	21	  
			
	 16.5  
	  	Relationship to Other Benefits	  	 	21	  
			
	 16.6  
	  	Expenses	  	 	22	  
			
	 16.7  
	  	Titles and Headings	  	 	22	  

							
			
	 16.8  
	  	Gender and Number	  	 	22	  
			
	 16.9  
	  	Fractional Shares	  	 	22	  
			
	 16.10
	  	Government and Other Regulations	  	 	22	  
			
	 16.11
	  	Governing Law	  	 	23	  
			
	 16.12
	  	Severability	  	 	23	  
			
	 16.13
	  	No Limitations on Rights of Company	  	 	23	  
			
	 16.14
	  	Indemnification	  	 	23	  

 TOYS “R” US, INC. 

2010 INCENTIVE PLAN 
 ARTICLE 1 
 PURPOSE 

1.1. GENERAL. The purpose of the Toys “R” Us, Inc. 2010 Incentive Plan (the “Plan”) is to
promote the success, and enhance the value, of Toys “R” Us, Inc. (the “Company”), by linking the personal interests of employees, officers, directors and consultants of the Company or any Affiliate (as defined below) to those of
Company shareholders and by providing such persons with an incentive for outstanding performance. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of employees, officers,
directors and consultants upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent. Accordingly, the Plan permits the grant of incentive awards from time to time to selected
employees, officers, directors and consultants of the Company and its Affiliates. 
 ARTICLE 2 

DEFINITIONS 
 2.1. DEFINITIONS. When a word or phrase appears in this Plan with the initial letter capitalized, and the word or phrase does not commence a sentence, the word or phrase shall generally be given
the meaning ascribed to it in this Section or in Section 1.1 unless a clearly different meaning is required by the context. The following words and phrases shall have the following meanings: 

(a) “Affiliate” means (i) any Subsidiary or Parent, or (ii) an entity that directly
or through one or more intermediaries controls, is controlled by or is under common control with, the Company, as determined by the Committee. 
 (b) “Award” means an award of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Deferred Stock Units, Performance Awards, Dividend Equivalents, Other Stock-Based
Awards, or any other right or interest relating to Stock or cash, granted to a Participant under the Plan. 
 (c) “Award Certificate” means a written document, in such form as the Committee prescribes from time to time, setting forth the terms and conditions of an Award. Award Certificates may be in the
form of individual award agreements or certificates or a program document describing the terms and provisions of an Award or series of Awards under the Plan. The Committee may provide for the use of electronic, internet or other non-paper Award
Certificates, and the use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder by a Participant. 
 (d) “Beneficial Owner” shall have the meaning given such term in Rule 13d-3 of the General Rules and Regulations under the 1934 Act. 

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

  
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 (f) “Cause” as a reason for a Participant’s
termination of employment shall have the meaning assigned such term in the employment, severance or similar agreement, if any, between such Participant and the Company or an Affiliate, provided, however that if there is no such employment, severance
or similar agreement in which such term is defined, and unless otherwise defined in the applicable Award Certificate, “Cause” shall mean any of the following acts by the Participant, as determined by the Committee: gross neglect of duty,
prolonged absence from duty without the consent of the Company (other than on account of the Participant’s death or Disability), material breach by the Participant of any published Company code of conduct or code of ethics; or willful
misconduct, misfeasance or malfeasance of duty which is reasonably determined to be detrimental to the Company. With respect to a Participant’s termination of directorship, “Cause” means an act or failure to act that constitutes cause
for removal of a director under applicable Delaware law. The determination of the Committee as to the existence of “Cause” shall be conclusive on the Participant and the Company. 

(g) “Change in Control” means and includes the occurrence of any one of the following events
but shall specifically exclude a Public Offering: 
 (i) during any consecutive 12-month period,
individuals who, at the beginning of such period, constitute the Board of Directors of the Company (the “Incumbent Directors”) cease for any reason to constitute at least a majority of such Board, provided that any person becoming a
director after the beginning of such 12-month period and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided,
however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to the election or removal of directors (“Election Contest”) or other
actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be
deemed an Incumbent Director; or 
 (ii) any Person becomes a Beneficial Owner, directly or
indirectly, of either (A) 35% or more of the then-outstanding shares of common stock of the Company (“Company Common Stock”) or (B) securities of the Company representing 35% or more of the combined voting power of the
Company’s then outstanding securities eligible to vote for the election of directors (the “Company Voting Securities”); provided, however, that for purposes of this subsection (ii), the following holdings or acquisitions
of Company Common Stock or Company Voting Securities shall not constitute a Change in Control: (v) the holdings or future acquisitions by a Person who is on the Effective Date a Beneficial Owner of 35% or more of the Company Common Stock or
Company Voting Securities, (w) an acquisition directly from the Company, (x) an acquisition by the Company or a Subsidiary, (y) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or
any Subsidiary, or (z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (iii) below); or 
 (iii) the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or a Subsidiary (a “Reorganization”),
or the sale or other disposition of 

  
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all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another corporation or other entity (an “Acquisition”), unless
immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of the individuals and entities who were the Beneficial Owners, respectively, of the outstanding Company Common Stock and outstanding Company Voting
Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly, more than 35% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such transaction owns
the Company or all or substantially all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving Entity”) in substantially the same proportions as their ownership, immediately prior to such
Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no Person (other than (x) the Company or any Subsidiary, (y) the Surviving Entity
or its ultimate parent entity, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the Beneficial Owner, directly or indirectly, of 35% or more of the total common stock or 35% or more of the
total voting power of the outstanding voting securities eligible to elect directors of the Surviving Entity, and (C) at least a majority of the members of the board of directors of the Surviving Entity were Incumbent Directors at the time of
the Board’s approval of the execution of the initial agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in (A), (B) and (C) above
shall be deemed to be a “Non-Qualifying Transaction”); or 
 (iv) approval by the
shareholders of the Company of a complete liquidation or dissolution of the Company. 
 (h)
“Code” means the Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any successor or
similar provision. 
 (i) “Committee” means the committee of the Board described in
Article 4. 
 (j) “Company” means Toys “R” Us, Inc., a Delaware
corporation, or any successor corporation. 
 (k) “Continuous Service” means the
absence of any interruption or termination of service as an employee, officer, consultant or director of the Company or any Affiliate, as applicable; provided, however, that for purposes of an Incentive Stock Option “Continuous Service”
means the absence of any interruption or termination of service as an employee of the Company or any Parent or Subsidiary, as applicable, pursuant to applicable tax regulations. Continuous Service shall not be considered interrupted in the following
cases: (i) a Participant transfers employment between the Company and an Affiliate or between Affiliates, or (ii) in the discretion of the Committee as specified at or prior to such occurrence, in the case of a spin-off, sale or
disposition of 

  
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the Participant’s employer from the Company or any Affiliate, or (iii) any leave of absence authorized in writing by the Company prior to its commencement; provided, however, that for
purposes of Incentive Stock Options, no such leave may exceed 90 days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so
guaranteed, on the 91st day of such leave any Incentive Stock Option held by the Participant shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option. Whether military, government or
other service or other leave of absence shall constitute a termination of Continuous Service shall be determined in each case by the Committee at its discretion, and any determination by the Committee shall be final and conclusive; provided,
however, that for purposes of any Award that is subject to Code Section 409A, the determination of a leave of absence must comply with the requirements of a “bona fide leave of absence” as provided in Treas. Reg.
Section 1.409A-1(h). 
 (l) “Deferred Stock Unit” means a right granted to a
Participant under Article 9 to receive Shares (or the equivalent value in cash or other property if the Committee so provides) at a future time as determined by the Committee, or as determined by the Participant within guidelines established by the
Committee in the case of voluntary deferral elections. 
 (m) “Disability” of a
Participant means that the Participant (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Participant’s employer. If the determination of Disability relates to an Incentive Stock
Option, Disability means Permanent and Total Disability as defined in Section 22(e)(3) of the Code. In the event of a dispute, the determination of whether a Participant is Disabled will be made by the Committee and may be supported by the
advice of a physician competent in the area to which such Disability relates. 
 (n)
“Dividend Equivalent” means a right granted to a Participant under Article 11. 
 (o)
“Effective Date” has the meaning assigned such term in Section 3.1. 
 (p)
“Eligible Participant” means an employee (including a leased employee), officer, consultant or director of the Company or any Affiliate. 

(q) “Exchange” means any national securities exchange on which the Stock may from time to time
be listed or traded. 
 (r) “Fair Market Value,” on any date, means (i) if the
Stock is listed on a securities exchange, the closing sales price on the principal such exchange on such date or, in the absence of reported sales on such date, the closing sales price on the immediately preceding date on which sales were reported,
or (ii) if the Stock is not listed on a securities exchange, the mean between the bid and offered prices as quoted by the 

  
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applicable interdealer quotation system for such date, provided that if the Stock is not quoted on an interdealer quotation system or it is determined that the fair market value is not properly
reflected by such quotations, Fair Market Value will be determined by such other method as the Committee determines in good faith to be reasonable and in compliance with Code Section 409A. 

(s) “Full-Value Award” means an Award other than in the form of an
Option or SAR, and which is settled by the issuance of Stock (or at the discretion of the Committee, settled in cash valued by reference to Stock value). 

(t) “Good Reason” (or a similar term denoting constructive termination) has the meaning, if
any, assigned such term in the employment, consulting, severance or similar agreement, if any, between a Participant and the Company or an Affiliate, provided, however that if there is no such employment, consulting, severance or similar agreement
in which such term is defined, “Good Reason” shall have the meaning, if any, given such term in the applicable Award Certificate. If not defined in either such document, the term “Good Reason” as used herein shall not apply to a
particular Award. 
 (u) “Grant Date” of an Award means the first date on which all
necessary corporate action has been taken to approve the grant of the Award as provided in the Plan, or such later date as is determined and specified as part of that authorization process. Notice of the grant shall be a provided to the grantee
within a reasonable time after the Grant Date. 
 (v) “Incentive Stock Option” means
an Option that is intended to be an incentive stock option and meets the requirements of Section 422 of the Code or any successor provision thereto. 

(w) “Independent Directors” means those members of the Board who qualify at any given time as
both (a) an “independent” director under the applicable rules of each Exchange on which the Shares are listed, and (b) a “non-employee” director under Rule 16b-3 of the 1934 Act; provided, however, that, for any periods
of time when the Company is not required by the applicable stock exchange or to obtain any tax benefits or exemption, in either case by satisfying the requirements for an independent director or a non-employee director, as each is described in
(a) and (b) herein, any Non-Employee Director may serve as an Independent Director. 

(x) “Non-Employee Director” means a director of the Company who is not a common law employee of
the Company or an Affiliate. 
 (y) “Nonstatutory Stock Option” means an Option that
is not an Incentive Stock Option. 
 (z) “Option” means a right granted to a
Participant under Article 7 of the Plan to purchase Stock at a specified price during specified time periods. An Option may be either an Incentive Stock Option or a Nonstatutory Stock Option. 

(aa) “Other Stock-Based Award” means a right, granted to a Participant under Article 12, that
relates to or is valued by reference to Stock or other Awards relating to Stock. 

  
 5 

 (bb) “Parent” means a corporation, limited
liability company, partnership or other entity which owns or beneficially owns a majority of the outstanding voting stock or voting power of the Company. Notwithstanding the above, with respect to an Incentive Stock Option, Parent shall have the
meaning set forth in Section 424(e) of the Code. 
 (cc) “Participant” means an
Eligible Participant who has been granted an Award under the Plan; provided that in the case of the death of a Participant, the term “Participant” refers to a beneficiary designated pursuant to Section 13.4 or the legal guardian or
other legal representative acting in a fiduciary capacity on behalf of the Participant under applicable state law and court supervision. 
 (dd) “Performance Award” means any award granted under the Plan pursuant to Article 10. 
 (ee) “Person” means any individual, entity or group, within the meaning of Section 3(a)(9) of the 1934 Act and as used in Section 13(d)(3) or 14(d)(2) of the 1934 Act. 

(ff) “Plan” means the Toys “R” Us, Inc. 2010 Incentive Plan, as amended from time to
time. 
 (gg) “Public Offering” means a public offering of any class or series of the
Company’s equity securities pursuant to a registration statement filed by the Company under the 1933 Act. 
 (hh) “Restricted Stock” means Stock granted to a Participant under Article 9 that is subject to certain restrictions and to risk of forfeiture. 

(ii) “Restricted Stock Unit” means the right granted to a Participant under Article 9 to
receive shares of Stock (or the equivalent value in cash or other property if the Committee so provides) in the future, which right is subject to certain restrictions and to risk of forfeiture. 

(jj) “Retirement” means a Participant’s voluntary termination of employment with the
Company or an Affiliate after attaining age 60 with at least ten (10) years of continuous service with the Company or its Affiliates. 
 (kk) “Shares” means shares of the Company’s Stock. If there has been an adjustment or substitution (whether or not done pursuant to Article 14), the term “Shares” shall also
include any shares of stock or other securities that are substituted for Shares or into which Shares are adjusted. 
 (ll) “Stock” means the $0.001 par value common stock of the Company and such other securities of the Company as may be substituted for Stock (whether or not done pursuant to Article 14).

 (mm) “Stock Appreciation Right” or “SAR” means a right granted to a
Participant under Article 8 to receive a payment equal to the difference between the Fair Market Value of a Share as of the date of exercise of the SAR over the base price of the SAR, all as determined pursuant to Article 8. 

  
 6 

 (nn) “Subsidiary” means any corporation, limited
liability company, partnership or other entity of which a majority of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company. Notwithstanding the above, with respect to an Incentive Stock Option,
Subsidiary shall have the meaning set forth in Section 424(f) of the Code. 
 (oo)
“1933 Act” means the Securities Act of 1933, as amended from time to time. 
 (pp)
“1934 Act” means the Securities Exchange Act of 1934, as amended from time to time. 
 ARTICLE 3 

EFFECTIVE TERM OF PLAN 
 3.1. EFFECTIVE DATE. Subject to the approval of the Plan by the Company’s shareholders within 12 months after the Plan’s adoption by the Board, the Plan will become effective on the date
that it is adopted by the Board (the “Effective Date”). 
 3.2. TERMINATION OF PLAN. Unless
earlier terminated as provided herein, the Plan shall continue in effect until the tenth anniversary of the Effective Date or, if prior to such tenth anniversary the shareholders approve an amendment to the Plan that increases the number of Shares
subject to the Plan, the tenth anniversary of the date of such shareholder approval. The termination of the Plan shall not affect the validity of any Award outstanding on the date of termination, which shall continue to be governed by the applicable
terms and conditions of the Plan. Notwithstanding the foregoing, no Incentive Stock Options may be granted more than ten (10) years after the earlier of (a) adoption of this Plan by the Board, or (b) the Effective Date. 

ARTICLE 4 

ADMINISTRATION 
 4.1. COMMITTEE. The Plan shall be administered by a Committee appointed by the Board (which Committee shall consist of at least two directors) or, at the discretion of the Board from time to time,
the Plan may be administered by the Board. It is intended that, at such times and to such extent as it is necessary to do so, at least two of the directors appointed to serve on the Committee shall be Independent Directors and that any such members
of the Committee who do not so qualify shall abstain from participating in any decision to make or administer Awards that are made to Eligible Participants who at the time of consideration for such Award are persons subject to the short-swing profit
rules of Section 16 of the 1934 Act. However, the mere fact that a Committee member shall fail to qualify as an Independent Director or shall fail to abstain from such action shall not invalidate any Award made by the Committee which Award is
otherwise validly made under the Plan. The members of the Committee shall be appointed by, and may be changed at any time and from time to time in the discretion of, the Board. Unless and until changed by the Board, the Compensation Committee of the
Board is designated as the Committee to administer the Plan. The Board may reserve to itself any or all of the authority and responsibility of the Committee under the Plan or may act as administrator of the Plan for any and all purposes. To the
extent the Board has reserved any authority and responsibility or during any time that the Board is acting as administrator of the Plan, it shall have all the powers and protections of the Committee hereunder, and any reference herein to the
Committee (other than in this Section 4.1) shall include the Board. To the extent any action of the Board under the Plan conflicts with actions taken by the Committee, the actions of the Board shall control.

  
 7 

 
Notwithstanding any of the foregoing, grants of Awards to Non-Employee Directors under the Plan shall be made only in accordance with the terms, conditions and parameters of a plan, program or
policy for the compensation of Non-Employee Directors that is approved and administered by a committee of the Board consisting solely of Independent Directors. 
 4.2. ACTION AND INTERPRETATIONS BY THE COMMITTEE. For purposes of administering the Plan, the Committee may from time to time adopt rules, regulations, guidelines and procedures for carrying out
the provisions and purposes of the Plan and make such other determinations, not inconsistent with the Plan, as the Committee may deem appropriate. The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan
or in any Award in the manner and to the extent it deems necessary to carry out the intent of the Plan. The Committee’s interpretation of the Plan, any Awards granted under the Plan, any Award Certificate and all decisions and determinations by
the Committee with respect to the Plan are final, binding, and conclusive on all parties. Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer or other
employee of the Company or any Affiliate, the Company’s or an Affiliate’s independent certified public accountants, Company counsel or any executive compensation consultant or other professional retained by the Company to assist in the
administration of the Plan. No member of the Committee will be liable for any good faith determination, act or omission in connection with the Plan or any Award. 

4.3. AUTHORITY OF COMMITTEE. Except as provided in Section 4.1 hereof, the Committee has the exclusive power,
authority and discretion to: 
 (a) Grant Awards; 

(b) Designate Participants; 

(c) Determine the type or types of Awards to be granted to each Participant; 

(d) Determine the number of Awards to be granted and the number of Shares or dollar amount to which an
Award will relate; 
 (e) Determine the terms and conditions of any Award granted under the
Plan; 
 (f) Prescribe the form of each Award Certificate, which need not be identical for each
Participant; 
 (g) Decide all other matters that must be determined in connection with an
Award; 
 (h) Establish, adopt or revise any rules, regulations, guidelines or procedures as it
may deem necessary or advisable to administer the Plan; 
 (i) Make all other decisions and
determinations that may be required under the Plan or as the Committee deems necessary or advisable to administer the Plan; 
 (j) Amend the Plan or any Award Certificate as provided herein; and 

  
 8 

 (k) Adopt such modifications, procedures, and subplans as
may be necessary or desirable to comply with provisions of the laws of the United States or any non-U.S. jurisdictions in which the Company or any Affiliate may operate, in order to assure the viability of the benefits of Awards granted to
participants located in the United States or such other jurisdictions and to further the objectives of the Plan. 
 Notwithstanding the foregoing, grants of Awards to Non-Employee Directors hereunder shall be made only in accordance with the terms, conditions and parameters of a plan, program or policy for the
compensation of Non-Employee Directors as in effect from time to time, and the Committee may not make discretionary grants hereunder to Non-Employee Directors. 
 4.4. DELEGATION. The Board may, by resolution, expressly delegate to a special committee, consisting of one or more directors who may but need not be officers of the Company, the authority, within
specified parameters as to the number and terms of Awards, to (i) designate officers and/or employees of the Company or any of its Affiliates to be recipients of Awards under the Plan, and (ii) to determine the number of such Awards to be
received by any such Participants; provided, however, that such delegation of duties and responsibilities to an officer of the Company may not be made with respect to the grant of Awards to eligible participants who are subject to Section 16(a)
of the 1934 Act at the Grant Date. The acts of such delegates shall be treated hereunder as acts of the Board and such delegates shall report regularly to the Board and the Compensation Committee regarding the delegated duties and responsibilities
and any Awards so granted. 
 4.5. INDEMNIFICATION. Each person who is or shall have been a member of the
Committee, or of the Board, or an officer of the Company to whom authority was delegated in accordance with this Article 4 shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be
imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act
under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her,
provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf, unless such loss, cost, liability, or expense is a result of
his or her own willful misconduct or except as expressly provided by statute. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s charter
or bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

ARTICLE 5 

SHARES SUBJECT TO THE PLAN 
 5.1. NUMBER OF SHARES. Subject to adjustment as provided in Sections 5.2 and Section 14.1, the aggregate number of Shares reserved and available for issuance pursuant to Awards granted under
the Plan shall be 3,750,000. The maximum number of Shares that may be issued upon exercise of Incentive Stock Options granted under the Plan shall be 500,000. 
 5.2. SHARE COUNTING. Shares covered by an Award shall be subtracted from the Plan share reserve as of the Grant Date, but shall be added back to the Plan share reserve in accordance with this
Section 5.2. 

  
 9 

 (a) To the extent that an Award is canceled, terminates,
expires, is forfeited or lapses for any reason, any unissued or forfeited Shares originally subject to the Award will be added back to the Plan share reserve and again be available for issuance pursuant to Awards granted under the Plan. 

(b) To the extent that the full number of Shares subject to a Performance Award is not issued by reason
of failure to achieve maximum performance goals, the unissued Shares originally subject to the Award will be added back to the Plan share reserve and again be available for issuance pursuant to Awards granted under the Plan. 

(c) Substitute Awards granted pursuant to Section 13.10 of the Plan shall not count against the
Shares otherwise available for issuance under the Plan under Section 5.1. 
 (d) Subject to
applicable Exchange requirements, shares available under a stockholder-approved plan of a company acquired by the Company (as appropriately adjusted to Shares to reflect the transaction) may be issued under the Plan pursuant to Awards granted to
individuals who were not employees of the Company or its Affiliates immediately before such transaction and will not count against the maximum share limitation specified in Section 5.1. 

5.3. STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in whole or in part, of authorized
and unissued Stock, treasury Stock or Stock purchased on the open market. 
 ARTICLE 6 

ELIGIBILITY 
 6.1. GENERAL. Awards may be granted only to Eligible Participants. Incentive Stock Options may be granted only to Eligible Participants who are employees of the Company or a Parent or Subsidiary as
defined in Section 424(e) and (f) of the Code. Eligible Participants who are service providers to an Affiliate may be granted Options or SARs under this Plan only if the Affiliate qualifies as an “eligible issuer of service recipient
stock” within the meaning of Treas. Reg. Section 1.409A-1(b)(5)(iii)(E). 
 ARTICLE 7 

STOCK OPTIONS 
 7.1. GENERAL. The Committee is authorized to grant Options to Participants on the following terms and conditions: 

(a) EXERCISE PRICE. The exercise price per Share under an Option shall be determined by the
Committee, provided that the exercise price for any Option (other than an Option issued as a substitute Award pursuant to Section 13.10) shall not be less than the Fair Market Value as of the Grant Date. 

(b) PROHIBITION ON REPRICING. Except as otherwise provided in Section 14.1, the exercise
price of an Option may not be reduced, directly or indirectly by cancellation and regrant or otherwise, without the prior approval of the shareholders of the Company. 

  
 10 

 (c) TIME AND CONDITIONS OF EXERCISE. The Committee
shall determine the time or times at which an Option may be exercised in whole or in part, subject to Section 7.1(e), including a provision that an Option that is otherwise exercisable and has an exercise price that is less than the Fair Market
Value of the Stock on the last day of its term will be automatically exercised on such final date of the term by means of a “net exercise,” thus entitling the optionee to Shares equal to the intrinsic value of the Option on such exercise
date, less the number of Shares required for tax withholding. The Committee shall also determine the performance or other conditions, if any, that must be satisfied before all or part of an Option may be exercised or vested. 

(d) PAYMENT. The Committee shall determine the methods by which the exercise price of an Option
may be paid, the form of payment, and the methods by which Shares shall be delivered or deemed to be delivered to Participants. As determined by the Committee at or after the Grant Date, payment of the exercise price of an Option may be made in, in
whole or in part, in the form of (i) cash or cash equivalents, (ii) delivery (by either actual delivery or attestation) of previously-acquired Shares based on the Fair Market Value of the Shares on the date the Option is exercised,
(iii) withholding of Shares from the Option based on the Fair Market Value of the Shares on the date the Option is exercised, (iv) broker-assisted market sales, or (iv) any other “cashless exercise” arrangement. 

(e) EXERCISE TERM. Except for Nonstatutory Options granted to Participants outside the United
States, no Option granted under the Plan shall be exercisable for more than ten years from the Grant Date. 
 (f) NO DEFERRAL FEATURE. No Option shall provide for any feature for the deferral of compensation other than the deferral of recognition of income until the exercise or disposition of the Option.

 (g) NO DIVIDEND EQUIVALENTS. No Option shall provide for Dividend Equivalents.

 7.2. INCENTIVE STOCK OPTIONS. The terms of any Incentive Stock Options granted under the Plan must
comply with the requirements of Section 422 of the Code. Without limiting the foregoing, any Incentive Stock Option granted to a Participant who at the Grant Date owns more than 10% of the voting power of all classes of shares of the Company
must have an exercise price per Share of not less than 110% of the Fair Market Value per Share on the Grant Date and an Option term of not more than five years. If all of the requirements of Section 422 of the Code (including the above) are not
met, the Option shall automatically become a Nonstatutory Stock Option. 
 ARTICLE 8 

STOCK APPRECIATION RIGHTS 
 8.1. GRANT OF STOCK APPRECIATION RIGHTS. The Committee is authorized to grant Stock Appreciation Rights to Participants on the following terms and conditions: 

(a) RIGHT TO PAYMENT. Upon the exercise of a SAR, the Participant has the right to receive, for
each Share with respect to which the SAR is being exercised, the excess, if any, of: 

  
 11 

 (1) The Fair Market Value of one Share on the date of
exercise; over 
 (2) The base price of the SAR as determined by the Committee and set forth in
the Award Certificate, which shall not be less than the Fair Market Value of one Share on the Grant Date. 
 (b) PROHIBITION ON REPRICING. Except as otherwise provided in Section 14.1, the base price of a SAR may not be reduced, directly or indirectly by cancellation and regrant or otherwise, without
the prior approval of the shareholders of the Company. 
 (c) TIME AND CONDITIONS OF
EXERCISE. The Committee shall determine the time or times at which a SAR may be exercised in whole or in part, including a provision that a SAR that is otherwise exercisable and has a base price that is less than the Fair Market Value of the
Stock on the last day of its term will be automatically exercised on such final date of the term, thus entitling the holder to cash or Shares equal to the intrinsic value of the SAR on such exercise date, less the cash or number of Shares required
for tax withholding. Except for SARs granted to Participants outside the United States, no SAR shall be exercisable for more than ten years from the Grant Date. 

(d) NO DEFERRAL FEATURE. No SAR shall provide for any feature for the deferral of compensation
other than the deferral of recognition of income until the exercise or disposition of the SAR. 

(e) NO DIVIDEND EQUIVALENTS. No SAR shall provide for Dividend Equivalents. 

(f) OTHER TERMS. All SARs shall be evidenced by an Award Certificate. Subject to the limitations
of this Article 8, the terms, methods of exercise, methods of settlement, form of consideration payable in settlement (e.g., cash, Shares or other property), and any other terms and conditions of the SAR shall be determined by the Committee at the
time of the grant and shall be reflected in the Award Certificate. 
 ARTICLE 9 

RESTRICTED STOCK, RESTRICTED STOCK UNITS 
 AND DEFERRED STOCK UNITS 
 9.1. GRANT OF RESTRICTED
STOCK, RESTRICTED STOCK UNITS AND DEFERRED STOCK UNITS. The Committee is authorized to make Awards of Restricted Stock, Restricted Stock Units or Deferred Stock Units to Participants in such amounts and subject to such terms and conditions as
may be selected by the Committee. An Award of Restricted Stock, Restricted Stock Units or Deferred Stock Units shall be evidenced by an Award Certificate setting forth the terms, conditions, and restrictions applicable to the Award. 

9.2. ISSUANCE AND RESTRICTIONS. Restricted Stock, Restricted Stock Units or Deferred Stock Units shall be subject
to such restrictions on transferability and other restrictions as the Committee may impose (including, for example, limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted Stock). These restrictions may
lapse separately or in combination at such times, under such circumstances, in such installments, upon 

  
 12 

 
the satisfaction of performance goals or otherwise, as the Committee determines at the time of the grant of the Award or thereafter. Except as otherwise provided in an Award Certificate or any
special Plan document governing an Award, a Participant shall have none of the rights of a stockholder with respect to Restricted Stock Units or Deferred Stock Units until such time as Shares of Stock are paid in settlement of such Awards.

 9.3. DIVIDENDS ON RESTRICTED STOCK. In the case of Restricted Stock, the Committee
may provide that ordinary cash dividends declared on the Shares before they are vested (i) will be forfeited, (ii) will be deemed to have been reinvested in additional Shares or otherwise reinvested (subject to Share availability under
Section 5.1 hereof), or (iii) in the case of Restricted Stock that is not subject to performance-based vesting, will be paid or distributed to the Participant as accrued (in which case, such dividends must be paid or distributed no later
than the 15th day of the 3rd month following the later of (A) the calendar year in which the
corresponding dividends were paid to shareholders, or (B) the first calendar year in which the Participant’s right to such dividends is no longer subject to a substantial risk of forfeiture). Unless otherwise provided by the Committee,
dividends accrued on Shares of Restricted Stock before they are vested shall, as provided in the Award Certificate, either (i) be reinvested in the form of additional Shares, which shall be subject to the same vesting provisions as provided for
the host Award, or (ii) be credited by the Company to an account for the Participant and accumulated without interest until the date upon which the host Award becomes vested, and any dividends accrued with respect to forfeited Restricted Stock
will be reconveyed to the Company without further consideration or any act or action by the Participant. 
 9.4.
FORFEITURE. Subject to the terms of the Award Certificate and except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon termination of Continuous Service during the applicable restriction period
or upon failure to satisfy a performance goal during the applicable restriction period, Restricted Stock or Restricted Stock Units that are at that time subject to restrictions shall be forfeited. 

9.5. DELIVERY OF RESTRICTED STOCK. Shares of Restricted Stock shall be delivered to the Participant at the Grant
Date either by book-entry registration or by delivering to the Participant, or a custodian or escrow agent (including, without limitation, the Company or one or more of its employees) designated by the Committee, a stock certificate or certificates
registered in the name of the Participant. If physical certificates representing shares of Restricted Stock are registered in the name of the Participant, such certificates must bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to such Restricted Stock. 
 ARTICLE 10 

PERFORMANCE AWARDS 
 10.1. GRANT OF PERFORMANCE AWARDS. The Committee is authorized to grant any Award under this Plan, including cash-based Awards, with performance-based vesting criteria, on such terms and conditions
as may be selected by the Committee. Any such Awards with performance-based vesting criteria are referred to herein as Performance Awards. The Committee shall have the complete discretion to determine the number of Performance Awards granted to each
Participant, and to designate the provisions of such Performance Awards as provided in Section 4.3. All Performance Awards shall be evidenced by an Award Certificate or a written program established by the Committee, pursuant to which
Performance Awards are awarded under the Plan under uniform terms, conditions and restrictions set forth in such written program. 

  
 13 

 10.2. PERFORMANCE GOALS. The Committee may establish performance
goals for Performance Awards which may be based on any criteria selected by the Committee. Such performance goals may be described in terms of Company-wide objectives or in terms of objectives that relate to the performance of the Participant, an
Affiliate or a division, region, department or function within the Company or an Affiliate. If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company or the manner in which the
Company or an Affiliate conducts its business, or other events or circumstances render performance goals to be unsuitable, the Committee may modify such performance goals in whole or in part, as the Committee deems appropriate. If a Participant is
promoted, demoted or transferred to a different business unit or function during a performance period, the Committee may determine that the performance goals or performance period are no longer appropriate and may (i) adjust, change or
eliminate the performance goals or the applicable performance period as it deems appropriate to make such goals and period comparable to the initial goals and period, or (ii) make a cash payment to the participant in an amount determined by the
Committee. 
 ARTICLE 11 
 DIVIDEND EQUIVALENTS 
 11.1. GRANT
OF DIVIDEND EQUIVALENTS. The Committee is authorized to grant Dividend Equivalents with respect to Full-Value Awards granted hereunder, subject to such terms and conditions as may be selected by the Committee. Dividend Equivalents shall entitle
the Participant to receive payments equal to ordinary cash dividends or distributions with respect to all or a portion of the number of Shares subject to a Full-Value Award, as determined by the Committee. The Committee may provide that Dividend
Equivalents (i) will be deemed to have been reinvested in additional Shares or otherwise reinvested, or (ii) except in the case of Performance Awards, will be paid or distributed to the Participant as accrued (in which case, such Dividend
Equivalents must be paid or distributed no later than the 15th day of the
3rd month following the later of (A) the calendar
year in which the corresponding dividends were paid to shareholders, or (B) the first calendar year in which the Participant’s right to such Dividends Equivalents is no longer subject to a substantial risk of forfeiture). Unless otherwise
provided by the Committee, Dividend Equivalents accruing on unvested Full-Value Awards shall, as provided in the Award Certificate, either (i) be reinvested in the form of additional Shares, which shall be subject to the same vesting provisions
as provided for the host Award, or (ii) be credited by the Company to an account for the Participant and accumulated without interest until the date upon which the host Award becomes vested, and any Dividend Equivalents accrued with respect to
forfeited Awards will be reconveyed to the Company without further consideration or any act or action by the Participant. 

ARTICLE 12 

STOCK OR OTHER STOCK-BASED AWARDS 
 12.1. GRANT OF STOCK OR OTHER STOCK-BASED AWARDS. The Committee is authorized, subject to limitations under applicable law, to grant to Participants such other Awards that are payable in, valued in
whole or in part by reference to, or otherwise based on or related to Shares, as deemed by the Committee to be consistent with the purposes of the Plan, including without limitation Shares awarded purely as a “bonus” and not subject to any
restrictions or conditions, convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, and Awards valued by reference to book value of Shares or the value of securities of or the performance of specified
Parents or Subsidiaries. The Committee shall determine the terms and conditions of such Awards. 

  
 14 

 ARTICLE 13 
 PROVISIONS APPLICABLE TO AWARDS 
 13.1. AWARD
CERTIFICATES. Each Award shall be evidenced by an Award Certificate. Each Award Certificate shall include such provisions, not inconsistent with the Plan, as may be specified by the Committee. 

13.2. FORM OF PAYMENT FOR AWARDS. At the discretion of the Committee, payment of Awards may be made in cash,
Stock, a combination of cash and Stock, or any other form of property as the Committee shall determine. In addition, payment of Awards may include such terms, conditions, restrictions and/or limitations, if any, as the Committee deems appropriate,
including, in the case of Awards paid in the form of Stock, restrictions on transfer and forfeiture provisions. Further, payment of Awards may be made in the form of a lump sum, or in installments, as determined by the Committee. 

13.3. LIMITS ON TRANSFER. No right or interest of a Participant in any unexercised or restricted Award may be
pledged, encumbered, or hypothecated to or in favor of any party other than the Company or an Affiliate, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than the Company or an Affiliate. No
unexercised or restricted Award shall be assignable or transferable by a Participant other than by will or the laws of descent and distribution or, except in the case of an Incentive Stock Option, pursuant to a domestic relations order that would
satisfy Section 414(p)(1)(A) of the Code if such Section applied to an Award under the Plan; provided, however, that the Committee may (but need not) permit other transfers (other than transfers for value) where the Committee concludes that
such transferability (i) does not result in accelerated taxation, (ii) does not cause any Option intended to be an Incentive Stock Option to fail to be described in Code Section 422(b), and (iii) is otherwise appropriate and
desirable, taking into account any factors deemed relevant, including without limitation, federal, state or local, whether domestic or foreign, tax or securities laws applicable to transferable Awards; provided, however, that a Participant shall be
permitted to transfer to Participant’s spouse and descendents (whether or not adopted), and to any trust, family limited partnership or limited liability company, that in any event is and remains at all times solely for the benefit of the
Particpant and/or such Participant’s spouse and/or descendants, in each case where such transferee has executed and delivered to the Company the documents and notices required under the Plan or the Award . 

13.4. BENEFICIARIES. Notwithstanding Section 13.3, a Participant may, in the manner determined by the
Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary, legal guardian, legal representative, or other person claiming
any rights under the Plan is subject to all terms and conditions of the Plan and any Award Certificate applicable to the Participant, except to the extent the Plan and Award Certificate otherwise provide, and to any additional restrictions deemed
necessary or appropriate by the Committee. If no beneficiary has been designated or survives the Participant, any payment due to the Participant shall be made to the Participant’s estate. Subject to the foregoing, a beneficiary designation may
be changed or revoked by a Participant, in the manner provided by the Company, at any time provided the change or revocation is filed with the Committee. 
 13.5. STOCK TRADING RESTRICTIONS. All Stock issuable under the Plan is subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with
federal or state securities laws, rules and regulations and the rules of 

  
 15 

 
any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate or issue instructions to
the transfer agent to reference restrictions applicable to the Stock. 
 13.6. ACCELERATION UPON DEATH,
DISABILITY OR RETIREMENT. Except as otherwise provided in the Award Certificate or any special Plan document governing an Award, upon the termination of a person’s Continuous Service by reason of death, Disability or Retirement: 

(i) all of that Participant’s outstanding Options and SARs shall become fully exercisable, and shall
thereafter remain exercisable for a period of one (1) year or until the earlier expiration of the original term of the Option or SAR; 
 (ii) all time-based vesting restrictions on that Participant’s outstanding Awards shall lapse and be deemed fully satisfied as of the date of termination; and 

(iii) the payout opportunities attainable under all of that Participant’s outstanding
performance-based Awards shall be deemed to have been earned by him as of the date of termination (as if he had continued to work until the end of the performance period), and the amount to be paid to him, if any, shall be based on the actual level
of achievement of all relevant performance goals against target and will be measured as of the end of the performance period in which such termination occurred. There shall be a prorata payout to the Participant or his or her estate within sixty
(60) days following the end of the performance period (unless a later date is required by Section 16.3 hereof), which proration shall be based upon the length of time within the performance period that had elapsed prior to the date of
termination by reason of the Participant’s death, Disability or Retirement over the performance period. 

To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Code
Section 422(d), the excess Options shall be deemed to be Nonstatutory Stock Options. 
 13.7. EFFECT OF
A CHANGE IN CONTROL. Except as otherwise provided in the Award Certificate or any special Plan document or separate agreement with a Participant governing an Award, upon the occurrence of a Change in Control: (i) outstanding Options and
SARs shall become fully exercisable, (ii) time-based vesting restrictions on outstanding Awards shall lapse and be deemed fully satisfied, and (iii) the target payout opportunities attainable under outstanding performance-based Awards
shall be deemed to have been fully earned by the Participant (as if he had continued to be employed through the performance period and the Company had attained the requisite target level of performance required) as of the effective date of the
Change in Control, provided that, subject to Section 16.3, there shall be a prorata target payout to Participants within sixty (60) days following the Change in Control (unless a later date is required by Section 16.3 hereof), based
upon the length of time within the performance period that has elapsed prior to the Change in Control over the length of the performance period. To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set
forth in Code Section 422(d), the excess Options shall be deemed to be Nonstatutory Stock Options. 
 13.8.
ACCELERATION FOR OTHER REASONS. Regardless of whether an event has occurred as described in Section 13.6 or 13.7 above, the Committee may in its sole discretion at any time determine that, upon the termination of service of a
Participant, or the occurrence of a Change in Control, all or a portion of such Participant’s Options and SARs shall become fully or 

  
 16 

 
partially exercisable, that all or a part of the restrictions on all or a portion of the Participant’s outstanding Awards shall lapse, and/or that any performance-based criteria with respect
to any Awards held by that Participant shall be deemed to be wholly or partially satisfied, in each case, as of such date as the Committee may, in its sole discretion, declare. The Committee may discriminate among Participants and among Awards
granted to a Participant in exercising its discretion pursuant to this Section 13.8. Notwithstanding anything in the Plan, including this Section 13.8, the Committee may not accelerate the payment of any Award if such acceleration would
violate Section 409A(a)(3) of the Code. 
 13.9. FORFEITURE EVENTS. The Committee may specify in an
Award Certificate that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise
applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, (i) termination of employment for cause, (ii) violation of material Company or Affiliate policies, (iii) breach of
noncompetition, confidentiality or other restrictive covenants that may apply to the Participant, (iv) other conduct by the Participant that is detrimental to the business or reputation of the Company or any Affiliate, or (v) a later
determination that the vesting of, or amount realized from, a Performance Award was based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria, whether or not the Participant caused or
contributed to such material inaccuracy. 
 13.10. SUBSTITUTE AWARDS. The Committee may grant Awards
under the Plan in substitution for stock and stock-based awards held by employees of another entity who become employees of the Company or an Affiliate as a result of a merger or consolidation of the former employing entity with the Company or an
Affiliate or the acquisition by the Company or an Affiliate of property or stock of the former employing corporation. The Committee may direct that the substitute awards be granted on such terms and conditions as the Committee considers appropriate
in the circumstances. 
 ARTICLE 14 
 CHANGES IN CAPITAL STRUCTURE 
 14.1. MANDATORY
ADJUSTMENTS. In the event of a nonreciprocal transaction between the Company and its stockholders that causes the per-share value of the Stock to change (including, without limitation, any stock dividend, stock split, spin-off, rights offering,
reorganization, recapitalization, merger or large nonrecurring cash dividend), the authorization limits under Section 5.1 shall be adjusted proportionately, and the Committee shall make such adjustments to the Plan and Awards as it deems
necessary, in its sole discretion, to prevent dilution or enlargement of rights immediately resulting from such transaction. Action by the Committee may include: (i) adjustment of the number and kind of shares that may be delivered under the
Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; (iii) adjustment of the exercise price of outstanding Awards or the measure to be used to determine the amount of the benefit payable on an Award; and
(iv) any other adjustments that the Committee determines to be equitable. Notwithstanding the foregoing, the Committee shall not make any adjustments to outstanding Options or SARs that would constitute a modification or substitution of the
stock right under Treas. Reg. Sections 1.409A-1(b)(5)(v) that would be treated as the grant of a new stock right or change in the form of payment for purposes of Code Section 409A. Without limiting the foregoing, in the event of a subdivision
of the outstanding Stock (stock-split), a declaration of a dividend payable in Shares, or a combination or consolidation of the outstanding Stock into a lesser number of Shares, the authorization limits under Section 5.1 shall automatically be
adjusted proportionately, and the Shares then subject to each Award shall 

  
 17 

 
automatically, without the necessity for any additional action by the Committee, be adjusted proportionately without any change in the aggregate purchase price therefor. 

14.2 DISCRETIONARY ADJUSTMENTS. Upon the occurrence or in anticipation of any corporate event or transaction
involving the Company (including, without limitation, any merger, reorganization, recapitalization, combination or exchange of shares, or any transaction described in Section 14.1), the Committee may, in its sole discretion, provide
(i) that Awards will be settled in cash rather than Stock, (ii) that Awards will become immediately vested and non-forfeitable and exercisable (in whole or in part) and will expire after a designated period of time to the extent not then
exercised, (iii) that Awards will be assumed by another party to a transaction or otherwise be equitably converted or substituted in connection with such transaction, (iv) that outstanding Awards may be settled by payment in cash or cash
equivalents equal to the excess of the Fair Market Value of the underlying Stock, as of a specified date associated with the transaction, over the exercise or base price of the Award, (v) that performance targets and performance periods for
Performance Awards will be modified, consistent with Code Section 162(m) where applicable, or (vi) any combination of the foregoing. The Committee’s determination need not be uniform and may be different for different Participants
whether or not such Participants are similarly situated. 
 14.3 GENERAL. Any discretionary adjustments
made pursuant to this Article 14 shall be subject to the provisions of Section 15.2. To the extent that any adjustments made pursuant to this Article 14 cause Incentive Stock Options to cease to qualify as Incentive Stock Options, such Options
shall be deemed to be Nonstatutory Stock Options. 
 ARTICLE 15 

AMENDMENT, MODIFICATION AND TERMINATION 
 15.1. AMENDMENT, MODIFICATION AND TERMINATION. The Board or the Committee may, at any time and from time to time, amend, modify or terminate the Plan without stockholder approval; provided,
however, that if an amendment to the Plan would, in the reasonable opinion of the Board or the Committee, either (i) materially increase the number of Shares available under the Plan, (ii) expand the types of awards under the Plan,
(iii) materially expand the class of participants eligible to participate in the Plan, (iv) materially extend the term of the Plan, or (v) otherwise constitute a material change requiring stockholder approval under applicable laws,
policies or regulations or the applicable listing or other requirements of an Exchange, then such amendment shall be subject to stockholder approval; and provided, further, that the Board or Committee may condition any other amendment or
modification on the approval of stockholders of the Company for any reason, including by reason of such approval being necessary or deemed advisable (i) to comply with the listing or other requirements of an Exchange, or (ii) to satisfy
any other tax, securities or other applicable laws, policies or regulations. 
 15.2. AWARDS PREVIOUSLY
GRANTED. At any time and from time to time, the Committee may amend, modify or terminate any outstanding Award without approval of the Participant; provided, however: 

(a) Subject to the terms of the applicable Award Certificate, such amendment, modification or termination
shall not, without the Participant’s consent, reduce or diminish the value of such Award determined as if the Award had been exercised, vested, cashed in or otherwise settled on the date of such amendment or termination (with the per-share
value of an Option or SAR for this purpose being 

  
 18 

 
calculated as the excess, if any, of the Fair Market Value as of the date of such amendment or termination over the exercise or base price of such Award); 

(b) The original term of an Option or SAR may not be extended without the prior approval of the
stockholders of the Company; 
 (c) Except as otherwise provided in Section 14.1, the
exercise price of an Option or base price of a SAR may not be reduced, directly or indirectly, without the prior approval of the stockholders of the Company; and 

(d) No termination, amendment, or modification of the Plan shall adversely affect any Award previously
granted under the Plan, without the written consent of the Participant affected thereby. An outstanding Award shall not be deemed to be “adversely affected” by a Plan amendment if such amendment would not reduce or diminish the value of
such Award determined as if the Award had been exercised, vested, cashed in or otherwise settled on the date of such amendment (with the per-share value of an Option or SAR for this purpose being calculated as the excess, if any, of the Fair Market
Value as of the date of such amendment over the exercise or base price of such Award). 
 15.3. COMPLIANCE
AMENDMENTS. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, the Board may amend the Plan or an Award Certificate, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of
conforming the Plan or Award Certificate to any present or future law relating to plans of this or similar nature (including, but not limited to, Section 409A of the Code), and to the administrative regulations and rulings promulgated
thereunder. By accepting an Award under this Plan, a Participant agrees to any amendment made pursuant to this Section 15.3 to any Award granted under the Plan without further consideration or action. 

ARTICLE 16 

GENERAL PROVISIONS 
 16.1. RIGHTS OF PARTICIPANTS. 
 (a) No
Participant or any Eligible Participant shall have any claim to be granted any Award under the Plan. Neither the Company, its Affiliates nor the Committee is obligated to treat Participants or Eligible Participants uniformly, and determinations made
under the Plan may be made by the Committee selectively among Eligible Participants who receive, or are eligible to receive, Awards (whether or not such Eligible Participants are similarly situated). 

(b) Nothing in the Plan, any Award Certificate or any other document or statement made with respect to
the Plan, shall interfere with or limit in any way the right of the Company or any Affiliate to terminate any Participant’s employment or status as an officer, or any Participant’s service as a director, at any time, nor confer upon any
Participant any right to continue as an employee, officer, or director of the Company or any Affiliate, whether for the duration of a Participant’s Award or otherwise. 

(c) Neither an Award nor any benefits arising under this Plan shall constitute an employment contract
with the Company or any Affiliate and, accordingly, subject to Article 15, this Plan and the benefits hereunder may be terminated at any time in the sole 

  
 19 

 
and exclusive discretion of the Committee without giving rise to any liability on the part of the Company or an of its Affiliates. 

(d) No Award gives a Participant any of the rights of a shareholder of the Company unless and until
Shares are in fact issued to such person in connection with such Award. 
 16.2. WITHHOLDING. The Company
or any Affiliate shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Company or such Affiliate, an amount sufficient to satisfy federal, state, and local, whether foreign or domestic, taxes
(including the Participant’s FICA obligation) required by applicable law to be withheld with respect to any exercise, lapse of restriction or other taxable event arising as a result of the Plan. The obligations of the Company under the Plan
will be conditioned on such payment or arrangements and the Company or such Affiliate will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant. Unless otherwise
determined by the Committee at the time the Award is granted or thereafter, any such withholding requirement may be satisfied, in whole or in part, by withholding from the Award Shares having a Fair Market Value on the date of withholding equal to
the minimum amount (and not any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Committee establishes. All such elections shall be subject to any restrictions or limitations that the Committee,
in its sole discretion, deems appropriate. 
 16.3. SPECIAL PROVISIONS RELATED TO SECTION 409A OF THE
CODE. 
 (a) General. It is intended that the payments and benefits provided under the Plan and any
Award shall either be exempt from the application of, or comply with, the requirements of Section 409A of the Code. The Plan and all Award Certificates shall be construed in a manner that effects such intent. Nevertheless, the tax treatment of
the benefits provided under the Plan or any Award is not warranted or guaranteed. Neither the Company, its Affiliates nor their respective directors, officers, employees or advisers (other than in his or her capacity as a Participant) shall be held
liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a result of the Plan or any Award. 
 (b) Definitional Restrictions. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, to the extent that any amount or benefit that would constitute non-exempt
“deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable, or a different form of payment (e.g., lump sum or installment) would be effected, under the Plan or any Award Certificate by
reason of the occurrence of a Change in Control, or the Participant’s Disability or separation from service, such amount or benefit will not be payable or distributable to the Participant, and/or such different form of payment will not be
effected, by reason of such circumstance unless the circumstances giving rise to such Change in Control, Disability or separation from service meet any description or definition of “change in control event”, “disability” or
“separation from service”, as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition). This provision does not prohibit the
vesting of any Award upon a Change in Control, Disability or separation from service, however defined. If this provision prevents the payment or distribution of any amount or benefit, or the application of a different form of payment of any
amount or benefit, such payment or distribution shall be made at the time and in the form that would have applied absent the Change in Control, Disability or separation from service, as applicable. 

  
 20 

 (c) Allocation among Possible Exemptions. If any one or more Awards
granted under the Plan to a Participant could qualify for any separation pay exemption described in Treas. Reg. Section 1.409A-1(b)(9), but such Awards in the aggregate exceed the dollar limit permitted for the separation pay exemptions, the
Company (acting through the Committee or the Head of Human Resources) shall determine which Awards or portions thereof will be subject to such exemptions. 
 (d) Six-Month Delay in Certain Circumstances. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, if any amount or benefit that would constitute non-exempt
“deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable under this Plan or any Award Certificate by reason of a Participant’s separation from service during a period in which
the Participant is a Specified Employee (as defined below), then, subject to any permissible acceleration of payment by the Committee under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest),
or (j)(4)(vi) (payment of employment taxes): 
 (i) the amount of such non-exempt deferred compensation that
would otherwise be payable during the six-month period immediately following the Participant’s separation from service will be accumulated through and paid or provided on the first day of the seventh month following the Participant’s
separation from service (or, if the Participant dies during such period, within 30 days after the Participant’s death) (in either case, the “Required Delay Period”); and 

(ii) the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of
the Required Delay Period. 
 For purposes of this Plan, the term “Specified Employee” has the meaning
given such term in Code Section 409A and the final regulations thereunder, provided, however, that, as permitted in such final regulations, the Company’s Specified Employees and its application of the six-month delay rule of Code
Section 409A(a)(2)(B)(i) shall be determined in accordance with rules adopted by the Board or any committee of the Board, which shall be applied consistently with respect to all nonqualified deferred compensation arrangements of the Company,
including this Plan. 
 (e) Installment Payments. If, pursuant to an Award, a Participant is entitled to
a series of installment payments, such Participant’s right to the series of installment payments shall be treated as a right to a series of separate payments and not to a single payment. For purposes of the preceding sentence, the term
“series of installment payments” has the meaning provided in Treas. Reg. Section 1.409A-2(b)(2)(iii) (or any successor thereto). 
 16.4. UNFUNDED STATUS OF AWARDS. The Plan is intended to be an “unfunded” plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant pursuant
to an Award, nothing contained in the Plan or any Award Certificate shall give the Participant any rights that are greater than those of a general creditor of the Company or any Affiliate. In its sole discretion, the Committee may authorize the
creation of grantor trusts or other arrangements to meet the obligations created under the Plan to deliver Shares or payments in lieu of Shares or with respect to Awards. This Plan is not intended to be subject to ERISA. 

16.5. RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan shall be taken into account in determining any
benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or benefit plan of the Company or any Affiliate unless provided 

  
 21 

 
otherwise in such other plan. Nothing contained in the Plan will prevent the Company from adopting other or additional compensation arrangements, subject to shareholder approval if such approval
is required; and such arrangements may be either generally applicable or applicable only in specific cases. 

16.6. EXPENSES. The expenses of administering the Plan shall be borne by the Company and its Affiliates.

 16.7. TITLES AND HEADINGS. The titles and headings of the Sections in the Plan are for convenience of
reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 
 16.8. GENDER AND NUMBER. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular
shall include the plural. 
 16.9. FRACTIONAL SHARES. No fractional Shares shall be issued and the
Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding up or down. 

16.10. GOVERNMENT AND OTHER REGULATIONS. 

(a) Notwithstanding any other provision of the Plan, no Participant who acquires Shares pursuant to the
Plan may, during any period of time that such Participant is an affiliate of the Company (within the meaning of the rules and regulations of the Securities and Exchange Commission under the 1933 Act), sell such Shares, unless such offer and sale is
made (i) pursuant to an effective registration statement under the 1933 Act, which is current and includes the Shares to be sold, or (ii) pursuant to an appropriate exemption from the registration requirement of the 1933 Act, such as that
set forth in Rule 144 promulgated under the 1933 Act. 
 (b) Notwithstanding any other provision
of the Plan, if at any time the Committee shall determine that the registration, listing or qualification of the Shares covered by an Award upon any Exchange or under any foreign, federal, state or local law or practice, or the consent or approval
of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such Award or the purchase or receipt of Shares thereunder, no Shares may be purchased, delivered or received pursuant to such
Award unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any condition not acceptable to the Committee. Any Participant receiving or purchasing Shares pursuant to an Award
shall make such representations and agreements and furnish such information as the Committee may request to assure compliance with the foregoing or any other applicable legal requirements. The Company shall not be required to issue or deliver any
certificate or certificates for Shares under the Plan prior to the Committee’s determination that all related requirements have been fulfilled. The Company shall in no event be obligated to register any securities pursuant to the 1933 Act or
applicable state or foreign law or to take any other action in order to cause the issuance and delivery of such certificates to comply with any such law, regulation or requirement. 

  
 22 

 16.11. GOVERNING LAW. To the extent not governed by federal law, the
Plan and all Award Certificates shall be construed in accordance with and governed by the laws of the State of Delaware. 
 16.12. SEVERABILITY. In the event that any provision of this Plan is found to be invalid or otherwise unenforceable under any applicable law, such invalidity or unenforceability will not be
construed as rendering any other provisions contained herein as invalid or unenforceable, and all such other provisions will be given full force and effect to the same extent as though the invalid or unenforceable provision was not contained herein.

 16.13. NO LIMITATIONS ON RIGHTS OF COMPANY. The grant of any Award shall not in any way affect the
right or power of the Company to make adjustments, reclassification or changes in its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets. The Plan shall not
restrict the authority of the Company, for proper corporate purposes, to draft or assume awards, other than under the Plan, to or with respect to any person. If the Committee so directs, the Company may issue or transfer Shares to an Affiliate, for
such lawful consideration as the Committee may specify, upon the condition or understanding that the Affiliate will transfer such Shares to a Participant in accordance with the terms of an Award granted to such Participant and specified by the
Committee pursuant to the provisions of the Plan. 
 16.14. INDEMNIFICATION. Each person who is or shall
have been a member of the Committee, or of the Board, or an officer of the Company to whom authority was delegated in accordance with Article 4 shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or
expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken
or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding
against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf, unless such loss, cost, liability, or
expense is a result of his or her own willful misconduct or except as expressly provided by statute. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the
Company’s charter or bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

  
 23 

 The foregoing is hereby acknowledged as being the Toys “R” Us,
Inc., 2010 Incentive Plan as adopted by the Board on November 29, 2010 and by the shareholders on November 29, 2010. 
  

			
	 Toys “R” Us, Inc.

		
	 By:
	 	 /s/ David J. Schwartz

	 Its:
	 	 Executive Vice President – General Counsel and Corporate SecretaryToys "R" Us (Canada) Ltd. Deferred Profit Sharing Plan Rules

 EXHIBIT 10.27 

 
 DEFERRED PROFIT SHARING PLAN 

RULES 

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

  

	1.	 OBJECT OF THE PLAN 

 The object of the Plan is to allow the Company to share on a deferred basis a portion of its profits with the eligible employees of the Company who join the Plan, to give such employees an interest in the
profitable operation of the Company, and to defer taxation of any profits so shared until the actual distribution of such profits. 
  

	2.	 TRUST AGREEMENT 

 The benefits provided under the Plan are guaranteed by the Fund entrusted to the Trustees of the Plan by virtue of the Trust Agreement dated
                    . 
  

	3.	 EFFECTIVE DATE 

 The effective date of the Plan shall be August 1, 2002, or such later date as may be determined by Canada Customs and Revenue Agency. 

 

	4.	 (A)    ELIGIBILITY 

Any Employee shall be eligible to become a Member in the Plan who: 

 

	 	(1)	 is a full-time employee of the Company; 

  

	 	(2)	 has been in the continuous service of the Company for Class A: immediately eligible, Class B members are eligible after 1 year of continuous
service, 

  

	 	(3)	 has materially and significantly contributed to the prosperity and profits of the Company; 

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

  

	 	(4)	 is not an individual described in Section 147(2)(k.2) of the Income Tax Act (Canada), specifically 

 

	 	(a)	 a person related to the Employer, or 

  

	 	(b)	 a person who is, or is related to, a specified shareholder (within the meaning under the Income Tax Act), of the Employer or of a corporation
related to the Employer, 

  

	 	(c)	 where the Employer is a partnership, a person related to a member of the partnership, or 

 

	 	(d)	 where the Employer is a trust, a person who is, or is related to, a beneficiary under the trust. 

 

	 	(B)	 NOTIFICATION 

 Upon being advised by the Company of the acceptance of an employee as a Member in the Plan, the Trustees shall forthwith notify such employee, in writing, of the appointment as a Member of the Plan and
provide and make known to such employee, in writing, details of the working of the Plan and the Member’s rights and obligations thereunder. 

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

  

	5.	 CONTRIBUTIONS 

  

	 	(a)	 The Company undertakes to make voluntary contributions out of profits up to the maximum amount deductible in accordance with The Income Tax Act.

  

	 	(b)	 The significance of any contribution made on behalf of any employee for these purposes shall be determined by the Board of Directors of the Company
upon the recommendations of the corporate officers and upon such other information as the Board in its sole discretion may deem relevant. 

  

	 	(c)	 The Trustees shall allocate to each Member all contributions or amounts as are made in respect of each Member, in the year in which the Trustees
receive such contributions or amounts from whatever source. 

  

	 	(d)	 No contribution other than (i) those mentioned in (a) above, and (ii) a transfer, made in accordance with subsection 147(19) of The
Income Tax Act, from another deferred profit sharing plan under which the Member was a beneficiary, will be permitted to be made to the Plan. 

  

	 	(e)	 (1)       Under no circumstances will the total of the contributions made in the year to the Plan by the Employer
in respect 

 of a Member, and the reallocations under the Plan to a Member in the year,
exceed the lesser of: 
  

	 	(i)	 one-half of the money purchase dollar limit for the year as defined under the Income Tax Act, and 

 

	 	(ii)	 18% of the Member’s compensation (as defined in the Income Tax Act) for the year from the Employer. 

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

  

	 	(2)	 The total of all contributions made in the year to a deferred profit sharing plan in respect of a Member, by the Employer or any other employer who
at any time in the year does not deal at arm’s length with the Employer, and all reallocations under a deferred profit sharing plan to a Member in the year, will not exceed one-half of the money purchase limit for the year as defined under the
Income Tax Act. 

  

	 	(3)	 The total of 

  

	 	(i)	 the Member’s pension adjustment (as defined in the Income Tax Act) for the year in respect of the Employer, and 

 

	 	(ii)	 the total of the Member’s pension adjustment amounts for the year in respect of any other employer who at any time in the year does not deal at
arm’s length with the Employer 

 will not exceed the lesser of 

 

	 	(iii)	 the money purchase limit for the year as defined under the Income Tax Act, and 

 

	 	(iv)	 18% of the Member’s compensation (as defined in the Income Tax Act) for the year from the Employer or any other employer referred to in
(ii) above. 

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

  

	6.	 VESTING (Indicate below which vesting schedule applies to the Plan) 

 

	 	 ̈	 All contributions, income, capital gains and capital losses, allocated or reallocated under the Plan to a Member shall vest immediately, fully and
unconditionally. 

  

	 	þ	 All contributions, income, capital gains and capital losses allocated or reallocated under the Plan to a Member shall vest fully and unconditionally
in that Member when that Member has completed 24 consecutive months of membership in the Plan for the purposes of Section 8(d), and will be fully and immediately vested for the purposes of Section 8(a), (b) and (c). (variable)

  

	 	 ̈	 All contributions, income, capital gains and capital losses allocated or reallocated under the Plan to a Member shall vest as follows:

  

			
	        % after 1 year of	    	
 ̈       service

		    	
 ̈       membership

		
	and	    	
		
	100% after 2 years of	    	
 ̈       service

		    	
 ̈       membership

 

	 	 ̈	 For the purposes of Section 8(d), all contributions, income, capital gains and capital losses allocated or reallocated under the Plan to a
Member shall vest fully and unconditionally 

  

	 	(i)	 when the Member has completed 24 consecutive months of membership in the Plan, for amounts allocated or reallocated from January 1, 1991, and

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

  

	 	(ii)	 5 years after the end of the year in which the amounts were allocated or reallocated, for amounts allocated or reallocated prior to January 1,
1991. 

 All amounts will be fully and immediately vested for the purposes of
Section 8(a), (b) and (c). (variable) 
 Where the Member is not fully vested upon termination of
membership from the Plan, the unvested contributions will be refunded to the Employer or reallocated to the remaining Members before December 31 of the year immediately following the calendar year in which the Member terminates, or such later
time as is permitted in writing by the Minister of National Revenue, as per subsection 147(2)(i.1) of the Income Tax Act. 
 Divesting shall not be allowed under any grounds including dismissal for cause or union membership. 
  

	7.	 NORMAL RETIREMENT DATE 

 The Normal Retirement Date under the Plan shall be the first day of the month following the month in which the Member reaches age 65 or at such earlier or later date as the Employer and the Member
mutually agree upon but not later than the date or age prescribed by the Income Tax Act (Canada) for commencement of retirement income. 

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

  

	8.	 PAYMENT OF BENEFITS 

 The amounts vested in a Member shall be payable to the Member in accordance with the appropriate provision set out hereafter. 

 

					
	(a)	  	(1)	    	Retirement - A Member shall retire on the normal retirement date or at such earlier or later date (but not beyond the date or age prescribed by the Income Tax Act (Canada)
for commencement of retirement income) as may be mutually agreeable to the Company and the Member. Upon retiring, a Member shall become eligible to receive the total of all benefits based on the sum of the values of such Member’s account at
retirement date. Such value includes the then value of any insurance policies held by the Trustees on the life of such Member.

  

	 	(2)	 Retirement Benefits  -  Within 60 days prior to the date of actual retirement, a Member may elect one of the following
options. The Trustees will use the sum of the value of the Member’s account at the actual retirement date to provide the benefit. Such value will include the value of any insurance policies held by the Trustees on the life of such Member and
will be used: 

  

	 	(i)	 to purchase an annuity for the Member from an insurance company licensed under the laws of Canada and any province, if applicable, to carry on in
Canada, an annuities business. Such annuity will commence on or before the date or age prescribed by the Income Tax Act (Canada) for commencement of retirement income, with the guaranteed term, if any, of such annuity not exceeding 15 years,

  

	 	(ii)	 to provide a lump sum distribution to such Member, or 

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

  

	 	(iii)	 to provide equal installments payable not less frequently than annually over a period not exceeding 10 years from the date the amount became
payable. 

 Not later than 90 days after the date of the Member’s actual retirement, the
Trustees shall effect any acceptable form of settlement elected by the Member or otherwise made available. If no election is made by the Member, the Trustees shall pay the Member the full value of the Member’s account in a lump sum. 

 

	 	(b)	 Death Benefits - A Member shall cease to be a Member of the Plan upon death prior to the Member’s normal retirement date. A Member shall
have the right by written notice to the Trustees in a form satisfactory to the Trustees to designate a beneficiary or to change a beneficiary, to receive all monies payable upon the death of the Member under the terms of the Plan. If a Member has
filed a designation of beneficiary with the Trustees, and there is no designated beneficiary living at the Member’s death, the Trustees shall pay the death benefit to the estate of the Member in a lump sum. 

Within 90 days of the death of a Member, the beneficiary of such Member shall receive from the Trustees the benefits in a
lump sum based on the sum of the values in such Member’s account at the date of Member’s death. Such values will include the proceeds paid to the Trustees as beneficiaries of any life insurance policies insuring the Member’s life
which the Member had directed the Trustees to purchase on the Member’s behalf. 
  

	 	(c)	 Disability Benefits - In the event of the retirement of the Member due to disability the total sum standing to the Member’s credit shall
immediately vest in the Member. 

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

  

	 	(d)	 Termination of Employment - A Member shall cease to be a Member of the Plan when for any reason the Member leaves the Company’s
employment prior to the normal retirement date, disability or death of the Member. Such Member is herein referred to as a “Terminated Member”. A Terminated Member shall be entitled to receive within 90 days of termination the benefits
based on the vested value of such Member’s account on the termination date, together with the full value of any insurance policies on the Member’s life held by the Trustees for the Member’s benefit. 

The Terminated Member may elect to have the Trustees use the value of the benefit to which the Member is entitled to
provide one of the benefits set out under Section 8(a)(2). 
  

	 	(e)	 Cash Settlement Prior to Termination of Employment (Indicate below which provision applies to the Plan) 

 

	 	þ	 At any time prior to termination of employment, a Member shall be entitled to withdraw the vested value, or a portion thereof, of the Member’s
account on the date of such withdrawal. (variable) 

  

	 	 ̈	 A Member is not entitled to withdraw any benefits under the Plan prior to termination of employment. 

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

  

	9.	LEAVE OF ABSENCE 

 The Company shall, in the event of authorized leave of absence of a Member due to sickness, accident, service in any branch of the Armed Services or otherwise, have the right to determine if the Member
shall continue under the Plan, and any agreement made with the Member shall not be considered as creating a precedent. Each case is to be decided on its own merits by the Company. If the Member’s employment is deemed to have been terminated,
the Member shall be dealt with as set forth in Section 8(d). 
  

	10.	ADMINISTRATION 

 The Trustees shall decide upon all matters of any nature whatsoever in connection with the administration, interpretation or application of the Rules. 

 

	11.	AMENDMENT OR TERMINATION 

 The Company intends to maintain this Plan throughout its corporate existence. However, the Company reserves the right to terminate the Plan at any time in which case the amounts vested in the Members will
be paid to them within 90 days of termination. The benefit will be based on the vested value of each Member’s account as of the date of termination. Such value will include any insurance policies on the Member’s life held by the Trustees
for the Member’s benefit. The Company may also at any time amend these Rules but not so as to affect the amounts then vested in any Member. 

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

 This Plan shall terminate upon the happening of any of the following
events: 
  

	 	(a)	 upon the winding up of the Employer or upon a general assignment by the Employer to or for the benefit of its creditors or upon the Employer being
adjudged bankrupt; 

  

	 	(b)	 upon discontinuance by the Employer if the Trustees should deliver notice to terminate the Plan. 

 

	12.	 ASSIGNMENTS 

 A Member’s right or interest to benefits under the Plan may not be assigned, surrendered, charged or alienated by the Member, either in whole or in part. No trust funds may be made over to a Member
by way of loans or advances. The amounts vested in a Member under the Plan shall not be subject to the claims of the Member’s creditors. 
 In accordance with Section 147(2)(k.1) of the Income Tax Act the following shall also apply. 
 No benefit or loan, other than: 
  

	 	(a)	 a benefit, the amount of which is required to be included in computing the beneficiary’s income, or 

 

	 	(b)	 an amount referred to in Section 147(10) of the Income Tax Act, or 

 

	 	(c)	 a benefit derived from an allocation or a reallocation referred to in Section 147(2) of the Income Tax Act, or 

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

  

	 	(d)	 the benefit derived from the provision of administrative or investment services in respect of the plan, 

which is conditional in any way, on the existence of the plan, may be extended to a beneficiary thereunder or to a person
with whom such beneficiary was not dealing at arm’s length. 
  

	13.	 NOTIFICATION TO MEMBERS 

 The Trustees shall, within 90 days following each anniversary date of the Plan, provide and make known to each Member of the Plan 

 

	 	(a)	 the amount of money credited to the Member’s account during the previous year and 

 

	 	(b)	 the total amount of money that stands to the credit of such Member and the manner of disposition and investment of all such money.

 DEFERRED PROFIT SHARING PLAN RULES 

 
  

  

	14.	 COPY OF THE RULES AND AMENDMENTS 

 A copy or a summary of these Rules will be provided to each Member upon joining the Plan. A copy or summary of any amendment affecting the Members’ benefits will be provided to each Member within 30
days of the effective date of the amendment. 
  

	15.	 PROTECTION OF INSURER 

 Any insurance company issuing policies pursuant to the Terms of this Plan shall not be deemed to be a party to this Plan responsible for its validity. The liability of any insurer is limited to carrying
out the terms of its contracts. An insurer will be entitled to assume that the Trustees of the Plan have full powers to exercise any and all rights under any insurance contracts of which the Trustees are the owners, and the insurer may accept the
signatures of any two Trustees on any application for a life insurance or annuity policy or on any other documents relating to a policy or policies issued under the Plan. The insurer will be fully discharged in acting on the signatures of any two of
the Trustees under the Plan. 
  

							
	 	  	 	  	 	  	(seal)
				
	  
	  		  	per	  	  

	(date)	  		  		  	Signature of Corporate Officer
				
		  		  		  	  

		  		  		  	Title

  
  
 INVESTMENT POLICY 
 The Manufacturers Life Insurance Company

  
  

The Manufacturers Life Insurance Company agrees to accept contributions made under the Policy, to invest those contributions, and to provide benefits in
accordance with the provisions and conditions of this Policy and the Plan. 

 TABLE OF CONTENTS 

 

					
	Title	  	Section	 
		
	 Definitions
	  	 	1	  
		
	 Contributions
	  	 	2	  
		
	 Investment Options
	  	 	3	  
		
	 Benefit Payments
	  	 	4	  
		
	 Transfers
	  	 	5	  
		
	 Miscellaneous Provisions
	  	 	6	  

 Section 1 - Definitions 

 
  
 “Applicable Legislation” means the pension legislation of the applicable province or the Office of the Superintendent of Financial Institutions. It will also mean the Income Tax Act of
Canada, the administrative rules of Canada Customs and Revenue Agency, and any other legislation of Canada or a province or territory thereof, together with any rules, guidelines, regulations or conditions established or prescribed affecting the
Plan. 
 “Business Day” means a day on which our Head Office is open for business. 

“Daily Interest Account” means the portion of the Daily Interest Fund accumulated to the credit of the Policyholder or
Member, as applicable. 
 “Daily Interest Fund” means an account that receives interest on a daily basis.

 “Guaranteed Interest Account” means the portion of the Guaranteed Interest Fund accumulated to the credit of
the Policyholder or Member, as applicable. 
 “Guaranteed Interest Fund” means an account that receives
interest at a guaranteed rate. 
 “Head Office” means the Head Office of Manulife Financial, Canadian Pensions
Operations, Kitchener, Ontario, or any subsequent location. 
 “Member” means a person who enrolls in the Plan
and is entitled to its benefits and privileges.  
 “Plan” means the Employer’s or Plan
Sponsor’s registered pension plan. 
 “Plan Services Agreement” means the Agreement between the
Policyholder and Manulife, outlining the services provided and any fees charged. 
 “Policy Year” means the
period beginning on the Policy’s Effective Date or on a Policy Anniversary Date, as stated in the Application, and ending on the day before the next Policy Anniversary. 
 “Policyholder” means the Employer or Plan Sponsor who completed the application. 
 “Pooled Fund Account” means the number of units of the Pooled Funds credited to the Policyholder or Member, as applicable. 

“Pooled Funds” means the Pooled Funds available under this Policy. 

“Valuation Date” means a date as of which the Pooled Fund(s) will be valued. This date will be a day when both
(i) the Toronto Stock Exchange is open for business, and (ii) a value is available for the underlying assets. Valuation Dates end at 4 p.m. Eastern Time, except in situations where the Toronto Stock Exchange has closed earlier. 

“We, our, us” means The Manufacturers Life Insurance Company.  

“You, your” means the Policyholder. 

  
 1 

 Section 2 - Contributions 

 
  
 You will remit contributions to us as described in the Plan. Contributions must be remitted at least as frequently as required by Applicable Legislation. 

We will allocate contributions to the Guaranteed Interest Account(s), Daily Interest Account or Pooled Fund Account(s) according to
written or electronic direction from the Policyholder, or the Member if applicable. If we don’t receive specific instructions, we allocate the contributions to the Daily Interest Account. 

We will establish a Guaranteed Interest Account, Daily Interest Account and Pooled Fund Accounts for each Member for each type of
contribution made. 
 If contributions are not made for a period of 6 months after the earlier of 

 

	 	(i)	 the due date of the last contribution as indicated in the Plan, or 

 

	 	(ii)	 the end of the previous calendar year, 

 we reserve the right to terminate the Policy. 
 You may terminate the Policy by
notifying us in writing. In either of these events, all contributions will remain under the Policy to provide benefits for each Member in accordance with the terms of the Plan. 

  
 2 

 Section 3 – Investment Options 

 
  
  

	3.1	 Guaranteed Interest Accounts 

 We merge contributions to any Guaranteed Interest Accounts with our general assets. We invest these assets in a widely diversified portfolio including, but not limited to, mortgages and real estate, bonds
and debentures, convertible securities, equities and short term notes as permitted by any governing provincial or federal legislation. 
 We establish the interest rate for a contribution when we deem the contribution to be invested in the Guaranteed Interest Accounts. This rate is credited from the later of the following days: 

 

	 	¡	 the first Business Day we receive the deposit at our Head Office; and 

 

	 	¡	 the first Business Day we receive the deposit information at our Head Office. 

We reserve the right to invest the contribution no later than three business days following the date that we receive any
outstanding required information. 
 Interest will be earned until the guaranteed investment period ends. At the
end of the interest guarantee period a new interest rate is established for another period. We will reinvest the contributions and interest for the same length of time as the previous term, unless you or the Member instructs otherwise. 

For the purposes of Guaranteed Interest Accounts, we determine the Market Value by calculating the deposit plus the
interest from the date of the deposit to the end of the guaranteed period for each deposit. The amount is then discounted to the date specified at the interest rate that would apply to a new deposit to the Guaranteed Interest Account. 

For the purposes of Guaranteed Interest Accounts, we determine the Current Value by accumulating each amount deposited to
a Guaranteed Fund at the guaranteed interest rate from the date of the deposit to the date specified. 
  

	3.2	 Daily Interest Account 

 Contributions directed to a Daily Interest Account begin to earn daily interest on the day we deem the contribution to be invested, at the rate we declare to be in effect on that day. Interest earned will
be credited to the Daily Interest Account monthly. 
  

	3.3	 Pooled Fund Accounts 

 Contributions to Pooled Funds will be kept separate from our general funds, as required by law. We may, at our discretion, hold part of the Pooled Funds in cash or in short term securities. 

Contributions directed to daily valued Pooled Funds will acquire units at the unit value in effect on the later of the
following Valuation Days 
  

	 	¡	 the date we receive your deposit at our Head Office; and 

	 	¡	 the date we receive complete information at our Head Office. 

  
 3 

 Section 3 – Investment Options - continued 

 
  
 This information must be received at our Head Office by our set deadline. If the information is received later, the units will be acquired on the date we receive complete information 

We reserve the right to use the Valuation Date applicable on any of the three business days following the receipt of the required
information. 
 Contributions directed to Pooled Funds valued less frequently than daily are valued on the next Valuation Date
of such Pooled Fund. 
 For the purposes of Pooled Funds, Market Value is the value arrived at by using Valuation Date closing
prices on nationally recognized stock exchanges. However, we may, at our discretion, determine Market Value using an alternate basis. 
 We deduct all charges on the purchase and sale of investments and any taxes from each Pooled Fund on each Valuation Date. 
 The unit value of each Pooled Fund is calculated by dividing the Market Value of the Pooled Fund by the number of units held in the Pooled Fund on each Valuation Date. 

We reserve the right to value any or all of the Pooled Funds more or less frequently at our discretion. 

Pooled Funds 
 We select
all fund managers for the Pooled Funds. We may change fund managers at our discretion without prior notice to you. We reserve the right to close any existing Pooled Funds. We may also offer additional Pooled Funds. We supply you, or the Member if
applicable, with 30 days notice for this change. The notice, written or electronic, will serve as the amendment. We may redeem the units to the Member’s credit in a Pooled Fund which will no longer be available, and allocate the value of these
units to purchase units in another of our Pooled Funds. Our notice will specify: 
  

	 	¡	 the Pooled Fund or Pooled Funds which will no longer be available, 

	 	¡	 the Pooled Fund in which we propose to purchase units, and 

	 	¡	 the date this automatic Inter-account transfer is to be effective. 

You or the Members, as applicable, may request in writing that we make an alternative Inter-account transfer. If we do not receive the
request before the date of the automatic Inter-account transfer, the automatic Inter-account transfer will take place. 

  
 4 

 Section 4 - Benefit Payments 

 
  
  

	4.1	 We use the following values for Benefit Payments, determined at the date of payment: 

 

							
	  

Value used for
  

	  
 Reason for
 Benefit
 Payment
  
	  	  

Guaranteed Interest

Funds
	  	  
 Daily Interest
Funds
	  	  
 Pooled Funds

	  
 Retirement
  
	  	  

Current Balance
	  	  
 Current
Balance
	  	  
 Market Value

	  
 Termination of
 Employment
  
	  	  

Market Value
	  	  
 Current
Balance
	  	  
 Market Value

	  
 Death prior to
 retirement
  
	  	  

Current Balance
	  	  
 Current
Balance
	  	  
 Market Value

	  

Withdrawal of
 Member

voluntary
 contributions

 
	  	  
 Market Value
	  	  

Current Balance
	  	  

Market Value

 We reserve the right to use the Valuation Date applicable to any of the three business days following receipt of the required information. 

  
 5 

 Section 5 - Transfers 

 
  
  

	5.1	 Transfer Type 

 Inter-account 
 Each Member is entitled to a limited number
of Inter-account transfers during each year without charge, as specified in the Plan Services Agreement. We will declare the charge for any additional Inter-account transfers and it will be payable at the time of such transfer. 

An Inter-account transfer will be made on the later of (i) the date you or the Member specifies for the transfer,
and (ii) up to three business days following the date the required information is received to process the request. 
 All Inter-account transfer requests received after 4 p.m. Eastern Time will require an additional Business Day for processing to be completed. 

Additionally, all Inter-account transfers involving the following funds, which invest primarily outside of North America,
and any similar funds that we may add from time to time, will be held for one further, additional Business Day for processing: 
 8172 - Manulife Seamark International Equity Fund 
 8192 -
Manulife International Equity Fund 
 8241 - Manulife Jarislowsky Fraser International Equity Fund 

8251 - Manulife KBSH Pacific Basin Equity Fund 

All Inter-account transfer transactions will be completed using the interest rates and unit values in effect on the day
that the transfer is processed. 
 Policy 

You may transfer Policy funds to another financial carrier or to another policy issued by us if the following provisions
are satisfied: 
  

	 	1.	 You provide us with a written request to transfer the Policy funds and, if applicable, supply evidence that a continuing retirement plan has been
established which has been or will be accepted for registration by Canada Customs and Revenue Agency and by any applicable government pension regulatory authority. 

	 	2.	 You submit all contributions required by the terms of the Plan up to the effective date of the new policy. 

	 	3.	 You provide us with any other information required to complete the transfer. 

Once the provisions are met, we will transfer the accounts to the other depository. 

  
 6 

 Section 5 - Transfers - continued 

 
  
 We use the following values for transfers, determined at the date of transfer: 
  

							
	  

Value used for
  

	  
 Transfer Type
  
	  	  
 Guaranteed Interest
Funds
  
	  	  
 Daily
Interest
 Funds
  
	  	  
 Pooled Funds
  

	  
 Inter-account
  
	  	  
 Market Value

 
	  	  
 Current Balance

 
	  	  
 Market Value
  

	  

Policy
  
	  	  

Adjusted Market Value*
  
	  	  

Current Balance
  
	  	  

Market Value**
  

* The adjusted Market Value of the Guaranteed Interest Accounts is determined by us according to the following formula, less any fees, if applicable:

 Original deposit amount plus accumulated interest X ((1 + i) / (1 + j + .005))n 

 

	“n”	 is the remaining period until maturity 

	“i”	 is the annual rate of interest the original deposit is earning 

	“j”	 is the current rate of interest being offered for Guaranteed Interest Accounts with the same term as the original Guaranteed Interest Account.

 ** The Policy Transfer value from a Pooled Fund Account will be the amount in all Members’ Pooled Fund Accounts on any
date and will be the sum of: 
  

	1.	 The number of the Member’s Pooled Fund units in the Pooled Fund Account, multiplied by the unit value on that day, and

	2.	 Any amounts paid into the Member’s Pooled Fund Account after the preceding Valuation Date that have not purchased units of the Pooled Fund
Account. 

  
 7 

 Section 6 – Miscellaneous Provisions 

 
  
  

	6.1	 Type of Annuity 

 Any annuity to be purchased under this Policy will be determined in accordance with the terms of the Plan, the types of annuity then currently issued by us or any other institution, and any Applicable
Legislation. 
  

	6.2	 Maximum Single Premium for Annuity 

The single premium for any annuity purchased from us under this Policy will not exceed the premium that would be required
on the basis of the Group Annuity Mortality Table for 1971 with Projection Scale D to the year of purchase, with interest at 2.5% per annum, loaded 10% for expenses. We may change the above basis by giving you 30 days notice. 

 

	6.3	 Currency 

 The currency of this Policy is the lawful currency of Canada. 
  

	6.4	 Amendment 

 We reserve the right to amend any provision of this Contract upon providing at least 30 days prior notice to you. We will provide you with a copy of the amendment. 

 

	6.5	 Limitation On Payments 

 We will not pay any amounts out of the Accounts except as otherwise provided in this Policy and except for any payments agreed upon by you and us and approved by any applicable government pension
regulatory authority. 
  

	6.6	 Discontinuance Of Policy 

 This Policy will discontinue when all Accounts under the Policy have been exhausted. 
  

	6.7	 No Assignment 

 Except as may be required under Applicable Legislation and regulations, the rights and interests of a Member and beneficiary under the Policy cannot be assigned, alienated, charged, attached, anticipated,
encumbered or given as security and any transaction to do so will be void. 

  
 8 

 Section 6 - Miscellaneous Provisions - continued 

 
  
  

	6.8	 Instructions and Authorizations 

 From time to time we may offer service initiatives which enable you, the Employer(s) or Member(s) to issue non-written transaction instructions and authorizations to us through the Internet or telephone.
We will consider transaction instructions and authorizations made through the Internet or telephone using the personal identification codes of you, the Employer(s), or a Member, to be as valid and binding as if the requests had been made in writing
by you, the Employer(s), or a Member, as applicable. 
 The provisions under this Policy pertaining to written
requests are also applicable to any requests made through the Internet or telephone. 
 In the event you use the
Internet or telephone transaction processing or other electronic means provided in the future, or permit such use by Members, you hereby agree to release us from liability and agree to hold us harmless and indemnify us from any and all claims by any
person, resulting from intentional or negligent misuse, or fraud committed by you, your agents, servants or employees, Members, or any person who wrongfully gains access as a result of obtaining information necessary to gain access from you, your
agents, servants or employees or a Member, or as a result of any such person failing to keep that information secure. 
  

	6.9	 Restrictions 

 We may, under special circumstances, impose restrictions on maximum withdrawal or transfer amounts, where the withdrawal or restriction may risk the integrity of the fund(s). We may restrict the amount of
the withdrawal and reschedule to a later date. We will advise you in advance, if any restrictions apply. 
  

	6.10	 Contract 

 The Investment Policy, the Plan Services Agreement, and amendments and the Application, a copy of which is attached to this Policy, constitute the entire contract between you and us. 

Only our President or Vice-President has power on our behalf to change, unilaterally amend, modify or waive any provision
of this Policy, and then only in writing. We will not be bound by any promise or representation made by anyone else at any time. 

  
 9

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