Document:

exhibit_10-1.htm

Exhibit 10.1

 

Execution Version

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this “Agreement”) dated June 12th, 2013, by and between Win Global Markets, Inc., a Nevada corporation (the “Company”), and the investors set forth in Schedule A hereto (each, a “Purchaser”).

 

The Company and each Purchaser (collectively herein, the "Parties") agree as follows:

 

ARTICLE 1

PURCHASE AND SALE

 

 1.1  Closing.

 

 (a)  Subject to the terms and conditions of this Agreement, the closing of the transaction contemplated by this Agreement (the "Closing") shall take place concurrently with the execution of this Agreement, at a closing to be held remotely via the exchange of documents and signatures concurrently with the execution of this Agreement or such other time as shall be agreed upon, orally or in writing, by the Purchaser and the Company.

 

 (b)  Securities Purchased. At the Closing the Company will sell and each Purchaser will purchase the following securities of the Company for an aggregate purchase price to be paid by all Purchasers, of US$ 429,522 (four hundred and twenty nine thousand five hundred twenty two US dollars) (the "Purchase Price"), as follows:

 

         (i)  Such number of shares of the Company’s Common Stock $0.001 par value at a price per share of $0.1 (10 US Cents) corresponding to an aggregate purchase price as set forth next to such Purchasers name on Schedule A hereto; and

 

         (ii)  Thirty six (36) months warrant to purchase up to an additional number of shares of the Company’s Common Stock $0.001 par value equal to twenty percent (20%) of the shares purchased by such Purchaser pursuant to sub-Section (i) above, with an exercise price of $ 0.10 (10 US Cents) per share, which will be issued to each Purchaser at the Closing and will be exercisable only after six months from Closing (each, a "Warrant"). No separate consideration shall be paid for the issuance of the Warrant. The Warrant shall be in the form appended hereto as Annex "A" (the shares issuable upon the exercise of the Warrant are sometimes referred to hereinafter as "Warrant Shares" and the Shares and the Warrant Shares are sometime referred to hereinafter as the "Securities").

 

 (c)  Closing Deliveries. Subject to the following provisions of this clause, at or prior to the Closing, the following transactions will take place, all of which shall be deemed to have occurred simultaneously and no transaction shall be deemed to have been completed or any document delivered until all such transactions have been completed and all required documents delivered: (1) each Purchaser shall pay the purchase price set forth next to such Purchaser's name on Schedule A hereto, to the Company, by way of a bank transfer to the Company's account, in immediately available funds, to the bank account of which details are set forth in Schedule B hereto, (2) the Company shall issue and allot each Purchaser, no later than forty five (45) days following the Closing, the applicable number of Shares and the applicable Warrant. The aforementioned issuance shall be effected by delivering to the Purchasers copies of the irrevocable instructions to the Company’s transfer agent, instructing the transfer agent to deliver the Shares via overnight courier or via the Depository Trust Company Deposit Withdrawal Agent Commission System, and delivery of the Warrant (which may initially be in electronic copy, to be followed immediately by the original executed Warrant), in each case in the name of the Purchaser, (3) each Purchaser shall deliver to the Company copies of resolutions taken by its board of directors (or other similar governing body) approving the execution and delivery of this Agreement, and all the transactions contemplated hereunder, and (4) the Company shall deliver to the each Purchaser a copy of resolution taken by its board of directors approving the execution and delivery of this Agreement, and all the transactions contemplated hereunder; notwithstanding the aforesaid it is agreed that (i) US$ 29,522 out of the total Purchase Price shall be paid through set-off of the Purchaser’s Assigned Rights (as defined in the Deed of Assignment of which copy is attached hereto as Schedule 1.1(c)) to receive an amount of US$ 29,522 from the Company and (ii) the Company is holding the sum of US$ 4,000 to the order of the Purchaser such that the cash amount actually to be paid at Closing will be reduced by such sum.

 

  

  

  

 

Execution Version

 

EACH PURCHASER UNDERSTANDS THAT AN INVESTMENT IN THE SECURITIES INVOLVES A HIGH DEGREE OF RISK, AND THAT THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFER AND RESALE. THERE CAN BE NO ASSURANCES THAT THE PURCHASERS WILL RECOVER ALL OR ANY PORTION OF THEIR INVESTMENTS.

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES

 

     2.1  Representations and Warranties of the Company.

 

 (a)  Organization and Qualification.  The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Nevada, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.

 

 (b)  Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby, including the issuance of the Shares and the Warrants hereunder, has been duly authorized by all necessary action on the part of the Company. This Agreement is the valid and binding obligation of the Company enforceable against the Company in accordance with its terms.

 

 (c)  Issuance of the Securities; Registration.  The Shares issued to the Purchasers are duly authorized and, when issued and paid for in accordance with this Agreement, will be duly and validly issued, fully paid and nonassessable. The Warrant Shares, when issued in accordance with the terms of each Warrant, will be validly issued, fully paid and non assessable.

 

 (d)  SEC Reports.  Except as otherwise disclosed in Schedule 2.1(d) hereto, the Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Exchange Act of 1934 (the “Exchange Act”) for at least the one (1) year preceding the date hereof (or such shorter period as the Company was required to do so) (the “SEC Reports”). A copy of the latest Quarterly Report on Form 10-Q filed on May 13th, 2013 is attached hereto as Schedule 2.1(d) (the “Last SEC Report”). As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

  

2

  

 

Execution Version

 

 (e)  Dedicated Account. The Purchase Price, in its entirety, shall be deposited in a dedicated bank account (the "Dedicated Account"); the Company shall, upon Closing, update the signatory rights in the Dedicated Account as follows: (i) any payment of more than 10,000 NIS out of the Dedicated Account shall require the joint signature of the Company's CEO, the Company's CFO and Mr. Ron Lubash; (ii) any payment of 10,000 NIS or less out of the Dedicated Account shall require the joint signature of the Company's CEO and the Company's CFO.

 

 (f)  Use of Proceeds. The proceeds of the Purchase Price shall be used only in order to finance the Company's ongoing activities pursuant to the Company's business plan and budget as approved by its board of directors from time to time. It is further acknowledged that the proceeds of the Purchase Price shall not be used for the repayment of any existing debts of the Company.

 

 (g)  Material Adverse Changes since May 13th, 2013.  Except as listed in Schedule 2.1(e) since May 13th, 2013, and except as otherwise reported by the Company in reports filed with the U.S. Securities and Exchange Commission, there has not been:

 

(i)             any material adverse change in the assets, liabilities, financial condition, business or prospects of the Company, from that reflected in the Last SEC Report;

 

(ii)            any damage, destruction or loss, materially affecting the assets, business, properties, condition (financial or otherwise) of the Company;

 

(iii)           any waiver or compromise by the Company of a material right or of a material debt owed to it;

 

(iv)           any satisfaction or discharge of any lien, claim or encumbrance or payment of any obligation by the Company, except in the ordinary course of business;

 

(v)            any material change or amendment to a material contract or arrangement by which the Company or any of their respective assets or properties is bound or subject;

 

(vi)           any material change in any compensation arrangement or agreement with any employee, officer, director or shareholder of the Company;

 

(vii)          any sale, assignment or transfer of any and all intellectual property of the Company, including but not limited to, whether or not patentable, including without limitation, all patents, trademarks, service marks, trade names, copyrights, trade secrets, information, licenses, proprietary rights, processes and concepts;

 

(viii)         any resignation or termination of employment of any officer or key employee of the Company; and the Company, to the best of its knowledge, does not know of any impending resignation or termination of employment of any such officer or key employee;

 

(ix)            receipt of written notice that there has been a loss of, or material order cancellation by, any major customer or business associate of the Company;

 

(x)            any mortgage, pledge, transfer of any interest or equity of any individual or entity (including without limitation any right to acquire, option, or right of pre-emption, or right of first refusal) or any mortgage, charge, pledge, lien, or assignment, or any other encumbrance or security interest or arrangement of whatsoever nature over or in the relevant property in, or lien, created by the Company and/or by its subsidiary, with respect to any of their respective material properties or assets;

 

  

3

  

 

Execution Version

 

(xi)            any loans or guarantees made by the Company to or for the benefit of their respective employees, officers or directors, or any members of their respective immediate families, other than travel advances and other advances made in the ordinary course of its business;

 

(xii)           any declaration, setting aside or payment or other distribution in respect of the share capital of the Company or any direct or indirect redemption, purchase or other acquisition of any of such share capital by the Company;

 

(xiii)          any other event or condition of any character that might have a material adverse affect on the assets, properties, financial condition, operating results or business of the Company (as such business is presently conducted and as it is proposed to be conducted); or

 

(xiv)         any agreement or commitment by the Company to do any of the things described in this Section 2.1(e).

 

     2.2  Representations and Warranties of each Purchaser.  Each Purchaser, separately and not jointly, hereby represents and warrants as follows:

 

 (a)  Organization; Authority.  Such Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or similar action on the part of the Purchaser.  This Agreement has been duly executed by the Purchaser, and is the valid and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any governmental authority, including the U.S. Securities and Exchange Commission, is required on the part of such Purchaser in connection with the execution and delivery of this Agreement, or the offer, sale, and delivery of the Securities as contemplated by this Agreement except for the filing of applicable beneficial ownership forms under Section 16 of the Exchange Act and the filing of schedule 13D or 13G as applicable, which such Purchaser undertake to make, if applicable.

 

 (b)  Own Account; Investment Intent.  Each Purchaser is acquiring the Securities as principal for its own account for investment purposes only and not and will not acquire the Shares, the Warrant or the Warrant Shares with a view to or for distributing or reselling them in violation of the Securities Act of 1933, as amended (the “Securities Act”) or any applicable state securities law, has no present intention of distributing any of them in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding their distribution of such Securities. Each Purchaser understands that the Securities included therein are “restricted securities” and have not been registered under the Securities Act or any applicable state securities laws. Each Purchaser is acquiring the Securities and each part thereof hereunder in the ordinary course of its business.

 

 (c)  Regulation S.  Each Purchaser makes the following representations related to Regulation S under the Securities Act: (i) it is not a “U.S. Person” as that term is defined in Rule 902 of Regulation S under the Securities Act; and received all communications relating to the issuance of the Shares, and executed all documents relating thereto, outside the United States; and (ii) it agrees to resell the Shares, the Warrant and the Warrant Shares only in accordance with the provisions of Regulation S, or pursuant to another available exemption from the registration requirements of the Securities Act, and further agrees not to engage in hedging transactions with regard to such securities unless in compliance with the Securities Act.

 

  

4

  

 

Execution Version

 

 (d)  Experience of Such Purchaser.  The Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Each Purchaser is able to bear the economic risk of an investment in the Securities (and each part thereof) and, at the present time, is able to afford a complete loss of such investment.

 

 (e)  Opportunity to Conduct Due Diligence.  Each Purchaser was granted the opportunity to conduct, and has conducted, due diligence prior to entering into the transactions contemplated by this Agreement. No offering memorandum or similar disclosure document has been prepared in connection with the sale of the Securities.  Each Purchaser has read this Agreement and is familiar with the terms of the Securities. In making the decision to purchase the Securities, each Purchaser and its advisors have, prior to any sale to such Purchaser, been given access and the opportunity to examine all books and records of the Company, all contracts and documents relating to the Company, and all filings made by the Company with the U.S. Securities and Exchange Commission,  and an opportunity to ask questions of, and to receive answers from, the Company and to obtain any additional information necessary to verify the accuracy of the information provided to such Purchaser. Each Purchaser and its advisors have been furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities that have been requested. The only representations and warranties being given to each Purchaser by the Company, express or implied, at law or in equity, with respect to the Company, the Securities and\or the Company's business, are as explicitly contained in this Agreement.

 

ARTICLE 3

OTHER AGREEMENTS OF THE PARTIES

 

     3.1  Publicity.  The Parties agree that this Agreement and the transactions contemplated hereby will remain confidential until the Company files a Form 8-K or any other report with the U.S. Securities and Exchange Commission disclosing this Agreement.  The Purchaser agrees not to effect any purchase or sale of the securities of the Company until after such filing is made.

 

     3.2  Transfer Restrictions.

 

 (a)  Each Purchaser hereby acknowledges that the Securities and any part thereof may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Shares, Warrant or Warrant Shares other than pursuant to an effective registration statement or Rule 144, to the Company or to an affiliate of such Purchaser or in connection with a pledge, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of such opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Shares, Warrant or the Warrant Shares under the Securities Act. Unless the transfer of the Warrant has been registered, no Warrant may be transferred to any person that is not an “accredited investor.”

 

  

5

  

 

Execution Version

 

 (b)  Each Purchaser agrees to the imprinting, so long as is required, of a legend on any of the Shares, Warrant and Warrant Shares in the following form:

 

[THESE SHARES] [THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT] HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

     3.3  Non Compete. Each Purchaser undertakes that for so long as it is a shareholder of the Company and for a period of twelve (12) months thereafter, it shall: (i) not engage in any activity that directly and\or indirectly competes with the business of Company, (ii) not hold ownership interest in any firm or corporation that directly and\or indirectly competes with the Company, other than passive holdings representing less than five percent (5%) of any such firm or corporation, and (iii) refrain from any potential conflict of interests with the Company.

 

     3.4  Confidentiality. Subject to applicable law, each Party agrees to keep this Agreement in strict confidence and that it shall not, without the prior written consent of the other Party, disclose any information relating to the other Party other than disclosure to the representatives and\or advisors of such Party, on a "need to know" basis or as required under applicable law. For the avoidance of doubt, the aforesaid shall not include any information which: (a) is or becomes generally available to the general public other than as a result of a breach of an undertaking hereunder, or (b) is or becomes available to a Party through a disclosure by a third party.

 

ARTICLE 4

MISCELLANEOUS

 

     4.1  Fees and Expenses. Each Party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such Party in connection with this Agreement.  Each Purchaser acknowledges that the Company may pay a transaction fee to finders.

 

     4.2  Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or by email to the email address set forth on the signature page or (b) upon actual receipt by the Party to whom such notice is required to be given.

 

     4.3  Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their successors.  This Agreement is not assignable by either Party.

 

  

6

  

 

Execution Version

 

     4.4  Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York.  Each Party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a Party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each Party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Agreement).

 

     4.5  Survival of Representations.  Each Purchaser agrees that all of the warranties, representations acknowledgments, confirmations, covenants and promises made in this Agreement shall survive its execution and delivery.

 

     4.6  Changes in Representations.  Each Purchaser agrees to notify the Company immediately of any change in the representations, warranties or information pertaining to the Purchaser contained herein.

 

[Signature page immediately follows]

 

  

7

  

 

Execution Version

 

IN WITNESS WHEREOF, the Parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
WIN GLOBAL MARKETS, INC.

 

	
By: /s/ Shimon Citron

 

Name: Shimon Citron

Title: CEO

 

Office Address: 92 Vandam St.,                                   

New York, NY 10012, USA

 

Fax No. 1-212-222-3779

  

8

  

 

Execution Version

 

Schedule A

 

	
Name of Purchaser

	
Address

	
Applicable Purchase Price

	
Number of Shares Issued

	
Number of Warrant Shares Issued

	
Signature

	
RICX Investments Ltd

	
Anemomylos Office Building, 4th Floor Office 401, 8 Michael Karaolis Street, 1095 Nicosia, Cyprus

	
US$ $429,522

	
4,295,220

	
859,044

	

/s/ Alex Havlicek

By: Alex Havlicek

Title: Director

 

  

9

  

 

Execution Version

 

Schedule B

Bank Details

 

Mercantile Bank

Branch 672

Azrieli Center 7, Tel Aviv, Israel

Account number: 

SWIFT:

IBAN :

 

  

10

  

 

Execution Version

 

Schedule 1.1(c)

Deed of Assignment

 

	
  

	
1.

	
Reference is made to that certain Finance Agreement entered into on or upon January 27th, 2013 by JKM Management Ltd (the "Assignor"), Mr. Shimon Citron (herein "Citron") and Win Global Markets Inc. (herein "Company") (the "Loan Agreement").

 

	
  

	
2.

	
The Assignor hereby irrevocably and unconditionally assigns, transfers and conveys all the rights conferred thereon pursuant to the Loan Agreement (the "Assigned Rights"), with respect to a loan of which outstanding balance (principal and interest) as of the date hereof is agreed at US$ 29,522 (twenty nine five hundred and twenty two US dollars), to RICX Investments Ltd (herein: "RICX") in consideration, together with a cash payment of US$ 966 (nine hundred sixty six US dollars) (the "Cash Payment"), for 25 (twenty-five) non assessable Ordinary Shares of RICX, each with a par value of EUR 1.00, to be issued to Mr. Ron Lubash as of the date hereof, being fully paid and free and clear of any lien, mortgage, pledge or any other encumbrance (the "Issued Shares").

IN WITNESS WHEREOF, this Deed of Assignment has been executed by Assignor and delivered on June 12th, 2013.

 

	 	/s/ Ron Lubash	 
	 	
Assignor: JKM Management Ltd.

	 
	 	
By: Rob Lubash

Title: Director

	 

Agreement

We hereby confirm our agreement with the above Deed of Assignment and the assignment contemplated thereby, and undertake to issue the Issued Shares as contemplated above, in consideration for the Assigned Rights, which Assigned Rights together with the Cash Payment shall be the sole conclusive and comprehensive consideration for the issuance of the Issued Shares.

	 	
/s/ Alex Havlicek

	 
	 	
Assignee: RICX Investments Ltd

	 
	 	
By: Alex Havlicek

Title: Director

	 

 

Confirmation

We hereby confirm our agreement with the above Deed of Assignment and the assignment contemplated thereby.

 

	 	
/s/ Shimon Citron

	 
	 	
Company: Win Global Markets Inc

	 
	 	
By: Shimon Citron

Title: CEO

	 

 

  

11

  

 

Execution Version

 

Schedule 2.1(d)

Last Sec Report

The contents of this Schedule 2.1(d) is incorporated by reference from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, filed with the Securities and Exchange Commission on May 13, 2013.

 

  

12

  

 

Execution Version

 

Schedule 2.1(e)

The Company has been addressed by regulators with certain questions and enquiries. The Company believes that it is in full compliance with applicable law and cooperates with such regulators.

 

  

13

  

 

Execution Version

 

Annex A

Warrant

The contents of this Annex A is incorporated by reference from Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on June 14, 2013.

 

14EX-10.1

 Exhibit 10.1 
 NORDSTROM, INC. 
 2010 EQUITY INCENTIVE PLAN 

AS AMENDED FEBRUARY 27, 2013 
 ARTICLE 1. INTRODUCTION 
 The purpose of the Plan is to promote the
long-term success of the Company and its Subsidiaries. Specific objectives are intended to encourage the attraction and retention of Employees and Nonemployee Directors, focus such individuals’ results on the Company’s critical, long-range
goals and align such individuals’ interests with those of the Company’s shareholders. 
 The Plan seeks to achieve
this purpose by providing for Awards in the form of Options (which may constitute incentive stock options (ISOs) or nonqualified stock options (NSOs)), stock appreciation rights (SARs), Unrestricted Shares, Restricted Shares, Restricted Stock Units
and Performance Share Units. 
 The Plan shall be governed by, and construed in accordance with, the laws of the State of
Washington (except their choice of law provisions). 
 ARTICLE 2. ADMINISTRATION 

2.1 Committee Composition. The Committee shall administer the Plan. The Committee shall consist exclusively of two (2) or more
Directors of the Company, who shall be appointed by the Board. 
 2.2 Committee Responsibilities. The Committee, in its
absolute and sole discretion, shall (a) select the Employees and Nonemployee Directors who are to receive Awards under the Plan, (b) determine the type, number, vesting requirements and other features and conditions of such Awards,
(c) interpret the Plan and (d) make all other decisions relating to the operation of the Plan. The Committee may adopt such rules or guidelines as it deems appropriate to implement the Plan. The Committee may delegate its authority
hereunder to one or more Subcommittees, to the extent permitted under Code section 162(m), the Treasury Regulations thereunder and any applicable exchange rules; actions taken by any Subcommittee shall be subject to review by the full Committee. The
Committee’s determinations under the Plan shall be final and binding on all persons. 
 2.3 Committee for
Non-Officer/Non-Director Awards. The Board may also appoint a secondary committee of the Board or a senior executive officer to administer the Plan with respect to Employees who are not considered officers or Directors of the Company under
Section 16 of the Exchange Act. That committee or senior executive officer may grant Awards under the Plan to such Employees and may determine all features and conditions of such Awards. Within the limitations of this Section 2.3, any
reference in the Plan to the Committee shall include such secondary committee or senior executive officer, as the case may be. 

 2.4 Leadership Benefits Powers and Duties. Until such time as the Committee shall
modify, revoke or rescind such authority, the Company’s Leadership Benefits department, or such other Company department as the Committee shall designate, has the powers and duties set forth below. Determinations made by the Leadership Benefits
department (or other department) under this Section 2.4 shall be final and binding on all persons, but may, in the Committee’s absolute and sole discretion, be reviewed by the Committee. The powers and duties delegated by the Committee
hereunder are to: 
 (a) work with Plan service providers to ensure the effective administration of the Plan; 

(b) determine whether a Participant’s disability, as defined by a qualified medical professional acceptable to the Company’s
Leadership Benefits department (or other department), qualifies as Disability as defined under the Plan; and 
 (c) perform any
and all tasks, duties, and responsibilities delegated by the Company or the Committee. 
 The Company’s Leadership Benefits department (or
other department) has authority to interpret the terms of the Plan and any Award in carrying out the powers and duties as set forth above. 

ARTICLE 3. SHARES AVAILABLE FOR AWARDS 
 3.1 Basic Limitation. Shares issued pursuant to the Plan shall be authorized but unissued shares. The aggregate number of Shares available for Awards of Options, SARs, Unrestricted Shares,
Restricted Shares, Restricted Stock Units or Performance Share Units granted under the Plan shall not exceed (a) 27,600,000 Shares plus (b) the additional shares of Common Stock described in Section 3.3. The limitations of this
Section 3.1 and Sections 3.2 and 3.3 shall be subject to adjustment pursuant to Article 12. The aggregate number of Shares available for issuance as Plan Awards shall be reduced by 1.6 (one point six) Shares for each Share delivered in
settlement of any Award of Unrestricted Shares, Restricted Shares, Restricted Stock Units or Performance Share Units, and by 1 (one) Share for each Share delivered in settlement of any Option Award or SAR. Awards that are required to be settled in
cash will not reduce the number of Shares available for delivery under the Plan. 
 3.2 Additional Shares. If any Shares
covered by an Award of Options, SARs, Restricted Shares, Restricted Stock Units or Performance Share Units terminate, lapse or are forfeited or cancelled, or such Award is otherwise settled without the delivery of the full number of Shares
underlying the Award, then the Shares covered by such Award, or to which such Award relates, to the extent of any such forfeiture, termination, lapse, cancellation, etc., shall again be, or shall become, available for issuance under the Plan;
provided, however, that Shares (a) delivered in payment of the exercise price of an Award, (b) not issued upon the net settlement or net exercise of SARs, or (c) delivered to or withheld by the Company to pay withholding taxes related
to an Award, shall not become available again for issuance under this Plan. Shares that again become available for issuance under the Plan pursuant to this Section 3.2 shall be added to the number of Shares available under Section 3.1 in
the same ratios as applied to them at the time 

  
 2 

 
they were originally granted (e.g., 1.6 (one point six) Shares for each Share attributable to previously granted Awards of Restricted Shares, Restricted Stock Units or Performance Share Units and
1 (one) Share for each Share attributable to previously granted Option Awards or SARs). 
 3.3 Additional Shares from Prior
Plan. Shares available for issuance under the Plan shall be increased by any shares of Common Stock subject to outstanding awards under the Prior Plan on the effective date of the Plan, May 18, 2010, that later cease to be subject to such
awards for any reason other than the exercise or vesting of such awards (as the case may be), including any amounts withheld from such awards by the Company for taxes on the awards, which Shares shall, as of the date such Shares cease to be subject
to such awards, cease to be available for grant and issuance under the Prior Plan, but shall be available for issuance under the Plan under Section 3.1. However, this Section 3.3 specifically excludes Common Stock subject to outstanding
awards granted as Incentive Stock Options under the Prior Plan; no shares of Common Stock subject to such Prior Plan Incentive Stock Option awards shall again become available for issuance under the Plan. 

ARTICLE 4. ELIGIBILITY 

4.1 Awards. Employees and Nonemployee Directors shall be eligible for the grant of Awards of NSOs, SARs, Unrestricted Shares,
Restricted Shares, Restricted Stock Units or Performance Share Units. 
 4.2 Incentive Stock Options. Only Employees who
are common-law employees of the Company or a Subsidiary shall be eligible for the grant of ISOs. In addition, an Employee who owns more than ten percent (10%) of the total combined voting power of all classes of outstanding stock of the Company
or any of its Subsidiaries shall not be eligible for the grant of an ISO unless the requirements set forth in section 422(c)(6) of the Code are satisfied. 
 ARTICLE 5. OPTIONS 
 Options granted under the Plan are subject to the following terms and
conditions: 
 5.1 Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option
Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The Stock Option Agreement shall specify whether the
Option is an NSO or an ISO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. 
 5.2 Number of Shares. Each Stock Option Agreement shall specify the number of shares of Common Stock subject to the Option, which shall be subject to adjustment in accordance with Article 12.
Options granted to any Employee in a single fiscal year of the Company shall not cover more than 500,000 shares of Common Stock. Prior to exercise, holders of Options shall have no right to dividend equivalents. The limitation set forth in the
preceding sentence shall be subject to adjustment in accordance with Article 12. 

  
 3 

 5.3 Exercise Price. Each Stock Option Agreement shall specify the Exercise Price;
provided that the Exercise Price under an Option shall in no event be less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock on the date of grant. 

5.4 Exercisability and Term. Each Stock Option Agreement shall specify the date or event when all or any installment of the Option
is to become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term shall in no event exceed ten (10) years from the date of grant. A Stock Option Agreement may provide for accelerated
exercisability in the event of the Optionee’s Disability, death or Retirement and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service. Options may be granted in combination with
SARs, and such an Award may provide that the Options will not be exercisable unless the related SARs are forfeited. 
 5.5
Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, in a manner that meets the requirements of Code Section 409A, that such Option shall become exercisable as to all or part of the
shares of Common Stock subject to such Option in the event that the Optionee experiences a Qualifying Termination within twelve (12) months following a Change in Control. However, in the case of an ISO, the acceleration of exercisability shall
not occur without the Optionee’s written consent. In addition, acceleration of exercisability may be required pursuant to Article 12. 

ARTICLE 6. PAYMENT FOR OPTION SHARES 
 6.1 General Rule. The entire Exercise Price of shares of Common Stock issued upon exercise of Options shall be payable in cash or cash equivalents at the time when such shares of Common Stock are
purchased, except as follows: 
 (a) In the case of an ISO granted under the Plan, payment shall be made only pursuant to the
express provisions of the applicable Stock Option Agreement. The Stock Option Agreement may specify that payment may be made in any form(s) described in this Article 6. 
 (b) In the case of an NSO, the Committee may at any time accept payment in any form(s) described in this Article 6. 
 6.2 Stock Swap. To the extent specifically provided in an Option Agreement, all or any part of the Exercise Price may be paid by surrendering, or attesting to the ownership of, shares of Common
Stock that are already owned by the Optionee. Such shares of Common Stock shall be valued at their Fair Market Value on the date when the new shares of Common Stock are purchased under the Plan. 

6.3 Exercise/Sale. To the extent that this Section 6.3 is applicable, all or any part of the Exercise Price and any
withholding taxes may be paid by delivering (in a form prescribed by the Company) an irrevocable direction to a securities broker approved by the Company to sell all or part of the shares of Common Stock being purchased under the Plan and to deliver
all or part of the sales proceeds to the Company. 

  
 4 

 6.4 Exercise/Pledge. To the extent that this Section 6.4 is applicable, all or
any part of the Exercise Price and any withholding taxes may be paid by delivering (in a form prescribed by the Company) an irrevocable direction to pledge all or part of the shares of Common Stock being purchased under the Plan to a securities
broker or lender approved by the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company. 
 ARTICLE
7. STOCK APPRECIATION RIGHTS 
 SARs granted under the Plan are subject to the following terms and conditions: 

7.1 SAR Agreement. Each SAR granted under the Plan shall be evidenced by an SAR Agreement between the Participant and the Company.
Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical. 

7.2 Number of Shares. Each SAR Agreement shall specify the number of shares of Common Stock to which the SAR pertains and shall
provide for the adjustment of such number in accordance with Article 12. SARs granted to any Participant in a single calendar year shall in no event pertain to more than 500,000 shares of Common Stock. The limitation set forth in the preceding
sentence shall be subject to adjustment in accordance with Article 12. 
 7.3 Exercise Price. Each SAR Agreement
shall specify the Exercise Price; provided that the Exercise Price under an SAR shall in no event be less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock on the date of grant. 

7.4 Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become
exercisable. The SAR Agreement shall also specify the term of the SAR; provided, however, that the term shall in no event exceed ten (10) years from the date of grant. An SAR Agreement may provide for accelerated exercisability in the event of
the Optionee’s Disability, death or Retirement and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service. SARs may be granted in combination with Options, and such an SAR
Agreement may provide that the SARs will not be exercisable unless the related Options are forfeited. 
 7.5 Effect of Change
in Control. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR Agreement shall also specify the term of the SAR; provided, however, that the term shall in no event exceed ten
(10) years from the date of grant. An SAR Agreement may provide for accelerated exercisability in the event of the Optionee’s Disability, death or Retirement and may provide for expiration prior to the end of its term in the event of the
termination of the Optionee’s Service. SARs may be granted in combination with Options, and such an SAR Agreement may provide that the SARs will not be exercisable unless the related Options are forfeited. 

  
 5 

 7.6 Exercise of SARs. Upon exercise of an SAR, the Participant (or any person having
the right to exercise the SAR after his or her death) shall receive from the Company (a) shares of Common Stock, (b) cash or (c) a combination of shares of Common Stock and cash, as the Committee shall determine. The amount of cash
and/or the Fair Market Value of shares of Common Stock received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market Value (on the date of surrender) of the shares of Common Stock subject to the SARs exceeds
the Exercise Price. 
 ARTICLE 8. UNRESTRICTED SHARES 
 Unrestricted Shares granted under the Plan are subject to the following terms and conditions: 
 8.1 Unrestricted Shares. The Committee may grant up to 5% of the total shares approved for issuance under the Plan), as shares of Common Stock that have no restrictions. Such Unrestricted Shares
shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. In no event shall the number of Unrestricted Shares that are granted to any Participant in a single fiscal year
exceed 100,000 Shares, subject to adjustment in accordance with Article 12. For purposes of this Section 8.1, each Unrestricted Share granted under Section 3.1 shall reduce the foregoing limit by one (1) Share. 

8.2 Payment for Awards. Unrestricted Shares may be granted under the Plan for such consideration consisting of any tangible or
intangible property or benefit to the Company as the Committee may determine, including cash, promissory notes, services performed and contracts for services to be performed. 
 ARTICLE 9. RESTRICTED SHARES 
 Restricted Shares granted under the Plan are subject to the
following terms and conditions: 
 9.1 Restricted Share Agreement. Each grant of Restricted Shares under the Plan shall
be evidenced by a Restricted Share Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The
provisions of the various Restricted Share Agreements entered into under the Plan need not be identical. 
 9.2 Payment for
Awards. Restricted Shares may be granted under the Plan for such consideration consisting of any tangible or intangible property or benefit to the Company as the Committee may determine, including cash, promissory notes, services performed and
contracts for services to be performed. 
 9.3 Vesting Conditions. Each Award of Restricted Shares shall be subject to
vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Share Agreement. If the only restriction on an Award of Restricted Shares is vesting based on the lapse of time, the minimum
period for full vesting shall be three (3) years. The Committee may include among such conditions the requirement that the performance of the 

  
 6 

 
Company or a business unit of the Company for a Performance Cycle equal or exceed a target determined in advance by the Committee. Such target shall be based on any one or combination of the
Performance Criteria. 
 With respect to Restricted Shares that are subject to performance-based vesting conditions and are
intended to meet the qualified performance-based compensation requirements of Code Section 162(m): 
 (a) The Committee
shall identify such conditions not later than the ninetieth (90th) day following the commencement of the applicable Performance Cycle and before twenty-five percent (25%) of such Performance Cycle has elapsed; and 

(b) The Committee shall certify in writing prior to payout that such conditions and any other material terms were in fact satisfied.
Approved minutes of a meeting of the Committee may be treated as such written certification. In no event shall the number of Restricted Shares which are subject to performance-based vesting conditions and which are granted to any Participant in a
single fiscal year exceed 500,000 Shares, subject to adjustment in accordance with Article 12. 
 If the Participant’s
employment with the Company or Subsidiary is terminated before the end of a Performance Cycle for any reason other than Disability, death or Retirement, the Participant shall forfeit all rights with respect to any Restricted Shares that were being
earned during the Performance Cycle. The Committee, in its absolute and sole discretion, may establish guidelines providing that if a Participant’s employment is terminated before the end of a “Performance Cycle” by reason of
Disability, death or Retirement, the Participant shall be entitled to a prorated payment with respect to any Restricted Shares that were being earned during the Performance Cycle, as determined at the end of such Performance Cycle. A Restricted
Share Agreement may provide for accelerated service-based vesting in the event of the Participant’s Disability, death or Retirement (provided that, with respect to accelerated vesting in the event of Retirement, such Restricted Share Agreement
shall include specific provisions regarding any tax withholding requirements, as required). The Committee may determine, at the time of granting Restricted Shares or thereafter, that all or part of such Restricted Shares shall become vested in the
event that the Participant experiences a Qualifying Termination within twelve (12) months following a Change in Control. With respect to Restricted Shares that are subject to performance-based vesting criteria, the underlying Restricted Share
Agreement may provide for deemed satisfaction of the Award’s performance-based vesting conditions in the event of a Qualifying Termination within twelve (12) months following a Change in Control, to the extent consistent with the
requirements of Code section 162(m) and the Treasury Regulations promulgated thereunder. 
 9.4 Voting and Dividend
Rights. The holders of Restricted Shares granted under the Plan shall have the voting, dividend and other rights as set forth in their Restricted Share Agreement, and may have the same voting, dividend and other rights as the Company’s
other shareholders. Any dividends paid on Restricted Shares shall be paid at the dividend payment date, in cash or in shares of unrestricted Common Stock having a Fair Market Value equal to the amount of such dividends. Common Stock distributed in
connection with a stock split or stock dividend, and distributed as a dividend, shall be subject to restrictions and a risk of forfeiture to the same extent as the Restricted Shares with respect to which such Common Stock has been distributed.

  
 7 

 ARTICLE 10. RESTRICTED STOCK UNITS 
 Restricted Stock Units granted under the Plan are subject to the following terms and conditions: 
 10.1 Restricted Stock Units. Restricted Stock Units are designated in shares of Common Stock. 
 10.2 Restricted Stock Unit Agreement. Each grant of Restricted Stock Units under the Plan shall be evidenced by a Restricted Stock Unit Agreement between the recipient and the Company. Such
Restricted Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms of the applicable Restricted Stock Unit Agreement that are not inconsistent with the Plan. The provisions of the various Restricted
Stock Unit Agreements entered into under the Plan need not be identical. 
 10.3 Payment for Awards. To the extent that
an Award is granted in the form of Restricted Stock Units, no cash consideration shall be required of the Award recipients. 

10.4 Vesting Conditions. Each Award of Restricted Stock Units shall be subject to vesting. Vesting shall occur, in full or in
installments, upon satisfaction of the conditions specified in the Restricted Stock Unit Agreement. If the only restriction on an Award of Restricted Stock Units is vesting based on the lapse of time, the minimum period for full vesting shall be
three (3) years. The Committee may include among such conditions the requirement that the performance of the Company or a business unit of the Company for a Performance Cycle equal or exceed a target determined in advance by the Committee. Such
target shall be based on any one or combination of the Performance Criteria. 
 With respect to Restricted Stock Units that are
subject to performance-based vesting conditions and are intended to meet the qualified performance-based compensation requirements of Code Section 162(m) and are granted to Participants who have Covered Employees under Code Section 162(m):

 (a) The Committee shall identify such conditions not later than the ninetieth (90th) day following the commencement of the applicable Performance
Cycle, and before twenty-five percent (25%) of such Performance Cycle has elapsed; and 
 (b) The Committee shall certify
in writing prior to payout that such conditions and any other material terms were in fact satisfied. Approved minutes of a meeting of the Committee may be treated as such written certification. 

In no event shall the number of Restricted Stock Units which are subject to performance-based vesting conditions and which are granted to
any Participant in a single fiscal year exceed 500,000, subject to adjustment in accordance with Article 12. 

  
 8 

 If the Participant’s employment with the Company or Subsidiary is terminated before the
end of a Performance Cycle for any reason other than Disability, death or Retirement, the Participant shall forfeit all rights with respect to any Restricted Stock Units that were being earned during that Performance Cycle. The Committee, in its
absolute and sole discretion, may establish guidelines providing that if a Participant’s employment is terminated before the end of a Performance Cycle by reason of Disability, death or Retirement, the Participant shall be entitled to a
prorated payment with respect to any shares of Restricted Stock Units that were being earned during the Performance Cycle, as determined at the end of such Performance Cycle. A Restricted Stock Unit Agreement may provide for accelerated
service-based vesting in the event of the Participant’s Disability, death or Retirement (provided that, with respect to accelerated vesting in the event of Retirement, such Restricted Stock Unit Agreement’s accelerated vesting provisions
shall comply with the requirements of Code Section 409A). The Committee may determine, at the time of granting Restricted Stock Units or thereafter, that all or part of such Restricted Stock Units shall become vested in the event that the
Participant experiences a Qualifying Termination within twelve (12) months following a Change in Control. With respect to Restricted Stock Units that are subject to performance-based vesting criteria, the underlying Restricted Stock Unit
Agreement may provide for deemed satisfaction of the Award’s performance-based vesting conditions in the event of a Qualifying Termination within twelve (12) months following a Change in Control, to the extent consistent with the
requirements of Code section 162(m) and the Treasury Regulations promulgated thereunder. 
 10.5 Dividend Rights. Shares
underlying an Award of Restricted Stock Units shall not be entitled to dividends or dividend equivalents with respect to such Restricted Stock Units except to the extent otherwise provided under a Restricted Stock Unit Agreement. If a Restricted
Stock Unit Agreement includes rights to dividends or dividend equivalents, an amount equal to the dividends that would have been paid if the Restricted Stock Units had been issued and outstanding Shares of Common Stock as of the record date for the
dividends shall be paid to the holder of such Restricted Stock Units in cash, subject to applicable withholding taxes unless otherwise determined by the Committee. Any dividend equivalents payable pursuant to this Section 10.5 shall be paid no
later than March 1 of the calendar year after the calendar year in which the applicable dividend record date occurs, except as otherwise provided in the applicable Restricted Stock Unit Agreement. 

10.6 Form and Time of Settlement of Restricted Stock Unit Awards. Settlement of vested Restricted Stock Units
may be made in the form of (a) cash, (b) shares of Common Stock or (c) any combination of both, as determined by the Committee. For the avoidance of doubt, settlement of vested Restricted Stock Units in shares of Common Stock shall
not be considered an Award of Unrestricted Shares under Article 8. Methods of converting Restricted Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of shares of Common Stock over a series of
trading days. Vested Restricted Stock Units shall be settled in a lump sum before the later of (i) two and one half
(21/2) months after the end of the Company’s
fiscal year during which all vesting conditions applicable to the Restricted Stock Units have been satisfied or have lapsed or (ii) March 15 following the calendar year in which all vesting conditions applicable to the Restricted Stock
Units have been satisfied or have lapsed. Until an Award of Restricted Stock Units is settled, the number of such Restricted Stock Units shall be subject to adjustment pursuant to Article 12. 

  
 9 

 10.7 Creditors’ Rights. A holder of Restricted Stock Units shall have no rights
other than those of a general creditor of the Company. Restricted Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Restricted Stock Unit Agreement. 

ARTICLE 11. PERFORMANCE SHARE UNITS 

Performance Share Units granted under the Plan are subject to the following terms and conditions: 

11.1 Performance Share Units. Performance Share Units are designated in shares of Common Stock. 

11.2 Agreement. Each grant of Performance Share Units under the Plan shall be evidenced by an Agreement between the recipient and
the Company, shall be subject to all applicable terms of the Plan, and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Performance Share Unit Agreements entered into under the Plan need not be
identical. Performance Share Units may be granted in consideration of a reduction in the recipient’s other compensation. 

11.3 Payment for Awards. To the extent that an Award is granted in the form of Performance Share Units, no cash consideration
shall be required of the Award recipients. 
 11.4 Vesting Conditions. Each Award of Performance Share Units shall be
subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Performance Share Unit Agreement. The Committee may include among such conditions the requirement that the performance of the
Company or a business unit of the Company for a Performance Cycle equal or exceed a target determined in advance by the Committee. Such target shall be based on any one or combination of the Performance Criteria. 

With respect to Performance Share Units that are subject to performance-based vesting conditions and are intended to meet the qualified
performance-based compensation requirements of Code Section 162(m) and are granted to Participants who are Covered Employees under Code Section 162(m): 
 (a) The Committee shall identify such conditions not later than the ninetieth (90th) day following the commencement of the Performance Cycle, and before twenty-five percent (25%) of the
Performance Cycle has elapsed; and 
 (b) The Committee shall certify in writing prior to payout that such conditions and any
other material terms were in fact satisfied. Approved minutes of a meeting of the Committee may be treated as such written certification. 

  
 10 

 In no event shall the number of Performance Share Units which are subject to
performance-based vesting conditions and which are granted to any Participant in a single fiscal year exceed 500,000, subject to adjustment in accordance with Article 12. 
 If the Participant’s employment with the Company or Subsidiary is terminated before the date that Performance Share Units vest, the participant shall forfeit all rights with respect to any unvested
Performance Share Units. However, with respect to Performance Share Units subject to performance-based vesting conditions, the Committee, in its absolute and sole discretion at the time an Award of Performance Share Units is made, may establish
guidelines providing that if a Participant’s employment is terminated before the end of a Performance Cycle by reason of Disability, death or Retirement, the Participant shall be entitled to a prorated payment with respect to any Performance
Share Units that were being earned during the Performance Cycle, as determined at the end of such Performance Cycle. A Performance Share Unit Agreement may provide for accelerated service-based vesting in the event of a Participant’s
Disability, death or Retirement (provided, in the case of Retirement, that such Performance Share Unit Agreement’s accelerated vesting provisions shall comply with the requirements of Code Section 409A). The Committee may determine, at the
time of granting Performance Share Units or thereafter, that all or part of the Performance Share Units shall become vested in the event that the Participant experiences a Qualifying Termination within twelve (12) months following a Change in
Control. Additionally, a Performance Share Unit Agreement may provide for deemed satisfaction of the Award’s performance-based vesting conditions in the event of a Qualifying Termination within twelve (12) months following a Change in
Control, to the extent consistent with the requirements of Code Section 162(m) and the Treasury Regulations promulgated thereunder. In addition, acceleration of vesting may be required pursuant to Article 12.

11.5 Form and Time of Settlement of Units. Settlement of vested Performance Share Units may be made in the form of (a) cash,
(b) shares of Common Stock or (c) any combination of both, as determined by the Committee. For the avoidance of doubt, settlement of vested Performance Share Units in shares of Common Stock shall not be considered an Award of Unrestricted
Shares under Article 8. Methods of converting Performance Share Units into cash may include (without limitation) a method based on the average Fair Market Value of shares of Common Stock over a series of trading days. Vested Performance Share Units
shall be settled in a lump sum by the last day of the calendar year in which all vesting conditions applicable to the Performance Share Units have been satisfied or have lapsed. Until an Award of Performance Share Units is settled, the number of
such Share Units shall be subject to adjustment pursuant to Article 12. 
 11.6 Creditors’ Rights. A holder of
Performance Share Units shall have no rights other than those of a general creditor of the Company. Performance Share Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable
Performance Share Unit Agreement. 
 ARTICLE 12. PROTECTION AGAINST DILUTION 

12.1 Modification or Assumption of Awards. Except in connection with a corporate transaction involving the Company (a
“Strategic Transaction” which shall include, without 

  
 11 

 
limitation any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares or the sale
of all or substantially all of the Company’s assets), the terms of outstanding Awards may not be amended to reduce any exercise price associated with such Awards or to cancel any outstanding Awards in exchange for cash, other Awards or other
securities with an exercise price that is less than the exercise price of the original Awards without shareholder approval. The foregoing and the provisions of this Article 12 notwithstanding, no modification of an Award shall, without the consent
of the Award recipient, alter or impair his or her rights or obligations under such Award. 
 12.2 Adjustments. Upon or
in contemplation of any Strategic Transaction, the Committee shall, in such manner, to such extent (if any) and at such time as it deems appropriate and equitable in the circumstances: 

(a) proportionately adjust any or all of (i) the number and type of shares of Common Stock (or other securities) that thereafter may
be made the subject of Awards (including the specific share limits, maximums and numbers of shares set forth elsewhere in this Plan), (ii) the number, amount and type of shares of Common Stock (or other securities or property) subject to any or
all outstanding Awards, (iii) the grant, purchase, or exercise price of any or all outstanding Awards, (iv) the securities, cash or other property deliverable upon exercise of any or all outstanding Awards, or (v) the performance
standards appropriate to any or all outstanding Awards, or 
 (b) make provision for a cash payment or for the assumption,
substitution or exchange of any or all outstanding share-based Awards or the cash, securities or property deliverable to the holder of any or all outstanding share-based Awards, based upon the distribution or consideration payable to holders of the
outstanding shares of Common Stock upon or in respect of such event. 
 For the avoidance of doubt, this Article 12 does not apply to normal
cash dividends with respect to Company Stock other than extraordinary dividends or to stock issued in lieu of such dividends. The Committee may adopt such valuation methodologies for outstanding Awards as it deems reasonable in the event of a cash
or property settlement and, in the case of Options, SARs or similar rights, but without limitation on other methodologies, may base such settlement solely upon the excess, if any, of the per share amount payable upon or in respect of such event over
the grant price of the Award, unless otherwise provided in, or by authorized amendment to, the Award or provided in another applicable agreement with the Participant. With respect to any ISO, in the absolute and sole discretion of the Committee, the
adjustment may be made in a manner that would cause the Option to cease to qualify as an ISO. 
 12.3 Dissolution or
Liquidation. To the extent not previously exercised, settled or assumed, Options, SARs, and Performance Share Units shall terminate immediately prior to the dissolution or liquidation of the Company. 

  
 12 

 ARTICLE 13. AWARDS UNDER OTHER PLANS 
 The Company may grant awards under other equity plans or programs. Such awards may be settled in the form of shares of Common Stock issued under this Plan. 

ARTICLE 14. LIMITATION ON RIGHTS 
 14.1 Retention Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain an Employee or Nonemployee Director. The Company and its
Subsidiaries reserve the right to terminate the Service of any Employee or Nonemployee Director at any time, with or without cause, subject to applicable laws, the Company’s Restated Articles of Incorporation and Bylaws and a written employment
agreement (if any). 
 14.2 Shareholders’ Rights. Unless otherwise provided in this Plan or in any Award, a
Participant shall have no dividend rights, voting rights or other rights as a shareholder with respect to any shares of Common Stock covered by his or her Award prior to the time when a stock certificate for such shares of Common Stock is issued or,
if applicable, the time when he or she becomes entitled to receive such shares of Common Stock by filing any required notice of exercise and paying any required Exercise Price. No adjustment shall be made for normal cash dividends or other rights
for which the record date is prior to such time, except as expressly provided in the Plan. 
 14.3 Regulatory Requirements.
Any other provision of the Plan notwithstanding, the obligation of the Company to issue shares of Common Stock under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be
required. The Company reserves the right to restrict, in whole or in part, the delivery of shares of Common Stock pursuant to any Award prior to the satisfaction of all legal requirements relating to the issuance of such shares of Common Stock
related to their registration, qualification or listing or to an exemption from registration, qualification or listing. 

14.4 Compliance with Code Section 409A. Awards under the Plan are intended to comply with Code Section 409A and all
Awards shall be interpreted in a manner that results in compliance with Section 409A, Department of Treasury regulations, and other interpretive guidance under Section 409A. Notwithstanding any provision of the Plan or an Award to the
contrary, if the Committee determines that any Award does not comply with Code Section 409A, the Company may adopt such amendments to the Plan and the affected Award (without consent of the Participant) or adopt other policies or procedures
(including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines are necessary and appropriate to (a) exempt the Plan and the Award from application of Code Section 409A
and/or preserve the intended tax treatment of amounts payable with respect to the Award, or (b) comply with the requirements of Code Section 409A. 
 ARTICLE 15. WITHHOLDING TAXES 
 15.1 General. To the extent required
by applicable federal, state, local or foreign law, a Participant or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company
shall not be required to issue any shares of Common Stock or make any cash payment under the Plan until such obligations are satisfied. 

  
 13 

 15.2 Share Withholding. To the extent that applicable law subjects a Participant to
tax withholding obligations, the Committee may permit such Participant to satisfy all or part of such obligations by having the Company withhold all or a portion of any shares of Common Stock that otherwise would be issued to him or her or by
surrendering all or a portion of any shares of Common Stock that he or she previously acquired. Such shares of Common Stock shall be valued at their Fair Market Value on the date when they are withheld or surrendered, and shall be deemed to have
been issued for purposes of identifying any shares which may become available for grant pursuant to Section 3.3 above. 
 ARTICLE 16.
FUTURE OF THE PLAN 
 16.1 Term of the Plan. The Plan, as set forth herein, became effective on the date of
shareholder approval, May 18, 2010, and shall remain in effect for a period of ten (10) years unless earlier terminated under Section 16.2. 
 16.2 Amendment or Termination. The Board may, at any time and for any reason, amend, alter or terminate the Plan. Notwithstanding the foregoing and except as provided in Section 14.4, no
amendment, alteration or termination shall be made that would impair the rights of a Participant under any Award theretofore granted without such Participant’s express written consent. An amendment of the Plan shall be subject to the approval
of the Company’s shareholders for any amendment that would (a) require shareholder approval in order to satisfy the applicable requirements of Code Section 162(m), Code section 422, or other applicable laws, regulations or rules,
including but not limited to any stock exchange rules; (b) increase amounts payable under the Plan to Participants (provided that shareholder approval shall not be required for increases that are not material and do not require such approval
under applicable law or stock exchange rules); (c) increase the number of shares of Common Stock authorized to be issued under the Plan; (d) permit the repurchase by the Company of any outstanding Awards with an Exercise Price greater than
the then-current Fair Market Value of Common Stock; or (e) modify the Plan’s eligibility provisions. No Awards shall be granted under the Plan after the termination thereof. 
 ARTICLE 17. DEFINITIONS 
 17.1 “Award” means any grant of
an Option, an SAR, an Unrestricted Share, a Restricted Share, a Restricted Stock Unit or a Performance Share Unit under the Plan. 
 17.2 “Award Agreement” means the written agreement between the Company and the recipient that contains the terms, conditions and restrictions pertaining to a particular Award. 

17.3 “Board” means the Company’s Board of Directors, as constituted from time to time. 

17.4 “Cause” means (a) the unauthorized use or disclosure of the confidential information or trade secrets of the
Company, which use or disclosure causes material harm to the 

  
 14 

 
Company, (b) conviction of, or a plea of “guilty” or “no contest” to, a felony under the laws of the United States or any State thereof, (c) gross negligence,
(d) willful misconduct or (e) a failure to perform assigned duties that continues after the Participant has received written notice of such failure. The foregoing, however, shall not be deemed an exclusive list of all acts or omissions
that the Company (or the Parent or Subsidiary employing the Participant) may consider as grounds for the discharge of the Participant without Cause. 
 17.5 “Change in Control” means: 
 (a) the consummation of a
merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons who were not shareholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately
after such merger, consolidation or other reorganization fifty percent (50%) or more of the voting power of the outstanding securities of each of (i) the continuing or surviving entity and (ii) any direct or indirect parent
corporation of such continuing or surviving entity; 
 (b) the sale, transfer or other disposition of all or substantially all
of the Company’s assets; 
 (c) a change in the composition of the Board (other than due to the retirement of Directors
upon reaching the Board’s mandatory retirement age), as a result of which fewer than fifty percent (50%) of the incumbent Directors are Directors who either (i) had been Directors of the Company on the date twenty-four
(24) months prior to the date of the event that may constitute a Change in Control (the “original Directors”) or (ii) were elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the
aggregate of the original Directors who were still in office at the time of the election or nomination and the Directors whose election or nomination was previously so approved; or 

(d) any transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing at least thirty percent (30%) of the total voting power represented by the Company’s then outstanding voting securities. For purposes of this Paragraph (d), the
term “person” shall have the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a
Subsidiary and (ii) a corporation owned directly or indirectly by the shareholders of the Company in substantially the same proportions as their ownership of the common stock of the Company. 

A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a
holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
 17.6 “Code” means the Internal Revenue Code of 1986, as amended. 

17.7 “Committee” means the Compensation Committee of the Company’s Board. 

  
 15 

 17.8 “Common Stock” means shares of the common stock of the Company.

 17.9 “Company” means Nordstrom, Inc., a Washington corporation. 

17.10 “Disability” means the inability 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 which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. 

17.11 “Employee” means a common-law employee of the Company, a Parent or a Subsidiary. 

17.12 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

17.13 “Exercise Price,” in the case of an Option, means the amount for which one share of Common Stock may be purchased
upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of an SAR, means an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of
one share of Common Stock in determining the amount payable upon exercise of such SAR. 
 17.14 “Fair Market
Value” means the market price of a share of Common Stock, determined by the Committee in good faith on such basis as it deems appropriate. Whenever possible, the determination of Fair Market Value by the Committee shall be based on the closing
price on the date of the Award as reported by the New York Stock Exchange, or the primary exchange or quotation system on which the Common Stock is then trading. Such determination shall be conclusive and binding on all persons. 

17.15 “Good Reason” means the occurrence of one or more of the following without the Participant’s express written
consent and within twelve (12) months following a Change in Control: 
 (a) a material diminution in the Participant’s
base salary; 
 (b) a material diminution in the Participant’s authority, duties, or responsibilities; 

(c) a material change in the geographic location at which the Participant must perform his or her services to a place that is more than
fifty (50) miles from where the Participant was based immediately prior to the Change in Control; and 
 (d) any other
action or inaction that constitutes a material breach by the Company of this Plan with respect to a Participant’s Award. 
 The event or
events described above shall constitute Good Reason only if the Company (or the Parent or Subsidiary employing the Participant) fails to cure such event or events within ninety 

  
 16 

 
(90) days after receipt from the Participant of written notice of the event or events which constitutes Good Reason. Such notice must be provided to the Company (or the Parent or Subsidiary
employing the Participant) and must provide a reasonably detailed description of the facts that the Participant believes constitute a Good Reason event. Good Reason shall cease to exist for an event on the ninetieth (90th) day following the later of its occurrence or the
Participant’s knowledge thereof, unless the Participant has given written notice to the Company thereof prior to such date. 
 17.16 “ISO” means an incentive stock option described in Section 422(b) of the Code. 
 17.17 “NSO” means a stock option not described in Sections 422 or 423 of the Code. 
 17.18 “Nonemployee Director” means a member of the Company’s Board or the Board of Directors of a Subsidiary who is not an Employee. Service as a Nonemployee Director shall be
considered employment for all purposes of the Plan, except as provided in Section 4.2. 
 17.19 “Option”
means an NSO or an ISO granted under Article 5 of the Plan and entitling the holder to purchase shares of Common Stock pursuant to an Award. 
 17.20 “Optionee” means an individual or estate who holds an Option. 
 17.21 “Participant” means an individual or estate who holds an Award. 
 17.22 “Performance Criteria” shall mean a specified percentage or quantitative level in one or more of the following performance measures: 

(a) the Company’s shareholder return as compared to any designated industry or other comparator group; 

(b) the trading price of the Company’s common stock; 
 (c) the results of operations, such as sales, earnings, net income (before or after taxes), cash flow, return on assets, same-store sales, economic profit, or return on investment (including return on
equity, return on capital employed, or return on assets); 
 (d) earnings before or after taxes, interest, depreciation and/or
amortization, and including /excluding capital gains and losses; 
 (e) other financial results, such as profit margins,
operational efficiency, expense reduction, or asset management goals; and 
 (f) the internal or external market share of a
product or line of products. 
 Each of the foregoing performance measures may be based on the performance of the Company
generally, in the absolute or in relation to its peers, or the performance of a particular Participant, department, business unit, subsidiary, or other segment to which a particular 

  
 17 

 
Participant is assigned. The Committee may establish different performance measures and milestones for individual Participants or groups of Participants. For each Participant, each performance
measure will be weighted to reflect its relative significance to the Company for the Performance Cycle. 
 Except as otherwise
specified in an individual Award, applicable performance measures shall be adjusted to exclude the following items that occur during a given Performance Cycle: 
 (i) Extraordinary, unusual or non-recurring items of gain or loss; 
 (ii) Gains or
losses on the disposition of a business, a segment of a business, or significant assets outside the ordinary course of business; 
 (iii) Changes in tax or accounting standards, principles, regulations or laws; 

(iv) The effect of a merger or acquisition, including all financial results derived therefrom during the period from the merger or
acquisition date through the end of the Performance Cycle in which the merger or acquisition occurred; 
 (v) Gains or losses
due to non-cash adjustments which relate to the valuation of long-term assets rather than current-year performance (including but not necessarily limited to gain or loss recognized for store closures, lease terminations, pension adjustments and mark
to market adjustments); and 
 (vi) The impact of other similar occurrences outside of the Company’s core, on-going
business activities (including but not necessarily limited to litigation or tax reserves, financing activities, foreign exchange rate fluctuations and restructuring charges). 
 In all other respects, performance measures comprising Performance Criteria for an Award shall be calculated in accordance with the Company’s financial statements, under generally accepted accounting
principles (GAAP), or under a non-GAAP methodology established by the Committee prior to the issuance of an Award. The method of calculating performance measurements shall be consistently applied and identified in the audited financial statements,
including footnotes, or the Compensation Discussion and Analysis section of the Company’s annual report. 
 17.23
“Performance Cycle” means a predetermined period of time, not less than one year, over which Performance Criteria will be measured with respect to an Award. 
 17.24 “Performance Share Unit” means a bookkeeping entry representing the equivalent of one (1) share of Common Stock, as granted under the Plan pursuant to an Award. 

17.25 “Performance Share Unit Agreement” means the written agreement between the Company and the recipient of a
Performance Share Unit that contains the terms, conditions and restrictions pertaining to such Performance Share Unit. 

  
 18 

 17.26 “Plan” means this Nordstrom, Inc. 2010 Equity Incentive Plan, as
amended from time to time. 
 17.27 “Prior Plan” means the Nordstrom 2004 Equity Incentive Plan, as
subsequently amended in 2007 and 2008. 
 17.28 “Qualifying Termination” means (a) the Participant’s
employment is involuntarily terminated by the Company (or the Parent or Subsidiary employing the Participant) without Cause, or (b) the Participant terminates employment from the Company (or the Parent or Subsidiary employing the Participant)
for Good Reason. The twelve-month period will be extended by one (1) additional month if the thirty-day cure period in Section 17.15 is triggered in the eleventh or twelfth month following a Change in Control. It is intended that any
Qualifying Termination shall be an “involuntary Separation from Service,” as that term is defined in Treasury Regulation Section 1.409A-1(n). 
 17.29 “Restricted Share” means a share of Common Stock granted under Article 9 pursuant to an Award, with such restrictions as set forth in the applicable Restricted Share Agreement.

 17.30 “Restricted Stock Unit” means a right granted under Article 10 to receive Common Stock or cash at the
end of a specified deferral period pursuant to an Award, which right may be conditioned on the satisfaction of certain requirements (including the satisfaction of certain performance goals). 

17.31 “Restricted Share Agreement” means the written agreement between the Company and the recipient of a Restricted
Share that contains the terms, conditions and restrictions pertaining to such Restricted Share. 
 17.32 “Restricted
Stock Unit Agreement” means the written agreement between the Company and the recipient of a Restricted Stock Unit that contains the terms, conditions and restrictions pertaining to such Restricted Stock Unit. 

17.33 “Retirement” means Participant’s termination from Service on or after his or her Retirement Date. 

17.34 “Retirement Date” shall have the meaning as set forth in a particular Award Agreement. 

17.35 “SAR” means a stock appreciation right granted under Article 7 of the Plan pursuant to an Award. 

17.36 “SAR Agreement” means the written agreement between the Company and a Participant that contains the terms,
conditions and restrictions pertaining to his or her SAR. 
 17.37 “Service” means service as an Employee or
Nonemployee Director. 

  
 19 

 17.38 “Stock Option Agreement” means the written agreement between the
Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her Option. 
 17.39
“Subcommittee” means a separate committee established by and consisting of members of the Committee. 
 17.40
“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered
a Subsidiary commencing as of such date. 
 17.41 “Unrestricted Share” means a share of Common Stock granted
under Article 8 of the Plan pursuant to an Award. 

  
 20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}]]