Document:

EX-10.2

 Exhibit 10.2 

INVESTMENT AGREEMENT 

Relating to Yibon Hotel Group Co., Ltd 

By and Among 
 Yibon Hotel Group Co., Ltd,

 Shanghai Bei Fu Industrial Co., Ltd, 
 KIP
Growth Capital Fund No.17; 
 Korea Investment Global Frontier Fund No.20, 

Ru Shi Limited 
 And 

Yibon Group Existing Shareholders 
 April
2017 

 This agreement, dated April 5, 2017, is made in Shanghai by and among the following parties: 

Party A: Yibon Hotel Group Co., Ltd 
 Domicile: Suite B-18, Floor 2, No.899, Hu Qingping Road, Minhang District, Shanghai 
 Party B: Shanghai Bei Fu Industrial Co., Ltd

 Domicile: Suite A29, Floor 4, No.477, Fute West First Road, Free Trade Zone PRC (Shanghai). 

Party C: KIP (comprised of the two parties set out below) 

(1) KIP Growth Capital Fund No. 17 (the “KIP 17”) 

Domicile: 10F ASEM Tower, 517 Yeongdong-daero, Gangnam-Gu, Seoul, Korea 06164. 

(2) Korea Investment Global Frontier Fund No.20 (the “KIP 20”) 

Domicile: 10F ASEM Tower, 517 Yeongdong-daero, Gangnam-Gu, Seoul, Korea 06164. 

Party D: Ru Shi Ltd. 
 Domicile: Room 502, Bank of America
Tower, 12 Harcourt Road, Central, Hong Kong. 
 Party E: Yibon Group Existing Shareholders (as shown in Annex I) 

The foregoing parties are herein referred to individually as a “Party” and collectively as the “Parties”. 

Article 1 Definitions 
 The following
terms used herein shall have the following meanings and shall be interpreted accordingly: 
 “Agreement” shall mean this Investment
Agreement entered into by and among Yibon Group, Bei Fu Industrial, KIP, Ru Shi Limited and Yibon Group Existing Shareholders. 

“Company”, “Target Company” or “Yibon Group”, unless otherwise required by the context, shall mean Yibon Hotel Group Co.,
Ltd, namely, Party A. 

  
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 “Bei Fu Industrial” shall mean Shanghai Bei Fu Industrial Co., Ltd, namely, Party B. 

“KIP” shall mean KIP Growth Capital Fund No.17 and Korea Investment Global Frontier Fund No.20, namely, Party C. 

“Ru Shi” shall mean Ru Shi Ltd, namely, Party D. 

“Yibon Group Existing Shareholders” or “Existing Shareholders” shall mean all shareholders of Yibon Group prior to the carrying-out by Bei Fu Industrial and Ru Shi of the Proposed Investment in Yibon Group; namely, Party E. 
 “Yi
Bai Hotel” shall mean Yi Bai Hotel Chain Co., Ltd, the predecessor of Yibon Group. 
 “Han Yi Hotel” shall mean Han Yi Hotel
Management (Shanghai) Co., Ltd. 
 “Contributed Equity” shall mean the 100% interest held by Ru Shi in Han Yi Hotel; 

“Investors” shall mean Bei Fu Industrial and KIP. 

Proposed Investment shall mean the investment in the form of cash and the investment in the form of Contributed Equity to be effected by Bei Fu
Industrial and Ru Shi respectively pursuant to the terms hereof. 
 “Party B Pre-Money Valuation”
shall mean the valuation of the Company prior to the carrying-out of the Proposed Investment by Bei Fu Industrial calculated using the following formula: 

Party B Pre-Money Valuation= Company 2016 Audited EBITDA *10 – Company 2016 Year End Audited Net Indebtedness

 Given that the Company’s 2016 audited EBITDA still cannot be determined, per the mutual agreement and reasonable estimates of the Parties, the
“Company 2016 Audited EBITDA” and “Company 2016 Year-End Audited Net Indebtedness” shall be put, on an interim basis, at RMB27 million and RMB25 million, respectively.
Accordingly, “Party B Pre-Money Valuation” shall be put, on an interim basis, at RMB245 million (i.e. RMB270 million – RMB25 million). “Party B
Pre-Money Valuation” shall be finalized based on the 2016 audit results of the Company. 

  
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 “Net Indebtedness” shall calculated as follows: 

Net Indebtedness = Shareholder Loans+ Bank Loans+ Other Loans + Received Franchise and Sublease Deposits – Paid Lease Deposit - Prepaid Rents –
Cash On Hand ± Net Amount of Other Receivables and Payables (plus where the net amount consists of receivables, minus where the net amount consists of payables). 

“Post-Money Valuation” shall mean the overall valuation of the Company, being the sum of Party B
Pre-Money Valuation and Party B’s investment.  
 “EBITDA” shall mean the earnings
before interest, tax, depreciation and amortization: EBITDA=net profit + interest + income tax + depreciation + amortization. 
 “Party C Investment
Amount” shall mean RMB43.810555 million (= $5 million * 1.27 * 6.8993).  
 “Restructuring” shall mean the
process consisting of the following steps: (1) Proposed Investment; and (2) Post-Investment Equity Swap. 
 “Contribution
Payment” shall mean the full contribution by Bei Fu Industrial and Ru Shi to the Company of all cash/shareholding interest under the Proposed Investment in connection with their subscription of the newly increased registered capital of the
Company. 
 “Include” and identical expressions, for the purposes hereof, do not imply a restriction and shall instead be construed as
meaning “including but not limited to”. 

  
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 “Post-Investment Equity Swap” shall mean the acquisition by KIP, following the Proposed
Investment, of the Ru Shi’s shareholding interest in Yibon Group, in exchange for KIP’s convertible debt creditor rights under the Bond Subscription and Investment Agreement by and among KIP, Yi Bai Hotel and other parties thereto; KIP 17
and KIP 20 shall acquire such equity at the ratio of 35:65. 
 “Investment Completion” shall mean the concurrent satisfaction of the
following conditions: (1) the Proposed Investment has been approved by the competent commerce authorities; (2) Bei Fu Industrial and Ru Shi have made their Contributions; and (3) all changes registration-related formalities required
for the registered capital increase hereunder have been completed with the industrial and commercial authority of the domicile of the Company. 

“Restructuring Completion” shall mean the concurrent satisfaction of the following conditions: (1) Investment Completion has been
achieved; (2) all Post-Investment Equity Swap matters set out in Article 13 hereof have been fully implemented. 
 The shareholding structure following
the Restructuring Completion shall be as set out in Annex IV. 
 “New Articles” shall mean the articles of association of the Target
Company to be newly concluded or amended by the Existing Shareholders and Investors following the Investment Completion. 
 “Related Party
Transaction” shall mean any transaction between the Company and the Company’s controlling shareholder(s), actual controller(s), director(s), supervisory board member(s), senior management personnel and any enterprise(s) under their
direct or indirect control, and any other transaction likely to result in a transfer of benefits of the Company. 
 “Writing” shall mean
any type of legible and preservable medium of expressions. 
 “Interim Period” shall mean the period commencing from the date hereof to the
date of Investment Completion. 

  
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 “PRC” shall mean the mainland of the People’s Republic of China and shall exclude, for the
purpose of this Agreement, Hong Kong, Macao and Taiwan. 
 Article 2 Investment Background Information 

 

	2.1	Party A was established on September 25, 2010 and has, as of the date hereof, a registered capital of RMB one hundred and twenty-two million (RMB122,000,000). Party A’s
shareholding structure is as set out in Annex II. 

  

	2.2	Han Yi Hotel was established on August 13, 2012 and has, as of the date hereof, a registered capital of five million US dollars ($5,000,000); Han Yi Hotel is 100% owned by Party D. 

 

	2.3	Party C is an indirect investor in Han Yi Hotel and possesses convertible debt creditor rights with respect to the shareholders of Han Yi Hotel. 

 

	2.4	Party B intends to invest in Party A in cash. Party B Pre-Money Valuation shall be finally determined based on the 2016 results of the Company to be audited by an auditor
acceptable to Party B, and Party B’s actual investment amount shall be adjusted based on such finalized Party B Pre-Money Valuation. 

 

	2.5	Party D intends to use its ownership interest in Han Yi Hotel to invest in Party A and transfer, upon Investment Completion, its ownership interest in Party A to Party C. 

NOW, THEREFORE, the foregoing Parties hereby reach the following agreement on the relevant investment matters for mutual observance. 

  
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 Article 3 Contribution Subscription 

 

	3.1	Party B shall subscribe, by means of cash payment, for an amount of RMB sixty-three million six hundred and seventy-one thousand three hundred and fifty-three (RMB63,671,353) in
the newly-increased registered capital of the Company, representing 30% of the equity of the Company following the Proposed Investment. The investment sum actually paid by Party B shall be equal to RMB one hundred and five million
(RMB105,000,000.00) plus (minus) the additional (reduced) investment amount as set out in Article 7.1 and Article 7.2 herein. Of such sum, RMB sixty-three million six hundred and seventy-one thousand three
hundred and fifty-three (RMB63,671,353.00) shall be recorded as the registered capital of the Company and the remainder shall be recorded as the capital reserves of the Company. 

 

	3.2	Party D shall subscribe, by means of the Contributed Equity, for an amount of RMB twenty-six million five hundred and sixty-six thousand
four hundred and forty-seven (RMB26, 566,447) in the newly-increased registered capital of the Company, representing 12.5173% of the equity of the Company following the Proposed Investment. The actual deemed price of the Contributed Equity shall be
equal to RMB thirty-one million six hundred and forty-seven thousand five hundred (RMB31,647,500.00). Of such price, RMB twenty-six million five hundred sixty-six thousand four hundred and forty-seven (RMB26,566,447) shall be recorded as the registered capital of the Company and the remainder shall be recorded as the capital reserves of the Company. Party D
concurrently undertakes and warrants to the other Parties that its 100% interest in Han Yi Hotel is free and clear of any pledge, mortgage, seizure or any other defects in rights and that its capital contributions to Han Yi Hotel have been fully and
actually paid. 

  

	3.3	Upon its subscription for the aforesaid contribution, Party B shall become a shareholder of the Company as from the date the commerce authority has granted approval and the corresponding investment amounts have been
remitted into the designated account of the Company; upon its subscription for the aforesaid contribution, Party D shall become a shareholder of the Company as from the date the commerce authority has granted approval and the Contributed Equity has
been approved for the change registration by the industrial and commercial authority and registered under the name of the Company. As from the day they become a shareholder of the Company, Party B and Party D shall be entitled to the same rights and
interests as other shareholders of the Company in proportion to their post-investment shareholding interests in the Company. 

  
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	3.4	Upon Investment Completion, the shareholding structure of the Company shall be as set out in Annex III. 

  

	3.5	Party C and Party E both agree to the Proposed Investment and waive their rights of first refusal and all of their other preferential rights and specially agreed-upon rights. 

Article 4 Conditions Precedent to Investors’ Proposed Investment 

 

	4.1	The performance by the Investors of their Contribution obligations under the Proposed Investment shall be contingent upon the satisfaction of the following conditions precedent, each of which may be waived in whole or
in part by the Investors either by signed Writing or by action (e.g. starting to perform substantial obligations like the payment of investment amounts): 

  

	 	4.1.1	Approvals required from the competent commerce authorities in connection with the Proposed Investment have all been obtained; 

  

	 	4.1.2	From the date hereof until immediately before the investment by Party B no changes materially adverse to the Proposed Investment have occurred to the business, assets, debts, operations and financial condition of the
Target Company and its subsidiaries; 

  

	 	4.1.3	There exists no action or proceeding by any government authority that restricts, prohibits, delays or otherwise restrains or seeks to restrain the Investment Completion on grounds of antimonopoly or other factors;

  

	 	4.2	As from the date hereof, the Parties shall fully cooperate with each other and do their best efforts to procure, by exercising either their influence or their control, the conditions precedent to the Proposed Investment
stipulated in Article 4.1 to be satisfied as early as possible. 

  
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 Article 5 Contribution Payment 

 

	5.1	Party B shall contribute its investment amounts in accordance with the following: 

  

	 	5.1.1	Within ten (10) business days from the approval by the competent commerce authority of the Proposed Investment, Party B shall wire to a bank account designated by the Company 50% of its investment amounts
(disregarding, at this stage, the amount adjustments set forth in Article 7.1 and Article 7.2 herein), namely, RMB fifty-two million five hundred thousand (RMB52,500,000), as the first installment of capital
contribution. 

 The deposit in the amount of RMB three million (RMB3, 000,000) paid by Party B before the execution of this
Agreement shall automatically be counted towards the first installment of capital contribution. 
 Within ten (10) business days from
the 2016 audit report for the Company being issued by an accounting firm with PRC securities and futures business qualifications acceptable to Party B and the Company 2016 Audited EBITDA being unanimously confirmed in Writing by Party A, Party B and
Party E, Party B shall wire the remainder of its investment amounts into a bank account designated by the Company. 
 It is hereby
specifically agreed that notwithstanding any definition in any other defined terms or any other provisions, for the purpose of calculating the Company 2016 Audited EBITDA, the audit, appraisal, legal and other intermediary expenses incurred by the
Company in connection with the Proposed Investment/Restructuring shall not be included in the costs of the Company; and any such expenses which have been included in the costs when calculating the Company’s net profit shall be added back. In
addition, the profits and losses from the disposal of stores (i.e. the assignment of stores) and interest accrued on the investment amount payments received from Party B shall not be included in the revenue of the Company. The accounting firm
acceptable to Party B shall carry out the audit of the 2016 financial statements of the Company consistent with the PRC accounting standards and based on the accounting policies and estimates adopted by the financial statements dated May 31,
2016 audited by Zhonghui firm and the social security and other due diligence disclosures supplied by the Company. 

  
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	 	5.1.2	Unless otherwise agreed by the Parties, the Proposed Investment shall terminate if it fails to obtain approval from the competent commerce authority(ies) within twelve (12) months from the date hereof, in which
event the Parties shall owe each other no breach of contract liabilities. 

  

	5.2	Party D shall contribute the Contributed Equity in accordance with the following: 

  

	 	5.2.1	Immediately upon the Proposed Investment being approved by the competent commerce authority, the Company and Party D shall go through the change of shareholder’s registration with respect to Han Yi Hotel and the
other Parties shall provide assistance and the completion time of such formalities shall be the date on which the industry and commerce authority approves such change registration of Han Yi Hotel. 

 

	 	5.2.2	Unless otherwise agreed by the Parties, the Proposed Investment shall terminate if it fails to obtain approval from the competent commerce authority(ies) within twelve (12) months from the date hereof, in which
event the Parties shall owe each other no breach of contract liabilities. 

 Article 6 [Shareholding] Change Registration

  

	6.1	Shareholding Change Registration 

 The Parties agree to grant the board of directors of the
Company the full authority to handle the commerce authority filing and approval, the change registration with the industry and commerce authority and other formalities pertaining to the Restructuring. Upon approval of the competent commerce
authority, the board of directors of the Company shall timely go through the change registration with the industry and commerce authority in connection with the Proposed Investment and the Parties shall provide assistance. 

  
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	6.2	Responsibility for Relevant Expenses 

 The Company shall be responsible for the fees and
relevant taxes and charges for appraisal, audit, legal services, foreign-invested company’s filing/approval and change registration with the industry and commerce authority and the like incurred in connection with the Restructuring. Such
expenses shall be borne by Party E to the extent the Company shall be barred from assuming such expenses under relevant accounting and tax laws and regulations. 

Article 7 Adjustment to Party B’s Investment Amount 
  

	7.1	In the event that Party B Pre-Money Valuation determined based on the 2016 audited results of the Company is less than RMB245 million, Party B may then reduce its investment
accordingly by an amount calculated using the following formula: 

 Party B Investment Amount Reduction=
(RMB245 million – Party B Pre-Money Valuation) * 30% ÷ 70% 
  

	7.2	In the event that Party B Pre-Money Valuation determined based on the 2016 audit results of the Company is higher than RMB245 million, Party B shall increase its investment
by an amount calculated using the following formula: 

 Party B Investment Amount Increase = (Party B Pre-Money Valuation – RMB245 million) * 30% ÷ 70% 
 In the event that Party B Pre-Money Valuation determined based on the 2016 audit results of the Company is higher than RMB306.25 million, the Parties agree that Party B Pre-Money Valuation shall
be determined as being equal to RMB306.25 million. 

  
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 Article 8 Corporate Governance; Division of Business Responsibilities; Other Agreements

  

	8.1	Upon Restructuring Completion, the Company shall put in place well-functioning corporate governance in accordance with laws and regulations. 

 

	8.2	Upon Restructuring Completion, the Company shall have a board of directors composed of five (5) members, of which two (2) shall be appointed by Party B, one (1) shall be appointed by Party C, and two
(2) shall be appointed by Party E. 

  

	8.3	The Company shall formulate an annual financial budget specifying the annual capital expenditure plan, general expenditure plan, etc., which budget shall be submitted to the board for approval and shall be implemented
stringently. The formulation of the aforesaid annual financial budget shall fully solicit prior advice from Party B’s directors and shall incorporate the reasonable comments raised by Party B’s directors in light of the interest of the
Company. Concurrently, the Company shall establish stringent internal control such that the Company shall in all respects meet the corporate governance requirements expected to be met by a prospective listing company. 

 

	8.4	Upon Investment Completion, the Company’s senior management shall remain unchanged on an interim basis. Party B shall be entitled to appoint one financial head who shall, under the leadership of the chief financial
officer, be responsible for the day-to-day oversight of the financing and investment, fund transfers and expenditures, and other activities of the Company.

  

	8.5	None of the senior management personnel (general manager, deputy general manager, financial heads) of the Company shall concurrently hold any position with any enterprise in competition with the Company without the
consent of the board of directors of the Company. 

  

	8.6	The Parties agree that the specific scope of activities of, and the business responsibilities division between, Party A and Party B, upon Investment Completion shall be discussed and decided by Party A, Party B and the
board of directors of the Company. 

  
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	8.7	In order to enhance the post-cooperation synergies between Party A and Party B, increase efficiency and reduce costs, to the extent needed by Party A, Party B agrees to decide, in light of the actual circumstances and
conditions of Party A, to open up, either for fee or for free, its service back-end resources to Party A and establish shared platform(s), such shared resources to include without limitation development
resources, human resources, financial management resources, membership system and IT informatization construction. 

  

	8.8	Without the consent of the other shareholders of the Company, no Party may transfer its shareholding interest in the Company to any transferee engaging in any business that is the same as or similar to that of the
Company, nor shall it hold shareholding interest in the Company as a nominee for the account of any third party. If any disposal by any Party of its shareholding interest in the Company is to result in a change to the actual control of the Company,
such disposal shall obtain prior consent from Party B and Party C. The rule whereby a shareholder disagreeing with a transfer shall be bound to purchase, failing which it shall be deemed to have consented shall not be applicable to this clause.

  

	8.9	Upon Investment Completion, the Company shall implement option incentivization in favor of its employees and other persons approved by its board of directors. The draft option incentive plan shall be as set out in Annex
VI and the general manager at the relevant time shall within the scope of such draft draw up a detailed option incentive plan to be implemented upon approval of the board of directors. The Parties shall at the relevant time approve and procure their
appointed directors to approve such option incentive plan (so long as it falls within the scope of such draft) and cooperate with the signing of relevant legal documents. 

 

	8.10	Party B agrees that if and when Party B or its affiliated company engaged in hotel-related business conducts an initial public offering (whether directly or indirectly), Party B shall within a reasonable period of time
prior to its submission of the listing application notify Party D and the Target Company’s then other shareholders in Writing, who may then exchange, at a reasonable valuation (no less than the Post-Money Valuation), their shareholding
interests in the Target Company either for the shareholding interests in the listing company (in case of backdoor listing) or for the shareholding interests in Party B or its relevant affiliated company (in case of direct listing) ( “Share
Exchange Right”). It is hereby specifically agreed that if Party D and the Target Company’s then other shareholders intend to exercise the aforesaid Share Exchange Right, they shall within 15 business days from receipt of Party
B’s written notice give Party B an explicit written reply, failing which they shall be deemed to have waived their such right. 

  
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 In the case of KIP 17, if, in connection with the proposed listing of Party B or its affiliated
company, the shareholding interests in the Target Company fail to achieve the share exchange due to approval-related reasons, or Party B or its affiliated company fail to achieve listing by June 30, 2019, or KIP 17 waives in Writing its Share
Exchange Right upon receipt of Party B’s notice under the first paragraph of this Article, then KIP 17 shall be entitled to demand Party B to buy back all of its shareholding interests in the Target Company at the price of RMB15,333,694, plus
6% annualized interest (simple interest), or to buy back part of its shareholding interests in the Target Company, in which case the buyback price shall be a proportionate part of RMB15,333,694, plus 6% annualized interest (simple interest),
provided always that any compensatory payments, dividends and other incomes previously received by KIP 17 shall be deducted from such equity buyback price. 

Within 60 days before June 30, 2019, KIP 17 shall be entitled to transfer, at its option, all of its shareholding interests in the Target
Company to its affiliated fund(s) (“Affiliated Fund”), which fund shall then assume all rights and obligations of KIP 17 under this Agreement, provided however that the triggering conditions and the exercise period for the exercise by such
Affiliated Fund of the right to demand Party B to buy back shareholding interests as provided under Article 8.10 hereof shall the same as those applicable to KIP 20, and that any compensatory payments, dividends and other incomes previously received
by KIP 17 and the Affiliated Fund shall be deducted from such equity buyback price. In such event, the Parties shall approve and shall procure their appointed directors to approve such shareholding interest transfer matters; and taxes and charges
arising out of such shareholding interest transfer shall be borne by KIP 17. 

  
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 In the case of KIP 20, if, in connection with the proposed listing of Party B or its affiliated
company, the shareholding interests in the Target Company fail to achieve the share exchange due to approval-related reasons, or Party B or its affiliated company fail to achieve listing by July 24, 2020, or KIP 20 waives in Writing its Share
Exchange Right upon receipt of Party B’s notice under the first paragraph of this Article, then KIP 20 shall equally be entitled to demand Party B to buy back all of its shareholding interests in the Target Company at the price of
RMB28,476,861, plus 6% annualized interest (simple interest), or to buy back part of its shareholding interests in the Target Company, in which case the buyback price shall be a proportionate part of RMB28,476,861, plus 6% annualized interest
(simple interest), provided always that any compensatory payments, dividends and other incomes previously received by KIP 20 shall be deducted from such equity buyback price. If Party B buys back all or part of the aforesaid shareholding interests
from KIP 20, then Party C’s right to appoint a director under Article 8.2 of this Agreement shall be enjoyed and exercised by Party B as from the date on which the buyback price is paid by Party B. 

The aforesaid buybacks shall be completed or waived prior to the submission by Party B or its affiliated company of the formal listing
application. 
 Party B shall procure its parent company GreenTree Hospitality (China) Co., Ltd. to provide joint and several guarantees in
respect of Party B’s buyback obligations under this Article and the guarantee letter issued by Party B’s parent company and subsequently confirmed by Party C shall be attached hereto as Annex IX. 

 

	8.11	Party A and Party E hereby undertake to procure relevant parties to enter into with Zhang Wei, before the execution of this Agreement, the Agreement to Terminate the Investment and Contribution Agreement
pertaining to the recognition of Zhang Wei’s investments in Yibon Hotel and Hanyi Hotel as creditor’s rights, and which agreement shall then be submitted to Party B for verification and confirmation, and shall, when so verified and
confirmed, be attached hereto as Annex VII. The investment amounts of Zhang Wei as shall be repayable by the Company has been factored into the Party B Pre-Money Valuation provided herein. 

  
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	8.12	Party C and Party D hereby undertake to enter into, concurrently with the execution of this Agreement, a written agreement in connection with the plan and arrangement for the ultimate exchange of the convertible debt
claims under the Bond Subscription and Investment Agreement among Party C, Party D and Yibon Hotel and other parties thereto for Party D’s shareholding interests in the Company to be assigned by Party D to Party C, their respective rights and
obligations, the implementing procedures, and the deadline for the ultimate completion of such debt-equity swap, and other matters, which agreement shall then be submitted to Party B for verification and confirmation, and shall, when so verified and
confirmed, be attached hereto as Annex V. 

 Article 9 Investors’ Rights and Obligations 

 

	9.1	Party B and Party D shall make Contributions in accordance with the time limits set out herein; Party C and Party D shall complete Post-Investment Equity Swap matters in accordance with the time limits set out herein.

 9.2 Information Right 
 Upon Investment
Completion the Investors shall enjoy information rights with respect to the Target Company and its subsidiaries. The Target Company and its subsidiaries shall provide the Investors with the following information and the Investors shall be obligated
to maintain the same in confidence: 
 (1) quarterly consolidated financial report and parent company financial report, to be provided within
20 days after the end of each quarter; 
 (2) semi-annual consolidated financial report and parent company financial report, to be provided
within 30 days after the end of each half-year. 

  
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 9.3 Anti-Dilution 

Upon Investment Completion, unless otherwise agreed by the Investors, the Target Company shall not bring in other investors at a price lower than the Proposed
Investment or on terms more favorable than the Proposed Investment, other than in the event of an equity transfer by an Existing Shareholder to his spouse and immediate relatives or the implementation of employee equity incentivization. 

9.4 Right of First Refusal; Tag-Along Right; Right to Demand Buybacks; Drag-Along Right; Preemptive Right 

Upon Investment Completion, the Investors shall enjoy the right of first refusal and the tag-along right, except in
the event of an equity transfer by an Existing Shareholder to his spouse and immediate relatives or the implementation of employee equity incentivization. 

9.4.1 Right of First Refusal 
 Unless otherwise agreed herein,
if, upon approval of the shareholders’ meeting of the Target Company, an Existing Shareholder transfers, directly or indirectly, its Target Company interest to any third party, the Investors shall each have the prior right to purchase such
interest under the same conditions. The Investors shall decide whether to exercise their rights of first refusal within five (5) business days from the board meeting or shareholders meeting convened to review such equity transfer by the
Existing Shareholder. In case more than one Investor have decided to exercise their right of first refusal, such shareholding interest shall be allocated between them in proportion to their shareholding interests. When an Investor opts to exercise
its right of first refusal, it shall give a pertinent written notice to such Existing Shareholder setting out the number/amount of the shareholding interest with respect to which it has opted to exercise its right of first refusal, failing which it
shall be deemed to have waived its such right. 

  
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 9.4.2 Tag-Along Right 

When an Existing Shareholder intends to transfer, directly or indirectly, its interest in the Target Company to any third party, the Investors shall have the
option to demand to sell the same proportion of their shareholding interests to the same third party at the same price and on the same condition as the Existing Shareholder, and the Existing Shareholder shall ensure that the purchaser shall acquire
the shareholding interests proposed to be transferred by the Investors at the price at which it acquires shareholding interest from the Existing Shareholder. The Investors shall decide whether to exercise their
tag-along rights within five (5) business days from the board meeting or shareholders’ meeting convened to review such equity transfer by the Existing Shareholder. When an Investor opts to exercise
its tag-along right, it shall give a pertinent written notice to such Existing Shareholder setting out the number/amount of the shareholding interest with respect to which it has opted to exercise its tag-along right, failing which it shall be deemed to have waived its such right. 
 9.4.3 Right to Demand Buybacks 

Upon Investment Completion, if the Target Company’s average full-year net return on assets (Note: Full-Year Net Return on Assets = Full-Year Net Profits /
Full-Year Net Assets) during the 3-year period from 2017 to 2019 is lower than 6%, the Investors shall each be entitled to demand the Existing Shareholders to buy back all or part of their shareholding
interests in the Target Company at 100% of the amounts invested by the Investors hereunder plus 6% annualized interest (simple interest) (annualized return shall be translated as far as possible into a daily value and shall accrue from the date of
full payment of investment amounts (in the case of Party B) or the execution date of this Agreement (in the case of Party C) through the date of actual receipt of the buyback price ) and the Existing Shareholders shall mutually assume joint and
several guarantee liabilities for the aforesaid buyback obligation, provided that any compensatory payments, dividends and other incomes previously received by the Investors shall be deducted from such equity buyback price. 

If any Investor demands a buyback in accordance with the preceding paragraph, then such Investor and the Existing Shareholders shall all be obligated to
notify the other Investors, failing which such Investor shall not exercise its right to demand buybacks. 

  
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 9.4.4 Drag-Along Right 

Unless otherwise agreed herein, if the Target Company’s average full-year net return on assets (Note: Full-Year Net Return on Assets = Full-Year Net
Profits / Full-Year Net Assets) during the 3-year period from 2017 to 2019 is lower than 6%, then in addition to its right to demand the Existing Shareholders to buy back under Article 9.4.3 hereof, Party B
may (and shall be entitled to) equally opt to transfer all of its shareholding interests in the Target Company to any third party. In such event, provided that Party B agrees for such third party to acquire all of its shareholding interests in the
Target Company and the purchase price of such third party is not lower than the Post-Money Valuation, then the Existing Shareholders and other shareholders shall agree to the terms and conditions for the acquisition by such third party of all
relevant shareholding interests in the Target Company and shall procure their appointed directors to adopt the agreement(s) pertaining to the acquisition by such third party of all relevant shareholding interests in the Target Company. Any
shareholder of the Target Company whose appointed director has disagreed with the terms and conditions for such acquisition by such third party of all relevant shareholding interests in the Target Company shall purchase all of Party B’s
shareholding interest in the Target Company at the price proposed to be paid by such third party for the acquisition of such shareholding interests. The Parties have no objection whatsoever with respect to the foregoing and hereby waive all of their
defenses. 
 9.4.5 Preemptive Right 
 If, following the
Investment Completion, the shareholders’ meeting of the Target Company resolves to effect a subsequent capital increase, then under the same conditions, the Investors shall have the preemptive right with respect to the same in proportion to
their shareholding interests in the Target Company. If an Existing Shareholder of the Company also asserts its preemptive right, then the Investors and such Existing Shareholder of the Company shall determine their respective shares of investment
subscription through consultations, failing which the Investors and such Existing Shareholder of the Company shall subscribe for the capital increase in proportion to their then shareholding interests in the Target Company. 

  
 19 

 9.5 Material Matter Decision Powers 

Upon Investment Completion, decisions by the Target Company and its subsidiaries on the following matters must be resolved upon by its board of directors and
shall only be adopted by the unanimous affirmative vote of all directors (in the case of the matters set out in subparagraphs (1) through (4)) or by the affirmative vote of more than half of the directors (in the case of the matters set out in
subparagraphs (5) through (9)): 
  

	 	(1)	Dissolution or liquidation of the Target Company; 

  

	 	(2)	Increase or decrease of the registered capital of the Target Company; 

  

	 	(3)	Combination or division of the Target Company; 

  

	 	(4)	Change in the composition of the board of directors of the Target Company and any change to the arrangement for the appointment of directors set out in Article 8.2 hereof; 

 

	 	(5)	Matters resulting in the main business of the Target Company exceeding the business scope stated in its business license; 

  

	 	(6)	Material debt financing activities of the Target Company involving an amount of RMB5 million or above; 

  

	 	(7)	Mergers, acquisitions, external investments or assets disposals outside of the main business of the Company involving a transaction value greater than 100% of the total assets of the Target Company or
RMB10 million; 

  

	 	(8)	Provision by the Target Company of guarantees for the indebtedness of other entities or individuals outside of the requirements of the business operations of the Target Company; 

 

	 	(9)	Any single Related Party Transaction of the Target Company with a value greater than RMB1 million. 

Article 10 Representations and Warranties 
  

	10.1	The Target Company and the Existing Shareholders hereby jointly and severally represent and warrant to the Investors as follows: 

  

	10.1.1	The Target Company is lawfully incorporated and validly existing, has fully paid up its registered capital and is free from any circumstance of underpayment of registered capital, fraudulent contribution of registered
capital, or illicit withdrawal of registered capital. The previous equity transfers and investments by the Existing Shareholders of the Target Company are all lawful and authentic. The description of the current shareholding structure is true,
complete and accurate, free from any fraudulent, untrue or misleading statement or any omission. Other than the pledge to KIP and those circumstances otherwise agreed hereunder, no charge, pledge, third party right, scheme of nominee shareholding or
other encumbrance has been created by the Existing Shareholders on their shareholding interests, nor do there exist any agreements, arrangements or obligations creating any encumbrance in respect of such shareholding interests. 

  
 20 

	10.1.2	The outstanding Indebtedness (i.e. bank loans, shareholder loans and other types of borrowings) of the Target Company as of the date hereof has been truthfully disclosed to the Investors (as more fully described in the
list of indebtedness); and other than those disclosed items, there are no undisclosed Indebtedness having a material effect on the Proposed Investment. 

  

	10.1.3	The assets (i.e. direct-sale stores and trademarks, patents, copyrights, domain names in financial statements) owned by the Target Company as of the date hereof are all lawful properties of the Target Company, free and
clear of any ownership dispute and any charge, pledge or other restriction of rights having a material effect on the Proposed Investment. 

  

	10.1.4	As of the date hereof, the Target Company does not have any outstanding external guarantees (including but not limited to guarantees provided for the account of shareholders or other third parties) or any other external
commitments likely to result in the Company being held jointly and severally liable and as such have a material effect on the Proposed Investment. 

  

	10.1.5	Financial Data: The content of the Zhonghui accounting firm audit report as of the audit base date of May 31, 2016 as provided by the Company is true and valid and is free and clear of any material omission or
concealment likely to have a material effect on the transactions contemplated hereunder. 

  

	10.1.6	The Company has duly submitted tax returns and other relevant documents to tax authorities and there exists no tax dispute. 

  
 21 

	10.1.7	Insurance: The Company has taken out relevant insurance policies for its material assets. 

  

	10.1.8	Currently the senior management personnel have fully complied with the provisions of laws and those of the employment contracts between the Company and such personnel in all material respects; and the employment
relationship entered into by the senior management personnel and the Company is not in breach of any non-compete obligations agreed with third parties. 

 

	10.1.9	Litigation and Administrative Sanctions: Other than those expressly disclosed, currently, the actual controller of the Company and the Company and its directors and senior management personnel are not involved in any
claim, litigation, arbitration, judicial investigation or administrative investigation or sanction which concerns the operations of the Company, remains pending and creates a material effect on the operations of the Company and whose amount at issue
exceeds RMB10, 000. 

  

	10.1.10	Anti-Corruption Clause: Neither the Company nor its Existing Shareholders have gifted any equity, given any large-amount gift, transferred any equity at a nominal, low price or funneled other benefits to the personnel
of the Investors or engaged in similar laws or rules-breaching conduct intended to influence or interfere with the Investors’ normal investment decision and post-investment management to the detriment of the interest of the Investors.

  

	10.1.11	Prohibition of Related Party Transactions: Other than the disclosed Related Party Transactions between the Target Company and the Existing Shareholders, there exist no Related Party Transactions of any kind between the
Target Company and the Existing Shareholders. 

  

	10.2	The Investors hereby represent, warrant and undertake to the Existing Shareholders and the Target Company with respect to the Proposed Investment as follows: 

 

	10.2.1	Party B is an enterprise duly incorporated and validly existing under the laws of PRC; Party C is an enterprise duly incorporated and validly existing under the laws of the Republic of Korea. 

  
 22 

	10.2.2	The Investors have obtained all necessary internal and external approvals or authorizations and possess all legitimate rights, powers and authorities to enter into this Agreement and to perform their obligations under
this Agreement. 

  

	10.2.3	Party B will pay all of the investment amounts in accordance with this Agreement and the sources of its funds are legal. 

  

	10.2.4	The Investors will assist the Target Company in connection with the completion of relevant formalities, including without limitation the formalities required for the effectiveness of this Agreement and relevant
documents under PRC laws, and the approval and industry and commerce authority registration formalities involved in the Restructuring. 

Article 11 Closing 
  

	11.1	Within ten (10) business days from the registration of the Proposed Investment with the industry and commerce authority and the consummation by the Investors of their corresponding Contributions, the Target Company
and the Existing Shareholders shall furnish the following documents or materials to the Investors: 

  

	11.1.1	Copies of the amended business license of the Target Company affixed with company common seal; 

  

	11.1.2	Copies of the New Articles of the Target Company, copies of the board resolution(s) changing the composition of the board of directors in accordance with this Agreement; and copies of the letters appointing directors
and supervisory board member(s); 

  

	11.1.3	Original capital contribution certificates signed by the legal representative of the Target Company and affixed with the common seal of the Target Company, setting forth the particulars of the shareholding interests of
the Investors in the Target Company; and 

  
 23 

	11.1.4	The shareholder register issued by the Target Company. 

 Article 12 Interim Period
Arrangement 
  

	12.1	The Target Company and the Existing Shareholders hereby undertake to the Parties that: during the Interim Period, they shall ensure that the Target Company and its subsidiaries shall duly carry on their business as it
has been and is currently conducted by the Target Company and its subsidiaries, and except for the purpose of the performance of the Agreement, without prior written consent of the Investors, neither the Target Company nor the Existing Shareholders
shall conduct or cause the Target Company and its subsidiaries to conduct any of the following activities: 

  

	12.1.1	to supplement, amend or modify in any form the articles of association or other organizational documents of the Target Company; 

  

	12.1.2	to cause or permit the Target Company to sell, assign, mortgage or otherwise dispose of any of its material assets or businesses (other than in the ordinary course of business), or make external investments, or engage
in any form of external financing, or acquire material assets of other persons, or create any encumbrance on its assets, or make any of the above commitments; 

  

	12.1.3	to cause or permit the Target Company to incur any material liabilities (other than in the ordinary course of business) or provide any loans or guarantees to any third party; 

 

	12.1.4	to cause or agree for the Target Company to conclude any material agreement (other than in the ordinary course of business); 

  

	12.1.5	to cause or agree for the Target Company to split or merge with others, or make any external investment; 

  

	12.1.6	to distribute the accumulated undistributed profits of the Target Company to the Existing Shareholders; 

  
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	12.1.7	to engage in any other act which is likely to have a material adverse effect on the Target Company and/or its existence, business, operation, management, assets, financial conditions and other aspects;

  

	12.1.8	to solicit or support, directly or indirectly, any third party’s requests, proposals and offers with respect to equity financing or sales of equity; offer any third party negotiations and discussions with respect
to equity financing or sales of equity; enter into any agreements or arrangements with respect to equity financing or sales of equity with third parties; or 

  

	12.1.9	any form of Related Party Transactions between the Target Company and the Existing Shareholders with respect to the Company’s business operations. 

Article 13 Party D’s Post-Investment Equity Swap 

13.1 Upon Investment Completion, the Parties shall immediately conduct the formalities regarding the transfer by Party D of its equity in Party A to Party C,
whereupon all the other shareholders shall sign relevant board resolutions and other related documents approving such equity transfer and waiving their rights of first refusal, and shall cooperate in the relevant filing, approval and registration
procedures. The price for the transfer by Party D of its equity to Party C shall be equal to the amount of Party D’s investment in Party A under this Agreement. The Parties acknowledge that Party D’s Post-Investment Equity Swap shall be
without prejudice to the legal effect the Agreement and that the Parties shall still enjoy their respective rights and perform their respective obligations as agreed herein. 

13.2 The Parties shall procure that the Post-Investment Equity Swap matters shall achieve within 6 months from the Investment Completion the filing
with/approval from the competent commerce department or the change registration with the administrative authority for industry and commerce (whichever is earlier). 

13.3 Specific matters pertaining to the Post-Investment Equity Swap shall be dealt with in accordance with Annex V hereto. 

  
 25 

 13.4 Upon Investment Completion and prior to the consummation of the above-stated equity transfer, all rights in
and to the equity held by Party D in the Company shall be actually enjoyed by Party C; Party D is only a nominal shareholder. 
 13.5 Party C’s
convertible debt creditor rights under the Bond Subscription and Investment Agreement by and among Party C, Yi Bai Hotel and other parties thereto shall be the consideration for its acquisition of Party D’s equity in the Company. 

13.6 Upon completion of the equity transfer set out herein, the Bond Subscription and Investment Agreement by and among Party C, and Yi Bai Hotel and other
parties thereto shall immediately terminate and no longer apply. With respect to the facts or acts before such termination, contractual liabilities among the Parties have been satisfied, and there are no claims of payment, compensation or
indemnity among the Parties, either now or in the future. 
 13.7 With respect to the liabilities and obligations assumed by the Company and the Existing
Shareholders towards Party C under the Agreement and its Annexes, the Existing Shareholders shall pledge the 15% equity held by them in the Company upon the Investment Completion to Party C for a term of three years, and shall complete the pledge
registration within 60 days upon Investment Completion. The Parties shall at the relevant time agree and procure their appointed directors to agree such equity pledge-related matters. 

Article 14 Modification and Termination of the Agreement 

14.1 Upon occurrence of one or more of the following circumstances, the Investors or the Existing Shareholders are entitled to unilaterally terminate the
Agreement with written notice: 
 14.1.1 The disapproval by the competent commerce department of the investment and equity transfer transactions
contemplated hereunder results in the investment and equity transfer transactions contemplated hereunder being incapable of taking effect or the fundamental provisions of this Agreement being incapable of being performed, materially affecting
thereby commercial purposes of the Investors, the Existing Shareholders or the Target Company at the time of execution of this Agreement; 

  
 26 

 14.1.2 If any change occurs to the laws, regulations and rules upon which this Agreement is based and thus
renders the main contents of this Agreement unlawful, or any Party hereto is incapable of performing its main obligations hereunder due to a policy or order of the state; or 

14.1.3 Any Party commits a material breach, causing thereby the non-completion of the Proposed Investment or the
failure to fulfill the commercial purpose of the Agreement. 
 14.2 Upon the Parties’ unanimous consent, the Parties may rescind or terminate the
Agreement in writing prior to the Investment Completion. 
 Article 15 Liability for Breach 

15.1 General Principle 
 The Parties hereto shall conscientiously
perform the Agreement based on the principle of honesty and good faith. If any Party breaches the provisions of this Agreement, it shall be deemed to have been in breach of this Agreement and shall, unless otherwise agreed herein, indemnify the
other Parties against all of their resulting losses (including but not limited to the arbitration fees, the attorney’s fees and the investigation and evidence collection fees incurred in connection with their claims) and shall be liable to
continue to perform this Agreement and to take remedial measures. 
 15.2 The occurrence of any of the following circumstances shall constitute an event of
default under the Agreement or its Annexes: 
 15.2.1 Representations and warranties made by any Party under the Agreement or its Annexes are proved to be
untrue or materially misleading or contain material omissions; 
 15.2.2 Any Party violates its undertakings under the Agreement or its Annexes; or 

  
 27 

 15.2.3 Any Party fails to perform the obligations under the Agreement or its Annexes. 

15.3 Upon occurrence of any of the events of default set forth in Article 15.2, in light of the content of the event of default, a Party hereto (the
“Defaulting Party”) shall assume in the following manner the breach of contract liabilities by continuing to perform this Agreement, taking remedial measures and indemnifying for the losses of the other Party(ies) directly targeted by such
event of default and/or their respective successors of rights and obligations (collectively the “Non-Defaulting Parties”). The Non-defaulting Parties shall
have the discretion to exercise the right to terminate this Agreement and to demand the Defaulting Party to assume the breach of contract liabilities pursuant to this Agreement. The Defaulting Party hereby waives any objections to the default
treatment method chosen by the Non-defaulting Parties. 
 15.4 Special Agreements 

15.4.1 In case that Party B fails to pay its investment amount as agreed herein, for each day of delay, Party B shall pay Party E liquidated damages equivalent
to one tenth of one percent of the payable but outstanding investment amount; in case that Party B’s delay in the payment of its investment amount lasts twenty (20) business days, Party B shall pay Party E liquidated damages in the amount
of RMB10,000,000.00 (ten million Yuan Renminbi) and shall continue to indemnify the other Parties against all of their resulting losses ( if the liquidated damages are not sufficient to cover losses) (including but not limited to the arbitration
fees, the attorney’s fees and the investigation and evidence collection fees incurred in connection with their claims). In addition, the Agreement shall be continuously performed, provided however that the
Non-defaulting Parties shall have the discretion to exercise the right to terminate this Agreement and to demand the Defaulting Party to assume the breach of contract liabilities pursuant to this Agreement.
The Defaulting Party hereby waives any objections to the default treatment method chosen by the Non-defaulting Parties. 

  
 28 

 15.4.2 Upon completion by the Company of the approval procedures for the Proposed Investment, if Party A, Party
D, Party E do not agree to Party B’s investment, or fail to perform their respective obligations hereunder, or fail to cooperate in the change (including but not limited to shareholding change, board members change) registration formalities
with the administrative authority for industry and commerce within ten (10) business days from the approval by the competent commerce department of the Proposed Investment, for each day of delay, the Defaulting Parties agree to pay the Non-defaulting Parties liquidated damages equivalent in aggregate to one tenth of one percent of the payable but outstanding investment amounts; in case that the delay lasts for twenty (20) business days, the
Defaulting Parties shall pay the Non-defaulting Parties liquidated damages in an aggregate amount of RMB10,000,000.00 (ten million Yuan Renminbi) and shall continue to indemnify the Non-defaulting Parties
against all of their resulting losses if the liquidated damages are not sufficient to cover the losses (including but not limited to the arbitration fees, the attorney’s fees and the investigation and evidence collection fees incurred in
connection with their claims). In addition, the Agreement shall be continuously performed, provided however that the Non-defaulting Parties shall have the discretion to exercise the right to terminate this
Agreement (if the conditions to the termination of the Agreement have been satisfied) and to demand the Defaulting Party to assume the breach of contract liabilities pursuant to this Agreement. The Defaulting Party hereby waives any objections to
the default treatment method chosen by the Non-defaulting Parties. 
 Article 16 Force Majeure

 16.1 Force Majeure Event 
 A Force Majeure Event
includes but is not limited to acts of God, war, acts of terrorism, riots, fires, explosions, earthquakes, epidemics or other unforeseeable, irresistible and unavoidable events arising due to any changes in laws, administrative regulations or
department rules, or any other reasons beyond the reasonable control of the affected Party(ies). 
 16.2 Force Majeure Event Notification 

If after the execution of this Agreement, any Party is prevented from fulfilling the terms and conditions of the Agreement as a result of the occurrence of any
Force Majeure Event, such affected Party shall within ten days from the occurrence of such Force Majeure Event give the other Parties hereto a written notice accompanied by supporting documents with legal effect to prove occurrence of such Force
Majeure Event and that such Force Majeure Event occurs no later than the delay in performance. 

  
 29 

 16.3 Excused Breach 

Neither delayed performance nor non-performance of the Agreement due to a Force Majeure Event shall constitute a breach
of the affected Party, nor shall it give rise to any claims for damages, losses or penalties, in which case each Party shall remain obligated to take reasonably practicable measures to perform this Agreement. Upon elimination of the Force Majeure
Event, the affected Party shall give the other Parties a written notice setting out the elimination of the Force Majeure Event as soon as possible, and the other Parties shall confirm their receipt of such written notice upon receipt. 

Article 17 Confidentiality 
 17.1 The
Parties hereto agree to maintain in confidence any and all information provided by or on behalf of a Party to the other Parties in connection with all material aspects of the transactions contemplated hereunder and/or information contained herein
(other than the information proved to have been received, disclosed or made public by duly authorized third parties), and agree not to disclose such information to any other party (other than the employees, officers and directors of the disclosing
Party who have a need to know such information in connection with the transactions contemplated hereunder) without the written consent of the other Parties except if such information is disclosed: (1) to the lawyers, the accountants, the
advisors and the consultants who have a need to know such information in connection with the transactions and are bound by a non-disclosure agreement; (2) to the relevant PRC governmental or regulatory
authorities as required by applicable laws and regulations; and (3) in accordance with the requirements of applicable laws and regulations; provided, however, that prior to such disclosure, the disclosing Party shall notify the other Parties of
its intended disclosure and proposed disclosure content either orally or in writing. Without prior written consent of the other Parties, no Party shall make any public disclosure or statement to the media with respect to the transactions
contemplated hereunder. 

  
 30 

 Article 18 Governing Law and Dispute Resolution 

18.1 Governing Law 
 The entry into, effectiveness, performance,
interpretation, amendment and termination of, and other matters related to this Agreement shall be governed by the laws, regulations and rules of the People’s Republic of China. 

18.2 Dispute Resolution 
 Any dispute arising out of or relating
to this Agreement shall be resolved through friendly consultations of the Parties. If such friendly consultations fail, such dispute shall be referred to Shanghai Arbitration Commission for arbitration in Shanghai in accordance with the then
effective arbitration rules of such commission. The arbitral award shall be final and binding upon the Parties. 
 Article 19
Miscellaneous 
 19.1 Notice 
 19.1.1 Except where any
other provisions are provided herein with respect to the telephone instructions or notices, all notices, requests, instructions and other communications required or permitted to be given to any Party hereunder shall be in writing and signed by or on
behalf of the notifying Party. Notices shall be sent by fax, or by hand, prepaid registered letter, registered mail or special courier service and addressed to the addresses or fax numbers set forth in Article 19.1.2 (or such other addresses or fax
numbers as may be duly notified pursuant to this Article). Notices sent by hand, by fax or by mail shall be deemed duly given: 
 (1) upon
receipt, if delivered by hand; 
 (2) at the time of transmission of the relevant fax if the fax is sent or a confirmation of successful
transmission is generated by the fax machine in case of delivery by fax; 

  
 31 

 (3) at 5:00 PM on the 5th day after mailing
if delivered by prepaid registered mail or registered mail (with return receipt requested); or 
 (4) at 9:00 AM on the 3rd day after mailing if delivered by special courier service. 
 19.2 The addressees and fax numbers of the
Parties for the purposes of the notice referred to in Article 19.1.1 are as follows: 
 Yibon Hotel Group Co., Ltd 

Address: Floor 4, No329, Qing Shan Road, Minhang District, Shanghai 

Recipient: Wu Yuechun 
 Fax No.:
021-34786601 
 Shanghai Bei Fu Industrial Co., Ltd 

Address: Suite A29, Floor 4, No.477, Fute West First Road, Free Trade Zone (Shanghai), China 

Recipient: Xu Shuguang 
 Fax No.:
021-56531299 
 KIP 17 

Address: Room 4102, No.1468, Nanjing West Road, Jing’an District, Shanghai 

Recipient: Zheng Yanjun 
 KIP 20 

Address: Room 4102, No.1468, Nanjing West Road, Jing’an District, Shanghai 

Recipient: Zheng Yanjun 
 Ru Shi Limited 

Address: Floor 4, No.329, Qing Shan Road, Minhang District, Shanghai 

Recipient: Wu Yuechun 
 Fax No.:
021-34786601 
 Yibon Group Existing Shareholders (Representative) 

Address: Floor 4, No.329, Qing Shan Road, Minhang District, Shanghai 

Recipient: Wu Yuechun 
 Fax No.:
021-34786601 

  
 32 

 19.1.3 If due to internal reasons of the entity or unit, any notice, request, demand, consent, approval,
statement or other communication fails to be served or is served in a delayed manner on the designated addressee, its effectiveness shall not be affected so long as the notifying Party is capable of proving its receipt by the receiving Party. 

19.2 Severability 
 If any term, commitment, condition or
provision of this Agreement becomes illegal, invalid or unenforceable for whatever reason, such illegality, invalidity or unenforceability shall not affect the remainder of this Agreement, which shall remain valid, enforceable and in full force and
effect as if no illegal, invalid or unenforceable provisions were contained herein. 
 19.3 Amendment 

No amendment to this Agreement may take effect unless it is in writing and duly signed by each Party. The term “amendment” shall include any
modification, supplement, deletion or novation. Any amendment to the Agreement shall constitute an integral part of the Agreement. 
 19.4 For the purposes
of the filling, approval and registration of the Restructuring, the Parties may enter into separate investment agreements and equity transfer agreements. Unless otherwise specified at the applicable time, in case of any discrepancy between the
provisions of such separate investment agreements or equity transfer agreements and the provisions of this Agreement, the provisions of this Agreement shall prevail. 

19.5 Waiver 
 Unless expressly waived or amended in writing, the
rights of the Parties hereunder shall not be waived or amended. No failure or delay by any Party in exercising any right shall operate as a waiver or amendment of that or any other right, nor shall any defective or partial exercise of any right
preclude any other or further exercise of that or any other right. Neither act, implementation process or negotiation of any Party shall prevent in any manner such Party from exercising any of such rights, nor shall it constitute an interruption to,
or an amendment of, such rights. 

  
 33 

 19.6 Entire Agreement 

The Agreement constitutes the entire agreement among the Parties with respect to the subject matters hereof and supersedes all prior discussions, negotiations
and agreements. Without unanimous consent of the Parties, no separate agreement may be entered into by and among some of the Parties with respect to any matters which have been expressly agreed upon herein. 

19.7 Titles 
 The titles used in this Agreement or its Annexes
are inserted for convenience only and shall not affect the meaning and interpretation of any provisions of the Agreement. 
 19.8 Annex 

The Annexes listed in this Agreement, together with the body text of this Agreement, shall form the entire text of this Agreement. The Annexes shall have the
same legal effect as the body text of this Agreement. Each of the Parties undertakes to be bound by the Annexes and to perform their respective legal obligations thereunder. 

19.9 Copies 
 This Agreement is made in ten original copies, of
which Party A, Party B, Party C and Party D shall each hold two copies, and the rest shall be retained by the Company; each copy shall have same legal effect. 

  
 34 

 19.10 Effectiveness 

This Agreement shall be formed and become effective once it is executed or sealed by the Parties or their authorized representatives, and the Parties shall
cooperate in carrying out the relevant filling and approval formalities with the competent commerce departments. 
 [No
Operative Text Below] 

  
 35 

 (No operative text on this page, signature page to the Investment Agreement) 

Yibon Hotel Group Co., Ltd (seal) 
  

			
	Signature:	 	 (sgd)

	Name:	 	Wu Yuechun
	Title:	 	Legal Representative

  
 36 

 (No operative text on this page, signature page to the Investment Agreement) 

 

			
	Shanghai Bei Fu Industrial Co., Ltd (seal)
		
	Signature:	 	 (sgd)

	Name:	 	ALEX SHUGUANG XU
	Title:	 	Legal Representative

  
 37 

 (No operative text on this page, signature page to the Investment Agreement) 

 

			
	KIP Growth Capital Fund No.17 (seal)
		
	Signature:	 	 (sgd)

	Name:	 	
	Title:	 	

  

			
	Korea Investment Global Frontier Fund No.20 (seal)
		
	Signature:	 	 (sgd)

	Name:	 	
	Title:	 	

  
 38 

 (No operative text on this page, signature page to the Investment Agreement) 

 

			
	Ru Shi Limited
		
	Signature:	 	 (sgd)

	Name:	 	Wu Yuechun
	Title:	 	

  
 39 

 (No operative text on this page, signature page to the Investment Agreement) 

 

			
	Yibon Group Existing Shareholders:
		
	Chen Guoguang	 	Wu Ruobing
	Wu Yuechun	 	Xu Haodi
	Chen Jiansu	 	Zheng Lei
	Wei Xilin	 	Xu Genghui
	Zhang Heqi	 	Cai Siquan
	Wang Hongdong	 	Yan Tiangong
	Chen Fangwei	 	Yuan Lili
	Zhang Kai	 	He Le
	Huang Fuxin	 	Luo Wending
	Yuan Shaorong	 	Li Ke
	Wang Jie	 	Wang Mingquan
	Yan Weidong	 	Lv Lianping
	Wu Xianyong	 	Zhang Le
	Li Qiang	 	Ding Limin
	Chen Ruijuan	 	

  
 40 

 Supplementary Agreement to the Investment Agreement 

This supplementary agreement (this “Agreement”) supplements the Investment Agreement (the “Investment Agreement”) dated
April 5, 2017. In accordance with the first paragraph of Article 8.10 of the Investment Agreement, if and when Party B or its affiliated company engaged in hotel-related business intends to conduct an initial public offering or otherwise lists
their equity securities on a stock exchange, then prior to the submission by such entity (“Listing Entity”) of the listing application, Party B shall notify the other Parties who will then be entitled to exchange their shareholding
interests in the Company for the shareholding interests in the Listing Entity at an exchange price reflecting the reasonable valuation of the Company. Unless otherwise defined herein, the defined words used in this Agreement shall have the same
meaning as those used in the Investment Agreement. 
 If Party B is listed on the New York Stock Exchange by the end of 2019, the Parties hereby agree as
follows: 
  

	1.	The Parties agree to waive their relevant rights under the first paragraph of Article 8.10 of the Investment Agreement. 

  

	2.	Within two weeks from the Target Company furnishing to Party B (no later than April 30, 2020) its audited 2019 financial statements (“Target Company Financial Statements ”) prepared in accordance
with the US GAAP and issued by a Big Four auditor, the shareholders of the Target Company shall be entitled to demand Party B to procure the exchange of all or part of their shareholdings in the Target Company for the shareholdings in
the Listing Entity ( “Share Exchange”), either by way of the issuance by the Listing Entity of its shares to the Share Exchange shareholders, or by way of the assignment by Party B or a Party
B-designated third party of the Listing Entity shares to the Share Exchange shareholders. 

  
 1 / 8 

	3.	The number of the Listing Entity shares to be exchanged for under Paragraph 2 above shall be calculated using the formula below: 

Target Company 2019 Net Profits After Non-Recurring Gains and Losses * Listing
Entity 2019 P/E Ratio After Non-Recurring Gains and Losses ÷ Listing Entity Shares Average Trading Price * Shareholder’s Shareholding Percentage in Target Company

 “Target Company Net Profits” means the consolidated after-tax net profits of the
Target Company reported in the Target Company Financial Statements ( but after the elimination of the impact of non-recurring gains or losses). 

“Listing Entity Shares Average Trading Price” means the average of the closing prices (to be converted to RMB at the
latest middle exchange rate for RMB to US dollar on the trading date published by China Foreign Exchange Trading Center) of the Listing Entity shares over the twenty trading days preceding the date on which Target Company furnishes the Target
Company Financial Statements to Party B pursuant to Paragraph 2 above. 
 “Listing Entity P/E Ratio” means the Listing
Entity Shares Average Trading Price divided by the 2019 total net profits of the Listing Entity (after deduction of non-recurring gains or losses) and then multiplied by the total number of the Listing Entity
shares. The Target Company and the Listing Entity shall apply the same P/E ratio in calculating their valuations. 
 In accordance with
Article 8.10 of the Investment Agreement, the valuation of the Target Company shall in no event be lower than the Post-Money Valuation. 

  
 2 / 8 

	4.	After the assertion of its Share Exchange demand and before the implementation of the Share Exchange, each Share Exchange shareholder shall complete the PRC outbound investment approval formalities for its Share
Exchange (if required), including without limitation the State Administration of Foreign Exchange approval. If a Share Exchange shareholder fails to complete outbound investment approval formalities (if required) within 1 year from the assertion of
its Share Exchange demand, the relevant Parties shall reach a solution thorough discussions and Party B shall bear no breach of contract liabilities. Party B shall ensure that Share Exchange shareholder shall acquire the Listing Entity shares within
6 months from their completion of outbound investment approval formalities (if required), failing which Party B shall bear breach of contract liabilities (unless otherwise agreed by the relevant Parties). 

The Parties have executed this Agreement as of this day of             . 

  
 3 / 8 

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	Yibon Hotel Group Co., Ltd
		
	Signature:	 	 (sgd)

  
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	Ru Shi Limited
		
	Signature:	 	 (sgd)

  
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	Yibon Group Existing Shareholders
		
	Chen Guoguang	 	Wu Ruobing
	Wu Yuechun	 	Xu Haodi
	Chen Jiansu	 	Zheng Lei
	Wei Xilin	 	Xu Genghui
	Zhang Heqi	 	Cai Siquan
	Wang Hongdong	 	Yan Tiangong
	Chen Fangwei	 	Yuan Lili
	Zhang Kai	 	He Le
	Huang Fuxin	 	Luo Wending
	Yuan Shaorong	 	Li Ke
	Wang Jie	 	Wang Mingquan
	Yan Weidong	 	Lv Lianping
	Wu Xianyong	 	Zhang Le
	Li Qiang	 	Ding Limin
	Chen Ruijuan	 	

  
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	Korea Investment Global Frontier Fund No.20
		
	Signature:	 	 (sgd)

	Name:	 	
	Title:	 	

  
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	KIP Growth Capital Fund No.17
		
	Signature:	 	 (sgd)

	Name:	 	
	Title:	 	

  
 8 / 8Exhibit

EXHIBIT 10.3

THE EXECUTIVE NONQUALIFIED EXCESS PLAN
OF WERNER ENTERPRISES, INC.
Restated Effective January 1, 2015

Table of Contents

ARTICLE I
DEFINITIONS
ARTICLE II
ELIGIBILITY AND PARTICIPATION
		
	Section 2.01.
	Eligibility and Participation

		
	Section 2.02.
	Enrollment

		
	Section 2.03.
	Plan Re‐entry

		
	Section 2.04.
	Failure of Eligibility

ARTICLE III
CONTRIBUTION DEFERRALS
		
	Section 3.01.
	Participant Deferrals

		
	Section 3.02.
	Deferral Credit

		
	Section 3.03.
	Timing of Election

		
	Section 3.04.
	Mid-year Elections

		
	Section 3.05.
	Deferral Election Modifications

		
	Section 3.06.
	Special Election for Performance-Based Compensation

		
	Section 3.07.
	Compensation Paid in Subsequent Year

		
	Section 3.08.
	Cancellation of Election

		
	Section 3.09.
	Employer Credits

ARTICLE IV
INVESTMENT OF DEFERRALS AND ACCOUNTING
		
	Section 4.01.
	Investment Credit

		
	Section 4.02.
	Limitations on Investments

		
	Section 4.03.
	Underlying Investments

ARTICLE V
DISTRIBUTIONS
		
	Section 5.01.
	Distribution Elections Generally

		
	Section 5.02.
	Time and Form of Distribution

		
	Section 5.03.
	Vesting of Benefits

		
	Section 5.04.
	Election Changes

		
	Section 5.05.
	Domestic Relations Orders

		
	Section 5.06.
	Unforeseeable Emergency

		
	Section 5.07.
	Beneficiaries    13

ARTICLE VI
COMMITTEES
		
	Section 6.01.
	Appointment of Committees

		
	Section 6.02.
	Responsibilities of the Committee

		
	Section 6.03.
	Indemnification of Committee Members    

ARTICLE VII
CLAIMS PROCEDURES
		
	Section 7.01.
	Filing a Claim

		
	Section 7.02.
	Review of Initial Claim

		
	Section 7.03.
	Appeal of Denial of Initial Claim

		
	Section 7.04.
	Review of Appeal

		
	Section 7.05.
	Form of Notice to Claimant

		
	Section 7.06.
	Discretionary Authority of Committees

ARTICLE VIII
TRUST
		
	Section 8.01.
	Trust Agreement

		
	Section 8.02.
	Expenses of Trust

ARTICLE IX
AMENDMENT AND TERMINATION
		
	Section 9.01.
	Termination of Plan

		
	Section 9.02.
	Amendment by Board of Directors

ARTICLE X
MISCELLANEOUS
		
	Section 10.01.
	Funding of Benefits; No Fiduciary Relationship

		
	Section 10.02.
	Inalienability of Benefits

		
	Section 10.03.
	Disposition of Unclaimed Distributions

		
	Section 10.04.
	Tax Withholding

		
	Section 10.05.
	Employment Status

		
	Section 10.06.
	Validity and Severability

		
	Section 10.07.
	Governing Law

		
	Section 10.08.
	Right of Offset

		
	Section 10.09.
	Conformance With Applicable Laws

		
	Section 10.10.
	Payments Due Minors or Incapacitated Persons

		
	Section 10.11.
	Distribution Delay for Specified Employees

          THE EXECUTIVE NONQUALIFIED EXCESS PLAN
OF WERNER ENTERPRISES, INC.

Restated Effective January 1, 2015
PREAMBLE
Werner Enterprises, Inc., a Nebraska corporation, established the Executive Nonqualified Excess Plan of Werner Enterprises, Inc. originally effective August 15, 2005 (the “Plan”).  Section 14 of the Plan, as restated effective June 1, 2009, permits the Company to amend the Plan from time to time.  Pursuant to that right, the Plan is hereby restated effective January 1, 2015.
The Plan was established and is maintained in consideration of the valuable services provided by eligible employees to the Company or its Affiliates and to induce such employees to enter into or remain in the employ of the Company or its Affiliates.
The Plan as restated is intended to provide for the Plan’s compliance with Internal Revenue Code (the “Code”) Section 409A and the Treasury Regulations issued thereunder as in effect from time to time.  The Plan shall be construed and administered as necessary to comply with these requirements.
The Company intends that the Plan shall not be treated as a “funded” plan for purposes of either the Code or ERISA.  The provisions of this Plan shall apply only to individuals who terminate their employment with the Company on or after the restated Effective Date and the Spouses and Beneficiaries of such persons.
ARTICLE I
DEFINITIONS

Defined terms used in this Plan shall have the meanings set forth below, and the masculine shall be deemed to include the feminine and the singular shall be deemed to include the plural:
“Active Participant” means, with respect to any day or date, a Participant who is in Service on such day or date; provided, that a Participant shall cease to be an Active Participant (i) immediately upon a determination by the Committee that the Participant has ceased to be an Employee, or (ii) at the end of the Plan Year that the Committee determines the Participant no longer meets the eligibility requirements of the Plan.
“Affiliate” means the Company and any other entity which is related to the Company as a member of a controlled group of corporation in accordance with Section 414(b) of the Code or as a trade or business under common control in accordance with Section 414(c) of the Code.
“Base Salary” means regular compensation, wages and fees for services that are reported to the Internal Revenue Service as taxable income to the Participant plus any amounts that are not so reported under Section 125, 402(e)(3) and 132(f)(4) of the Code and amounts deferred under a nonqualified salary deferral plan, including this Plan.  “Base Salary” does not include a Service Bonus, Performance-Based Compensation or any compensation or amounts excluded under the definition of Compensation.
“Beneficiary” means the person, persons, entity or entities designated or determined pursuant to the provisions of Section 5.07 of the Plan.
“Board” means the Board of Directors of the Company.
“Change in Control Event” means an event described in Section 409A(a)(2)(A)(v) of the Code (or any successor provision thereto) and the regulations thereunder.
“Code” means the Internal Revenue Code of 1986, as amended.
“Committee” means the person(s) or entity designated by the Board or its delegate to administer the Plan.  If the Committee is unable to serve, or if a Committee is not appointed, the Employer shall satisfy the duties of the Committee.

“Company” means Werner Enterprises, Inc.
“Compensation” means Base Salary, Service Bonus and Performance-Based Compensation.
“Crediting Date” means any business day on which the amount of any Participant Deferral Credits or Employer Credits to the Deferred Compensation Account of a Participant are credited to the Plan.
“Deferred Compensation Account” means the account maintained with respect to each Participant under the Plan.  The Deferred Compensation Account shall be credited with Participant Deferral Credits and Employer Credits, credited or debited for actual or deemed investment gains or losses, and adjusted for payments.  The Deferred Compensation Account of a Participant shall include any In-Service or Education Account of the Participant, if applicable.
“Disabled” means Disabled within the meaning of Section 409A of the Code and the regulations thereunder.  Generally, this means that the Participant 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 twelve (12) months, and is receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering Employees of the Employer.
“Domestic Relations Order” shall mean a judgment, decree, or order (including the approval of a settlement agreement) which is:
(a)Issued pursuant to a State’s domestic relations law;
(b)Relates to the provision of child support, alimony payments or marital property rights to a Spouse, former Spouse, child or other dependent of the Participant;
(c)Creates or recognizes the right of a Spouse, former Spouse, child or other dependent of the Participant to receive all or a portion of the Participant’s benefits under the Plan;
(d)Requires payment to such person of their interest in the Participant’s benefits in a lump sum payment at a specific time; and
(e)Meets such other requirements established by the Committee.
“Education Account” is an In-Service Account which will be used by the Participant for educational purposes pursuant to Section 5.02(e).
“Effective Date” means the restatement date of January 1, 2015 of the Plan, which was originally established on August 15, 2005.
“Employee” means an individual in the Service of the Employer if the relationship between the individual and the Employer is the legal relationship of employer and employee.  An individual shall cease to be an Employee upon the Employee’s Separation from Service.
“Employer” means the Company and any Participating Employer which adopts this Plan.
“Employer Credits” means the amounts credited to the Participant’s Deferred Compensation Account by the Employer pursuant to the provisions of Section 3.10.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
“In-Service Account” means a separate account to be kept for each Participant that has elected to take in-service distributions as described in Section 5.02(e).  The In-Service Account shall be adjusted in the same manner and at the same time as the Deferred Compensation Account.
 “Participant” means with respect to any Plan Year an Employee who has been designated by the Committee as a Participant and who has entered the Plan or who has a Deferred Compensation Account under the Plan; provided that if the Participant is an Employee, the individual must be a highly compensated or management employee of the Employer within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.
“Participant Deferral Credits” means the amounts credited to the Participant’s Deferred Compensation Account by the Employer.

“Participating Employer” means any trade or business (whether or not incorporated) which adopts this Plan with the consent of the Company.  Participating Employers shall include the entities set forth on Exhibit A and any other entity that is designated by the Board as a Participating Employer.
“Participation Agreement” means a written agreement entered into between a Participant and the Employer pursuant to the provisions of Section Article III.
“Performance-Based Compensation” means compensation where the amount of, or entitlement to, the compensation is contingent on the satisfaction of preestablished organizational or individual performance criteria relating to a performance period of at least twelve (12) months.  Organizational or individual performance criteria are considered preestablished if established in writing within ninety (90) days after the commencement of the period of service to which the criteria relates, provided that the outcome is substantially uncertain at the time the criteria are established.  Performance-based compensation may include payments based upon subjective performance criteria as provided in regulations and administrative guidance promulgated under Section 409A of the Code.
“Plan” means The Executive Nonqualified Excess Plan of Werner Enterprises, Inc.
“Plan Year” means the twelve (12) month period ending on December 31.
“Qualifying Distribution Event” means (i) the Separation from Service of the Participant, (ii) the date the Participant becomes Disabled, (iii) the death of the Participant, (iv) the time specified by the Participant for an In-Service or Education Distribution, (v) a Change in Control Event, or (vi) an Unforeseeable Emergency, each to the extent provided in Article V.
“Seniority Date” means age 59.5.
“Separation from Service” or “Separates from Service” means a “separation from service” within the meaning of Section 409A of the Code.
“Service” means employment by the Employer as an Employee.  For purposes of the Plan, the employment relationship is treated as continuing intact while the Employee is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six (6) months, or if longer, so long as the Employee’s right to reemployment is provided either by statute or contract.
“Service Bonus” means any bonus paid to a Participant by the Employer which is not Base Salary or Performance-Based Compensation.
“Specified Employee” means an Employee who meets the requirements for key employee treatment under Section 416(i)(1)(A)(i), (ii) or (iii) of the Code (applied in accordance with the regulations thereunder and without regard to Section 416(i)(5) of the Code) at any time during the twelve (12) month period ending on December 31 of each year (the “identification date”).  Unless binding corporate action is taken to establish different rules for determining Specified Employees for all plans of the Company and its controlled group members that are subject to Section 409A of the Code, the foregoing rules and the other default rules under the regulations of Section 409A of the Code shall apply.  If the person is a key employee as of any identification date, the person is treated as a Specified Employee for the twelve (12) month period beginning on the first day of the fourth month following the identification date.
“Spouse” or “Surviving Spouse” means, except as otherwise provided in the Plan, a person who is the legally married spouse or surviving spouse of a Participant.
“Unforeseeable Emergency” means an “unforeseeable emergency” within the meaning of Section 409A of the Code.  A distribution because of an Unforeseeable Emergency shall not exceed the amount required to satisfy the Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of such distribution, after taking into account the extent to which the Unforeseeable Emergency may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship) or by stopping current deferrals under the Plan.  The Participant’s request for a distribution on account of an Unforeseeable Emergency must be made in writing to the Committee.  The request must specify the nature of the financial hardship, the total amount requested to be distributed from the Deferred Compensation Account, and the total amount of the actual expense incurred or to be incurred on account of the Unforeseeable Emergency.
“Valuation Date” means the last day of the Plan Year or such other date as specified by the Committee.

“Years of Service” means each Plan Year of Service completed by the Participant.  For vesting purposes, Years of Service shall be calculated from the first day of employment with the Employer, and each anniversary thereafter.  
ARTICLE II

ELIGIBILITY AND PARTICIPATION

Section 2.01. Eligibility and Participation.  The Board of Directors or its delegate shall from time to time in its sole discretion select those Employees of the Company who are eligible to participate in the Plan.  In order to be eligible to participate in this Plan, an employee must be among a select group of management or highly compensated employees of the Company.

Section 2.02. Enrollment.  Employees who have been selected by the Board of Directors or its delegate to participate in this Plan may enroll in this Plan by (a) completing and executing a Participation Agreement within the time frame set forth in Section 3.01 or 3.02 of the Plan, as applicable, which may contain the Participant’s Beneficiary designation pursuant to Section 5.07 of the Plan and such other terms as the Committee or its delegate deems appropriate and necessary, and (b) completing such other forms and furnishing such other information as the Committee or its delegate may reasonably require.

Section 2.03. Plan Re‐entry.  A Participant who has withdrawn from the Plan or has revoked a Participation Agreement in accordance with Article III and who continues to be eligible to participate in the Plan, may re-enroll with respect to Compensation to be earned in a subsequent calendar year.  An Employee who is eligible for the Plan and who returns to perform services for the Company after a Separation from Service, may again become a Participant.  Such Employee will not be an Active Participant under the Plan except upon satisfaction of such terms and conditions as the Committee shall establish upon the Participant’s return to Service, whether or not the Participant shall have a balance remaining in the Deferred Compensation Account under the Plan on the date of the return to Service.

Section 2.04. Failure of Eligibility.  No contributions shall be added to a Participant’s Account after the Plan Year in which the Participant ceases to meet the eligibility criteria as determined by the Committee or its delegate for participation in the Plan.  The determination of the Committee or its delegate with respect to the termination of participation in this Plan shall be final and binding on all parties affected.  Any benefits accrued hereunder, however, at the time of such change, shall remain distributable in accordance with the provisions of this Plan.

ARTICLE III

CONTRIBUTION DEFERRALS

Section 3.01. Participant Deferrals.
a.A Participant may elect to defer a portion of his Base Salary, Service Bonus or Incentive Compensation by filing a Participation Agreement with the Committee or its delegate.  The Participation Agreement must be filed before the first day of the Plan Year in which the services are performed in respect of the Base Salary or Service Bonus to be deferred, unless the Participant was not eligible to participate in this Plan on such date, in which case the Participation Agreement must be filed within thirty (30) days after the date on which such Participant first became eligible to participate and an election to defer Base Salary, Service Bonus or Incentive Compensation may only be made for Compensation payable with respect to services to be performed subsequent to the election.
b.A Participant may elect to defer a stated percentage (up to 100%) or a flat dollar amount of his Compensation under this Plan.  An election to participate in this Plan for any Plan Year, and the percentage or dollar amount of a Participant’s Compensation that a Participant has elected to contribute to this Plan, shall be irrevocable for the Plan Year.  Any Participant deferral election made hereunder shall continue in effect until it is revoked or changed pursuant to the provisions of Article II and this Article III.
c.Compensation shall be deducted through payroll withholding from the Participant’s Compensation payable by the Company and shall be credited to the Participant’s Account as soon as administratively practicable.

Section 3.02. Deferral Credit.  The Employer shall credit to the Participant’s Deferred Compensation Account on each Crediting Date an amount equal to the total Participant Deferral Credit for the period ending on such Crediting Date.

Section 3.03. Timing of Election.  An election pursuant to this Section 3.03 shall be made by the Participant by executing and delivering a Participation Agreement to the Committee.  Except as otherwise provided in this Section 3.03, the Participation Agreement shall become effective with respect to such Participant as of the first day of January following the date such Participation Agreement is received by the Committee.  A Participant’s election may be changed at any time prior to the last permissible date 

for making the election as permitted in this Section 3.03, and shall thereafter be irrevocable.  The election of a Participant shall continue in effect for subsequent years until modified by the Participant as permitted in this Section 3.03.

Section 3.04. Mid-year Elections.  A Participant may execute and deliver a Participation Agreement to the Committee within thirty (30) days after the date the Participant first becomes eligible to participate in the Plan to be effective as of the first payroll period next following the date the Participation Agreement is fully executed by the Participant.  Whether a Participant is treated as newly eligible for participation under this Section shall be determined in accordance with Section 409A of the Code and the regulations thereunder, including (i) rules that treat all elective deferral account balance plans as one plan, and (ii) rules that treat a previously eligible Employee as newly eligible if his benefits had been previously distributed or if he has been ineligible for twenty-four (24) months.  For Compensation that is earned based upon a specified performance period (for example, an annual bonus), where a deferral election is made under this Section but after the beginning of the performance period, the election will only apply to the portion of the Compensation equal to the total amount of the Compensation for the service period multiplied by the ratio of the number of days remaining in the performance period after the election over the total number of days in the performance period.

Section 3.05. Deferral Election Modifications.  A Participant may unilaterally modify a Participation Agreement regarding deferral elections (either to terminate, increase or decrease the portion of his future Compensation by providing a written modification of the Participation Agreement to the Committee.  The modification shall become effective as of the first day of January following the date such written modification is received by the Committee.

Section 3.06. Special Election for Performance-Based Compensation.  In addition to Section 3.01, with respect to Performance-Based Compensation, if the Participant performed services continuously from the later of the beginning of the performance period or the date upon which the performance criteria are established through the date upon which the Participant makes an initial deferral election, a Participation Agreement relating to the deferral of Performance-Based Compensation may be executed and delivered to the Committee no later than the date which is six (6) months prior to the end of the performance period, provided that in no event may an election to defer Performance-Based Compensation be made after such Compensation has become readily ascertainable.

Section 3.07. Compensation Paid in Subsequent Year.  Compensation payable after the last day of the Participant’s taxable year solely for services provided during the final payroll period containing the last day of the Participant’s taxable year (i.e., December 31) is treated for purposes of this Section 3.07 as Compensation for services performed in the subsequent taxable year.

Section 3.08. Cancellation of Election.
a.If a Participant becomes Disabled all currently effective deferral elections for such Participant shall be cancelled.  At the time the Participant is no longer Disabled, subsequent elections to defer future Compensation will be permitted under this Section 3.08.
b.If a Participant applies for and receives a distribution on account of an Unforeseeable Emergency, all currently effective deferral elections for such Participant shall be cancelled.  Subsequent elections to defer future Compensation will be permitted under this Section 3.08.
c.If a Participant receives a hardship distribution under Section 1.401(k)-1(d)(3) of the Code or any other similar provision, all currently effective deferral elections shall be cancelled.  Subsequent elections to defer future Compensation under this Article III will not be effective until the later of the beginning of the next calendar year or six (6) months after the date of the hardship distribution.

Section 3.09. Employer Credits.  The Employer may cause the Committee to credit to the Deferred Compensation Account of each Active Participant an Employer Credit.  A Participant must make distribution elections with respect to any Employer Credits credited to his Deferred Compensation Account by the deadline that would apply under Section 3.01 for distribution elections with respect to Participant Deferral Credits credited at the same time, on a Participation Agreement that is timely executed and delivered to the Committee pursuant to Section 3.01.

ARTICLE IV

INVESTMENT OF DEFERRALS AND ACCOUNTING

Section 4.01. Investment Credit.  All amounts credited to a Participant’s Deferred Compensation Account, together with the earnings thereon, shall be credited with income and loss as if invested in the investment funds offered through the Plan as are designated from time to time in accordance with such procedures as may be adopted from time to time by the Committee or its delegate.  For purposes of determining the amount allocated to a Participant’s Deferred Compensation Account, for purposes 

of making distributions, or for any other purpose under this Plan, each Participant’s Deferred Compensation Account shall be valued as of the Valuation Date immediately preceding the date of payment.

Section 4.02. Limitations on Investments.  The investment or deemed investment of a Participant’s Deferred Compensation Account shall be subject to the restrictions or limitations imposed by the Committee.
Section 4.03. Underlying Investments.  Nothing contained in the Plan shall require the Committee to actually invest assets in the funds for which a Participant’s Deferred Compensation Account is credited.  Investment credits shall be recorded based on the funds elected by the Participant regardless of the actual investment made under the Plan, if any.

ARTICLE V

DISTRIBUTIONS

Section 5.01. Distribution Elections Generally.  A Participant may specify the time and form of distribution in accordance with the following:
a. Distribution elections shall be made at the time of or before the date the contribution election is made and may only be changed in accordance with Section 5.04, relating to election changes;
b. In the event a distribution election sets forth a specified date of distribution, the distributions shall not be made prior to the Participant’s being one hundred percent (100%) vested in the type of contribution subject to the election as of the specified date.  In the event a Participant’s election is void under this subsection due to the Participant’s account being partially vested, the Participant’s distribution date shall be as of the Participant’s Separation from Service unless a new election is made in accordance with Section 5.04, relating to election changes; and
c. Any election made for a contribution type shall apply to subsequent contributions in later years until changed by the Participant.

Section 5.02. Time and Form of Distribution.
a.Separation From Service Benefits.  The benefit payable under this Plan in the case of a Participant whose employment with the Company terminates on or after his Separation from Service shall be equal to the vested value of his Accounts on the Valuation Date immediately following such Participant’s Separation from Service.  The amount payable shall be paid in a single lump sum payment as soon as administratively practicable following the Valuation Date after the Participant has a Separation from Service or, if the Participant has attained the Seniority Date, in annual installments not to exceed fifteen (15) years if elected by the Participant.  Notwithstanding the foregoing, if the Qualifying Distribution Event is Separation from Service, payment shall be made in the manner elected by the Participant and no distribution shall be made earlier than twelve (12) months after the date of Separation from Service (or, if earlier, the date of death), and payment must commence prior to fourteen (14) months after the date of Separation from Service.  In the event the Participant fails to make a valid election of the payment method, the distribution will be made in accordance with Section 5.02(i). A payment may be further delayed to the extent permitted in accordance with the regulations and guidance under Section 409A of the Code.  Payment under this Section shall be subject to the Specified Employee rules under Section 10.11 of the Plan to the extent such Section is applicable.
b.Disability Benefits.  The Disability benefit payable under this Plan in the case of a Participant whose employment with the Company terminates because he is Disabled shall be equal to one hundred percent (100%) of the value of his Accounts on the Valuation Date immediately following his Disability.  The amount payable shall be paid in a single lump sum payment as soon as administratively practicable following the applicable Valuation Date following his Disability or in annual installments, not to exceed fifteen (15) years as elected by the Participant.
c.Death Benefits.  The death benefit payable to a Beneficiary under this Plan in the case of a Participant whose employment with the Company terminates due to such Participant’s death shall be equal to 100% of the value of his Accounts on the applicable Valuation Date immediately following his death.  The amount payable shall be paid in a single lump sum payment as soon as administratively practicable following the applicable Valuation Date.
d.Unforeseeable Emergency.  If a distribution due to an Unforeseeable Emergency is approved by the Committee, such distribution will be made as soon as practicable following the date it is approved.  The processing of the request shall be completed as soon as practicable from the date on which the Committee receives the properly completed written request for a distribution on account of an Unforeseeable Emergency.  If a Participant’s Separation from Service occurs after a request is approved, but prior to distribution of the full amount approved, the approval of the request shall be automatically null and void and the benefits which the Participant is entitled to receive under the Plan shall be distributed in accordance with the applicable distribution provisions of the Plan.

e.In Service or Education Distribution.  A Participant may designate in the Participation Agreement to have a specified amount credited to the Participant’s In-Service or Education Account for in-service or education distributions at the date specified by the Participant.  Such payments may be made from the Participant’s Deferral or Employer Credits.  Distributions may be in the form of a lump sum or annual installments over a period not to exceed four (4) years.  In no event may an in-service or education distribution of an amount be made before the date that is two (2) years after the first day of the year in which any deferral election to such In-Service or Education Account became effective.  Notwithstanding the foregoing, if a Participant incurs a Qualifying Distribution Event prior to the date on which the entire balance in the In-Service or Education Account has been distributed, then the balance in the In-Service or Education Account on the date of the Qualifying Distribution Event shall be paid in accordance with the distribution provisions for such Qualifying Distribution Event.
f.Change of Control.  The Participant may designate in the Participation Agreement to have the vested balance in the Deferred Compensation Account paid to the Participant upon a Change in Control Event in a lump sum payment or in annual installments over a term certain not to exceed fifteen (15) years.
g.De Minimis Amounts.  Notwithstanding any payment election made by the Participant, if the vested balance in the Deferred Compensation Account of the Participant does not exceed $50,000, such amount will be distributed in a single lump sum payment if at the time of a permitted Qualifying Distribution Event the vested balance does not exceed such pre-determined de minimis amount; provided, however, that such distribution will be made only where the Qualifying Distribution Event is a Separation from Service, death, Disability (if applicable) or Change in Control Event (if applicable).  If the Qualifying Distribution Event is death, Disability or Change in Control Event, such payment shall be made on or before the later of (i) December 31 of the calendar year in which the Qualifying Distribution Event occurs, or (ii) the date that is two and one-half (2-1/2) months after the Qualifying Distribution Event occurs.  If the Qualifying Distribution Event is a Separation from Service, such payment shall be made no earlier than twelve (12) months after the date of Separation from Service (or if earlier, the date of death), and payment must be made prior to fourteen (14) months after the date of Separation from Service. In addition, the Employer may distribute a Participant’s vested balance at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination of the Participant’s entire interest in the Plan as provided under Section 409A of the Code.
h.Latest Payment Date.  Except as provided under Section 10.11 or as otherwise required by law, in no event shall payments under this Article V be made, or begin to be made, later than ninety (90) days after the event giving rise to the Participant’s right of distribution.  For distributions made upon a specified date, distributions shall be made within the same taxable year of the date or, if later, the fifteenth day of the third calendar month following the specified date.  
i.Failure To Elect.  In the event a Participant fails to provide the form of distribution, payment shall be in the form of a single lump sum payment.

Section 5.03. Vesting of Benefits.  The benefit payable under this Plan in the case of a Participant whose employment with the Company terminates for any reason other than Disability, death, a Change in Control Event or before attainment of age 65 shall be equal to:
a.the value of his Deferred Compensation Account attributable to Participant Deferral Credits, as adjusted, as of the applicable Valuation Date; plus
b.the value of the vested portion of his Deferred Compensation Account attributable to Employer Credits, as adjusted, as of the applicable Valuation Date, determined as follows:
	
		
	Years of Service
	Vested Portion

	Less than 2
	0%

	2
	20

	3
	40

	4
	67

	5 or more
	100

For purposes of the preceding table, Years of Service at date of termination shall be determined beginning with the Participant’s first day of service with the Company and each anniversary thereafter.
A Participant shall be fully vested in his Account upon death, Disability, separation in connection with a Change of Control or the attainment of age 65.
Section 5.04. Election Changes.  With the consent of the Committee, a Participant may elect to change the benefit distribution date and/or the form of benefit elected (a “Revised Election”), if the following requirements are met:

a.the Revised Election shall not take effect for at least twelve (12) months after the date of such revised election;
b.the first payment with respect to such Revised Election shall not be made until at least five (5) years after the date on which distribution would have otherwise begun, provided that earlier distribution may be made in the event of the Participant’s death, Disability or Unforeseeable Emergency; and
c.if required in order to comply with Section 409A of the Code and the Treasury Regulations issued thereunder, the Revised Election shall be made at least twelve (12) months prior to a scheduled distribution date.

For purposes of this Section, a payment is each separately identified amount to which the Participant is entitled to receive under the Plan; provided that a series of installment payments is treated as a single payment.
Section 5.05. Domestic Relations Orders.  Notwithstanding the Participant’s elected time and form of distribution, the time or schedule of a payment shall be accelerated to the extent necessary to comply with a Domestic Relations Order.  A distribution may be made to an individual other than the Participant in accordance with a Domestic Relations Order.  The Committee or its delegate may adopt and implement such policies and procedures as it deems advisable in its sole discretion with respect to the administration and approval of payments pursuant to Domestic Relations Orders.

Section 5.06. Unforeseeable Emergency.  A Participant, at any time prior to his Separation from Service, who incurs severe financial hardship as defined in subsection (a) below and does not have other available resources as described in subsection (b) below may apply to the Committee for an immediate distribution from his vested Deferred Compensation Account, such distribution to be limited to an amount necessary to satisfy such financial hardship and the tax liability attributable to such distribution.
a.A Participant incurs a severe financial hardship as a result of the following:
i.a sudden and unexpected illness or accident involving the Participant or his spouse or any dependent (as determined pursuant to Section 152(a) of the Code);
ii.a casualty loss involving the Participant’s property; or
iii.another similar extraordinary and unforeseeable event beyond the Participant’s control.
b.Such Participant does not have any other resources available, whether through reimbursement or compensation (by insurance or otherwise), liquidation of existing assets (to the extent such liquidation would not itself result in financial hardship) or cessation of deferrals, to satisfy such financial emergency.
c.The determination of whether a Participant has incurred a severe financial hardship entitling the Participant to a payment under this Section shall be made by the Committee or its delegate on a uniform and non‐discriminatory basis, and shall be based on appropriate documentation or other evidence required by the Committee or its delegate.  The Committee or its delegate shall approve for distribution under this Section 5.06 only circumstances which it concludes constitute an “unforeseeable emergency,” as defined in Section 409A(a)(2)(A)(vi) of the Code and the Treasury Regulations issued thereunder.  If a Participant’s Separation from Service occurs after a request is approved, but prior to distribution of the full amount approved, the approval of the request shall be null and void and no distribution shall be made.

Section 5.07. Beneficiaries.  Each Participant shall designate one or more persons, trusts or other entities as his Beneficiary to receive any amounts distributable hereunder at the time of the Participant’s death.  Such designation shall be made by the Participant in his Participation Agreement and may be changed from time to time by the Participant.  In the absence of an effective Beneficiary designation as to part or all of a Participant’s interest in the Plan, such amount shall be distributed to the Participant’s estate.  The designation of a Beneficiary may be changed or revoked only by filing a new Beneficiary designation form with the Committee or its designee.  If a Beneficiary (the “primary Beneficiary”) is receiving or is entitled to receive payments under the Plan and dies before receiving all of the payments due him, the balance to which he is entitled shall be paid to the contingent Beneficiary, if any, named in the Participant’s current Beneficiary designation form.  If there is no contingent Beneficiary, the balance shall be paid to the estate of the primary Beneficiary.  Any Beneficiary may disclaim all or any part of any benefit to which such Beneficiary shall be entitled hereunder by filing a written disclaimer with the Committee before payment of such benefit is to be made.  Such a disclaimer shall be made in a form satisfactory to the Committee and shall be irrevocable when filed.  Any benefit disclaimed shall be payable from the Plan in the same manner as if the Beneficiary who filed the disclaimer had predeceased the Participant.

ARTICLE VI

COMMITTEES

Section 6.01. Appointment of Committees.  The Board or its delegate shall appoint the Committee who may be, but need not be, officers, directors or employees of the Company or its Affiliate.  The members of each Committee shall hold office at the pleasure of the Board or its delegate and shall serve without compensation.

Section 6.02. Responsibilities of the Committee.  The Committee or its delegate shall be responsible for the administration, operation and interpretation of the Plan.  The Committee or its delegate may establish rules from time to time for the transaction of its business.  The Committee or its delegate shall have the exclusive right to interpret the Plan’s provisions, to establish policies and procedures and to exercise discretion where necessary or appropriate in the interpretation and administration of the Plan and to decide any and all matters arising thereunder or in connection with the Plan.  Such decisions, actions and records of the Committee or its delegate shall be conclusive and binding upon all persons having or claiming to have any right or interest in or under the Plan.
The Committee may delegate some or all of its authority under the Plan to any person, persons or entities.  The Committee may remove any duly appointed delegate at any time at its sole discretion.  
Section 6.03. Indemnification of Committee Members.  The Company shall indemnify the members of the Committee against any and all claims, losses, damages, expenses (including attorney fees) and liabilities arising from any action or failure to act, except when the same is judicially determined to be due to the gross negligence or willful misconduct of such member.  Such indemnification shall include any Committee members or any individuals delegated authority by the Committee if such individuals are employed by the Company or an Affiliate.  The Company does not hereby indemnify any entity or person that is not an employee of the Company or its Affiliate.  The indemnification provided hereunder shall continue as to a person who has ceased acting as a director, officer, member, agent or employee of the Employer, and such person’s rights shall inure to the benefit of his heirs and representatives.  The indemnification provided hereunder is in addition to and not in lieu of any other rights of indemnification any person may have against the Company by contract, by virtue of the Company’s By‐Laws or otherwise.

ARTICLE VII

CLAIMS PROCEDURES

Section 7.01. Filing a Claim.  All claims shall be filed in writing by the Participant, his Beneficiary, or the authorized representative of the claimant, by completing the procedures that the Committee or its delegate requires.  The procedures may include the completion of forms and the submission of documents and additional information.  All claims under this Plan shall be filed in writing with the Committee or its delegate according to the Committee or its delegate’s procedures no later than one year after the occurrence of the event that gives rise to the claim.  If the claim is not filed within the time described in the preceding sentence, the claim shall be barred. 

Section 7.02. Review of Initial Claim.
a.Initial Period for Review of the Claim.  The Committee or its delegate shall review all materials and shall decide whether to approve or deny the claim.  If a claim is denied in whole or in part, written notice of denial shall be furnished by the Committee or its delegate to the claimant within a reasonable time after the claim is filed but not later than ninety (90) days after the Committee or its delegate receives the claim.  The notice shall set forth the specific reason(s) for the denial, reference to the specific plan provisions on which the denial is based, a description of any additional material or information necessary for the claimant to perfect his claim and an explanation of why such material or information is necessary, and a description of the Plan’s review procedures, including the applicable time limits.
b.Extension.  If the Committee or its delegate determines that special circumstances require an extension of time for processing the claim, it shall give written notice to the claimant and the extension shall not exceed ninety (90) days.  The notice shall be given before the expiration of the ninety (90) day period described in Section 7.02(a) above and shall indicate the special circumstances requiring the extension and the date by which the Committee expects to render its decision.

Section 7.03. Appeal of Denial of Initial Claim.  The claimant may request a review upon written application, may review pertinent documents and may submit issues or comments in writing.  The claimant must request a review within the reasonable period of time prescribed by the Committee or its delegate.  In no event shall such a period of time be less than sixty (60) days.

Section 7.04. Review of Appeal.
a.Initial Period for Review of the Appeal.  The Committee shall conduct all reviews of denied claims and shall render its decision within a reasonable time, but not more than sixty (60) days of the receipt of the appeal by the Committee.  The claimant shall be notified of the Committee’s decision in a notice, which shall set forth the specific reason(s) for the denial, reference to the specific plan provisions on which the denial is based, a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records and other information relevant to the claimant’s claim.

b.Extension.  If the Committee determines that special circumstances require an extension of time for reviewing the appeal, it shall give written notice to the claimant and the extension shall not exceed sixty (60) days.  The notice shall be given before the expiration of the sixty (60) day period described in Section 7.04(a) above and shall indicate the special circumstances requiring the extension and the date by which the Committee or its delegate expects to render its decision.

Section 7.05. Form of Notice to Claimant.  The notice to the claimant shall be given in writing or electronically and shall be written in a manner calculated to be understood by the claimant.  

Section 7.06. Discretionary Authority of Committees.  The Committee or its delegate shall have full discretionary authority to determine eligibility, status, and the rights of all individuals under the Plan; to construe any and all terms of the Plan; and to find and construe all facts.

ARTICLE VIII

TRUST

Section 8.01. Trust Agreement.  The Company may, but shall not be required to, establish a trust pursuant to a separate Trust Agreement for the holding, investment and administration of the funds contributed to Accounts under this Plan.  The Trustee shall maintain and allocate Trust assets to a separate account for each Participant under this Plan.  The assets of any such Trust shall remain subject to the claims of the Company’s general creditors in the event (i) the Company is unable to pay its debts as they become due, or (ii) the Company is subject to a pending proceeding as a debtor under the United States Bankruptcy Code.  In no event will any Trust assets at any time be located or transferred outside of the United States within the meaning of Code Section 409A(b).

Section 8.02. Expenses of Trust.  The parties expect that any Trust created pursuant to Section 8.01 of the Plan will be treated as a “grantor” trust for federal and state income tax purposes and that, as a consequence, such Trust will not be subject to income tax with respect to its income.  However, if the Trust should be taxable, the Trustee shall pay all such taxes out of the Trust.  All expenses of administering any such Trust shall be a charge against and shall be paid from the assets of such Trust unless the Company pays such expenses subject to the terms of the Trust Agreement.

ARTICLE IX

AMENDMENT AND TERMINATION

Section 9.01. Termination of Plan.  The Company expects to continue this Plan indefinitely, but the Board of Directors of the Company or its delegate may terminate this Plan at any time.
In the event the Plan is terminated, the Participant accounts shall be fully vested and the assets shall be distributed in a lump sum payment provided one of the following requirements are met:
a.The Plan is terminated in accordance with the requirements of Treasury Regulation Section 1.409A‐3(j)(4)(ix)(A) within twelve (12) months of a corporate dissolution that is either taxed under Code Section 331 (pertaining to taxation upon complete liquidation) or approved by a bankruptcy court.
b.The Plan is terminated in accordance with the requirements of Treasury Regulation Section 1.409A‐3(j)(4)(ix)(B) within thirty (30) days before or twelve (12) months after a Change of Control, and all other similar nonqualified plans of the Company are also being terminated.  All payments from all such plans must be received within twelve (12) months of their respective terminations.
c.A termination that meets all of the following five (5) requirements in accordance with the requirements of Treasury Regulation Section 1.409A‐3(j)(4)(ix)(C): (i) the termination was not related to a downturn in the financial health of the Company; (ii) the Company terminates all other nonqualified plans affecting the Participants of the Plan; (iii) no payments from the Plan are made within twelve (12) months after the termination (except payments that, in the absence of the termination, would have been made within the twelve (12) month period); (iv) all payments from the Plan are made within twenty-four (24) months after the termination; and (v) for three (3) years after the termination, no new plans are adopted covering Participants of the Plan.

In the event the Plan is terminated and none of the above applies, distributions shall be made in accordance with the Plan provisions in place at the time of the Plan’s termination.
Section 9.02. Amendment by Board of Directors.  The Company’s Board of Directors or its delegate may amend this Plan, including the suspension of future contributions, at any time and from time to time, retroactively or otherwise, but no amendment shall reduce any benefit that has accrued on the effective date of the amendment.

ARTICLE X

MISCELLANEOUS

Section 10.01. Funding of Benefits; No Fiduciary Relationship.  All benefits payable under this Plan shall be distributed in cash by Company check or Trustee check, if a Trust is established, or a combination thereof.  Benefits shall be paid either out of the Trust, or, if no Trust is in existence or if the assets in the Trust are insufficient to provide fully for such benefits, then such benefits shall be distributed by the Company out of its general assets.  Nothing contained in this Plan shall be deemed to create any fiduciary relationship between the Company and the Participants.  Notwithstanding anything herein to the contrary, to the extent that any person acquires a right to receive benefits under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Company, except to the extent provided in the Trust Agreement, if any.

Section 10.02. Inalienability of Benefits.  Except as provided in Section 5.06 of the Plan, no Participant shall have the right to assign, transfer, hypothecate, encumber or anticipate his interest in any benefits under this Plan nor shall the benefits under this Plan be subject to any legal process to levy upon or attach the benefits for payment for any claim against the Participant or his spouse.  If any Participant’s benefits are garnished or attached by the order of any court, the Company may bring an action for declaratory judgment in a court of competent jurisdiction to determine the proper recipient of the benefits to be distributed pursuant to this Plan.  Any fees, including attorney fees, court costs and related fees incurred in connection with such proceedings or determination may be charged to the Participant’s account.  During the pendency of the action, any benefits that become distributable shall be paid into the court as they become distributable, to be distributed by the court to the recipient it deems proper at the conclusion of the action.

Section 10.03. Disposition of Unclaimed Distributions.  Each Participant must file with the Company from time to time in writing his mailing address and each change of mailing address.  Any communication, statement or notice addressed to a Participant at his last mailing address on file with the Company, or if no address is filed with the Company, then at his last mailing address as shown on the Company’s records, will be binding on the Participant and his Beneficiary for all purposes of this Plan.  The Company shall not be required to search for or locate a Participant or his Beneficiary.

Section 10.04. Tax Withholding.  All payments and other taxable events shall be subject to applicable withholding of federal, state and local income, employment and other taxes.

Section 10.05. Employment Status.  This Plan does not constitute a contract of employment or impose on the Participant or the Company any obligation for the Participant to remain an employee or change the status of the Participant’s employment or the policies of the Company regarding termination of employment.

Section 10.06. Validity and Severability.  The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect, and any prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

Section 10.07. Governing Law.  The validity, interpretation, construction and performance of the Plan shall in all respects be governed by the laws of Nebraska, without reference to principles of conflict of law, except to the extent preempted by federal law.

Section 10.08. Right of Offset.  To the extent permitted by applicable law, the Company may, in its sole discretion, apply any payments otherwise due and payable under this Plan against any employee or terminated employee loans outstanding to the Company or other debts of the employee or terminated employee to the Company.  By accepting payments under this Plan, an individual shall consent to the reduction of any compensation paid to an individual by the Company to the extent an individual receives an overpayment from the Plan.

Section 10.09. Conformance With Applicable Laws.  Notwithstanding anything contained herein to the contrary, this Plan shall be administered and operated in accordance with any applicable laws and regulations including but not limited to laws affecting the timing of payments to employees.  The Board or its delegate reserves the right to amend this Plan at any time in order for this Plan to comply with any such laws and regulations.

Section 10.10. Payments Due Minors or Incapacitated Persons.  If any person entitled to a payment under this Plan is a minor, or if the Committee or its delegate determines that any such person is incapacitated by reason of physical or mental disability, whether or not legally adjudicated as an incompetent, the Committee or its delegate shall have the power to cause the payment becoming due to such person to be made to another for his benefit, without responsibility of the Committee or its delegate, 

the Committee or any other person or entity to see to the application of such payment.  Payments made pursuant to such power shall operate as a complete discharge of the Committee, this Plan and the Employer.

Section 10.11. Distribution Delay for Specified Employees.  In the case of a distribution to a Specified Employee due to his Separation from Service, such distribution may not be made or commence before the date which is six (6) months after the date of the Specified Employee’s Separation from Service with the Company or, if earlier, the date of the Specified Employee’s death or Disability.

The foregoing was adopted this 31st day of December, 2015.

WERNER ENTERPRISES, INC.
By /s/ John Steele                  
      John Steele
      EVP, Treasurer & CFO

EXHIBIT A
Participating Employers

	
				
	Name of Employer
	Address
	Telephone No.
	EIN

	Werner Enterprises, Inc.
	P.O. Box 45308
Omaha, NE 68145-0308
	402-895-6640
	47-0648386

	Werner Management, Inc.
	P.O. Box 45308
Omaha, NE 68145-0308
	402-895-6640
	52-2283344

	Gra-Gar, LLC
	P.O. Box 45308
Omaha, NE 68145-0308
	402-895-6640
	47-0615913

	Drivers Management, LLC
	P.O. Box 45308
Omaha, NE 68145-0308
	402-895-6640
	47-0673403

	Werner Global Logistics, LLC
	P.O. Box 45308
Omaha, NE 68145-0308
	402-895-6640
	20-5111945

	Fleet Truck Sales, Inc.
	P.O. Box 45308
Omaha, NE 68145-0308
	402-895-6640
	47-0749446

	Werner Cycle Works, Inc.
	P.O. Box 45308
Omaha, NE 68145-0308
	402-895-6640
	47-0832314

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