Document:

EXHIBIT 10.2

 

 

 

 

 

 

 

 

 

BLACK
GAMING

LONG
TERM INCENTIVE PLAN

Effective
as of October 1, 2006

 

 

 

Black
Gaming Long Term Incentive Plan

Section 1.                            Establishment of Plan

This Black Gaming Long Term Incentive Plan is
hereby established by Virgin River Casino Corporation, a Nevada Corporation,
B&BB, Inc., a Nevada Corporation, RBG, LLC, a Nevada Limited Liability
Company and CasaBlanca Resorts, LLC, a Nevada Limited Liability Company,
(collectively referred to as the “Companies”) to be effective as of October 1,
2006.

Section 2.                            Definitions

Whenever used in this Plan, the following
capitalized terms shall have the meanings designated below:

2.1.          “Affiliate”
shall mean any Person who controls, is controlled by or is under common control
with one or more of the Companies.

2.2.          “Award
Percentage” shall mean the percentage, if any, applicable to a Participant, as
designated in Exhibit A. A Participant’s Award Percentage, if any, may vary
from one Fiscal Year to another, as designated in Exhibit A.

2.3.          “Beneficiary”
shall mean the Person(s) designated by a Participant on forms provided by the
Committee to receive the payment, if any, described in Section 6.2(iii). A
Participant may change his or her designation on such forms at any time without
the consent of any existing Beneficiary or any other Person. In the event that
a Participant fails to properly designate a Beneficiary, his or her Beneficiary
shall be his or her estate.

2.4.          “Board”
shall mean Robert R. Black, Sr., Glenn Teixeira, their respective lawful
successors and any other individuals who are elected and/or admitted from time
to time by all necessary corporate and limited liability company action, as
applicable.

2.5.          “Cause”
shall have the same meaning as the term is used in a Participant’s written
employment agreement with one or more of the Companies and/or their Affiliates.
If a Participant does not have such a written employment agreement, then “Cause”
shall be deemed to exist if the Participant: (i) has been formally charged with
or convicted of any felony, including any crime involving fraud, theft,
embezzlement, dishonesty or moral turpitude; (ii) has been found unsuitable to
hold a gaming license by a Gaming Authority; (iii) has failed to abide by any
policies and/or procedures that are reasonably and consistently enforced by the
Companies and/or their Affiliates; (iv) has engaged in misconduct, failed to
follow a reasonable directive, including, without limitation, any reasonable
directive given by the Companies, or engaged in material inattention to the
business of the Companies and/or their Affiliates; (v) has failed to perform
the duties required of the Participant up to the standards established by the
Companies and/or their Affiliates; (vi) has engaged in acts or omissions that
constitute gross negligence or willful misconduct resulting, in either case, in
material economic harm to the Companies and/or their Affiliates; or (vii) has
engaged in excessive absenteeism.

2.6.          “Change
in Control” shall be deemed to have occurred if: (i) there is a sale or
exchange of outstanding stock of any class, as applicable, or membership
interests in the Companies to a third party, the result of which leaves the
Existing Majority Equity Holder with less than fifty percent (50%) of the
beneficial ownership in the surviving entity(ies); (ii) there is a sale of all
or substantially all of the assets 

of the Companies; and/or (iii) Robert R. Black, Sr. is no longer the
Chief Executive Officer or equivalent of the Companies as a going gaming
concern. For purposes of this Section 2.6, “beneficial ownership” shall have
the same meaning as defined in Rules 13d- 13d-5 under the Securities Exchange
Act of 1934, as amended, except that a Person shall be deemed to have “beneficial
ownership” of all shares or membership interests that any such Person has the
right to acquire, whether such right is immediately exercisable or only after
the passage of time.

2.7.          “Committee”
shall mean the individual or group of individuals appointed by the Board to
administer this Plan. If no such individual or group of individuals is so
appointed by the Board, then the Board shall administer the Plan and serve as
the Committee.

2.8.          “Companies”
shall mean Virgin River Casino Corporation, a Nevada Corporation, B&BB,
Inc., a Nevada Corporation, RBG, LLC, a Nevada Limited Liability Company and
CasaBlanca Resorts, LLC, a Nevada Limited Liability Company, collectively,
including any successors thereto.

2.9.          “Debt”
shall mean (i) the current and long term portion of the Companies’ debt
(determined in accordance with Generally Accepted Accounting Principles), plus
(ii) the fifteen million dollars ($15,000,000.00) owed to Mr. Michael Gaughan
by R. Black, Inc. or its assignee(s), which was borrowed on December 20, 2004,
including any paid or unpaid accrued interest on such debt.

2.10.        “Disability”
or “Disabled” shall have the same meanings as the terms are used in a
Participant’s written employment agreement with one or more of the Companies
and/or their Affiliates. If a Participant does not have such a written
employment agreement, then “Disability” or “Disabled” shall have the same
meanings as the terms are used in the Companies’ then existing group long term
disability insurance program or any replacement or successor program.

2.11.        “EBITDA”
shall mean the net earnings of the Companies for a Fiscal Year before taking
into account interest, taxes, depreciation, gains and losses on disposal of
assets, non-cash charges not normal in the course of business and non-
operating income and losses, as reported on the Companies’ audited financial
statements for the Fiscal Year.

2.12.        “Employee”
shall mean a full-time, salaried employee of one or more of the Companies
and/or their Affiliates.

2.13.        “Equity
Value of the Companies” shall mean (i) with respect to the Fiscal Year ending
on December 31, 2004, $27,628,000.00, and (ii) with respect to any Fiscal Year
ending on or after December 31, 2005, the value determined by multiplying the
EBITDA for such Fiscal Year by the Multiple, less the value of any Debt as of
the end of such Fiscal Year, plus the value of the Companies’ unrestricted cash
(determined in accordance with Generally Accepted Accounting Principles) as of
the end of such Fiscal Year.

2.14.        “Existing
Majority Equity Holder” shall mean Robert R. Black, Sr.

2.15.        “Fiscal
Year” shall mean the year ending on December 31, which shall be the annual
measurement period for purposes of this Plan.

2.16.        2.16
“Gaming Authorities” shall mean the federal, state and local governmental,
regulatory and administrative authorities, agencies, boards and officials
responsible for or involved in the regulation of gaming or gaming activities in
any jurisdiction and, within the State of Nevada, specifically, the Nevada
Gaming Commission and the Nevada State Gaming Control Board.

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2.17.        “Good
Reason” shall have the same meaning as the term is used in a Participant’s
written employment agreement with one or more of the Companies and/or their
Affiliates. If a Participant does not have such a written employment agreement,
then “Good Reason” shall never exist under any circumstances for purposes of
this Plan.

2.18.        “Long
Term Incentive Award” shall mean the unvested award described in Section 5.

2.19.        “Multiple”
shall mean 9.17, which represents the implied multiple used by Robert R. Black,
Sr. to purchase the Companies on December 20, 2004. The Committee may amend the
Multiple from time to time to reflect any changes in the multiples of existing
public equity gaming companies, as determined by the Committee in its sole
discretion; provided, however, that any such amendment of the Multiple shall
not apply to any then-outstanding Long Term Incentive Award.

2.20.        “Participant”
shall mean an Employee who is eligible to participate in the Plan, as provided
in Section 4.

2.21.        “Person”
shall mean a natural person, any form of business and any other nongovernmental
legal entity, including, without limitation, a corporation, partnership, trust
or limited liability company.

2.22.        “Plan”
shall mean this Black Gaming Long Term Incentive Plan, as set forth herein and
amended from time to time.

Section 3.                             Administration

The Plan shall be administered by the
Committee. The Committee may delegate to any appropriate officers and/or
employees of one or more of the Companies and/or their Affiliates
responsibility for administering the Plan.

Subject to the limitations of the Plan, the
Committee shall, in its sole discretion, (i) correct any defect or omission or
reconcile any inconsistency in the Plan or in any award granted hereunder and
(ii) make all other necessary determinations and take all other actions
necessary or advisable for the implementation and administration of the Plan.
The Committee’s determinations on matters within its authority shall be
conclusive and binding upon all parties.

Section 4.                            Eligibility and
Participation

4.1.          In General.  The Employees eligible to participate
in the Plan for the Fiscal Years ending on December 31, 2005 and December 31,
2006 are designated in Exhibit A. Within the first one-hundred-eighty (180)
days of each Fiscal Year ending on or after December 31, 2007, the Committee
shall designate the Employees eligible to participate in the Plan for the
Fiscal Year, and such designation shall be memorialized in Exhibit A. An
Employee who is eligible to participate in the Plan shall be so notified in
writing by the Committee.

4.2.          Change in Position. If a Participant is promoted or demoted
during a Fiscal Year, the Committee may, in its sole discretion, elect to
adjust his or her Award Percentage for such Fiscal Year in any reasonable
manner that it deems appropriate.

4.3.          No Right to Participate.  No
Participant or other Employee shall at any time have a right to be selected for
participation in the Plan for any particular Fiscal Year, regardless of whether
he or she 

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previously participated in the Plan and/or any other incentive
compensation plan of the Companies and/or their Affiliates during one or more
other Fiscal Years.

Section 5.                            Calculation of Awards

5.1.          Calculation of Awards in General. Beginning with the Fiscal
Year ending on December 31, 2005, a Participant’s unvested Long Term Incentive
Award for each Fiscal Year, if any, shall be calculated as follows:

(i)            Determine
the change in Equity Value of the Companies by subtracting (a) the greater of
(1) the Equity Value of the Companies as of December 31 of the previous Fiscal
Year or (2) the highest Equity Value of the Companies as of December 31 of any
Fiscal Year ending on or after December 31, 2004, from (b) the Equity Value of
the Companies as of December 31 of the current Fiscal Year;

(ii)           If
the change in Equity Value of the Companies determined in Subsection (i) above
is zero or less, then the award for the current Fiscal Year shall be zero; and

(iii)          If
the change in Equity Value of the Companies determined in Subsection (i) above
is greater than zero, then the award for the current Fiscal Year shall be
calculated by multiplying such change in Equity Value by his or her Award
Percentage for such Fiscal Year, if any.

5.2.          Calculation of Awards in the Event of a Change in Control. Notwithstanding
Section 5.1 above, if a Change in Control occurs during a Fiscal Year ending on
or after December 31, 2006, then a Participant’s unvested Long Term Incentive
Award for such Fiscal Year, if any, shall be calculated as follows:

(i)            Determine
the change in Equity Value of the Companies by subtracting (a) the greater of
(1) the Equity Value of the Companies as of December 31 of the previous Fiscal
Year or (2) the highest Equity Value of the Companies as of December 31 of any
Fiscal Year ending on or after December 31, 2004, from (b) the net
consideration for the transaction(s) causing the Change in Control, taking into
account the disposition of any Debt;

(ii)           If
the change in Equity Value of the Companies determined in Subsection (i) above
is zero or less, then the award for the Fiscal Year during which a Change in
Control occurs shall be zero; and

(iii)          If
the change in Equity Value of the Companies determined in Subsection (i) above
is greater than zero, then the award for the Fiscal Year during which a Change
in Control occurs shall be calculated by multiplying such change in Equity
Value by his or her Award Percentage for such Fiscal Year, if any.

Section 6.                            Vesting, Forfeiture and
Payment of Awards

6.1.          In General. Each unvested Long Term Incentive Award of a
Participant, if any, which has not
been forfeited pursuant to Section
6.2 below, shall vest and be
paid to the Participant in cash
as follows:

(i)            One-third
(113) of the unvested Long Term Incentive Award shall vest and be paid on
December 1 of the Fiscal Year that next follows the Fiscal Year to which the
award is attributable (for example, one-third (113) of an unvested Long Term
Incentive Award attributable to the Fiscal Year 

 

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ending on December 31, 2005
shall vest and be paid on December 1, 2006), provided that the Participant
remains employed with one or more of the Companies and/or their Affiliates on
such date;

(ii)           An
additional one-third (1/3) of the unvested Long Term Incentive Award shall vest
and be paid on December 1 of the second Fiscal Year that follows the Fiscal
Year to which the award is attributable (for example, an additional one-third
(1/3) of an unvested Long Term Incentive Award attributable to the Fiscal Year
ending on December 31, 2005 shall vest and be paid on December 1, 2007),
provided that the Participant remains employed with one or more of the
Companies and/or their Affiliates on such date; and

(iii)          The
remaining one-third (1/3) of the unvested Long Term Incentive Award shall vest
and be paid on December 1 of the third Fiscal Year that follows the Fiscal Year
to which the award is attributable (for example, the remaining one-third (113)
of an unvested Long Term Incentive Award attributable to the Fiscal Year ending
on December 31, 2005 shall vest and be paid on December 1, 2008), provided that
the Participant remains employed with or more of the Companies and/or their
Affiliates on such date.

6.2.          Termination of Employment. In addition to what is provided
in any employment agreement with a Participant, in the event of a termination
of a Participant’s employment with the Companies and all of their Affiliates,
each unvested Long Term Incentive Award of the Participant, if any, which has
not already been forfeited pursuant to this Section 6.2, shall be disposed of
as follows:

(i)            If
(a) the Participant terminates his or her own employment without Good Reason or
(b) the Companies and/or their Affiliates terminate the Participant’s
employment for Cause, then all outstanding unvested Long Term Incentive Awards
shall be forfeited immediately on the effective date of such termination;

(ii)           If
(a) the Companies and/or their Affiliates terminate the Participant’s
employment without Cause, (b) the Participant terminates his or her own
employment for Good Reason or (c) the termination of the Participant’s
employment occurs subsequent to him or her becoming Disabled, then (1) any
portion of an outstanding unvested Long Term Incentive Award, if any, which
would have been vested and paid on December 1 of the Fiscal Year in which the
termination occurs, shall vest on the effective date of such termination and be
paid to the Participant in cash within thirty (30) days of such effective date
and (2) all other outstanding unvested Long Term Incentive Awards shall be
forfeited immediately on the effective date of such termination; and

(iii)          If
the termination of the Participant’s employment is as a result of his or her
death, then (a) any portion of an outstanding unvested Long Term Incentive
Award, if any, which would have been vested and paid on December 1 of the
Fiscal Year in which the termination occurs, shall vest on the effective date
of such termination and be paid to the Participant’s Beneficiary in cash within
thirty (30) days of such effective date and (b) all other outstanding unvested
Long Term Incentive Awards shall be forfeited immediately on the effective date
of such termination.

6.3.          Change in Control. In
the event of a Change in Control,
each unvested Long Term Incentive Award of a
Participant, if any, which has not been forfeited pursuant to Section 6.2
above, including, without limitation, any unvested Long Term Incentive Award
attributable to the Fiscal Year during which the Change in Control occurs,
shall vest on the effective date of such Change in Control and be paid to the
Participant within thirty (30) days of such effective date; provided, however,
that such payment shall be reduced by the amount of any payment to the
Participant on account of the Change in Control that is made pursuant to the
Participant’s written employment agreement with one or more of the Companies
and/or their Affiliates, if applicable.

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Section 7.                             Amendment
and Modification

Notwithstanding any other amendment provision
of any employment or other agreement to which this Plan is an exhibit and/or
into which this Plan is incorporated by reference, the Committee, in its sole discretion,
with notice to all Participants, at any time and from time to time, may modify
or amend, in whole or in part, any or all of the provisions of the Plan, or
suspend or terminate the Plan entirely; provided, however, that in the event of
any such modification, amendment, suspension or termination, other than an
amendment of the Multiple in accordance with Section 2.19, any Participant (or
his or her Beneficiary, as the case may be) who is an Employee on the effective
date thereof shall be entitled to no less of a payment hereunder than the
amount he or she would have otherwise received based upon the terms and
provisions of the Plan, as in effect immediately prior to such modification,
amendment, suspension or termination, with respect to any then outstanding Long
Term Incentive Award.

Section 8.                            Miscellaneous

8.1.          Employment Status. The Plan does not
constitute a contract of employment or continued
service, nor does it supersede or replace any existing employment agreement
with a Participant, and selection as a Participant shall not give any Employee
the right to be retained in the employ of the Companies or any of their
Affiliates.

8.2.          Unsecured General Creditor. Participants and their heirs,
successors and assigns shall have no legal or equitable rights, interests or
claims in any property or assets of the Companies or any of their Affiliates by
virtue of participation in the Plan. The Companies’ obligations under the Plan
shall be that of an unfunded and unsecured promise of the Companies to pay money
in the future.

8.3.          Nonassignability. No Participant or any other person shall
have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage
or otherwise encumber, transfer, hypothecate or convey in advance of actual
receipt of the amounts, if any, payable hereunder, or any part thereof, which
are, and all right to which are, expressly declared to be unassignable and
non-transferable. No part of the amounts payable shall, prior to actual
payment, be subject to seizure or sequestration for the payment of any debts,
judgment, alimony or separate maintenance owed by a Participant or any other
person, nor be transferable by operation of law in the event of a Participant’s
or any other person’s bankruptcy or insolvency.

8.4.          Governing Law. The Plan, and all agreements hereunder, shall
be governed by and construed in accordance with the laws of the State of
Nevada.

8.5.          Withholding Taxes. The Companies and/or their Affiliates
shall have the right to deduct from all payments under the Plan any Federal,
State or local taxes required by law to be withheld with respect to such
payments.

8.6.          Gender and Number. Except where otherwise indicated by the
context, any masculine term used in the Plan shall also include the feminine,
the plural shall include the singular and the singular shall include the
plural.

8.7.          Severability. In the event any provision of the Plan shall
be held illegal or invalid for any reason, the illegality or invalidity shall
not affect the remaining parts of the Plan, and the Plan shall be construed and
enforced as if the illegal or invalid provision had not been included.

8.8.          Costs of the Plan. All costs of implementing and
administering the Plan shall be borne by the Companies and/or their Affiliates.

 6
 

 

8.9.          Successors. All obligations of the Companies under the Plan
shall be binding upon and inure to the benefit of any successors to the
Companies, whether the existence of any such successor is the result of a
direct or indirect purchase, merger, consolidation or otherwise, of all or
substantially all of the business and/or assets of one or more of the
Companies.

* * *

[The remainder of this page is left blank intentionally.]

 

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This Black Gaming Long Term Incentive Plan is
executed by the Companies on the dates set forth below, to be effective as of
October 1, 2006.

 

	
  

  	
  VIRGIN
  RIVER CASINO CORPORATION

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  CEO

  
	
   

  	
   

  	
  Date:

  	
   

  	
  10-06

  

 

 

	
  

  	
  B&BB,
  INC

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  CEO

  
	
   

  	
   

  	
  Date:

  	
   

  	
  10-06

  

 

 

	
  

  	
  RBG,
  LLC

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Managing Member

  
	
   

  	
   

  	
  Date:

  	
   

  	
  10-06

  

 

 

	
  

  	
  Casablanca
  Resorts, LLC

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Managing Member

  
	
   

  	
   

  	
  Date:

  	
   

  	
  10-06

  

 

 8
 

 

Exhibit A

Designation of Participants and Award Percentages

 

	
  Fiscal Year ending on
  December 31, 2005

  
	
   

  	
  Participant Name

  	
   

  	
   

  	
   

  	
  Award Percentage

  	
   

  
	
  Jonathan Lowenhar

  	
   

  	
  1.25%

  
	
  Curt Mayer

  	
   

  	
  1.25%

  
	
  Scott DeAngelo

  	
   

  	
  0.625%

  
	
  Anthony George

  	
   

  	
  0.625%

  
	
  Peter Wu

  	
   

  	
  0.625%

  
	
  Total Award Percentages:

  	
   

  	
  4.375%

  

 

	
  Fiscal Year ending on
  December 31, 2006

  
	
   

  	
  Participant Name

  	
   

  	
   

  	
   

  	
  Award Percentage

  	
   

  
	
  Jonathan Lowenhar

  	
   

  	
  1.25%

  
	
  Curt Mayer

  	
   

  	
  1.25%

  
	
  Scott DeAngelo

  	
   

  	
  0.625%

  
	
  Anthony George

  	
   

  	
  0.625%

  
	
  Peter Wu

  	
   

  	
  0.625%

  
	
  Total Award Percentages:

  	
   

  	
  4.375%

  

 

	
  Fiscal Year ending on
  December 31, 2007

  
	
   

  	
  Participant Name

  	
   

  	
   

  	
   

  	
  Award Percentage

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
  Fiscal Year ending on
  December 31, 2008

  
	
   

  	
  Participant Name

  	
   

  	
   

  	
   

  	
  Award Percentage

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 9
 

 

	
  Fiscal Year ending on
  December 31, 2009

  
	
   

  	
  Participant Name

  	
   

  	
   

  	
   

  	
  Award Percentage

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
  Fiscal Year ending on
  December 31, 2010

  
	
   

  	
  Participant Name

  	
   

  	
   

  	
   

  	
  Award Percentage

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 10Exhibit 10.1

CDRV
INVESTORS, INC. 

STOCK INCENTIVE PLAN

Amended and Restated as of September 20, 2006

Article
I

Purpose

CDRV Investors, Inc. has established this stock
incentive plan to foster and promote its long-term financial success.  Capitalized terms have the meaning given in
Article XI.

Article II

Powers of the Board

Section 2.1             Power
to Grant Awards.  The Board shall
select Employees to participate in the Plan. 
The Board shall also determine from time to time whether, and the terms
under which, Eligible Directors (or classes or categories of Eligible
Directors) may receive Director Share Awards. 
The Board shall determine the terms of each Award, consistent with the
Plan.

Section 2.2             Administration.  The Board shall be responsible for the
administration of the Plan.  The Board
may prescribe, amend and rescind rules and regulations relating to the
administration of the Plan, provide for conditions and assurances it deems
necessary or advisable to protect the interests of the Company and make all
other determinations necessary or advisable for the administration and
interpretation of the Plan.  Any
authority exercised by the Board under the Plan shall be exercised by the Board
in its sole discretion.  Determinations,
interpretations or other actions made or taken by the Board under the Plan
shall be final, binding and conclusive for all purposes and upon all persons.

Section 2.3             Delegation
by the Board.  All of the powers,
duties and responsibilities of the Board specified in this Plan may be
exercised and performed by any duly constituted committee thereof to the extent
authorized by the Board to exercise and perform such powers, duties and
responsibilities, and any determination, interpretation or other action taken
by such committee shall have the same effect hereunder as if made or taken by
the Board.

Article
III

Shares Subject to Plan

Section 3.1             Number.  The
maximum number of shares of Common Stock that may be issued under the Plan or
be subject to Awards may not exceed 
1,417,320 shares, provided that immediately following the initial
offering and grant of Awards hereunder such number shall automatically be
reduced by (x) the number of shares of Common Stock covered by Awards
offered but not granted under the Plan in the initial offering 

 

and grant of Awards hereunder minus (y) 50,000
shares.  The shares of Common Stock to be
delivered under the Plan may consist, in whole or in part, of treasury Common
Stock or authorized but unissued Common Stock that is not reserved for any
other purpose.

Section 3.2             Canceled,
Terminated or Forfeited Awards.  If
any Award or portion thereof is for any reason forfeited, canceled or otherwise
terminated without exercise, the shares of Common Stock subject to such Award
or portion thereof shall again be available for grant under the Plan.

Section 3.3             Adjustment
in Capitalization.  The number of
shares of Common Stock available for issuance under the Plan and the number,
class, exercise price or other terms of any outstanding Award shall be adjusted
by the Board if and to the extent necessary or appropriate to reflect any
Common Stock dividend, extraordinary dividend, stock split or share combination
or any recapitalization, merger, consolidation, spin-off, exchange of shares,
liquidation or dissolution of the Company or other similar transaction
affecting the Common Stock.  Such
adjustments to outstanding Awards are to be effected in a manner intended to
avoid the enlargement or dilution of rights and benefits under such Awards.

Article
IV

Stock Purchase

Section 4.1             Awards
and Administration.  The Board may
offer and sell shares of Common Stock to Participants at such time or times as
it shall determine, the terms of which shall be set forth in a Subscription
Agreement.

Section 4.2             Minimum
Purchase Price.  Unless otherwise
determined by the Board, the purchase price for any shares of Common Stock to
be offered and sold pursuant to this Article IV shall not be less than the Fair
Market Value on the Grant Date.

Section 4.3             Payment.  Unless otherwise determined by the Board, the
purchase price with respect to shares of Common Stock offered and sold pursuant
to this Article IV shall be paid in cash or other readily available funds
simultaneously with the closing of the purchase of such Common Stock.  The Board may authorize the Company or one or
more of its Subsidiaries to guarantee indebtedness incurred by a Participant in
connection with a purchase of shares pursuant to this Article IV, on such terms
as the Board shall determine.

Article
V

Terms of Options

Section 5.1             Grant
of Options.  The Board may grant
Options to Participants at such time or times as it shall determine.  Options granted pursuant to the Plan will not
be “incentive stock options” as defined in the Code unless otherwise determined
by the Board.  Each Option granted to a
Participant shall be evidenced by an Option Agreement that shall specify the
number of shares of Common Stock that may be purchased pursuant to such Option,
the exercise price at which a share of Common Stock may be purchased 

 2
 

 

pursuant to such Option, the duration of such Option (not to exceed the
tenth anniversary of the Grant Date), and such other terms as the Board shall
determine.

Section 5.2             Exercise
Price.  The exercise price per share
of Common Stock to be purchased upon exercise of an Option shall not be less
than the Fair Market Value on the Grant Date.

Section 5.3             Vesting
and Exercise of Options.  Options
shall become vested or exercisable in accordance with the vesting schedule or
upon the attainment of such performance criteria as shall be specified by the
Board on or before the Grant Date. 
Unless otherwise determined by the Board or before on the Grant Date,
one-fifth of the Options shall vest and become exercisable on each of the
first, second, third, fourth and fifth anniversaries of the Grant Date.  The Board may accelerate the vesting or
exercisability of any Option, all Options or any class of Options at any time
and from time to time.

Section 5.4             Payment.  The Board shall establish procedures
governing the exercise of Options, which procedures shall generally require
that prior written notice of exercise be given and that the exercise price
(together with any required withholding taxes or other similar taxes, charges
or fees) be paid in full in cash, cash equivalents or other readily-available
funds at the time of exercise. 
Notwithstanding the foregoing, on such terms as may be the Board may
establish from time to time following a Public Offering (i) the Board
may permit a Participant to tender shares of Common Stock such Participant has
owned for all or a portion of the applicable exercise price or minimum required
withholding taxes and (ii) the Board may authorize the Company to
establish a broker-assisted exercise program. 
In connection with any Option exercise, the Company may require the
Participant to furnish or execute such other documents as it shall reasonably
deem necessary to (a) evidence such exercise, (b) determine
whether registration is then required under the U.S. federal securities laws or
similar non-U.S. laws or (c) comply with or satisfy the requirements of
the U.S. federal securities laws, applicable state or non-U.S. securities laws
or any other law.  As a condition to the
exercise of any Option before a Public Offering, a Participant shall enter into
a Subscription Agreement.

Article
VI

Termination of Employment

Section 6.1             Expiration
of Options Following Termination of Employment.  Unless otherwise determined by the Board
before or after the Grant Date, if a Participant’s employment with the Company
and its Subsidiaries terminates, such Participant’s Options shall be treated as
follows:

(a)           if such employment
terminates by reason of the Participant’s death or Disability (each, a “Special
Termination”), any Options held by the Participant shall immediately vest in
full;

(b)           in the case of any
termination other than a Special Termination, any unvested Options shall
terminate effective as of such termination of employment;

 3
 

 

(c)           except in the case
of a termination for Cause, vested Options (including any options that vest
pursuant to Section 6.1(a) above) shall remain exercisable through the earliest
of (i) the normal expiration date, (ii) 60 days after the
Participant’s termination of employment (180 days in the case of a Special
Termination or a retirement at normal retirement age or later) and (iii)
any cancellation pursuant to Section 7.1; and

(d)           in the case of a
termination for Cause, any and all Options held by such Participant (whether or
not then vested or exercisable) shall terminate immediately upon such termination
of employment.

Section 6.2               Certain Rights upon Termination of
Employment Prior to a Public Offering. 
Each Subscription Agreement and Option Agreement shall provide that the
Company and the CD&R Fund shall have successive rights prior to a Public
Offering to purchase all or any portion of a Participant’s shares of Common
Stock and vested Options upon any termination of employment, at a purchase
price per share equal to the Fair Market as of the effective date of such
termination of employment (or, if the Participant’s employment qualifies as a
termination for Cause, for a purchase price per share equal to the lesser of (i)
such Fair Market Value and (ii) such Participant’s per share purchase
price), minus any applicable exercise price.  The Board may provide in a Subscription
Agreement that following a Participant’s Special Termination, retirement at or
after normal retirement age or termination of employment by the Company or its
Subsidiaries without Cause in each case prior to a Public Offering, such
Participant may require the Company to repurchase all (but not less than all)
of such Participant’s shares of Common Stock (but excluding any shares acquired
on exercise of an Option), at a purchase price per share equal to the Fair
Market Value on the date of the Participant’s termination of employment,
subject to the Company having the ability to do so under the terms of its
financing arrangements and under Delaware law.

Article
VII

Change in Control

Section 7.1               Accelerated Vesting and Payment.  Except as otherwise provided in this Article
VII, and unless otherwise provided in the Award Agreement, upon a Change in
Control each Option, whether vested or unvested, shall be canceled in exchange
for a payment in an amount equal to the excess, if any, of the Change in
Control Price over the exercise price for such Option.

Section 7.2               Alternative Options.  No cancellation, acceleration or other
payment shall occur with respect to any Option if the Board reasonably
determines in good faith, prior to the occurrence of a Change in Control, that
such Option shall be honored or assumed, or new rights substituted therefor
following the Change in Control (such honored, assumed or substituted award, an
“Alternative Award”), provided that any Alternative Award must:

(a)           give the Participant
who held such Option rights and entitlements substantially equivalent to or
better than the rights and terms applicable under such Option, including, but
not limited to, an identical or better exercise and 

 4
 

 

vesting
schedule, identical or better timing and methods of payment and, if the
Alternative Award or the securities underlying it are not publicly-traded,
identical or better rights following a termination of employment to require the
Company or the acquiror in such Change in Control to repurchase the Alternative
Award or securities underlying such Alternative Award; and

(b)           have terms such that
if, within two years following a Change in Control, a Participant’s employment
is involuntarily or constructively terminated or terminates as a result of his
or her death, Disability or retirement at or after normal retirement age, such
Alternative Award shall immediately vest in full and such Participant (i)
in the case of an involuntary or constructive termination, shall receive a cash
payment equal to the excess (if any) of the fair market value of the stock
subject to the Alternative Award on the date of surrender over the price that
such Participant would be required to pay to exercise such Alternative Award
and (ii) in the case of death, Disability or retirement at or after
normal retirement age, shall have the same put rights with respect to his or
her shares underlying the Alternative Awards as in effect at the time of the
Change in Control or (iii) shall have an immediate right to exercise
such Alternative Award and receive shares that are then publicly-traded.

Section 7.3             Limitation
of Benefits.  If, whether as a result
of accelerated vesting, the grant of an Alternative Award or otherwise, a
Participant would receive any payment, deemed payment or other benefit as a
result of the operation of Section 7.1 or Section 7.2 that, together with any
other payment, deemed payment or other benefit a Participant may receive under
any other plan, program, policy or arrangement, would constitute an “excess
parachute payment” under section 280G of the Code, then, notwithstanding
anything in this Plan to the contrary, the payments, deemed payments or other
benefits such Participant would otherwise receive under this Section 7.1 or
Section 7.2 shall be reduced to the extent necessary to eliminate any such
excess parachute payment and such Participant shall have no further rights or
claims with respect thereto.  If the
preceding sentence would result in a reduction of the payments, deemed payments
or other benefits a Participant would otherwise receive in more than an
immaterial amount, the Company will use its commercially reasonable best
efforts to seek the approval of the Company’s shareholders in the manner
provided for in section 280G(b)(5) of the Code and the regulations thereunder
with respect to such reduced payments or other benefits (if the Company is
eligible to do so), so that such payments would not be treated as “parachute
payments” for these purposes (and therefore would cease to be subject to
reduction pursuant to this Section 7.3).

Article
VIII

Director Share Awards

The Board may provide for the grant of Director Share
Awards to Eligible Directors (or categories or classes of Eligible Directors)
on such terms as the Board shall determine from time to time, including as part
of the retainer or other fees payable to an Eligible Director, or as part of an
arrangement that permits the deferral of payment of such fees, on a mandatory
or elective basis, into the right to receive shares of Common 

 5
 

 

Stock and distributions thereon in the future or a
cash payment measured by reference to the value therof.

Article
IX

Authority to Vary Terms or Establish Local Jurisdiction Plans

The Board may vary the terms of Awards under the Plan,
or establish sub-plans under this Plan to authorize the grant of awards that
have additional or different terms or features than those otherwise provided
for in the Plan, if and to the extent the Board determines necessary or
appropriate to permit the grant of awards that are best suited to further the
purposes of the Plan and to comply with applicable securities laws in a
particular jurisdiction or provide terms appropriately suited for Employees in
such jurisdiction in light of the tax laws of such jurisdiction while being as
consistent as otherwise possible with the terms of Awards under the Plan; provided
that this Article IX shall not be deemed to authorize any increase the number
of shares of Common Stock available for issuance under the Plan set forth in
Section 3.1.

Article
X

Amendment, Modification, and Termination of the Plan

The Board may terminate or suspend the Plan at any
time, and may amend or modify the Plan from time to time.  No amendment, modification, termination or
suspension of the Plan shall in any manner adversely affect any Award
theretofore granted under the Plan without the consent of the Participant
holding such Award or the consent of a majority of Participants holding similar
Awards (such majority to be determined based on the number of shares covered by
such Awards).  Shareholder approval of
any such amendment, modification, termination or suspension shall be obtained
to the extent mandated by applicable law, or if otherwise deemed appropriate by
the Board.

Article
XI

Definitions

Section 11.1             Definitions.  Whenever used herein, the following terms
shall have the respective meanings set forth below:

“Affiliate” shall mean, with respect to any
Person, any other Person directly or indirectly controlling, controlled by or
under common control with such first Person; provided that a director,
member of management or other Employee of the Company or any of its
Subsidiaries shall not be deemed to be an Affiliate of the CD&R Fund.  For these purposes, “control” (including the
terms “controlled by” and “under common control with”) means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management policies of a Person by reason of ownership of voting securities, by
contract or otherwise.

“Alternative Award” has the meaning given in
Section 7.2.

 6
 

 

“Award” shall mean an Option, or Director Share
Award or an offer and sale of shares of Common Stock pursuant to Article IV, in
each case granted pursuant to the terms of the Plan.

“Award Agreement” means a Subscription Agreement,
an Option Agreement or any other agreement evidencing an Award.

“Board” means the Board of Directors of the
Company.

“CD&R Fund” means The Clayton, Dubilier
& Rice Private Equity Fund VI Limited Partnership, a Cayman Islands limited
partnership, and any successor investment vehicle managed by Clayton, Dubilier
& Rice, Inc., a Delaware corporation.

“Cause” means, unless otherwise provided in the Award Agreement,
any of the following:  (i) the
Participant’s commission of a crime involving fraud, theft, false statements or
other similar acts or commission of any crime that is a felony (or a comparable
classification in a jurisdiction that does not use these terms); (ii)
the Participant’s engaging in any conduct that constitutes an employment
disqualification under applicable law; (iii) the Participant’s willful
or grossly negligent failure to perform his or her employment-related duties
for the Company and its Subsidiaries; (iv) the Participant’s material
violation of any Company policy as in effect from time to time; (v) the
Participant’s engaging in any act or making any statement that impairs,
impugns, denigrates, disparages or negatively reflects upon the name,
reputation or business interests of the Company or its Subsidiaries; (vi)
the Participant’s material breach of any Award Agreement, employment agreement,
or noncompetition, nondisclosure or nonsolicitation agreement to which the
Participant is a party or by which the Participant is bound or (vii) the
Participant’s engaging in any conduct injurious or detrimental to the Company
or its any of its Subsidiaries. The determination as to whether “Cause” has
occurred shall be made by the Board, which shall have the authority to waive
the consequences under the Plan of the existence or occurrence of any of the
events, acts or omissions constituting “Cause.” 
A termination for Cause shall be deemed to include a determination
following a Participant’s termination of employment for any reason that the
circumstances existing prior to such termination for the Company or one of its
Subsidiaries to have terminated such Participants employment for Cause.

“Change in Control” means the first to occur of
the following events after the Effective Date:

                (i)  the acquisition by any person, entity or “group”
(as defined in Section 13(d) of the Securities Exchange Act of 1934, as
amended) of 50% or more of the combined voting power of the Company’s then
outstanding voting securities, other than any such acquisition by the Company,
any of its Subsidiaries, any employee benefit plan of the Company or any of its
Subsidiaries, the CD&R Fund or any of its co-

 7
 

 

investors in connection with the CD&R Fund’s
investment in the Company, or any Affiliates of the foregoing;

(ii)  the merger, consolidation or other similar
transaction involving the Company, as a result of which persons who were
stockholders of the Company immediately prior to such merger, consolidation, or
other similar transaction do not, immediately thereafter, own, directly or
indirectly, more than 50% of the combined voting power entitled to vote
generally in the election of directors of the merged or consolidated company;

(iii)  within any 24-month period, the persons who
were directors of the Company at the beginning of such period (the “Incumbent
Directors”) shall cease to constitute at least a majority of the Board, provided
that any director elected or nominated for election, to the Board, by a
majority of the Incumbent Directors then still in office shall be deemed to be
an Incumbent Director for purposes of this clause (iii); or

(iv)  the sale, transfer or other disposition of
all or substantially all of the assets of the Company to one or more persons or
entities that are not, immediately prior to such sale, transfer or other
disposition, Affiliates of  the Company.

Notwithstanding the foregoing, a Public Offering shall
not constitute a Change in Control.

“Change in Control Price” means the price per
share of Common Stock offered in conjunction with any transaction resulting in
a Change in Control.  If any part of the
offered price is payable other than in cash, the Change in Control price shall
be determined in good faith by the Board as constituted immediately prior to
the Change in Control.

“Code” means the United States Internal Revenue
Code of 1986, as amended, and any successor thereto.

“Common Stock” means the Common Stock, par
value $.01 per share, of the Company.

“Company” means CDRV Investors, Inc., a
Delaware corporation, and any successor thereto.

“Director Share Award” means an award pursuant
to Article VIII to an Eligible Director of Common Stock, a right to receive
Common Stock or a payment measured by reference thereto and distributions
thereon.

“Disability” means, unless otherwise provided
in an Award Agreement, a Participant’s long-term disability within the meaning
of the long-term disability 

 8
 

 

insurance plan or program
of the Company or Subsidiary of the Company then covering the Participant, or
in the absence of such a plan or program, as determined by the Board.  The Board’s reasoned and good faith judgment
of Disability shall be final and shall be based on such competent medical
evidence as shall be presented to it by the Participant or by any physician or
group of physicians or other competent medical expert employed by the
Participant or the Company to advise the Board.

“Eligible Director” means a member of the Board
other than an employee or officer of the Company or any of its Subsidiaries.

“Employee” means any executive, officer or
other employee of the Company or any Subsidiary.

“Fair Market Value” means, as of any date of
determination prior to a Public Offering, the per share fair market value on
such date of a share of Common Stock as determined in good faith by the
Board.  In making a determination of Fair
Market Value, the Board shall give due consideration to such factors as it
deems appropriate, including, but not limited to, the earnings and other
financial and operating information of the Company in recent periods, the
potential value of the Company as a whole, the future prospects of the Company
and the industries in which it competes, the history and management of the
Company, the general condition of the securities markets, the fair market value
of securities of companies engaged in businesses similar to those of the
Company, and any recent valuation of the Common Stock that shall have been
performed by an independent valuation firm (although nothing herein shall
obligate the Board to obtain any such independent valuation).  Unless otherwise determined by the Board or
provided in an Award Agreement, any determination of Fair Market Value as of
the end of any fiscal year shall continue to apply throughout the next
succeeding fiscal year.  The
determination of Fair Market Value will not give effect to any restrictions on
transfer of the Common Stock or take into account any control premium, but
shall be determined taking into account the fact that such shares would
represent a minority interest in the Company and are illiquid.  Initially, the Fair Market Value shall be
$100.00 per share, which is the price paid by the CD&R Fund and its
co-investors in connection with their initial investment in the Company.  Following a Public Offering, “Fair Market
Value” shall mean, as of any date of determination, the mid-point between the
high and the low trading prices for such date per share of Common Stock as
reported on the principal stock exchange on which the shares of Common Stock
are then listed.

“Grant Date” means, with respect to any Award,
the date as of which such Award is granted pursuant to the Plan.

“Option” means the right granted pursuant to
the Plan to purchase one share of Common Stock.

“Option Agreement” means an agreement between
the Company and a Participant embodying the terms of any Options granted
pursuant to the Plan and in the form approved by the Board from time to time
for such purpose.

 9
 

 

“Participant” means any Employee or Eligible Director who is granted
an Award.

“Person” means any natural person, firm,
partnership, limited liability company, association, corporation, company,
trust, business trust, governmental authority or other entity.

“Plan” means this CDRV Investors, Inc. Stock
Incentive Plan.

“Public Offering” means the first day as of
which (i) sales of Common Stock are made to the public in the United
States pursuant to an underwritten public offering of the Common Stock led by
one or more underwriters at least one of which is an underwriter of nationally
recognized standing or (ii) the Board has determined that shares of the
Common Stock otherwise have become publicly-traded for this purpose.

“Special Termination” has the meaning given in
Section 6.1.

“Subscription Agreement” means a stock
subscription agreement between the Company and a Participant embodying the
terms of any stock purchase made pursuant to the Plan and in the form approved
by the Board from time to time for such purpose.

“Subsidiary” means any corporation limited
liability company or other entity, a majority of whose outstanding voting
securities is owned, directly or indirectly, by the Company.

Section 11.2             Gender and Number.  Except when otherwise indicated by the
context, words in the masculine gender used in the Plan shall include the
feminine gender, the singular shall include the plural, and the plural shall
include the singular.

Article
XII

Miscellaneous Provisions

Section 12.1             Nontransferability of Awards.  Except as otherwise provided herein or as the
Board may permit on such terms as it shall determine, no Awards granted under
the Plan may be sold, transferred, pledged, assigned, hedged, encumbered or
otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution.  All rights
with respect to Awards granted to a Participant under the Plan shall be
exercisable during the Participant’s life-time by such Participant only (or, in
the event of the Participant’s Disability, such Participant’s legal
representative).  Following a Participant’s
death, all rights with respect to Awards that were outstanding at the time of
such Participant’s death and have not terminated shall be exercised by his
designated beneficiary or by his estate in the absence of a designated
beneficiary.

Section 12.2           Tax
Withholding.  The Company or the
Subsidiary employing a Participant shall have the power to withhold, or to
require such Participant to remit to the Company or such Subsidiary, an amount
sufficient to satisfy all U.S. federal, state, local 

 10
 

 

and any non-U.S. withholding tax or other governmental tax, charge or
fee requirements in respect of any Award granted under the Plan.

Section 12.3           Beneficiary
Designation.  Pursuant to such rules
and procedures as the Board may from time to time establish, a Participant may
name beneficiary or beneficiaries (who may be named contingently or
successively) by whom any right under the Plan is to be exercised in case of
such Participant’s death.  Each
designation will revoke all prior designations by the same Participant, shall
be in a form reasonably prescribed by the Board, and will be effective only
when filed by the Participant in writing with the Board during his lifetime.

Section 12.4             Delivery of Financial Statements to
Participants.  Each year the Company
will provide the Company’s annual financial statements to the Participants.

Section 12.5           Limitation
on Number of Outstanding Options.  At
no time shall the total number of shares of Common Stock issuable upon exercise
of all outstanding Options and the total number of shares of Common Stock
provided for under any bonus or similar plan or agreement of the Company exceed
30%. as calculated in accordance with the conditions and exclusions of
California Code of Regulations, Title 10, Ch. 3, Section 260.140.45, of the
securities outstanding at the time the calculation is made.

Section 12.6             No Guarantee of Employment or
Participation.  Nothing in the Plan
or in any agreement granted hereunder shall interfere with or limit in any way
the right of the Company or any Subsidiary to terminate any Participant’s
employment or retention at any time, or confer upon any Participant any right
to continue in the employ or retention of the Company or any Subsidiary.  No Employee or Eligible Director shall have a
right to be selected as a Participant or, having been so selected, to receive
any Awards.

Section 12.7           No
Limitation on Compensation; No Impact on Benefits.  Nothing in the Plan shall be construed to
limit the right of the Company or any Subsidiary to establish other plans or to
pay compensation to its Employees or Eligible Directors, in cash or property,
in a manner that is not expressly authorized under the Plan.  Except as may otherwise be specifically and
unequivocally stated under any employee benefit plan, policy or program, no
amount payable in respect of any Award shall be treated as compensation for purposes
of calculating a Participant’s rights under any such plan, policy or
program.  The selection of an Employee as
a Participant shall neither entitle such Employee to, nor disqualify such
Employee from, participation in any other award or incentive plan.

Section 12.8             Requirements of Law.  The granting of Awards and the issuance of
shares of Common Stock pursuant to the Plan shall be subject to all applicable
laws, rules and regulations, and to such approvals by any governmental agencies
or national securities exchanges as may be required.  No Awards shall be granted under the Plan,
and no shares of Common Stock shall be issued under the Plan, if such grant or
issuance would result in a violation of applicable law, including U.S. federal
securities laws and any applicable state or non-U.S. securities laws.

Section 12.9             Freedom of Action.  Nothing in the Plan or any Award Agreement
evidencing an Award shall be construed as limiting or preventing the Company or
any 

 11
 

 

Subsidiary from taking any action that it deems appropriate or in its
best interest (as determined in its sole and absolute discretion) and no
Participant (or person claiming by or through a Participant) shall have any
right relating to the diminishment in the value of any Award as a result of any
such action.

Section 12.10        
Unfunded Plan; Plan Not Subject to ERISA.  The plan is an unfunded plan and Participants
shall have the status of unsecured creditors of the Company.  The Plan is not intended to be subject to the
Employee Retirement Income and Security Act of 1974, as amended.

Section 12.11           Term of Plan.  The Plan shall be effective as of the date
specified by the Board and shall continue in effect, unless sooner terminated
pursuant to Article X, until the tenth anniversary of such date, the provisions
of the Plan shall continue thereafter to govern all outstanding Awards.

Section 12.12           No Voting Rights.  Except as otherwise required by law, no
Participant holding any Awards granted under the Plan shall have any right in
respect of such Awards to vote on any matter submitted to the Company’s
stockholders until such time as the shares of Common Stock underlying such
Awards have been issued.

Section 12.13           Governing Law.  The Plan, and all agreements hereunder, shall
be governed by and construed in accordance with the law of the State of New
York regardless of the application of rules of conflict of law that would apply
the laws of any other jurisdiction, except to the extent that the corporate law
of the State of Delaware specifically and mandatorily applies.

Effective Date as Originally Adopted: May 27, 2004

Effective Date as Amended
and Restated:  September 20, 2006

 

 12

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