Document:

sun_ex101.htm

EXHIBIT 10.1

 

LAND LEASE SUBTENANT AGREEMENT

 

THIS LAND LEASE AGREEMENT (“Lease”) is entered into and is made effective as of March 1, 2017 (“Effective Date”) by and between Lighthouse Botanicals Cooperative and J.R. Richardson, on the one hand (collectively “Landlord”), whose mailing address is: 20420 Spence Road, Salinas, California, and Battle Mountain Genetics, whose mailing address is 555 N El Camino Real #A418, San Clemente, CA 92672 (collectively “Tenant”), who for the consideration of their mutual promises herein agree as follows:

 

1. Recitals.

 

1.1 Landlord is the tenant of the owner of the certain real property located at 20420 Spence Road, Salinas, California (“Owner”) (“Premises”). The Premises are identified on the map attached hereto as Exhibit A and incorporated by reference herein. The property includes 220,000 square feet of greenhouses. 

 

1.2 Subtenancy. The parties are entering into an agreement whereby Landlord is a tenant of Owner, and Tenant is subtenant of Landlord.

 

1.1.1 Further subtenancy. As described herein, Tenant, at its sole election, shall be permitted to sublease to one party only, namely to the California cannabis collective operating as VBF Brands, Inc., for as long as Tenant may be required to do so to comply with County or State law, or as Tenant may, by its own determination, consider it to be legally prudent to do so. (“Collective”). By Tenant’s entry into this Agreement, Collective acquires no rights against Landlord or Owner, except as may be provided by law. Tenant agrees to enter into an agreement with Collective with substantially the same terms, as may be applicable, as this Agreement. Tenant agrees that it is responsible for all legal compliance that may be required by Collective.

 

1.3 Tenant shall have the exclusive right to cultivate cannabis within the greenhouse structure identified on Exhibit A as structure E, and the non-exclusive right, as described herein, to cultivate cannabis within the structure identified on Exhibit A as structure C (part of the packing building) (“Structures”). The greenhouse structures remaining on Exhibit A shall remain in the possession of Landlord or Owner, as per separate agreement, to which Tenant is not a party.

 

1.4 The Tenant intends to cultivate and process cannabis on the Premises, and to process and manufacture cannabis-related products, in full compliance with Monterey County and California State Law, and in accordance with the standards, policies, and implementation procedures established by Landlord, as partially enumerated herein, but as reasonably developed from time to time for the purposes of maintaining a high quality level farm, security, health and safety standards, and as close to (if not meeting or exceeding) organic standards as possible.

 

	
	
Page 1 of 16

Plus Exhibits A and B

	

 
	 

 

1.5 Obtaining all required commercial cannabis business licenses shall be the sole responsibility of Tenant as applicable. Landlord agrees, through Owner, to obtain the use permit entitlement through the Monterey County Resource Management Agency. If Tenant is unable to procure specifically manufacturing permitting and licensing under local or State law, this shall not affect the enforceability of this Agreement, whereas, if Tenant is unable to procure specifically cannabis permitting and licensing under local or State law, this shall affect the enforceability of this Agreement as provided herein (e.g., Sections 21, 22.2, et. seq).

 

2. Lease. Landlord leases to Tenant, and Tenant leases from Landlord the Tenant Structures on the Premises in accordance with the terms and conditions of this Lease. Further, Landlord agrees that Tenant may at its election sublease to the California cannabis collective operating as VBF Brands, Inc. in accordance with the terms of Section 1.1.1 of this Agreement, as Lease Terms, not mere recitals.

 

3. Initial Term. 

 

3.1 Initial Term. The initial term of this Lease shall be three (3) years commencing upon April 1, 2017 and ending on March 31, 2020, with respect to Tenant’s lease for greenhouses referenced on Exhibit A as greenhouse E and C (part of the packing building ).

 

3.1.1 Term of lease for greenhouse referenced on Exhibit A as greenhouse E shall commence on April 1, 2017. Greenhouse E is twelve thousand (12,000) square feet. Rent for greenhouse E is ($.50) per square foot totaling $6,000 per month. 

 

3.1.2 Term of lease for the shed/packing building referenced on Exhibit A as C/D, shall commence on April 1, 2017 (the “Packing Building”). The Packing Building shall be shared between Landlord and Tenant as follows: Tenant shall be entitled to one thousand (1,000) square feet of section C of the packing building, the ultimate size of which is four thousand (4,000) square feet, leased by Landlord from Owner under separate agreement. Rent for Tenant’s portion of the Shed shall be ($1.00) per square foot totaling $1,000 per month.

 

3.2 Option to Extend. Tenant shall have the option to extend the Initial Term of this Lease for two (2) additional five (5) year periods (“Option”) which shall run consecutively, following expiration of the Initial Term by providing Landlord with notice of exercise of the Option no later than One Hundred Eighty (180) days prior to the expiration of the Term. Exercise of option to extend lease term shall increase the monthly rental amount 5% upon each new option term.

 

3.3 Early Termination. Notwithstanding anything to the contrary contained herein, and in addition to any other available remedies, Landlord may terminate this Lease immediately upon notice to Tenant in any of the following events:

 

a. Delivery of written notice from any lender that holds a lien on the Real Property to Owner that Tenant’s activities on the Premises violate any loan covenant with such lender and delivery of copy of written notice to Tenant, provided Tenant is given a reasonable opportunity to cure any such alleged violation, and Tenant fails to do so in a reasonable time;

 

	 
	
Page 2 of 16

Plus Exhibits A and B

	

 
	 

 

b. Delivery of written notice or action by the United States Federal government requesting, recommending or requiring cessation of Tenant’s activities on the Premises and delivery of copy of written notice to Tenant. In such event, Tenant shall not be deemed to be in breach or default of this Agreement, nor shall Landlord, as a result of such event, otherwise benefit from any rights that would otherwise accrue to Landlord’s benefit if Tenant were to breach or default under this Agreement;

 

c. Any event that (i) causes Tenant to require closure of the Premises for more than 180 consecutive days for remediation of materially adverse circumstances created by Tenant’s use of the Premises, or for more than 210 nonconsecutive calendar days within a 360 consecutive day period, or (ii) causes Landlord’s insurance carrier to cancel or increase the premium for coverage on the Premises, excluding fire and other natural calamity events unless the source of such event is directly related to Tenant’s cannabis operation as well as negligent or intentional acts, including but not limited to a heat lamp-related fire in any cannabis cultivation site. 

 

4. Rent.

 

4.1 Monthly Rent. Not later than the 5th day of each month during the Term, Tenant shall pay Landlord monthly rent as follows:

 

4.1.1 Rent for greenhouse E, and portion of the packing building C referenced on Exhibit A and defined in part in Section 3 et seq. of this Agreement, shall commence on April 1, 2017 and shall be $7,000 per month for the Initial Term, as further detailed in Sections 3.1.1 and 3.1.2 of this Agreement.

 

4.2 Security Deposit. Tenant shall pay Landlord the sum of $14,000 (fourteen thousand), payable prior to the commencement of said Lease as a true security deposit (“Security Deposit”). Landlord shall refund the deposit to Tenant upon Tenant’s full performance of its obligations under this lease and vacating of the premises, provided however, that the Landlord may deduct from the Security Deposit any unpaid assessments, expenses incurred for repairing damages to the premises, or cleaning expenses necessary to restore the premises to the condition they were in upon commencement of said Lease, ordinary wear and tear excepted. 

 

4.3 Late Fees. If the monthly rent is not received by the tenth (10th) day of each month, it is late. Tenant hereby acknowledges that the late payment of the rent or other sums due hereunder will cause Landlord to incur costs not contemplated by said Lease, the exact amount of which will be extremely difficult to ascertain. In the event Rent is not paid by the 10th day of the month, a pay charge equal to ten percent (10%) of the overdue amount will be due immediately. The parties agree that such late charge represents a fair and reasonable estimate of the costs incurred by reason of the late payment. Acceptance of late payment or enactment of late payment penalty shall not waive any rights of Landlord under said Lease. In the event Tenant’s monthly rent check payment is returned for any reason Tenant will incur a returned check charge of $25.00. After such occurrence Landlord has the right to demand payments by cashier’s check, money order or cash.

 

	 
	
Page 3 of 16

Plus Exhibits A and B

	

 
	 

 

4.4 Utilities. Tenant shall be solely responsible to pay prorated natural gas, heating, cooling, energy, light, power, sewer service, telephone, water, refuse disposal and other utilities and services provided to the Premises during the Term, together with any related installation or connection charges or deposits. Landlord shall install a submeter to measure electricity use by Tenant. Each individual greenhouse structure shall be equipped with an electrical meter supplied by Landlord. 

 

a. The Premises is supplied with water by a well located on adjacent property owned by Owner. Tenant shall be entitled to the water produced by said well that is necessary to accomplish Tenant’s objectives, subject to local and State restrictions on water usage. In the event the Tenant’s usage of water causes said well to need repair, the Parties agree to split the costs of said well.

 

b. Except as provided herein, in no event shall Landlord be liable for billings, payments, advancements of money for payment, or reimbursement to others for or with respect to any of the above services, materials or charges. 

 

5. Use. 

 

5.1 Tenant’s Business. Tenant shall use the Premises for the exclusive purpose of cannabis cultivation and to process and manufacture cannabis-related products, as defined in Section 1.3 of this Lease, and for no other use (“Permitted Activities”). Tenant shall not use or permit the use of the Premises for any other purpose whatsoever without the express prior written consent of Landlord. Except as necessary for Tenant to conduct the Permitted Activities, Tenant shall not commit any acts on the Premises, nor use the Premises in any manner, that will increase the existing insurance rates for or cause the cancellation of any fire, liability or other insurance policy insuring or hereinafter insuring the Premises or the improvements on the Premises. Tenant shall comply will all cannabis compliance requirements set forth by the County of Monterey and State of California. 

 

6. Premises Security. Except as provided by Landlord, Tenant shall be responsible for ensuring the perimeter and all eased areas and structures of the areas that Tenant is leasing from Landlord are adequately secured against trespassing. Landlord and Tenant shall jointly meet with co-tenants, if any, to ensure Premises security protocols and expectations are adequately communicated and understood. Landlord shall nominate a property manager that staff and co-tenants may contact and maintain a 24-hour contact phone number for use in the event of an emergency. Where necessary, Tenant shall make itself available to communicate with co-tenants on Landlord’s behalf or on behalf of co-tenants, or Owner.

 

	 
	
Page 4 of 16

Plus Exhibits A and B

	

 
	 

 

7. Taxes. 

 

7.1 Real Property Taxes. Tenant shall pay prorated ad valorem real property taxes (including assessments) levied or assessed upon the Leased Property during the term of this Lease, one-half (1⁄2) on December 1 and one-half (1⁄2) on April 1 of each year. Landlord will provide Tenant with a copy of the tax bill at least ten days (10) prior to December 1 of each year. 

 

7.1.2 Yearly Increase. The ad valorem real property tax allocation shall be the same if the yearly tax amount is increased due to improvements. The most current tax bill shall be attached hereto as Exhibit B. Any further leasing of greenhouse space by Tenant in the future shall reflect a corresponding increase in Tenant’s tax liability. 

 

7.2 Bonded Indebtedness. Landlord retains the option to pay any assessment in full before any bonded indebtedness shall accrue as a result of Tenant’s failure to timely pay. In the event Landlord pays such assessment, Landlord may charge Tenant with a proportionate share of such assessment as if such assessment became a bonded indebtedness including a 10% penalty payment.

 

7.3 Personal Property Taxes. Tenant shall pay, before delinquency, all business inventory and personal property taxes and other charges of every description which may be levied or assessed during the term of this Lease upon or against Tenants business, personal property, or trade fixtures, together with any interest or penalties which may be incurred. In the event Tenant fails to pay any of the foregoing, Landlord may pay same together with any interest and penalties and Tenant agrees to reimburse Landlord as provided herein.

 

8. Condition of Premises. Tenant accepts possession of the Premises in its existing “as is, where is” condition. Except as enumerated herein, Tenant shall secure all permits, licenses or other approvals required by any governmental authority for its use or buildout of the Premises.

 

9. Repairs and Maintenance.

 

9.1 Tenant’s Responsibility. Tenant shall keep and maintain the Premises in good operating order and condition at Tenant’s sole cost. Tenant shall be responsible for replacing such items as needed, and deliver to Landlord physical possession of the Premises at the termination of this Lease or any sooner expiration thereof in as good condition and repair as Tenant received the Premises, reasonable wear and tear excepted. If repairs or improvements made by Tenant require any permit from the County of Monterey, Tenant shall bear full financial responsibility for obtaining the necessary permits.

 

	 
	
Page 5 of 16

Plus Exhibits A and B

	

 
	 

 

9.2 Tenant’s Failure to Maintain. If at any time during the Term, including any extensions thereof, Tenant fails to maintain the Premises or make any repairs or replacements as stated, Landlord shall have the right to, but shall not be required to, enter the Premises and perform the maintenance or make the repairs or replacements or retain third party servicemen to perform such services, as the case may be. Any sums expended by Landlord in so doing, together with interest at ten percent (10%) per annum, shall be deemed Additional Rent and shall be immediately due from Tenant on demand of Landlord.

 

10. Alterations.

 

10.1 Landlord Consent. Tenant shall not make or allow any structural alterations, additions or improvements to the Premises or any part of the Premises (collectively “Alterations”) without Landlord’s prior written consent. All Alterations and any furnishings, fixtures, equipment or decorative improvements remaining on the Premises after the termination or earlier expiration of this Lease shall become Landlord’s property and shall remain on the Premises without compensation to Tenant, unless Tenant elects to have Tenant remove the same and restore the Premises to the condition as of the date of this Lease, in which event Tenant shall cause such removal and/or restoration to be done at Tenant's sole cost and expense, or, in the absence of Tenant’s said election, unless Landlord elects, by notice to Tenant, to have Tenant remove the same and restore the Premises to the condition as of the date of this Lease, in which event Tenant shall cause such removal and/or restoration to be done at Tenant's sole cost and expense. All improvements, additions, Alterations and repairs and the removal and restoration thereof, if required by Landlord, shall be performed in accordance with all applicable laws and at Tenant’s sole cost and expense. 

 

10.2 Notice. At least thirty (30) days before any construction commences or materials are delivered for any Alterations that Tenant is making to the Premises, Tenant shall give written notice to Landlord as to when the construction is to commence or the materials are to be delivered. Landlord shall then have the right to post and maintain on the Premises any notices that are required to protect Landlord and Landlord’s interest in the Premises from any liens for work and labor performed or materials furnished in making the Alterations. It shall be Tenant’s duty to keep the Premises free and clear of all liens, claims and demands for work performed, materials furnished or operations conducted on the Premises by or on behalf of Tenant.

 

11. Entry. Except in an emergency, or where Tenant is in breach hereof, Landlord shall give Tenant not less than 24 hours’ notice of Landlord or its authorized agent’s entry upon the premises for purposes of inspection to determine the compliance with the terms of this Lease, exercising all rights under said Lease, posting notices, and all other lawful purposes, so long as such entry shall not unreasonably disrupt the Tenant’s conduct of business. Landlord and Owner shall have unfettered access to all other structures, as agreed on separately between themselves.

 

	 
	
Page 6 of 16

Plus Exhibits A and B

	

 
	 

 

12. Surrender of Premises.

 

12.1 Surrender. On the last day of the Initial Term, if Tenant does not timely exercise Tenant’s Option to Extend under 3.2 of this Agreement, or on the sooner termination of this Lease, Tenant shall surrender the Premises promptly and peaceably to Landlord. If Tenant fails to surrender the Premises at the end of the Initial Term, if Tenant does not timely exercise Tenant’s Option to Extend under 3.2 of this Agreement, or other sooner termination of this Lease, then Tenant shall indemnify Landlord against reasonable loss or liability resulting from the delay by Tenant in so surrendering the Premises, including, without limitation, any claims made by any succeeding tenant founded on such delay. After the expiration or earlier termination of this Lease, Tenant shall execute, acknowledge, and deliver to Landlord, within ten (10) days after written demand from Landlord to Tenant, any quitclaim deed or other document required by any reputable title company, licensed to operate in the State of California, to remove the cloud or encumbrance created by this Lease from the real property containing the Premises.

 

12.2 Holding Over. At the end of the Term, should Tenant hold over for any reason, it is agreed that such hold over shall result in a month-to-month tenancy and not a renewal or extension of the Term of this Lease. Tenant shall pay monthly rent in an amount equal to one hundred twenty five percent (125%) of the Monthly Rent payable for the month immediately prior to the end of the Term or any extension thereof (“Holdover Rent”) pro-rated for the number of days that Tenant holds over following the end of the Term of this Lease. The tenancy during such holdover period shall be subject to every other term, covenant, and condition in this Lease that is consistent with, and not contrary to, a month-to-month tenancy.

 

13. Indemnification - Tenant’s Obligation. Tenant shall indemnify, defend, protect and hold free and harmless Landlord and Landlord's employees, agents and contractors from all liabilities, penalties, losses, damages, costs, expenses, causes of action, claims or judgments, including, but not limited to, attorney's fees and costs, arising by reason of any death, bodily injury, personal injury or property damage resulting from: (i) any cause occurring in or about the Premises or resulting from an occurrence in or about the Premises during the Term, unless due to the negligence or willful misconduct of Landlord, Landlord’s employees, agents or contractors; (ii) any act, work or thing done or permitted to be done or otherwise suffered, or any omission to act, in or about the Premises by Tenant or by any of Tenant's agents, officers, directors, employees, subtenants, contractors, licensees, or invitees; (iii) the negligence or willful misconduct of Tenant or Tenant's agents, employees, subcontractors, invitees, licensees, contractors, and subcontractors, wherever it occurs; (iv) an uncurable violation of any local or state laws or (v) an Event of Default by Tenant or any failure to comply with any provision of this Lease. Similarly, Landlord shall indemnify, defend, protect and hold free and harmless Tenant and Tenant’s employees, agents and contractors from all liabilities, penalties, losses, damages, costs, expenses, causes of action, claims or judgments, including, but not limited to, attorney's fees and costs, arising by reason of any death, bodily injury, personal injury or property damage resulting from: (i) any cause occurring in or about the Premises or resulting from an occurrence in or about the Premises during the Term, unless due to the negligence or willful misconduct of Tenant, Tenant’s employees, agents or contractors; (ii) any act, work or thing done or permitted to be done or otherwise suffered, or any omission to act, in or about the Premises by Landlord or by any of Landlord’s agents, officers, directors, employees, subtenants, contractors, licensees, or invitees; (iii) the negligence or willful misconduct of Landlord or Landlord’s agents, employees, subcontractors, invitees, licensees, contractors, and subcontractors, wherever it occurs; (iv) an uncurable violation of any local or state laws or (v) an Event of Default by Landlord or any failure to comply with any provision of this Lease. 

 

	 
	
Page 7 of 16

Plus Exhibits A and B

	

 
	 

 

14. Insurance.

 

14.1 Real Property Insurance. Landlord shall be solely responsible for procuring and maintaining general property insurance on the Premises. However, if Landlord’s insurance costs are increased due to Tenant’s particular use of the Premises, then Tenant shall pay to Landlord the full cost of such increase attributable to the Tenant’s use of the Premises. Upon any such increase, Tenant shall have the right to research and procure comparable insurance with the same coverage and deductibles as Landlord’s then-current insurance through Tenant’s own means in order to reduce such costs. Tenant shall have no interest in, nor any right to, the proceeds of any insurance procured by Landlord for or with respect to the Premises, except for amounts specifically designated by the carrier as compensation for: (i) tenant improvements installed and paid for by Tenant; (ii) Tenant's furniture, fixtures, and equipment; or (iii) Tenant's moving or relocation costs. Landlord agrees to provide Tenant with any and all related insurance documentation, upon Tenant’s reasonable request.

 

14.2 Tenant’s Insurance. At all times during the Term and any holdover period and/or options term, Tenant, at its sole cost and expense, shall procure and maintain the following types of insurance:

 

14.2.1 Tenant shall, at Tenant's expense, obtain and keep in force during the Term of this Lease a policy of commercial general liability insurance with Broad Form Liability, and cross-liability endorsements, insuring Landlord and Tenant against any liability arising out of the use or occupancy of the Premises and all areas appurtenant thereto, including parking areas. Such insurance shall be in an amount satisfactory to Landlord of not less than $1,000,000 for fire damage, $3,000,000 per occurrence and $5,000,000 annually in the aggregate for all claims. Such policy shall name Landlord as an additional insured.

 

14.2.2 Tenant shall, at Tenant's expense, obtain and keep in force, during the Term of this Lease, an “all risk” insurance policy with a sprinkler damage endorsement for Tenant's personal property, inventory, Alterations, fixtures, equipment, plate glass, and leasehold improvements located on the Premises, in an amount not less than one hundred percent (100%) of their actual replacement value, providing coverage for risk of direct physical loss or damage, including sprinkler leakage, vandalism, and malicious mischief. The proceeds of such insurance, so long as this Lease remains in effect, shall be used to repair or replace the personal property, inventory, Alterations, fixtures, equipment, and leasehold improvements so insured. Provided such proceeds are applied as set forth in this Section 14.2.2, any insurance proceeds received by Tenant under such policy shall be the sole property of Tenant, and Landlord shall have no rights thereto.

 

	 
	
Page 8 of 16

Plus Exhibits A and B

	

 
	 

 

14.3 Waiver of Subrogation. All insurance maintained by Landlord and Tenant shall each contain a waiver of subrogation clause. 

 

15. Trade Fixtures. Tenant shall have the right, at any time and from time to time during the Term, at Tenant’s sole cost and expense, to install and affix on the Premises items for use in Tenant’s trade or business (collectively “Trade Fixtures”). Fixtures and all improvements, except as to Structural Improvements, installed in the Premises by Tenant shall always remain the property of Tenant and may be removed at the expiration of the Term or any extension, provided that any damage to the Premises caused by the removal of the Trade Fixtures shall be repaired by Tenant, and further provided that Landlord shall have the right to keep any Trade Fixtures or to require Tenant to remove any Trade Fixtures that Tenant might otherwise elect to abandon. Any Trade Fixtures that are not removed from the Premises by Tenant within twenty-one (21) days after the Termination Date shall be deemed abandoned by Tenant and shall automatically become the property of Landlord as owner of the real property to which they are affixed, except in cases where more than 21 days is reasonably necessary for Tenant to remove said Trade Fixtures, and provided that Tenant timely and reasonably exercises all actions necessary to remove said Trade Fixtures promptly, i.e., as soon as reasonably practicable

 

16. Signs. Tenant shall not place, maintain, nor permit on any exterior door, wall, or window of the Premises any sign, awning, canopy, marquee, or other advertising without (i) the express prior written consent of Landlord, and (ii) complying with any criteria as to signs in both applicable ordinances and in any covenants, conditions, and restrictions recorded prior to the date of this Lease. Furthermore, Tenant shall not place any decoration, lettering, or advertising matter on the glass of any exterior window of the Premises without the prior written approval of Landlord, which approval shall not be unreasonably withheld. If Tenant installs any sign, awning, canopy, marquee, decoration, or advertising matter in accordance with the terms of this Section, Tenant shall maintain it in good appearance and repair at all times during this Lease. At the Termination Date, any of the items mentioned in this Section that are not removed from the Premises by Tenant may, without damage or liability, be removed and destroyed by Landlord and Tenant shall be liable to Landlord for the cost of such removal and destruction.

 

17. Damage and Destruction.

 

17.1 Insured Casualty. If, during the term, the premises are totally or partially destroyed from a risk covered by Tenant’s insurance, rendering the Premises totally or partially unusable, Tenant shall restore the premises. Such destruction shall not terminate this Lease. If the existing laws do not permit the restoration, either party can terminate this Lease immediately by giving written notice to the other party. If the costs of restoration exceeds the amount of the proceeds received from Tenant’s insurance, Tenant can elect to terminate this Lease by giving notice to Landlord within twenty (20) days after determining that the restoration costs will exceed the insurance proceeds, provided that Tenant provides Landlord together with termination notice, (i) a professional evaluation supporting Tenant’s determination, (ii) the totality of insurance proceeds and (iii) Tenant’s written waiver of any and all rights in and to, or reimbursement of monies had or held by Landlord at any time. 

 

	 
	
Page 9 of 16

Plus Exhibits A and B

	

 
	 

 

17.2 Uninsured Casualty. If the Premises are damaged or destroyed in whole or in part by any uninsured or under insured casualty, Landlord may within one hundred and twenty (120) days following the date of such damage: (i) commence to restore the Premises to substantially the same condition as they were in immediately before the destruction and prosecute the same diligently to completion, in which event this Lease shall continue in full force and effect; or (ii) within the 120-day period, Landlord may elect not to so restore the Premises. In either event, Landlord shall give Tenant written notice of its intention within one hundred and twenty (120) days following such casualty.

 

18. Condemnation.

 

18.1 Date of Condemnation. If, during the Term or any renewal thereof, the whole of the Premises shall be taken pursuant to any condemnation proceeding, this Lease shall terminate on the date that title vests pursuant to such taking, and after that, both Landlord and Tenant shall be released from all obligations under this Lease.

 

18.2 Partial Termination. If, during the Term or any renewal or extension, only a part of the Premises is taken pursuant to any condemnation proceeding and the remaining portion is not suitable or adequate for the purposes for which Tenant was using the Premises prior to the taking, or if the Premises should become unsuitable or inadequate for those purposes by reason of the taking of any other property adjacent to or over the Premises pursuant to any condemnation proceeding, or if by reason of any law or ordinance the use of the Premises for the purposes specified in this Lease shall become unlawful, then and after the taking or after the occurrence of other described events, Tenant shall have the option to terminate, and the option can be exercised only after the taking or after the occurrence of other described events by Tenant giving ten (10) days' written notice to Landlord, and Rent shall be paid only to the time when Tenant surrenders possession of the Premises. Without limiting the generality of the previous provision, it is agreed that in the event of a partial taking of the Premises pursuant to any condemnation proceeding, if the number of square feet of floor area in the portion remaining after the taking is less than eighty percent (80%) of the number of square feet of floor area at the commencement of the Term, Tenant shall, after the taking, have the option to terminate this Lease on ten (10) days written notice to Landlord, and Rent shall be paid only to the time when Tenant surrenders possession of the Premises.

 

18.3 Restore Premises. If only a part of the Premises is taken pursuant to any condemnation proceeding under circumstances that render Tenant without the option to terminate this Lease as provided in this Section, or having the option to terminate, Tenant elects not to terminate, then Landlord shall, at Tenant's expense, promptly proceed to restore the remainder of the Premises to a self-contained architectural unit, and the Monthly Rent payable shall be reduced effective as of the date of the taking to an amount that shall be in the same proportion to Monthly Rent payable prior to the taking, as the number of square feet of floor area remaining after the taking relates to the number of square feet of floor area immediately prior to the taking.

 

	 
	
Page 10 of 16

Plus Exhibits A and B

	

 
	 

 

18.4 Tenant Rights. If the whole or any part of the Premises are taken pursuant to any condemnation proceeding, then Landlord shall be entitled to the entirety of any condemnation award except that portion specifically allocable by the condemning authority, if any, to: (i) tenant improvements installed and paid for by Tenant or (ii) Tenant's furniture, fixtures, and equipment.

 

19. Default. Any of the following events or occurrences, after the expiration of any applicable cure period, shall constitute a material breach of this Lease by Tenant and, shall constitute an event of default (each an “Event of Default”):

 

20.1 The failure by Tenant to comply with any local or California Statelaw, following a reasonable opportunity to cure, and upon Tenant’s failure to reasonably exercise all necessary efforts to cure.;

 

20.2 The failure by Tenant to pay any amount in full when it is due under the Lease, which Tenant has not cured within five (5) calendar days of receiving written notice of such failure from Landlord;

 

20.3 The failure by Tenant to perform any obligation under this Lease, which by its nature Tenant has no capacity to cure, except where, by operation of law, and to no fault of Tenant, Tenant has no reasonable capacity to cure (legal impossibility), in which case Tenant shall not be deemed to be in Default, nor shall such event be deemed an Event of Default;

 

20.4 Any of the following: any voluntary filing, petition, or application by Tenant under any law relating to insolvency or bankruptcy, whether for a declaration of bankruptcy, a reorganization, an arrangement, or otherwise; the abandonment, vacation, or surrender of the Premises by Tenant without Landlord's prior written consent; or the dispossession of Tenant from the Premises (other than by Landlord) by process of law or otherwise, not due to Tenant’s own fault or failure to take any reasonable action to cure;

 

20.5 Any of the following: the appointment of a trustee or receiver to take possession of all or substantially all of Tenant's assets or the attachment, execution or other judicial seizure of all or substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, unless the appointment or attachment, execution, or seizure is discharged within thirty (30) days; or the involuntary filing against Tenant of a petition to have Tenant declared bankrupt or for reorganization or arrangement of Tenant under any law relating to insolvency or bankruptcy, unless the petition is dismissed within sixty (60) days; or 

 

20.6 The abandonment of the Premises by Tenant. 

 

20.7 Any action by Tenant that does not comport and comply with best practices as established by Clean Green Certified and the National Organic Program.

 

	 
	
Page 11 of 16

Plus Exhibits A and B

	

 
	 

 

21. Violations of County of Monterey and State of California Cannabis Regulations. In the event that Tenant commits a violation of the County of Monterey or State of California cannabis related ordinances and statutes enacted after the execution of this Lease, for which Tenant is provided an opportunity by state or local authorities to cure such violation while continuing to operate, Tenant shall provide a copy of such notice of violation to Landlord within fifteen (15) days after receipt of the same and promptly cure any such violation. In the event such violation can be, and is, cured such that Tenant can continue to operate in good standing, such violation shall not be an immediate Event of Default. If Tenant is, by operation of law, precluded from the ability to comply with the laws of Monterey or the State of California, Tenant shall be excused from performance of this Agreement. However, if Tenant becomes non-compliant with the laws of Monterey or the State of California, having failed to reasonably exercise all reasonable actions necessary to become compliant with said laws, Tenant shall be deemed to be in default of this Agreement, provided that Tenant has a reasonable opportunity (or reasonable opportunities) to cure any such non-compliance (or series of non-compliances), and fails to avail himself of said reasonable opportunity (or reasonable opportunities).

 

22. Remedies. Upon the occurrence of an Event of Default, Landlord, in addition to any other rights or remedies available to Landlord at law or in equity, shall have the right to:

 

22.1 Terminate the Lease. Terminate this Lease and all rights of Tenant under this Lease by giving Tenant written notice that this Lease is terminated, in which case Landlord may recover from Tenant the aggregate sum of:

 

(i) The worth at the time of award (e.g. the amount) of any unpaid Monthly Rent that had been earned at the time of termination;

 

(ii) Any other amount necessary to compensate Landlord for all the detriment caused by Tenant's failure to perform Tenant's obligations or that, in the ordinary course of things, would be likely to result from Tenant's failure; and 

 

(iii) All other amounts in addition to or in lieu of those previously set out as may be permitted from time to time by applicable California law.

 

As used in clauses (i) and (ii) of this Section 22.1, the worth at the time of award is computed by allowing interest at the rate of ten percent (10%) per annum. As used in this Section, the term Monthly Rent shall include Monthly Rent, Additional Rent and any other payments required by Tenant under this Lease.

 

22.2 Notwithstanding any section or subsection of this Agreement to the contrary, if Tenant is precluded from local (Monterey) or State cannabis compliance laws, Tenant shall not be deemed to have defaulted under this Agreement.

 

	 
	
Page 12 of 16

Plus Exhibits A and B

	

 
	 

 

23. Estoppel Certificates. Each party, within ten (10) days after notice from the other party, shall execute and deliver to the other party, in recordable form, a certificate stating this lease is unmodified and in full force and effect, or in full force and effect as modified, and stating the modifications. The certificate shall also state whether the party contends that the other party is in default hereunder, and describes such default. Failure to deliver the certificate within the ten (10) days shall be conclusive upon the party failing to deliver the certificate for the benefit of the party requesting the certificate and any successor of the party requesting the certificate, that this lease is in full force and effect and has not been modified except as may be represented by the party requesting the certificate.

 

24. Lease Entity and Authorizations. Landlord represents and warrants it currently is a California non-profit mutual benefit company properly formed under the laws of the State of California and authorized to do business therein and is in full compliance with all necessary state taxes, insurance and business licenses. However, Tenant agrees to allow Landlord to fully, and without reservation, transfer any and all rights enjoyed by Landlord under this Agreement, to the for-profit entity currently tentatively anticipated to be Lighthouse Botanicals Holding, LLC or Incorporated, and allow the for-profit entity to continue to enjoy any and all rights and obligations currently enjoyed by Landlord under this Agreement, as if the for-profit entity were the same as the non-profit entity, in which case the new Landlord will be the for-profit entity. As it currently stands, Tenant anticipates forming a for-profit entity within sixty (60) days of execution of this Agreement (i.e., April/May 2017 ), and Tenant Agrees that the for-profit entity formed and selected by Landlord shall be the assignee of this Agreement, and the Parties agree that they shall modify the preamble, signature blocks, Notice Provisions (e.g. Section 25.13), and any other applicable section of this Agreement to reflect that the new Landlord is a for-profit entity. In such a case, both Parties shall sign this Agreement once again, with a new date of execution, but applicable/retroactive to the original execution date of this Agreement, with all terms and conditions of this Agreement remaining in full effect, and no change to any aspect of this Agreement except the preamble, signature block, Notice Provisions (e.g. Section 25.13), and any other applicable section of this Agreement, the substance of this Agreement remaining unmodified. 

 

25. General Provisions.

 

25.1 Amendment. This Lease may not be amended, modified or supplemented except by a written agreement executed by all the Parties.

 

25.2 Attorneys’ Fees. If Tenant fails to make any payment under this Lease in a timely manner, or if Landlord takes any actions to enforce the terms and conditions of this Lease, then Tenant covenants to pay all of Landlord’s costs and expenses of collection and other costs incurred by Landlord as a result thereof, including, but not limited to, Landlord’s actual attorneys’ fees and expenses incurred by Landlord on account of such collection, and for professional advice and for any and all other services Landlord determines to be necessary or advisable under such circumstances. Similarly, Landlord shall be bound to pay all reasonable attorney fees and other costs that Tenant incurs as a result of any breach by Landlord of this Agreement.

 

	 
	
Page 13 of 16

Plus Exhibits A and B

	

 
	 

 

25.3 Binding Effect. This Lease shall be binding upon and shall inure to the benefit of the Parties hereto and their permitted successors and assigns, and any reference to a Party hereto shall also be a reference to a permitted successor or assign.

 

25.4 Captions. The titles and captions contained in this Lease are inserted herein only as a matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Lease or the intent of any provision hereof. Unless otherwise specified to the contrary, all references to Sections are references to Sections of this Lease and all references to Exhibits are references to Exhibits to this Lease.

 

25.5 Complete Agreement. This Lease and the attached Exhibits constitute the complete and exclusive statement of agreement among the Parties with respect to the subject matter herein and therein replace and supersede all prior written and oral agreements or statements by and among the Parties. No representation, statement, condition or warranty not contained in this Lease, or the attached Exhibits, will be binding on the Parties or have any force or effect whatsoever, notwithstanding the provisions of Civil Code section 1698. 

 

25.6 Controlling Law. This Lease shall be governed by and construed and enforced in accordance with the laws of the State of California.

 

25.7 Counterparts. This Lease may be executed simultaneously in one (1) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

25.8 Enforcement of Certain Rights. Nothing expressed or implied in this Lease is intended, or shall be construed, to confer upon or give any person, firm or corporation other than the Parties hereto, and their successors or assigns, any rights, remedies, obligations or liabilities under or by reason of this Lease, or result in such person, firm or corporation being deemed a third party beneficiary of this Lease.

 

25.9 Fees and Expenses. Except as otherwise provided in this lease each Party shall pay its own fees, costs and expenses incurred in connection with this Lease and the transactions contemplated hereby, including, but not limited to, the fees, costs and expenses of its accountants and counsel.

 

25.10 Further Documents and Acts. The Parties to this Lease will, in good faith, exercise and perform such other acts as are reasonably necessary and appropriate to consummate and carry out the terms and conditions and other contracts described under this Lease. The Parties agree to execute and deliver such further instruments, agreements, contracts and documents, as may be reasonably required to effectuate the stated and intended purposes of this Lease.

 

	 
	
Page 14 of 16

Plus Exhibits A and B

	

 
	 

 

25.11 Interpretation. In the event any claim is made by any Party relating to any conflict, omission or ambiguity in this Lease, no presumption or burden of proof or persuasion shall be implied by virtue of the fact that this Lease was prepared by or at the request of a particular Party or his or its counsel. The Parties further agree that California Civil Code Section 1654 does not apply to this Lease.

 

25.12 Jurisdiction and Venue. The Parties acknowledge and understand that the making of this Agreement is in Monterey County, California. Any suit, arbitration, mediation or other remedial process shall be filed and maintained in Monterey County, California.

 

25.13 Notices. Any notice or demand herein or by law required or permitted to be given to or made by either Tenant or Landlord shall be in writing and may be personally serviced upon the party to whom the same may be addressed, or may be sent to such party by registered or certified United States mail, addressed to such party at the address given below. When served by mail, the date of service shall be the date of mailing.

 

	
To Tenant: TJ Magellanes

for Battle Mountain Genetics
	
 
	
To Landlord: J.R. Richardson

Lighthouse Botanicals

 

25.14 Reliance on Authority of Person Signing Agreement. If a Party is not a natural person, then no other Party will (a) be required to determine the authority of the individual signing this Lease to make any commitment or undertaking on behalf of such entity or to determine any fact or circumstance bearing upon the existence of the authority of such individual, or (b) be responsible for the application or distribution of proceeds paid or credited to individuals signing this Lease on behalf of such entity. In any event, both Parties to this Agreement warrant that they have the requisite legal authority to enter into this Agreement, and shall, upon reasonable request, provide any documentation to fully demonstrate said authority.

 

25.15 Remedies Cumulative. The remedies under this Lease are cumulative and shall not exclude any other remedies to which any person may be lawfully entitled.

 

25.16 Representations and Warranties. The representations and warranties, covenants and agreements of the Parties set forth in this Lease shall remain in full force and effect until duly satisfied or performed by the appropriate Party hereto. This Section shall not limit or restrict the Parties’ remedies against each other or any other person for fraud, willful misconduct, bad faith or any other intentional breach of any representation, warranty, covenant or agreement contained herein. The respective representations and warranties of the Parties contained herein or in any certificate or other document delivered by any Party shall not be deemed waived or otherwise affected by any investigation made by a Party hereto.

 

	 
	
Page 15 of 16

Plus Exhibits A and B

	

 
	 

 

25.17 Severability. The unenforceability, invalidity or illegality of any provision of this Lease shall not render the other provisions unenforceable, invalid, or illegal. If any provision of the Lease is held invalid or unenforceable, then the remainder of this Lease shall nevertheless remain in full force and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force and effect in all other circumstances. If any provision of this Lease is unenforceable under the law prevailing on the date hereof, but is enforceable under the law prevailing at a subsequent time, then such originally unenforceable provision shall be deemed to take effect at the time when it becomes enforceable. As used herein, the term “unenforceable” is used in its broadest and most comprehensive sense and includes the concepts of void or voidable.

 

25.18 Waiver. No action or inaction of any Party to this Lease, or any Party’s failure to promptly exercise any of their rights under this Lease, shall be deemed to be a waiver of that Party’s ability to enforce their rights under this Lease. Any such waiver shall only be effective if set forth in a signed written instrument by the Party granting such waiver. A waiver by one Party of the performance of any covenant, agreement, obligation, condition, representation or warranty shall not be construed as a waiver of any other covenant, agreement, obligation, condition, representation or warranty. A waiver by any Party of the performance of any act shall not constitute a waiver of the performance of any other act or an identical act required to be performed at a later time.

 

IN WITNESS WHEREOF, the undersigned have executed this Cultivation Lease as of the Effective Date.

 

	TENANT 	 	LANDLORD	 
	
 
	
 
	
 
	
 

		 		 
	Battle Mountain Genetics 	 	J.R. Richardson, Lighthouse Botanicals	 
	TJ Magellanes	 		 

 

	 
	
Page 16 of 16

Plus Exhibits A and B

	

 
	 

 

EXHIBIT A 

 

  

 

	 
	
	

 
	 

 

EXHIBIT B

 

The current tax bill will be provided.Exhibit

Exhibit 10.1

SYNCHRONY FINANCIAL
AMENDED AND RESTATED 2014 LONG-TERM INCENTIVE PLAN
SECTION 1.PURPOSE
The purposes of this Amended and Restated Synchrony Financial 2014 Long-Term Incentive Plan (the “Plan”) are to encourage selected officers, employees, non-employee directors and consultants of Synchrony Financial (together with any successor thereto, the “Company”) and its Affiliates (as defined below) to acquire a proprietary interest in the growth and performance of the Company, to generate an increased incentive to contribute to the Company’s future success and prosperity, thus enhancing the value of the Company for the benefit of its shareowners, and to enhance the ability of the Company and its Affiliates to attract and retain exceptionally qualified individuals upon whom, in large measure, the sustained progress, growth and profitability of the Company depend.
SECTION 2.    DEFINITIONS
As used in the Plan, the following terms shall have the meanings set forth below: 
		
	(a)
	“Affiliate” shall mean (i) any entity that, directly or through one or more intermediaries, is controlled by the Company and (ii) any entity in which the Company has a significant equity interest, as determined by the Committee.

		
	(b)
	“Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Award, Dividend Equivalent, or Other Stock-Based Award granted under the Plan.

		
	(c)
	“Award Agreement” shall mean any written agreement, contract, or other instrument or document, including an electronic communication, as may from time to time be designated by the Company as evidencing any Award granted under the Plan.

		
	(d)
	“Board” shall mean the Board of Directors of the Company. 

		
	(e)
	“Change in Control” shall mean any of the following events which occurs after the date of grant of an Award, but only if such event constitutes a “change in control event” for purposes of Treasury Regulation Section 1.409A-3(i)(5):

		
	(i)
	the acquisition by any Person, including any “person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (i) the then outstanding shares of common stock of the Company (the “Outstanding Common Stock”) or (ii) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Voting Securities”); excluding, however, the following: (A) any acquisition directly from the Company (excluding any acquisition resulting from the exercise of an 

    

exercise, conversion or exchange privilege unless the security being so exercised, converted or exchanged was acquired directly from the Company), (B) any acquisition by the Company, (C) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (D) any acquisition by any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of subsection (iii) of this definition below; provided further, that for purposes of clause (B) of this subsection (i), if any Person (other than the Company or any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company) shall become the beneficial owner of 30% or more of the Outstanding Common Stock or 30% or more of the Outstanding Voting Securities by reason of an acquisition by the Company, and such Person shall, after such acquisition by the Company, become the beneficial owner of any additional shares of the Outstanding Common Stock or any additional Outstanding Voting Securities and such beneficial ownership is publicly announced, such additional beneficial ownership shall constitute a Change in Control;
		
	(ii)
	the cessation of individuals who, as of the date of grant of the Award, constitute the Board (the “Incumbent Board”) to constitute at least a majority of such Board; provided that any individual who becomes a director of the Company subsequent to the date of grant of the Award whose election, or nomination for election by the Company’s stockholders, was approved by the vote of at least a majority of the directors then comprising the Incumbent Board shall be deemed a member of the Incumbent Board; and provided further, that any individual who was initially elected as a director of the Company as a result of an actual or threatened solicitation by a Person other than the Board for the purpose of opposing a solicitation by any other Person with respect to the election or removal of directors, or any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board shall not be deemed a member of the Incumbent Board; or

		
	(iii)
	the consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Corporate Transaction”); excluding, however, a Corporate Transaction pursuant to which (A) all or substantially all of the individuals or entities who are the beneficial owners, respectively, of the Outstanding Common Stock and the Outstanding Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 50% of, respectively, the outstanding shares of common stock, and the combined voting power of the outstanding securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns, directly or indirectly, 

    

the Company or all or substantially all of the Company’s assets) in substantially the same proportions relative to each other as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Common Stock and the Outstanding Voting Securities, as the case may be, (B) no Person (other than:  the Company; any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; the corporation resulting from such Corporate Transaction; and any Person which beneficially owned, immediately prior to such Corporate Transaction, directly or indirectly, 30% or more of the Outstanding Common Stock or the Outstanding Voting Securities, as the case may be) will beneficially own, directly or indirectly, 30% or more of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the outstanding securities of such corporation entitled to vote generally in the election of directors, and (C) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction. 
		
	(f)
	“Code” shall mean the Internal Revenue Code of 1986, as amended.

		
	(g)
	“Committee” shall mean a committee of the Board, acting in accordance with the provisions of Section 3, designated by the Board to administer the Plan and composed of not less than two non-employee directors. 

		
	(h)
	“Dividend Equivalent” shall mean any right granted under Section 7(e) of the Plan.

		
	(i)
	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

		
	(j)
	“Fair Market Value” shall mean, with respect to any Shares or other securities, the closing price of a Share on the date as of which the determination is being made as reported on the principal national stock exchange on which the Shares are then traded or, if there shall be no reported transactions for such date, on the next preceding date for which transactions were reported; provided, however, that if the Shares are not listed on a national stock exchange or if the closing price of a Share for any date cannot be so determined, Fair Market Value shall be determined by the Committee by whatever means or method as the Committee, in the good faith exercise of its discretion, shall at such time deem appropriate and, to the extent applicable, in compliance with Section 409A of the Code; provided, further, in the case of grants made in connection with the Initial Public Offering, Fair Market Value shall mean the price per Share at which the Shares are initially offered for sale to the public by the Company’s underwriters in the Initial Public Offering. 

		
	(k)
	“Incentive Stock Option” shall mean an option granted under Section 7(a) of the Plan that is intended to meet the requirements of Sections 422 of the Code, or any successor provision thereto.

    

		
	(l)
	“Initial Public Offering” shall mean the initial public offering of the Company registered on Form S-1 (or any successor form under the Securities Act of 1933, as amended).

		
	(m)
	“Non-Employee Director” shall mean any director of the Company who is not an officer or employee of the Company or any Affiliate.

		
	(n)
	“Non-Qualified Stock Option” shall mean an option granted under Section 7(a) of the Plan that is not intended to be an Incentive Stock Option.

		
	(o)
	“Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

		
	(p)
	“Other Stock-Based Award” shall mean any right granted under Section 7(f) of the Plan.

		
	(q)
	“Participant” shall mean an officer, employee or consultant of the Company or any of its Affiliates or a Non-Employee Director, in each case, as designated to be granted an Award under the Plan.

		
	(r)
	“Performance Award” shall mean any right granted under Section 7(d) of the Plan. 

		
	(s)
	“Performance Criteria” shall mean any quantitative and/or qualitative measures, as determined by the Committee, which may be used to measure the level of performance of the Company or any individual Participant during a Performance Period, including any Qualifying Performance Criteria.

		
	(t)
	“Performance Period” shall mean any period as determined by the Committee in its sole discretion.

		
	(u)
	“Person” shall mean any individual, corporation, partnership, association, joint-stock company, trust, unincorporated organization, or government or political subdivision thereof.

		
	(v)
	“Qualifying Performance Criteria” shall mean, to the extent necessary to qualify an Award as “performance-based compensation” under Section 162(m) of the Code, one or more of the following performance criteria, either individually, alternatively or in any combination, applied to either the company as a whole or to a business unit or related company, and measured on an absolute basis or relative to a pre-established target, to a previous year’s results or to a designated comparison group, in each case as specified by the Committee in the Award:  purchase volume; loan receivables; Tier 1 common ratio; liquidity as a percentage of total assets; liquidity coverage ratio; tangible common equity to tangible assets ratio; platform revenue; net earnings; earnings per share; diluted earnings per share; return on average assets; return on capital or invested capital; return on equity; cash flow; gross or operating profit and margin rate; net interest margin; other expense efficiency; active accounts; new accounts; the attainment by a Share of a specified Fair Market Value for a specified 

    

period of time; increase in stockholder value; return on investments; total stockholder return; earnings or income of the Company before or after taxes and/or interest; earnings before interest, taxes, depreciation and amortization (“EBITDA”); EBITDA margin; operating income; operating expenses, attainment of expense levels or cost reduction goals; net charge-offs and net charge-off percent; delinquency rates; won, lost and extended deals; market share; interest expense; economic value created; net cash provided by operations; price-to-earnings growth; and strategic business criteria, consisting of one or more objectives based on meeting specified goals relating to compliance, market penetration, customer acquisition, business expansion, cost targets, customer satisfaction, reductions in errors and omissions, reductions in lost business, management of employment practices and employee benefits, supervision of litigation and information technology, quality and quality audit scores, efficiency, and acquisitions or divestitures, or any combination of the foregoing. The applicable performance measures may be applied on a pre- or post-tax basis and may be adjusted in accordance with Section 162(m) of the Code to include or exclude objectively determinable components of any performance measure, including, without limitation, charges for restructurings, discontinued operations, extraordinary items and all items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence, related to the disposal of a segment or a business, or related to a change in accounting principle or otherwise.  With respect to Participants who are not “covered employees” within the meaning of Section 162(m) of the Code and who, in the Committee’s judgment, are not likely to be covered employees at any time during the applicable Performance Period or during any period in which an award may be paid following a Performance Period, the Performance Criteria may consist of any objective or subjective corporate-wide or subsidiary, division, operating unit or individual measures, whether or not listed herein.  If the Committee determines that it is advisable to grant Awards that are not intended to qualify as performance-based compensation under Section 162(m) of the Code, the Committee may grant such awards without satisfying the requirements of Section 162(m) of the Code and that use Performance Criteria other than those specified herein.
		
	(w)
	 “Restricted Securities” shall mean Awards of Restricted Stock or other Awards under which issued and outstanding Shares are held subject to certain restrictions.

		
	(x)
	“Restricted Stock” shall mean any award of Shares granted under Section 7(c) of the Plan.

		
	(y)
	“Restricted Stock Unit” shall mean any right granted under Section 7(c) of the Plan that is denominated in Shares.

		
	(z)
	“Shares” shall mean the common shares of the Company, $0.01 par value, and such other securities as may become the subject of Awards, or become subject to Awards, pursuant to an adjustment made under Section 4(b) of the Plan.

    

		
	(aa)
	“Stock Appreciation Right” shall mean any right granted under Section 7(b) of the Plan.

SECTION 3.    ADMINISTRATION
Except as otherwise provided herein, the Plan shall be administered by the Committee, which shall have the power to interpret the Plan and to adopt such rules and guidelines for implementing the terms of the Plan as it may deem appropriate.  The Committee shall have the ability to modify the Plan provisions, to the extent necessary, or delegate such authority, to accommodate any changes in law and regulations in jurisdictions in which Participants will receive Awards.
		
	(a)
	Subject to the terms of the Plan and applicable law, the Committee shall have full power and authority to:

		
	(i)
	designate Participants;

		
	(ii)
	determine the type or types of Awards to be granted to each Participant under the Plan;

		
	(iii)
	determine the number of Shares to be covered by (or with respect to which payments, rights, or other matters are to be calculated in connection with) Awards;

		
	(iv)
	determine the terms and conditions of any Award, including any restrictive covenants, clawback or recoupment provisions or requirements that a Participant execute a waiver and release;

		
	(v)
	determine whether, to what extent, and under what circumstances Awards may be settled or exercised in cash, Shares, other securities, or other Awards, or canceled, forfeited, or suspended, and the method or methods by which Awards may be settled, exercised, canceled, forfeited, or suspended;

		
	(vi)
	determine whether, to what extent, and under what circumstances cash, Shares, other securities, other Awards, and other amounts payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or of the Committee;

		
	(vii)
	interpret and administer the Plan and any instrument or agreement relating to, or Award made under, the Plan;

		
	(viii)
	establish, amend, suspend, or waive such rules and guidelines;

		
	(ix)
	appoint such agents as it shall deem appropriate for the proper administration of the Plan;

    

		
	(x)
	make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan; and

		
	(xi)
	correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry the Plan into effect.

		
	(b)
	Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time, and shall be final, conclusive, and binding upon all Persons, including the Company, any Affiliate, any Participant, any holder or beneficiary of any Award, any shareowner, and any employee of the Company or of any Affiliate.  To the  extent permitted  by Section 162(m) of the Code and Section 16 of the Exchange Act, actions of the Committee may be taken by:

		
	(i)
	the Chairman of the Committee;

		
	(ii)
	a subcommittee, designated by the Committee;

		
	(iii)
	the Committee but with one or more members abstaining or recusing himself or herself from acting on the matter, so long as two or more members remain to act on the matter.  Such action, authorized by such a subcommittee or by the Committee upon the abstention or recusal of such members, shall be the action of the Committee for purposes of the Plan; or

		
	(iv)
	one or more officers or managers of the Company or any Affiliate, or a committee of such officers or managers whose authority is subject to such terms and limitations set forth by the Committee, and only with respect to employees who are not officers or Non-Employee Directors of the Company for purposes of Section 16 of the Exchange Act.  This delegation shall include modifications necessary to accommodate changes in the laws or regulations of jurisdictions outside the U.S.

SECTION 4.    SHARES AVAILABLE FOR AWARDS 
		
	(a)
	SHARES AVAILABLE.  Subject to adjustment as provided in Section 4(b):

		
	(i)
	The total number of Shares reserved and available for delivery pursuant to Awards granted under the Plan shall be 62,605,417.  If any Shares covered by an Award granted under the Plan, or to which such an Award relates, are forfeited, or if an Award otherwise terminates without the delivery of Shares or of other consideration, or if an Award is settled in cash, then the Shares covered by such Award, or to which such Award relates, or the number of Shares otherwise counted against the aggregate number of Shares available under the Plan with respect to such Award, to the extent of any such forfeiture, 

    

termination or cash settlement, shall again be available for granting Awards under the Plan.  The full number of Shares available for delivery under the Plan may be delivered pursuant to Incentive Stock Options, except that in calculating the number of Shares that remain available for Awards of Incentive Stock Options, the rules set forth in this Section shall not apply to the extent not permitted by Section 422 of the Code.  
		
	(ii)
	ACCOUNTING FOR AWARDS.  For purposes of this Section 4,

		
	(A)
	If an Award (other than a Dividend Equivalent) is denominated in Shares, the number of Shares covered by such Award, or to which such Award relates, shall be counted on the date of grant of such Award against the aggregate number of Shares available for granting Awards under the Plan; provided, however that if an Award is settled or paid by the Company in whole or in part through the delivery of consideration other than Shares, or by delivery of fewer than the full number of Shares that was counted against the Shares available for delivery as provided above, there shall be added back to the number of Shares available for delivery pursuant to Awards the excess of the number of Shares that had been so counted over the number of Shares (if any) actually delivered upon payment or settlement of the Award (including with respect to Awards that are outstanding as of the effective date of the amendment and restatement of the Plan).

		
	(B)
	If an Award is not denominated in Shares, the number of Shares available for delivery shall be reduced by the number of Shares actually delivered upon payment or settlement of the Award.

		
	(C)
	Dividend Equivalents denominated in Shares and Awards not denominated, but potentially payable, in Shares shall be counted against the aggregate number of Shares available for granting Awards under the Plan in such amount and at such time as the Dividend Equivalents and such Awards are settled in Shares; provided, however, that Awards that operate in tandem with (whether granted simultaneously with or at a different time from), or that are substituted for, other Awards may only be counted once against the aggregate number of Shares available, and the Committee shall adopt procedures, as it deems appropriate, in order to avoid double counting.  Any Shares that are delivered by the Company, and any Awards that are granted by, or become obligations of, the Company through the assumption by the Company or an Affiliate of, or in substitution for, outstanding awards previously granted by an acquired company, shall not be counted against the Shares available for granting Awards under this Plan.

    

		
	(D)
	Notwithstanding anything herein to the contrary, any Shares related to Awards which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of Shares, or are exchanged with the Committee’s permission, prior to the issuance of Shares, for Awards not involving Shares, shall be available again for grant under this Plan.  Shares subject to an Award under the Plan may not again be made available for issuance under the Plan if such Shares are: (x) Shares that were subject to an Option or a stock-settled Stock Appreciation Right and were not issued upon the net settlement or net exercise of such Option or Stock Appreciation Right, (y) Shares delivered to or withheld by the Company to pay the exercise price or the withholding taxes under Options or Stock Appreciation Rights, or (z) Shares repurchased on the open market with the proceeds of an Option exercise.  Shares delivered to or withheld by the Company to pay the withholding taxes for Awards other than Options and Stock Appreciation Rights shall again be available for issuance under this Plan.

		
	(iii)
	SOURCES OF SHARES DELIVERABLE UNDER AWARDS.  Any Shares delivered pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares or of treasury Shares.

		
	(b)
	ADJUSTMENTS.

		
	(i)
	In the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Shares, or other securities), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, or other similar corporate transaction or event constitutes an equity restructuring transaction, as that term is defined in the Accounting Standards Codification 718 (or any successor accounting standard) or otherwise affects the Shares, then the Committee shall adjust the following in a manner that is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan:

		
	(A)
	the number and type of Shares or other securities which thereafter may be made the subject of Awards;

		
	(B)
	the number and type of Shares or other securities subject to outstanding Awards;

		
	(C)
	the number and type of Shares or other securities specified as the annual per-participant limitation under Section 7(g)(vi) and (vii);

    

		
	(D)
	the grant, purchase, or exercise price with respect to any Award, or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award; and

		
	(E)
	other value determinations applicable to outstanding awards. 

Provided, however, in each case, that with respect to Awards of Incentive Stock Options no such adjustment shall be authorized to the extent that such authority would cause the Plan to violate Sections 422(b)(1) of the Code or any successor provision thereto and, with respect to Awards of Stock Appreciation Rights and Options, such adjustment shall be in accordance with Section 409A of the Code; and provided further, however, that the number of Shares subject to any Award denominated in Shares shall always be a whole number.
		
	(ii)
	ADJUSTMENTS OF AWARDS UPON CERTAIN ACQUISITIONS.  In the event the Company or any Affiliate shall assume outstanding employee awards or the right or obligation to make future such awards in connection with the acquisition of another business or another corporation or business entity, the Committee may make such adjustments, not inconsistent with the terms of the Plan, in the terms of Awards as it shall deem appropriate in order to achieve reasonable comparability or other equitable relationship between the assumed awards and the Awards granted under the Plan as so adjusted.

		
	(iii)
	ADJUSTMENTS OF AWARDS UPON THE OCCURRENCE OF CERTAIN UNUSUAL OR NONRECURRING EVENTS.  The Committee shall be authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits to be made available under the Plan.

SECTION 5.    VESTING CONDITIONS
		
	(a)
	MINIMUM VESTING REQUIREMENT.  No Option, Stock Appreciation Right, Restricted Stock or Restricted Stock Unit granted under the Plan after the date hereof shall become exercisable or vested prior to the one-year anniversary of the date of grant. Notwithstanding the foregoing, this Section 5(a) shall not restrict the right of the Committee to provide in an Award Agreement for the vesting or exercisability of an Award upon or after a Change in Control or termination of employment, including due to death or disability, in each case as specified in the Award Agreement.

		
	(b)
	NO DISCRETION TO ACCELERATE VESTING.  Notwithstanding Section 3, other than in connection with a Change in Control or the death or disability of a Participant, the Committee shall not have the discretion to accelerate the vesting or exercisability of any outstanding Award.

    

SECTION 6.    ELIGIBILITY
Any officer, employee or consultant of the Company or of any Affiliate and any Non-Employee Director shall be eligible to be designated a Participant.
SECTION 7.    AWARDS
		
	(a)
	OPTIONS.  The Committee is hereby authorized to grant Options to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine:

		
	(i)
	EXERCISE PRICE.  The purchase price per Share purchasable under an Option shall be determined by the Committee; provided, however, and except as provided in Section 4(b), that such purchase price shall not be less than 100% of the Fair Market Value of a Share on the date of grant of such Option. 

		
	(ii)
	OPTION TERM.  The term of each Option shall not exceed ten (10) years from the date of grant.

		
	(iii)
	TIME AND METHOD OF EXERCISE.  The Committee shall establish in the applicable Award Agreement the time or times at which an Option may be exercised in whole or in part, and the method or methods by which, and the form or forms, including, without limitation, cash, Shares, or other Awards, or any combination thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price, in which, payment of the exercise price with respect thereto may be made or deemed to have been made.

		
	(iv)
	INCENTIVE STOCK OPTIONS.  The terms of any Incentive Stock Option granted under the Plan shall be designed to comply in all respects with the provisions of Sections 422 of the Code, or any successor provision thereto, and any regulations promulgated thereunder.  Notwithstanding anything in this Section 7(a) to the contrary, Options designated as Incentive Stock Options shall not be eligible for treatment under the Code as Incentive Stock Options (and will be deemed to be Non-Qualified Stock Options) to the extent that either (A) the aggregate Fair Market Value of Shares (determined as of the time of grant) with respect to which such Options are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any subsidiary) exceeds $100,000, taking Options into account in the order in which they were granted, or (B) such Options otherwise remain exercisable but are not exercised within three (3) months of termination of employment (or such other period of time provided in Section 422 of the Code).

    

		
	(b)
	STOCK APPRECIATION RIGHTS.  The Committee is hereby authorized to grant Stock Appreciation Rights to Participants.  Subject to the terms of the Plan and any applicable Award Agreement, a Stock Appreciation Right granted under the Plan shall confer on the holder thereof a right to receive, upon exercise thereof, the excess of (i) the Fair Market Value of one Share on the date of exercise over (ii) the grant price of the right as specified by the Committee.

		
	(i)
	GRANT PRICE.  Shall be determined by the Committee, provided, however, and except as provided in Section 4(b), that such price shall not be less than 100% of the Fair Market Value of one Share on the date of grant of the Stock Appreciation Right, except that if a Stock Appreciation Right is at any time granted in tandem to an Option, the grant price of the Stock Appreciation Right shall not be less than the exercise price of such Option.

		
	(ii)
	TERM.  The term of each Stock Appreciation Right shall not exceed ten (10) years from the date of grant.

		
	(iii)
	TIME AND METHOD OF EXERCISE.  The Committee shall establish in the applicable Award Agreement the time or times at which a Stock Appreciation Right may be exercised in whole or in part.

		
	(c)
	RESTRICTED STOCK AND RESTRICTED STOCK UNITS.

		
	(i)
	ISSUANCE.  The Committee is hereby authorized to grant Awards of Restricted Stock and Restricted Stock Units to Participants. Subject to the terms of the Plan or the applicable Award Agreement, a Restricted Stock Unit may be payable in Shares or cash. 

		
	(ii)
	RESTRICTIONS.  Shares of Restricted Stock and Restricted Stock Units shall be subject to such restrictions as the Committee may establish in the applicable Award Agreement (including, without limitation, any limitation on the right to vote a Share of Restricted Stock or the right to receive any dividend or other right), which restrictions may lapse separately or in combination at such time or times, in such installments or otherwise, as the Committee may deem appropriate; provided, however, that any dividend shall be subject to the same restrictions as the underlying Award.  Unrestricted Shares, evidenced in such manner as the Committee shall deem appropriate, shall be delivered to the holder of Restricted Stock promptly after such restrictions have lapsed.

		
	(iii)
	REGISTRATION.  Any Restricted Stock or Restricted Stock Units granted under the Plan may be evidenced in such manner as the Committee may deem appropriate, including, without limitation, book-entry registration or issuance of a stock certificate or certificates.  In the event any stock certificate is issued in respect of Shares of Restricted Stock granted under the Plan, such certificate shall be registered in the name of the Participant and shall bear an 

    

appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock.
		
	(iv)
	FORFEITURE.  Upon termination of employment during the applicable restriction period, except as determined otherwise by the Committee, all Shares of Restricted Stock and all Restricted Stock Units still, in either case, subject to restriction shall be forfeited and reacquired by the Company.

		
	(d)
	PERFORMANCE AWARDS.  The Committee is hereby authorized to grant Performance Awards to Participants.  Performance Awards include arrangements under which the grant, issuance, retention, vesting and/or transferability of any Award is subject to such Performance Criteria and such additional conditions or terms as the Committee may designate.  Subject to the terms of the Plan and any applicable Award Agreement, a Performance Award granted under the Plan:

		
	(i)
	may be denominated or payable in cash, Shares (including, without limitation, Restricted Stock), other securities, or other Awards; and

		
	(ii)
	shall confer on the holder thereof rights valued as determined by the Committee and payable to, or exercisable by, the holder of the Performance Award, in whole or in part, upon the achievement of such Performance Criteria during such Performance Periods as the Committee shall establish.

		
	(e)
	DIVIDEND EQUIVALENTS AND DIVIDENDS.  The Committee is hereby authorized to grant to Participants Awards under which the holders thereof shall be entitled to receive payments equivalent to dividends or interest with respect to a number of Shares determined by the Committee, and the Committee may provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested.  Subject to the terms of the Plan and any applicable Award Agreement, such Awards may have such terms and conditions as the Committee shall determine; provided, however, any Dividend Equivalents and dividends with respect to Awards shall be subject to the same restrictions as the underlying Awards. 

		
	(f)
	OTHER STOCK-BASED AWARDS.  The Committee is hereby authorized to grant to Participants such other Awards that are denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares (including, without limitation, securities convertible into Shares), as are deemed by the Committee to be consistent with the purposes of the Plan, provided, however, that such grants must comply with applicable law.  Subject to the terms of the Plan and any applicable Award Agreement, the Committee shall determine the terms and conditions of such Awards.  Shares or other securities delivered pursuant to a purchase right granted under this Section 7(f) shall be purchased for such consideration, which may be paid by such method or methods and in such form or forms, including, without limitation, cash, Shares, other securities, or other Awards, or any combination thereof, as the Committee shall determine, the value of which consideration, as 

    

established by the Committee, and except as provided in Section 4(b), shall not be less than the Fair Market Value of such Shares or other securities as of the date such purchase right is granted.
		
	(g)
	GENERAL.

		
	(i)
	NO CASH CONSIDERATION FOR AWARDS.  Awards shall be granted for no cash consideration or for such minimal cash consideration as may be required by applicable law.

		
	(ii)
	AWARDS MAY BE GRANTED SEPARATELY OR TOGETHER.  Awards may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution for any other Award or any award granted under any other plan of the Company or any Affiliate.  Awards granted in addition to or in tandem with other Awards, or in addition to or in tandem with awards granted under any other plan of the Company or any Affiliate, may be granted either at the same time as or at a different time from the grant of such other Awards or awards.  

		
	(iii)
	FORMS OF PAYMENT UNDER AWARDS.  Subject to the terms of the Plan and of any applicable Award Agreement, payments or transfers to be made by the Company or an Affiliate upon the grant, exercise, or payment of an Award may be made in such form or forms as the Committee shall determine, including, without limitation, cash, Shares, rights in or to Shares issuable under the Award or other Awards, other securities, or other Awards, or any combination thereof, and may be made in a single payment or transfer, in installments, or on a deferred basis, in each case in accordance with rules and procedures established by the Committee.  Such rules and procedures may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of Dividend Equivalents in respect of installment or deferred payments.

		
	(iv)
	LIMITS ON TRANSFER OF AWARDS.  Except as provided by the Committee, no Award and no right under any such Award, shall be assignable, alienable, saleable, or transferable by a Participant otherwise than by will or by the laws of descent and distribution; provided, however, that, if so determined by the Committee, a Participant may, in the manner established by the Committee, designate a beneficiary or beneficiaries to exercise the rights of the Participant with respect to any Award upon the death of the Participant.  Each Award, and each right under any Award, shall be exercisable, during the Participant’s lifetime, only by the Participant or, if permissible under applicable law, by the Participant’s guardian or legal representative.  No Award and no right under any such Award, may be pledged, alienated, attached, or otherwise encumbered, and any purported 

    

pledge, alienation, attachment, or encumbrance thereof shall be void and unenforceable against the Company or any Affiliate.
		
	(v)
	RESTRICTION ON BUYOUTS OF OPTIONS AND STOCK APPRECIATION RIGHTS. The Committee shall not without the approval of the shareholders of the Company cancel any previously granted Option or Stock Appreciation Right in exchange for cash or another award if the exercise price of such Option or the grant price of such Stock Appreciation Right exceeds the Fair Market Value of a Share on the date of such cancellation, in each case other than in connection with a Change in Control or the adjustment provisions set forth in Section 4(b).

		
	(vi)
	PER-PERSON LIMITATION ON OPTIONS AND STOCK APPRECIATION RIGHTS.  The number of Shares with respect to which Options and Stock Appreciation Rights may be granted under the Plan during any fiscal year to an individual Participant shall not exceed 3,000,000 Shares, subject to adjustment as provided in Section 4(b).  

		
	(vii)
	PER-PERSON LIMITATION ON CERTAIN AWARDS.  Other than Options and Stock Appreciation Rights, (A) the aggregate number of Shares with respect to which Restricted Stock, Restricted Stock Units, Performance Awards and Other Stock-Based Awards may be granted under the Plan during any fiscal year to an individual Participant shall not exceed 1,000,000 Shares, subject to adjustment as provided in Section 4(b) and (B) with respect to Awards denominated in cash, the maximum amount that may be earned during any fiscal year by an individual Participant shall not exceed $20,000,000.  The aggregate grant date fair value of the Awards that may be granted to any Non-Employee Director in any fiscal year shall not exceed $500,000. 

		
	(viii)
	CONDITIONS AND RESTRICTIONS UPON SECURITIES SUBJECT TO AWARDS.  The Committee may provide that the Shares issued upon exercise of an Option or Stock Appreciation Right or otherwise subject to or issued under an Award shall be subject to such further agreements, restrictions, conditions or limitations as the Committee in its discretion may specify prior to the exercise of such Option or Stock Appreciation Right or the grant, vesting or settlement of such Award, including without limitation, conditions on vesting or transferability and forfeiture or repurchase provisions or provisions on payment of taxes arising in connection with an Award.  Without limiting the foregoing, such restrictions may address the timing and manner of any re-sales by the Participant or other subsequent transfers by the Participant of any Shares issued under an Award, including without limitation: (A) restrictions under an insider trading policy or pursuant to applicable law, (B) restrictions designed to delay and/or coordinate the timing and manner of sales by Participant and holders of other Company equity 

    

compensation arrangements, (C) restrictions as to the use of a specified brokerage firm for such re-sales or other transfers and (D) provisions requiring Shares to be sold on the open market or to the Company in order to satisfy tax withholding or other obligations.
		
	(ix)
	SHARE CERTIFICATES.  All Shares or other securities delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares or other securities are then listed, and any applicable Federal, state, or local securities laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

SECTION 8.    AMENDMENT AND TERMINATION
Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award Agreement or in the Plan:
		
	(a)
	AMENDMENTS TO THE PLAN.  The Board may amend, alter, suspend, discontinue, or terminate the Plan, in whole or in part; provided, however, that without the prior approval of the Company’s shareowners, no material amendment shall be made if shareowner approval is required by law, regulation, or stock exchange on which the Company is listed, and; provided, further, that, notwithstanding any other provision of the Plan or any Award Agreement, no such amendment, alteration, suspension, discontinuation, or termination shall be made without the approval of the shareowners of the Company that would:

		
	(i)
	increase the total number of Shares available for Awards under the Plan, except as provided in Section 4 hereof; or

		
	(ii)
	except as provided in Section 4(b), permit Options, Stock Appreciation Rights, or other Stock-Based Awards encompassing rights to purchase Shares to be re-priced, replaced, or re-granted through cancellation, or by lowering the exercise price of a previously granted Option or the grant price of a previously granted Stock Appreciation Right, or the purchase price of a previously granted Other Stock-Based Award.

		
	(b)
	AMENDMENTS TO AWARDS.  The Committee may waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue, or terminate, any Awards theretofore granted, prospectively or retroactively.  No such amendment or alteration shall be made which would impair the rights of any Participant, without such Participant’s consent, under any Award theretofore granted, provided that no such consent shall be required with respect to any amendment or alteration if the Committee determines in its sole discretion that such amendment or alteration either 

    

(i) is required or advisable in order for the Company, the Plan or the Award to satisfy or conform to any law or regulation or to meet the requirements of any accounting standard, or (ii) is not reasonably likely to significantly diminish the benefits provided under such Award.
SECTION 9.    GENERAL PROVISIONS
		
	(a)
	NO RIGHTS TO AWARDS.  No Participant or other Person shall have any claim to be granted any Award under the Plan, or, having been selected to receive an Award under this Plan, to be selected to receive a future Award, and further there is no obligation for uniformity of treatment of employees or consultants of the Company or any Affiliates, Non-Employee Directors, Participants, or holders or beneficiaries of Awards under the Plan.  The terms and conditions of Awards need not be the same with respect to each recipient.

		
	(b)
	WITHHOLDING.  The Company or any Affiliate shall be authorized to withhold from any Award granted or any payment due or transfer made under any Award or under the Plan the amount (in cash, Shares, other securities, or other Awards) of withholding taxes due in respect of an Award, its exercise, or any payment or transfer under such Award or under the Plan and to take such other action as may be necessary in the opinion of the Company or Affiliate to satisfy statutory withholding obligations for the payment of such taxes.

		
	(c)
	NO LIMIT ON OTHER COMPENSATION ARRANGEMENTS.  Nothing contained in the Plan shall prevent the Company or any Affiliate from adopting or continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases.

		
	(d)
	NO RIGHT TO EMPLOYMENT.  The grant of an Award shall not constitute an employment contract nor be construed as giving a Participant the right to be retained in the employ of the Company or any Affiliate.  Further, the Company or an Affiliate may at any time dismiss a Participant from employment, free from any liability, or any claim under the Plan, unless otherwise expressly provided in the Plan or in any Award Agreement.

		
	(e)
	GOVERNING LAW.  The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Delaware and applicable Federal law without regard to conflict of law.

		
	(f)
	SEVERABILITY.  If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction, or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of the 

    

Plan or the Award, such provision shall be stricken as to such jurisdiction, Person, or Award, and the remainder of the Plan and any such Award shall remain in full force and effect.
		
	(g)
	NO TRUST OR FUND CREATED.  Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other Person.  To the extent that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company or any Affiliate.

		
	(h)
	NO FRACTIONAL SHARES.  No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash, or other securities shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled, terminated, or otherwise eliminated.

		
	(i)
	HEADINGS.  Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof.

		
	(j)
	INDEMNIFICATION.  Subject to requirements of Delaware State law, each individual who is or shall have been a member of the Board, or a Committee appointed by the Board, or an officer of the Company to whom authority was delegated in accordance with Section 3, shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under this Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his/her own behalf, unless such loss, cost, liability, or expense is a result of his/her own willful misconduct or except as expressly provided by statute.  The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such individuals may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

		
	(k)
	COMPLIANCE WITH SECTION 409A OF THE CODE.  Except to the extent specifically provided otherwise by the Committee, Awards under the Plan are intended to satisfy the requirements of Section 409A of the Code (and the Treasury Department guidance and regulations issued thereunder) so as to avoid the imposition 

    

of any additional taxes or penalties under Section 409A of the Code.  If the Committee determines that an Award, Award Agreement, payment, distribution, deferral election, transaction or any other action or arrangement contemplated by the provisions of the Plan or any Award Agreement would, if undertaken, cause a Participant to become subject to any additional taxes or other penalties under Section 409A of the Code, then unless the Committee specifically provides otherwise, such Award, Award Agreement, payment, distribution, deferral election, transaction or other action or arrangement shall not be given effect to the extent it causes such result and the related provisions of the Plan and/or Award Agreement will be deemed modified, or, if necessary, suspended in order to comply with the requirements of Section 409A of the Code to the extent determined appropriate by the Committee, in each case without the consent of or notice to the Participant.
		
	(l)
	NO REPRESENTATIONS OR COVENANTS WITH RESPECT TO TAX QUALIFICATION.  Although the Company may endeavor to (i) qualify an Award for favorable U.S. or foreign tax treatment (e.g., incentive stock options under Section 422 of the Code) or (ii) avoid adverse tax treatment (e.g., under Section 409A of the Code), the Company makes no representation to that effect and expressly disavows any covenant to maintain favorable or avoid unfavorable tax treatment.  The Company shall be unconstrained in its corporate activities without regard to the potential negative tax impact on holders of Awards under the Plan.

		
	(m)
	AWARDS TO NON-U.S. EMPLOYEES.  The Committee shall have the power and authority to determine which Affiliates shall be covered by this Plan and which employees outside the U.S. shall be eligible to participate in the Plan.  The Committee may adopt, amend or rescind rules, procedures or sub-plans relating to the operation and administration of the Plan to accommodate the specific requirements of local laws, procedures, and practices.  Without limiting the generality of the foregoing, the Committee is specifically authorized to adopt rules, procedures and sub-plans with provisions that limit or modify rights on death, disability or retirement or on termination of employment; available methods of exercise or settlement of an award; payment of income, social insurance contributions and payroll taxes; the withholding procedures and handling of any stock certificates or other indicia of ownership which vary with local requirements.  The Committee may also adopt rules, procedures or sub-plans applicable to particular Affiliates or locations.

		
	(n)
	COMPLIANCE WITH LAWS.  The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or stock exchanges on which the Company is listed as may be required.  The Company shall have no obligation to issue or deliver evidence of title for Shares issued under the Plan prior to:

		
	(i)
	obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and

    

		
	(ii)
	completion of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any governmental body that the Company determines to be necessary or advisable or at a time when any such registration or qualification is not current, has been suspended or otherwise has ceased to be effective.

The inability or impracticability of the Company to obtain or maintain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.
		
	(o)
	AWARDS SUBJECT TO CLAWBACK. The Awards granted under this Plan and any cash payment, Shares or other securities delivered pursuant to an Award are subject to forfeiture, recovery by the Company or other action pursuant to the applicable Award Agreement or any clawback or recoupment policy which the Company may adopt from time to time, including without limitation any such policy which the Company may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law. 

SECTION 10.    EFFECTIVE DATE; STOCKHOLDER APPROVAL
The Plan was previously amended and restated, and was approved by the stockholders of the Company at the Company’s 2017 annual meeting of stockholders on May 18, 2017.  This amendment and restatement shall become effective on July 26, 2017.
SECTION 11.    TERM OF THE PLAN
No Award shall be granted under the Plan on or after the date that is ten (10) years from the date of the adoption of the Plan.  However, unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award theretofore granted may extend beyond such date, and the authority of the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award, or to waive any conditions or rights under any such Award, and the authority of the Board to amend the Plan, shall extend beyond such date.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}]]