Document:

EX-10.1

 Exhibit 10.1 

Donnelley Financial Solutions 

Annual Incentive Plan 

(Effective March 2, 2018) 

OVERVIEW 
 The Donnelley Financial Solutions Annual
Incentive Plan (the “Annual Incentive Plan” or the “Plan”) is designed to promote the growth and profitability of Donnelley Financial Solutions, Inc. (“Donnelley Financial” or the “Company”) and its
subsidiaries with incentives to reward and enhance the retention of eligible employees. Awards are made depending on the Company’s financial performance and on how well an eligible employee performs against any applicable individual objectives
that link to and support Donnelley Financial’s corporate, strategic and financial priorities. 
 The Plan is a sub-plan of the Donnelley Financial
Solutions, Inc. 2016 Amended and Restated Performance Incentive Plan (the “2016 PIP”) and is subject to all of the terms and conditions set forth therein. 

The Compensation Committee of the Board of Directors (the “Committee”) administers the Plan. The Committee has authority to establish rules and
regulations for the Plan’s implementation and administration, including the authority to impose limitations and conditions, with respect to competitive employment or otherwise, that are not inconsistent with the Plan’s purposes. 

PARTICIPATION 
 Eligibility is limited to officers
selected by the Committee and other employees designated as eligible by position in the organization (“eligible participant” or “participant”). 

TARGET AWARD PERCENTAGE AND PERFORMANCE CRITERIA 
 Each
eligible participant’s target incentive opportunity under the Annual Incentive Plan is a percentage of such participant’s rate of base salary as of December 31 of the Plan Year (as defined below), or such other amount as determined by
the Committee. This is referred to as the “Target Award Percentage” and will be communicated to eligible participants annually. Eligible base salary does not include disability benefit payments. Unless otherwise determined by the
Committee, the “Plan Year” for any year is the calendar year. 
 Prior to or following the commencement of each Plan Year, the Target Award
Percentage applicable to each participant will be established or otherwise determined, as well as the performance goals applicable to such participants (the “Performance Criteria”). 

The Performance Criteria may be based on one or more of the “performance goals” listed in Section II.2 of the 2016 PIP and/or other performance
criteria (either separately or in combination) with regard to the participant’s individual performance or the performance of the Company (including a subsidiary, division, unit or department thereof). Further, the Committee may determine in its
discretion, either during or after the Plan Year, to adjust or disregard the Performance Criteria for changes in accounting methods, tax law changes, corporate transactions (including, without limitation, dispositions and acquisitions) and other
similar type events or circumstances, or other extraordinary events. 
 Unless otherwise determined by the Committee, any Performance Criteria relating to a
participant’s individual performance shall be determined each year in consultation with the participant and his or her manager and communicated to the participant in writing as part of the objective goal-setting process. Final determination of
achievement of any such Performance Criteria will be made in the Committee’s discretion in consultation with management. 

 AWARD DETERMINATIONS 

The Committee will determine the percentage, if any, of the participant’s Target Award Percentage to be paid out based upon the Company’s and/or the
participant’s level of attainment of the Performance Criteria, or any other criteria as determined by the Committee in its sole discretion, in each case, subject to any adjustments as described above. In addition to the Performance Criteria,
the Committee may, at any time, establish (and, once established, rescind, waive or amend) additional conditions and terms of payment of awards (including, but not limited to, the achievement of other financial, strategic or individual goals, which
may be objective or subjective) as it may deem desirable in carrying out the purposes of the Plan. The Committee will have the sole discretion to determine whether all or any portion of, or an amount greater than, a participant’s Target Award
Percentage shall be paid, and the specific amount, if any, to be paid to each participant, subject in all cases to the terms, conditions and limits of this Plan. The Committee’s determination of whether a participant has attained, in whole or
in part, the participant’s Performance Criteria for a Plan Year, shall be final and binding. 
 AWARD AMOUNT AND PAYMENT 

Awards will be paid following the Plan Year after the Committee has determined the achievement of the Performance Criteria (including any additional conditions
and terms as described above). Except as otherwise provided herein, or determined by the Committee, any award to be paid under the Plan shall be paid to participants within 2 1/2 months after the end of the Plan Year (i.e., by the following
March 15). A participant must be on the payroll of the Company as of the date of payment of the award to receive an award. Special provisions apply to retirees and in the case of a participant’s death or Disability. (Please refer to the
Changes in Employment Status section of this document for details.)  
 No participant shall have any right to payment of any amounts under the Plan
unless and until the Committee determines the amount of such participant’s award and that such award shall be paid. In addition to the authority described above to adjust Performance Criteria, the Committee also has discretionary authority to
increase or decrease the amount of any award otherwise payable if it determines that an adjustment is appropriate to better reflect the actual performance of the Company, business unit and/or the participant. Additionally, the Committee has
discretionary authority to reduce the amount of the award otherwise payable if it determines that any participant engaged in misconduct. 
 BENEFITS AND
TAX TREATMENT 
 Award payments are subject to applicable deductions, including social security taxes and federal and applicable state and local income
tax withholding. 
 The treatment of award payments as compensation for purposes of other Donnelley Financial employee benefits plans is determined by the
terms of the applicable plans. 
 CHANGES IN EMPLOYMENT STATUS 
  

	A.	PROMOTIONS, DEMOTIONS, TRANSFERS, CHANGES IN ASSIGNMENT 

 If a participant is promoted,
demoted, transferred to or between business units or from corporate during the year, any award payout normally will be calculated by prorating the payouts for each eligible position based on the Target Award Percentage and the time assigned to that
position. Notwithstanding the foregoing, the Committee shall have the authority to determine any adjustments and the amount, if any, to be paid in respect of any such award. 

  
 ~ 2 ~ 

	B.	NEW HIRE 

 Employees hired on or prior to September 30th of the Plan Year shall be eligible to participate in the Annual Incentive Plan in the year of hire for the prorata portion of the Plan Year in which they are employed if designated. Eligible
employees hired after September 30th of the Plan Year shall not be eligible to begin participation in the Plan until the following Plan Year, except as otherwise set forth in an applicable
offer letter or employment agreement and except for those who receive approval for participation from the Company’s Chief Human Resources Officer. 
  

	C.	RETIREMENT, DEATH or DISABILITY 

 A participant’s retirement*, death, or
Disability** during a Plan Year or prior to the payment date will not disqualify a participant from eligibility to receive a pro rata award based on the Committee’s determination of the Plan’s funding level, the participant’s Personal
Objective Percentage and achievement of the participant’s personal objectives, each as determined by the Committee in its discretion. 
  

	*	For purposes of the Plan, “retirement” generally means (i) retirement at age 65, or (ii) retirement at or after age 55 with 5 or more years of continuous service. 

 

	**	For purposes of the Plan, “Disability” means disability as defined as in the Company’s long-term disability policy as in effect at the time of the participant’s disability. 

ADMINISTRATION 
 In addition to the specific authority set
forth herein , the Committee has full discretionary authority to administer the Plan and make all determinations hereunder, including, but not limited to, the authority to determine the performance achievement attained under the Plan and the amount
of pay out, if any, of any award. The Committee may delegate to a subcommittee or any members or members of Donnelley Financial’s management the authority to administer the Plan and/or make any determinations under the Plan. Except as
specifically provided to the contrary, references herein to the Committee include any subcommittee, individual or individuals to whom the Committee has delegated some or all of its duties and powers. 

Donnelley Financial retains the right to amend or terminate the Plan at any time. 

Questions regarding the Plan should be directed to the Donnelley Financial Human Resources Department. 

  
 ~ 3 ~petq_Ex4_3

		

			 

		

		
			Exhibit 4.3
		

		
			PETIQ, INC.
		

		
			2018 INDUCEMENT AND RETENTION STOCK PLAN
FOR CVC EMPLOYEES
		

		
			 
		

			
	
			
				 Section 1.
			

			
	
			
			General.

		
			PetIQ, Inc., a Delaware corporation (the “Company”), hereby establishes this PetIQ, Inc. 2018 Inducement and Retention Stock Plan for CVC Employees (the “Plan”). The purpose of the Plan is to provide awards of Options as an inducement material to Employees entering into employment or continuing employment with the Company or its current or future Affiliates (including, following the consummation of the Acquisition, Community Veterinary Clinics, LLC, a California limited liability company, or a Subsidiary thereof (collectively, “CVC”)), and to promote the success and enhance the value of the Company by linking the personal interests of Participants to those of Company stockholders. The Plan is intended to comply with NASDAQ Listing Rule 5635(c)(4), which provides an exception to the NASDAQ stockholder approval requirement for the issuance of securities with regard to grants to Employees in connection with the Acquisition. To accomplish such purposes, the Plan provides that the Company may grant Options hereunder to any Employee.
		

			
	
			
				 Section 2.
			

			
	
			
			Definitions.

		
			For purposes of the Plan, the following terms shall be defined as set forth below:
		

			
	
			
				 (a)
			“Acquisition” means the transactions contemplated under the Purchase Agreement.

			
	
			
				 (b)
			“Administrator” means the Board, or, if and to the extent the Board does not administer the Plan, the Committee in accordance with ‎Section 3 of the Plan.

			
	
			
				 (c)
			“Affiliate” means a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Person specified. An entity shall be deemed an Affiliate of the Company for purposes of this definition only for such periods as the requisite ownership or control relationship is maintained.

			
	
			
				 (d)
			“Automatic Exercise Date” means, with respect to an Option, the last business day of the applicable term of the Option pursuant to ‎Section 7‎(a)a(j).  

			
	
			
				 (e)
			“Beneficial Owner” (or any variant thereof) has the meaning defined in Rule 13d-3 under the Exchange Act.

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

			
	
			
				 (g)
			“Cause” shall have the meaning assigned to such term in any Company or Affiliate employment, severance, or similar agreement or Option Agreement with the Participant or, if no such agreement exists or the agreement does not define “Cause,” Cause means (i) any conduct, action or behavior by a Participant, whether or not in connection with the Participant’s employment, including, without limitation, the commission of any felony or a lesser crime involving dishonesty, fraud, misappropriation, theft, wrongful taking of property, embezzlement, bribery, forgery, extortion or other crime of moral turpitude, that has or may reasonably be expected to have a material adverse effect on the reputation or business of the Company, its Subsidiaries and Affiliates or which results in gain or personal enrichment of the Participant to the detriment of the Company, its Subsidiaries and Affiliates; (ii) a governmental authority, including, without limitation, the Environmental Protection Agency or the Food and Drug Administration, has prohibited the Participant from working or being affiliated with the Company, its Subsidiaries and Affiliates or the business conducted thereby; (iii) the commission of any act by the Participant of gross negligence or malfeasance, or any willful violation of law, in each case, in connection with the Participant’s performance of his or her duties with the Company or a Subsidiary or Affiliate thereof; (iv) performance of the Participant’s duties in an unsatisfactory manner after a written warning and a ten (10) day opportunity to cure or failure to observe material policies generally applicable to employees after a written warning and a ten (10) day opportunity to cure; (v) breach of the Participant’s duty of loyalty to the Company Group; (vi) chronic absenteeism; (vii) substance abuse, illegal drug use or habitual insobriety; or (viii) violation of obligations of confidentiality to any third party in the course of providing services to the Company, its Subsidiaries and Affiliates.

			
	
			
				 (h)
			“Change in Capitalization” means any (i) merger, consolidation, reclassification, recapitalization, spin-off, spin-out, repurchase or other reorganization or corporate transaction or event, (ii) extraordinary dividend (whether in the form of cash, Common Stock or other property), stock split or reverse stock split, (iii) combination or exchange of shares, (iv) other change in corporate structure or (v) payment of any other distribution, which, in any such case, the Administrator determines, in its sole discretion, affects the Shares such that an adjustment pursuant to ‎Section 5 of the Plan is appropriate.

		
			

		 

 

		

			
	
			
				 (i)
			“Change in Control” shall be deemed to have occurred if an event set forth in any one of the following paragraphs shall have occurred following the Effective Date:

			
	
			
				 (i)
			any Person, other than (A) Eos Partners, L.P. and Eos Capital Partners IV, L.P., and their respective Affiliates and successors, or (B) the Company or a trustee or other fiduciary holding securities under an employee benefit plan of the Company, becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing more than thirty percent (30%) of the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (A) of paragraph (iii) below or any acquisition directly from the Company; or

			
	
			
				 (ii)
			the following individuals cease for any reason to constitute a majority of the number of Directors then serving on the Board: individuals who, during any period of two (2) consecutive years, constitute the Board and any new Director (other than a Director whose initial assumption of office is in connection with an actual or threatened election contest, including, but not limited to, a consent solicitation, relating to the election of Directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the Directors then still in office who either were Directors at the beginning of the two (2) year period or whose appointment, election or nomination for election was previously so approved or recommended; or

			
	
			
				 (iii)
			there is consummated a merger or consolidation of the Company or any Subsidiary thereof with any other corporation, other than a merger or consolidation (A) that results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the combined voting power of the voting securities of the Company (or such surviving entity or, if the Company or the entity surviving such merger is then a subsidiary, the ultimate parent thereof) outstanding immediately after such merger or consolidation, and (B) immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the Board of the entity surviving such merger or consolidation or, if the Company or the entity surviving such merger is then a subsidiary, the ultimate parent thereof; or

			
	
			
				 (iv)
			the consummation of a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than (A) a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least fifty percent (50%) of the combined voting power of the voting securities of which are owned directly or indirectly by stockholders of the Company following the completion of such transaction in substantially the same proportions as their ownership of the Company immediately prior to such sale or (B) a sale or disposition of all or substantially all of the Company’s assets immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the entity to which such assets are sold or disposed or, if such entity is a subsidiary, the ultimate parent thereof.

		
			To the extent that an Option under the Plan constitutes deferred compensation under Code Section 409A, a Change in Control (where applicable) shall be deemed to have occurred under the Plan with respect to such Option only if a change in the ownership or effective control of the Company or a change in ownership of a substantial portion of the assets of the Company shall also constitute a “change in control event” under Code Section 409A.
		

		
			Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the holders of Common Stock immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions.
		

			
	
			
				 (j)
			“Change in Control Price” shall have the meaning set forth in ‎Section 8 of the Plan.

			
	
			
				 (k)
			“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto. Any reference in the Plan to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or successor provisions to such section, regulations or guidance.

			
	
			
				 (l)
			“Committee” means the Compensation Committee of the Board, the composition of which shall consist of at least two (2) directors who are “independent directors” within the meaning of the NASDAQ marketplace rules and “non-employee directors” within the meaning of Exchange Act Rule 16b-3, or in lieu of the Compensation Committee of the Board, the Independent Directors.

			
	
			
				 (m)
			“Common Stock” means the Class A common stock, par value $0.001 per share, of the Company.

		
			

		 

 

		

			
	
			
				 (n)
			“Company” means PetIQ, Inc., a Delaware corporation (or any successor corporation, except as the term “Company” is used in the definition of “Change in Control” above).

			
	
			
				 (o)
			“Disability” shall have the meaning assigned to such term in any individual employment, severance or similar agreement or Option Agreement with the Participant or, if no such agreement exists or the agreement does not define “Disability,” Disability means, with respect to any Participant, that such Participant (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering Employees of the Company or an Affiliate thereof.

			
	
			
				 (p)
			“Director” means any individual who is a member of the Board on or after the Effective Date.

			
	
			
				 (q)
			“Effective Date” means January 5, 2018.

			
	
			
				 (r)
			“Employee” shall mean an employee of the Company or an Affiliate thereof, as described in Treasury Regulation Section 1.421-1(h), hired in connection with the Acquisition (including an employee of CVC immediately prior to the Acquisition) to whom the Committee determines to grant an Option in accordance with Section 3 and Section 6 of the Plan.

			
	
			
				 (s)
			“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

			
	
			
				 (t)
			“Exercise Price” means, with respect to any Option under which the holder may purchase Shares, the price per share at which a holder of such Option granted hereunder may purchase Shares issuable upon exercise of such Option.

			
	
			
				 (u)
			“Fair Market Value” as of a particular date shall mean: (i) if the Common Stock is admitted to trading on a national securities exchange, the fair market value of a Share on any date shall be the closing sale price reported for such share on such exchange on such date or, if no sale was reported on such date, on the last day preceding such date on which a sale was reported; (ii) if the Shares are not then listed on a national securities exchange, the average of the highest reported bid and lowest reported asked prices for the Shares as reported by the National Association of Securities Dealers, Inc. Automated Quotations System or such other quotation system for the last preceding date on which there was a sale of such stock ; or (iii) if the Shares are not then listed on a national securities exchange or traded in an over-the-counter market or the value of such Shares is not otherwise determinable, such value as determined by the Committee in good faith and in a manner not inconsistent with Code Section 409A.

			
	
			
				 (v)
			“Independent Directors” means the “independent directors,” within the meaning of the NASDAQ marketplace rules, of the Board.

			
	
			
				 (w)
			“NASDAQ” means The NASDAQ Stock Market.

			
	
			
				 (x)
			“Option” means a nonqualified option to purchase Shares granted pursuant to ‎Section 7 of the Plan, which does not meet the requirements of Code Section 422.

			
	
			
				 (y)
			“Option Agreement” means any agreement, contract or other instrument or document evidencing an Option. Evidence of an Option may be in written or electronic form, may be limited to notation on the books and records of the Company and, with the approval of the Administrator, need not be signed by a representative of the Company or a Participant. Any Shares that become deliverable to the Participant pursuant to the Plan may be issued in certificate form in the name of the Participant or in book-entry form in the name of the Participant.

			
	
			
				 (z)
			“Participant” means an Employee selected by the Administrator to participate in the Plan, pursuant to the Administrator’s authority provided for in ‎Section 3 of the Plan, to receive grants of Options, and, upon his or her death, his or her successors, heirs, executors and administrators, as the case may be, solely with respect to any Options outstanding at the date of the Employee’s death.

			
	
			
				 (aa)
			“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any Subsidiary thereof, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary thereof, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

			
	
			
				 (bb)
			“Purchase Agreement” means the Unit Purchase Agreement by and among the Company, PetIQ Holdings, LLC, PetIQ, LLC, Community Veterinary Clinics, LLC, VIP Petcare Holdings, Inc., Will Santana and Kenneth Pecoraro, dated as of January 5, 2018.

		
			

		 

 

		

			
	
			
				 (cc)
			“Retirement” means a termination of a Participant’s employment, other than for Cause and other than by reason of death or Disability, on or after the attainment of age 65.

			
	
			
				 (dd)
			“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act.

			
	
			
				 (ee)
			“Shares” means shares of Common Stock reserved for issuance under the Plan, as adjusted pursuant to the Plan, and any successor (pursuant to a merger, consolidation or other reorganization) security.

			
	
			
				 (ff)
			“Subsidiary” means, with respect to any Person, as of any date of determination, any other Person as to which such first Person owns or otherwise controls, directly or indirectly, more than fifty percent (50%) of the voting shares or other similar interests or a sole general partner interest or managing member or similar interest of such other Person. An entity shall be deemed a Subsidiary of the Company for purposes of this definition only for such periods as the requisite ownership or control relationship is maintained. 

			
	
			
				 Section 3.
			

			
	
			
			Administration.

			
	
			
				 (a)
			The Plan shall be administered by the Administrator in accordance with Rule 16b-3. 

			
	
			
				 (b)
			Pursuant to the terms of the Plan, the Administrator, subject, in the case of the Committee, to any restrictions on the authority delegated to it by the Board, shall have the power and authority, without limitation:

			
	
			
				 (i)
			to select those individuals who shall become Participants in the Plan in connection with the Acquisition;

			
	
			
				 (ii)
			to determine whether and to what extent Options are to be granted hereunder to Participants;

			
	
			
				 (iii)
			to determine the number of Shares to be covered by each Option granted hereunder;

			
	
			
				 (iv)
			to determine the terms and conditions, not inconsistent with the terms of the Plan, of each Option granted hereunder, including, but not limited to, (A) the Exercise Price of each Option, (B) the vesting schedule applicable to each Option, (C) the number of Shares subject to each Option and (D) subject to the requirements of Code Section 409A (to the extent applicable), any amendments to the terms and conditions of outstanding Options, including, but not limited to, extending the exercise period of such Options and accelerating the vesting schedule of such Options;

			
	
			
				 (v)
			to determine the terms and conditions, not inconsistent with the terms of the Plan, which shall govern all written instruments evidencing Options granted hereunder;

			
	
			
				 (vi)
			to determine the Fair Market Value;

			
	
			
				 (vii)
			to determine the duration and purpose of leaves of absence which may be granted to a Participant without constituting termination of the Participant’s employment for purposes of Options granted under the Plan;

			
	
			
				 (viii)
			to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall from time to time deem advisable; 

			
	
			
				 (ix)
			to reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan, any Option Agreement or other instrument or agreement relating to the Plan or an Option granted under the Plan; and

			
	
			
				 (x)
			to construe and interpret the terms and provisions of the Plan and any Option issued under the Plan (and any Option Agreement relating thereto), and to otherwise supervise the administration of the Plan and to exercise all powers and authorities either specifically granted under the Plan or necessary and advisable in the administration of the Plan.

			
	
			
				 (c)
			All decisions made by the Administrator pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, including the Company and the Participants. No member of the Board or the Committee, or any officer or employee of the Company or any Subsidiary thereof acting on behalf of the Board or the Committee, shall be personally liable for any action, omission, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board or the Committee and each and any officer or employee of the Company and of any Subsidiary thereof acting on their behalf shall, to the maximum extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, omission, determination or interpretation.

			
	
			
				 Section 4.
			

			
	
			
			Shares Reserved for Issuance Under the Plan. 

		
			

		 

 

		

			
	
			
				 (a)
			Subject to adjustment as provided in ‎Section 5 of the Plan, the number of Shares that are reserved and available for issuance pursuant to Options granted under the Plan is 800,000.

			
	
			
				 (b)
			Shares issued under the Plan may, in whole or in part, be authorized but unissued Shares or Shares that shall have been or may be reacquired by the Company in the open market, in private transactions or otherwise. Any Shares subject to an Option under the Plan that, after the Effective Date, are forfeited, canceled, settled, withheld to cover taxes or the Exercise Price, or otherwise terminated without a distribution of Shares to a Participant will not thereafter be deemed to be available for issuance under the Plan.  

			
	
			
				 Section 5.
			

			
	
			
			Equitable Adjustments.

		
			In the event of any Change in Capitalization, an equitable substitution or proportionate adjustment shall be made, in each case, as may be determined by the Administrator, in its sole discretion, in (i) the aggregate number of Shares reserved for issuance under the Plan, and (ii) the kind, number and Exercise Price subject to outstanding Options granted under the Plan, provided, however, that any such substitution or adjustment with respect to Options shall occur in accordance with the requirements of Code Section 409A; provided,  further, however, that any fractional Shares resulting from the adjustment shall be eliminated. Such other equitable substitutions or adjustments shall be made as may be determined by the Administrator, in its sole discretion. Without limiting the generality of the foregoing, in connection with a Change in Capitalization, the Administrator may provide, in its sole discretion, for the cancellation of any outstanding Option granted hereunder in exchange for payment in cash or other property having an aggregate Fair Market Value of the Shares covered by such Option, reduced by the aggregate Exercise Price or purchase price thereof, if any.  The Administrator’s determinations pursuant to this ‎Section 5 shall be final, binding and conclusive.
		

			
	
			
				 Section 6.
			

			
	
			
			Eligibility.

		
			Options under the Plan may be granted only to Employees and shall be granted as an inducement material to such Employees entering into and continuing employment with the Company or its current or future Affiliates (including, following the Acquisition, CVC) in connection with the Acquisition. No Options shall be granted hereunder after the Effective Date.
		

			
	
			
				 Section 7.
			

			
	
			
			Options.

			
	
			
				 (a)
			General.  The Committee may, in its sole discretion, grant Options to Participants. Each Participant who is granted an Option shall enter into an Option Agreement with the Company, containing such terms and conditions as the Administrator shall determine, in its sole discretion, which Option Agreement shall specify that the Option is a nonqualified stock option and shall set forth, among other things, the Exercise Price of the Option, the term of the Option and provisions regarding exercisability of the Option granted thereunder. The provisions of each Option need not be the same with respect to each Participant. More than one Option may be granted to the same Participant and be outstanding concurrently hereunder. Options granted under the Plan shall be subject to the terms and conditions set forth in this ‎Section 7 and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable and set forth in the applicable Option Agreement. The prospective recipient of an Option shall not have any rights with respect to such Option, unless and until such recipient has received an Option Agreement and, if required by the Administrator in the Option Agreement, executed and delivered a fully executed copy thereof to the Company, within a period of sixty (60) days (or such other period as the Administrator may specify) after the award date.

			
	
			
				 (b)
			Exercise Price.  The Exercise Price of Shares purchasable under an Option shall be determined by the Administrator in its sole discretion at the time of grant; provided, however, that in no event shall the Exercise Price of an Option be less than one hundred percent (100%) of the Fair Market Value of the Common Stock on the date of grant.

			
	
			
				 (c)
			Option Term.  The maximum term of each Option shall be fixed by the Administrator, but in no event shall an Option be exercisable more than ten (10) years after the date such Option is granted. Each Option’s term is subject to earlier expiration pursuant to the applicable provisions in the Plan and the Option Agreement. Notwithstanding the foregoing, the Administrator shall have the authority to accelerate the exercisability of any outstanding Option at such time and under such circumstances as the Administrator, in its sole discretion, deems appropriate.  Notwithstanding any contrary provision herein, if, on the date an outstanding Option would expire, the exercise of the Option, including by a “net exercise” or “cashless” exercise, would violate applicable securities laws or any insider trading policy maintained by the Company from time to time, the expiration date applicable to the Option will be extended, except to the extent such extension would violate Section 409A, to a date that is thirty (30) calendar days after the date the exercise of the Option would no longer violate applicable securities laws or any such insider trading policy.

			
	
			
				 (d)
			Exercisability.  Each Option shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator in the applicable Option Agreement. The Administrator may also provide that any Option shall be exercisable only in installments, and the Administrator may waive such installment exercise provisions at any time, in whole or in part, based on such factors as the Administrator may determine in its sole discretion. Notwithstanding anything to the contrary contained herein, an Option may not be exercised for a fraction of a share. 

		
			

		 

 

		

			
	
			
				 (e)
			Method of Exercise.  Options may be exercised in whole or in part by giving written notice of exercise to the Company specifying the number of Shares to be purchased, accompanied by payment in full of the aggregate Exercise Price of the Shares so purchased in cash or its equivalent, as determined by the Administrator. As determined by the Administrator, in its sole discretion, with respect to any Option or category of Options, payment in whole or in part may also be made (i) by means of consideration received under any cashless exercise procedure approved by the Administrator (including the withholding of Shares otherwise issuable upon exercise), (ii) in the form of unrestricted Shares already owned by the Participant which have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Shares as to which such Option shall be exercised, (iii) any other form of consideration approved by the Administrator and permitted by applicable law or (iv) any combination of the foregoing. In determining which methods a Participant may utilize to pay the Exercise Price, the Administrator may consider such factors as it determines are appropriate.

			
	
			
				 (f)
			Rights as Stockholder.  A Participant shall have no rights to dividends or any other rights of a stockholder with respect to the Shares subject to an Option until the Participant has given written notice of the exercise thereof, has paid in full for such Shares and has satisfied the requirements of ‎Section 11 of the Plan and the Shares have been issued to the Participant.

			
	
			
				 (g)
			Termination of Employment or Service.

			
	
			
				 (i)
			Unless the applicable Option Agreement provides otherwise, in the event that the employment or service of a Participant with the Company and all Affiliates thereof shall terminate for any reason other than Cause, Retirement, Disability, or death, (A) Options granted to such Participant, to the extent that they are exercisable at the time of such termination, shall remain exercisable until the date that is ninety (90) days after such termination, on which date they shall expire, and (B) Options granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination. The ninety (90) day period described in this ‎Section 7‎(g)‎(i) shall be extended to one (1) year after the date of such termination in the event of the Participant’s death during such ninety (90) day period. Notwithstanding the foregoing, no Option shall be exercisable after the expiration of its term.

			
	
			
				 (ii)
			Unless the applicable Option Agreement provides otherwise, in the event that the employment or service of a Participant with the Company and all Affiliates thereof shall terminate on account of Retirement, Disability or the death of the Participant, (A) Options granted to such Participant, to the extent that they were exercisable at the time of such termination, shall remain exercisable until the date that is one (1) year after such termination, on which date they shall expire and (B) Options granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination. Notwithstanding the foregoing, no Option shall be exercisable after the expiration of its term.

			
	
			
				 (iii)
			In the event of the termination of a Participant’s employment or service for Cause, all outstanding Options granted to such Participant shall expire at the commencement of business on the date of such termination.

			
	
			
				 (iv)
			For purposes of this ‎Section 7‎(g), Options that are not exercisable solely due to a blackout period shall be considered exercisable.

			
	
			
				 (a)
			Other Change in Employment Status.  An Option may be affected, both with regard to vesting schedule and termination, by leaves of absence, changes from full-time to part-time employment, partial disability or other changes in the employment status or service of a Participant, as evidenced in a Participant’s Option Agreement.

			
	
			
				 (b)
			Change in Control.  Notwithstanding anything herein to the contrary, upon a Change in Control, all outstanding Options shall be subject to ‎Section 8 of the Plan.

			
	
			
				 (c)
			Automatic Exercise.   Unless otherwise provided by the Administrator in an Option Agreement or otherwise, or as otherwise directed by the Participant in writing to the Company, each vested and exercisable Option outstanding on the Automatic Exercise Date with an Exercise Price per Share that is less than the Fair Market Value per Share as of such date shall automatically and without further action by the Participant or the Company be exercised on the Automatic Exercise Date.  In the sole discretion of the Administrator, payment of the Exercise Price of any such Option shall be made pursuant to ‎Section 7‎(e)(i) or (ii) and the Company or any Affiliate shall deduct or withhold an amount sufficient to satisfy all taxes associated with such exercise in accordance with ‎Section 11.  Unless otherwise determined by the Administrator, this ‎Section 7‎(j) shall not apply to an Option if the Participant’s employment or service has terminated on or before the Automatic Exercise Date.  For the avoidance of doubt, no Option with an Exercise Price per Share that is equal to or greater the Fair Market Value per Share on the Automatic Exercise Date shall be exercised pursuant to this ‎Section 7‎(j).   

			
	
			
				 Section 8.
			

			
	
			
			Change in Control.

		
			The Administrator may provide in the applicable Option Agreement that an Option will vest on an accelerated basis upon the 

		 

 

Participant’s termination of employment or service in connection with a Change in Control or upon the occurrence of any other event that the Administrator may set forth in the Option Agreement. If the Company is a party to an agreement that is reasonably likely to result in a Change in Control, such agreement may provide for: (i) the continuation of any Option by the Company, if the Company is the surviving corporation; (ii) the assumption of any Option by the surviving corporation or its parent or subsidiary; (iii) the substitution by the surviving corporation or its parent or subsidiary of equivalent awards for any Option, provided, however, that any such substitution with respect to Options shall occur in accordance with the requirements of Code Section 409A; or (iv) settlement of any Option for the Change in Control Price (less, to the extent applicable, the per share exercise or grant price), or, if the per share exercise or grant price equals or exceeds the Change in Control Price or if the Administrator determines that Option cannot reasonably become vested pursuant to its terms, such Option shall terminate and be canceled. For purposes of this ‎Section 8, “Change in Control Price” shall mean (A) the price per share of Common Stock paid to stockholders of the Company in the Change in Control transaction, or (B) the Fair Market Value of a Share upon a Change in Control, as determined by the Administrator. To the extent that the consideration paid in any such Change in Control transaction consists all or in part of securities or other non-cash consideration, the value of such securities or other non-cash consideration shall be determined in good faith by the Administrator. 
		

			
	
			
				 Section 9.
			

			
	
			
			Amendment and Termination.

			
	
			
				 (a)
			The Board or the Committee may amend, alter or terminate the Plan, but no amendment, alteration, or termination shall be made that would impair the rights of a Participant under any Option theretofore granted without such Participant’s consent. 

			
	
			
				 (b)
			Notwithstanding the foregoing, the Board and the Committee will not amend the Plan in any manner that would require approval of the Company’s stockholders pursuant to any rules of the stock exchange on which the Common Stock is traded or other applicable law without the approval thereof.  

			
	
			
				 (c)
			Subject to the terms and conditions of the Plan, the Administrator may modify, extend or renew outstanding Options under the Plan, or accept the surrender of outstanding Options (to the extent not already exercised) and grant new Options in substitution of them (to the extent not already exercised).

			
	
			
				 (d)
			Notwithstanding the foregoing, no alteration, modification or termination of an Option will, without the prior written consent of the Participant, adversely alter or impair any rights or obligations under any Option already granted under the Plan.

			
	
			
				 Section 10.
			

			
	
			
			Unfunded Status of Plan.

		
			The Plan is intended to constitute an “unfunded” plan for incentive compensation. With respect to any payments not yet made or Shares not yet transferred to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company.
		

			
	
			
				 Section 11.
			

			
	
			
			Withholding Taxes.

		
			Each Participant shall, no later than the date as of which the value of an Option first becomes includible in the gross income of such Participant for federal, state and/or local income tax purposes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any federal, state, or local taxes of any kind, domestic or foreign, required by law or regulation to be withheld with respect to the Option. The obligations of the Company under the Plan shall be conditional on the making of such payments or arrangements, and the Company shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to such Participant. Whenever cash is to be paid pursuant to an Option granted hereunder, the Company shall have the right to deduct therefrom an amount sufficient to satisfy any federal, state and local withholding tax requirements related thereto. Whenever Shares are to be delivered pursuant to an Option, the Company shall have the right to require the Participant to remit to the Company in cash an amount sufficient to satisfy any related federal, state and local taxes, domestic or foreign, to be withheld and applied to the tax obligations. With the approval of the Administrator, a Participant may satisfy the foregoing requirement by electing to have the Company withhold from delivery of Shares or by delivering already owned unrestricted shares of Common Stock, in each case, having a value equal to the amount required to be withheld or such other greater amount up to the maximum statutory rate under applicable law, as applicable to such Participant, if such other greater amount would not result in adverse financial accounting treatment, as determined by the Administrator (including in connection with the effectiveness of FASB Accounting Standards Update 2016-09). Such Shares shall be valued at their Fair Market Value on the date of which the amount of tax to be withheld is determined. Fractional share amounts shall be settled in cash. Such an election may be made with respect to all or any portion of the Shares to be delivered pursuant to an Option. The Company may also use any other method of obtaining the necessary payment or proceeds, as permitted by law, to satisfy its withholding obligation with respect to any Option or other Option.
		

			
	
			
				 Section 12.
			

			
	
			
			Non-United States Employees. 

		
			

		 

 

		

		
			Without amending the Plan, the Administrator may grant Options to eligible persons residing in non-United States jurisdictions on such terms and conditions different from those specified in the Plan, including the terms of any award agreement or plan, adopted by the Company or any Subsidiary thereof to comply with, or take advantage of favorable tax or other treatment available under, the laws of any non-United States jurisdiction, as may in the judgment of the Administrator be necessary or desirable to foster and promote achievement of the purposes of the Plan and, in furtherance of such purposes the Administrator may make such modifications, amendments, procedures, subplans and the like as may be necessary or advisable to comply with provisions of laws in other countries or jurisdictions in which the Company or its Subsidiaries operates or has employees.
		

			
	
			
				 Section 13.
			

			
	
			
			Transfer of Options.

		
			No purported sale, assignment, mortgage, hypothecation, transfer, charge, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest in or lien on, any Option or any agreement or commitment to do any of the foregoing (each, a “Transfer”) by any holder thereof in violation of the provisions of the Plan or an Option Agreement will be valid, except with the prior written consent of the Administrator, which consent may be granted or withheld in the sole discretion of the Administrator. Any purported Transfer of an Option or any economic benefit or interest therein in violation of the Plan or an Option Agreement shall be null and void ab initio, and shall not create any obligation or liability of the Company, and any person purportedly acquiring any Option or any economic benefit or interest therein transferred in violation of the Plan or an Option Agreement shall not be entitled to be recognized as a holder of such Shares. Unless otherwise determined by the Administrator in accordance with the provisions of the immediately preceding sentence, an Option may be exercised, during the lifetime of the Participant, only by the Participant or, during any period during which the Participant is under a legal disability, by the Participant’s guardian or legal representative.
		

			
	
			
				 Section 14.
			

			
	
			
			Continued Employment.

		
			The adoption of the Plan shall not confer upon any Employee any right to continued employment or service with the Company or an Affiliate thereof, as the case may be, nor shall it interfere in any way with the right of the Company or an Affiliate thereof to terminate the employment or service of any Employees at any time.
		

			
	
			
				 Section 15.
			

			
	
			
			Duration of the Plan.

		
			The Plan will commence on the Effective Date and will remain in effect, subject to the right of the Administrator to amend or terminate the Plan at any time pursuant to ‎Section 9, for a term of ten (10) years after the Effective Date.
		

			
	
			
				 Section 16.
			

			
	
			
			Code Section 409A.

		
			The intent of the parties is that payments and benefits under the Plan comply with Code Section 409A to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted and be administered to be in compliance therewith. Any payments described in the Plan that are due within the “short-term deferral period” as defined in Code Section 409A shall not be treated as deferred compensation unless applicable law requires otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required in order to avoid accelerated taxation and/or tax penalties under Code Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided upon a “separation from service” to a Participant who is a “specified employee” shall be paid on the first business day after the date that is six (6) months following the Participant’s separation from service (or upon the Participant’s death, if earlier). In addition, for purposes of the Plan, each amount to be paid or benefit to be provided to the Participant pursuant to the Plan, which constitute deferred compensation subject to Code Section 409A, shall be construed as a separate identified payment for purposes of Code Section 409A. Nothing contained in the Plan or an Option Agreement shall be construed as a guarantee of any particular tax effect with respect to an Option. The Company does not guarantee that any Options provided under the Plan will satisfy the provisions of Code Section 409A, and in no event will the Company be liable for any or all portion of any taxes, penalties, interest or other expenses that may be incurred by a Participant on account of any non-compliance with Code Section 409A.
		

			
	
			
				 Section 17.
			

			
	
			
			Erroneously Awarded Compensation.    

		
			The Plan and all Options issued hereunder shall be subject to any compensation recovery and/or recoupment policy adopted by the Company to comply with applicable law, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or to comport with good corporate governance practices, as such policies may be amended from time to time.
		

			
	
			
				 Section 18.
			

			
	
			
			Governing Law.

		
			The Plan shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law of such state. 
		

		
			

		 

 

		

			
	
			
				 Section 19.
			

			
	
			
			Plan Document Controls.

		
			The Plan and each Option Agreement constitute the entire agreement with respect to the subject matter hereof and thereof; provided that in the event of any inconsistency between the Plan and such Option Agreement, the terms and conditions of the Plan shall control.

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