Document:

SEPARATION AGREEMENT AND RELEASE

 

EXHIBIT 10.1

SEPARATION AGREEMENT AND RELEASE

THIS SEPARATION AGREEMENT AND RELEASE (“Agreement”) is entered into as of the 25th day of January, 2017 (the “Effective Date”) by and between Social Reality, Inc., a Delaware corporation with its principal place of business at 456 Seaton Avenue, Los Angeles, CA  90013(the “Company”) and Richard Steel, an individual residing at 2052 Pebble Drive, Alamo, CA  94507 (the “Executive”) (together the “Parties”).

RECITALS

This Agreement is entered into with reference to the following facts:

WHEREAS, pursuant to the terms and conditions of that certain Stock Purchase Agreement dated October 30, 2014 by and among the Executive, as seller, Steel Media, a California corporation (“Steel Media”) and the Company, as buyer (the "Stock Purchase Agreement"), the Company purchased all of the stock of Steel Media from the Executive.

WHEREAS, pursuant to the terms of the Stock Purchase Agreement, on October 30, 2014 the Executive and the Company entered into that certain Indemnification Escrow Agreement (the "Indemnification Escrow Agreement") with Wells Fargo Bank, National Association as escrow agent (the "Escrow Agent"), pursuant to which Two Million Dollars ($2,000,000) of the purchase price paid to the Executive under the terms of the Stock Purchase Agreement (the "Escrow Amount") was deposited into escrow with the Escrow Agent which was intended to serve as recourse for Losses (as that term is defined in the Stock Purchase Agreement) for which the Company (or any Company Indemnified Party (as that term is defined in the Stock Purchase Agreement)) is entitled to make under a claim for indemnification under Article VII of the Stock Purchase Agreement.

WHEREAS, the escrow created under the Indemnification Escrow Agreement expires on October 30, 2017 and, through the date hereof, no Claims (as that term is defined in the Indemnification Escrow Agreement) have been made against the Escrow Amount.

WHEREAS, under the terms of the Stock Purchase Agreement, on October 30, 2014 the Executive and the Company entered into that certain Employment Agreement dated as of October 30, 2014 (the "Employment Agreement") pursuant to which the Executive is employed by the Company, serving as its President.

WHEREAS, the Executive has advised the Company he is considering terminating his employment with the Company and resigning from all positions with the Company and its subsidiaries.

WHEREAS, in conjunction with such separation from the Company and as a material inducement to enter into this Agreement, the Executive has requested an early termination of the Indemnification Escrow Agreement and a release of full amount of the Escrow Amount to him, and the Company has offered to pay for twelve (12) months of COBRA healthcare benefits on behalf of the Executive and his family following the separation.

NOW THEREFORE, in consideration of the mutual agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 

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AGREEMENT

The parties acknowledge that the Recitals stated above are fully incorporated and are part of this Agreement.  All terms not otherwise defined herein shall have the same meaning as in the Employment Agreement.

1.

Purpose. This Agreement supersedes any and all prior oral or written agreements and understandings between the Parties. This Agreement is not and shall not in any way be considered or interpreted as an admission by Company, or any of its directors, officers, agents, employees or representatives, of any acts of discrimination whatsoever against Executive, or any other person, or that Company violated any federal, state, or local law, or that Executive’s separation from employment was unwarranted, unjustified, discriminatory or otherwise unlawful. This Agreement is the good faith settlement of any potential disputed claims, and Company specifically disclaims any liability to or discrimination against Executive or any other person, on the part of itself, its directors, officers, agents, insurers, Executives, or representatives. Executive acknowledges that Company is not entering into this Agreement because it believes that Executive has any cognizable legal claim against the Released Parties (defined below). If Executive elects not to sign this Agreement, the fact that this Agreement was offered will not be understood as an indication that the Released Parties believed Executive was treated unlawfully in any respect.

2.

Separation.

(a)

Voluntary Resignation.  The Executive hereby voluntarily terminates his employment with the Company.  The Executive hereby immediately resigns all positions as an officer and director of the Company and its subsidiaries and the Company hereby accepts such resignations (collectively, the "Voluntary Resignation").  The Executive represents and warrants that he is not resigning his employment for "Good Reason" or seeking to terminate the Employment Agreement for "Disability" and there are no events or circumstances which would otherwise permit him to do so.  The Parties agree that the Executive's employment relationship with Company, it subsidiaries, affiliates, and successors is permanently and irrevocably severed and the Company's obligations under Section 6.9 (Board Seat) of the Stock Purchase Agreement are hereby terminated. For avoidance of doubt, the Parties acknowledge that the provisions of Sections 6 (Confidentiality), 7 (Assignment of Developments; Works for Hire), 11 (Governing Law; Consent to Jurisdiction; Arbitration) and 15 (Indemnification/D&O Insurance) of the Employment Agreement, and the provisions of Sections 6.7 (Indemnification of Directors and Officers) of the Stock Purchase Agreement and the Company's Insider Trading Policy remain in full force and effect.

(b)

Restricted Period.  The Parties acknowledge that the definition of “Restricted Period” in Section 6.8 (Noncompetition; Non-Solicitation) of the Stock Purchase Agreement is hereby amended and shall end eighteen (18) months following the Effective Date.  With the exception of this amendment to the duration of the Restricted Period, the provisions of Section 6.8 of the Stock Purchase Agreement remain in full force and effect. For avoidance of doubt, the Parties acknowledge that the Executive shall no longer be bound by the restrictions of Section 6.8 of the Stock Purchase Agreement following the eighteen (18) month anniversary of the Effective Date.

(c)

Amounts Owed.  The Executive acknowledges that he is not entitled to any Severance Amount or similar amounts as a result of the Voluntary Resignation.  Exhibit A attached hereto an incorporated herein by such reference sets forth any and all amounts owned to Executive on the date hereof (the "Termination Date") by the Company, its subsidiaries, affiliates and successors pursuant to 

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the terms of the Employment Agreement or otherwise.  Executive acknowledges that no amounts are due him under the terms of the Stock Purchase Agreement for any Earnout Consideration (as that term is defined therein) or otherwise, except for any portion of the Escrow Amount to which he may be entitled under the terms of the Indemnification Escrow Agreement as hereinafter set forth.

(d)

Unvested Options.  The Executive acknowledges that the options to purchase shares of the Company's Class A common stock granted to him under Section 3(d) of the Employment Agreement (the "Stock Options") have not yet vested and such unvested Stock Options shall immediate terminate and be of no further force or effect.

3.

Consent to Release of Escrow Amount. To the knowledge of the Executive, there are no pending or threatened Claims (as that term is defined Indemnification Escrow Agreement) against the Escrow Amount and no events have occurred since the date thereof which would reasonably be expected to result in a Claim.  In reliance on such representation, the Company hereby consents to the early termination of the Indemnification Escrow Agreement and the release of the Escrow Amount to the Executive.  Concurrent with the execution of this Agreement by the Parties, the Company shall execute the Joint Written Instructions to Escrow Agent to Release Funds from Escrow Account in the form attached hereto as Exhibit B and incorporated herein by such reference.  The Executive shall be responsible for the payment of any and all outstanding fees due the Escrow Agent, if any, under the terms of the Indemnification Escrow Agreement.

4.

Payment of Wages and Benefits. Executive acknowledges and agrees that Company paid Executive all compensation due and owing to him under the California Labor Code and all other applicable state and federal laws as of the Termination Date, subject to the amounts set forth on Exhibit A hereto, including but not limited to any and all wages, salary, bonuses,  discretionary bonuses, equity incentives, commissions, reasonable business expenses, benefit plans and programs, and PTO on the Termination Date.  The Company will provide Executive and his family with twelve (12) months of COBRA healthcare benefits at the sole expense of Company.

5.

Referrals. The Company agrees that it will answer all reference inquiries with respect to Executive by stating the separation date, dates of employment, and job title.

6.

Unemployment Insurance Claim. Company agrees that it will not contest or oppose Executive’s claim for unemployment insurance benefits, if any is made.

7.

Executive’s Release and Waiver.  The Executive hereby forever voluntarily releases and discharges Company and its affiliates, successors and assigns, as well as each of its past and present officers, directors, employees, agents, attorneys and stockholders (collectively, the “Released Parties”), from any and all claims, charges, complaints, liens, demands, causes of action, obligations, damages and liabilities, known or unknown, suspected or unsuspected, that Executive had, now has or may hereafter claim to have against the Released Parties arising out of or relating in any way to Executive’s employment with the Company, or otherwise relating to any of  the Released Parties from the beginning of time to the date of this Agreement (the “Release”). This Release specifically extends to, without limitation, any and all claims or causes of action for wrongful termination, termination with Cause or for Good Reason, breach of an express or implied contract, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation, defamation, slander, infliction of emotional distress, disability, loss of future earnings, and any claims under any applicable state, federal or local statutes and regulations, including, but not limited to, the Civil Rights Act of 1964, as amended, the Equal Pay Act of 1963, as amended,  the Fair Labor Standards Act, as amended, the Americans with Disabilities Act of 1990, as amended, the Rehabilitation Act of 1973, as amended, the Executive Retirement Income Security Act of 

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1974, as amended, the Age Discrimination in Employment Act, as amended, the Older Workers’ Benefits Protection Act (29U.S.C.§626), as amended, the Worker Adjustment and Retraining Notification Act, as amended, Section 806 of the Sarbanes-Oxley Act, the Family and Medical Leave Act, as amended, the California Family Rights Act, as amended, the California Fair Employment and Housing Act, as amended, and California Labor Code; provided, however, that this Release does not waive, release or otherwise discharge any claim or cause of action hat cannot legally be waived, including, but not limited to, workers’ compensation benefits, unemployment benefits, and any claims under section 2802 of the California Labor Code.

8.

Company’s Release and Waiver.  The Company, on behalf of itself and the Released Parties, voluntarily, irrevocably, and unconditionally releases, acquits, and forever discharges Executive, his successors, assigns, heirs, estates, executors, administrators, agents, representatives, and/or attorneys, and each of them, from any and all charges, complaints, claims, promises, agreements, controversies, suits, demands, costs, losses, debts, actions, causes of action, damages, judgments, obligations, liabilities, and expenses of whatever kind and character, known or unknown, suspected or unsuspected, including any claims for attorneys’ fees and costs, which Company, the Released Parties or any of them, now have, own, hold, or claim to have, own, or hold, or may have had, owned, or held, or may in the future claim to have, own, or hold against Executive, his successors, assigns, heirs, estates, executors, administrators, agents, representatives, and/or attorneys, or any of them, regarding events that have occurred in connection with or related to Executive’s employment with Company.

9.

Waiver Under Section 1542 of the California Civil Code. For the purpose of implementing a full and complete release, the Parties understand and agree that this Agreement is intended to include all claims, if any, which the Parties may have and which the Parties do not now know or suspect to exist in their favor against the other Party and this Agreement extinguishes those claims. Accordingly, the Parties expressly waive all rights afforded by Section 1542 of the Civil Code of the State of California and any similar statute or regulation in any other applicable jurisdiction.

10.

No Claims or Lawsuits. The Parties agree not to bring any claim, action, suit or proceeding against each other or any of the other Released Parties regarding the matters settled, released and dismissed hereby, including, but not limited to, any claim, action, suit or proceeding raised or that could have been raised in connection with any claim or matter which is the subject of the Release. The Parties further agree that this Agreement is a bar to any such claim, action, suit or proceeding.

11.

Warranty and Indemnification Regarding Non-Assignment of Claims. Executive hereby represents and warrants that he is the sole and rightful owner of all right, title and interest in and to every claim or matter which is the subject of the Release, and has not heretofore assigned or otherwise transferred, and shall not assign or otherwise transfer, any interest in the claims which are the subject of the Release which he may have against the Released Parties, or any of them, and has not heretofore created or given rise, and shall not create or give rise to any lien, charge, encumbrance or other right by which any other person or entity may claim all or any part of the consideration paid to Executive pursuant to Section 2(b) or Section 3 of this Agreement. Executive agrees to indemnify and hold Company and all other Released Parties harmless from any liabilities, claims, demands, damages, costs, expenses and attorneys’ fees incurred as a result of any person or entity asserting any claim or cause of action based upon any such assignment or transfer or purported assignment or transfer, or any such lien, charge or encumbrance.

12.

Responsibility for Tax Liability. Executive recognizes and agrees that he alone is responsible for any local, state, or federal taxes that may be assessed or owing with respect to the Escrow Amount. Executive therefore agrees to make no claim against Company for any payment or non-

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payment of taxes or regarding or relating to the reporting of the payment described in this Agreement, if any, to any taxing authorities. Executive acknowledges and agrees that Company has made no representations to him and has provided no advice to him regarding the tax consequences of the moneys received by him pursuant to this Agreement. Executive agrees to pay federal and state taxes, if any, which are required by law to be paid with respect to the Escrow Amount. Executive further agrees to indemnify and hold Company harmless from any claims, demands, deficiencies, levies, assessments, executions, judgments or recoveries by any governmental entity against Company for any amounts claimed due on account of this Agreement or pursuant to claims made under any federal or state tax laws, and any costs, expenses or damages sustained by Company by reason of any such claims, including any amounts paid by Company as taxes, deficiencies, levies, assessments, fines, penalties, interest, attorneys’ fees or otherwise.

13.

Non-Disparagement. Each Party agrees that it shall not, at anytime, make, directly or indirectly, any oral or written statements that are disparaging of the other Party, any of its subsidiaries, affiliates, successors or assigns, including any of its present or former officers, directors or employees.  Each Party agrees that it shall not make any intentionally false or derogatory statements regarding the other Party. Any violation by either Party of this non-disparagement obligation shall constitute a material breach of this Agreement, entitling the aggrieved Party to seek and recover any and all consequential and foreseeable damages resulting from that breach. Company agrees that any press release concerning Executive’s departure from Company will simply state that Executive left Company to pursue other interests.

14.

Governing Law.  This Agreement and all rights, duties and remedies hereunder shall be governed by and construed and enforced in accordance with the laws of the State of California, without reference to its choice of law rules.

15.

Severability. If any court of competent jurisdiction determines that any of the agreements or releases contained herein, or any part thereof, is unenforceable because of the character, duration or scope of such provision, such court shall have the power to sever such provision or modify or reduce the duration or scope of such provision, and, in its reduced form, this Agreement shall then be enforceable to the maximum extent permitted by applicable law.

16.

Successors and Assigns. Executive and Company agree that this Agreement will be binding upon and pass to the benefit of the heirs, representatives, successors and assigns of the Parties.

17.

Amendments. This Agreement may not be amended or modified other than by a written instrument signed by Company and Executive.

18.

Attorneys’ Fees. If there is an action between the parties to this Agreement based on this Agreement, the prevailing party in the action shall be entitled to reasonable attorneys’ fees and costs incurred therein. In connection with the preparation and execution of this Agreement, each Party shall bear its own attorneys’ fees and costs.

19.

Descriptive Headings. The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

20.

Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. A facsimile of this Agreement shall be deemed an original.

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21. 

Entire Agreement.  The Parties understand and agree that this Agreement constitutes the entire Agreement between the Parties concerning the scope of Executive’s separation from Company and the related release of claims, and that this Agreement supersedes any and all prior oral or written agreements and understandings between the Parties on such issues.  No warranty, representation, condition, understanding or agreement of any kind with respect to the subject thereof shall be relied upon by the Parties unless incorporated herein. Notwithstanding any other provision contained herein, this Agreement may be pled as a thorough and complete defense to, and may be used as the basis for an injunction against, any action, suit or other proceeding that may be instituted, prosecuted or attempted in breach of the provisions contained herein.

22.

REPRESENTATION BY COUNSEL.  EXECUTIVE HAS A RIGHT TO OBTAIN THE ADVICE OF AN ATTORNEY BEFORE ENTERING INTO THIS AGREEMENT. EXECUTIVE ACKNOWLEDGES THAT HE HAS EITHER BEEN REPRESENTED BY OR RELIED UPON COUNSEL OF HIS OWN CHOOSING IN CONNECTION WITH THE EXECUTION OF THIS AGREEMENT, OR HAS WAIVED THE OPPORTUNITY TO DO SO AND IS FULLY AWARE OF AND UNDERSTANDS THE TERMS AND LEGAL CONSEQUENCES OF THIS AGREEMENT.

PLEASE READ CAREFULLY. THIS  SEPARATION AGREEMENT AND GENERAL RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

IN WITNESS WHEREOF, this Agreement was executed by the Parties hereto as of the day and date first above written.

			
	 
	Social Reality, Inc.

	 
	

By: 

	

/s/ Christopher Miglino

	 
	 
	Christopher Miglino

	 
	 
	Chief Executive Officer

	 
	 
	 

	 
	 
	 

	 
	/s/ Richard Steel

	 
	Richard Steel

6Exhibit

Exhibit 10.1

AGNC MORTGAGE MANAGEMENT, LLC 
PERFORMANCE INCENTIVE PLAN - MTGE

Effective January 24, 2017

1.Definitions.  In this Plan, except where the context otherwise indicates, the following definitions shall apply: 
1.1.    “Affiliate” means AGNC and any corporation, partnership, business trust, limited liability company or other form of business organization at least a majority of the total combined voting power of all classes of stock or other equity interests of which is owned by the Company or AGNC, either directly or indirectly.  
1.2.    “AGNC” means AGNC Investment Corp., a Delaware corporation.
1.3.    “Agreement” means a written agreement or other document evidencing an Award that shall be in such form as may be specified by the Committee and that may, but need not, be signed by a Participant, as determined by the Committee in its discretion.
1.4.    “Award” means a grant of an Incentive Award.
1.5.    “Board” means the Board of Directors of the AGNC. 
1.6.    “Cause” has the meaning ascribed to such term in any written agreement between the Participant and the Company or an Affiliate.  In the absence of such  an agreement, such “Cause” means, with respect to a Participant, the occurrence of any of the following events: (i) such Participant’s commission of any felony, (ii) such Participant’s commission of a crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof that is reasonably likely to result in material adverse effects on the Company or an Affiliate; (iii) such Participant’s intentional, material violation of any contract or agreement between the Participant and the Company or an Affiliate or of any statutory duty owed to the Company or an Affiliate; (iv) such Participant’s unauthorized use or disclosure of the confidential information or trade secrets of the Company or an Affiliate; or (v) such Participant’s gross misconduct that is reasonably likely to result in material adverse effects on the Company or an Affiliate. The determination that a termination of the Participant’s employment or service is either for Cause or without Cause will be made by the Board, in its sole discretion. Any determination by the Board that the employment or service of a Participant was terminated with or without Cause for the purposes of outstanding Awards held by such Participant will have no effect on any determination of the rights or obligations of the Company or such Participant for any other purpose.
1.7.    “Change of Control” means:  (i) a change in ownership or effective control (within the meaning of Section of 409A of the Code) of the Company or AGNC, or (ii) a change in ownership of a substantial portion of the assets of the Company or 

AGNC (within the meaning of Section of 409A of the Code).  Whether a change in effective control of either the Company or AGNC has occurred shall be determined by substituting “more than 50 percent” in place of “30 percent or more” in the first sentence of Treas. Reg. §1.409A-3(i)(5)(vi)(A)(1). Notwithstanding the foregoing, for purposes of Section 7.3, in no event shall a Change of Control be deemed to have occurred with respect to a Participant or a Participant’s Incentive Award Account unless the Change of Control constitutes a “change in control event” (as defined in Treas. Reg. §1.409A-3(i)(5)(i)) with respect to the Participant.

1.8.    “Code” means the Internal Revenue Code of 1986, as amended.
1.9.    “Committee” means the Compensation and Corporate Governance Committee of AGNC and any other committee appointed by the Board to administer this Plan pursuant to Section 3 of this Plan, and to the extent of any delegation by the Committee to a subcommittee pursuant to Section 3 of this Plan, such subcommittee.  
1.10.    “Common Stock” means the common stock, par value $0.01 per share, of MTGE.
1.11.    “Company” means AGNC Mortgage Management, LLC, a Delaware limited liability company, and any successor thereto.
1.12.    “Date of Grant” means the date on which an Award is granted under this Plan. 
1.13.    “Deferral Election” means an election to defer payment of an Incentive Award Tranche pursuant to Section ‎7 hereof.
1.14.    “Deferred Payment Date” means a deferred payment date relating to an Incentive Award Tranche elected by a Participant pursuant to Section ‎7 hereof. 
1.15.    “Disabled” means “disabled” within the meaning of Section 409A of the Code. 
1.16.     “Incentive Award” means an incentive award granted under the Plan in accordance with Section ‎4 hereof.
1.17.    “Incentive Award Account” means a separate bookkeeping account maintained in accordance with Section ‎5 hereof on behalf of each Participant who has been granted an Incentive Award.  
1.18.    “Incentive Award Tranche” means the incremental portion of a Participant’s Incentive Award Account that vests in accordance with the terms of the Incentive Award.
1.19.    “MTGE” means MTGE Investment Corp., a Maryland corporation.

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1.20.    “Original Payment Date” means, with respect to an Incentive Award Tranche, the date on which a Participant becomes vested in the Incentive Award Tranche.
1.21.    “Participant” means a Service Provider who has been granted an Award hereunder.
1.22.    “Performance Goals” means performance goals established by the Committee which may be based on sales, return on equity, revenue, net operating income, net income, book value per share, dividend characterization, return on assets, cash flow, total stockholder return, equity or investment growth, gross amount invested, market share, regulatory compliance (including compliance goals relating to the Sarbanes-Oxley Act of 2002), satisfactory internal or external audits, improvement of financial ratings, achievement of balance sheet objectives, implementation or completion of one or more projects or transactions, intradepartmental or intra-office performance, or any other objective goals established by the Committee, and may be absolute in their terms or measured against or in relationship to other companies comparably, similarly or otherwise situated.  Such performance goals may be particular to a Service Provider or the department, branch, Affiliate or other division in which he or she works, or may be based on the performance of the Company, one or more Affiliates, or the Company and one or more Affiliates, and may cover such period as may be specified by the Committee.  
1.23.    “Plan” means this AGNC Mortgage Management, LLC Performance Incentive Plan – MTGE, as amended or restated from time to time.
1.24.    “Separation from Service” means a “separation from service” within the meaning of Section 409A of the Code.
1.25.    “Service Provider” means any person determined by the Committee to be a partner in, employee of or consultant to the Company or an Affiliate.  
1.26.    “Share” means a share of Common Stock.
1.27.    “Specified Employee” means a “specified employee” as determined under Treas. Reg. § 1.409A-1(i) and related Company procedures. 
1.28.    “Trust” means the trust described in Section ‎9 hereof.
1.29.    “Valuation Date” means the last day of each calendar quarter and such other date(s) as the Committee may prescribe.
2.    Purpose.  This Plan is intended to assist the Company and its Affiliates in attracting and retaining Service Providers of outstanding ability and to promote the identification of their interests with those of the members of the Company and its Affiliates.  

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3.    Administration.  The Committee shall administer this Plan and shall have plenary authority, in its discretion, to grant Awards to Service Providers, subject to the provisions of this Plan.  The Committee shall have plenary authority and discretion, subject to the provisions of this Plan, to determine the Service Providers to whom Awards shall be granted, the terms of all Awards (which terms need not be identical), the time or times at which Awards are made, the Performance Goals, if any, applicable to Awards, any provisions relating to the vesting of any Award (including any acceleration of vesting) and any procedures pursuant to which a Participant may elect to defer in part or in whole the payment of any Incentive Award.  In making these determinations, the Committee may take into account the nature of the services rendered or to be rendered by Award recipients, their present and potential contributions to the success of the Company and its Affiliates, and such other factors as the Committee in its discretion shall deem relevant.  Subject to the provisions of the Plan, the Committee shall have plenary authority to interpret the Plan and Agreements, prescribe, amend and rescind rules and regulations relating to them, and make all other determinations deemed necessary or advisable for the administration of this Plan and Awards hereunder.  The Committee, by written instrument, may delegate any of its powers or responsibilities hereunder to such person(s) as it may determine, subject to compliance with applicable law.  The determinations of the Committee on the matters referred to in this Section ‎3 hereof shall be binding and final.  
4.    Incentive Awards.  The Committee may, in its sole discretion, grant Incentive Awards in such amounts to such Service Provider(s) as the Committee determines and on such terms and conditions as the Committee may specify, including terms and conditions that make the grant of any Incentive Award, or the vesting of any Incentive Award, contingent upon the attainment of one or more Performance Goals.  The maximum aggregate dollar amount of all Incentive Awards granted to any Service Provider for any calendar year shall be $5,000,000.
5.    Incentive Award Accounts.  
5.1.    Each Incentive Award granted to a Participant hereunder shall be credited to an Incentive Award Account established for the Incentive Award in the name of the Participant. 
5.2.    A Participant shall vest in the Incentive Award Account established for an Incentive Award in accordance with such vesting schedule as may be specified by the Committee and set forth in the Agreement evidencing the Incentive Award. 
5.3.    Unless otherwise specified by the Committee in an Agreement and notwithstanding Section ‎5.2 hereof, (a) a Participant shall become fully vested in his or her Incentive Award Account(s) immediately upon (i) the Participant’s death or becoming Disabled or (ii) in the event of a Change of Control where either (A) within 24 months following such Change of Control, the Participant’s employment or service with the Company or an Affiliate is terminated without Cause or (B) a Participant’s Incentive Award Account(s) are not continued, assumed, or converted into substantially similar 

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replacement awards in connection with such Change of Control, and (b) a Participant’s vested percentage shall not increase after the Participant’s termination of employment with the Company and its Affiliates.
5.4.    As of each Valuation Date, a Participant’s Incentive Award Account(s) shall be adjusted for deemed earnings and losses based on such notional investments as the Committee may designate from time-to-time.  Such notional investments shall be one or more predetermined actual investments or a specified, nondiscretionary interest rate (within the meaning of Treas. Reg. §31.3121(v)(2)-1(d)(2)).  On and after the date on which the member(s) of the Company approve this Plan, the Committee may designate Common Stock as a notional investment.  If the Committee designates Common Stock as a notional investment, it shall be valued in a manner determined by the Committee.  
5.5.        A Participant’s Incentive Award Account shall be reduced to reflect any payments made with respect to the Incentive Award Account. 
6.    Payment of Incentive Award Tranches.  Subject to Section ‎7 hereof, an Incentive Award Tranche shall be paid to a Participant on the Original Payment Date of the Incentive Award Tranche (or as soon as practicable thereafter but in no event after the fifteenth day of the third month following the end of the calendar year during which the Original Payment Date occurs) in the form of (a) Shares or (b) cash or such other property as may be determined by the Board.
7.    Deferral of Incentive Award Tranche.  
7.1.    In accordance with rules prescribed by the Committee, a Participant may elect to defer the payment of an Incentive Award Tranche by filing with the Committee a Deferral Election specifying a Deferred Payment Date or Deferred Payment Dates for the Incentive Award Tranche.  If multiple Deferred Payment Dates are permitted by the Committee for a single Incentive Award Tranche and are elected by the Participant, the Participant must also elect on the Deferral Election the percentage of the Incentive Award Tranche payable on each Deferred Payment Date.  Except as provided in Section ‎7.3 below, an Incentive Award Tranche that a Participant elects to defer shall be paid on (or as soon as practicable following) the applicable Deferred Payment Date or Deferred Payment Dates for the Incentive Award Tranche.  Any Deferred Payment Date shall be a date allowed by the Committee and permitted under Section 409A of the Code.  In no event shall any Deferred Payment Date relating to an Incentive Award Tranche be later than ten years after the date on which the applicable Incentive Award was granted.  The portion of each Incentive Award Tranche payable on each Deferred Payment Date is designated as a separate payment pursuant to Treasury Regulation Section 1.409A-2(b)(2).
7.2.    If a Participant makes a Deferral Election, the Participant’s Deferral Election may not be revoked or modified except as permitted by Section 409A of the Code. 

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7.3.    Notwithstanding any Deferral Election, the vested portion of a Participant’s Incentive Award Account(s) shall be paid on (or as soon as practicable following) the Participant’s Separation from Service, death or becoming Disabled, or the occurrence of a Change of Control.  Notwithstanding the foregoing, to the extent required by Section 409A of the Code, in the case of a Participant who is a Specified Employee, no portion of the Participant’s Incentive Award Account otherwise payable on the Participant’s Separation from Service shall be paid until the earlier of (a) the date that is six months after the Participant’s Separation from Service under Section 409A of the Code, or (b) the date of the Participant’s death.  Amounts paid in the event of the Participant’s death shall be paid to the Participant’s surviving spouse or, if none, to the Participant’s estate.
8.    Establishment of Trust.  The Company shall establish a trust to fund the payment of Incentive Award Accounts (the “Trust”), and the assets of such Trust may be invested in Common Stock following the date on which the member(s) of the Company approve this Plan and the Committee designates the use of Common Stock as a notional investment under this Plan.  Notwithstanding the establishment of such trust, (a) all credits and adjustments to a Participant’s Incentive Award Account shall be bookkeeping entries only and shall not represent a special reserve or otherwise constitute a funding of the Company’s unsecured promise to pay any amounts hereunder, and (b) to the extent that a Participant or any other person acquires a right to receive payments from the Company under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Company, and such person has only the unsecured promise of the Company that such payments shall be made.  The Plan is intended to be an unfunded incentive program exempt from the Employee Retirement Income Security Act of 1974, as amended, pursuant to 29 C.F.R. §2510.3-2(c). 
9.    Stock Subject to Plan.  
9.1.    Subject to adjustment as provided in Section ‎9.2 hereof, the maximum number of Shares that may be purchased by the Trust is 2,000,000; provided that notwithstanding the foregoing limitation, any dividends paid on Shares held by the Trust may be reinvested in Common Stock. 
9.2.    In the event of any change in the outstanding Common Stock by reason of any stock dividend, split-up, recapitalization, reclassification, combination or exchange of shares, merger, consolidation, liquidation or the like, the Committee may, in its discretion, provide for a substitution for or adjustment in the maximum number of Shares that may be issued under this Plan.
10.    Termination or Amendment.  The Board may amend or terminate this Plan in any respect at any time; provided, however, that after this Plan has been approved by the member(s) of the Company, no amendment or termination of this Plan shall be made by the Board without approval of (a) the member(s) of the Company to the extent member approval of the amendment is required by applicable law or regulations or the requirements of the principal exchange or interdealer quotation system on which the 

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Common Stock is listed or quoted, if any, and (b) each affected Participant if such amendment or termination would adversely affect such Participant’s rights or obligations under any Incentive Award made prior to the date of such amendment or termination. 
11.    Modification of Outstanding Awards.  Subject to the terms and conditions of this Plan, the Committee may modify the terms of any outstanding Awards; provided, however, that no modification (a) of an Incentive Award shall, without the consent of the Participant, alter or impair any of the Participant’s rights or obligations under such Award, or (b) of an Award shall violate Section 409A of the Code.
12.    Member Approval.  This Plan and any amendments to this Plan requiring member approval pursuant to Section ‎10 hereof, are subject to approval by vote of all the member(s) of the Company.  Subject to such approval, this Plan, and any amendments hereto, are effective on the date on which they are adopted by the Board.  
13.    Withholding.  Notwithstanding anything herein, in order to satisfy any withholding obligations under federal, state or local law in respect of amounts paid (whether in cash, Shares or other property) or credited to a Participant under this Plan, the Company and its Affiliates shall have the right to (a) withhold such amounts from any payment to be made pursuant to this Plan or any other payment to be made to a Participant by the Company or any of its Affiliates, or (b) reduce the number of Shares (or other amount) credited or to be credited to a Participant’s Incentive Award Account.
14.    Term of Plan.  Unless sooner terminated by the Board pursuant to Section ‎10 hereof, this Plan shall terminate on January 24, 2027, and no Awards may be granted after such date, unless the term of the Plan shall be extended by vote of the Company’s member(s).  The termination of this Plan shall not affect the validity of any Award outstanding on the date of termination. 
15.    Indemnification of Committee.  In addition to such other rights of indemnification as they may have as employees or members of the Board or the Committee, members of the Committee (and such person(s) to whom the Committee delegates its powers or responsibilities) shall be indemnified by the Company against all reasonable expenses, including attorneys’ fees, actually and reasonably incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with this Plan or any Award granted hereunder, and against all amounts reasonably paid by them in settlement thereof or paid by them in satisfaction of a judgment in any such action, suit or proceeding, if such members acted in good faith and in a manner which they believed to be in, and not opposed to, the best interests of the Company.

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16.    General Provisions.
16.1.    The establishment of this Plan shall not confer upon any Service Provider any legal or equitable right against the Company, any Affiliate or the Committee, except as expressly provided in this Plan.
16.2.    Participation in this Plan shall not give a Service Provider any right to be retained in the service of the Company or any Affiliate.
16.3.    The interests of any Service Provider under this Plan are not subject to the claims of such Service Provider’s creditors and may not, in any way, be assigned, alienated or encumbered except to the extent provided in an Agreement.  
16.4.    This Plan shall be governed, construed and administered in accordance with the laws of the State of Delaware.
16.5.    The Committee may require any Participant who is issued Shares or other property hereunder to represent to and agree with the Company in writing that such person is acquiring the Shares or other property without a view to distribution thereof.  The certificates for such Shares or other property may include any legend which the Committee deems appropriate to reflect any restrictions on transfer.  All certificates for Shares or other property issued pursuant to this Plan shall be subject to such stock transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Common Stock is then listed or interdealer quotation system upon which the Common Stock is then quoted, and any applicable federal or state securities laws.  The Committee may place a legend or legends on any such certificates to make appropriate reference to such restrictions. 
16.6.    The Company shall not be required to issue any certificate or certificates for Shares or other property issued under this Plan, or record any person as a holder of record of such Shares or other property, without obtaining, to the complete satisfaction of the Committee, the approval of all regulatory bodies deemed necessary by the Committee, and without complying to the Board’s or Committee’s complete satisfaction, with all rules and regulations, under federal, state or local law deemed applicable by the Committee.
16.7.    This Plan is intended to comply with Section 409A of the Code to the extent applicable, and the Committee shall administer and interpret this Plan accordingly.  

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