Document:

Form of Ally Financial Inc. 2011 Non-Employee Directors Equity Compensation Plan

 Exhibit 10.29 
 ALLY FINANCIAL INC. 
 2011 NON-EMPLOYEE DIRECTORS EQUITY COMPENSATION PLAN

 SECTION 1. Purpose. The purpose of the Ally Financial Inc. 2011 Non-Employee Directors Equity Compensation
Plan (the “Plan”) is to attract and retain the services of experienced non-employee directors of Ally Financial Inc. (the “Company”) by providing them with equity-based compensation for their services, thereby
furthering the best interests of the Company and its shareholders. 
 SECTION 2. Definitions. As used in the Plan,
the following terms shall have the meanings set forth below: 
 (a) “Annual Award” means an Award granted under
Section 10(a). 
 (b) “Award” means any Option, DSU or Share award granted under the Plan. 

(c) “Award Agreement” means any agreement, contract or other instrument or document evidencing any Award granted under
the Plan, which may, but need not, be executed or acknowledged by a Participant. 
 (d) “Beneficiary” means a
person entitled to receive payments or other benefits or exercise rights that are available under the Plan in the event of the Participant’s death. If no such person is named by a Participant, or if no Beneficiary designated by the Participant
is eligible to receive payments or other benefits or exercise rights that are available under the Plan at the Participant’s death, such Participant’s Beneficiary shall be such Participant’s estate. 

(e) “Board” means the board of directors of the Company. 

(f) “Change in Control” has the meaning set forth in the Ally Financial Inc. 2011 Incentive Compensation Plan, as
amended and restated from time to time. 
 (g) “Code” means the Internal Revenue Code of 1986, as amended from
time to time, and the rules, regulations and guidance thereunder. Any reference to a provision in the Code shall include any successor provision thereto. 
 (h) “Committee” means the Compensation, Nominating and Governance Committee of the Board or other committee of the Board, in either

 
case designated by the Board to administer the Plan, or if no committee is designated, the Board. 
 (i) “Director” means a member of the Board who is not an employee of the Company or any subsidiary thereof. 
 (j) “Disability” has the meaning set forth in the Ally Financial Inc. 2011 Incentive Compensation Plan, as amended and restated from time to time. 

(k) “DSU” means a contractual right granted under the Plan that is denominated in Shares. Each DSU represents a right to
receive the value of one Share on the terms and conditions set forth in the Plan and the applicable Award Agreement. Awards of DSUs may include the right to receive dividend equivalents. 

(l) “Effective Date” means the date on which the Plan is or has been both adopted by the Board and approved by the
shareholders of the Company. 
 (m) “Fair Market Value” means (i) with respect to a Share, the closing
price of a Share on the date in question (or, if there is no reported sale on such date, on the last preceding date on which any reported sale occurred) on the principal stock market or exchange on which the Shares are quoted or traded, or if Shares
are not so quoted or traded, the fair market value of a Share as determined by the Committee, and (ii) with respect to any property other than Shares, the fair market value of such property determined by such methods or procedures as shall be
established from time to time by the Committee. 
 (n) “Initial Award” means an Award granted under
Section 9(a) or Section 9(b). 
 (o) “Option” means an option granted under the Plan to purchase
Shares on the terms and conditions set forth in the Plan and the applicable Award Agreement. 
 (p)
“Participant” means the recipient of an Award granted under the Plan. 
 (q) “Prorated Annual
Award” means an Award granted under Section 10(b). 
 (r) “Shares” means shares of the
Company’s common stock. 
 SECTION 3. Eligibility. Each Director shall be eligible to receive an Award under
the Plan. 

  
 2 

 SECTION 4. Administration.  

(a) The Plan shall be administered by the Committee. 
 (b) Subject to the terms of the Plan and applicable law, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards to be
granted to each Participant under the Plan; (iii) determine the number of Shares to be covered by (or with respect to which payments, rights or other matters are to be calculated in connection with) Awards; (iv) determine the terms and
conditions of any Award; (v) determine whether, to what extent and under what circumstances Awards may be settled or exercised in cash, Shares, other Awards, other property, net settlement, or any combination thereof, or canceled, forfeited or
suspended, and the method or methods by which Awards may be settled, exercised, canceled, forfeited or suspended; (vi) determine whether, to what extent and under what circumstances cash, Shares, other Awards, other property and other amounts
payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or of the Committee; (vii) interpret and administer the Plan and any instrument or agreement relating to, or Award
made under, the Plan; (viii) establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (ix) make any other determination and take any
other action that the Committee deems necessary or desirable for the administration of the Plan. 
 (c) All decisions of the
Committee shall be final, conclusive and binding upon all parties, including the Company, its shareholders and Participants and any Beneficiaries thereof. 
 SECTION 5. Shares Available for Awards.  
 (a) Subject to adjustment
as provided in Section 5(c), the maximum number of Shares available for issuance under the Plan shall not exceed              Shares. 

(b) Any Shares subject to an Award that expires, is canceled, forfeited or otherwise terminates without the delivery of such Shares,
including (i) any Shares surrendered or withheld in payment of any grant, purchase or exercise price of an Award and (ii) any Shares subject to an Award to the extent that the Award is settled without the issuance of Shares, shall again
be, or shall become, available for issuance under the Plan. 
 (c) In the event that, as a result of any dividend or other
distribution (whether in the form of cash, Shares or other securities), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities
of the Company, or other similar corporate transaction or event affecting the Shares, an adjustment is necessary in order to prevent diminution or 

  
 3 

 
enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall adjust equitably any or all of: 

(i) the number and type of Shares (or other securities) which thereafter may be made the subject of Awards, including the
Share limit specified in Section 5(a); 
 (ii) the number and type of Shares (or other securities) subject
to outstanding Awards; and 
 (iii) the grant, purchase, exercise or hurdle price with respect to any Award or,
if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award; 
 provided, however, that the number of
Shares subject to any Award shall always be a whole number. 
 (d) Any Shares delivered pursuant to an Award may consist, in
whole or in part, of authorized and unissued Shares or Shares acquired by the Company. 
 SECTION 6 Options. The
Committee is authorized to grant and provide for the automatic grant of Options to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan,
as the Committee shall determine: 
 (a) The exercise price per Share under an Option shall be determined by the Committee;
provided, however, that such exercise price shall not be less than the Fair Market Value of a Share on the date of grant of such Option. 
 (b) The term of each Option shall be fixed by the Committee but shall not exceed 10 years from the date of grant of such Option. 
 (c) The Committee shall determine the time or times at which an Option may be exercised in whole or in part. 
 (d) The Committee shall determine the method or methods by which, and the form or forms, including cash, Shares (including Shares underlying an Option), other Awards, other property, or any combination
thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price, in which payment of the exercise price with respect thereto may be made or deemed to have been made. 

  
 4 

 SECTION 7. DSUs. The Committee is authorized to grant DSUs to Participants with
the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine. 

(a) DSUs shall be subject to no restrictions or such restrictions as the Committee may impose (including any limitation on the right to
receive any dividend equivalent or other right), which restrictions may lapse separately or in combination at such time or times, in such installments or otherwise, as the Committee may deem appropriate. Without limiting the generality of the
foregoing, if a DSU Award relates to Shares on which dividends are declared during the period that the Award is outstanding, the Award shall not provide for the payment of a dividend equivalent to the Participant prior to the time at which such
Award, or applicable portion thereof, becomes nonforfeitable. 
 (b) Unless otherwise specifically provided in an Award
Agreement, no DSU Award shall be settled and no Shares shall be delivered in respect thereof prior to the Participant’s termination of service. 
 (c) The Committee may determine the form or forms (including cash, Shares, other property or any combination thereof) in which payment of the amount owing upon settlement of any DSU Award may be made.

 SECTION 8. Share Awards. The Committee is authorized to grant Shares to Participants with no restrictions or such
restrictions as the Committee may impose. 
 SECTION 9. Initial Award. 

(a) Each Director who is in office as of, and will continue in office following,
            , 2011 shall be granted a one-time Award of a number of DSUs equal to the quotient of (i) $110,000 divided by (ii) the Fair Market Value of a Share on
the date of such grant, with each fractional DSU rounded up to the nearest whole DSU. 
 (b) Each new Director who is elected or
appointed to the Board for the first time following             , 2011 shall be granted a one-time Award of a number of DSUs equal to the quotient of (i) $110,000 divided
by (ii) the Fair Market Value of a Share on the date of such Director’s initial election or appointment to the Board, with each fractional DSU rounded up to the nearest whole DSU. For the avoidance doubt, any Participant who has
received an Initial Award under Section 9(a) shall not be eligible to receive an Initial Award under this Section 9(b). 
 (c) Notwithstanding Section 9(a) and Section 9(b), prior to the grant date of any Initial Award, the Committee shall have the right to make adjustments to the amount and form of such Initial
Award. 

  
 5 

 SECTION 10. Annual Award.  

(a) Beginning at the Company’s Annual Meeting of Shareholders in calendar year 2012 and at each Annual Meeting of Shareholders
thereafter, each Director who is to continue in office following such meeting shall be granted an Award of a number of DSUs equal to the quotient of (i) $110,000 divided by (ii) the Fair Market Value of a Share on the date of such
grant, with each fractional DSU rounded up to the nearest whole DSU. For the avoidance of doubt, Annual Award(s) received by a Participant under this Section 10(a) shall be in addition to any Initial Award received by such Participant under
Section 9(a) or Section 9(b). 
 (b) In the event that a Director joins the Board following the grant date of an
Annual Award but prior to the date of the Company’s next Annual Meeting of Shareholders, such Director shall be granted a prorated Annual Award of a number of DSUs equal to the product of (i) the number of months from the date he or she
joins the Board until the date of the Company’s next Annual Meeting of Shareholders (counting the month of joining and the month of the Company’s next Annual Meeting of Shareholders as full months) multiplied by (ii) the
quotient of (a) the number of DSUs in the Annual Award that immediately precedes the grant of such prorated Annual Award divided by (b) 12. 
 (c) Notwithstanding Section 10(a) and Section 10(b), prior to the grant date of any Annual Award or Prorated Annual Award, the Committee shall have the right to make adjustments to the amount
and form of such Annual Award or Prorated Annual Award. 
 SECTION 11. Effect of Termination of Service on Awards.
Except as may otherwise specifically be provided in an Award Agreement, Awards granted hereunder shall be subject to the following provisions in the event a Participant’s service is terminated while such Award is outstanding and prior to the
settlement thereof. 
 (a) If a Participant’s service terminates due to death or Disability, any unvested Awards shall
become nonforfeitable on the date of such termination of service. 
 (b) If a Participant’s service terminates for reasons
other than death or Disability, any unvested Awards shall be forfeited on the date of such termination of service. 
 (c) Any
vested Awards other than Options shall be settled within 75 days of termination of service, and any vested Options shall remain exercisable for one year from the date of termination of service. 

  
 6 

 SECTION 12. Effect of Change in Control on Awards. In the event of a Change in
Control, unless otherwise specifically provided in an Award Agreement, all outstanding Awards shall become fully exercisable, shall vest and shall be settled, as applicable, and any restrictions applicable to any Award shall automatically lapse.

 SECTION 13. General Provisions Applicable to Awards.  

(a) Awards shall be granted for no cash consideration or for such minimal cash consideration as may be required by applicable law.

 (b) Awards may, in the discretion of the Committee, be granted either alone or in addition to or in tandem with any other
Award or any award granted under any other plan of the Company. Awards granted in addition to or in tandem with other Awards, or in addition to or in tandem with awards granted under any other plan of the Company, may be granted either at the same
time as or at a different time from the grant of such other Awards or awards. 
 (c) Subject to the terms of the Plan, payments
or transfers to be made by the Company upon the grant, exercise or settlement of an Award may be made in the form of cash, Shares, other Awards, other property, net settlement, or any combination thereof, as determined by the Committee in its
discretion, and may be made in a single payment or transfer, in installments or on a deferred basis, in each case in accordance with rules and procedures established by the Committee. Such rules and procedures may include provisions for the payment
or crediting of reasonable interest on installment or deferred payments or the grant or crediting of dividend equivalents in respect of installment or deferred payments. 
 (d) Except as may specifically be permitted by the Committee or as specifically provided in an Award Agreement, (i) no Award and no right under any Award shall be assignable, alienable, saleable or
transferable by a Participant otherwise than by will or pursuant to Section 13(e) and (ii) during a Participant’s lifetime, each Award, and each right under any Award, shall be exercisable only by the Participant or, if permissible
under applicable law, by the Participant’s guardian or legal representative; provided, however, that the Committee shall not permit, and an Award Agreement shall not provide for, any Award to be transferred or transferable to a third
party for value or consideration without the approval of shareholders. The provisions of this Section 13(d) shall not apply to any Award that has been fully exercised or settled, as the case may be, and shall not preclude forfeiture of an Award
in accordance with the terms thereof. 
 (e) A Participant may designate a Beneficiary or change a previous Beneficiary
designation at such times prescribed by the Committee by using forms and following procedures approved or accepted by the Committee for that purpose. 

  
 7 

 (f) All certificates for, or other indicia of, Shares and/or other securities delivered
under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations and other requirements of the Securities
and Exchange Commission, any stock market or exchange upon which such Shares or other securities are then quoted, traded or listed, and any applicable securities laws, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions. 
 SECTION 14. Amendments and Termination. 

 (a) Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award Agreement or in the
Plan, the Board may amend, alter, suspend, discontinue or terminate the Plan or any portion thereof at any time; provided, however, that no such amendment, alteration, suspension, discontinuation or termination shall be made without
(i) shareholder approval if such approval is required by applicable law or the rules of the stock market or exchange, if any, on which the Shares are principally quoted or traded or (ii) the consent of the affected Participant, if such
action would materially adversely affect the rights of such Participant under any outstanding Award, except to the extent any such amendment, alteration, suspension, discontinuance or termination is made to cause the Plan to comply with applicable
law, stock market or exchange rules and regulations or accounting or tax rules and regulations. Notwithstanding anything to the contrary in the Plan, the Board may amend the Plan in such manner as may be necessary to enable the Plan to achieve its
stated purposes in any jurisdiction in a tax-efficient manner and in compliance with local rules and regulations. 
 (b) The
Committee may waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue or terminate any Award theretofore granted, prospectively or retroactively, without the consent of any relevant Participant or holder or
Beneficiary of an Award; provided, however, that no such action shall materially adversely affect the rights of any affected Participant or holder or Beneficiary under any Award theretofore granted under the Plan, except to the extent any
such action is made to cause the Plan to comply with applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations; provided further that, except as provided in Section 5(c), the Committee
shall not without the approval of the Company’s shareholders (i) lower the exercise price per Share of an Option after it is granted or take any other action that would be treated as a repricing of such Award under the rules of the
principal U.S. stock market on which the Company’s Shares are traded, or (ii) cancel an Option when the exercise price per Share exceeds the Fair Market Value in exchange for cash or another Award (other than in connection with a Change in
Control); and provided further that the Committee’s authority under this Section 14(b) is limited by the provisions of Section 13(d). 

  
 8 

 (c) The Committee shall be authorized to make adjustments in the terms and conditions of,
and the criteria included in, Awards in recognition of events (including the events described in Section 5(c)) affecting the Company, or the financial statements of the Company, or of changes in applicable laws, regulations or accounting
principles, whenever the Committee determines that such adjustments are appropriate in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan. 

(d) The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and
to the extent it shall deem desirable to carry the Plan into effect. 
 SECTION 15. Miscellaneous.  

(a) The grant of an Award shall not be construed as giving a Participant the right to be retained in the service of the Board or the
Company. The receipt of any Award under the Plan is not intended to confer any rights on the receiving Participant except as set forth herein and in the applicable Award Agreement. 

(b) Nothing contained in the Plan shall prevent the Company from adopting or continuing in effect other or additional compensation
arrangements, and such arrangements may be either generally applicable or applicable only in specific cases. 
 (c) The Company
shall be authorized to withhold from any Award granted or any payment due or transfer made under any Award or under the Plan or from any compensation or other amount owing to a Participant the amount (in cash, Shares, other Awards, other property,
net settlement, or any combination thereof) of applicable withholding taxes due in respect of an Award, its exercise or settlement or any payment or transfer under such Award or under the Plan and to take such other action (including providing for
elective payment of such amounts in cash or Shares by the Participant) as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such taxes. 

(d) If any provision of the Plan or any Award Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any
jurisdiction, or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so
construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award Agreement, such provision shall be stricken as to such jurisdiction, person or Award, and the remainder of the Plan
and any such Award Agreement shall remain in full force and effect. 

  
 9 

 (e) To the extent that any person acquires a right to receive payments from the Company
pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company. 
 (f) No
fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash or other securities shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or
any rights thereto shall be canceled, terminated or otherwise eliminated. 
 SECTION 16. Effective Date of the Plan.
The Plan shall be effective as of the Effective Date. 
 SECTION 17. Term of the Plan. No Award shall be granted
under the Plan after the earliest to occur of (i) the tenth year anniversary of the Effective Date, (ii) the maximum number of Shares available for issuance under the Plan have been issued or (iii) the Board terminates the Plan in
accordance with Section 14(a). However, unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award theretofore granted may extend beyond such date, and the authority of the Committee to amend, alter, adjust,
suspend, discontinue or terminate any such Award, or to waive any conditions or rights under any such Award, and the authority of the Board to amend the Plan, shall extend beyond such date. 

SECTION 18. Section 409A of the Code. With respect to Awards subject to Section 409A of the Code, the Plan is
intended to comply with the requirements of Section 409A of the Code, and the provisions of the Plan and any Award Agreement shall be interpreted in a manner that satisfies the requirements of Section 409A of the Code, and the Plan shall
be operated accordingly. If any provision of the Plan or any term or condition of any Award would otherwise frustrate or conflict with this intent, the provision, term or condition will be interpreted and deemed amended so as to avoid this
conflict.  
 SECTION 19. Governing Law. The Plan and each Award Agreement shall be governed by the laws of
the State of Michigan, without application of the conflicts of law principles thereof. 

  
 10Exhibit 10.1 -- PAETEC Holding Corp. 2011 Omnibus Incentive Plan

 Exhibit 10.1 

 
  

 
 PAETEC
HOLDING CORP. 
 2011 OMNIBUS INCENTIVE PLAN 

 
  

 TABLE OF CONTENTS 

 

									
	 	 	 	 	 	  	Page	 
	1.	 	PURPOSE	  	 	1	  
	2.	 	DEFINITIONS	  	 	1	  
	3.	 	ADMINISTRATION OF THE PLAN	  	 	6	  
		 	3.1.	 	Committee.	  	 	6	  
		 		 	 3.1.1.  Powers and Authorities.
	  	 	6	  
		 		 	 3.1.2.  Composition of Committee.
	  	 	6	  
		 		 	 3.1.3.  Other Committees.
	  	 	6	  
		 	3.2.	 	Board.	  	 	6	  
		 	3.3.	 	Terms of Awards.	  	 	7	  
		 		 	 3.3.1.  Committee Authority.
	  	 	7	  
		 		 	 3.3.2.  Forfeiture; Recoupment.
	  	 	7	  
		 	3.4.	 	No Repricing.	  	 	8	  
		 	3.5.	 	Deferral Arrangement.	  	 	8	  
		 	3.6.	 	No Liability.	  	 	8	  
		 	3.7.	 	Registration; Share Certificates.	  	 	8	  
	4.	 	STOCK SUBJECT TO THE PLAN	  	 	8	  
		 	4.1.	 	Number of Shares of Stock Available for Awards.	  	 	8	  
		 	4.2.	 	Adjustments in Authorized Shares of Stock.	  	 	8	  
		 	4.3.	 	Share Usage.	  	 	9	  
	5.	 	EFFECTIVE DATE; TERM; AMENDMENT AND TERMINATION	  	 	9	  
		 	5.1.	 	Effective Date.	  	 	9	  
		 	5.2.	 	Term.	  	 	9	  
		 	5.3.	 	Amendment and Termination.	  	 	9	  
	6.	 	AWARD ELIGIBILITY AND LIMITATIONS	  	 	10	  
		 	6.1.	 	Eligible Grantees.	  	 	10	  
		 	6.2.	 	Limitation on Shares of Stock Subject to Awards and Cash Awards.	  	 	10	  
		 	6.3.	 	Stand-Alone, Additional, Tandem and Substitute Awards.	  	 	10	  
	7.	 	AWARD AGREEMENT	  	 	11	  
	8.	 	TERMS AND CONDITIONS OF OPTIONS	  	 	11	  
		 	8.1.	 	Option Price.	  	 	11	  
		 	8.2.	 	Vesting.	  	 	11	  
		 	8.3.	 	Term.	  	 	11	  
		 	8.4.	 	Termination of Service.	  	 	11	  
		 	8.5.	 	Limitations on Exercise of Option.	  	 	11	  
		 	8.6.	 	Method of Exercise.	  	 	11	  
		 	8.7.	 	Rights of Holders of Options.	  	 	12	  
		 	8.8.	 	Delivery of Stock.	  	 	12	  
		 	8.9.	 	Transferability of Options.	  	 	12	  
		 	8.10.	 	Family Transfers.	  	 	12	  
		 	8.11.	 	Limitations on Incentive Stock Options.	  	 	12	  
		 	8.12.	 	Notice of Disqualifying Disposition.	  	 	13	  
	9.	 	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS	  	 	13	  
		 	9.1.	 	Right to Payment and Grant Price.	  	 	13	  
		 	9.2.	 	Other Terms.	  	 	13	  
		 	9.3.	 	Term.	  	 	13	  
		 	9.4.	 	Transferability of SARs.	  	 	13	  
		 	9.5.	 	Family Transfers.	  	 	13	  
	10.	 	TERMS AND CONDITIONS OF RESTRICTED STOCK AND DEFERRED STOCK UNITS	  	 	14	  
		 	10.1.	 	Grant of Restricted Stock or Deferred Stock Units.	  	 	14	  

  
 i 

									
		 	10.2.	 	Restrictions.	  	 	14	  
		 	10.3.	 	Registration; Restricted Share Certificates.	  	 	14	  
		 	10.4.	 	Rights of Holders of Restricted Stock.	  	 	15	  
		 	10.5.	 	Rights of Holders of Deferred Stock Units.	  	 	15	  
		 		 	 10.5.1.  Voting and Dividend Rights.
	  	 	15	  
		 		 	 10.5.2.  Creditor’s Rights.
	  	 	15	  
		 	10.6.	 	Termination of Service.	  	 	15	  
		 	10.7.	 	Purchase of Restricted Stock and Shares of Stock Subject to Deferred Stock Units.	  	 	16	  
		 	10.8.	 	Delivery of Shares of Stock.	  	 	16	  
	11.	 	TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY- BASED AWARDS	  	 	16	  
		 	11.1.	 	Unrestricted Stock Awards.	  	 	16	  
		 	11.2.	 	Other Equity-Based Awards.	  	 	16	  
	12.	 	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK	  	 	17	  
		 	12.1.	 	General Rule.	  	 	17	  
		 	12.2.	 	Surrender of Shares of Stock.	  	 	17	  
		 	12.3.	 	Cashless Exercise.	  	 	17	  
		 	12.4.	 	Other Forms of Payment.	  	 	17	  
	13.	 	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS	  	 	17	  
		 	13.1.	 	Dividend Equivalent Rights.	  	 	17	  
		 	13.2.	 	Termination of Service.	  	 	18	  
	14.	 	TERMS AND CONDITIONS OF PERFORMANCE-BASED AWARDS	  	 	18	  
		 	14.1.	 	Grant of Performance-Based Awards.	  	 	18	  
		 	14.2.	 	Value of Performance-Based Awards.	  	 	18	  
		 	14.3.	 	Earning of Performance-Based Awards.	  	 	18	  
		 	14.4.	 	Form and Timing of Payment of Performance-Based Awards.	  	 	18	  
		 	14.5.	 	Performance Conditions.	  	 	19	  
		 	14.6.	 	Performance-Based Awards Granted to Designated Covered Employees.	  	 	19	  
		 		 	 14.6.1.  Performance Goals Generally.
	  	 	19	  
		 		 	 14.6.2.  Timing For Establishing Performance Goals.
	  	 	19	  
		 		 	 14.6.3.  Settlement of Awards; Other Terms.
	  	 	19	  
		 		 	 14.6.4.  Performance Measures.
	  	 	19	  
		 		 	 14.6.5.  Evaluation of Performance.
	  	 	21	  
		 		 	 14.6.6.  Adjustment of Performance-Based Compensation.
	  	 	21	  
		 		 	 14.6.7.  Committee Discretion.
	  	 	21	  
		 	14.7.	 	Status of Awards Under Code Section 162(m).	  	 	21	  
	15.	 	PARACHUTE LIMITATIONS	  	 	22	  
	16.	 	REQUIREMENTS OF LAW	  	 	22	  
		 	16.1.	 	General.	  	 	22	  
		 	16.2.	 	Rule 16b-3.	  	 	23	  
	17.	 	EFFECT OF CHANGES IN CAPITALIZATION	  	 	23	  
		 	17.1.	 	Changes in Stock.	  	 	23	  
		 	17.2.	 	Reorganization in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control.	  	 	24	  
		 	17.3.	 	Change in Control in which Awards are not Assumed.	  	 	24	  
		 	17.4.	 	Change in Control in which Awards are Assumed.	  	 	25	  
		 	17.5.	 	Adjustments	  	 	25	  
		 	17.6.	 	No Limitations on Company.	  	 	25	  
	18.	 	GENERAL PROVISIONS	  	 	26	  
		 	18.1.	 	Disclaimer of Rights.	  	 	26	  
		 	18.2.	 	Nonexclusivity of the Plan.	  	 	26	  
		 	18.3.	 	Withholding Taxes.	  	 	26	  

  
 ii 

									
		 	18.4.	 	Captions.	  	 	27	  
		 	18.5.	 	Other Provisions.	  	 	27	  
		 	18.6.	 	Number and Gender.	  	 	27	  
		 	18.7.	 	Severability.	  	 	27	  
		 	18.8.	 	Governing Law.	  	 	27	  
		 	18.9.	 	Section 409A of the Code.	  	 	28	  

  
 iii

 PAETEC HOLDING CORP. 

2011 OMNIBUS INCENTIVE PLAN 
 PAETEC Holding Corp., a Delaware corporation (the “Company”), sets forth herein the terms of its 2011 Omnibus Incentive Plan (the “Plan”), as follows: 

 

	1.	PURPOSE 

 The Plan is
intended to (a) provide eligible persons with an incentive to contribute to the success of the Company and to operate and manage the Company’s business in a manner that will provide for the Company’s long-term growth and profitability
to benefit its stockholders and other important stakeholders, including its employees and customers, and (b) provide a means of obtaining, rewarding and retaining key personnel. To this end, the Plan provides for the grant of awards of stock
options, stock appreciation rights, restricted stock, deferred stock units, unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards, and cash. Any of these awards may, but need
not, be made as performance incentives to reward the holders of such awards for the achievement of performance goals in accordance with the terms of the Plan. Stock options granted under the Plan may be non-qualified stock options or incentive stock
options, as provided herein. 
  

	2.	DEFINITIONS 

 For purposes
of interpreting the Plan documents (including the Plan and Award Agreements), the following definitions shall apply: 
 2.1
“Affiliate” means any company or other entity that controls, is controlled by or is under common control with the Company within the meaning of Rule 405 of Regulation C under the Securities Act, including any Subsidiary. For
purposes of grants of Options or Stock Appreciation Rights, an entity may not be considered an Affiliate unless the Company holds a “controlling interest” in such entity within the meaning of Treasury Regulation
Section 1.414(c)-2(b)(2)(i), provided that (a) except as specified in clause (b) below, an interest of “at least 50 percent” shall be used instead of an interest of “at least 80 percent” in each case where
“at least 80 percent” appears in Treasury Regulation Section 1.414(c)-2(b)(2)(i) and (b) where the grant of Options or Stock Appreciation Rights is based upon a legitimate business criterion, an interest of “at least 20
percent” shall be used instead of an interest of “at least 80 percent” in each case where “at least 80 percent” appears in Treasury Regulation Section 1.414(c)-2(b)(2)(i). 

2.2 “Applicable Laws” means the legal requirements relating to the Plan and the Awards under (a) applicable
provisions of the corporate, securities, tax and other laws, rules, regulations and government orders of any jurisdiction applicable to Awards granted to residents therein and (b) the rules of any Stock Exchange on which the Stock is listed.

 2.3 “Award” means a grant under the Plan of an Option, a Stock Appreciation Right, Restricted Stock, a
Deferred Stock Unit, Unrestricted Stock, a Dividend Equivalent Right, a Performance Share or other Performance-Based Award, an Other Equity-Based Award, or cash. 
 2.4 “Award Agreement” means the agreement between the Company and a Grantee that evidences and sets out the terms and conditions of an Award. 

2.5 “Award Stock” shall have the meaning set forth in Section 17.3(a)(ii). 

2.6 “Benefit Arrangement” shall have the meaning set forth in Section 15. 

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

  
 1 

 2.8 “Cause” means, with respect to any Grantee, as determined by the
Committee and unless otherwise provided in an applicable agreement between such Grantee and the Company or an Affiliate, (a) gross negligence or willful misconduct in connection with the performance of duties; (b) conviction of a criminal
offense (other than minor traffic offenses); or (c) material breach of any term of any employment, consulting or other services, confidentiality, intellectual property or non-competition agreements, if any, between such Grantee and the Company
or an Affiliate. Any determination by the Committee whether an event constituting Cause shall have occurred shall be final, binding and conclusive. 
 2.9 “Change in Control” means (a) the dissolution or liquidation of the Company or a merger, consolidation, or reorganization of the Company with one or more other entities in which
the Company is not the surviving entity, (b) a sale of substantially all of the assets of the Company to another person or entity or (c) any transaction (including without limitation a merger or reorganization in which the Company is the
surviving entity) which results in any person or entity owning fifty percent (50%) or more of the combined voting power of all classes of stock of the Company. 
 2.10 “Code” means the Internal Revenue Code of 1986, as amended, as now in effect or as hereafter amended, and any successor thereto. 

2.11 “Committee” means a committee of, and designated from time to time by resolution of, the Board, which shall be
constituted as provided in Section 3.1.2 and Section 3.1.3 (or, if no Committee has been so designated, the Board). 
 2.12 “Company” means PAETEC Holding Corp., a Delaware corporation. 
 2.13 “Covered Employee” means a Grantee who is a “covered employee” within the meaning of Code Section 162(m)(3). 

2.14 “Deferred Stock Unit” means a bookkeeping entry representing the equivalent of one (1) share of Stock awarded
to a Grantee pursuant to Section 10 that (a) is not subject to vesting or (b) is subject to time-based vesting, but not to performance-based vesting. A Deferred Stock Unit may also be referred to as a restricted stock unit.

 2.15 “Determination Date” means the Grant Date or such other date as of which the Fair Market Value of a
share of Stock is required to be established for purposes of the Plan. 
 2.16 “Disability” means the inability
of a Grantee to perform each of the essential duties of such Grantee’s position by reason of a medically determinable physical or mental impairment which is potentially permanent in character or which can be expected to last for a continuous
period of not less than 12 months; provided that, with respect to rules regarding expiration of an Incentive Stock Option following termination of a Grantee’s Service, Disability shall mean the inability of such Grantee to engage in any
substantial gainful activity by reason of a medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. 

2.17 “Dividend Equivalent Right” means a right, granted to a Grantee pursuant to Section 13, to receive
cash, Stock, other Awards or other property equal in value to dividends or other periodic payments paid or made with respect to a specified number of shares of Stock. 
 2.18 “Employee” means, as of any date of determination, an employee (including an officer) of the Company or an Affiliate. 

2.19 “Effective Date” means June 2, 2011, the date on which the Plan was approved by the Company’s stockholders.

  
 2 

 2.20 “Exchange Act” means the Securities Exchange Act of 1934, as amended,
as now in effect or as hereafter amended. 
 2.21 “Fair Market Value” means the fair market value of a share of
Stock for purposes of the Plan, which shall be determined as of any Determination Date as follows: 
 (a) If on
such Determination Date the shares of Stock are listed on a Stock Exchange, or are publicly traded on another established securities market (a “Securities Market”), the Fair Market Value of a share of Stock shall be the closing
price of the Stock as reported on such Stock Exchange or such Securities Market (provided that, if there is more than one such Stock Exchange or Securities Market, the Committee shall designate the appropriate Stock Exchange or Securities
Market for purposes of the Fair Market Value determination). If there is no such reported closing price on such Determination Date, the Fair Market Value of a share of Stock shall be the closing price of the Stock on the next preceding day on which
any sale of Stock shall have been reported on such Stock Exchange or such Securities Market. 
 (b) If on such
Determination Date the shares of Stock are not listed on a Stock Exchange or publicly traded on a Securities Market, the Fair Market Value of a share of Stock shall be the value of the Stock as determined by the Committee by the reasonable
application of a reasonable valuation method, in a manner consistent with Code Section 409A. 
 Notwithstanding this
Section 2.21 or Section 18.3, for purposes of determining taxable income and the amount of the related tax withholding obligation pursuant to Section 18.3, for any shares of Stock subject to an Award that are sold
by or on behalf of a Grantee on the same date on which such shares may first be sold pursuant to the terms of the related Award Agreement, the Fair Market Value of such shares shall be the sale price of such shares on such date (or if sales of such
shares are effectuated at more than one sale price, the weighted average sale price of such shares on such date). 
 2.22
“Family Member” means, with respect to any Grantee as of any date of determination, (a) a person who is a spouse, former spouse, child, stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive relationships, of such Grantee, (b) any person sharing such Grantee’s household (other than a tenant or employee), (c) a
trust in which any one or more of the persons specified in clauses (a) and (b) above (and such Grantee) own more than fifty percent (50%) of the beneficial interest, (d) a foundation in which any one or more of the persons
specified in clauses (a) and (b) above (and such Grantee) control the management of assets, and (e) any other entity in which one or more of the persons specified in clauses (a) and (b) above (and such Grantee) own more than
fifty percent (50%) of the voting interests. 
 2.23 “Grant Date” means, as determined by the Committee,
(a) the date as of which the Committee completes the corporate action constituting the Award or (b) such date subsequent to the date specified in clause (a) above as may be specified by the Committee. 

2.24 “Grantee” means a person who receives or holds an Award under the Plan. 

2.25 “Incentive Stock Option” means an “incentive stock option” within the meaning of Code Section 422,
or the corresponding provision of any subsequently enacted tax statute, as amended from time to time. 
 2.26
“Non-qualified Stock Option” means an Option that is not an Incentive Stock Option. 
 2.27
“Option” means an option to purchase one or more shares of Stock pursuant to the Plan. 
 2.28 “Option
Price” means the exercise price for each share of Stock subject to an Option. 
 2.29 “Other
Agreement” shall have the meaning set forth in Section 15. 

  
 3 

 2.30 “Outside Director” means a member of the Board who is not an Employee.

 2.31 “Other Equity-Based Award” means an Award representing a right or other interest that may be
denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock, other than an Option, a Stock Appreciation Right, Restricted Stock, a Deferred Stock Unit, Unrestricted Stock, a Dividend Equivalent
Right or a Performance Share. 
 2.32 “Parachute Payment” shall have the meaning set forth in
Section 15(a). 
 2.33 “Performance-Based Compensation” means compensation under an Award that is
intended to satisfy the requirements of Code Section 162(m) for “qualified performance-based compensation” paid to Covered Employees. Notwithstanding the foregoing, nothing in the Plan shall be construed to mean that an Award which
does not satisfy the requirements for “qualified performance-based compensation” within the meaning of and pursuant to Code Section 162(m) does not constitute performance-based compensation for other purposes, including the purposes
of Code Section 409A. 
 2.34 “Performance-Based Award” means an Award of Options, Stock Appreciation
Rights, Restricted Stock, Deferred Stock Units, Performance Shares, Other Equity-Based Awards or cash made subject to the achievement of performance goals (as provided in Section 14) over a Performance Period specified by the Committee.

 2.35 “Performance Measures” means measures as specified in Section 14.6.4 on which the
performance goals under Performance-Based Awards are based and which are approved by the Company’s stockholders pursuant to, and to the extent required by, the Plan in order to qualify such Performance-Based Awards as Performance-Based
Compensation. 
 2.36 “Performance Period” means the period of time during which the performance goals under
Performance-Based Awards must be met in order to determine the degree of payout and/or vesting with respect to any such Performance-Based Awards. 
 2.37 “Performance Shares” means a Performance-Based Award representing a right or other interest that may be denominated or payable in, valued in whole or in part by reference to, or
otherwise based on, or related to, Stock, made subject to the achievement of performance goals (as provided in Section 14) over a Performance Period of up to ten (10) years. 

2.38 “Plan” means this PAETEC Holding Corp. 2011 Omnibus Incentive Plan, as amended from time to time. 

2.39 “Prior Plan” means the PAETEC Holding Corp. 2007 Omnibus Incentive Plan. 

2.40 “Reporting Person” means a person who is required to file reports under Section 16(a) of the Exchange Act, or
any successor provision. 
 2.41 “Restricted Period” shall have the meaning set forth in
Section 10.2. 
 2.42 “Restricted Stock” means shares of Stock awarded to a Grantee pursuant to
Section 10. 
 2.43 “SAR Price” shall have the meaning set forth in Section 9.1.

 2.44 “Securities Act” means the Securities Act of 1933, as amended, as now in effect or as hereafter
amended. 

  
 4 

 2.45 “Service” means service of a Grantee as a Service Provider to the
Company or any Affiliate. Unless otherwise provided in the applicable Award Agreement, a Grantee’s change in position or duties with the Company or any Affiliate shall not result in interrupted or terminated Service, so long as such Grantee
continues to be a Service Provider to the Company or any Affiliate. If a Service Provider’s employment or other service relationship is with an Affiliate and the applicable entity ceases to be an Affiliate, a termination of Service shall be
deemed to have occurred when such entity ceases to be an Affiliate unless the Service Provider transfers his or her employment or other service relationship to the Company or any other Affiliate. Any determination by the Committee whether a
termination of Service shall have occurred for purposes of the Plan shall be final, binding and conclusive. 
 2.46
“Service Provider” means, as of any date of determination, an Employee, officer, or director of the Company or any Affiliate, or a consultant (who is a natural person) or adviser (who is a natural person) to the Company or any
Affiliate who provides services to the Company or any Affiliate. 
 2.47 “Stock” means the common stock, par
value $0.01 per share, of the Company, or any security which shares of Stock may be changed into or for which shares of Stock may be exchanged as provided in Section 17.1. 

2.48 “Stock Appreciation Right” or “SAR” means a right granted to a Grantee pursuant to
Section 9. 
 2.49 “Stock Exchange” means The NASDAQ Stock Exchange LLC or any successor thereto or
another established national or regional stock exchange. 
 2.50 “Subsidiary” means any corporation (other than
the Company) or non-corporate entity with respect to which the Company owns, directly or indirectly, fifty percent (50%) or more of the total combined voting power of all classes of stock, membership interests or other ownership interests of
any class or kind ordinarily having the power to vote for the directors, managers or other voting members of the governing body of such corporation or non-corporate entity. In addition, any other entity may be designated by the Committee as a
Subsidiary, provided that (a) such entity could be considered as a subsidiary according to accounting principles generally accepted in the United States of America, and (b) in the case of an Award of Options or Stock Appreciation
Rights, such Award would be considered to be granted in respect of “service recipient stock” under Code Section 409A. 
 2.51 “Substitute Award” means an Award granted upon assumption of, or in substitution for, outstanding awards previously granted under a compensatory plan by a business entity acquired or
to be acquired by the Company or an Affiliate or with which the Company or an Affiliate has combined or will combine. 
 2.52
“Ten Percent Stockholder” means a natural person who owns more than ten percent (10%) of the total combined voting power of all classes of outstanding voting securities of the Company, the Company’s parent (if any) or any
of the Company’s Subsidiaries. In determining stock ownership, the attribution rules of Code Section 424(d) shall be applied. 
 2.53 “Unrestricted Stock” shall have the meaning set forth in Section 11. 
 Unless the context otherwise requires, all references in the Plan to “including” shall mean “including without limitation.” 

References in the Plan to any Code Section shall be deemed to include, as applicable, regulations promulgated under such Code Section.

  
 5 

	3.	ADMINISTRATION OF THE PLAN 

  

	 	3.1.	Committee. 

  

	 	3.1.1.	Powers and Authorities. 

The Committee shall administer the Plan and shall have such powers and authorities related to the administration of the Plan as are
consistent with the Company’s certificate of incorporation and bylaws and Applicable Laws. Without limiting the generality of the foregoing, the Committee shall have full power and authority to take all actions and to make all determinations
required or provided for under the Plan, any Award or any Award Agreement, and shall have full power and authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and provisions of the
Plan which the Committee deems to be necessary or appropriate to the administration of the Plan, any Award or any Award Agreement. All such actions and determinations shall be made by (a) the affirmative vote of a majority of the members of the
Committee present at a meeting at which a quorum is present, or (b) the unanimous consent of the members of the Committee executed in writing in accordance with the Company’s certificate of incorporation and bylaws and Applicable Laws.
Unless otherwise expressly determined by the Board, the Committee shall have the authority to interpret and construe all provisions of the Plan, any Award and any Award Agreement, and any such interpretation or construction, and any other
determination contemplated to be made under the Plan or any Award Agreement, by the Committee shall be final, binding and conclusive whether or not expressly provided for in any provision of the Plan, such Award or such Award Agreement. 

In the event that the Plan, any Award or any Award Agreement provides for any action to be taken by the Board or any determination to be
made by the Board, such action may be taken or such determination may be made by the Committee constituted in accordance with this Section 3.1 if the Board has delegated the power and authority to do so to such Committee. 

 

	 	3.1.2.	Composition of Committee. 

The Committee shall be a committee composed of not fewer than two directors of the Company designated by the Board to administer the Plan.
Each member of the Committee shall be a “Non-Employee Director” within the meaning of Rule 16b-3 under the Exchange Act, an “outside director” within the meaning of Code Section 162(m)(4)(C)(i) and, for so long as the Stock
is listed on The NASDAQ Stock Exchange LLC, an “independent director” within the meaning of NASDAQ Listing Rule 5605(a)(2) (or, in each case, any successor term or provision); provided that any action taken by the Committee shall be
valid and effective whether or not members of the Committee at the time of such action are later determined not to have satisfied the requirements for membership set forth in this Section 3.1.2 or otherwise provided in any charter of the
Committee. Without limiting the generality of the foregoing, the Committee may be the Compensation Committee of the Board or a subcommittee thereof if the Compensation Committee of the Board or such subcommittee satisfies the foregoing requirements.

  

	 	3.1.3.	Other Committees. 

 The
Board also may appoint one or more committees of the Board, each composed of one or more directors of the Company who need not be Outside Directors, which may administer the Plan with respect to Grantees who are not “officers” as defined
in Rule 16a-1(f) under the Exchange Act or directors of the Company, may grant Awards under the Plan to such Grantees, and may determine all terms of such Awards, subject to the requirements of Rule 16b-3 under the Exchange Act, Code
Section 162(m) and, for so long as the Stock is listed on The NASDAQ Stock Exchange LLC, the rules of such Stock Exchange. 
  

	 	3.2.	Board. 

 The Board from
time to time may exercise any or all of the powers and authorities related to the administration and implementation of the Plan, as set forth in Section 3.1 and other applicable provisions of the

  
 6 

 
Plan, as the Board shall determine, consistent with the Company’s certificate of incorporation and bylaws and Applicable Laws. 

 

	 	3.3.	Terms of Awards. 

  

	 	3.3.1.	Committee Authority. 

Subject to the other terms and conditions of the Plan, the Committee shall have full and final authority to: 

(a) designate Grantees; 
 (b) determine the type or types of Awards to be made to a Grantee; 
 (c) determine
the number of shares of Stock to be subject to an Award; 
 (d) establish the terms and conditions of each Award (including the
Option Price of any Option), the nature and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the shares of Stock subject thereto, the treatment of an
Award in the event of a Change in Control (subject to applicable agreements), and any terms or conditions that may be necessary to qualify Options as Incentive Stock Options; 
 (e) prescribe the form of each Award Agreement evidencing an Award; and 
 (f)
subject to the limitation on repricing in Section 3.4, amend, modify or supplement the terms of any outstanding Award, which authority shall include the authority, in order to effectuate the purposes of the Plan but without amending the
Plan, to make Awards or to modify outstanding Awards made to eligible natural persons who are foreign nationals or are natural persons who are employed outside the United States to reflect differences in local law, tax policy, or custom,
provided that, notwithstanding the foregoing, no amendment, modification or supplement of the terms of any outstanding Award shall, without the consent of the Grantee thereof, impair such Grantee’s rights under such Award. 

The Committee shall have the right, in its discretion, to make Awards in substitution or exchange for any award granted under another
compensatory plan of the Company, any Affiliate, or any business entity acquired or to be acquired by the Company or an Affiliate or with which the Company or an Affiliate has combined or will combine. 

 

	 	3.3.2.	Forfeiture; Recoupment. 

The Committee may reserve the right in an Award Agreement to cause a forfeiture of the gain realized by a Grantee with respect to an Award
thereunder on account of actions taken by, or failed to be taken by, such Grantee in violation or breach of or in conflict with any (a) employment agreement, (b) non-competition agreement, (c) agreement prohibiting solicitation of
Employees or clients of the Company or any Affiliate, (d) confidentiality obligation with respect to the Company or any Affiliate, (e) Company policy or procedure (including the Company’s Code of Conduct), or (f) other agreement,
as and to the extent specified in such Award Agreement. The Committee may annul an outstanding Award if the Grantee thereof is an Employee and is terminated for Cause as defined in the Plan or the applicable Award Agreement or for “cause”
as defined in any other agreement between the Company or such Affiliate and such Grantee, as applicable. 
 Any Award granted
pursuant to the Plan shall be subject to mandatory repayment by the Grantee to the Company to the extent the Grantee is, or in the future becomes, subject to (a) any Company “clawback” or recoupment policy that is adopted to comply
with the requirements of any applicable law, rule or regulation, or otherwise, or (b) any law, rule or regulation which imposes mandatory recoupment, under circumstances set forth in such law, rule or regulation. 

  
 7 

	 	3.4.	No Repricing. 

 Except in
connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, distribution (whether in the form of cash, shares of Stock, other securities or other property), stock split, extraordinary cash
dividend, recapitalization, change in control, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares of Stock or other securities or similar transaction), the Company may not, without obtaining
stockholder approval: (a) amend the terms of outstanding Options or SARs to reduce the exercise price of such outstanding Options or SARs; (b) cancel outstanding Options or SARs in exchange for or substitution of Options or SARs with an
exercise price that is less than the exercise price of the original Options or SARs; or (c) cancel outstanding Options or SARs with an exercise price above the current stock price in exchange for cash or other securities. 

 

	 	3.5.	Deferral Arrangement. 

The Committee may permit or require the deferral of any payment pursuant to any Award into a deferred compensation arrangement, subject to
such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest or Dividend Equivalent Rights and, in connection therewith, provisions for converting such credits into Deferred Stock Units and for
restricting deferrals to comply with hardship distribution rules affecting tax-qualified retirement plans subject to Code Section 401(k)(2)(B)(IV), provided that no Dividend Equivalent Rights may be granted in connection with, or related
to, an Award of Options or SARs. Any such deferrals shall be made in a manner that complies with Code Section 409A. 
  

	 	3.6.	No Liability. 

 No member
of the Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award or Award Agreement. 
  

	 	3.7.	Registration; Share Certificates. 

 Notwithstanding any provision of the Plan to the contrary, the ownership of the shares of Stock issued under the Plan may be evidenced in such a manner as the Committee, in its sole discretion, deems
appropriate, including by book-entry or direct registration (including transaction advices) or the issuance of one or more share certificates. 
  

	4.	STOCK SUBJECT TO THE PLAN 

  

	 	4.1.	Number of Shares of Stock Available for Awards. 

 Subject to the other provisions of this Section 4 and subject to adjustment as provided under the Plan, the total number of shares of Stock that shall be authorized for issuance for Awards
under the Plan shall be equal to the sum of (x) twelve million (12,000,000) shares of Stock plus (y) the number of shares of Stock available for future awards under the Prior Plan as of the Effective Date plus (z) the number of
shares of Stock related to awards outstanding under the Prior Plan as of the Effective Date which thereafter terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such shares. Such shares of Stock may be authorized
and unissued shares of Stock or treasury shares of Stock or any combination of the foregoing, as may be determined from time to time by the Board or by the Committee. Any of the shares of Stock available for issuance under the Plan may be used for
any type of Award under the Plan, and any or all of the shares of Stock available for issuance under the Plan shall be available for issuance pursuant to Incentive Stock Options. 

 

	 	4.2.	Adjustments in Authorized Shares of Stock. 

 In connection with mergers, reorganizations, separations, or other transactions to which Code Section 424(a) applies, the Committee shall have the right to cause the Company to assume awards
previously granted under a 

  
 8 

 
compensatory plan by another business entity that is a party to such transaction and to substitute Awards under the Plan for such awards. The number of shares of Stock available for issuance
under the Plan pursuant to Section 4.1 shall be increased by the number of shares of Stock subject to any such assumed awards and substitute Awards. Shares available for issuance under a shareholder-approved plan of a business entity
that is a party to such transaction (as appropriately adjusted, if necessary, to reflect such transaction) may be used for Awards under the Plan and shall not reduce the number of shares of Stock otherwise available for issuance under the Plan,
subject to applicable rules of any Stock Exchange on which the Stock is listed. 
  

	 	4.3.	Share Usage. 

 (a) Shares
of Stock subject to an Award shall be counted as used as of the Grant Date. 
 (b) Any shares of Stock that are subject to an
Award other than an Award of Options or Stock Appreciation Rights shall be counted against the share issuance limit set forth in Section 4.1 as one-and-one-half (1.5) shares for every one (1) share of Stock subject to such
Award. Any shares of Stock that are subject to an Award of Options shall be counted against the share issuance limit set forth in Section 4.1 as one (1) share of Stock for every one (1) share of Stock subject to such Award. The
number of shares of Stock subject to an Award of Stock Appreciation Rights shall be counted against the share issuance limit set forth in Section 4.1 as one (1) share of Stock for every one (1) share of Stock subject to such
Award regardless of the number of shares of Stock actually issued to settle such Stock Appreciation Rights upon the exercise thereof. 
 (c) Notwithstanding anything to the contrary in Section 4.1, any shares of Stock related to Awards under the Plan which thereafter terminate by expiration, forfeiture, cancellation, or
otherwise without the issuance of such shares shall be available again for issuance under the Plan. 
 (d) The number of shares
of Stock available for issuance under the Plan shall not be increased by the number of shares of Stock (i) tendered or withheld or subject to an Award surrendered in connection with the purchase of shares of Stock upon exercise of an Option as
provided in Section 12.2, (ii) deducted or delivered from payment of an Award in connection with the Company’s tax withholding obligations as provided in Section 18.3 or (iii) purchased by the Company with
proceeds from Option exercises. 
  

	5.	EFFECTIVE DATE; TERM; AMENDMENT AND TERMINATION 

  

	 	5.1.	Effective Date. 

 The Plan
shall be effective as of the Effective Date. Following the Effective Date, no awards shall be made under the Prior Plan. Notwithstanding the foregoing, shares of Stock reserved under the Prior Plan to settle awards, including performance-based
awards, which are made under the Prior Plan prior to the Effective Date may be issued and delivered following the Effective Date to settle such awards. 
  

	 	5.2.	Term. 

 The Plan shall
terminate automatically ten (10) years after the Effective Date and may be terminated on any earlier date as provided in Section 5.3. 
  

	 	5.3.	Amendment and Termination. 

The Board may, at any time and from time to time, amend, suspend or terminate the Plan as to any shares of Stock as to which Awards have
not been made. The effectiveness of any amendment to the Plan shall be contingent on approval of such amendment by the Company’s stockholders to the extent provided by the Board or required by Applicable Laws (including the rules of any Stock
Exchange on which the Stock is then listed), provided that no amendment shall be made to the no-repricing provisions of Section 3.4 or the Option pricing provisions of Section 8.1 without the approval of the
Company’s stockholders. No amendment, suspension or 

  
 9 

 
termination of the Plan shall impair rights or obligations under any Award theretofore made under the Plan without the consent of the Grantee thereof. 

 

	6.	AWARD ELIGIBILITY AND LIMITATIONS 

  

	 	6.1.	Eligible Grantees. 

Subject to this Section 6, Awards may be made under the Plan to any Service Provider, as the Committee shall determine and
designate from time to time. 
  

	 	6.2.	Limitation on Shares of Stock Subject to Awards and Cash Awards. 

 During any time when the Company has a class of equity securities registered under Section 12 of the Exchange Act: 
 (a) the maximum number of shares of Stock subject to Options or SARs that may be granted under the Plan in a calendar year to any person eligible for an Award under Section 6 is four million
(4,000,000) shares; provided that the maximum number of shares of Stock subject to Options or SARs that may be granted under the Plan to any person eligible for an Award under Section 6 in the year in which such person is
first employed by, or first provides other Service to, the Company or any Affiliate is six million (6,000,000) shares; 

(b) the maximum number of shares of Stock that may be granted under the Plan, other than pursuant to Options or SARs, in a calendar year
to any person eligible for an Award under Section 6 is one million (1,000,000) shares; provided that the maximum number of shares of Stock subject to Awards other than Options or SARs that may be granted under the Plan to any
person eligible for an Award under Section 6 in the year in which such person is first employed by, or first provides other Service to, the Company or any Affiliate is one million five hundred thousand (1,500,000) shares; and

 (c) the maximum amount that may be paid as a cash-settled Performance-Based Award for a Performance Period of twelve
(12) months or less to any person eligible for an Award shall be three million dollars ($3,000,000) and the maximum amount that may be paid as a cash-settled Performance-Based Award for a Performance Period of greater than twelve
(12) months to any person eligible for an Award shall be five million dollars ($5,000,000). 
 The preceding limitations in
this Section 6.2 are subject to adjustment as provided in Section 17. 
  

	 	6.3.	Stand-Alone, Additional, Tandem and Substitute Awards. 

 Subject to Section 3.4, Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution or exchange for,
(a) any other Award, (b) any award granted under another plan of the Company, any Affiliate, or any business entity that has been a party to a transaction with the Company or any Affiliate, or (c) any other right of a Grantee to
receive payment from the Company or any Affiliate. Such additional, tandem and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award, or for an award granted under another plan
of the Company, any Affiliate, or any business entity that has been a party to a transaction with the Company or any Affiliate, the Committee shall require the surrender of such other Award or award under such other plan in consideration for the
grant of such substitute or exchange Award. In addition, Awards may be granted in lieu of cash compensation, including in lieu of cash payments under other plans of the Company or any Affiliate. Notwithstanding Section 8.1 and
Section 9.1, but subject to Section 3.4, the Option Price of an Option or the SAR Price of a SAR that is a Substitute Award may be less than one hundred percent (100%) of the Fair Market Value of a share of Stock on the
original Grant Date; provided that such Option Price or SAR Price is determined in accordance with the principles of Code Section 424 for any Incentive Stock Option and consistent with Code Section 409A for any other Option or SAR.

  
 10 

	7.	AWARD AGREEMENT 

 Each
Award granted pursuant to the Plan shall be evidenced by an Award Agreement, which shall be in such form or forms as the Committee shall from time to time determine. Award Agreements employed under the Plan from time to time or at the same time need
not contain similar provisions, but shall be consistent with the terms of the Plan. Each Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be Non-qualified Stock Options or Incentive Stock Options,
and, in the absence of such specification, such Options shall be deemed to constitute Non-qualified Stock Options. 
  

	8.	TERMS AND CONDITIONS OF OPTIONS 

  

	 	8.1.	Option Price. 

 The Option
Price of each Option shall be fixed by the Committee and stated in the Award Agreement evidencing such Option. Except in the case of Substitute Awards, the Option Price of each Option shall be at least the Fair Market Value of one (1) share of
Stock on the Grant Date; provided that in the event that a Grantee is a Ten Percent Stockholder, the Option Price of an Option granted to such Grantee that is intended to be an Incentive Stock Option shall be not less than one hundred ten
percent (110%) of the Fair Market Value of one (1) share of Stock on the Grant Date. In no case shall the Option Price of any Option be less than the par value of a share of Stock. 

 

	 	8.2.	Vesting. 

 Subject to
Sections 8.3 and 17.3, each Option granted under the Plan shall become exercisable at such times and under such conditions as shall be determined by the Committee and stated in the Award Agreement, in another agreement with the Grantee
or otherwise in writing. 
  

	 	8.3.	Term. 

 Each Option
granted under the Plan shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of ten (10) years from the Grant Date of such Option, or under such circumstances and on such date prior thereto as
is set forth in the Plan or as may be fixed by the Committee and stated in the Award Agreement relating to such Option; provided that in the event that the Grantee is a Ten Percent Stockholder, an Option granted to such Grantee that is
intended to be an Incentive Stock Option shall not be exercisable after the expiration of five (5) years from its Grant Date. 
  

	 	8.4.	Termination of Service. 

Each Award Agreement with respect to the grant of an Option shall set forth the extent to which the Grantee thereof, if at all, shall have
the right to exercise such Option following termination of such Grantee’s Service. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination of Service. 
  

	 	8.5.	Limitations on Exercise of Option. 

 Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in whole or in part, after the occurrence of an event referred to in Section 17 which results in the
termination of such Option. 
  

	 	8.6.	Method of Exercise. 

Subject to the terms of Section 12 and Section 18.3, an Option that is exercisable may be exercised by the
Grantee’s delivery to the Company or its designee or agent of notice of exercise on any business day, at the Company’s principal office or the office of such designee or agent, on the form specified by the Company and in accordance with
any additional procedures specified by the Committee. Such notice shall specify the number of 

  
 11 

 
shares of Stock with respect to which such Option is being exercised and shall be accompanied by payment in full of the Option Price of the shares of Stock for which such Option is being
exercised plus the amount (if any) of federal and/or other taxes which the Company may, in its judgment, be required to withhold with respect to the exercise of such Option. 

 

	 	8.7.	Rights of Holders of Options. 

 Unless otherwise stated in the applicable Award Agreement, a Grantee or other person holding or exercising an Option shall have none of the rights of a stockholder of the Company (for example, the right
to receive cash or dividend payments or distributions attributable to the shares of Stock subject to such Option, to direct the voting of the shares of Stock subject to such Option, or to receive notice of any meeting of the Company’s
stockholders) until the shares of Stock subject thereto are fully paid and issued to such Grantee or other person. Except as provided in Section 17, no adjustment shall be made for dividends, distributions or other rights with respect to
any shares of Stock subject to an Option for which the record date is prior to the date of issuance of such shares of Stock. 
  

	 	8.8.	Delivery of Stock. 

Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price with respect thereto, such Grantee shall
be entitled to receive such evidence of such Grantee’s ownership of the shares of Stock subject to such Option as shall be consistent with Section 3.7. 

 

	 	8.9.	Transferability of Options. 

 Except as provided in Section 8.10, during the lifetime of a Grantee of an Option, only such Grantee (or, in the event of such Grantee’s legal incapacity or incompetency, such
Grantee’s guardian or legal representative) may exercise such Option. Except as provided in Section 8.10, no Option shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent
and distribution. 
  

	 	8.10.	Family Transfers. 

 If
authorized in the applicable Award Agreement and by the Committee, in its sole discretion, a Grantee may transfer, not for value, all or part of an Option which is not an Incentive Stock Option to any Family Member. For the purpose of this
Section 8.10, a transfer “not for value” is a transfer which is (a) a gift, (b) a transfer under a domestic relations order in settlement of marital property rights or (c) unless Applicable Laws do not permit
such transfer, a transfer to an entity in which more than fifty percent (50%) of the voting interests are owned by Family Members (and/or the Grantee) in exchange for an interest in such entity. Following a transfer under this
Section 8.10, any such Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to such transfer, and the shares of Stock acquired pursuant to such Option shall be subject to the same
restrictions with respect to transfers of such shares of Stock as would have applied to the Grantee thereof. Subsequent transfers of transferred Options shall be prohibited except to Family Members of the original Grantee in accordance with this
Section 8.10 or by will or the laws of descent and distribution. The provisions of Section 8.4 relating to termination of Service shall continue to be applied with respect to the original Grantee of the Option, following
which such Option shall be exercisable by the transferee only to the extent, and for the periods specified, in Section 8.4. 
  

	 	8.11.	Limitations on Incentive Stock Options. 

 An Option shall constitute an Incentive Stock Option only (a) if the Grantee of such Option is an Employee of the Company or any corporate Subsidiary, (b) to the extent specifically provided in
the related Award Agreement and (c) to the extent that the aggregate Fair Market Value (determined at the time such Option is granted) of the shares of Stock with respect to which all Incentive Stock Options held by such Grantee become

  
 12 

 
exercisable for the first time during any calendar year (under the Plan and all other plans of the Company and its Affiliates) does not exceed one hundred thousand dollars ($100,000). Except to
the extent provided in the regulations under Code Section 422, this limitation shall be applied by taking Options into account in the order in which they were granted. 

 

	 	8.12.	Notice of Disqualifying Disposition. 

 If any Grantee shall make any disposition of shares of Stock issued pursuant to the exercise of an Incentive Stock Option under the circumstances provided in Code Section 421(b) (relating to certain
disqualifying dispositions), such Grantee shall notify the Company of such disposition within ten (10) days thereof. 
  

	9.	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS 

  

	 	9.1.	Right to Payment and Grant Price. 

 A SAR shall confer on the Grantee to whom it is granted a right to receive, upon exercise thereof, the excess of (x) the Fair Market Value of one (1) share of Stock on the date of exercise over
(y) the per share exercise price of such SAR (the “SAR Price”) as determined by the Committee. The Award Agreement for a SAR shall specify the SAR Price, which shall be no less than the Fair Market Value of one (1) share
of Stock on the Grant Date of such SAR. SARs may be granted in tandem with all or part of an Option granted under the Plan or at any subsequent time during the term of such Option, in combination with all or any part of any other Award or without
regard to any Option or other Award; provided that a SAR that is granted subsequent to the Grant Date of a related Option must have a SAR Price that is no less than the Fair Market Value of one (1) share of Stock on the Grant Date of
such SAR. 
  

	 	9.2.	Other Terms. 

 The
Committee shall determine, on the Grant Date or thereafter, the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including based on achievement of performance goals and/or future Service
requirements), the time or times at which SARs shall cease to be or become exercisable following termination of Service or upon other conditions, the method of exercise, method of settlement, form of consideration payable in settlement, method by or
forms in which shares of Stock shall be delivered or deemed to be delivered to Grantees, whether or not a SAR shall be granted in tandem or in combination with any other Award, and any and all other terms and conditions of any SAR. 

 

	 	9.3.	Term. 

 Each SAR granted
under the Plan shall terminate, and all rights thereunder shall cease, upon the expiration of ten (10) years from the Grant Date of such SAR or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be
fixed by the Committee and stated in the Award Agreement relating to such SAR. 
  

	 	9.4.	Transferability of SARs. 

Except as provided in Section 9.5, during the lifetime of a Grantee of a SAR, only the Grantee (or, in the event of such
Grantee’s legal incapacity or incompetency, such Grantee’s guardian or legal representative) may exercise such SAR. Except as provided in Section 9.5, no SAR shall be assignable or transferable by the Grantee to whom it is
granted, other than by will or the laws of descent and distribution. 
  

	 	9.5.	Family Transfers. 

 If
authorized in the applicable Award Agreement and by the Committee, in its sole discretion, a Grantee may transfer, not for value, all or part of a SAR to any Family Member. For the purpose of this Section 9.5, a

  
 13 

 
transfer “not for value” is a transfer which is (a) a gift, (b) a transfer under a domestic relations order in settlement of marital property rights or (c) unless
Applicable Laws do not permit such transfer, a transfer to an entity in which more than fifty percent (50%) of the voting interests are owned by Family Members (and/or the Grantee) in exchange for an interest in such entity. Following a
transfer under this Section 9.5, any such SAR shall continue to be subject to the same terms and conditions as were in effect immediately prior to such transfer, and shares of Stock acquired pursuant to a SAR shall be subject to the same
restrictions on transfers of such shares of Stock as would have applied to the Grantee or such SAR. Subsequent transfers of transferred SARs shall be prohibited except to Family Members of the original Grantee in accordance with this
Section 9.5 or by will or the laws of descent and distribution. 
  

	10.	TERMS AND CONDITIONS OF RESTRICTED STOCK AND DEFERRED STOCK UNITS 

  

	 	10.1.	Grant of Restricted Stock or Deferred Stock Units. 

 Awards of Restricted Stock and Deferred Stock Units may be made for consideration or for no consideration, other than the par value of the shares of Stock, which shall be deemed paid by past Service or,
if so provided in the related Award Agreement or a separate agreement, the promise by the Grantee to perform future Service to the Company or an Affiliate. 
  

	 	10.2.	Restrictions. 

 At the
time a grant of Restricted Stock or Deferred Stock Units is made, the Committee may, in its sole discretion, (a) establish a period of time (a “Restricted Period”) applicable to such Restricted Stock or Deferred Stock Units and
(b) prescribe restrictions in addition to or other than the expiration of the Restricted Period, including the achievement of corporate or individual performance goals, which may be applicable to all or any portion of such Restricted Stock or
Deferred Stock Units as provided in Section 14. Notwithstanding the foregoing, Awards of Restricted Stock and Deferred Stock Units that vest solely by the passage of time shall not vest in full in less than three (3) years from the
Grant Date (but may vest pro-rata during such period on a daily, monthly, annual or other basis), and Restricted Stock and Deferred Stock Units that vest upon achievement of performance goals shall not vest in full in less than one (1) year
from the Grant Date; provided that (i) up to ten percent (10%) of the maximum number of shares of Stock available for issuance under the Plan may be granted pursuant to the Plan without being subject to the foregoing restrictions,
and (ii) any dividends or Dividend Equivalent Rights, or other distributions, issued in connection with any Award granted at any time under the Plan shall not be subject to or counted for either such restrictions or such ten percent
(10%) share issuance limit. The foregoing ten percent (10%) share issuance limit shall be subject to adjustment consistent with the adjustment provisions of Section 17.2 and the share usage rules of Section 4.3.
Awards of Restricted Stock and Deferred Stock Units may not be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Restricted Period or prior to the satisfaction of any other restrictions prescribed by the
Committee with respect to such Awards. 
  

	 	10.3.	Registration; Restricted Share Certificates. 

 Pursuant to Section 3.7, to the extent that ownership of Restricted Stock is evidenced by a book-entry registration or direct registration (including transaction advices), such registration
shall be notated to evidence the restrictions imposed on such Award of Restricted Stock under the Plan and the applicable Award Agreement. Subject to Section 3.7 and the immediately following sentence, the Company may issue, in the name
of each Grantee to whom Restricted Stock has been granted, share certificates representing the total number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date of such Restricted Stock. The
Committee may provide in an Award Agreement with respect to an Award of Restricted Stock that either (a) the Secretary of the Company shall hold such share certificates for such Grantee’s benefit until such time as such shares of
Restricted Stock are forfeited to the Company or the restrictions applicable thereto lapse and such Grantee shall deliver a stock power to the Company with respect to each share certificate, or (b) such share certificates shall be delivered to
such Grantee, provided that such share certificates shall bear legends that 

  
 14 

 
comply with applicable securities laws and regulations and make appropriate reference to the restrictions imposed on such Award of Restricted Stock under the Plan and such Award Agreement.

  

	 	10.4.	Rights of Holders of Restricted Stock. 

 Unless the Committee otherwise provides in an Award Agreement, holders of Restricted Stock shall have the right to vote such shares of Restricted Stock and the right to receive any dividends declared or
paid with respect to such shares of Restricted Stock. The Committee may provide that any dividends paid on Restricted Stock must be reinvested in shares of Stock, which may or may not be subject to the same vesting conditions and restrictions as the
vesting conditions and restrictions applicable to such Restricted Stock. Dividends paid on Restricted Stock which vests or is earned based upon the achievement of performance goals shall not vest unless such performance goals for such Restricted
Stock are achieved, and if such performance goals are not achieved, the Grantee of such Restricted Stock shall promptly forfeit and repay to the Company such dividend payments. All stock distributions, if any, received by a Grantee with respect to
Restricted Stock as a result of any stock split, stock dividend, combination of stock, or other similar transaction shall be subject to the vesting conditions and restrictions applicable to such Restricted Stock. 

 

	 	10.5.	Rights of Holders of Deferred Stock Units. 

  

	 	10.5.1.	Voting and Dividend Rights. 

 Holders of Deferred Stock Units shall have no rights as stockholders of the Company (for example, the right to receive cash or dividend payments or distributions attributable to the shares of Stock
subject to such Deferred Stock Units, to direct the voting of the shares of Stock subject to such Deferred Stock Units, or to receive notice of any meeting of the Company’s stockholders). The Committee may provide in an Award Agreement
evidencing a grant of Deferred Stock Units that the holder of such Deferred Stock Units shall be entitled to receive, upon the Company’s payment of a cash dividend on its outstanding shares of Stock, a cash payment for each such Deferred Stock
Unit which is equal to the per-share dividend paid on such shares of Stock. Such Award Agreement also may provide that such cash payment shall be deemed reinvested in additional Deferred Stock Units at a price per unit equal to the Fair Market Value
of a share of Stock on the date on which such cash dividend is paid. Such cash payments paid in connection with Deferred Stock Units which vest or are earned based upon the achievement of performance goals shall not vest unless such performance
goals for such Deferred Stock Units are achieved, and if such performance goals are not achieved, the Grantee of such Deferred Stock Units shall promptly forfeit and repay to the Company such cash payments. Notwithstanding the foregoing, if a
grantor trust is established in connection with an Award of Deferred Stock Units and shares of Stock are held in such grantor trust for purposes of satisfying the Company’s obligation to deliver shares of Stock in connection with such Deferred
Stock Units, the Award Agreement for such Award of Deferred Stock Units may provide that such cash payment shall be deemed reinvested in additional Deferred Stock Units at a price per unit equal to the actual price paid for each share of Stock by
the trustee of such grantor trust upon such trustee’s reinvestment of the cash dividend received. 
  

	 	10.5.2.	Creditor’s Rights. 

A holder of Deferred Stock Units shall have no rights other than those of a general unsecured creditor of the Company. Deferred Stock
Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Award Agreement. 
  

	 	10.6.	Termination of Service. 

Unless the Committee otherwise provides in an Award Agreement, in another agreement with the Grantee or otherwise in writing after
such Award Agreement is entered into, but prior to termination of Grantee’s Service, upon the termination of such Grantee’s Service, any Restricted Stock or Deferred Stock Units held by such

  
 15 

 
Grantee that have not vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited. Upon forfeiture of such Restricted
Stock or Deferred Stock Units, the Grantee thereof shall have no further rights with respect thereto, including any right to vote such Restricted Stock or any right to receive dividends with respect to such Restricted Stock or Deferred Stock Units.
If the Committee accelerates vesting of Restricted Stock or Deferred Stock Units, except (a) in the case of a Grantee’s death or disability, (b) acceleration required by binding commitments or agreements entered into by the Company
prior to the Effective Date or (c) as specified in Section 17.3, the shares of Stock subject to such Restricted Stock or Deferred Stock Units shall be deducted from the ten percent (10%) share issuance limit set forth in
Section 10.2. 
  

	 	10.7.	Purchase of Restricted Stock and Shares of Stock Subject to Deferred Stock Units. 

The Grantee of an Award of Restricted Stock or vested Deferred Stock Units shall be required, to the extent required by Applicable Laws,
to purchase such Restricted Stock or the shares of Stock subject to such vested Deferred Stock Units from the Company at a purchase price equal to the greater of (x) the aggregate par value of the shares of Stock represented by such Restricted
Stock or such vested Deferred Stock Units or (y) the purchase price, if any, specified in the Award Agreement relating to such Restricted Stock or such vested Deferred Stock Units. Such purchase price shall be payable in a form provided in
Section 12 or, in the sole discretion of the Committee, in consideration for past or future Service rendered or to be rendered to the Company or an Affiliate. 

 

	 	10.8.	Delivery of Shares of Stock. 

 Upon the expiration or termination of any Restricted Period and the satisfaction of any other conditions prescribed by the Committee, the restrictions applicable to Restricted Stock or Deferred Stock
Units settled in shares of Stock shall lapse, and, unless otherwise provided in the applicable Award Agreement, a book-entry or direct registration (including transaction advices) or a share certificate evidencing ownership of such shares of Stock
shall, consistent with Section 3.7, be issued, free of all such restrictions, to the Grantee thereof or such Grantee’s beneficiary or estate, as the case may be. Neither the Grantee, nor the Grantee’s beneficiary or estate,
shall have any further rights with regard to a Deferred Stock Unit once the shares of Stock represented by such Deferred Stock Unit have been delivered in accordance with this Section 10.8. 

 

	11.	TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS 

 

	 	11.1.	Unrestricted Stock Awards. 

The Committee may, in its sole discretion, grant (or sell at the par value of a share of Stock or at such other higher purchase price as
shall be determined by the Committee) an Award to any Grantee pursuant to which such Grantee may receive shares of Stock free of any restrictions (“Unrestricted Stock”) under the Plan, subject to the ten percent
(10%) share issuance limit set forth in Section 10.2. Unrestricted Stock Awards may be granted or sold to any Grantee as provided in the immediately preceding sentence in respect of past Service or, if so provided in the related
Award Agreement or a separate agreement, the promise by the Grantee to perform future Service, to the Company or an Affiliate or other valid consideration, or in lieu of, or in addition to, any cash compensation due to such Grantee. 

 

	 	11.2.	Other Equity-Based Awards. 

The Committee may, in its sole discretion, grant Awards in the form of Other Equity-Based Awards, as deemed by the Committee to be
consistent with the purposes of the Plan. Awards granted pursuant to this Section 11.2 may be granted with vesting, value and/or payment contingent upon the achievement of one or more performance goals. The Committee shall determine the
terms and conditions of Other Equity-Based Awards at the Grant Date or thereafter. Unless the Committee otherwise provides in an Award Agreement, in another agreement with the Grantee, or otherwise in writing after such Award Agreement is
issued, upon the termination of a Grantee’s Service, any Other Equity-Based Awards held by such Grantee that have not vested, or with 

  
 16 

 
respect to which all applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited. Upon forfeiture of any Other Equity-Based Award, the Grantee thereof shall have
no further rights with respect to such Other Equity-Based Award. 
  

	12.	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK 

  

	 	12.1.	General Rule. 

 Payment of
the Option Price for the shares of Stock purchased pursuant to the exercise of an Option or the purchase price, if any, for Restricted Stock shall be made in cash or in cash equivalents acceptable to the Company. 

 

	 	12.2.	Surrender of Shares of Stock. 

 To the extent that the applicable Award Agreement so provides, payment of the Option Price for shares of Stock purchased pursuant to the exercise of an Option or the purchase price, if any, for Restricted
Stock may be made all or in part through the tender or attestation to the Company of shares of Stock, which shall be valued, for purposes of determining the extent to which such Option Price or purchase price has been paid thereby, at their Fair
Market Value on the date of such tender or attestation. 
  

	 	12.3.	Cashless Exercise. 

 To
the extent permitted by Applicable Laws and to the extent the Award Agreement so provides, payment of the Option Price for shares of Stock purchased pursuant to the exercise of an Option may be made all or in part by delivery (on a form acceptable
to the Committee) of an irrevocable direction to a licensed securities broker acceptable to the Company to sell shares of Stock and to deliver all or part of the proceeds of such sale to the Company in payment of such Option Price and any
withholding taxes described in Section 18.3, or, with the consent of the Company, by issuing the number of shares of Stock equal in value to the difference between such Option Price and the Fair Market Value of the shares of Stock
subject to the Option being exercised. 
  

	 	12.4.	Other Forms of Payment. 

To the extent the Award Agreement so provides and/or unless otherwise specified in an Award Agreement, payment of the Option Price for
shares of Stock purchased pursuant to exercise of an Option or the purchase price, if any, for Restricted Stock may be made in any other form that is consistent with Applicable Laws, including (a) Service by the Grantee thereof to the Company
or an Affiliate and (b) by withholding shares of Stock that would otherwise vest or be issuable in an amount equal to the Option Price or purchase price and the required tax withholding amount. 

 

	13.	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS 

  

	 	13.1.	Dividend Equivalent Rights. 

 A Dividend Equivalent Right is an Award entitling the recipient thereof to receive credits based on cash distributions that would have been paid on the shares of Stock specified in such Dividend
Equivalent Right (or other Award to which such Dividend Equivalent Right relates) if such shares of Stock had been issued to and held by the recipient of such Dividend Equivalent Right as of the record date. A Dividend Equivalent Right may be
granted hereunder to any Grantee, provided that no Dividend Equivalent Rights may be granted in connection with, or related to, an Award of Options or SARs. The terms and conditions of Dividend Equivalent Rights shall be specified in the
Award Agreement therefor. Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid currently (with or without being subject to forfeiture or a repayment obligation) or may be deemed to be reinvested in additional shares
of Stock, which may thereafter accrue additional Dividend Equivalent Rights (with or without being subject to forfeiture or a repayment obligation). Any such reinvestment 

  
 17 

 
shall be at the Fair Market Value thereof on the date of such reinvestment. Dividend Equivalent Rights may be settled in cash or shares of Stock or a combination thereof, in a single installment
or in multiple installments, all as determined in the sole discretion of the Committee. A Dividend Equivalent Right granted as a component of another Award may provide that such Dividend Equivalent Right shall be settled upon exercise, settlement,
or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other Award. A Dividend Equivalent Right granted as a component of
another Award also may contain terms and conditions which are different from the terms and conditions of such other Award, provided that Dividend Equivalent Rights credited pursuant to a Dividend Equivalent Right granted as a component of
another Award which vests or is earned based upon the achievement of performance goals shall not vest unless such performance goals for such underlying Award are achieved. 

 

	 	13.2.	Termination of Service. 

Unless the Committee otherwise provides in an Award Agreement, in another agreement with the Grantee, or otherwise in writing after such
Award Agreement is issued, a Grantee’s rights in all Dividend Equivalent Rights shall automatically terminate upon such Grantee’s termination of Service for any reason. 

 

	14.	TERMS AND CONDITIONS OF PERFORMANCE-BASED AWARDS 

  

	 	14.1.	Grant of Performance-Based Awards. 

 Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Performance-Based Awards to a Plan participant in such amounts and upon such terms as the
Committee shall determine. 
  

	 	14.2.	Value of Performance-Based Awards. 

 Each grant of a Performance-Based Award shall have an initial value or target number of shares of Stock that is established by the Committee at the time of grant. The Committee shall set performance goals
in its discretion which, depending on the extent to which they are achieved, shall determine the value and/or number of shares of Stock subject to a Performance-Based Award that will be paid out to the Grantee thereof. 

 

	 	14.3.	Earning of Performance-Based Awards. 

 Subject to the terms of the Plan, after the applicable Performance Period has ended, the Grantee of Performance-Based Awards shall be entitled to receive a payout on the value or number of the
Performance-Based Awards earned by such Grantee over such Performance Period. 
  

	 	14.4.	Form and Timing of Payment of Performance-Based Awards. 

 Payment of earned Performance-Based Awards shall be as determined by the Committee and as evidenced in the applicable Award Agreement. Subject to the terms of the Plan, the Committee, in its sole
discretion, may pay earned Performance-Based Awards in the form of cash or shares of Stock (or a combination thereof) equal to the value of such earned Performance-Based Awards and shall pay the Awards that have been earned at the close of the
applicable Performance Period, or as soon as reasonably practicable after the Committee has determined that the performance goal or goals relating thereto have been achieved; provided that, unless specifically provided in the Award Agreement
for such Awards, such payment shall occur no later than the 15th day of the third month following the end of the calendar year in which such Performance Period ends. Any shares of Stock paid out under such Performance-Based Awards may be granted
subject to any restrictions deemed appropriate by the Committee. The determination of the Committee with respect to the form of payout of such Performance-Based Awards shall be set forth in the Award Agreement therefor. 

  
 18 

	 	14.5.	Performance Conditions. 

The right of a Grantee to exercise or receive a grant or settlement of any Performance-Based Award, and the timing thereof, may be subject
to such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions. If and to the extent required
under Code Section 162(m), any power or authority relating to an Award intended to qualify under Code Section 162(m) shall be exercised by the Committee and not by the Board. 

 

	 	14.6.	Performance-Based Awards Granted to Designated Covered Employees. 

 If and to the extent that the Committee determines that a Performance-Based Award to be granted to a Grantee should constitute “qualified performance-based compensation” for purposes of Code
Section 162(m), the grant, exercise and/or settlement of such Award shall be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 14.6. 

 

	 	14.6.1.	Performance Goals Generally. 

 The performance goals for Performance-Based Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to each of such criteria, as specified by the
Committee consistent with this Section 14.6. Performance goals shall be objective and shall otherwise meet the requirements of Code Section 162(m), including the requirement that the level or levels of performance targeted by the
Committee result in the achievement of performance goals being “substantially uncertain.” The Committee may determine that such Awards shall be granted, exercised and/or settled upon achievement of any single performance goal or of two
(2) or more performance goals. Performance goals may differ for Awards granted to any one Grantee or to different Grantees. 
  

	 	14.6.2.	Timing For Establishing Performance Goals. 

 Performance goals for any Performance-Based Award shall be established not later than the earlier of (a) 90 days after the beginning of any Performance Period applicable to such Award, and
(b) the date on which twenty-five percent (25%) of any Performance Period applicable to such Award has expired, or at such other date as may be required or permitted for compensation payable to a Covered Employee to constitute
Performance-Based Compensation. 
  

	 	14.6.3.	Settlement of Awards; Other Terms. 

 Settlement of Performance-Based Awards shall be in cash, shares of Stock, other Awards or other property, as determined in the sole discretion of the Committee. The Committee may, in its sole discretion,
reduce the amount of a settlement otherwise to be made in connection with such Awards. The Committee shall specify the circumstances in which such Performance-Based Awards shall be paid or forfeited in the event of termination of Service by the
Grantee prior to the end of a Performance Period or settlement of such Awards. 
  

	 	14.6.4.	Performance Measures. 

The performance goals upon which the payment or vesting of a Performance-Based Award to a Covered Employee that is intended to qualify as
Performance-Based Compensation may be conditioned shall be limited to the following Performance Measures, with or without adjustment: 
 (a) net earnings or net income; 
 (b) operating earnings; 

(c) pretax earnings; 

  
 19 

 (d) earnings per share; 

(e) share price, including growth measures and total stockholder return; 

(f) earnings before interest and taxes; 
 (g) earnings before interest, taxes, depreciation and/or amortization; 
 (h)
earnings before interest, taxes, depreciation and/or amortization as adjusted to exclude any one or more of the following: 
  

	 	•	 	 stock-based compensation expense; 

  

	 	•	 	 income from discontinued operations; 

  

	 	•	 	 gain on cancellation of debt; 

  

	 	•	 	 debt extinguishment and related costs; 

  

	 	•	 	 restructuring, separation and/or integration charges and costs; 

 

	 	•	 	 reorganization and/or recapitalization charges and costs; 

 

	 	•	 	 impairment charges; 

  

	 	•	 	 gain or loss related to investments; 

  

	 	•	 	 sales and use tax settlement; and 

  

	 	•	 	 gain on non-monetary transaction. 

 (i) sales or revenue growth, whether in general, by type of product or service, or by type of customer; 
 (j) gross or operating margins; 
 (k) return measures, including return on assets,
capital, investment, equity, sales or revenue; 
 (l) cash flow, including: 

 

	 	•	 	 operating cash flow; 

  

	 	•	 	 free cash flow, defined as earnings before interest, taxes, depreciation and/or amortization (as adjusted to exclude any one or more of the items that
may be excluded pursuant to the Performance Measure specified in clause (h) above) less capital expenditures; 

  

	 	•	 	 levered free cash flow, defined as free cash flow less interest expense; 

 

	 	•	 	 cash flow return on equity; and 

  

	 	•	 	 cash flow return on investment; 

 (m) productivity ratios; 
 (n) expense targets; 

(o) market share; 
 (p) financial ratios as provided in credit agreements of the Company and its subsidiaries; 
 (q) working capital targets; 

  
 20 

 (r) completion of acquisitions of businesses or companies; 

(s) completion of divestitures and asset sales; 
 (t) customer satisfaction as measured using the Net Promoter Score (NPS) metric (based on surveys of customers of the Company and its subsidiaries); or 

(u) any combination of the foregoing business criteria. 
 Performance under any of the foregoing Performance Measures (a) may be used to measure the performance of (i) the Company and its Subsidiaries and other Affiliates as a whole, (ii) the
Company, any Subsidiary, and/or any other Affiliate or any combination thereof, or (iii) any one or more business units of the Company, any Subsidiary, and/or any other Affiliate, as the Committee, in its sole discretion, deems appropriate and
(b) may be compared to the performance of one or more other companies or one or more published or special indices designated or approved by the Committee for such comparison, as the Committee, in its sole discretion, deems appropriate. In
addition, the Committee, in its sole discretion, may select performance under the Performance Measure specified in clause (e) above for comparison to performance under one or more stock market indices designated or approved by the Committee.
The Committee also shall have the authority to provide for accelerated vesting of any Performance-Based Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Section 14. 

 

	 	14.6.5.	Evaluation of Performance. 

The Committee may provide in any Performance-Based Award that any evaluation of performance may include or exclude any of the following
events that occur during a Performance Period: (a) asset write-downs; (b) litigation or claims, judgments or settlements; (c) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported
results; (d) any reorganization or restructuring events or programs; (e) extraordinary, non-core, non-operating or non-recurring items; (f) acquisitions or divestitures; and (g) foreign exchange gains and losses. To the extent
such inclusions or exclusions affect Awards to Covered Employees that are intended to qualify as Performance-Based Compensation, such inclusions or exclusions shall be prescribed in a form that meets the requirements of Code Section 162(m) for
deductibility. 
  

	 	14.6.6.	Adjustment of Performance-Based Compensation. 

 The Committee shall have the sole discretion to adjust Awards that are intended to qualify as Performance-Based Compensation, either on a formula or discretionary basis, or on any combination thereof, as
the Committee determines consistent with the requirements of Code Section 162(m) for deductibility. 
  

	 	14.6.7.	Committee Discretion. 

 In
the event that Applicable Laws change to permit Committee discretion to alter the governing Performance Measures without obtaining stockholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining
stockholder approval, provided that the exercise of such discretion shall not be inconsistent with the requirements of Code Section 162(m). In addition, in the event that the Committee determines that it is advisable to grant Awards that
shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base vesting on Performance Measures other than those set forth in
Section 14.6.4. 
  

	 	14.7.	Status of Awards Under Code Section 162(m). 

 It is the intent of the Company that Performance-Based Awards under Section 14.6 granted to persons who are designated by the Committee as likely to be Covered Employees within the meaning of
Code Section 162(m) 

  
 21 

 
and the regulations promulgated thereunder shall, if so designated by the Committee, constitute “qualified performance-based compensation” within the meaning of Code
Section 162(m). Accordingly, the terms of Section 14.6, including the definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent with Code Section 162(m). If any provision of the
Plan or any agreement relating to any such Performance-Based Award does not comply or is inconsistent with the requirements of Code Section 162(m), such provision shall be construed or deemed amended to the extent necessary to conform to such
requirements. 
  

	15.	PARACHUTE LIMITATIONS 

 If
any Grantee is a “disqualified individual,” as defined in Code Section 280G(c), then, notwithstanding any other provision of the Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by such
Grantee with the Company or an Affiliate, except an agreement, contract, or understanding that expressly addresses Code Section 280G or Code Section 4999 (an “Other Agreement”), and notwithstanding any formal or informal
plan or other arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or beneficiaries of which the Grantee is a member), whether or not such compensation is deferred, is in cash, or
is in the form of a benefit to or for the Grantee (a “Benefit Arrangement”), any right of the Grantee to any exercise, vesting, payment, or benefit under the Plan shall be reduced or eliminated: 

(a) to the extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights, payments, or benefits
to or for the Grantee under the Plan, all Other Agreements, and all Benefit Arrangements, would cause any exercise, vesting, payment, or benefit to the Grantee under the Plan to be considered a “parachute payment” within the meaning of
Code Section 280G(b)(2) as then in effect (a “Parachute Payment”); and 
 (b) if, as a result of receiving
such Parachute Payment, the aggregate after-tax amounts received by the Grantee from the Company under the Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by the Grantee
without causing any such payment or benefit to be considered a Parachute Payment. 
 The Company shall accomplish such reduction
by first reducing or eliminating any cash payments (with the payments to be made furthest in the future being reduced first), then by reducing or eliminating any accelerated vesting of Performance-Based Awards, then by reducing or eliminating any
accelerated vesting of Options or SARs, then by reducing or eliminating any accelerated vesting of Restricted Stock or Deferred Stock Units, then by reducing or eliminating any other remaining Parachute Payments. 

 

	16.	REQUIREMENTS OF LAW 

  

	 	16.1.	General. 

 The Company
shall not be required to offer, sell or issue any shares of Stock under any Award, whether pursuant to the exercise of an Option or SAR or otherwise, if the offer, sale or issuance of such shares of Stock would constitute a violation by the Grantee,
the Company or an Affiliate, or any other person, of any provision of Applicable Laws, including any federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or
qualification of any shares of Stock subject to an Award upon any securities exchange or under any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the offering, issuance, sale or purchase of shares of
Stock in connection with any Award, no shares of Stock may be offered, issued or sold to the Grantee or any other person under such Award, whether pursuant to the exercise of an Option or SAR or otherwise, unless such listing, registration or
qualification shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of such Award. Without limiting the generality of the foregoing,
upon the exercise of any Option or any SAR that may be settled in shares of Stock or 

  
 22 

 
the delivery of any shares of Stock underlying an Award, unless a registration statement under the Securities Act is in effect with respect to the shares of Stock subject to such Award, the
Company shall not be required to offer, sell or issue such shares of Stock unless the Committee shall have received evidence satisfactory to it that the Grantee or any other person exercising such Option or SAR or accepting delivery of such shares
may acquire such shares of Stock pursuant to an exemption from registration under the Securities Act. Any determination in this connection by the Committee shall be final, binding, and conclusive. The Company may register, but shall in no event be
obligated to register, any shares of Stock or other securities issuable pursuant to the Plan pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the exercise of an Option or a SAR or
the issuance of shares of Stock or other securities issuable pursuant to the Plan or any Award to comply with any Applicable Laws. As to any jurisdiction that expressly imposes the requirement that an Option or SAR that may be settled in shares of
Stock shall not be exercisable until the shares of Stock subject to such Option or SAR are registered under the securities laws thereof or are exempt from such registration, the exercise of such Option or SAR under circumstances in which the laws of
such jurisdiction apply shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption. 
  

	 	16.2.	Rule 16b-3. 

 During any
time when the Company has a class of equity securities registered under Section 12 of the Exchange Act, it is the intention of the Company that Awards pursuant to the Plan and the exercise of Options and SARs granted hereunder that would
otherwise be subject to Section 16(b) of the Exchange Act shall qualify for the exemption provided by Rule 16b-3 under the Exchange Act. To the extent that any provision of the Plan or action by the Committee does not comply with the
requirements of such Rule 16b-3, such provision or action shall be deemed inoperative with respect to such Awards to the extent permitted by Applicable Laws and deemed advisable by the Committee, and shall not affect the validity of the Plan. In the
event that such Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify the Plan in any respect necessary or advisable in its judgment to satisfy the requirements of, or to permit the Company to avail itself of the
benefits of, the revised exemption or its replacement. 
  

	17.	EFFECT OF CHANGES IN CAPITALIZATION 

  

	 	17.1.	Changes in Stock. 

 If the
number of outstanding shares of Stock is increased or decreased or the shares of Stock are changed into or exchanged for a different number of shares or kind of capital stock or other securities of the Company on account of any recapitalization,
reclassification, stock split, reverse stock split, spin-off, combination of stock, exchange of stock, stock dividend or other distribution payable in capital stock, or other increase or decrease in shares of Stock effected without receipt of
consideration by the Company occurring after the Effective Date, the number and kinds of shares of stock for which grants of Options and other Awards may be made under the Plan, including the share limits set forth in Section 6.2, shall
be adjusted proportionately and accordingly by the Committee. In addition, the number and kind of shares of stock for which Awards are outstanding shall be adjusted proportionately and accordingly by the Committee so that the proportionate interest
of the Grantee therein immediately following such event shall, to the extent practicable, be the same as immediately before such event. Any such adjustment in outstanding Options or SARs shall not change the aggregate Option Price or SAR Price
payable with respect to shares that are subject to the unexercised portion of such outstanding Options or SARs, as applicable, but shall include a corresponding proportionate adjustment in the per share Option Price or SAR Price, as the case may be.
The conversion or exercise of any convertible securities of the Company shall not be treated as an increase in shares effected without receipt of consideration. Notwithstanding the foregoing, in the event of any distribution to the Company’s
stockholders of securities of any other entity or other assets (including an extraordinary dividend, but excluding a non-extraordinary dividend, declared and paid by the Company) without receipt of consideration by the Company, the Board or the
Committee constituted pursuant to Section 3.1.2 shall, in such manner as the Board or such Committee deems appropriate, adjust (a) the number and kind of shares of stock subject to outstanding Awards and/or (b) the aggregate
and per share Option Price of 

  
 23 

 
outstanding Options and the aggregate and per share SAR Price of outstanding Stock Appreciation Rights as required to reflect such distribution. 

 

	 	17.2.	Reorganization in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control. 

Subject to Section 17.3, if the Company shall be the surviving entity in any reorganization, merger or consolidation of the
Company with one or more other entities which does not constitute a Change in Control, any Option or SAR theretofore granted pursuant to the Plan shall pertain to and apply to the securities to which a holder of the number of shares of Stock subject
to such Option or SAR would have been entitled immediately following such reorganization, merger or consolidation, with a corresponding proportionate adjustment of the per share Option Price or SAR Price so that the aggregate Option Price or SAR
Price thereafter shall be the same as the aggregate Option Price or SAR Price of the shares of Stock remaining subject to the Option or SAR as in effect immediately prior to such reorganization, merger, or consolidation. Subject to any contrary
language in an Award Agreement or in another agreement with the Grantee, or otherwise set forth in writing, any restrictions applicable to such Award shall apply as well to any replacement shares received by the Grantee as a result of such
reorganization, merger or consolidation. In the event of any reorganization, merger or consolidation of the Company referred to in this Section 17.2, Performance-Based Awards shall be adjusted (including any adjustment to the Performance
Measures applicable to such Awards deemed appropriate by the Committee) so as to apply to the securities that a holder of the number of shares of Stock subject to such Performance-Based Awards would have been entitled to receive immediately
following such reorganization, merger or consolidation. 
  

	 	17.3.	Change in Control in which Awards are not Assumed. 

 Except as otherwise provided in the applicable Award Agreement or in another agreement with the Grantee, or as otherwise set forth in writing, upon the occurrence of a Change in Control in which
outstanding Options, SARs, Restricted Stock, Deferred Stock Units, Dividend Equivalent Rights or Other Equity-Based Awards are not being assumed or continued, the following provisions shall apply to such Award, to the extent not assumed or
continued: 
 (a) in each case with the exception of Performance-Based Awards, all outstanding Restricted Stock shall be deemed
to have vested, all Deferred Stock Units shall be deemed to have vested and the shares of Stock subject thereto shall be delivered, and all Dividend Equivalent Rights shall be deemed to have vested and the shares of Stock subject thereto shall be
delivered, immediately prior to the occurrence of such Change in Control, and either of the following two actions shall be taken: 
 (i) fifteen (15) days prior to the scheduled consummation of such Change in Control, all Options and SARs outstanding hereunder shall become immediately exercisable and shall remain exercisable for a
period of fifteen (15) days; or 
 (ii) the Committee may elect, in its sole discretion, to cancel any
outstanding Awards of Options, SARs, Restricted Stock, Deferred Stock Units and/or Dividend Equivalent Rights and pay or deliver, or cause to be paid or delivered, to the holder thereof an amount in cash or securities having a value (as determined
by the Committee acting in good faith), in the case of Restricted Stock or Deferred Stock Units and Dividend Equivalent Rights (for shares of Stock subject thereto), equal to the formula or fixed price per share paid to holders of shares of Stock
pursuant to such Change in Control and, in the case of Options or SARs, equal to the product of the number of shares of Stock subject to such Options or SARs (the “Award Stock”) multiplied by the amount, if any, by which
(x) the formula or fixed price per share paid to holders of shares of Stock pursuant to such transaction exceeds (y) the Option Price or SAR Price applicable to such Award Stock. 

(b) For Performance-Based Awards denominated in Stock, if less than half of the Performance Period has lapsed, such Performance-Based
Awards shall be converted into Restricted Stock or Performance Shares 

  
 24 

 
assuming target performance has been achieved (or into Unrestricted Stock if no further restrictions apply). If at least half the Performance Period has lapsed, such Performance-Based Awards
shall be converted into Restricted Stock or Performance Shares based on actual performance to date (or into Unrestricted Stock if no further restrictions apply). If actual performance is not determinable, such Performance-Based Awards shall be
converted into Restricted Stock or Performance Shares assuming target performance has been achieved, based on the discretion of the Committee (or into Unrestricted Stock if no further restrictions apply). 

(c) Other Equity-Based Awards shall be governed by the terms of the applicable Award Agreement. 

With respect to the Company’s establishment of an exercise window, (A) any exercise of an Option or SAR during the fifteen
(15)-day period referred to above shall be conditioned upon the consummation of the applicable Change in Control and shall be effective only immediately before the consummation thereof, and (B) upon consummation of any Change in Control, the
Plan and all outstanding but unexercised Options and SARs shall terminate. The Committee shall send notice of an event that shall result in such a termination to all natural persons and entities who hold Options and SARs not later than the time at
which the Company gives notice thereof to its stockholders. 
  

	 	17.4.	Change in Control in which Awards are Assumed. 

 Except as otherwise provided in the applicable Award Agreement or in another agreement with the Grantee, or as otherwise set forth in writing, upon the occurrence of a Change in Control in which
outstanding Options, SARs, Restricted Stock, Deferred Stock Units, Dividend Equivalent Rights or Other Equity-Based Awards are being assumed or continued, the following provisions shall apply to such Award, to the extent assumed or continued:

 The Plan and the Options, SARs, Restricted Stock, Deferred Stock Units, Dividend Equivalent Rights and Other Equity-Based
Awards granted under the Plan shall continue in the manner and under the terms so provided in the event of any Change in Control to the extent that provision is made in writing in connection with such Change in Control for the assumption or
continuation of such Options, SARs, Restricted Stock, Deferred Stock Units, Dividend Equivalent Rights and Other Equity-Based Awards, or for the substitution for such Options, SARs, Restricted Stock, Deferred Stock Units, Dividend Equivalent Rights
and Other Equity-Based Awards of new common stock options, stock appreciation rights, restricted stock, common stock units, dividend equivalent rights and other equity-based awards relating to the stock of a successor entity, or a parent or
subsidiary thereof, with appropriate adjustments as to the number of shares (disregarding any consideration that is not common stock) and option and stock appreciation rights exercise prices. 

 

	 	17.5.	Adjustments 

 Adjustments
under this Section 17 related to shares of Stock or other securities of the Company shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive. No fractional shares or other securities
shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share. The Committee may provide in the applicable Award Agreement at
the time of grant, in another agreement with the Grantee, or otherwise in writing at any time thereafter with the consent of the Grantee, for different provisions to apply to an Award in place of those provided in Sections 17.1, 17.2, 17.3
and 17.4. This Section 17 shall not limit the Committee’s ability to provide for alternative treatment of Awards outstanding under the Plan in the event of a change in control event involving the Company that is not a
Change in Control. 
  

	 	17.6.	No Limitations on Company. 

The making of Awards pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations, or changes of its capital or business structure 

  
 25 

 
or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or assets (including all or any part of the business or assets of any Subsidiary or other
Affiliate) or engage in any other transaction or activity. 
  

	18.	GENERAL PROVISIONS 

  

	 	18.1.	Disclaimer of Rights. 

 No
provision in the Plan or in any Award or Award Agreement shall be construed to confer upon any individual the right to remain in the employ or Service of the Company or an Affiliate, or to interfere in any way with any contractual or other right or
authority of the Company or an Affiliate either to increase or decrease the compensation or other payments to any natural person or entity at any time, or to terminate any employment or other relationship between any natural person or entity and the
Company or an Affiliate. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, in another agreement with the Grantee, or otherwise in writing, no Award granted under
the Plan shall be affected by any change of duties or position of the Grantee thereof, so long as such Grantee continues to provide Service. The obligation of the Company to pay any benefits pursuant to the Plan shall be interpreted as a contractual
obligation to pay only those amounts provided herein, in the manner and under the conditions prescribed herein. The Plan and Awards shall in no way be interpreted to require the Company to transfer any amounts to a third-party trustee or otherwise
hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan. 
  

	 	18.2.	Nonexclusivity of the Plan. 

 Neither the adoption of the Plan nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations upon the right and authority of the Board to
adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual or particular individuals) as the Board in its discretion
determines desirable. 
  

	 	18.3.	Withholding Taxes. 

 The
Company or an Affiliate, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any federal, state, or local taxes of any kind required by law to be withheld with respect to the vesting of or other
lapse of restrictions applicable to an Award or upon the issuance of any shares of Stock upon the exercise of an Option or pursuant to any other Award. At the time of such vesting, lapse, or exercise, the Grantee shall pay in cash to the Company or
an Affiliate, as the case may be, any amount that the Company or such Affiliate may reasonably determine to be necessary to satisfy such withholding obligation; provided that if there is a same-day sale of shares of Stock subject to an Award,
the Grantee shall pay such withholding obligation on the day on which such same-day sale is completed. Subject to the prior approval of the Company or an Affiliate, which may be withheld by the Company or such Affiliate, as the case may be, in its
sole discretion, the Grantee may elect to satisfy such withholding obligation, in whole or in part, (a) by causing the Company or such Affiliate to withhold shares of Stock otherwise issuable to the Grantee or (b) by delivering to the
Company or such Affiliate shares of Stock already owned by the Grantee. The shares of Stock so withheld or delivered shall have an aggregate Fair Market Value equal to such withholding obligation. The Fair Market Value of the shares of Stock used to
satisfy such withholding obligation shall be determined by the Company or such Affiliate as of the date on which the amount of tax to be withheld is to be determined. A Grantee who has made an election pursuant to this Section 18.3 may
satisfy such Grantee’s withholding obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. The maximum number of shares of Stock that may be withheld from any
Award to satisfy any federal, state or local tax withholding requirements upon the exercise, vesting, or lapse of restrictions applicable to any Award or payment of shares of Stock pursuant to such Award, as applicable, may not exceed such number

  
 26 

 
of shares of Stock having a Fair Market Value equal to the minimum statutory amount required by the Company or the applicable Affiliate to be withheld and paid to any such federal, state or local
taxing authority with respect to such exercise, vesting, lapse of restrictions, or payment of shares of Stock. Notwithstanding Section 2.21 or this Section 18.3, for purposes of determining taxable income and the amount of
the related tax withholding obligation pursuant to this Section 18.3, for any shares of Stock subject to an Award that are sold by or on behalf of a Grantee on the same date on which such shares may first be sold pursuant to the terms of
the related Award Agreement, the Fair Market Value of such shares shall be the sale price of such shares on such date (or if sales of such shares are effectuated at more than one sale price, the weighted average sale price of such shares on such
date), so long as such Grantee has provided the Company, or its designee or agent, with advance written notice of such sale. 
  

	 	18.4.	Captions. 

 The use of
captions in the Plan or any Award Agreement is for convenience of reference only and shall not affect the meaning of any provision of the Plan or such Award Agreement. 
  

	 	18.5.	Other Provisions. 

 Each
Award granted under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Committee, in its sole discretion. 
  

	 	18.6.	Number and Gender. 

 With
respect to words used in the Plan, the singular form shall include the plural form and the masculine gender shall include the feminine gender, as the context requires. 
  

	 	18.7.	Severability. 

 If any
provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms,
and all provisions shall remain enforceable in any other jurisdiction. 
  

	 	18.8.	Governing Law. 

 The
validity and construction of the Plan and the instruments evidencing the Awards hereunder shall be governed by, and construed and interpreted in accordance with, the laws of the State of Delaware, other than any conflicts or choice of law rule or
principle that might otherwise refer construction or interpretation of the Plan and the instruments evidencing the Awards granted hereunder to the substantive laws of any other jurisdiction. 

  
 27 

	 	18.9.	Section 409A of the Code. 

 The Company intends to comply with Code Section 409A, or an exemption to Code Section 409A, with regard to Awards hereunder that constitute nonqualified deferred compensation within the meaning
of Code Section 409A. To the extent that the Company determines that a Grantee would be subject to the additional twenty percent (20%) tax imposed on certain nonqualified deferred compensation plans pursuant to Code Section 409A as a
result of any provision of any Award granted under the Plan, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional tax. The nature of any such amendment shall be determined by the Committee.

 *    *    * 
 To record adoption of the Plan by the Board as of March 21, 2011, and approval of the Plan by the stockholders on June 2, 2011, the Company has caused its authorized officer to execute the Plan.

  

			
	PAETEC HOLDING CORP.
		
	By:	 	Mary K. O’Connell
		
	Title: 	 	Executive Vice President, General Counsel and Secretary

  
 28

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]