Document:

SEC Exhibit

Exhibit 10.2

SEPARATION AGREEMENT AND RELEASE OF ALL CLAIMS

This Separation Agreement and Release of All Claims (“Agreement”) is made and entered into by and between Mauro Franic (hereinafter referred to as “Executive”) and AGS, LLC (hereinafter referred to as “the Company”) (collectively referred to as “the Parties”), with reference to the following:

WHEREAS, pursuant to the Employment Agreement between Executive and the Company entered into between the parties on July 1, 2015, Executive has been employed as the Chief Operating Officer (“COO”) of the Company; 

WHEREAS, in keeping with his status as an “at-will” employee, the Parties agree that Executive is resigning his employment as COO; and 

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, it is hereby agreed by and between the Parties as follows:

		
	1
	Agreement by Executive.  In exchange for the consideration provided herein, the adequacy of which is hereby acknowledged, Executive and the Company agree as follows:

		
	(a)
	Executive agrees that his resignation of employment as COO of the Company will become effective January 22, 2016, thus immediately terminating his right to receive further compensation and benefits pursuant to the Employment Agreement entered into between the parties on July 1, 2015.

		
	(b)
	Executive also agrees and acknowledges that in light of his resignation, effective January 22, 2016, any and all options to purchase 75,000 shares of Common Stock pursuant to the Non-Qualified Stock Option Agreement, entered into between the Parties dated July 17, 2015, and any and all options to purchase 20,000 shares of Common Stock pursuant to the Non-Qualified Stock Option Agreement entered into between the Parties, also dated July 17, 2015, are hereby and herewith forfeited;

		
	(c)
	Except as specifically set forth in this Agreement, the termination of Executive’s employment as COO with the Company by way of his resignation does not affect, nullify or otherwise supersede obligations set forth in other written agreements he has entered into with the Company, to the extent such agreements have provisions and terms that are intended to and which do survive the termination of such agreements, including without limitation, the following:   

Employment Agreement, dated July 1, 2015;
The parties agree that, among the provisions intended to survive the termination of the July 1, 2015 Employment Agreement are the Restrictive Covenants set forth in Paragraphs 5(a)-5(d) of that Agreement, as well as the Remedies set forth in Paragraph 5(f) pertaining to any violation of Paragraphs 5(a)-5(d);
		
	(d)
	So long as he signs this Agreement and does not revoke such agreement pursuant to the terms set forth at Paragraph 3(b)(iii), Executive acknowledges and agrees that he will be offered work by the Company as an independent contractor consultant for a maximum period of eighteen (18) months.  While the terms of the written independent contractor consultant agreement will control, Executive agrees in general that in his capacity as a consultant he will provide assistance to the Company regarding general inquiries into the business, PCI and Mexico customers and assistance with other required business activities as requested by the CEO of the Company. 

		
	2
	Agreement by the Company. In consideration for Executive signing this Agreement, and providing he does not revoke this Agreement pursuant to the terms set forth at Paragraph 3(b)(iii), and so long as he fulfills all the obligations set forth herein, the Company and Executive agree as follows:

		
	(a)
	Executive will be offered a written independent contractor consultant agreement for a maximum period of eighteen (18) months.  

		
	(b)
	The Company agrees that consultant fee will be Twenty-five Thousand Dollars ($25,000.00) per month from the date of execution of the independent contractor agreement through June 30, 2016.  Commencing July 1, 2016, the consultant fee will be Twelve Thousand Five Hundred Dollars ($12,500.00) per month. 

		
	(c)
	Provided Executive timely elects under COBRA to continue the group health and/or dental insurance coverage he participated in as of his resignation date, the Company agrees to reimburse Executive for the cost of his COBRA premiums for a period of five (5) months (through the end of June 2016).  Thereafter, Executive will bear the full cost of any continued COBRA coverage.  

		
	(d)
	The Company agrees to pay Executive a 2015 bonus for the second half of fiscal year 2015 in the amount of Eighty Thousand Dollars ($80,000), less necessary and appropriate withholdings. 

		
	(e)
	The Parties agree that the Company, upon notification and request by Executive, may agree to waive the continuing non-competition and/or non-solicitation obligations set forth in Paragraphs 5(b) and 5(c) of the July 1, 2015 Employment Agreement.  In the event that such a request is granted, the Parties agree that payments under the consulting agreement will immediately terminate upon the grant of such waiver.

		
	(f)
	Executive agrees that notwithstanding the provisions set forth above in Paragraph 2(e), payments under the consulting agreement will also immediately terminate in the event he obtains employment with or begins providing services to a third-party entity in excess of twenty (20) hours per week. 

		
	3
	General Release and Waiver of All Claims by Executive.  

		
	(a)
	In consideration of the benefits provided to Executive described in this Agreement, Executive, for himself, his spouse, and his successors and assigns (“Releasors”), does hereby waive, release, acquit and forever discharge the Company, and the Company’s parents, subsidiaries, affiliates, and related entities or companies, and all past and present officers, directors, shareholders, employees, agents, partners, attorneys, heirs, successors, and assigns, (hereinafter “Released Parties”) from any and all claims, actions, charges, complaints and causes of action (hereinafter collectively referred to as “claims”), of whatever nature, whether known or unknown, which exist or may exist on Releasors’ behalf against Released Parties as of the date of this Agreement, including but not limited to any and all tort claims, contract claims, wage claims, commission claims, bonus claims, overtime claims, wrongful termination claims, public policy claims, retaliation claims, statutory claims, personal injury claims, emotional distress claims, privacy claims, defamation claims, fraud claims, and any and all claims arising under any federal, state or other governmental statute, law, regulation or ordinance relating to employment, including but not limited to Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, and any federal, state or local laws covering discrimination in employment, including race, color, religious creed, national origin, ancestry, physical or mental disability, medical 

condition, marital status, military status, family care leave, sex, sexual orientation, age, and harassment or retaliation.  This Release excludes any claims which cannot legally be released by private agreement.  Executive understands that nothing in this Agreement shall preclude Executive from filing an administrative action with the U.S. Equal Employment Opportunity Commission or equivalent state agency.

		
	(b)
	Release of Age Discrimination Claims.  In accordance with the Older Workers Benefit Protection Act of 1990, Executive acknowledges that he agrees to the release of all known and unknown claims as of the date of this Agreement, including expressly the waiver of any rights or claims arising out of the Age Discrimination in Employment Act (“ADEA”) 29 U.S.C. § 621, et seq., and in connection with such waiver:

		
	(i)
	Executive is hereby advised to consult with an attorney prior to signing this Agreement.

		
	(ii)
	Executive shall have a period of twenty-one (21) days from the date of receipt of this Agreement, not counting the date on which he receives it, in which to consider the terms of the Agreement.  Executive further acknowledges that if he signs this Agreement before the end of the twenty-one (21) day period, it will be his personal, voluntary decision to do so and that he has not been pressured to make a decision sooner.  By signing on any date prior to the expiration of the twenty-one (21) day period, Executive voluntarily elects to forego waiting the full twenty-one (21) days to sign the Agreement.  Executive understands and agrees that any changes made following his original receipt of this Agreement, whether material or immaterial, do not restart the running of the 21-day consideration period. 

		
	(iii)
	Executive may revoke this Separation Agreement at any time during the first seven (7) days following the execution of this Separation Agreement, and this Agreement shall not be effective or enforceable until the seven-day period has expired.  Executive may revoke this Separation Agreement by notifying in writing Bruce C. Young, Littler Mendelson, 3960 Howard Hughes Parkway, Suite 300, Las Vegas, Nevada 89169, fax # 702.862.8811, prior to the expiration of the 7-day period.

		
	(iv)
	Executive acknowledges and agrees that the consideration provided in this Agreement is in addition to anything of value that Executive would otherwise be entitled to receive from the Company and constitutes valid consideration in exchange for the releases set forth in this Agreement.

		
	(v)
	Executive understands that rights or claims under the Age Discrimination in Employment Act of 1967 (29 U.S.C. § 621 et seq.) that may arise after the date of this Agreement is executed are not waived.

		
	4
	Non-Admission of Liability.  Executive acknowledges that Executive and the Company each deny any wrongdoing whatsoever in connection with their dealings with each other and that this Agreement shall not be construed as an admission of wrongdoing or liability by either party.   

		
	5
	Confidentiality of Agreement.  Executive agrees to maintain the terms of this Agreement as confidential and neither Executive, nor any person or entity acting on his behalf shall disclose (except to his legal, business and financial advisors, but only to the extent such disclosure is necessary for such persons to render professional services in connection therewith), any such terms of this Agreement to any third party, without the written consent of the Company, unless and only to the extent that such disclosure is required by law.  

		
	6
	Non-Disparagement.  Executive and the Company agree that neither will at any time defame, disparage or impugn the reputation of the other party (including any employees of the Company) in any future communications with any third-party or entity.  “Disparage,” as used in this Agreement, means to make any statement, written or oral, that casts the other party in a negative light of any kind, or implies 

or attributes any negative quality to another party.

		
	7
	Return of Company Property.  As a condition of receiving the consideration provided by this Agreement, Executive agrees to return to the Company all company property in Executive’s possession, custody or control, including, but not limited to, all equipment (including electronic equipment such as hard drives), files, documents and data of any kind, whether stored in paper, disk, tape, or any other electronic form containing any information of the Company, all keys, cards, badges or other access devices, and any other property of the Company.  

		
	8
	Confidentiality of Company Information. Executive acknowledges that during the course of his employment with Company, Executive had access to confidential information and trade secrets proprietary to the Company, which may have included, without limitation, information relating to the Company’s products, projects, programs, promotions, marketing, business plans or practices, business operations, employees, research and development, intellectual property, customer/client information, matters subject to litigation, and technology or financial information of the Company, its employees and related entities (the “Confidential Information”).  Executive further acknowledges that the Confidential Information is proprietary to the Company and has substantial value to the Company by reason of being confidential, that the Company has taken reasonable actions to preserve the confidentiality of the Confidential Information, that the unauthorized disclosure of any of the Confidential Information to any person or entity outside of the Company will result in immediate and irreparable competitive injury to the Company, and that such injury cannot adequately be remedied by an award of monetary damages.  Executive agrees that he was obligated during employment with the Company not to disclose at any time any Confidential Information to any person or entity without prior written permission from the President of the Company and understands that he will continue to be so obligated.  In the event of a breach or threatened breach of this Section 8, the Company shall have the right to seek in a court of competent jurisdiction, and to receive from such court, immediate injunctive relief without the posting of any bond or other security.  Nothing contained herein shall be construed as limiting or prohibiting the Company from pursuing any other remedies available to it in law or equity for any such breach or threatened breach of this Section.

		
	9
	Ownership of Claims.  Executive represents and warrants that Executive is the sole and lawful owner of all rights, title and interest in and to all released matters, claims and demands as herein contained and that there has been no assignment or other transfer of any interest of any claim or demand which Executive may have against the Company.

		
	10
	Successors and Assigns.  It is further expressly understood and agreed by Executive that this Agreement and all of its terms shall be binding upon each party’s respective representatives, heirs, executors, administrators, successors and assigns.

		
	11
	Attorneys’ Fees and Costs.  In the event any action, suit or other proceeding is instituted to remedy, prevent or obtain relief from a breach of this Agreement, arising out of a breach of this Agreement, involving claims within the scope of this Agreement, or pertaining to a declaration of rights under this Agreement, the prevailing party shall recover all of such party’s reasonable attorney’s fees and costs incurred in each and every such action, suit or other proceeding, including any and all appeals or petitions therefrom.  

		
	12
	Integration.  This Agreement constitutes a single, integrated, written contract expressing the entire agreement between the Parties as to the terms addressed herein.  In this regard, each party represents and warrants to the other party that such party is not relying on any promises or representations that do not appear written herein.  Each party further agrees that this Agreement can be amended or modified only by a written agreement, signed by all Parties.

		
	13
	Choice of Law.  This Agreement is made pursuant to and shall be governed, construed, enforced, and 

interpreted in all respects and for all purposes by and under the laws of the State of Nevada.

		
	14
	Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be in an original, but all of which shall constitute one and the same instrument, and facsimile pages containing the Parties’ signatures shall have the same effect as the originals.

		
	15
	Captions and Interpretations.  Section and paragraph titles or captions contained herein are inserted as a matter of convenience and for reference, and in no way define, limit, extend or describe the scope of this Agreement or any provision hereof.  No provision of this Agreement is be interpreted for or against either party because that party or his/her/its legal representative drafted such provision.

		
	16
	Voluntary Agreement.  Executive represents and agrees that Executive has had a reasonable period of time in which to consider the terms of this Agreement, has had an opportunity to consult with an attorney if Executive so chooses, and has entered into this Agreement knowingly and voluntarily, with a full understanding of and in agreement with all of its terms.

		
	17
	No Pending Actions.  Executive represents that he has not filed any complaints, claims, or actions against the Company, its officers, agents, directors, supervisors, employees, or representatives with any state, federal, or local agency or court as of the date of execution of this Agreement.  

IN WITNESS WHEREOF, the Parties hereto have executed this Separation Agreement and Release of All Claims on the dates indicated below.

	
				
	 
	 
	 
	 

	Dated:
	1/22/2016
	 
	/s/ Mauro Franic

	 
	 
	 
	Mauro Franic

	 
	 
	 
	 

	 
	 
	 
	AGS, LLC

	 
	 
	 
	 

	Dated:
	1/22/2016
	By:
	/s/ David Lopez

	 
	 
	 
	David Lopez, CEOSEC Exhibit

EXHIBIT 10.1
AMENDMENT AND RESTATEMENT OF THE
VECTRUS, INC. ANNUAL INCENTIVE PLAN FOR EXECUTIVE OFFICERS
(Effective as of January 1, 2016)

1. Purpose

The purpose of this Vectrus, Inc. Annual Incentive Plan for Executive Officers (the “Incentive Plan”) is to provide incentive compensation in the form of a cash award to executive officers of Vectrus, Inc. (the “Company”) for achieving specific pre-established performance objectives and to continue to motivate participating executive officers to achieve their business goals, while tying a portion of their compensation to measures affecting shareholder value. The Incentive Plan seeks to enable the Company to continue to be competitive in its ability to attract and retain executive officers of the highest caliber.

It is intended that compensation payable under the Incentive Plan may qualify as “performance-based compensation,” within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”) and regulations promulgated thereunder, if such qualification is desired.

2. Plan Administration

The Plan shall be administered by the Compensation and Personnel Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company, as constituted by the Board from time to time.

The Committee shall have full power and authority to administer, construe and interpret the provisions of the Incentive Plan and to adopt and amend administrative rules and regulations, agreements, guidelines and instruments for the administration of the Incentive Plan and for the conduct of its business as the Committee considers appropriate.

Except with respect to matters which under Section 162(m) of the Code are required to be determined in the sole and absolute discretion of the Committee, the Committee shall have full power, to the extent permitted by law, to delegate its authority to any officer or employee of the Company to administer and interpret the procedural aspects of the Incentive Plan, subject to the terms of the Incentive Plan, including adopting and enforcing rules to decide procedural and administrative issues.

The Committee may rely on opinions, reports or statements of officers or employees of the Company and of counsel to the Company (inside or retained counsel), public accountants and other professional or expert persons.

The Board reserves the right to amend or terminate the Incentive Plan in whole or in part at any time; provided, however, that except as necessary to maintain an outstanding incentive award’s qualification as performance-based compensation under Section 162(m) of the Code (“Performance-Based Compensation”) or as otherwise required by law, no amendments shall adversely affect or impair the rights of any participant that have previously accrued hereunder, without the written consent of the participant. Unless otherwise prohibited by applicable law, any amendment required to cause an incentive award to qualify as Performance-Based Compensation may be made by the Committee. No amendment to the Incentive Plan may be made to alter the class of individuals who are eligible to participate in the Incentive Plan, the performance criteria specified in Section 4 hereof or the maximum incentive award payable to any participant without shareholder approval unless shareholder approval of the amendment is not required in order for incentive awards paid to participants to constitute Performance-Based Compensation.

No member of the Committee shall be liable for any action taken or omitted to be taken or for any determination made by him or her in good faith with respect to the Incentive Plan, and the Company shall indemnify and hold harmless each member of the Committee against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Committee) arising out of any act or omission in connection with the administration or interpretation of the Incentive Plan, unless arising out of such person’s own fraud or bad faith. 

3. Eligible Executives

Executive officers of the Company and its subsidiaries, as defined by the Securities Exchange Act of 1934, Rule 3b-7, as that definition may be amended from time to time, shall be eligible to participate in the Incentive Plan. The Committee shall select from all eligible executive officers, those to whom incentive awards shall be granted under the Incentive Plan.
 

4. Plan Year, Performance Periods, Performance Measures and Performance Targets

Each fiscal year of the Incentive Plan (the “Plan Year”) shall begin on January 1 and end on December 31. The performance period (the “Performance Period”) with respect to which incentive awards may be payable under the Incentive Plan shall be the Plan Year unless the Committee designates one or more different Performance Periods.

The Committee shall establish the performance measures (the “Performance Measures”) to be used, which may include one or more of the following criteria: 

		
	•
	Backlog, including book to bill, total backlog, funded or unfunded; 

		
	•
	Cash flow, including operating cash flow and free cash flow; 

		
	•
	Earnings per share; 

		
	•
	Earnings, including earnings before or after interest, taxes, depreciation and/or amortization, net earnings; 

		
	•
	Economic Value Added (“EVA®”); 

		
	•
	Expense management; 

		
	•
	Expense targets, including SG&A or other allocated or indirect costs; 

		
	•
	Income measures, including net income (before or after taxes), operating income; 

		
	•
	Market share; 

		
	•
	Net operating profit;

		
	•
	Net sales growth;

		
	•
	Operating efficiency ratios, including days sales outstanding, accounts payable to sales, inventory turns, working capital as a percent of sales; 

		
	•
	Productivity ratios; 

		
	•
	Profit margins, including gross margins, operating margins; 

		
	•
	Return measures, including return on assets, return on net assets, return on capital, return on investment, return on invested capital, return on total capital, return on equity; 

		
	•
	Revenues, sales, organic revenue, new business wins; and

		
	•
	Stock price, including growth measures, total shareholder return.

All Performance Measures shall be objectively determinable and, to the extent they are expressed in standard accounting terms, shall be according to generally accepted accounting principles as in existence on the date on which the applicable Performance Period is established and without regard to any changes in such principles after such date (unless the modification of a Performance Measure to take into account such a change is pre-established in writing at the time the Performance Measures are established in writing by the Committee and/or the modification would not affect the ability of the incentive award to qualify as Performance-Based Compensation).

Notwithstanding the foregoing, incentive awards that are not intended to qualify as Performance-Based Compensation may be based on the Performance Measures described above or such other measures as the Committee may determine.

The Committee shall establish the performance targets (the “Performance Targets”) to be achieved which shall be based on one or more Performance Measures relating to the Company as a whole or to the specific businesses of the Company, subsidiaries, operating groups, or operating units, as determined by the Committee. Performance Targets may be established on such terms as the Committee may determine, in its discretion, including in absolute terms, as a goal relative to performance in prior periods, or as a goal compared to the performance of one or more comparable companies or an index covering multiple companies. The Committee also shall establish with respect to each incentive award an objective formula to be used in calculating the amount of incentive award each participant shall be eligible to receive. There may be a sliding scale of payment dependent upon the percentage levels of achievement of Performance Targets.

The Performance Measures and Performance Targets, which may be different with respect to each participant and each Performance Period, must be set forth in writing by the Committee within the first ninety (90) days of the applicable Performance Period or, if sooner, prior to the time when twenty-five percent (25%) of the relevant Performance Period has elapsed.

5. Certification of Performance Targets and Calculation of Incentive Awards

After the end of each Performance Period, and prior to the payment for such Performance Period, the Committee must certify in writing the degree to which the Performance Targets for the Performance Period were achieved, including the specific target objective or objectives and the satisfaction of any other material terms of the incentive award. The Committee shall calculate the amount of each participant’s incentive award for such Performance Period based upon the Performance Measures and Performance Targets for such participant. In establishing Performance Targets and Performance Measures and in calculating the degree of achievement thereof, the Committee may include or exclude (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs, (e) any significant unusual or infrequently occurring items as described in Accounting Standards Codification 225-20 and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to shareholders for the applicable year, (f) acquisitions or divestitures, and (g) foreign exchange gains and losses. To the extent such inclusions or exclusions affect awards intended to qualify as Performance-Based Compensation, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility. The Committee shall have no authority or discretion to increase the amount of any participant’s incentive award as so determined to the extent such incentive award is intended to qualify as Performance-Based Compensation, but it may reduce the amount or totally eliminate any such incentive award if it determines in its absolute and sole discretion that such action is appropriate in order to reflect the participant’s performance or unanticipated factors during the Performance Period. The Committee shall have the authority to increase or decrease the amount of an incentive award to the extent the incentive award is not intended to qualify as Performance-Based Compensation.

The maximum payment that may be made with respect to incentive awards under the Plan to any participant in any one calendar year shall be $2,500,000; provided, however, that this limitation shall not prevent payment of an incentive award because of an Acceleration Event in a calendar year prior to the year it would ordinarily be paid.

6. Payment of Awards

Approved incentive awards shall be payable by the Company in cash to each participant, or to the participant’s estate in the event of the participant’s death, as soon as practicable (and in any event no later than 2-1/2 months) after the end of each Performance Period. No incentive award that is intended to qualify as Performance-Based Compensation may be paid under the Incentive Plan until the Committee has certified in writing that the relevant Performance Targets were achieved. If a participant is not an employee on the last day of the Performance Period, the Committee shall have sole discretion to determine what portion, if any, the participant shall be entitled to receive with respect to any award for the Performance Period. The Committee shall have the authority to adopt appropriate rules and regulations for the administration of the Incentive Plan in such termination cases.

The Company retains the right to deduct from any incentive awards paid under the Incentive Plan any Federal, state, local or foreign taxes required by law to be withheld with respect to such payment.

Notwithstanding the above, no incentive awards that are intended to qualify as Performance-Based Compensation and that will only so qualify if the Incentive Plan is approved by the requisite shareholders of the Company shall be paid under the Incentive Plan unless the Incentive Plan is approved by the requisite shareholders of the Company in a manner that satisfies the shareholder approval requirements of Section 162(m) of the Code.

7. Other Terms and Conditions

Any award made under this Incentive Plan shall be subject to the discretion of the Committee. No person shall have any legal claim to be granted an award under the Incentive Plan and the Committee shall have no obligation to treat participants uniformly. Except as may be otherwise required by law, incentive awards under the Incentive Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any kind, either voluntary or involuntary. Incentive awards 

granted under the Incentive Plan shall be payable from the general assets of the Company, and no participant shall have any claim with respect to any specific assets of the Company.

Nothing contained in the Incentive Plan shall give any participant the right to continue in the employment of the Company or affect the right of the Company to terminate the employment of a participant.

8.  Acceleration Event

An “Acceleration Event” shall occur if (i) a report on Schedule 13D shall be filed with the Securities and Exchange Commission pursuant to Section 13(d) of the Securities Exchange Act of 1934 (the “Act”) disclosing that any person (within the meaning of Section 13(d) of the Act), other than the Company or a subsidiary of the Company or any employee benefit plan sponsored by the Company or a subsidiary of the Company, is the beneficial owner directly or indirectly of thirty percent (30%) or more of the outstanding Common Stock, $0.01 par value, of the Company (the “Stock”); (ii) any person (within the meaning of Section 13(d) of the Act), other than the Company or a subsidiary of the Company, or any employee benefit plan sponsored by the Company or a subsidiary of the Company, shall purchase shares pursuant to a tender offer or exchange offer to acquire any Stock (or securities convertible into Stock) for cash, securities or any other consideration, provided that after consummation of the offer, the person in question is the beneficial owner (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of thirty percent (30%) or more of the outstanding Stock (calculated as provided in paragraph (d) of Rule 13d-3 under the Act in the case of rights to acquire Stock); (iii) the consummation of (A) any consolidation, business combination or merger involving the Company, other than a consolidation, business combination or merger involving the Company in which holders of Stock immediately prior to the consolidation, business combination or merger (x) hold fifty percent (50%) or more of the combined voting power of the Company (or the corporation resulting from the merger or consolidation or the parent of such corporation) after the merger and (y) have the same proportionate ownership of common stock of the Company (or the corporation resulting from the merger or consolidation or the parent of such corporation), relative to other holders of Stock immediately prior to the merger, business combination or consolidation, immediately after the merger as immediately before, or (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all the assets of the Company, (iv) there shall have been a change in a majority of the members of the Board within a 12-month period unless the election or nomination for election by the Company’s stockholders of each new director during such 12-month period was approved by the vote of two-thirds of the directors then still in office who (x) were directors at the beginning of such 12-month period or (y) whose nomination for election or election as directors was recommended or approved by a majority of the directors who were directors at the beginning of such 12-month period or (v) any person (within the meaning of Section 13(d) of the Act) (other than the Company or any subsidiary of the Company or any employee benefit plan (or related trust) sponsored by the Company or a subsidiary of the Company) becomes the beneficial owner (as such term is defined in Rule 13d-3 under the Act) of thirty percent (30%) or more of the Stock.

Upon the occurrence of such Acceleration Event, the Performance Measures for each Performance Period with respect to which incentive awards may be payable under the Incentive Plan shall be deemed to be achieved at the greater of (i) the Performance Target established for such Performance Measures or (ii) the Company’s actual achievement of such Performance Measures as of the Acceleration Event. Payment of the incentive awards, for the full year, will be made to each participant, in cash, within five (5) business days following such Acceleration Event.

9. Section 409A

It is intended that awards under the Incentive Plan will be exempt from Section 409A of the Code as “short-term deferrals” unless the Committee specifically determines otherwise, and the Incentive Plan and the terms and conditions of all awards provided hereunder shall be interpreted, construed and administered in accordance with this intent. Notwithstanding anything to the contrary contained herein, neither the Company nor any member of the Committee shall have any liability to any participant if the Incentive Plan or any award hereunder is subject to additional tax and/or penalties under Section 409A of the Code. To the extent applicable, the Incentive Plan and any awards hereunder shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder. To the extent an award under the Incentive Plan is determined to constitute deferred compensation subject to Section 409A of the Code (i) if such award is payable as a result of the participant’s termination of employment, the determination of whether the participant has experienced a termination of employment will be determined consistent with the rules relating to a “separation from service” as defined in Section 409A of the Code and the regulations thereunder, (ii) if such award is payable as a result of the participant’s termination of employment and the participant is deemed at the time of such termination of 

employment to be a “specified employee” under Section 409A of the Code, then such payment shall not be made until the earlier of (a) the expiration of the 6-month period following the participant’s separation from service or (b) the date of the participant’s death, and (iii) such award will only be paid as a result of an Acceleration Event to the extent the Acceleration Event is also an event described in Treas. Reg. Section 1.409A-3(i)(5); provided, however, that, in each case, the foregoing provisions in this sentence shall only be applicable to the extent required to avoid imposition of taxes and penalties pursuant to Section 409A of the Code.

10. Clawback, Repayment or Recapture Policy   

Notwithstanding anything to the contrary, to the extent allowed under applicable law or regulatory filings, unless otherwise determined by the Committee, all incentive awards granted under the Incentive Plan, and any related payments made under the Incentive Plan, shall be subject to the requirements of any applicable clawback, repayment or recapture policy implemented by the Company, including any such policy adopted to comply with applicable law (including without limitation the Dodd-Frank Wall Street Reform and Consumer Protection Act) or securities exchange listing standards and any rules or regulations promulgated thereunder, to the extent set forth in such policy and/or in any notice or agreement relating to an incentive award or payment under the Incentive Plan.

11. Miscellaneous

The Incentive Plan first became effective on September 27, 2014. The Incentive Plan shall remain in effect unless/until terminated by the Board; provided, however, that if an Acceleration Event has occurred no amendment or termination shall impair the rights of any participant with respect to any prior award, unless required by applicable law. This Incentive Plan shall be construed and governed in accordance with the laws of the State of New York.

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