Document:

Form of Employee Matters Agreement

 Exhibit 10.3 
 FORM OF EMPLOYEE MATTERS AGREEMENT 
 by and between 

CARROLS RESTAURANT GROUP, INC., 
 CARROLS CORPORATION 
 and 

FIESTA RESTAURANT GROUP, INC. 
 Dated as of                     , 2012 

 EMPLOYEE MATTERS AGREEMENT 

This EMPLOYEE MATTERS AGREEMENT (this “Agreement”) is made as of
                    , 2012 by and between Carrols Restaurant Group, Inc., a Delaware corporation (“CRG”), Carrols
Corporation, a Delaware corporation (“Carrols”) and Fiesta Restaurant Group, Inc., a Delaware corporation (“Fiesta”) and, as of the date hereof, an indirect wholly-owned subsidiary of CRG. CRG and
Fiesta are referred to herein as “Parties” or each individually as a “Party.” 

WHEREAS, CRG, through the Fiesta Subsidiaries (as defined herein), is engaged in the business of owning, operating, and franchising Pollo
Tropical and Taco Cabana restaurants, as described more fully in the Form 10 Registration Statement (as defined herein) (the “Transferred Business”); 
 WHEREAS, the board of directors of CRG (the “CRG Board”) has determined that it would be advisable and in the best interests of CRG and its stockholders for CRG’s wholly-owned
subsidiary, Carrols to transfer to Fiesta (i) 100% of the ownership interests of the Fiesta Subsidiaries (as defined herein) and (ii) the Transferred Business Assets (as defined herein) as further described in the Separation and
Distribution Agreement by and between CRG and Fiesta (the “Separation and Distribution Agreement”), of even date herewith; 
 WHEREAS, the CRG Board has determined that it would be advisable and in the best interest of CRG and its stockholders for CRG Subsidiary to distribute to CRG, without any consideration being paid by CRG,
all of the outstanding shares of Fiesta common stock (“Fiesta Shares”) owned by CRG Subsidiary (the “Internal Distribution”); 
 WHEREAS, the CRG Board has determined that it would be advisable and in the best interests of CRG and its stockholders for CRG, after the completion of the Internal Distribution, to distribute on a pro
rata basis to the holders of shares of CRG’s common stock (“CRG Shares”), without any consideration being paid by the holders of such CRG Shares, all of the Fiesta Shares owned by CRG as of the Distribution Date (as
defined herein) (such distribution, the “External Distribution”); 
 WHEREAS, in connection with the
Distribution (as defined herein), the Parties desire to enter into this Employee Matters Agreement. 
 NOW, THEREFORE, in
consideration of the mutual promises contained herein and in the Separation and Distribution Agreement, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 

1.01 Definitions. Unless otherwise defined herein, each capitalized term shall have the meaning specified for such term in
the Separation and Distribution Agreement. As used in this Agreement: 
 “Account Transfer Date” has the
meaning set forth in Section 3.01(c) of this Agreement. 

  
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 “Affiliate” means, with respect to any Person, any other Person
that, at the time of determination, directly or indirectly Controls, is Controlled by or is under common Control with such Person. After the Distribution, Fiesta and CRG shall not be deemed to be under common Control for purposes hereof due solely
to the fact that Fiesta and CRG have common stockholders. 
 “Agreement” means this Employee Matters
Agreement together with those parts of the Separation and Distribution Agreement referenced herein and all schedules hereto and all amendments, modifications and changes hereto and thereto. 

“Carrols” has the meaning set forth in the recitals of this Agreement. 

“Carrols 401(k) Plan” means the Carrols Corporation Retirement Savings Plan. 

“Carrols Deferred Compensation Plan” has the meaning set forth in Section 3.02(b) of this Agreement.

 “Carrols Employee” means a person who is employed by a CRG Party immediately following the
Distribution Date. 
 “Carrols FSA” has the meaning set forth in Section 4.06 of this Agreement.

 “Carrols Non-ERISA Benefit Arrangement” means any Non-ERISA Benefit Arrangement sponsored or
maintained by a CRG Party. 
 “Carrols Options” means stock options granted under the Carrols Stock
Incentive Plan. 
 “Carrols Parties” means Carrols and its Subsidiaries (including those formed or
acquired after the date hereof), other than the Fiesta Parties. 
 “Carrols Plan” means any Pension Plan
or Welfare Plan sponsored or maintained by a CRG Party. 
 “Carrols Restricted Stock” has the meaning
set forth in Section 6.01 of this Agreement. 
 “Carrols Short Term Disability Plan” means a
short-term disability plan sponsored or maintained by a CRG Party. 
 “Carrols Stock Incentive Plan”
means the Carrols Restaurant Group Inc. 2006 Stock Incentive Plan, as amended. 
 “Carrols Welfare
Plans” means a Welfare Plan sponsored or maintained by a CRG Party. 
 “COBRA” has the
meaning set forth in Section 4.04 of this Agreement. 
 “Code” means the Internal Revenue Code of
1986. 

  
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 “Control” means, as to any Person, the direct or indirect power to
direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms “Controlled by” and “under common Control” have correlative
meanings. 
 “CRG” has the meaning set forth in the recitals of this Agreement. 

“CRG Board” has the meaning set forth in the recitals of this Agreement. 

“CRG Parties” means CRG and its Subsidiaries (including those formed or acquired after the date hereof), other
than the Fiesta Parties. 
 “CRG Shares” has the meaning set forth in the recitals of this Agreement.

 “Distribution” means the transactions contemplated by the Internal Distribution and the
External Distribution. 
 “Distribution Date” means the date determined by the CRG Board in accordance
with the Separation and Distribution Agreement as the date as of which the Distribution will be effected. 

“ERISA” means the Employee Retirement Income Security Act of 1974. 

“Executive” means an executive of either Party prior to the Distribution Date. 

“External Distribution” has the meaning given such term in the recitals hereto. 

“Fiesta” has the meaning set forth in the recitals of this Agreement. 

“Fiesta 2012 Bonus Plan” has the meaning set forth in Section 5.03 of this Agreement. 

“Fiesta Deferred Compensation Plan” has the meaning set forth in Section 3.02(a) of this Agreement.

 “Fiesta Employee” means (i) each individual who immediately prior to the Distribution Date is
employed by a Fiesta Party, including each Transferred Employee, and (ii) each former employee of a CRG Party or a Fiesta Party whose last employment with any of such parties prior to termination was with a Fiesta Party. 

“Fiesta FSA” has the meaning set forth in Section 4.06 of this Agreement. 

“Fiesta Participant” means a participant in a Fiesta Plan who, at the relevant time, is (i) a Fiesta
Employee, (ii) a former Fiesta Employee who is not a Carrols Employee, or (iii) a beneficiary, dependent or alternate payee of any of the foregoing. 
 “Fiesta Party” or “Fiesta Parties” means Fiesta, the Fiesta Subsidiaries, and any other Subsidiary of Fiesta (including those formed or acquired after the date
hereof). 

  
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 “Fiesta Plan” means any Pension Plan or Welfare Plan sponsored or
maintained by a Fiesta Party. 
 “Fiesta Pre-Distribution Employee” means each individual who
immediately prior to the Distribution Date is employed by a Fiesta Party and is not a Transferred Employee, and (ii) each former employee of a CRG Party or a Fiesta Party before the Distribution Date whose last employment with any of such
parties prior to termination was with a Fiesta Party. 
 “Fiesta Restricted Stock” has the meaning set
forth in Section 6.02 of this Agreement. 
 “Fiesta Shares” has the meaning set forth in the
recitals of this Agreement. 
 “Fiesta Short Term Disability Plan” means a short-term disability plan
sponsored or maintained by a Fiesta Party. 
 “Fiesta Spin-off 401(k) Plan” has the meaning set forth in
Section 3.01(b) of this Agreement. 
 “Fiesta Subsidiaries” means, collectively, Pollo Franchise,
Inc., Pollo Operations, Inc., Taco Cabana Inc., and each Subsidiary of any of the foregoing. 
 “Fiesta Welfare
Plan” means a Welfare Plan sponsored or maintained by a Fiesta Party. 
 “Form 10 Registration
Statement” means the registration statement on Form 10 filed by Fiesta with the SEC to effect the registration of the Fiesta Shares under the Securities Exchange Act of 1934 (including all amendments or supplements thereto, in each case
filed with the SEC prior to the Distribution Date). 
 “FSA Spin-off” has the meaning set forth in
Section 4.06 of this Agreement. 
 “HIPAA” has the meaning set forth in Section 4.04 of this
Agreement. 
 “Internal Distribution” has the meaning set forth in the recitals of this Agreement.

 “IRS” means the Internal Revenue Service. 

“Non-ERISA Benefit Arrangement” means any contract, agreement, policy, practice, program, plan, trust or
arrangement, other than a Pension Plan or Welfare Plan, providing for benefits, perquisites or compensation of any nature to any Fiesta Employee, or to any family member, dependent or beneficiary of any such Fiesta Employee, including tuition
reimbursement, supplemental unemployment, vacation, sick, personal or bereavement days, holidays, retirement, deferred compensation, profit sharing, bonus, stock-based compensation or other forms of incentive compensation. 

“Party” or “Parties” has the meaning set forth in the recitals of this Agreement. 

“Pension Plan” means any pension plan as defined in Section 3(2) of ERISA, without regard to
Section 4(b)(4) or 4(b)(5) of ERISA. 

  
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 “Person” means any individual, corporation, partnership, joint
venture, limited liability company, entity, association, joint-stock company, trust, unincorporated organization or governmental authority. 
 “QDRO” has the meaning set forth in Section 3.01(c) of this Agreement. 
 “SEC” means the United States Securities and Exchange Commission. 
 “Separation and Distribution Agreement” has the meaning set forth in the recitals of this Agreement. 
 “Subsidiary” means, when used with reference to any Person, any corporation or other entity or organization, whether incorporated or unincorporated, of which at least a majority of
the securities or interests having by the terms thereof ordinary voting power to elect at least a majority of the board of directors or others performing similar functions with respect to such corporation or other entity or organization is directly
or indirectly owned or Controlled by such Person; provided, however, that no corporation or other organization that is not directly or indirectly wholly-owned by any other Person shall be a Subsidiary of such other Person unless such other Person
Controls, or has the right, power or ability to Control, that Person. After the Distribution, CRG and Fiesta shall not be deemed to be under common Control for purposes hereof due solely to the fact that CRG and Fiesta have common stockholders.

 “Tax Matters Agreement” means the Tax Matters Agreement by and between CRG, Carrols and Fiesta dated
as of                     , 2012. 
 “Transferred Business” has the meaning set forth in the recitals to this Agreement 
 “Transferred Business Assets” means the assets (other than stock of the Fiesta Subsidiaries) that are used in, or in connection with, the Transferred Business transferred or to be
transferred to Fiesta as part of the Plan of Separation. 
 “Transferred Deferred Compensation Balance”
has the meaning set forth in Section 3.02(c) of this Agreement. 
 “Transferred Employee” means
each employee of a CRG Party (other than Fiesta or any Fiesta Party) listed on Exhibit A hereto whose employment shall be transferred to a Fiesta Party within 30 days of, or immediately prior to, the Distribution. 

“Transferred Executive” means a Transferred Employee who was an executive of a CRG Party immediately before the
Distribution Date. 
 “Transition Services Agreement” means the Transition Services Agreement by and
between CRG, Carrols and Fiesta dated as of                     , 2012. 
 “Welfare Plan” means any employee welfare plan as defined in Section 3(1) of ERISA, without regard to Section 4(b)(4) or 4(b)(5) of ERISA. 

  
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 1.02 Rules of Construction. 

(a) In this Agreement, unless the context clearly indicates otherwise: 

(i) words used in the singular include the plural and words used in the plural include the singular; 

(ii) reference to any Person includes such Person’s successors and assigns but, if applicable, only if such
successors and assigns are permitted by this Agreement; 
 (iii) reference to any Person’s
“Subsidiaries” shall be deemed to mean such Person’s Subsidiaries following the Distribution; 

(iv) reference to any gender includes the other gender; 

(v) the words “include,” “includes” and “including” shall be deemed to be followed by the
words “without limitation;” 
 (vi) references to any Article, Section or schedule means such Article
or Section of, or such schedule to, this Agreement, as the case may be; 
 (vii) the words “herein,”
“hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision hereof; 

(viii) reference to any agreement, instrument or other document means such agreement, instrument or other document as
amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement; 
 (ix) reference to any law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part,
and in effect at the time of determining compliance or applicability; 
 (x) relative to the determination of any
period of time, “from” means “from and including,” “to” means “to but excluding” and “through” means “through and including;” 

(xi) accounting terms used herein shall have the meanings ascribed to them by CRG and its Subsidiaries, including Fiesta,
in its and their internal accounting and financial policies and procedures in effect immediately prior to the date of this Agreement; 
 (xii) if there is any conflict between the provisions of the Separation and Distribution Agreement and this Agreement, the provisions of this Agreement shall control with respect to the subject matter
hereof; if there is any conflict between the provisions of the body of this Agreement and any schedule hereto, the provisions of the body of this Agreement shall control unless explicitly stated otherwise in such schedule; 

  
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 (xiii) titles to Articles and headings of Sections contained in this
Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement; 

(xiv) any portion of this Agreement obligating a Party to take any action or refrain from taking any action, as the case
may be, shall mean that such Party shall also be obligated to cause its relevant Subsidiaries to take such action or refrain from taking such action, as the case may be; and 

(xv) unless otherwise specified in this Agreement, all references to dollar amounts herein shall be in respect of lawful
currency of the United States. 
 (b) The titles to Articles and headings of Sections contained in this Agreement have been
inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement, and this Agreement shall be construed without regard to any presumption or rule requiring construction
or interpretation against the party drafting an instrument or causing any instrument to be drafted. 
 ARTICLE II

 TRANSFER OF EMPLOYEES 
 2.01 Prior to the Distribution Date, to the extent not previously transferred, all Carrols Employees that are or as of the Distribution Date are expected to be, primarily employed by Fiesta
Parties, shall be transferred to the Fiesta Party. Such transfer shall not be treated as a separation from service for purposes of any Carrols Plan or any agreement (or any benefit thereunder) which is subject to the provisions of Section 409A
of the Code. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall create any obligation on the part of any Fiesta Party to continue the employment of any employee for any definite period following the
Distribution Date or to change the employment status of any employee from “at will.” 
 ARTICLE III 

DEFINED CONTRIBUTION PLANS AND DEFERRED COMPENSATION PLANS 

3.01 Defined Contribution Plans. 
 (a) Carrols 401(k) Plan. Except as provided in Section 3.01(c) below, following the Distribution Date the CRG Parties shall retain all obligations and liabilities under, or with respect to,
the Carrols 401(k) Plan. 
 (b) Fiesta Spin-off 401(k) Plan. Effective as of the Distribution, Fiesta shall establish a
qualified defined contribution retirement plan and trust (the “Fiesta Spin-off 401(k) Plan”). Fiesta shall be responsible for taking all necessary, reasonable and appropriate action to maintain and administer the Fiesta
Spin-off 401(k) Plan so that it is qualified under Code Section 401(a) and the trust thereunder is and continues to be exempt under Code Section 501(a). Fiesta 

  
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shall be responsible for any and all liabilities and other obligations with respect to the Fiesta Spin-off 401(k) Plan. As of the date of the establishment of the Fiesta Spin-off 401(k) Plan and
through the Distribution Date, the Fiesta Spin-off 401(k) Plan shall initially include terms that are substantially identical to the terms of the Carrols 401(k) Plan such that (for avoidance of doubt) the Carrols 401(k) Plan is substantially
replicated by the Fiesta Spin-off 401(k) Plan. 
 (c) Spin-Off of Carrols 401(k) Plan Assets. Within a reasonable period
of time after the Distribution Date (the “Account Transfer Date”), CRG shall cause the accounts and underlying assets and liabilities (including any outstanding loan balances and any qualified domestic relations orders
(“QDROs”)) in the Carrols 401(k) Plan attributable to Fiesta Employees who are employed by Fiesta as of the Distribution Date and all of the assets in the Carrols 401(k) Plan trust related thereto to be spun-off to the Fiesta
Spin-off 401(k) Plan, and Fiesta shall cause the Fiesta Spin-off 401(k) Plan and trust to accept such spin-off of accounts and underlying assets, liabilities, loans and QDROs. Effective as of the date of such spin-off, Fiesta shall cause the Fiesta
Spin-off 401(k) Plan to assume and to fully perform, pay and discharge all obligations of the Carrols 401(k) Plan relating to the accounts of Fiesta Participants as of the Account Transfer Date, to the extent the assets, liabilities, loans and QDROs
related to those accounts are actually spun-off from the Carrols 401(k) Plan to the Fiesta Spin-off 401(k) Plan, and the Fiesta Spin-off 401(k) Plan shall satisfy all protected benefit requirements under the Code, ERISA and applicable law with
respect to the spun-off accounts. The transfer of assets in the spin-off shall be conducted in accordance with Code Section 414(l), Treasury Regulation Section 1.414(1)-1, and ERISA Section 208. 

(d) Continuation of Elections. The Fiesta Spin-off 401(k) Plan shall recognize and maintain Carrols 401(k) Plan elections or
designations, including participant deferral elections, investment elections, beneficiary designations, and the rights of alternate payees under QDROs with respect to Fiesta Participants, to the extent such elections or designations are available
under the Fiesta Spin-off 401(k) Plan and continued pursuant to procedures adopted under the Fiesta Spin-off 401(k) Plan. 

3.02 Nonqualified Deferred Compensation Plan. 
 (a) Continuation of Fiesta Deferred Compensation Plan. Following the Distribution Date, the Fiesta Parties shall be the plan sponsors of the Fiesta Restaurant Group, Inc. and Subsidiaries Deferred
Compensation Plan (the “Fiesta Deferred Compensation Plan”). Following the Distribution Date, the CRG Parties shall have no liability or obligation with respect to such Fiesta Deferred Compensation Plan or any participants or
former participants in such plan with respect to their participation therein. 
 (b) Fiesta Deferred Compensation Plan.
Each Fiesta Employee who participated in the Amended and Restated Carrols Corporation and Subsidiaries Deferred Compensation Plan (the “Carrols Deferred Compensation Plan”) prior to the Distribution Date shall become eligible
to participate in the Fiesta Deferred Compensation, subject to the terms of such plan. 
 (c) Transfer of Carrols Deferred
Compensation Account Balances. Effective as of the Distribution Date, the Fiesta Deferred Compensation Plan shall assume the 

  
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accounts balances of any Fiesta Employee who participates in the Carrols Deferred Compensation (the “Transferred Deferred Compensation Balances”). Subject to Section 3.02(d)
below, the Fiesta Parties shall assume the liabilities and obligations of the Transferred Deferred Compensation Balances. The Fiesta Parties shall be solely responsible to pay and discharge all obligations, when such obligations become due, under
the Fiesta Deferred Compensation Plan. 
 (d) CRG Obligations with Respect to Transferred Employees. Within 30 days of
any Transferred Employee becoming a Fiesta Employee, Carrols shall transfer to Fiesta funds in an amount equal to such Transferred Employee’s Transferred Deferred Compensation Balance. 

(e) No Distributions on Separation. The CRG Parties and Fiesta Parties acknowledge that neither the Distribution nor any of the
other transactions contemplated by this Agreement, the Separation and Distribution Agreement or the other ancillary agreements will trigger a payment or distribution of compensation under either the Carrols Deferred Compensation Plan or the Fiesta
Deferred Compensation Plan for any Fiesta Participant and, consequently, that the payment or distribution of any compensation to which any Fiesta Participant is entitled under the Fiesta Deferred Compensation Plan will occur upon such Fiesta
Participant’s separation from service from the Fiesta Party or at such other time as provided in such Fiesta Deferred Compensation Plan or such Fiesta Participant’s deferral election. 

(f) Continuation of Elections. The Fiesta Deferred Compensation Plan shall recognize and maintain Carrols Deferred Compensation
Plan elections or designations, including participant deferral elections, investment elections, beneficiary designations, and the rights of alternate payees with respect to Fiesta Participants, to the extent such elections or designations are
available under the Fiesta Deferred Compensation Plan and continued pursuant to procedures adopted under the Fiesta Deferred Compensation Plan. 
 ARTICLE IV 
 WELFARE PLANS 

4.01 Continuation of Fiesta Welfare Plans. Following the Distribution Date, the Fiesta Parties shall continue to be the plan
sponsors of the Fiesta Welfare Plans. Following the Distribution Date, the CRG Parties shall have no liability or obligation with respect to such Fiesta Welfare Plans or any participants or former participants in such plans with respect to their
participation therein. 
 4.02 Coverage of Transferred Employees. On the first day of the month following the date the
Transferred Employee became a Fiesta Employee, such Transferred Employee (and any applicable dependent) shall become eligible to participate in the Fiesta Welfare Plans established by Fiesta prior to the Distribution Date for their participation,
subject to the terms of such plans. To the extent applicable to any Fiesta Welfare Plans in which Transferred Employees become eligible, Fiesta shall cause such Fiesta Welfare Plans to recognize all coverage and contribution elections made by the
Transferred Employees under the Carrols Welfare Plans in effect for the period immediately prior to the Distribution Date and shall apply such elections under the Fiesta Welfare Plans for the remainder of the period or periods for which such

  
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elections are by their terms applicable, in each case to the extent practicable. All beneficiary designations made by Transferred Employees under the Carrols Welfare Plans shall, to the extent
applicable, be transferred to, and be in full force and effect under, the Fiesta Welfare Plans until such beneficiary designations are replaced or revoked by the Transferred Employee who made the beneficiary designation. 

4.03 Welfare Plan Liabilities. 
 (a) Fiesta Liabilities. Fiesta and the Fiesta Welfare Plans, as applicable, shall retain and be responsible for all claims for welfare benefits (and for any liabilities arising as a result of such
claims) incurred with respect to any Fiesta Employee (or any eligible dependents of such Fiesta Employee) on or after the Distribution Date under the Fiesta Welfare Plans, and none of the CRG Parties or the Carrols Welfare Plans shall assume or
retain any such liabilities 
 (b) Certain Health Claims Assumed By Fiesta. Any unpaid claims (including claims incurred
but not yet reported) for health benefits under a Carrols Welfare Plan incurred prior to the Distribution Date by any Fiesta Pre-Distribution Employees (or any eligible dependents of such Fiesta Pre-Distribution Employee) shall be charged to Fiesta
and Fiesta or a Fiesta Welfare Plan shall reimburse any Carrols Welfare Plan to the extent it pays such claim after the Distribution Date. Notwithstanding the foregoing, to the extent any claim for health benefits is covered by an insurance policy
issued by a third party insurance company, such insurance policy shall remain obligated to pay such claim. 
 4.04 COBRA and
HIPAA Liabilities. Subject to CRG’s agreement to provide certain administrative services as specified in the Transition Services Agreement, effective as of the Distribution Date, Fiesta shall assume, or shall cause the Fiesta Welfare Plans
to assume, responsibility for the continuation coverage requirements under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), and the portability requirements under the Health Insurance
Portability and Accountability Act of 1996 (“HIPAA”) with respect to all Fiesta Employees (including Transferred Employees) and their qualified beneficiaries. Neither the Distribution nor any transfers of employment that
occur as of the Distribution Date shall constitute a COBRA qualifying event for purposes of COBRA. 
 4.05 Claims
Experience. The Parties shall take any action necessary to ensure that any claims experience under the Carrols Welfare Plans attributable to Fiesta Participants shall be allocated to the Fiesta Welfare Plans. 

4.06 Flexible Spending Accounts. Effective as of January 1, 2012, Fiesta established the Fiesta Flexible Spending Account
Plan (the “Fiesta FSA”) for the benefit of the Fiesta Employees. The Parties agree to spin-off any flexible accounts of Transferred Employees under the flexible spending account plan maintained by Carrols (the
“Carrols FSA”) to the Fiesta FSA (the “FSA Spin-off”) and Fiesta agrees to honor and continue any elections by such Transferred Employees that are in effect at the time of the spin-off until December 31,
2012. Following the FSA Spin-off, the Fiesta FSA shall assume and be responsible for all claims by Transferred Employees under the Carrols FSA that have not been paid at the time of the FSA Spin-off. 

  
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 4.07 Short-Term Disability. Fiesta shall retain and be responsible for all claims for
short-term benefits (and for any liabilities arising as a result of such claims) incurred with respect to any Fiesta Employee on or after the Distribution Date under the Fiesta Short-Term Disability Plan, and none of the CRG Parties shall assume or
retain any such liabilities. Fiesta shall assume the responsibility for all claims for short-term benefits (and for any liabilities arising as a result of such claims) incurred, but not yet reported, by Fiesta Pre-Distribution Employees under any
Carrols Short-Term Disability Plan prior to the Distribution Date. 
 ARTICLE V 

NON-ERISA BENEFIT ARRANGEMENTS 
 5.01 Fiesta Non-ERISA Benefit Arrangements. Following the Distribution Date, the Fiesta Parties shall continue to be the plan sponsor of each Non-ERISA Benefit Arrangement maintained for the
benefit of the Fiesta Employees. Following the Distribution Date, the CRG Parties shall have no liability or obligation with respect to such arrangements or any participants or former participants in such arrangements with respect to their
participation therein. 
 ARTICLE VI 
 EQUITY COMPENSATION PLANS 
 6.01 Stock Options. On a date
prior to the Distribution Date, all outstanding vested stock options under the Carrols Stock Incentive Plan (“Carrols Options”) will be converted into unrestricted CRG Shares using a conversion formula to preserve the
intrinsic value of each option to the holder. In addition, outstanding unvested stock options under the Carrols Stock Incentive Plan will be converted into restricted CRG Shares (“Carrols Restricted Stock”) using a conversion
formula to preserve the intrinsic value of each option to the holder. 
 6.02 Restricted Stock. 

(a) Adjustment. On the Distribution Date persons who hold shares of Carrols Restricted Stock issued under the Carrols Stock
Incentive Plan will receive restricted Fiesta Shares (“Fiesta Restricted Stock”) subject to the same vesting requirements and terms and conditions applicable to the Carrols Restricted Stock, including, but not limited to, the
time period remaining on the restrictions on transfer and forfeiture provisions. The Fiesta Restricted Stock received on the Distribution Date will continue to be governed by the terms of the Carrols Stock Incentive Plan and any dividends issued
shall be issued pursuant to the Carrols Stock Incentive Plan. Each holder of Carrols Restricted Stock will receive a distribution of one share of Fiesta Restricted Stock for each one share of Carrols Restricted Stock. 

(b) Fiesta Employee Forfeiture of Restricted Stock. If a Fiesta Employee forfeits his shares of Fiesta Restricted Stock,
the forfeited Fiesta Restricted Stock shall be returned to Fiesta. If a Fiesta Employee forfeits his shares of Carrols Restricted Stock, such forfeited Carrols Restricted Stock shall be returned to CRG. 

(c) Carrols Employee Forfeiture of Restricted Stock. If a Carrols Employee forfeits his shares of Fiesta Restricted Stock, the
forfeited Fiesta Restricted Stock shall be returned to Fiesta. If a Carrols Employee forfeits his shares of Carrols Restricted Stock, such forfeited Carrols Restricted Stock shall be returned to CRG. 

  
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 (d) Restricted Stock Agreement Terms. The Parties agree that: (i) with respect
to the Carrols Restricted Stock, issued on or before the Distribution, individuals who are Fiesta Employees as of the Distribution Date shall be treated while so employed as employees of a CRG Party for purposes of continued vesting in the Carrols
Restricted Stock; and (ii) with respect to the Fiesta Restricted Stock, issued on the Distribution Date, individuals who are Carrols Employees as of the Distribution Date shall be treated while so employed as employees of a Fiesta Party for
purposes of continued vesting in the Fiesta Restricted Stock. 
 6.03 No Change in Control. The Distribution will not
constitute a “change in control” for purposes of Carrols Restricted Stock that are outstanding as of the Distribution Date. 
 6.04 Tax Deductions. The rights of the Parties to take deductions for Non-ERISA Benefit Arrangements shall be determined in accordance with Section 6.1 of the Tax Matters Agreement.

 ARTICLE VII 
 COMPENSATION MATTERS 
 AND GENERAL BENEFIT MATTERS

 7.01 Cessation of Participation in Carrols Plans and Non-ERISA Benefit Arrangements. Except as otherwise
provided in this Agreement or as required by the terms of any Carrols Plan or Carrols Non-ERISA Benefit Arrangement, or by applicable law, the Carrols Parties and Fiesta Parties shall take any and all action as shall be necessary or appropriate so
that participation in Carrols Plans and Carrols Non-ERISA Benefit Arrangements by all Fiesta Employees shall terminate as of the close of business on the Distribution Date and the Fiesta Parties shall cease to be participating employers under the
terms of such Carrols Plans and Carrols Non-ERISA Benefit Arrangements as of such time. 
 7.02 Assumption of Certain
Employee Related Obligations. Except as otherwise provided in this Agreement and the Transition Services Agreement, effective as of the close of business on the Distribution Date, Fiesta shall assume, and no CRG Party shall have any further
liability for, the following agreements, obligations and liabilities, and Fiesta shall indemnify, defend and hold harmless each of the CRG Parties from and against any and all expenses or losses incurred or suffered by one or more of the CRG Parties
in connection with, relating to, arising out of or due to, directly or indirectly, any of the following: 
 (a) all wages,
salary and incentive compensation payable to Fiesta Pre-Distribution Employees on or after the Distribution Date, without regard to when such wages, salary or incentive compensation are or may have been earned; 

(b) all moving expenses and obligations related to relocation, repatriation, transfers or similar items incurred by or owed to any Fiesta
Pre-Distribution Employees; 
 (c) all immigration-related, visa, work application or similar rights, obligations and
liabilities to the extent they are related to any Fiesta Employees; and 
 (d) all liabilities and obligations whatsoever with
respect to claims made by or with respect to Fiesta Pre-Distribution Employees, relating to any employee benefit plan, 

  
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program or policy not otherwise retained or assumed by the CRG Parties pursuant to this Agreement, including such liabilities relating to actions or omissions of or by the Fiesta Parties or any
officer, director, employee or agent thereof prior to the Distribution Date. 
 7.03 Restrictive Covenants in Employment and
Other Agreements. To the extent permitted under applicable law, following the Distribution, the Fiesta Parties shall be considered to be successors to the CRG Parties for purposes of all agreements containing restrictive covenants (including
confidentiality and non-competition provisions) between any CRG Party and any Fiesta Employee executed prior to the Distribution Date such that each CRG Party and each Fiesta Party shall all enjoy the rights and benefits under such agreements, with
respect to their respective business operations; provided, however, that (a) in no event shall any CRG Party be permitted to enforce the restrictive covenant agreements against any Fiesta Employees in their capacity as employees
of any Fiesta Party, and (b) in no event shall any Fiesta Party be permitted to enforce the restrictive covenant agreements against any Carrols Employees in their capacity as employees of any CRG Party. 

7.04 Past Service Credit. With respect to all Fiesta Employees, as of the Distribution Date, the Fiesta Parties shall recognize
all service recognized under the comparable Carrols Plans and Carrols Non-ERISA Benefit Arrangements for purposes of determining eligibility, participation, vesting and calculation of benefits under comparable plans and programs maintained by the
Fiesta Parties, provided that there shall be no duplication of benefits for Fiesta Employees under such Fiesta Party plans and programs. Subject to the Transition Services Agreement, Carrols will provide to Fiesta copies of any records available to
Carrols to document such service, plan participation and membership and cooperate with Fiesta to resolve any discrepancies or obtain any missing data for purposes of determining benefit eligibility, participation, vesting and calculation of benefits
with respect to the Fiesta Employees. With respect to retaining, destroying, transferring, sharing, copying and permitting access to all such information, The Carrols Parties and Fiesta Parties shall each comply with all applicable laws, regulations
and internal policies and each party shall indemnify and hold harmless the other party from and against any and all liability, claims, actions and damages that arise from a failure (by the indemnifying party) to so comply with all applicable laws,
regulations and internal policies applicable to such information. 
 7.05 Accrued Vacation Days Off. Effective as of the
Distribution Date, the Fiesta Parties shall recognize and assume all liability for all vacation, holiday, sick leave, flex days and personal days off, including banked vacation, accrued by Fiesta Employees as of the Distribution Date, and the Fiesta
Parties shall credit each Fiesta Employee with such days off accrual. 
 7.06 Leaves of Absence. The Fiesta Parties shall
continue to apply all leave of absence policies as in effect immediately prior to the Distribution to inactive Fiesta Employees who are on an approved leave of absence as of the Distribution Date. Leaves of absence taken by Fiesta Employees prior to
the Distribution Date shall be deemed to have been taken as employees of Fiesta. 
 7.07 CRG Assets. Except as otherwise
set forth herein, the CRG Parties shall retain all reserves, bank accounts, trust funds or other balances maintained with respect to Carrols Non-ERISA Benefit Arrangements. 

  
 14 

 7.08 Further Cooperation; Personnel Records; Data Sharing. Subject to the Transition
Services Agreement, the parties shall provide each other such records and information as reasonably necessary or appropriate to carry out their obligations under law, this Agreement, or for the purposes of administering their respective plans and
policies, including without limitation information relating to the vesting, exercise and employment status of persons holding equity compensation awards in the common stock of the other party. Each party shall be responsible for the accuracy of
records and information provided to the other party pursuant to this Section 7.08, and shall indemnify such other party for any losses caused by inaccurate information that it has provided. Subject to applicable law, all information and records
regarding employment and personnel matters of Fiesta Employees shall be accessed, retained, held, used, copied and transmitted after the Distribution Date by Fiesta in accordance with all laws and policies relating to the collection, storage,
retention, use, transmittal, disclosure and destruction of such records. Access to such records after the Distribution Date will be provided to Carrols in accordance with Section 2.4 of the Transition Services Agreement. Notwithstanding the
foregoing, Carrols shall retain reasonable access to those records necessary for Carrols’ continued administration of any plans or programs on behalf of Fiesta Employees after the Distribution Date, and Fiesta shall retain reasonable access to
those records necessary for Fiesta’s administration of any equity award or other compensation or benefit payable or administered by the Fiesta Parties after the Distribution Date, provided that such access shall be limited to individuals who
have a job-related need to access such records. Carrols shall also retain copies of all confidentiality and non-compete agreements with any Fiesta Employee in which Carrols has a valid business interest. With respect to retaining, destroying,
transferring, sharing, copying and permitting access to all such information, The Carrols Parties and Fiesta Parties shall each comply with all applicable laws, regulations and internal policies, and each party shall indemnify and hold harmless the
other party from and against any and all liability, claims, actions, and damages that arise from a failure (by the indemnifying party) to so comply with all applicable laws, regulations and internal policies applicable to such information.

 ARTICLE VIII 
 GENERAL PROVISIONS 
 8.01 Employment and Plan Rights.
Notwithstanding anything to the contrary in this Agreement, the Parties expressly acknowledge and agree that (a) this Agreement is not intended to create an employment-related contract between any of the CRG Parties or the Fiesta Parties, on
the one hand, and any employee or service provider, on the other, nor may any current or former employee or service provider rely on this Agreement as the basis for any breach of any employment-related contract claim against any of the CRG Parties
or Fiesta Parties, (b) nothing in this Agreement shall be deemed or construed to require any of the CRG Parties or Fiesta Parties to continue to employ any particular employee or service provider for any period before or after the Distribution
Date, (c) nothing in this Agreement shall be deemed or construed to limit the right of the CRG Parties or Fiesta Parties to terminate the employment of any employee or service provider at any time before or after the Distribution Date and
(d) nothing in this Agreement shall be construed as establishing or amending any Pension Plan, Welfare Plan or Non-ERISA Benefit Arrangement, or any other plan, policy, agreement or arrangement for the benefit of any employee or any other
person. 

  
 15 

 8.02 Confidentiality. Each Party agrees that any information conveyed or otherwise
received by or on behalf of a Party in conjunction herewith is confidential and is subject to the terms of the confidentiality provisions set forth in Section 6.10 of the Separation and Distribution Agreement. 

8.03 Administrative Complaints/Litigation. Except as otherwise provided in this Agreement and the Transition Services Agreement,
following the Distribution Date, the Fiesta Parties shall assume, and be solely liable for, the handling, administration, investigation and defense of actions, including ERISA, occupational safety and health, employment standards, union grievances,
wrongful dismissal, discrimination or human rights and unemployment compensation claims, asserted at any time against the Carrols Parties or Fiesta Parties by any Fiesta Employee (including any dependent or beneficiary of any Fiesta Employee), or
any other person to the extent such actions or claims arise out of or relate to employment or the provision of services (whether as an employee, contractor, consultant or otherwise) to a Fiesta Party. Any losses arising from such actions shall be
deemed Assumed Actions under the Separation and Distribution Agreement. 
 8.04 Reimbursement and Indemnification.
Subject to the terms of the Transition Services Agreement as applicable, the parties hereto agree to reimburse each other, within 15 days of receipt from the other party of appropriate verification, for all costs and expenses which each may incur on
behalf of the other as a result of any of the Welfare Plans, Pension Plans and Non-ERISA Benefit Arrangements. All liabilities retained, assumed or indemnified against by the Fiesta Parties pursuant to this Agreement, and all liabilities retained,
assumed or indemnified against by the Carrols Parties pursuant to this Agreement, shall in each case be subject to the indemnification procedures set forth in Article III of the Separation and Distribution Agreement. 

8.05 Code Section 409A. Notwithstanding anything in this Agreement to the contrary, the Parties agree to negotiate in good
faith regarding the need for any treatment different from that otherwise provided herein to comply with, to the extent permissible under applicable law, Section 409A of the Code such that nothing in this Agreement causes the imposition of a tax
under Section 409A of the Code. 
 8.06 Entire Agreement. This Agreement, including any schedules hereto and the
sections of the Separation and Distribution Agreement, the Tax Matters Agreement and the Transition Services Agreement referenced herein, constitutes the entire agreement between the Parties with respect to the subject matter contained herein, and
supersedes all prior agreements, negotiations, discussions, understandings, writings and commitments between the Parties with respect to such subject matter. 
 8.07 Choice of Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws rules thereof to the extent such
rules would require application of the law of another jurisdiction. 
 8.08 Amendment. No change or amendment will be
made to this Agreement except by an instrument in writing signed on behalf of each of the Parties. 

  
 16 

 8.09 Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on
the part of any Party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial
exercise of any such right preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement or any schedules attached hereto are cumulative to, and not exclusive of, any rights or remedies
otherwise available. 
 8.10 Severability. If any term or other provision of this Agreement or any schedules hereto is
determined by a nonappealable decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either Party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the court, administrative agency or arbitrator shall interpret this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end
that transactions contemplated hereby are fulfilled to the fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable. 

8.11 Counterparts. This Agreement, including any schedules hereto and the other documents referred to herein, may be executed in
counterparts, each of which shall be deemed to be an original but all of which together shall constitute one agreement binding on the Parties. 
 8.12 Binding Effect; Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective legal representatives and successors, and nothing in this
Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement. This Agreement may not be assigned by any Party hereto. 

8.13 Notices. All notices or other communications under this Agreement shall be in writing and shall be deemed to be duly given
when delivered or mailed in accordance with the terms of Section 7.5 of the Separation and Distribution Agreement. 

8.14 Performance. Each Party shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and
obligations set forth herein to be performed by any Subsidiary of such Party. 
 8.15 Carrols LLC. Carrols LLC, a
Delaware limited liability company and a wholly-owned subsidiary of Carrols, shall be a Party to this Agreement with respect to any obligation of a CRG Party for reimbursement, indemnification and payment owed, accrued or required to be paid or
reimbursed to a Fiesta Party pursuant to this Agreement. 

  
 17 

 8.16 Limited Liability. Notwithstanding any other provision of this Agreement, no
individual who is a stockholder, director, employee, officer, agent or representative of a Fiesta Party or a CRG Party, in its capacity as such, shall have any liability in respect of or relating to the covenants or obligations of such Party under
this Agreement, and, to the fullest extent legally permissible, each of the Parties, for itself and its respective stockholders, directors, employees, officers and Subsidiaries, waives and agrees not to seek to assert or enforce any such liability
that any such Person otherwise might have pursuant to applicable law. 
 8.17 Construction. This Agreement shall be
construed as if jointly drafted by the Parties and no rule of construction or strict interpretation shall be applied against any Party. The Parties represent that this Agreement is entered into with full consideration of any and all rights which the
Parties may have. The Parties have relied upon their own knowledge and judgment and upon the advice of the attorneys of their choosing. The Parties have received independent legal advice, have conducted such investigations they and their counsel
thought appropriate, and have consulted with such other independent advisors as they and their counsel deemed appropriate regarding this Agreement and their rights and asserted rights in connection therewith. The Parties are not relying upon any
representations or statements made by any other Party, or such other Party’s employees, agents, representatives or attorneys, regarding this Agreement, except to the extent such representations are expressly incorporated in this Agreement. The
Parties are not relying upon a legal duty, if one exists, on the part of any other Party (or such other Party’s employees, agents, representatives or attorneys) to disclose any information in connection with the execution of this Agreement or
its preparation, it being expressly understood that no Party shall ever assert any failure to disclose information on the part of the other Party as a ground for challenging this Agreement. 

8.18 Dispute Resolution. The Parties agree that any dispute, controversy or claim between them with respect to the matters covered
hereby shall be governed by and resolved in accordance with the procedures set forth in Article V of the Separation and Distribution Agreement. 
 8.19 No Third-Party Beneficiaries. No Fiesta Employee or other current or former employee of the CRG Parties or Fiesta Parties (or his/her spouse, dependent or beneficiary), or any other person not
a party to this Agreement, shall be entitled to assert any claim hereunder. The provisions of this Agreement are solely for the benefit of the Parties and their respective Subsidiaries, successors and permitted assigns and shall not confer upon any
third Person any remedy, claim, liability, reimbursement or other right in excess of those existing without reference to this Agreement. 
 8.20 Effect if Distribution Does Not Occur. Notwithstanding anything in this Agreement to the contrary, if the Separation and Distribution Agreement is terminated prior to the Distribution Date,
this Agreement shall be of no further force and effect. 
 [Signature Page Follows] 

  
 18 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in their
names by a duly authorized officer as of the date first written above. 
  

			
	CARROLS RESTAURANT GROUP, INC.

 
			
		
	By:	 	  

 
			
		
	Name:	 	  

 
			
		
	Title:	 	  

 
			
	
	CARROLS CORPORATION

 
			
		
	By:	 	  

 
			
		
	Name:	 	  

 
			
		
	Title:	 	  

 
			
	
	FIESTA RESTAURANT GROUP, INC.

 
			
		
	By:	 	  

 
			
		
	Name:	 	  

 
			
		
	Title:	 	  

 
			
	
	Agreed to solely with respect to Section 8.15
	
	CARROLS LLC

 
			
		
	By:	 	  

 
			
		
	Name:	 	  

 
			
		
	Title:	 	  

  
 19Form of Fiesta Restaurant Group, Inc. 2012 Stock Incentive Plan

 Exhibit 10.5 
 FIESTA RESTAURANT GROUP, INC. 
 2012 STOCK INCENTIVE PLAN 

 FIESTA RESTAURANT GROUP, INC. 

2012 STOCK INCENTIVE PLAN 

1. ESTABLISHMENT AND PURPOSE. 

The Fiesta Restaurant Group, Inc. 2012 Stock Incentive Plan (the “Plan”) is established by Fiesta Restaurant Group, Inc., a Delaware
corporation (the “Company”), to attract and retain persons eligible to participate in the Plan; motivate Participants to achieve long-term Company goals; and further align Participants’ interests with those of the
Company’s other stockholders. The Plan is adopted as of             , 2012, subject to approval by the Company’s stockholders within 12 months after such adoption date. No Awards
shall be granted hereunder prior to the approval of the Plan by the Company’s stockholders. The Plan is effective as of             , 2012 (the “Effective Date”)
as a result of the distribution by Carrols on a pro rata basis to the holders of outstanding shares of common stock, par value $.01 per share, of Carrols of all of the outstanding shares of Stock of Fiesta in a spin-off transaction (the
“Distribution”) on             , 2012 (the “Distribution Date”). No Award shall be granted hereunder on or after the date 10 years after the
Effective Date or such earlier date as of which the Plan is discontinued by the Board as provided herein. The Plan shall terminate on             , 2022 or such earlier time as the Board
may determine. Certain terms used herein are defined as set forth in Section 12. 
 2. ADMINISTRATION; ELIGIBILITY.

 The Plan shall be administered by the Compensation Committee of the Board, or such other Committee, appointed by the Board consisting of
three (3) or more members of the Board all of whom are intended to be “non-employee directors” within the meaning of Section 16 of the Exchange Act and the regulations promulgated thereunder and “outside directors”
within the contemplation of Section 162(m) of the Code; provided, however, that, if at any time no Compensation Committee or other Committee has been appointed or is eligible to act in the circumstances, the Plan shall be
administered by the Board. As used herein, the term “Administrator” means the Board, the Compensation Committee or any of the Board’s other Committees as shall be administering the Plan or any individual delegated authority to
act as the Administrator in accordance with this Section 2. 
 The Administrator shall have plenary authority to grant Awards
pursuant to the terms of the Plan to Eligible Individuals. Participation shall be limited to such persons as are selected by the Administrator. Subject to Section 409A of the Code, Awards may be granted as alternatives to, in exchange or
substitution for, or replacement of, awards outstanding under the Plan or any other plan or arrangement of the Company or a Subsidiary (including, subject to the requirements under the Plan, a plan or arrangement of a business or entity, all or a
portion of which is acquired by the Company or a Subsidiary). The provisions of Awards need not be the same with respect to each Participant. 

  
 2 

 Among other things, the Administrator shall have the authority, subject to the terms of the Plan:

  

	 	(a)	to select the Eligible Individuals to whom Awards may from time to time be granted, provided that Outside Directors of the Company shall receive Outside Director
Awards pursuant to Sections 8 and 9; 

  

	 	(b)	to determine whether and to what extent Stock Options, Stock Appreciation Rights, Stock Awards or any combination thereof are to be granted hereunder;

  

	 	(c)	to determine the number of shares of Stock to be covered by each Award granted hereunder; 

 

	 	(d)	to approve forms of agreement for use under the Plan; 

  

	 	(e)	to determine the terms and conditions, not inconsistent with the terms of this Plan, of any Award granted hereunder (including, but not limited to, the option price,
any vesting restriction or limitation, any vesting acceleration or waiver of forfeiture, and any right of repurchase, right of first refusal or other transfer restriction regarding any Award and the shares of Stock relating thereto, based on such
factors or criteria as the Administrator shall determine); 

  

	 	(f)	subject to Sections 10(a) and 11(a), to modify, amend or adjust the terms and conditions of any Award, at any time or from time to time, including, but not
limited to, with respect to (i) performance goals and targets applicable to performance based Awards pursuant to the terms of the Plan and (ii) extension of the post- termination exercisability period of Stock Options;

  

	 	(g)	to determine the Fair Market Value; and 

  

	 	(h)	to determine the type and amount of consideration to be received by the Company for any Stock Award issued under Section 6. 

The Administrator shall have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall,
from time to time, deem advisable, to interpret the terms and provisions of the Plan and any Award issued under the Plan (and any agreement relating thereto) and to otherwise supervise the administration of the Plan. 

In order to assure the viability of Awards granted to Participants employed in foreign countries who are not subject to U.S. tax law, the Administrator
may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, or custom. Moreover, the Administrator may approve such supplements to, or amendments, restatements, or alternative
versions of, the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan as in effect for any other purpose; provided, however, that no such supplements, amendments,
restatements, or alternative versions shall increase the share limitations contained in Section 3 of the Plan. 

  
 3 

 Except to the extent prohibited by applicable law, the Administrator may allocate all or any portion of its
responsibilities and powers to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person or persons selected by it. Any such allocation or delegation may be revoked by the Administrator
at any time. The Administrator may authorize any one or more of their members or any officer of the Company to execute and deliver documents on behalf of the Administrator. 
 Any determination made by the Administrator or pursuant to delegated authority pursuant to the provisions of the Plan with respect to any Award shall be made in the sole discretion of the Administrator or
such delegate at the time of the grant of the Award or, unless in contravention of any express term of the Plan, at any time thereafter. All decisions made by the Administrator or any appropriately delegated officer pursuant to the provisions of the
Plan shall be final and binding on all persons, including the Company and Participants. 
 No member of the Administrator, and no officer of the
Company, shall be liable for any action taken or omitted to be taken by such individual or by any other member of the Administrator or officer of the Company in connection with the performance of duties under this Plan, except for such
individual’s own willful misconduct or as expressly provided by law. 
 3. STOCK SUBJECT TO PLAN. 

Subject to adjustment as provided in this Section 3, the aggregate number of shares of Stock which may be delivered under the Plan shall not
exceed 3,300,000 shares. 
 To the extent any shares of Stock covered by an Award are not delivered to a Participant or beneficiary thereof
because the Award expires, is forfeited, lapses without exercise, canceled or otherwise terminated, any shares of Restricted Stock (as defined in Section 6 and 9) are forfeited, or shares of Stock are not delivered because the Award is
settled in cash or are used to satisfy the applicable tax withholding obligation, such shares shall not be deemed to have been delivered for purposes of determining the maximum number of shares of Stock available for delivery under the Plan with
respect to, and shall be available for, future grants of Awards. 
 Subject to adjustment as provided in this Section 3,
(a) the maximum number of shares that may be covered by Stock Options, Stock Appreciation Rights, and Stock Awards, in the aggregate, to any one Participant during any calendar year shall be 300,000 shares and (b) in the case of a Covered
Employee, if any such Awards are cancelled, the number of shares subject to such Award shall continue to count against the foregoing limit of 300,000 shares. Any Award settled in cash will be based on the Fair Market Value of the shares of Stock
subject to such Award. 
 In the event of any Company stock dividend, special cash dividend, stock split, combination or exchange of shares,
recapitalization or other change in the capital structure of the Company, corporate separation or division of the Company (including, but not limited to, a split-up, spin- off, split-off or other distribution to Company stockholders, other than a
normal 

  
 4 

 
cash dividend), sale by the Company of all or a substantial portion of its assets (measured on either a stand-alone or consolidated basis), reorganization, rights offering, partial or complete
liquidation, merger or consolidation in which the Company is the surviving corporation, or any other corporate transaction, Company share offering or other event involving the Company and having an effect similar to any of the foregoing, the
Administrator may make such substitution or adjustments in the (a) number and kind of shares that may be delivered under the Plan, (b) additional maximums imposed in the immediately preceding paragraph, (c) number and kind of shares
subject to outstanding Awards, (d) exercise price of outstanding Stock Options, Outside Director Stock Options, and Stock Appreciation Rights and (e) other characteristics or terms of the Awards as it may determine appropriate in its sole
discretion to equitably reflect such corporate transaction, share offering or other event; provided, however, that the number of shares subject to any Award shall always be a whole number and any fractional share resulting from an
adjustment or substitution provided for hereunder shall be rounded up to the nearest whole share. 
 In the event of the dissolution or
liquidation of the Company, or a merger, reorganization or consolidation in which the Company is not the surviving corporation, then, except as otherwise provided herein and/or in the discretion of the Administrator, each Stock Option and Outside
Director Stock Option, to the extent not theretofore exercised, shall terminate forthwith. 
 Notwithstanding the foregoing, no adjustment shall
be made pursuant to this Section 3 to the extent that such adjustment would violate Section 409A of the Code. 
 4. STOCK
OPTIONS. 
 Stock Options may be granted alone or in addition to other Awards granted under the Plan and may be of two types: Incentive
Stock Options and Non-Qualified Stock Options. Any Stock Option granted under the Plan shall be in such form as the Administrator may from time to time approve. 
 The Administrator shall have the authority to grant any Participant Incentive Stock Options, Non-Qualified Stock Options or both types of Stock Options. Incentive Stock Options may be granted only to
associates of the Company and its subsidiaries (within the meaning of Section 424(f) of the Code). To the extent that any Stock Option is not designated as an Incentive Stock Option or, even if so designated, does not qualify as an Incentive Stock
Option, it shall constitute a Non-Qualified Stock Option. Incentive Stock Options may be granted only within 10 years from the date the Plan is adopted or the date the Plan is approved by the Company’s stockholders, whichever is earlier. A
maximum of 1,500,000 shares of Stock may be subject to grants of Incentive Stock Options. 
 Stock Options shall be evidenced by option
agreements, each in a form approved by the Administrator. An option agreement shall indicate on its face whether it is intended to be an agreement for an Incentive Stock Option or a Non-Qualified Stock Option. The grant of a Stock Option shall occur
as of the date the Administrator determines, subject to FASB Statement 123(R) and guidance thereunder. 

  
 5 

 Anything in the Plan to the contrary notwithstanding, no term of the Plan relating to Incentive Stock
Options shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be exercised, so as to disqualify the Plan under Section 422 of the Code or, without the consent of the Optionee affected, to
disqualify any Incentive Stock Option under Section 422 of the Code. 
 To the extent that the aggregate Fair Market Value of Stock with
respect to which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year (under all plans of the Company and its subsidiaries within the meaning of Section 424(f) of the Code) exceeds $100,000, such
Stock Options shall be treated as Non-Qualified Stock Options. 
 Stock Options granted under this Section 4 shall be subject to the
following terms and conditions and shall contain such additional terms and conditions as the Administrator shall deem desirable: 
  

	 	(a)	Exercise Price. The exercise price per share of Stock purchasable under a Stock Option shall be determined by the Administrator at the time of grant and set
forth in the applicable option agreement; provided, however, that the exercise price per share shall be not less than the Fair Market Value per share on the date the Stock Option is granted, or in the case of an Incentive Stock Option
granted to an individual who is a Ten Percent Holder, not less than 110% of such Fair Market Value per share on the date the Stock Option is granted. 

  

	 	(b)	Option Term. The term of a Stock Option shall be determined by the Administrator at the time of grant and set forth in the applicable option agreement,
provided, however, that no Stock Option shall be exercisable more than 10 years after the date that the Stock Option is granted (or more than five years after the date that the Stock Option is granted in the case of an Incentive Stock
Option granted to an individual who is a Ten Percent Holder). 

  

	 	(c)	Vesting. A Stock Option shall become vested and nonforfeitable as determined by the Administrator at the time of grant and set forth in the applicable option
agreement, and unless otherwise provided in the Plan or applicable option agreement, no Stock Option shall become vested earlier than the first anniversary of the date of grant of such Stock Option or later than the seventh anniversary of the
date of grant of such Stock Option; and provided, further, that the Participant shall have continuously remained in the active employment of the Company or an Affiliate until the applicable vesting date. 

  
 6 

	 	(d)	Exercisability. Stock Options shall be exercisable to the extent vested; provided that the exercise of a Stock Option shall be subject to such additional
terms and conditions, performance requirements, restrictions, forfeiture provisions, contingencies and limitations, if any, as shall be determined by the Administrator and listed in the applicable option agreement. If any Stock Option is exercisable
only in installments, the Administrator may at any time waive such installment exercise provisions, in whole or in part, based on such factors as the Administrator may determine. In addition, the Administrator may at any time, in whole or in part,
accelerate the exercisability of any Stock Option. 

  

	 	(e)	Method of Exercise. Stock Options may be exercised, in whole or in part, by giving written notice of exercise to the Company specifying the number of shares of
Stock subject to the Stock Option to be purchased. 

 The option price of any Stock Option shall be paid in full in
cash (by certified or bank check or such other instrument as the Company may accept) or, if permitted by the Administrator in its sole and absolute discretion, by one or more of the following: (i) in the form of shares of unrestricted and
vested Stock already owned by the Optionee, based on the Fair Market Value of the Stock on the date the Stock Option is exercised; (ii) by certifying ownership of shares of Stock owned by the Optionee to the satisfaction of the Administrator
for later delivery to the Company as specified by the Company; (iii) unless otherwise prohibited by law for either the Company or the Optionee, by irrevocably authorizing a third party to sell shares of Stock (or a sufficient portion of the
shares) acquired upon exercise of the Stock Option and remit to the Company a sufficient portion of the sale proceeds to pay the entire exercise price and any tax withholding resulting from such exercise; or (iv) by any combination of cash
and/or any one or more of the methods specified in clauses (i), (ii) and (iii). Notwithstanding the foregoing, a form of payment shall not be permitted to the extent it would cause the Company to recognize a compensation expense (or additional
compensation expense) with respect to the Stock Option for financial reporting purposes. 
 Unless otherwise determined by the
Administrator, if payment of the option exercise price of a Non-Qualified Stock Option is made in whole or in part in the form of stock that is subject to restrictions on transfer and/or forfeiture provisions (“Restricted Stock”), some or
all of the Stock received upon such exercise shall be subject to the same restrictions as such Restricted Stock. The number of shares of Stock received upon such exercise that shall be subject to such restrictions shall equal the number of shares of
Restricted Stock used for payment of the option exercise price. 
 No shares of Stock shall be issued upon exercise of a Stock
Option until full payment therefor has been made. Upon exercise of a Stock Option (or a portion thereof), the Company shall have a reasonable time to issue the Stock for 

  
 7 

 
which the Stock Option has been exercised, and the Optionee shall not be treated as a stockholder for any purposes whatsoever prior to such issuance. No adjustment shall be made for cash
dividends or other rights for which the record date is prior to the date such Stock is recorded as issued and transferred in the Company’s official stockholder records, except as otherwise provided herein or in the applicable option agreement.

  

	 	(f)	Transferability of Stock Options. Except as otherwise provided in the applicable option agreement, a Non-Qualified Stock Option (i) shall be transferable by
the Optionee to a Family Member of the Optionee, provided that (A) any such transfer shall be by gift with no consideration and (B) no subsequent transfer of such Stock Option shall be permitted other than by will or the laws of
descent and distribution, and (ii) shall not otherwise be transferable except by will or the laws of descent and distribution. An Incentive Stock Option shall not be transferable except by will or the laws of descent and distribution. A Stock
Option shall be exercisable, during the Optionee’s lifetime, only by the Optionee or by the guardian or legal representative of the Optionee, it being understood that the terms “holder” and “Optionee” include the
guardian and legal representative of the Optionee named in the applicable option agreement and any person to whom the Stock Option is transferred (X) pursuant to the first sentence of this Section 4(f) or pursuant to the applicable
option agreement or (Y) by will or the laws of descent and distribution. Notwithstanding the foregoing, references herein to the termination of an Optionee’s employment or provision of services shall mean the termination of employment or
provision of services of the person to whom the Stock Option was originally granted. 

  

	 	(g)	Termination by Death. Except as otherwise provided in the applicable option agreement, if an Optionee’s employment or provision of services terminates by
reason of death, any Stock Option held by such Optionee shall be fully vested upon such death and may thereafter be exercised for a period of one year from the date of such death or until the expiration of the stated term of such Stock Option,
whichever period is shorter. 

  

	 	(h)	Termination by Reason of Disability. Except as otherwise provided in the applicable option agreement, if an Optionee’s employment or provision of services
terminates by reason of Disability, any Stock Option held by such Optionee shall be fully vested upon such termination of employment or provision of services and may thereafter be exercised by the Optionee for a period of one year from the date of
such termination of employment or provision of services or until the expiration of the stated term of such Stock Option, whichever period is shorter. 

  

	 	(i)	 Termination by Reason of Retirement. Except as otherwise provided in the applicable option agreement, if an Optionee’s employment or
provision of services terminates by reason of Retirement, any Stock Option held by such 

  
 8 

	 	
Optionee, to the extent it was exercisable at the time of termination, may thereafter be exercised by the Optionee for a period of 12 months from the date of such termination of employment or
provision of services or until the expiration of the stated term of such Stock Option, whichever period is shorter, and any Stock Option that is unvested or unexercisable at the date of termination shall thereupon terminate.

  

	 	(j)	Involuntary Termination Without Cause. Except as otherwise provided in the applicable option agreement, if an Optionee’s employment or provision of services
terminates involuntarily without Cause, and for reasons other than death, Disability or Retirement, any Stock Option held by such Optionee may thereafter be exercised, to the extent it was exercisable at the time of termination, for a period of
three months from the date of such termination of employment or provision of services or until the expiration of the stated term of such Stock Option, whichever period is shorter, and any Stock Option that is unvested or unexercisable at the date of
termination shall thereupon terminate. 

  

	 	(k)	Involuntary Termination for Cause. Except as otherwise provided in the applicable option agreement, if an Optionee’s employment or provision of services
terminates involuntarily for Cause, all Stock Options held by such Optionee, whether or not then vested and exercisable, shall thereupon terminate. 

  

	 	(l)	Other Termination. Except as otherwise provided in the applicable option agreement, if an Optionee’s employment or provision of services is terminated by
the Optionee for any reason other than death, Disability, Retirement, involuntary termination without Cause or involuntary termination for Cause any Stock Option held by such Optionee may thereafter be exercised, to the extent it was exercisable at
the time of termination, for a period of 1 month from the date of such termination of employment or provision of services or until the expiration of the stated term of such Stock Option, whichever period is shorter, and any Stock Option that is
unvested or unexercisable at the date of termination shall thereupon terminate. 

  

	 	(m)	Exception to Termination. If employment or provision of services by the Optionee to the Company or an Affiliate ceases as a result of a transfer of such Optionee
from the Company to an Affiliate, or from an Affiliate to the Company, or from one classification of Eligible Individual to another classification of Eligible Individual, such transfer shall not be a termination of employment or provision of
services for purposes of this Plan, unless expressly determined otherwise by the Administrator. Unless expressly determined otherwise by the Administrator, a termination of employment or provision of services shall occur for an Optionee who is
employed by, or provides services to, an Affiliate of the Company if the Affiliate shall cease to be an Affiliate and the Optionee shall not immediately thereafter be employed by, or provide services to, the Company or an Affiliate.

  
 9 

	 	(n)	Notwithstanding the foregoing, to the extent permitted under Section 409A of the Code, the exercise period following a termination described in subsection (g),
(h), (i), (j) or (l) above shall be tolled for any applicable window/blackout period restrictions under the Company’s insider trading policy. 

 5. STOCK APPRECIATION RIGHTS. 
 Stock Appreciation Rights may be granted under the
Plan on a stand-alone basis only. The Administrator shall have the authority to grant Stock Appreciation Rights to any Participant. Except as otherwise provided herein, a Stock Appreciation Right shall terminate and no longer be exercisable as
determined by the Administrator. 
 Stock Appreciation Rights shall be evidenced by stock appreciation right agreements, each in a form approved
by the Administrator. The grant of a Stock Appreciation Right shall occur as of the date the Administrator determines, subject to FASB Statement 123(R) and guidance thereunder. 
 A Stock Appreciation Right may be exercised by a Participant as determined by the Administrator in accordance with this Section 5. Upon such exercise, the Participant shall be entitled to
receive an amount determined in the manner prescribed in this Section 5. 
 Stock Appreciation Rights shall be subject to such terms
and conditions as shall be determined by the Administrator, including the following: 
  

	 	(a)	Stock Appreciation Right Term. The term of a Stock Appreciation Right shall be determined by the Administrator at the time of grant and set forth in the applicable
stock appreciation right agreement, provided, however, that no Stock Appreciation Right shall be exercisable more than 10 years after the date that the Stock Appreciation Right is granted. 

 

	 	(b)	Vesting. A Stock Appreciation Right shall become vested and nonforfeitable as determined by the Administrator at the time of grant and set forth in the
applicable stock appreciation right agreement, and unless otherwise provided in the Plan, no Stock Appreciation Right shall become vested earlier than the first anniversary of the date of grant of such Stock Appreciation Right or later than
the seventh anniversary of the date of grant of such Stock Appreciation Right; and provided, further, that the Participant shall have continuously remained in the active employment of the Company or an Affiliate until the applicable
vesting date. 

  

	 	(c)	 Exercisability. Stock Appreciation Rights shall be exercisable to the extent vested; provided that the exercise of a Stock Appreciation
Right shall be subject to such additional terms and conditions, performance requirements, 

  
 10 

	 	
restrictions, forfeiture provisions, contingencies and limitations, if any, as shall be determined by the Administrator and listed in the applicable stock appreciation rights agreement. If any
Stock Appreciation Right is exercisable only in installments, the Administrator may at any time waive such installment exercise provisions, in whole or in part, based on such factors as the Administrator may determine. In addition, the Administrator
may at any time, in whole or in part, accelerate the exercisability of any Stock Appreciation Right. 

  

	 	(d)	Method of Exercise. Subject to the provisions of this Section 5, Stock Appreciation Rights may be exercised, in whole or in part, by giving written
notice of exercise to the Company specifying the number of shares with respect to which the Stock Appreciation Right is being exercised. 

  

	 	(e)	Upon the exercise of a Stock Appreciation Right, a Participant shall be entitled to receive an amount in cash or in shares of Stock, as set forth in the grant
agreement, which in the aggregate are equal in value to the excess of the Fair Market Value of one share of Stock on the date of exercise over the Fair Market Value of one share of Stock on the date of grant, multiplied by the number of shares in
respect of which the Stock Appreciation Right shall have been exercised. 

  

	 	(f)	Transferability of Stock Appreciation Rights. Except as otherwise provided in the applicable stock appreciation rights agreement, a Stock Appreciation Right
(i) shall be transferable by the Participant to a Family Member of the Participant, provided that (A) any such transfer shall be by gift with no consideration and (B) no subsequent transfer of such Stock Appreciation Right
shall be permitted other than by will or the laws of descent and distribution, and (ii) shall not otherwise be transferable except by will or the laws of descent and distribution. A stock Appreciation Right shall be exercisable, during the
Participant’s lifetime, only by the Participant or by the guardian or legal representative of the Participant, it being understood that the terms “holder” and “Participant” include the guardian and legal representative of
the Participant named in the applicable stock appreciation rights agreement and any person to whom the Stock Appreciation Right is transferred (X) pursuant to the first sentence of this Section 5(f) or pursuant to the applicable
stock appreciation rights agreement or (Y) by will or the laws of descent and distribution. Notwithstanding the foregoing, references herein to the termination of a Participant’s employment or provision of services shall mean the
termination of employment or provision of services of the person to whom the Stock Appreciation Right was originally granted. 

  

	 	(g)	 Termination by Death. Except as otherwise provided in the applicable stock appreciation rights agreement, if a Participant’s employment or
provision of 

  
 11 

	 	
services terminates by reason of death, any Stock Appreciation Right held by such Participant shall be fully vested upon such death and may thereafter be exercised for a period of one year from
the date of such death or until the expiration of the stated term of such Stock Appreciation Right, whichever period is shorter. 

  

	 	(h)	Termination by Reason of Disability. Except as otherwise provided in the applicable stock appreciation rights agreement, if a Participant’s employment or provision
of services terminates by reason of Disability, any Stock Appreciation Right held by such Participant shall be fully vested upon such termination of employment or provision of services and may thereafter be exercised by the Participant for a period
of one year from the date of such termination of employment or provision of services or until the expiration of the stated term of such Stock Appreciation Right, whichever period is shorter. 

 

	 	(i)	Termination by Reason of Retirement. Except as otherwise provided in the applicable stock appreciation rights agreement, if a Participant’s employment or
provision of services terminates by reason of Retirement, any Stock Appreciation Right held by such Participant, to the extent it was exercisable at the time of termination, may thereafter be exercised by the Participant for a period of six months
from the date of such termination of employment or provision of services or until the expiration of the stated term of such Stock Appreciation Right, whichever period is shorter and any Stock Appreciation Right that is unvested or unexercisable at
the date of termination shall thereupon terminate. 

  

	 	(j)	Involuntary Termination Without Cause. Except as otherwise provided in the applicable stock appreciation rights agreement, if a Participant’s employment or
provision of services terminates involuntarily without Cause, and for reasons other than death, Disability or Retirement, any Stock Appreciation Right held by such Participant may thereafter be exercised, to the extent it was exercisable at the time
of termination, for a period of three months from the date of such termination of employment or provision of services or until the expiration of the stated term of such Stock Appreciation Right, whichever period is shorter, and any Stock
Appreciation Right that is unvested or unexercisable at the date of termination shall thereupon terminate. 

  

	 	(k)	Involuntary Termination for Cause. Except as otherwise provided in the applicable stock appreciation rights agreement, if a Participant’s employment or
provision of services terminates involuntarily for Cause, Stock Appreciation Rights held by such Participant, whether or not then vested and exercisable, shall thereupon terminate. 

  
 12 

	 	(l)	Other Termination. Except as otherwise provided in the applicable stock appreciation rights agreement, if a Participant’s employment or provision of
services is terminated by the Participant for any reason other than death, Disability, Retirement, involuntary termination without Cause or involuntary termination for Cause, any Stock Appreciation Right held by such Participant may thereafter be
exercised, to the extent it was exercisable at the time of termination, for a period of one month from the date of such termination of employment or provision of services or until the expiration of the stated term of such Stock Appreciation Right,
whichever period is shorter, and any Stock Appreciation Right that is unvested or unexercisable at the date of termination shall thereupon terminate. 

  

	 	(m)	Exception to Termination. If provision of services by the Participant to the Company or an Affiliate ceases as a result of a transfer of such Participant from
the Company or an Affiliate, or from an Affiliate to the Company, or from one classification of Eligible Individual to another classification of Eligible Individual, such transfer shall not be a termination of employment or provision of services for
purposes of this Plan, unless expressly determined otherwise by the Administrator. Unless expressly determined otherwise by the Administrator, termination of employment or provision of services shall occur for a Participant who is employed by, or
provides services to, an Affiliate of the Company if the Affiliate shall cease to be an Affiliate and the Participant shall not immediately thereafter be employed by, or provide services to, the Company or an Affiliate.

  

	 	(n)	Notwithstanding the foregoing, to the extent permitted under Section 409A of the Code, the exercise period following a termination described in subsection (g),
(h), (i), (j) or (l) above shall be tolled for any applicable window/blackout period restrictions under the Company’s insider trading policy. 

 6. STOCK AWARDS. 
 Stock Awards may be directly issued under the Plan (without any
intervening options), subject to such terms, conditions, performance requirements, restrictions, forfeiture provisions, contingencies and limitations as shall be determined by the Administrator and set forth in the applicable award agreement.
Subject to the provisions of this Section 6, Stock Awards may be issued which vest in one or more installments over the Participant’s period of employment and/or other service to the Company or an Affiliate and/or upon the
attainment of specified performance objectives, and/or the Company may issue Stock Awards which entitle the Participant to receive a specified number of vested shares of Stock upon the attainment of one or more performance goals and/or service
requirements established by the Administrator. A Stock Award that is subject to restrictions on transfer and/or forfeiture provisions may be referred to as an award of “Restricted Stock” or “Restricted Stock Units.” A Stock Award
shall become vested and nonforfeitable as determined by the Administrator at 

  
 13 

 
the time of grant and set forth in the applicable award agreement, and unless otherwise provided in the Plan, no Stock Award shall become vested earlier than the first anniversary of the
date of such Stock Award or later than the seventh anniversary of the date of such Stock Award; and provided, further, that the Participant shall have continuously remained in the active employment of the Company or an Affiliate until
the applicable vesting date. The determination of whether the Participant has continuously remained in the active employment of the Company or an Affiliate shall be made by the Administrator in its discretion, including, when applicable pursuant to
principle described in Section 4(m). 
 Shares representing a Stock Award shall be evidenced in such manner as the Administrator may deem
appropriate, including book-entry registration or issuance of one or more certificates (which may bear appropriate legends referring to the terms, conditions and restrictions applicable to such Award). The Administrator may require that any such
certificates be held in custody by the Company until any restrictions thereon shall have lapsed and that the Participant deliver a stock power, endorsed in blank, relating to the Stock covered by such Award. Restricted Stock Units shall be evidenced
by a book entry in a notional account maintained under the Participant’s name in the Company’s books and records. 
 A Stock Award may
be issued in exchange for any consideration which the Administrator may deem appropriate in each individual instance, including, without limitation: 
  

	 	(a)	cash or cash equivalents; 

  

	 	(b)	past services rendered to the Company or any Affiliate; or 

  

	 	(c)	future services to be rendered to the Company or any Affiliate (provided that, in such case, the par value of the stock subject to such Stock Award shall be paid
in cash or cash equivalents, unless the Administrator provides otherwise). 

 With respect to a Restricted Stock Award, a
Participant, at his or her option, will be entitled to make the election permitted under Section 83(b) of the Code, to include in gross income in the taxable year in which the Restricted Stock Award is transferred to him or her, the fair market
value of such shares at the time of transfer, notwithstanding that such shares are subject to a substantial risk of forfeiture within the meaning of the Code, or he or she may elect to include in gross income the Fair Market Value of the Restricted
Stock Award as of the date or date on which such restrictions lapse. Notwithstanding the foregoing, the Administrator shall adopt, from time to time, such rules with respect to the return of executed award agreements as it deems appropriate and
failure by a Participant to comply with such rules shall, without limitation, terminate the grant of such Restricted Stock Award to such Participant and/or cause the forfeiture of any Restricted Stock Award as to which restrictions have not yet
lapsed. 
 Notwithstanding anything herein to the contrary and except as otherwise provided in the applicable award agreement, if a
Participant’s employment and provision of services is 

  
 14 

 
terminated (A) by the Company for any reason other than Cause or (B) by reason of the Participant’s death or Disability, all Stock underlying a Stock Award, to the extent unvested
at the time of termination, shall become fully vested and non-forfeitable. 
 Notwithstanding anything herein to the contrary and except as
otherwise provided in the applicable award agreement, if a Participant’s employment or provision of services is terminated (A) by the Company for Cause or (B) by the Participant for any reason other than death or Disability, all Stock
underlying a Stock Award, to the extent unvested at the time of termination, shall be forfeited. 
 Unless otherwise provided in an award
agreement, until the expiration of all applicable restrictions, (i) the Restricted Stock shall be treated as outstanding, (ii) the Participant holding shares of Restricted Stock may exercise full voting rights with respect to such shares,
and (iii) the Participant holding shares of Restricted Stock shall be entitled to receive all dividends and other distributions paid with respect to such shares while they are so held. Unless otherwise provided by the Administrator, if any such
dividends or distributions are paid in shares of Stock, such shares shall be subject to the same restrictions as the shares of Restricted Stock with respect to which they were paid. Notwithstanding anything to the contrary, at the discretion of the
Administrator, all such dividends and distributions may be held in escrow by the Company (subject to the same restrictions) until all restrictions on the respective Restricted Stock have lapsed. 

7. PERFORMANCE AWARDS. 
  

	 	(a)	Performance Conditions. The right of a Participant to exercise or receive a grant or settlement of any Award, and its timing, may be subject to performance
conditions specified by the Administrator at the time of grant (except as provided in this Section 7). The Administrator may use business criteria and other measures of performance it deems appropriate in establishing any performance
conditions, and may exercise its discretion to reduce or increase amounts payable under any Award subject to performance conditions, except as limited under Section 7(b) hereof in the case of a Performance Award intended to qualify under
Section 162(m) of the Code. 

  

	 	(b)	Performance Awards Granted to Designated Covered Employees. If the Administrator determines that a Performance Award to be granted to a person the Administrator
regards as likely to be a Covered Employee should qualify as “performance-based compensation” for purposes of Section 162(m) of the Code, the grant and/or settlement of such Performance Award shall comply with the requirements set
forth in this Section 7(b). 

  

	 	(i)	 Performance Goals Generally. The performance goals for such Performance Awards shall be based on one or more of the business criteria set forth
in Section 7(b)(ii) and a targeted level or levels of performance with respect to such criteria, as specified by the 

  
 15 

	 	
Administrator consistent with this Section 7(b). Performance goals shall be objective and shall otherwise meet the requirements of Section 162(m) of the Code, including the
requirement that the level or levels of performance targeted by the Administrator result in the performance goals being “substantially uncertain.” The Administrator may determine that more than one performance goal must be achieved as a
condition to settlement of such Performance Awards. 

  

	 	(ii)	Business Criteria. Unless and until the Company proposes for stockholder vote, and stockholders approve, a change in the business criteria set forth in this
Section 7(b)(ii), Awards (other than Stock Options and Stock Appreciation Rights) designed to qualify as “performance-based compensation” for purposes of Section 162(m) of the Code shall be based on one or more of the
following business criteria, which shall be set forth in the applicable Performance Award agreement: 

  

	 	(A)	Earnings before any or all of interest, tax, depreciation or amortization (actual and adjusted and either in the aggregate or on a per-share basis);

  

	 	(B)	Earnings (either in the aggregate or on a per-share basis); 

  

	 	(C)	Net income or loss (either in the aggregate or on a per-share basis); 

  

	 	(D)	Operating profit; 

  

	 	(E)	Cash flow (either in the aggregate or on a per-share basis); 

  

	 	(F)	Free cash flow (either in the aggregate on a per-share basis); 

  

	 	(G)	Non-interest expense; 

  

	 	(H)	Costs; 

  

	 	(I)	Gross revenues; 

  

	 	(J)	Reductions in expense levels; 

  

	 	(K)	Operating and maintenance cost management and employee productivity; 

  

	 	(L)	Share price or total stockholder return (including growth measures and total stockholder return or attainment by the shares of a specified value for a specified period
of time); 

  

	 	(M)	Net economic value; 

  
 16 

	 	(N)	Economic value added or economic value added momentum; 

  

	 	(O)	Strategic business criteria, consisting of one or more objectives based on meeting specified revenue, sales, market share, market penetration, geographic business
expansion goals, objectively identified project milestones, production volume levels, cost targets and goals relating to acquisitions or divestitures; 

  

	 	(P)	Return on average assets or average equity; 

  

	 	(Q)	Achievement of objectives relating to diversity, employee turnover or other human capital metrics; 

 

	 	(R)	Results of customer satisfaction surveys or other objective measures of customer experience; and/or 

 

	 	(S)	Debt ratings, debt leverage, debt service, financings and refinancings; 

 provided, however, that (I) the foregoing business criteria may be applied on a pre- or post-tax basis; and (II) the Administrator may, on the grant date of an Award intended to qualify as
“performance-based compensation,” provide that the formula for such Award may include or exclude items to measure specific objectives, such as losses from discontinued operations, extraordinary gains or losses, the cumulative effect of
accounting changes, acquisitions or divestitures, foreign exchange impacts and any unusual, non-recurring gain or loss. 
  

	 	(iii)	Performance Period; Timing For Establishing Performance Goals. Achievement of performance goals in respect of such Performance Awards shall be measured over such
periods of at least 12 months’ duration as may be specified by the Administrator. Performance goals shall be established on or before the dates that are required or permitted for “performance-based compensation” under
Section 162(m) of the Code. The levels of performance required with respect to any performance goals may be expressed in absolute or relative levels and may be based upon a set increase, set positive result, maintenance of the status quo, set
decrease or set negative result. Performance goals may differ for Awards to different Participants. The Administrator shall specify the weighting (which may be the same or different for multiple performance goals) to be given to each performance
goal for purposes of determining the final amount payable with respect to any such Performance Award. Any one or more of the performance goals or the business criteria on which they are based may apply to the Participant, a department, unit,
division or function within the Company (except for total stockholder return or earnings per share criteria) or any one or more Subsidiaries, and may apply either alone or relative to the performance of other businesses or individuals (including
industry or general market indices). 

  
 17 

	 	(iv)	Settlement of Performance Awards; Other Terms. Settlement of Performance Awards may be in cash or Stock, or other Awards, or other property, in the discretion of
the Administrator. Any cash-settled Performance Award will be based on the Fair Market Value of the shares of Stock subject to such Performance Award. The Administrator may, in its discretion, reduce the amount of a settlement otherwise to be made
in connection with such Performance Awards, but may not exercise discretion to increase any such amount payable in respect of a Performance Award subject to this Section 7(b). Subject to the requirements of Section 162(m) of the
Code, the Administrator shall specify the circumstances in which such Performance Awards shall be forfeited or paid in the event of a termination of employment at least six months prior to the end of a performance period or settlement of Performance
Awards, and other terms relating to such Performance Awards. All determinations of the Administrator as to the achievement of the performance goals applicable to a Performance Award subject to this Section 7(b) shall be in writing prior
to the payment of the Award. 

 8. OUTSIDE DIRECTOR STOCK OPTIONS. 

On the date of the first annual meeting of stockholders of the Company following the Distribution Date, and on the date of the annual meeting of
Stockholders of the Company during each Company fiscal year thereafter, each Outside Director of the Company may, in the discretion of the Administrator, be granted an Outside Director Stock Option to purchase such number of shares of Stock as shall
be determined by the Administrator. 
 Outside Director Stock Options shall be evidenced by option agreements, each in a form approved by the
Administrator. 
 Outside Director Stock Options granted under this Section 8 shall be subject to the following terms and conditions
and shall contain such additional terms and conditions as the Administrator shall deem desirable: 
  

	 	(a)	Exercise Price. The exercise price per share of Stock purchasable under an Outside Director Stock Option shall be the Fair Market Value per share on the date the
Outside Director Stock Option is granted. 

  

	 	(b)	Option Term. No Outside Director Stock Option shall be exercisable more than seven years after the date that the Outside Director Stock Option is granted.

  
 18 

	 	(c)	Vesting. An Outside Director Stock Option shall become vested and non- forfeitable with respect to one-fifth of the Stock underlying such Outside Director Stock
Option on the first anniversary of the date of grant, with an additional one- fifth of the Stock underlying such Outside Director Stock Option becoming vested and non-forfeitable on each of the second, third, fourth and fifth anniversaries of the
date of grant; provided that, in each case, the Outside Director shall have continuously remained a Director of the Company. Any Outside Director Stock Option that is unvested at the date of termination of the Outside Director’s
provision of services shall be forfeited upon such termination. 

  

	 	(d)	Exercisability. Outside Director Stock Options shall be exercisable to the extent vested. 

 

	 	(e)	Method of Exercise. Outside Director Stock Options may be exercised, in whole or in part, by giving written notice of exercise to the Company specifying the
number of shares of Stock subject to the Outside Director Stock Option to be purchased. 

 The option price of any
Outside Director Stock Option shall be paid in full in cash (by certified or bank check or such other instrument as the Company may accept) or, unless otherwise provided in the applicable option agreement, by one or more of the following:
(i) in the form of shares of unrestricted and vested Stock already owned by the Outside Director, based on the Fair Market Value of the Stock on the date the Outside Director Stock Option is exercised; (ii) by certifying ownership of
shares of Stock owned by the Outside Director to the satisfaction of the Administrator for later delivery to the Company as specified by the Company; (iii) unless otherwise prohibited by law for either the Company or the Outside Director, by
irrevocably authorizing a third party to sell shares of Stock (or a sufficient portion of the shares) acquired upon exercise of the Outside Director Stock Option and remit to the Company a sufficient portion of the sale proceeds to pay the entire
exercise price and any tax withholding resulting from such exercise; or (iv) by any combination of cash and/or any one or more of the methods specified in clauses (i), (ii) and (iii). Notwithstanding the foregoing, a form of payment shall
not be permitted to the extent it would cause the Company to recognize a compensation expense (or additional compensation expense) with respect to the Outside Director Stock Option for financial reporting purposes. 

If payment of the option exercise price of an Outside Director Stock Option is made in whole or in part in the form of Restricted Stock,
some or all of the Stock received upon such exercise shall be subject to the same restrictions as such Restricted Stock. The number of shares of Stock received upon such exercise that shall be subject to such restrictions shall equal the number of
shares of Restricted Stock used for payment of the option exercise price. 

  
 19 

 No shares of Stock shall be issued upon exercise of an Outside Director Stock Option until
full payment therefor has been made. Upon exercise of an Outside Director Stock Option (or a portion thereof), the Company shall have a reasonable time to issue the Stock for which the Outside Director Stock Option has been exercised, and the
Outside Director shall not be treated as a stockholder for any purposes whatsoever prior to such issuance. No adjustment shall be made for cash dividends or other rights for which the record date is prior to the date such Stock is recorded as issued
and transferred in the Company’s official stockholder records, except as otherwise provided herein or in the applicable option agreement. 
  

	 	(f)	Transferability of Outside Director Stock Options. An Outside Director Stock Option (i) shall be transferable by the Outside Director to a Family Member of
the Outside Director, provided that (A) any such transfer shall be by gift with no consideration and (B) no subsequent transfer of such Outside Director Stock Option shall be permitted other than by will or the laws of descent and
distribution, and (ii) shall not otherwise be transferable except by will or the laws of descent and distribution. An Outside Director Stock Option shall be exercisable, during the Outside Director’s lifetime, only by the Outside Director
or by the guardian or legal representative of the Outside Director, it being understood that the terms “holder” and “Outside Director” include the guardian and legal representative of the Outside Director named in the
applicable option agreement and any person to whom the Outside Director Stock Option is transferred (X) pursuant to the first sentence of this Section 8(f) or pursuant to the applicable option agreement or (Y) by will or the
laws of descent and distribution. Notwithstanding the foregoing, references herein to the termination of an Outside Director’s provision of services shall mean the termination or cessation of the Outside Director’s status as an Eligible
Individual. 

 9. OUTSIDE DIRECTOR STOCK AWARDS. 
 The following Outside Director Stock Awards shall be granted pursuant to this Section 9: 
  

	 	(a)	Each individual who is or becomes an Outside Director on or immediately following Distribution Time shall be granted, within forty-five (45) days after the
Distribution Date, a Stock Award comprised of a number of shares of Stock having an aggregate Fair Market Value of $100,000 as of the date of grant. 

  

	 	(b)	Each individual (other than any individual receiving a Stock Award under Section 9 (a)) who is appointed to the Board as an Outside Director after the
Distribution Date shall be granted, as of the date of such Outside Director’s appointment to the Board, a Stock Award comprised of that number of shares of Stock having an aggregate Fair Market Value of $100,000 on the date of grant.

  
 20 

	 	(c)	On the date of the first annual meeting of Stockholders of the Company following the Distribution Date, and on the date of each annual meeting of Stockholders of the
Company during each Company fiscal year thereafter, each Outside Director of the Company shall be granted a Stock Award comprised of that number of shares of Stock having an aggregate Fair Market Value of $25,000 or such other amount as is otherwise
determined by the Administrator. 

 The Stock subject to Outside Director Stock Awards granted under this Section 9
shall vest and become nonforfeitable based on the Outside Director’s provision of services as a Director, and is therefore an award of “Restricted Stock.” 
 Outside Director Stock Awards may be directly issued under the Plan. Unless otherwise determined by the Administrator, and set forth in the applicable award agreement, an Outside Director Stock Award
granted pursuant to Section 9(c) shall become vested and nonforfeitable as to one-fifth of the shares of Restricted Stock underlying such Outside Director Stock Award on the first anniversary of the date of grant, with an additional one-fifth
of the Restricted Stock becoming vested and non-forfeitable on each of the second, third, fourth and fifth anniversaries of the date of grant; provided that, in each case, the Outside Director shall have continuously remained a
Director of the Company. Any Outside Director Stock Award that is unvested at the date of termination of the Outside Director’s provision of services shall be forfeited upon such termination. The determination of whether the Participant has
continuously remained a Director of the Company or an Affiliate shall be made by the Administrator in its discretion, including, when applicable pursuant to principle described in Sections 5(m) and 6(m). 

Shares representing an Outside Director Stock Award shall be evidenced in such manner as the Administrator may deem appropriate, including book-entry
registration or issuance of one or more certificates (which may bear appropriate legends referring to the terms, conditions and restrictions applicable to such Award). The Administrator may require that any such certificates be held in custody by
the Company until any restrictions thereon shall have lapsed and that the Outside Director deliver a stock power, endorsed in blank, relating to the Stock covered by such Award. 
 Unless otherwise provided in an award agreement, until the expiration of all applicable restrictions, (i) the Restricted Stock shall be treated as outstanding, (ii) the Participant holding
shares of Restricted Stock may exercise full voting rights with respect to such shares, and (iii) the Participant holding shares of Restricted Stock shall be entitled to receive all dividends and other distributions paid with respect to such
shares while they are so held. Unless otherwise provided by the Administrator, if any such dividends or distributions are paid in shares of Stock, such shares shall be subject to the same restrictions as the shares of Restricted Stock with respect
to which they were paid. Notwithstanding anything to the contrary, at the discretion of the Administrator, all such dividends and distributions may be held in escrow by the Company (subject to the same restrictions) until all restrictions on the
respective Restricted Stock have lapsed. 

  
 21 

 With respect to an Outside Director Stock Award, an Outside Director, at his or her option, will be entitled
to make the election permitted under Section 83(b) of the Code, to include in gross income in the taxable year in which the Outside Director Stock Award is transferred to him or her, the fair market value of such shares at the time of transfer,
notwithstanding that such shares are subject to a substantial risk of forfeiture within the meaning of the Code, or he or she may elect to include in gross income the Fair Market Value of the Outside Director Stock Award as of the date or date on
which such restrictions lapse. Notwithstanding the foregoing, the Administrator shall adopt, from time to time, such rules with respect to the return of executed award agreements as it deems appropriate and failure by an Outside Director to comply
with such rules shall, without limitation, terminate the grant of such Outside Director Stock Award to such Outside Director and/or cause the forfeiture of any Outside Director Stock Award (or any portion thereof) as to which restrictions have not
yet lapsed. 
 10. CHANGE IN CONTROL PROVISIONS. 
  

	 	(a)	Impact of Event. Notwithstanding any other provision of the Plan to the contrary, in the event of a Change in Control: 

 

	 	(i)	The vesting and exercisability of any Stock Options, Outside Director Stock Options and Stock Appreciation Rights outstanding as of the date such Change in Control is
determined to have occurred and not then vested and exercisable shall become fully vested and exercisable; 

  

	 	(ii)	Any restrictions applicable to any outstanding Stock Awards and Outside Director Stock Awards shall lapse and the Stock relating to such Awards shall become free of all
restrictions and fully vested and transferable; and 

  

	 	(iii)	Provided that no material modification of the Award or any liability results under Section 409A of the Code, outstanding Awards shall be subject to any agreement
of acquisition, merger or reorganization that effects such Change in Control and that provides for: 

  

	 	(A)	The continuation of the outstanding Awards by the Company, if the Company is a surviving corporation; 

 

	 	(B)	The assumption of the outstanding Awards by the surviving corporation or its parent or subsidiary; 

 

	 	(C)	The substitution by the surviving corporation or its parent or subsidiary of equivalent awards for the outstanding Awards; or 

  
 22 

	 	(D)	Settlement of each share of Stock subject to an outstanding Award for the Change in Control Price (less, to the extent applicable, the per share exercise price), or, if
the per share exercise price equals or exceeds the Change in Control Price, the outstanding Award shall terminate and be canceled. 

  

	 	(b)	Definition of Change in Control. 

  

	 	(i)	For purposes of the Plan, a “Change in Control” shall occur or be deemed to have occurred only if any of the following events occur:

  

	 	(A)	The acquisition, directly or indirectly, by any person or group (as those terms are defined in Sections 3(a)(9), 13(d) and 14(d) of the Exchange Act and the rules
thereunder) of beneficial ownership (as determined pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally in the election of directors (voting securities) of the Company that represent 50% or more of the
combined voting power of the Company’s then outstanding voting securities, other than: 

  

	 	(1)	An acquisition by a trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Company or any
person controlled by the Company or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company; or 

 

	 	(2)	An acquisition of voting securities by the Company or a corporation owned, directly or indirectly by all of the stockholders of the Company in substantially the same
proportions as their ownership of the stock of the Company. 

 Notwithstanding the foregoing, the
following event shall not constitute an acquisition by any person or group for purposes of this subsection (a): an acquisition of the Company’s securities by the Company which causes the Company’s voting securities beneficially owned by a
person or group to represent 50% or more of the combined voting power of the Company’s then outstanding voting securities; provided, however, that if a person or group shall become the beneficial owner of 50% or more of the
combined voting power of the Company’s then outstanding voting securities by reason of share acquisitions by the 

  
 23 

 
Company as described above and shall, after such share acquisitions by the Company, become the beneficial owner of any additional voting securities of the Company, then such acquisition shall
constitute a Change in Control; or 
  

	 	(B)	Individuals who, as of or immediately following Distribution Time, constitute the Board of Directors of the Company (as of the Distribution Time, the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the Distribution Date whose election, or nomination for election by the Company’s stockholders,
was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election
contest relating to the election of directors on the Board) shall be, for purposes of this Plan, considered as though such person were a member of the Incumbent Board; or 

 

	 	(C)	The consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger,
consolidation, reorganization, or business combination or (y) the acquisition of assets or stock of another entity, in each case other than a transaction: 

 

	 	(1)	Which results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by the remaining outstanding or by
being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or
otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting
securities immediately after the transaction; and 

  

	 	(2)	 After which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor Entity;
provided, however, that no person or group shall be treated for purposes of this clause (2) as beneficially owning 50% or more of combined voting power of the Successor

  
 24 

	 	
Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or 

 

	 	(D)	A sale or disposition of all or substantially all of the Company’s assets; or 

 

	 	(E)	The Company’s stockholders approve a liquidation or dissolution of the Company. 

The Committee shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change
in Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change in Control and any incidental matters relating thereto. Notwithstanding anything herein to the contrary, the Distribution shall
not constitute a Change in Control. 
  

	 	(ii)	For purposes of Section 10(b), stock ownership is determined under Section 409A of the Code. 

 

	 	(c)	Change in Control Price. For purposes of the Plan, “Change in Control Price” means the Fair Market Value (which may be the amount of
consideration per share of Stock received by the holder of Stock in connection with the Change in Control transaction or, in the case of a tender or exchange offer, the highest price per share of Stock paid in such tender or exchange offer, in each
case, as determined by the Administrator in accordance with Section 12(n) hereunder) of a share of Stock on the date of a Change in Control. To the extent that the consideration paid in any such transaction described above consists all
or in part of securities or other non-cash consideration, the value of such securities or other non-cash consideration shall be determined in the sole discretion of the Board. The Participant shall receive the same form of consideration as holders
of common stock, subject to the same restrictions and limitations and indemnification obligations as the holders of common stock and will execute any and all documents required by the Administrator to evidence the same. 

11. MISCELLANEOUS. 
  

	 	(a)	 Amendment. The Board may at any time terminate, amend, alter, or discontinue the Plan, but no amendment, alteration or discontinuation shall be
made which would adversely affect the rights of a Participant under an Award theretofore granted without the Participant’s consent, except such an amendment (i) made to avoid an expense charge to the Company or an Affiliate under
applicable law or regulation, (ii) made to permit the Company or an Affiliate a deduction under the Code, or (iii) made to avoid the violation of Section 409A of the Code. No such amendment or alteration shall be made without the
approval of a majority vote of the Company’s shareholders, present in person or by proxy 

  
 25 

	 	
at any special or annual meeting of the shareholders to the extent such approval is required by law, agreement or the rules of any stock exchange or market on which the Stock is listed.

 The Administrator may amend the terms of any Stock Option or other Award theretofore granted, prospectively or
retroactively, but except as provided in Section 3 hereof no such amendment shall adversely affect the rights of a Participant without the Participant’s consent. 

 

	 	(b)	Unfunded Status of Plan. It is intended that this Plan be an “unfunded” plan for incentive and deferred compensation. The Administrator may authorize
the creation of trusts or other arrangements to meet the obligations created under this Plan to deliver Stock or make payments, provided that, unless the Administrator otherwise determines, the existence of such trusts or other
arrangements is consistent with the “unfunded” status of this Plan. 

  

	 	(c)	General Provisions. 

  

	 	(i)	Unless the shares to be issued in connection with an Award are registered prior to the issuance thereof under the Securities Act of 1933, as amended, the Administrator
may require each person purchasing or receiving shares pursuant to an Award to represent to and agree with the Company in writing that such person is acquiring the shares for his or her own account as an investment without a view to or for sale in
connection with, the distribution thereof. The certificates for such shares may include any legend which the Administrator deems appropriate to reflect any restrictions on transfer. 

All certificates for shares of Stock or other securities delivered under the Plan shall be subject to such stock transfer orders and
other restrictions as the Administrator may deem advisable under the rules, regulations and other requirements of the Commission, any stock exchange or market on which the Stock is then listed and any applicable Federal or state securities law, and
the Administrator may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
  

	 	(ii)	Nothing contained in the Plan shall prevent the Company or any Affiliate from adopting other or additional compensation arrangements for its employees.

  

	 	(iii)	The adoption of the Plan shall not confer upon any employee, director, associate, consultant or advisor any right to continued employment, directorship or service, nor
shall it interfere in any way with the right of the Company or any Subsidiary or Affiliate to terminate the employment or service of any employee, consultant or advisor at any time. 

  
 26 

	 	(iv)	No later than the date as of which an amount first becomes includible in the gross income of the Participant for Federal income tax purposes with respect to any Award
under the Plan, the Participant shall pay to the Company, or make arrangements satisfactory to the Company regarding the payment of, any Federal, state, local or foreign taxes of any kind required by law to be withheld with respect to such amount.
Unless otherwise determined by the Administrator, withholding obligations may be settled with Stock, including Stock that is part of the Award that gives rise to the withholding requirement. The obligations of the Company under the Plan shall be
conditional on such payment or arrangements, and the Company, its Subsidiaries and its Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to the Participant. The Administrator may
establish such procedures as it deems appropriate for the settlement of withholding obligations with Stock. 

  

	 	(v)	The Administrator shall establish such procedures as it deems appropriate for a Participant to designate a beneficiary to whom any amounts payable in the event of the
Participant’s death are to be paid. In the event of the death of a Participant, a condition of exercising any Award shall be the delivery to the Company of such tax waivers and other documents as the Administrator shall determine.

  

	 	(vi)	Neither any Participant nor his or her legal representatives, legatees or distributees shall be or be deemed to be the holder of any share of Stock covered hereby
unless and until a certificate for such share has been issued. Upon payment of the purchase price thereof, a share shall be fully paid and non-assessable. 

  

	 	(vii)	The grant of an Award shall in no way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to
merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets, or issue bonds, debentures, preferred or prior preference stock ahead of or affecting the Stock, or take any other corporate act or proceeding
whether of a similar character or otherwise. 

  

	 	(viii)	 If any payment or right accruing to a Participant under this Plan (without the application of this Section 11(c)(viii)), either alone or
together with other payments or rights accruing to the Participant from the Company or an Affiliate (“Total Payments”) would constitute a “parachute payment” (as defined in Section 280G of the Code and

  
 27 

	 	
regulations thereunder), such payment or right shall be reduced to the largest amount or greatest right that will result in no portion of the amount payable or right accruing under this Plan
being subject to an excise tax under Section 4999 of the Code or being disallowed as a deduction under Section 280G of the Code; provided, however, that the foregoing shall not apply to the extent provided otherwise in an
Award or in the event the Participant is party to an agreement with the Company or an Affiliate that explicitly provides for an alternate treatment of payments or rights that would constitute “parachute payments.” The determination of
whether any reduction in the rights or payments under this Plan is to apply shall be made by the Administrator in good faith after consultation with the Participant, and such determination shall be conclusive and binding on the Participant. The
Participant shall cooperate in good faith with the Administrator in making such determination and providing the necessary information for this purpose. The foregoing provisions of this Section 11(c)(viii) shall apply with respect to any
person only if, after reduction for any applicable Federal excise tax imposed by Section 4999 of the Code and Federal income tax imposed by the Code, the Total Payments accruing to such person would be less than the amount of the Total Payments
as reduced, if applicable, under the foregoing provisions of this Plan and after reduction for only Federal income taxes. 

  

	 	(ix)	To the extent that the Administrator determines that the restrictions imposed by the Plan preclude the achievement of the material purposes of the Awards in
jurisdictions outside the United States, the Administrator in its discretion may modify those restrictions as it determines to be necessary or appropriate to conform to applicable requirements or practices of jurisdictions outside of the United
States. 

  

	 	(x)	The headings contained in this Plan are for reference purposes only and shall not affect the meaning or interpretation of this Plan. 

 

	 	(xi)	If any provision of this Plan shall for any reason be held to be invalid or unenforceable, such invalidity or unenforceability shall not effect any other provision
hereby, and this Plan shall be construed as if such invalid or unenforceable provision were omitted. 

  

	 	(xii)	This Plan shall inure to the benefit of and be binding upon each successor and assign of the Company. All obligations imposed upon a Participant, and all rights granted
to the Company hereunder, shall be binding upon the Participant’s heirs, legal representatives and successors. 

  
 28 

	 	(xiii)	This Plan and each agreement granting an Award constitute the entire agreement with respect to the subject matter hereof and thereof, provided that in the event
of any inconsistency between this Plan and such agreement, the terms and conditions of the Plan shall control. 

  

	 	(xiv)	In the event there is an effective registration statement under the Securities Act pursuant to which shares of Stock shall be offered for sale in an underwritten
offering, a Participant shall not, during the period requested by the underwriters managing the registered public offering, effect any public sale or distribution of shares of Stock received, directly or indirectly, as an Award or pursuant to the
exercise or settlement of an Award. 

  

	 	(xv)	None of the Company, an Affiliate or the Administrator shall have any duty or obligation to disclose affirmatively to a record or beneficial holder of Stock or an
Award, and such holder shall have no right to be advised of, any material information regarding the Company or any Affiliate at any time prior to, upon or in connection with receipt or the exercise of an Award or the Company’s purchase of Stock
or an Award from such holder in accordance with the terms hereof. 

  

	 	(xvi)	This Plan, and all Awards, agreements and actions hereunder, shall be governed by, and construed in accordance with, the laws of the state of Delaware (other than its
law respecting choice of law). 

  

	 	(xvii)	No Award granted pursuant to this Plan is intended to constitute “deferred compensation” as defined in Section 409A of the Code, and the Plan and the
terms of all Awards shall be interpreted accordingly. If any provision of the Plan or an Award contravenes any regulations or Treasury guidance promulgated under Section 409A of the Code or could cause an Award to be subject to the penalties
and interest under Section 409A of the Code, such provision of the Plan or Award shall be modified to maintain, to the maximum extent practicable, the original intent of the applicable provision without violating the provisions of
Section 409A of the Code. 

 12. DEFINITIONS. 
 For purposes of this Plan, the following terms are defined as set forth below: 
  

	 	(a)	“Affiliate” means a corporation or other entity (i) controlled by the Company and which, in the case of grants of Stock Options, Outside Director
Stock Options and Stock Appreciation Rights would, together with the Company, be classified as the “service recipient” (as defined in the regulations under Section 409A of the Code) with respect to an Eligible Individual, and
(ii) is designated by the Administrator as such. 

  
 29 

	 	(b)	“Award” means a Stock Appreciation Right, Stock Option, Stock Award, Outside Director Stock Option or Outside Director Stock Award.

  

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

  

	 	(d)	“Board Meeting” means meeting of the Board of Directors of the Company. 

 

	 	(e)	“Cause” means (i) the commission by the Participant of any act or omission that would constitute a felony or any crime of moral turpitude under
Federal law or the law of the state or foreign law in which such action occurred, (ii) dishonesty, disloyalty, fraud, embezzlement, theft, disclosure of trade secrets or confidential information or other acts or omissions that result in a
breach of fiduciary or other material duty to the Company and/or a Subsidiary, (iii) continued reporting to work or working under the influence of alcohol, an illegal drug, an intoxicant or a controlled substance which renders Participant
incapable of performing his or her material duties to the satisfaction of the Company and/or its Subsidiaries, or (iv) the Participant’s substantial disregard in the performance of the Participant’s duties and/or responsibilities with
respect to the Company and/or a Subsidiary, which disregard shall continue after notice to the Participant and a reasonable opportunity to cure such behavior. Notwithstanding the foregoing, if the Participant and the Company or the Affiliate have
entered into an employment or services agreement which defines the term “Cause” (or a similar term), such definition shall govern for purposes of determining whether such Participant has been terminated for Cause for purposes of
this Plan. The determination of Cause shall be made by the Administrator, in its sole discretion. 

  

	 	(f)	“Carrols” means Carrols Restaurant Group, Inc. and any and all of its Subsidiaries whether now existing or hereafter formed. 

 

	 	(g)	“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto. 

 

	 	(h)	“Commission” means the Securities and Exchange Commission or any successor agency. 

 

	 	(i)	“Committee” means a committee of Directors appointed by the Board to administer this Plan. Insofar as the Committee is responsible for granting Awards
to Participants hereunder, it shall consist solely of two or more directors, each of whom is a “non-employee director” within the meaning of Rule 16b-3, an “outside director” under Section 162(m) of the Code, an
“independent director” as defined by the Sarbanes-Oxley Act of 2002, and “independent” as defined by the rules of any stock exchange or market on which the Stock is listed. 

  
 30 

	 	(j)	“Covered Employee” means a person who is a “covered employee” within the meaning of Section 162(m) of the Code.

  

	 	(k)	“Director” means a member of the Company’s Board. 

  

	 	(l)	“Disability” means mental or physical illness that entitles the Participant to receive benefits under the long-term disability plan of the Company or
an Affiliate, or if the Participant is not covered by such a plan or the Participant is not an employee of the Company or an Affiliate, a mental or physical illness that renders a Participant totally and permanently incapable of performing the
Participant’s duties for the Company or an Affiliate; provided, however, that a Disability shall not qualify under this Plan if it is the result of (i) a willfully self- inflicted injury or willfully self-induced sickness; or
(ii) an injury or disease contracted, suffered or incurred while participating in a criminal offense. Notwithstanding the foregoing, if the Participant and the Company or an Affiliate have entered into an employment or services agreement which
defines the term “Disability” (or a similar term), such definition shall govern for purposes of determining whether such Participant suffers a Disability for purposes of this Plan. The determination of Disability shall be made by
the Administrator, in its sole discretion. The determination of Disability for purposes of this Plan shall not be construed to be an admission of disability for any other purpose. 

 

	 	(m)	“Distribution” has the meaning set forth in Section 1 of the Plan. 

 

	 	(n)	“Distribution Date” has the meaning set forth in Section 1 of the Plan. 

 

	 	(o)	“Distribution Time” means the time at which the Distribution is effective. 

 

	 	(p)	“Effective Date” has the meaning set forth in Section 1 of the Plan. 

 

	 	(q)	“Eligible Individual” means any (i) officer, employee, associate or director of the Company or a Subsidiary or Affiliate, (ii) any consultant
or advisor providing services to the Company or a Subsidiary or Affiliate, or (iii) employees of (x) a corporation or other business enterprise which has been acquired by the Company or a Subsidiary, which, in the case of grants of Stock
Options and Stock Appreciation Rights would, together with the Company and, if applicable, the Subsidiary, be classified as the “service recipient” (as defined in the regulations under Section 409A of the Code) with respect to such
employees and (y) who hold options with respect to the stock of such corporation which the Company has agreed to assume. 

  
 31 

	 	(r)	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto. 

 

	 	(s)	“Fair Market Value” means, as of any given date, the fair market value of the Stock, determined as follows: (i) if the Stock is listed on any
established stock exchange or a national market system, including without limitation, the NASDAQ Global Market, its fair market value on such date shall be the reported closing selling price for the Stock on the principal securities exchange or
national market system on which the Stock is at such date listed for trading; provided that if there are no sales of Stock on that date, then the reported closing selling price for the Stock on the next preceding date shall be determinative
of fair market value; or (ii) if the Stock is listed on the OTC Electronic Bulletin Board, its fair market value on such date shall be the closing selling price on such date for the Stock as reported on the OTC Electronic Bulletin Board;
provided that if there are no sales of the Stock on that date, then the reported closing selling price for the Stock on the next preceding date for which such closing selling price is quoted shall be determinative of fair market value; or,
(iii) if the Stock is not traded on the OTC Electronic Bulletin Board, an exchange, or a national market system, or notwithstanding (i) and (ii) above, if a determination of Fair Market Value under (i) or (ii) above would
violate the rules under Section 409A of the Code and the regulations thereunder with respect to the determination of fair market value, Fair Market Value of the Stock on such date shall be determined in good faith by the Administrator in
accordance with Section 409A of the Code and the regulations issued thereunder, and such determination shall be conclusive and binding on all persons. In the event of a Change in Control, notwithstanding the foregoing provisions of this
Section 12(o), Fair Market Value of the Stock in connection with such Change in Control transaction shall be determined in good faith by the Administrator in accordance with Section 409A of the Code and the regulations issued
thereunder, and such determination shall be conclusive and binding on all persons. 

  

	 	(t)	“Family Member” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law of a Participant (including adoptive relationships); any person sharing the Participant’s household (other than a tenant or employee); any trust in which the
Participant and any of these persons have all of the beneficial interest; any foundation in which the Participant and any of these persons control the management of the assets; any corporation, partnership, limited liability company or other entity
in which the Participant and any of these other persons are the direct and beneficial owners of all of the equity interests (provided the Participant and these other persons agree in writing to remain the direct and beneficial owners of all
such equity interests); and any personal representative of the Participant upon the Participant’s death for purposes of administration of the Participant’s estate or upon the Participant’s incompetency for purposes of the protection
and management of the assets of the Participant. 

  
 32 

	 	(u)	“Incentive Stock Option” means any Stock Option intended to be and designated as an “incentive stock option” within the meaning of
Section 422 of the Code. 

  

	 	(v)	“Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option. 

 

	 	(w)	“Optionee” means a person who holds a Stock Option. 

  

	 	(x)	“Outside Director” means a person who is a “non-employee director” of the Company within the meaning of Section 16 of the Exchange Act
and the regulations promulgated thereunder (irrespective of whether Section 16 of the Exchange Act is applicable to the Company or such Director). 

  

	 	(y)	“Outside Director Award” means an Outside Director Stock Option or Outside Director Stock Award. 

 

	 	(z)	“Outside Director Stock Award” means an Award, other than a Stock Option, Stock Appreciation Right, Stock Award or Outside Director Stock Option, made
in Stock or denominated in shares of Stock. 

  

	 	(aa)	“Outside Director Stock Option” means an Option granted under Section 8. 

 

	 	(bb)	“Participant” means a person granted an Award. 

  

	 	(cc)	“Performance Award” means a right, granted to a Participant under Section 7, to receive Awards based upon performance criteria specified by
the Administrator. 

  

	 	(dd)	“Representative” means (i) the person or entity acting as the executor or administrator of a Participant’s estate pursuant to the last will
and testament of a Participant or pursuant to the laws of the jurisdiction in which the Participant had his or her primary residence at the date of the Participant’s death; (ii) the person or entity acting as the guardian or temporary
guardian of a Participant; (iii) the person or entity which is the beneficiary of the Participant upon or following the Participant’s death; or (iv) any person to whom a Stock Option has been transferred with the permission of the
Administrator or by operation of law; provided that only one of the foregoing shall be the Representative at any point in time as determined under applicable law and recognized by the Administrator. 

 

	 	(ee)	“Retirement” means termination of employment or provision of services without Cause, death or Disability on or after age 65 with 5 years of service
including in such calculation all periods of service with the Company, or Carrols, or both prior to the Distribution. 

  
 33 

	 	(ff)	“Stock” means the common stock, par value $.01 per share, of the Company. 

 

	 	(gg)	“Stock Appreciation Right” means a right granted under Section 5. 

 

	 	(hh)	“Stock Award” means an Award, other than a Stock Option, Outside Director Stock Option, Stock Appreciation Right or Outside Director Stock Award, made
in Stock or denominated in shares of Stock. 

  

	 	(ii)	“Stock Option” means an option granted under Section 4. 

 

	 	(jj)	“Subsidiary” means any company during any period in which it is a “subsidiary corporation” (as such term is defined in Section 424(f) of
the Code) with respect to the Company. 

  

	 	(kk)	“Ten Percent Holder” means an individual who owns, or is deemed to own, stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company or of any parent or subsidiary corporation of the Company, determined pursuant to the rules applicable to Section 422(b)(6) of the Code. 

 In addition, certain other terms used herein have the definitions given to them in the places they are first used. 

  
 34

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