Document:

Form of Transition Services Agreement

 Exhibit 10.4 
 FORM OF 
 TRANSITION SERVICES AGREEMENT 

BY AND AMONG 

FIESTA RESTAURANT GROUP, INC., 
 CARROLS RESTAURANT GROUP, INC. 
 AND 

CARROLS CORPORATION 
 DATED AS OF                     , 2012 

 TRANSITION SERVICES AGREEMENT 
 THIS TRANSITION SERVICES AGREEMENT, dated as of                     
        , 2012 (this “Agreement”), is entered into by and among Fiesta Restaurant Group, Inc., a Delaware corporation (“Fiesta”), Carrols Restaurant Group, Inc., a
Delaware corporation (“CRG”), and Carrols Corporation, a Delaware corporation (“Carrols Corporation” and together with CRG, “Carrols”) 

WITNESSETH: 
 WHEREAS, CRG,
Carrols Corporation and Fiesta have entered into a Separation and Distribution Agreement, dated as of the date hereof (the “Distribution Agreement”), providing for, among other things, the distribution by CRG of its entire equity
ownership interest in Fiesta through a pro-rata distribution of all of the outstanding shares of Fiesta Common Stock on the Distribution Date to the holders of CRG Common Stock pursuant to the terms and subject to the conditions of the Distribution
Agreement (the “Distribution”); 
 WHEREAS, it is the intention of Carrols and Fiesta for Carrols to provide certain services
and support to Fiesta for such time period as is necessary for Fiesta to develop its own infrastructure to provide such services and support for itself; and to a lesser extent, for Fiesta to provide certain services and support to Carrols for such
time period as is necessary for Carrols to provide such services and support for itself; 
 WHEREAS, Carrols and Fiesta agree that the purpose
and goal of this Agreement is for Carrols to provide, and Fiesta to receive, the services in the most efficient and cost effective manner possible; and 
 WHEREAS, Carrols and Fiesta desire to enter into this Agreement to set forth the roles and responsibilities with regard to services to be provided by Carrols to Fiesta and by Fiesta to Carrols for certain
transition periods specified herein following the Distribution. 
 NOW, THEREFORE, the parties agree as follows: 

ARTICLE I 
 DEFINITIONS 
 “Affiliate” means with respect to any specified Person, a
Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. For this purpose “control” means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of the Person controlled, whether through ownership of voting securities, by contract or otherwise. 
 “Agreement” has the meaning set forth in the preamble. 
 “Business Day” means
any day other than a Saturday, a Sunday or a day on which banking institutions located in the State of New York are authorized or obligated by Law or executive order to close. 

  

 “Carrols” has the meaning set forth in the preamble. 

“Carrols Corporation” has the meaning set forth in the preamble. 
 “Carrols Group” means CRG and the Subsidiaries of CRG after the Distribution. 

“Carrols LLC” means Carrols LLC, a Delaware limited liability company and a Wholly-owned Subsidiary of Carrols Corporation. 

“Carrols Party” has the meaning set forth in Section 9.1(a). 
 “Confidential Information” has the meaning in Section 7.1 hereof. 

“CRG” has the meaning set forth in the preamble. 
 “CRG Common Stock” has the meaning set forth in the Distribution Agreement. 

“Dispute” has the meaning set forth in Section 10.2(a). 
 “Distribution” has the meaning set forth in the recitals. 
 “Distribution
Agreement” has the meaning set forth in the recitals. 
 “Distribution Date” has the meaning set forth in the Distribution
Agreement. 
 “Escalation Notice” has the meaning set forth in Section 10.2(c). 

“Exhibits” has the meaning set forth in Section 2.1(a). 
 “Expenses” has the meaning set forth in Section 3.2. 
 “Fees” has
the meaning set forth in Section 3.1. 
 “Fiesta” has the meaning set forth in the preamble. 

“Fiesta Common Stock” has the meaning set forth in the Distribution Agreement. 
 “Fiesta Group” means Fiesta and the Subsidiaries of Fiesta. 
 “Fiesta Party”
has the meaning set forth in Section 9.1(a). 
 “Governmental Authority” means any U.S. federal, state, local or non-U.S.
court, government, department, commission, board, bureau, agency, official or other regulatory, administrative or governmental authority. 

  

 “Initial Service Levels” has the meaning set forth in Section 2.3(b). 

“Law” means any law, statute, ordinance, rule, regulation, order, writ, judgment, injunction or decree of any Governmental Authority.

 “Liabilities” means any and all claims, debts, Losses, liabilities, assessments, guarantees, assurances, commitments and
obligations, of any kind, character or description (whether absolute, contingent, matured, not matured, liquidated, un-liquidated, accrued, known, unknown, direct, indirect, derivative or otherwise or whether based in contract, tort, implied or
express warranty, strict liability, criminal or civil statute, or otherwise) whenever arising, including, but not limited to, those arising under or in connection with any Law, and those arising under any contract, guarantee, commitment or
undertaking. 
 “Losses” means with respect to any Person, all losses, damages (whether compensatory, punitive, consequential,
multiple or other), judgments, settlements, equitable or injunctive relief or disgorgements, including, where applicable, all punitive damages and criminal and civil fines and penalties, but excluding damages in respect of actual or alleged lost
profits, suffered by such Person, and including all costs, expenses and interest relating thereto (including, but not limited to, all expenses of investigation, all reasonable accountant or attorneys’ fees and all other out-of-pocket expenses),
regardless of whether any such losses, damages, judgments, settlements, costs, expenses, fines and penalties relate to or arise out of such Person’s own alleged or actual negligent, grossly negligent, reckless or intentional misconduct.

 “Parties” means Fiesta and Carrols. 
 “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a
governmental entity or any department, agency or political subdivision thereof. 
 “Representative” has the meaning set forth in
Section 4.1. 
 “Senior Executives” has the meaning set forth in Section 10.2(c). 

“Services” has the meaning set forth in Section 2.1(a). 
 “Subsidiary” means any Person means any corporation or other 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 organization is directly or indirectly owned or controlled by such Person or by any
one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries. 
 “Suspension Notice” has the meaning set
forth in Section 3.3(b). 
 “Term” has the meaning set forth in Section 8.1. 

  

 “Wholly-owned Subsidiary” means a Subsidiary of a Party substantially all of whose voting
securities and outstanding equity interest are owned either directly or indirectly by such Party or one or more of its Subsidiaries or by such Party and one or more of its Subsidiaries. 

ARTICLE II 
 SERVICES TO BE PROVIDED 
 2.1. Services & Charges.

 (a) Exhibits 1 through 5 (collectively, the “Exhibits”) attached to and made a part of this Agreement
describe the services to be provided by Carrols to the Fiesta Group and by Fiesta to the Carrols Group (the “Services”). The Parties have previously mutually agreed in writing to the allocation methodology for the individual
Services. The Parties have made a good faith effort as of the date hereof to identify each Service and to complete the content of the Exhibits accurately. It is anticipated that the Parties will modify the Services from time to time by written
agreement among the Parties. In that case or to the extent that any Exhibit is incomplete, the Parties will use good faith efforts to modify the Exhibits. 
 (b) The Parties may also identify additional Services that they wish to incorporate into this Agreement. The Parties will agree in writing to additional Exhibits setting forth the description of such
Services, the Fees for such Services and any other applicable terms in accordance with Section 11.1 of this Agreement. 
 2.2.
Independent Contractors. The Parties will provide the Services either through their own resources, through the resources of its Subsidiaries or Affiliates, or by contracting with independent contractors as agreed hereunder. To the extent
that Carrols or Fiesta decides to provide a Service through an independent contractor in the future, Carrols or Fiesta, as the case may be, shall consult with and obtain the prior written approval of each other, which approval shall not be
unreasonably withheld or delayed. 
 2.3. Standard of Care; Service Level. 

(a) In providing the Services hereunder, the Parties will exercise at least the same degree of care as they have historically exercised
in providing and performing such Services, including (i) at least with the same level of quality, responsiveness and timeliness and (ii) utilizing individuals of such experience, training and skill. 

(b) Each of Fiesta and Carrols shall provide Services to the Carrols Group and the Fiesta Group, respectively, at the Service level (the
“Initial Service Levels”) consistent with past practice prior to the Distribution. 
 (c) In the performance of
its duties and obligations under this Agreement, each Party shall comply with all applicable Laws. The Parties shall cooperate fully in obtaining and maintaining in effect all permits and licenses that may be required for the performance of the
Services. 
  

	2.4.	Records; Audit Right; Access. 

 (a) The Parties shall maintain books and records in reasonable and customary detail pertaining to the provision of Services pursuant to this Agreement. Each of Carrols and Fiesta shall make such books and
records available for inspection by the other or its authorized representatives during normal business hours, upon reasonable notice to Carrols or Fiesta, as the case may be, and shall retain such books and records for periods consistent with the
retention policies in effect immediately prior to the Distribution. 

  

 (b) Upon thirty (30) days’ advance written notice a Party may audit (or cause an
independent third party auditor to audit), during regular business hours and in a manner that complies with the building and security requirements of the other Party, the books, records and facilities of the other Party pertaining to the provision
of Services pursuant to this Agreement to the extent necessary to determine the other Party’s compliance with this Agreement. For any given Service, a Party shall have the right to audit such books, records and facilities of the other Party
once for each twelve month period during which payment obligations are due. Any audit under this Section 2.4(b) shall not interfere unreasonably with the operations of a Party. The Party requesting an audit pursuant to this
Section 2.4(b) shall pay the costs of conducting such audit. 
 (c) During the Term and for so long as any Services
are being provided hereunder, each of Carrols and Fiesta will provide the other and its authorized representatives, during regular business hours and upon reasonable prior written notice, reasonable access to its respective employees,
representatives, facilities and books and records as it or its representatives may reasonably be required in order to perform the Services. 
 ARTICLE III 
 FEES 

3.1. General. The fees for each Service are set forth in the attached Exhibits (collectively, the “Fees”). 

3.2. Expenses. The Parties shall be entitled to charge reasonable documented, out-of-pocket costs and expenses incurred in providing the
Services (the “Expenses”). 
 3.3. Payments. 

(a) A Party will deliver to the other, no later than fifteen (15) days following the last day of each month, an invoice that
includes in reasonable detail, including a calculation, of the aggregate Fees and Expenses incurred for that month. Payments of invoices shall be made by wire transfer of immediately available funds to one or more accounts specified in writing by
the Parties. A Party will pay to the other monthly, no later than the 15th day of the following month, the aggregate Fees incurred during the previous month. All amounts payable hereunder shall be paid without setoff, deduction, abatement or
counterclaim. 
 (b) If either Carrols or Fiesta fails to make any payment of a material invoice within sixty (60) days
from the date of such payment was due, the other shall have the right, in its sole discretion, upon ten (10) Business Days prior written notice (the “Suspension Notice”), to suspend performance of the Services until payment
shall have been received. 

  

 ARTICLE IV 

REPRESENTATIVES 

4.1. Representative. Tim Taft, the Chief Executive Officer of Fiesta, and Daniel T. Accordino, the Chief Executive Officer of CRG and
Carrols Corporation, will serve as administrative representatives (“Representative”) of Fiesta and Carrols, respectively, to facilitate day-to-day communications and performance under this Agreement. Each Party may treat an act of a
Representative of the other Party as being authorized by such other Party. Each Party may replace its Representative by giving prior written notice of the replacement to the other Party. 

ARTICLE V 
 AUTHORITY AS AGENT 
 5.1. Authority as Agent. 

(a) Fiesta is hereby authorized to act as agent for each of the entities comprising the Carrols Group for the purpose of performing
Services hereunder and as is necessary or desirable to perform such Services. Carrols will execute and deliver or cause the appropriate member of the Carrols Group to execute and deliver to Fiesta any document or other evidence which may be
reasonably required by Fiesta to demonstrate to third parties the authority of Fiesta described in this Article V. 
 (b)
Carrols is hereby authorized to act as agent for each of the entities comprising the Fiesta Group for the purpose of performing Services hereunder and as is necessary or desirable to perform such Services. Fiesta will execute and deliver or cause
the appropriate member of the Fiesta Group to execute and deliver to Carrols any document or other evidence which may be reasonably required by Carrols to demonstrate to third parties the authority of Carrols described in this Article V.

 ARTICLE VI 
 AUTHORITY; 
 INFORMATION; 

COOPERATION; CONSENTS 
 6.1. Authority. Each Party represents to the other that: 
 (a) it
has the requisite corporate authority to enter into and perform this Agreement; 
 (b) its execution, delivery and performance
of this Agreement have been duly authorized by all requisite corporate action on its behalf; 
 (c) this Agreement is
enforceable against it; and 
 (d) it has obtained all consents or approvals of Governmental Authorities and other Persons that
are conditions to its entering into this Agreement. 

  

 6.2. Information Regarding Services. Each Party shall make available to the other Party any
information required or reasonably requested by that other Party regarding the performance of any Service and shall be responsible for providing that information on a timely basis and for ensuring the accuracy and completeness of that information;
provided, however, that a Party shall not be liable for not providing any information that is subject to a confidentiality obligation owed by it to a Person other than an Affiliate of it or the other Party. 

6.3. Cooperation. The Parties will use best efforts to cooperate with each other in all matters relating to the provision and receipt of
Services. Such good faith cooperation will include providing electronic access to systems used in connection with Services and using commercially reasonable efforts to obtain all consents, licenses, sublicenses or approvals necessary to permit each
Party to perform its obligations. The Parties will cooperate with each other in making such information available as needed in the event of any and all internal or external audits. If this Agreement is terminated in whole or in part, the Parties
will cooperate with each other in all reasonable respects in order to effect an efficient transition and to minimize the disruption to the business of both Parties, including the assignment or transfer of the rights and obligations under any
contracts. 
 6.4. Further Assurances. Each Party shall take such actions, upon request of the other Party and in addition to the
actions specified in this Agreement, as may be necessary or reasonably appropriate to implement or give effect to this Agreement. 
 6.5.
Force Majeure. Neither Party shall be held liable for any delay or failure in performance of any part of this Agreement by reason of any cause beyond its reasonable control, including, but not limited to, acts of God, acts of civil or
military authority, government regulations, embargoes, epidemics, war, terrorist acts, riots, fires, explosions, earthquakes, nuclear accidents, floods, hurricanes, tornadoes, major storms, strikes, power blackouts affecting facilities, inability to
secure products or services of other persons or transportation facilities, or acts or omissions of transportation common carriers, provided that the Party so affected shall use reasonable commercial efforts to remove such causes of non-performance.
Upon the occurrence of any event of force majeure, the Party whose performance is prevented shall promptly give written notice to the other Party and the Parties shall promptly confer in good faith to agree upon reasonable action to minimize the
impact of such event on the Parties. 
 ARTICLE VII 

CONFIDENTIAL INFORMATION 
 7.1. Definition. For the purposes of this Agreement, “Confidential Information” means non-public information about the disclosing Party’s or any of its Affiliates’
business or activities that is proprietary and confidential, which shall include, without limitation, all business, financial, legal, technical and other information, including software (source and object code) and programming code, of a Party or
its Affiliates marked or designated “confidential” or “proprietary” or by its nature or the circumstances surrounding its disclosure should reasonably be regarded as confidential. Confidential Information includes not only
written or other tangible information, but also information transferred orally, visually or electronically or by any other means. Confidential Information will not include information that (i) is in or enters the public domain without breach of
this Agreement, or (ii) the receiving Party lawfully receives from a third party without restriction on disclosure and, to the receiving Party’s knowledge without breach of a nondisclosure obligation. 

  

 7.2. Nondisclosure. Each of Fiesta and Carrols agree that (i) it will not disclose to any
third party or use any Confidential Information disclosed to it by the other except as expressly permitted in this Agreement, and (ii) it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the
other Party in its possession or control, which will in no event be less than the measures it uses to maintain the confidentiality of its own information of similar type and importance. 
 7.3. Permitted Disclosure. Notwithstanding the foregoing, each Party may disclose Confidential Information (i) to the extent required by a court of competent jurisdiction or other
Governmental Authority or otherwise as required by Law, including without limitation disclosure obligations imposed under the federal securities laws, provided that such Party has given the other Party prior written notice of such requirement when
legally permissible to permit the other Party to take such legal action to prevent the disclosure as it deems reasonable, appropriate or necessary, or (ii) on a “need-to-know” basis under an obligation of confidentiality to its
consultants, legal counsel, Affiliates, accountants, banks and other financing sources and their advisors. 
 7.4. Ownership of
Confidential Information. All Confidential Information supplied or developed by either Party shall be and remain the sole and exclusive property of the Party who supplied or developed it. 

7.5. Injunctive Relief. Each Party acknowledges and agrees that it would be difficult to measure the damages that might result from any
actual or threatened breach of this Article VII and that such actual or threatened breach by it may result in immediate, irreparable and continuing injury to the other Party and that a remedy at law for any such actual or threatened breach
may be inadequate. Accordingly, the Parties agree that the non-breaching Party, in its sole discretion and in addition to any other remedies it may have at law or in equity, shall be entitled to seek temporary, preliminary and permanent injunctive
relief or other equitable relief, issued by a court of competent jurisdiction, in case of any such actual or threatened breach (without the necessity of actual injury being proved and with the necessity of posting bond). 

ARTICLE VIII 
 TERM AND TERMINATION 
 8.1. Term. Subject to termination in accordance
with Section 8.2 hereof, this Agreement shall terminate on the third anniversary of the Distribution Date (the “Term”), provided that the Term this Agreement shall be extended for one (1) additional year upon ninety
(90) days prior written notice from the date of the end of the Term by Fiesta to Carrols, provided further that at any time and from time to time Fiesta may terminate this Agreement with respect to one or more Services under this Agreement by
providing ninety (90) days prior written notice to Carrols whereupon Fiesta would no longer be responsible for payment for such terminated Service. 

  

 8.2. Termination. This Agreement may be terminated: 

(a) by written agreement by the Parties; 
 (b) by either Party in the event an unpaid invoice resulting in delivery to the other of a Suspension Notice under Section 3.3(b) is not satisfied within sixty (60) days of the date of
delivery of such notice unless such failure is the subject of a good faith dispute and the non-paying party has initiated and is pursuing resolution of such dispute pursuant to Article X herein; 

(c) by either Party upon a material breach (other than non-payment of Fees or Expenses) by the other Party that is not cured within
thirty (30) days after prior written notice of such breach from the non-breaching Party, except that where such breach is not capable of being cured within thirty (30) days, the breaching Party shall be accorded thirty (30) additional
days to cure such breach if it demonstrates that it is capable of curing such breach within such additional period; or 
 (d)
upon thirty (30) days’ advance written notice by either Party to the other where one Party: (i) commences a voluntary case or other proceeding seeking liquidation, reorganization, or similar relief or seeks the appointment of a
trustee, receiver, liquidator or other similar official of it or the taking of possession by any such official in any involuntary case or other proceeding commenced against it, or makes a general assignment for the benefit of creditors, or fails
generally to pay its debts as they become due; or (ii) has an involuntary case or other proceeding commenced against it seeking liquidation, reorganization or other relief with respect to it or substantially all of its debts, or seeks the
appointment of a trustee, receiver, liquidator, custodian or other similar official for such Party or any substantial part of its property, and such involuntary case or other proceeding remains undismissed for a period of sixty (60) days.

 8.3. Termination Assistance Services. The Parties agree that, upon termination of this Agreement or any of the Services set
forth in the Exhibits, they will cooperate in good faith with each other to provide reasonable assistance to make an orderly transition to another supplier of the Services and return all Confidential Information related to a Service. 

ARTICLE IX 
 LIMITATION OF LIABILITY; 
 INDEMNIFICATION 

9.1. Limitation of Liability. 
 (a) Except as may be provided in Section 9.2 below Fiesta and its Affiliates (each, a “Fiesta Party”) shall not be liable to any member of Carrols and its Affiliates (each, a
“Carrols Party”) and each Carrols Party shall not be liable to any Fiesta Party, in each case, for any Liabilities of any Carrols Party or any Fiesta Party, respectively, arising in connection with this Agreement and the Services
provided hereunder. 
 (b) The Parties acknowledge and agree that the indemnification provisions contained in Article IX
shall be the sole and exclusive remedy for Liabilities arising out of caused by a breach of this Agreement or incurred by the Parties as set forth in Section 9.2. 

  

 9.2. Indemnification. 

(a) Fiesta shall indemnify, defend and hold harmless each Carrols Party from and against all Liabilities, of any kind or nature,
(i) caused by or arising out of a breach of this Agreement by a Fiesta Party or (ii) (1) incurred by a Carrols Party or (2) of third parties unrelated to any Carrols Party, in the case of (1) and (2) caused by or
arising in connection with the gross negligence or willful misconduct of any employee of a Fiesta Party in connection with Fiesta’s performance under this Agreement, except to the extent that the Liabilities were caused directly or indirectly
by acts or omissions of a Carrols Party. 
 (b) Each of CRG, Carrols Corporation and Carrols LLC shall jointly and severally
indemnify, defend and hold harmless each Fiesta Party from and against all Liabilities, of any kind or nature, (i) caused by or arising out of a breach of this Agreement by a Carrols Party or (ii) (1) incurred by a Fiesta Party or
(2) of third parties unrelated to any Fiesta Party, in the case of (1) and (2) caused by or arising in connection with the gross negligence or willful misconduct of any employee of a Carrols Party in connection with Carrols’
performance under this Agreement, except to the extent that the Liabilities were caused directly or indirectly by acts or omissions of a Fiesta Party. 
 (c) IN NO EVENT SHALL ANY PARTY BE LIABLE TO ANY OTHER PARTY FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, COLLATERAL, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF
LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF ANY SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT EITHER PARTY’S
INDEMNIFICATION OBLIGATIONS FOR LIABILITIES WITH RESPECT TO THIRD PARTY CLAIMS, AS SET FORTH IN ARTICLE IX. 
 9.3. Indemnification
Procedures. Indemnification of any claim hereunder shall be governed by the definitions and procedures set forth in Sections 3.7 and 3.8 of the Distribution Agreement. Payment shall be made in accordance with the provision of Article
III of the Distribution Agreement. 
 ARTICLE X 

GOVERNING LAW AND DISPUTE RESOLUTION 
 10.1. Governing Law. This Agreement and the legal relations between the parties 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 the application of the law of another jurisdiction. 
 10.2.
Dispute Resolution. 
 (a) The procedures for discussion and negotiation set forth in this Section
10.2 shall apply to all disputes, controversies or claims (whether arising in contract, tort or otherwise) (each, a “Dispute”) that may arise out of or relate to, or arise under or in connection with this Agreement or the
transactions contemplated hereby. 

  

 (b) It is the intent of the Parties to use their respective reasonable best efforts to
resolve expeditiously any Dispute between them with respect to the matters covered hereby that may arise from time to time on a mutually acceptable negotiated basis. In furtherance of the foregoing, if a Dispute arises, the each Party’s
Representative shall consider the Dispute for up to seven (7) Business Days following receipt of a prior written notice from a Party specifying the nature of the Dispute, during which time each Party’s Representative shall meet in person
at least once, and attempt to resolve the Dispute. 
 (c) If the Dispute is not resolved by the end of the seven
(7) Business Day period or if the Parties’ Representatives agree that the Dispute cannot be resolved by them, either Party may deliver a prior written notice (an “Escalation Notice”) demanding an in-person meeting
involving appropriate representatives of the Parties at a senior level of management of the Parties (or if the Parties agree, of the appropriate strategic business unit or division within such entity) (collectively, “Senior
Executives”). Thereupon, each of the Parties’ Representatives shall promptly prepare a memorandum stating (i) the issues in Dispute and each Party’s position thereon, (ii) a summary of the evidence and arguments
supporting each Party’s positions (attaching all relevant documents), (iii) a summary of the negotiations that have taken place to date, and (iv) the name and title of the Senior Executive who shall represent each Party. Each
Party’s Representative shall each deliver such memorandum to its Senior Executive promptly upon receipt of such memorandum from the other Party’s Representative. The Senior Executives shall meet for negotiations (which may be held
telephonically) at a mutually agreed time and place within ten (10) days of the Escalation Notice, and thereafter as often as the Senior Executives deem reasonably necessary to resolve the Dispute. 

(d) In the event that the Parties, after complying with the provisions set forth in Sections
10.2(a) and 10.2(b), are unable to resolve a Dispute that arises out of or relates to, arises under or in connection with this Agreement or the transactions contemplated hereby, the Parties shall resolve such Dispute in
accordance with the provisions set forth in Section 5.3 of the Distribution Agreement relating to arbitration (but not the 90 day period specified therein). 
 ARTICLE XI 
 MISCELLANEOUS 

11.1. Amendments. No additional Exhibits or schedules, modifications to existing Exhibits or schedules, or amendments to this Agreement
shall be effective unless and until executed by the Representatives of each of Fiesta and Carrols. 
 11.2. Notices. Unless
expressly provided herein, all notices, claims, certificates, requests, demands and other communications hereunder shall be in writing and shall be deemed to be duly given (i) when personally delivered or (ii) if mailed by registered or
certified mail, postage prepaid, return receipt requested, on the date the return receipt is executed or the letter is refused by the addressee or its agent or (iii) if sent by overnight courier which delivers only upon the signed receipt of
the addressee, on the date the receipt acknowledgment is executed or refused by the addressee or its agent or (iv) if sent by 

  

 
facsimile or electronic mail, on the date confirmation of transmission is received (provided that a copy of any notice delivered pursuant to this clause (iv) shall also be sent pursuant to
clause (i), (ii) or (iii)), to the party at the address of its principal executive office as set forth below or to such other address or facsimile number for a party as it shall have specified by like notice: 

If to Fiesta: 
 Fiesta Restaurant Group, Inc.

 7300 North Kendall Drive, 8th Floor 

Miami, Florida 33156 
 Attention: Tim Taft

 Telephone: (305) 670-7696 

Facsimile: (305) 670-6403 
 Email:
  ttaft@pollotropical.com 
 with a copy to: 
 Fiesta Restaurant Group, Inc. 
 7300 North Kendall Drive, 8th Floor 

Miami, Florida 33156 
 Attention: General Counsel

 Telephone: (305) 670-7696 

Facsimile: (305) 670-6403 
 Email:
jzirkman@frgi.com 
 If to Carrols: 

Carrols Restaurant Group, Inc. 
 968 James
Street 
 Syracuse, New York 13203 

Attn: Daniel T. Accordino 
 Telephone: (315)
424-0513 
 Facsimile: (315) 475-9616 

Email:   daccordino@carrols.com 
 with
a copy to: 
 Carrols Restaurant Group, Inc. 
 968 James Street 
 Syracuse, New York 13203 

Attention: General Counsel 
 Telephone:
(315) 424-0513 
 Facsimile: (315) 475-9616 
 Email: wmyers@carrols.com 
 11.3. Waiver. 

(a) Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the Party or the Parties
entitled to the benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this Agreement if, as to any Party, it is in writing signed by the Representative of such Party. 

(b) Waiver by any Party of any default by the other Party of any provision of this Agreement shall not be construed to be a waiver by the
waiving party of any subsequent or other default, nor shall it in any way affect the validity of this Agreement or any Party or prejudice the rights of the other Party thereafter to enforce each such provision. No failure or delay on the part of
either 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 the Exhibits and schedules attached hereto are cumulative to, and not exclusive of, any rights or remedies
otherwise available. 
 11.4. 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.; provided, however, that no Party may assign, delegate or transfer (by merger, operation of law or otherwise) its respective rights or delegate its respective obligations under this

  

 
Agreement without the express prior written consent of the other Party. Notwithstanding the foregoing, either Party may assign its rights and obligations under this Agreement to any Wholly-owned
Subsidiary; provided, however, that each Party shall at all times remain liable for the performance of its obligations under this Agreement by any such Wholly-owned Subsidiary. Any attempted assignment or delegation in violation of
this Section 11.4 shall be void. 
 11.5. Third Parties. Except for the indemnification rights under this Agreement of
any Party in their respective capacities as such, this Agreement is solely for the benefit of the Parties hereto and their respective Subsidiaries and is not intended to confer upon any other Person except the Parties hereto and their respective
Subsidiaries any rights or remedies hereunder. 
 11.6. Severability. If any term or other provision of this Agreement or the
Exhibits and schedules attached 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. 
 11.7. Entire Agreement. This Agreement, the Distribution Agreement and the Exhibits and schedules
referenced or attached hereto and thereto, constitute the entire agreement between the Parties with respect to the subject matter hereof and shall supersede all prior written and oral and all contemporaneous oral agreements and understandings with
respect to the subject matter hereof. 
 11.8. DISCLAIMER OF REPRESENTATIONS AND WARRANTIES. EXCEPT FOR THE REPRESENTATIONS,
WARRANTIES AND COVENANTS EXPRESSLY MADE IN THIS AGREEMENT, THE PARTIES HAVE NOT MADE AND DO NOT HEREBY MAKE ANY EXPRESS OR IMPLIED REPRESENTATIONS, WARRANTIES OR COVENANTS, STATUTORY OR OTHERWISE, OF ANY NATURE, INCLUDING WITH RESPECT TO THE
WARRANTIES OF MERCHANTABILITY, QUALITY, QUANTITY, SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR THE RESULTS OBTAINED OF THE CONTINUING BUSINESS. ALL OTHER REPRESENTATIONS, WARRANTIES, AND COVENANTS, EXPRESS OR IMPLIED, STATUTORY, COMMON LAW
OR OTHERWISE, OF ANY NATURE, INCLUDING WITH RESPECT TO THE WARRANTIES OF MERCHANTABILITY, QUALITY, QUANTITY, SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR THE RESULTS OBTAINED OF THE CONTINUING BUSINESS ARE HEREBY DISCLAIMED BY THE PARTIES.

  

 11.9. Construction. This Agreement shall be construed as if jointly drafted by Fiesta and
Carrols and no rule of construction or strict interpretation shall be applied against either 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. 
 11.10. Interpretation. The headings contained in this Agreement and in any Exhibit hereto are for reference purposes only and shall not affect in any way the meaning or interpretation of
this Agreement. Any capitalized term used in any Exhibit, but not otherwise defined therein, shall have the meaning assigned to such term in this Agreement. When a reference is made in this Agreement to an Article, Section or Schedule, such
reference shall be to an Article or a Section of, or a Schedule to, this Agreement unless otherwise indicated. The word “including” and words of similar import when used in this Agreement will mean “including, without
limitation,” unless otherwise specified. 
 11.11. Counterparts. This Agreement may be executed in one or more counterparts,
each of which when so executed and delivered or transmitted by facsimile, e-mail or other electronic means, shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. A facsimile or electronic
signature is deemed an original signature for all purposes under this Agreement. 
 [Signature Page to Follow] 

  

 IN WITNESS WHEREOF, the Parties have signed this Agreement on the date first set forth
above. 
  

			
	FIESTA RESTAURANT GROUP, INC.
		
	By:	 	 
		 	Name:
		 	Title:

  

			
	CARROLS RESTAURANT GROUP, INC.
		
	By:	 	 
		 	Name:
		 	Title:

  

			
	CARROLS CORPORATION
		
	By:	 	 
		 	Name:
		 	Title:

 
			
	  
 AGREED to solely with respect to Section
9.2(b)

	
	CARROLS LLC
		
	By:	 	 
		 	Name:
		 	Title:

  

 EXHIBIT 1 
 FINANCIAL SERVICES 
 (To be provided by Carrols to the Fiesta
Group) 
  

	I.	SPECIFIC TRANSITION SERVICES 

Accounting Services 
  

	 	•	 	 Bookkeeping and maintenance of general ledger records for all individual restaurant and cost centers including related expense accrual accounting and
analysis 

  

	 	•	 	 Maintenance of all system hierarchies and tree structure in support of organizational rollups, sub consolidations and entity-level consolidations

  

	 	•	 	 Payroll processing, withholdings and related payroll tax filings. Payment administration including check processing, direct deposit and pay cards.

  

	 	•	 	 Accounts payable and cash disbursements for all store-related expenses, inventory purchases, capital expenditures and Fiesta corporate expenses.

  

	 	•	 	 Sales accounting and sales audit 

  

	 	•	 	 Inventory, cost of sales and rebate accounting including maintenance of standard costs and PeopleSoft recipe database. 

 

	 	•	 	 Fixed asset accounting including related interfaces with project accounting modules 

 

	 	•	 	 Other assets and intangibles accounting 

  

	 	•	 	 Lease accounting including GAAP compliance review with respect to all leasing transactions 

 

	 	•	 	 Insurance accounting and reserve analysis 

  

	 	•	 	 Maintenance of PeopleSoft and other underlying sub-systems to support the above activities including maintaining vendor related files, recipe files,
general ledger structure, employee record maintenance, fixed asset records (book and tax) and landlord rent records. 

Treasury Services 
  

	 	•	 	 Administration of bank and depository accounts 

  

	 	•	 	 Cash management including daily cash sweeps and cash consolidation for all restaurant-level cash accounts 

 

	 	•	 	 Cash over/short follow-up and reporting 

  

	 	•	 	 Bank reconciliation for all Fiesta restaurant and corporate bank accounts 

 

	 	•	 	 Execution of wire transfers and ACH payments 

  

	 	•	 	 Reconciliation of credit card sales transactions and related receivables 

 

	 	•	 	 Compliance with escheatment regulations 

  

	 	•	 	 Cash balance forecasting 

  

	 	•	 	 Management and oversight of armored car services including deposit reconciliation 

  

 Tax Accounting 
  

	 	•	 	 General tax accounting advice and consultation in the areas of federal and state tax planning 

 

	 	•	 	 Tax compliance including Federal and state income tax filings 

 

	 	•	 	 Management of open tax audits 

  

	 	•	 	 Sales and use tax filings 

  

	 	•	 	 Personal property tax filings 

  

	 	•	 	 Handling of all federal, state and local sales tax and income tax audits 

 

	 	•	 	 Tax accounting required for external financial reporting 

 

	 	•	 	 Compliance with estimated tax payment requirements 

 Internal Audit 
  

	 	•	 	 SOX 404 audit work and coordination with independent auditors in support of required Section 404 executive officer certifications for Fiesta

  

	 	•	 	 Monitor Fiesta restaurant audits and other audit analysis in connection with SOX 404 work in order to facilitate required reporting to the Audit
Committee 

  

	 	•	 	 Special audit situations arising from time to time 

  

	 	•	 	 Support for external auditor work 

 Financial Reporting, Analysis and Other 
  

	 	•	 	 Maintain internal management reporting including all store-related P&L’s, cost center reports, balance sheets, entity rollups and
consolidations. 

  

	 	•	 	 Preparation of consolidated and separate entity financial statements as required for SEC and lenders 

 

	 	•	 	 Preparation and filing of periodic SEC compliance including EDGAR and XBRL requirements (10Q, 10K, 8K, etc.) 

 

	 	•	 	 Coordination with outside auditors in connection with annual and quarterly audit work. 

 

	 	•	 	 Quarterly and annual lender compliance activities including supporting analysis and lender reporting 

 

	 	•	 	 Investor and Bondholder relations 

  

	 	•	 	 Banker relationship management 

  

	II.	SERVICE FEES 

  

					
	 Description
	  	Charge	 
	 Payroll
	  	$	363,000	  
	 Accounts payable
	  	 	348,000	  
	 Sales and inventory accounting
	  	 	270,000	  
	 Fixed asset accounting
	  	 	155,000	  
	 General accounting and related
	  	 	386,000	  
	 Treasury management
	  	 	202,000	  
	 Tax accounting
	  	 	171,000	  
	 Financial reporting and related
	  	 	227,000	  
	 Budgeting systems support
	  	 	35,000	  
	 Internal audit
	  	 	285,000	  
		  	  
	  
	 
	 Total Financial Services
	  	 	2,442,000	  

  

 Excluded Costs: 
  

	 	•	 	 Certain costs will be separately billable to Fiesta including, but not limited to, professional fees (such as outside audit and tax services), Fiesta
specific banking fees, postage and shipping. 

  

	 	•	 	 Efforts in support of SEC or other filings not of a compliance nature (i.e., registration statements, offering documents in conjunction with financings
or equity capitalizations, etc.) will be separately billable as may be agreed to between the Parties. 

  

	 	•	 	 Costs or efforts required in conjunction with transition of services to Fiesta including, but not limited to, development of transition plans, database
or data conversion, documentation, and training. 

  

 EXHIBIT 2 
 INFORMATION TECHNOLOGY SERVICES 
 (To be provided by Carrols to the Fiesta
Group) 
  

	I.	SPECIFIC TRANSITION SERVICES 

  

			
	 Restaurant Systems Services
	  	
		
	Help Desk	  	7 X 24 X 363 help desk to assist restaurants; reports on incidents and access to ITSM system
		
	Depot	  	Repair and maintenance of POS, PC, OCU, SOS timer, electronic payment terminals, KVS
		
	POS maintenance	  	Price and product configuration & maintenance; POS application configuration & maintenance
		
	 ERP and Corporate Systems
	  	
		
	General ledger	  	PeopleSoft G/L
		
	Accounts payable	  	PeopleSoft AP
		
	Asset management	  	Depreciation calculation, AP interface
		
	Purchasing	  	Used by Construction with Project management & costing apps
		
	Project costing	  	Construction, repair & maintenance; each brand has unique work breakdown structure
		
	Manufacturing & order management	  	Houses items, menu procies, recipes, theoretical food cost
		
	Restaurant accounting - Sales Audit	  	Store data capture & validation; operational reporting, gift & credit card reconciliation
		
	Restaurant accounting - Inventory	  	Inventory, transfers, ending inventory accruals
		
	Restaurant accounting - Finance	  	Cash management, sales tax reporting, performance reporting, standard costs
		
	Human capital management	  	PeopleSoft Human Resources
		
	Benefits	  	Vacation calculation, provider interfaces
		
	Payroll	  	Weekly payroll, executive payroll, tax interfaces, direct deposit
		
	Labor management	  	Labor violations, allowed hours, labor rate extracts, turnover reporting
		
	WebCEMS	  	Store -level HR actions, PAF approval, time corrections & payroll approval
		
	Financial planning	  	Used for budget preparation and forecasting
		
	Electronic journal	  	POS transaction details for analysis and loss prevention
		
	Data warehouse	  	Audited sales, cost of sales, comp sales, product mix, daily sales, weekly labor, interval sales
		
	Lease management	  	Lease management, AP interface, custom rents, custom property taxes
		
	Cash management	  	Bank and extract reporting
		
	Workers comp & general liability	  	Capture workers comp and general liability claims
		
	Cash Link reconciliation	  	Reconcile store reported deposits against Cash Link and bank deposits
		
	Intranet portal	  	Team sites, HR PAF approval, HR audits, DS audits; operational real estate & construction reports
		
	 Technical Infrastructure
	  	
		
	Email	  	Microsoft Exchange server, Outlook client, OWA web interface, spam filtering
		
	Telecommunications	  	NEC PBX, telephone billing, cellular billing, voice mail
		
	Video conferencing	  	Tanberg video conferencing equipment in Syracuse, Miami and San Antonio

  

			
	Security administration	  	Network ID’s and passwords, RSA security devices, intrusion detection
		
	PCI certification	  	Quarterly scans and intrusion testing, annual report of compliance
		
	Data communications	  	Routers, switches, circuits, firewalls to Miami, San Antonio & Syracuse
		
	Software maintenance	  	Annual maintenance for Oracle (PeopleSoft), Microsoft and other licenses applications
		
	Hardware maintenance	  	Annual maintenance for servers, storage and network devices
		
	Level 2 Help Desk support	  	Escalation from help desk for system and network issues
		
	Project Related Costs	  	Estimated labor costs to execute projects (blended rate applied to hours expended)
		
	Conceptualization	  	
		
	Specific Defined Projects	  	
		
	Discretionary maintenance	  	

  

			
	Restaurant Systems Related	  	All related costs billed directly to Fiesta
		
	Point-of-sale hardware	  	NCR 7402
		
	Point-of-sale software	  	XPIENT
		
	Kitchen video system	  	Monitors, controllers, bump bars
		
	Electronic payment terminals	  	Vivotech
		
	Order confirmation units	  	Texas Digital
		
	Digital signage	  	11Giraffes and Nextep
		
	Table management system	  	Long Range Systems
		
	Back-office software	  	IMS, Remacs, Microsoft Windows, Microsoft Office, email
		
	PC	  	Dell
		
	Printer / scanner / fax	  	Brother 7340, HP4315
		
	Data communications equipment	  	Router, switch, cabling
		
	Food cost controls	  	Series of reports attached to Restaurant Accounting systems
		
	Labor cost controls	  	Series of reports attached to Restaurant Accounting systems
		
	Network	  	Internet connection to stores, VPN connection to corporate office, LAN within the store
		
	WIFI	  	Wireless internet access for restaurant guests
		
	Muzak	  	In-store music
		
	On-line ordering	  	Ability for guests to order ahead via the internet, mobile application or by telephone
		
	eCRM	  	Distribute offers to guests via email, text and social media
		
	Loyalty	  	Track guest transactions and tailor offers to increases frequency of visits

  

	II.	SERVICE FEES 

  

					
	 Description
	  	Charge	 
	Help desk	  	$	434,000	  
	Depot maintenance	  	 	645,000	  
	 POS and inventory database maintenance including menu and price management
	  	 	211,000	  
	ERP and corporate applications systems	  	 	448,000	  
	Network management and technical infrastructure	  	 	1,202,000	  
	Applications maintenance and small projects	  	 	269,000	  
	Project related development (a)	  	 	395,000	  
		  	  
	  
	 
	Total Information Technology	  	 	3,604,000	  

  

	(a)	Project related activities will be tracked and this amount will be periodically adjusted to reflect actual project activities and related support attributable to
Fiesta. 

  

 Excluded Costs: 
  

	 	•	 	 Costs or efforts required in conjunction with transition of services to Fiesta including, but not limited to, development of transition plans, database
or data conversion, documentation, and training. 

  

 EXHIBIT 3 
 HUMAN RESOURCE/INSURANCE & RISK SERVICES 
 (To be provided by
Carrols to the Fiesta Group) 
  

	I.	SPECIFIC TRANSITION SERVICES 

  

	 	•	 	 Insurance and Risk Management 

 Oversight of broker selection, insurance contract bids, monitoring of insurers/underwriters, communications with brokers and underwriters, and oversee administration of insurance programs including
property, general liability, workers’ compensation, etal. 
  

	 	•	 	 Benefits Administration (Health and Benefit Plans) 

 

	 	•	 	 Maintenance and administration of employee benefit and welfare plans including medical, dental, vision, prescription drug, life insurance, disability,
flexible spending and EAP. Includes bill payments, national medical support orders and annual open enrollment. 

  

	 	•	 	 General advice and consultation in the areas of benefits consultant/broker selection, review of bids, selection and monitoring of vendors,
communications with consultants and vendors, claims management and reporting, health and benefit plan administration. 

  

	 	•	 	 Approval and administration of Family Medical Leave Act (FMLA). Administer Leave of Absence policy as it pertains to employee benefits. Preparation of
annual benefit statements. 

  

	 	•	 	 Maintenance and administration of 401(k) plan including advice and consultation in the areas of plan design, ERISA compliance, vendor management,
communication of plans, and associated auditing and compliance reporting. Provided transitional support to Fiesta Investment Committee. 

  

	 	•	 	 Compensation Arrangements Oversight and coordination of all employee compensation plans and arrangements, including, without limitation, salary
administration, bonus plans, equity plans and deferred compensation plans. Maintenance and administration of the monthly and annual vacation accrual processes. 

 

	 	•	 	 Human Resources 

  

	 	•	 	 Oversight of HR system maintenance including but not limited to Security, new store openings, closed Stores, Store District and Region Realignments,
plan hourly rates, reports, training and support for Fiesta system users. 

  

	 	•	 	 Management and administration of the Fiesta Hourly Team Member exit Interview system – Fiestacares.com 

 

	 	•	 	 Filing of required EEO-1 Annual Report 

  

	 	•	 	 Management and administration of Fiesta Intranet relating to HR, Benefits, and Risk Management 

 

	 	•	 	 Management and administration of the Fiesta Human Resources audit site 

 

	 	•	 	 Management and administration of the Fiesta EthicsPoint product 

  

	 	•	 	 Management and administration of the Fiesta Batrus Hollweg Quick Select Assessment System 

 

	 	•	 	 Oversight of the electronic job boards - Monster, CareerBuilder and Snag-A-Job 

 

	 	•	 	 Management and administration of the Dollars for Doers Program and Food Bank Matching Gift Programs 

 

	 	•	 	 Administration and management of the Air Travel and Car Rental Programs 

 

	 	•	 	 Administration of the Unemployment Insurance Program 

  

	 	•	 	 Management of WOTC and similar incentive programs and plans (both internally and vendors) 

 

	 	•	 	 Training 

  

	 	•	 	 Management and administration of the E-Learning website 

 

	 	•	 	 Provide support and training for the use of the E-Learning software product 

 

	 	•	 	 Create and maintain technical training of E-Learning modules 

 

	 	•	 	 For major rollouts (ie: POS, in-store applications, etc.) - provide the technical training process, plan and schedule rollout from a training
perspective, train the trainers and provide project support through completion 

  

	 	•	 	 Other Administration and management of FedEx account. Management and administration of wireless services including cellular phones, PDA’s
and computer aircards. 

  

	II.	SERVICE FEES 

  

					
	 Description
	  	Charge	 
	 Human resources
	  	$	86,000	  
	 Insurance and risk management
	  	 	77,000	  
	 Benefits administration
	  	 	134,000	  
	 Training
	  	 	244,000	  
		  	  
	  
	 
	 Total HR, Risk & Training
	  	 	541,000	  

 Excluded Costs: 
  

	 	•	 	 Costs or efforts required in conjunction with transition of services to Fiesta including, but not limited to, development of transition plans, database
or data conversion, documentation, and training. 

  

 EXHIBIT 4 
 LEGAL SERVICES 
 (To be provided by Carrols to the Fiesta Group)

  

	I.	SPECIFIC TRANSITION SERVICES 

  

	 	•	 	 Assistance as needed and requested by Fiesta in real estate matters and transactions, contract negotiations and contract management, franchising
matters, corporate governance. 

  

	II.	SERVICE FEES 

 Fee for these services
shall be based upon the following hourly rates: 
  

					
	 Service level
	  	Rate	 
	 General Counsel
	  	$	125/hr	  
	 Staff Atty
	  	$	100/hr	  
	 Paralegal/Admin
	  	$	50/hr	  

 LEGAL SERVICES 
 (To be provided by the Fiesta Group to Carrols) 
  

	I.	SPECIFIC TRANSITION SERVICE 

  

	 	•	 	 General legal advice and services in the areas of general corporate, corporate governance, securities law and compliance, employment and employee
benefits, litigation management, contract negotiations and employment matter management. 

  

	II.	SERVICE FEES 

 Fee for these services
shall be based upon the following hourly rates: 
  

					
	 Service level
	  	Rate	 
	 General Counsel
	  	$	175/hr	  
	 Associate Counsel
	  	$	125/hr	  
	 Paralegal/Admin
	  	$	50/hr	  

 Excluded Costs: 
  

	 	•	 	 Costs or efforts required in conjunction with transition of services to Fiesta including, but not limited to, development of transition plans, database
or data conversion, documentation, and training. 

  

 EXHIBIT 5 
 PROPERTY MANAGEMENT SERVICES 
 (To be provided by Carrols to the Fiesta
Group) 
  

	I.	SPECIFIC TRANSITION SERVICES 

  

	 	•	 	 Oversight of real estate development for new properties 

 

	 	•	 	 Property management 

  

	 	•	 	 Lease and property administration including maintenance of property management databases 

 

	II.	SERVICE FEES: $108,000Form of Fiesta Restaurant Group, Inc. 2012 Stock Incentive Plan

 Exhibit 10.5 
 FORM OF 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. 

  

	 	(d)	Notwithstanding anything to the contrary in this Section 9, within forty-five (45) days after the Distribution Date, (i) Jack A. Smith, the Chairman of
the board of directors and an Outside Director, shall be granted a Stock Award comprised of that number of shares of Stock having an aggregate Fair Market Value of $25,000, (ii) Stephen P. Elker, an Outside Director, shall be granted a Stock Award
comprised of that number of shares of Stock having an aggregate Fair Market Value of $100,000, (iii) Brian P. Friedman and Nicholas Daraviras, each an Outside Director, shall each be granted a Stock Award comprised of that number of shares of Stock
having an aggregate Fair Market Value of $100,000, provided that if either Mr. Friedman or Mr. Daraviras resigns as a director of the Company, any person nominated or otherwise designated by Jefferies Capital Partners IV L.P., Jefferies
Employee Partners IV LLC, JCP Partners IV LLC (collectively, the “JCP Group”) or their respective affiliates to the Company’s Board to replace Mr. Friedman, Mr. Daraviras or any other director of the Company designated and
nominated by the JCP Group or their affiliates, such person shall not receive a Stock Award pursuant to Section 9(b). 

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(a), Section 9(b), Section 9(d)(ii)
and Section 9(d)(iii) 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.
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) and Section 9(d)(i) shall become vested and nonforfeitable as to one-third 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-third of the Restricted Stock becoming vested and non-forfeitable on each of the second and third
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. 

  
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	 	(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. 

  
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	 	(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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