Document:

Exhibit 10.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GWG HOLDINGS, INC.

2013
STOCK INCENTIVE PLAN

 

(AMENDED
AS OF MARCH 10, 2017

AND
APPROVED BY STOCKHOLDERS ON may 5, 2017)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

GWG
HOLDINGS, INC.

 

2013
STOCK INCENTIVE PLAN

 

(including
2017 and 2015 amendments)

 

1.            Purpose. The purpose of the 2013 Stock Incentive Plan (the “Plan”) of GWG Holdings, Inc. (the “Company”)
is to increase stockholder value and to advance the interests of the Company by furnishing a variety of economic incentives (“Incentives”)
designed to attract, retain and motivate employees, certain key consultants and directors of the Company. Incentives may consist
of opportunities to purchase or receive shares of common stock, $0.001 par value per share, of the Company (“Common Stock”)
or other incentive awards on terms determined under this Plan.

 

2.            Administration.

 

2.1.          Administration by Committee. The Plan shall be administered by the Board of Directors of the Company (the “Board
of Directors”) or by a stock option or compensation committee (the “Committee”) of the Board of Directors.
The Committee shall consist of not less than two directors of the Company and shall be appointed from time to time by the Board
of Directors. During any time period during which the Company has a class of equity securities registered under Section 12 of the
Securities Exchange Act of 1934 (including the regulations thereunder, the “1934 Act”), each member of the Committee
shall be (a) a “non-employee director” within the meaning of Rule 16b-3 of the 1934 Act (a “Non-Employee Director”),
and (b) an “outside director” within the meaning of Section 162(m) under the Internal Revenue Code of 1986 (the “Code”)
and the regulations promulgated thereunder. The Committee shall have complete authority to award Incentives under the Plan, to
interpret the Plan, and to make any other determination which it believes necessary and advisable for the proper administration
of the Plan. The Committee’s decisions and matters relating to the Plan shall be final and conclusive on the Company and
its participants. If at any time there is no stock option or compensation committee, the term “Committee,” as used
in the Plan, shall refer to the Board of Directors.

 

2.2.          Delegation of Authority. The Company’s Chief Executive Officer may, on a discretionary basis and without Committee
review or approval, grant Incentives to new employees or consultants or other independent contractors of the Company who are not
officers of the Company. Such discretionary grants shall not exceed, in the aggregate, Incentives for more than 400,000
shares in any fiscal year. Subject to the foregoing limitations, the Chief Executive Officer shall determine from time to
time (a) the new employees to whom grants will be made, (b) the number of shares to be granted, and (c) the terms and provisions
of each option (which need not be identical). The Chief Executive Officer shall report each stock option granted pursuant to this
Section 2.2 at the Committee’s first meeting following the date of such grant.

 

3.            Eligible Participants. Officers of the Company, employees of the Company or its subsidiaries, members of the Board of Directors,
and consultants or other independent contractors who provide services to the Company or its subsidiaries shall be eligible to receive
Incentives under the Plan when designated by the Committee. Participants may be designated individually or by groups or categories
(for example, by pay grade) as the Committee deems appropriate. Participation by officers of the Company or its subsidiaries and
any performance objectives relating to such officers must be approved by the Committee. Participation by others and any performance
objectives relating to others may be approved by groups or categories (for example, by pay grade) and authority to designate participants
who are not officers and to set or modify such targets may be delegated.

 

     

     

    

 

4.            Types of Incentives. Incentives under the Plan may be granted in any one or a combination of the following forms: (a) incentive
stock options and non-statutory stock options; (b) stock appreciation rights (“SARs”); (c) stock awards; (d)
restricted stock; (e) restricted stock units; and (f) performance shares. Subject to the specific limitations provided in
this Plan, payment of Incentives may be in the form of cash, Common Stock or combinations thereof as the Committee shall determine,
and with such other restrictions as it may impose.

 

5.            Shares Subject to the Plan.

 

5.1.          Number of Shares. Subject to adjustment as provided in Section 9.6, the number of shares of Common Stock issuable under
the Plan shall not exceed 3,000,000 shares of Common Stock. Shares of Common Stock that are issued under the Plan
or are subject to outstanding Incentives will be applied to reduce the maximum number of shares of Common Stock remaining available
for issuance under the Plan. Any shares of Common Stock subject to SARs granted under this Plan shall be counted in full against
the above-indicated share limit, regardless of the number of shares of Common Stock actually issued upon the exercise of such SARs.

 

5.2.          Cancellation. If any Incentive granted hereunder (including without limitation any stock option, SAR or restricted stock
unit) expires or is terminated or canceled unexercised as to any shares of Common Stock, such shares may again be issued under
the Plan either pursuant to stock options, SARs, restricted stock units, or otherwise. If shares of Common Stock are issued pursuant
to a stock award, as restricted stock, or as performance shares) and thereafter are forfeited or reacquired by the Company pursuant
to rights reserved upon issuance thereof, such forfeited and reacquired shares may again be issued under the Plan, either pursuant
to a stock award, as restricted stock, as performance shares, or otherwise. The Committee may also determine to cancel, and agree
to the cancellation of, Incentives in order to make a participant eligible for the grant of an Incentive at a lower exercise price
than the Incentive to be canceled.

 

5.3.          Type of Common Stock. Common Stock issued under the Plan in connection with Incentives may be authorized and unissued shares
or, if so designated by the Committee, may be treasury stock.

 

5.4.          Limitation on Certain Grants. No person shall receive grants of stock options and SARs under the Plan that exceed, in the
aggregate, 400,000 shares of Common Stock during any one fiscal year of the Company.

 

 

 

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6.            Stock Options. A stock option is a right to purchase shares of Common Stock from the Company. Each stock option granted
by the Committee under this Plan shall be subject to the following terms and conditions:

 

6.1.          Price. The option price per share shall be determined by the Committee, subject to adjustment under Section 9.6.

 

6.2.          Number. The number of shares of Common Stock subject to a stock option shall be determined by the Committee, subject to
adjustment as provided in Section 9.6. The number of shares of Common Stock subject to a stock option shall be reduced in the same
proportion that the holder thereof exercises an SAR if any SAR is granted in conjunction with or related to the stock option.

 

6.3.          Duration and Time for Exercise. Subject to earlier termination as provided in Section 9.3, the term of each stock option
shall be determined by the Committee but shall not exceed ten years and one day from the Grant Date, as that term is defined in
Section 9.15 below. Each stock option shall become exercisable at such time or times during its term as shall be determined by
the Committee at the time of grant. The Committee may accelerate the exercisability of any stock option. Subject to the first sentence
of this paragraph, the Committee may extend the term of any stock option to the extent provided in Section 9.4.

 

6.4.          Manner of Exercise. A stock option may be exercised, in whole or in part, by giving written notice to the Company, specifying
the number of shares of Common Stock to be purchased and accompanied by the full purchase price for such shares. The option price
shall be payable: (a) in United States dollars upon exercise of the option and may be paid by cash, uncertified or certified check
or bank draft; (b) unless otherwise provided in the option agreement, by delivery of shares of Common Stock in payment of all or
any part of the option price, which shares shall be valued for this purpose at the Fair Market Value on the date such option is
exercised; or (c) unless otherwise provided in the option agreement, by instructing the Company to withhold from the shares of
Common Stock issuable upon exercise of the stock option shares of Common Stock in payment of all or any part of the exercise price
and/or any related withholding tax obligations consistent with Section 9.8, which shares shall be valued for this purpose at the
Fair Market Value or in such other manner as may be authorized from time to time by the Committee. Prior to the issuance of shares
of Common Stock upon the exercise of a stock option, a participant shall have no rights as a stockholder.

 

6.5.          Incentive Stock Options. Notwithstanding anything in the Plan to the contrary, the following additional provisions shall
apply to the grant of stock options which are intended to qualify as “Incentive Stock Options,” as such term
is defined in Code Section 422:

 

(a)           The aggregate Fair Market Value (determined as of the time the option is granted) of the shares of Common Stock with respect to
which Incentive Stock Options are exercisable for the first time by any participant during any calendar year (under all of the
Company’s plans) shall not exceed $100,000. The determination will be made by taking Incentive Stock Options into account
in the order in which they were granted. If such excess only applies to a portion of an Incentive Stock Option, the Committee,
in its discretion, will designate which shares will be treated as shares to be acquired upon exercise of an Incentive Stock Option.

 

(b)           Any option agreement for an Incentive Stock Option under the Plan shall contain such other provisions as the Committee shall deem
advisable, but shall in all events be consistent with and contain all provisions required in order to qualify the options as Incentive
Stock Options.

 

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(c)           All Incentive Stock Options must be granted within ten years from the earlier of the date on which this Plan was adopted by Board
of Directors or the date this Plan was approved by the stockholders.

 

(d)           Unless sooner exercised, all Incentive Stock Options shall expire no later than ten years after the Grant Date.

 

(e)           The option price for Incentive Stock Options shall be not less than the Fair Market Value of the Common Stock subject to the option
on the Grant Date.

 

(f)            If Incentive Stock Options are granted to any participant who, at the time such option is granted, would own (within the meaning
of Code Section 422) stock possessing more than 10% of the total combined voting power of all classes of stock of the employer
corporation or of its parent or subsidiary corporation, (i) the option price for such Incentive Stock Options shall be not less
than 110% of the Fair Market Value of the Common Stock subject to the option on the Grant Date and (ii) such Incentive Stock Options
shall expire no later than five years after the Grant Date.

 

7.            Stock Appreciation Rights. An SAR is a right to receive, without payment to the Company, a number of shares of Common Stock,
the amount of which is determined pursuant to the formula set forth in Section 7.5. An SAR may be granted (a) with respect to any
stock option granted under this Plan, either concurrently with the grant of such stock option or at such later time as determined
by the Committee (as to all or any portion of the shares of Common Stock subject to the stock option), or (b) alone, without reference
to any related stock option. Each SAR granted by the Committee under this Plan shall be subject to the following terms and conditions:

 

7.1.          Price. The exercise price per share of any SAR granted without reference to a stock option shall be determined by the Committee,
subject to adjustment under Section 9.6. Notwithstanding the foregoing sentence, except as permitted under Section 9.16, the exercise
price per share shall not be less than the Fair Market Value of the Common Stock on the Grant Date unless the SAR satisfies the
provisions of Code Section 409A.

 

7.2.          Number. Each SAR granted to any participant shall relate to such number of shares of Common Stock as shall be determined
by the Committee, subject to adjustment as provided in Section 9.6. In the case of an SAR granted with respect to a stock option,
the number of shares of Common Stock to which the SAR relates shall be reduced in the same proportion that the holder of the option
exercises the related stock option. Notwithstanding the foregoing, the limitation on grants under Section 5.4 shall apply to grants
of SARs under the Plan

 

7.3.          Duration. Subject to earlier termination as provided in Section 9.3, the term of each SAR shall be determined by the Committee
but shall not exceed ten years and one day from the Grant Date. Unless otherwise provided by the Committee, each SAR shall become
exercisable at such time or times, to such extent and upon such conditions as the stock option, if any, to which it relates is
exercisable. The Committee may in its discretion accelerate the exercisability of any SAR. Subject to the first sentence of this
paragraph, the Committee may extend the term of any SAR to the extent provided in Section 9.4.

 

7.4.          Exercise. An SAR may be exercised, in whole or in part, by giving written notice to the Company, specifying the number of
SARs which the holder wishes to exercise. Upon receipt of such written notice, the Company shall, within 90 days thereafter, deliver
to the exercising holder certificates for the shares of Common Stock or cash or both, as determined by the Committee, to which
the holder is entitled pursuant to Section 7.5.

 

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7.5.          Issuance of Shares Upon Exercise. The number of shares of Common Stock which shall be issuable upon the exercise of an SAR
shall be determined by dividing:

 

(a)           the number of shares of Common Stock as to which the SAR is exercised multiplied by the amount of the appreciation in such shares
(for this purpose, the “appreciation” shall be the amount by which the Fair Market Value of the shares of Common Stock
subject to the SAR on the exercise date exceeds (1) in the case of an SAR related to a stock option, the purchase price of the
shares of Common Stock under the stock option or (2) in the case of an SAR granted alone, without reference to a related stock
option, an amount which shall be determined by the Committee at the time of grant, subject to adjustment under Section 9.6); by

 

(b)           the Fair Market Value of a share of Common Stock on the exercise date.

 

No fractional
shares of Common Stock shall be issued upon the exercise of an SAR; instead, the holder of the SAR shall be entitled to receive
a cash adjustment equal to the same fraction of the Fair Market Value of a share of Common Stock on the exercise date or to purchase
the portion necessary to make a whole share at its Fair Market Value on the date of exercise.

 

8.            Stock Awards and Restricted Stock. A stock award consists of the transfer by the Company to a participant of shares of Common
Stock, without other payment therefor, as additional compensation for services to the Company. A share of restricted stock consists
of shares of Common Stock which are sold or transferred by the Company to a participant at a price, if any, determined by the Committee
and subject to restrictions on their sale or other transfer by the participant. The transfer of Common Stock pursuant to stock
awards and the transfer and sale of restricted stock shall be subject to the following terms and conditions:

 

8.1.         Number
of Shares. The number of shares to be transferred or sold by the Company to a participant pursuant to a stock award or as
restricted stock shall be determined by the Committee.

 

8.2.         Sale Price. The Committee shall determine the price, if any, at which shares of restricted stock shall be sold to a participant,
which may vary from time to time and among participants and which may be below the Fair Market Value of such shares of Common Stock
at the date of sale.

 

8.3.         Restrictions. All shares of restricted stock transferred or sold by the Company hereunder shall be subject to such restrictions
as the Committee may determine, including, without limitation any or all of the following:

 

(a)           a prohibition against the sale, transfer, pledge or other encumbrance of the shares of restricted stock, such prohibition to lapse
at such time or times as the Committee shall determine (whether in annual or more frequent installments, at the time of the death,
disability or retirement of the holder of such shares, or otherwise);

 

(b)          a requirement that the holder of shares of restricted stock forfeit, or (in the case of shares sold to a participant) re-sell back
to the Company at his or her cost, all or a part of such shares in the event of termination of his or her employment or consulting
engagement during any period in which such shares are subject to restrictions; and/or

 

(c)           such other conditions or restrictions as the Committee may deem advisable.

 

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8.4.          Restrictions. In order to enforce the restrictions imposed by the Committee pursuant to Section 8.3, the participant receiving
restricted stock shall enter into an agreement with the Company setting forth the conditions of the grant. Shares of restricted
stock shall be registered in the name of the participant and deposited, together with a stock power endorsed in blank, with the
Company. Each such certificate shall bear a legend that refers to the Plan and the restrictions imposed under the applicable agreement.
The Committee may provide that no certificates representing restricted stock be issued until the restriction period is completed.

 

8.5.          End of Restrictions. Subject to Section 9.5, at the end of any time period during which the shares of restricted stock are
subject to forfeiture and restrictions on transfer, such shares will be delivered free of all restrictions to the participant or
to the participant’s legal representative, beneficiary or heir.

 

8.6.          Rights of Holders of Restricted Stock. Subject to the terms and conditions of the Plan and subject further to the terms
and conditions of each written agreement evidencing an Incentive, each participant receiving restricted stock shall have all the
rights of a stockholder with respect to shares of stock during any period in which such shares are subject to forfeiture and restrictions
on transfer, including without limitation, the right to vote such shares.

 

9.            General Provisions.

 

9.1.          Effective Date. The Plan will become effective upon the date of approval by the Board of Directors (the “Effective
Date”).

 

9.2.          Duration. The Plan shall remain in effect until all Incentives granted under the Plan have either been satisfied by the
issuance of shares of Common Stock or the payment of cash or been terminated under the terms of the Plan and all restrictions imposed
on shares of Common Stock in connection with their issuance under the Plan have lapsed. No Incentives may be granted under the
Plan after the tenth anniversary of the Effective Date of the Plan.

 

9.3.          Non-Transferability of Incentives. No stock option, SAR, restricted stock or stock award may be transferred, pledged or
assigned by the holder thereof (except, in the event of the holder’s death, by will or the laws of descent and distribution
to the limited extent provided in the Plan or the Incentive, or pursuant to a qualified domestic relations order as defined by
the Code or Title I of the Employee Retirement Income Security Act, or the rules thereunder), and the Company shall not be required
to recognize any attempted assignment of such rights by any participant. Notwithstanding the preceding sentence, stock options
may be transferred by the holder thereof to the holder’s spouse, children, grandchildren or parents (collectively, the “Family
Members”), to trusts for the benefit of Family Members, to partnerships or limited liability companies in which Family
Members are the only partners or shareholders, or to entities exempt from federal income taxation pursuant to Code Section 501(c)(3).
During a participant’s lifetime, a stock option may be exercised only by him or her, by his or her guardian or legal representative
or by the transferees permitted by this Section 9.3.

 

9.4.          Effect of Termination or Death. If a participant ceases to be an employee of or consultant to the Company for any reason,
including death or disability, any Incentives may be exercised or shall expire at such times as may be set forth in the agreement,
if any, applicable to the Incentive, or otherwise as determined by the Committee; provided, however, the term of an Incentive may
not be extended beyond the term originally prescribed when the Incentive was granted, unless the Incentive satisfies (or is amended
to satisfy) the requirements of Code Section 409A; and provided further that the term of an Incentive may not be extended beyond
the maximum term permitted under this Plan.

 

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9.5.          Restrictions under Securities Laws. Notwithstanding anything in this Plan to the contrary: (a) the Company may, if it shall
determine it necessary or desirable for any reason, at the time of award of any Incentive or the issuance of any shares of Common
Stock pursuant to any Incentive, require the recipient of the Incentive, as a condition to the receipt thereof or to the receipt
of shares of Common Stock issued pursuant thereto, to deliver to the Company a written representation of present intention to acquire
the Incentive or the shares of Common Stock issued pursuant thereto for his or her own account for investment and not for distribution;
and (b) if at any time the Company further determines, in its sole discretion, that the listing, registration or qualification
(or any updating of any such document) of any Incentive or the shares of Common Stock issuable pursuant thereto is necessary on
any securities exchange or under any federal or state securities or blue sky law, or that the consent or approval of any governmental
regulatory body is necessary or desirable as a condition of, or in connection with the award of any Incentive, the issuance of
shares of Common Stock pursuant thereto, or the removal of any restrictions imposed on such shares, such Incentive shall not be
awarded or such shares of Common Stock shall not be issued or such restrictions shall not be removed, as the case may be, in whole
or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of
any conditions not acceptable to the Company.

 

9.6.          Adjustment. In the event of any recapitalization, stock dividend, stock split, combination of shares or other change in
the Common Stock, the number of shares of Common Stock then subject to the Plan, including shares subject to outstanding Incentives,
and the other numbers of shares of Common Stock provided in the Plan, shall be adjusted in proportion to the change in outstanding
shares of Common Stock. In the event of any such adjustments, the purchase price of any option, the performance objectives of any
Incentive, and the shares of Common Stock issuable pursuant to any Incentive shall be adjusted as and to the extent appropriate,
in the discretion of the Committee, to provide participants with the same relative rights before and after such adjustment.

 

9.7.          Incentive Plans and Agreements. Except in the case of stock awards, the terms of each Incentive shall be stated in a plan
or agreement approved by the Committee. The Committee may also determine to enter into agreements with holders of options to reclassify
or convert certain outstanding options, within the terms of the Plan, as Incentive Stock Options or as non-statutory stock options
and in order to eliminate SARs with respect to all or part of such options and any other previously issued options. The Committee
shall communicate the key terms of each award to the participant promptly after the Committee approves the grant of such award.

 

9.8.          Withholding.

 

(a)           The Company shall have the right to withhold from any payments made under the Plan or to collect as a condition of payment, any
taxes required by law to be withheld. At any time when a participant is required to pay to the Company an amount required to be
withheld under applicable income tax laws in connection with a distribution of Common Stock or upon exercise of an option or SAR
or upon vesting of restricted stock, the participant may satisfy this obligation in whole or in part by electing (the “Election”)
to have the Company withhold, from the distribution or from such shares of restricted stock, shares of Common Stock having a value
up to the minimum amount of withholding taxes required to be collected on the transaction. The value of the shares to be withheld
shall be based on the Fair Market Value of the Common Stock on the date that the amount of tax to be withheld shall be determined
(“Tax Date”).

 

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(b)           Each Election must be made before the Tax Date. The Committee may disapprove of any Election, may suspend or terminate the right
to make Elections, or may provide with respect to any Incentive that the right to make Elections shall not apply to such Incentive.
An Election is irrevocable.

 

9.9.          No Continued Employment, Engagement or Right to Corporate Assets. No participant under the Plan shall have any right, because
of his or her participation, to continue in the employ of the Company for any period of time or to any right to continue his or
her present or any other rate of compensation. Nothing contained in the Plan shall be construed as giving an employee, a consultant,
such persons’ beneficiaries or any other person any equity or interests of any kind in the assets of the Company or creating
a trust of any kind or a fiduciary relationship of any kind between the Company and any such person.

 

9.10.        Payments Under Incentives. Payment of cash or distribution of any shares of Common Stock to which a participant is entitled
under any Incentive shall be made as provided in the Incentive. Except as permitted under Section 9.16, payments and distributions
may not be deferred under any Incentive unless the deferral complies with the requirements of Code Section 409A.

 

9.11.        Amendment of the Plan. The Board of Directors may amend or discontinue the Plan at any time. Nevertheless, no such amendment
or discontinuance shall adversely change or impair, without the consent of the recipient, an Incentive previously granted. Further,
no such amendment shall, without approval of the stockholders of the Company, (a) increase the maximum number of shares of Common
Stock which may be issued to all participants under the Plan, (b) change or expand the types of Incentives that may be granted
under the Plan, (c) change the class of persons eligible to receive Incentives under the Plan, or (d) materially increase the benefits
accruing to participants under the Plan.

 

9.12.        Amendment of Agreements for Incentives. Except as otherwise provided in this Section 9.12, the terms of an existing Incentive
may be amended by agreement between the Committee and the participant. Notwithstanding the foregoing sentence, in the case of a
stock option or SAR, except as permitted under Section 9.16, no such amendment shall: (a) extend the term of the Incentive, except
as provided in Section 9.4; nor (b) reduce the exercise price per share below the Fair Market Value of the Common Stock on the
date the Incentive was granted, unless, in either case, the amendment complies with the requirements of Code Section 409A.

 

9.13.        Sale, Merger, Exchange or Liquidation. Unless otherwise provided in the agreement for an Incentive, in the event of an acquisition
of the Company through the sale of substantially all of the Company’s assets or through a merger, exchange, reorganization
or liquidation of the Company or a similar event, all as determined by the Committee in its sole discretion (collectively a “Sale
Transaction”), the Committee shall be authorized, in its sole discretion, to take any and all action it deems equitable
under the circumstances, including but not limited to any one or more of the following:

 

(a)           providing that the Plan and all Incentives shall terminate and the holders of (i) all outstanding vested options shall receive,
in lieu of any shares of Common Stock they would be entitled to receive under such options, such stock, securities or assets, including
cash, as would have been paid to such participants if their options had been exercised and such participant had received Common
Stock immediately before such Sale Transaction (with appropriate adjustment for the exercise price, if any), (ii) SARs that entitle
the participant to receive Common Stock shall receive, in lieu of any shares of Common Stock each participant was entitled to receive
as of the date of the Sale Transaction pursuant to the terms of such Incentive, if any, such stock, securities or assets, including
cash, as would have been paid to such participant if such Common Stock had been issued to and held by the participant immediately
before such Sale Transaction, and (iii) any Incentive under this Agreement which does not entitle the participant to receive Common
Stock shall be equitably treated as determined by the Committee;

 

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(b)           providing that participants holding outstanding vested Common Stock-based Incentives shall receive, with respect to each share
of Common Stock issuable pursuant to such Incentives as of the effective date of any such Sale Transaction, at the determination
of the Committee, cash, securities or other property, or any combination thereof, in an amount equal to the excess, if any, of
the Fair Market Value of such Common Stock on a date within ten days before the effective date of such Sale Transaction over the
option price or other amount owed by a participant, if any, and that such Incentives shall be cancelled, including the cancellation
without consideration of all options that have an exercise price below the per share value of the consideration received by the
Company in the Sale Transaction;

 

(c)           providing that the Plan (or replacement plan) shall continue with respect to Incentives not cancelled or terminated as of the effective
date of such Sale Transaction and provide to participants holding such Incentives the right to earn their respective Incentives
on a substantially equivalent basis (taking into account the Sale Transaction and the number of shares or other equity issued by
such successor entity) with respect to the equity of the entity succeeding the Company by reason of such Sale Transaction; or

 

(d)           providing that all unvested, unearned or restricted Incentives, including but not limited to restricted stock for which restrictions
have not lapsed as of the effective date of such Sale Transaction, shall be void and deemed terminated, or, in the alternative,
for the acceleration or waiver of any vesting, earning or restrictions on any Incentive.

 

The Board of
Directors may restrict the rights of participants or the applicability of this Section 9.13 to the extent necessary to comply with
Section 16(b) of the 1934 Act, the Code or any other applicable law or regulation. The grant of an Incentive award pursuant to
the Plan shall not limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure or to merge, exchange or consolidate or to dissolve, liquidate, sell or transfer all
or any part of its business or assets.

 

9.14.       Definition of Fair Market Value. For purposes of this Plan, the “Fair Market Value” of a share of Common
Stock at a specified date shall, unless otherwise expressly provided in this Plan, be the amount which the Committee determines
in good faith to be 100% of the fair market value of such a share as of the date in question. Notwithstanding the foregoing:

 

(a)           If such shares are listed on a U.S. securities exchange, then Fair Market Value shall be determined by reference to the last sale
price of a share of Common Stock on such U.S. securities exchange on the applicable date. If such U.S. securities exchange is closed
for trading on such date, or if the Common Stock does not trade on such date, then the last sale price used shall be the one on
the date the Common Stock last traded on such U.S. securities exchange.

 

(b)           If such shares are publicly traded but are not listed on a U.S. securities exchange, then Fair Market Value shall be determined
by reference to the trading price of a share of Common Stock on such date (or, if the applicable market is closed on such date,
the last date on which the Common Stock was publicly traded), by a method consistently applied by the Committee.

 

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(c)           If such shares are not publicly traded, then the Committee’s determination will be based upon a good faith valuation of the
Company’s Common Stock as of such date, which shall be based upon such factors as the Committee deems appropriate. The valuation
shall be accomplished in a manner that complies with Code Section 409A and shall be consistently applied to Incentives under the
Plan.

 

9.15.       Definition of Grant Date. For purposes of this Plan, the “Grant Date” of an Incentive shall be the date
on which the Committee approved the award (or, if applicable, the date on which the Company’s Chief Executive Officer exercised
discretionary authority under this Plan or otherwise granted by the Committee and approved the award) or, if later, the date on
which (a) the participant is no longer able to negotiate the terms of the award and (b) it is expected that the key terms of the
award will be communicated within a relatively short period of time.

 

9.16.       Compliance with Code Section 409A. The Plan and the agreement for each Incentive shall be interpreted and administered so
as to be exempt from the requirements of Code Section 409A or to comply with such requirements. Notwithstanding the foregoing,
Incentives may be awarded or amended in a manner that does not comply with Code Section 409A, but only if and to the extent that
the Committee specifically provides in written resolutions that the Incentive or amendment is not intended to comply with Code
Section 409A.

 

Initially approved by
the Board of Directors and stockholders in April 2013.

 

On June 24, 2014, the
Company effected a 1-for 2 reverse split of its common stock.

 

Amended by the
Board of Directors and the stockholders on April 24, 2015 and June 1, 2015, respectively.

  

Amended by the
Board of Directors and the stockholders on March 10, 2017, and May 5, 2017,
respectively.

 

 

10Exhibit

    

EXHIBIT 10.2

AMENDMENT TO THE
BROADRIDGE FINANCIAL SOLUTIONS, INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Pursuant to Section 5.5 of the Broadridge Financial Solutions, Inc. Supplemental Executive Retirement Plan (the “Plan”), the Plan is hereby amended as follows, effective February 2, 2017:

1.    Section 1.3 - The Plan is amended by substituting the following for Section 1.3 thereof:

“1.3    Committee. The Retirement Committee of the Company, appointed from time to time by Compensation Committee of the Board.”

2.    Section 5.5 - The Plan is amended by substituting the following for Section 5.5 thereof:

“5.5    Company’s Right to Terminate and Amend.  The Company, acting through the Compensation Committee of the Board, may, at any time, amend or modify the Plan in whole or in part.  In addition, the Plan may be amended by the Committee at any time provided that any such amendment is necessary (A) to bring the Plan into compliance with the Code or other applicable law, or (B) to make any other desired changes which do not result, when aggregated with any other amendments to the Plan made by the Committee during the immediately preceding fiscal year (ignoring inflation trends), in a more than ten percent (10%) increase (when compared to such immediately preceding fiscal year) in the cost of maintaining the Plan to the Company.  The Company also reserves the right in its sole discretion at any time to terminate the Plan. Notwithstanding the foregoing, and subject to Section 6.7 of the Plan, no such amendment or termination shall reduce the amount of the benefit theretofore vested in any Participant or change the conditions required to be satisfied to receive payment of such past accrued benefit based on the provisions of the Plan as theretofore in effect.  For this purpose, the amount of a Participant's accrued benefit as of the date of any plan amendment or termination shall be determined as if the Participant was then retiring in accordance with Section 3.3 with his actual Vested Percentage accrued as at such date; provided that if the Company is terminating the Plan and if a Participant has not completed at least 5 years of Future Service, Participant's Vested Percentage shall be: (i) 40% if he has completed 4 years of Future Service; (ii) 30% if he has completed 3 years of Future Service; (iii) 20% if he has completed 2 years of Future Service; (iv) 10% if he has completed 1 year of Future Service; and (v) 0% if he has not completed 1 year of Future Service. 
 

    

This amendment is hereby adopted by the Retirement Committee this  2nd day of February, 2017.

_________________________
Adam Glazner
Sr. Director Benefits

_________________________
Michael Liberatore 
President of ICS-Mutual Fund and Retirement Solutions 

_________________________
Steve Rosenthal
Treasurer

__________________________
Julie Taylor
Chief Human Resources Officer

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