Document:

Second Amended and Restated Employment Severance Agreement

 Exhibit 10.2 
 SECOND AMENDED AND RESTATED EMPLOYMENT SEVERANCE AGREEMENT 
 This Second Amended and Restated
Employment Severance Agreement (the “Agreement”) is made and entered into effective as of 4/17/06 (the “Effective Date”), by and between Jane Baughman (the “Employee”) and Cost Plus, Inc. (the “Company”).

 R E C I T A L S 
 A.
The Company desires to retain the services of the Employee, and the Employee desires to be employed by the Company, on the terms and subject to the conditions set forth in this Agreement. 
 B. The Board of Directors of the Company (the “Board”) believes the Company should provide the Employee with certain severance benefits should
the Employee’s employment with the Company terminate under certain circumstances, such benefits to provide the Employee with enhanced financial security and sufficient incentive and encouragement to remain with the Company. 
 C. This Agreement amends and restates the Amended and Restated Employment Severance Agreement dated April 29, 2005 between the Company and the
Employee. 
 D. Certain capitalized terms used in the Agreement are defined in Section 6 below. 
 AGREEMENT 
 In consideration of the
mutual covenants herein contained, and in consideration of the continuing employment of the Employee by the Company, the Amended and Restated Employment Severance Agreement is hereby amended and restated in its entirety as set forth herein, and the
parties further agree as follows: 
 1. Duties and Scope of Employment. The Company shall employ the Employee in the
position of Vice President of Finance with such duties, responsibilities and compensation as in effect as of the Effective Date. The Board and the Chief Executive Officer of the Company (the “CEO”) shall have the right to revise such
responsibilities and compensation from time to time as the Board or the CEO may deem necessary or appropriate. If any such revision constitutes “Involuntary Termination” as defined in Section 6(d) of this Agreement, the Employee shall
be entitled to benefits upon such Involuntary Termination as provided under this Agreement. 
 2. At-Will Employment.
The Company and the Employee acknowledge that the Employee’s employment is and shall continue to be at-will, as defined under applicable law. If the Employee’s employment terminates for any reason, the Employee shall not be entitled to any
payments, benefits, damages, awards or compensation other than as provided by this Agreement, or as may otherwise be available in accordance with the Company’s established employee plans and practices or in accordance with other agreements
between the Company and the Employee. This Agreement shall remain in effect until the earlier of (i) the date that all obligations of the parties hereunder have been satisfied or (ii) the date upon which this Agreement terminates by
consent of the parties hereto. 

 3. Severance Benefits. 
 (a) Benefits upon Termination. Unless the Employee is entitled to benefits under Section 3(b) of this Agreement, if the
Employee’s employment terminates as a result of Involuntary Termination prior to June 15, 2007 and the Employee signs and does not revoke a Release of Claims, then the Company shall pay the Employee’s Base Compensation on a salary
continuation basis in accordance with the Company’s normal payroll practices to the Employee for six (6) months from the Termination Date. The Employee shall not be entitled to receive any payments if Employee voluntarily terminates
employment other than as a result of an Involuntary Termination. 
 (b) Benefits upon Termination After a Change of
Control. If after a Change of Control the Employee’s employment terminates as a result of Involuntary Termination prior to June 15, 2007 and the Employee signs and does not revoke a Release of Claims, then the Company shall pay the
Employee’s Base Compensation on a salary continuation basis in accordance with the Company’s normal payroll practices to the Employee for six (6) months from the Termination Date. The Employee shall not be entitled to receive any
payments if the Employee voluntarily terminates employment other than as a result of an Involuntary Termination. 
 (c)
Stock Options; Bonus. Unless otherwise provided in the Company’s stock option plans or in the Employee’s stock option agreements, the Employee shall not be entitled to acceleration of any unvested stock options or partial bonus
payments for an incomplete bonus plan year upon the termination of the Employee’s employment for any reason, including an Involuntary Termination. 
 (d) Miscellaneous. In addition to the benefits described in Section 3(a) or Section 3(b) of this Agreement, upon the termination of the Employee’s employment, (i) the Company shall pay the
Employee any unpaid base salary due for periods prior to the Termination Date; (ii) the Company shall pay the Employee all of the Employee’s accrued and unused vacation through the Termination Date; and (iii) following submission of
proper expense reports by the Employee, the Company shall reimburse the Employee for all expenses reasonably and necessarily incurred by the Employee in connection with the business of the Company prior to the Termination Date. These payments shall
be made promptly upon termination and within the period of time mandated by applicable law. 
 4. Limitation on
Payments. 
 (a) Code Section 409A. If the Company reasonably determines that Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”) will result in the imposition of additional tax to an earlier payment of the severance and other benefits provided in this Agreement or otherwise payable to the Employee, then the
first six (6) months of the Employee’s 

  

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severance benefits under Section 3 of this Agreement will accrue during the six (6)-month period following the Employee’s termination and will
become payable in a lump sum payment on the date that is six (6) months and one (1) day following the date of the Employee’s termination of employment. The remaining severance benefits will be payable as provided in Section 3 of
this Agreement. 
 (b) Code Section 280G. In the event that the severance and other benefits provided for in this
Agreement or otherwise payable to the Employee (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 4, would be subject to the excise tax imposed by
Section 4999 of the Code, then the Employee’s severance benefits under Section 3(b) of this Agreement shall be either: 
 (i) delivered in full, or 
 (ii) delivered as to such lesser extent which would result in no
portion of such severance benefits being subject to excise tax under Section 4999 of the Code, 
 whichever of the foregoing amounts, taking into
account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by the Employee on an after-tax basis, of the greatest amount of severance benefits, notwithstanding
that all or some portion of such severance benefits may be taxable under Section 4999 of the Code. Unless the Company and the Employee otherwise agree in writing, any determination required under this Section 4 shall be made in writing by
the Company’s independent public accountants immediately prior to Change of Control (the “Accountants”), whose determination shall be conclusive and binding upon the Employee and the Company for all purposes. For purposes of making
the calculations required by this Section 4, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and
4999 of the Code. The Company and the Employee shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the
Accountants may reasonably incur in connection with any calculations contemplated by this Section 4. 
 5.
Non-Solicitation. In consideration for the mutual agreements as set forth herein, the Employee agrees that the Employee shall not, at any time, within twelve (12) months following termination of the Employee’s employment with the
Company for any reason, directly or indirectly solicit the employment or other services of any individual who at that time shall be or within the prior twelve (12) months shall have been an employee of the Company. 
 6. Definition of Terms. The following terms referred to in this Agreement shall have the following meanings: 
 (a) Base Compensation. “Base Compensation” means the Employee’s monthly base salary paid by the Company for services
performed calculated as the average base salary for the six (6) months completed prior to the Termination Date. If the Employee has not been employed by the Company for six (6) complete months prior to the Termination Date, Base
Compensation shall be calculated as the average base salary for the period of the Employee’s employment. 
  

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 (b) Cause. “Cause” means the Employee’s (i) intentional
failure to perform reasonably assigned duties, (ii) dishonesty or willful misconduct in the performance of duties, (iii) engaging in a transaction in connection with the performance of duties to the Company or any of its subsidiaries
thereof which transaction is adverse to the interests of the Company or any of its subsidiaries and which is engaged in for the Employee’s personal enrichment or (iv) willful violation of any material law, rule or regulation in connection
with the performance of duties. 
 (c) Change of Control. “Change of Control” means the consummation of any
of the following events: 
 (i) The acquisition by any “person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act) (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of the “beneficial ownership” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; 
 (ii) A change in the composition of the Board of Directors of the Company occurring within a two (2)-year period, as a result of which
fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or nominated for election, to the
Board of Directors of the Company with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual not otherwise an Incumbent Director whose election or
nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); 
 (iii) A merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation, or the approval by the stockholders of the Company of a plan of complete liquidation of the Company or of an agreement for the sale or disposition by the Company of all or substantially all the
Company’s assets; 
 (iv) The sale of all or substantially all of the assets of the Company determined on a consolidated
basis; or 
 (v) The complete liquidation or dissolution of the Company. 
  

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 (d) Involuntary Termination. “Involuntary Termination” means:

 (i) termination of the Employee’s employment by the Company for any reason other than Cause; 
 (ii) a material reduction in the Employee’s salary, other than any such reduction which is part of, and generally consistent with, a
general reduction of officer salaries; 
 (iii) a material reduction by the Company in the kind or level of employee benefits
(other than salary and bonus) to which the Employee is entitled immediately prior to such reduction with the result that the Employee’s overall benefits package (other than salary and bonus) is substantially reduced (other than any such
reduction applicable to officers of the Company generally); 
 (iv) any material breach by the Company of any material
provision of this Agreement which continues uncured for thirty (30) days following notice thereof; or 
 (v) a material
reduction in the Employee’s titles, duties, responsibilities, or authority; 
 provided that none of the foregoing shall constitute
Involuntary Termination to the extent Employee has agreed thereto. Any purported Involuntary Termination pursuant to Section 6(d)(ii) through 6(d)(v) will not be effective until the Employee has delivered to the Company a written explanation
which describes the basis for the Employee’s belief that the Employee should be permitted to terminate her employment and have it treated as an Involuntary Termination and the Company has been given thirty (30) days to cure any curable
violation. 
 (e) Release of Claims. “Release of Claims” shall mean a waiver by Employee, in a form
satisfactory to the Company, of all employment-related obligations of and claims and causes of action against the Company. 
 (f) Termination Date. “Termination Date” shall mean the date on which an event that would constitute Involuntary Termination occurs, or the later of (i) the date on which a notice of termination is given, or
(ii) the date (which shall not be more than thirty (30) days after the giving of such notice) specified in such notice. 
 (g) Management Incentive Plan. “Management Incentive Plan” shall mean the Company’s bonus program, as implemented by the Company’s board of directors from time to time and pursuant to which the Employee may
receive incentive-based compensation at fiscal year end. 
 7. Confidentiality. The Employee acknowledges that during
the course of the Employee’s employment, the Employee will have produced and/or have access to confidential information, records, notebooks, data, formula, specifications, trade secrets, customer lists and secret inventions, and processes of
the Company and its affiliated companies. Therefore, during or subsequent to the Employee’s employment by the Company, the Employee agrees to hold in confidence and not directly or indirectly to disclose or use or copy or make lists of any such
information, except to the extent authorized by the Company in writing. All records, files, drawings, 

  

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documents, equipment, and the like, or copies thereof, relating to the Company’s business, or the business of an affiliated company, which the Employee
shall prepare, or use, or come into contact with, shall be and remain the sole property of the Company, or of an affiliated company, and shall not be removed from the Company’s or the affiliated company’s premises without its written
consent, and shall be promptly returned to the Company upon termination of employment with the Company. 
 8.
Successors. 
 (a) Company’s Successors. Any successor to the Company (whether direct or indirect and
whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations
under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any
successor to the Company’s business and/or assets which executes and delivers the assumption agreement pursuant to this subsection (a) or which becomes bound by the terms of this Agreement by operation of law. 
 (b) Employee’s Successors. The terms of this Agreement and all rights of the Employee hereunder shall inure to the benefit of,
and be enforceable by, the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
 9. Notice. 
 (a) General. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return
receipt requested and postage prepaid. In the case of the Employee, mailed notices shall be addressed to Employee at the home address that the Employee most recently communicated to the Company in writing. In the case of the Company, mailed notices
shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its CEO. 
 (b)
Notice of Termination. Any termination by the Company for Cause or by the Employee as a result of a voluntary resignation or an Involuntary Termination shall be communicated by a notice of termination to the other party hereto given in
accordance with Section 9(a) of this Agreement. Such notice shall indicate the specific termination provision in this Agreement relied upon, shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination under the provision so indicated, and shall specify the termination date (which shall be not more than thirty (30) days after the giving of such notice). The failure by the Employee to include in the notice any fact or circumstance
which contributes to a showing of Involuntary Termination shall not waive any right of the Employee hereunder or preclude the Employee from asserting such fact or circumstance in enforcing Employee’s rights hereunder. 
  

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 10. Miscellaneous Provisions. 
 (a) Non-Disparagement. The Employee agrees to refrain from any defamation, libel or slander of the Company and its respective
officers, directors, employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns or tortious interference with the contracts and relationships of the Company and its
respective officers, directors, employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns. The Employee acknowledges and agrees that any breach of this paragraph
shall constitute a material breach of the Agreement and shall entitle the Company immediately to recover all consideration paid under this Agreement, including, but not limited to the consideration described in Section 3.

 (b) No Duty to Mitigate. The Employee shall not be required to mitigate the amount of any payment contemplated by
this Agreement, nor shall any such payment be reduced by any earnings that the Employee may receive from any other source. 
 (c) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Company (other
than the Employee). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or
provision at another time. 
 (d) Whole Agreement. No agreements, representations or understandings (whether oral or
written and whether express or implied) which are not expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof. 
 (e) Severance Provisions in Other Agreements. The Employee acknowledges and agrees that the severance provisions set forth in this
Agreement shall supersede any such provisions in any other agreement entered into between the Employee and the Company. 
 (f)
Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California. 
 (g) Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity
or enforceability of any other provision hereof, which shall remain in full force and effect. 
 (h) No Assignment of
Benefits. The rights of any person to payments or benefits under this Agreement shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy,
garnishment, attachment or other creditor’s process, and any action in violation of this subsection shall be void. 
 (i)
Employment Taxes. All payments made pursuant to this Agreement will be subject to withholding of applicable income and employment taxes. 
  

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 (j) Code Section 409A. This Agreement will be deemed amended to the extent
necessary to avoid imposition of any additional tax or income recognition prior to actual payment to the Employee under Section 409A of the Code and any temporary, proposed or final Treasury Regulations and guidance promulgated thereunder and
the parties agree to cooperate with each other and to take reasonably necessary steps in this regard. 
 (k) Assignment by
Company. The Company may assign its rights under this Agreement to an affiliate, and an affiliate may assign its rights under this Agreement to another affiliate of the Company or to the Company; provided, however, that no assignment shall be
made if the net worth of the assignee is less than the net worth of the Company at the time of assignment. In the case of any such assignment, the term “Company” when used in a section of this Agreement shall mean the corporation that
actually employs the Employee. 
 (l) Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together will constitute one and the same instrument. 
 IN WITNESS WHEREOF, each of the parties has
executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above written. 
  

					
	COMPANY:	 		 	COST PLUS, INC.
			
	 	 		 	/s/ Barry Feld
		 		 	By
			
	 	 		 	CEO
		 		 	Title
			
	EMPLOYEE:	 		 	/s/ Jane Baughman
		 		 	Jane Baughman

  

 -8-Silicon Graphics, Inc. Management Incentive Plan, as amended

 EXHIBIT 10.1 
 SILICON GRAPHICS, INC. 
 MANAGEMENT INCENTIVE PLAN 
 1. Purpose. The Silicon Graphics, Inc.
Management Incentive Plan (the “Plan”) is intended to attract, retain and motivate officers and employees of, consultants to, and non-employee directors providing services to Silicon Graphics, Inc. (the “Company”)
and its subsidiaries by providing them with the opportunity to acquire shares of the Company’s common stock (the “Common Stock”), to receive monetary payments based on the value of such shares or to receive other equity or cash
incentive compensation. 
 2. Administration. 
 (a) Committee. The Plan will be administered by a committee (the “Committee”) appointed by the Board of Directors of the Company (the “Board”) from among its members and shall
be comprised, unless otherwise determined by the Board, of not less than two (2) members each of whom shall be (i) a “Non-Employee Director” within the meaning of Rule 16b-3(b)(3) (or any successor rule) promulgated under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (ii) “outside directors” within the meaning of Treasury Regulation Section 1.162-27(e)(3) under Section 162(m) of the Internal Revenue
Code of 1986, as amended (the “Code”), and (iii) an “independent director” within the meaning of the listing requirements of the National Association of Securities Dealers Automated Quotation System and such other
exchange on which the Company may be listed. 
 (b) Authority. The Committee is authorized, subject to the provisions of the Plan, to
establish such rules as it deems necessary for the proper administration of the Plan and to make such determinations and interpretations in its sole discretion and to take such action in connection with the Plan and any Benefits (as defined in
Section 4) granted hereunder as it deems necessary or advisable, including, subject to the terms of the Plan, the right to accelerate the vesting or exercisability of Benefits, establish the terms and conditions of Benefits and cancel Benefits
upon a Change in Control. All determinations and interpretations made by the Committee shall be binding and conclusive on all participants and their legal representatives. 
 (c) Indemnification. Except in circumstances involving bad faith or willful misconduct of the person acting or failing to act, no member of the
Committee and no employee of the Company shall be liable for any act or failure to act hereunder or for any act or failure to act hereunder by any other member or employee or by any agent to whom duties in connection with the administration of this
Plan have been delegated. The Company shall indemnify members of the Committee and any agent of the Committee who is an employee of the Company, a subsidiary or an affiliate against any and all liabilities or expenses to which they may be subjected
by reason of any act or failure to act with respect to their duties on behalf of the Plan, except in circumstances involving such person’s bad faith or willful misconduct. 
  

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 (d) Delegation. The Committee may delegate to one or more of its members, one or more officers of
the Company, and one or more agents or advisors such administrative duties or powers as it may deem advisable. Any person to whom it has delegated duties as aforesaid may employ one or more persons to render advice with respect to any responsibility
the Committee or such person may have under the Plan. To the extent permitted by applicable law, the Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as can the
Committee: (i) designate employees and consultants to be recipients of Benefits, and (ii) determine the terms and conditions of any such Benefits; provided, however, that (1) the Committee shall not delegate such
responsibilities to any such officer for Benefits granted to an employee that is considered an “insider” for purposes of Section 16 of the Exchange Act; (2) the resolution providing for such authorization shall set forth the
total number of Benefits such officer(s) may grant; and (3) the officer(s) shall report periodically to the Committee regarding the nature and scope of the Benefits granted pursuant to the authority delegated. 
 (e) Advisors. The Committee may employ such legal or other counsel, consultants and agents as it may deem desirable for the administration of the
Plan and may rely upon any opinion or computation received from any such counsel, consultant or agent. Expenses incurred by the Committee in the engagement of such counsel, consultant or agent shall be paid by the Company, or the subsidiary or
affiliate whose employees, consultants and directors have benefited from the Plan, as determined by the Committee. 
 3. Participants.
Participants will consist of such officers, employees, consultants, and non-employee directors of the Company and its subsidiaries as the Committee in its sole discretion determines and whom the Committee may designate from time to time to receive
Benefits under the Plan. The Committee may impose such conditions on participation as it shall deem appropriate, including, without limitation, a condition that any Benefit be subject to the participant’s agreement to modify existing agreements
with the Company related to indemnification and/or Change in Control. In addition, participation in the Plan and enjoyment of Benefits hereunder is conditioned upon the agreement to be bound by restrictive covenants relating to confidentiality,
non-disclosure and non-competition, which covenants shall be contained in the applicable Benefit Agreement, as defined in Section 4. Designation of a participant in any year shall not require the Committee to designate such person to receive a
Benefit in any other year or, once designated, to receive the same type or amount of a Benefit as granted to the participant in any other year. The Committee shall consider such factors as it deems pertinent in selecting participants and in
determining the type and amount of their respective Benefits. 
 4. Type of Benefits. Awards under the Plan may be granted in the form
of any one or a combination of the following (collectively, “Benefits”): (a) Stock Options, (b) Stock Appreciation Rights, (c) Stock Awards, (d) Stock Units, (e) Other Stock Based 
  

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 Awards, (f) Dividend Equivalent Rights, and (g) Cash Awards. Stock Awards, Stock Units, Other Stock Based
Awards and Cash Awards may be designed to qualify as Performance-Based Awards, as described in Section 13 hereof. Benefits awarded to a participant shall be evidenced by written agreements between the Company and the participant (which need not
be identical) in such forms as the Committee may from time to time approve (each a “Benefit Agreement”); provided, however, that in the event of any conflict between the provisions of the Plan and any Benefit
Agreement, the provisions of the Plan shall prevail. 
 5. Common Stock Available Under the Plan; Plan Maximums. 
 (a) Plan Maximums. Subject to the provisions of this Section 5 and any adjustments made in accordance with Section 16 hereof, the maximum
number of shares of Common Stock that may be delivered to participants (including permitted assignees) and their beneficiaries under this Plan shall be equal to 1,250,000 shares of Common Stock, which may be authorized and unissued or treasury
shares, all of which may issued as Incentive Stock Options, under Section 6 of this Plan, if the Committee so elects. Of the shares of Common Stock reserved for issuance under this Section no more than 312,500 may be issued as Full Value
Benefits, as defined in Section 5(c) below. 
 (b) Share Counting Rules. 
 (i) General. Shares shall be charged against the Plan maximums and the individual maximums of Section 5(c) on the date of
grant to the extent such Benefits are denominated in Common Stock and on the date of settlement for any other Benefit which are settled in shares of Common Stock; provided, however, that in the case of a Stock Appreciation Right granted in
tandem with a Stock Option, only the number of shares of Common Stock subject to the Stock Option shall be counted. 
 (ii)
Benefits Not Settled in Shares. If all or a portion of a Benefit denominated in shares of Common Stock is not settled in such shares, such shares of Common Stock that are not actually issued and delivered to a participant (or, if permitted by
the Committee, to a participant’s designated transferee) shall not be counted against the total number of shares available for Benefits but shall continue to be counted for purposes of the individual maximums. 
 (iii) Cancelled/Forfeited Awards. Any shares of Common Stock related to Benefits which terminate by expiration, forfeiture,
cancellation, or otherwise without the issuance of such shares or are settled in cash in lieu of shares of Common Stock shall be available again for grant under the Plan but shall continue to be counted for purposes of the individual maximums.

 (iv) Stock Options; Withholding. To the extent the Committee permits the exercise price of any Stock Option
(or related tax withholding) or Other Stock Based Award or the tax withholding on other Benefits to be satisfied by tendering shares to the Company (by either actual delivery or by attestation), only the 
  

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 number of shares of Common Stock issued, net of the shares of Common Stock tendered, if any, will be
deemed delivered for purposes of determining the Plan maximums but such shares shall continue to be counted for purposes of the individual maximums. 
 (v) Dividends or Dividend Equivalents. The Plan maximums and individual maximums shall not be reduced to reflect any dividends or Dividend Equivalents paid in respect of Benefits made under the Plan that
are settled or reinvested in shares of Common Stock or additional Benefits under the Plan; provided, however, that if a dividend or Dividend Equivalent is granted in respect of an Appreciation Benefit, as defined below in
Section 5(c)(ii), this rule shall only apply if the payment or settlement of such dividend or Dividend Equivalent is not contingent upon the exercise of the Benefit. 
 (vi) Substituted Benefit. If the Committee authorizes the issuance or assumption under this Plan of awards granted under
another plan in connection with any merger, consolidation, acquisition of property or stock, or reorganization (such Benefit, a “Substituted Benefit”), such authorization shall not reduce the Plan maximums; provided, however,
that if any assumed Substituted Benefits is an Incentive Stock Option such Substituted Benefit shall reduce the maximum number of shares that may be delivered to participants under the Plan pursuant to the exercise of an Incentive Stock Option.

 (c) Individual Maximums. 
 (i) Appreciation Benefits. Stock Options, Stock Appreciation Rights and Other Stock Based Awards designed to provide equity compensation based solely upon the appreciation in the value of stock over an exercise
price or base price following the date of grant, are “Appreciation Benefits”. The maximum number of shares of Common Stock with respect to which Appreciation Benefits denominated in such shares may be granted or measured to any
Participant in any consecutive 12 month period shall be 250,000 shares. 
 (ii) “Full Value” Benefits. Stock
Awards, Stock Units and Other Stock Based Awards designed to provide equity compensation based upon the value of stock on the date of grant rather than solely on the appreciation of such stock after the date of grant are “Full Value
Benefits”. The maximum number of shares of Common Stock with respect to which Full Value Benefits denominated in such shares may be granted or measured to any Participant in any consecutive 36 month period shall be 100,000 shares.

 (iii) Maximum Dollar Benefit. The maximum amount of any Benefit denominated in cash that may be paid, credited or
vested to any Participant in any consecutive 12 month period shall $3,000,000. 
  

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 6. Stock Options. 
 (a) Stock Options. Stock Options are awards from the Company that enable the holder to purchase a number of shares of Common Stock at the exercise price. Stock Options may be “incentive stock options”
within the meaning of Section 422 of the Code (“Incentive Stock Options”), or Stock Options which do not constitute Incentive Stock Options (“Nonqualified Stock Options”). 
 (b) Authority to Grant. The Committee shall have the authority to grant to any participant one or more Incentive Stock Options, Nonqualified Stock
Options, or both types of Stock Options (in each case with or without Stock Appreciation Rights). All Stock Options granted under the Plan shall be Nonqualified Stock Options unless the Benefit Agreement expressly states that the Stock Option is
intended to be an Incentive Stock Option. Each Stock Option shall be subject to such terms and conditions consistent with the Plan as the Committee may impose from time to time, subject to the limitations of Sections 6(c) through 6(g) below.

 (c) Exercise Price. Each Stock Option granted hereunder shall have such per-share exercise price as the Committee may determine at
the date of grant; provided, however, that subject to any additional requirements imposed with respect to Incentive Stock Options under Section 6(f), the per-share exercise price of each Stock Option (i) shall not be less
than 100% of the Fair Market Value (as defined in Section 18 below) of the Common Stock on the date the Stock Option is granted, or (ii) in the case of a Stock Option that is a Substituted Benefit shall not be less than the exercise price
necessary to ensure that the Stock Option is excluded from coverage under Section 409A of the Code. 
 (d) Payment of Exercise
Price. The exercise price of a Stock Option may be paid in cash, check or other readily available funds or, in the discretion of the Committee, by tendering shares of Common Stock of the Company then owned by the participant or by a combination
of these methods. In the discretion of the Committee, payment also may be made by delivering a properly executed exercise notice to the Company together with a copy of irrevocable instructions to a broker to deliver promptly to the Company the
amount of sale or loan proceeds to pay the exercise price. To facilitate the foregoing, the Company may enter into agreements for coordinated procedures with one or more brokerage firms. The Committee may prescribe any other method of paying the
exercise price that it determines to be consistent with applicable law and the purposes of the Plan, including, without limitation, in lieu of the exercise of a Stock Option by tendering shares of Common Stock of the Company then owned by a
participant, providing the Company with a notarized statement attesting to the number of shares owned, in which case upon verification by the Company, the Company would issue to the participant only the number of incremental shares to which the
participant is entitled upon exercise of the Stock Option. In determining which methods a participant may utilize to pay the exercise price, the Committee may consider such factors as it determines are appropriate. 
 (e) Exercise Period. Except as otherwise provided in this Section 6(e), Stock Options granted under the Plan shall be vested and exercisable
at such time or times and 
  

 5 

 subject to such terms and conditions as shall be determined by the Committee. All Stock Options shall terminate at such
earlier times and upon such conditions or circumstances as the Committee shall in its discretion set forth in the Benefit Agreement relating to the Stock Option grant. 
 (i) Expiration. No Stock Option shall be exercisable later than seven years after the date it is granted except in the event of a
participant’s death or termination of service due to disability, in which case, the exercise period of such participant’s Stock Option shall be extended beyond such period but no longer than one year after the participant’s death or
termination of service due to disability. 
 (ii) Vesting. No Stock Option shall be exercisable earlier than the first
anniversary of the date of grant except (i) in the event of a participant’s death, termination of service due to disability or a Change in Control, in which case, the Committee may provide for an earlier exercise date, and (ii) in the
case of a Stock Option which is a Substituted Benefit in which case the Stock Option shall be exercisable at such times as the original award was exercisable. 
 (f) Limitations on Incentive Stock Options. Incentive Stock Options may be granted only to participants who are employees of the Company or one of its subsidiaries (within the meaning of Section 424(f) of
the Code) at the date of grant. The aggregate Fair Market Value (determined as of the time the Stock Option is granted) of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by a participant during any
calendar year (under all option plans of the Company and of any parent corporation or subsidiary corporation (as defined in Sections 424(e) and (f) of the Code, respectively)) shall not exceed $100,000. For purposes of the preceding sentence,
Incentive Stock Options will be taken into account in the order in which they are granted. The per-share exercise price of an Incentive Stock Option shall not be less than 100% of the Fair Market Value of the Common Stock on the date of grant, and
no Incentive Stock Option may be exercised later than ten years after the date it is granted; provided, however, that Incentive Stock Options may not be granted to any participant who, at the time of grant, owns stock possessing (after
the application of the attribution rules of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or any parent or subsidiary corporation of the Company, unless the exercise price is
fixed at not less than 110% of the Fair Market Value of the Common Stock on the date of grant and the exercise of such Incentive Stock Option is prohibited by its terms after the expiration of five years from the date of grant of such Incentive
Stock Option. If a Stock Option is intended to be an Incentive Stock Option, and if for any reason such Stock Option (or any portion thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such nonqualification, such Stock
Option (or portion thereof) shall be regarded as a Nonqualified Stock Option appropriately granted under the Plan; provided that such Stock Option (or portion thereof) otherwise complies with the Plan’s requirement relating to Nonqualified
Stock Options. 
  

 6 

 (g) Rights as a Shareholder. No participant shall have any rights to dividends or other
shareholder rights with respect to shares of Common Stock subject to a Stock Option until the participant has given written notice of exercise of the Stock Option, paid in full for such shares, received such shares from the Company and, if
applicable, has satisfied any other conditions imposed by the Committee pursuant to the Plan or any Benefit Agreement. 
 7. Stock
Appreciation Rights. 
 (a) Stock Appreciation Rights. A Stock Appreciation Right is a right to receive a payment in cash, Common
Stock or a combination thereof, in an amount equal to the excess of (i) the Fair Market Value, or other specified valuation (which shall be no greater than the Fair Market Value), of a specified number of shares of Common Stock on the date the
right is exercised over (ii) the Fair Market Value, or other specified valuation (which, (1) shall be no less than 100% the Fair Market Value of such shares of Common Stock on the date the right is granted, or (2) in the case of a
Stock Appreciation that is a Substituted Benefit shall not be less than the amount necessary to ensure that the Stock Appreciation Right is excluded from coverage under Section 409A of the Code); provided, however, that if a Stock
Appreciation Right is granted in tandem with or in substitution for a Stock Option, Fair Market Value in clause (ii) above shall be the Fair Market Value of a share of Common Stock on the date such Stock Option was granted. 
 (b) Authority to Grant. The Committee shall have the authority to grant Stock Appreciation Rights to the holders of any Stock Options granted
hereunder. In addition, Stock Appreciation Rights may be granted independently of, and without relation to, Stock Options. 
 (c)
Terms. Except as otherwise provided herein, each Stock Appreciation Right shall be subject to such terms and conditions as the Committee shall impose from time to time: 
 (i) Expiration. No Stock Appreciation Right shall be exercisable later than seven years after the date it is granted except in the
event of a participant’s death or termination of service due to disability, in which case, the exercise period of such participant’s Stock Appreciation Rights shall be extended beyond such period but no longer than one year after the
participant’s death or termination of service due to disability. 
 (ii) Vesting. No Stock Appreciation Right
shall be exercisable earlier than the first anniversary of the date of grant except (1) in the event of a participant’s death, termination of service due to disability or a Change in Control, in which case, the Committee may provide for an
earlier exercise date, and (2) in the case of a Stock Appreciation Right which is a Substituted Benefit in which case the Stock Appreciation Right may be exercised at such times as the original award was exercisable. 
  

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 8. Stock Awards. 
 (a) Stock Award. A Stock Award is an award that results in the issuance or transfer of Common Stock to a participant with or without payment therefor. Stock Awards can be used by the Company to pay earned
compensation, including earned incentive compensation under other Company programs. If a Stock Award provides for the grant of Common Stock that is subject to a substantial risk of forfeiture that lapses in accordance with a vesting schedule, such
Stock Award may be referred to as a Restricted Stock Award. If the issuance or vesting of a Stock Award is contingent upon the satisfaction of performance criteria, such Stock Award may be referred to as a Performance Stock Award. If a participant
is granted a right to receive Common Stock on a fixed future date or upon the occurrence of a particular event such Stock Award may be referred to as Deferred Stock Award. 
 (b) Authority to Grant. The Committee shall have the authority to grant Stock Awards. 
 (c) Terms. Except as otherwise provided herein, each Stock Award shall be subject to such terms and conditions as the Committee shall impose from
time to time, including, without limitation, restrictions on the sale or other disposition of shares subject to the Stock Award and the right of the Company to reacquire such shares for no consideration upon termination of the participant’s
employment within specified periods. 
 (i) Vesting. No Stock Award shall vest solely on the basis of time more rapidly
than pro rata over a three year period following the date of the award except (1) in the event of a participant’s death, termination of service due to disability or a Change in Control, in which case the Committee may provide for
accelerated vesting, (2) subject to Section 8(c)(ii) below, in the case of a Performance Stock Award, which shall vest in accordance with its terms when performance conditions are satisfied, (3) in the case of a Stock Award granted to
pay incentive compensation earned under other Company programs, which may be fully vested when granted, (4) in the case of a Stock Award which is a Substituted Benefit or which is issued to a newly hired participant to replace awards granted by
a former employer or entity to which such participant provided services, in which case such Stock Award shall vest in accordance with the vesting schedule of the original or forfeited award (or in the case of a Stock Award to a new hire, on the
first anniversary of the date of grant, if later). 
 (ii) Performance Stock. The performance period established with
respect to any Performance Stock Award shall not be less than one year. Performance Stock may be designed as Performance-Based Awards which qualify under Section 162(m) of the Code. 
 (iii) Deferred Stock. No Deferred Stock Award shall provide for the delivery of Common Stock prior to the expiration of one year
following the date of the award except in the event of a participant’s death, termination of service due to disability or a Change in Control, in which case the Committee may provide for earlier delivery of the Common Stock. 
  

 8 

 (iv) Rights as a Shareholder. Each Stock Award shall specify whether the
participant shall have, with respect to the shares of Common Stock subject to the Stock Award, all of the rights of a holder of shares of Common Stock of the Company, including the right to receive dividends and to vote the shares. 
 (d) Additional Conditions. The Committee may require the participants who receive Stock Awards to deliver a duly signed stock power, endorsed in
blank, relating to the Common Stock covered by a Stock Award. The Committee also may require that the stock certificates evidencing shares subject to a Stock Award be held in custody or bear restrictive legends until the restrictions thereon shall
have lapsed. 
 9. Stock Units. 
 (a) Stock Unit. A “Stock Unit” is a notional unit representing one share of Common Stock. If a Stock Unit is subject to a vesting schedule, such Stock Unit may be referred to as a Restricted Stock Unit. If the
issuance or vesting of a Stock Unit is contingent upon the satisfaction of performance criteria, such Stock Award may be referred to as a Performance Unit. If a participant is granted a Stock Unit which will be settled on a fixed future date or upon
the occurrence of a particular event such Stock Unit may be referred to as a Deferred Stock Unit. 
 (b) Authority to Grant. The
Committee shall have the authority to grant Stock Units to participants hereunder, which are settled in cash, shares of Common Stock or other Benefits. If Stock Units will be settled in shares of Common Stock, such shares may be issued with or
without payments or other consideration therefor, as may be required by applicable law or as may be determined by the Committee. 
 (c)
Terms. Except as otherwise provided herein, the Committee shall determine the criteria for the vesting and settlement of Stock Units, including whether the participant may defer such payment pursuant to a valid deferral agreement. Any such
deferral shall comply with Section 409A of the Code. 
 (i) Vesting. No Stock Unit shall vest solely on the basis
of time more rapidly than pro rata over a three year period following the date of the award except (1) in the event of a participant’s death, termination of service due to disability or a Change in Control, in which case the Committee may
provide for accelerated vesting, (2) subject to Section 9(c)(ii) below, in the case of a Performance Unit, which shall vest in accordance with its terms when performance conditions are satisfied, (3) in the case of a Stock Unit which
is a Substituted Benefit or which is granted to a newly hired participant to replace awards granted by a former employer or entity to which such participant provided services, in which case such Stock Unit shall vest in accordance with the vesting
schedule of the original or forfeited award (or in the case of a Stock Unit to a new hire, on the first anniversary of the date of grant, if later). 
  

 9 

 (ii) Performance Unit. The performance period established with respect to any
Performance Unit shall not be less than one year. Performance Units may be designed as Performance-Based Awards which qualify under Section 162(m) of the Code. 
 (iii) Deferred Stock Unit. No Deferred Stock Units shall provide for settlement prior to the expiration of one year following the
date of the award except in the event of a participant’s death, termination of service due to disability or a Change in Control, in which case, the Committee may provide for earlier settlement. 
 10. Other Stock Based Awards 
 (a)
Other Stock Based Awards. An “Other Stock-Based Award” is an equity-based or equity-related award denominated in shares of Common Stock or an equivalent measurement based on the equity of the Company which are not otherwise
described by the terms of the Plan and may include, without limitation, the sale of unrestricted shares of Common Stock or an award designed comply with or take advantage of the applicable local laws of jurisdictions other than the United States.
Other Stock Based Awards may be designed as either Appreciation Benefits or Full Value Benefits. Other Stock Based Awards may be designed as Performance Based Awards which qualify under Section 162(m) of the Code. 
 (b) Authority. The Committee shall have the authority to grant Other Stock Based Awards. 
 (c) Terms. Except as otherwise provided herein, the Committee shall have the authority to determine all of the terms of the Other Stock Based
Awards; provided, however, that subject to Section 15 related to grants made to participants subject to the tax laws of foreign jurisdictions, the Committee shall ensure that the terms of the Other Stock Based Awards are not more
favorable to the participants than similar Benefits provided for under the Plan. Specifically, subject to Section 15, 
 (i) Full Value Benefits - Vesting on Other Stock Based Awards which are Full Value Benefits shall, subject to similar exceptions provided under Section 8 and 9, (1) not provide for time vesting more rapidly than pro rata
over three years, (2) not provide a shorter performance period than one year, and (3) not provide for settlement prior to the expiration of one year, and 
 (ii) Appreciation Benefits - Other Stock Based Awards which are Appreciation Benefits shall (1) be granted with an exercise
price or base value that is not less than 100% of Fair Market Value, (2) subject to similar exceptions provided under Sections 6 and 7, not provide for time vesting prior to the expiration of one year following the date of grant, and
(3) subject to similar exceptions provided under Sections 6 and 7, expire no later than seven years after the date of grant. 
  

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 11. Dividend Equivalent Rights. 
 (a) Dividend Equivalent Right. A “Dividend Equivalent Right” is the right to receive the amount of any dividend paid on one share
of Common Stock. Dividend Equivalent Rights shall be payable in cash, share of Common Stock or in the form of additional Benefits. 
 (b)
Authority to Grant. The Committee is authorized to grant to dividend equivalent rights on Shares that are subject to any Benefit. 
 (c) Terms. Dividend Equivalent Rights shall be credited as of dividend payment dates during the period between the date the Benefit is granted and the date the Benefit is exercised, vested, expired, credited or paid. Dividend
Equivalent Rights shall be converted to cash, shares of Common Stock or additional Benefits by such formula and at such time and subject to such limitations as is determined by the Committee. Dividend Equivalents granted with respect to any Stock
Option or Stock Appreciation Right may be payable regardless of whether such Stock Option or Stock Appreciation Right is subsequently exercised. 
 12. Cash Awards. 
 The Committee is authorized to grant Benefits to participants denominated in cash in such amounts and
subject to such terms and conditions as the Committee may determine. Such Benefits shall be referred to as “Cash-Based Awards.” Each such Cash-Based Award shall specify a payment amount or payment range as determined by the
Committee. 
 13. Performance-Based Awards. 
 (a) Performance-Based Awards. The Committee is authorized to design Stock Awards, Stock Units, Other Stock Based Awards and Cash Awards so that the amounts or shares of Common Stock payable or distributed
pursuant to such Benefit are treated as “qualified performance based compensation” within the meaning Section 162(m) of the Code and related regulations. As determined by the Committee in its sole discretion, either the granting or
vesting of such Performance-Based Awards shall be based on achievement of hurdle rates and/or growth rates in one or more business criteria that apply to the individual participant, one or more business units, divisions, subsidiaries or business
segments or the Company as a whole. 
 (b) Business Criteria. The Committee may use any of the following business criteria,
individually or in combination, in designing a Performance-Based Award: (i) revenue growth, (ii) premium growth, (iii) policy growth; (iii) earnings (including earnings before taxes, earnings before interest and taxes or earnings
before interest, taxes, depreciation and amortization), (iv) operating income; (v) pre- or after-tax income; (vi) cash flow (before or after dividends); (vii) cash flow per share (before or after dividends); (viii) earnings
per share; (ix) return on equity; (x) return on capital (including return on total capital or return on invested capital); (xi) cash flow return on investment; (xii) return on assets; (xiii) economic value added (or an
equivalent metric); (xiv) market share or 
  

 11 

 penetration; (xv) share price performance; (xvi) total shareholder return; (xvii) improvement in or
attainment of expense levels or expenses ratios; (xviii) employee and/or agent satisfaction; (xix) employee and/or agent satisfaction; (xx) customer satisfaction; (xxi) customer satisfaction; (xxii) customer retention; and
(xxiii) rating agency ratings. In addition, Performance-Based Awards may include comparisons to the performance of other companies or an index covering multiple companies, such performance to be measured by one or more of the foregoing business
criteria. Furthermore, the measurement of performance against goals may exclude or adjust for the impact of certain events or occurrences that were not budgeted or planned for in setting the goals, including, among other things, the impact of
charges for restructurings, discontinued operations, extraordinary items and other unusual or non-recurring items, and the cumulative effects of tax or accounting changes, each as defined by generally accepted accounting principles as identified in
the financial statements, notes to the financial statements or management’s discussion or analysis or other SEC filing. 
 (c)
Procedure. For each Performance-Based Awards, the Committee shall establish in writing, no later than 90 days after the commencement of a performance period (but in no event after one-quarter of such period has elapsed) (i) the
performance goals applicable to the performance period specifying in terms of an objective formula or standard the method for computing the amount of compensation payable to the participant if such performance goals are achieved and (ii) the
individual employees or class of employees to which such performance goals apply. No Performance-Based Awards shall be payable to or vest with respect to any participant for a given period until the Committee certifies in writing that the objective
performance goals (and any other material terms) applicable to such period have been satisfied. The Committee shall not have the authority to increase the amount of compensation payable upon attainment of the performance goals but may reduce or
eliminate compensation, provided the Benefit Agreement so permits. 
 14. Section 409A of the Code. 
 (a) Compliance. Notwithstanding anything herein or in any Benefit Agreement to the contrary, (i) this Plan and any Benefit shall be
interpreted in accordance with Section 409A of the Code, Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the
Effective Date, (ii) in the event that the Committee determines that the Plan and/or Benefits are subject to Section 409A of the Code, the Committee may, in its sole discretion and without a participant’s prior consent, amend the Plan
and/or Benefits, adopt policies and procedures, or take any other actions (including amendments, policies, procedures and actions with retroactive effect) as are necessary or appropriate to (1) exempt the Plan and/or any Benefits from the
application of Section 409A of the Code, (2) preserve the intended tax treatment of any such Benefit, and (3) comply with the requirements of Section 409A of the Code, including any regulations or other interpretive guidance that
may be issued after the grant of any Benefit. Notwithstanding the foregoing, neither the Committee nor the Company is obligated to ensure that Benefits comply with Section 409A of the Code or to take any actions to ensure such compliance.

  

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 (b) Specified Payment Date. To the extent not otherwise specified in the applicable Benefit
Agreement, each Benefits shall be paid or otherwise settled on or as soon as practicable after the amount due is determinable and no longer subject to a substantial risk of forfeiture, but in no event later than the 15th day of the third month from
the end of (i) the participant’s tax year that includes the applicable payment date, or (ii) the Company’s tax year that includes the applicable payment date, whichever is later. 
 15. Foreign Laws. The Committee may grant Benefits to individual participants who are subject to the tax laws of nations other than the United
States, which Benefits may have terms and conditions which the Committee determines to be necessary to comply with applicable foreign laws. The Committee may take any action which it deems advisable to obtain approval of such Benefits by the
appropriate foreign governmental entity; provided, however, that no Benefits may be granted pursuant to this Section 15 and no action may be taken which would result in a violation of the Exchange Act, the Code or any other
applicable law. 
 16. Adjustment Provisions; Change in Control. 
 (a) Adjustments. If there shall be any change in the Common Stock of the Company, through merger, consolidation, reorganization, recapitalization,
stock dividend, stock split, reverse stock split, split up, spinoff, combination of shares, exchange of shares, dividend in kind or other like change in capital structure or distribution (other than normal cash dividends) to stockholders of the
Company, an adjustment shall be made to each outstanding Stock Option and Stock Appreciation Right such that each such Stock Option and Stock Appreciation Right shall thereafter be exercisable for such securities, cash and/or other property as would
have been received in respect of the Common Stock subject to such Stock Option or Stock Appreciation Right had such Stock Option or Stock Appreciation Right been exercised in full immediately prior to such change or distribution, and such an
adjustment shall be made successively each time any such change shall occur. In addition, in the event of any such change or distribution or any extraordinary dividend or distribution of cash or other assets, in order to prevent dilution or
enlargement of participants’ rights under the Plan, the Committee shall adjust, in an equitable manner, the number and kind of shares that may be issued and granted under the Plan, the number and kind of shares subject to outstanding Benefits,
the exercise price applicable to outstanding Benefits, and the Fair Market Value of the Common Stock and other value determinations or affected terms applicable to outstanding Benefits. The Committee shall also make appropriate adjustments to the
terms of any Benefits (other than Benefits intended to constitute Performance-Based Awards unless permitted under Section 162(m) of the Code) to reflect such changes or distributions (and any extraordinary dividend or distribution of cash or
other assets) and to modify corresponding terms of such outstanding Benefits. Such changes may include modifications of performance targets and changes in the length of performance periods. In addition, the Committee shall make adjustments to the
terms and conditions of, and the criteria included in, Benefits in recognition of unusual or nonrecurring events affecting the Company or the financial statements of the Company, or in response to changes in applicable laws, regulations, or
accounting principles (except that with respect to Stock Options, Stock Appreciation Rights, and other Benefits intended to constitute Performance-Based Awards, such adjustments shall not be made unless permitted under Section 162(m) of the
Code). 
  

 13 

 (b) Change in Control. Notwithstanding any other provision of this Plan, in the event of a Change
in Control (as defined below), the Committee, in its discretion, may take such actions as it deems appropriate with respect to outstanding Benefits, including, without limitation, accelerating the exercisability or vesting of such Benefits,
providing for the assumption of all Benefits by the continuing entity or such other actions provided in an agreement approved by the Board in connection with a Change in Control and such Benefits shall be subject to the terms of such agreement as
the Committee, in its discretion, shall determine. The Committee, in its discretion, may determine that, upon the occurrence or in anticipation of and subject to the occurrence of a Change in Control of the Company, each Stock Option and Stock
Appreciation Right outstanding hereunder shall terminate within a specified number of days after notice to the holder. In addition, the Committee may provide that each such holder shall receive, with respect to each share of Common Stock subject to
such Stock Option or Stock Appreciation Right, an amount equal to the excess of the Fair Market Value of such shares of Common Stock immediately prior to the occurrence of such Change in Control over the exercise price per share of such Stock Option
or Stock Appreciation Right; such amount to be payable in cash, in one or more kinds of property (including the property, if any, payable in the transaction) or in a combination thereof, as the Committee, in its discretion, shall determine. For
purposes of this Section 16(b), a “Change in Control” of the Company shall be deemed to have occurred upon any of the following events: 
 (i) Any person(s) acting together which would constitute a “group” for purposes of Section 13(d) of the Exchange Act (other
than the Company, any subsidiary, or any “permitted holder” as defined below) shall “beneficially own” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, at least 35% of the total voting power of all
classes of capital stock of the Company entitled to vote generally in the election of the Board; 
 (ii) Either
(A) “incumbent directors”, as defined below, shall cease for any reason to constitute at least a majority of the members of the Board (for these purposes, an “incumbent director” shall mean any member of the Board as of the
Effective Date, and any successor of a incumbent director whose election, or nomination for election by the Company’s shareholders was approved by at least a majority of the current directors then on the Board), or (B) at any meeting of
the shareholders of the Company called for the purpose of electing directors, a majority of the persons nominated by the Board for election as directors shall fail to be elected; 
 (iii) Consummation of a merger or consolidation of the Company (A) in which the Company is not the continuing or surviving
corporation (other than a consolidation or merger with a wholly-owned subsidiary of the Company in which all shares of Common Stock outstanding immediately prior to the effectiveness thereof are changed into or exchanged for common stock of the
subsidiary) or (B) pursuant to which all shares of Common Stock are converted 
  

 14 

 into cash, securities or other property, except in either case, a consolidation or merger of the Company
in which the holders of the shares of Common Stock immediately prior to the consolidation or merger have, directly or indirectly, at least a majority of the shares of Common Stock of the continuing or surviving corporation immediately after such
consolidation or merger or in which the Board immediately prior the merger or consolidation would, immediately after the merger or consolidation, constitute a majority of the board of directors of the continuing or surviving corporation; or

 (iv) Consummation of a plan of complete liquidation of the Company. 
 (v) The consummation of a sale or other disposition (in one transaction or a series of transactions) of all or substantially all of the
assets of the Company. 
 17. Nontransferability. Each Benefit granted under the Plan to a participant (other than a Stock Award for
which there are no transfer restrictions) shall not be transferable otherwise than by will or the laws of descent and distribution, and shall be exercisable, during the participant’s lifetime, only by the participant. In the event of the death
of a participant, each Stock Option or Stock Appreciation Right theretofore granted to him or her shall be exercisable during such period after his or her death as the Committee shall in its discretion set forth in the Benefit Agreement at the date
of grant, subject to the restrictions set forth in Sections 6 and 7 herein, and then only by the executor or administrator of the estate of the deceased participant or the person or persons to whom the deceased participant’s rights under the
Stock Option or Stock Appreciation Right shall pass by will or the laws of descent and distribution. Notwithstanding the foregoing, at the discretion of the Committee, a Benefit other than an Incentive Stock Option may permit the transferability of
a Benefit (i) by a participant solely to the participant’s spouse, siblings, parents, children and grandchildren or a charitable organization that is exempt under Section 501(c)(3) of the Code or to trusts for the benefit of such
persons or partnerships, corporations, limited liability companies or other entities owned solely by such persons, including trusts for such persons, subject to any restriction included in the Benefit Agreement or to the participant’s former
spouse in accordance with a domestic relations order, (ii) by a participant who is a non-employee director of the Company to the entity that employs such participant or to its affiliate. 
 18. Fair Market Value. For purposes of this Plan and any Benefits awarded hereunder, Fair Market Value shall be the average of the high and low
prices of the Common Stock on the date of calculation (or on the last preceding trading date if Common Stock was not traded on such date) if the Common Stock is readily tradeable on a national securities exchange or other market system, and if the
Common Stock is not readily tradeable, Fair Market Value shall mean the amount determined in good faith by the Committee as the fair market value of the Common Stock upon the reasonable application of a reasonable valuation method. 
 19. Withholding. All payments or distributions of Benefits made pursuant to the Plan shall be net of any amounts required to be withheld pursuant
to applicable federal, state and local tax-withholding requirements at the minimum statutory 
  

 15 

 withholding rates. Notwithstanding the foregoing, if the Company proposes or is required to distribute Common Stock
pursuant to the Plan, it may require the recipient to remit to it or to the corporation that employs such recipient an amount sufficient to satisfy such tax withholding requirements prior to the delivery of any certificates for such Common Stock. In
the discretion of the Committee, such remittance may be made by tendering shares of Common Stock of the Company then owned by the participant, or providing the Company with a notarized statement attesting to the number of shares owned, in which case
upon verification by the Company, the Company would issue to the participant only the number of incremental shares above the amount of the withholding obligation to which the participant is entitled in respect of the Benefit. In lieu thereof, the
Company or the employing corporation shall have the right to withhold the amount of such taxes from any other sums due or to become due from such corporation to the recipient as the Committee shall prescribe. The Committee may, in its discretion and
subject to such rules as it may adopt (including any as may be required to satisfy applicable tax and/or non-tax regulatory requirements), permit an optionee, or an award or right holder to pay all or a portion of the federal, state and local
withholding taxes arising in connection with any Benefit consisting of shares of Common Stock by electing to have the Company withhold shares of Common Stock having a Fair Market Value equal to the amount of tax to be withheld at the minimum
statutory withholding rates. 
 20. Tenure. A participant’s right, if any, to continued employment or service of Company or any
of its subsidiaries as an officer, employee, or otherwise, shall not be enlarged or otherwise affected by his or her designation as a participant under the Plan. 
 21. Unfunded Plan. Participants shall have no right, title, or interest whatsoever in or to any investments that the Company may make to aid it in meeting its obligations under the Plan. Nothing contained in
the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any participant, beneficiary, legal representative or any other person. To the
extent that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the
general funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in the Plan. 
 22. No Fractional Shares. No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan or any Benefit. The Committee
shall determine whether cash, or Benefits, or other property shall be issued or paid in lieu of fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated. 
 23. Amendment, Termination, Duration. The Committee may, at any time and from time to time, alter, amend, modify, suspend, or terminate the
Plan and any Benefit in whole or in part; provided, however, that, without the prior approval of the Company’s shareholders, Stock Options or Stock Appreciation Rights and any Other Stock Based Award that is not a Full Value Benefit
which is issued under the Plan will 
  

 16 

 not be repriced, replaced, or regranted through cancellation or by lowering the exercise price or grant price of a
previously granted Benefit or cancelled while the per share exercise price is lower than the Fair Market Value of a share of Common Stock on the date of such cancellation in exchange for a cash payment, and no amendment of the Plan shall be made
without shareholder approval if shareholder approval is required by law, regulation, or stock exchange rule; and provided, further, no Benefit may be amended if such amendment is prohibited by the applicable terms of the Benefit Agreement. No
Benefit shall be granted under the Plan more than ten years after the Effective Date. After the Plan is terminated in accordance with this Section 23, no Benefits may be granted but any Benefit previously granted shall remain outstanding in
accordance with the terms and conditions of the Plan and the Benefit Agreement. 
 24. Governing Law. This Plan, Benefits granted
hereunder and actions taken in connection herewith shall be governed and construed in accordance with the laws of the State of Delaware (regardless of the law that might otherwise govern under applicable Delaware principles of conflict of laws).

 25. Effective Date. The Plan shall be effective as of the date the Company emerges from the bankruptcy it filed under title 11,
chapter 11 of the United States Code (the “Effective Date”). 
  

 17

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