Document:

EX-10.1

 Exhibit 10.1 

SECURITIES EXCHANGE AGREEMENT 

THIS SECURITIES EXCHANGE AGREEMENT (the “Agreement”) is made and entered into as of September 1, 2013 by and between
USMD Holdings, Inc., a Delaware corporation (the “Company”) and the person signing this Agreement as “Investor.” 

R E C I T A L S: 

WHEREAS, USMD Hospital at Arlington, L.P., a Texas limited partnership (“USMD Arlington”) has issued units of Class P limited
partnership interests (the “Class P Units”) representing 20.5632% of the partnership interests of USMD Arlington; 

WHEREAS, the Class P Units are owned by the limited partners listed on Schedule A attached hereto, and have been valued by an
independent valuation firm to have a fair market value, net of debt and adjusted for working capital, of $27,869,305 (the “Valuation”); 

WHEREAS, the Company desires to acquire all of Class P Units in exchange for 5% convertible subordinated notes due 2019 with an aggregate
principal balance of $27,869,305 million, the form of such notes attached as Exhibit B to that certain Confidential Private Placement Memorandum dated July 1, 2013 (the “Offering Memorandum”); 

WHEREAS, Investor owns the number of Class P Units listed beside Investor’s name on Schedule A attached hereto (the
“Investor’s Units”); and 
 WHEREAS, Investor desires to convey to the Company, and Company desires to acquire from
Investor, all of the Investor’s Units in exchange for a 5% convertible subordinated note due 2019 from the Company with an aggregate principal balance equal to Investor’s pro rata portion of the Valuation as adjusted to reflect changes in
USMD Arlington’s debt and working capital. 
 A G R E E M E N T: 

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants contained in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 
 Section 1. Purchase and
Sale. Subject to the terms and the conditions set forth in this Agreement and on the basis of the representations, warranties and agreements contained herein, Investor does hereby sell, assign, transfer, convey and deliver to the Company all
of the Investor’s Units, as set forth beside the Investor’s name in the column entitled “Class P Units” in Schedule A attached hereto, and the Company does hereby purchase, acquire and accept from Investor all of the
Investor’s Units, free and clear of any liens or encumbrances. 
 Section 2. Consideration. In consideration
for the purchase of the Investor’s Units, the Company shall issue a 5% convertible subordinated note due 2019 (the “Note”) with principal balance equal to the amount set forth beside the Investor’s name in the column
entitled “Principal Amount of Note” in Schedule A attached hereto as such amount is adjusted to reflect changes in USMD Arlington’s debt and working capital. 

 Section 3. Closing. 

(a) The closing (the “Closing”) of the transactions contemplated by this Agreement (the
“Transaction”) shall take place by facsimile or email transmission or by overnight mail on the date hereof contemporaneously with the execution and delivery of this Agreement (the “Closing Date”). At the Closing,
each party shall deliver to the other party such bills of sale, instruments of assignment, transfer and conveyance and similar documents as are necessary or desirable to effectuate the Transaction. Each party shall cause to be prepared, executed and
delivered all other documents required to be delivered by such party pursuant to this Agreement and all other appropriate and customary documents as the other party or its counsel may reasonably request for the purpose of consummating the
Transaction. All actions taken at the Closing shall be deemed to have been taken simultaneously at the time the last of any such actions is taken or completed. 

(b) Closing Deliveries of Investor. At the Closing, Investor shall deliver or cause to be delivered to the Company all
of the following: 
  

	 	(i)	the Subordination Agreement, in substantially the form attached hereto as Exhibit A (the “Subordination Agreement”), executed by Investor; 

 

	 	(ii)	if Investor is an entity, a duly executed officer’s certificate, dated on or before the Closing Date, in form and substance reasonably satisfactory to the Company, certifying that all the necessary corporation
actions have been taken to approve the Transaction and the transfer of the Investor’s Units, and attaching copies of such resolutions; 

  

	 	(iii)	a duly executed officer’s certificate of USMD Arlington, dated on or before the Closing Date, in form and substance reasonably satisfactory to the Company, certifying that all necessary corporate actions have been
taken to approve the Transaction and the transfer of the Investor’s Units, such actions including necessary approvals by the general partner and a majority of the Class P executive committee members of USMD Arlington of the Transaction, and
attaching copies of such resolutions; and 

  

	 	(iv)	such other documents and other instruments of transfer and conveyance as may reasonably be requested by the Company, each in form and substance reasonably satisfactory to the Company and its counsel, as may be necessary
to transfer to the Company the Investor’s Units, duly executed by Investor. 

 (c) Closing Deliveries
of the Company. At the Closing, the Company shall deliver or cause to be delivered to Investor all of the following: 
  

	 	(i)	the Note; 

  
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	 	(ii)	the Subordination Agreement, duly executed by the Company and all of the other parties thereto except Investor; 

  

	 	(iii)	a duly executed officer’s certificate, dated on or before the Closing Date, in form and substance reasonably satisfactory to Investor, certifying that all the necessary corporation actions have been taken to
approve the Transaction and the issuance of the Note, and attaching copies of such resolutions; and 

  

	 	(iv)	such other documents and other instruments of transfer and conveyance as may reasonably be requested by Investor, each in form and substance reasonably satisfactory to Investor and its counsel, as may be necessary to
issue the Note and to transfer to the Company the Investor’s Units, duly executed by the Company. 

 Section 4.
Representations and Warranties of Company. The Company hereby represents and warrants to Investor as of the Closing Date as follows: 

(a) The Company is a corporation duly organized, validly existing, and in good standing under the laws of the State of
Delaware. 
 (b) The Company has all requisite corporate power and authority to enter into and perform this Agreement and
consummate the Transaction. This Agreement has been duly and validly executed and delivered by Company and is the legal, valid, and binding obligation of the Company, enforceable in accordance with its terms, except as enforceability may be limited
by bankruptcy, insolvency or similar laws affecting the rights of creditors generally and by the availability of certain equitable remedies. 

(c) The execution, delivery, and performance of this Agreement by the Company do not and will not violate or conflict with any
law, rule or regulation or any order, writ, injunction, or decree of any governmental authority or arbitrator, and do not and will not conflict with, result in a breach of, or constitute a default under the provisions of any agreement or instrument
to which the Company is a party or by which the Company is bound. 
 (d) The Company is acquiring the Class P Units for its
own account and for investment purposes only and has no present intention, contract, undertaking, agreement or arrangement to sell or otherwise transfer or dispose of any of the Class P Units. 

(e) The Company is a limited partner in USMD Arlington and, as such, is fully informed as to the financial condition of USMD
Arlington and the risks associated with an investment in USMD Arlington. The Company acknowledges that Investor is making no representation or warranty regarding the affairs of USMD Arlington or the value of the Class P Units. 

  
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 Section 5. Representations and Warranties of Investor. Investor represents and
warrants to the Company as of the Closing Date as follows: 
 (a) Investor is the sole legal and beneficial owner of
the Investor’s Units and has good and lawful title to the Investor’s Units, free and clear of any lien, security interest, encumbrance or claim or any right or option on the part of any third party to purchase or otherwise acquire the
Investor’s Units or any part thereof. 
 (b) If Investor is an entity, Investor is an entity duly organized, validly
existing, and in good standing under the laws of its state of formation. 
 (c) Investor has the capacity and the full right
and lawful power and authority to enter into and perform this Agreement and consummate the Transaction. This Agreement has been duly and validly executed and delivered by Investor and is the legal, valid, and binding obligation of Investor,
enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the rights of creditors generally and by the availability of certain equitable remedies. 

(d) The execution, delivery and performance of this Agreement by Investor do not and will not violate or conflict with any law,
rule or regulation or any order, writ, injunction or decree of any governmental authority or arbitrator, and do not and will not conflict with, result in a breach of or constitute a default under the provisions of any agreement or instrument to
which Investor is a party or by which Investor or the Investor’s Units are bound. 
 (e) Investor has received, read and
understands the Offering Memorandum describing the offering by the Company of the Note, and all exhibits thereto. Investor is basing his, her or its decision to invest solely on the Offering Memorandum and all exhibits thereto, and on the advice of
his, her or its legal counsel, accountants and financial advisors. 
 (f) Investor understands that an investment in the
Notes involves substantial risks, including those risks set forth in the Offering Memorandum in the section entitled “Risk Factors” and can bear and is willing to accept the economic risk of losing his, her or its entire investment in the
Notes (including the shares of common stock into which the Notes may be converted). 
 (g) Investor’s overall commitment
to non-liquid investments is, and after his, her or its investment in the Notes will be, reasonable in relation to his, her or its net worth and current needs and he, she or it has adequate means of providing for his, her or its financial
requirements, both current and anticipated, and has no need for liquidity in this investment. 
 (h) Investor has such
knowledge and experience in business and financial matters as to be capable of evaluating the merits and risks of an investment in the Notes (including the shares of common stock into which the Notes may be converted). 

  
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 (i) Investor is acquiring the Notes for his, her or its own account and for
investment purposes only and has no present intention, contract, undertaking, agreement or arrangement to sell or otherwise transfer or dispose of any Notes. 

(j) Investor is an “accredited investor” as defined in Rule 501 of Regulation D of the Securities Act of 1933, as
amended, by reason of being: 
  

	 	(i)	A natural person (not an entity) whose individual net worth, or joint net worth with his or her spouse, excluding the net equity value of the individual’s primary residence, at the time of his or her purchase
exceeds $1,000,000; 

  

	 	(ii)	A natural person (not an entity) who (i) had an individual income in excess of $200,000 in each of the preceding two years, or (ii) had joint income with his or her spouse in excess of $300,000 in each of
those years, and has a reasonable expectation of reaching the same income level in the current year; 

  

	 	(iii)	A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities of the Company being offered, whose purchase is directed by a person who has such knowledge and
experience in financial and business matters that he or she is capable of evaluating the merits and risks of the prospective investment in the Company; 

  

	 	(iv)	A director or executive officer of the Company; or 

  

	 	(v)	An entity in which all the equity owners are accredited investors. 

 For purposes of
determining “accredited investor” status, the term “net worth” means the excess of total assets at fair market value, excluding the home (and its mortgage), over total liabilities. In determining income, “individual
income” means gross income as reported for federal income tax purposes. 
 Section 6. Indemnification. Each party
understands and acknowledges that the exchange of the Notes for the Investor’s Units is based upon the representations and warranties of both parties set forth in this Agreement. Each party agrees to indemnify, defend and hold harmless the
other party and the other party’s officers, directors, managers, partners, employees, representatives and agents from and against any and all loss, damage, liability or expense (including costs and reasonable attorneys’ fees) such parties
may incur by reason of, or in connection with, any misrepresentation made by the indemnifying party in this Agreement or elsewhere, any breach by the indemnifying party of the representations or warranties set forth in this Agreement or elsewhere,
or the failure by the indemnifying party to fulfill any of his, her or its covenants or agreements set forth in this Agreement or elsewhere. 

Section 7. Assignment; Binding Effect. Neither this Agreement nor any of the rights, interests or obligations under this
Agreement shall be assigned, in whole or in part, by operation of law or otherwise by either party without the prior written consent of the other party. Any purported assignment without such consent shall be void. Subject to the preceding sentences,
this Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and assigns. 

  
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 Section 8. Notices. Any notice or communication under this Agreement must be
in writing and given by (a) deposit in the United States mail, addressed to the party to be notified, postage prepaid, and registered or certified with return receipt requested, (b) delivery in person or by courier service providing
evidence of delivery, or (c) transmission by telecopy providing evidence of transmission. Each notice or communication that is mailed, delivered, or transmitted in the manner described above shall be deemed sufficiently given, served, sent, and
received, in the case of mailed notices, on the third business day following the date on which it is mailed and, in the case of notices delivered by hand, courier service, or telecopy, at such time as it is delivered to the addressee (with the
delivery receipt or the affidavit of messenger being evidence of such delivery) or at such time as delivery is refused by the addressee upon presentation. Any notice or communication under this Agreement must be addressed, in the case of the
Investor, as set forth on the signature page of this Agreement, and in the case of the Company, to the Secretary of the Company at the Company’s principal office. Either party may change its address for notice by written notice given to the
other party to this Agreement. 
 Section 9. Governing Law. This Agreement shall be interpreted and construed in
accordance with, under, and governed by, the laws of the State of Texas. The parties agree that any litigation directly or indirectly relating to this Agreement must be brought before and determined by a court of competent jurisdiction within
Tarrant County, Texas, and the parties hereby agree to waive any rights to object to, and hereby agree to submit to, the jurisdiction of such courts. 

Section 10. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes
be deemed an original and all of which shall constitute the same instrument, but only one of which need be produced. Facsimile execution and delivery of this Agreement is legal, valid and binding for all purposes. 

Section 11. Expenses. Each party will bear the fees and expenses incurred by it in connection with the Transaction. 

Section 12. Amendments. This Agreement may be amended, modified or supplemented only by a written instrument executed by
the parties to this Agreement. 
 Section 13. Severability. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable
provision never comprised a part of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this
Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as part of this Agreement, a provision as similar in its terms to such illegal, invalid or unenforceable provision as may be
possible and be legal, valid and enforceable. 

  
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 Section 14. Entire Agreement. This Agreement (together with the documents
referenced herein) embodies the entire agreement and understanding between the parties to this Agreement with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings relating to the subject matter of
this Agreement. 
 (Signature page follows.) 

  
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 IN WITNESS WHEREOF, the parties have caused this Securities Exchange Agreement to be duly
executed by the respective authorized signatories as of the date first indicated above. 
  

			
	 HOLDINGS:

	
	USMD Holdings, Inc., a Delaware corporation
		
	By:	 	 
	Name:	 	John House
	Its:	 	Chief Executive Officer

  

					
	 INVESTOR:

	
	If an individual:
		
	Signature:	 	 

  

			
	Printed Name:	 	 
		
	Address:	 	 
		 	 
		 	 

  

			
	Social Security No.:	 	 

  

			
	If an entity:
		
	Name of entity:	 	 

  

			
	Signature:	 	 
		
	Printed Name:	 	 
		
	Title:	 	 
		
	Address:	 	 
		 	 
		 	 

 
			
		
	Taxpayer ID No.:	 	 

 Signature Page – Securities Exchange Agreement 

 Schedule A 

List of Investors, Class P Units and Principal Amount of Note 
  

													
	 Holder of Class P Units in USMD Arlington
	  	Class P
Units	 	  	Original
Principal
Amount of
Note	 	  	Adjusted
Principal
Amount of
Note	 
	 Arlington Surgical Partners, Ltd.
	  	 	36,816	  	  	 	4,989,672	  	  	 	4,990,041	  
		  				  				  	  
	  
	 
	 AOB Surgical Group, Ltd.
	  	 	28,735	  	  	 	3,894,455	  	  	 	3,894,742	  
		  				  				  	  
	  
	 
	 Frederick Todd, MD
	  	 	22,449	  	  	 	3,042,513	  	  	 	3,042,737	  
		  				  				  	  
	  
	 
	 Arlington Neurosurgical Association
	  	 	26,041	  	  	 	3,529,337	  	  	 	N/A	  
		  				  				  	  
	  
	 
	 Jeffrey Heitkamp, MD
	  	 	26,041	  	  	 	3,529,337	  	  	 	3,529,597	  
		  				  				  	  
	  
	 
	 Michael McCullough, MD
	  	 	3,591	  	  	 	486,688	  	  	 	486,724	  
		  				  				  	  
	  
	 
	 Jacob Rosenstein, MD
	  	 	52,082	  	  	 	7,058,673	  	  	 	7,059,194	  
		  				  				  	  
	  
	 
	 James Ward, MD
	  	 	4,490	  	  	 	608,530	  	  	 	608,575	  
		  				  				  	  
	  
	 
	 Ralph Wiegman, MD
	  	 	1,796	  	  	 	243,412	  	  	 	243,430	  
		  				  				  	  
	  
	 
	 Marian Zinnante, MD
	  	 	3,591	  	  	 	486,688	  	  	 	486,724	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  	 	205,632	  	  	 	27,869,305	  	  	 	24,341,764	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Schedule A – Securities Exchange Agreement 

 Exhibit A 

Form of Subscription Agreement 

(See attached.)EX-10.2

 Exhibit 10.2 
 THE GYMBOREE CORPORATION 
 2013 GYMBOREE CHINA PHANTOM EQUITY INCENTIVE
PLAN 
  

	1.	DEFINED TERMS 

 Exhibit
A, which is incorporated by reference, defines the terms used in the Plan and sets forth certain operational rules related to those terms. 
  

	2.	PURPOSE 

 The Plan has
been established to advance the interests of the Company by providing for the grant to Participants of incentive Awards. 
  

	3.	ADMINISTRATION 

 The
Administrator has discretionary authority, subject only to the express provisions of the Plan, to interpret the Plan; determine eligibility for and grant Awards; determine, modify or waive the terms and conditions of any Award; prescribe forms,
rules and procedures; and otherwise do all things necessary to carry out the purposes of the Plan. Determinations of the Administrator made under the Plan will be conclusive and will bind all parties. 

 

	4.	LIMITS ON AWARDS UNDER THE PLAN 

 (a)     Number of Units. Awards for a maximum of 1,000,000 Units may be issued under the Plan. Fractional Units may not be issued under the Plan. Units that are forfeited
by a Participant shall again be available for grant under the Plan.  
 (b)     Type of
Awards. Units awarded under the Plan are intended to represent a hypothetical interest in the equity value in Gymboree China. Each Award gives the holder thereof the conditional right to receive, in accordance with and subject to the
provisions of the Plan and the Award, a specified interest in the value of the Pool. For the avoidance of doubt, no shares of Stock will be delivered under the Plan and no holder of an Award shall, by virtue thereof, have any rights as a stockholder
of Gymboree China or the Company or any of their respective Affiliates. 
  

	5.	ELIGIBILITY AND PARTICIPATION 

 The Administrator will select Participants from among those key Employees and directors of, and consultants and advisors to, the Company and its subsidiaries who, in the opinion of the Administrator, are
in a position to make a significant contribution to the success of the Company or any of its Affiliates. 
  

	6.	RULES APPLICABLE TO AWARDS 

(a)     Award Provisions. The Administrator will determine the terms of all Awards, subject to the
limitations provided herein. By accepting (or, under such rules as the 

 
Administrator may prescribe, being deemed to have accepted) an Award, the Participant shall be deemed to have agreed to the terms of the Award and the Plan. 

(b)     Transferability. No Awards may be transferred other than by will or by the laws of descent and
distribution, except as permitted by the Administrator. 
 (c)     Vesting, Conditional
Vesting, etc. The Administrator may determine the time or times at which an Award will vest or conditionally vest and/or become payable. Without limiting the foregoing, the Administrator may at any time
accelerate the vesting (including the conditional vesting) of an Award, subject to continued compliance of the Award with the requirements for exemption from Section 409A, to the extent applicable. Unless the Administrator expressly provides
otherwise, the following rules will apply if a Participant’s Employment ceases: 
 (1) Immediately upon the
cessation of the Participant’s Employment, each Unit that is then held by the Participant or by the Participant’s permitted transferees, if any, to the extent not already vested or conditionally vested, as applicable, will immediately be
forfeited. 
 (2) Subject to (3) below, each Unit that is vested or conditionally vested, as applicable, will
remain outstanding until the date set forth in the Award. 
 (3) All Units (whether or not vested and/or
conditionally vested) held by a Participant or the Participant’s permitted transferees, if any, immediately prior to the cessation of the Participant’s Employment will immediately be forfeited upon such cessation of Employment if the
termination is for Cause or occurs in circumstances that in the sole discretion of the Administrator would have constituted grounds for the Participant’s Employment to be terminated for Cause. 

(d)     Payment Event. Each Award is intended to be exempt from Section 409A as a “short-term
deferral” within the meaning of Treasury regulations §1.409A-1(b)(4), and will be paid at the time and in the form provided in the applicable Award. 
 (e)     Additional Limitations. The Administrator may cancel, rescind, withhold or otherwise limit or restrict any vested, conditionally vested or unvested Award or any
payment in respect of an Award at any time (i) if the Participant is not in compliance with all applicable provisions of the Award agreement and the Plan, (ii) if the Participant breaches any agreement with the Company or its Affiliates
with respect to non-competition, non-solicitation or confidentiality, (iii) if the Participant engages in activities that, in the sole discretion of the Administrator, are competitive with the business of the Company, Gymboree China or their
respective Affiliates or (iv) to the extent required by applicable law. 
 (f)
    Taxes. Payments under an Award shall be subject to and reduced by all applicable tax withholdings. 

  
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 (g)     Rights Limited. Nothing in the Plan will be
construed as giving any person the right to continued Employment with the Company or its Affiliates, or any rights as a stockholder. The loss of existing or potential profit in Awards will not constitute an element of damages in the event of
termination of Employment for any reason, even if the termination is in violation of an obligation of the Company or any Affiliate to the Participant. 
 (h)     Coordination with Other Plans. Awards under the Plan may be granted in tandem with, or in satisfaction of or substitution for, other Awards under the Plan or
awards made under other compensatory plans or programs of the Company or its subsidiaries. 
 (i)
    Section 409A. Each Award may contain such terms as the Administrator determines and shall be construed and administered to comply with the requirements for exemption from Section 409A or, if the Award is
not exempt, to comply with the requirements of Section 409A. 
 (j)     Value of Pool.
In determining the value of the Pool for purposes of the Plan (including, without limitation, following a Payment Event arising as a result of a Sale of Gymboree Global or a Global IPO), the Administrator’s good faith determination shall be
binding on all persons; provided, however, that in connection with a Payment Event involving the Sale of Stock, the fair market value of the Pool shall be determined based on the aggregate value of such Stock in the transaction, as determined by the
Administrator. Notwithstanding anything to the contrary in the Plan or any Award agreement thereunder, the Value of the Pool will be determined as of the date of a Payment Event; provided, however, that, with respect to Units that have not
conditionally vested as of the date of the Payment Event, the Administrator may adjust the remaining Value of the Pool allocable to such Units to take into account any subsequent decreases in the value of the Stock following such Payment Event.

 (k)     Maximum Term. No Awards may be made after ten (10) years from the date of
the Plan’s adoption, but previously granted Awards may continue beyond that date in accordance with their terms. 
  

	7.	ADJUSTMENT PROVISIONS 

 In
the event of a change in the Gymboree China or Gymboree Global capital structure or to take into account distributions to stockholders or any other event, the Administrator may make appropriate adjustments to the maximum number of Units specified in
Section 4(a) or to Units that are associated with Awards then outstanding or subsequently granted. 
  

	8.	AMENDMENT AND TERMINATION 

The Administrator may at any time or times amend the Plan or any outstanding Award for any purpose which may at the time be permitted by
law, and may at any time terminate the Plan as to any future grants of Awards; provided that the Administrator may not, without the Participant’s consent, alter the terms of an Award so as to affect materially and adversely the

  
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Participant’s rights under the Award, unless otherwise provided in the Plan or the Administrator expressly reserved the right to do so at the time the Award was granted. 

 

	9.	OTHER COMPENSATION ARRANGEMENTS 

 The existence of the Plan or the grant of any Award will not in any way affect the Company’s right to Award a person bonuses or other compensation in addition to Awards under the Plan. 

 

	10.	MISCELLANEOUS 

 (a)
    Waiver of Jury Trial. By accepting an Award under the Plan, each Participant waives any right to a trial by jury in any action, proceeding or counterclaim concerning any rights under the Plan and any Award, or
under any amendment, waiver, consent, instrument, document or other agreement delivered or which in the future may be delivered in connection therewith, and agrees that any such action, proceedings or counterclaim shall be tried before a court and
not before a jury. By accepting an Award under the Plan, each Participant certifies that no officer, representative, or attorney of the Company has represented, expressly or otherwise, that the Company would not, in the event of any action,
proceeding or counterclaim, seek to enforce the foregoing waivers. 
 (b)     Limitation of
Liability. Notwithstanding anything to the contrary in the Plan, neither the Company, nor any Affiliate, nor the Administrator, nor any person acting on behalf of the Company, any Affiliate, or the Administrator, will be liable to any
Participant or to the estate or beneficiary of any Participant or to any other holder of an Award by reason of any acceleration of income, or any additional tax (including any interest and penalties), asserted by reason of the failure of an Award to
satisfy the requirements for exemption from Section 409A or otherwise to satisfy Section 409A or otherwise asserted with respect to the Award including, but not limited to, by reason of Section 4999 of the Code. 

 

	11.	ESTABLISHMENT OF SUB-PLANS 

The Administrator may from time to time establish one or more sub-plans under the Plan for purposes of satisfying applicable blue sky,
securities or tax laws of various jurisdictions. The Administrator will establish such sub-plans by adopting supplements to the Plan setting forth (i) such limitations on the Administrator’s discretion under the Plan as the Administrator
deems necessary or desirable and (ii) such additional terms and conditions not otherwise inconsistent with the Plan as the Administrator deems necessary or desirable. All supplements adopted by the Administrator will be deemed to be part of the
Plan, but each supplement will apply only to Participants within the affected jurisdiction and the Company will not be required to provide copies of any supplement to Participants in any jurisdiction that is not affected. 

  
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	12.	GOVERNING LAW 

 Except as
otherwise provided by the express terms of an Award agreement or under a sub-plan described in Section 11, the provisions of the Plan and of Awards under the Plan and all claims or disputes arising out of our based upon the Plan or any Award
under the Plan or relating to the subject matter hereof or thereof will be governed by and construed in accordance with the domestic substantive laws of the State of Delaware without giving effect to any choice or conflict of laws provision or rule
that would cause the application of the domestic substantive laws of any other jurisdiction. 

  
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 EXHIBIT A 
 Definition of Terms 
 The following terms, when used in the Plan,
will have the meanings and be subject to the provisions set forth below: 
 “Administrator”: The compensation
committee of the Board of Directors of the Company (or the Board of Directors of the Company if it so designates itself).  
 “Affiliate”: With respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with,
such Person. 
 “Award”: A right denominated in Units entitling the holder upon payment or settlement,
subject to the terms of the Plan and an applicable Award agreement, to receive an amount (payable in cash) with respect to the Award determined by multiplying (i) the value of the Pool, determined in accordance with Section 6(i) by
(ii) (A) the number of Units subject to the holder’s Award, divided by (B) 1,000,000. 

“Cause”: In the case of any Participant who is party to an employment or severance-benefit agreement that contains a
definition of “Cause,” the definition set forth in such agreement will apply with respect to each Award to such Participant under the Plan for so long as such agreement is in effect. In the case of any other Participant, “Cause”
will mean (i) a material failure of the Participant to perform the Participant’s duties and responsibilities to the Company or its Affiliates or gross negligence in the performance of such duties and responsibilities; (ii) the
commission by the Participant of a felony or a crime involving moral turpitude; (iii) a significant violation by the Participant of the code of conduct of the Company or its Affiliates or of any statutory or common law duty of loyalty to the
Company or its Affiliates; (iv) a material breach of any of the terms of the Plan or any Award made under the Plan, or of the terms of any other agreement between the Company or Affiliates and the Participant; or (v) other misconduct by
the Participant that could be expected to be harmful to the business, interests or reputation of the Company or its Affiliates. 
 “China IPO”: An initial public offering of the shares of Gymboree China or any successor thereto or parent or subsidiary corporation thereof, except to the extent such initial public
offering would constitute a Global IPO. 
 “Code”: The U.S. Internal Revenue Code of 1986, as from time
to time amended and in effect, or any successor statute as from time to time in effect. 
 “Company”:
The Gymboree Corporation, a Delaware corporation. 
 “Employee”: Any person who is employed by the
Company or by a subsidiary of the Company. 

  
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 “Employment”: A Participant’s employment or other service relationship
with the Company and its Affiliates. Employment will be deemed to continue, unless the Administrator expressly provides otherwise, so long as the Participant is employed by, or otherwise is providing services in a capacity described in
Section 5 to the Company or one of its Affiliates. If a Participant’s employment or other service relationship is with an Affiliate and that entity ceases to be an Affiliate of the Company, the Participant’s Employment will be deemed
to have terminated when the entity ceases to be a subsidiary of the Company unless the Participant transfers Employment to the Company or one of its remaining Affiliates. 

“Global IPO”: An initial public offering of the shares of Gymboree Global or any parent or subsidiary thereof that
directly or indirectly holds interests in both Gymboree China and the Company. 
 “Gymboree China”:
Gymboree Hong Kong Limited or any successor entity thereto.  
 “Gymboree Global”: Gymboree Holding,
Ltd. or any successor entity through which the Sponsors directly hold substantially all their interests in both Gymboree China and the Company. 
 “Investment Amount”: $12 million, increased by the amount (denominated in U.S. dollars) of any additional equity investment, whether direct or indirect, by the Sponsors in Gymboree
China. 
 “IPO”: A China IPO or a Global IPO. 

“Marketable Securities”: Any equity securities received by the Sponsors in respect of Stock or any equity securities
previously received by the Sponsors in substitution or exchange for such Stock (but excluding, for the avoidance of doubt, Stock or any equity security issued by Gymboree China in substitution or exchange for such Stock), in any such case, only to
the extent such class of securities is then traded on a national securities exchange and, on the date of such determination (which may be the date of receipt or at a later date when such equity securities are still held by the Sponsors (or any of
their subsidiaries), all of such equity securities so held (1) are not subject to a contractual lock up or similar agreement restricting transferability, (2) may be distributed or resold without volume limitation or other restrictions on
transfer under Rule 144 under the Securities Act of 1933, as amended (or any successor provision thereof), including without application of paragraphs (c), (e), (f) and (h) of such Rule 144, and (3) are not subject to any other
prohibitions or material restrictions on transfer under applicable securities laws (including, for example, possession of material nonpublic information which, if used in purchasing or selling such equity securities, would result in a violation of
Rule 10b-5 promulgated under the Securities Exchange Act of 1934, as amended). 
 “Multiple of
Money”: A fraction equal to (i) the aggregate amount of (1) cash received by the Sponsors, whether by reason of sales, distributions or dividends with respect to Stock held by the Sponsors, plus (2) the fair market value (as
determined by the Administrator) of Marketable Securities, divided by (ii) the Investment Amount. 

  
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 “Participant”: A person who is granted an Award under the Plan.

 “Payment Event”: (i) the occurrence of a Sale; (ii) the first date following the consummation
of a China IPO on which the Sponsors have sold, directly or indirectly, for cash or Marketable Securities equity securities of Gymboree China or its publicly-traded parent or subsidiary, as applicable, having a value equal to more than one-half
(determined relative to the total value of all equity securities in such entity) of the value of the equity securities beneficially owned by them as of immediately prior to the China IPO; or (iii) the first date following the consummation of a
Global IPO on which the Sponsors have sold, directly or indirectly, for cash or Marketable Securities equity securities of Gymboree Global or its publicly-traded parent or subsidiary, as applicable, having a value equal to more than one-half
(determined relative to the total value of all equity securities in such entity) of the value of the equity securities beneficially owned by them as of immediately prior to the Global IPO. Notwithstanding anything to the contrary herein, no Payment
Event shall be deemed to occur unless and until such time as (x) the aggregate amount of (A) all cash, plus (B) the fair market value of all Marketable Securities (as determined by the Administrator) received by the Sponsors in
respect of the interests in Gymboree China held, directly or indirectly, by them as of immediately prior to a Sale, China IPO or Global IPO, as applicable, exceeds the aggregate amount payable under the Plan and (y) the Sponsors have achieved a
Multiple of Money of at least 2.0. By way of example, if the Sponsors hold 60% of the equity value of Gymboree China as of immediately prior to a China IPO, a Payment Event will occur on the date following the China IPO on which, following direct or
indirect sales by the Sponsors of the equity securities of Gymboree China or its publicly-traded parent or subsidiary, as applicable, for cash or Marketable Securities, the Sponsors directly or indirectly own less than 30% of the equity value of
Gymboree China; provided that the aggregate amount of all cash plus the fair market value of all Marketable Securities (as determined by the Administrator) received by the Sponsors in respect of the interests in Gymboree China
held, directly or indirectly, by them as of immediately prior to the China IPO has exceeded the aggregate amount payable under the Plan; provided further that a Multiple of Money of at least 2.0 has been achieved. The
Administrator will determine in its good faith discretion whether a Payment Event has occurred for purposes of the Plan and all Awards. 
 “Person”: A corporation, partnership, joint venture, trust, association, estate, joint stock company, limited liability company or any other organization of any kind. 

“Plan”: The Gymboree Corporation 2013 Gymboree China Phantom Equity Incentive Plan as from time to time amended and in
effect. 
 “Pool”: An amount of cash equal to 10% of the amount by which the sum of
(i) (A) the amount of cash and (B) the fair market value of Marketable Securities, in each case, received by the Sponsors in respect of shares of Stock they beneficially own exceeds (ii) the Investment Amount.  

“Sale”: (i) A direct or indirect sale or other disposition by the Sponsors of all or substantially of the shares of
capital stock of Gymboree China or Gymboree Global beneficially owned by them for cash or Marketable Securities, or (ii) a sale or other disposition by Gymboree 

  
 8 

 
China or Gymboree Global of all or substantially all of its assets for cash or Marketable Securities. 
 “Section 409A”: Section 409A of the Code. 

“Sponsors”: Bain Fund X, L.P. (together with its Permitted Transferees (as such term is defined in the Stockholders
Agreement)). 
 “Stock”: Common Stock of Gymboree China. 

“Stockholders Agreement”: The Amended and Restated Stockholders Agreement dated as of December 23, 2011, among
Giraffe Holding, Inc. and certain affiliates and stockholders, as amended or modified from time to time. 

“Unit”: An interest in the Pool, the aggregate number of which represents the Participant’s relative share. 

  
 9

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