Document:

EX10.3

		

			Exhibit 10.3

		

		
			GENESIS HEALTHCARE, INC.
2015 OMNIBUS EQUITY INCENTIVE PLAN
		

			
	
			
				 Section 1.
			

			
	
			
			Purpose of Plan.

		
			The name of the Plan is the Genesis Healthcare, Inc.  2015 Omnibus Equity Incentive Plan. The purposes of the Plan are to provide an additional incentive to selected employees, directors, independent contractors and consultants of the Company or its Affiliates whose contributions are essential to the growth and success of the Company’s business, in order to strengthen the commitment of such persons to the Company and its Subsidiaries, motivate such persons to faithfully and diligently perform their responsibilities and attract and retain competent and dedicated persons whose efforts will result in the long-term growth and profitability of the Company. To accomplish such purposes, the Plan provides that the Company may grant Options, Share Appreciation Rights, Restricted Shares, Restricted Stock Units, Other Share-Based Awards, Cash Awards or any combination of the foregoing.
		

			
	
			
				 Section 2.
			

			
	
			
			Definitions.

		
			For purposes of the Plan, the following terms shall be defined as set forth below:
		

			
	
			
				 (a)
			“Administrator” means the Board, or, if and to the extent the Board does not administer the Plan, the Committee in accordance with Section 3 hereof.

			
	
			
				 (b)
			“Affiliate” means a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Person specified. An entity shall be deemed an Affiliate of the Company for purposes of this definition only for such periods as the requisite ownership or control relationship is maintained. In addition, FC-GEN and all of its affiliates shall be deemed an affiliate of the Company.

			
	
			
				 (c)
			“Applicable Laws” means the applicable requirements under U.S. federal and state corporate laws, U.S. federal and state securities laws, including the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any other country or jurisdiction where Awards are granted under the Plan, as are in effect from time to time.

			
	
			
				 (d)
			“Award” means any Option, Share Appreciation Right, Restricted Share, Restricted Stock Unit, Other Share-Based Award or Cash Award granted under the Plan.

			
	
			
				 (e)
			“Award Agreement” means any written agreement, contract or other instrument or document evidencing an Award.

			
	
			
				 (f)
			“Beneficial Owner” (or any variant thereof) has the meaning defined in Rule 13d-3 under the Exchange Act.

			
	
			
				 (g)
			“Board” means the Board of Directors of the Company

		 

		

			

		

 

		

			 

		

			
	
			
				 (h)
			“Bylaws” mean the bylaws of the Company, as may be amended and/or restated from time to time.

			
	
			
				 (i)
			“Cash Award” means cash awarded under Section 11 of the Plan, including cash awarded as a bonus or upon the attainment of Performance Goals or otherwise as permitted under the Plan. 

			
	
			
				 (j)
			“Cause” shall have the meaning assigned to such term in any individual employment or severance agreement or Award Agreement with the Participant or, if no such agreement exists or if such agreement does not define “Cause,” Cause means (i)  conviction of, or plea of guilty or nolo contendere to, by the Participant to any felony (whether or not involving the Company or any other member of the Company Group, as defined below) or any other crime involving moral turpitude which subjects, or if generally known, would subject, any member of the Company Group to public ridicule or embarrassment, (ii) fraud or other willful misconduct  in respect of Participant's duties of the office held by Participant, or (ii)  Participant’s continued willful and intentional failure to substantially comply with the reasonable mandates of the Company commensurate with his/her position after a written demand for substantial compliance is delivered to him/her by the Company, which demand specifically identifies the mandate(s) with which the Company believes he/she has not substantially complied, and which failure is not substantially corrected by him/her within 10 days after receipt of such demand. Any voluntary termination of Employment by the Participant in anticipation of an involuntary termination of the Participant’s employment for Cause shall be deemed to be a termination for Cause. 

			
	
			
				 (k)
			 “Change in Capitalization” means any (i) merger, amalgamation, consolidation, reclassification, recapitalization, spin-off, spin-out, repurchase or other reorganization or corporate transaction or event, (ii) special or extraordinary dividend or other extraordinary distribution (whether in the form of cash, Common Stock or other property), stock split, reverse stock split, share subdivision or consolidation,  (iii) combination or exchange of shares or (iv) other change in corporate structure, which, in any such case, the Administrator determines, in its sole discretion, affects the Shares such that an adjustment pursuant to Section 5 hereof is appropriate.

			
	
			
				 (l)
			“Change in Control” means Change in Control of the Company or Change in Control of FC-GEN. Notwithstanding the foregoing, for each Award that constitutes deferred compensation under Section 409A of the Code, and to the extent required to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, a Change in Control shall be deemed to have occurred under the Plan with respect to such Award only if a change in the ownership or effective control of the Company or FC-GEN, as applicable, or a change in ownership of a substantial portion of the assets of the Company or FC-GEN, as applicable, shall also be deemed to have occurred under Section 409A of the Code.

			
	
			
				 (m)
			“Change in Control of the Company” means an event set forth in any one of the following paragraphs shall have occurred:

			
	
			
				 (1)
			any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person or any securities acquired directly from the Company or any Affiliate thereof) representing 50% 
		

		 

		

			

		

 

		

			 

		

			or more of the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (i) of paragraph (3) below; or

			
	
			
				 (2)
			there is consummated a merger or consolidation of the Company or any direct or indirect Subsidiary with any other corporation or other entity, other than (i) a merger or consolidation which results in (A) the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary, more than 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation and (B) the directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended (“Incumbent Directors”) continuing immediately thereafter to represent at least a majority of the board of directors of the Company, the entity surviving such merger or consolidation or, if the Company or the entity surviving such merger or consolidation is then a Subsidiary, the ultimate parent thereof, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company or its Affiliates) representing 50% or more of the combined voting power of the Company’s then outstanding securities; or 

			
	
			
				 (3)
			the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than (A) a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least fifty percent (50%) of the combined voting power of the voting securities of which are owned by stockholders of the Company following the completion of such transaction in substantially the same proportions as their ownership of the Company immediately prior to such sale or (B) a sale or disposition of all or substantially all of the Company’s assets immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the entity to which such assets are sold or disposed or, if such entity is a subsidiary, the ultimate parent thereof.

		
			Notwithstanding the foregoing, a Change in Control of the Company shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the holders of Common Stock immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions.
		

			
	
			
				 (n)
			“Change in Control of FC-GEN” means an event set forth in any one of the following paragraphs shall have occurred:

		 

		

			

		

 

		

			 

		

			
	
			
				 (1)
			any Person (other than the Company or its Affiliate) is or becomes the Beneficial Owner, directly or indirectly, of securities of  FC GEN (not including in the securities beneficially owned by such Person or any securities acquired directly from the Company or any Affiliate thereof) representing 50% or more of the combined voting power of FC-GEN’s, as applicable, then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (i) of paragraph (3) below; or

			
	
			
				 (2)
			there is consummated a merger or consolidation of  FC-GEN with any other corporation or other entity (other than the Company or any of its Affiliates), other than (i) a merger or consolidation which results in (A) the voting securities of FC-GEN, as applicable, outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company, FC-GEN or any Subsidiary thereof, more than 50% of the combined voting power of the securities of FC-GEN, as applicable, such surviving entity or any parent thereof outstanding immediately after such merger or consolidation and (B) the Incumbent Directors continuing immediately thereafter to represent at least a majority of the board of directors of the Company, the entity surviving such merger or consolidation or, if FC-GEN or the entity surviving such merger or consolidation is then a Subsidiary, the ultimate parent thereof, or (ii) a merger or consolidation effected to implement a recapitalization of FC-GEN (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of FC-GEN (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company or its Affiliates) representing 50% or more of the combined voting power of the Company’s  or FC-GEN’s then outstanding securities; or 

			
	
			
				 (3)
			the equity holders of FC-GEN  approve a plan of complete liquidation or dissolution of FC-GEN or there is consummated an agreement for the sale or disposition by FC-GEN of all or substantially all of FC-GEN’s assets, other than (A) a sale or disposition of all or substantially all of FC-GEN’s assets to an entity, at least fifty percent (50%) of the combined voting power of the voting securities of which are owned directly or indirectly by direct or indirect equityholders of the Company and FC-GEN following the completion of such transaction in substantially the same proportions as their ownership of the Company and FC-GEN immediately prior to such sale or (B) a sale or disposition of all or substantially all of FC-GEN’s assets immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the entity to which such assets are sold or disposed or, if such entity is a subsidiary, the ultimate parent thereof.

		
			Notwithstanding the foregoing, (i) a Change in Control of FC-GEN shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the holders of Common Stock and equity securities of FC-GEN (other than the Company) immediately prior to such transaction or series of transactions continue to have substantially the same direct or indirect proportionate ownership in an entity which, directly or indirectly, owns all or substantially all of the assets of FC-GEN immediately following such transaction or series of transactions and (ii) direct or indirect acquisition of additional equity interest in FC-Gen by the Company shall not result in a Change in Control.  
		

		 

		

			

		

 

		

			 

		

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

			
	
			
				 (p)
			“Committee” means any committee or subcommittee the Board may appoint to administer the Plan. Subject to the discretion of the Board, the Committee shall be composed entirely of individuals who meet the qualifications of an “outside director” within the meaning of Section 162(m) of the Code (but only to the extent necessary and desirable to maintain qualification of Awards as “performance-based compensation” under Section 162(m) of the Code), a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act and any other qualifications required by the applicable stock exchange on which the Common Stock is traded. If at any time or to any extent the Board shall not administer the Plan, then the functions of the Administrator specified in the Plan shall be exercised by the Committee. Except as otherwise provided in the Certificate of Incorporation or Bylaws of the Company, any action of the Committee with respect to the administration of the Plan shall be taken by a majority vote at a meeting at which a quorum is duly constituted or unanimous written consent of the Committee’s members.

			
	
			
				 (q)
			“Common Stock” means the Class A common stock, par value $0.001 per share, of the Company.

			
	
			
				 (r)
			“Company” means Genesis Healthcare, Inc., a Delaware corporation (or any successor company, except as the term “Company” is used in the definition of “Change in Control” above).

			
	
			
				 (s)
			“Covered Employee” has the meaning ascribed to the term “covered employee” set forth in Section 162(m) of the Code.

			
	
			
				 (t)
			“Disability” means, with respect to any Participant, that such Participant (i) as determined by the Administrator in its sole discretion, is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company or an Affiliate thereof. 

			
	
			
				 (u)
			“Effective Date” has the meaning set forth in Section 19 hereof.

			
	
			
				 (v)
			“Eligible Recipient” means an employee, director, independent contractor or consultant of the Company or any Affiliate of the Company who has been selected as an eligible participant by the Administrator; provided,  however, to the extent required to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, an Eligible Recipient of an Option or a Stock Appreciation Right means an employee, non-employee director, independent contractor or consultant of the Company or any Affiliate of the Company with respect to whom the Company is an “eligible issuer of service recipient stock” within the meaning of Section 409A of the Code.

		 

		

			

		

 

		

			 

		

			
	
			
				 (w)
			“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

			
	
			
				 (x)
			“Exercise Price” means, with respect to any Option, the per share price at which a holder of such Option may purchase Shares issuable upon exercise of such Award, and, with respect to a Share Appreciation Right, the base price per share of such Share Appreciation Right, which, with respect to Options and Share Appreciation Rights, in any event will not be less than one hundred percent (100%) of the Fair Market Value of a related share of Common Stock on the date of grant. 

			
	
			
				 (y)
			“Fair Market Value” of a share of Common Stock or another security as of a particular date shall mean the fair market value  as determined by the Administrator in its sole discretion; provided,  however, (i) if the Common Stock or other security is admitted to trading on a national securities exchange, the fair market value  on any date shall be the closing sale price reported  on such date, or if no shares were traded on such date, on the last preceding date for which there was a sale of a share of Common Stock on such exchange, or (ii) if the Common Stock or other security is then traded in an over-the-counter market, the fair market value  on any date shall be the average of the closing bid and  asked prices for such share in such over-the-counter market for the last preceding date on which there was a sale of such share in such market.

			
	
			
				 (z)
			“FC GEN” means FC-GEN Operations Investment LLC, a Delaware Limited Liability Company.

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

			
	
			
				 (bb)
			“Nonqualified Stock Option” shall mean an Option that is not designated as an ISO.

			
	
			
				 (cc)
			“Option”  means an option to purchase shares of Common Stock granted pursuant to Section 7 hereof.  The term “Option” as used in the Plan includes the terms “Nonqualified Stock Option” and “ISO.”

			
	
			
				 (dd)
			“Other Share-Based Award” means a right or other interest granted pursuant to Section 10 hereof that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, the Common Stock, including, but not limited to, unrestricted Shares, restricted stock units, dividend equivalents or performance units, each of which may be subject to the attainment of Performance Goals or a period of continued employment or other terms or conditions as permitted under the Plan.

			
	
			
				 (ee)
			“Participant” means any Eligible Recipient selected by the Administrator, pursuant to the Administrator’s authority provided for in Section 3 below, to receive grants of Awards, and, upon his or her death, his or her successors, heirs, executors and administrators, as the case may be.

			
	
			
				 (ff)
			“Performance Goals” means performance goals based on one or more of the following criteria: (i) earnings, including one or more of operating income, net operating income, 
		

		 

		

			

		

 

		

			 

		

			earnings before or after taxes, earnings before or after interest, depreciation, amortization, adjusted EBITDA, economic earnings, or extraordinary or special items or book value per share (which may exclude nonrecurring items); (ii) pre-tax income or after-tax income; (iii) earnings per share (basic or diluted); (iv) operating profit; (v) revenue, revenue growth or rate of revenue growth; (vi) return on assets (gross or net), return on investment, return on capital, or return on equity; (vii) returns on sales or revenues; (viii) operating expenses; (ix) share price appreciation; (x) cash flow, cash flow per share, free cash flow, cash flow return on investment (discounted or otherwise), net cash provided by operations, or cash flow in excess of cost of capital; (xi) implementation or completion of critical projects or processes; (xii) cumulative earnings per share growth; (xiii) operating margin or profit margin; (xiv) cost targets, reductions and savings, productivity and efficiencies; (xv) strategic business criteria, consisting of one or more objectives based on meeting specified market penetration, geographic business expansion, customer satisfaction, quality of patient care, employee satisfaction, human resources management, supervision of litigation, information technology, and goals relating to acquisitions, divestitures, joint ventures and similar transactions, and budget comparisons; (xvi) personal professional objectives, including any of the foregoing performance goals, the implementation of policies and plans, the negotiation of transactions, the development of long term business goals, formation of joint ventures, research or development collaborations, and the completion of other corporate transactions; (xvii) any combination of, or a specified increase in, any of the foregoing, (xviii) economic value created; and (xix) share price or total shareholder return.  Where applicable, the Performance Goals may be expressed in terms of attaining a specified level of the particular criteria or the attainment of a percentage increase or decrease in the particular criteria, and may be applied to one or more of the Company or any Affiliate thereof, or a division or strategic business unit of the Company or any Affiliate thereof, or may be applied to the performance of the Company relative to a market index, a group of other companies or a combination thereof, all as determined by the Committee. The Performance Goals may include a threshold level of performance below which no payment shall be made (or no vesting shall occur), levels of performance at which specified payments shall be made (or specified vesting shall occur), and a maximum level of performance above which no additional payment shall be made (or at which full vesting shall occur). Each of the foregoing Performance Goals shall be determined in accordance with generally accepted accounting principles (to the extent applicable) and shall be subject to certification by the Committee; provided, that, to the extent permitted by Section 162(m) of the Code to the extent applicable, the Committee shall make equitable adjustments to the Performance Goals in recognition of unusual or non-recurring events affecting the Company or any Affiliate thereof or the financial statements of the Company or any Affiliate thereof, in response to changes in Applicable Laws or regulations, or to account for items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the disposal of a segment of a business or related to a change in accounting principles.  Notwithstanding the foregoing, the Committee shall take any actions pursuant to this paragraph to the extent necessary and desirable to maintain qualification of Awards as performance-based compensation under Section 162(m) of the Code.

			
	
			
				 (gg)
			“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any Subsidiary thereof, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary thereof, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a 
		

		 

		

			

		

 

		

			 

		

			corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of shares of the Company.

			
	
			
				 (hh)
			“Plan” means this 2015 Omnibus Equity Incentive Plan.

			
	
			
				 (ii)
			“Restricted Shares” means Shares granted pursuant to Section 9 below subject to certain restrictions that lapse at the end of a specified period (or periods) and/or upon attainment of specified performance objectives.

			
	
			
				 (jj)
			“Restricted Stock Unit” means the right granted pursuant to Section 9 hereof to receive a Share at the end of a specified restricted period (or periods) of time and/or upon attainment of specified performance objectives.

			
	
			
				 (kk)
			“Shares” means Common Stock reserved for issuance under the Plan, as adjusted pursuant to the Plan, and any successor (pursuant to a merger, amalgamation, consolidation or other reorganization) security.

			
	
			
				 (ll)
			“Share Appreciation Right” means the right pursuant to an Award granted under Section 8 below to receive an amount equal to the excess, if any, of (i) the aggregate Exercise Price, as of the date such Award or portion thereof is surrendered, of the Shares covered by such Award or such portion thereof, over (ii) the aggregate Exercise Price of such Award or such portion thereof.

			
	
			
				 (mm)
			“Subsidiary” means, with respect to any Person, as of any date of determination, any other Person as to which such first Person owns or otherwise controls, directly or indirectly, more than 50% of the voting shares or other similar interests or a sole general partner interest or managing member or similar interest of such other Person. An entity shall be deemed a Subsidiary of the Company for purposes of this definition only for such periods as the requisite ownership or control relationship is maintained.

			
	
			
				 Section 3.
			

			
	
			
			Administration.

			
	
			
				 (a)
			The Plan shall be administered by the Administrator and shall be administered in accordance with the requirements of Section 162(m) of the Code (but only to the extent necessary and desirable to maintain qualification of Awards as performance-based compensation under Section 162(m) of the Code) and, to the extent applicable, Rule 16b-3 under the Exchange Act (“Rule 16b-3”). 

			
	
			
				 (b)
			Pursuant to the terms of the Plan, the Administrator, subject, in the case of any Committee, to any restrictions on the authority delegated to it by the Board, shall have the power and authority, without limitation:

			
	
			
				 (1)
			to select those Eligible Recipients who shall be Participants;

			
	
			
				 (2)
			to determine whether and to what extent Options, Share Appreciation Rights, Restricted Shares, Restricted Stock Units, Cash Awards, Other Share-Based Awards or a combination of any of the foregoing, are to be granted hereunder to Participants;

		 

		

			

		

 

		

			 

		

			
	
			
				 (3)
			to determine the number of Shares to be covered by each Award granted hereunder;

			
	
			
				 (4)
			to determine the terms and conditions, not inconsistent with the terms of the Plan, of each Award granted hereunder (including, but not limited to, (i) the restrictions applicable to Restricted Shares or Restricted Stock Units and the conditions under which restrictions applicable to such Restricted Shares or Restricted Stock Units shall lapse, (ii) the performance goals and periods applicable to Awards, (iii) the Exercise Price of each Award, (iv) the vesting schedule applicable to each Award, (v) the number of Shares or amount of cash or other property subject to each Award and (vi) subject to the requirements of Section 409A of the Code (to the extent applicable), any amendments to the terms and conditions of outstanding Awards, including, but not limited to, extending the exercise period of such Awards and accelerating the vesting schedule of such Awards);

			
	
			
				 (5)
			to determine the terms and conditions, not inconsistent with the terms of the Plan, which shall govern all written instruments evidencing Awards;

			
	
			
				 (6)
			to determine the Fair Market Value in accordance with the terms of the Plan;

			
	
			
				 (7)
			to determine the duration and purpose of leaves of absence which may be granted to a Participant without constituting termination of the Participant’s employment for purposes of Awards granted under the Plan;

			
	
			
				 (8)
			to adopt, alter and repeal such administrative rules, regulations, guidelines and practices governing the Plan as it shall from time to time deem advisable;

			
	
			
				 (9)
			to construe and interpret the terms and provisions of, and supply or correct omissions in, the Plan and any Award issued under the Plan (and any Award Agreement relating thereto), and to otherwise supervise the administration of the Plan and to exercise all powers and authorities either specifically granted under the Plan or necessary and advisable in the administration of the Plan; and

			
	
			
				 (10)
			to prescribe, amend and rescind rules and regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws or for qualifying for favorable tax treatment under applicable foreign laws, which rules and regulations may be set forth in an appendix or appendixes to the Plan.

			
	
			
				 (c)
			Subject to Section 5, neither the Board nor the Committee shall have the authority to reprice or cancel and regrant any Award at a lower exercise, base or purchase price or cancel any Award with an exercise, base or purchase price in exchange for cash, property or other Awards without first obtaining the approval of the Company’s shareholders.  

			
	
			
				 (d)
			All decisions made by the Administrator pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, including the Company and the Participants. No member of the Board or the Committee, nor any officer or employee of the Company or any Subsidiary thereof acting on behalf of the Board or the Committee, shall be personally liable for any action, omission, determination or interpretation taken or made in good 
		

		 

		

			

		

 

		

			 

		

			faith with respect to the Plan, and all members of the Board or the Committee and each and any officer or employee of the Company and of any Subsidiary thereof acting on their behalf shall, to the maximum extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, omission, determination or interpretation.

			
	
			
				 Section 4.
			

			
	
			
			Shares Reserved for Issuance Under the Plan.

			
	
			
				 (a)
			Subject to Section 5 hereof, the number of Shares of Common Stock that are reserved and available for issuance pursuant to Awards granted under the Plan shall be equal to the sum of (i) 19,000,000  Shares,  (ii) the number of shares of Common Stock reserved for issuance, but with respect to which awards have not been made, under the Amended and Restated Skilled Healthcare Group, Inc. 2007 Incentive Award Plan (the “Prior Plan); and (iii) the number of shares of Common Stock subject to awards outstanding on the Effective Date under the Prior Plan, which, in each case, are forfeited, cancelled, exchanged or surrendered or if an Award otherwise terminates or expires without a distribution of shares to the Participant.  Notwithstanding the foregoing, shares of Common Stock surrendered or withheld under the Prior Plan as payment of either the exercise price of an award (including shares of Common Stock otherwise underlying an award of a share appreciation right that are retained by the Company to account for the exercise price of such share appreciation right) and/or withholding taxes in respect of an award shall not be reserved for issuance under the Plan. Upon the Effective Date, no further awards shall be made under the Prior Plan.

			
	
			
				 (b)
			Notwithstanding anything in this Plan to the contrary, and subject to the adjustment as provided by Section 5, from and after such time as the Plan is subject to 162(m) of the Code:

			
	
			
				 (1)
			No individual (including an individual who is likely to be a Covered Employee) will be granted Options or Share Appreciation rights in in excess of 2,000,000 Shares during any single fiscal year.

			
	
			
				 (2)
			No individual (including an individual who is likely to be a Covered employee) will be granted Restricted Shares, Restricted Stock Units or Other Share-Based Awards in excess of 1,000,000 Shares during any single fiscal year.

			
	
			
				 (3)
			The maximum Cash Award that any Covered Employee may receive with respect to a Cash Award in respect of any annual performance period is $2,500,000 and for any other performance period, such amount multiplied by a fraction, the numerator of which is the number of months in the performance period and the denominator of which is twelve. 

			
	
			
				 (c)
			Shares issued under the Plan may, in whole or in part, be authorized but unissued Shares or Shares that shall have been or may be reacquired by the Company in the open market, in private transactions or otherwise. If any Shares subject to an Award are forfeited, cancelled, exchanged or surrendered or if an Award otherwise terminates or expires without a distribution of shares to the Participant, the Shares with respect to such Award shall, to the extent of any such forfeiture, cancellation, exchange, surrender, termination or expiration, again be available for Awards under the Plan. Notwithstanding the foregoing, Shares surrendered or withheld as payment of either the Exercise Price of an Award (including Shares otherwise 
		

		 

		

			

		

 

		

			 

		

			underlying an Award of a Share Appreciation Right that are retained by the Company to account for the Exercise Price of such Share Appreciation Right) and/or withholding taxes in respect of an Award shall no longer be available for grant under the Plan.    In addition, (i) to the extent an Award is denominated in shares of Common Stock, but paid or settled in cash, the number of shares of Common Stock with respect to which such payment or settlement is made shall again be available for grants of Awards pursuant to the Plan and (ii) shares of Common Stock underlying Awards that can only be settled in cash shall not be counted against the aggregate number of shares of Common Stock available for Awards under the Plan. 

			
	
			
				 (d)
			No more than 8,500,000 Shares shall be issued pursuant to the exercise of ISOs.

			
	
			
				 Section 5.
			

			
	
			
			Equitable Adjustments.

		
			In the event of any Change in Capitalization, an equitable substitution or proportionate adjustment shall be made in (i) the aggregate number of shares of Common Stock reserved for issuance under the Plan pursuant to Section 4 and the maximum number of Shares that may be subject to Awards granted to any Participant in any calendar or fiscal year, (ii) the kind, number of securities subject to, and Exercise Price subject to outstanding Options and Share Appreciation Rights granted under the Plan, and (iii) the kind, number and purchase price of Shares or other securities or the amount of cash or amount or type of other property subject to outstanding Restricted Shares, Restricted Stock Units or Other Share-Based Awards granted under the Plan; provided,  however, that any fractional shares resulting from the adjustment shall be eliminated. Such other equitable substitutions or adjustments shall be made as may be determined by the Administrator, in its sole discretion. Without limiting the generality of the foregoing, in connection with a Change in Capitalization, the Administrator may provide, in its sole discretion, but subject in all events to the requirements of Section 409A of the Code, for the cancellation of any outstanding Award granted hereunder in exchange for payment in cash or other property having an aggregate Fair Market Value of the Shares covered by such Award, reduced by the aggregate Exercise Price or purchase price thereof, if any; provided,  however, that if the Exercise Price or purchase price of any outstanding Award is equal to or greater than the Fair Market Value of the shares of Common Stock, cash or other property covered by such Award, the Board may cancel such Award without the payment of any consideration to the Participant.  Further, without limiting the generality of the foregoing, with respect to Awards subject to foreign laws, adjustments made hereunder shall be made in compliance with applicable requirements.  Except to the extent determined by the Administrator, any adjustments to ISOs under this Section 5 shall be made only to the extent not constituting a “modification” within the meaning of Section 424(h)(3) of the Code.    The Administrator’s determinations pursuant to this Section 5 shall be final, binding and conclusive.
		

			
	
			
				 Section 6.
			

			
	
			
			Eligibility.

		
			The Participants under the Plan shall be selected from time to time by the Administrator, in its sole discretion, from those individuals that qualify as Eligible Recipients, provided,  however, that no non-employee director under the Plan shall be granted Awards in any consecutive 12-month period in respect of Shares having a Fair Market Value of more than $750,000, as measured as of the applicable grant date.
		

		 

		

			

		

 

		

			 

		

			
	
			
				 Section 7.
			

			
	
			
			Options.

			
	
			
				 (a)
			General.  Options granted under the Plan shall be designated as Nonqualified Stock Options or ISOs.  Each Participant who is granted an Option shall enter into an Award Agreement with the Company, containing such terms and conditions as the Administrator shall determine, in its sole discretion, which Award Agreement shall set forth, among other things, the Exercise Price of the Option, the term of the Option and provisions regarding exercisability of the Option, and whether the Option is intended to be an ISO or a Nonqualified Stock Option (and in the event the Award Agreement has no such designation, the Option shall be a Nonqualified Stock Option).  The provisions of each Option need not be the same with respect to each Participant.  More than one Option may be granted to the same Participant and be outstanding concurrently hereunder. Options granted under the Plan shall be subject to the terms and conditions set forth in this Section 7 and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable and set forth in the applicable Award Agreement. 

			
	
			
				 (b)
			Exercise Price. The Exercise Price of Shares purchasable under an Option shall be determined by the Administrator in its sole discretion at the time of grant, but in no event shall the exercise price of an Option be less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock on the date of grant.

			
	
			
				 (c)
			Option Term. The maximum term of each Option shall be fixed by the Administrator, but no Option shall be exercisable more than ten (10) years after the date such Option is granted. Each Option’s term is subject to earlier expiration pursuant to the applicable provisions in the Plan and the Award Agreement. Notwithstanding the foregoing, the Administrator shall have the authority to accelerate the exercisability of any outstanding Option at such time and under such circumstances as the Administrator, in its sole discretion, deems appropriate.

			
	
			
				 (d)
			Exercisability. Each Option shall be exercisable at such time or times and subject to such terms and conditions, including the attainment of pre-established performance goals, as shall be determined by the Administrator in the applicable Award Agreement. The Administrator may also provide that any Option shall be exercisable only in installments, and the Administrator may waive such installment exercise provisions at any time, in whole or in part, based on such factors as the Administrator may determine in its sole discretion. Notwithstanding anything to the contrary contained herein, an Option may not be exercised for a fraction of a share.

			
	
			
				 (e)
			Method of Exercise. Options may be exercised in whole or in part by giving written notice of exercise to the Company specifying the number of whole Shares to be purchased, accompanied by payment in full of the aggregate Exercise Price of the Shares so purchased in cash or its equivalent, as determined by the Administrator. As determined by the Administrator, in its sole discretion, with respect to any Option or category of Options, payment in whole or in part may also be made i) by means of consideration received under any cashless exercise procedure approved by the Administrator (including the withholding of Shares otherwise issuable upon exercise), (ii) in the form of unrestricted Shares already owned by the Participant which have a Fair Market Value on the date of surrender equal to the aggregate 
		

		 

		

			

		

 

		

			 

		

			exercise price of the Shares as to which such Option shall be exercised, (iii) any other form of consideration approved by the Administrator and permitted by Applicable Laws or (iv) any combination of the foregoing.

			
	
			
				 (f)
			ISOs. The terms and conditions of ISOs granted hereunder shall be subject to the provisions of Section 422 of the Code and the terms, conditions, limitations and administrative procedures established by the Administrator from time to time in accordance with the Plan.  At the discretion of the Administrator, ISOs may be granted only to an employee of the Company, its “parent corporation” (as such term is defined in Section 424(e) of the Code) or a Subsidiary. 

			
	
			
				 (1)
			ISO Grants to 10% Stockholders.  Notwithstanding anything to the contrary in the Plan, if an ISO is granted to a Participant who owns shares representing more than ten percent (10%) of the voting power of all classes of shares of the Company, its “parent corporation” (as such term is defined in Section 424(e) of the Code) or a Subsidiary, the term of the ISO shall not exceed five (5) years from the time of grant of such ISO and the Exercise Price shall be at least one hundred and ten percent (110%) of the Fair Market Value of the Shares on the date of grant.

			
	
			
				 (2)
			$100,000 Per Year Limitation For ISOs.  To the extent the aggregate Fair Market Value (determined on the date of grant) of the Shares for which ISOs are exercisable for the first time by any Participant during any calendar year (under all plans of the Company) exceeds $100,000, such excess ISOs shall be treated as Nonqualified Stock Options. 

			
	
			
				 (3)
			Disqualifying Dispositions.  Each Participant awarded an ISO under the Plan shall notify the Company in writing immediately after the date he or she makes a “disqualifying disposition” of any Share acquired pursuant to the exercise of such ISO.  A “disqualifying disposition” is any disposition (including any sale) of such Shares before the later of (i) two years after the date of grant of the ISO and (ii) one year after the date the Participant acquired the Shares by exercising the ISO.  The Company may, if determined by the Administrator and in accordance with procedures established by it, retain possession of any Shares acquired pursuant to the exercise of an ISO as agent for the applicable Participant until the end of the period described in the preceding sentence, subject to complying with any instructions from such Participant as to the sale of such shares.

			
	
			
				 (g)
			Rights as Stockholder. A Participant shall have no rights to dividends, dividend equivalents or distributions or any other rights of a stockholder with respect to the Shares subject to an Option until the Participant has given written notice of the exercise thereof, and has paid in full for such Shares and has satisfied the requirements of Section 16 hereof.

			
	
			
				 (h)
			Termination of Employment or Service.  Unless otherwise provided by the Committee or in the applicable Award Agreement:

			
	
			
				 (1)
			In the event that the employment or service of a Participant with the Company and all Affiliates thereof (including by reason of the Participant’s employer ceasing to be an Affiliate of the Company) shall terminate for any reason other than Cause, Disability, or death, (A) Options granted to such Participant, to the extent that they are exercisable at the time 
		

		 

		

			

		

 

		

			 

		

			of such termination, shall remain exercisable until the date that is ninety (90) days after such termination, on which date they shall expire, and (B) Options granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination.  Notwithstanding the foregoing, no Option shall be exercisable after the expiration of its term.

			
	
			
				 (2)
			In the event that the employment or service of a Participant with the Company and all Affiliates thereof shall terminate on account of the Disability or death of the Participant, (A) Options granted to such Participant, to the extent that they were exercisable at the time of such termination, shall remain exercisable until the date that is six (6) months after such termination, on which date they shall expire and (B) Options granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination. Notwithstanding the foregoing, no Option shall be exercisable after the expiration of its term.

			
	
			
				 (3)
			In the event of the termination of a Participant’s employment or service for Cause, all outstanding Options granted to such Participant shall expire at the commencement of business on the date of such termination.

			
	
			
				 (i)
			Other Change in Employment Status. An Option shall be affected, both with regard to vesting schedule and termination, by leaves of absence, including unpaid and un-protected leaves of absence, changes from full-time to part-time employment, partial Disability or other changes in the employment status of a Participant, in the discretion of the Administrator.

			
	
			
				 Section 8.
			

			
	
			
			Share Appreciation Rights.

			
	
			
				 (a)
			General. Share Appreciation Rights may be granted either alone (“Free Standing Rights”) or in conjunction with all or part of any Option granted under the Plan (“Related Rights”). Related Rights may be granted either at or after the time of the grant of such Option. The Administrator shall determine the Eligible Recipients to whom, and the time or times at which, grants of Share Appreciation Rights shall be made.  Each Participant who is granted a Share Appreciation Right shall enter into an Award Agreement with the Company, containing such terms and conditions as the Administrator shall determine, in its sole discretion, which Award Agreement shall set forth, among other things, the number of Shares to be awarded, the Exercise Price per Share, and all other conditions of Share Appreciation Rights. Notwithstanding the foregoing, no Related Right may be granted for more Shares than are subject to the Option to which it relates. The provisions of Share Appreciation Rights need not be the same with respect to each Participant. Share Appreciation Rights granted under the Plan shall be subject to the following terms and conditions set forth in this Section 8 and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable, as set forth in the applicable Award Agreement.

			
	
			
				 (b)
			Awards; Rights as Stockholder. A Participant shall have no rights to dividends or any other rights of a stockholder with respect to the shares of Common Stock, if any, subject to a Stock Appreciation Right until the Participant has given written notice of the exercise thereof and has satisfied the requirements of Section 16 hereof.

		 

		

			

		

 

		

			 

		

			
	
			
				 (c)
			Exercisability.

			
	
			
				 (1)
			Share Appreciation Rights that are Free Standing Rights shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator in the applicable Award Agreement.

			
	
			
				 (2)
			Share Appreciation Rights that are Related Rights shall be exercisable only at such time or times and to the extent that the Options to which they relate shall be exercisable in accordance with the provisions of Section 7 hereof and this Section 8 of the Plan.

			
	
			
				 (d)
			Payment Upon Exercise.

			
	
			
				 (1)
			Upon the exercise of a Free Standing Right, the Participant shall be entitled to receive up to, but not more than, that number of Shares equal in value to the excess of the Fair Market Value as of the date of exercise over the Exercise Price per share specified in the Free Standing Right multiplied by the number of Shares in respect of which the Free Standing Right is being exercised.

			
	
			
				 (2)
			A Related Right may be exercised by a Participant by surrendering the applicable portion of the related Option. Upon such exercise and surrender, the Participant shall be entitled to receive up to, but not more than, that number of Shares equal in value to the excess of the Fair Market Value as of the date of exercise over the Exercise Price specified in the related Option multiplied by the number of Shares in respect of which the Related Right is being exercised. Options which have been so surrendered, in whole or in part, shall no longer be exercisable to the extent the Related Rights have been so exercised.

			
	
			
				 (3)
			Notwithstanding the foregoing, the Administrator may determine to settle the exercise of a Share Appreciation Right in cash (or in any combination of Shares and cash).

			
	
			
				 (e)
			Termination of Employment or Service.  Unless otherwise provided by the Committee or in the applicable Award Agreement:

			
	
			
				 (1)
			In the event that the employment or service of a Participant with the Company and all Affiliates thereof (including by reason of the Participant’s employer ceasing to be an Affiliate of the Company) shall terminate for any reason other than Cause, Disability, or death, (A) Share Appreciation Rights granted to such Participant, to the extent that they are exercisable at the time of such termination, shall remain exercisable until the date that is ninety (90) days after such termination, on which date they shall expire, and (B) Share Appreciation Rights granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination.  Notwithstanding the foregoing, no Share Appreciation Right shall be exercisable after the expiration of its term.

			
	
			
				 (2)
			In the event that the employment or service of a Participant with the Company and all Affiliates thereof shall terminate on account of the Disability, or death of the Participant, (A) Share Appreciation Rights granted to such Participant, to the extent that they were exercisable at the time of such termination, shall remain exercisable until the date that is six 
		

		 

		

			

		

 

		

			 

		

			(6) months after such termination, on which date they shall expire and (B) Share Appreciation Rights granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination. Notwithstanding the foregoing, no Share Appreciation Right shall be exercisable after the expiration of its term.

			
	
			
				 (3)
			In the event of the termination of a Participant’s employment or service for Cause, all outstanding Share Appreciation Rights granted to such Participant shall expire at the commencement of business on the date of such termination.

			
	
			
				 (f)
			Term.

			
	
			
				 (1)
			The term of each Free Standing Right shall be fixed by the Administrator, but no Free Standing Right shall be exercisable more than ten (10) years after the date such right is granted.

			
	
			
				 (2)
			The term of each Related Right shall be the term of the Option to which it relates, but no Related Right shall be exercisable more than ten (10) years after the date such right is granted.

			
	
			
				 (g)
			Other Change in Employment Status. Share Appreciation Rights shall be affected, both with regard to vesting schedule and termination, by leaves of absence, including unpaid and un-protected leaves of absence, changes from full-time to part-time employment, partial Disability or other changes in the employment status of a Participant, in the discretion of the Administrator.

			
	
			
				 Section 9.
			

			
	
			
			Restricted Shares and Restricted Stock Units.

			
	
			
				 (a)
			General.  Restricted Shares or Restricted Stock Units may be issued either alone or in addition to other Awards granted under the Plan. The Administrator shall determine the Eligible Recipients to whom, and the time or times at which, Restricted Shares or Restricted Stock Units shall be made.  Each Participant who is granted Restricted Shares or Restricted Stock Units shall enter into an Award Agreement with the Company, containing such terms and conditions as the Administrator shall determine, in its sole discretion, which Award Agreement shall set forth, among other things, the number of Shares to be awarded; the price, if any, to be paid by the Participant for the acquisition of Restricted Shares or Restricted Stock Units; the period of time restrictions, Performance Goals or other conditions that apply to delivery or vesting of such Awards (the “Restricted Period”); and all other conditions applicable to the Restricted Shares and Restricted Stock Units. If the restrictions, Performance Goals or conditions established by the Administrator are not attained, a Participant shall forfeit his or her Restricted Shares or Restricted Stock Units, in accordance with the terms of the grant. The provisions of the Restricted Shares or Restricted Stock Units need not be the same with respect to each Participant.

			
	
			
				 (b)
			Awards and Certificates.  Except as otherwise provided below in Section 9(c), (i) each Participant who is granted an Award of Restricted Shares may, in the Company’s sole discretion, be issued a share certificate in respect of such Restricted Shares; and (ii) any such certificate so issued shall be registered in the name of the Participant, and shall bear an 
		

		 

		

			

		

 

		

			 

		

			appropriate legend referring to the terms, conditions and restrictions applicable to any such Award.

		
			The Company may require that the share certificates, if any, evidencing Restricted Shares granted hereunder be held in the custody of the Company until the restrictions thereon shall have lapsed, and that, as a condition of any Award of Restricted Shares, the Participant shall have delivered a share transfer form, endorsed in blank, relating to the Shares covered by such Award.  Certificates for shares of unrestricted Common Stock may, in the Company's sole discretion, be delivered to the Participant only after the Restricted Period has expired without forfeiture in such Restricted Stock Award.
		

		
			With respect to Restricted Stock Units to be settled in Shares, at the expiration of the Restricted Period, share certificates in respect of the shares of Common Stock underlying such Restricted Stock Units may, in the Company’s sole discretion, be delivered to the Participant, or his legal representative, in a number equal to the number of shares of Common stock underlying the Restricted Stock Units  Award.
		

		
			Notwithstanding anything in the Plan to the contrary, any Restricted Shares or Restricted Stock Units  to be settled in Shares (at the expiration of the Restricted Period, and whether before or after any vesting conditions have been satisfied) may, in the Company’s sole discretion, be issued in uncertificated form.
		

		
			Further, notwithstanding anything in the Plan to the contrary, with respect to Restricted Stock Units, at the expiration of the Restricted Period, Shares, or cash, as applicable, shall promptly be issued (either in certificated or uncertificated form) to the Participant, unless otherwise deferred in accordance with procedures established by the Company in accordance with Section 409A of the Code, and such issuance or payment shall in any event be made within such period as is required to avoid the imposition of a tax under Section 409A of the Code.
		

			
	
			
				 (c)
			Restrictions and Conditions. The Restricted Shares or Restricted Stock Units  granted pursuant to this Section 9 shall be subject to the following restrictions and conditions and any additional restrictions or conditions as determined by the Administrator at the time of grant or, subject to Section 409A of the Code where applicable, thereafter:

			
	
			
				 (1)
			The Administrator may, in its sole discretion, provide for the lapse of restrictions in installments and may accelerate or waive such restrictions in whole or in part based on such factors and such circumstances as the Administrator may determine, in its sole discretion, including, but not limited to, the attainment of certain Performance Goals, the Participant’s termination of employment or service with the Company or any Affiliate thereof, or the Participant’s death or Disability, subject to any requirements of Section 162(m) of the Code in the case of any Award which is intended to qualify as “performance-based compensation” under Section 162(m) of the Code. Notwithstanding the foregoing, upon a Change in Control, the outstanding Awards shall be subject to Section 13 hereof.

			
	
			
				 (2)
			Except as provided in the applicable Award Agreement, the Participant shall generally have the rights of a stockholder of the Company with respect to Restricted Shares during the Restricted Period; provided,  however, that dividends declared during the Restricted 
		

		 

		

			

		

 

		

			 

		

			Period with respect to an Award that vests or becomes payable based upon the achievement of Performance Goals, shall only become payable if (and to the extent) the performance goals of  the underlying Award are achieved. Except as provided in the applicable Award Agreement, the Participant shall generally not have the rights of a stockholder with respect to Shares subject to Restricted Stock Units during the Restricted Period; provided,  however, that, subject to Section 409A of the Code, an amount equal to dividends declared during the Restricted Period with respect to the number of Shares covered by Restricted Stock Units or Restricted Shares that vest upon the achievement of Performance Goals shall, unless otherwise set forth in an Award Agreement, be paid to the Participant at the time (and to the extent) Shares in respect of the related Restricted Stock Units are delivered to the Participant or the Restricted Period with respect to the Restricted Shares that vest upon the achievement of Performance Goals expires, provided that the Participant is then providing services to the Company. Certificates for Shares of unrestricted Common Stock may, in the Company’s sole discretion, be delivered to the Participant only after the Restricted Period has expired without forfeiture in respect of such Restricted Shares or Restricted Stock Units, except as the Administrator, in its sole discretion, shall otherwise determine.

			
	
			
				 (3)
			The rights of Participants granted Restricted Shares or Restricted Stock Units upon termination of employment or service as a director, independent contractor or consultant to the Company or to any Affiliate thereof terminates for any reason during the Restricted Period shall be set forth in the Award Agreement.

			
	
			
				 (d)
			Form of Settlement.  The Administrator reserves the right in its sole discretion to provide (either at or after the grant thereof) that any Restricted Stock Unit represent the right to receive the amount of cash per unit that is determined by the Administrator in connection with the Award.

			
	
			
				 Section 10.
			

			
	
			
			Other Share-Based Awards.

		
			Other forms of Awards valued in whole or in part by reference to, or otherwise based on, Common Stock, including but not limited to dividend equivalents, may be granted either alone or in addition to other Awards (other than in connection with Options or Share Appreciation Rights) under the Plan. Any dividend or dividend equivalent awarded hereunder shall be subject to the same restrictions, conditions and risks of forfeiture as the underlying Award.  Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the individuals to whom and the time or times at which such Other Share-Based Awards shall be granted.  Each Participant who is granted an Other Share-Based Award shall enter into an Award Agreement with the Company, containing such terms and conditions as the Administrator shall determine, in its sole discretion, which Award Agreement shall set forth, among other things, the number of shares of Common Stock to be granted pursuant to such Other Share-Based Awards, or the manner in which such Other Share-Based Awards shall be settled (e.g., in shares of Common Stock, cash or other property), or the conditions to the vesting and/or payment or settlement of such Other Share-Based Awards (which may include, but not be limited to, achievement of performance criteria) and all other terms and conditions of such Other Share-Based Awards.
		

			
	
			
				 Section 11.
			

			
	
			
			Cash Awards.

		

		

		 

		

			

		

 

		

			 

		

		The Administrator may grant Awards that are denominated in, or payable to Participants solely in, cash, as deemed by the Administrator to be consistent with the purposes of the Plan, and, such Cash Awards shall be subject to the terms, conditions, restrictions and limitations determined by the Administrator, in its sole discretion, from time to time.  Awards granted pursuant to this Section 11 may be granted with value and payment contingent upon the achievement of Performance Goals.  
		

			
	
			
				 Section 12.
			

			
	
			
			Special Provisions Regarding Certain Awards.

		
			The Administrator may make Awards hereunder to Covered Employees (or to individuals whom the Administrator believes may become Covered Employees) that are intended to qualify as performance-based compensation under Section 162(m) of the Code. The exercisability and/or payment of such Awards may, to the extent required to qualify as performance-based compensation under Section 162(m) of the Code, be subject to the achievement of performance criteria based upon one or more Performance Goals and to certification of such achievement in writing by the Committee. The Committee may in its discretion reduce the amount of such Awards that would otherwise become exercisable and/or payable upon achievement of such Performance Goals and the certification in writing of such achievement, but may not increase such amounts. Any such Performance Goals shall be established in writing by the Committee not later than the time period prescribed under Section 162(m) of the Code and the regulations thereunder. Notwithstanding anything set forth in the Plan to contrary, all provisions of such Awards which are intended to qualify as performance-based compensation under Section 162(m) of the Code shall be construed in a manner to so comply. 
		

			
	
			
				 Section 13.
			

			
	
			
			Change in Control.

		
			In the event that a Change in Control occurs, then: 
		

			
	
			
				 (a)
			the restrictions (including exercise restrictions), deferral limitations, payment conditions and forfeiture conditions applicable to an Award granted under the Plan shall lapse and such Awards shall be deemed fully vested;  

			
	
			
				 (b)
			notwithstanding the foregoing, (i) any Award subject to performance conditions which are tied to a price of a share of Common Stock will only vest to the extent performance conditions are met as of the date of the Change in Control as if the date of the Change in Control was the last date of the performance period; and (ii) any Award subject to performance conditions which are not determined by reference to the price of a share of Common Stock will only vest to the extent performance conditions are on track to be met based on the performance through the date of the Change in Control, as determined in the sole discretion of the Administrator.  

		
			The Administrator shall have discretion to provide that all Options and/or Share Appreciation Rights outstanding immediately prior to such Change in Control shall expire on the effective date of such Change in Control.
		

			
	
			
				 Section 14.
			

			
	
			
			Amendment and Termination.

		

		

		 

		

			

		

 

		

			 

		

		The Board may amend, alter or terminate the Plan, but no amendment, alteration or termination shall be made that would impair the rights of a Participant under any Award theretofore granted without such Participant’s consent. Unless the Board determines otherwise, the Board shall obtain approval of the Company’s stockholders for any amendment that would require such approval in order to satisfy the requirements of Section 162(m) of the Code, any rules of the stock exchange on which the Common Stock is traded or other Applicable Law. The Administrator may amend the terms of any Award theretofore granted, prospectively or retroactively, but, subject to Section 5 of the Plan and the immediately preceding sentence, no such amendment shall materially impair the rights of any Participant without his or her consent.
		

			
	
			
				 Section 15.
			

			
	
			
			Unfunded Status of Plan.

		
			The Plan is intended to constitute an “unfunded” plan for incentive compensation. With respect to any payments not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company.
		

			
	
			
				 Section 16.
			

			
	
			
			Withholding Taxes.

		
			Each Participant shall, no later than the date as of which the value of an Award first becomes includible in the gross income of such Participant for purposes of applicable taxes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, the minimum amount of any such applicable taxes required by law to be withheld with respect to the Award.  The obligations of the Company under the Plan shall be conditional on the making of such payments or arrangements, and the Company shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to such Participant.  Whenever cash is to be paid pursuant to an Award, the Company shall have the right to deduct therefrom an amount sufficient to satisfy any applicable withholding tax requirements related thereto.  Whenever Shares or property other than cash are to be delivered pursuant to an Award, the Company shall have the right to require the Participant to remit to the Company in cash an amount sufficient to satisfy any related taxes to be withheld and applied to the tax obligations; provided, that, with the approval of the Administrator, a Participant may satisfy the foregoing requirement by either (i) electing to have the Company withhold from delivery of Shares or other property, as applicable, or (ii) by delivering already owned unrestricted shares of Common Stock, in each case, having a value not exceeding the applicable taxes to be withheld and applied to the tax obligations.  Such already owned and unrestricted shares of Common Stock shall be valued at their Fair Market Value on the date on which the amount of tax to be withheld is determined and any fractional share amounts resulting therefrom shall be settled in cash.  Such an election may be made with respect to all or any portion of the Shares to be delivered pursuant to an award.  The Company may also use any other method of obtaining the necessary payment or proceeds, as permitted by law, to satisfy its withholding obligation with respect to any Award.
		

			
	
			
				 Section 17.
			

			
	
			
			Transfer of Awards.

		
			Until such time as the Awards are fully vested and/or exercisable in accordance with the Plan or an Award Agreement, no purported sale, assignment, mortgage, hypothecation, 
		

		 

		

			

		

 

		

			 

		

		transfer, charge, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest in or lien on, any Award or any agreement or commitment to do any of the foregoing (each, a “Transfer”) by any holder thereof in violation of the provisions of the Plan or an Award Agreement will be valid, except with the prior written consent of the Administrator, which consent may be granted or withheld in the sole discretion of the Administrator. Any purported Transfer of an Award or any economic benefit or interest therein in violation of the Plan or an Award Agreement shall be null and void ab initio and shall not create any obligation or liability of the Company, and any Person purportedly acquiring any Award or any economic benefit or interest therein transferred in violation of the Plan or an Award Agreement shall not be entitled to be recognized as a holder of such Shares or other property underlying such Award. Unless otherwise determined by the Administrator in accordance with the provisions of the immediately preceding sentence, an Option or a Share Appreciation Right may be exercised, during the lifetime of the Participant, only by the Participant or, during any period during which the Participant is under a legal Disability, by the Participant’s guardian or legal representative.
		

			
	
			
				 Section 18.
			

			
	
			
			Continued Employment.

		
			Neither the adoption of the Plan nor the grant of an Award shall confer upon any Eligible Recipient any right to continued employment or service with the Company or any Affiliate thereof, as the case may be, nor shall it interfere in any way with the right of the Company or any Affiliate thereof to terminate the employment or service of any of its Eligible Recipients at any time.
		

			
	
			
				 Section 19.
			

			
	
			
			Effective Date.

		
			The Plan was adopted by the Board on March 24, 2015 and shall become effective upon      approval of the Company’s stockholders, the date of such approval is the “Effective Date”.
		

			
	
			
				 Section 20.
			

			
	
			
			Electronic Signature. 

		
			Participant’s electronic signature of an Award Agreement shall have the same validity and effect as a signature affixed by hand. 
		

			
	
			
				 Section 21.
			

			
	
			
			Term of Plan.

		
			No Award shall be granted pursuant to the Plan on or after the tenth anniversary of the Effective Date, but Awards theretofore granted may extend beyond that date.
		

			
	
			
				 Section 22.
			

			
	
			
			Securities Matters and Regulations.

			
	
			
				 (a)
			Notwithstanding anything herein to the contrary, the obligation of the Company to sell or deliver Shares with respect to any Award granted under the Plan shall be subject to all Applicable Laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Administrator. The Administrator may require, as a condition of the issuance and delivery of certificates evidencing shares of Common Stock 
		

		 

		

			

		

 

		

			 

		

			pursuant to the terms hereof, that the recipient of such shares make such agreements and representations, and that such certificates bear such legends, as the Administrator, in its sole discretion, deems necessary or advisable.  

			
	
			
				 (a)
			Each Award is subject to the requirement that, if at any time the Administrator determines that the listing, registration or qualification of Shares is required by any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the grant of an Award or the issuance of Shares, no such Award shall be granted or payment made or Shares issued, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions not acceptable to the Administrator. 

			
	
			
				 (b)
			In the event that the disposition of Shares acquired pursuant to the Plan is not covered by a then current registration statement under the Securities Act and is not otherwise exempt from such registration, such Shares shall be restricted against transfer to the extent required by the Securities Act or regulations thereunder, and the Administrator may require a Participant receiving Common Stock pursuant to the Plan, as a condition precedent to receipt of such Common Stock, to represent to the Company in writing that the Common Stock acquired by such Participant is acquired for investment only and not with a view to distribution.

			
	
			
				 Section 23.
			

			
	
			
			Section 409A of the Code.

		
			The Plan as well as payments and benefits under the Plan are intended to be exempt from, or to the extent subject thereto, to comply with Section 409A of the Code, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted in accordance therewith. Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, the Participant shall not be considered to have terminated employment or service with the Company and its Affiliates for purposes of the Plan and no payment shall be due to the Participant under the Plan or any Award until the Participant would be considered to have incurred a “separation from service” from the Company and its Affiliates within the meaning of Section 409A of the Code. Any payments described in the Plan that are due within the “short term deferral period” as defined in Section 409A of the Code shall not be treated as deferred compensation unless Applicable Law requires otherwise. Notwithstanding anything to the contrary in the Plan, to the extent that any Awards (or any other amounts payable under any plan, program or arrangement of the Company or any of its Affiliates) are payable upon a separation from service and such payment would result in the imposition of any individual tax and penalty interest charges imposed under Section 409A of the Code, the settlement and payment of such awards (or other amounts) shall instead be made on the first business day after the date that is six (6) months following such separation from service (or death, if earlier). Each amount to be paid or benefit to be provided under this Plan shall be construed as a separate identified payment for purposes of Section 409A of the Code.  The Company makes no representation that any or all of the payments or benefits described in this Plan will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment. The Participant shall be solely responsible for the payment of any taxes and penalties incurred under Section 409A.  For purposes of a deferral of compensation under the 
		

		 

		

			

		

 

		

			 

		

		Plan, in applying Treasury Regulation §1.414(c)-2 for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of section 414(c) of the Code, the language “at least 20 percent” shall be used instead of “at least 80 percent” at each place it appears in Treasury Regulation §1.414(c)-2.  
		

			
	
			
				 Section 24.
			

			
	
			
			Notification of Election Under Section 83(b) of the Code.

		
			If any Participant shall, in connection with the acquisition of shares of Common Stock under the Plan, make the election permitted under Section 83(b) of the Code, such Participant shall notify the Company of such election within ten (10) days after filing notice of the election with the Internal Revenue Service.
		

			
	
			
				 Section 25.
			

			
	
			
			No Fractional Shares.

		
			No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan. The Administrator shall determine whether cash, other Awards, or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated. 
		

			
	
			
				 Section 26.
			

			
	
			
			Beneficiary.

		
			A Participant may file with the Administrator a written designation of a beneficiary on such form as may be prescribed by the Administrator and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Participant, the executor or administrator of the Participant’s estate shall be deemed to be the Participant’s beneficiary. 
		

			
	
			
				 Section 27.
			

			
	
			
			Paperless Administration.

		
			In the event that the Company establishes, for itself or using the services of a third party, an automated system for the documentation, granting or exercise of Awards, such as a system using an internet website or interactive voice response, then the paperless documentation, granting or exercise of Awards by a Participant may be permitted through the use of such an automated system.
		

			
	
			
				 Section 28.
			

			
	
			
			Severability.

		
			If any provision of the Plan is held to be invalid or unenforceable, the other provisions of the Plan shall not be affected but shall be applied as if the invalid or unenforceable provision had not been included in the Plan. 
		

			
	
			
				 Section 29.
			

			
	
			
			Clawback.

		
			Notwithstanding any other provisions in this Plan, any Award which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the 
		

		 

		

			

		

 

		

			 

		

		Company pursuant to any such law, government regulation or stock exchange listing requirement).
		

			
	
			
				 Section 30.
			

			
	
			
			Governing Law.

		
			The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to principles of conflicts of law of such state.Ex10.4

		

			Exhibit 10.4

		

		
			GENESIS HEALTHCARE, INC.
		

		
			 
		

		
			DEFERRED COMPENSATION PLAN
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Effective October 1, 2013
		

		
			[WORKING COPY INCORPORATING ALL AMENDMENTS ADOPTED
THROUGH JULY 1, 2015]
		

		
			 
		

		 

		

			 

		

		

			 

		

 

			
	
			
				SECTION 1
			
Purpose and Administration

			
	
			
				1.1
			

			
	
			
			Name of Plan.  The plan set forth herein, and as may be amended from time to time, shall be known as the Genesis Healthcare, Inc. Deferred Compensation Plan (prior to July 1, 2015, the Genesis Healthcare LLC Deferred Compensation Plan) (this “Plan”).

			
	
			
				1.2
			

			
	
			
			Effective Date.  The effective date of this Plan is October 1, 2013.

			
	
			
				1.3
			

			
	
			
			Purpose.  The Company has established this Plan primarily for the purpose of providing deferred compensation to a select group of management or highly compensated employees of the Company and certain of its Affiliates.  This Plan is intended:

			
	
			
				(a)
			

			
	
			
			to comply with Section 409A of the Code and official guidance issued thereunder, and

			
	
			
				(b)
			

			
	
			
			to be “a plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees” within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.

		
			Notwithstanding any other provision of this Plan, this Plan shall be interpreted, operated and administered in a manner consistent with these intentions.
		

		
			The Company intends that this Plan (and any trust under this Plan as described in Section 6.2) shall be treated as unfunded for tax purposes and for purposes of Title I of ERISA.  The Plan is not intended to qualify under Code Section 401(a).  The Company’s obligations hereunder, if any, to a Participant (or to a Participant’s beneficiary) shall be unsecured and shall be a mere promise by the Company to make payments hereunder in the future.  A Participant (or the Participant’s beneficiary) shall be treated as a general unsecured creditor of the Company.
		

			
	
			
				1.4
			

			
	
			
			Plan Type.  For purposes of Section 409A of the Code, (a) any amounts deferred by a Participant pursuant to this Plan and benefits attributable thereto shall be considered an elective account balance plan under Treasury Regulation Section 1.409A‐1(c)(2)(i)(A),or as otherwise provided in the Code; and (b) any Employer Contributions credited to a Participant and any benefits attributable thereto shall be considered a nonelective account balance plan under Treasury Regulation Section 1.409A‐1(c)(2)(i)(B), or as otherwise provided by the Code.

			
	
			
				1.5
			

			
	
			
			Administration.

			
	
			
				(a)
			

			
	
			
			General.  The Plan shall be administered by the Plan Administrator.  The Plan Administrator shall serve at the pleasure of the Company’s Board of Directors and may be removed by such Board, with or without cause.  The 
		

		 

		

			A‐1

		

		

			 

		

 

			Plan Administrator, or any member of a committee serving as the Plan Administrator, may resign upon prior written notice to the Company’s Board of Directors.

		
			The Plan Administrator shall have the powers, rights and duties set forth in this Plan and shall have the power, in the Plan Administrator’s sole and absolute discretion, to determine all questions arising under this Plan, including without limitation to determine the rights of all persons with respect to this Plan, to interpret all provisions of this Plan and to remedy any ambiguities, inconsistencies, or omissions in this Plan.  A majority vote of the committee members composing the Plan Administrator shall control any decision pursuant to this Section 1.5(a).  Any decisions of the Plan Administrator shall be final and binding on all persons with respect to this Plan and the benefits provided under this Plan.
		

		
			The Plan Administrator may, from time to time, employ agents and delegate to them such administrative duties as it sees fit, and may from time to consult with counsel who may be counsel to the Company.
		

			
	
			
				(b)
			

			
	
			
			Self‐Interest of Participants.  If a Participant is serving as the Plan Administrator (either individually or as a member of a committee), the Participant may not have any right to vote or decide upon any matter relating solely to himself or herself under this Plan or to vote in any case in which his or her individual right to claim any benefit under this Plan is involved.  In such case, the Plan Administrator shall appoint a temporary substitute member to exercise all the powers of the disqualified member concerning the matter in which he or she is disqualified.

			
	
			
				(c)
			

			
	
			
			Plan Administrator Upon Change in Control.  After a Change in Control, no member of a committee serving as Plan Administrator may be removed from such committee except by a majority vote of the remaining committee members who served on the committee prior to the Change in Control, and new committee members may be added only by such a vote.  If no committee members remain, a new Plan Administrator shall be a committee composed of the five Participants with the largest balances in their Deferred Compensation Accounts hereunder on the date of the Change in Control.  After a Change in Control, no amendment shall be made to this Section 1 or other Plan provisions regarding the Plan Administrator’s authority with respect to this Plan without prior approval by the Plan Administrator.

		 

		

			A‐2

		

		

			 

		

 

			
	
			
				SECTION 2
			
Definitions

		
			For purposes of this Plan, the following words and phrases shall have the meanings set forth below, unless their context clearly requires a different meaning:
		

			
	
			
				2.1
			

			
	
			
			Affiliate.  “Affiliate” means any entity owned, or beneficially owned, directly or indirectly, by the Company.

			
	
			
				2.2
			

			
	
			
			Base Salary.  “Base Salary” means the regular base salary payable by the Company or by a Participating Employer to or for the benefit of a Participant for services performed while an Eligible Employee.

			
	
			
				2.3
			

			
	
			
			Bonus.  “Bonus” means an amount payable to an Eligible Employee under a bonus or incentive compensation plan or program of the Company or a Participating Employer, including the Genesis HealthCare LLC Incentive Compensation Plan.

			
	
			
				2.4
			

			
	
			
			Change in Control.  “Change in Control” means the occurrence, after the Effective Date, of any of the following:  (i) any person, or more than one person acting as a group within the meaning of Code Section 409A, other than a Genesis Group Member or Genesis Group Owner (in each case, as of the Effective Date), acquires, directly or indirectly, ownership of Equity Interests in the Company as a result of any acquisition, exchange, merger or other recapitalization or reorganization that, together with the Equity Interests held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the Equity Interests in the Company; (ii) a person, or more than one person acting as a group within the meaning of Code Section 409A, other than a Genesis Group Member or Genesis Group Owner (in each case as of the Effective Date), acquires (or has acquired during the 12‐month period ending on the date of the most recent acquisition), directly or indirectly, assets of the Company that have a total gross fair market value equal to or more than 50 percent of the total gross fair market value of all the assets of the Company immediately before such acquisition or acquisitions; (iii) the consummation of a merger or consolidation of the Company in which the direct or indirect owners of the Equity Interests in the Company immediately prior to such merger or consolidation would not, immediately after such merger or consolidation, own, directly or indirectly, Equity Interests representing, in the aggregate, 50 percent or more of the combined voting securities of the surviving entity in such merger or consolidation; or (iv) the approval by the Genesis Group Owners of a complete liquidation or dissolution of the Company.

			
	
			
				2.5
			

			
	
			
			Code.  “Code” means the Internal Revenue Code of 1986, as amended from time to time.    Any reference to a section of the Code includes any comparable section or sections of any future legislation that amends, supplements or supersedes that section.

		 

		

			A‐3

		

		

			 

		

 

			
	
			
				2.6
			

			
	
			
			Company.  “Company” means Genesis Healthcare, Inc., a Delaware corporation (for periods prior to July 1, 2015, Genesis HealthCare LLC, a Pennsylvania limited liability company), and its successors and assigns.

			
	
			
				2.7
			

			
	
			
			Compensation.  “Compensation” means (a) Base Salary, (b) Bonus and (c) any other compensation that is payable to a Participant for services performed for the Company or a Participating Employer and that is designated by the Plan Administrator as “Compensation” for purposes of this Plan; provided that no amount may be considered “Compensation” unless it is considered to be “wages” for purposes of federal income tax withholding.  For purposes of this Plan only, Compensation shall be calculated before reduction for any amounts deferred by the Participant pursuant to the tax‐qualified plans of the Company or an Affiliate which may be maintained under Section 401(k) or Section 125 of the Code, or pursuant to this Plan or any other non‐qualified plan which permits the voluntary deferral of compensation.

			
	
			
				2.8
			

			
	
			
			Deferral Election.  “Deferral Election” means a written irrevocable election filed by the Participant in accordance with Section 3 of this Plan.

			
	
			
				2.9
			

			
	
			
			Deferred Compensation Account.  “Deferred Compensation Account” means the bookkeeping account maintained under this Plan in the Participant’s name to reflect amounts deferred under this Plan pursuant to Section 3 (as adjusted under Section 4) and any Employer Contributions credited on behalf of the Participant pursuant to Section 3 (as adjusted under Section 4).  The Deferred Compensation Account shall be hypothetical in nature and shall be maintained for bookkeeping purposes only.  Neither this Plan nor the Deferred Compensation Account shall hold any actual funds or assets.  The Deferred Compensation Account shall consist of a Participant’s entire account balance, including his or her Fixed Period Distribution Accounts and Retirement Distribution Account.

			
	
			
				2.10
			

			
	
			
			Disabled.  A Participant shall be considered “Disabled” if:

			
	
			
				(a)
			

			
	
			
			The Participant is unable to engage in any substantially gainful activity by reason of any medically determined physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than twelve months; or

			
	
			
				(b)
			

			
	
			
			The Participant is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Participant’s employer.

			
	
			
				2.11
			

			
	
			
			Distribution Account.  “Distribution Account” means the bookkeeping account maintained to reflect amounts allocated to a Participant’s Fixed Period Distribution Accounts and Retirement Distribution Account.  Each Distribution 
		

		 

		

			A‐4

		

		

			 

		

 

			Account shall be hypothetical in nature and shall be maintained for bookkeeping purposes only.  Neither this Plan nor any Distribution Account shall hold any actual funds or assets.

			
	
			
				2.12
			

			
	
			
			Distribution Election.  “Distribution Election” means a written irrevocable election in a form prescribed by the Plan Administrator in accordance with Section 3.5 specifying the time and form of payment for certain benefits payable to the Participant pursuant to this Plan.

			
	
			
				2.13
			

			
	
			
			Earnings.  “Earnings” means the amount credited to a Participant’s Deferred Compensation Account either (i) based on the Investment Options chosen by the Participant in accordance with Sections 4.2 and 4.3 below or (ii) based on a notional fixed rate of interest as determined by the Plan Administrator in accordance with Section 4.1.  In the case of Earnings determined with reference to the Investment Options, such credits may be either positive or negative to reflect the increase or decrease in value of the applicable Investment Options in accordance with the provisions of this Plan.

			
	
			
				2.14
			

			
	
			
			Eligible Employee.  “Eligible Employee” has the meaning set forth in Section 3.1(a).

			
	
			
				2.15
			

			
	
			
			Employer Contributions.  “Employer Contributions” mean any Employer Discretionary Contributions and any Employer Matching Contributions credited to a Participant’s Deferred Compensation Account.

			
	
			
				2.16
			

			
	
			
			Employer Discretionary Contributions.  “Employer Discretionary Contributions” has the meaning set forth in Section 3.4(a).

			
	
			
				2.17
			

			
	
			
			Employer Matching Contributions.  “Employer Matching Contributions” mean any discretionary employer matching contributions credited to a Participant’s Deferred Compensation Account pursuant to Section 3.4(b).

			
	
			
				2.18
			

			
	
			
			Equity Interests.  “Equity Interests” means, with respect to any Person, any and all shares, interests, participations, rights to purchase, warrants, options, or other equivalents (however designated) of capital stock of a corporation, and any and all other equivalent ownership interests in any other Person, in each case whether now outstanding or hereafter issued.

			
	
			
				2.19
			

			
	
			
			ERISA.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.  Any reference to a section of ERISA includes any comparable section or sections of any future legislation that amends, supplements or supersedes that section.

			
	
			
				2.20
			

			
	
			
			Fixed Period Distribution Account.  “Fixed Period Distribution Account” means a bookkeeping account maintained under this Plan with respect to a Participant used solely to determine the amount payable to the Participant in accordance with Sections 3.5, 4 and 5.2 of this Plan.  Each Fixed Period Distribution Account shall be hypothetical in nature and shall be maintained for bookkeeping purposes only.  
		

		 

		

			A‐5

		

		

			 

		

 

			Neither this Plan nor any Fixed Period Distribution Account shall hold any actual funds or assets.

			
	
			
				2.21
			

			
	
			
			Genesis Group.  “Genesis Group” means the Company and its affiliates; provided that for the purposes of this definition only, the term “affiliate” means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, where “control” (including, with its correlative meanings, “controlled by” and “under common control with”) means the possession, directly or indirectly, of more than 50 percent of the total outstanding equity or voting interests in such Person, and “affiliates” for purposes of this definition shall mean such other Persons, collectively.

			
	
			
				2.22
			

			
	
			
			Genesis Group Member.  “Genesis Group Member” means a member of the Genesis Group and its successors and assigns.

			
	
			
				2.23
			

			
	
			
			Genesis Group Owner.  “Genesis Group Owner” means those Persons holding Equity Interests in FC GEN Operations Investment LLC.

			
	
			
				2.24
			

			
	
			
			In‐Service Date.  “In‐Service Date” means the January 1 or the July 1 of a year that is at least 36 months after the end of the period in which a deferred amount would otherwise be payable in the absence of the deferral.

			
	
			
				2.25
			

			
	
			
			Investment Options.  “Investment Options” means one or more of the independently established funds or indices that are identified as such by the Plan Administrator, in its sole discretion; provided that the Plan Administrator may change the Investment Options available under this Plan from time to time in the sole discretion of the Plan Administrator.

			
	
			
				2.26
			

			
	
			
			Participating Employer.  “Participating Employer” means any Affiliate that adopts this Plan in accordance with Section 7.1 and is set forth on Appendix A as amended from time to time.

			
	
			
				2.27
			

			
	
			
			Participant.  “Participant” means, subject to Section 3.1(b), an Eligible Employee who has had amounts credited to his or her Deferred Compensation Account pursuant to this Plan.

			
	
			
				2.28
			

			
	
			
			Person.  “Person” means any individual, corporation, partnership, limited liability company, trust, joint venture, governmental entity or other unincorporated entity, association or group.

			
	
			
				2.29
			

			
	
			
			Plan.  “Plan” has the meaning set forth in Section 1.1.

			
	
			
				2.30
			

			
	
			
			Plan Administrator.  “Plan Administrator” means, subject to Section 1.5(c), the committee appointed by the Company’s Board of Directors to administer this Plan pursuant to Section 1.5; provided that if no committee is appointed, then, subject to Section 1.5(c), the Plan Administrator shall be the Company.

		 

		

			A‐6

		

		

			 

		

 

			
	
			
				2.31
			

			
	
			
			Plan Year.  “Plan Year” means the calendar year.  However, the initial Plan Year shall be a short Plan Year, beginning on the Effective Date and ending on the following December 31.

			
	
			
				2.32
			

			
	
			
			Qualified Domestic Relations Order.  “Qualified Domestic Relations Order” means an order made according to state domestic relations laws for alimony, child support or the settlement of marital property rights that the Plan Administrator has determined is qualified.

			
	
			
				2.33
			

			
	
			
			Retirement Distribution Account.  “Retirement Distribution Account” means a bookkeeping account maintained under this Plan with respect to a Participant used solely to determine the amount payable to each Participant in accordance with Sections 3, 4 and 5 of this Plan, and shall consist of the amounts that are to be distributed following a Participant’s Separation from Service in the form or forms elected by the Participant in accordance with Section 3.5 of this Plan.  Each Retirement Distribution Account shall be hypothetical in nature and shall be maintained for bookkeeping purposes only.  Neither this Plan nor any Retirement Distribution Account shall hold any actual funds or assets.

			
	
			
				2.34
			

			
	
			
			Retirement Vesting Date.  “Retirement Vesting Date” means the later of the date on which a Participant reaches age 59 or the date on which that Participant has five Years of Service.

			
	
			
				2.35
			

			
	
			
			Separation from Service.  “Separation from Service” means a Participant’s  “separation from service” from the Company, and/or the applicable Participating Employer, for purposes of this Plan within the meaning of Code Section 409A.

			
	
			
				2.36
			

			
	
			
			Termination for Cause.  “Termination for Cause” means the termination of a Participant’s employment by the Company, or by the applicable Participating Employer, due to, as determined by the Plan Administrator in its sole discretion, the Participant’s gross negligence, fraud, dishonesty, or willful violation, committed by the Participant in connection with his or her employment by or association with the Company or its Affiliates, of any law or significant policy of the Company or its Affiliates that applies to the Participant.

			
	
			
				2.37
			

			
	
			
			Unforeseeable Emergency.  “Unforeseeable Emergency” means a severe financial hardship of the Participant resulting from:

			
	
			
				(a)
			

			
	
			
			sudden and unexpected illness or accident of the Participant, the Participant’s beneficiary, the Participant’s spouse, or the Participant’s dependent (as defined in Code Section 152 without respect to Section 152(b)(1), (b)(2) and (d)(1)(B));

			
	
			
				(b)
			

			
	
			
			loss of Participant’s property due to casualty; or

			
	
			
				(c)
			

			
	
			
			another similar extraordinary and unforeseeable circumstances resulting from events beyond the control of the Participant.

		

		

		 

		

			A‐7

		

		

			 

		

 

		Whether a Participant has an Unforeseeable Emergency shall be determined in the sole discretion of the Plan Administrator; provided, however, that an “Unforeseeable Emergency does not exist to the extent that the Participant’s need is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not cause severe financial hardship, or by cessation of deferrals under this Plan.
		

			
	
			
				2.38
			

			
	
			
			Valuation Date.  “Valuation Date” means each business day the financial markets are open, unless the applicable Investment Option requires a less frequent valuation.

			
	
			
				2.39
			

			
	
			
			Year of Service.  “Year of Service” means each 12‐month period of employment with the Company and its Affiliates.

			
	
			
				2.40
			

			
	
			
			Other Definitions.  In addition to the terms defined in this Section 2, other terms are defined when first used in sections of this Plan.

			
	
			
				SECTION 3
			
Eligibility, Participation, Deferral Elections, and Employer Contributions

			
	
			
				3.1
			

			
	
			
			Eligibility and Participation.

			
	
			
				(a)
			

			
	
			
			Eligibility.  Subject to the conditions and limitations of this Plan, the Company’s Board of Directors, or a committee thereof, may designate, by name, rank or title, which employees of the Company or of any Participating Employer (the “Eligible Employees”) are eligible to participate in this Plan; provided that each such employee must be a member of a select group of management or highly compensated employees of the Company or a Participating Employer as defined under ERISA or the regulations thereunder.  Designation of eligibility in a given year pursuant to this Section 3.1(a) does not guarantee such a designation in any subsequent Plan Year.

			
	
			
				(b)
			

			
	
			
			Participation.  An Eligible Employee shall become a Participant upon the first day as of which an amount is credited to a Participant’s Deferred Compensation Account.  A Participant shall remain a Participant until the entire balance of the Participant’s Deferred Compensation Account has been distributed.

			
	
			
				(c)
			

			
	
			
			Change in Status.  If the Plan Administrator, in its sole discretion, determines that a Participant no longer qualifies as a member of a select group of management employees or determines that a Participant no longer qualifies as a highly compensated employee, as determined in accordance with ERISA, the Plan Administrator may, in its sole discretion, prohibit the Participant from deferring any additional amounts under this Plan.

		 

		

			A‐8

		

		

			 

		

 

			
	
			
				3.2
			

			
	
			
			Deferral Elections.  An Eligible Employee may make a separate Deferral Election to defer receipt of each type of Compensation that may be deferred under this Plan in accordance with the rules set forth below:

			
	
			
				(a)
			

			
	
			
			General.  All Deferral Elections must be made in writing in the form prescribed by the Plan Administrator.  Each Deferral Election will be effective only when filed with the Plan Administrator by the date specified by the Plan Administrator.  Except as provided in Sections 3.2(b) and 3.2(c) below, no Deferral Elections may be made later than, and all Deferral Elections with respect to a Plan Year shall become irrevocable on, the last day of the Plan Year preceding the Plan Year in which the Compensation being deferred is earned.

			
	
			
				(b)
			

			
	
			
			Performance‐Based Compensation.  If the Plan Administrator determines that any Compensation qualifies as “performance‐based compensation” under Code Section 409A, a Deferral Election with respect to such Compensation may be filed and shall become irrevocable no later than six months before the end of the performance period with respect to which such Compensation is paid; provided that such Eligible Employee has been continuously employed by the Company from the later of the beginning of the performance period or the date on which the performance criteria for such performance‐based compensation was established, as permitted by the Plan Administrator.

			
	
			
				(c)
			

			
	
			
			First Year of Eligibility.  In the first year in which an Eligible Employee becomes eligible to participate in this Plan and is not a participant in another plan sponsored by the Company that is considered to be of a similar type, as defined in Treasury Regulation Section 1.409A‐1(c)(2)(i)(A) or (B) or as otherwise provided by the Code, the Eligible Employee may file a Deferral Election with respect to services to be performed subsequent to the election within 30 days after the date the Eligible Employee becomes eligible to participate in this Plan to the extent permitted under Code Section 409A.

			
	
			
				(d)
			

			
	
			
			Duration of Deferral Election’s Effectiveness.  A Participant’s Deferral Election with respect to a type of Compensation shall remain in effect with respect to the same type of Compensation earned in each of the following Plan Years unless and until (i) the election is revoked prior to the start of the applicable Plan Year, (ii) the Participant files a new Deferral Election with respect to that type of Compensation for a future Plan Year in accordance with Section 3.1(a) above, which election will supersede any prior Deferral Election with respect to that type of Compensation for all future Plan Years, or (iii) the Participant is no longer an Eligible Employee.

			
	
			
				(e)
			

			
	
			
			Maximum Deferrals.  The maximum amount of Base Salary a Participant may elect to defer under this Plan is 50% of the Base Salary.  The 
		

		 

		

			A‐9

		

		

			 

		

 

			maximum amount of Bonus a Participant may elect to defer under this Plan is 95% of the Bonus; provided that in no event may the maximum amount of Bonus that a Participant may elect to defer hereunder exceed the amount of the Bonus less any amount required to cover all applicable taxes and payroll deductions with respect to the Bonus.

			
	
			
				(f)
			

			
	
			
			Timing of Credits.  Amounts deferred by a Participant shall be credited to the Participant’s Deferred Compensation Account as soon as administratively practicable after the date the Compensation would have been payable to the Participant absent deferral, even if the amount would have been payable in a Plan Year subsequent to the Plan Year in which the Compensation was earned.

			
	
			
				3.3
			

			
	
			
			Cancellation of Deferral Elections.  If a Participant incurs a disability or obtains a distribution under Section 5.8 on account of an Unforeseeable Emergency during a Plan Year, the Participant’s deferrals of Compensation pursuant to Section 3.2 above shall cease for the remainder of the Plan Year in which the disability or distribution occurs and for the Plan Year immediately thereafter.  Any resumption of the Participant’s deferrals under this Plan for succeeding Plan Years shall occur only at the election of the Participant in accordance with this Section 3.  For purposes of this Section 3.3 only, “disability” means any medically determinable physical or mental impairment resulting in the service provider’s inability to perform the duties of his or her position or any substantially similar position, where such impairment can be expected to result in death or can be expected to last for a continuous period of not less than six months.

			
	
			
				3.4
			

			
	
			
			Employer Contributions.

			
	
			
				(a)
			

			
	
			
			Employer Discretionary Contributions.  The Company may, in its sole discretion, credit to the Deferred Compensation Account of any Eligible Employee an amount determined by the Company in its sole discretion (an “Employer Discretionary Contribution”) for a Plan Year.  As noted above, whether any contribution will be credited pursuant to this Section 3.4(a) is in the sole discretion of the Company, and a contribution pursuant to this Section 3.4(a) in one year will in no way guarantee such a contribution for any following year.

			
	
			
				(b)
			

			
	
			
			Employer Matching Contributions.  The Company, in its sole discretion and subject to such limits as the Company may determine, may (i) credit a contribution to a Participant’s Deferred Compensation Account to match a percentage, as determined by the Company in its sole discretion, of amounts of Base Salary, Bonus and/or other Compensation a Participant elects to defer hereunder in a Plan Year; and/or (ii) credit a contribution to a Participant’s Deferred Compensation Account in an amount that the Company would have contributed to the Participant’s account in the Company’s applicable 401(k) plan with respect to a particular year but for the compensation limit of Section 401(a)(17) of the Code, the contribution 
		

		 

		

			A‐10

		

		

			 

		

 

			limits of Section 402(g) and Section 415 of the Code, and the limits imposed by nondiscrimination testing with respect to such plan.  As noted above, whether any contribution will be credited pursuant to this Section 3.4(b) is in the sole discretion of the Company, and a contribution pursuant to this Section 3.4(b) in one year will in no way guarantee such a contribution for any following year.

			
	
			
				(c)
			

			
	
			
			Employer Contributions to Retirement Distribution Account.  All Employer Contributions, whether credited pursuant to Section 3.4(a) or (b) above, will be credited to the Participant’s Retirement Distribution Account at such times as provided by the Plan Administrator.

			
	
			
				3.5
			

			
	
			
			Distribution Elections.

			
	
			
				(a)
			

			
	
			
			In General.  All Distribution Elections must be made in writing in the form prescribed by the Plan Administrator.  Each Distribution Election will be effective only when filed with the Plan Administrator by the date specified by the Plan Administrator in accordance with this Section 3.5.

			
	
			
				(b)
			

			
	
			
			Elective Deferrals.  At the time a Participant files a Deferral Election with the Plan Administrator (and in all events before such election is irrevocable), the Participant may elect the time and form of distribution of the amounts subject to that election (and Earnings thereon) by filing a Distribution Election with the Plan Administrator in accordance with this Section 3.5(b).  Subject to paragraphs (i) and (ii) below, any election made pursuant to this Section 3.5(b) shall allocate the amounts subject to such election among the Participant’s Fixed Period Distribution Accounts and/or the Participant’s Retirement Distribution Account.

			
	
			
				(i)
			

			
	
			
			Fixed Period Distribution Accounts.  A Participant may have up to three Fixed Period Distribution Accounts with respect to each Deferral Election.  When a Participant allocates an amount to a particular Fixed Period Distribution Account, the Participant shall:

			
	
			
				(A)
			

			
	
			
			designate on the applicable Distribution Election form an In‐Service Date for such Fixed Period Distribution Account; and

			
	
			
				(B)
			

			
	
			
			designate whether the amounts credited to such account shall be distributed in

			
	
			
				(a)
			

			
	
			
			a lump sum following the applicable In‐Service Date in accordance with Section 5.2(a) below; or

			
	
			
				(a)
			

			
	
			
			a series of up to four annual installments following the applicable In‐Service Date in accordance with Section 5.2(a) below.

		

		

		 

		

			A‐11

		

		

			 

		

 

		Notwithstanding the foregoing, no amount may be credited to a Fixed Period Distribution Account in the same Plan Year in which a distribution is to be made from that account.
		

			
	
			
				(ii)
			

			
	
			
			Retirement Distribution Account.  When a Participant allocates an amount to his or her Retirement Distribution Account, the Participant shall designate on the applicable Distribution Election form whether such amount (and Earnings thereon) will be distributed in:

			
	
			
				(A)
			

			
	
			
			a lump amount following the Participant’s Separation from Service;

			
	
			
				(B)
			

			
	
			
			a series of five annual installments following the Participant’s Separation from Service; or

			
	
			
				(C)
			

			
	
			
			a series of 10 annual installments following the Participant’s Separation from Service.

			
	
			
				(c)
			

			
	
			
			Employer Contributions.  Each Plan Year, a Participant may elect the form of payment of any Employer Discretionary Contribution (and Earnings thereon) that may be credited to the Participant’s Deferred Compensation Account with respect to the following Plan Year by filing a Distribution Election form with the Plan Administrator.  No such Distribution Election may be made after, and each such Distribution Election shall become irrevocable on, the last day of the Plan Year preceding the Plan Year with respect to which the applicable Employer Contribution, if any, is credited.  A Participant’s election pursuant to this Section 3.5(c) shall designate on the applicable Distribution Election form whether the amounts subject to the election (and Earnings thereon) will be distributed in:

			
	
			
				(A)
			

			
	
			
			a lump amount following the Participant’s Separation from Service;

			
	
			
				(B)
			

			
	
			
			a series of five annual installments following the Participant’s Separation from Service; or

			
	
			
				(C)
			

			
	
			
			a series of 10 annual installments following the Participant’s Separation from Service.

			
	
			
				(d)
			

			
	
			
			Defaults in the Event of Incomplete or Inaccurate Distribution Elections.  In the event that a Participant submits a Distribution Election to the Plan Administrator that contains information which, in the sole discretion of the Plan Administrator, is incomplete or inaccurate, the Plan Administrator shall be authorized to assume the following, and such assumptions shall be communicated to the Participant:

		 

		

			A‐12

		

		

			 

		

 

			
	
			
				(i)
			

			
	
			
			If no Distribution Election is made or no Distribution Account is selected with respect to any amount subject to a Deferral Election, the Plan Administrator will allocate the applicable amount (and Earnings thereon) to the Participant’s Retirement Distribution Account to be paid in a series of five annual installments.

			
	
			
				(ii)
			

			
	
			
			If no Distribution Election is made with respect to any Employer Discretionary Contribution, the applicable Employer Discretionary Contribution (and Earnings thereon) will be distributed from the Participant’s Retirement Distribution Account in accordance with Section 5.1 of this Plan in a series of five annual installments.

			
	
			
				(iii)
			

			
	
			
			If a Participant’s Distribution Election allocates amounts among his or her Distribution Accounts (or among different distribution options within a Distribution Account) and the amounts allocated exceed 100% of the amounts subject to such election, the Plan Administrator will proportionally reduce each Distribution Account’s designated allocation(s) so that the sum of the allocated amounts equals 100% of the amounts subject to the election.

			
	
			
				(iv)
			

			
	
			
			If the Distribution Election allocates deferred compensation to a Fixed Period Distribution Account but no deferrals can be credited to such account due to the fact that benefits are being paid from that Fixed Period Distribution Account, then the improperly allocated deferred compensation (and Earnings thereon) shall be credited to the Participant’s Retirement Distribution Account to be paid in a series of five annual installments.

			
	
			
				(v)
			

			
	
			
			If no time of payment is chosen for a Fixed Period Distribution Account, the Plan Administrator will assume the Participant selected the earliest possible In‐Service Date for such account, as determined pursuant to this Section 3.5 and Sections 2.24 and 5.2.

			
	
			
				(vi)
			

			
	
			
			If no form of payment is chosen for a Fixed Period Distribution Account, the Plan Administrator will assume the Participant selected a lump‐sum distribution for such account.

		
			 
		

			
	
			
				SECTION 4

		

		 

		

			A‐13

		

		

			 

		

 

			
Deferred Compensation Accounts, Adjustment and Vesting

			
	
			
				4.1
			

			
	
			
			Deferred Compensation Accounts.  Compensation deferred by a Participant under this Plan and any Employer Matching Contributions shall be credited to the applicable Participant’s Deferred Compensation Account as provided in this Plan, and those amounts will be adjusted as provided in Section 4.2.  Any Employer Discretionary Contributions shall be credited to the applicable Participant’s Deferred Compensation Account as provided in this Plan and shall be credited with a notional fixed rate of interest, or such other method, as determined by the Plan Administrator in its sole discretion.  Separate accounts may be maintained on the books of the Company to reflect the Participant’s different Distribution Accounts and to reflect the different types of contributions allocated to each Distribution Account.

			
	
			
				4.2
			

			
	
			
			Deferral Account Adjustments and Hypothetical Investment Options.  As of each Valuation Date, the Plan Administrator shall adjust the amounts in a Participant’s Deferred Compensation Account attributable to the Participant’s Deferral Elections and corresponding Matching Contributions to reflect Earnings in the Investment Options selected by the Participant pursuant to Section 4.3 below since the prior Valuation Date.  Such Earnings on amounts in a Participant’s Deferred Compensation Account shall accrue commencing on the date an amount subject to this Section 4.2 is first credited to the account and shall continue to accrue until the entire balance in the Participant’s Deferred Compensation Account attributable to amounts subject to this Section 4.2 has been distributed.  Earnings shall be credited pursuant to this Section 4.2 based on the results that would have been achieved had the applicable amounts credited to the Deferred Compensation Account been invested as soon as practicable into the Investment Options selected by the Participant.  Nothing in this Section 4.2 or otherwise in this Plan, however, will require the Company to actually invest any amounts in such Investment Options or otherwise.

			
	
			
				4.3
			

			
	
			
			Investment Options.  The Plan Administrator shall specify procedures to allow Participants to make elections as to the deemed investment of amounts newly credited to their Deferred Compensation Accounts, as well as the deemed investment of amounts previously credited to their Deferred Compensation Accounts.  Participant selections from among the Investment Options must be made to the Plan Administrator or designated agent in accordance with the procedures established by the Plan Administrator.  Fund selections will be effective within a reasonable period of time as determined by the means used to communicate such selections and generally accepted business practices.  Elections made pursuant to this Section 4.3 may be accepted at the time and in a manner determined by the Plan Administrator.

		
			The Plan Administrator shall designate the Investment Options available for selection under this Section 4.3.  Investment Options are selected solely for purposes of determining hypothetical gains and/or losses to a Participant’s  
		

		 

		

			A‐14

		

		

			 

		

 

		bookkeeping account.  Neither this Plan nor any of the Deferred Compensation Accounts shall hold any actual funds or assets.  The Plan Administrator may change the Investment Options at its discretion.
		

			
	
			
				4.4
			

			
	
			
			Determination of Accounts.  Each Distribution Account as of each Valuation Date shall consist of the balance of the Distribution Account as of the immediately preceding Determination Date, adjusted as follows:

			
	
			
				(a)
			

			
	
			
			New Deferrals.  Each Distribution Account shall be increased by any Compensation deferred pursuant to a Deferral Election and credited to such account since such prior Valuation Date per the Participation’s election (or a default provision of this Plan in the absence of a valid or complete election).

			
	
			
				(b)
			

			
	
			
			Employer Contributions.  Each Distribution Account shall be increased by any Employer Contributions credited to such account since the prior Valuation Date as set forth in Sections 3.5(a) and (b) above.

			
	
			
				(c)
			

			
	
			
			Distributions.  Each Distribution Account shall be reduced by the amount of each benefit payment made from that account since the prior Valuation Date.  Distributions of benefits attributable to amounts other than Employer Discretionary Contributions shall be deemed to have been made proportionally from each Investment Option maintained within such account based on the proportion that such Investment Option bears to the sum of all Investment Options maintained within such Account for that Participant as of the Determination Date immediately preceding the date of payment.

			
	
			
				(d)
			

			
	
			
			Earnings.  Each Distribution Account shall be increased or decreased by the Earnings credited to such account since the prior Valuation Date as provided in Sections 4.1 and 4.2 above.

			
	
			
				4.5
			

			
	
			
			Vesting and Forfeiture.

			
	
			
				(a)
			

			
	
			
			Participant Deferrals.  A Participant shall be fully vested in the amounts attributable to the Participant’s Deferral Elections (and Earnings thereon).

			
	
			
				(b)
			

			
	
			
			Employer Matching Contributions.  Subject to Sections 4.5(d) and (e) below, a Participant shall be vested in the amount in his or her Deferred Compensation Account attributable to any Employer Matching Contributions (and Earnings thereon) in accordance with the vesting schedule set forth below.

		 

		

			A‐15

		

		

			 

		

 

			
					
						Years of Service

					
					
						Nonforfeitable Percentage

				
	
					
						Less than 2

					
					
						0%

				
	
					
						2

					
					
						20%

				
	
					
						3

					
					
						40%

				
	
					
						4

					
					
						60%

				
	
					
						5

					
					
						80%

				
	
					
						6 or more

					
					
						100%

				

		
			 
		

			
	
			
				(c)
			

			
	
			
			Employer Discretionary Contributions.  Unless otherwise provided by the Plan Administrator and subject to Sections 4.5(d) and (e) below, a Participant shall become vested in a portion of the amounts attributable to a particular Employer Discretionary Contribution in a Plan Year (and Earnings thereon) on December 31 of the year with respect to which the contribution is credited and on December 31 of each of the next two succeeding years provided that the Participant is employed by the Company on the applicable December 31 as follows:  (i) one‐third of the amounts attributable to a particular Employer Discretionary Contribution will become vested on December 31 of the year with respect to which the contribution is first credited, (ii) one‐half of the remaining amount attributable to the contribution (including Earnings thereon) will become vested on December 31 of the year following the year with respect to which the contribution is first credited, and (iii) any remaining amounts attributable to the particular contribution (including Earnings thereon) will become vested on December 31 of the second year following the year with respect to which the contribution is first credited.

			
	
			
				(d)
			

			
	
			
			Accelerated Vesting.  A Participant shall be fully vested in his or her entire Deferred Compensation Account upon the occurrence of any of the following provided that the Participant is still employed by the Company on the date of such occurrence:  (i) the Participant’s death, (ii) the Participant’s becoming Disabled, (iii) the Participant’s Retirement Vesting Date, or (iv) a Change in Control.

			
	
			
				(e)
			

			
	
			
			Forfeiture upon Termination for Cause.  Notwithstanding the vesting schedules set forth above, the balance in a Participant’s Deferred Compensation Account attributable to Employer Contributions (including any Earnings thereon) will be forfeited (and neither the Participant nor the Participant’s beneficiaries will have any rights thereto) if (i) the Participant’s employment with the Company or any Affiliate terminates due to a Termination for Cause, (ii) the Company learns, after the Participant’s termination of employment, of conduct by the Participant while the Participant was an employee of the Company or an Affiliate that could have led to a Termination for Cause if the Company or Participating Employer had been aware of such conduct before the Participant’s termination of employment, or (iii) the Participant violates any non‐competition, non‐disclosure, non‐solicitation, or confidentiality 
		

		 

		

			A‐16

		

		

			 

		

 

			agreement with the Company or any Affiliate or any other restrictive covenant concerning the Company or any Affiliate to which the Participant is subject.  Whether there has been a Termination for Cause and whether a Participant has engaged in any of the conduct described in paragraphs (ii) and (iii) above shall be determined by the Plan Administrator in its sole discretion.

			
	
			
				(f)
			

			
	
			
			Forfeiture of Non‐Vested Amounts.  To the extent that any amounts credited to a Participant’s Deferred Compensation Account are not vested at the time such amounts are otherwise payable under Section 5, such amounts shall be forfeited (and neither the Participant nor the Participant’s beneficiaries will have any rights thereto).

			
	
			
				SECTION 5
			
Payment of Benefits

			
	
			
				5.1
			

			
	
			
			Retirement Distribution Account.  A Participant’s Retirement Distribution Account shall be distributed to the Participant following his or her Separation from Service in accordance with this Section 5.1.

			
	
			
				(a)
			

			
	
			
			Timing of Payment.  If a Participant’s Separation from Service occurs between January 1 and June 30 of the applicable year, then benefits under this Section 5.1 shall be based upon the valuation of the applicable account on the first business day following July 1 of that year and shall be payable as soon as administratively practicable, but in no event later than 90 days, thereafter, and subsequent payments, if the payment is to be made in installments, shall be made on the anniversary of the initial payment.  If a Participant’s Separation from Service occurs between July 1 and December 31 of the applicable year, then benefits under this Section 5.1 shall be based upon the valuation of the applicable account on the first business day following January 1 of the year following the Separation from Service and shall be payable as soon as administratively practicable, but in no event later than 90 days, thereafter, and subsequent payments, if the payment is to be made in installments, shall be made on the anniversary of the initial payment.

			
	
			
				(b)
			

			
	
			
			Form of Payment.  Amounts credited to a Participant’s Retirement Distribution Account with respect to any Deferral Election or any Employer Discretionary Contribution (including Earnings thereon) shall be paid in a lump sum or in a series of annual installments, as elected with respect to such amounts (including Earnings thereon) by the Participant in accordance with Section 3.5 of this Plan, or, if applicable, the default form set forth in Section 3.5(d) of this Plan.  Amounts credited to a Participant’s Retirement Distribution Account with respect to any Employer Matching Contribution (and Earnings thereon) shall be paid in a series of five annual installments.

		 

		

			A‐17

		

		

			 

		

 

			
	
			
				5.2
			

			
	
			
			Fixed Period Distribution Accounts.  Each of a Participant’s Fixed Period Distribution Accounts shall be distributed to the Participant following the In‐Service Date chosen by the Participant pursuant to Section 3.5 in accordance with this Section 5.2.

			
	
			
				(a)
			

			
	
			
			Timing of Payment.  Benefits under this section shall be based upon the valuation of the applicable account on the first business day following the In‐Service Date designated by the Participant in his or her first Deferral Election that allocated a portion of the Compensation deferred to that Fixed Period Distribution Account and shall be payable as soon as practicable, but in no event later than 90 days, thereafter, and subsequent payments, if the form of payment selected provides for subsequent payments, shall be made on the anniversary of the initial payment.  Notwithstanding the foregoing, if the Participant has a Separation from Service before the entire balance of a Fixed Period Distribution Account has been distributed to the Participant, then any remaining benefits from such account under this Section 5.2(a) shall be based upon the valuation of the applicable account on the first business day following the earlier of the first January 1 or the first July 1 following the Separation from Service and shall be payable as soon as administratively practicable, but in no event later than 90 days, thereafter.

			
	
			
				(b)
			

			
	
			
			Form of Payment.  The form of benefit payment shall be that form selected by the Participant in the first Distribution Election which allocated a portion of deferred Compensation to the applicable Fixed Period Distribution Account, or in a lump‐sum if no such selection was validly made in accordance with this Plan.

			
	
			
				5.3
			

			
	
			
			Changes in Time or Form of Distribution.  Subject to this Section 5.3, a Participant may amend the form of payment or the intended date of payment to a date later than the date of payment in force immediately prior to the filing of such request, by filing such amendment with the Plan Administrator no later than 12 months prior to the then current date of payment.  The Participant may file such an amendment, provided that each amendment must provide for a distribution as otherwise permitted under this Plan on a date that is not earlier than five years after the date of payment in force immediately prior to the filing of such request, and the amendment may not take effect for 12 months after the request is made.  For purposes of this Section 5, a payment of amounts under this Plan, including the payment of annual installments over a number of years, shall be treated as a single payment, as provided in Treasury Regulation Section 1.409A‐2(b)(2)(iii).

			
	
			
				5.4
			

			
	
			
			Cash‐Out of Small Account Balance.  Notwithstanding the provisions of Section 5.1 above, if, on the date on which a Participant’s benefits from his or her Retirement Distribution Account first become payable, the portion of the Retirement Distribution Account that is to be paid in installments (i.e., the sum of the amount to be paid in five annual installments plus the amount to be paid in 10 annual installments) is less than $100,000, then the entire balance of the 
		

		 

		

			A‐18

		

		

			 

		

 

			Participant’s Retirement Distribution Account shall be paid to the Participant in a lump‐sum at the time set forth in Section 5.1(a).

			
	
			
				5.5
			

			
	
			
			Payment Upon Disability.  Notwithstanding anything in this Plan or any Distribution Election to the contrary, in the event a Participant becomes Disabled before his or her Deferred Compensation Account has been fully distributed, then payment of the Participant’s vested Deferred Compensation Account shall be made in a lump sum payment within 60 days following the date on which the Participant becomes Disabled.  Whether a Participant is Disabled for purposes of this Plan shall be determined by the Plan Administrator, and in making such determination, the Plan Administrator may rely on the opinion of a physician(s) selected by the Plan Administrator for such purpose.

			
	
			
				5.6
			

			
	
			
			Payment Upon Death of a Participant.  Notwithstanding anything in this Plan or any Distribution Election to the contrary, a Participant’s vested Deferred Compensation Account shall be paid to the Participant’s beneficiary (designated in accordance with Section 5.7) in a lump sum payment within 60 days following the date of the Participant’s death.

			
	
			
				5.7
			

			
	
			
			Beneficiary.  The Participant may name a beneficiary or beneficiaries to receive the balance of the Participant’s vested Deferred Compensation Account in the event of the Participant’s death prior to the payment of the Participant’s vested Deferred Compensation Account.  To be effective, any beneficiary designation must be filed in writing with the Plan Administrator in accordance with rules and procedures adopted by the Plan Administrator for that purpose.  A Participant may revoke an existing beneficiary designation by filing another written beneficiary designation with the Plan Administrator.  The latest beneficiary designation received by the Plan Administrator shall be controlling.  If no beneficiary is named by a Participant, or if the Participant survives all of the Participant’s named beneficiaries and does not designate another beneficiary, the Participant’s Deferred Compensation Account shall be paid in the following order of precedence:

			
	
			
				(a)
			

			
	
			
			the Participant’s spouse;

			
	
			
				(b)
			

			
	
			
			the Participant’s children (including adopted children) in equal amounts;

			
	
			
				(c)
			

			
	
			
			the Participant’s parents in equal amounts; or

			
	
			
				(d)
			

			
	
			
			the Participant’s estate.

			
	
			
				5.8
			

			
	
			
			Unforeseeable Emergency.  Notwithstanding anything in this Plan or any Distribution Election to the contrary, upon a finding that a Participant has suffered an Unforeseeable Emergency, the Plan Administrator may make a lump‐sum payment of all or any portion of the Participant’s vested Deferred Compensation Account needed to satisfy the Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution.  A payment on account of an Unforeseeable Emergency shall not be in excess of the amount 
		

		 

		

			A‐19

		

		

			 

		

 

			needed to relieve such Unforeseeable Emergency and shall be made no later than 60 days following the date on which the applicable financial hardship arose.

			
	
			
				5.9
			

			
	
			
			Effect of Early Taxation.  Notwithstanding anything in this Plan or any Distribution Election to the contrary, if a Participant’s benefits under this Plan are includible in income pursuant to Code Section 409A, such benefits shall be distributed immediately to the Participant.

			
	
			
				5.10
			

			
	
			
			Permitted Delays.  Notwithstanding anything in this Plan to the contrary, any payment to a Participant under this Plan shall be delayed upon the Plan Administrator’s reasonable anticipation of one or more of the following events:

			
	
			
				(a)
			

			
	
			
			The Company’s deduction with respect to such payment would be eliminated by application of Code Section 162(m); or

			
	
			
				(b)
			

			
	
			
			The making of the payment would violate Federal securities laws or other applicable law;

		
			provided, that any payment delayed pursuant to this Section 5.10 shall be paid in accordance with Treasury Regulation Section 1.409A‐2(b)(7) and otherwise with Section 409A of the Code.
		

			
	
			
				5.11
			

			
	
			
			Withholding; Payroll Taxes.  The Company shall withhold from any payment made pursuant to this Plan any taxes required to be withheld from such payments under local, state or federal law or shall make other arrangements necessary to comply with such withholding requirements.  A beneficiary of the Participant, however, may elect not to have withholding of federal income tax pursuant to Section 3405(a)(2) of the Code, or any successor provision thereto.

			
	
			
				5.12
			

			
	
			
			Special Rule for Payments to “Specified Employees” if the Company Becomes Publicly Traded.  Notwithstanding any other provision of this Plan, if a Participant is a “specified employee” of the Company within the meaning of Treasury Regulation Section 1.409A‐1(i) on the date on which the Participant has a Separation from Service, then any benefits payable upon such Separation from Service shall be subject to the limitations set forth in Treasury Regulation Section 1.409A‐3(i)(2) to the extent such limitations apply to the Participant.

			
	
			
				SECTION 6

		

		 

		

			A‐20

		

		

			 

		

 

			
Miscellaneous

			
	
			
				6.1
			

			
	
			
			Unsecured General Creditor.  Notwithstanding any other provision of this Plan, Participants and Participants’ beneficiaries shall be unsecured general creditors, with no secured or preferential rights to any assets of the Company or any other party for payment of benefits under this Plan.  Any property held by the Company for the purpose of generating the cash flow for benefit payments, including any insurance purchased pursuant to Section 6.4 below, shall remain its general, unpledged and unrestricted assets.  The Company’s obligation under this Plan shall be an unfunded and unsecured promise to pay money in the future.

			
	
			
				6.2
			

			
	
			
			Trust Fund.  The Company shall be responsible for the payment of all benefits provided under this Plan.  At its discretion, the Company may elect to establish one or more trusts or similar arrangement, with such trustees as the Company may approve, for the purpose of assisting in the payment of claims or benefits.  Although such trust arrangement may be irrevocable, its assets shall be held for payment of all the Company’s general creditors in the event of insolvency.  To the extent any benefits provided under this Plan are paid from any such trust or arrangement, the Company shall have no further obligation to pay them.  If not paid from any such trust or arrangement, such benefits shall remain the obligation of the Company.

			
	
			
				6.3
			

			
	
			
			Effect of Payment.  The full payment of the applicable benefit under Section 5 shall completely discharge all obligations on the part of the Company to the Participant (and the Participant’s beneficiary) with respect to the operation of this Plan, and the Participant’s (and Participant’s beneficiary’s) rights under this Plan shall terminate immediately upon full payment.

			
	
			
				6.4
			

			
	
			
			COLI.  Subject to Section 6.1, the Company may purchase company‐owned life insurance in respect of the life of a Participant in connection with the Participant’s participation in the Plan.  If necessary for the purchase of that insurance, the Participant will consent to such purchase and will cooperate with the Company to the extent necessary to facilitate such purchase.

			
	
			
				6.5
			

			
	
			
			Set Off.  Notwithstanding any other provision of this Plan, the Company may reduce the amount of any payment otherwise payable to or on behalf of a Participant hereunder (net of any required withholdings) by the amount of any loan, cash advance, extension of credit or other obligation of the Participant to the Company or the applicable Participating Employer incurred in the ordinary course of the employment relationship that is then due and payable, and the Participant shall be deemed to have consented to such reduction, provided that the entire amount of reduction in any calendar year does not exceed $5,000.

			
	
			
				6.6
			

			
	
			
			No Enlargement of Rights.  Establishment of this Plan shall not be construed to give any Participant the right to be retained by the Company or to interfere with the right of the Company to discipline or discharge a Participant at any time.  
		

		 

		

			A‐21

		

		

			 

		

 

			Establishment of this Plan shall not be construed to give any benefits not specifically provided by this Plan.  Any liability of the Company to any Participant, former Participant, or Participant’s beneficiary with respect to a right to payment under this Plan shall be based solely upon contractual obligations created by this Plan.

			
	
			
				6.7
			

			
	
			
			Interests Not Transferable.  Except as set forth in Sections 5.6, 5.11, 6.5 and 6.8 of this Plan, no benefit payable at any time under this Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, or any other encumbrance of any kind or to any attachment, garnishment, or other legal process of any kind.  Any attempt by a person (including a Participant or a Participant’s beneficiary) to anticipate, alienate, sell, transfer, assign, pledge, or otherwise encumber any benefits under this Plan, whether currently or thereafter payable, shall be void.  If any person shall attempt to, or shall alienate, sell, transfer, assign, pledge or otherwise encumber such person’s benefits under this Plan, or if by any reasons of such person’s bankruptcy or other event happening at any time, such benefits would devolve upon any other person or would not be enjoyed by the person entitled thereto under this Plan, then the Plan Administrator, in the Plan Administrator’s sole discretion, may terminate the interest in any such benefits of the person otherwise entitled thereto under this Plan and may hold or apply such benefits in such manner as the Plan Administrator may deem proper.

			
	
			
				6.8
			

			
	
			
			Domestic Relations Orders.  If applicable and notwithstanding Section 6.7, all or a portion of a Participant’s Deferred Compensation Account balance may be paid to another person as specified in a Qualified Domestic Relations Order if the Plan Administrator determines that such payment is necessary to comply with the order.  Where the Qualified Domestic Relations Order permits discretion on the part of the alternate payee and such discretion has not been exercised, the Company shall distribute to the alternate payee the amounts subject to the order as soon as practicable.

			
	
			
				6.9
			

			
	
			
			Controlling Law.  The law of the Commonwealth of Pennsylvania shall be controlling in all matters relating to this Plan to the extent not preempted by federal law.

			
	
			
				6.10
			

			
	
			
			Protective Provisions.  A Participant will cooperate with the Company by furnishing any and all information requested by the Company, in order to facilitate the payment of benefits hereunder, and by taking such physical examinations as the Company may deem necessary and taking such other action as may be requested by the Company.

			
	
			
				6.11
			

			
	
			
			Words and Headings.  Words in the masculine gender shall include the feminine and the singular shall include the plural, and vice versa, unless qualified by the context.  Any headings used herein are included for ease of reference only, and are not to be construed so as to alter the terms hereof.

		 

		

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				6.12
			

			
	
			
			Action by the Company.  Except as otherwise specifically provided herein, any action required of or permitted to be taken by the Company under this Plan shall be by resolution of its Board of Directors or by resolution of a duly authorized committee of its Board of Directors or by action of a person or persons authorized by resolution of such Board of Directors or such committee.

			
	
			
				6.13
			

			
	
			
			No Fiduciary Relationship.  Nothing contained in this Plan, and no action taken pursuant to its provisions by either the Company or the Participants shall create, or be construed to create a fiduciary relationship between the Company and the Participant, a designated beneficiary, other beneficiaries of the Participant, or any other person.

			
	
			
				6.14
			

			
	
			
			Claims Procedures.

			
	
			
				(a)
			

			
	
			
			Claim.  Any person or entity claiming a benefit, requesting an interpretation or ruling under this Plan (hereinafter referred to as “Claimant”), or requesting information under this Plan shall present the request in writing to the Plan Administrator, which shall respond in writing as soon as practical.

			
	
			
				(b)
			

			
	
			
			Denial of Claim.  If the claim or request is denied, the written notice of denial shall state:

			
	
			
				(i)
			

			
	
			
			the reasons for denial, with specific reference to this Plan provisions on which the denial is based;

			
	
			
				(ii)
			

			
	
			
			a description of any additional material or information required and an explanation of why it is necessary; and

			
	
			
				(iii)
			

			
	
			
			an explanation of this Plan’s claim review procedure.

			
	
			
				(c)
			

			
	
			
			Review of Claim.  Any Claimant whose claim or request is denied or who has not received a response within 60 days may request a review by notice given in writing to the Plan Administrator.  Such request must be made within 60 days after receipt by the Claimant of the written notice of denial, or in the event Claimant has not received a response 90 days after receipt by the Plan Administrator of Claimant’s claim or request.  The claim or request shall be reviewed by the Plan Administrator which may, but shall not be required to, grant the Claimant a hearing.  On review, the claimant may have representation, examine pertinent documents, and submit issues and comments in writing.

			
	
			
				(d)
			

			
	
			
			Final Decision.  The decision on review shall normally be made within 60 days after the Committee’s receipt of claimant’s claim or request.  If an extension of time is required for a hearing or other special circumstances, the Claimant shall be notified and the time limit shall be 120 days.  The decision shall be in writing and shall state the reasons and the relevant 
		

		 

		

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			Plan provisions.  All decisions on review shall be final and bind all parties concerned.

			
	
			
				6.15
			

			
	
			
			Notice.  Any notice required or permitted to be given under the provisions of this Plan shall be in writing, and shall be signed by the party giving the notice.  If any such notice is hand delivered then it shall be deemed given as of the date of delivery.  If such notice, consent or demand is mailed to a party hereto, it shall be sent by United States certified mail, postage prepaid, addressed to such party’s last known address as shown on the records of the Company.  Notices to the Plan Administrator should be sent in care of the Company at the Company’s principal place of business.  The date of such mailing shall be deemed the date of notice.  Either party may change the address to which notice is to be sent by giving notice of the change of address in the manner set forth above.

			
	
			
				6.16
			

			
	
			
			No Guarantee of Benefits.  Nothing contained in this Plan shall constitute a guarantee by the Company or any other person or entity that the assets of the Company will be sufficient to pay any benefits hereunder.

			
	
			
				6.17
			

			
	
			
			Incapacity of Recipient.  If any person entitled to a distribution under this Plan is deemed by the Plan Administrator to be incapable of personally receiving and giving a valid receipt for such payment, then, unless and until a claim for such payment shall have been made by a duly appointed guardian or other legal representative of such person, the Plan Administrator may provide for such payment or any part thereof to be made to any other person or institution then contributing toward or providing for the care and maintenance of such person.  Any such payment shall be a payment for the account of such person and a complete discharge of any liability of the Company and this Plan with respect to the payment.

			
	
			
				6.18
			

			
	
			
			Successors.  The provisions of this Plan shall bind and inure to the benefit of the Company and its successors and assigns.  The term successors as used herein shall include any corporate or other business entity which shall, whether by merger, consolidation, purchase or otherwise acquire all or substantially all of the business and assets of the Company, and successors of any such corporation or other business entity.

			
	
			
				6.19
			

			
	
			
			Severability.  In the event any provision of this Plan shall be held invalid or illegal for any reason, any illegality or invalidity shall not affect the remaining parts of this Plan, but this Plan shall be construed and enforced as if the illegal or invalid provision had never been inserted.

			
	
			
				6.20
			

			
	
			
			Indemnification.  To the extent not covered by insurance, the Company shall indemnify the Plan Administrator, each employee, officer, director, and agent of the Company, and all persons formerly serving in such capacities, against any and all liabilities or expenses, including all legal fees relating thereto, arising in connection with the exercise of their duties and responsibilities with respect to this Plan, provided however that the Company shall not indemnify any person for 
		

		 

		

			A‐24

		

		

			 

		

 

			liabilities or expenses due to that person’s own gross negligence or willful misconduct.

			
	
			
				SECTION 7
			
Employer Participation

			
	
			
				7.1
			

			
	
			
			Adoption of Plan.  Any Affiliate of the Company may, with the approval of the Company, adopt this Plan, and thereby become a Participating Employer, by filing with the Company a resolution of the Affiliate’s Board of Directors adopting this Plan.

			
	
			
				7.2
			

			
	
			
			Withdrawal from Plan.  Any Participating Employer shall have the right, at any time, upon the approval of, and under such conditions as may be provided by the Company, to withdraw from this Plan in accordance with the requirements under Code Section 409A by delivering to the Plan Administrator a resolution of the Participating Employer’s Board of Directors withdrawing from this Plan.

			
	
			
				SECTION 8
			
Amendment and Termination 

			
	
			
				8.1
			

			
	
			
			Amendment.  The Board of Directors of the Company (or the committee appointed as the Plan Administrator by the Board of Directors or its authorized delegate pursuant to Plan Section 1.5(a)) may at any time amend this Plan by written instrument, notice of which is given to all Participants and to their beneficiaries receiving installment payments, subject to Section 8.2.

			
	
			
				8.2
			

			
	
			
			Effect of Amendment.  No amendment shall reduce the amount accrued in any Deferred Compensation Account as of the date such notice of the amendment is given.

			
	
			
				8.3
			

			
	
			
			Company’s Right to Terminate.  The Board of Directors of the Company retains the unrestricted right to partially or completely terminate this Plan at any time if, in their judgment, the tax, accounting or other effects of the continuance of this Plan, or potential payments thereunder would not be in the best interests of Company.  The Board of Directors of the Company, may, in its sole discretion, terminate the entire Plan, or terminate a portion of this Plan that is identified as an elective account balance plan as defined in Treasury Regulation Section 1.409A ‐ 1(c)(2)(i)(A), or as a nonelective account balance plan as defined in Treasury Regulation Section 1.409A ‐ 1(c)(2)(i)(B), and require distribution of all benefits due under this Plan or portion thereof, provided that:

			
	
			
				(a)
			

			
	
			
			the termination of this Plan does not occur proximate to a downturn in the financial health, as determined by the Plan Administrator, of the Company;

			
	
			
				(b)
			

			
	
			
			the Company also terminates all other plans or arrangements which are considered to be of a similar type as defined in Treasury Regulation 
		

		 

		

			A‐25

		

		

			 

		

 

			Section 1.409A ‐ 1(c)(2)(i), or as otherwise provided by the Code, as the portion of this Plan which has been terminated;

			
	
			
				(c)
			

			
	
			
			no payments made in connection with the termination of this Plan occur earlier than 12 months following the Plan termination date other than payments this Plan would have made irrespective of this Plan’s termination;

			
	
			
				(d)
			

			
	
			
			all payments made in connection with the termination of this Plan are completed within 24 months following the Plan termination date;

			
	
			
				(e)
			

			
	
			
			the Company does not establish a new plan of a similar type as defined in Treasury Regulation Section 1.409A ‐ 1(c)(2)(i), within 3 years following the Plan termination date of the portion of this Plan which has been terminated; and

			
	
			
				(f)
			

			
	
			
			the Company meets any other requirements deemed necessary to comply with provisions of the Code and applicable regulations which permit the acceleration of the time and form of payment made in connection with plan terminations and liquidations.

		 

		

			A‐26

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