Document:

EX-10.1

 Exhibit 10.1 
 MORGANS HOTEL GROUP CO. 
 AMENDED AND RESTATED 2007 OMNIBUS INCENTIVE PLAN

 TABLE OF CONTENTS 
  

					
	 	  	Page	 
	 1. PURPOSE
	  	 	A-1	  
	 2. DEFINITIONS
	  	 	A-1	  
	 3. ADMINISTRATION OF THE PLAN
	  	 	A-4	  
	 3.1. Board
	  	 	A-4	  
	 3.2. Committee
	  	 	A-5	  
	 3.3. Terms of Awards
	  	 	A-5	  
	 3.4. Deferral Arrangement
	  	 	A-6	  
	 3.5. No Liability
	  	 	A-6	  
	 3.6. Share Issuance/Book-Entry
	  	 	A-6	  
	 4. STOCK SUBJECT TO THE PLAN
	  	 	A-6	  
	 5. EFFECTIVE DATE, DURATION AND AMENDMENTS
	  	 	A-7	  
	 5.1. Effective Date
	  	 	A-7	  
	 5.2. Term
	  	 	A-7	  
	 5.3. Amendment and Termination of the Plan
	  	 	A-7	  
	 6. AWARD ELIGIBILITY AND LIMITATIONS
	  	 	A-7	  
	 6.1. Service Providers and Other Persons
	  	 	A-7	  
	 6.2. Successive Awards and Substitute Awards
	  	 	A-7	  
	 6.3. Limitation on Shares of Stock Subject to Awards and Cash Awards
	  	 	A-8	  
	 7. AWARD AGREEMENT
	  	 	A-8	  
	 8. TERMS AND CONDITIONS OF OPTIONS
	  	 	A-8	  
	 8.1. Option Price
	  	 	A-8	  
	 8.2. Vesting
	  	 	A-8	  
	 8.3. Term
	  	 	A-8	  
	 8.4. Termination of Service
	  	 	A-9	  
	 8.5. Limitations on Exercise of Option
	  	 	A-9	  
	 8.6. Method of Exercise
	  	 	A-9	  
	 8.7. Rights of Holders of Options
	  	 	A-9	  
	 8.8. Delivery of Stock Certificates
	  	 	A-9	  
	 8.9. Transferability of Options
	  	 	A-9	  
	 8.10. Family Transfers
	  	 	A-9	  
	 8.11. Limitations on Incentive Stock Options
	  	 	A-10	  
	 8.12. Notification of Disqualifying Disposition
	  	 	A-10	  
	 9. TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS
	  	 	A-10	  
	 9.1. Right to Payment and Grant Price
	  	 	A-10	  
	 9.2. Other Terms
	  	 	A-10	  
	 9.3. Term
	  	 	A-10	  
	 9.4. Transferability of SARS
	  	 	A-11	  
	 9.5. Family Transfers
	  	 	A-11	  
	 10. TERMS AND CONDITIONS OF RESTRICTED STOCK AND STOCK UNITS
	  	 	A-11	  
	 10.1. Grant of Restricted Stock
	  	 	A-11	  
	 10.2. Restrictions
	  	 	A-11	  
	 10.3. Restricted Stock Certificates
	  	 	A-11	  
	 10.4. Rights of Holders of Restricted Stock
	  	 	A-12	  
	 10.5. Rights of Holders of Stock Units
	  	 	A-12	  
	 10.5.1. Voting and Dividend Rights
	  	 	A-12	  
	 10.5.2. Creditor’s Rights
	  	 	A-12	  
	 10.6. Termination of Service
	  	 	A-12	  

  
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	 	  	Page	 
	 10.7. Purchase of Restricted Stock
	  	 	A-12	  
	 10.8. Delivery of Stock
	  	 	A-12	  
	 11. FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK
	  	 	A-13	  
	 11.1. General Rule
	  	 	A-13	  
	 11.2. Surrender of Stock
	  	 	A-13	  
	 11.3. Cashless Exercise
	  	 	A-13	  
	 11.4. Other Forms of Payment
	  	 	A-13	  
	 12. TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS
	  	 	A-13	  
	 12.1. Dividend Equivalent Rights
	  	 	A-13	  
	 12.2. Termination of Service
	  	 	A-13	  
	 13. OTHER STOCK-BASED AWARDS AND LLC UNITS
	  	 	A-14	  
	 14. TERMS AND CONDITIONS OF PERFORMANCE AND ANNUAL INCENTIVE AWARDS
	  	 	A-14	  
	 14.1. Performance Conditions
	  	 	A-14	  
	 14.2. Performance or Annual Incentive Awards Granted to Designated Covered Employees
	  	 	A-15	  
	 14.2.1. Performance Goals Generally
	  	 	A-15	  
	 14.2.2. Business Criteria
	  	 	A-15	  
	 14.2.3. Timing For Establishing Performance Goals
	  	 	A-16	  
	 14.2.4. Settlement of Performance or Annual Incentive Awards; Other Terms
	  	 	A-16	  
	 14.3. Written Determinations
	  	 	A-16	  
	 14.4. Status of Section 14.2 Awards Under Code Section 162(m)
	  	 	A-16	  
	 15. PARACHUTE LIMITATIONS
	  	 	A-16	  
	 16. REQUIREMENTS OF LAW
	  	 	A-17	  
	 16.1. General
	  	 	A-17	  
	 16.2. Rule 16b-3
	  	 	A-17	  
	 17. EFFECT OF CHANGES IN CAPITALIZATION
	  	 	A-18	  
	 17.1. Changes in Stock
	  	 	A-18	  
	 17.2. Reorganization in Which the Company Is the Surviving Entity Which does not Constitute a Corporate
Transaction
	  	 	A-18	  
	 17.3. Corporate Transaction
	  	 	A-18	  
	 17.4. Adjustments
	  	 	A-19	  
	 17.5. No Limitations on Company
	  	 	A-19	  
	 18. GENERAL PROVISIONS
	  	 	A-19	  
	 18.1. Disclaimer of Rights
	  	 	A-19	  
	 18.2. Nonexclusivity of the Plan
	  	 	A-20	  
	 18.3. Withholding Taxes
	  	 	A-20	  
	 18.4. Captions
	  	 	A-20	  
	 18.5. Other Provisions
	  	 	A-20	  
	 18.6. Number and Gender
	  	 	A-20	  
	 18.7. Severability
	  	 	A-21	  
	 18.8. Governing Law
	  	 	A-21	  
	 18.9. Code Section 409A
	  	 	A-21	  

  
 A-ii

 MORGANS HOTEL GROUP CO. 

AMENDED AND RESTATED 2007 OMNIBUS INCENTIVE PLAN 
 Morgans Hotel Group Co., a Delaware corporation (the “Company”), sets forth herein the terms of the amendment and restatement of its 2007 Omnibus Incentive Plan in the form of this Amended and
Restated 2007 Omnibus Incentive Plan (the “Plan”), as follows: 
  

	1.	PURPOSE  

 The Plan is
intended to enhance the Company’s and its Affiliates’ (as defined herein) ability to attract and retain highly qualified officers, outside directors, key employees, and other persons, and to motivate such persons to serve the Company and
its Affiliates and to expend maximum effort to improve the business results and earnings of the Company, by providing to such persons an opportunity to acquire or increase a direct proprietary interest in the operations and future success of the
Company. To this end, the Plan provides for the grant of stock options, stock appreciation rights, restricted stock, stock units (including deferred stock units), dividend equivalent rights, cash awards and any other stock-based award under the
Plan. Any of these awards may, but need not, be made as performance incentives to reward attainment of annual or long-term performance goals in accordance with the terms hereof. Stock options granted under the Plan may be non-qualified stock options
or incentive stock options, as provided herein, except that stock options granted to outside directors and any consultants or advisers providing services to the Company or an Affiliate shall in all cases be non-qualified stock options. 

 

	2.	DEFINITIONS  

 For
purposes of interpreting the Plan and related documents (including Award Agreements), the following definitions shall apply: 

2.1 “Affiliate” means, with respect to the Company, any company or other trade or business that controls, is
controlled by or is under common control with the Company within the meaning of Rule 405 of Regulation C under the Securities Act, including, without limitation, any Subsidiary. For purposes of granting stock options or stock appreciation
rights, an entity may not be considered an Affiliate unless the Company holds a “controlling interest” in such entity, where the term “controlling interest” has the same meaning as provided in Treasury
Regulation 1.414(c)-2(b)(2)(i), provided that the language “at least 50 percent” is used instead of “at least 80 percent” and, provided further, that where granting of stock options or stock appreciation rights is
based upon a legitimate business criteria, the language “at least 20 percent” is used instead of “at least 80 percent” each place it appears in Treasury Regulation 1.414(c)-2(b)(2)(i). 

2.2 “Annual Incentive Award” means an Award made subject to attainment of performance goals (as described in
Section 14) over a performance period of up to one year (the Company’s fiscal year, unless otherwise specified by the Committee). 
 2.3 “Award” means a grant of an Option, Stock Appreciation Right, Restricted Stock, Stock Unit, Dividend Equivalent Rights, cash award, or any Other Stock-Based Award under the Plan.

 2.4 “Award Agreement” means the written agreement between the Company and a Grantee that evidences and
sets out the terms and conditions of an Award. The Committee may provide for the use of electronic, Internet, or other nonpaper Award Agreements, and the use of electronic, Internet, or other nonpaper means for the acceptance thereof and actions
thereunder by a Grantee. 
 2.5 “Benefit Arrangement” shall have the meaning set forth in
Section 15 hereof. 
 2.6 “Board” means the Board of Directors of the Company. 

2.7 “Book Value” means, as of any given date, on a per share basis (i) the shareholders’ equity in the
Company as of the end of the immediately preceding fiscal year as reflected in the Company’s consolidated balance sheet, subject to such adjustments as the Committee shall specify at or after grant, divided by (ii) the number of then
outstanding shares of Stock as of such year-end date (as adjusted by the Committee for subsequent events). 

  
 A-1

 2.8 “Cause” means, with respect to any Grantee, the meaning of such
term as set forth in the employment agreement between the Company (or any Affiliate) and the Grantee or, in the event there is no such employment agreement (or if any such employment agreement does not contain such a definition), such term shall
mean (i) willful or gross misconduct or willful or gross negligence in the performance of his or her duties for the Company or any Affiliate, (ii) neglect of his or her duties for the Company or any Affiliate after written notice and
opportunity to cure, (iii) dishonesty, fraud, theft, embezzlement or misappropriation of funds, properties or assets of the Company or of any Affiliate, (iv) conviction of a felony or (v) a direct or indirect material breach of the
terms of any agreement with the Company or any Affiliate. 
 2.9 “Code” means the Internal Revenue Code of
1986, as now in effect or as hereafter amended. 
 2.10 “Committee” means a committee of, and designated
from time to time by resolution of, the Board, which shall be constituted as provided in Section 3.2. 

2.11 “Company” means Morgans Hotel Group Co. 

2.12 “Corporate Transaction” shall be deemed to have occurred if (i) any person or group of persons (as
defined in Section 13(d) and 14(d) of the Exchange Act) together with its affiliates, excluding employee benefit plans of the Company, is or becomes, directly or indirectly, the “beneficial owner” (as defined in Rule 13d-3 of the
Exchange Act) of securities of the Company representing 40% or more of the combined voting power of the Company’s then outstanding securities; or (ii) individuals who at the beginning of any two-year period constitute the Board, plus new
directors of the Company whose election or nomination for election by the Company’s shareholders is approved by a vote of at least two-thirds of the directors of the Company still in office who were directors of the Company at the beginning of
such two-year period, cease for any reason during such two-year period to constitute at least two-thirds of the members of the Board; or (iii) a merger or consolidation of the Company with any other corporation or entity is consummated
regardless of which entity is the survivor, other than a merger of consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or being
converted into voting securities of the surviving entity) at least 60% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (iv) the Company
is completely liquidated or all or substantially all of the Company’s assets are sold. 
 2.13 “Covered
Employee” means a Grantee who is a covered employee within the meaning of Section 162(m)(3) of the Code. 

2.14 “Disability” means the Grantee is unable to perform each of the essential duties of such Grantee’s
position by reason of a medically determinable physical or mental impairment which is potentially permanent in character or which can be expected to last for a continuous period of not less than 12 months; provided, however, that, with respect
to rules regarding expiration of an Incentive Stock Option following termination of the Grantee’s Service, Disability shall mean the Grantee is unable to engage in any substantial gainful activity by reason of a medically determinable physical
or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. 
 2.15 “Dividend Equivalent Right” means a right, granted to a Grantee under Section 12 hereof, to receive cash, Stock, other Awards or other property equal in value to
dividends paid with respect to a specified number of shares of Stock, or other periodic payments. 

2.16 “Effective Date” means April 10, 2008, the date this Amended and Restated 2007 Omnibus Incentive Plan was
approved by the Board. 
 2.17 “Exchange Act” means the Securities Exchange Act of 1934, as now in effect
or as hereafter amended. 

  
 A-2

 2.18 “Fair Market Value” with respect to a share of Stock means the
value of a share of such Stock determined as follows: if on the Grant Date or other determination date the Stock is listed on an established national or regional stock exchange, is admitted to quotation on The NASDAQ Stock Market, Inc. or is
publicly traded on an established securities market, the Fair Market Value of a share of Stock shall be the closing price of the Stock on such exchange or in such market (if there is more than one such exchange or market the Committee shall
determine the appropriate exchange or market) on the Grant Date or such other determination date (or if there is no such reported closing price, the Fair Market Value shall be the mean between the highest bid and lowest asked prices or between the
high and low sale prices on such trading day) or, if no sale of Stock is reported for such trading day, on the next preceding day on which any sale shall have been reported. If the Stock is not listed on such an exchange, quoted on such system or
traded on such a market, Fair Market Value of the share of Stock shall be the value of the Stock as determined by the Committee by the reasonable valuation method, in a manner consistent with Internal Revenue Code Section 409A (“Code
Section 409A”). “Fair Market Value” with respect to an Award means the value of the Award as determined by the Committee in good faith, taking into consideration applicable tax and accounting rules and regulations. 

2.19 “Family Member” means a person who is a spouse, former spouse, child, stepchild, grandchild, parent,
stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive relationships, of the Grantee, any person sharing the Grantee’s household
(other than a tenant or employee), a trust in which any one or more of these persons have more than fifty percent of the beneficial interest, a foundation in which any one or more of these persons (or the Grantee) control the management of assets,
and any other entity in which one or more of these persons (or the Grantee) own more than fifty percent of the voting interests. 
 2.20 “Good Reason” means (a) a substantial adverse alteration in the Grantee’s title or responsibilities from those in effect immediately prior to the Corporate
Transaction; (b) a reduction in the Grantee’s annual base salary as of immediately prior to the Corporate Transaction (or as the same may be increased from time to time) or a material reduction in the Grantee’s annual target bonus
opportunity as of immediately prior to the Corporate Transaction; or (c) the relocation of the Grantee’s principal place of employment to a location more than 35 miles from the Grantee’s principal place of employment as of the
Corporate Transaction or the Company’s requiring the Grantee to be based anywhere other than such principal place of employment (or permitted relocation thereof) except for required travel on the Company’s business to an extent
substantially consistent with the Grantee’s business travel obligations as of immediately prior to the Corporate Transaction. The Grantee’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any
act or failure to act constituting Good Reason hereunder, provided that the Grantee provides the Company with a written notice of resignation within ninety (90) days following the occurrence of the event constituting Good Reason. 

2.21 “Grant Date” means, as determined by the Committee, the latest to occur of (i) the date as of which the
Committee approves an Award, (ii) the date on which the recipient of an Award first becomes eligible to receive an Award under Section 6 hereof, or (iii) such other date as may be specified by the Committee. 

2.22 “Grantee” means a person who receives or holds an Award under the Plan. 

2.23 “Incentive Stock Option” means an “incentive stock option” within the meaning of Section 422 of
the Code, or the corresponding provision of any subsequently enacted tax statute, as amended from time to time. 

2.24 “LLC Unit” or “LLC Units” means a membership interest or membership interests in Morgans
Group LLC, a Delaware limited liability company and the entity through which the Company conducts a significant portion of its business. 
 2.25 “Non-qualified Stock Option” means an Option that is not an Incentive Stock Option. 
 2.26 “Option” means an option to purchase one or more shares of Stock pursuant to the Plan. 
 2.27 “Option Price” means the exercise price for each share of Stock subject to an Option. 
 2.28 “Other Agreement” shall have the meaning set forth in Section 15 hereof. 
 2.29 “Other Stock-Based Award” shall mean any right granted under Section 13 of the Plan. 
 2.30 “Outside Director” means a member of the Board who is not an officer or employee of the Company. 

  
 A-3

 2.31 “Performance Award” means an Award made subject to the attainment
of performance goals (as described in Section 14) over a performance period of up to ten (10) years. 

2.32 “Plan” means this Morgans Hotel Group Co. Amended and Restated 2007 Omnibus Incentive Plan, an amendment and
restatement of the Morgans Hotel group Co. 2007 Omnibus Incentive Plan. 
 2.33 “Purchase Price” means the
purchase price for each share of Stock pursuant to a grant of Restricted Stock or Other Stock-Based Award. 

2.34 “Reporting Person” means a person who is required to file reports under Section 16(a) of the Exchange
Act. 
 2.35 “Restricted Stock” means shares of Stock, awarded to a Grantee pursuant to Section 10
hereof. 
 2.36 “SAR Exercise Price” means the per share exercise price of a SAR granted to a Grantee
under Section 9 hereof. 
 2.37 “Securities Act” means the Securities Act of 1933, as now in
effect or as hereafter amended. 
 2.38 “Service” means service as a Service Provider to the Company or an
Affiliate. Unless otherwise stated in the applicable Award Agreement, a Grantee’s change in position or duties shall not result in interrupted or terminated Service, so long as such Grantee continues to be a Service Provider to the Company or
an Affiliate. Subject to the preceding sentence, whether a termination of Service shall have occurred for purposes of the Plan shall be determined by the Committee, which determination shall be final, binding and conclusive. 

2.39 “Service Provider” means an employee, officer or director of the Company or an Affiliate, or a consultant or
adviser currently providing services to the Company or an Affiliate. 
 2.40 “Stock” means the common
stock, par value $.01 per share, of the Company. 
 2.41 “Stock Appreciation Right” or “SAR”
means a right granted to a Grantee under Section 9 hereof. 
 2.42 “Stock Unit” means a
bookkeeping entry representing the equivalent of one share of Stock awarded to a Grantee pursuant to Section 10 hereof. 
 2.43 “Subsidiary” means any “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code. 

2.44 “Substitute Awards” means Awards granted upon assumption of, or in substitution for, outstanding awards
previously granted by a company or other entity acquired by the Company or any Affiliate or with which the Company or any Affiliate combines. 
 2.45 “Ten Percent Stockholder” means an individual who owns more than ten percent (10%) of the total combined voting power of all classes of outstanding stock of the
Company, its parent or any of its Subsidiaries. In determining stock ownership, the attribution rules of Section 424(d) of the Code shall be applied. 
  

	3.	ADMINISTRATION OF THE PLAN  

3.1. Board 

The Board shall have such powers and authorities related to the administration of the Plan as are consistent with the Company’s
certificate of incorporation and by-laws and applicable law. The Board shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan, any Award or any Award Agreement, and shall have
full power and authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and provisions of the Plan that the Board deems to be necessary or appropriate to the administration of the Plan,
any Award or any Award Agreement. All such actions and determinations shall be by the affirmative vote of a majority of the members of the Board present at a meeting or by unanimous consent of the Board executed in writing in accordance with the
Company’s certificate of incorporation and by-laws and applicable law. The interpretation and construction by the Board of any provision of the Plan, any Award or any Award Agreement shall be final, binding and conclusive. 

  
 A-4

 3.2. Committee. 
 The Board has delegated to the Committee the powers and authorities related to the administration and implementation of the Plan, as set forth in Section 3.1 above and other applicable
provisions, consistent with the certificate of incorporation and by-laws of the Company and applicable law. 
 (i) Except
as provided in Subsection (ii) and except as the Board may otherwise determine, the Committee appointed by the Board to administer the Plan shall consist of two or more Outside Directors of the Company who: (a) qualify as “outside
directors” within the meaning of Section 162(m) of the Code and who (b) meet such other requirements as may be established from time to time by the Securities and Exchange Commission for plans intended to qualify for exemption under
Rule 16b-3 (or its successor) under the Exchange Act and (c) who comply with the independence requirements of the stock exchange on which the Common Stock is listed. 
 (ii) The Board may also appoint one or more separate committees of the Board, each composed of one or more directors of the Company who need not be Outside Directors, who may administer the Plan with
respect to employees or other Service Providers who are not executive officers or directors of the Company, may grant Awards under the Plan to such employees or other Service Providers, and may determine all terms of such Awards. 

In the event that the Plan, any Award or any Award Agreement entered into hereunder provides for any action to be taken by or
determination to be made by the Committee, such action may be taken or such determination may be made by the Board. Unless otherwise expressly determined by the Board, any action or determination by the Committee shall be final, binding and
conclusive. To the extent permitted by law, the Committee may delegate its authority under the Plan to a member of the Board. 

3.3. Terms of Awards. 
 Subject to the other terms and conditions of the Plan, the Committee shall have full and final authority to: 
 (i) designate Grantees, 
 (ii) determine the type or types of Awards to
be made to a Grantee, 
 (iii) determine the number of shares of Stock to be subject to an Award, 

(iv) establish the terms and conditions of each Award (including, but not limited to, the exercise price of any Option, the nature
and duration of any restriction or condition (or provision for lapse thereof ) relating to the vesting, exercise, transfer, or forfeiture of an Award or the shares of Stock subject thereto, and any terms or conditions that may be necessary to
qualify Options as Incentive Stock Options), 
 (v) prescribe the form of each Award Agreement evidencing an
Award, and 
 (vi) amend, modify, or supplement the terms of any outstanding Award. Such authority specifically
includes the authority, in order to effectuate the purposes of the Plan but without amending the Plan, to modify Awards to eligible individuals who are foreign nationals or are individuals who are employed outside the United States to recognize
differences in local law, tax policy, or custom. Notwithstanding the foregoing, no amendment, modification or supplement of any Award shall, without the consent of the Grantee, impair the Grantee’s rights under such Award other than amendments
or modifications necessary to comply with Code Section 409A and amendments pursuant to Section 5.3. 
 The
Company may retain the right in an Award Agreement to cause a forfeiture of the gain realized by a Grantee on account of actions taken by the Grantee in violation or breach of or in conflict with any employment agreement, non-competition agreement,
any agreement prohibiting solicitation of employees or clients of the Company or any Affiliate thereof or any confidentiality obligation with respect to the Company or any Affiliate thereof or otherwise in competition with the Company or any
Affiliate thereof, to the extent specified in such Award Agreement applicable to the Grantee. Furthermore, the Company may annul an Award if the Grantee is an employee of the Company or an Affiliate thereof and is terminated for Cause as defined in
the applicable Award Agreement or the Plan, as applicable. 
  

  
 A-5

 Furthermore, if the Company is required to prepare an accounting restatement due to the
material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 and any
Grantee who knowingly engaged in the misconduct, was grossly negligent in engaging in the misconduct, knowingly failed to prevent the misconduct or was grossly negligent in failing to prevent the misconduct, shall reimburse the Company the amount of
any payment in settlement of an Award earned or accrued during the twelve-(12) month period following the first public issuance or filing with the United State Securities and Exchange Commission (whichever first occurred) of the financial
document that contained such material noncompliance. 
 Notwithstanding the foregoing, no amendment or modification may be made
to an outstanding Option or SAR, including without limitation by replacement of underwater Options or SARs with cash or other award type, that would be treated as a repricing under the rules of the stock exchange on which the Stock is listed or
result in replacement of underwater Options or SARs with cash or other award with an exercise price below the Fair Market Value as of the date of such replacement award, in each case, without the approval of the stockholders of the Company,
provided, that, appropriate adjustments may be made to outstanding Options and SARs pursuant to Section 17 or Section 5.3 and may be made to make changes to achieve compliance with applicable law, including Code
Section 409A. 
 3.4. Deferral Arrangement. 
 The Committee may permit or require the deferral of any award payment into a deferred compensation arrangement, subject to such rules and procedures as it may establish, which may include provisions for
the payment or crediting of interest or dividend equivalents, including converting such credits into deferred Stock equivalents, and restricting deferrals to comply with hardship distribution rules affecting 401(k) plans. Any such deferrals shall be
made in a manner that complies with Code Section 409A. 
 3.5. No Liability. 

No member of the Board or of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or
any Award or Award Agreement. 
 3.6. Share Issuance/Book-Entry 

Notwithstanding any provision of this Plan to the contrary, the issuance of the Stock under the Plan may be evidenced in such a manner as
the Committee, in its discretion, deems appropriate, including, without limitation, book-entry registration or issuance of one or more Stock certificates. 
  

	4.	STOCK SUBJECT TO THE PLAN  

Subject to adjustment as provided in Section 17 hereof, the number of shares of Stock available for issuance under the Plan
shall be fourteen million six hundred ten thousand (14,610,000) all of which may be granted as Incentive Stock Options. Stock issued or to be issued under the Plan shall be authorized but unissued shares; or, to the extent permitted by applicable
law, issued shares that have been reacquired by the Company. If any shares covered by an Award are not purchased or are forfeited, or if an Award otherwise terminates without delivery of any Stock subject thereto, then the number of shares of Stock
counted against the aggregate number of shares available under the Plan with respect to such Award shall, to the extent of any such forfeiture or termination, again be available for making Awards under the Plan. The number of shares available for
issuance under the Plan shall be reduced by the number of shares subject to Options and SARs. Upon a grant of Awards other than Awards of Options or SARs, the number of shares available for issuance under the Plan shall be reduced by 1.7 times the
number of shares of Stock subject to such Awards and any shares underlying Options or SARs not purchased or forfeited shall be added back to the limit set forth above by 1.7 times the number of shares of Stock subject to such Awards. The number of
shares of Stock available for issuance under the Plan shall not be increased by (i) any shares of Stock tendered or withheld or Award surrendered in connection with the purchase of shares of Stock upon exercise of an Option, or (ii) any
shares of Stock deducted or delivered from an Award payment in connection with the Company’s tax withholding obligations. 
  

  
 A-6

 The Committee shall have the right to substitute or assume Awards in connection with
mergers, reorganizations, separations, or other transactions to which Section 424(a) of the Code applies. The number of shares of Stock reserved pursuant to Section 4 may be increased by the corresponding number of Awards assumed
and, in the case of a substitution, by the net increase in the number of shares of Stock subject to Awards before and after the substitution. The Committee may adopt reasonable counting procedures to ensure appropriate counting, to avoid double
counting (as, for example, in the case of tandem or substitute awards). 
  

	5.	EFFECTIVE DATE, DURATION AND AMENDMENTS  

5.1. Effective Date. 
 The amendment and restatement of the 2007 Omnibus Incentive Plan shall be effective as of the Effective Date of the Plan, subject to approval of the Plan by the Company’s stockholders within one year
of the Effective Date. Upon approval of the Plan by the stockholders of the Company as set forth above, all Awards made under the Plan on or after the Effective Date shall be fully effective as if the stockholders of the Company had approved the
Plan on the Effective Date. If the stockholders fail to approve the Plan within one year of the Effective Date of the Plan, any Awards made hereunder shall be null and void and of no effect. 
 5.2. Term. 
 The Plan shall terminate automatically ten
(10) years after its adoption by the Board and may be terminated on any earlier date as provided in Section 5.3. 

5.3. Amendment and Termination of the Plan 
 The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any shares of Stock as to which Awards have not been made. No Awards shall be made after termination of the
Plan. No amendment, suspension, or termination of the Plan shall, without the consent of the Grantee, impair rights or obligations under any Award theretofore awarded under the Plan. 
 5.4 Additional Provisions 
 Any provision of the Plan or any
Award Agreement notwithstanding, the Committee may cause any Award granted hereunder to be amended, modified or cancelled in consideration of a cash payment, an alternative Award or both made to the holder of such cancelled Award equal to or greater
than the Fair Market Value of such cancelled Award. 
  

	6.	AWARD ELIGIBILITY AND LIMITATIONS  

6.1. Service Providers and Other Persons 
 Subject to this Section 6, Awards may be made under the Plan to: (i) any Service Provider to the Company or of any Affiliate, including any Service Provider who is an officer or director
of the Company, or of any Affiliate, as the Committee shall determine and designate from time to time and (ii) any other individual whose participation in the Plan is determined to be in the best interests of the Company by the Committee.

 6.2. Successive Awards and Substitute Awards. 
 An eligible person may receive more than one Award, subject to such restrictions as are provided herein. Notwithstanding Sections 8.1 and 9.1, the Option Price of an Option or the grant
price of a SAR that is a Substitute Award may be less than 100% of the Fair Market Value of a share of Common Stock on the original date of grant; provided, that, the Option Price or grant price is determined in accordance with the principles of
Code Section 424 and the regulations thereunder; as modified by Code Section 409A and the regulations thereunder as Options that are non-qualified stock options and SARs. 

 

  
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 6.3. Limitation on Shares of Stock Subject to Awards and Cash Awards. 

During any time when the Company has a class of equity security registered under Section 12 of the Exchange Act: 

(i) the maximum number of shares of Stock subject to Options or SARs that can be awarded under the Plan to any person eligible for
an Award under Section 6 hereof is 2,000,000 (two million) shares per calendar year. 
 (ii) the maximum number
of shares that can be awarded under the Plan, other than pursuant to an Option or SAR, to any person eligible for an Award under Section 6 hereof is 2,000,000 (two million) shares per calendar year. 

(iii) the maximum amount that may be earned as an Annual Incentive Award or other cash Award in any calendar year by any one Grantee
shall be $10,000,000 (ten million dollars) and the maximum amount that may be earned as a Performance Award or other cash Award in respect of a performance period of greater than one year by any one Grantee shall be $25,000,000 (twenty-five million
dollars). 
 The preceding limitations in this Section 6.3 are subject to adjustment as provided in
Section 17 hereof. 
  

	7.	AWARD AGREEMENT  

 Each
Award granted pursuant to the Plan shall be evidenced by an Award Agreement, in such form or forms as the Committee shall from time to time determine. Award Agreements granted from time to time or at the same time need not contain similar provisions
but shall be consistent with the terms of the Plan. Each Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be Non-qualified Stock Options or Incentive Stock Options, and in the absence of such
specification such options shall be deemed Non-qualified Stock Options. 
  

	8.	TERMS AND CONDITIONS OF OPTIONS  

8.1. Option Price 
 The Option Price of each Option shall be fixed by the Committee and stated in the Award Agreement evidencing such Option. Except in the case of Substitute Awards, the Option Price of each Option shall be
at least the Fair Market Value on the Grant Date of a share of Stock; provided, however, that in the event that a Grantee is a Ten Percent Stockholder, the Option Price of an Option granted to such Grantee that is intended to be
an Incentive Stock Option shall be not less than 110 percent of the Fair Market Value of a share of Stock on the Grant Date. In no case shall the Option Price of any Option be less than the par value of a share of Stock. 

8.2. Vesting. 

Subject to Sections 8.3 and 17.3 hereof, each Option granted under the Plan shall become exercisable at such times and under
such conditions as shall be determined by the Committee and stated in the Award Agreement. For purposes of this Section 8.2, fractional numbers of shares of Stock subject to an Option shall be rounded down to the next nearest whole
number. 
 8.3. Term. 
 Each Option granted under the Plan shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of ten years from the date such Option is granted, or under such
circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Committee and stated in the Award Agreement relating to such Option; provided, however, that in the event that the Grantee is a Ten
Percent Stockholder, an Option granted to such Grantee that is intended to be an Incentive Stock Option shall not be exercisable after the expiration of five years from its Grant Date. If on the day preceding the date on which a Grantee’s
Options would otherwise terminate, the Fair Market Value of shares of Stock underlying a Grantee’s Options is greater than the Option Price of such Options, the Company shall, prior to the termination of such Options and without any action
being taken on the part of the Grantee, consider such Options to have been exercised by the Grantee. The 
  

  
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 Company shall deduct from the shares of Stock deliverable to the Grantee upon such exercise the number of
shares of Stock necessary to satisfy payment of the Option Price and all withholding obligations. 
 8.4. Termination of Service.

 Each Award Agreement shall set forth the extent to which the Grantee shall have the right to exercise the Option
following termination of the Grantee’s Service. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons
for termination of Service. 
 8.5. Limitations on Exercise of Option. 

Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in whole or in part, prior to the date the Plan
is approved by the stockholders of the Company as provided herein or after the occurrence of an event referred to in Section 17 hereof which results in termination of the Option. 
 8.6. Method of Exercise. 
 An Option that is exercisable may be
exercised by the Grantee’s delivery to the Company of written notice of exercise on any business day, at the Company’s principal office, on the form specified by the Company. Such notice shall specify the number of shares of Stock with
respect to which the Option is being exercised and shall be accompanied by payment in full of the Option Price of the shares for which the Option is being exercised plus the amount (if any) of federal and/or other taxes which the Company may, in its
judgment, be required to withhold with respect to an Award. The minimum number of shares of Stock with respect to which an Option may be exercised, in whole or in part, at any time shall be the lesser of (i) 100 shares or such lesser
number set forth in the applicable Award Agreement and (ii) the maximum number of shares available for purchase under the Option at the time of exercise. 
 8.7. Rights of Holders of Options 
 Unless otherwise stated in
the applicable Award Agreement, an individual holding or exercising an Option shall have none of the rights of a stockholder (for example, the right to receive cash or dividend payments or distributions attributable to the subject shares of Stock or
to direct the voting of the subject shares of Stock ) until the shares of Stock covered thereby are fully paid and issued to him. Except as provided in Section 17 hereof, no adjustment shall be made for dividends, distributions or other
rights for which the record date is prior to the date of such issuance. 
 8.8. Delivery of Stock Certificates. 

Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price, such Grantee shall be entitled to the
issuance of a stock certificate or certificates evidencing his or her ownership of the shares of Stock subject to the Option. Notwithstanding any other provision of this Plan to the contrary, the Company may elect to satisfy any requirement under
this Plan for the delivery of stock certificates through the use of book-entry. 
 8.9. Transferability of Options

 Except as provided in Section 8.10, during the lifetime of a Grantee, only the Grantee (or, in the event
of legal incapacity or incompetency, the Grantee’s guardian or legal representative) may exercise an Option. Except as provided in Section 8.10, no Option shall be assignable or transferable by the Grantee to whom it is granted,
other than by will or the laws of descent and distribution. 
 8.10. Family Transfers. 

If authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or part of an Option which is not an Incentive
Stock Option to any Family Member. For the purpose of this Section 8.10, a “not for value” transfer is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property
rights; or (iii) a transfer to an entity in which more than fifty percent of the voting interests are owned by Family Members (or the Grantee) in exchange for an interest in that entity. Following a transfer under this Section 8.10,
any such Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer. Subsequent transfers of transferred Options are prohibited except to Family Members of the original Grantee in accordance
with this Section 8.10 or by will or the laws of descent and distribution. The events of termination of Service of Section 8.4 hereof shall continue to be applied with respect to the original Grantee, following which the
Option shall be exercisable by the transferee only to the extent, and for the periods specified, in Section 8.4. 

  
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 8.11. Limitations on Incentive Stock Options. 

An Option shall constitute an Incentive Stock Option only (i) if the Grantee of such Option is an employee of the Company or any
Subsidiary of the Company; (ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of the shares of Stock with
respect to which all Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Grantee’s employer and its Affiliates) does not exceed $100,000. This
limitation shall be applied by taking Options into account in the order in which they were granted. 
 8.12. Notification of
Disqualifying Disposition 
 If any Grantee shall make any disposition of Shares issued pursuant to the exercise of an
Incentive Stock Option under the circumstances described in Code Section 421(b) (relating to certain disqualifying dispositions), such Grantee shall notify the Company of such disposition within ten (10) days thereof. 

 

	9.	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS  

 9.1. Right to Payment and Grant Price. 
 A SAR shall confer on
the Grantee to whom it is granted a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of one share of Stock on the date of exercise over (B) the grant price of the SAR as determined by the Committee. The
Award Agreement for a SAR shall specify the grant price of the SAR, which shall be at least the Fair Market Value of a share of Stock on the date of grant. SARs may be granted in conjunction with all or part of an Option granted under the Plan or at
any subsequent time during the term of such Option, in conjunction with all or part of any other Award or without regard to any Option or other Award; provided that a SAR that is granted subsequent to the Grant Date of a related Option must have a
SAR Exercise Price that is no less than the Fair Market Value of one share of Stock on the SAR Grant Date. 
 9.2. Other Terms.

 The Committee shall determine at the date of grant or thereafter, the time or times at which and the circumstances
under which a SAR may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements), the time or times at which SARs shall cease to be or become exercisable following termination of Service
or upon other conditions, the method of exercise, method of settlement, form of consideration payable in settlement, method by or forms in which Stock will be delivered or deemed to be delivered to Grantees, whether or not a SAR shall be in tandem
or in combination with any other Award, and any other terms and conditions of any SAR. 
 9.3. Term. 

Each SAR granted under the Plan shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of
ten years from the date such SAR is granted, or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Committee and stated in the Award Agreement relating to such SAR. If on the day preceding
the date on which a Grantee’s SAR would otherwise terminate, the Fair Market Value of shares of Stock underlying a Grantee’s SAR is greater than the SAR Exercise Price of such SAR, the Company shall, prior to the termination of such SAR
and without any action being taken on the part of the Grantee, consider such SAR to have been exercised by the Grantee. The Company shall deduct from the shares of Stock deliverable to the Grantee upon such exercise the number of shares of Stock
necessary to satisfy payment of the SAR Exercise Price and all withholding obligations 

  
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 9.4. Transferability of SARS 

Except as provided in Section 9.5, during the lifetime of a Grantee, only the Grantee (or, in the event of legal incapacity or
incompetency, the Grantee’s guardian or legal representative) may exercise a SAR. Except as provided in Section 9.5, no SAR shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of
descent and distribution. 
 9.5. Family Transfers. 
 If authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or part of a SAR to any Family Member. For the purpose of this Section 9.5, a “not for
value” transfer is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property rights; or (iii) a transfer to an entity in which more than fifty percent of the voting
interests are owned by Family Members (or the Grantee) in exchange for an interest in that entity. Following a transfer under this Section 9.5, any such SAR shall continue to be subject to the same terms and conditions as were applicable
immediately prior to transfer. Subsequent transfers of transferred SARs are prohibited except to Family Members of the original Grantee in accordance with this Section 9.5 or by will or the laws of descent and distribution. 

 

	10.	TERMS AND CONDITIONS OF RESTRICTED STOCK AND STOCK UNITS  

 10.1. Grant of Restricted Stock. 
 Awards of Restricted Stock or
Stock Units may be made for no consideration (other than par value of the shares which is deemed paid by Services already rendered). 

10.2. Restrictions. 
 At the time a grant of Restricted Stock or Stock Units is made, the Committee may, in its sole discretion, establish a period of time (a “restricted period”) applicable to such Restricted Stock
or Stock Units. Each Award of Restricted Stock or Stock Units may be subject to a different restricted period. The Committee may, in its sole discretion, at the time a grant of Restricted Stock or Stock Units is made, prescribe restrictions in
addition to or other than the expiration of the restricted period, including the satisfaction of corporate or individual performance objectives, which may be applicable to all or any portion of the Restricted Stock or Stock Units in accordance with
Section 14.1 and 14.2. Restricted Stock, Stock Units Awards or Other Stock-Based Awards may be granted or sold as described in the preceding sentence in respect of past or future services and other valid consideration, or in lieu
of, or in addition to, any cash compensation due to such Grantee. Notwithstanding the foregoing, Restricted Stock and Stock Units that vest solely by the passage of time shall not vest in full in less than three (3) years from the Grant Date;
provided, however, up to ten percent of the shares reserved for issuance under this Plan may be granted pursuant to this Section 10 or the other provisions of this Plan without being subject to the foregoing restrictions. Restricted Stock and
Stock Units for which vesting may be accelerated by achieving performance targets shall not vest in full in less than one (1) year from the Grant Date. Neither Restricted Stock nor Stock Units may be sold, transferred, assigned, pledged or
otherwise encumbered or disposed of during the restricted period or prior to the satisfaction of any other restrictions prescribed by the Committee with respect to such Restricted Stock or Stock Units. The limitations stated in this
Section 10.2 apply to Sections 13 and 14. 
 10.3. Restricted Stock Certificates. 

The Company shall issue, in the name of each Grantee to whom Restricted Stock has been granted, stock certificates representing the total
number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date. The Committee may provide in an Award Agreement that either (i) the Secretary of the Company shall hold such certificates for
the Grantee’s benefit until such time as the Restricted Stock is forfeited to the Company or the restrictions lapse, or (ii) such certificates shall be delivered to the Grantee, provided, 

 

  
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 however, that such certificates shall bear a legend or legends that comply with the applicable
securities laws and regulations and makes appropriate reference to the restrictions imposed under the Plan and the Award Agreement. Notwithstanding any other provision of this Plan to the contrary, the Company may elect to satisfy any requirement
under this Plan for the delivery of stock certificates through the use of book-entry. 
 10.4. Rights of Holders of Restricted Stock.

 Unless the Committee otherwise provides in an Award Agreement, holders of Restricted Stock shall have the right to
vote such Stock and the right to receive any dividends declared or paid with respect to such Stock. The Committee may provide that any dividends paid on Restricted Stock must be reinvested in shares of Stock, which may or may not be subject to the
same vesting conditions and restrictions applicable to such Restricted Stock. All distributions, if any, received by a Grantee with respect to Restricted Stock as a result of any stock split, stock dividend, combination of shares, or other similar
transaction shall be subject to the restrictions applicable to the original Grant. 
 10.5. Rights of Holders of Stock Units.

 10.5.1. Voting and Dividend Rights. 
 Holders of Stock Units shall have no rights as stockholders of the Company. The Committee may provide in an Award Agreement evidencing a grant of Stock Units that the holder of such Stock Units shall be
entitled to receive, upon the Company’s payment of a cash dividend on its outstanding Stock, a cash payment for each Stock Unit held equal to the per-share dividend paid on the Stock. Such Award Agreement may also provide that such cash payment
will be deemed reinvested in additional Stock Units at a price per unit equal to the Fair Market Value of a share of Stock on the date that such dividend is paid. 
 10.5.2. Creditor’s Rights. 
 A holder of Stock Units shall have
no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Award Agreement. 

10.6. Termination of Service. 
 Unless the Committee otherwise provides in an Award Agreement or in writing after the Award Agreement is issued, upon the termination of a Grantee’s Service, any Restricted Stock or Stock Units held
by such Grantee that have not vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited. Such provisions shall be determined in the sole discretion of the Committee, need not
be uniform among all Restricted Stock and Stock Unit Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service. Upon forfeiture of Restricted Stock or Stock Units, the Grantee shall have no
further rights with respect to such Award, including but not limited to any right to vote Restricted Stock or any right to receive dividends with respect to shares of Restricted Stock or Stock Units. 

10.7. Purchase of Restricted Stock. 
 The Grantee shall be required, to the extent required by applicable law, to purchase the Restricted Stock from the Company at a Purchase Price equal to the greater of (i) the aggregate par value of
the shares of Stock represented by such Restricted Stock or (ii) the Purchase Price, if any, specified in the Award Agreement relating to such Restricted Stock. The Purchase Price shall be payable in a form described in Section 11
or, in the discretion of the Committee, in consideration for past or future Services rendered to the Company or an Affiliate. 

10.8. Delivery of Stock. 
 Upon the expiration or termination of any restricted period and the satisfaction of any other conditions prescribed by the Committee, the restrictions applicable to shares of Restricted Stock or Stock
Units settled in Stock shall lapse, and, unless otherwise provided in the Award Agreement, a stock certificate for such shares shall be delivered, free of all such restrictions, to the Grantee or the Grantee’s beneficiary or estate, as the case
may be. Neither the Grantee, nor the Grantee’s beneficiary or estate, shall have any further rights with regard to a Stock Unit once the share of Stock represented by the Stock Unit has been delivered. 

  
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	11.	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK  

 11.1. General Rule. 
 Payment of the Option Price for the shares
purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock shall be made in cash or in cash equivalents acceptable to the Company. 
 11.2. Surrender of Stock. 
 To the extent the Award Agreement so
provides, payment of the Option Price for shares purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock, if any, may be made all or in part through the tender to the Company of shares of Stock, which shall be
valued, for purposes of determining the extent to which the Option Price or Purchase Price has been paid thereby, at their Fair Market Value on the date of exercise or surrender. 
 11.3. Cashless Exercise. 
 With respect to an Option only (and
not with respect to Restricted Stock), to the extent permitted by law and to the extent the Award Agreement so provides, payment of the Option Price for shares purchased pursuant to the exercise of an Option may be made all or in part by delivery
(on a form acceptable to the Committee) of an irrevocable direction to a licensed securities broker acceptable to the Company to sell shares of Stock and to deliver all or part of the sales proceeds to the Company in payment of the Option Price and
any withholding taxes described in Section 18.3. 
 11.4. Other Forms of Payment. 

To the extent the Award Agreement so provides, payment of the Option Price for shares purchased pursuant to exercise of an Option or the
Purchase Price for Restricted Stock may be made in any other form that is consistent with applicable laws, regulations and rules. 
  

	12.	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS  

 12.1. Dividend Equivalent Rights. 
 A Dividend Equivalent Right
is an Award entitling the recipient to receive credits based on cash distributions that would have been paid on the shares of Stock specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and
held by the recipient. A Dividend Equivalent Right may be granted hereunder to any Grantee. The terms and conditions of Dividend Equivalent Rights shall be specified in the grant. Dividend equivalents credited to the holder of a Dividend Equivalent
Right may be paid currently or may be deemed to be reinvested in additional shares of Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on the date of reinvestment. Dividend Equivalent
Rights may be settled in cash or Stock or a combination thereof, in a single installment or installments, all determined in the sole discretion of the Committee. A Dividend Equivalent Right granted as a component of another Award may provide that
such Dividend Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as
such other award. A Dividend Equivalent Right granted as a component of another Award may also contain terms and conditions different from such other award. 
 12.2. Termination of Service. 
 Except as may otherwise be
provided by the Committee either in the Award Agreement or in writing after the Award Agreement is issued, a Grantee’s rights in all Dividend Equivalent Rights or interest equivalents shall automatically terminate upon the Grantee’s
termination of Service for any reason. 
  

  
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	13.	OTHER STOCK-BASED AWARDS AND LLC UNITS  

 Other forms of Awards (“Other Stock-Based Awards) that may be granted under the Plan include Awards that are valued in whole or in part by reference to, or are otherwise calculated by reference to or
based on, shares of Stock, including without limitation, (i) LLC Units, (ii) convertible preferred stock, convertible debentures and other convertible, exchangeable or redeemable securities or equity interests (including LLC Units),
(iii) membership interests in a Subsidiary or operating partnership, (iv) Awards valued by reference to Book Value, fair value or Subsidiary performance, and (v) any class of profits interest or limited liability company membership
interest created or issued pursuant to the terms of the partnership agreement, limited liability company operating agreement or otherwise by an Affiliate that has elected to be treated as a partnership for federal income tax purposes and qualifies
as a “profits interest” within the meaning of Revenue Procedure 93-27 with respect to a Grantee who is rendering services to the issuing Affiliate. 
 For purposes of calculating the number of shares of Stock underlying an Other Stock-Based Award relative to the total number of shares of Stock reserved and available for issuance under this Section, the
Committee shall establish in good faith the maximum number of shares of Stock to which a Grantee of such Other Stock-Based Award may be entitled upon fulfillment of all applicable conditions set forth in the relevant Award documentation, including
vesting, accretion factors, conversion ratios, exchange ratios and the like. If and when any such conditions are no longer capable of being met, in whole or in part, the number of shares of Stock underlying such Other Stock-Based Award shall be
reduced accordingly by the Committee and the related shares of Stock shall be added back to the shares of Stock available for issuance under the Plan. Other Stock-Based Awards may be issued either alone or in addition to other Awards granted under
the Plan and shall be evidenced by an award agreement. The Committee shall determine the Grantees to whom, and the time or times at which, Other Stock-Based Awards shall be made; the number of shares of Stock or LLC Units to be awarded; the price,
if any, to be paid by the Grantee for the acquisition of Other Stock-Based Awards; and the restriction and conditions applicable to Other Stock-Based Awards. Conditions may be based on continuing employment (or other service relationship),
computation of financial metrics and/or achievement of pre-established performance goals and objectives. The Committee may require that Other Stock-Based Awards be held through a limited partnership or similar “look-through” entity, and
the Committee may require such limited partnership or similar entity to impose restrictions on its partners or other beneficial owners that are not inconsistent with the provisions of this Section. The provision of the grant of Other Stock-Based
Awards need not be the same with respect to each Grantee. 
 Subject to the provisions of this Plan and the award agreement or
such other agreement and unless otherwise determined by the Committee at grant, the Grantee of an award under this Section shall be entitled to receive, currently or on a deferred basis, interest or dividends or interest equivalents or Dividend
Equivalent Rights with respect to the number of shares of Stock covered by the Award, as determined at the time of the Award by the Committee, in its sole discretion, and the Committee may provide that such amounts (if any) shall be deemed to have
been reinvested in additional shares of Stock or otherwise reinvested. 
 Shares of Stock (including securities convertible into
shares of Stock) issued on a bonus basis under this Section may be issued for no cash consideration. 
  

	14.	TERMS AND CONDITIONS OF PERFORMANCE AND ANNUAL INCENTIVE AWARDS  

 14.1. Performance Conditions 
 The right of a Grantee to
exercise or receive a grant or settlement of any Award, and the timing thereof, may be subject to such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it
may deem appropriate in establishing any performance conditions, and may exercise its discretion to reduce the amounts payable under any Award subject to performance conditions, except as limited under Sections 14.2 hereof in the case of
a Performance Award or Annual Incentive Award intended to qualify under Code Section 162(m). The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement of performance goals pursuant to the
performance conditions set forth in this Section 14. If and to the extent required under Code Section 162(m), any power or authority relating to a Performance Award or Annual Incentive Award intended to qualify under Code
Section 162(m), shall be exercised by the Committee and not the Board. 

  
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 In the event that applicable tax and/or securities laws change to permit Board discretion to
alter the governing performance measures without obtaining shareholder approval of such changes, the Board shall have sole discretion to make such changes without obtaining shareholder approval provided the exercise of such discretion does not
violate Code Section 409A. In addition, in the event that the Committee determines that it is advisable to grant Awards that shall not qualify as performance-based compensation, the Committee may make such grants without satisfying the
requirements of Code Section 162(m) and base vesting on performance measures other than those set forth in this Section 14. 

14.2. Performance or Annual Incentive Awards Granted to Designated Covered Employees 

If and to the extent that the Committee determines that a Performance or Annual Incentive Award to be granted to a Grantee who is
designated by the Committee as likely to be a Covered Employee should qualify as “performance-based compensation” for purposes of Code Section 162(m), the grant, exercise and/or settlement of such Performance or Annual Incentive Award
shall be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 14.2. 

14.2.1. Performance Goals Generally. 
 The performance goals for such Performance or Annual Incentive Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to each of such criteria, as
specified by the Committee consistent with this Section 14.2. Performance goals shall be objective and shall otherwise meet the requirements of Code Section 162(m) and regulations thereunder including the requirement that the level
or levels of performance targeted by the Committee result in the achievement of performance goals being “substantially uncertain.” The Committee may determine that such Performance or Annual Incentive Awards shall be granted, exercised
and/or settled upon achievement of any one performance goal or that two or more of the performance goals must be achieved as a condition to grant, exercise and/or settlement of such Performance or Annual Incentive Awards. Performance goals may
differ for Performance or Annual Incentive Awards granted to any one Grantee or to different Grantees. 
 14.2.2. Business Criteria.

 One or more of the following business criteria for the Company, on a consolidated basis, and/or specified subsidiaries or
business units of the Company (except with respect to the total stockholder return and earnings per share criteria), shall be used by the Committee (and not by the Board) in establishing performance goals for such Performance or Annual Incentive
Awards: (1) total stockholder return; (2) such total stockholder return as compared to total return (on a comparable basis) of a publicly available index such as, but not limited to, the Standard & Poor’s 500 Stock Index;
(3) net income; (4) pretax earnings; (5) earnings before interest expense, taxes, depreciation and amortization, with or without adjustments used from time to time by the Company in its publicly filed financial statements;
(6) pretax operating earnings after interest expense and before bonuses, service fees, and extraordinary or special items; (7) operating margin; (8) earnings per share; (9) return on equity; (10) return on capital;
(11) return on investment; (12) operating earnings; (13) working capital; (14) ratio of debt to stockholders’ equity (15) revenue; (16) brand awareness; (17) revenue per available room; (18) number of
rooms or units; (19) debt reduction; (20) customer satisfaction; and (21) any other business criteria used in the Company’s publicly announced guidance. Business criteria may be measured on an absolute basis or on a relative
basis (i.e., performance relative to peer companies) and on a GAAP or non-GAAP basis. The Committee may provide, in a manner that meets the requirements of Code Section 162(m) that any evaluation of performance may include or exclude any of the
following events that occur during the applicable performance period: (a) asset write-downs; (b) litigation or claim judgments or settlements; (c) the effect of changes in tax laws, accounting principles or other laws or provisions
affecting reported results; (d) any reorganization or restructuring programs; (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s discussing and analysis of
financial condition and results of operations appearing in the Company’s annual report to shareholders for the applicable year; (f) acquisitions or divestitures; and (g) foreign exchange gains and losses. To the extent such inclusions
or exclusions affect Awards to Covered Employees, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility. 
  

  
 A-15

 14.2.3. Timing For Establishing Performance Goals. 

Performance goals shall be established not later than the earlier of (i) 90 days after the beginning of any performance period
applicable to such Performance or Annual Incentive Awards and (ii) the day on which 25% of any performance period applicable to such Awards has expired, or at such other date as may be required or permitted for “performance-based
compensation” under Code Section 162(m). 
 14.2.4. Settlement of Performance or Annual Incentive Awards; Other Terms.

 Settlement of such Performance or Annual Incentive Awards shall be in cash, Stock, other Awards or other property, in the
discretion of the Committee. The Committee may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with such Performance or Annual Incentive Awards. The Committee shall specify the circumstances in which such
Performance or Annual Incentive Awards shall be paid or forfeited in the event of termination of Service by the Grantee prior to the end of a performance period or settlement of Performance Awards. 

14.3. Written Determinations. 
 All determinations by the Committee as to the establishment of performance goals, the amount of any potential Performance Awards and as to the achievement of performance goals relating to Performance
Awards, and the amount of any potential individual Annual Incentive Awards and the amount of final Annual Incentive Awards, shall be made in writing in the case of any Award intended to qualify under Code Section 162(m). To the extent permitted
by Section 162(m), the Committee may delegate any responsibility relating to such Performance Awards or Annual Incentive Awards. 

14.4. Status of Section 14.2 Awards Under Code Section 162(m) 

It is the intent of the Company that Performance Awards and Annual Incentive Awards under Section 14.2 hereof granted to
persons who are designated by the Committee as likely to be Covered Employees within the meaning of Code Section 162(m) and regulations thereunder shall, if so designated by the Committee, constitute “qualified performance-based
compensation” within the meaning of Code Section 162(m) and regulations thereunder. Accordingly, the terms of Section 14.2, including the definitions of Covered Employee and other terms used therein, shall be interpreted in a
manner consistent with Code Section 162(m) and regulations thereunder. The foregoing notwithstanding, because the Committee cannot determine with certainty whether a given Grantee will be a Covered Employee with respect to a fiscal year that
has not yet been completed, the term Covered Employee as used herein shall mean only a person designated by the Committee, at the time of grant of Performance Awards or an Annual Incentive Award, as likely to be a Covered Employee with respect to
that fiscal year. If any provision of the Plan or any agreement relating to such Performance Awards or Annual Incentive Awards does not comply or is inconsistent with the requirements of Code Section 162(m) or regulations thereunder, such
provision shall be construed or deemed amended to the extent necessary to conform to such requirements. 
  

	15.	PARACHUTE LIMITATIONS  

Notwithstanding any other provision of this Plan or of any other agreement, contract, or understanding heretofore or hereafter entered
into by a Grantee with the Company or any Affiliate, except an agreement, contract, or understanding that expressly addresses Section 280G or Section 4999 of the Code (an “Other Agreement”), and notwithstanding any formal or
informal plan or other arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or beneficiaries of which the Grantee is a member), whether or not such compensation is deferred, is in
cash, or is in the form of a benefit to or for the Grantee (a “Benefit Arrangement”), if the Grantee is a “disqualified individual,” as defined in Section 280G(c) of the Code, any Option, Restricted Stock or Stock Unit held
by that Grantee and any right to receive any payment or other benefit under this Plan shall not become exercisable or vested (i) to the extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights,
payments, or benefits to or for the Grantee under this Plan, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Grantee under this Plan to be considered a “parachute payment” within the meaning of
Section 280G(b)(2) of the Code as then in effect 

  
 A-16

 (a “Parachute Payment”) and (ii) if, as a result of receiving a Parachute Payment, the
aggregate after-tax amounts received by the Grantee from the Company under this Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by the Grantee without causing any such
payment or benefit to be considered a Parachute Payment. In the event that the receipt of any such right to exercise, vesting, payment, or benefit under this Plan, in conjunction with all other rights, payments, or benefits to or for the Grantee
under any Other Agreement or any Benefit Arrangement would cause the Grantee to be considered to have received a Parachute Payment under this Plan that would have the effect of decreasing the after-tax amount received by the Grantee as described in
clause (ii) of the preceding sentence, then the Grantee shall have the right, in the Grantee’s sole discretion, to designate those rights, payments, or benefits under this Plan, any Other Agreements, and any Benefit Arrangements that
should be reduced or eliminated so as to avoid having the payment or benefit to the Grantee under this Plan be deemed to be a Parachute Payment; provided, however, that in order to comply with Code Section 409A, the reduction or elimination
will be performed in the order in which each dollar of value subject to an Award reduces the Parachute Payment to the greatest extent. 
  

	16.	REQUIREMENTS OF LAW  

16.1. General. 

The Company shall not be required to sell or issue any shares of Stock under any Award if the sale or issuance of such shares would
constitute a violation by the Grantee, any other individual exercising an Option, or the Company of any provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or
regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any shares subject to an Award upon any securities exchange or under any governmental regulatory body is necessary or
desirable as a condition of, or in connection with, the issuance or purchase of shares hereunder, no shares of Stock may be issued or sold to the Grantee or any other individual exercising an Option pursuant to such Award unless such listing,
registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Award. Without limiting
the generality of the foregoing, in connection with the Securities Act, upon the exercise of any Option or any SAR that may be settled in shares of Stock or the delivery of any shares of Stock underlying an Award, unless a registration statement
under such Act is in effect with respect to the shares of Stock covered by such Award, the Company shall not be required to sell or issue such shares unless the Committee has received evidence satisfactory to it that the Grantee or any other
individual exercising an Option may acquire such shares pursuant to an exemption from registration under the Securities Act. Any determination in this connection by the Committee shall be final, binding, and conclusive. The Company may, but shall in
no event be obligated to, register any securities covered hereby pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the exercise of an Option or a SAR or the issuance of shares of
Stock pursuant to the Plan to comply with any law or regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement that an Option (or SAR that may be settled in shares of Stock) shall not be exercisable
until the shares of Stock covered by such Option (or SAR) are registered or are exempt from registration, the exercise of such Option (or SAR) (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the
effectiveness of such registration or the availability of such an exemption. 
 16.2. Rule 16b-3. 

During any time when the Company has a class of equity security registered under Section 12 of the Exchange Act, it is the intent of
the Company that Awards pursuant to the Plan and the exercise of Options and SARs granted hereunder will qualify for the exemption provided by Rule 16b-3 under the Exchange Act. To the extent that any provision of the Plan or action by the
Committee does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted by law and deemed advisable by the Committee, and shall not affect the validity of the Plan. In the event that Rule 16b-3
is revised or replaced, the Committee may exercise its discretion to modify this Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the revised exemption or its replacement. 

 

  
 A-17

 17. EFFECT OF CHANGES IN CAPITALIZATION 
 17.1. Changes in Stock. 
 If the number of outstanding shares of
Stock is increased or decreased or the shares of Stock are changed into or exchanged for a different number or kind of shares or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse split,
combination of shares, exchange of shares, stock dividend or other distribution payable in capital stock, or other increase or decrease in such shares effected without receipt of consideration by the Company occurring after the Effective Date, the
number and kinds of shares for which grants of Options and other Awards may be made under the Plan shall be adjusted proportionately and accordingly by the Company. In addition, the number and kind of shares for which Awards are outstanding shall be
adjusted proportionately and accordingly so that the proportionate interest of the Grantee immediately following such event shall, to the extent practicable, be the same as immediately before such event. Any such adjustment in outstanding Options or
SARs shall not change the aggregate Option Price or SAR Exercise Price payable with respect to shares that are subject to the unexercised portion of an outstanding Option or SAR, as applicable, but shall include a corresponding proportionate
adjustment in the Option Price or SAR Exercise Price per share. The conversion of any convertible securities of the Company shall not be treated as an increase in shares effected without receipt of consideration. Notwithstanding the foregoing, in
the event of any distribution to the Company’s stockholders of securities of any other entity or other assets (including an extraordinary dividend but excluding a non-extraordinary dividend of the Company) without receipt of consideration by
the Company, the Company shall, in such manner as the Company deems appropriate, adjust (i) the number and kind of shares subject to outstanding Awards and/or (ii) the exercise price of outstanding Options and Stock Appreciation Rights to
reflect such distribution. 
 17.2. Reorganization in Which the Company Is the Surviving Entity Which does not Constitute a Corporate
Transaction. 
 Subject to Section 17.3 hereof, if the Company shall be the surviving entity in any
reorganization, merger, or consolidation of the Company with one or more other entities which does not constitute a Corporate Transaction, any Option or SAR theretofore granted pursuant to the Plan shall pertain to and apply to the securities to
which a holder of the number of shares of Stock subject to such Option or SAR would have been entitled immediately following such reorganization, merger, or consolidation, with a corresponding proportionate adjustment of the Option Price or SAR
Exercise Price per share so that the aggregate Option Price or SAR Exercise Price thereafter shall be the same as the aggregate Option Price or SAR Exercise Price of the shares remaining subject to the Option or SAR immediately prior to such
reorganization, merger, or consolidation. Subject to any contrary language in an Award Agreement evidencing an Award, any restrictions applicable to such Award shall apply as well to any replacement shares received by the Grantee as a result of the
reorganization, merger or consolidation. In the event of a transaction described in this Section 17.2, Stock Units shall be adjusted so as to apply to the securities that a holder of the number of shares of Stock subject to the Stock
Units would have been entitled to receive immediately following such transaction. 
 17.3. Corporate Transaction. 

Subject to the exceptions set forth in the last sentence of this Section 17.3 and the last sentence of
Section 17.4, upon the occurrence of a Corporate Transaction:  
 (i) all outstanding shares of
Restricted Stock shall be deemed to have vested, and all Stock Units shall be deemed to have vested and the shares of Stock subject thereto shall be delivered, immediately prior to the occurrence of such Corporate Transaction, and 

(ii) either of the following two actions shall be taken: 
 (A) fifteen days prior to the scheduled consummation of a Corporate Transaction, all Options and SARs outstanding hereunder shall become immediately exercisable and shall remain exercisable for a
period of fifteen days, or 
  

  
 A-18

 (B) the Committee may elect, in its sole discretion, to cancel any outstanding Awards
of Options, Restricted Stock, Stock Units and/or SARs and pay or deliver, or cause to be paid or delivered, to the holder thereof an amount in cash or securities having a value (as determined by the Committee acting in good faith), in the case of
Restricted Stock or Stock Units, equal to the formula or fixed price per share paid to holders of shares of Stock and, in the case of Options or SARs, equal to the product of the number of shares of Stock subject to the Option or SAR (the
“Award Shares”) multiplied by the amount, if any, by which (I) the formula or fixed price per share paid to holders of shares of Stock pursuant to such transaction exceeds (II) the Option Price or SAR Exercise Price applicable to
such Award Shares. 
 With respect to the Company’s establishment of an exercise window, (i) any exercise of an Option
or SAR during such fifteen-day period shall be conditioned upon the consummation of the event and shall be effective only immediately before the consummation of the event, and (ii) upon consummation of any Corporate Transaction the Plan, and
all outstanding but unexercised Options and SARs shall terminate. The Committee shall send written notice of an event that will result in such a termination to all individuals who hold Options and SARs not later than the time at which the Company
gives notice thereof to its stockholders. This Section 17.3 shall not apply to any Corporate Transaction to the extent that provision is made in writing in connection with such Corporate Transaction for the assumption or continuation of
the Options, SARs, Stock Units and Restricted Stock theretofore granted, or for the substitution for such Options, SARs, Stock Units and Restricted Stock for new common stock options and stock appreciation rights and new common stock units and
restricted stock relating to the stock of a successor entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number of shares (disregarding any consideration that is not common stock) and option and stock appreciation
right exercise prices (an “Equivalent Award”), in which event the Plan, Options, SARs, Stock Units and Restricted Stock theretofore granted shall continue in the manner and under the terms so provided. If the Grantee receives an Equivalent
Award in connection with a Corporate Transaction and his employment is terminated by the Company without Cause or by the employee with Good Reason within one year following the Corporate Transaction involuntarily, the Equivalent Award may be
exercised in full beginning on the date of such termination and for such period as the Committee shall determine. 

17.4. Adjustments. 
 Adjustments under this Section 17 related to shares of Stock or securities of the Company shall be made by the Committee, whose determination in that respect shall be final, binding and
conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share. The
Committee shall determine the effect of a Corporate Transaction upon Awards other than Options, SARs, Stock Units and Restricted Stock, and such effect shall be set forth in the appropriate Award Agreement. The Committee may provide in the Award
Agreements at the time of grant, or any time thereafter with the consent of the Grantee, for different provisions to apply to an Award in place of those described in Sections 17.1, 17.2 and 17.3. This Section 17 does
not limit the Company’s ability to provide for alternative treatment of Awards outstanding under the Plan in the event of change of control events that are not Corporate Transactions. 
 17.5. No Limitations on Company. 
 The making of Awards pursuant
to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell
or transfer all or any part of its business or assets. 
  

	18.	GENERAL PROVISIONS  

18.1. Disclaimer of Rights 
 No provision in the Plan or in any Award or Award Agreement shall be construed to confer upon any individual the right to remain in the employ or service of the Company or any Affiliate, or to interfere
in any way with any contractual or other right or authority of the Company either to increase or decrease the compensation or other payments to any individual at any time, or to terminate any employment or other relationship between any individual
and the Company. In addition, notwithstanding anything contained in the Plan to the contrary, unless 
  

  
 A-19

 otherwise stated in the applicable Award Agreement, no Award granted under the Plan shall be affected by any
change of duties or position of the Grantee, so long as such Grantee continues to be a director, officer, consultant or employee of the Company or an Affiliate. The obligation of the Company to pay any benefits pursuant to this Plan shall be
interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under the conditions prescribed herein. The Plan shall in no way be interpreted to require the Company to transfer any amounts to a third party
trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan. 

18.2. Nonexclusivity of the Plan 
 Neither the adoption of the Plan nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations upon the right and authority of the Committee
to adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual or particular individuals) as the Committee in its
discretion determines desirable, including, without limitation, the granting of equity awards otherwise than under the Plan. 

18.3. Withholding Taxes 
 The Company or an Affiliate, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any federal, state, or local taxes of any kind required by law to be
withheld with respect to the vesting of or other lapse of restrictions applicable to an Award or upon the issuance of any shares of Stock upon the exercise of an Option or pursuant to an Award. At the time of such vesting, lapse, or exercise, the
Grantee shall pay to the Company or the Affiliate, as the case may be, any amount that the Company or the Affiliate may reasonably determine to be necessary to satisfy such withholding obligation. Subject to the prior approval of the Company or the
Affiliate, which may be withheld by the Company or the Affiliate, as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, in whole or in part, (i) by causing the Company or the Affiliate to withhold shares
of Stock otherwise issuable to the Grantee or (ii) by delivering to the Company or the Affiliate shares of Stock already owned by the Grantee. The shares of Stock so delivered or withheld shall have an aggregate Fair Market Value equal to such
withholding obligations. The Fair Market Value of the shares of Stock used to satisfy such withholding obligation shall be determined by the Company or the Affiliate as of the date that the amount of tax to be withheld is to be determined. A Grantee
who has made an election pursuant to this Section 18.3 may satisfy his or her withholding obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. The
maximum number of shares of Stock that may be withheld from any Award to satisfy any federal, state or local tax withholding requirements upon the exercise, vesting, lapse of restrictions applicable to such Award or payment of shares pursuant to
such Award, as applicable, cannot exceed such number of shares having a Fair Market Value equal to the minimum statutory amount required by the Company to be withheld and paid to any such federal, state or local taxing authority with respect to such
exercise, vesting, lapse of restrictions or payment of shares. 
 18.4. Captions 

The use of captions in this Plan or any Award Agreement is for the convenience of reference only and shall not affect the meaning of any
provision of the Plan or such Award Agreement. 
 18.5. Other Provisions 

Each Award granted under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the
Committee, in its sole discretion. 
 18.6. Number and Gender 

With respect to words used in this Plan, the singular form shall include the plural form, the masculine gender shall include the feminine
gender, etc., as the context requires. 
  

  
 A-20

 18.7. Severability 

If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any
jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction. 

18.8. Governing Law 
 The validity and construction of this Plan and the instruments evidencing the Awards hereunder shall be governed by the laws of the State of Delaware, other than any conflicts or choice of law rule or
principle that might otherwise refer construction or interpretation of this Plan and the instruments evidencing the Awards granted hereunder to the substantive laws of any other jurisdiction. 
 18.9. Code Section 409A 
 The Committee intends to comply
with Code Section 409A, or an exemption to Code Section 409A, with regard to Awards hereunder that constitute nonqualified deferred compensation within the meaning of Code Section 409A. To the extent that the Committee determines that
a Grantee would be subject to the additional 20% tax imposed on certain nonqualified deferred compensation plans pursuant to Code Section 409A as a result of any provision of any Award granted under this Plan, such provision may be deemed
amended to the minimum extent necessary to avoid application of such additional tax. The nature of any such amendment shall be determined by the Committee. 
 *  *  * 
 To record adoption of the Plan by the Board as of
April 10, 2008, and approval of the Plan by the stockholders on May 20, 2008, and the amendment of the Plan by the Board as of April 5, 2012, and the approval by the stockholders on May 16, 2012, the Company has caused its authorized
officer to execute the Plan. 
  

			
	MORGANS HOTEL GROUP CO.
		
	By:	 	 /s/ Richard Szymanski

		 	Title: Chief Financial Officer

  
 A-21Susquehanna's amended and restated Short Term Incentive Plan

 Exhibit 10.3 

SUSQUEHANNA BANCSHARES, INC. 
 SHORT-TERM INCENTIVE PLAN 
 Introduction 

Susquehanna Bancshares, Inc. (the “Company”) has adopted this Short-Term Incentive Plan (the “Plan”) to provide a vehicle to reward
eligible employee’s for their contributions to the Company’s financial success. 
 Effective Date 

The Plan was originally effective as of January 1, 2011. The Plan is now amended and restated effective as of January 1, 2012. Each
January 1 to December 31 period will be the “Plan Year.” The Plan will be reviewed annually by the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) to ensure proper
alignment with the Company’s business objectives. The Compensation Committee retains the rights, as described below, to amend or modify the Plan at any time. 
 Purpose 
 The Plan’s objectives are to: 

 

	 	•	 	 Align executives, management and employees with the Company’s strategic plan and critical performance goals. 

 

	 	•	 	 Encourage teamwork and collaboration across all areas of the Company - the collective contributions from all our contributions will drive improved
business results. 

  

	 	•	 	 Motivate and reward the achievement of core performance objectives. 

 

	 	•	 	 Provide payouts commensurate with Company, affiliate, region, function, unit and/or employee performance – as defined by each participating role.

  

	 	•	 	 Provide competitive total compensation opportunities 

  

	 	•	 	 Enable the Company to attract, motivate and retain talented employees. 

 

	 	•	 	 Ensure our incentives are appropriately risk-balanced (i.e. do not unintentionally motivate inappropriate risk taking). 

 

	 	•	 	 Provide a program that is simple and easy to understand and administer. 

 The Plan is intended to meet the requirements for “qualified performance-based compensation” under section 162(m) of the Internal Revenue Code of 1986, as amended, and the regulations
promulgated thereunder (the “Code”) with respect to the named executive officers of the Company. 
 Plan Administration

 The Plan has been approved by the Compensation Committee, and the Compensation Committee will administer the Plan. The Compensation
Committee has the sole authority to interpret the Plan and to make or nullify any rules and procedures, as necessary, for proper administration of the Plan. The Compensation Committee will make all final determinations regarding cash compensation
paid to named executive officers under the Plan which for purposes of the Plan include all executive officers of the Company. Except as required by applicable law, determinations for other employees will be made by senior management subject to
review and approval by the Compensation Committee. Any determination by the Compensation Committee will be final and binding. 

 Participation and Eligibility 
 Selected full-time employees are eligible to participate in the Plan. Full-time employees will be nominated by senior management to be eligible to participate in the Plan. The Compensation Committee will
approve all named executive officers for participation in the Plan and will approve all other full-time employees as recommended by management for participation in the Plan. 
 Other criteria for participation include: 
  

	 	•	 	 An employee must be employed on a full-time basis by September 30 of the Plan Year to be eligible to participate in the Plan for the Plan Year. A
full-time employee hired after September 30 of the Plan Year must wait until the next applicable Plan Year to be eligible to participate in the Plan. 

 

	 	•	 	 An employee must have one or more approved goals in the “MyPerformance” system as of April 30 of a Plan Year (or such other date as is
set by the Compensation Committee for the Plan Year) or within 30 days after commencement of employment, if later, unless otherwise determined by the Compensation Committee. 

 

	 	•	 	 An employee must not be on a Performance Improvement Plan and must receive a performance rating of “Meets Expectations” (or such equivalent)
or better for the Plan Year and remain in good standing throughout the Plan Year. If an employee is placed on probation during the Plan Year, any Award earned will reduced on a prorata basis to reflect the time on probation.

  

	 	•	 	 An employee must be current with all regulatory and compliance requirements. 

 

	 	•	 	 An employee generally must be an active employee as of the Award payout date to receive an Award. 

For purposes of the Plan “employee” shall mean an employee of the Company (including an officer or director who is also an employee), but
excluding any individual (a) employed in a casual or temporary capacity (i.e., those hired for a specific job of limited duration), (b) whose terms of employment are governed by a collective bargaining agreement that does not provide for
participation in the Plan, (c) any individual characterized as a “leased employee” within the meaning of section 414(n) of the Code, (d) classified by the Company as a “contractor” or “consultant,” no matter
how characterized by the Internal Revenue Service, other governmental agency or a court, (e) employed as a mortgage loan originator as defined by TILA and Regulation Z, or (f) who participates in a different incentive plan sponsored by a
subsidiary of the Company. Any change of characterization of an individual by any court or government agency shall have no effect upon the classification of an individual as an employee for purposes of the Plan, unless the Compensation Committee
determines otherwise. Whether an employee is exempt or non-exempt shall be determined by the Company’s Human Resource Department based on the employee’s status as of the end of the Plan Year for which an Award is earned. Unless otherwise
specified herein, all references to employee in the Plan shall include both exempt and non-exempt employees. 
 Performance Period

 The performance period for the Plan is the Plan Year. 

 Incentive Targets 
 Each eligible employee will have a specified target annual cash incentive award (the “Target Award”), based on his or her role at the Company. Except as required by applicable law, the Target
Award is determined by the Compensation Committee for named executive officers and by senior management for all other eligible employees in their sole discretion. Target Awards are based on competitive practices and reflect the amount of the Award
to be paid for meeting predefined performance goals at the 100% level. Target Awards will be defined as a percentage of base earnings. Base earnings mean the amount of base salary but excluding overtime actually earned by an eligible employee for a
Plan Year, determined as of the last day of the Plan Year. This allows for an automatic conversion for part-time employees, employees who receive salary increases during the year, and employees who are employed after the start of the year.

 Actual awards (“Awards”) can range from 0% to 200% of target, to be established each year, depending on performance and may be
based on achievement of threshold (i.e. baseline), target and stretch (i.e. superior) performance which will be determined by the Compensation Committee or such other cap or limitation as the Compensation Committee may set for a Plan Year; provided
that for Awards intended to qualify as “qualified performance-based compensation” for purposes of section 162(m) of the Code the maximum amount payable to any employee under the Plan is 200% of base earnings. Performance below threshold
will result in no payout. 
 If an employee changes his or her role or is promoted during the Plan Year, and that promotion results in a higher
Target Award opportunity, he/she will be eligible for the new role’s Target Award opportunity on a pro rata basis. 
 In the event of an
approved leave of absence, the Target Award opportunity level for the year will be adjusted to reflect the time in active status. 

Performance Goals 
 For each Plan Year,
each eligible employee will have predefined performance goals that will be used, in part, to determine his or her Award. 
 There may be up to
four categories of performance goals for each eligible employee: 
  

	 	•	 	 Corporate, 

  

	 	•	 	 Division, 

  

	 	•	 	 Unit, 

  

	 	•	 	 And/or Individual (defined for each role). 

 All employees will have a portion of their incentive opportunity tied to Corporate performance. 

To the extent Awards are intended to qualify as “qualified performance based compensation” for purposes of section 162(m) of the Code,
performance goals will be set by the Compensation Committee no later than the earlier of (i) 90 days after the beginning of the Plan Year or (ii) the date on which 25% of the Plan Year has been completed, or such other date as may be
required or permitted under applicable regulations under section 162(m) of the Code and may be based on earnings or earnings growth (including but not limited to earnings per share or net income); economic profit, stockholder value added or economic
value added; return on equity, assets or investment; revenues; expenses; stock price or total stockholder return; regulatory compliance; satisfactory internal or external audits; improvement of financial or credit ratings; achievement

 
of asset quality objectives; achievement of balance sheet or income statement objectives, including, without limitation, capital and expense management; efficiency ratio; non-interest income to
total revenue ratio; net interest margin; credit quality measures (including non-performing asset ratio, net charge-off ratio, and reserve coverage of non-performing loans); net operating profit; loan growth; deposit growth; non-interest income
growth; market share; productivity ratios; achievement of risk management objectives; or any other objective goals established by the Compensation Committee. Such performance goals may also be particular to an eligible employee or the division,
department, branch, line of business, subsidiary or other unit in which the employee works, or may be based on attaining a specified absolute level of the performance goal, or a percentage increase or decrease in the performance goal compared to a
pre-established target, previous years’ results, or a designated market index or comparison group, all as determined by the Compensation Committee. 
 Performance targets and ranges for each corporate performance goal will be recommended by management and approved by the Compensation Committee. Target Awards may provide for differing amounts to be paid
based on differing thresholds of performance. The Company will notify each eligible employee of the employee’s Target Award and the applicable performance goals for the Plan Year. The specific allocation of goals, including how the performance
goals are weighted, will be determined at the discretion of the Compensation Committee and may be based on the eligible employee’s role, key area of contribution or such other factor as determined by the Compensation Committee. 

For Awards intended to meet the requirements for “qualified performance-based compensation” under section 162(m) of Code, the Compensation
Committee will specify in the minutes (i) each employee’s Target Award, (ii) the performance goals for each eligible employee, and (iii) how the financial calculations for the performance goals will be made, including what, if
any, adjustments will be made in accordance with the Plan. The maximum dollar amount that may be paid to an eligible employee for a Plan Year is 200% of base earnings. For decisions with respect to Awards not intended to be “qualified
performance-based compensation,” the Compensation Committee will have flexibility in establishing the Target Award opportunity, performance goals and Award level for each eligible employee under the Plan. 

Award Levels 
 At the end of the Plan
Year (December 31st), or as soon as practical thereafter, performance is assessed against the specific goals established at the start of the Plan Year. An eligible employee will earn an Award for the Plan Year based on the level of achievement of
the performance goals established by the Compensation Committee for the Plan Year; provided that the Compensation Committee may reduce (but not increase) an Award below the level determined based on the Performance Goals. Unless the Compensation
Committee determines otherwise, Awards will be interpolated based on performance between the applicable performance levels. 
 Payout for each
goal is determined independently in arriving at the overall incentive payout. As a result, an eligible employee may not achieve baseline (threshold) performance on one goal but may still receive an Award based upon the level of attainment of other
performance goals (assuming the eligible employee maintains a minimum performance rating of “satisfactory” (or such equivalent) or better). 
 Awards under the Plan are based on the performance results for the Plan Year. Achieving higher levels of performance above target up to stretch will increase the Plan payouts to the eligible employee.
Similarly, achieving less than target performance will reduce the Plan payouts. 

 Adjustment to Target Awards and Performance goals 

Except with respect to Awards to named executive officers that are structured to satisfy the requirements for “qualified performance based
compensation” under section 162(m) of the Code, the Compensation Committee may at any time prior to the final determination of Awards change the Target Award opportunity of any eligible employee or assign a different Target Award opportunity to
an eligible employee to reflect any change in the employee’s responsibility level or position during the course of the performance period. 

In addition, the Compensation Committee may, but only to the extent consistent with the requirements of section 162(m) of the Code for Awards intended to
meet the requirements for “qualified performance-based compensation,” at any time prior to the financial determination of Awards, change the performance goals to reflect a change in corporate capitalization, such as a stock split or stock
dividend, or a corporate transaction, such as a merger, consolidation, separation, reorganization or partial or complete liquidation, or to equitably reflect the occurrence of any extraordinary event, any change in applicable accounting rules or
principles, any change in the Company’s method of accounting, any change in applicable law, any change due to any merger, consolidation, acquisition, reorganization, stock split, stock dividend, combination of shares or other changes in the
Company’s corporate structure or shares, or any other change of a similar nature. 
 Application of Section 162(m) of the Internal
Revenue Code 
 Awards structured to satisfy the requirements for “qualified performance based compensation” under section 162(m)
of the Code will be based on performance goals, including the requirement that the achievement of the performance goals be substantially uncertain at the time they are established and that the performance goals be established in such a way that a
third party with knowledge of the relevant facts could determine whether and to what extent the performance goals have been met. An Award that is designated as “qualified performance based compensation” under section 162(m) of the Code may
not be awarded as an alternative to any other award that is not designated as “qualified performance based compensation,” but instead must be separate and apart from all other awards made. The Compensation Committee is authorized to reduce
an Award for the Plan Year based upon its assessment of personal performance or other factors, but not to increase the Award beyond the amount determined based on achievement of the performance goals for that employee. Any reduction of an eligible
employee’s Award will not result in an increase in any other eligible employee’s Award. 
 Incentive Award Payments 

For Awards structured to satisfy the requirements for “qualified performance based compensation” under section 162(m) of the Code and for Awards
to named executive officers, the Compensation Committee will certify the performance goals for the Plan Year and the Awards that will be paid by the Company to each employee following the final determination of the Company’s financial results
for the Plan Year. Except as required by applicable law or as otherwise determined by the Compensation Committee, all other Awards will be approved by the Compensation Committee based on the achievement of the performance goals by the employee.

 Except as provided below and subject to the requirements of applicable law, employees who terminate during the Plan Year will not be eligible
to receive an Award for that Plan Year. Further, to encourage employees to remain in the employment of the Company, except as set forth herein, an employee must be an active employee of the Company on the date the applicable portion of the Award is
paid in accordance with the payment schedule set forth below. 

 Unless the Compensation Committee determines otherwise, Awards will be paid out to selected exempt employees
in three installments following the end of the Plan Year; provided that the employee remains employed through the applicable payment date, as follows: 50% of the Award will be paid out within two and one half months following the end of the Plan
Year (i.e. no later than March 15) (such actual date the “Payment Date”), 25% of the Award will be paid out on the first anniversary of the Payment Date and the remaining 25% of the Award will be paid out on the second anniversary of
the Payment Date. Payment of the installments may be subject to attainment of additional performance criteria as determined by the Compensation Committee. All Awards to non-exempt employees will be paid as a single lump sum cash payment on the
Payment Date. Awards may be paid in cash or equity, or a combination of the two, as determined by the Compensation Committee. If Award are paid in equity, such Awards shall be made under the Amended and Restated Susquehanna Bancshares, Inc. 2005
Equity Compensation Plan. 
 If an employee ceases to be employed by the Company prior to the end of the Plan Year for which an Award may be
earned due to death, disability (within the meaning of section 22(e)(3) of the Code) or on account of an early or normal retirement (as defined by Susquehanna Bancshares, Inc. Cash Balance Pension Plan), his or her Award under the Plan will be
pro-rated based on actual performance for the applicable Plan Year. Such pro-rated amount will be calculated by multiplying the amount of the Award that the employee would have received had he remained employed through the end of the Plan Year by a
fraction, the numerator of which is the number of completed calendar months during which the employee was employed by the Company during the Plan Year and the denominator of which is 12. Any Award owed to the employee will be paid to the employee,
or the employee’s estate, as applicable, in a lump sum on the Payment Date at the time Awards earned for the applicable Plan Year are paid under the Plan to other employees, but in any event not later than March 15 of the Plan Year
following the Plan Year for which the Award was earned. 
 If an exempt employee ceases to be employed by the Company due to death, disability
or on account of an early or normal retirement, at any time following the Payment Date but prior to one or both of the subsequent payment dates on the first or second anniversary of the Payment Date, the remaining amount of the Award not yet paid
will be paid in full within 30 days following the date of the exempt employee’s death, termination due to disability or early or normal retirement, as applicable. 
 Awards will be considered taxable income to employees in the year paid and will be subject to withholding for required income and other applicable taxes. 

Discretionary Awards 
 In addition to
Awards that are designated “qualified performance-based compensation” under section 162(m) of the Code, as described above, the Compensation Committee may grant to employees such other incentive awards as the Compensation Committee deems
appropriate, which may be based on Unit/Individual goals, Corporate/Company goals or such other criteria as the Compensation Committee determines. Decisions with respect to such incentive awards will be made separate and apart from the Awards
intended to be “qualified performance-based compensation.” 
 Taxes 
 The Company is authorized to withhold from any payment under the Plan, amounts of withholding and other taxes due in connection with a payment made under the Plan, and to take such other action as the
Compensation Committee may deem advisable to enable the Company and employees to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any payment 

 Application of Section 409A of the Internal Revenue Code 

The Plan is intended to comply with the requirements of section 409A of the Code, and shall in all respects be administered in accordance with section
409A of the Code or an exception thereto. Notwithstanding anything in the Plan to the contrary, payments may only be made upon an event and in a manner permitted by section 409A of the Code or an exception thereto. If a payment is not made by the
designated payment date under the Plan, the payment shall be made by December 31 of the calendar year in which the designated date occurs. For purposes of section 409A of the Code, all payments to be made upon an employee ceasing to be employed
by, or providing service to, the Company may only be made upon the employee’s “separation from service” (within the meaning of such term under section 409A of the Code). 
 Notwithstanding anything in the Plan to the contrary, if an employee is a “key employee” under section 409A of the Code and payment of any amount under the Plan is required to be delayed for a
period of six months after separation from service pursuant to section 409A of the Code, payment of such amount will be delayed as required by section 409A of the Code and will be paid within 10 days after the end of the six-month period. If the
employee dies during such six-month period, the amounts withheld on account of section 409A of the Code will be paid to the personal representative of the employee’s estate within 60 days after the date of the employee’s death. 

Limitations on Rights Conferred under Plan 
 Nothing contained in the Plan or in any documents related to the Plan will confer upon any employee any right to continue as an employee or in the employ of the Company or constitute any contract or
agreement of employment, or interfere in any way with the right of the Company to reduce such person’s compensation, to change the position held by such person or to terminate the employment of such employee, with or without cause, but nothing
contained in this Plan or any document related thereto will affect any other contractual right of any employee. No benefit payable under, or interest in, this Plan will be transferable by an employee except by will or the laws of descent and
distribution or otherwise be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge. 

Plan Changes or Discontinuance 
 The
Compensation Committee may add to, amend, modify or discontinue any of the terms or conditions of the Plan at any time; provided, however, that the Compensation Committee will not amend the Plan without shareholder approval if such approval is
required by section 162(m) of the Code. The Plan must be re-approved by the Company’s shareholders no later than the first shareholders’ meeting that occurs in the fifth year following the year in which the shareholders previously approved
the Plan, if additional Awards are to be paid under the Plan and if required by section 162(m) of the Code or the regulations thereunder. 

Ethics, Interpretation and Clawback 
 If
there is any ambiguity as to the meaning of any terms or provisions of this Plan or any questions as to the correct interpretation of any information contained therein, the Company’s interpretation expressed by the Compensation Committee will
be final and binding. 

 The altering, inflating, and/or inappropriate manipulation of performance/financial results or any other
infraction of recognized ethical business standards, will subject the employee to disciplinary action up to and including termination of employment. In addition, any incentive compensation as provided by this Plan to which the employee would
otherwise be entitled will be revoked. 
 All Awards under the Plan will be subject to any compensation, clawback and recoupment policies that
may be applicable to the employees of the Company, as in effect from time to time and as approved by the Board of Directors or a duly authorized committee thereof, whether or not approved before or after the effective date of the Plan. 

Severability 
 Each provision in this
Plan is severable, and if any provision is held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions will not, in any way, be affected or impaired thereby. 

Successors and Assigns 
 The provisions
of the Plan will be binding upon the Company and its successors and upon the employees and their legal representatives. 
 Governing Law

 The validity, construction, and effect of the Plan, any rules and regulations relating to the Plan, and any payment made under the Plan
will be determined in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to principles of conflicts of laws, and applicable federal law.

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