Document:

Exhibit 10.3

 

SEPARATION AGREEMENT

 

This Separation Agreement (“Agreement”) is entered into by and between Tobin Anderson (“Employee”) and Sally Beauty Supply LLC (“Employer”).

 

1.                                      Separation of Employment.  Employee separated from his employment with Employer on or about May 14, 2014 (the “Separation Date”).

 

2.                                      Consideration for Release.  In consideration of the release of all claims by Employee as provided for in this Agreement, and for the other agreements by Employee herein, Employer will provide Employee the following consideration (the “Release Consideration”), with the payments (other than the payment set forth in Section 2(b)) being payable within twenty-one (21) days after both parties have executed this Agreement, provided Employee shall not have revoked the Agreement within such period:

 

a.              A check in the amount of $300,000 (less any withholdings required by law or deductions authorized by the parties’ previous agreement or as otherwise agreed to in this Agreement), representing nine (9) months’ worth of Employee’s base salary;

 

b.              A check in the amount of $240,000 (less any withholdings required by law or deductions authorized by the parties’ previous agreement or as otherwise agreed to in this Agreement), representing Employee’s bonus payment pursuant to Employer’s Management Incentive Plan (MIP) for Fiscal Year 2014.  Such amount shall be payable to Employee at the same time as bonuses are paid to other participants in the MIP for Fiscal Year 2014, but not later than December 31, 2014;

 

c.               A check in the amount of $25,334.10 (less any withholdings required by law or deductions authorized by the parties’ previous agreement or as otherwise agreed to in this Agreement), representing the amount of Employee’s payments for continuing Employee’s health insurance pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 for a period of nine (9) months; and

 

d.              A check in the amount of $20,420 (less any withholdings required by law or deductions authorized by the parties’ previous agreement or as otherwise agreed to in this Agreement) for Employee to use for outplacement services.

 

e.               A check in the net amount of $117,484.45 (less any withholdings required by law or deductions authorized by the parties’ previous agreement or as otherwise agreed to in this Agreement), representing payment for Employee’s anticipated real estate fees and moving expenses to sell his current home and to move to another location.

 

Employee agrees that this Release Consideration is over and above any sums earned by Employee as wages, commissions and/or bonuses through the Separation Date.

 

Per Company policy, Employee will also be paid any accrued but unused vacation time.

 

3.                                      Release of Termination and Other Claims.  In consideration of the Release Consideration, Employee hereby fully, finally, and completely releases Employer and its predecessors, successors, parents, subsidiaries, affiliates, shareholders, partners, current and former officers, directors, employees, agents, attorneys and representatives (collectively, the “Released Parties”), from any and all claims, actions, demands, and/or causes of action, of whatever kind or character, whether now known or unknown, arising

 

 

from, relating to, or in any way connected with, facts or events occurring on or before the date on which Employee executes this Agreement.  Employee agrees that this Agreement includes a release of any and all negligence claims, contractual claims, wrongful discharge claims, and claims of discrimination or retaliation of every possible kind, including but not limited to, claims on the basis of race, color, sex, national origin, religion, disability, age, the Fair Labor Standards Act as amended and similar state or local wage laws (to the extent there is a bona fide dispute and permitted by applicable law), any personal injury claims, and any related attorneys’ fees and costs claims, if any, that Employee may have against Employer or any of the Released Parties.  Employee waives and releases Employer and the Released Parties from any claims that this Agreement was procured by fraud or signed under duress or coercion so as to make any of the terms or provisions of this Agreement not binding.  Employee understands and agrees that by signing this Agreement, Employee is giving up the right to pursue any legal or administrative claims that Employee may have against Employer or any of the Released Parties, except as otherwise specifically set forth herein.

 

This release excludes any claim which cannot be released by private agreement, such as workers’ compensation claims, claims of entitlement to vested benefits under any 401(k) plan or other ERISA-covered benefit plan provided by Employer, claims after the effective date of this Agreement, and the right to file administrative charges with certain government agencies.  Nothing in this Agreement shall be construed to prohibit Employee from filing a charge with or participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission, National Labor Relations Board, or a comparable state or local agency.

 

Notwithstanding the foregoing paragraph (and Paragraph 4), Employee agrees to waive any right to recover monetary damages in any charge, complaint, or lawsuit against Employer filed by Employee or by anyone else on Employee’s behalf.  Employee also agrees that: (a) Employee has been properly paid for all hours worked; (b) Employee has not suffered any on the job injury for which Employee has not already filed a claim; and (c) Employee has been properly provided any leaves of absence because of Employee’s health condition or a family member’s health condition and suffered no adverse action.

 

4.                                      ADEA and Texas Labor Code Claims.  Employee hereby acknowledges that Employee knowingly and voluntarily enters into this Agreement with the purpose of waiving and releasing any claims Employee may have under the Age Discrimination in Employment Act of 1967 (“ADEA”) and Texas Labor Code § 21.001 et seq. (“TLC”), and as such, Employee acknowledges and agrees that:

 

a.                                      this Agreement is written in a manner in which Employee fully understands;

 

b.                                      Employee specifically waives any rights or claims arising under the ADEA or the TLC;

 

c.                                       this Agreement does not waive rights or claims under the ADEA or the TLC that may arise after the date on which Employee executes this Agreement;

 

d.                                      the rights and claims waived in this Agreement are in exchange for consideration over and above anything to which Employee is already entitled;

 

e.                                       Employee acknowledges that by receipt of this Agreement, Employer has advised Employee, in writing, to consult with Employee’s attorney before executing this Agreement, and Employee has, in fact, had an opportunity to do so;

 

f.                                        Employee has been given a period of up to at least twenty-one (21) days within which to consider the execution of this Agreement; and

 

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g.                                       Employee acknowledges that Employee has a period of seven (7) days following the date Employee signs this Agreement within which Employee can revoke this Agreement, and this Agreement will not be effective until the seven-day revocation period has been exhausted.

 

Employee understands that nothing in this Agreement is intended to interfere with or deter Employee’s right to challenge the waiver of an ADEA claim or state law age discrimination claim or the filing of an ADEA charge or ADEA complaint or state law age discrimination complaint or charge with the Equal Employment Opportunity Commission or any state discrimination agency or commission or to participate in any investigation or proceeding conducted by those agencies.  Further, Employee understands that nothing in this Agreement would require Employee to tender back the money received under this Agreement if Employee seeks to challenge the validity of the ADEA or state law age discrimination waiver, nor does the Employee agree to ratify any ADEA or state law age discrimination waiver that fails to comply with the Older Workers’ Benefit Protection Act by retaining the money received under the Agreement.  Further, nothing in this Agreement is intended to require the payment of damages, attorneys’ fees or costs to Employer should Employee challenge the waiver of an ADEA or state law age discrimination claim or file an ADEA or state law age discrimination suit except as authorized by federal or state law.

 

Notwithstanding the foregoing paragraph, Employee agrees to waive any right to recover monetary damages in any charge, complaint, or lawsuit against Employer filed by Employee or by anyone else on Employee’s behalf.

 

5.                                      Confidentiality and Non-disparagement.  Employee agrees to keep the terms and conditions of this Agreement confidential to the extent allowed by law, except Employee may supply a copy to Employee’s accountant or other financial advisor solely in connection with preparing Employee’s income tax return, and Employee may disclose this Agreement to members of Employee’s immediate family and to Employee’s attorney on a confidential basis.  Employee also agrees to keep confidential any and all discussions, communications and documents relating to the issues and negotiations that led to this Agreement and the underlying facts, allegations, documents and communications related to any claims of discrimination Employee made during Employee’s employment with Employer.

 

Employee agrees that, in the course of employment with Employer, Employee has come to know certain general and specific information which is confidential and proprietary to Employer and/or its Affiliates (hereinafter “Confidential and Proprietary Information”). Generally, Confidential and Proprietary Information includes information about, relating to or concerning Employer and/or its Affiliates previously designated as confidential or proprietary by Employer, any information that is not known or available to the general public or Employer’s competitors or any information that would be injurious to Employer and/or its Affiliates if disclosed to a third party.

 

Employee agrees that all Confidential and Proprietary Information described in this Agreement is the exclusive property of Employer.  Employee promises and agrees that Employee will not disclose any Confidential and Proprietary Information to any other person or entity unless required by law.  Employee further agrees not to use such Confidential and Proprietary Information for any personal or business purpose. Employer acknowledges that information which is generally known in the legal profession is not Confidential and Proprietary Information.

 

Employee further agrees not to talk about or otherwise communicate to any third parties in a malicious, disparaging, or defamatory manner regarding Employer or any of the Released Parties.  Employee also agrees that Employee shall not make or authorize to be made any written or oral statement that may disparage or damage the reputation of Employer.  Employer agrees that its personnel at or above the level of Vice President shall not talk about or otherwise communicate to any third parties in a

 

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malicious, disparaging, or defamatory manner regarding Employee.  Employer also agrees that its personnel at or above the level of Vice President shall not make or authorize to be made any written or oral statement that may disparage or damage the reputation of Employee.

 

Nothing in this Agreement shall be construed to prohibit Employee from filing a charge with or participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission, National Labor Relations Board, or a comparable state or local agency.  Further, nothing in this section or any other provision of this Agreement shall be construed or enforced in a manner that would prevent Employee from testifying truthfully under oath in any court, arbitration, or administrative agency proceeding, or from filing a charge or providing truthful information in the course of a government investigation.  Nothing in this section or any other provision of this Agreement shall be construed or enforced in a manner that would interfere with Employee’s rights under the National Labor Relations Act, if any, to discuss or comment on Employee’s terms and conditions of employment.

 

Employee acknowledges that a breach of this Confidentiality provision shall constitute a breach of this entire Agreement and that, should such breach occur, Employer is entitled to:  (1) withhold any further payments not yet made pursuant to this Agreement; (2) repayment of any amounts paid to Employee pursuant to this Agreement; and (3) any reasonable attorneys’ fees and costs incurred by Employer in its efforts to enforce this Confidentiality provision.

 

6.                                      Tax Indemnification.  Employee acknowledges and agrees that Employer has not made any representations to him regarding the tax consequences of any amounts received by him pursuant to this Agreement.  The parties further agree that if any local, state or federal authority determines that the tax treatment for payments made under this Agreement is improper or impermissible, Employee shall be solely responsible for payment of all such taxes due, including interest and penalties, and Employee shall indemnify Employer for all such tax payments, including interest and penalties.  To the extent Employer is penalized for any failure to withhold or pay taxes, Employee agrees that he will indemnify Employer for its costs, expenses, fees (including reasonable and necessary attorneys’ fees) and/or penalties with respect to taxes or the failure to withhold.

 

7.                                      Employee’s Attorneys’ Fees and Costs.  Employee acknowledges and represents that all claims for attorneys’ fees, costs, or other recoverable expenses that Employee’s attorneys may hold against Employer as Employee’s attorneys will be satisfied solely by Employee himself.

 

8.                                      Employment Verification.  Employee agrees that for employment verification or reference purposes, he will only refer prospective employers to the third party service entitled “The Work Number” 1-800-367-5690 or www.theworknumber.com.  This online employment verification service can provide confirmation of employment and dates of employment.  The relevant employer code to use is 11140.  Should this service change, Employee agrees to use the third party service then used by Employer.

 

Should Employee desire a reference or other employment-related information not provided by The Work Number, Employee agrees that he may only contact Employer’s General Counsel to make such a request.  Any such request should be directed as follows:

 

Sally Beauty Holdings, Inc.

Attn:  General Counsel, Legal Department

3001 Colorado Boulevard

Denton, TX  76210

 

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9.                                      Miscellaneous.

 

a.                                      The “Effective Date” of this Agreement is the date that is eight (8) days following the date on which Employee signs this Agreement, so long as Employee has not revoked acceptance of this Agreement before such date.

 

b.                                      Entire Agreement/No Assignment.  This instrument sets forth the entire agreement between the parties and no representation, promise, or condition not contained herein will modify these terms.  The rights under this Agreement may not be assigned by Employee, unless Employer consents in writing to said assignment.  Employee represents that Employee has not assigned any of the claims related to the matters set forth herein.  Employee further represents that Employee alone, and not Employer, shall pay any attorneys’ fees, costs or lien related to Employee’s claims against Employer.

 

c.                                       Attorneys’ Fees.  In connection with any dispute arising under, from or as a result of this Agreement, the parties agree that the prevailing party or parties will be entitled to recover all costs or expenses incurred, including, without limitation, attorneys’ fees and fees for the services of accountants, paralegals, legal assistants and similar persons (including any appeals from any litigation and enforcement of judgments).  If Employee is awarded the right to recover costs and expenses under this Section 9(c), the reimbursement of an eligible expense shall be made within ten business days after Employer’s receipt of Employee’s respective written requests for payment accompanied with such evidence of costs and expenses incurred as Employer may require, but in no event later than March 15 of the year after the year in which such rights are established.

 

d.                                      No Admission of Liability. Employer’s payment of the Release Consideration does not constitute the admission of any liability.

 

e.                                       Read Agreement/Advice of Attorney.  Employee acknowledges that Employee has read and understood this Agreement, has been advised to and has had the opportunity to discuss it with an attorney of Employee’s own choice, agrees to its terms, acknowledges receipt of a copy of same and the sufficiency of the payment recited herein, and signs this Agreement voluntarily.

 

f.                                        Capacity to Execute.  The parties represent that they have the sole and exclusive right and full capacity to execute this Agreement.

 

g.                                       Applicable Law and Severability.  The parties agree that the terms of this Agreement are contractual in nature and not merely recitals and will be governed and construed in accordance with the laws of the State of Texas.  The parties further agree that should any part of this Agreement be declared or determined by a court of competent jurisdiction to be illegal, invalid, or unenforceable, the parties intend the legality, validity and enforceability of the remaining parts will not be affected thereby, and said illegal, invalid, or unenforceable part will be deemed not to be a part of the Agreement.

 

h.                                      Notice.  Any notice to be given to Employer hereunder will be deemed sufficient if addressed to Employer in writing and hand-delivered or mailed by certified mail to General Counsel, Sally Beauty Holdings, Inc., 3001 Colorado Boulevard, Denton, Texas 76210.  Any notice to be given to Employee hereunder will be deemed sufficient if addressed to Employee in writing and hand-delivered or mailed by certified mail to Employee at Employee’s last known address as shown on Employer’s records.  Either party may designate a different address or addresses by giving notice according to this Section.

 

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The parties have signed this Agreement on the dates written by the signatures below, to be effective on the Effective Date.  Notwithstanding any other provision in this Agreement, if Employee does not sign and deliver this Agreement to Employer at the address shown in the subsection under “Miscellaneous” entitled “Notice” on or before 23 days following Employee’s receipt of this Agreement, then this Agreement will be null and void and Employee will not be entitled to the Release Consideration described above.

 

 

	
 
    	
EMPLOYEE:
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:                  May 16,   2014
    	
/s/   Tobin Anderson
    
	
 
    	
TOBIN ANDERSON
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EMPLOYER:
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:                  May 16,   2014
    	
/s/   Gary Winterhalter
    
	
 
    	
GARY   WINTERHALTER
    
	
 
    	
CHAIRMAN &   CEO
    
	
 
    	
SALLY BEAUTY   SUPPLY LLC
    

 

6EX-10.05

 Exhibit 10.05 

ACI WORLDWIDE, INC. 

1999 EMPLOYEE STOCK PURCHASE PLAN 

(as amended and restated by the Stockholders on February 20, 2001 and on March 9, 2004, as 

amended by the Compensation Committee on March 8, 2005, as amended and restated by the 

Stockholders on July 24, 2007 and as amended by the Compensation and Leadership 

Development Committee on March 17, 2010 and further revised to reflect the 

3 for 1 stock split effective July 10, 2014) 

 Exhibit 10.05 

ACI WORLDWIDE, INC. 

1999 Employee Stock Purchase Plan 

(as amended and restated by the Stockholders on February 20, 2001 and on March 9, 

2004, as amended by the Compensation Committee on March 8, 2005, as amended and 

restated by the Stockholders on July 24, 2007 and as amended by the Compensation 

and Leadership Development Committee on March 17, 2010, and further revised to 

reflect the 3 for 1 stock split effective July 10, 2014) 

Section 1. Purpose. The purpose of the ACI Worldwide, Inc. Employee Stock Purchase Plan (the “Plan”) is to provide an
opportunity to current employees of ACI Worldwide, Inc. (the “Company”), or any Participating Subsidiary of the Company to purchase its Common Stock. By encouraging such stock ownership, the Company seeks to attract, retain and motivate
such employees to devote their best efforts to the financial success of the Company. It is intended that the Plan qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code of 1986, as amended (the
“Code”). In addition, the Plan authorizes the grant of Options and issuance of Common Stock which do not qualify under Section 423 of the Code pursuant to sub-plans adopted by the Committee designed to achieve desired tax or other
objectives in particular locations outside the United States. 
 Section 2. Definitions. For purposes of the Plan, the following
terms used herein shall have the following meanings, unless a different meaning is clearly required by the context. 
 2.01. “Base
Pay” shall mean the monthly pay rate of a salaried Employee or the hourly pay rate of an hourly Employee. Base Pay shall not include payments for overtime, allowances, bonuses and other special payments, commissions and other marketing
incentive payments. 
 2.02. “Board of Directors” shall mean the Board of Directors of the Company. 

2.03. “Committee” shall mean the committee of the Board of Directors referred to in Section 5 hereof. 

2.04. “Common Stock” shall mean the Common Stock of the Company. 

2.05. “Employee” shall mean any person, including any officer or employee-director of the Company or any Participating
Subsidiary of the Company, who is actively and customarily employed for 20 hours or more per week by the Company or a Participating Subsidiary of the Company. 

2.06. “Fair Market Value” shall mean the closing price (last trade) on the date in question, as such price is reported by the
National Association of Securities Dealers on the NASDAQ National Market or any successor system for a share of Common Stock. 
 2.07.
“Offering” shall have the meaning described in Section 4.01. 
 2.08. “Option” shall mean any option
to purchase Common Stock granted to an Employee pursuant to this Plan. 
 2.09. “Participant” shall mean any Employee that
is eligible to participate in the Plan in accordance with Section 3 and who elects to participate in the Plan. 
 2.10.
“Participating Subsidiary of the Company” means any Subsidiary of the Company that has been designated by the Board of Directors as eligible to participate in the Plan with respect to its Employees. 

2.11. “Participation Period” shall mean the period beginning on May 1, 2008 and ending on April 30, 2018 and each
three-month period thereafter during the term of the Plan. There shall be forty Participation Periods during the term of the Plan. 
 2.12.
“Subsidiary of the Company” means any foreign or U.S. domestic corporation (other than the Company) in an unbroken chain of corporations beginning with the Company if each of the corporations other than the last corporation in the
unbroken chain owns stock possessing 50 percent or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

 Section 3. Eligibility and Participation. The following provisions shall govern the
eligibility of Employees to participate in the Plan. 
 3.01. Eligibility. Any Employee who shall have completed three months of
employment with the Company or any Participating Subsidiary of the Company shall be eligible to participate in the Offering as of the first day of the next Participation Period. The Committee may also determine that a designated group of highly
compensated Employees are ineligible to participate in the Plan so long as the excluded category fits within the definition of “highly compensated employee” in Code Section 414(q). The Committee may impose restrictions on eligibility
and participation of Employees who are officers or directors to facilitate compliance with federal or state securities laws or foreign laws. 

3.02. Restrictions on Participation. Notwithstanding any provisions of the Plan to the contrary, no Employee shall be granted an Option
under the Plan: 
 (a) if, immediately after such grant, such Employee would own stock possessing five percent or more of the total combined
voting power or value of all classes of stock of the Company or any Subsidiary of the Company, such ownership to be determined by applying the rules of Section 424(d) of the Code and treating stock which the Employee may purchase under
outstanding options as stock owned by the Employee; or 
 (b) which would permit his or her rights to purchase stock under the Plan (and
under any other plans of the Company or any Subsidiary of the Company qualifying under Section 423 of the Code) to accrue at a rate which exceeds the lesser of (i) 10% of the Employee’s Base Pay or (ii) $25,000 of fair market
value of the stock (determined on the basis of the fair market value of the stock at the time such Option is granted) for each calendar year in which such Option is outstanding. 

3.03. Commencement of Participation. A Participant may elect to participate by executing the enrollment form prescribed for such purpose
by the Committee which enrollment form may include an application for an account with the Company’s designated broker. The enrollment form shall be filed with the Committee at any time prior to the first day of the next Participation Period.
The Participant shall designate on the enrollment form the percentage of his or her Base Pay which he or she elects to have withheld for the purchase of Common Stock, which may be any whole percentage from 1% to 10%. Once enrolled, a Participant
will continue to participate in the Plan for each succeeding Participation Period until he or she terminates participation or ceases to qualify as an Employee. 

Section 4. Common Stock Subject to the Plan. 

4.01. Number of Shares. The total number of shares of Common Stock for which Options may be granted under this Plan shall not exceed in
the aggregate 4,500,000 (four million five hundred thousand) shares of Common Stock. The Plan, as amended by the stockholders on July 24, 2007, will be implemented by an Offering of shares of Common Stock (the “Offering”). The
Offering under the Plan, as amended, shall begin on May 1, 2008 and shall terminate on April 30, 2018. 
 4.02. Reissuance.
The shares of Common Stock that may be subject to Options granted under this Plan may be either authorized and unissued shares of Common Stock or shares of Common Stock reacquired at any time and now or hereafter held as treasury stock of the
Company as the Committee may determine. In the event that any outstanding Option expires or is terminated for any reason, the shares allocable to the unexercised portion of such Option may again be subject to an Option granted under this Plan. 

Section 5. Administration of the Plan. 

5.01. Committee. The Plan shall be administered by the Compensation Committee of the Board of Directors, or such other committee
established by the Board of Directors (the “Committee”) consisting of no less than two persons. The Committee shall be appointed from time to time by, and shall serve at the pleasure of, the Board of Directors. 

5.02. Interpretation. The Committee shall be authorized (i) to interpret the Plan and decide any matters arising thereunder, and
(ii) to adopt such rules, regulations and procedures, not inconsistent with the provisions of the Plan, as it may deem advisable to carry out the purpose of this Plan. 

  
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 5.03. Finality. The interpretation and construction by the Committee of any provision of
the Plan, any Option granted hereunder or any agreement evidencing any such Option shall be final, conclusive and binding upon all parties. 

5.04. Voting by Committee Members. Only members of the Committee shall vote on any matter affecting the administration of the Plan or
the granting of Options under the Plan. 
 5.05. Expenses. All expenses and liabilities incurred by the Committee in the
administration of the Plan shall be borne by the Company. The Committee may employ attorneys, consultants, accountants or other persons in connection with the administration of the Plan. The Company, and its officers and directors, shall be entitled
to rely upon the advice, opinions or valuations of any such persons. No member of the Board of Directors or the Committee shall be liable for any action, determination or interpretation taken or made in good faith with respect to the Plan or any
Option granted hereunder. 
 5.06. Non-U.S. Participation. The Committee may adopt rules or procedures relating to the operation and
administration of the Plan to accommodate the specific requirements of local laws and procedures. Without limiting the generality of the foregoing, the Committee is specifically authorized to adopt rules and procedures regarding handling of payroll
deductions, payment of interest, conversion of local currency, payroll tax and withholding procedures which vary with local requirements. With respect to any Participating Subsidiary which employs Participants who reside outside of the United
States, and notwithstanding anything herein to the contrary, the Committee may in its sole discretion amend or vary the terms of the Plan in order to conform such terms with the requirements of local law or to meet the objectives and purpose of the
Plan, and the Committee may, where appropriate, establish one or more sub-plans to reflect such amended or varied provisions which sub-plans may be designed to be outside the scope of Code Section 423. The provisions of such sub-plans may take
precedence over other provisions of the Plan, with the exception of Section 4.01, but unless otherwise superseded by the terms of such sub-plan, the provisions of the Plan shall govern the operation of such sub-plan. 

5.07 Changing of Percentage. The percentage (i.e. 85%) provided for within Subsections 7.02(iii) and 7.03 herein may be changed by and
at the sole discretion of the Committee, without further approval of the Company’s Stockholders, to any whole percentage that is not less than 85% and not greater than 100%; provided, however, that the Committee shall provide all Participants
with written notice of any such change in advance of the Participation Period in which such change is to first take effect. 

Section 6. Payroll Deductions. 

6.01. Amount of Deduction. At the time a Participant files his or her enrollment form authorizing payroll deductions pursuant to
Section 3.03, he or she shall elect to have deductions made from his or her Base Pay on each payday during the time he or she is a Participant in the Offering. 

6.02. Participant’s Account; No Interest. All payroll deductions made for a Participant shall be credited to his or her account
under the Plan. A Participant may not make any separate cash payment into such account. No interest shall accrue on amounts credited to a Participant’s account under the Plan, regardless of whether or not the funds in such account are
ultimately used to acquire shares of Common Stock, unless required under local law. 
 6.03. Changes in Payroll Deductions. A
Participant may change the rate of payroll deductions, effective for the next Participation Period, by filing a new enrollment form with the Committee at any time prior to the first day of the Participation Period for which such change is to be
effective. A Participant may also discontinue his or her participation in the Plan by notifying the Committee in accordance with the procedures established by the Committee for such purpose. 

6.04. Use of Funds. All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate
purpose, and the Company shall not be obligated to segregate such payroll deductions unless required under local law. 
 Section 7.
Grant of Option. 
 7.01. Terms and Conditions. A description of the terms and conditions of the Plan shall be made available
to Participants in such form and manner as the Committee shall approve. 

  
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 7.02. Number of Option Shares. On the first business day of each Participation Period
during the term of the Plan, each Participant shall be deemed to have been granted an Option, subject to the limitations of Section 3.02, to purchase a maximum number of shares of Common Stock during the Participation Period equal to the number
obtained by multiplying (i) the percentage of the Employee’s Base Pay for that Participation Period which he or she has elected to have withheld pursuant to Section 6.01 by (ii) the Employee’s Base Pay for that Participation
Period and dividing the resulting product by (iii) 85% of the Fair Market Value of one share of Common Stock of the Company on the last business day of that Participation Period; provided; however, such number shall in no event exceed 3,000
shares of Common Stock for any Participant during any Participation Period, and provided, further, that in no event shall the total number of shares of Common Stock for which Options are granted exceed the number of shares set forth in
Section 4.01. If the total number of shares of Common Stock for which Options would have been granted to Participants pursuant to the preceding sentence would have exceeded the number of shares set forth in Section 4.01 (absent the proviso
in the preceding sentence), the Committee shall make a pro rata allocation of the shares of Common Stock available for grant to Participants’ Options in such manner as it shall determine, in its sole discretion, to be reasonably practicable,
uniform and equitable. 
 7.03. Option Price. The Option price per share of the Common Stock subject to an Option shall be 85% of the
Fair Market Value of one share of Common Stock on the last business day of the applicable Participation Period. 
 7.04. Interest in
Option Stock. A Participant shall have no interest in shares of Common Stock covered by his or her Option until such Option has been exercised. 

7.05. Transferability. Neither payroll deductions credited to a Participant’s account nor Options granted to a Participant shall be
transferable other than by will or the laws of descent and distribution and, during a Participant’s lifetime, an Option shall be exercisable only by the Participant. 

7.06. Tax Withholding. In the event that the Company or any Subsidiary of the Company is required to withhold any Federal, state, local
or foreign taxes in respect of any compensation income realized by the Participant as a result of any “disqualifying disposition” of any shares of Common Stock acquired upon exercise of an Option granted hereunder, the Company or such
Subsidiary of the Company shall deduct from any payments of any kind otherwise due to such Participant the aggregate amount of such Federal, state, local or foreign taxes required to be so withheld or, if such payments are insufficient to satisfy
such Federal, state, local or foreign taxes, such Participant will be required to pay to the Company or such Subsidiary of the Company, or make other arrangements satisfactory to the Company or such Subsidiary of the Company regarding payment to the
Company or such Subsidiary of the Company of, the aggregate amount of any such taxes. All matters with respect to the total amount of taxes to be withheld in respect of any such compensation income shall be determined by the Committee in its sole
discretion. Subject to approval by the Committee, a Participant may elect to have such tax withholding obligation satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares of Common Stock to be acquired upon
exercise of an Option, a number of shares of Common Stock with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due, or (ii) transferring to the Company shares of Common Stock
owned by the Participant with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due. 

Section 8. Exercise of Options. 

8.01. Automatic Exercise. Unless a Participant gives written notice to the Company of withdrawal pursuant to Section 9.01, his or
her Option to acquire Common Stock with payroll deductions credited to his or her account for any Participation Period will be deemed to have been exercised automatically on the last business day of the applicable Participation Period for the
purchase of the number of full shares of Common Stock which the accumulated payroll deductions credited to his or her account at that time will purchase at the applicable Option price (but not in excess of the number of shares of Common Stock for
which Options have been granted to the Employee pursuant to Section 7.02), and any excess credited to his or her account at that time will be carried forward to the next Participation Period. 

8.02. Fractional Shares. Fractional shares will not be issued under the Plan and any accumulated payroll deductions which would have
been used to purchase fractional shares will be carried over to the next following Participation Period. 

  
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 8.03. Delivery of Stock. As soon as reasonably practicable after each Participation
Period, the Company will deliver to the Participant’s account with the Company’s designated broker, in such Participant’s name, the shares of Common Stock purchased upon exercise of such Participant’s Option. It is a condition of
participation in the Plan that each Participant maintain an account with the broker designated by the Company. The Company reserves the right to change its designated broker from time to time in its sole discretion. 

Section 9. Withdrawal. 

9.01. In General. A Participant may withdraw payroll deductions credited to his or her account for a Participation Period under the Plan
at any time prior to the last business day of such Participation Period by giving written notice to the Committee. As soon as reasonably practicable after receipt by the Committee of his or her notice of withdrawal, the payroll deductions credited
to the Participant’s account for such Participation Period will be paid to him or her without interest (except to the extent required by local law), and no further payroll deductions will be made from his or her Base Pay for such Participation
Period. 
 9.02. Cessation of Employee Status. In the event a Participant shall cease to be an Employee during a Participation Period
for any reason, other than as a result of his or her death, the payroll deductions credited to his or her account for such Participation Period will be returned to him or her without interest (except to the extent required by local law) as soon as
reasonably practicable thereafter. 
 9.03. Termination Due to Death. In the event a Participant shall cease to be an Employee during
a Participation Period by reason of his or her death, his or her legal representative shall have the right to elect, by written notice to the Committee prior to the last business day of the Participation Period: 

(a) to withdraw all of the payroll deductions credited to the Participant’s account under the Plan for such Participation Period without
interest (except to the extent required by local law), or 
 (b) to exercise the Participant’s Option for such Participation Period with
any excess in the Participant’s account after exercise of the Option to be returned to the Participant’s legal representative. 

In the event that no such written notice of election is duly and timely received by the Committee, the Participant’s legal representative
shall automatically be deemed to have elected, pursuant to clause (b) above, to exercise the Participant’s Option. 

Section 10. Adjustments. 

10.01. Changes In Capitalization. In the event that the outstanding shares of the Company’s Common Stock shall be increased or
decreased or changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another corporation, effected without the receipt of consideration by the Company, through reorganization, merger or
consolidation, recapitalization, reclassification, stock split, reverse stock split, split-up, combination or exchange of shares or declaration of any dividends payable in Common Stock, the Board of Directors shall appropriately adjust, subject to
any required action by the stockholders of the Company, (i) the number of shares of Common Stock (and the Option price per share) subject to the unexercised portion of any outstanding Option (to the nearest possible full share), provided,
however, that the limitations of Section 424 of the Code shall apply with respect to such adjustments and (ii) the number of shares of Common Stock for which Options may be granted under the Plan, as set forth in Section 4.01 hereof,
and such adjustments shall be final, conclusive and binding for all purposes of the Plan. Except as expressly provided herein, no issuance by the Company of shares of stock of any class shall affect, and no adjustment by reason thereof shall be made
with respect to, the number or price of shares of Common Stock subject to an Option. 
 10.02. Acquisition, Merger, Sale of Assets,
Dissolution or Liquidation. Notwithstanding the foregoing, in the event of (i) any offer or proposal to holders of the Company’s Common Stock relating to the acquisition of their shares, including, without limitation, through purchase,
merger or otherwise, or (ii) any transaction generally relating to the acquisition of substantially all of the assets or business of the Company, or (iii) the dissolution or liquidation of the Company, the Board of Directors may make such
adjustment as it deems equitable in respect of outstanding Options (and in respect of the shares of Common Stock for which Options may be granted under the Plan), including, without limitation, the revision, cancellation, or termination of any
outstanding Options, or the change, conversion or exchange of the shares of the Company’s Common Stock under outstanding Options (and of the shares of the Company’s Common Stock for which Options may be granted under the Plan) into or for
securities or other property of another corporation. Any such adjustments by the Board of Directors shall be final, conclusive and binding for all purposes of the Plan. 

  
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 Section 11. Effect of the Plan on Employment Relationship. Neither this Plan nor any
Option granted hereunder to a Participant shall be construed as conferring upon such Participant any right to continue in the employ of the Company or any Subsidiary of the Company as the case may be, or limit in any respect the right of the Company
or any Subsidiary of the Company to terminate such Participant’s employment with the Company or any Subsidiary of the Company, as the case may be, at any time. 

Section 12. Amendment of the Plan. The Board of Directors may amend the Plan from time to time as it deems desirable in its sole
discretion without approval of the stockholders of the Company, except to the extent stockholder approval is required by Rule 16b-3 of the Securities Exchange Act of 1934, as amended, applicable NASDAQ National Market or stock exchange rules,
applicable provisions of the Code, or other applicable laws or regulations. 
 Section 13. Termination of the Plan. The Board of
Directors may terminate the Plan at any time in its sole discretion. No Option may be granted hereunder after termination of the Plan. The termination or amendment of the Plan shall not alter or impair any rights or obligations under any Option
theretofore granted under the Plan in any material adverse way without the consent of the affected Participant. 
 Section 14.
Governing Law. The Plan and any and all Option agreements executed in connection with the Plan shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to conflict of laws principles. 

Section 15. No Strict Construction. No rule of strict construction shall be applied against the Company, the Committee, or any
other person in the interpretation of any of the terms of the Plan, any Option agreement, any Option granted under the Plan, or any rule, regulation or procedure established by the Committee. 

Section 16. Successors. This Plan is binding on and will inure to the benefit of any successor to the Company, whether by way of
merger, consolidation, purchase, or otherwise. 
 Section 17. Severability. If any provision of the Plan or an Option agreement
shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of the Plan or such agreement, and the Plan and such agreement shall each be construed and enforced as if the invalid provisions
had never been set forth therein. 
 Section 18. Plan Provisions Control. Except as otherwise provided in Section 5.06, the
terms of the Plan govern all Options granted under the Plan, and in no event will any Option be granted under the Plan which is contrary to any of the provisions of the Plan. In the event any provision of any Option granted under the Plan shall
conflict with any term in the Plan as constituted on the grant date of such Option, the term in the Plan as constituted on the grant date of such Option shall control except as otherwise provided in Section 5.06. 

Section 19. Headings. The headings used in the Plan are for convenience only, do not constitute a part of the Plan, and shall not
be deemed to limit, characterize, or affect in any way any provisions of the Plan, and all provisions of the Plan shall be construed as if no captions had been used in the Plan. 

Section 20. Effective Date of the Plan. The Plan shall be submitted to the stockholders of the Company for approval and
ratification at the next regular or special meeting thereof to be held after January 1, 1999. Unless at such meeting the Plan is approved and ratified by the stockholders of the Company, in the manner provided by the Company’s By-Laws,
then and in such event, the Plan shall become null and void and of no further force and effect. The Plan, as amended by the stockholders on July 24, 2007, shall be effective as of May 1, 2008 and shall continue in effect until
April 30, 2018 unless sooner terminated under Section 13. 

  
 6

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