Document:

Exhibit 10.2

Exhibit 10.2

GLOBAL CASH ACCESS HOLDINGS, INC. 2005 STOCK INCENTIVE PLAN

NOTICE OF STOCK OPTION AWARD

You (the “Grantee”) have been granted an option to purchase shares of Common Stock, subject to
the terms and conditions of this Notice of Stock Option Award (the “Notice”), the Global Cash
Access Holdings, Inc. 2005 Stock Incentive Plan, as amended from time to time (the “Plan”) and the
Stock Option Award Agreement (the “Option Agreement”) attached hereto, as follows. Unless
otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in
this Notice.

Post-Termination Exercise Period:            Three (3) Months

Vesting Schedule:

Subject to the Grantee’s Continuous Service and other limitations set forth in this Notice,
the Plan and the Option Agreement, the Option may be exercised, in whole or in part, in accordance
with the following schedule:

25% of the Shares subject to the Option shall vest twelve months after the Vesting
Commencement Date, and 1/36th of the remaining number of Shares subject to the Option shall vest on
each monthly anniversary of the Vesting Commencement Date thereafter.

During any authorized leave of absence, the vesting of the Option as provided in this schedule
shall be suspended after the leave of absence exceeds a period of ninety (90) days. Vesting of the
Option shall resume upon the Grantee’s termination of the leave of absence and return to service to
the Company or a Related Entity. The Vesting Schedule of the Option shall be extended by the
length of the suspension.

In the event of termination of the Grantee’s Continuous Service for Cause, the Grantee’s right
to exercise the Option shall terminate concurrently with the termination of the Grantee’s
Continuous Service, except as otherwise determined by the Administrator.

In the event that the Grantee’s Continuous Service is terminated by the Company without Cause
(as defined in the recipient’s employment agreement, if any, or otherwise as defined in the Plan),
or by the Grantee for Good Reason (as defined in the recipient’s employment agreement, if any, or
otherwise as defined in the Plan), All Shares subject to the Option award that have not previously
vested shall become vested and exercisable upon such termination.

In the event of a Corporate Transaction or a Change in Control (as defined in the Plan), all
of the Shares subject to the Option shall become vested and exercisable immediately prior to the
consummation of such Corporate Transaction or Change in Control, provided that the Grantee’s
Continuous Service has not terminated prior to the consummation of such Corporate Transaction or
Change in Control.

Effect of Acceleration on Incentive Stock Option. To the extent that the Option is an
Incentive Stock Option and is accelerated in connection with a Corporate Transaction or Change in
Control, the Option shall remain exercisable as an Incentive Stock Option under the Code only to
the extent the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded.

IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the
Option is to be governed by the terms and conditions of this Notice, the Plan, and the Option
Agreement.

 

 

 

THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO THE OPTION SHALL VEST, IF AT ALL,
ONLY DURING THE PERIOD OF THE GRANTEE’S CONTINUOUS SERVICE
(NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER). THE
GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE OPTION AGREEMENT, OR THE
PLAN SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR CONTINUATION OF THE
GRANTEE’S CONTINUOUS SERVICE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE GRANTEE’S RIGHT OR THE
RIGHT OF THE COMPANY OR RELATED ENTITY TO WHICH THE GRANTEE PROVIDES SERVICES TO TERMINATE THE
GRANTEE’S CONTINUOUS SERVICE, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE. THE GRANTEE
ACKNOWLEDGES THAT UNLESS THE GRANTEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO THE
CONTRARY, THE GRANTEE’S STATUS IS AT WILL.

The Grantee acknowledges receipt of a copy of the Plan and the Option Agreement, and
represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the
Option subject to all of the terms and provisions hereof and thereof. The Grantee has reviewed
this Notice, the Plan, and the Option Agreement in their entirety, has had an opportunity to obtain
the advice of counsel prior to executing this Notice, and fully understands all provisions of this
Notice, the Plan and the Option Agreement. The Grantee hereby agrees that all questions of
interpretation and administration relating to this Notice, the Plan and the Option Agreement shall
be resolved by the Administrator in accordance with Section 18 of the Option Agreement. The
Grantee further agrees to the venue selection and waiver of a jury trial in accordance with Section
19 of the Option Agreement. The Grantee further agrees to notify the Company upon any change in
the residence address indicated in this Notice.

 

 

 

GLOBAL CASH ACCESS HOLDINGS, INC. 2005 STOCK INCENTIVE PLAN

STOCK OPTION AWARD AGREEMENT

1. Grant of Option. Global Cash Access Holdings, Inc., a Delaware corporation (the
“Company”), hereby grants to the Grantee (the “Grantee”) named in the Notice of Stock Option Award
(the “Notice”), an option (the “Option”) to purchase the Total Number of Shares of Common Stock
subject to the Option (the “Shares”) set forth in the Notice, at the Exercise Price per Share set
forth in the Notice (the “Exercise Price”) subject to the terms and provisions of the Notice, this
Stock Option Award Agreement (the “Option Agreement”) and the Company’s 2005 Stock Incentive Plan,
as amended from time to time (the “Plan”), which are incorporated herein by reference. Unless
otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in
this Option Agreement.

If designated in the Notice as an Incentive Stock Option, the Option is intended to qualify as
an Incentive Stock Option as defined in Section 422 of the Code. However, notwithstanding such
designation, the Option will qualify as an Incentive Stock Option under the Code only to the extent
the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded. The $100,000
limitation of Section 422(d) of the Code is calculated based on the aggregate Fair Market Value of
the Shares subject to options designated as Incentive Stock Options which become exercisable for
the first time by the Grantee during any calendar year (under all plans of the Company or any
Parent or Subsidiary of the Company). For purposes of this calculation, Incentive Stock Options
shall be taken into account in the order in which they were granted, and the Fair Market Value of
the shares subject to such options shall be determined as of the grant date of the relevant option.

2. Exercise of Option.

(a) Right to Exercise. The Option shall be exercisable during its term in accordance
with the Vesting Schedule set out in the Notice and with the applicable provisions of the Plan and
this Option Agreement. The Option shall be subject to the provisions of Section 11 of the Plan
relating to the exercisability or termination of the Option in the event of a Corporate Transaction
or Change in Control. The Grantee shall be subject to reasonable limitations on the number of
requested exercises during any monthly or weekly period as determined by the Administrator. In no
event shall the Company issue fractional Shares.

(b) Method of Exercise. The Option shall be exercisable by delivery of an exercise
notice (a form of which is attached as Exhibit A) or by such other procedure as specified from time
to time by the Administrator which shall state the election to exercise the Option, the whole
number of Shares in respect of which the Option is being exercised, and such other provisions as
may be required by the Administrator. The exercise notice shall be delivered in person, by
certified mail, or by such other method (including electronic transmission) as determined from time
to time by the Administrator to the Company accompanied by payment of the Exercise Price. The
Option shall be deemed to be exercised upon receipt by the Company of such notice accompanied by
the Exercise Price, which, to the extent selected, shall be deemed to be satisfied by use of the
broker-dealer sale and remittance procedure to pay the Exercise Price provided in Section 4(d),
below.

(c) Taxes. No Shares will be delivered to the Grantee or other person pursuant to the
exercise of the Option until the Grantee or other person has made arrangements acceptable to the
Administrator for the satisfaction of applicable income tax and employment tax withholding
obligations, including, without limitation, such other tax obligations of the Grantee incident to
the receipt of Shares. Upon exercise of the Option, the Company or the Grantee’s employer may
offset or withhold (from any amount owed by the Company or the Grantee’s employer to the Grantee)
or collect from the Grantee or other person an amount sufficient to satisfy such tax withholding
obligations.

 

 

 

3. Grantee’s Representations. In the event the Shares purchasable pursuant to the
exercise of the Option have not been registered under the Securities Act of 1933, as amended, at
the time the Option is exercised, the
Grantee shall, if requested by the Company, concurrently with the exercise of all or any
portion of the Option, deliver to the Company his or her investor representation statement in a
form determined by the Company.

4. Method of Payment. Payment of the Exercise Price shall be made by any of the
following, or a combination thereof, at the election of the Grantee; provided, however, that such
exercise method does not then violate any Applicable Law, provided further, that the portion of the
Exercise Price equal to the par value of the Shares must be paid in cash or other legal
consideration permitted by the Delaware General Corporation Law:

(a) cash;

(b) check;

(c) if the exercise occurs on or after the Registration Date, surrender of Shares or delivery
of a properly executed form of attestation of ownership of Shares as the Administrator may require
which have a Fair Market Value on the date of surrender or attestation equal to the aggregate
Exercise Price of the Shares as to which the Option is being exercised, provided, however, that
Shares acquired under the Plan or any other equity compensation plan or agreement of the Company
must have been held by the Grantee for a period of more than six (6) months (and not used for
another Award exercise by attestation during such period); or

(d) if the exercise occurs on or after the Registration Date, payment through a broker-dealer
sale and remittance procedure pursuant to which the Grantee (i) shall provide written instructions
to a Company-designated brokerage firm to effect the immediate sale of some or all of the purchased
Shares and remit to the Company sufficient funds to cover the aggregate exercise price payable for
the purchased Shares and (ii) shall provide written directives to the Company to deliver the
certificates for the purchased Shares directly to such brokerage firm in order to complete the sale
transaction.

5. Termination or Change of Continuous Service. In the event the Grantee’s Continuous
Service terminates, other than for Cause, the Grantee may, but only during the Post-Termination
Exercise Period, exercise the portion of the Option that was vested at the date of such termination
(the “Termination Date”); provided, however, that in the event such termination of Continuous
Service, other than for Cause, occurs after the Grantee has both (a) attained age fifty (50), and
(b) completed ten (10) years of Continuous Service (such combination of age and Continuous Service,
“Retirement Eligibility”), the portion of the Option that was vested on the Termination Date shall
remain exercisable until the Expiration Date. The Post-Termination Exercise Period shall commence
on the Termination Date. In the event of termination of the Grantee’s Continuous Service for
Cause, the Grantee’s right to exercise the Option shall, except as otherwise determined by the
Administrator, terminate concurrently with the termination of the Grantee’s Continuous Service
(also the “Termination Date”). In no event, however, shall the Option be exercised later than the
Expiration Date set forth in the Notice. In the event of the Grantee’s change in status from
Employee, Director or Consultant to any other status of Employee, Director or Consultant, the
Option shall remain in effect and the Option shall continue to vest in accordance with the Vesting
Schedule set forth in the Notice; provided, however, with respect to any Incentive Stock Option
that shall remain in effect after a change in status from Employee to Director or Consultant, such
Incentive Stock Option shall cease to be treated as an Incentive Stock Option and shall be treated
as a Non-Qualified Stock Option on the day three (3) months and one (1) day following such change
in status. Except as otherwise provided in this Section 5 or in Section 6 or 7 below, to the
extent that the Option was unvested on the Termination Date, or if the Grantee does not exercise
the vested portion of the Option within the time specified herein, the Option shall terminate.

6. Disability of Grantee. In the event the Grantee’s Continuous Service terminates as a
result of his or her Disability, the Grantee may, but only within twelve (12) months commencing
on the Termination Date (but in no event later than the Expiration Date), exercise the portion of
the Option that was vested on the Termination Date; provided, however, that if such Disability is
not a “disability” as such term is defined in Section 22(e)(3) of the Code and the Option is an
Incentive Stock Option, such Incentive Stock Option shall cease to be treated as an Incentive
Stock Option and shall be treated as a Non-Qualified Stock Option on the day three (3) months and
one (1) day following the Termination Date; and provided further, that in the event that the
Grantee’s Continuous
Service terminates as a result of his or her Disability after the Grantee achieves Retirement
Eligibility, the portion of the Option that was vested on the Termination Date shall remain
exercisable until the Expiration Date. To the extent that the Option was unvested on the
Termination Date, or if the Grantee does not exercise the vested portion of the Option within the
time specified herein, the Option shall terminate. Section 22(e)(3) of the Code provides that an
individual is permanently and totally disabled if he or she is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or which has lasted or can be expected to
last for a continuous period of not less than twelve (12) months.

 

 

 

7. Death of Grantee. In the event of the termination of the Grantee’s Continuous
Service as a result of his or her death, or in the event of the Grantee’s death during the
Post-Termination Exercise Period or during the twelve (12) month period following the Grantee’s
termination of Continuous Service as a result of his or her Disability, the person who acquired the
right to exercise the Option pursuant to Section 8 may exercise the portion of the Option that was
vested on the Termination Date within twelve (12) months commencing on the date of death (but in no
event later than the Expiration Date); provided, however, that in the event that the Grantee’s
Continuous Service terminates as a result of his or her death after the Grantee achieves Retirement
Eligibility, the portion of the Option that was vested on the Termination Date shall remain
exercisable until the Expiration Date. To the extent that the Option was unvested on the date of
death, or if the vested portion of the Option is not exercised within the time specified herein,
the Option shall terminate.

8. Transferability of Option. The Option, if an Incentive Stock Option, may not be
transferred in any manner other than by will or by the laws of descent and distribution and may be
exercised during the lifetime of the Grantee only by the Grantee. The Option, if a Non-Qualified
Stock Option, may not be transferred in any manner other than by will or by the laws of descent and
distribution, provided, however, that a Non-Qualified Stock Option may be transferred during the
lifetime of the Grantee to the extent and in the manner authorized by the Administrator.
Notwithstanding the foregoing, the Grantee may designate one or more beneficiaries of the Grantee’s
Incentive Stock Option or Non-Qualified Stock Option in the event of the Grantee’s death on a
beneficiary designation form provided by the Administrator. Following the death of the Grantee,
the Option, to the extent provided in Section 7, may be exercised (a) by the person or persons
designated under the deceased Grantee’s beneficiary designation or (b) in the absence of an
effectively designated beneficiary, by the Grantee’s legal representative or by any person
empowered to do so under the deceased Grantee’s will or under the then applicable laws of descent
and distribution. The terms of the Option shall be binding upon the executors, administrators,
heirs, successors and transferees of the Grantee.

9. Term of Option. The Option must be exercised no later than the Expiration Date set
forth in the Notice or such earlier date as otherwise provided herein. After the Expiration Date
or such earlier date, the Option shall be of no further force or effect and may not be exercised.

10. [Intentionally Omitted].

11. [Intentionally Omitted].

12. Stop-Transfer Notices. In order to ensure compliance with the restrictions on
transfer set forth in this Option Agreement, the Notice or the Plan, the Company may issue
appropriate “stop transfer” instructions to its transfer agent, if any, and, if the Company
transfers its own securities, it may make appropriate notations to the same effect in its own
records.

13. Refusal to Transfer. The Company shall not be required (i) to transfer on its
books any Shares that have been sold or otherwise transferred in violation of any of the provisions
of this Option Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or
pay dividends to any purchaser or other transferee to whom such Shares shall have been so
transferred.

14. Tax Consequences. Set forth below is a brief summary as of the date of this
Option Agreement of some of the federal tax consequences of exercise of the Option and disposition
of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE
SUBJECT TO CHANGE. THE GRANTEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE
SHARES.

 

 

 

(a) Exercise of Incentive Stock Option. If the Option qualifies as an Incentive Stock
Option, there will be no regular federal income tax liability upon the exercise of the Option,
although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over
the Exercise Price will be treated as income for purposes of the alternative minimum tax for
federal tax purposes and may subject the Grantee to the alternative minimum tax in the year of
exercise.

(b) Exercise of Incentive Stock Option Following Disability. If the Grantee’s
Continuous Service terminates as a result of Disability that is not permanent and total disability
as such term is defined in Section 22(e)(3) of the Code, to the extent permitted on the date of
termination, the Grantee must exercise an Incentive Stock Option within three (3) months of such
termination for the Incentive Stock Option to be qualified as an Incentive Stock Option. Section
22(e)(3) of the Code provides that an individual is permanently and totally disabled if he or she
is unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than twelve (12) months.

(c) Exercise of Non-Qualified Stock Option. On exercise of a Non-Qualified Stock
Option, the Grantee will be treated as having received compensation income (taxable at ordinary
income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date
of exercise over the Exercise Price. If the Grantee is an Employee or a former Employee, the
Company will be required to withhold from the Grantee’s compensation or collect from the Grantee
and pay to the applicable taxing authorities an amount in cash equal to a percentage of this
compensation income at the time of exercise, and may refuse to honor the exercise and refuse to
deliver Shares if such withholding amounts are not delivered at the time of exercise.

(d) Disposition of Shares. In the case of a Non-Qualified Stock Option, if Shares are
held for more than one year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes. In the case of an Incentive Stock Option,
if Shares transferred pursuant to the Option are held for more than one year after receipt of the
Shares and are disposed more than two years after the Date of Award, any gain realized on
disposition of the Shares also will be treated as capital gain for federal income tax purposes and
subject to the same tax rates and holding periods that apply to Shares acquired upon exercise of a
Non-Qualified Stock Option. If Shares purchased under an Incentive Stock Option are disposed of
prior to the expiration of such one-year or two-year periods, any gain realized on such disposition
will be treated as compensation income (taxable at ordinary income rates) to the extent of the
difference between the Exercise Price and the lesser of (i) the Fair Market Value of the Shares on
the date of exercise, or (ii) the sale price of the Shares.

15. Lock-Up Agreement.

(a) Agreement. The Grantee, if requested by the Company and the lead underwriter of
any public offering of the Common Stock (the “Lead Underwriter”), hereby irrevocably agrees not to
sell, contract to sell, grant any option to purchase, transfer the economic risk of ownership in,
make any short sale of, pledge or otherwise transfer or dispose of any interest in any Common Stock
or any securities convertible into or exchangeable or exercisable for or any other rights to
purchase or acquire Common Stock (except Common Stock included in such public offering or acquired
on the public market after such offering) during the 200-day period following the effective date of
a registration statement of the
Company filed under the Securities Act of 1933, as amended, or such shorter or longer period
of time as the Lead Underwriter shall specify. The Grantee further agrees to sign such documents
as may be requested by the Lead Underwriter to effect the foregoing and agrees that the Company may
impose stop-transfer instructions with respect to such Common Stock subject to the lock-up period
until the end of such period. The Company and the Grantee acknowledge that each Lead Underwriter
of a public offering of the Company’s stock, during the period of such offering and for the lock-up
period thereafter, is an intended beneficiary of this Section 15.

 

 

 

(b) No Amendment Without Consent of Underwriter. During the period from
identification of a Lead Underwriter in connection with any public offering of the Company’s Common
Stock until the earlier of (i) the expiration of the lock-up period specified in Section 15(a) in
connection with such offering or (ii) the abandonment of such offering by the Company and the Lead
Underwriter, the provisions of this Section 15 may not be amended or waived except with the consent
of the Lead Underwriter.

16. Entire Agreement: Governing Law. The Notice, the Plan and this Option Agreement
constitute the entire agreement of the parties with respect to the subject matter hereof and
supersede in their entirety all prior undertakings and agreements of the Company and the Grantee
with respect to the subject matter hereof, and may not be modified adversely to the Grantee’s
interest except by means of a writing signed by the Company and the Grantee. Nothing in the
Notice, the Plan and this Option Agreement (except as expressly provided therein) is intended to
confer any rights or remedies on any persons other than the parties. The Notice, the Plan and this
Option Agreement are to be construed in accordance with and governed by the internal laws of the
State of Nevada without giving effect to any choice of law rule that would cause the application of
the laws of any jurisdiction other than the internal laws of the State of Nevada to the rights and
duties of the parties. Should any provision of the Notice, the Plan or this Option Agreement be
determined to be illegal or unenforceable, such provision shall be enforced to the fullest extent
allowed by law and the other provisions shall nevertheless remain effective and shall remain
enforceable.

17. Construction. The captions used in the Notice and this Option Agreement are
inserted for convenience and shall not be deemed a part of the Option for construction or
interpretation. Except when otherwise indicated by the context, the singular shall include the
plural and the plural shall include the singular. Use of the term “or” is not intended to be
exclusive, unless the context clearly requires otherwise.

18. Administration and Interpretation. Any question or dispute regarding the
administration or interpretation of the Notice, the Plan or this Option Agreement shall be
submitted by the Grantee or by the Company to the Administrator. The resolution of such question
or dispute by the Administrator shall be final and binding on all persons.

19. Venue and Waiver of Jury Trial. The Company, the Grantee, and the Grantee’s
assignees pursuant to Section 8 (the “parties”) agree that any suit, action, or proceeding arising
out of or relating to the Notice, the Plan or this Option Agreement shall be brought in the United
States District Court for the District of Nevada (or should such court lack jurisdiction to hear
such action, suit or proceeding, in a Nevada state court in the County of Clark) and that the
parties shall submit to the jurisdiction of such court. The parties irrevocably waive, to the
fullest extent permitted by law, any objection the party may have to the laying of venue for any
such suit, action or proceeding brought in such court. THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT
THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more
provisions of this Section 19 shall for any reason be held invalid or unenforceable, it is the
specific intent of the parties that such provisions shall be modified to the minimum extent
necessary to make it or its application valid and enforceable.

20. Notices. Any notice required or permitted hereunder shall be given in writing and
shall be deemed effectively given upon personal delivery, upon deposit for delivery by an
internationally recognized express mail courier service or upon deposit in the United States mail
by certified mail (if the parties are within the United States), with postage and fees prepaid,
addressed to the other party at its address as shown in these instruments, or to such other address
as such party may designate in writing from time to time to the other party.

END OF AGREEMENT

 

 

 

EXHIBIT A

GLOBAL CASH ACCESS HOLDINGS, INC. 2005 STOCK INCENTIVE PLAN

EXERCISE NOTICE

                    

Attention: Secretary

1. Effective as of today,                     , the undersigned (the “Grantee”) hereby elects to
exercise the Grantee’s option to purchase                      shares of the Common Stock (the “Shares”) of
Global Cash Access Holdings, Inc. (the “Company”) under and pursuant to the Company’s 2005 Stock
Incentive Plan, as amended from time to time (the “Plan”) and the Incentive Stock Option Award
Agreement (the “Option Agreement”) and Notice of Stock Option Award (the “Notice”) dated                    .
Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings
in this Exercise Notice.

2. Representations of the Grantee. The Grantee acknowledges that the Grantee has
received, read and understood the Notice, the Plan and the Option Agreement and agrees to abide by
and be bound by their terms and conditions.

3. Rights as Stockholder. Until the stock certificate evidencing such Shares is
issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is
exercised. No adjustment will be made for a dividend or other right for which the record date is
prior to the date the stock certificate is issued, except as provided in Section 10 of the Plan.

The Grantee shall enjoy rights as a stockholder until such time as the Grantee disposes of the
Shares or the Company and/or its assignee(s) exercises the Right of First Refusal or the Repurchase
Right. Upon such exercise, the Grantee shall have no further rights as a holder of the Shares so
purchased except the right to receive payment for the Shares so purchased in accordance with the
provisions of the Option Agreement, and the Grantee shall forthwith cause the certificate(s)
evidencing the Shares so purchased to be surrendered to the Company for transfer or cancellation.

4. Delivery of Payment. The Grantee herewith delivers to the Company the full
Exercise Price for the Shares, which, to the extent selected, shall be deemed to be satisfied by
use of the broker-dealer sale and remittance procedure to pay the Exercise Price provided in
Section 4(d) of the Option Agreement.

5. Tax Consultation. The Grantee understands that the Grantee may suffer adverse tax
consequences as a result of the Grantee’s purchase or disposition of the Shares. The Grantee
represents that the Grantee has consulted with any tax consultants the Grantee deems advisable in
connection with the purchase or disposition of the Shares and that the Grantee is not relying on
the Company for any tax advice.

6. Taxes. The Grantee agrees to satisfy all applicable federal, state and local
income and employment tax withholding obligations and herewith delivers to the Company the full
amount of such obligations or has made arrangements acceptable to the Company to satisfy such
obligations. In the case of an Incentive Stock Option, the Grantee also agrees, as partial
consideration for the designation of the Option as an Incentive Stock Option, to notify the Company
in writing within thirty (30) days of any disposition of any shares acquired by exercise of the
Option if such disposition occurs within two (2) years from the Date of Award or within one (1)
year from the date the Shares were transferred to the Grantee.

7. Restrictive Legends. To the extent the Option or any of the Shares have not been
registered under the Securities Act of 1933, as amended, the Grantee understands and agrees that
the Company shall cause the legends set forth below or legends substantially equivalent thereto, to
be placed upon any certificate(s) evidencing ownership of the Shares together with any other
legends that may be required by the Company or by state or federal securities laws:

 

 

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”) OR ANY STATE SECURITIES LAWS AND
MAY NOT BE OFFERED, SOLD
OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY
TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER,
PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

8. Successors and Assigns. The Company may assign any of its rights under this
Exercise Notice to single or multiple assignees, and this agreement shall inure to the benefit of
the successors and assigns of the Company. Subject to the restrictions on transfer herein set
forth, this Exercise Notice shall be binding upon the Grantee and his or her heirs, executors,
administrators, successors and assigns.

9. Construction. The captions used in this Exercise Notice are inserted for
convenience and shall not be deemed a part of this agreement for construction or interpretation.
Except when otherwise indicated by the context, the singular shall include the plural and the
plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless
the context clearly requires otherwise.

10. Administration and Interpretation. The Grantee hereby agrees that any question or
dispute regarding the administration or interpretation of this Exercise Notice shall be submitted
by the Grantee or by the Company to the Administrator. The resolution of such question or dispute
by the Administrator shall be final and binding on all persons.

11. Governing Law; Severability. This Exercise Notice is to be construed in
accordance with and governed by the internal laws of the State of Nevada without giving effect to
any choice of law rule that would cause the application of the laws of any jurisdiction other than
the internal laws of the State of Nevada to the rights and duties of the parties. Should any
provision of this Exercise Notice be determined by a court of law to be illegal or unenforceable,
such provision shall be enforced to the fullest extent allowed by law and the other provisions
shall nevertheless remain effective and shall remain enforceable.

12. Notices. Any notice required or permitted hereunder shall be given in writing and
shall be deemed effectively given upon personal delivery, upon deposit for delivery by an
internationally recognized express mail courier service or upon deposit in the United States mail
by certified mail (if the parties are within the United States), with postage and fees prepaid,
addressed to the other party at its address as shown below beneath its signature, or to such other
address as such party may designate in writing from time to time to the other party.

13. Further Instruments. The parties agree to execute such further instruments and to
take such further action as may be reasonably necessary to carry out the purposes and intent of
this agreement.

14. Entire Agreement. The Notice, the Plan and the Option Agreement are incorporated
herein by reference and together with this Exercise Notice constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and the Grantee with respect to the subject matter
hereof, and may not be modified adversely to the Grantee’s interest except by means of a writing
signed by the Company and the Grantee. Nothing in the Notice, the Plan, the Option Agreement and
this Exercise Notice (except as expressly provided therein) is intended to confer any rights or
remedies on any persons other than the parties.

	 	 	 	 	 
	 	GLOBAL CASH ACCESS HOLDINGS, INC.

 	 
	 	By:  	/s/ Scott H. Betts
 	 
	 	 	Scott H. Betts, Chief Executive Officer 	 
	 	 	 	 

 

 

 

	 	 	 	 	 

Submitted by:

GRANTEE:

                                                                       
         

Address:exv10w1

Exhibit 10.1

NVR, INC.

2010 EQUITY INCENTIVE PLAN

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	1.    PURPOSE	 	 	1	 
	2.    DEFINITIONS	 	 	1	 
	3.    ADMINISTRATION OF THE PLAN	 	 	4	 
	3.1.
	 	Board	 	 	4	 
	3.2.
	 	Committee	 	 	4	 
	3.3.
	 	Terms of Awards	 	 	5	 
	3.4.
	 	No Repricing	 	 	6	 
	3.5.
	 	No Liability	 	 	6	 
	3.6.
	 	Share Issuance/Book-Entry	 	 	6	 
	4.    STOCK SUBJECT TO THE PLAN	 	 	6	 
	4.1.
	 	Number of Shares Available for Awards	 	 	6	 
	4.2.
	 	Share Usage	 	 	6	 
	5.    EFFECTIVE DATE, DURATION AND AMENDMENTS	 	 	7	 
	5.1.
	 	Effective Date	 	 	7	 
	5.2.
	 	Term	 	 	7	 
	5.3.
	 	Amendment and Termination of the Plan	 	 	7	 
	6.    AWARD ELIGIBILITY AND LIMITATIONS	 	 	7	 
	6.1.
	 	Service Providers and Other Persons	 	 	7	 
	6.2.
	 	Limitation on Shares Subject to Stock Option Awards	 	 	7	 
	6.3.
	 	Successive Awards	 	 	7	 
	7.    AWARD AGREEMENT	 	 	8	 
	8.    TERMS AND CONDITIONS OF OPTIONS	 	 	8	 
	8.1.
	 	Option Price	 	 	8	 
	8.2.
	 	Vesting	 	 	8	 
	8.3.
	 	Term	 	 	8	 
	8.4.
	 	Termination of Service	 	 	8	 
	8.5.
	 	Limitations on Exercise of Option	 	 	8	 
	8.6.
	 	Method of Exercise	 	 	9	 
	8.7.
	 	Rights of Holders of Options	 	 	9	 
	8.8.
	 	Delivery of Stock Certificates	 	 	9	 
	8.9.
	 	Transferability of Options	 	 	9	 
	9.    TERMS AND CONDITIONS OF RESTRICTED SHARE UNITS	 	 	9	 
	9.1.
	 	Grant of Restricted Share Units 	 	 	9	 
	9.2.
	 	Restrictions 	 	 	9	 
	9.3.
	 	Rights of Holders of Restricted Share Units 	 	 	10	 
	 
	 	9.3.1.   No Stockholder Rights 	 	 	10	 
	 
	 	9.3.2.   Creditor’s Rights 	 	 	10	 
	9.4.
	 	Termination of Service 	 	 	10	 
	9.5.
	 	Delivery of Stock 	 	 	10	 
	10.    FORM OF PAYMENT FOR OPTIONS	 	 	10	 
	10.1.
	 	General Rule	 	 	10	 
	10.2.
	 	Surrender of Stock	 	 	11	 

-i-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	10.3.
	 	Cashless Exercise	 	 	11	 
	10.4.
	 	Other Forms of Payment	 	 	11	 
	11.    PARACHUTE LIMITATIONS	 	 	11	 
	12.    REQUIREMENTS OF LAW	 	 	12	 
	12.1.
	 	General	 	 	12	 
	12.2.
	 	Rule 16b-3	 	 	12	 
	13.    EFFECT OF CHANGES IN CAPITALIZATION	 	 	13	 
	13.1.
	 	Changes in Stock	 	 	13	 
	13.2.
	 	Reorganization in Which the Company Is the Surviving Entity Which does not Constitute a Corporate Transaction	 	 	13	 
	13.3.
	 	Corporate Transaction in which Awards are not Assumed	 	 	14	 
	13.4.
	 	Corporation Transaction in which Awards are Assumed	 	 	14	 
	13.5.
	 	Adjustments	 	 	14	 
	13.6.
	 	No Limitations on Company	 	 	15	 
	14.    GENERAL PROVISIONS	 	 	15	 
	14.1.
	 	Disclaimer of Rights	 	 	15	 
	14.2.
	 	Nonexclusivity of the Plan	 	 	15	 
	14.3.
	 	Withholding Taxes	 	 	15	 
	14.4.
	 	Captions	 	 	16	 
	14.5.
	 	Other Provisions	 	 	16	 
	14.6.
	 	Number and Gender	 	 	16	 
	14.7.
	 	Severability	 	 	16	 
	14.8.
	 	Governing Law	 	 	16	 
	14.9.
	 	Code Section 409A	 	 	16	 

ii

 

NVR, INC.

2010 EQUITY INCENTIVE PLAN

     NVR, Inc., a Virginia corporation, sets forth herein the terms of its 2010 Equity Incentive
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, directors, and key employees 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 and restricted share units.
Any of these awards may, but need not, be made as performance incentives to reward attainment of
long-term performance goals in accordance with the terms hereof. Stock options granted under the
Plan will be non-qualified stock options, as provided herein.

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, 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 Section 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 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 Section 1.414(c)-2(b)(2)(i).

     2.2 “Applicable Laws” means the legal requirements relating to the Plan and the Awards under
applicable provisions of the corporate, securities, tax and other laws, rules, regulations and
government orders, and the rules of any applicable stock exchange or national market system, of any
jurisdiction applicable to Awards granted to residents therein.

     2.3 “Award” means a grant of an Option or Restricted Share Units under the Plan.

     2.4 “Award Agreement” means the agreement between the Company and a Grantee that evidences and
sets out the terms and conditions of an Award.

1

 

     2.5 “Benefit Arrangement” shall have the meaning set forth in Section 11 hereof

     2.6 “Board” means the Board of Directors of the Company.

     2.7 “Cause” means, as determined by the Board and unless otherwise provided in an applicable
agreement with the Company or any Affiliate, (i) conviction of a felony, violation of any federal
or state securities law, or other crime involving moral turpitude; (ii) gross misconduct in
connection with the performance of such Grantee’s duties (which shall include a breach of such
Grantee’s fiduciary duty of loyalty); or (iii) a material breach of any covenants by the Grantee
contained in any agreement between Grantee and the Company or its affiliates.

     2.8 “Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended.

     2.9 “Committee” means the Compensation Committee of the Board which shall consist of two or
more Outside Directors of the Company who (a) 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 who (b) comply with the
independence requirements of the stock exchange on which the Common Stock is listed.

     2.10 “Company” means NVR, Inc., a Virginia corporation.

     2.11 “Corporate Transaction” means (i) the dissolution or liquidation of the Company or a
merger, consolidation, or reorganization of the Company with one or more other entities in which
the Company is not the surviving entity, (ii) a sale of substantially all of the assets of the
Company to another person or entity, or (iii) any transaction or
series of transactions (including
without limitation a merger or reorganization in which the Company is the surviving entity) which
results in any person or entity (other than persons who are stockholders or affiliates immediately
prior to the transaction) owning 50% or more of the combined voting power of all classes of stock
of the Company.

     2.12 “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.

     2.13 “Effective Date” means the date the Plan was approved by the stockholders.

     2.14 “Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as
hereafter amended.

     2.15 “Fair Market Value” means the value of a share of Stock, determined as follows: if on
the Grant Date the shares of Stock are listed on an established national or regional stock
exchange, or are 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

2

 

Committee shall determine the appropriate exchange or
market) on the last trading day immediately preceding the date of grant. If there is no such
reported closing price on the applicable date as specified in the immediately preceding sentence,
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 the applicable date as specified in the immediately preceding sentence. If on the
Grant Date the Stock is not listed on such an exchange or traded on such a market, Fair Market
Value shall be the value of the Stock as determined by the Committee by the reasonable application
of a reasonable valuation method, in a manner consistent with Code Section 409A. For purposes of
determining taxable income and the amount of the related tax withholding obligation under Section
14.3, notwithstanding this Section 2.14 or Section 14.3, for any shares of Stock that are sold on
the same day that such shares are first legally saleable pursuant to the terms of the applicable
award agreement (which for an option is the date of exercise), Fair Market Value shall be
determined based upon the sale price of such shares so long as the grantee has provided the Company
with advance written notice of such sale.

     2.16 “Grant Date” means, as determined by the Committee, the latest to occur of (i) the date
as of which the Company completes the corporate action constituting the 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.

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

     2.18 “Non-qualified Stock Option” means an Option that is not an incentive stock option within
the meaning of Code Section 422.

     2.19 “Option” means an option to purchase one or more shares of Stock pursuant to the Plan.

     2.20 “Option Price” means the exercise price for each share of Stock subject to an Option.

     2.21 “Other Agreement” shall have the meaning set forth in Section 11 hereof.

     2.22 “Outside Director” means a member of the Board who is not an officer or employee of the
Company.

     2.23 “Plan” means this NVR, Inc. 2010 Equity Incentive Plan.

     2.24 “Reporting Person” means a person who is required to file reports under Section 16(a) of
the Exchange Act.

     2.25 “Securities Act” means the Securities Act of 1933, as now in effect or as hereafter
amended.

     2.26 “Service” means service as a Service Provider to the Company or any 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 any Affiliate. Subject to the preceding sentence, whether a termination
of Service shall have occurred for purposes of

3

 

the Plan shall be determined by the Committee, which
determination shall be final, binding and conclusive.

     2.27 “Service Provider” means an employee, officer or director of the Company or any
Affiliate, currently providing services to the Company or any Affiliate.

     2.28 “Stock” means the shares of common stock, par value $0.01 per share, of the Company.

     2.29 “Restricted Share Units” means a bookkeeping entry representing the equivalent of one
share of Stock awarded to a Grantee pursuant to Section 9 hereof.

     2.30 “Subsidiary” means any “subsidiary corporation” of the Company within the meaning of Code
Section 424(f).

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 Laws.
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 Laws. 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.

     3.2. Committee.

     The Board hereby delegates to the Committee such powers and authorities related to the
administration and implementation of the Plan, as set forth in Section 3.1 above and other
applicable provisions, as the Board shall determine, consistent with the certificate of
incorporation and by-laws of the Company and Applicable Laws. The Board or Committee 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, or a committee composed of one or more officers of the
Company who are not directors, who may administer the Plan with respect to employees or other
Service Providers who are not executive officers (as defined under Rule 3b-7 of the Exchange Act)
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, subject to the
requirements of Rule 16b-3 and the rules of the applicable
national or regional stock exchange.

     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 Board,

4

 

such action may be taken or
such determination may be made by the Committee. Unless otherwise expressly determined by the
Board, any such 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 or the committee
designated pursuant to Section 3.2(ii), 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
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,

     (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. 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.

     The Committee 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 non-competition agreement, any agreement prohibiting solicitation of employees of
the Company or any Affiliate thereof or any confidentiality obligation with respect to 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 any Affiliate thereof and is terminated for Cause as defined in the applicable Award Agreement
or the Plan or any other agreement with the Grantee, as applicable.

     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 States Securities
and Exchange Commission (whichever first occurred) of the financial document that contained such
material noncompliance.

5

 

     3.4. No Repricing.

     Notwithstanding anything in this Plan to the contrary, the Committee shall not have the
authority, without stockholder approval, (A) to cancel, exchange, substitute, buyout or surrender
such outstanding Options in exchange for cash, other Awards or Options with an Option Price that is
less than the Option Price of the original Option, (B) to reduce the exercise price of any
outstanding Option, or (C) to take any other action that would be treated as a repricing under the
rules of the stock exchange on which the Stock is listed; provided, that appropriate adjustments
shall be made to outstanding Options pursuant to Section 13.

     3.5. No Liability.

     No member of the Board or 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

     4.1. Number of Shares Available for Awards.

     Subject to adjustment as provided in Section 13 hereof, the number of shares of Stock
available for issuance under the Plan shall be seven hundred thousand (700,000), of which no more
than two hundred forty thousand (240,000) can be issued as Restricted Share Units. Stock issued or
to be issued under the Plan shall be authorized but unissued shares; or, to the extent permitted by
Applicable Laws, issued shares that have been reacquired by the Company.

     4.2. Share Usage.

     Shares covered by an Award shall be counted as used as of the Grant Date. Any shares of Stock
that are subject to Options or Restricted Share Units shall be counted against the limit set forth
in Section 4.1 as one (1) share for every one (1) share subject to an Award. If any shares covered
by an Award granted under the Plan are not purchased or are forfeited or expire, 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, termination or expiration, again be available
for making Awards under the Plan in the same amount as such shares were counted against the limit
set forth in Section 4.1. The number of shares of Stock available for issuance under the Plan
shall not be increased by any shares of Stock purchased by the Company with proceeds from option
exercises.

6

 

5. EFFECTIVE DATE, DURATION AND AMENDMENTS

     5.1. Effective Date.

     The Plan shall be effective as of the Effective Date, subject to approval of the Plan by the
Company’s stockholders.

     5.2. Term.

     The Plan shall terminate automatically ten (10) years after the Effective Date and may be
terminated on any earlier date as provided in Section 5.3.

     5.3. Amendment and Termination of the Plan.

     The Committee 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. An amendment shall be contingent on
approval of the Company’s stockholders to the extent stated by the Committee, required by
Applicable Laws or required by applicable stock exchange listing requirements. No amendment will
be made to the no-repricing provisions of Section 3.4 or the option pricing provisions of Section
8.1 without the approval of the Company’s stockholders. 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.

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 any Service Provider, as the
Committee shall determine and designate from time to time.

     6.2. Limitation on Shares Subject to Stock Option Awards.

     The maximum number of shares of Stock subject to Options that can be awarded under the
Plan to any person eligible for an Award under Section 6 hereof is one hundred shares (100,000) per
calendar year.

     6.3. Successive Awards.

     An eligible person may receive more than one Award, subject to such restrictions as are
provided herein.

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

7

 

provisions but shall be consistent
with the terms of the Plan. Each Award Agreement evidencing an Award of Options shall specify that
such Options are intended to be Non-qualified Stock Options.

8. TERMS AND CONDITIONS OF OPTIONS

     8.1. Option Price.

     The Option Price of each Option shall be fixed as the Fair Market Value on the date of grant
and stated in the Award Agreement evidencing such Option.

     8.2. Vesting.

     Subject to Sections 8.3 and 13.3 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 provided no option can vest prior to December 31, 2013 except in
connection with a death, Disability or Corporate Transaction. 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.

     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 13 hereof which results
in termination of the Option.

     8.6. Method of Exercise.

     Subject to the terms of Section 10 and Section 13.3, an Option that is exercisable may be
exercised by the Grantee’s delivery to the Company of notice of exercise on any business
day, at the Company’s principal office, on the form specified by the Company and in accordance
with any additional procedures specified by the Committee. Such notice shall specify the number of
shares of Stock with respect to which the Option is being exercised and

8

 

shall be accompanied by
payment in full of the Option Price of the shares of Stock 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.

     8.7. Rights of Holders of Options.

     Unless otherwise stated in the applicable Award Agreement, an individual holding or entity
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 13 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.

     8.9. Transferability of Options.

     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. 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.

9. TERMS AND CONDITIONS OF RESTRICTED SHARE UNITS

     9.1. Grant of Restricted Share Units

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

     9.2. Restrictions

     At the time a grant of Restricted Share Units is made, the Committee may, in its sole
discretion, establish a period of time (a “restricted period”) applicable to such
Restricted Share Units. Each Award of Restricted Share Units may be subject to a different
restricted period, provided, however, that no Restricted Share Unit can vest prior to December 31,
2011. The Committee may in its sole discretion, at the time a grant of Restricted Share 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 Share Units. No Restricted Share 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 Share Units.

9

 

9.3. Rights of Holders of Restricted Share Units

          9.3.1. No Stockholder Rights

          Holders of Restricted Share Units shall have no rights as stockholders of the Company.

          9.3.2. Creditor’s Rights

          A holder of Restricted Share Units shall have no rights other than those of a general creditor
of the Company. Restricted Share Units represent an unfunded and unsecured obligation of the
Company, subject to the terms and conditions of the applicable Award Agreement.

     9.4. 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 Share 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. Upon forfeiture of Restricted
Share Units, the Grantee shall have no further rights with respect to such Award.

     9.5. 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 Restricted Share 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 Restricted Share Unit once
the share of Stock represented by the Restricted Share Unit has been delivered.

10. FORM OF PAYMENT FOR OPTIONS

     10.1. General Rule.

     Payment of the Option Price for the shares purchased pursuant to the exercise of an Option
shall be made in cash or in cash equivalents acceptable to the Company.

     10.2. 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 may be made all or in part through the tender or
attestation to the Company of shares of Stock, which shall be valued, for
purposes of determining the extent to which the Option Price has been paid thereby, at their
Fair Market Value on the date of exercise or surrender.

10

 

     10.3. Cashless Exercise.

     With respect to an Option only, 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 14.3, or, with the consent of the Company, by
issuing the number of shares equal in value to the difference between the Option Price and the Fair
Market Value of the shares subject to the portion of the Option being exercised.

     10.4. Other Forms of Payment.

     To the extent the Award Agreement so provides and/or unless otherwise specified in an
Award Agreement, payment of the Option Price for shares purchased pursuant to exercise of an Option
may be made in any other form that is consistent with Applicable Laws, regulations and rules,
including, without limitation, Service.

11. PARACHUTE LIMITATIONS

     If the Grantee is a “disqualified individual,” as defined in Code Section 280G(c), then,
notwithstanding any other provision of this Plan or of any other agreement, contract, or
understanding heretofore or hereafter entered into by a Grantee with an Applicable Entity, except
an agreement, contract, or understanding that expressly addresses Code Section 280G or Code Section
4999 (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”), any right to exercise, vesting, payment or benefit to the Grantee
under this Plan shall be reduced or eliminated:

     (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 exercise, vesting,
payment or benefit to the Grantee under this Plan to be considered a “parachute payment”
within the meaning of Code Section 280G(b)(2) as then in effect (a “Parachute
Payment”); and

     (ii) if, as a result of receiving such 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.

     The Company shall accomplish such reduction by first reducing or eliminating any cash payments
(with the payments to be made furthest in the future being reduced first), then by reducing or
eliminating any accelerated vesting of Options, then by reducing or

11

 

eliminating any accelerated
vesting of Restricted Stock, then by reducing or eliminating any other remaining Parachute
Payments.

12. REQUIREMENTS OF LAW

     12.1. 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 of Stock would constitute a violation by the Grantee, any other
individual or entity exercising an Option, or the Company or an Affiliate 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 of Stock 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 of Stock hereunder, no
shares of Stock may be issued or sold to the Grantee or any other individual or entity 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 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 of Stock unless the Committee has
received evidence satisfactory to it that the Grantee or any other individual or entity exercising
an Option may acquire such shares of Stock 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 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 shall not be exercisable until
the shares of Stock covered by such Option are registered or are exempt from registration, the
exercise of such Option 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.

     12.2. 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 granted hereunder that would otherwise be subject to Section 16(b) of the Exchange Act
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 with respect to such Awards 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

12

 

respect necessary to satisfy the requirements of, or to take advantage of any features of, the
revised exemption or its replacement.

13. EFFECT OF CHANGES IN CAPITALIZATION

     13.1. 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 stock or other securities of the
Company on account of any recapitalization, reclassification, stock split, reverse split,
combination of stock, exchange of stock, stock dividend or other distribution payable in capital
stock, or other increase or decrease in such stock effected without receipt of consideration by the
Company occurring after the Effective Date, the number and kinds of shares of stock for which
grants of Options and Restricted Share Units 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 shall not change the aggregate Option Price payable with respect to shares that are subject
to the unexercised portion of an outstanding Option, but shall include a corresponding
proportionate adjustment in the Option 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 to reflect such distribution.

13

 

	 	13.2.	 	Reorganization in Which the Company Is the Surviving Entity Which does not
Constitute a Corporate Transaction.

     Subject to Section 13.3 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 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 would have been entitled immediately following such reorganization, merger, or
consolidation, with a corresponding proportionate adjustment of the Option Price per share so that
the aggregate Option Price thereafter shall be the same as the aggregate Option Price of the shares
of Stock remaining subject to the Option 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 13.2, Restricted Share Units shall be adjusted so as to apply to
the securities that a holder of the number of shares of Stock subject to the Restricted Share Units would have been
entitled to receive immediately following such transaction.

     13.3. Corporate Transaction in which Awards are not Assumed.

     Upon the occurrence of a Corporate Transaction in which outstanding Options and Restricted
Share Units are not being assumed or continued:

          (i) all outstanding shares of Restricted Share Units shall be deemed to have vested
immediately prior to the occurrence of such Corporate Transaction, and (ii) fifteen days prior to
the scheduled consummation of a Corporate Transaction, all Options outstanding hereunder shall
become immediately exercisable and shall remain exercisable for a period of fifteen days.

          With respect to the period during which Options can be exercised, (i) any exercise of an
Option 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
shall terminate. The Committee shall send notice of an event that will result in such a
termination to all individuals who hold Options not later than the time at which the Company gives
notice thereof to its stockholders.

     13.4. Corporation Transaction in which Awards are Assumed.

     The Plan, Options, and Restricted Share Units theretofore granted shall continue in the manner
and under the terms so provided in the event of 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 and Restricted Share Units theretofore granted, or for the substitution
for such Options and Restricted Share Units for new common stock options and Restricted Share Units
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 exercise prices in order to provide equivalent value to the Awards. In the event a
Grantee’s Award is assumed, continued or substituted upon the consummation of any Corporate
Transaction and his employment is terminated without Cause within one year following the
consummation of such Corporate Transaction, the Grantee’s Award will be fully vested and may be
exercised in

14

 

full, to the extent applicable, beginning on the date of such termination and for the one-year
period immediately following such termination.

     13.5. Adjustments.

     Adjustments under this Section 13 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. This Section 13.5 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.

     13.6. 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.

14. GENERAL PROVISIONS

     14.1. Disclaimer of Rights.

     No provision in the Plan or in any Award or Award Agreement shall be construed to confer upon
any individual or entity 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 or any Affiliate either to increase or decrease the compensation or other payments to any
individual or entity at any time, or to terminate any employment or other relationship between any
individual or entity and the Company or any Affiliate. In addition, notwithstanding anything
contained in the Plan to the contrary, unless 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 provide Service. 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
and Awards 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.

     14.2. 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

15

 

discretion determines desirable, including, without limitation, the granting of stock options
otherwise than under the Plan.

     14.3. 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 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 or exercise, the Grantee shall pay in cash to the Company or an Affiliate, as the case may
be, any amount that the Company or an Affiliate may reasonably determine to be necessary to satisfy
such withholding obligation; provided, however, that if there is a same day sale,
the Grantee shall pay such withholding obligation on the day that the same day sale is completed.
For purposes of determining taxable income and the amount of the related tax withholding obligation
under this Section 14.3, notwithstanding Section 2.14 or this Section 14.3, for any Shares that are
sold on the same day that such Shares are first legally saleable pursuant to the terms of the
applicable award agreement, Fair Market Value shall be determined based upon the sale price for
such Shares so long as the grantee has provided the Company with advance written notice of such
sale.

     14.4. 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.

     14.5. 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.

     14.6. 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.

     14.7. 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.

     14.8. Governing Law.

     The validity and construction of this Plan and the instruments evidencing the Awards hereunder
shall be governed by the laws of the Commonwealth of Virginia, 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.

16

 

     14.9. Code Section 409A.

     The Company 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 Company 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 shall 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.

* * *

17

 

     To
record adoption of the Plan by the Board as of February 22, 2010, and
approval of the Plan by the stockholders on May 4, 2010, the
Company has caused its authorized officer to execute the Plan.

	 	 	 	 	 
	 	NVR, INC.

 	 
	 	By:  	/s/
Paul C. Saville	 
	 	 	By: Paul C. Saville	 
	 	 	Title: President and Chief
Executive Officer	 
	 	 	 	 
	 

18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}]]