Document:

Exhibit 10.1

 

ATLANTIC UNION BANKSHARES CORPORATION

STOCK AND INCENTIVE PLAN

(as amended
and restated effective May 4, 2021)

 

ARTICLE I

Establishment, Purpose and Duration

 

1.1            Establishment
of the Plan.

 

(a)            Atlantic
Union Bankshares Corporation, a Virginia corporation, hereby amends and restates the Atlantic Union Bankshares Corporation Stock and Incentive
Plan as set forth herein effective on May 4, 2021 (the “Effective Date”), subject to the approval of the amended and
restated Plan by the Company’s shareholders. Unless otherwise defined herein, all capitalized terms shall have the meanings set
forth in Section 2.1. The Plan permits the grant of Incentive Stock Options, Nonqualified Stock Options, Restricted Stock, Restricted
Stock Units, Stock Awards, Performance Share Units and Performance Cash Awards to Key Employees of the Company or its Subsidiaries and
the grant of Nonqualified Stock Options, Restricted Stock, Restricted Stock Units, Stock Awards, Performance Share Units and Performance
Cash Awards to Non-Employee Directors of the Company or its Subsidiaries.

 

(b)            The
Plan was originally adopted by the Board as the Union First Market Bankshares Corporation 2011 Stock Incentive Plan on November 2,
2010, and became effective on January 1, 2011, subject to the approval of the Plan by the Company’s shareholders, which was
obtained on April 26, 2011. The Plan was amended and restated as the Union Bankshares Corporation Stock and Incentive Plan by the
Board on January 29, 2015, which amendment and restatement became effective on April 21, 2015 when approved by shareholders
of the Company. The Plan was further amended by the Board effective May 20, 2019 to reflect the new name of the Company.

 

1.2            Purpose
of the Plan. The purpose of the Plan is to promote the success of the Company and its Subsidiaries by providing incentives to Key
Employees and Non-Employee Directors that will promote the identification of their personal interest with the long-term financial success
of the Company and with growth in shareholder value, consistent with the Company’s risk management practices. The Plan is designed
to provide flexibility to the Company, including its Subsidiaries, in its ability to motivate, attract, and retain the services of Key
Employees and Non-Employee Directors upon whose judgment, interest, and special effort the successful conduct of its operation is largely
dependent.

 

1.3            Duration
of the Plan. The terms of the amended and restated Plan are effective on the Effective Date, as described in Section 1.1(a).
No Award may be granted under the Plan after May 3, 2031. Awards outstanding on such date shall remain valid in accordance with their
terms. The Board shall have the right to terminate the Plan at any time pursuant to Article XVI.

 

     

     

    

 

ARTICLE II

Definitions

 

2.1            Definitions.
The following terms shall have the meanings set forth below:

 

(a)            “Affiliate”
and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 under the Exchange Act.

 

(b)            “Agreement”
means a written agreement or other instrument or document, which may be in electronic format, implementing the grant of an Award and setting
forth the specific terms of an Award, and which is signed or acknowledged (including a signature or acknowledgment in electronic format)
by an authorized officer or director of the Company and the Participant, except that no signature will be required from the Participant
in the case of a Stock Award with no vesting conditions. The Company’s Chief Executive Officer, Chief Financial Officer, Chairman
of the Committee, Chairman of the Board, and such other directors or officers of the Company as shall be designated by the Committee are
hereby authorized to execute or acknowledge Agreements on behalf of the Company (including a signature or acknowledgment in electronic
format) and to cause Agreements to be delivered to each Participant (including delivery in electronic format).

 

(c)            “Award”
means a grant under this Plan of an Incentive Stock Option, Nonqualified Stock Option, Restricted Stock, Restricted Stock Unit, Stock
Award, Performance Share Unit and/or Performance Cash Award.

 

(d)            “Award
Date” means the date on which an Award is made (also referred to as “granted”) by the Committee under this Plan.

 

(e)            “Beneficiary”
means the person designated by a Participant pursuant to Section 17.11.

 

(f)            “Board”
means the Board of Directors of the Company, unless otherwise indicated.

 

(g)            “Cause”
has the meaning set forth in any employment agreement, or, if none, in any severance or change in control agreement, then in effect between
the Participant and the Company or a subsidiary, if applicable, and, if the Participant has no such agreement or if such agreement does
not define the term, “Cause” means (i) the willful and continued failure of the Participant to substantially perform
the Participant’s duties with the Company or one of its subsidiaries (other than any such failure resulting from incapacity due
to physical or mental illness), after a written demand for substantial performance is delivered to the Participant by the Company, or
(ii) the willful engaging by the Participant in illegal conduct or gross misconduct which is materially and demonstrably injurious
to the Company or one of its subsidiaries.

 

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(h)            “Change
in Control” shall be deemed to have occurred if the conditions in any one of the following three paragraphs have been satisfied
at any time after the Effective Date, provided that if a Change in Control occurs on account of a series of transactions or events, the
Change in Control occurs on the date of the last of such transactions or events:

 

(i)            during
any twelve (12) month period, any Person (as defined below) who or which, together with all Affiliates and Associates of such Person,
acquires beneficial ownership, directly or indirectly, of securities of the Company representing 20% or more of the combined voting power
of the Company’s then outstanding securities; or

 

(ii)            during
any twelve (12) month period, as the direct or indirect result of, or in connection with, a tender or exchange offer, a merger or other
business combination, a sale of assets, a contested election of directors, or any combination of these events, the composition of the
Board shall change such that a majority of the Board shall no longer consist of Continuing Directors; or

 

(iii)            if
at any time, (1) the Company shall consolidate with, or merge with, any other Person and the Company shall not be the continuing
or surviving corporation, (2) any Person shall consolidate with or merge with the Company, and the Company shall be the continuing
or surviving corporation and, in connection therewith, all or part of the outstanding Stock shall be changed into or exchanged for stock
or other securities of any other Person or cash or any other property, (3) the Company shall be a party to a statutory share exchange
with any other Person after which the Company is a subsidiary of any other Person, or (4) the Company shall sell or otherwise transfer
50% or more of the assets or earning power of the Company and its subsidiaries (taken as a whole) to any Person or Persons.

 

For purposes of this Section 2.1(h), “Person” means
any individual, entity or group (within the meaning of Section 13(d)(3) of the Exchange Act), other than any employee benefit
plan (or related trust) sponsored or maintained by the Company or any affiliated company, and “beneficial ownership” has the
meaning given the term in Rule 13d-3 under the Exchange Act.

 

For purposes of any Award subject to Code Section 409A, this definition
shall be narrowed as required to comply, and shall be interpreted consistent, with the requirements of Code Section 409A.

 

(i)            “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and any regulations promulgated thereunder.

 

(j)            “Committee”
means the committee of the Board appointed by the Company to administer the Plan pursuant to Article III, which shall be the Compensation
Committee of the Board unless a subcommittee is required as provided below or unless the Board determines otherwise. All members of the
Committee shall be “independent directors” under applicable stock exchange listing standards. For actions which require that
all of the members of the Committee constitute “non-employee directors” as defined in Rule 16b-3, or any similar or successor
rule, as amended from time to time, the Committee shall consist of a subcommittee of at least two members of the Compensation Committee
meeting such qualifications. In the event the Board of Directors of the Company exercises the authority of the Committee in connection
with the Plan or an Award as contemplated by Section 3.1(a), the term “Committee” shall refer to the Board of Directors
of the Company in connection with the Plan or with regard to that Award.

 

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(k)            “Company”
means Atlantic Union Bankshares Corporation or any successor thereto.

 

(l)            “Continuing
Director” means an individual who was a member of the Board of Directors of the Company on the Effective Date or whose subsequent
nomination for election or re-election to the Board was recommended or approved by the affirmative vote of two-thirds of the Continuing
Directors then in office.

 

(m)            “Disability”
or “Disabled” means with respect to an Incentive Stock Option, a Disability within the meaning of Code Section 22(e)(3).
As to all other Awards, the Committee shall determine whether a Disability exists and such determination shall be conclusive.

 

(n)            “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, and any regulations promulgated thereunder.

 

(o)            “Fair
Market Value” of a Share means (i) the per Share price at the close of business on the applicable principal U.S. market on
the relevant date if it is a trading date, or, if not, on the most recent date on which the Stock was traded prior to such date, as reported
by the stock exchange for the applicable principal U.S. market, or (ii) if, in the opinion of the Committee, this method is inapplicable
or inappropriate for any reason, the fair market value as determined pursuant to a reasonable method adopted by the Committee in good
faith for such purpose.

 

(p)            “Incentive
Stock Option” or “ISO” means an option to purchase Stock, granted under Article VI, which is designated as an incentive
stock option and is intended to meet the requirements of, and qualify for favorable federal income tax treatment under, Code Section 422.

 

(q)            “Key
Employee” means an officer or other key employee of the Company or its Subsidiaries, who, in the opinion of the Committee, can contribute
significantly to the growth and profitability of, or perform services of major importance to, the Company and its Subsidiaries.

 

(r)            “Non-Employee
Director” means an individual who is a member of the board of directors of the Company or any Subsidiary thereof or a member of
a regional advisory board of the Company or any Subsidiary thereof and, in either case, who is not an employee of the Company or any Subsidiary
thereof.

 

(s)            “Nonqualified
Stock Option” means an option to purchase Stock, granted under Article VI, which is not intended to be an Incentive Stock Option
and is so designated.

 

(t)            “Option”
means an Incentive Stock Option or a Nonqualified Stock Option.

 

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(u)            “Participant”
means a Key Employee or Non-Employee Director who has been granted an Award under the Plan and whose Award remains outstanding.

 

(v)            “Performance-Based
Compensation Award” means any Award for which exercise, full enjoyment or receipt thereof by the Participant is contingent on satisfaction
or achievement of the Performance Goal(s) applicable thereto. The terms and conditions of each Performance-Based Compensation Award,
including the Performance Goal(s) and Performance Period, shall be set forth in an Agreement or in a subplan of the Plan that is
incorporated by reference into an Agreement.

 

(w)            “Performance
Cash Award” means an Award of cash granted to a Participant pursuant to Article XI.

 

(x)            “Performance
Goal” means one or more performance measures or goals set by the Committee in its discretion for each grant of a Performance-Based
Compensation Award. The extent to which such performance measures or goals are met will determine the amount or value of the Performance-Based
Compensation Award that a Participant is entitled to exercise, receive or retain. For purposes of the Plan, a Performance Goal may be
particular to a Participant, and may include, but is not limited to, any one or more of the following performance criteria, either individually,
alternatively or in any combination, subset or component, applied to the performance of the Company as a whole or to the performance of
a Subsidiary, division, strategic business unit, line of business or business segment, measured either quarterly, annually or cumulatively
over a period of years or partial years, in each case as specified by the Committee in the Award: (i) Stock value or increases therein,
(ii) total shareholder return, (iii) operating revenue, (iv) tangible book value or tangible book value growth, tangible
book value per share or growth in tangible book value per share, (v) earnings per share or earnings per share growth, (vi) fully
diluted earnings per share after extraordinary events, (vii) net earnings, (viii) earnings and/or earnings growth (before or
after one or more of taxes, interest, depreciation and/or amortization), operating earnings and/or operating earnings growth, (ix) profits
or profit growth (net profit, gross profit, operating profit, economic profit, profit margins or other corporate profit measures), (x) operating
cash flow, (xi) operating or other expenses or growth thereof, (xii) operating efficiency, (xiii) return on equity, (xiv) return
on tangible equity or return on tangible common equity, (xv) return on assets, capital or investment, (xvi) sales or revenues
or growth thereof, (xvii) deposits, loan and/or equity levels or growth thereof, (xviii) working capital targets, (xix) assets
under management or growth thereof, (xx) cost control measures, (xxi) regulatory compliance, (xxii) gross, operating or
other margins, (xxiii) efficiency ratio (as generally recognized and used for bank financial reporting and analysis), (xiv) interest
income, (xxv) net interest income, (xxvi) net interest margin, (xxvii) non-interest income, (xxviii) non-interest
expense, (xxix) credit quality, net charge-offs and/or non-performing assets (excluding such loans or classes of loans as may be
designated for exclusion), (xxx) percentage of non-accrual loans to total loans or net charge-off ratio, (xxxi) provision expense,
(xxxii) productivity, (xxxiii) customer satisfaction, (xxxiv) satisfactory internal or external audits, (xxxv) improvement
of financial ratings, (xxxvi) achievement of balance sheet or income statement objectives, (xxxvii) quality measures, (xxxviii) regulatory
exam results, (xxxix) achievement of risk management objectives, (xl) achievement of strategic performance objectives, (xli)
achievement of merger or acquisition objectives, (xlii) implementation, management or completion of critical projects or processes, or
(xliii) any component or components of the foregoing (including, without limitation, determination thereof, in the Committee’s sole
discretion, with or without the effect of discontinued operations and dispositions of business units or segments, non-recurring items,
material extraordinary items that are both unusual and infrequent, non-budgeted items, an event or series of events either not directly
related to the operations of the Company or not within the reasonable control of the Company’s management, special charges, accruals
for acquisitions, reorganization and restructuring programs and/or changes in tax law, accounting principles or other such laws or provisions
affecting the Company’s reported results). Performance Goals may include a threshold level of performance below which no payment
or vesting may occur, levels of performance at which specified payments or specified vesting will occur, and a maximum level of performance
above which no additional payment or vesting will occur. Performance Goals may be absolute in their terms or measured against or in relationship
to a pre-established target, the Company’s budget or budgeted results, previous period results, a market index, a designated comparison
group of other companies comparably, similarly or otherwise situated, or any combination thereof. The Committee shall determine the Performance
Period during which a Performance Goal must be met; and attainment of Performance Goals shall be subject to certification by the Committee.
To the extent permitted by the Award Agreement, the Committee may, in its discretion, adjust the compensation or economic benefit due
upon attainment of Performance Goals and adjust the Performance Goals themselves and/or the length of the Performance Period in which
one or more Performance Goals must be achieved.

 

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(y)            “Performance
Period” means the time period during which a Performance Goal must be met in connection with a Performance-Based Compensation Award.
Such time period shall be set by the Committee, provided, however, that for any award other than a Performance Cash Award, the Performance
Period shall not be less than one year, subject to applicable provisions regarding accelerated vesting events.

 

(z)            “Performance
Share Unit” means an Award, designated as a Performance Share Unit, granted to a Participant pursuant to Article X, valued
by reference to the Fair Market Value of Stock or valued as a fixed dollar amount, and subject to achievement or satisfaction of one or
more Performance Goals. Performance Share Units are payable in cash, Stock or a combination thereof. Even to the extent a Performance
Share Unit is denoted by reference to Shares of Stock and is payable in Stock, the receipt of a Performance Share Unit Award does not
constitute receipt of the underlying Shares.

 

(aa)          “Period
of Restriction” means the period during which Shares of Restricted Stock are subject to a substantial risk of forfeiture and/or
subject to limitations on transfer, pursuant to Article VII, or the period during which Restricted Stock Units are subject to vesting
requirements, pursuant to Article VIII. The relevant restriction may lapse based on a period of time or after meeting one or more
Performance Goals specified by the Committee, or both. The Period of Restriction shall be set by the Committee.

 

(bb)          “Plan”
means the Atlantic Union Bankshares Corporation Stock and Incentive Plan, as described herein and as amended from time to time, or any
successor plan.

 

(cc)          “Restricted
Stock” means an Award of Stock granted to a Participant pursuant to Article VII, which is subject to a substantial risk of
forfeiture and/or subject to limitations on transferability until the designated conditions for the lapse of such restrictions are satisfied.

 

(dd)          “Restricted
Stock Unit” or “RSU” means an Award designated as a Restricted Stock Unit, which is a bookkeeping entry granted to a
Participant pursuant to Article VIII, valued by reference to the Fair Market Value of Stock, and subject to vesting requirements.
Restricted Stock Units are payable in cash, Stock or a combination thereof. Even to the extent a Restricted Stock Unit is denoted by reference
to Shares of Stock and is payable in Stock, the receipt of a Restricted Stock Unit Award does not constitute receipt of the underlying
Shares.

 

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(ee)          “Rule 16b-3”
means Rule 16b-3 promulgated under the Exchange Act, including any corresponding subsequent rule or any amendments enacted after
the Effective Date.

 

(ff)          “Stock”
or “Shares” means the common stock of the Company.

 

(gg)         “Stock
Award” means an Award of Stock granted to a Participant pursuant to Article IX.

 

(hh)         “10%
Stockholder” means a person who owns, directly or indirectly, stock possessing more than 10% of the total combined voting power
of all classes of stock of the Company or any parent or subsidiary of the Company. Indirect ownership of stock shall be determined in
accordance with Code Section 424(d).

 

(ii)            For
purposes of Incentive Stock Options, “Subsidiary” shall mean a corporation at least 50% of the total combined voting power
of all classes of stock of which is owned by the Company, either directly or through one or more of its Subsidiaries, within the meaning
of Code Section 424(f). For purposes of all Awards other than Incentive Stock Options, “Subsidiary” shall mean any entity
in which the Company has an ownership interest that would be considered a single employer with the Company within the meaning of Code
Section 414(b) or Code Section 414(c) (substituting “at least 50%” for “at least 80%” in determining
ownership or control therein), except to the extent a different definition is required under Code Section 409A.

 

ARTICLE III

Administration

 

3.1            The
Committee.

 

(a)            The
Plan shall be administered by the Committee which shall have all powers necessary or desirable for such administration. To the extent
required by Rule 16b-3, all Awards shall be made by members of the Committee who are “non-employee directors” as that
term is defined in Rule 16b-3, or by the Board. In the event the Board determines that a member of the Committee (or any applicable
subcommittee) was not an “independent director” under applicable stock exchange listing standards and/or was not a “non-employee
director” as defined in Rule 16b-3, as applicable, on the Award Date, such determination shall not invalidate the Award and
the Award shall remain valid in accordance with its terms. Any authority granted to the Committee may also be exercised by the full Board.

 

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(b)            The
express grant in this Plan of any specific power to the Committee shall not be construed as limiting any power or authority of the Committee.
In addition to any other powers and, subject to the provisions of the Plan, the Committee shall have the following specific powers: (i) to
determine the terms and conditions upon which the Awards may be made and exercised, paid and settled; (ii) to determine all terms
and provisions of each Agreement, which need not be identical; (iii) to construe and interpret the Agreements and the Plan, including
the ability to resolve any ambiguities and define any terms; (iv) to establish, amend or waive rules or regulations for the
Plan’s administration; (v) to accelerate the exercisability of any Award or the end of the Performance Period or the termination
of any Period of Restriction or other restrictions imposed under the Plan to the extent permitted by Code Section 409A; and (vi) to
make all other determinations and take all other actions necessary or advisable for the administration of the Plan. The interpretation
and construction of any provisions of the Plan or an Agreement by the Committee shall be final and conclusive. In the event of a conflict
or inconsistency between the Plan and any Agreement, the Plan shall govern, and the Agreement shall be interpreted to minimize or eliminate
any such conflict or inconsistency.

 

(c)            The
Committee may consult with counsel, who may be counsel to the Company, and shall not incur any liability for any action taken in good
faith in reliance upon the advice of counsel.

 

(d)            The
Committee, in its discretion, may delegate to the Chief Executive Officer and/or Chief Financial Officer of the Company or to another
member of the Company’s management selected by the Committee all or part of the Committee’s authority and duties with respect
to Awards to individuals who are not subject to the reporting and other provisions of Section 16 of the Exchange Act. The Committee
may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Committee’s
delegee or delegees that were consistent with the terms of the Plan.

 

3.2            Selection
of Participants. The Committee shall have the authority to grant Awards under the Plan, from time to time, to such Key Employees and
Non-Employee Directors as may be selected by it. Each Award shall be evidenced by an Agreement.

 

3.3            Decisions
Binding. All determinations and decisions made by the Board or the Committee pursuant to the provisions of the Plan shall be final,
conclusive and binding.

 

3.4            Rule l6b-3
Requirements. Notwithstanding any provision of the Plan to the contrary, the Board or the Committee may impose such conditions on
any Award, and amend the Plan in any such respects, as may be required to satisfy the requirements of Rule 16b-3.

 

3.5            Indemnification
of Committee. In addition to such other rights of indemnification as they may have as directors or as members of the Committee, the
members of the Committee shall be indemnified by the Company against reasonable expenses, including attorneys’ fees, actually and
reasonably incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which
they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Award granted
or made hereunder, and against all amounts reasonably paid by them in settlement thereof or paid by them in satisfaction of a judgment
in any such action, suit or proceeding, if such members acted in good faith and in a manner which they believed to be in, and not opposed
to, the best interests of the Company and its Subsidiaries.

 

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ARTICLE IV

Stock Subject to the Plan

 

4.1            Number
of Shares.

 

(a)            Subject
to adjustment as provided in Article XIII, the maximum aggregate number of Shares that may be issued pursuant to Awards made under
the Plan shall not exceed 4,000,000. Except as provided in Section 4.2, the issuance of Shares in connection with the exercise of,
or as other payment for, Awards under the Plan shall reduce the number of Shares available for future Awards under the Plan.

 

(b)            Subject
to adjustment as provided in Article XIII, no more than an aggregate of 4,000,000 Shares may be issued pursuant to the exercise of
Incentive Stock Options granted under the Plan (including shares issued pursuant to the exercise of Incentive Stock Options that are the
subject of disqualifying dispositions within the meaning of Code Sections 421 and 422).

 

4.2            Lapsed
Awards or Forfeited Shares. If any Award granted under this Plan terminates, is cancelled, expires, or lapses for any reason other
than by virtue of exercise or settlement of the Award, or if Shares issued pursuant to Awards are forfeited, any Stock subject to such
Award or such forfeited Shares, as applicable, again shall be available for the grant of an Award under the Plan.

 

4.3            Use
of Shares as Payment of Exercise Price or Taxes. Shares withheld by the Company, delivered by the Participant, or otherwise used to
pay the Option Price pursuant to the exercise of an Option shall not be available for future Awards under the Plan. Shares withheld by
the Company, delivered by the Participant, or otherwise used to satisfy payment of withholding taxes associated with an Award shall not
be available for future Awards under the Plan. To the extent Shares are delivered or withheld pursuant to the exercise of an Option, the
number of underlying Shares as to which the exercise related shall be counted against the number of Shares available for future Awards
under the Plan, as opposed to counting only those Shares issued upon exercise.

 

4.4            Per-Participant
Annual Limit. The maximum number of Shares with respect to which Awards may be granted in any calendar year to any Participant during
such calendar year shall be 150,000 in the aggregate. The maximum dollar amount of cash Awards granted in any calendar year to any Participant
shall be $2,500,000 in the aggregate.

 

4.5            No
Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award thereunder. The Committee shall
determine whether cash, other Awards, or other property shall be issued or paid in lieu of such fractional Shares or whether such fractional
Shares or any rights thereto shall be forfeited or otherwise eliminated.

 

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ARTICLE V

Eligibility

 

Persons eligible to participate in the Plan include
(i) all employees of the Company and its Subsidiaries (including any entity which becomes a Subsidiary after the Effective Date)
who, in the opinion of the Committee, are Key Employees, and (ii) all Non-Employee Directors. The grant of an Award shall not obligate
the Company to pay a Key Employee or Non-Employee Director any particular amount of remuneration, to continue the employment of the Key
Employee or the service of the Non-Employee Director after the grant, or to make further grants to the Key Employee or Non-Employee Director
at any time thereafter.

 

ARTICLE VI

Stock Options

 

6.1            Grants
of Options. Subject to the terms and provisions of the Plan, Options may be granted to Key Employees and Non-Employee Directors at
any time and from time to time as shall be determined by the Committee. The Committee shall have complete discretion in determining the
number of Shares subject to Options granted to each Participant, provided, however, that only Nonqualified Stock Options may be granted
to Non-Employee Directors.

 

6.2            Option
Agreement. Each Option grant shall be evidenced by an Agreement that shall specify the type of Option granted, the Option Price (as
hereinafter defined), the duration of the Option, the number of Shares to which the Option pertains, any conditions imposed upon the exercisability
of the Option, and such other provisions as the Committee shall determine. The Agreement shall specify whether the Option is intended
to be an Incentive Stock Option or Nonqualified Stock Option, provided, however, that if an Option is intended to be an Incentive Stock
Option but fails to be such for any reason, it shall continue in full force and effect as a Nonqualified Stock Option. No Option may be
exercised after the expiration of its term or, except as set forth in the Participant’s stock option Agreement, after the termination
of the Participant’s employment or service. The Committee shall set forth in the Participant’s Agreement when, and under what
circumstances, an Option may be exercised after termination of the Participant’s employment or period of service; provided that
in the event an Incentive Stock Option may be exercised after (a) three months from the Participant’s termination of employment
with the Company for reasons other than Disability or death, or (b) one year from the Participant’s termination of employment
on account of Disability or death, then the Agreement shall specifically provide that the exercise beyond such periods shall be the exercise
of a Nonqualified Stock Option. The Committee may, in its sole discretion, amend a previously granted Incentive Stock Option to provide
for more liberal exercise provisions, provided, however, that if the Incentive Stock Option as amended no longer meets the requirements
of Code Section 422, and, as a result the Option no longer qualifies for favorable federal income tax treatment under Code Section 422,
the amendment shall not become effective without the written consent of the Participant.

 

6.3            Option
Price. The exercise price per share of Stock covered by an Option (“Option Price”) shall be determined by the Committee
subject to the limitations described in this Section 6.3 and the Plan. The Option Price shall not be less than 100% of the Fair Market
Value of such Stock on the Award Date. In addition, an ISO granted to a Key Employee who, at the time of grant, is a 10% Stockholder,
shall have an Option Price which is at least equal to 110% of the Fair Market Value of the Stock on the Award Date.

 

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6.4            Duration
of Options. Each Option shall expire at such time as the Committee shall determine at the time of grant, provided, however, that no
Option shall be exercisable later than the tenth (10th) anniversary date of its Award Date. In addition, an ISO granted to a Key Employee
who, at the time of grant, is a 10% Stockholder, shall not be exercisable later than the fifth (5th) anniversary of its Award
Date.

 

6.5            Exercisability.

 

(a)            Options
granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall determine,
which need not be the same for all Participants.

 

(b)            An
Incentive Stock Option, by its terms, shall be exercisable in any calendar year only to the extent that the aggregate Fair Market Value
(determined at the Award Date) of the Stock with respect to which Incentive Stock Options are exercisable by the Participant for the first
time during the calendar year does not exceed $100,000 (the “Limitation Amount”). Incentive Stock Options granted under the
Plan and all other plans of the Company and any Subsidiary shall be aggregated for purposes of determining whether the Limitation Amount
has been exceeded. The Committee may impose such conditions as it deems appropriate on an Incentive Stock Option to ensure that the foregoing
requirement is met. If Incentive Stock Options that first become exercisable in a calendar year exceed the Limitation Amount, the excess
Options will be treated as Nonqualified Stock Options to the extent permitted by law.

 

6.6            Method
of Exercise. Options shall be exercised by the delivery of a written notice to the Company in the form (which may be electronic) prescribed
by the Committee (or its delegee) setting forth the number of Shares with respect to which the Option is to be exercised, accompanied
by full payment for the Shares and payment of (or an arrangement satisfactory to the Company for the Participant to pay) any tax withholding
required in connection with the Option exercise. To the extent approved by the Committee from time to time, the Option Price shall be
payable to the Company in full either (a) in cash, (b) by delivery of Shares of Stock that the Participant has previously acquired
and owned valued at Fair Market Value at the time of exercise, (c) by delivery of a properly executed exercise notice together with
irrevocable instructions to a broker to deliver promptly to the Company, from the sale proceeds with respect to the sale of Company Stock,
the amount necessary to pay the Option Price and, if required by the Committee, applicable withholding taxes, (d) by the Company
withholding Shares otherwise issuable upon the exercise valued at Fair Market Value at the time of exercise, or (e) by a combination
of the foregoing. As soon as practicable, after receipt of written notice and payment of the Option Price and completion of payment of
(or an arrangement satisfactory to the Company for the Participant to pay) any tax withholding required in connection with the Option
exercise, the Company shall, in the Committee’s discretion, either deliver to the Participant stock certificates in an appropriate
amount based upon the number of Options exercised, issued in the Participant’s name, or deliver the appropriate number of Shares
in book-entry or electronic form.

 

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6.7            Restrictions
on Stock Transferability. The Committee shall impose such restrictions on any Shares acquired pursuant to the exercise of an Option
under the Plan as it may deem advisable, including, without limitation, restrictions under the applicable federal securities law, under
the requirements of any stock exchange upon which such Shares are then listed, and under any blue sky or state securities laws applicable
to such Shares. The Committee may specify in an Agreement that Stock delivered on exercise of an Option is Restricted Stock or Stock subject
to a buyback right by the Company in the amount of, or based on, the Option Price therefor in the event the Participant does not complete
a specified service period after exercise.

 

6.8            Nontransferability
of Options.

 

(a)            In
general, no Option granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, otherwise
than upon the death of the Participant in accordance with Section 17.11. Further, Options granted to a Participant under the Plan
shall be exercisable during his lifetime only by such Participant or his guardian or legal representative.

 

(b)            Notwithstanding
the provisions of Section 6.8(a) and subject to federal and state securities laws, including Rule 16b-3, the Committee
may grant or amend Nonqualified Stock Options that permit a Participant to transfer the Options to his spouse, lineal ascendants and/or
lineal descendants, to a trust for the benefit of such persons, or to a partnership, limited liability company, or other entity the only
partners, members, or interest-holders of which are such persons, provided that the Nonqualified Stock Option may not again be transferred
other than to the Participant originally receiving the Option or to an individual, trust, partnership, limited liability company or other
entity to which such Participant could have transferred the Option pursuant to this Section 6.8(b). Consideration may not be paid
for the transfer of Options. The transferee of an Option shall be subject to all conditions applicable to the Option prior to its transfer.
The Agreement granting the Option shall set forth the transfer conditions and restrictions. The Committee may impose on any transferable
Option and on Stock issued upon the exercise of an Option such limitations and conditions as the Committee deems appropriate. Any such
transfer supersedes any Beneficiary designation made under Section 17.11 with respect to the transferred Nonqualified Stock Options.

 

6.9            Disqualifying
Disposition of Shares Issued on Exercise of an ISO. If a Participant makes a “disposition” (within the meaning of Code
Section 424(c)) of Shares issued upon exercise of an ISO within two years from the Award Date or within one year from the date the
Shares are transferred to the Participant, the Participant shall, within ten days of disposition, notify the Committee (or its delegee)
in order that any income realized as a result of such disposition can be properly reported by the Company on IRS forms W-2 or 1099.

 

6.10            Shareholder
Rights. A Participant holding Options shall have no right to vote the underlying Shares, no right to receive dividends on the underlying
Shares, and no other rights as a shareholder until after the exercise of the Options and the issuance of the underlying Shares. In no
event shall any Option granted under the Plan include any right to dividend equivalents with respect to such Option or the underlying
Shares.

 

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ARTICLE VII

Restricted Stock

 

7.1            Grant
of Restricted Stock. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant
shares of Restricted Stock under the Plan to such Key Employees and Non-Employee Directors and in such amounts as it shall determine.
Participants receiving Restricted Stock Awards are not required to pay the Company therefor (except for applicable tax withholding) other
than the rendering of services. If determined by the Committee, custody of Shares of Restricted Stock may be retained by the Company until
the termination of the Period of Restriction pertaining thereto.

 

7.2            Restricted
Stock Agreement. Each Restricted Stock Award shall be evidenced by an Agreement that shall specify the Period of Restriction, the
number of Restricted Stock Shares granted, and, if applicable, any Performance Period and Performance Goal(s), and such other provisions
as the Committee shall determine.

 

7.3            Transferability.
Except as provided in this Article VII and subject to the limitation in the next sentence, the Shares of Restricted Stock granted
hereunder may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the termination of the applicable
Period of Restriction or upon earlier satisfaction of other conditions as specified by the Committee in its sole discretion and set forth
in the Agreement. All rights with respect to the Restricted Stock granted to a Participant under the Plan shall be exercisable during
his lifetime only by such Participant or his guardian or legal representative.

 

7.4            Other
Restrictions. The Committee shall impose such other restrictions on any Shares of Restricted Stock granted pursuant to the Plan as
it may deem advisable including, without limitation, restrictions under applicable federal or state securities laws, and may legend the
certificates representing Restricted Stock to give appropriate notice of such restrictions or otherwise denote the Restricted Stock as
restricted, if issued in book-entry or electronic form.

 

7.5            Certificate
Legend. In addition to any other legends placed on certificates, or to which Shares of Restricted Stock issued in book-entry or electronic
form are made subject, pursuant to Section 7.4, any Award of Restricted Stock issued in book-entry or electronic form shall be subject
to the following legend, and any certificates representing shares of Restricted Stock granted pursuant to the Plan shall bear the following
legend:

 

The sale or other transfer of the shares of stock represented
by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer set forth
in the Atlantic Union Bankshares Corporation Stock and Incentive Plan, in the rules and administrative procedures adopted pursuant
to such Plan, and in a restricted stock agreement dated <<date of grant>>. A copy of the Plan, such rules and procedures,
and such restricted stock agreement may be obtained from the Equity Plan Administrator of Atlantic Union Bankshares Corporation.

 

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7.6            Removal
of Restrictions. Except as otherwise provided in this Article VII, the Agreement, or applicable law or regulation, Shares of
Restricted Stock covered by each Restricted Stock Award made under the Plan shall become freely transferable by the Participant after
the last day of the Period of Restriction, and, where applicable, after a determination of the satisfaction or achievement of any applicable
Performance Goal. Once the Shares are released from the restrictions, the Participant shall be entitled to have the legend required by
Section 7.5 removed from his Stock certificate or similar notation removed from such Shares if issued in book-entry or electronic
form.

 

7.7            Voting
Rights. During the Period of Restriction, Participants holding Shares of Restricted Stock granted hereunder may exercise full voting
rights with respect to those Shares.

 

7.8            Dividends
and Other Distributions. During the Period of Restriction, unless otherwise provided in the applicable Agreement, recipients of Shares
of Restricted Stock shall be entitled to receive all dividends and other distributions paid with respect to those Shares, provided, however,
that, with respect to Shares of Restricted Stock subject to one or more Performance Goals, during the Period of Restriction, dividends
or other distributions on such Shares may be accumulated but not paid to the Participant unless and until the applicable Performance Goal(s) have
been met (subject to any delay in payment required by Code Section 409A). If any such dividends or distributions are paid in Shares,
the Shares shall be subject to the same restrictions on transferability as the Shares of Restricted Stock with respect to which they were
paid.

 

ARTICLE VIII

Restricted Stock Units

 

8.1            Grant
of Restricted Stock Units. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may
grant Restricted Stock Units under the Plan (with one Unit representing one Share) to such Key Employees and Non-Employee Directors and
in such amounts as it shall determine. Participants receiving Restricted Stock Unit Awards are not required to pay the Company therefor
(except for applicable tax withholding) other than the rendering of services. The Committee is expressly authorized to grant Restricted
Stock Units that are deferred compensation covered by Code Section 409A, as well as Restricted Stock Units that are not deferred
compensation covered by Code Section 409A.

 

8.2            Restricted
Stock Unit Agreement. Each Restricted Stock Unit Award shall be evidenced by an Agreement that shall specify the Period of Restriction,
the number of Restricted Stock Units granted, and if applicable, any Performance Period and Performance Goal, and such other provisions
as the Committee shall determine.

 

Unless otherwise provided in the Agreement, a Participant
holding Restricted Stock Units shall have no rights to dividend equivalents with respect to Restricted Stock Units. The Committee may
provide in the Agreement for dividend equivalents with respect to Restricted Stock Units, provided, however, that, with respect to Restricted
Stock Units subject to one or more Performance Goal(s), any dividend equivalents with respect to such Restricted Stock Units may be accumulated
but not paid to the Participant unless and until the applicable Performance Goal(s) have been met (subject to any delay in payment
required by Code Section 409A). A Participant holding Restricted Stock Units shall have no right to vote the Shares represented by
such Restricted Stock Units unless and until the underlying Shares are issued to the Participant. Unless otherwise provided in the Agreement,
any such dividend equivalents shall be subject to the same restrictions, vesting and payment as the Restricted Stock Units to which they
are attributable.

 

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8.3            Payment
after Lapse of Restrictions. Subject to the provisions of the Agreement, upon the lapse of restrictions with respect to a Restricted
Stock Unit, the Participant is entitled to receive, without any payment to the Company (other than required tax withholding), an amount
(the “RSU Value”) equal to the product of multiplying (a) the number of Shares equal to the number of Restricted Stock
Units with respect to which the restrictions lapse by (b) the Fair Market Value per Share on the date the restrictions lapse.

 

The Agreement may provide for payment of the RSU
Value at the time of the lapse of restrictions or, in accordance with Code Section 409A, if applicable, on an elective or non-elective
basis, for payment of the RSU Value at a later date, adjusted (if so provided in the Agreement) from the date of the lapse of restrictions
based on an interest, dividend equivalent, earnings, or other basis (including deemed investment of the RSU Value in Shares) set out in
the Agreement (the “adjusted RSU Value”).

 

Payment of the RSU Value or adjusted RSU Value
to the Participant shall be made in Shares, in cash or a combination thereof as determined by the Committee, either at the time of the
Award or thereafter, and as provided in the Agreement. To the extent payment of the RSU Value or adjusted RSU Value to the Participant
is made in cash, such payment shall be based on the Fair Market Value on the date the restrictions on the Award lapse in the case of an
immediate payment, or on the Fair Market Value on the date of settlement in the case of an elective or non-elective delayed payment. To
the extent payment of the RSU Value or adjusted RSU Value to the Participant is made in Shares, such Shares shall be valued at the Fair
Market Value on the date the restrictions therefor lapse in the case of an immediate payment or at the Fair Market Value on the date of
settlement in the case of an elective or non-elective delayed payment. The Committee may specify in a Restricted Stock Unit Agreement
that the Shares which are delivered upon payment of the RSU Value or adjusted RSU Value may be Restricted Stock pursuant to Article VII
and subject to such further restrictions and vesting as provided in the Restricted Stock Unit Agreement.

 

8.4            Nontransferability
of Restricted Stock Units. No Restricted Stock Unit granted under the Plan, and no right to receive payment in connection therewith,
may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than upon the death of the Participant in accordance
with Section 17.11. Further, all Restricted Stock Units, and rights in connection therewith, granted to a Participant under the Plan
shall be exercisable during his lifetime only by such Participant or his guardian or legal representative.

 

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ARTICLE IX

Stock Awards

 

Subject to the terms and provisions of the Plan,
the Committee, at any time and from time to time, may grant unrestricted Stock Awards under the Plan to such Key Employees and Non-Employee
Directors and in such amounts as it shall determine. Participants receiving Stock Awards are not required to pay the Company therefor
(except for applicable tax withholding) other than the rendering of services. Unless otherwise provided in the applicable Agreement, Stock
Awards shall be fully vested and freely transferable as of the Award Date, subject to restrictions under applicable Federal or state securities
laws.

 

ARTICLE X

Performance Share Units

 

10.1            Grant
of Performance Share Units. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may
grant Performance Share Units under the Plan to such Key Employees and Non-Employee Directors and in such amounts as it shall determine.
Participants receiving such Awards are not required to pay the Company therefor (except for applicable tax withholding) other than the
rendering of services. The Committee is expressly authorized to grant Performance Share Units that are deferred compensation covered by
Code Section 409A, as well as Performance Share Units that are not deferred compensation covered by Code Section 409A.

 

10.2            Performance
Share Unit Agreement.  Each Performance Share Unit is intended to be a Performance-Based Compensation Award, and the terms
and conditions of each such Award, including the number of Performance Share Units granted, the Performance Goal(s) and Performance
Period, shall be set forth in an Agreement or in a subplan of the Plan that is incorporated by reference into an Agreement. The Committee
shall set the Performance Goal(s) in its discretion for each Participant who is granted a Performance Share Unit.

 

The Committee may provide in the Agreement for
payment of dividend equivalents with respect to each Performance Share Unit, provided, however, that any dividend equivalents to be paid
with respect to Performance Share Units may be accumulated but not paid to the Participant unless and until the applicable Performance
Goal(s) have been met (subject to any delay in payment required by Code Section 409A). A Participant holding Performance Share
Units shall have no right to vote the Shares represented by such Performance Share Units unless and until the underlying Shares are issued
to the Participant.

 

10.3            Settlement
of Performance Share Units. After a Performance Period has ended, the holder of a Performance Share Unit shall be entitled to receive
the value thereof based on the degree to which the Performance Goals and other conditions established by the Committee and set forth in
the Agreement (or in a subplan of the Plan that is incorporated by reference into an Agreement) have been satisfied. Payment of the amount
to which a Participant shall be entitled upon the settlement of a Performance Share Unit shall be made in cash, Stock or a combination
thereof as determined by the Committee.

 

10.4            Nontransferability
of Performance Share Units. No Performance Share Unit granted under the Plan, and no right to receive payment in connection
therewith, may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than upon the death of the Participant
in accordance with Section 17.11. All rights with respect to Performance Share Units granted to a Participant under the Plan shall
be exercisable during his lifetime only by such Participant or his guardian or legal representative.

 

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ARTICLE XI

Performance Cash Awards

 

A Performance Cash Award may be granted subject
to the attainment during a Performance Period of one or more Performance Goals. Subject to the terms and conditions of the Plan, Performance
Cash Awards may be granted to Key Employees and Non-Employee Directors at any time and from time to time as shall be determined by the
Committee. The terms and conditions of any Performance Cash Award, including the Performance Goal(s) and Performance Period, shall
be determined by the Committee in its discretion and shall be set forth in an Agreement or in a subplan of the Plan that is incorporated
by reference into an Agreement. The Committee is expressly authorized to grant Performance Cash Awards that are deferred compensation
covered by Code Section 409A, as well as Performance Cash Awards that are not deferred compensation covered by Code Section 409A.

 

ARTICLE XII

Termination of Employment or Service

 

12.1            Termination
Due to Retirement. Unless otherwise provided in the Agreement, in the event that a Participant terminates his employment or service
with the Company or one of its subsidiaries because of normal retirement (as defined in the rules of the Company in effect at the
time), then, provided no Cause exists to terminate such Participant’s employment or service and provided either (i) upon such
normal retirement the Participant will be subject to a non-competition covenant pursuant to an existing agreement with the Company or
a subsidiary or (ii) the Participant executes and delivers to the Company, no later than the date of such normal retirement, a non-competition
agreement in a form acceptable to the Company, all Options that are not already vested or exercisable shall be automatically vested and
exercisable, any remaining Period of Restriction applicable to Restricted Stock Shares or Restricted Stock Units shall automatically terminate,
and the achievement or satisfaction of any Performance Goals applicable to unvested Awards during any Performance Period shall be adjusted
through the date of termination as determined by the Committee and the Committee shall provide for such vesting, if any, as it deems appropriate.
Unless otherwise provided in the Agreement, in the event that a Participant terminates his employment or service with the Company because
of early retirement (as defined in the rules of the Company in effect at the time), then, provided no Cause exists to terminate such
Participant’s employment or service, the Committee, in its sole discretion, may waive the restrictions remaining on any or all unvested
Awards and add such new restrictions to such Awards as it deems appropriate.

 

12.2            Termination
Due to Death or Disability. Unless otherwise provided in the Agreement, in the event a Participant’s employment or service is
terminated because of death or Disability, all Options that are not already vested or exercisable shall be automatically vested and exercisable,
any remaining Period of Restriction applicable to Restricted Stock or Restricted Stock Units shall automatically terminate, and the achievement
or satisfaction of any Performance Goals applicable to unvested Awards during any Performance Period shall be adjusted through the date
of termination as determined by the Committee and the Committee shall provide for such vesting, if any, as it deems appropriate.

 

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12.3            Termination following Change in Control.
Unless otherwise provided in the Agreement, upon an involuntary separation from employment or service of a Participant (excluding a termination
for Cause but including a voluntary resignation for good reason under an applicable plan or agreement) occurring in connection with or
during the period of two (2) years after a Change in Control, the provisions of Section 14.1 shall apply.

 

12.4            Involuntary
Termination or Termination for Good Reason. Unless otherwise provided in the Agreement, upon an involuntary separation from employment
or service of a Participant (excluding a termination for Cause but including a voluntary resignation for good reason under an applicable
plan or agreement) not occurring in connection with or during the period of two (2) years after a Change in Control, the Committee
may, in its sole discretion, waive the automatic forfeiture of any or all of the unvested portion of each Award held by the Participant
and provide for such vesting as it deems appropriate.

 

12.5            Termination
for Cause. Unless otherwise provided in the Agreement, in the event a Participant’s employment or service is terminated for
Cause, the unvested portion and the vested portion not yet paid or exercised of each Award held by the Participant shall be automatically
forfeited to the Company and no further exercise of an Option shall be allowed.

 

12.6            Termination
for Other Reasons. Unless otherwise provided in the Agreement, upon a voluntary or involuntary separation from employment or service
of a Participant where none of Sections 12.1, 12.2, 12.3, 12.4 or 12.5 applies, the unvested portion of each Award held by the Participant
shall be automatically forfeited to the Company.

 

Article XIII

Change in Capital Structure

 

13.1            Effect
of Change in Capital Structure. In the event of a stock dividend, stock split, reverse stock split or combination of shares, spin-off,
recapitalization or merger in which the Company is the surviving corporation, consolidation, reorganization, reclassification, exchange
of shares or other similar change in the Company’s capital stock (including, but not limited to, the creation or issuance to stockholders
generally of rights, options or warrants for the purchase of common stock or preferred stock of the Company) in which the number or class
of Shares is changed, the number and kind of Shares or securities of the Company to be issued under the Plan (under outstanding Awards
and Awards to be granted in the future), the Option Price of Options, the annual limits on and the aggregate number and kind of Shares
for which Awards thereafter may be made, and other relevant provisions shall be proportionately, equitably and appropriately adjusted
by the Committee, whose determination shall be binding on all persons. If the adjustment would produce fractional shares with respect
to any Award, the Committee may adjust appropriately the number of shares covered by the Award so as to eliminate the fractional shares.
Where an Award being adjusted is an ISO or is subject to or falls under an exemption from Code Section 409A, the adjustment shall
also be effected so as to comply with Code Section 424(a) and not to constitute a modification within the meaning of Code Section 424(h) or
Code Section 409A, as applicable.

 

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13.2            Authority.
Notwithstanding any provision of the Plan to the contrary, the Committee may take the foregoing actions without the consent of any Participant,
and the Committee’s determination shall be conclusive and binding on all persons for all purposes.

 

13.3            Manner
of Adjustment. Adjustments made by the Committee pursuant to this Article XIII to outstanding Awards shall be made as appropriate
to maintain favorable tax and/or accounting treatment.

 

ARTICLE XIV

Change in Control

 

14.1          Effect of Change in Control of Company.
In the event of a Change in Control of the Company, the Committee, as constituted before such Change in Control, in its sole discretion
and without the consent of any Participant, may take such actions with respect to any outstanding Award, either at the time the Award
is made or any time thereafter, as the Committee deems appropriate. These actions may include, but shall not be limited to, the following:

 

(a)            Provide
for the purchase, settlement or cancellation of any such Award by the Company for an amount of cash equal to the amount which could have
been obtained upon the exercise of such Award or realization of a Participant’s rights had such Award been currently exercisable
or payable;

 

(b)            Make
adjustments to Awards then outstanding as the Committee deems appropriate to reflect such Change in Control and to retain the economic
value of the Award; or

 

(c)            Cause
any such Award then outstanding to be assumed, or new rights substituted therefor, by the acquiring or surviving corporation in such Change
in Control.

 

(d)            Acceleration
Principles in the Event of a Change in Control. The Committee may provide in each applicable Agreement or any subplan governing an
Award for full or partial acceleration of the vesting, delivery and exercisability of, and the lapse of time-based and/or performance-based
vesting restrictions with respect to, an Award, and for the replacement of a Stock-settled Award with a cash-settled Award, in connection
with a Change in Control. Unless otherwise provided in the applicable Agreement or subplan, if an Award is assumed by the surviving corporation
or otherwise equitably converted or substituted in connection with a Change in Control, the vesting, delivery and exercisability of, or
the lapse of restrictions on, any Award shall not be accelerated in connection with the Change in Control unless, with respect to a Participant
who is an employee, the Participant’s employment with the Company or a subsidiary is terminated without Cause or the Participant
resigns for good reason under an applicable plan or agreement in connection with or within two (2) years after the effective date
of the Change in Control, or, with respect to a Participant who is a Non-Employee Director, the Participant’s service with the Company
or a subsidiary as a Non-Employee Director terminates in connection with or within two (2) years after the effective date of the
Change in Control. With regard to each assumed Award, a Participant who is an employee shall not be considered to have resigned for good
reason unless either (a) the applicable Agreement includes such provision or (b) the Participant is party to an employment,
severance or similar agreement with the Company or any subsidiary that includes provisions in which the Participant is permitted to resign
for good reason. Any assumed Awards shall thereafter continue or lapse in accordance with the other provisions of the Plan and the applicable
Agreement. To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Code Section 422(d),
the excess Options shall be deemed to be Nonqualified Stock Options.

 

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ARTICLE XV

Amendment, Modification, and Substitution of
Awards

 

15.1.            Amendment, Modification and Substitution.
Subject to the terms and provisions and within the limitations of the Plan, the Committee may amend or modify the terms of any outstanding
Award or accelerate the vesting thereof. In addition, the Committee may cancel or accept the surrender of outstanding Awards (to the extent
not yet exercised or settled) granted under the Plan or outstanding awards granted under any other equity compensation plan of the Company
and authorize the granting of new Awards pursuant to the Plan in substitution therefor so long as the new or substituted awards do not
specify a lower exercise price than the cancelled or surrendered Awards or awards, and otherwise the new Awards may be of a different
type than the cancelled or surrendered Awards or awards, may specify a longer term than the cancelled or surrendered Awards or awards,
may provide for more rapid vesting and exercisability than the cancelled or surrendered Awards or awards, and may contain any other provisions
that are authorized by the Plan. The Committee shall continue to have the authority to amend or modify the terms of any outstanding Award
after May 3, 2031, provided that no amendment or modification will extend the original term of the Award beyond that set forth in
the applicable Award Agreement. Notwithstanding the foregoing, however, but subject to Article XIII, Article XIV and Article XVIII,
no amendment or modification of an Award, shall, without the consent of the Participant, adversely affect the rights or obligations of
the Participant. Notwithstanding any provision of the Plan to the contrary, the Committee shall not amend, modify, or substitute an Award
in a manner that violates Code Section 409A, or causes an Award that previously qualified for an exemption from Section 409A
to become subject to Code Section 409A, and the Committee shall not amend, modify, or substitute an Award that satisfies the requirements
of Rule 16b-3 in a manner that causes any exemption pursuant to Rule 16b-3 to become no longer available.

 

15.2           Option Repricing. Notwithstanding any
provision of the Plan to the contrary, neither the Committee nor the Board shall have the right or authority, without obtaining shareholder
approval, to amend or modify the Option Price of any outstanding Option, or to cancel an outstanding Option, at a time when the Option
Price is greater than the Fair Market Value of a Share in exchange for cash, another Award, or other securities, except in connection
with a corporate transaction involving the Company in accordance with Article XIII or Article XIV.

 

ARTICLE XVI

Termination, Amendment and Modification of the
Plan

 

16.1            Termination,
Amendment and Modification. At any time and from time to time, the Board may terminate, amend, or modify the Plan. Such amendment
or modification may be without shareholder approval except to the extent that such approval is required by the Code, pursuant to the rules under
Section 16 of the Exchange Act, by any national securities exchange or system on which the Stock is then listed or reported, by any
regulatory body having jurisdiction with respect thereto or under any other applicable laws, rules or regulations.

 

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16.2            Awards
Previously Granted. No termination, amendment or modification of the Plan other than pursuant to Article XIII, Article XIV
or Section 17.7 shall in any manner adversely affect any Award theretofore granted under the Plan, without the written consent of
the Participant.

 

ARTICLE XVII

General

 

17.1            Applicable
Withholding Taxes. Each Participant shall agree, as a condition of receiving an Award, to pay to the Company, or make arrangements
satisfactory to the Company regarding the payment of, all applicable federal, state and local taxes (including the Participant’s
FICA obligation) required by law to be withheld with respect to any grant, exercise, or payment made under or as a result of the Plan.
The Company shall withhold only the minimum amount necessary to satisfy applicable statutory withholding requirements, provided that,
subject to any limitation under Code Section 409A, the Committee may permit a Participant to elect to have an additional amount
(up to the maximum allowed by law) withheld. Until the applicable withholding taxes have been paid or arrangements satisfactory to the
Company have been made, no stock certificates (or, in the case of Restricted Stock, no stock certificates free of a restrictive legend)
shall be issued to the Participant and no issuance in book-entry or electronic form (or, in the case of Restricted Stock, no issuance
in book-entry or electronic form free of a restrictive legend or notation) shall be made for the Participant. As an alternative to making
a cash payment to the Company to satisfy applicable withholding tax obligations, the Committee may permit Participants to elect or the
Committee may require Participants to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares
of Stock having a Fair Market Value equal to the amount required to be withheld, or by delivering to the Company Shares of Stock that
the Participant has previously acquired and owned having a Fair Market Value equal to the amount required to be withheld. The value of
any Shares so withheld or delivered shall be based on the Fair Market Value of the Shares on the date that the amount of tax to be withheld
is to be determined. All elections by Participants shall be irrevocable and be made in writing and in such manner as determined by the
Committee (or its delegee) in advance of the day that the transaction becomes taxable.

 

17.2            Requirements
of Law. The granting of Awards and the issuance of Shares of Stock under this Plan shall be subject to all applicable laws, rules,
and regulations, and to such approvals by any governmental agencies or self regulatory organizations as may be required.

 

17.3            Effect
of Plan. The establishment of the Plan shall not confer upon any Key Employee or Non-Employee Director any legal or equitable right
against the Company, a Subsidiary or the Committee, except as expressly provided in the Plan. The Plan does not constitute an inducement
or consideration for the employment or service of any Key Employee or Non-Employee Director, nor is it a contract between the Company
or any of its Subsidiaries and any Key Employee or Non-Employee Director. Participation in the Plan shall not give any Key Employee or
Non-Employee Director any right to be retained in the employment or service of the Company or any of its Subsidiaries. No Key Employee
or Non-Employee Director shall have rights as a shareholder of the Company prior to the date Shares are issued to him pursuant to the
Plan.

 

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17.4            Creditors.
The interests of any Participant under the Plan or any Agreement are not subject to the claims of creditors and may not, in any way, be
assigned, alienated or encumbered.

 

17.5            Successors.
All obligations of the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to the Company,
whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation or otherwise, of all or
substantially all of the business and/or assets of the Company.

 

17.6            Securities
Law Restrictions.  The Committee may require each Participant purchasing or acquiring Shares pursuant to an Option
or other Award to represent to and agree with the Company in writing that such Participant is acquiring the Shares for investment and
not with a view to the distribution thereof.  All Shares delivered under the Plan shall be subject to such stock-transfer orders
and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and
Exchange Commission, any stock exchange upon which the Stock is then listed, and any applicable federal or state securities laws, and
the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions or otherwise
denote the Shares as being subject to such restrictions, if issued in book-entry or electronic form. No Shares shall be issued hereunder
unless the Company shall have determined that such issuance is in compliance with, or pursuant to an exemption from, all applicable federal
and state securities laws.

 

17.7            Governing
Law. The Plan, and all Agreements hereunder, shall be governed, construed and administered in accordance with and governed by the
laws of the Commonwealth of Virginia and the intention of the Company is that ISOs granted under the Plan qualify as such under Code Section 422.
The Plan and Awards are subject to all present and future applicable provisions of the Code. If any provision of the Plan or an Award
conflicts with any such Code provision, the Committee shall cause the Plan to be amended, and shall modify the Award, so as to comply,
or if for any reason amendments cannot be made, that provision of the Plan or the Award shall be void and of no effect.

 

17.8            Severability.
In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

17.9            Unfunded
Status of Plan. The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With respect
to any payments as to which a Participant has a fixed and vested interest but which are not yet made to a Participant by the Company,
nothing contained herein shall give any such Participant any rights that are greater than those of a general unsecured creditor of the
Company.

 

    22

     

    

 

17.10            Share
Certificates and Book Entry. To the extent that the Plan provides for issuance of stock certificates to represent shares of Stock,
the issuance may be effected on a non-certificated basis to the extent permitted by applicable law and the applicable rules of any
stock exchange upon which the Stock is then listed. Notwithstanding any provision of the Plan to the contrary, in its discretion the Committee
may satisfy any obligation to deliver Shares represented by stock certificates by delivering Shares in book-entry or electronic form.
If the Company issues any Shares in book-entry or electronic form that are subject to terms, conditions and restrictions on transfer,
a notation shall be made in the records of the transfer agent with respect to any such Shares describing all applicable terms, conditions
and restrictions on transfer. In the case of Restricted Stock granted under the Plan, such notation shall be substantially in the form
of the legend contained in Section 7.5.

 

17.11            Beneficiary
Designations. A Participant may designate a Beneficiary to receive any Options that may be exercised after his death or to receive
any other Award that may be paid after his death, as provided for in the Agreement. Such designation and any change or revocation of such
designation shall be made in writing in the form and manner prescribed by the Committee (or its delegee). In the event that the designated
Beneficiary dies prior to the Participant, or in the event that no Beneficiary has been designated, any Awards that may be exercised or
paid following the Participant’s death shall be transferred or paid in accordance with the Participant’s will or the laws
of descent and distribution. If the Participant and his Beneficiary shall die in circumstances that cause the Committee (or its delegee),
in its discretion, to be uncertain which shall have been the first to die, the Participant shall be deemed to have survived the Beneficiary.

 

17.12            Electronic
Transmissions and Records. Subject to limitations under applicable law, the Committee (and its delegee) is authorized in its discretion
to issue Awards and/or to deliver and accept notices, elections, consents, designations and/or other forms or communications to or from
Participants by electronic or similar means, including, without limitation, execution and delivery through an accredited secure signature
service or other electronic transmission or signature, transmissions through e-mail or specialized software, recorded messages on electronic
telephone systems, and other permissible methods, on such basis and for such purposes as it determines from time to time, and all such
communications will be deemed to be “written” for purposes of the Plan.

 

17.13            Clawback.
All Awards (whether vested or unvested) shall be subject to the terms of the Company’s recoupment, clawback or similar policy as
such may be in effect from time to time, as well as any similar provisions of applicable law or regulation or any applicable listing standard
of any stock exchange upon which the Stock is then listed, which could in certain circumstances require repayment or forfeiture of Awards
or any Shares or other cash or property received with respect to the Awards (including any value received from a disposition of the Shares
acquired upon payment of the Awards).

 

17.14            Banking
Regulatory Provision. All Awards shall be subject to any condition, limitation or prohibition under any financial institution regulatory
policy or rule to which the Company or any subsidiary thereof is subject.

 

    23

     

    

 

ARTICLE XVIII

Omnibus Code Section 409A Provision

 

18.1            Intent
of Awards. It is intended that Awards that are granted under the Plan shall be exempt from treatment as “deferred compensation”
subject to Code Section 409A unless otherwise determined by the Committee.  Towards that end, all Awards under the Plan are
intended to contain such terms as will qualify the Awards for an exemption from Code Section 409A unless otherwise determined by
the Committee.  The terms of the Plan and all Awards granted hereunder shall be construed consistent with the foregoing intent. 
To the extent required for an Award to comply with Code Section 409A or for an Option to be an exempt stock right under Section 409A,
a defined term in the Plan shall be applied and interpreted (and to the extent required, deemed narrowed) to comply with the requirements
under, or exemption from, Code Section 409A and applicable guidance thereunder. Notwithstanding any provision of the Plan to the
contrary, the Committee may amend any outstanding Award without the Participant’s consent if, as determined by the Committee, in
its discretion, such amendment is required either to (a) confirm exemption under Code Section 409A, (b) comply with Code
Section 409A or (c) prevent the Participant from being subject to any tax or penalty under Code Section 409A.  Notwithstanding
the foregoing, however, neither the Company nor any of its Affiliates nor the Committee shall be liable to the Participant or any other
person or entity if an Award that is subject to Code Section 409A or the Participant or any other person or entity is otherwise subject
to any additional tax, interest or penalty under Code Section 409A.  Each Participant is solely responsible for the payment
of any tax liability (including any taxes, penalties and interest that may arise under Code Section 409A) that may result from an
Award.

 

18.2            409A
Awards. The Committee may grant an Award under the Plan that is subject to Code Section 409A and is intended to comply with Code
Section 409A (a “409A Award”).  The terms of such 409A Award, including any authority by the Company and the rights
of the Participant with respect to such 409A Award, will be subject to such rules and limitations and shall be interpreted in a manner
as to comply with Code Section 409A.

 

18.3            Time
of Payment. The time and form of payment of a 409A Award shall be as set forth in the applicable Agreement.  A 409A Award may
only be paid in connection with a separation from service, a fixed time, death, Disability, a Change in Control or an unforeseeable emergency
within the meaning of Code Section 409A.  The time of distribution of the 409A Award must be fixed by reference to the specified
payment event.  The six-month delay for payments triggered upon a separation from service to specified employees shall apply to the
extent required under Code Section 409A. For purposes of Code Section 409A, each installment payment will be treated as the
entitlement to a single payment.

 

18.4            Acceleration
or Deferral. The Company shall have no authority to accelerate or delay or change the form of any distributions relating to 409A Awards
except as permitted under Code Section 409A.

 

    24

     

    

 

18.5            Distribution
Requirements. Any distribution of a 409A Award triggered by a Participant’s termination of employment shall be made only at
the time that the Participant has had a separation from service within the meaning of Code Section 409A.  A separation from
service shall occur where it is reasonably anticipated that no further services will be performed after that date or that the level of
bona fide services the Participant will perform after that date (whether as an employee or independent contractor of the Company or a
Subsidiary) will permanently decrease to less than twenty percent (20%) of the average level of bona fide services performed over the
immediately preceding thirty-six (36) month period.  Continued services solely as a director of the Company or a Subsidiary shall
not prevent a separation from service from occurring by an employee as permitted by Code Section 409A.

 

18.6            Scope
and Application of this Provision. For purposes of this Article XVIII, references to a term or event (including any authority
or right of the Company or a Participant) being “permitted” under Code Section 409A means that the term or event will
not cause the Participant to be deemed to be in constructive receipt of compensation relating to the 409A Award prior to the distribution
of cash, Shares or other property or to be liable for payment of interest or a tax penalty under Code Section 409A.

 

    25Document

SQUARE, INC.
2015 EQUITY INCENTIVE PLAN

    						
	1.    Purposes of the Plan.
	2
	2.    Shares Subject to the Plan.
	2
	3.    Administration of the Plan.
	3
	4.    Stock Options.
	5
	5.    Restricted Stock.
	6
	6.    Restricted Stock Units.
	7
	7.    Stock Appreciation Rights.
	7
	8.    Performance Stock Units and Performance Shares.
	8
	9.    Performance Awards.
	8
	10.    Outside Director Limitations.
	9
	11.    Leaves of Absence/Transfer Between Locations/Change of Status.
	9
	12.    Transferability of Awards.
	10
	13.    Adjustments; Dissolution or Liquidation.
	10
	14.    Change in Control.
	10
	15.    Tax Matters.
	12
	16.    Other Terms.
	12
	17.    Term of Plan.
	13
	18.    Amendment and Termination of the Plan.
	13
	19.    Conditions Upon Issuance of Shares.
	13
	20.    Stockholder Approval.
	14
	21.    Definitions.
	14

1.Purposes of the Plan.
The purposes of this Plan are to attract and retain personnel for positions with the Company, to provide additional incentive to Employees, Directors, and Consultants (collectively, “Service Providers”), and to promote the success of the Company’s business.
The Plan permits the grant of Incentive Stock Options to Employees and the grant of Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Stock Units, and Performance Awards to any Service Provider.
2.        Shares Subject to the Plan. 
(a)    Allocation of Shares to Plan. The maximum aggregate number of Shares that may be issued under the Plan is: 

(i)    30,000,000 Shares, plus
(ii)    a number of Shares equal to the number of shares of Class B common stock of the Company subject to outstanding awards granted under the Square, Inc. 2009 Stock Plan that, after the Registration Date, expire or otherwise terminate without having been exercised in full and a number of Shares equal to the number of Shares of Class B common Stock of the Company issued under awards granted under the Existing Plan that, after the Registration Date, are forfeited to the Company, tendered to or withheld by the Company for payment of an exercise price or for tax withholding, or repurchased by the Company due to failure to vest, with the maximum number of Shares that may be added to the Plan under this Section 2(a)(i) being equal to 106,234,076 Shares, plus
(iii)    any additional Shares that become available for issuance under the Plan under Sections 2(b) and 2(c). 
The Shares may be authorized but unissued Common Stock or Common Stock issued and then reacquired by the Company.
(b)    Automatic Share Reserve Increase. The number of Shares available for issuance under the Plan will be increased on the first day of each Fiscal Year beginning with the 2016 Fiscal Year, in an amount equal to the least of
(i)    40,000,000 Shares,
(ii)    5 % of the total number of shares of all classes of the Company’s common stock outstanding on the last day of the immediately preceding Fiscal Year, and
(iii)    a lower number of Shares determined by the Administrator.
(c)    Lapsed Awards. 
(i)    Options and Stock Appreciation Rights. If an Option or Stock Appreciation Right expires or becomes unexercisable without having been exercised in full or is surrendered under an Exchange Program, the unissued Shares subject to the Option or Stock Appreciation Right  will become available for future issuance under the Plan. 
(ii)    Stock Appreciation Rights. Only Shares actually issued pursuant to a Stock Appreciation Right (i.e., the net Shares issued) will cease to be available under the Plan; all remaining Shares originally subject to the Stock Appreciation Right will remain available for future issuance under the Plan. 
(iii)    Full-Value Awards. Shares issued pursuant to Awards of Restricted Stock, Restricted Stock Units, Performance Shares, Performance Stock Units or stock-settled Performance Awards that are reacquired by the Company due to failure to vest or are forfeited to the Company will become available for future issuance under the Plan. 
(iv)    Withheld Shares. Shares used to pay the Exercise Price of an Award or to satisfy tax withholding obligations related to an Award will become available for future issuance under the Plan. 
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(v)    Cash-Settled Awards. If any portion of an Award under the Plan is paid to a Participant in cash rather than Shares, that cash payment will not reduce the number of Shares available for issuance under the Plan. 
(d)    Incentive Stock Options. The maximum number of Shares that may be issued upon the exercise of Incentive Stock Options will equal 200% of the aggregate Share number stated in Section 2(a) plus, to the extent allowable under Code Section 422, any Shares that become available for issuance under the Plan under Sections 2(b) and 2(c). 
(e)    Adjustment. The numbers provided in Sections 2(a), 2(b), and 2(d) will be adjusted as a result of changes in capitalization referred to in Section 13.
(f)    Substitute Awards. If the Committee grants Awards in substitution for equity compensation awards outstanding under a plan maintained by an entity acquired by or consolidated with the Company, the grant of those substitute Awards will not decrease the number of Shares available for issuance under the Plan.
3.        Administration of the Plan. 
(a)    Procedure.
(i)    General. The Plan will be administered by the Board or a Committee (the “Administrator”). Different Administrators may administer the Plan with respect to different groups of Service Providers. The Board may retain the authority to concurrently administer the Plan with a Committee and may revoke the delegation of some or all authority previously delegated. 
(ii)    Further Delegation. To the extent permitted by Applicable Laws, the Board or a Committee may delegate to 1 or more Officers the authority to grant Awards to Employees of the Company or any of its Subsidiaries who are not Officers, provided that the delegation must specify any limitations on the authority required by Applicable Laws, including the total number of Shares that may be subject to the Awards granted by such Officer(s). Such delegation may be revoked at any time by the Board or Committee.  Any such Awards will be granted on the form of Award Agreement most recently approved for use by the Board or a Committee made up solely of Directors, unless the resolutions delegating the authority permit the Officer(s) to use a different form of Award Agreement approved by the Board or a Committee made up solely of Directors. 
(iii)    Section 162(m). Unless an Award is granted and administered solely by a Committee of 2 or more “outside directors” within the meaning of Code Section 162(m), it will not qualify as “performance-based compensation” within the meaning of Code Section 162(m).
(b)    Powers of the Administrator. Subject to the terms of the Plan, any limitations on delegations specified by the Board, and any requirements imposed by Applicable Laws, the Administrator will have the authority, in its sole discretion, to make any determinations and perform any actions deemed necessary or advisable to administer the Plan including:
(i)    to determine the Fair Market Value;
(ii)    to approve forms of Award Agreements for use under the Plan (provided that all forms of Award Agreement must be approved by the Board or the Committee of Directors acting as the Administrator);
(iii)    to select the Service Providers to whom Awards may be granted and grant Awards to such Service Providers;
(iv)    to determine the number of Shares to be covered by each Award granted;
(v)    to determine the terms and conditions, consistent with the Plan, of any Award granted. Such terms and conditions may include, but are not limited to, the Exercise Price, the time(s) when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the Shares relating to an Award;
(vi)    to institute and determine the terms and conditions of an Exchange Program;
(vii)    to interpret the Plan and make any decisions necessary to administer the Plan; 
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(viii)    to establish, amend and rescind rules relating to the Plan, including rules relating to sub-plans established to satisfy laws of jurisdictions other than the United States or to qualify Awards for favorable tax treatment under laws of jurisdictions other than the United States;
(ix)    to interpret, modify or amend each Award (subject to Section 18), including extending the Expiration Date and the post-termination exercisability period of such modified or amended Awards;
(x)    to allow Participants to satisfy tax withholding obligations in any manner permitted by Section 15;
(xi)    to delegate ministerial duties to any of the Company's employees;
(xii)    to authorize any person to take any steps and execute, on behalf of the Company, any documents required for an Award previously granted by the Administrator to be effective; and
(xiii)    to allow Participants to defer the receipt of the payment of cash or the delivery of Shares otherwise due to any such Participants under an Award.
(c)    Termination of Status. 
(i)    Unless a Participant is on a leave of absence approved by the Company as set forth in Section 11, the Participant’s status as a Service Provider will end at midnight at the end of the last day the Participant actively provides services for a member of the Company Group (the “Termination of Status Date”). The Administrator has the sole discretion to determine the date on which a Participant stops actively providing services and whether a Participant may still be considered to be providing services while on a leave of absence and the Administrator may delegate this decision, other than with respect to Officers, to the Company’s senior human resources officer.
(ii)    This termination of status as a Service Provider will occur regardless of the reason for such termination even if the termination is later found to be invalid, in breach of employment laws in the jurisdiction where Participant is providing services, or in violation of the terms of Participant’s employment or service agreement, if any such agreement exists.
(iii)    Unless otherwise expressly provided in an Award Agreement or otherwise determined by the Administrator, a Participant’s right to vest in any Award under the Plan will cease as of the Termination of Status Date and will not be extended by any notice period, whether arising under contract, statute or common law, including any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where the Participant is providing services.
(d)    Grant Date. The grant date of an Award (“Grant Date”) will be the date that the Administrator makes the determination granting such Award or may be a later date if such later date is designated by the Administrator on the date of the determination or under an automatic grant policy. Notice of the determination will be provided to each Participant within a reasonable time after the Grant Date.
(e)    Waiver. The Administrator may waive any terms, conditions or restrictions.
(f)    Fractional Shares. Except as otherwise provided by the Administrator, any fractional Shares that result from the adjustment of Awards will be canceled.  Any fractional Shares that result from vesting percentages will be accumulated and vested on the date that an accumulated full Share is vested.
(g)    Electronic Delivery. The Company may deliver by e-mail or other electronic means (including posting on a website maintained by the Company or by a third party under contract with the Company or another member of the Company Group) all documents relating to the Plan or any Award and all other documents that the Company is required to deliver to its security holders (including prospectuses, annual reports and proxy statements).
(h)    Choice of Law; Choice of Forum. The Plan, all Awards and all determinations made and actions taken under the Plan, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the State of Delaware without giving effect to principles of conflicts of law. For purposes of litigating any dispute that arises under this Plan, a Participant’s acceptance of an Award is his or her consent to the jurisdiction of the State of Delaware, 
-4-    

and agreement that any such litigation will be conducted in Delaware Court of Chancery, or the federal courts for the United States for the District of Delaware, and no other courts, regardless of where a Participant’s services are performed.
(i)    Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations will be final and binding on all Participants and any other holders of Awards.
4.    Stock Options.
(a)    Stock Option Award Agreement. Each Option will be evidenced by an Award Agreement that will specify the number of Shares subject to the Option, its per share exercise price (“Exercise Price”), its Expiration Date, and such other terms and conditions as the Administrator determines. Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. An Option not designated as an Incentive Stock Option is a Nonstatutory Stock Option.
(b)    Exercise Price. The Exercise Price for the Shares to be issued upon exercise of an Option will be determined by the Administrator.
(c)    Form of Consideration. The Administrator will determine the acceptable forms of consideration for exercising an Option and those forms of consideration will be described in the Award Agreement. The consideration may consist of any combination of the following, to the extent permitted by Applicable Laws:
(i)    cash; 
(ii)    check or wire transfer;
(iii)    promissory note;
(iv)    other Shares that have a fair market value on the date of surrender equal to the aggregate Exercise Price of the Shares as to which such Option will be exercised. To the extent not prohibited by the Administrator, this shall include the ability to tender Shares to exercise the Option and then use the Shares received on exercise to exercise the Option with respect to additional Shares;
(v)    consideration received by the Company under a cashless exercise arrangement (whether through a broker or otherwise) implemented by the Company for the exercise of Options that has been approved by the Board or a Committee of Directors;
(vi)    consideration received by the Company under a net exercise program under which Shares are withheld from otherwise deliverable Shares that has been approved by the Board or a Committee of Directors; and 
(vii)    any other consideration or method of payment to issue Shares (provided that other forms of considerations may only be approved by the Board or a Committee of Directors).
(d)    Incentive Stock Option Limitations. 
(i)    The Exercise Price of an Incentive Stock Option may not be less than 100% of the Fair Market Value on the Grant Date. 
(ii)    To the extent that the aggregate fair market value of the shares with respect to which incentive stock options under Code Section 422(b) are exercisable for the first time by a Participant during any calendar year (under all plans and agreements of the Company Group) exceeds $100,000, the incentive stock options whose value exceeds $100,000 will be treated as nonstatutory stock options. Incentive stock options will be considered in the order in which they were granted. For this purpose the fair market value of the shares subject to an option will be determined as of the grant date of each option.
(iii)    The Expiration Date of an Incentive Stock Option will be the day prior to the 10th anniversary of the Grant Date or any earlier date provided in the Award Agreement, subject to clause (iv) below.
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(iv)    The following rules apply to Incentive Stock Options granted to Participants who own stock representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company:
(1)    the Expiration Date of the Incentive Stock Option may not be after the day prior to the 5th anniversary of the Grant Date; and
(2)    the Exercise Price may not be less than 110% of the Fair Market Value on the Grant Date.
If an Option is designated in the Administrator action that granted it as an Incentive Stock Option but the terms of the Option do not comply with Sections 4(d)(iv)(1) and 4(d)(iv)(2), then the Option will not qualify as an Incentive Stock Option.  All Options granted under the Plan are Nonstatutory Stock Options unless specifically designated as Incentive Stock Options in the Award Agreement pursuant to which such Options are granted.
(e)    Exercise of Option. An Option is exercised when the Company receives: (i) a notice of exercise (in such form as the Administrator may specify from time to time) from the person entitled to exercise the Option and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable withholding taxes). Shares issued upon exercise of an Option will be issued in the name of the Participant. Until the Shares are issued (as evidenced by the 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 will exist with respect to the Shares subject to an Option, despite the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. An Option may not be exercised for a fraction of a Share. Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for purchase under the Option, by the number of Shares as to which the Option is exercised. 
(f)    Expiration of Options. Subject to Section 4(d), an Option’s Expiration Date will be set forth in the Award Agreement.  An Option may expire before its expiration date under Sections 14 or 16(b) or under the Award Agreement.
(g)    Tolling of Expiration. If exercising an Option prior to its expiration is not permitted because of Applicable Laws, other than the rules of any stock exchange or quotation system on which the Common Stock is listed or quoted, the Option will remain exercisable until 30 days after the first date on which exercise would no longer be prevented by such provisions.  If this would result in the Option remaining exercisable past its Expiration Date, then it will remain exercisable only until the end of the later of (x) the first day on which its exercise would not be prevented by Section 19(a) and (y) its Expiration Date.
5.    Restricted Stock.
(a)    Restricted Stock Award Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction (if any), the number of Shares granted, and such other terms and conditions as the Administrator determines. Unless the Administrator determines otherwise, Shares of Restricted Stock will be held in escrow until the end of the Period of Restriction applicable to such Shares. All grants of Restricted Stock and interpretative decisions about Restricted Stock may only be made by the Administrator.
(b)    Restrictions:
(i)    Except as provided in this Section 5 or the Award Agreement, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated until the end of the Period of Restriction applicable to such Shares.
(ii)    During the Period of Restriction, Service Providers holding Shares of Restricted Stock may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.
(iii)    During the Period of Restriction, Service Providers holding Shares of Restricted Stock will not be entitled to receive dividends and other distributions paid with respect to such Shares, unless the Administrator provides otherwise. If the Administrator provides that dividends and distributions will be received and any such dividends or distributions are paid in cash they will be subject to the same provisions regarding forfeitability as the Shares of 
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Restricted Stock with respect to which they were paid  and if such dividend or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid and, unless the Administrator determines otherwise, the Company will hold such Shares until the restrictions on the Shares of Restricted Stock with respect to which they were paid have lapsed.
(iv)    Except as otherwise provided in this Section 5 or an Award Agreement, Shares of Restricted Stock covered by each Restricted Stock Award made under the Plan will be released from escrow when practicable after the last day of the applicable Period of Restriction.
(v)    The Administrator may impose, prior to grant, or remove any restrictions on Shares of Restricted Stock.
6.    Restricted Stock Units.
(a)    Restricted Stock Unit Award Agreement. Each Award of Restricted Stock Units will be evidenced by an Award Agreement that will specify the terms, conditions, and restrictions related to the grant, including the number of Restricted Stock Units.
(b)    Vesting Criteria and Other Terms. The Administrator will set vesting criteria that, depending on the extent to which the criteria are met, will determine the number of Restricted Stock Units paid out to the Participant. The Administrator may set vesting criteria based upon the achievement of Company-wide, divisional, business unit, or individual goals (that may include continued employment or service) or any other basis determined by the Administrator in its sole discretion.
(c)    Earning Restricted Stock Units. Upon meeting the applicable vesting criteria, the Participant will have earned the Restricted Stock Units and will be paid as determined in Section 6(d). The Administrator may reduce or waive any criteria that must be met to earn the Restricted Stock Units. 
(d)    Form and Timing of Payment. Payment of earned Restricted Stock Units will be made when practicable after the date set forth in the Award Agreement and determined by the Administrator. The Administrator may settle earned Restricted Stock Units in cash, Shares, or a combination of both. 
7.    Stock Appreciation Rights. 
(a)    Stock Appreciation Right Award Agreement. Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify the Exercise Price (which may not be less than 100% of Fair Market Value on the Grant Date), its Expiration Date, the conditions of exercise, and such other terms and conditions as the Administrator determines.
(b)    Payment of Stock Appreciation Right Amount. When a Participant exercises a Stock Appreciation Right, he or she will be entitled to receive a payment from the Company equal to:
(i)    the difference between the Fair Market Value on the date of exercise and the Exercise Price multiplied by
(ii)    the number of Shares with respect to which the Stock Appreciation Right is exercised.
Payment upon Stock Appreciation Right exercise may be made in cash, in Shares of equivalent value, or any combination of cash and Shares, with the determination of form of payment made by the Administrator. Shares issued upon exercise of a Stock Appreciation Right will be issued in the name of the Participant. Until Shares are issued (as evidenced by the 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 will exist with respect to the Shares subject to a Stock Appreciation Right, despite the exercise of the Stock Appreciation Right. The Company will issue (or cause to be issued) such Shares promptly after the Stock Appreciation Right is exercised. A Stock Appreciation Right may not be exercised for a fraction of a Share. Exercising a Stock Appreciation Right in any manner will decrease (x) the number of Shares thereafter available under the Stock Appreciation Right by the number of Shares as to which the Stock Appreciation Right is exercised and (y) the number of Shares thereafter available under the Plan by the number of Shares issued upon such exercise.
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(c)    Expiration of Stock Appreciation Rights. A Stock Appreciation Right’s Expiration Date will be set forth in the Award Agreement.  A Stock Appreciation Right may expire before its expiration date under Sections 14 or 16(b) or under the Award Agreement
(d)    Tolling of Expiration. If exercising an Stock Appreciation Right prior to its expiration is not permitted because of Applicable Laws, other than the rules of any stock exchange or quotation system on which the Common Stock is listed or quoted, the Stock Appreciation Right will remain exercisable until 30 days after the first date on which exercise would no longer be prevented by such provisions.  If this would result in the Stock Appreciation Right remaining exercisable past its Expiration Date, then it will remain exercisable only until the end of the later of (x) the first day on which its exercise would not be prevented by Section 19(a) and (y) its Expiration Date.
8.    Performance Stock Units and Performance Shares. 
(a)    Award Agreement. Each Award of Performance Stock Units/Shares will be evidenced by an Award Agreement that will specify the time period during which the performance objectives or other vesting provisions will be measured (“Performance Period”) and the material terms of the Award. The Administrator may set performance objectives based upon the achievement of Company-wide, divisional, business unit or individual goals (including, but not limited to, continued employment or service) or any other basis determined by the Administrator.
(b)    Value of Performance Stock Units/Shares. Each Performance Stock Unit will have an initial value established by the Administrator on or before the Grant Date. Each Performance Share will have an initial value equal to the Fair Market Value on the Grant Date.
(c)    Performance Objectives and Other Terms. The Administrator will set performance objectives or other vesting provisions (that may include continued employment or service). These objectives or vesting provisions may determine the number or value of Performance Stock Units/Shares paid out. 
(d)    Earning of Performance Stock Units/Shares. After an applicable Performance Period has ended, the holder of Performance Stock Units/Shares will be entitled to receive a payout of the number of Performance Stock Units/Shares earned by the Participant over the Performance Period. The Administrator may reduce or waive any performance objectives or other vesting provisions for such Performance Stock Unit/Share.
(e)    Payment of Performance Stock Units/Shares. Payment of earned Performance Stock Units/Shares will be made when practicable after the end of the applicable Performance Period. Payment with respect to earned Performance Stock Units/Shares may be made in cash, in Shares of equivalent value, or any combination of cash and Shares, with the determination of form of payment made by the Administrator.
9.    Performance Awards. 
(a)    Award Agreement. Each Performance Award will be evidenced by an Award Agreement that will specify the Performance Period and the material terms of the Award. The Administrator may set performance objectives based upon the achievement of Company-wide, divisional, business unit or individual goals (including, but not limited to, continued employment or service) or any other basis determined by the Administrator.
(b)    Value of Performance Awards. Each Performance Award’s threshold, target, and maximum payout values will be established by the Administrator on or before the Grant Date.
(c)    Performance Objectives and Other Terms. The Administrator will set performance objectives or other vesting provisions (that may include continued employment or service). These objectives or vesting provisions will determine the value of the payout for the Performance Awards. 
(d)    Earning of Performance Awards. After an applicable Performance Period has ended, the holder of a Performance Award will be entitled to receive a payout for the Performance Award earned by the Participant over the Performance Period. The Administrator may reduce or waive any performance objectives or other vesting provisions for such Performance Award.
(e)    Payment of Performance Awards. Payment of earned Performance Awards will be made when practicable after the end of the applicable Performance Period. Payment with respect to earned Performance Awards will 
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be made in cash, in Shares of equivalent value, or any combination of cash and Shares, with the determination of form of payment made by the Administrator at the time of payment.
10.    Outside Director Limitations.  
No Outside Director may be granted, in any Fiscal Year, Awards with a grant date fair value (determined under U.S. generally accepted accounting principles) of more than $1,000,000, increased to $2,000,000 in connection with his or her initial service as an Outside Director.  Awards granted to an individual while he or she was an Employee, or while he or she was a Consultant but not an Outside Director, will not count for purpose of this limitation. 
11.    Leaves of Absence/Transfer Between Locations/Change of Status. 
(a)    General.  Unless otherwise provided by the Administrator, a Participant will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or other member of the Company Group employing such Employee or (ii) any transfer between locations of the Company or members of the Company Group.
(b)    Vesting.  Unless a leave policy approved by the Administrator provides otherwise or it is otherwise required by Applicable Law, vesting of Awards granted under the Plan will continue only for Participants on an approved leave of absence.
(c)    Incentive Stock Option Status.  If a Participant’s leave of absence approved by the Company or other member of the Company Group employing such Employee exceeds 3 months and reemployment upon expiration of such leave is not guaranteed by statute or contract, then 3 months following the 1st day of such leave the Participant will no longer be an employee for incentive stock option purposes. If reemployment upon expiration of such leave of absence is not guaranteed by statute or contract, then 6 months following the 1st day of such leave any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.
(d)    Protected Leaves.
(i)    Any leave of absence by a Participant will be subject to any Applicable Laws that apply to leaves of absence.
(ii)    For a Participant on a military leave, if required by Applicable Laws, vesting will continue for the longest period that vesting continues under any other statutory or Company-approved leave of absence. When a Participant returns from military leave (under conditions that would entitle him or her to such protection under the Uniformed Services Employment and Reemployment Rights Act), the Participant will be given vesting credit to the same extent as if the Participant had continued to provide services to the Company or other member of the Company Group, as applicable, through the military leave.
(e)    Changes in Status. If a Participant who is an Employee has a reduction in hours worked, the Administrator may unilaterally:
(i)    make a corresponding reduction in the number of Shares or cash amount subject to any portion of an Award that is scheduled to vest or become payable after the date of such extend leave or reduction in hours; and
(ii)    in lieu of or in combination with such a reduction, extend the vesting or payment schedule applicable to such Award. 
If any such reduction occurs, the Participant will have no right to any portion of the Award that is reduced.
(f)    Determinations. The effect of a Company-approved leave of absence, a transfer, or a Participant’s reduction in hours of employment or service on the vesting of an Award shall be determined, under policies reviewed by the Administrator, by the Company’s senior human resources officer or other person performing that function or, with respect to Directors or Officers by the Compensation Committee of the Board, and any such determination will be final.
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12.    Transferability of Awards. 
(a)    General Rule. Unless determined otherwise by the Administrator, or otherwise required by Applicable Laws, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, the Award will be limited by any additional terms and conditions imposed by the Administrator. Any unauthorized transfer of an Award will be void.
(b)    Domestic Relations Orders. If approved by the Administrator, an Award may be transferred under a domestic relations order, official marital settlement agreement or other divorce or separation instrument as permitted by Treasury Regulations Section 1.421-1(b)(2). An Incentive Stock Option may be converted into a Nonstatutory Stock Option as a result of such transfer.
(c)    Limited Transfers for the Benefit of Family Members. The Administrator may permit an Award or Share issued under this Plan to be assigned or transferred subject to the applicable limitations, set forth in the General Instructions to Form S-8 Registration Statement under the Securities Act, if applicable, and any other Applicable Laws. 
(d)    Permitted Transferees.  Any individual or entity to whom an Award is transferred will be subject to all of the terms and conditions applicable to the Participant who transferred the Award, including the terms and conditions in this Plan and the Award Agreement.  If an Award is unvested then the service of the Participant will continue to determine whether the Award will vest and any Expiration Date.
13.    Adjustments; Dissolution or Liquidation.
(a)    Adjustments. If any extraordinary dividend or other extraordinary distribution (whether in cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, issuance of warrants or other rights to acquire securities of the Company, other change in the corporate structure of the Company affecting the Shares, or any similar equity restructuring transaction, as that term is used in Statement of Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any of its successors) affecting the Shares occurs (including, without limitation, a Change in Control), the Administrator, to prevent diminution or enlargement of the benefits or potential benefits intended to be provided under the Plan, will adjust the number and class of shares that may be delivered under the Plan and/or the number, class, and price of shares covered by each outstanding Award, and the numerical Share limits in Section 2 in such a manner as it deems equitable. Notwithstanding the foregoing, the conversion of any convertible securities of the Company and ordinary course repurchases of shares or other securities of the Company will not be treated as an event that will require adjustment.
(b)    Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each Participant when practicable prior to the effective date of such proposed transaction. To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.
14.    Change in Control.
(a)    Administrator Discretion.  If a Change in Control or a merger of the Company with or into another corporation or other entity occurs, each outstanding Award will be treated as the Administrator determines, including, without limitation, that such Award be continued by the successor corporation or a Parent or Subsidiary of the successor corporation.
(b)    Identical Treatment Not Required.  The Administrator need not take the same action or actions with respect to all Awards or portions thereof or with respect to all Participants. The Administrator may take different actions with respect to the vested and unvested portions of an Award. The Administrator will not be required to treat all Awards similarly in the transaction. 
(c)    Continuation.  An Award will be considered continued if, following the Change in Control or merger:
(i)    the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the transaction, the consideration (whether stock, cash, or other securities or property) received in the transaction by holders of Shares for each Share held on the effective date of the transaction (and if holders were 
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offered a choice of consideration, the type of consideration received by the holders of a majority of the outstanding Shares); provided that if the consideration received in the transaction is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon exercising an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, Performance Stock Unit, Performance Share or Performance Award, for each Share subject to such Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the transaction; or
(ii)    the Award is terminated in exchange for an amount of cash and/or property, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights as of the date of the occurrence of the transaction.  Any such cash or property may be subjected to any escrow applicable to holders of Common Stock in the Change of Control.  If as of the date of the occurrence of the transaction the Administrator determines that no amount would have been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without payment. The amount of cash or property can be subjected to vesting and paid to the Participant over the original vesting schedule of the Award.
(iii)    Notwithstanding anything in this Section 14(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent; provided, however, a modification to such performance goals only to reflect the successor corporation’s post-transaction corporate structure will not invalidate an otherwise valid Award assumption.
(d)    The Administrator will have authority to modify Awards in connection with a Change in Control or merger:
(i)    in a manner that causes them to lose their tax-preferred status,
(ii)    to terminate any right a Participant has to exercise an Option prior to vesting in the Shares subject to the Option (i.e., “early exercise”), so that following the closing of the transaction the Option may only be exercised to the extent it is vested; 
(iii)    to reduce the Exercise Price subject to the Award in a manner that is disproportionate to the increase in the number of Shares subject to the Award, as long as the amount that would be received upon exercise of the Award immediately before and immediately following the closing of the transaction is equivalent and the adjustment complies with Treasury Regulation Section 1.409A-1(b)(v)(D); and
(iv)    to suspend a Participant’s right to exercise an Option during a limited period of time preceding and or following the closing of the transaction without Participant consent if such suspension is administratively necessary or advisable to permit the closing of the transaction.
(e)    Non-Continuation. If the successor corporation does not continue for an Award (or some portion such Award), the Participant will fully vest in (and have the right to exercise) 100% of the then-unvested Shares subject to his or her outstanding Options and Stock Appreciation Rights, all restrictions on 100% of the Participant’s outstanding Restricted Stock and Restricted Stock Units will lapse, and, regarding 100% of Participant’s outstanding Awards with performance-based vesting, all performance goals or other vesting criteria will be treated as achieved at 100% of target levels and all other terms and conditions met. In no event will vesting of an Award accelerate as to more than 100% of the Award. If Options or Stock Appreciation Rights are not continued when a Change in Control or a merger of the Company with or into another corporation or other entity occurs, the Administrator will notify the Participant in writing or electronically that the Participant’s vested Options or Stock Appreciation Rights (after considering the foregoing vesting acceleration, if any) will be exercisable for a period of time determined by the Administrator in its sole discretion and all of the Participant’s Options or Stock Appreciation Rights will terminate upon the expiration of such period (whether vested or unvested).
(f)    Outside Director Awards. With respect to Awards granted to an Outside Director that are continued, if on the date of or following such continuation the Participant’s status as a Director or a director of the successor corporation, as applicable, is terminated other than upon a voluntary resignation by the Participant that is not at the request of the acquirer, then the Participant will fully vest in and have the right to exercise Options and/or Stock Appreciation Rights as to all of the Shares underlying such Award, including those Shares not otherwise vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with 
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performance-based vesting, all performance goals or other vesting criteria will be treated as achieved at 100% of target levels and all other terms and conditions met.
15.    Tax Matters.
(a)    Withholding Requirements. Prior to the delivery of any Shares or cash under an Award (or exercise thereof) or such earlier time as any tax withholding obligations are due, the Company may deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy any taxes (including the Participant’s social tax obligations) required to be withheld with respect to such Award (or exercise thereof).
(b)    Withholding Arrangements. The Administrator, in its sole discretion and under such procedures as it may specify from time to time, may permit or may require a Participant to satisfy such tax withholding obligations, in whole or in part by (without limitation) (i) paying cash, (ii) electing to have the Company withhold otherwise deliverable cash (including cash from the sale of Shares issued to Participant) or Shares having a fair market value equal to the minimum statutory amount required to be withheld or a greater amount if that would not result in unfavorable financial accounting treatment, (iii) delivering to the Company already-owned Shares having a fair market value equal to the minimum statutory amount required to be withheld, or (iv) requiring the Participant to engage in a cashless exercise transaction (whether through a broker or otherwise) implemented by the Company in connection with the Plan.  The fair market value of the Shares to be withheld or delivered will be determined as of the date the taxes must be withheld.
(c)    Compliance With Code Section 409A. Except as otherwise determined by the Administrator, it is intended that Awards will be designed and operated so that they are either exempt from the application of Code Section 409A or comply with any requirements necessary to avoid the imposition of additional tax under Code Section 409A(a)(1)(B) so that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A and the Plan and each Award Agreement will be interpreted consistent with this intent.  This Section 15(c) is not a guarantee to any Participant of the consequences of his or her Awards.
16.    Other Terms.
(a)    No Effect on Employment or Service. Neither the Plan nor any Award will confer upon a Participant any right regarding continuing the Participant’s relationship as a Service Provider with the Company or member of the Company Group, nor will they interfere with the Participant’s right, or the Participant’s employer’s right, to terminate such relationship with or without cause, to the extent permitted by Applicable Laws.
(b)    Forfeiture Events.
(i)    All Awards granted under the Plan will be subject to recoupment under any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other Applicable Laws. In addition, the Administrator may impose such other clawback, recovery or recoupment provisions in an Award Agreement as the Administrator determines necessary or appropriate, including but not limited to a reacquisition right regarding previously acquired Shares or other cash or property. Unless this Section 16(b) is specifically mentioned and waived in an Award Agreement or other document, no recovery of compensation under a clawback policy or otherwise will give a Participant the right to resign for “good reason” or “constructive termination” (or similar term) under any agreement with the Company.
(ii)    The Administrator may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award will be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but will not be limited to, termination of such Participant’s status as Service Provider for cause or any act by a Participant, whether before or after such Participant’s Termination Status Date, that would constitute cause for termination of  such Participant’s status as a Service Provider. 
(iii)    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 securities laws, any Participant who (i) knowingly or through gross negligence engaged in the misconduct or who knowingly or through gross negligence failed to prevent the misconduct or (ii)  is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, must reimburse the Company the amount of any payment in settlement of an Award earned or accrued during the 12-month period following the first public issuance or filing with the United States 
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Securities and Exchange Commission (whichever first occurred) of the financial document embodying such financial reporting requirement. 
17.    Term of Plan.
Subject to Section 20, the Plan will become effective upon the business day immediately prior to the Registration Date. It will continue in effect until terminated under Section 18, but no Incentive Stock Options may be granted after 10 years from the date the Plan is adopted by the Board and Section 2(b) will operate only until the 10th anniversary of the date the Plan is adopted by the Board. 
18.    Amendment and Termination of the Plan.
(a)    Amendment and Termination.  The Board or Compensation Committee of the Board may amend, alter, suspend or terminate the Plan. 
(b)    Stockholder Approval. The Company will obtain stockholder approval of any Plan amendment to the extent necessary or desirable to comply with Applicable Laws. 
(c)    Consent of Participants Generally Required. Subject to Section 18(d) below, no amendment, alteration, suspension or termination of the Plan or an Award under it will materially impair the rights of any Participant without a signed, written agreement between the Participant and the Company. Termination of the Plan will not affect the Administrator’s ability to exercise the powers granted to it regarding Awards granted under the Plan prior to such termination. 
(d)    Exceptions to Consent Requirement. 
(i)    A Participant’s rights will not be deemed to have been impaired by any amendment, alteration, suspension or termination if the Administrator, in its sole discretion, determines that the amendment, alteration, suspension or termination taken as a whole, does not materially impair the Participant’s rights; and 
(ii)    Subject to any limitations of Applicable Laws, the Administrator may amend the terms of any one or more Awards without the affected Participant’s consent even if it does materially impair the Participant’s right if such amendment is done
(1)    in a manner permitted under the Plan,
(2)    to maintain the qualified status of the Award as an Incentive Stock Option under Code Section 422, 
(3)    to change the terms of an Incentive Stock Option, if such change results in impairment of the Award only because it impairs the qualified status of the Award as an Incentive Stock Option under Code Section 422,
(4)    to clarify the manner of exemption from Code Section 409A or compliance with any requirements necessary to avoid the imposition of additional tax under Code Section 409A(a)(1)(B), or 
(5)    to comply with other Applicable Laws.
19.    Conditions Upon Issuance of Shares.
(a)    Legal Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares will comply with Applicable Laws.  If required by the Administrator, issuance will be further subject to the approval of counsel for the Company with respect to such compliance. The inability of the Company to obtain authority from any regulatory body having jurisdiction or to complete or comply with the requirements of any Applicable Laws will relieve the Company of any liability regarding the failure to issue or sell such Shares as to which such authority, registration, qualification or rule compliance was not obtained and the Administrator reserves the authority, without the consent of a Participant, to terminate or cancel Awards with or without consideration in such a situation.
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(b)    Investment Representations. As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant during any such exercise that the Shares are being purchased only for investment and with no present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.
(c)    Failure to Accept Award. If a Participant has not accepted an Award or has not taken all administrative and other steps (e.g. setting up an account with a broker designated by the Company) necessary for the Company to issue Shares upon the vesting, exercise, or settlement of the Award prior to the first date the Shares subject such Award are scheduled to vest, then the Award will be cancelled on such date and the Shares subject to such Award immediately will revert to the Plan for no additional consideration unless otherwise provided by the Administrator.
20.    Stockholder Approval. 
The Plan will be subject to approval by the stockholders of the Company within 12 months after the date the Plan is adopted by the Board. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws. 
21.    Definitions. 
The following definitions are used in this Plan:
(a)    “Applicable Laws” means the requirements relating to the administration of equity-based awards and the related issuance of Shares under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and, only to the extent applicable with respect to an Award or Awards, the tax, securities or exchange control laws of any jurisdictions other than the United States where Awards are, or will be, granted under the Plan.  Reference to a section of an Applicable Law or regulation related to that section shall include such section or regulation, any valid regulation issued under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.
(b)    “Award” means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Stock Units, Performance Shares, or Performance Awards.
(c)    “Award Agreement” means the written or electronic agreement setting forth the terms applicable to an Award granted under the Plan. The Award Agreement is subject to the terms of the Plan.
(d)    “Board” means the Board of Directors of the Company.
(e)    “Change in Control” means the occurrence of any of the following events:
(i)    A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, with the stock held by such Person, constitutes more than 50% of the total voting power of the stock of the Company; provided, that for this subsection, the acquisition of additional stock by any one Person, who prior to such acquisition is considered to own more than 50% of the total voting power of the stock of the Company will not be considered a Change in Control.  Further, if the stockholders of the Company immediately before such change in ownership continue to retain immediately after the change in ownership, in substantially the same proportions as their ownership of shares of the Company’s voting stock immediately prior to the change in ownership, direct or indirect beneficial ownership of 50% or more of the total voting power of the stock of the Company, such event shall not be considered a Change in Control under this Section 21(e)(i). For this purpose, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company, as the case may be, either directly or through one or more subsidiary corporations or other business entities; or
(ii)    A change in the effective control of the Company which occurs on the date a majority of members of the Board is replaced during any 12-month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the appointment or election. For this Section 21(e)(ii), if any Person is in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or
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(iii)    A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons) assets from the Company that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, that for this Section 21(e)(iii), the following will not constitute a change in the ownership of a substantial portion of the Company’s assets: 
(1)    a transfer to an entity controlled by the Company’s stockholders immediately after the transfer, or 
(2)    a transfer of assets by the Company to: 
(A)    a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock,
(B)    an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company, 
(C)    a Person, that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of the Company, or 
(D)    an entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a Person described in subsections 21(e)(iii)(2)(A) to 21(e)(iii)(2)(C). 
For this definition, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. For this definition, persons will be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.
A transaction will not be a Change in Control:
(iv)    unless the transaction qualifies as a change in control event within the meaning of Code Section 409A; or 
(v)    if its sole purpose is to (1)  change the state of the Company’s incorporation, or (2)  create a holding company owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.
(f)    “Code” means the Internal Revenue Code of 1986. Reference to a section of the Code or regulation related to that section shall include such section or regulation, any valid regulation issued under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.
(g)    “Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board.
(h)    “Common Stock” means the Class A common stock of the Company.
(i)    “Company” means Square, Inc., a Delaware corporation, or any of its successors.
(j)    “Company Group” means the Company, any Parent or Subsidiary of the Company, and any entity that, from time to time and at the time of any determination, directly or indirectly, is in control of, is controlled by or is under common control with the Company.
(k)    “Consultant” means any natural person engaged by a member of the Company Group to render bona fide services to such entity, provided the services (i) are not in connection with the offer or sale of securities in a capital raising transaction, and (ii) do not directly promote or maintain a market for the Company's securities.  A Consultant must be a person to whom the issuance of Shares registered on Form S-8 under the Securities Act is permitted.
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(l)    “Director” means a member of the Board.
(m)    “Employee” means any person, including Officers and Directors, employed by the Company or any member of the Company Group. However, with respect to Incentive Stock Options, an Employee must be employed by the Company or any Parent or Subsidiary of the Company.  Notwithstanding Stock Options granted to individuals not providing services to the Company or a subsidiary of the Company should be carefully structured to comply with the payment timing rule of Code Section 409A.  Neither service as a Director nor payment of a director’s fee by the Company will constitute “employment” by the Company.
(n)    “Exchange Act” means the U.S. Securities Exchange Act of 1934.
(o)    “Exchange Program” means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for awards of the same type (which may have higher or lower Exercise Prices and different terms), awards of a different type, and/or cash, (ii) Participants would have the opportunity to transfer any outstanding Awards to a financial institution or other person or entity selected by the Administrator, and/or (iii) the Exercise Price of an outstanding Award is increased or reduced. The Administrator will determine the terms and conditions of any Exchange Program in its sole discretion.
(p)    “Expiration Date” means the last possible day on which an Option or Stock Appreciation Right may be exercised.  Any exercise must be completed by midnight California Time between the Expiration Date and the following date.
(q)    “Fair Market Value” means, as of any date, the value of a Share, determined as follows:
(i)    If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the New York Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market of The NASDAQ Stock Market, the Fair Market Value will be the closing sales price for a Share (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported by such source as the Administrator determines to be reliable;
(ii)    If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share will be the mean between the high bid and low asked prices for the Common Stock on the day of determination (or, if no bids and asks were reported on that date on the last Trading Day such bids and asks were reported), as reported by such source as the Administrator determines to be reliable; 
(iii)    For any Awards granted on the Registration Date, the Fair Market Value will be the initial price to the public set forth in the final prospectus included within the registration statement in Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Company’s Common Stock; or
(iv)    Absent an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator.
Notwithstanding the foregoing, if the determination date for the Fair Market Value occurs on a weekend, holiday or other non-Trading Day, the Fair Market Value will be the price as determined under subsections (i) or (ii) above on the immediately preceding Trading Day, unless otherwise determined by the Administrator. In addition, for purposes of determining the fair market value of shares for any reason other than the determination of the Exercise Price of Options or Stock Appreciation Rights, fair market value will be determined by the Administrator in a manner compliant with Applicable Laws and applied consistently for such purpose. Note that the determination of fair market value for purposes of tax withholding may be made in the Administrator’s sole discretion subject to Applicable Laws and is not required to be consistent with the determination of Fair Market Value for other purposes.
(r)    “Fiscal Year” means a fiscal year of the Company.
(s)    “Incentive Stock Option” means an Option that is intended to qualify and does qualify as an incentive stock option within the meaning of Code Section 422.
(t)    “Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.
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(u)    “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act.
(v)    “Option” means a stock option to acquire Shares granted under Section 4.
(w)    “Outside Director” means a Director who is not an Employee.
(x)    “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Code Section 424(e).
(y)    “Participant” means the holder of an outstanding Award.
(z)    “Performance Awards” means an Award which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine and which will be settled for cash, Shares or other securities or a combination of the foregoing under Section 9.
(aa)    “Performance Share” means an Award denominated in Shares which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine under Section 8.
(bb)    “Performance Stock Units” means an Award which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities or a combination of the foregoing under Section 8.
(cc)    “Period of Restriction” means the period during which the transfer of Shares of Restricted Stock is subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.
(dd)    “Plan” means this 2015 Equity Incentive Plan.
(ee)    “Registration Date” means the effective date of the first registration statement filed by the Company and declared effective under Section 12(b) of the Exchange Act, with respect to any class of the Company’s securities.
(ff)    “Restricted Stock” means Shares issued under an Award granted under Section 5 or issued as a result of the early exercise of an Option.
(gg)    “Restricted Stock Unit” means a bookkeeping entry representing an amount equal to the Fair Market Value, granted under Section 6. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.
(hh)    “Securities Act” means Securities Act of 1933, as amended.
(ii)    “Service Provider” means an Employee, Director or Consultant.
(jj)    “Share” means a share of Common Stock.
(kk)    “Stock Appreciation Right” means an Award granted (alone or in connection with an Option) under Section 7.
(ll)    “Subsidiary” means a “subsidiary corporation” as defined in Code Section 424(f).
(mm)    “Trading Day” means a day on which the applicable stock exchange or national market system is open for trading.
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