Document:

The Chefs’ Warehouse, Inc. 10-Q

Exhibit
10.8

THE CHEFS’ WAREHOUSE, INC.

LTIP
AWARD AGREEMENT

(Officers
and Employees) 

 

THIS
LTIP AWARD AGREEMENT (this “Agreement”) is made and entered into as of the [__] day of [_______], 2015 (the “Grant
Date”), between The Chefs’ Warehouse, Inc., a Delaware corporation (together with its Subsidiaries, the “Company”),
and [_______] (the “Grantee”). Capitalized terms not otherwise defined herein shall have the meaning ascribed to such
terms in The Chefs’ Warehouse, Inc. 2011 Omnibus Equity Incentive Plan (the “Plan”).

 

WHEREAS,
the Company has adopted the Plan, which permits the issuance of restricted shares of the Company’s common stock, par
value $0.01 per share (the “Common Stock”); and

 

WHEREAS,
pursuant to the Plan, the Committee responsible for administering the Plan has granted an award of restricted shares to the Grantee
as provided herein.

 

NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.    Grant
of Restricted Shares.

 

 (a)   The
Company hereby grants to the Grantee an award (the “Award”) of __________ shares of Common Stock of the Company (the
“Shares” or the “Restricted Shares”) on the terms and conditions set forth in this Agreement and as otherwise
provided in the Plan.

 

 (b)    The
Grantee’s rights with respect to the Award shall remain forfeitable at all times prior to the dates on which the restrictions
shall lapse in accordance with Sections 2 and 3 hereof.

 

2.   
Terms and Rights as a Stockholder.

 

       (a)    Except
as otherwise provided herein and subject to such other exceptions as may be determined by the Committee in its discretion, the
“Restricted Period” shall expire with respect to the following percentages of the Restricted Shares granted herein
as set forth below:

 

		Percentage of Restricted Shares	 	   Date	 	 
	 	
                      [___]%	 	 [DATE]	 	 

                  (b)    The
Grantee shall have all rights of a stockholder with respect to the Restricted Shares, including the right to receive dividends
and the right to vote such Shares, subject to the following restrictions:

 

                          (i)    the
Grantee shall not be entitled to the removal of the restricted legends or restricted account notices or to delivery of the stock
certificate (if any) for any Shares until the expiration of the Restricted Period as to such Shares and the fulfillment of any
other restrictive conditions set forth herein;

  

    	 

    	 

    

 

                         (ii)    none
of the Restricted Shares may be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered or disposed of during
the Restricted Period as to such Shares and until the fulfillment of any other restrictive conditions set forth herein; and

 

                         (iii)   except
as otherwise determined by the Committee at or after the grant of the Award hereunder, any Restricted Shares as to which the applicable
“Restricted Period” has not expired (or other restrictive conditions have not been met) shall be forfeited, and all
rights of the Grantee to such Shares shall terminate, without further obligation on the part of the Company, unless the Grantee
remains in the continuous employment (or other service-providing capacity) of the Company for the entire Restricted Period applicable
to such Shares.

 

                       (c)    Notwithstanding
the foregoing, the Restricted Period shall automatically terminate as to all Restricted Shares awarded hereunder (as to which
such Restricted Period has not previously terminated) in the following circumstances:

 

                              (i)    upon
the termination of the Grantee’s employment from the Company which results from the Grantee’s death or Disability;

 

                              (ii)    immediately
prior to a Change in Control; provided, that if this Award is assumed in the Change in Control transaction under the terms set
forth in Section 13.3 of the Plan, the Restricted Period shall run according to the schedule set forth in Section 2(a)
hereof except that in the event of the termination of the Grantee’s employment following a Change in Control, if the
Grantee’s employment with the Company (or its successor) is terminated by (A) the Grantee for Good Reason, or (B) the Company
for any reason other than for “Cause” (as “Cause” is defined in the Severance Agreement between the Grantee
and the Company, dated August 1, 2014, the Restricted Period shall terminate with respect to 100% of the Shares; and

 

                              (iii)  in
the event that the Grantee is involuntarily terminated by the Company for any reason other than for Cause.

 

Any
Shares, any other securities of the Company and any other property (except for cash dividends) distributed with respect to the
Restricted Shares shall be subject to the same restrictions, terms and conditions as such Restricted Shares.

 

3.    Termination
of Restrictions. Following the termination of the Restricted Period, and provided that all other restrictive conditions set
forth herein have been met, all restrictions set forth in this Agreement or in the Plan relating to such portion or all, as applicable,
of the Restricted Shares shall lapse as to such portion or all, as applicable, of the Restricted Shares, and a stock certificate
for the appropriate number of Shares, free of the restrictions and restrictive stock legend, shall, upon request, be delivered
to the Grantee or Grantee’s beneficiary or estate, as the case may be, pursuant to the terms of this Agreement (or, in the
case of book-entry Shares, such restrictions and restricted stock legend shall be removed from the confirmation and account statements
delivered to the Grantee in book-entry form).

 

4.    Delivery
of Shares.

 

       (a)    As
of the date hereof, certificates representing the Restricted Shares may be registered in the name of the Grantee and held by
the Company or transferred to a custodian appointed by the Company for the account of the Grantee subject to the terms and
conditions of the Plan and shall remain in the custody of the Company or such custodian until their delivery to the Grantee
or Grantee’s beneficiary or estate as set forth in Sections 4(b) and (c) hereof or their forfeiture or
reversion to the Company as set forth in Section 2(b) hereof. The Committee may, in its discretion, provide that the
Grantee’s ownership of Restricted Shares prior to the lapse of any transfer restrictions or any other applicable
restrictions shall, in lieu of such certificates, be evidenced by a “book entry” (i.e., a computerized or
manual entry) in the records of the Company or its designated agent in accordance with and subject to the applicable
provisions of the Plan.

 

    	 

    	 

    

  

                       (b)    If
certificates shall have been issued as permitted in Section 4(a) above, certificates representing Restricted Shares in
respect of which the Restricted Period has lapsed pursuant to this Agreement shall be delivered to the Grantee upon request following
the date on which the restrictions on such Restricted Shares lapse.

 

                       (c)    If
certificates shall have been issued as permitted in Section 4(a) above, certificates representing Restricted Shares in
respect of which the Restricted Period lapsed upon the Grantee’s death shall be delivered to the executors or administrators
of the Grantee’s estate as soon as practicable following the receipt of proof of the Grantee’s death satisfactory
to the Company.

 

                       (d)    Any
certificate representing Restricted Shares shall bear (and confirmation and account statements sent to the Grantee with respect
to book-entry Shares may bear) a legend in substantially the following form or substance:

 

THE
SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF WITHOUT REGISTRATION
UNDER THE SECURITES ACT OF 1933 AND UNDER APPLICABLE BLUE SKY LAW OR UNLESS SUCH SALE, TRANSFER, PLEDGE OR OTHER DISPOSITION IS
EXEMPT FROM REGISTRATION THEREUNDER.

 

THIS
CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE AND RESTRICTIONS
AGAINST TRANSFER) CONTAINED IN THE CHEFS’ WAREHOUSE, INC. 2011 OMNIBUS EQUITY INCENTIVE PLAN (THE “PLAN”) AND
THE RESTRICTED SHARE AWARD AGREEMENT (THE “AGREEMENT”) BETWEEN THE OWNER OF THE RESTRICTED SHARES REPRESENTED HEREBY
AND THE CHEFS’ WAREHOUSE, INC. (THE “COMPANY”). THE RELEASE OF SUCH SHARES FROM SUCH TERMS AND CONDITIONS SHALL
BE MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF THE PLAN AND THE AGREEMENT AND ALL OTHER APPLICABLE POLICIES AND PROCEDURES
OF THE COMPANY, COPIES OF WHICH ARE ON FILE AT THE COMPANY.

 

5.    Effect
of Lapse of Restrictions. To the extent that the Restricted Period applicable to any Restricted Shares shall have lapsed,
the Grantee may receive, hold, sell or otherwise dispose of such Shares free and clear of the restrictions imposed under the Plan
and this Agreement upon compliance with applicable legal requirements.

 

6.    No
Right to Continued Employment. This Agreement shall not be construed as giving the Grantee the right to be retained in the
employ of the Company, and subject to any other written contractual arrangement between the Company and the Grantee, the Company
may at any time dismiss the Grantee from employment, free from any liability or any claim under the Plan.

7.    Adjustments.
The Committee may make equitable and proportionate adjustments in the terms and conditions of, and the criteria included in,
this Award in recognition of unusual or nonrecurring events (and shall make adjustments for the events described in Section
4.2 of the Plan) affecting the Company or the financial statements of the Company or of changes in applicable laws,
regulations, or accounting principles in accordance with the Plan whenever the Committee determines that such events
affect the Shares. Any such adjustments shall be effected in a manner that precludes the material enlargement of rights and
benefits under this Award.

 

    	 

    	 

    

  

8.    Amendment
to Award. Subject to the restrictions contained in the Plan, the Committee may waive any conditions or rights under, amend
any terms of, or alter, suspend, discontinue, cancel or terminate the Award, prospectively or retroactively; provided that any
such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would materially and adversely
affect the rights of the Grantee or any holder or beneficiary of the Award shall not to that extent be effective without the consent
of the Grantee, holder or beneficiary affected.

 

9.    Withholding
of Taxes. If the Grantee makes an election under Section 83(b) of the Code with respect to the Award, the Award made pursuant
to this Agreement shall be conditioned upon the prompt payment to the Company of any applicable withholding obligations or withholding
taxes by the Grantee (“Withholding Taxes”). Failure by the Grantee to pay such Withholding Taxes will render this
Agreement and the Award granted hereunder null and void ab initio and the Restricted Shares granted hereunder will be immediately
cancelled. If the Grantee does not make an election under Section 83(b) of the Code with respect to the Award, upon the lapse
of the Restricted Period with respect to any portion of Restricted Shares (or property distributed with respect thereto), the
Company may satisfy the required Withholding Taxes as set forth by Internal Revenue Service guidelines for the employer’s
minimum statutory withholding with respect to the Grantee and issue vested shares to the Grantee without restriction. The Company
may satisfy the required Withholding Taxes by withholding from the Shares included in the Award that number of whole shares necessary
to satisfy such taxes as of the date the restrictions lapse with respect to such Shares based on the Fair Market Value of the
Shares, or by requiring the Grantee to remit to the Company the proper Withholding Taxes in cash.

 

10.   Plan
Governs. The Grantee hereby acknowledges receipt of a copy of (or electronic link to) the Plan and agrees to be bound by all
the terms and provisions thereof. The terms of this Agreement are governed by the terms of the Plan, and in the case of any inconsistency
between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall govern.

 

11.    Severability.
If any provision of this Agreement is, or becomes, or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or
as to any Person or the Award, or would disqualify the Plan or Award under any laws deemed applicable by the Committee, such provision
shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without,
in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken
as to such jurisdiction, Person or Award, and the remainder of the Plan and Award shall remain in full force and effect.

 

12.    Notices.
All notices required to be given under this Award shall be deemed to be received if delivered or mailed as provided for herein,
to the parties at the following addresses, or to such other address as either party may provide in writing from time to time.

 

	 	To
the Company:	 	The Chefs’ Warehouse, Inc.
	 	 	 	100
East Ridge Road
	 	 	 	Ridgefield,
CT 06877
	 	 	 	Attn:
Corporate Secretary
	 	 	 	 
	 	To
the Grantee:	 	The address then maintained with respect to the Grantee in the Company’s records.

 

    	 

    	 

    

  

13.   Governing
Law. The validity, construction and effect of this Agreement shall be determined in accordance with the laws of the State
of Delaware without giving effect to conflicts of laws principles.

 

14.    Successors
in Interest. This Agreement shall inure to the benefit of and be binding upon any successor to the Company. This Agreement
shall inure to the benefit of the Grantee’s legal representatives. All obligations imposed upon the Grantee and all rights
granted to the Company under this Agreement shall be binding upon the Grantee’s heirs, executors, administrators and successors.

 

15.   Resolution
of Disputes. Any dispute or disagreement which may arise under, or as a result of, or in any way related to, the interpretation,
construction or application of this Agreement shall be determined by the Committee. Any determination made hereunder shall be
final, binding and conclusive on the Grantee and the Company for all purposes.

16.   Legal
Fees. In the event of any dispute between the Company, the Grantee or others regarding the validity or enforceability of,
or liability under, or breach by the Company of, any provision of this Agreement, the Company agrees to pay any legal fees and/or
expenses that the Grantee may reasonably incur as a result of such dispute to the extent that the Grantee is the prevailing party
in the dispute as to at least one issue; provided, however, that payment of legal fees and/or expenses shall not
be provided to the Grantee later than the last day of the second calendar year in which the relevant fees or expenses were incurred.

 

IN
WITNESS WHEREOF, the parties have caused this Restricted Share Award Agreement to be duly executed effective as of the day
and year first above written.

 

	 	THE CHEFS’ WAREHOUSE, INC.
	 	 	 
	 	By:__________________________________________________
	 	 	 
	 	GRANTEE:	 
	 	____________________________________________________Exhibit 10.3_ 2015.03.31

Exhibit 10.3

[Date]

[Name]
[Title]

		
	Re:
	WESTLAKE CHEMICAL CORPORATION

NONQUALIFIED STOCK OPTION AWARD

Dear [Name]:
Westlake Chemical Corporation (the "Company") is pleased to notify you that you have been granted a nonqualified stock option ("Option"), effective February 20, 2015 (the "Award Date"), to purchase XXXX shares of common stock of the Company ("Common Stock") in accordance with the Westlake Chemical Corporation 2013 Omnibus Incentive Plan (the "Plan"). Your Award is more fully described in the attached Appendix A, Terms and Conditions of Nonqualified Stock Option Award.
The price at which you may purchase the shares of Common Stock covered by the Option is $68.09 (the "Grant Price"). Unless otherwise provided in the attached Appendix A, your Option will expire on the tenth anniversary of the Award Date (the "Expiration Date"), and will become exercisable in installments as follows (the "Schedule"):
	
		
	Period Beginning
	Per Cent of Shares Purchasable

	February 20, 2016
February 20, 2017
February 20, 2018
	33%
33%
34%

You must be in continuous employment with the Company or one of its Subsidiaries (as defined in the Plan) from the Award Date through each date on which your Option becomes exercisable in order for your Option to become exercisable on such date. Fractional shares will be rounded for purposes of vesting in accordance with Plan policy.
Your Award is subject to the terms and conditions set forth in the Plan. Both the Plan and the Prospectus for the Plan have been previously provided to you. Your Award is also subject to any additional terms and conditions set forth in the attached Appendix A and any rules and regulations adopted by the Plan's Administrator (as defined in the Plan). In conjunction with this Award we are also required to provide you with the most current relevant SEC filings by the Company; therefore, we refer you to the SEC Filings section of our web page, www.westlake.com.
This Award letter and the attachment contain the formal terms and conditions of your Award and accordingly should be retained in your files for future reference. If you have any questions regarding this Award, you may contact Mr. David Hansen, Sr. Vice President, Administration, at 713-960-9111.
Very truly yours,

Albert Chao
President & CEO

Appendix A
to Award Letter
dated
[Date]

Terms and Conditions of 
Employee Nonqualified Stock Option Award
The nonqualified stock option (the "Option") granted to you by Westlake Chemical Corporation (the "Company") to purchase common stock of the Company ("Common Stock") is subject to the terms and conditions set forth in the Westlake Chemical Corporation 2013 Omnibus Incentive Plan (the "Plan"), any rules and regulations adopted by the Administrator (as defined in the Plan), and any additional terms and conditions set forth in this Appendix A which forms a part of the attached award letter to you (the "Award Letter"). Any terms used in this Appendix A and not defined in the Award Letter or this Appendix A have the meanings set forth in the Plan. In the event there is an inconsistency between the terms of the Plan and this Appendix A, the terms of the Plan will control.
		
	1.
	Grant Price

You may purchase the shares of Common Stock covered by the Option for the Grant Price stated in your Award Letter.
		
	2.
	Term of Option

Your Option expires on the Expiration Date stated in your Award Letter. However, your Option will terminate prior to the Expiration Date as provided in Paragraph 6 of this Appendix A upon the occurrence of one of the events described in that paragraph. Regardless of the provisions of Paragraph 6, in no event can your Option be exercised after the Expiration Date.
		
	3.
	Earn-out of Option

		
	(a)
	Unless it becomes vested and exercisable on an earlier date as provided in Paragraph 6 below, your Option will become vested and exercisable in cumulative installments as set forth in the Schedule in your Award Letter.

		
	(b)
	To the extent your Option has become vested and exercisable, you may exercise the Option as to all or any part of the shares covered by the Option, at any time on or before the date the Option expires or terminates, subject to any limitations imposed by law or by Company policy regarding transactions in Common Stock.

		
	4.
	Exercise of Option

Subject to the limitations and the terms set forth in this Appendix A and the Plan, your Option may be exercised from time to time in accordance with the administrative procedures established by the Company in effect at the time of your exercise. In addition, if you have been notified by the Company that you may be subject to certain exercise restrictions, your Option may only be exercised by written notice signed and delivered by you or another person entitled to exercise the Option to the General Counsel of the Company at its principal executive office in Houston, Texas, or as it may hereafter be located, as set forth below. Such written notice shall (a) state the number of shares of Common Stock with respect to which your Option is being exercised and (b) subject to approval of your request to exercise, be accompanied by a wire transfer, cashier's check, cash, money order or other form of payment deemed acceptable by the Administrator or its designee and made payable to Westlake Chemical Corporation in the full amount of the Grant Price for any shares of Common Stock being acquired and any appropriate withholding taxes (as provided in Paragraph 7 of this Appendix A), or by other consideration in the form and manner approved by the Administrator or its designee pursuant to Paragraphs 5 and 7 of this Appendix A. In the alternative, the Administrator or its designee may prescribe other procedures for exercise of your Option. If any law or regulation requires the Company to take any action with respect to the shares specified in such notice, the time for delivery thereof, which would otherwise be as promptly as possible, shall be postponed for the period of time necessary to take such action. You shall have no rights of a shareholder with respect to shares of Common Stock subject to your Option unless and until such time as your Option has been exercised and ownership of such shares of Common Stock has been transferred to you.

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2015 NQSO Award

		
	5.
	Satisfaction of Grant Price

		
	(a)
	Payment of Cash or Common Stock. Your Option may be exercised by payment in cash (including check, bank draft, money order or wire transfer payable to the Company), in Common Stock, in a combination of cash and Common Stock or in such other manner as the Administrator in its discretion may provide. Payment in Common Stock shall only be permitted if and to the extent authorized by the Administrator.

		
	(b)
	Payment of Common Stock. The Fair Market Value of any shares of Common Stock tendered as all or part of the Grant Price shall be determined as provided in the Plan. The certificates evidencing shares of Common Stock tendered must be duly endorsed or accompanied by appropriate stock powers. Only stock certificates issued solely in your name may be tendered in exercise of your Option. Fractional shares may not be tendered in satisfaction of the Grant Price; any portion of the Grant Price which is in excess of the aggregate Fair Market Value of the number of whole shares tendered must be paid in cash. If a certificate tendered in exercise of the Option evidences more shares than are required pursuant to the immediately preceding sentence for satisfaction of the portion of the Grant Price being paid in Common Stock, an appropriate replacement certificate will be issued to you for the number of excess shares.

		
	(c)
	Broker-Assisted Exercise. At your request or the request of another person entitled to exercise this Option, and to the extent permitted by applicable law, the Administrator in its discretion may selectively approve "cashless exercise" arrangements with a brokerage firm under which such brokerage firm, on behalf of you or such other person exercising the Option, shall pay to the Company or its designee the Grant Price of the Option or of the portion being exercised, and the Company or its designee, pursuant to an irrevocable notice from you or such other person exercising the Option, shall promptly deliver the shares being purchased to such firm.

		
	6.
	Termination of Employment

		
	(a)
	General. The following rules apply to your Option in the event of your death, disability or other termination of employment.

		
	(i)
	Involuntary Termination Without Cause. If your employment with the Company or a Subsidiary is terminated by the Company or any such Subsidiary without Cause, your Option shall be exercisable to the extent vested on the date of your termination and shall become exercisable with respect to a portion of the previously unexercisable shares that were scheduled to become exercisable on the next vesting date, prorated for the number of full months you were employed from the most recent vesting date until the date of your termination. To the extent vested, regardless whether vested as a result of your termination of employment or vested prior thereto, your Option shall remain exercisable for the longer of (i) 30 days following your termination date or (ii) the period during which you receive salary continuation under any separation agreement, policy, plan or other arrangement with the Company or any of its Subsidiaries, but not to exceed 180 days following your termination date; provided, however, that in no event shall the Option be exercisable after the Expiration Date. Upon expiration of the foregoing period, your Option shall terminate in all respects.

		
	(ii)
	Voluntary Termination. Except as provided in Paragraph 6(a)(vi), if you voluntarily terminate employment with the Company or a Subsidiary, your Option shall be exercisable to the extent vested on the date of your termination. To the extent vested, your Option shall remain exercisable until the first to occur of (i) 30 days following your termination date, or (ii) the Expiration Date. Upon expiration of the foregoing period, your Option shall terminate in all respects.

		
	(iii)
	Termination with Cause. If your employment with the Company or a Subsidiary is terminated for Cause, your Option shall immediately terminate and shall no longer be exercisable. You forfeit any previously vested and unexercised portion of your Option.

		
	(iv)
	Termination by Reason of Death. If your employment terminates by reason of death, your Option will become fully vested and exercisable and will remain exercisable until the first to occur of (i) one year after the date of your termination, or (ii) the Expiration Date.

		
	(v)
	Termination by Reason of Disability. If your employment terminates by reason of total and permanent disability (as determined by the Administrator), your Option will be exercisable to the extent vested on 

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2015 NQSO Award

the date of your termination, and will remain exercisable until the first to occur of (i) 180 days after the date of your termination, or (ii) the Expiration Date. Upon expiration of the foregoing period, your Option shall terminate in all respects.
		
	(vi)
	Termination by Reason of Normal Retirement. If you voluntarily terminate employment due to Normal Retirement, your Option shall be exercisable to the extent vested on the date of your termination and shall become exercisable with respect to a portion of the previously unexercisable shares, prorated for the number of days you were employed from the Award Date until the date of your termination. With respect to all vested shares, regardless whether vested as a result of your Normal Retirement or vested prior thereto, your Option shall remain exercisable for 30 days following your termination date; provided, however, that in no event shall the Option be exercisable after the Expiration Date. Upon expiration of the foregoing period, your Option shall terminate in all respects.

		
	(vii)
	Adjustments by the Administrator. The Administrator may, in its sole discretion, exercised before or after your termination of employment, declare all or any portion of your Option immediately vested and exercisable and/or permit all or any part of your Option to remain exercisable for such period designated by it after the time when the Option would have otherwise terminated as provided in the applicable portion of this Paragraph 6(a), but not beyond the Expiration Date of your Option.

		
	(b)
	Administrator Determinations. The Administrator shall have absolute discretion to determine the date and circumstances of termination of your employment, and its determination shall be final, conclusive and binding upon you.

		
	(c)
	Cause. For purposes of this Appendix A, Cause shall mean any of the following:

		
	(i)
	your conviction by a court of competent jurisdiction of any felony or a crime involving moral turpitude;

		
	(ii)
	your knowing failure or refusal to follow reasonable instructions given to you on behalf of the Company or reasonable policies, standards and regulations of the Company or any Subsidiary;

		
	(iii)
	your continued failure or refusal to faithfully and diligently perform the usual, customary duties of your employment with the Company or any Subsidiary;

		
	(iv)
	continuously conducting yourself in an unprofessional, unethical or immoral manner; or

		
	(v)
	any fraudulent conduct or conduct which discredits the Company or any Subsidiary or is detrimental to the reputation, character and standing of the Company or any Subsidiary.

		
	(d)
	Normal Retirement. For purposes of this Appendix A, "Normal Retirement" shall mean your termination from employment with the Company and its Subsidiaries for any reason after you have (a) attained at least 65 years of age, and (b) been employed by the Company or a Subsidiary for a continuous period of 10 years or more ending on the date of your termination.

		
	7.
	Tax Consequences and Withholding

		
	(a)
	You are urged to consult your own tax advisor regarding the application of the tax laws to your particular situation.

		
	(b)
	The Option is not intended to be an "incentive stock option," as defined in Section 422 of the Code.

		
	(c)
	You must make arrangements satisfactory to the Company to satisfy any applicable federal, state or local withholding tax liability arising from the grant or exercise of your Option. You can either make a cash payment to the Company of the required amount or you can elect to satisfy your withholding obligation by having the Company retain shares of Common Stock having a Fair Market Value (as prescribed by the Plan) equal to the amount of your withholding obligation from the shares otherwise deliverable to you upon the exercise of your Option. You may not elect to have the Company withhold shares of Common Stock having a Fair Market Value in excess of the minimum statutory withholding tax liability.

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2015 NQSO Award

		
	8.
	Restrictions on Resale

There are no restrictions imposed by the Plan on the resale of shares of Common Stock acquired under the Plan. However, under the provisions of the Securities Act of 1933 (the "Securities Act") and the rules and regulations of the Securities and Exchange Commission (the "SEC"), resales of shares acquired under the Plan by certain officers and directors of the Company who may be deemed to be "affiliates" of the Company must be made pursuant to an appropriate effective registration statement filed with the SEC, pursuant to the provisions of Rule 144 issued under the Securities Act, or pursuant to another exemption from registration provided in the Securities Act. At the present time, the Company does not have a currently effective registration statement pursuant to which such resales may be made by affiliates. There are no restrictions imposed by the SEC on the resale of shares acquired under the Plan by persons who are not affiliates of the Company. However, the timing of sales of shares may be restricted by applicable law, and the Company may, from time to time, adopt policies regarding timing of sales of shares by employees.
		
	9.
	Effect on Other Benefits

Income recognized by you as a result of exercise of the Option will not be included in the formula for calculating benefits under any of the Company's retirement and disability plans or any other benefit plans.
If you have any questions regarding your Option or would like to obtain additional information about the Plan or the Administrator, please contact the Sr. Vice President, Administration at 713-960-9111. Your Award Letter and this Appendix A contain the formal terms and conditions of your award and accordingly should be retained in your files for future reference.

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2015 NQSO Award

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