Document:

Lithia Motors, Inc

 Exhibit 10.1 
 LITHIA MOTORS, INC. 
 AMENDED AND RESTATED 

2003 STOCK INCENTIVE PLAN 
 ARTICLE I 
 PURPOSE OF THE PLAN 

The purposes of this Stock Incentive Plan (the “Plan”) are to attract, retain and provide incentive compensation to employees,
non-employee directors and others who contribute to the long-term financial success of LITHIA MOTORS, INC., an Oregon corporation (the “Company”) and to more closely align their interests with those of the Company and its shareholders.
This Plan amends and restates in its entirety the 2003 Stock Incentive Plan. 
 ARTICLE II 

DEFINITIONS 
 As used herein, the following definitions will apply: 
  

	 	(a)	“Acquired Company” means any corporation or other entity that becomes a majority owned subsidiary of the Company, after the Effective Date, by merger,
consolidation, acquisition of all or substantially all of its assets or otherwise. 

  

	 	(b)	“Authorized Shares” means the number of shares of Common Stock authorized for issuance pursuant to Section 3.1 of this Plan. 

 

	 	(c)	“Available Shares” means the number of shares of Common Stock available under this Plan at any time for future issuance under Stock Options, Stock-Settled
SARs, Performance Share Awards, Restricted Share Awards or Restricted Stock Unit Awards, as provided in Section 3.2 of this Plan. 

  

	 	(d)	“Award” means any agreement to issue a Stock Option, a Stock-Settled SAR, or to make a Performance Share Award, a Restricted Share Award or a Restricted Stock
Unit Award pursuant to this Plan. An Award shall, for all purposes, be deemed to have been made on the later of (i) the date when the Company completes all necessary corporate action necessary to authorize the Award or such later date as
specified in such corporate action or (ii) when the maximum number of shares covered by the Award can be determined (excluding from such determination the effects of any vesting provisions including Performance Goals and excluding provisions
adjusting the number of shares pursuant to Section 12.1 of Article XII of this Plan) regardless of the date on which the written agreement evidencing the Award is prepared or executed by the Company or the Recipient. 

 

	 	(e)	“Board of Directors” means the Board of Directors of the Company. 

 

	 	(f)	“Code” means the Internal Revenue Code of 1986, as amended. 

  

	 	(g)	“Committee” means any committee appointed by the Board of Directors in accordance with Article V of this Plan, or, the Board of Directors, if no such
committee is then in existence. 

  

	 	(h)	“Common Stock” means the common stock of the Company. 

  

	 	(i)	“Company” means Lithia Motors, Inc. and, unless the context requires otherwise, any successor or assignee of the Company by merger, consolidation, acquisition
of all or substantially all of the assets of the Company or otherwise. As used in connection with either the term “Employee” or “Service,” it includes Subsidiaries of the Company. 

 

	 	(j)	 “Corporate Transaction” means (i) the adoption of a plan of dissolution or liquidation with respect to the Company, (ii) the
consummation of any plan of exchange, merger or consolidation with one or more corporations in which the Company is not the surviving entity (other than a merger of the Company into a wholly-owned subsidiary of the Company or a reincorporation of
the Company in a different jurisdiction), or in which the security holders of the Company prior to such transaction do not receive in the transaction securities with voting rights with respect to the election of directors equal to 50% or more of the
votes of all classes of securities of the surviving corporation or (iii) the 

  
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consummation of a sale of all of substantially all of the assets of the Company following a shareholder vote on such sale. Notwithstanding the foregoing to the contrary, for purposes of
Restricted Stock Unit Awards, a “Corporate Transaction” for Restricted Stock Unit Award purposes also must be a ‘change in the ownership,’ (ii) ‘a change in the effective control,’ or (ii) ‘a change in
the ownership of a substantial portion of the assets’ (as those terms are defined in Section Treas. Reg. 1.409A-3(i)(5)) of the Company. 

  

	 	(k)	“Disabled” means having a mental or physical impairment that has lasted or is expected to last for a continuous period of 12 months or more and, in the
Committee’s sole discretion, renders a Recipient unable to perform the duties that were assigned to the Recipient during the 12 month period prior to such determination. Notwithstanding the foregoing to the contrary, for purposes of Restricted
Stock Unit Awards, “Disabled” shall be determined in accordance with the requirements of Code Section 409A. The Committee’s determination of the existence of an individual’s disability will be effective when communicated in
writing to the Recipient and will be conclusive on all of the parties. 

  

	 	(l)	“Employee” means any person employed by the Company or a Subsidiary of the Company. 

 

	 	(m)	“Exercise Price” means the price per share at which shares of Common Stock may be purchased upon exercise of a Stock Option or a Stock-Settled SAR.

  

	 	(n)	“Fair Market Value” with respect to shares of Common Stock for any date means: 

1) If the Common Stock is traded on a national securities exchange or on either the NASDAQ National Market or NASDAQ SmallCap Market, the
“Fair Market Value” of a share of Common Stock will be the closing price of the Common Stock for such date, or if no transactions occurred on such date, on the last date on which trades occurred; 

2) If the Common Stock is not traded on a national securities exchange or on NASDAQ but bid and asked prices are regularly quoted on the
OTC Bulletin Board Service, by the National Quotation Bureau or any other comparable service, the “Fair Market Value” of a share of Common Stock will be the average between the highest bid and lowest asked prices of the Common Stock as
reported by such service at the close of trading for such date or, if such date was not a business day, on the preceding business day; or 
 3) If there is no public trading of the Common Stock within the terms of subparagraphs 1 or 2 of this subsection, the “Fair Market Value” of a share of Common Stock will be as determined by the
Committee in its good faith discretion. 
  

	 	(o)	“Option Agreement” means the written agreement between the Company and a Recipient that evidences a Stock Option awarded pursuant to this Plan. Each Option
Agreement shall be subject to the terms and conditions of this Plan. 

  

	 	(p)	“Outstanding Stock Options” means all Stock Options awarded pursuant to this Plan that, at such time, have not yet expired and have not either been terminated
or cancelled. 

  

	 	(q)	“Performance Goals” means any of the following performance criteria or combination of the following performance criteria applied either to the Company as a
whole, as to any Subsidiary or as to any business unit of the Company or any Subsidiary and measured on an actual or as adjusted basis applied on a quarterly, annual or cumulative basis or relative to pre-established targets, previous period results
or a designated comparison group, in each case as specified by the Committee in the agreement evidencing an Award: (i) net revenue, (ii) net margin, (iii) operating income, (iv) operating cash flow, (v) earnings before
interest, taxes, depreciation and amortization, (vi) earnings before interest and taxes, (vii) net income before income taxes, (viii) net income, (ix) new product introduction, (x) product release schedules, (xi) market
segment share, (xii) product cost reduction, (xiii) customer satisfaction, (xiv) quality criteria, or (xv) other business objectives. The Committee shall determine whether or the extent to which any Performance Goal is achieved
and may appropriately adjust any evaluation of performance to exclude, in whole or in part, any extraordinary non-recurring items, accruals for reorganization or restructuring events, asset write-downs, judgments, settlement amounts and expenses
associated with litigation, and the effect of changes in tax law or accounting principles. 

  
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	 	(r)	“Performance Share Award” means an Award of shares of Common Stock pursuant to Article IX of this Plan subject to the terms of a Share Vesting Agreement in
which vesting is based, either in whole or in part, to the achievement of certain Performance Goals. 

  

	 	(s)	“Recipient” means any individual who is awarded a Stock Option, a Stock-Settled SAR, a Performance Share Award, a Restricted Share Award or a Restricted Stock
Unit Award pursuant to this Plan. 

  

	 	(t)	“Restricted Share Award” means an Award of shares of Common Stock pursuant to Article X of this Plan, regardless of whether the Recipient receives the shares
covered by such Award solely for services or for a combination of services and cash payment to the Company, pursuant to a Share Vesting Agreement. 

  

	 	(u)	“Restricted Stock Unit Award” means an Award of a right granted to receive Common Stock at the end of a specified deferral period pursuant to Article XI of
this Plan, which right may be conditioned on the satisfaction of certain requirements (including the satisfaction of certain performance goals). 

  

	 	(v)	“Securities Act” means the Securities Act of 1933, as amended. 

  

	 	(w)	“Service” means the continued employment of an Employee, service as director of the Company, service as a director of a Subsidiary of the Company or the
regular provision of services to the Company or a Subsidiary of the Company under an independent contractor arrangement. If a recipient ceases to provide Service with the Company or a Subsidiary of the Company in one capacity but continues to
provide Service in another capacity or contemporaneously begins to provide Service in another capacity, the recipient shall, for purposes of this Plan, be deemed to have continued in Service without interruption. 

 

	 	(x)	“Share Vesting Agreement” means the written agreement between the Company and a Recipient that evidences either a Performance Share Award or a Restricted
Share Award made pursuant to this Plan. Each Share Vesting Agreement shall be subject to the terms and conditions of this Plan. 

  

	 	(y)	“Stock-Settled SAR” means the right to acquire shares of Common Stock in an amount equal to the difference between the Fair Market Value of a share of Common
Stock on the date of exercise and the Exercise Price per share multiplied by the number of shares covered by the right awarded under Article VII of this Plan. 

 

	 	(z)	“Stock-Settled SAR Agreement” means the written agreement between the Company and a Recipient that evidences a Stock-Settled SAR pursuant to this Plan. Each
Stock-Settled SAR Agreement shall be subject to the terms and conditions of this Plan. 

  

	 	(aa)	“Subsidiary” of the Company means any corporation or other entity owned or controlled by the Company in an unbroken chain of corporations or other entities in
which each of the corporations or other entities other than last corporation or other entity owns 50 percent or more of the total combined voting power of all classes of equity ownership interests in the other corporations or other entities in such
chain. 

  

	 	(bb)	“Stock Option” means a Stock Option awarded pursuant to Article VI of this Plan. 

 

	 	(cc)	“Tax Withholding” means all amounts determined by the Company to be required to satisfy applicable federal, state and local tax withholding requirements
(including but not limited to payroll taxes) upon the exercise of a Stock Option, the disqualifying disposition of shares of Common Stock acquired by exercise of a Stock Option, the vesting of shares under a Performance Share Award or Restricted
Share Award or the vesting of a Restricted Share Unit Award, a Recipient making an election under Code Section 83(b) with respect to a Performance Share Award or Restricted Share Award or as otherwise may be required under applicable tax laws.

  
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 ARTICLE III 
 STOCK SUBJECT TO THE PLAN 
 3.1 Aggregate Number of
Authorized Shares. Subject to adjustment in accordance with Section 10.1, the total number of shares of Common Stock authorized for issuance under all Awards pursuant to this Plan is established at 2,800,000 shares. 

 3.2 Number of Available Shares. At any point in time, the number of Available Shares shall be the
number of Authorized Shares at such time minus: 
  

	 	(a)	the number of shares of Common Stock issued prior to such time upon the exercise of Stock Options and Stock-Settled SARs that were awarded pursuant to this Plan; and

  

	 	(b)	the number of shares covered by outstanding Stock Options and Stock-Settled SARs that were awarded pursuant to this Plan to the extent that such Stock Options and/or
Stock-Settled SARs have not been exercised at such time; 

  

	 	(c)	the number of shares of Common Stock covered by Restricted Stock Unit Awards made pursuant to this Plan prior to such time except to the extent that the Restricted
Stock Unit Awards are forfeited prior to being settled in Common Stock; and 

  

	 	(d)	the number of shares of Common Stock covered by Performance Share Awards and Restricted Share Awards made pursuant to this Plan prior to such time except to the extent
that unvested shares have been forfeited and repurchased by the Company pursuant to the terms of a Share Vesting Agreement. 

 As
a result of the foregoing, if a Stock Option, Stock-Settled SAR or Restricted Stock Unit expires, terminates or is cancelled for any reason without having been exercised and/or settled in full, the shares of Common Stock covered by such Stock
Option, Stock-Settled SAR or Restricted Stock Unit that were not acquired through the exercise of such Award will again become Available Shares. Upon the exercise in full of a Stock-Settled SAR, all shares covered by that Award other than the shares
actually issued upon such exercise, will again become Available Shares. Similarly, upon the settlement of a vested Restricted Stock Unit Award, all shares covered by that Award other than the shares actually issued in settlement thereof will again
become Available Shares. If shares of Common Stock covered by a Performance Share Award or Restricted Share Award are repurchased by the Company pursuant to the terms of a Share Vesting Agreement, those shares will again become Available Shares. If
shares of Common Stock covered by an Award are surrendered by a Recipient to satisfy any Tax Withholding obligations, those shares will again become Available Shares. 
 3.3 Reservation of Shares. Available Shares shall consist of authorized but unissued shares of Common Stock of the Company. By appropriate resolution of the Board of Directors, the
Company at all times will reserve for issuance shares of Common Stock equal to the sum of (i) the number of shares covered by Outstanding Stock Options to the extent that such Stock Options have not been exercised at such time and (ii) the
number of Available Shares. By action of the Board of Directors, the Company may repurchase issued and outstanding shares for purposes of providing Available Shares under this Plan but the Company is not required to make such repurchases and any
such repurchases shall not effect the calculation of the number of Authorized Shares or Available Shares. 

3.4 Annual Limit on Number of Shares to Any One Person. No person will be eligible to receive
Awards pursuant to this Plan which, in the aggregate, exceed 75,000 shares in any calendar year except in connection with the hiring or commencement of services from such person in which case such limit shall be 100,000 shares during such calendar
year. However, the foregoing limitation shall not apply to Awards of Stock Options in substitution for outstanding stock options of an Acquired Company that are cancelled in connection with the acquisition of such Acquired Company. The foregoing
limitations shall apply to Restricted Stock Unit Awards, with no person being eligible to receive such awards which, in the aggregate, exceed 75,000 Restricted Stock Units in any calendar year except in connection with the hiring or commencement of
services from such person in which case such limit shall be 100,000 Restricted Stock Units during such calendar year. 

  
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 ARTICLE IV 
 COMMENCEMENT AND DURATION OF THE PLAN 
 4.1 Effective Date of the
Plan. This Plan will be effective as of the date on which it was adopted by the Board of Directors. However, the implementation of this Plan shall be subject to the provisions of Section 4.2. 

4.2 Shareholder Approval of the Plan. Within twelve (12) months of the date on which this Plan was adopted by the
Board of Directors, this Plan will be submitted to the shareholders of the Company for their approval. This Plan will be deemed approved by the shareholders if approved by a majority of the votes cast at a duly held meeting of the Company’s
shareholders at which a quorum is present in person or by proxy. Awards may be made pursuant to this Plan prior to such shareholder approval provided that such Awards are conditioned upon such approval and state by their terms that they will be null
and void if shareholder approval is not obtained.  
 4.3 Termination of the Plan. This Plan will terminate
March 4, 2013. In addition, the Board of Directors will have the right to suspend or terminate this Plan at any time. Termination of the Plan will not terminate or otherwise affect any outstanding Stock Option, Stock-Settled SAR, Performance
Share Award, Restricted Share Award, Restricted Stock Unit Award, Option Agreement, Stock-Settled SAR Agreement or Share Vesting Agreement. 
 ARTICLE V 
 ADMINISTRATION OF THE PLAN 

The Plan shall be administered by the Committee. The Board of Directors shall appoint the members of the Committee, which shall consist
of at least two directors from the Board of Directors. The appointment to the Committee of one or more directors who are not “outside directors” as such term is defined in Treasury Regulation §1.162-27(e)(3), one or more directors who
are not “non-employee directors” as such term is defined in Rule 16b-3 issued by the Securities and Exchange Commission under Section 16 of the Securities Exchange Act of 1934, as amended, (“Rule 16b-3”) or one or more
directors that fail to meet the requirements for service on a compensation committee as set forth in the listing standards of the exchange or market on which the Common Stock primarily trades shall not invalidate any of the actions of the Committee.
Any member of the Committee that is not an outside director, as such term is defined, is referred to in this paragraph as an “Abstaining Director” with respect to any action by the Committee, for which Code Section 162(m) requires the
approval of a committee consisting solely of outside directors. Any member of the Committee that is not a non-employee director, as such term is defined, is referred to in this paragraph as an “Abstaining Director” with respect to any
action by the Committee for which Rule 16b-3 requires the approval of a committee consisting solely of non-employee directors. Any member of the Committee that fails to meet the requirements of the listing standards of the exchange or market on
which the Common Stock primarily trades is referred to in this paragraph as an “Abstaining Director” with respect to any action by the Committee that requires the approval of a committee consisting solely of directors meeting those
requirements. An Abstaining Director shall be deemed to have abstained from such action (notwithstanding any statement to the contrary which may be contained in minutes of a meeting of the Committee) and the assent of any such director shall be
ignored for purposes of determining whether or not any such actions were approved by the Committee. If the Committee proposes to take an action by unanimous consent in lieu of a meeting, an Abstaining Director shall be deemed to not be a member of
the Committee for the purpose of such consent with respect to any actions for which such member is deemed to be an Abstaining Director. A majority of the members of the Committee may determine its actions and fix the time and place of its meetings.

 If no Committee is appointed, the Board of Directors will have all the powers, duties and responsibilities of the Committee
as set forth in this Plan. In addition, the Board of Directors may abolish a Committee and assume the duties and responsibilities of the Committee at any time by resolution duly adopted by the Board of Directors. 

The Committee shall have full power and authority, subject to such orders or resolutions not inconsistent with the provisions of the Plan
as may from time to time be adopted by the Board, to (a) select the Employees of the Company to whom Awards may from time to time be granted hereunder; (b) determine the type or types of Award to be granted to each Recipient hereunder;
(c) determine the number of Common Stock to be covered by or relating to each Award granted hereunder; (d) determine the terms and conditions, not inconsistent with the provisions of the Plan, of any Award granted hereunder;
(e) determine whether, to what extent and under what circumstances Awards may be settled in cash, Shares or other property or canceled or suspended, consistent with the terms of the Plan; (f) determine whether, to what extent, and under
what circumstances payment of cash, Shares, other property and other amounts payable with respect to an Award made under the Plan shall be deferred either automatically or at the 

  
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election of the Participant, consistent with the terms of the Plan; (g) interpret and administer the Plan and any instrument or agreement entered into under the Plan; (h) establish such
rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (i) make any other determination and take any other action that the Committee deems necessary or desirable for
administration of the Plan. The Committee may, in its sole and absolute discretion, and subject to the provisions of the Plan, from time to time delegate any or all of its authority to administer the Plan to any other persons or committee as it
deems necessary or appropriate for the proper administration of the Plan, except that no such delegation shall be made in the case of Awards intended to be qualified under Code Section 162(m). The decisions of the Committee shall be final,
conclusive and binding with respect to the interpretation and administration of the Plan and any grant made under it. The Committee shall make, in its sole discretion, all determinations arising in the administration, construction or interpretation
of the Plan and Awards under the Plan, including the right to construe disputed or doubtful Plan or Award terms and provisions, and any such determination shall be conclusive and binding on all persons, except as otherwise provided by law.

 Except as may disqualify the applicability of Code Section 162(m), the Committee shall be authorized to make adjustments
in Performance Goals criteria or in the terms and conditions of other Awards in recognition of unusual or nonrecurring events affecting the Company or its financial statements or changes in applicable laws, regulations or accounting principles. The
Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry it into effect. In the event that the Company shall assume outstanding
employee benefit awards or the right or obligation to make future such awards in connection with the acquisition of or combination with another corporation or business entity, the Committee may, in its discretion, make such adjustments in the terms
of Awards under the Plan as it shall deem appropriate. 
 ARTICLE VI 

STOCK OPTION TERMS AND CONDITIONS 
 Stock Options may be awarded pursuant to this Plan in accordance with the following terms and conditions. 
 6.1 Requirement for a Written Option Agreement. Each Stock Option will be evidenced by a written Option Agreement. The Committee, from time to time, will determine the form of Option
Agreement to be used for purposes of evidencing Stock Options awarded pursuant to this Plan. Except as provided in Section 12.2 of Article XII, the terms of the Option Agreement evidencing a Stock Option must be consistent with this Plan,
including but not limited to this Article VI. Any inconsistencies between any Option Agreement and this Plan will be resolved in accordance with the terms and conditions specified in this Plan. Except as expressly required by this Article VI, the
terms and conditions of each Stock Option do not need to be identical. 
 6.2 Who may be Awarded a Stock Option. A
Stock Option may be awarded to any Employee, any director of the Company or of any Subsidiary and any other individual who, in the judgment of the Committee, has performed or will perform, in whatever capacity, services important to the management,
operation and development of the business of the Company or an of its Subsidiaries. The Committee, in its sole discretion, shall determine when and to whom Stock Options are awarded pursuant to this Plan. In addition, substitute Stock Options may be
awarded pursuant to Section 12.2 of Article XII to persons who were employees, directors, or independent contractors or former employees, directors or independent contractors of an Acquired Company. 

6.3 Number of Shares Covered by a Stock Option. The Committee, in its sole discretion, shall determine the number of shares
of Common Stock covered by each Stock Option awarded pursuant to this Plan. The number of shares covered by each Stock Option shall be specified in the Option Agreement. 
 6.4 Vesting Under a Stock Option. The Committee, in its sole discretion, shall determine whether a Stock Option is immediately exercisable as to all of the shares of Common Stock covered by
such option or whether it is exercisable only in accordance with a time-based vesting schedule, Performance Goals or a combination of the foregoing, all as determined by the Committee. Any such vesting terms and conditions shall be specified in the
Option Agreement. Notwithstanding any term to the contrary in any Option Agreement, a Stock Option that is awarded to a person who, at the time of the Award, was an executive officer of the Company will not become exercisable until after six
(6) months from the date of such Award unless the Award was approved either by (i) a committee of non-employee directors within the requirements of Rule 16b-3 or (ii) the full Board of Directors. 

  
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 6.5 Exercise Price of a Stock Option. The Exercise Price for each Stock Option
will be at least 100% of the Fair Market Value of a share of Common Stock as of the date on which the Stock Option was awarded. However, if it is subsequently determined that the Exercise Price as stated in the Option Agreement evidencing a Stock
Option is less than 100% of the Fair Market Value of a share of Common Stock as of the date on which an option was awarded, such fact will not invalidate the Stock Option. 
 6.6 Duration of a Stock Option—Generally. The Committee, in its sole discretion, will determine the term of each Stock Option provided that such term will not exceed 10 years from the
date on which such option was awarded. The term of each Stock Option shall be set forth in the Option Agreement. The Recipient shall have no further right to exercise a Stock Option following the expiration of such term. 

6.7 The Effect of Termination of the Recipient’s Service with the Company on the Term of a Stock Option. If a
Recipient’s Service with the Company terminates for any reason other than as a result of the Recipient dying or becoming Disabled (as provided for in Section 6.9 and Section 6.10, respectively), all Stock Options that have been
awarded to such Recipient shall terminate to the extent that they are not exercised within 30 days following the date the Recipient ceased to be in Service with the Company, unless provided otherwise in the Option Agreement. The foregoing provision
will not extend the time within which a Stock Option may be exercised beyond the expiration of the term of such option and no additional vesting shall occur after the date the Recipient’s Service with the Company terminated. 

6.8 The Effect of a Leave of Absence on a Stock Option. Unless otherwise provided in the Option Agreement evidencing a
Stock Option, a Recipient’s Service shall not be deemed to have terminated if the Recipient is on sick leave, family leave, military leave or any other leave of absence that is approved by the Committee. The Committee, in its sole discretion,
may determine whether a Stock Option shall continue to vest during any sick leave, family leave, military leave or other approved leave of absence. 
 6.9 The Effect of the Death of a Recipient on the Term of a Stock Option. If a Recipient’s Service with the Company terminates as a result of the Recipient’s death, all Stock
Options that have been awarded to such Recipient will terminate to the extent that they are not previously exercised within 12 months following the date of the Recipient’s death. The foregoing provision will not extend the time within which a
Stock Option may be exercised beyond the expiration of the term of such option and no additional vesting shall occur after the date the Recipient’s death. 
 6.10 The Effect of the Disability of a Recipient on the Term of a Stock Option. If a Recipient’s Service with the Company terminates as a result of the Recipient becoming Disabled, all
Stock Options that have been awarded to such Recipient shall terminate to the extent that they are not exercised within 12 months following the date of the Recipient becoming Disabled. The foregoing provision will not extend the time within which a
Stock Option may be exercised beyond the expiration of the term of such option and no additional vesting shall occur after the date the Recipient became Disabled. 
 6.11 Options Intended Not to Qualify as Incentive Stock Options. Stock Options issued pursuant to this Plan are not intended to qualify as incentive stock options within the meaning of Code
Section 422 . 
 ARTICLE VII 
 STOCK-SETTLED SARS TERMS AND CONDITIONS 
 Stock-Settled SARS may be awarded
pursuant to this Plan in accordance with the following terms and conditions. 
 7.1 Requirement for a Written
Stock-Settled SAR Agreement. Each Stock-Settled SAR will be evidenced by a written Stock-Settled SAR Agreement. The Committee, from time to time, will determine the form of Stock-Settled SAR Agreement to be used for purposes of evidencing
Stock-Settled SARs awarded pursuant to this Plan. Except as provided in Section 12.2 of Article XII, the terms of the Stock-Settled SAR Agreement must be consistent with this Plan, including but not limited to this Article VII. Any
inconsistencies between any Stock-Settled SAR Agreement and this Plan will be resolved in accordance with the terms and conditions specified in this Plan. Except as expressly required by this Article VII, the terms and conditions of each
Stock-Settled SAR do not need to be identical. 
 7.2 Who may be Awarded a Stock-Settled SAR. A Stock-Settled SAR
may be awarded to any Employee, any director of the Company or of a Subsidiary and any other individual who, in the judgment of the Committee, has performed or will perform, in whatever capacity, services important to the management, operation and
development of the business of the Company or any of Subsidiaries. The Committee, in its sole discretion, shall determine when and to whom Stock-Settled SARs are awarded pursuant to this Plan. In addition, substitute Stock Settled SARs may be
awarded pursuant to Section 12.2 of Article XII to persons who were employees, directors, or independent contractors or former employees, directors or independent contractors of an Acquired Company. 

  
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 7.3 Number of Shares Covered by a Stock-Settled SAR. The Committee, in its
sole discretion, shall determine the number of shares of Common Stock covered by each Stock-Settled SAR awarded pursuant to this Plan. The number of shares covered by each Stock-Settled SAR shall be specified in the Stock-Settled SAR Agreement.

 7.4 Vesting Under a Stock-Settled SAR. The Committee, in its sole discretion, shall determine whether a
Stock-Settled SAR is immediately exercisable as to all of the shares of Common Stock covered by the Stock-Settled SAR or whether it is exercisable only in accordance with a time-based vesting schedule, Performance Goals or a combination of the
foregoing, all as determined by the Committee. Any such vesting terms and conditions shall be specified in the Stock-Settled SAR Agreement. Notwithstanding any term to the contrary in any Stock-Settled SAR Agreement, a Stock-Settled SAR that is
awarded to a person who, at the time of the Award, was an executive officer of the Company will not become exercisable until after six (6) months from the date of such Award unless the Award was approved either by (i) a committee of
non-employee directors within the requirements of Rule 16b-3 or (ii) the full Board of Directors. 
 7.5 Exercise
Price of a Stock-Settled SAR. The Exercise Price for each Stock-Settled SAR will be at least 100% of the Fair Market Value of a share of Common Stock as of the date on which the Stock-Settled SAR was awarded. However, if it is subsequently
determined that the Exercise Price as stated in the Stock-Settled SAR Agreement evidencing a Stock-Settled SAR is less than 100% of the Fair Market Value of a share of Common Stock as of the date on which an option was awarded, such fact will not
invalidate the Stock-Settled SAR. 
 7.6 Effect of Exercise of a Stock-Settled SAR. Exercise of a Stock-Settled
SAR results in the Recipient receiving net shares of Common Stock with an aggregate Fair Market Value as of the date of such exercise equal to (i) the difference between the Fair Market Value of a share of Common Stock as of the exercise date
minus the Exercise Price of the SAR, multiplied by (ii) the number of shares covered by the Stock-Settled SAR as to which it is being exercised, rounded down to the nearest whole number. A Stock-Settled SAR may be exercised as to all of the
shares covered by it or may be exercised only in part. 
 7.7 Duration of a Stock-Settled
SAR—Generally. The Committee, in its sole discretion, will determine the term of each Stock-Settled SAR provided that such term will not exceed 10 years from the date on which such option was awarded. The term of each Stock-Settled SAR
shall be set forth in the Stock-Settled SAR Agreement. The Recipient shall have no further right to exercise a Stock-Settled SAR following the expiration of such term. 
 7.8 The Effect of Termination of the Recipient’s Service with the Company on the Term of a Stock-Settled SAR. If a Recipient’s Service with the Company terminates for any reason
other than as a result of the Recipient dying or becoming Disabled (as provided for in Section 7.10 and Section 7.11, respectively), all Stock-Settled SARs that have been awarded to such Recipient shall terminate to the extent that they
are not exercised within 30 days following the date the Recipient ceased to be in Service with the Company, unless provided otherwise in the Stock-Settled SAR Agreement. The foregoing provision will not extend the time within which a Stock-Settled
SAR may be exercised beyond the expiration of the term of such option and no additional vesting shall occur after the date the Recipient’s Service with the Company terminated. 

7.9 The Effect of a Leave of Absence on a Stock-Settled SAR. Unless otherwise provided in the Stock-Settled SAR Agreement
evidencing a Stock Option, a Recipient’s Service shall not be deemed to have terminated if the Recipient is on sick leave, family leave, military leave or any other leave of absence that is approved by the Committee. The Committee, in its sole
discretion, may determine whether a Stock-Settled SAR shall continue to vest during any sick leave, family leave, military leave or other approved leave of absence. 
 7.10 The Effect of the Death of a Recipient on the Term of a Stock-Settled SAR. If a Recipient’s Service with the Company terminates as a result of the Recipient’s death, all
Stock-Settled SARs that have been awarded to such Recipient will terminate to the extent that they are not previously exercised within 12 months following the date of the Recipient’s death. The foregoing provision will not extend the time
within which a Stock-Settled SAR may be exercised beyond the expiration of the term of such option and no additional vesting shall occur after the date the Recipient’s death. 

7.11 The Effect of the Disability of a Recipient on the Term of a Stock-Settled SAR. If a Recipient’s Service with the
Company terminates as a result of the Recipient becoming Disabled, all Stock-Settled SARs that have been awarded to such Recipient shall terminate to the extent that they are not exercised within 12 months

  
 8 

 
following the date of the Recipient becoming Disabled. The foregoing provision will not extend the time within which a Stock-Settled SAR may be exercised beyond the expiration of the term of such
option and no additional vesting shall occur after the date the Recipient became Disabled. 
 ARTICLE VIII 

EXERCISE OF STOCK OPTIONS AND STOCK SETTLED SARS 
 8.1 Notice of Exercise. A Stock Option or a Stock-Settled SAR may be exercised only by delivery to the Company of written notice directed to the President of the Company (or such other
person as the Company may designate) at the principal business office of the Company. The notice will specify (i) the number of shares of Common Stock being purchased, (ii) the method of payment of the Exercise Price of a Stock Option,
(iii) the method of payment of the Tax Withholding if required, and (iv), unless a registration under the Securities Act is in effect with respect to the Plan at the time of such exercise, the notice of exercise shall contain such
representations as the Company determines to be necessary or appropriate in order for the sale of shares of Common Stock being purchased pursuant to such exercise to qualify for exemptions from registration under the Securities Act and other
applicable state securities laws. If the date of expiration or termination of a Stock Option or Stock-Settled SAR falls on a day on which the principal business office of the Company is not open for business, the notice of exercise must be delivered
to the Company no later than the last business day prior to such expiration or termination date in order for the notice of exercise to be timely. 
 8.2 Payment of Exercise Price. No shares of Common Stock will be issued upon the exercise of any Stock Option unless and until payment or adequate provision for payment of the Exercise Price
of such shares has been made in accordance with this subsection. The Committee, in its sole discretion, may provide in any Option Agreement for the payment of the Exercise Price in cash (including by check), by delivery of a full-recourse promissory
note, by the delivery of shares of Common Stock or other securities issued by the Company in accordance with Section 13.7, by the application of shares that could be received upon exercise of the Stock Option in accordance with
Section 13.7, or by any combination of the foregoing. In the absence of such terms in the Option Agreement, the Exercise Price shall be paid in cash (including by check). The Committee, in its sole discretion, may permit a Recipient to elect to
pay the Exercise Price by authorizing a duly registered and licensed broker-dealer to sell the shares of Common Stock to be issued upon such exercise (or, at least, a sufficient portion thereof) and instructing such broker-dealer to immediately
remit to the Company a sufficient portion of the proceeds from such sale to pay the entire Exercise Price. 
 8.3 Payment
of Tax Withholding Amounts. Upon the exercise of any Stock Option (except Incentive Stock Options issued under previous plans) or Stock-Settled SAR (including any Stock Option or Stock-Settled SAR transferred by the Recipient pursuant to
Section 13.5), either with the delivery of the notice of exercise or upon notification of the amount due, each Recipient must pay to the Company or make adequate provision for the payment of all Tax Withholding, if any. The Option Agreement or
Stock-Settled SAR Agreement may provide for, or the Committee, in its sole discretion, may allow, the Recipient to pay the Tax Withholding (i) in cash (including by check), (ii) by the Company withholding such amount from other amounts
payable by the Company to the Recipient, including salary, (iii) by delivery of shares of Common Stock or other securities of the Company in accordance with Section 13.7, (iv) by the application of shares that could be received upon
exercise of the Stock Option or Stock-Settled SAR in accordance with Section 13.7 but only up to the minimum statutorily required tax withholding amounts, or (v) any combination of the foregoing. In the absence of such terms in the Option
Agreement or Stock Settled SAR Agreement, the Tax Withholding shall be paid in cash (including by check) or the Committee may authorize payment or provision for the Tax Withholding by any other means permitted by this Section 8.3. 

By receiving and upon exercise of a Stock Option or a Stock-Settled SAR, the Recipient shall be deemed to have consented to the Company
withholding the amount of any Tax Withholding from any amounts payable by the Company to the Recipient. The Committee, in its sole discretion, may permit a Recipient to elect to pay the Tax Withholding by authorizing a duly registered and licensed
broker-dealer to sell the shares to be issued upon such exercise (or, at least, a sufficient portion thereof) and instructing such broker-dealer to immediately remit to the Company a sufficient portion of the proceeds from such sale to pay the Tax
Withholding. No shares will be issued upon an exercise of a Stock Option or a Stock-Settled SAR unless and until payment or adequate provision for payment of the Tax Withholding has been made. If, either as a result of the exercise of a Stock Option
or a Stock-Settled SAR or the subsequent disqualifying disposition of shares acquired through such exercise, the Company determines that additional Tax Withholding was or has become required beyond any amount paid or provided for by the Recipient,
the Recipient will pay such additional amount to the Company immediately upon demand by the Company. If the Recipient fails to pay the amount demanded, the Company may withhold that amount from other amounts payable by the Company to the Recipient,
including salary. 

  
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 8.4 Issuance of Shares. Notwithstanding the good faith compliance by the
Recipient with all of the terms and conditions of an Option Agreement and with this Article VIII, the Recipient will not become a shareholder and will have no rights as a shareholder with respect to the shares covered by such Stock Option until the
issuance of shares pursuant to the exercise of such Stock Option is recorded on the stock transfer record of the Company. The Company will not unreasonably delay the issuance of a stock certificate and shall exercise reasonable efforts to cause such
stock certificate to be issued to the Recipient as soon as is practicable after the compliance by the Recipient with all of the terms and conditions of the Option Agreement and with this Article VIII. In addition, when the payment of the Exercise
Price is permitted under Section 8.2 to be remitted to the Company by a broker-dealer in connection with the sale of some or all of the shares covered by the Stock Option, the Recipient shall be considered a shareholder and to own the shares
being purchased by such exercise upon the Company receiving both the Recipient’s notice of exercise and the broker-dealer’s agreement to remit to the Company the Exercise Price in a form satisfactory to the Company in its sole discretion.

 ARTICLE IX 
 PERFORMANCE SHARE AWARDS 
 Performance Share Awards may be made pursuant to
this Plan in accordance with the following terms and conditions. 
 9.1 Requirement for a Written Share Vesting
Agreement. Each Performance Share Award will be evidenced by a Share Vesting Agreement. The Committee will determine from time to time the form of Share Vesting Agreement to be used to evidence Performance Share Awards made pursuant to this
Plan. Except as provided in Section 12.2 of Article XII, the terms of each Share Vesting Agreement must be consistent with this Plan. Any inconsistencies between any Share Vesting Agreement and this Plan will be resolved in accordance with the
terms and conditions specified in this Plan. Except as otherwise required by this Article IX, the terms and conditions of each Performance Share Award do not need to be identical. 

9.2 Who May Receive a Performance Share Award. A Performance Share Award may be made to any Employee, any director of the
Company or of a Subsidiary and any other individual who, in the judgment of the Committee, has performed or will perform, in whatever capacity, services important to the management, operation and development of the business of the Company or any of
Subsidiaries. The Committee, in its sole discretion, shall determine when and to whom Performance Share Awards are awarded pursuant to this Plan. In addition, substitute Performance Share Awards may be awarded pursuant to Section 12.2 of
Article XII to persons who were employees, directors, or independent contractors or former employees, directors or independent contractors of an Acquired Company. 
 9.3 Number of Shares Covered by a Performance Share Award. The Committee, in its sole discretion, shall determine the number of shares of Common Stock covered by each Performance Restricted
Share Award made pursuant to this Plan. The Share Vesting Agreement shall specify the number of shares of Common Stock covered by such Performance Share Award. 
 9.4 What the Recipient Must Deliver to Receive a Performance Share Award. The Committee, in its sole discretion, will determine whether the Recipient, in order to receive the Performance
Share Award, must make a payment, either in cash (including by check), by delivery of a promissory note or by delivery of other securities of the Company (including options to purchase securities of the Company), to the Company of all or some
portion of the Fair Market Value of the shares of Common Stock covered by the Performance Share Award. To the extent that the sum of any cash payment, any promissory note and any other securities received by the Company from the Recipient in
connection with a Performance Share Award is less than the Fair Market Value of the shares of Common Stock covered by such Performance Share Award determined as of the date of such Award, the shares of Common Stock covered by the Performance Share
Award shall be deemed to have been issued by the Company for services rendered by the Recipient. 
 9.5 Vesting Under a
Performance Share Award. The Committee, in its sole discretion, shall determine the Performance Goals and other terms and conditions, if any, upon which shares covered by any Performance Share Award shall vest. The Share Vesting Agreement
evidencing a Performance Share Award shall specify the Performance Goals and other vesting terms and conditions. Unvested shares covered by a Performance Share Award may not be transferred by the Recipient under any condition without the prior
written consent of the Committee, which consent may be withheld in its sole discretion. 

  
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 9.6 Right to Repurchase Unvested Shares upon Certain Conditions. The Share
Vesting Agreement shall specify the events upon the occurrence of which the Company shall have the right to repurchase from the Recipient any or all of the Recipient’s unvested shares and the period during which the Company must exercise this
right following the occurrence of the event. The Share Vesting Agreement shall also specify the “Repurchase Price Per Share” that the Company shall pay to the Recipient upon exercise of its right to repurchase unvested shares and the terms
of such payment. If not otherwise specified in the Share Vesting Agreement, the right to repurchase must be exercised within forty-five (45) days after the Company receives from the Recipient written notice of the occurrence of the event, the
repurchase price shall be $0.001 per share and the repurchase price shall be payable to the Recipient in cash (including by check) within ten (10) days after the date on which the right to repurchase the shares is exercised. Any right of the
Company to repurchase unvested shares may be assigned by the Company in its sole discretion without notice to, or the prior consent of, the Recipient. Every Share Vesting Agreement evidencing a Performance Share Award shall contain or shall be
deemed to contain a blank stock power pursuant to which the Recipient authorizes the Company or its transfer agent to transfer ownership of unvested shares from the Recipient to the Company or its assigns upon the right to repurchase being
exercised. 
 9.7 Payment of Tax Withholding Amounts. Upon the vesting of shares under a Performance Share Award
(including any Performance Share Award transferred by the Recipient pursuant to Section 13.5) or upon the Recipient making a valid election under Code Section 83(b), each Recipient must pay to the Company or make adequate provision for the
payment of all Tax Withholding, if any. The Share Vesting Agreement may provide for, or the Committee, in its sole discretion, may allow the Recipient to pay the Tax Withholding (i) in cash (including by check), (ii) by the Company
withholding such amount from other amounts payable by the Company to the Recipient, including salary, (iii) by delivery of shares of Common Stock or other securities of the Company in accordance with Section 13.7, (iv) by the
application of vested shares under the Performance Share Award in accordance with Section 13.7 but only up to the minimum statutorily required tax withholding amounts, or (v) any combination of the foregoing. In the absence of such terms
in the Share Vesting Agreement, the Tax Withholding shall be paid in cash (including by check) or the Committee may authorize payment or provision for the Tax Withholding by any other means permitted by this Section 9.7. 

By receiving and upon exercise of a Performance Share Award, the Recipient shall be deemed to have consented to the Company withholding
the amount of any Tax Withholding from any amounts payable by the Company to the Recipient. The Committee, in its sole discretion, may permit a Recipient to elect to pay the Tax Withholding by authorizing a duly registered and licensed broker-dealer
to sell the shares to be issued upon such exercise (or, at least, a sufficient portion thereof) and instructing such broker-dealer to immediately remit to the Company a sufficient portion of the proceeds from such sale to pay the Tax Withholding. No
shares will be delivered in response to a request to deliver vested shares unless and until payment or adequate provision for payment of the Tax Withholding has been made. If the Company later determines that additional Tax Withholding was or has
become required beyond any amount paid or provided for by the Recipient, the Recipient will pay such additional amount to the Company immediately upon demand by the Company. If the Recipient fails to pay the amount demanded, the Company may withhold
that amount from other amounts payable by the Company to the Recipient, including salary. 
 9.8 Rights as a Shareholder,
Legends on Certificates, Escrow of Unvested Shares and Delivery of Vested Shares Covered by a Performance Share Award. As soon as is practicable after a Performance Stock Award is awarded by the Company, the Company will issue one or
more stock certificates in the name of the Recipient for the shares covered by a Performance Share Award. For such time as and to the extent that the shares covered by a Performance Share Award remain unvested, the Company may place a restrictive
legend on any stock certificate evidencing such shares, may give stop transfer instructions to the Company’s transfer agent and may place the stock certificates in escrow with the Company or an agent of the Company. Upon the vesting of shares
covered by a Performance Share Award, the Recipient by notice, in such form as the Company may reasonably request, directed to the President of the Company (or such other person as the Company may designate) at the principal business office of the
Company request that a stock certificate covering such vested shares be issued in the name of the Recipient and delivered in accordance with such instructions as the Recipient may reasonably request. 

  
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 ARTICLE X 
 RESTRICTED SHARE AWARDS 
 Restricted Share Awards may be made pursuant to
this Plan in accordance with the following terms and conditions. 
 10.1 Requirement for a Written Share Vesting
Agreement. Each Restricted Share Award will be evidenced by a Share Vesting Agreement. The Committee will determine from time to time the form of Share Vesting Agreement to be used to evidence Restricted Share Awards made pursuant to this
Plan. Except as provided in Section 12.2 of Article XII, the terms of each Share Vesting Agreement must be consistent with this Plan. Any inconsistencies between any Share Vesting Agreement and this Plan will be resolved in accordance with the
terms and conditions specified in this Plan. Except as otherwise required by this Article X, the terms and conditions of each Restricted Share Award do not need to be identical. 

10.2 Who May Receive a Restricted Share Award. A Restricted Share Award may be made to any Employee, any director of the
Company or of a Subsidiary and any other individual who, in the judgment of the Committee, has performed or will perform, in whatever capacity, services important to the management, operation and development of the business of the Company or any of
Subsidiaries. The Committee, in its sole discretion, shall determine when and to whom Restricted Share Awards are awarded pursuant to this Plan. In addition, substitute Restricted Share Awards may be awarded pursuant to Section 12.2 of Article
XII to persons who were employees, directors, or independent contractors or former employees, directors or independent contractors of an Acquired Company. 
 10.3 Number of Shares Covered by a Restricted Share Award. The Committee, in its sole discretion, shall determine the number of shares of Common Stock covered by each Restricted Share Award
made pursuant to this Plan. The Share Vesting Agreement shall specify the number of shares of Common Stock covered by such Restricted Share Award. 
 10.4 What the Recipient Must Deliver to Receive a Restricted Share Award. The Committee, in its sole discretion, will determine whether the Recipient, in order to receive the Restricted
Share Award, must make a payment, either in cash (including by check), by delivery of a promissory note or by delivery of other securities of the Company (including options to purchase securities of the Company), to the Company of all or some
portion of the Fair Market Value of the shares of Common Stock covered by the Restricted Share Award. To the extent that the sum of any cash payment, any promissory note and any other securities received by the Company from the Recipient in
connection with a Restricted Share Award is less than the Fair Market Value of the shares of Common Stock covered by such Restricted Share Award determined as of the date of such Award, the shares of Common Stock covered by the Restricted Share
Award shall be deemed to have been issued by the Company for services rendered by the Recipient. 
 10.5 Vesting Under a
Restricted Share Award. The Committee, in its sole discretion, shall determine the terms and conditions upon which shares covered by any Restricted Share Award shall vest. The Share Vesting Agreement shall specify the vesting schedule.
Unvested shares covered by a Restricted Share Award may not be transferred by the Recipient under any condition without the prior written consent of the Committee, which consent may be withheld in its sole discretion. 

10.6 Right to Repurchase Unvested Shares upon Certain Conditions. The Share Vesting Agreement shall specify the events upon
the occurrence of which the Company shall have the right to repurchase from the Recipient any or all of the Recipient’s unvested shares and the period during which the Company must exercise this right following the occurrence of the event. The
Share Vesting Agreement shall also specify the “Repurchase Price Per Share” that the Company shall pay to the Recipient upon exercise of its right to repurchase unvested shares and the terms of such payment. If not otherwise specified in
the Share Vesting Agreement, the right to repurchase must be exercised within forty-five (45) days after the Company receives from the Recipient written notice of the occurrence of the event, the repurchase price shall be $0.001 per share and
the repurchase price shall be payable to the Recipient in cash (including by check) within ten (10) days after the date on which the right to repurchase the shares is exercised. Any right of the Company to repurchase unvested shares may be
assigned by the Company in its sole discretion without notice to, or the prior consent of, the Recipient. Every Share Vesting Agreement evidencing a Restricted Share Award shall contain or shall be deemed to contain a blank stock power pursuant to
which the Recipient authorizes the Company or its transfer agent to transfer ownership of unvested shares from the Recipient to the Company or its assigns upon the right to repurchase being exercised. 

  
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 10.7 Payment of Tax Withholding Amounts. Upon the vesting of shares under a
Restricted Share Award (including any Restricted Share Award transferred by the Recipient pursuant to Section 13.5) or upon the Recipient making a valid election under Code Section 83(b), each Recipient must pay to the Company or make
adequate provision for the payment of all Tax Withholding, if any. The Share Vesting Agreement may provide for, or the Committee, in its sole discretion, may allow the Recipient to pay the Tax Withholding (i) in cash (including by check),
(ii) by the Company withholding such amount from other amounts payable by the Company to the Recipient, including salary, (iii) by delivery of shares of Common Stock or other securities of the Company in accordance with Section 13.7,
(iv) by the application of vested shares under the Restricted Share Award in accordance with Section 13.7 but only up to the minimum statutorily required tax withholding amounts, or (v) any combination of the foregoing. In the absence
of such terms in the Share Vesting Agreement, the Tax Withholding shall be paid in cash (including by check) or the Committee may authorize payment or provision for the Tax Withholding by any other means permitted by this Section 10.7.

 By receiving and upon exercise of a Restricted Share Award, the Recipient shall be deemed to have consented to the Company
withholding the amount of any Tax Withholding from any amounts payable by the Company to the Recipient. The Committee, in its sole discretion, may permit a Recipient to elect to pay the Tax Withholding by authorizing a duly registered and licensed
broker-dealer to sell the shares to be issued upon such exercise (or, at least, a sufficient portion thereof) and instructing such broker-dealer to immediately remit to the Company a sufficient portion of the proceeds from such sale to pay the Tax
Withholding. No shares will be delivered in response to a request to deliver vested shares unless and until payment or adequate provision for payment of the Tax Withholding has been made. If the Company later determines that additional Tax
Withholding was or has become required beyond any amount paid or provided for by the Recipient, the Recipient will pay such additional amount to the Company immediately upon demand by the Company. If the Recipient fails to pay the amount demanded,
the Company may withhold that amount from other amounts payable by the Company to the Recipient, including salary. 
 10.8
Rights as a Shareholder, Legends on Certificates, Escrow of Unvested Shares and Delivery of Vested Shares Covered by a Restricted Share Award. As soon as is practicable after a Restricted Stock Award is awarded by the Company, the Company
will issue one or more stock certificates in the name of the Recipient for the shares covered by a Restricted Share Award. For such time as and to the extent that the shares covered by a Restricted Share Award remain unvested, the Company may place
a restrictive legend on any stock certificate evidencing such shares, may give stop transfer instructions to the Company’s transfer agent and may place the stock certificates in escrow with the Company or an agent of the Company. Upon the
vesting of shares covered by a Restricted Share Award, the Recipient by notice, in such form as the Company may reasonably request, directed to the President of the Company (or such other person as the Company may designate) at the principal
business office of the Company request that a stock certificate covering such vested shares be issued in the name of the Recipient and delivered in accordance with such instructions as the Recipient may reasonably request. 

ARTICLE XII 

RESTRICTED STOCK UNIT AWARDS 
 Restricted Stock Unit Awards may be made pursuant to this Plan in accordance with the following terms and conditions. 
 11.1 Restricted Stock Units. Restricted Stock Units are designated in shares of Common Stock. 
 11.2 Restricted Stock Unit Agreement. Each Restricted Stock Unit Award under the Plan shall be evidenced by a Restricted Stock Unit Agreement between the recipient and the Company. Such Restricted
Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms of the applicable Restricted Stock Unit Agreement that are not inconsistent with the Plan. Any inconsistencies between any Restricted Stock Unit
Agreement and this Plan will be resolved in accordance with the terms and conditions specified in this Plan. Except as otherwise required by this Article XI, the terms and conditions of each Restricted Stock Unit Award do not need to be identical.

 11.3 Who May Receive a Restricted Stock Unit Award. A Restricted Stock Unit Award may be made to any Employee,
any director of the Company or of a Subsidiary and any other individual who, in the judgment of the Committee, has performed or will perform, in whatever capacity, services important to the management, operation and development of the business of
the Company or any of Subsidiaries. The Committee, in its sole discretion, shall determine when and to whom Restricted Stock Unit Awards are awarded pursuant to this Plan. In addition, substitute Restricted Stock Unit Awards may be awarded pursuant
to Section 12.2 of Article XII to persons who were employees, directors, or independent contractors or former employees, directors or independent contractors of an Acquired Company. 

  
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 11.4 Number of Shares Covered by a Restricted Stock Unit Award. The Committee,
in its sole discretion, shall determine the number of shares of Common Stock covered by each Restricted Stock Unit Award made pursuant to this Plan. The Restricted Stock Unit Agreement shall specify the number Restricted Stock Units covered by such
Restricted Stock Unit Award. 
 11.5 Payment for Awards. No cash consideration shall be required of any Recipient of a
Restricted Stock Unit Award. 
 11.6 Vesting Under a Restricted Stock Unit Award. The Committee, in its sole
discretion, shall determine the terms and conditions upon which shares covered by any Restricted Stock Unit Award shall vest. The Restricted Stock Unit Agreement shall specify the vesting schedule. Unvested Restricted Stock Units covered by a
Restricted Stock Unit Award may not be transferred by the Recipient under any condition. Vesting may be based on service or on performance, or on any combination of service and performance. 

11.7 Dividend Equivalent Rights. Shares underlying an Award of Restricted Stock Units shall be entitled to dividend equivalent
rights if and as provided for under a Restricted Stock Unit Agreement. 
 11.8 No Voting Rights. Shares underlying an
Award of Restricted Stock Units shall have no voting rights with respect to such Restricted Stock Units. 

11.9 Form and Time of Settlement of Restricted Stock Unit Awards. Settlement of vested Restricted Stock Units
shall be made in the form of shares of Common Stock. Vested Restricted Stock Units generally shall be fully settled as soon as practicable after they become vested, but not later than the later of (i) two and one half (2 1/2) months after the end of the Company’s fiscal year during in
which all vesting conditions applicable to the Restricted Stock Units have been satisfied or have lapsed or (ii) March 15 following the calendar year in which all vesting conditions applicable to the Restricted Stock Units have been
satisfied or have lapsed. Until an Award of Restricted Stock Units is settled, the number of such Restricted Stock Units shall be subject to adjustment pursuant to Article 12. 

11.10 Creditors’ Rights. A holder of Restricted Stock Units shall have no rights other than those of a general creditor of
the Company. Restricted Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Restricted Stock Unit Agreement. 

11.11 Payment of Tax Withholding Amounts. Upon the vesting of shares under a Restricted Stock Unit Award (including any
Restricted Stock Unit Award transferred by the Recipient pursuant to Section 13.5), each Recipient must pay to the Company or make adequate provision for the payment of all Tax Withholding, if any. By receiving and upon exercise of a Restricted
Stock Unit Award, the Recipient shall be deemed to have consented to the Company withholding the amount of any Tax Withholding from any amounts payable by the Company to the Recipient under such Restricted Stock Unit Award. The Committee may
condition the delivery of any shares or other benefits under the Restricted Stock Unit Award on satisfaction of the applicable Tax Withholding obligations. If permitted by the Committee (in its sole discretion), such Tax Withholding obligations may
be satisfied (i) through cash payment by the Recipient; (ii) through the surrender of shares of Stock which the Recipient already owns; (iii) through the surrender of shares of Stock to which the Recipient is otherwise entitled under
the Plan, which will be sold on behalf of the Recipient to satisfy the applicable withholding tax, provided, however, that such shares under the preceding clause (ii) and this clause (iii) may be used to satisfy not more than the
Company’s statutory Tax Withholding obligation (based on minimum statutory withholding rates for federal, state, local and foreign tax purposes, including payroll taxes, that are applicable to such supplemental taxable income) or (iv) by
such other method as specified by the Committee. 

  
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 ARTICLE XII 
 CHANGES IN CAPITAL STRUCTURE, ACQUISITIONS AND CORPORATE TRANSACTIONS 

12.1 Effect of Changes in Capital Structure of the Company on the Number of Shares and Exercise Price. If the outstanding
shares of Common Stock are hereafter increased, decreased, changed into or exchanged for a different number or kind of shares of Common Stock or for other securities of the Company or of another corporation, by reason of any reorganization, merger,
consolidation, reclassification, stock split-up, combination of shares of Common Stock, or dividend payable in shares of Common Stock or other securities of the Company, the Committee will make such adjustment as it deems appropriate in the number
and kind of Authorized Shares. In addition, the Committee will make such adjustment in the number and kind of shares of Common Stock or other securities covered by outstanding Stock Options and outstanding Stock-Settled SARs and Restricted Stock
Units as well as make an adjustment in the Exercise Price of each outstanding Stock Option and Stock-Settled SAR as the Committee deems appropriate. The vesting terms of all Stock Option Agreements, Stock-Settled SAR Agreements, Restricted Stock
Unit Agreements and Share Vesting Agreements will also be adjusted as the Committee deems appropriate. Any determination by the Committee as to what adjustments may be made, and the extent thereof, will be final, binding on all parties and
conclusive. 
 12.2 Issuance of Substitute Awards in Connection with an Acquisition by the Company. In the event
of the acquisition of an Acquired Company by the Company or any Subsidiary, Awards (in any form) may be awarded by the Company in substitution for any outstanding unexercised stock options and any unvested share grants or unvested stock unit grants
of the Acquired Company. Such substitute Awards may deviate from the terms otherwise required by Article VI, Article VII, Article VIII, Article IX, Article X and Article XI of this Plan to the extent that the Committee, in
its sole discretion upon the advise of its advisors, determines that such non-conforming terms are required under applicable tax law, accounting principles or contractual requirements or are otherwise appropriate. 

12.3 Effect of the Occurrence of a Corporate Transaction on Continuing Rights. In the event of the occurrence of any
Corporate Transaction, all outstanding Stock Options and Stock-Settled SARs that were awarded pursuant to this Plan shall terminate effective as of the effective date of such transaction, unless and only to the extent that the terms and conditions
of the transaction expressly provide either (i) for the assumption of this Plan and the continuation of such Stock Options and Stock-Settled SARs or (ii) the issuance of substitute similar Awards under a plan of the acquiring or surviving
entity in such transaction. Each Recipient shall be provided written notice of the expected occurrence of any Corporate Transaction at least fifteen (15) days prior to the effective date and shall be permitted to tender a notice of exercise of
any Stock Option or Stock-Settled SAR in which exercise is conditioned upon the transaction actually occurring and, notwithstanding any provision of Article VIII or term of any Option Agreement, shall not be required to tender payment of the
Exercise Price or amounts that the Company may be required to withhold for tax purposes until after the occurrence of the transaction. The terms and conditions of the transaction may provide for the assumption of this Plan with respect only to
outstanding Performance Share Awards, Restricted Share Awards and Restricted Stock Unit Awards that have not fully vested and the assignment to and assumption by the surviving corporation of the rights and obligation of the Company under each
outstanding Share Vesting Agreement. The Option Agreements, Stock-Settled SAR Agreements, Share Vesting Agreements and Restricted Stock Unit Agreements that evidence Awards made under this Plan may, in the sole discretion of Committee, provide for
the acceleration of vesting, either in whole or in part, under the Award. In addition, the Committee shall have the power to accelerate the vesting of any Stock Option, Stock-Settled SAR, Performance Share Award, Restricted Share Award or Restricted
Stock Unit Award in its sole discretion at the time of a Corporate Transaction or conditioned upon the occurrence of an expected Corporate Transaction. 
 ARTICLE XIII 
 OTHER TERMS APPLICABLE TO ALL AWARDS 

13.1 Underwriters’ Lock-up. Each written agreement evidencing an Award will specify that the Recipient, by accepting
the Award agrees that whenever the Company undertakes a firmly underwritten public offering of its securities, the Recipient will, if requested to do so by the managing underwriter in such offering, enter into an agreement not to sell or dispose of
any securities of the Company owned or controlled by the Recipient provided that such restriction will not extend beyond 12 months from the effective date of the registration statement filed in connection with such offering and provided that all of
the then directors and executive officers of the Company are also requested to and do enter into a similarly restrictive agreement with the managing underwriter. 

  
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 13.2 No Rights to Continued Service. Nothing in this Plan nor in any written
agreement evidencing an Award will confer upon any Recipient any right to continued employment with the Company or to limit or affect in any way the right of the Company, in its sole discretion, to (a) terminate the employment of such Recipient
at any time, with or without cause, (b) change the duties of such Recipient, or (c) increase or decrease the compensation of the Recipient at any time, subject, in each instance to the terms of any written employment agreement between the
Company and such Recipient. Unless the written agreement evidencing an Award expressly provides otherwise, vesting under such agreement shall be conditioned upon: 
  

	 	1)	for Employees of the Company, the continued employment of the Recipient; 

  

	 	2)	for independent contractors, the Recipient continuing to provide services to the Company on substantially the same terms and conditions as such services were provided
at the time of the Award; or 

  

	 	3)	for directors who are not Employees, the Recipient continuing to serve as a director of the Company or a Subsidiary. 

Nothing in this Plan shall be construed as creating a contractual or implied right or covenant by the Company to continue such employment, service as an
independent contractor or service as a director. 
 13.3 Who May Exercise Rights with Respect to Awards. During a
Recipient’s lifetime, all rights with respect to an Award may only be exercised by the Recipient (including a legally appointed guardian or representative for the Recipient). 

13.4 Beneficiary Designations. Any Recipient of an Award may, during his or her lifetime, designate a person or persons who
may exercise the rights of that Recipient as to any Award made to such Recipient after the Recipient’s death. Any such designation shall be effective only if given in writing in a form and manner acceptable to the Committee and shall supercede
and revoke all prior designations. In the absence of an effective designation, any vested benefits with respect to Awards under this Plan that remain unpaid at the time of Recipient’s death shall be paid to the Recipient’s estate and,
subjected to the terms of this Plan and the applicable written agreement evidencing such Award, any unexercised rights of the Recipient with respect to an Award may be exercised by the administrator or executor of the Recipient’s estate.

 13.5 Limited Transferability of Awards. Unless the written agreement evidencing an Award expressly states that
the Award is transferable as provided in this Section 13.5, no Award granted under this Plan nor any interest therein may be sold, assigned, conveyed, gifted, pledge or otherwise transferred in any manner other than by will or the laws of
descent and distribution after the death of the Recipient. The foregoing prohibition on transferability is not intended to and shall not prohibit (i) the transfer of an Award to a trust in which the Recipient is considered the sole beneficial
owner under both Code Section 671 and applicable state law, (ii) a pledge of shares to be received upon exercise of a Stock Option as security for a loan that is used to pay the Exercise Price or the (iii) transfer of shares covered
by an Award after those shares are issued to the Recipient upon exercise of a Stock Option or Stock-Settled SAR or the delivery of the shares to the Recipient upon vesting of a Performance Share Award, a Restricted Share Award or a Restricted Stock
Unit Award provided, in each instance, that all other applicable restrictions on transfer of such shares (whether imposed by law, the listing requirements of an exchange on which shares of Common Stock are traded, the terms of this Plan, the written
agreement evidencing the Award or any share retention policy or share ownership guidelines of the Company that are applicable to the Recipient) have lapsed. Notwithstanding the foregoing, the Committee may make an Award of or amend the terms of an
outstanding Stock Option, Stock-Settled SAR, Performance Share Award, Restricted Share Award or Restricted Stock Unit Award to permit the transfer or assignment of an Award by means of a gift or court approved domestic relations order provided that
the transferees are limited to (x) any combination of the Recipient, the Recipient’s spouse or former spouse, or the Recipient’s children, (y) is made to a trust established for the exclusive benefit of one or more of the persons
identified in clause (x) in which the beneficiaries are prohibited from transferring or assigning their interests except for transfers to other persons identified in clause (x), or (z) a partnership, limited liability company or other
entity in which all equity ownership interests are owned by persons identified in clause (x) and in which such equity ownership interests cannot be transferred or assigned except for transfers to other persons identified in clause (x). Any
transfer of an Award permitted by this Section 13.5 shall be conditioned upon the Recipient and the transferee of such Award executing and delivering to the Company a form of Transfer and Assumption as the Committee may request.

  
 16 

 
Notwithstanding any transfer of an Award, the Recipient shall remain liable to the Company for any income tax withholding amounts that the Company is required to withhold at the time the Award
vests or is exercised or the shares subject to the Award are sold by the transferee. The Committee shall have sole discretion in determining whether or not an Award is transferable within the limitations set forth in this Section 13.5 and may
exercise that discretion with respect to certain Awards or certain Recipients without being bound to exercise that discretion in the same manner with respect to other similar Awards or other Recipients. Any purported assignment, transfer or
encumbrance that does not comply with the requirements of this Section 13.5 shall be void and unenforceable against the Company. 
 13.6 Repurchase of Awards. With the consent of the Recipient and upon approval of the Committee, the Company may from time-to-time repurchase Awards by payment in cash in an amount equal to
the net Fair Market Value of the vested shares covered by the Award less any Exercise Price. Although the Committee is authorized by this Plan to make such repurchases, Awards shall not be made with the expectation that they will be repurchased for
cash and no Recipient shall have the right to cause the Company to repurchase any Award without the consent of the Committee, which consent can be withheld by the Committee in its sole discretion. 

13.7 Payment of Exercise Price or Tax Withholding with Other Securities. To the extent permitted in Section 8.2, the
Exercise Price and, to the extent permitted by Section 8.3, Section 9.7 and Section 10.7, above, the Tax Withholding may be paid by the surrender of shares of Common Stock or other securities of the Company. Payment shall be made by
either (i) delivering to the Company the certificates or instruments representing such shares of Common Stock or other securities, duly endorsed for transfer, or (ii) delivering to the Company an attestation in such form as the Company may
deem appropriate with respect to the Recipient’s ownership of the shares of Common Stock or other securities of the Company. For purposes of this Section 13.7, shares of Common Stock shall be valued at their Fair Market Value as of the
last business day preceding the day the Company receives the Recipient’s notice of exercise with respect to the exercise of a Stock Option or Stock-Settled SAR or as of the day on which a Performance Share Award, Restricted Share Award or
Restricted Stock Unit Award vests. In addition to the foregoing, to the extent permitted by Section 8.3, Section 9.7 and Section 10.7, above, the Tax Withholding may be paid by the application of shares which could be received upon
exercise of a Stock Option or Stock-Settled SAR or the application of shares which would otherwise be vesting under a Performance Share Award, Restricted Share Award or Restricted Stock Unit Award, provided, however, that this net withholding of
shares shall only be permitted up to minimum legally required tax withholding amount required under federal, state and local income and payroll taxes and Tax Withholding in excess of the minimum legally required tax withholding amount may only be
satisfied in the manner previously provided in this Section 13.7. This net withholding of shares shall be accomplished by crediting toward the Recipient’s Tax Withholding obligation either (i) the difference between the Fair Market
Value of a share of Common Stock and the Exercise Price of the Stock Option or Stock-Settled SAR or (ii) the Fair Market Value of a share of Common Stock with respect to a Performance Share Award, Restricted Share Award or Restricted Stock Unit
Award, in each instance rounded down to the nearest whole share. Any such net withholding of shares shall be considered an exercise of the Stock Option or Stock-Settled SAR to the extent that shares are so applied. 

13.8 Suspension or Termination of Awards for Misconduct of the Recipient. If at any time (including after receipt of a
notice of exercise or a request for delivery of vested shares) the Committee reasonably believes that a Recipient has committed an act of misconduct as described in this Section 13.8, the Committee may suspend the Recipient’s right to
exercise and Stock Option or Stock-Settled SAR or to receive delivery of vested shares under a Performance Share Award, Restricted Stock Award or Restricted Stock Unit Award pending a determination of whether an act of misconduct has been committed
by such Recipient. For purposes of this Section 13.8, acts of misconduct shall mean (i) an act of embezzlement, fraud, dishonesty, breach of fiduciary duty, violation of securities laws involving the Company, any of its Subsidiaries or any
entity or person with whom the Company or any of its Subsidiaries does business, (ii) nonpayment of any obligation to the Company or any Subsidiary, misappropriation or wrongful disclosure of any trade secret of the Company or any Subsidiary,
(iii) engaging in any conduct constituting unfair competition or inducing any entity or person with whom the Company or any of its Subsidiaries does business to discontinue or materially reduce such business with the Company or its Subsidiaries
and (iv) any similar conduct that materially aversely impacts or reflects on the Company. A Recipient accused of engaging in any such misconduct shall be provided the opportunity to explain the Recipient’s conduct in writing. Any
determination by the Committee as to whether or not a Recipient did engage in misconduct within the meaning of this Section 13.8 shall be final, conclusive and binding on the all interested parties. If the Committee determines that the
Recipient did not engage in misconduct, the Company shall immediately give effect to any notice of exercise or request for delivery of vested shares received prior to or during any period of suspension. The Company shall not have any liability to
the Recipient for any loss which the Recipient may have sustained as a result of any delay in delivering shares as a result of any suspension. 

  
 17 

 13.9 Compliance with Legal Requirements. No shares of Common Stock will be
issued with respect to any Performance Share Award, Restricted Stock Award or Restricted Stock Unit Award or upon the exercise of any Stock Option or Stock-Settled SAR unless the exercise and issuance of the shares of Common Stock will comply with
(i) all relevant provisions of law, including, without limitation, the Securities Act, the Securities Exchange Act of 1934, all applicable state securities laws and the Code, each as amended and including the respective rules and regulations
promulgated under each of the foregoing, (ii) any registration under the Securities Act in effect with respect to the Plan, and (iii) the requirements of any stock exchange or market upon which the Common Stock may then be listed.
Compliance with such provisions shall be subject to the approval of legal counsel for the Company. The Company will not be liable to any Recipient or any other person for any delay in issuing or failure to issue shares of Common Stock where such
delay or failure is due to the inability of the Company to obtain all permits, exemptions or approvals from regulatory authorities which are deemed necessary by the Company’s legal counsel. The Board may require any action or agreement by a
Recipient as may be necessary, from time to time, to comply with the federal and state securities laws. The Company will not be obliged to prepare, file or maintain a registration under the Securities Act with respect to the Plan or to take any
actions with respect to any state securities laws. 
 ARTICLE XIV 

AMENDMENT OF PLAN 
 The Committee may amend the terms of any Award theretofore granted, prospectively or retroactively, but no such amendment shall (a) materially impair the rights of any Recipient without his or her
consent, (b) except for adjustments made pursuant to Section 12.1 or in connection with substitute Awards, reduce the exercise price of outstanding Options or Stock Settled SARs or cancel or amend outstanding Options or Stock Settled SARs
for the purpose of repricing, replacing or regranting such Options or Stock Settled SARs with an exercise price that is less than the exercise price of the original Options or Stock Settled SARs or cancel or amend outstanding Options or Stock
Settled SARs with an exercise price that is greater than the Fair Market Value of a share of Common Stock for the purpose of exchanging such Options or Stock Settled SARs for cash or any other Awards without stockholder approval or (c) cause
any Award intended to be exempt from Code Section 409A to become subject to Code Section 409A. Notwithstanding the foregoing, the Committee may amend the terms of any Award heretofore granted, prospectively or retroactively, in order to
cure any potential defects under Code Section 409A, in a manner deemed appropriate by the Committee in it sole discretion, without the consent of the Recipient, provided that such amendment shall be accomplished in a manner calculated to avoid
causing such amendment to constitute an “extension,” “renewal” or “modification” (each within the meaning of Codes Section 409A) of any Award that would cause such Award to be considered “nonqualified deferred
compensation” within the meaning of Code Section 409A. Notwithstanding the foregoing, any adjustments made pursuant to Section 12.1 shall not be subject to these restrictions. 

Neither the Board, the Committee nor the Company make any representations that any Awards granted under this Plan shall be exempt from
Code Section 409A and makes no undertaking to preclude Code Section 409A from applying to the Plan or Awards granted thereunder. Moreover, for purposes of applying the provisions of Code Section 409A to this Plan, each separately
identified amount to which a Recipient is entitled under this Plan shall be treated as a separate payment. 
 Further,
notwithstanding the foregoing, no amendment of the Plan shall apply to amounts that were earned and vested (within the meaning of Code Section 409A) under the Plan prior to 2005, unless the amendment specifically provides that it applies to
such amounts. The purpose of this restriction is to prevent a Plan amendment from resulting in an inadvertent “material modification” to amounts that are grandfathered benefits. 
 This Amended and Restated Plan is dated as of and approved and adopted by the Board of Directors of the Company at a meeting held on February 17, 2005 and ratified by shareholders on May 5,
2005, and further amended by the Board of Directors May 1, 2009, and further amended by shareholders and the Board of Directors April 28, 2010, and further amended by the Board of Directors April 27, 2011. 

  
 18Director Compensation Plan

 Exhibit 10.12.1 

YRC WORLDWIDE INC. 
 DIRECTOR COMPENSATION PLAN 

July 14, 2005 
 This
Director Compensation Plan (this “Plan”) of YRC Worldwide Inc., a Delaware corporation (the “Company”), amends, restates and replaces the Directors Compensation Plan approved on December 9, 2004, in its entirety, and
summarizes the director compensation of the Company. 
  

	1.	DEFINITIONS, ADMINISTRATION AND CONSTRUCTION 

 

	 	(a)	The following capitalized terms used in this Plan shall have the following meanings given to each of them in this Section 1(a): 

“Annual Governance Cycle” means the period from the Board meeting immediately following the Company’s Annual Meeting of
Stockholders until the next such meeting the following year; 
 “Board” means the Board of Directors of the Company;

 “Committee” means a committee of the Board; 
 “Common Stock” means Company Common Stock, $1.00 par value per share; 

“Compensation Committee” means the Compensation Committee of the Board; 

“Equity Plan” means the Company’s 2004 Long-Term Incentive and Equity Award Plan or any other equity plan of the Company
that permits the award of Common Stock or Common Stock derivatives to Participants pursuant to this Plan; and 

“Participant” means a director of the Company who is not an employee of the Company. 

“Secretary” means the Secretary of the Company. 
  

	 	(b)	 The Compensation Committee shall administer this Plan. The Compensation Committee may adopt rules for the administration of this Plan as it may deem
necessary or advisable. The Compensation Committee shall administer this Plan in accordance with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), for deferrals made after December 31, 2004. The
Compensation Committee has full and absolute discretion in the exercise of each and every aspect of the rights, power, authority and duties retained or granted it under this Plan, including the authority to determine all facts, to interpret this
Plan, to apply the terms of this Plan to the facts determined, to make decisions based upon those facts and to make any and all other decisions required of it by 

	 	 
this Plan, such as the right to benefits, the correct amount and form of benefits, the determination of any appeal, the review and correction of the actions of any prior administrative committee,
and the other rights, powers, authority and duties specified in this paragraph and elsewhere in this Plan. Notwithstanding any provision of law, or any explicit or implicit provision of this document, any action taken, or finding, interpretation,
ruling or decision made by the Compensation Committee in the exercise of any of its rights, powers, authority or duties under this Plan shall be final and conclusive as to all parties, including without limitation all Participants, former
Participants and beneficiaries, regardless of whether the Compensation Committee or one or more of its members may have an actual or potential conflict of interest with respect to the subject matter of the action, finding, interpretation, ruling or
decision. No final action, finding, interpretation, ruling or decision of the Compensation Committee shall be subject to de novo review in any judicial proceeding. No final action, finding, interpretation, ruling or decision of the Compensation
Committee may be set aside unless it is held to have been arbitrary and capricious by a final judgment of a court having jurisdiction with respect to the issue. 

 

	 	(c)	Except as expressly stated to the contrary, references in this plan to “including” mean “including, without limitation” and to “persons”
mean natural persons and legal entities. 

  

	2.	RETAINERS. 

  

	 	(a)	From time to time, the Board (or at its direction, the Compensation Committee) may set retainers for Participants for their service as a member of the Board or one or
more of its Committees. Retainers for a Participant, including those for Committee chairs, may vary from those of other Participants. The current retainers for Participants are listed on Exhibit A. 

 

	 	(b)	Pursuant to this Plan and the Equity plan, at the beginning of each Annual Governance Cycle, each Participant shall be granted an award of shares of Common Stock equal
in value to 50% of the then applicable level of annual Board and Committee retainers. For each Annual Governance Cycle, a Participant may elect to receive more than 50% and up to 100% of the then applicable level of annual Board and Board Committee
retainers in Common Stock. If the Participant so elects, the elected additional percentage of annual Board and Committee retainers shall be issued pursuant to this Plan and the Equity Plan to the Participant at the beginning of the Annual Governance
Cycle for which the election is made. A form of the annual election is included in Exhibit B. 

  

	 	(c)	 For the purposes of determining the number of shares to issue pursuant to this Section 2 and any election pursuant to Section 3, the value of
the Company’s Common Stock shall be determined in accordance with the Equity Plan. If the Equity Plan does not specify a method to determine the value, the number of 

	 	 
shares to be issued pursuant to this Section 2 shall be determined by reference to the closing price of the Common Stock on the date of issuance. 

 

	 	(d)	Annual retainers are intended to compensate Participants for each Annual Governance Cycle. A Participant who joins the Board during an Annual Governance Cycle shall
receive annual retainers that are pro-rated based on the number of whole or partial months of an Annual Governance Cycle in which the Participant first serves. The Company shall pay the joining Participant these retainers in cash in quarterly
installments until the beginning of the next Annual Governance Cycle in accordance with Section 2(d). 

  

	 	(e)	The Company shall pay to each Participant in cash any amount of retainers that are not paid to the Participant in Common Stock pursuant to this Section 2. The
Company shall pay the cash portion of the retainers to each Participant in four quarterly installments. The Company shall pay each installment to the Participant on the date of the first regular meeting of the Board for that quarter. If no such
regular meeting is held during a quarter, the Company shall pay the Participant the installment on the last day of the calendar quarter. 

  

	3.	MEETING FEES. 

  

	 	(a)	From time to time, the Board (or at its direction, the Compensation Committee) may set meeting fees for Participants for their attendance at meetings of the Board or
one or more of its Committees. The amount of the meeting fees for a Participant, including those for Committee chairs, may vary from those of other Participants. The current meeting fees for Participants are listed on Exhibit A.

  

	 	(b)	Unless a valid deferral election is made pursuant to Section 4, meetings fees shall be due and payable to each Participant upon the Participant’s attendance
at the applicable meeting. 

  

	 	(c)	Meeting fees shall be paid in cash. 

  

	4.	EQUITY GRANTS. 

 From time to time, the Board (or at its direction, the Compensation Committee) may make grants of Common Stock or Common Stock derivatives (such as stock options or restricted unit awards) to Participants
as compensation for their service on the Board with such terms and conditions as are stated in the grant. The grant shall be made pursuant to this Plan and the terms of the Equity Plan. The current equity grants are summarized on Exhibit A.

  

	5.	COMPENSATION DEFERRAL. 

  

	 	(a)	 Pursuant to a written election, a Participant may defer receipt of all of the Participant’s retainer fees that the Participant elects to receive
in stock (under 

	 	 
Section 2) or all of the meeting fees (under Section 3), in each case, with respect to a year, until the Participant’s termination of service on the Board (whether by death,
disability, resignation, removal, failure to be reelected or otherwise) or until the earlier of January 1 in a year that the Participant specifies or the Participant’s termination of service with the Board. The Company shall maintain an
account for each Participant to record the amount of compensation so deferred and shall provide the Participant with an account statement at least annually. 

 

	 	(b)	A Participant must make a written deferral election for the following year prior to the beginning of each calendar year. Participants who have become a director during
a calendar year must make an election for the remaining portion of that year within 30 days of their election or appointment as a director. Initial elections with respect to this Plan must be made within 30 days of its adoption. A form of the annual
election is included in Exhibit B. This election should be delivered to the Secretary. 

  

	 	(c)	Upon the termination of the deferral, the Company shall issue and pay to the Participant the deferred shares, deferred dividends and additions on dividends and deferred
cash meeting fees in the Participant’s deferred account within a reasonable time and in accordance with the Code and regulations promulgated thereunder. 

 

	 	(d)	If the Company declares a dividend on its stock, the Company shall create an account on the books of the Company reflecting the cash value of the dividend based upon
the number of shares reflected in Participant’s stock account. On December 31 of each year, an annual addition shall be made to the Participant’s dividend account (for the purpose of simulating an investment return) in accordance with
the formula as follows: 

 X = A x B 
 Where 
 X is the amount of the annual addition 

A is the discount interest rate on the first new 12 month U.S. Treasury Bills auctioned in such year. 

B is the sum of the balances in the account on the last day of each month of such year divided by 12. 

If payment is made by reason of death and the payment is made in a month other than January, a pro rata addition to the account shall be
made immediately prior to payment in accordance with the formula as follows: 
 Y = C x D 

Where 

 Y is the amount of the pro rata addition. 

C is the discount interest rate on the first new 12 month U.S. Treasury Bills auctioned in such year. 

D is the sum of the balances in the account on the last day of each month preceding payment in such year divided by 12. 

 

	 	(e)	The Company shall not pay any interest or any other addition on cash meeting fees deferred under the terms of this Plan. 

 

	 	(f)	If a Participant dies, the Company shall pay any amounts deferred under this Plan to the beneficiary or beneficiaries, if any, that the Participant designates to the
Secretary in writing during the Participant’s lifetime. During his/her lifetime, the Participant may revoke or change any designation of beneficiary by delivering the revocation or designation in writing to the Secretary. If no beneficiary is
designated or survives the Participant, then the accounts shall be issued and paid to the Participant’s personal representative. 

  

	 	(g)	The Participant understands that all stock and cash deferred hereunder (i.e., the balance of his/her accounts) are unfunded, will be represented by appropriate
bookkeeping entries and will be paid from the general assets of the Company when due pursuant to the terms of this Plan. Any such amounts due the Participant shall be unsecured, general obligations of the Company. 

 

	 	(h)	Stock and cash deferred under this Plan, and any and all rights thereto, shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, charge, garnishment, execution, or levy of any kind, either voluntary or involuntary. Any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise dispose of any rights to amounts deferred
or payable hereunder shall be void. 

  

	6.	GENERAL 

  

	 	(a)	None of this Plan, the Equity Plan, the grant of any award under this Plan or the Equity Plan or any other action taken pursuant to this Plan or the Equity Plan shall
constitute or be evidence of any agreement or understanding, express or implied, that the Company will retain a Participant for any period of time or at any particular rate or amount of compensation. 

 

	 	(b)	Except by the laws of decent and distribution in the event of a Participant’s death, the rights and benefits of this Plan may not be assigned or otherwise
transferred. A Participant shall cease to be a Participant under this Plan upon the Participant’s termination of his or her directorship with the Company whether by death, disability, retirement, resignation or removal.

  

	 	(c)	Any notice to the Company that this Plan requires shall be in writing, addressed to the Secretary and be effective when the Secretary receives the notice.

	 	(d)	This Plan and any determination or action taken respecting this Plan shall be governed by and construed in accordance with the laws of the State of Delaware, without
reference to its law of conflicts of law. 

  

	7.	EQUITY OWNERSHIP GUIDELINES* 

 Each Participant shall own shares of Company common stock or restricted stock units to receive shares of Company common stock equal to three times the annual board retainer within three years of
July 14, 2005 or the date the Participant becomes an outside director of the Board. 
  

	*	The Equity Ownership Guidelines have been suspended since 2009. 

 Exhibit A** 

Board Retainers as of June 29, 2010 
 Annual retainer = $50,000 
 Annual retainer for Finance Committee Chair = $5,000

 Annual retainer for Pension and Benefits Strategy Committee Chair = $5,000 

Annual retainer for Governance Committee Chair = $5,000 
 Annual retainer for Compensation Committee Chair = $7,500 
 Annual retainer for
Audit/Ethics Committee Chair = $10,000 
 Annual retainer for Committee members = $0 

Meeting fees as of June 29, 2010 
 $1,500 for each Board meeting attended 
 $1,500 for each Committee meeting attended
(except for the Pension and Benefits Strategy Committee) 
 $1,500 per day (prorated based on an eight-hour day) for services
that the Chairman of the Board may request from time to time of the Pension and Benefits Strategy Committee Chair 
 Equity
grants as of July 14, 2005 
 Restricted stock units equal in value to $77,500 (using the reported
closing price on the NASDAQ Stock Market on the date of grant) vesting 1/3 of the units on each of the 1st, 2nd and
3rd anniversaries of the date of grant, which grant is to
be made on the first meeting of the Board following the annual meeting of stockholders of the Company 
  

	**	The Board has approved the following modifications of payments to be made under the Plan: (i) since January 2009, all cash retainers and meeting fees have been
reduced by 10% in conjunction with the reduction in employee wages and salaries, and that reduction will continue through the 2011-2012 Annual Governance Cycle; (ii) the 2011-2012 Annual Governance Cycle will begin on May 11, 2011, the
one-year anniversary of the appointment of a majority of the members of the Board; (iii) annual retainers for Board service and for service as chairperson of Board committees for the 2010-2011 and 2011-2012 Annual Governance Cycles have been
and will continue to be paid 100% in cash; (iv) annual retainers for Board service and for service as a chairperson of Board committees will be paid quarterly on the first business day of each calendar quarter, and meeting fees will be paid
monthly on the first business day of the following calendar month; (v) a cash payment in the amount of $80,000 for each of the 2010-2011 (payable April 2011) and 2011-2012 (payable May 11, 2011) Annual Governance Cycles; and (vi) no
annual equity grant for the 2010-2011 or 2011-2012 Annual Governance Cycles. The Board anticipates reviewing Board compensation upon completion of the restructuring and in all events prior to the 2012-2013 Annual Governance Cycle.

 Exhibit B 

ANNUAL DIRECTOR COMPENSATION ELECTION FORM 

To the Secretary of YRC Worldwide Inc.: 
 I
wish to receive                      % of Board and Committee chair retainers in the form of YRC Worldwide Inc. stock for the period of
                 to                  (the Annual Governance Cycle).
(Must select at least 50%, if left blank or less than 50% selected, we will assume 50% is your selection). 
  

	 ̈	I hereby elect to defer all of my board and chairperson retainer fees for
                 (calendar year). This election supercedes any prior election that I have may made for that period. (If you do not mark the box, we will assume
that you do not wish to defer your retainer fees. If you mark the box but have not elected above to receive 100% of your retainers in stock, we will assume that you intended to mark 100% of your retainers to be received in stock even if you
indicated to the contrary.) 

  

	 ̈	I hereby elect to defer all of my attendance fees for                  (calendar
year). This election supercedes any prior election that I have may made for that period. (If you do not mark the box, we will assume that you do not wish to defer your attendance fees. Please remember that deferred attendance fees will not earn
interest or other returns during the deferral.) 

 The deferrals marked above shall end as selected below:

  

	 ̈	Termination of my service with Board (whether by death, disability, resignation, removal, failure to be reelected or otherwise) 

 

	 ̈	On the earlier of January 1,                     
(enter year) or termination of my service with the Board 

  

					
		 		 	
			
	  	 		 	  
	(Print name)	 		 	(signature)

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