Document:

exh10-9_1392165.htm

    EXHIBIT
10.9

       

      DATED 
December __, 2009

       

      

       

      

       

      

       

      GTT-EMEA
LTD. (1)

       

      

       

      and

       

      

       

      SILICON
VALLEY BANK (2)

       

      

       

      _______________________________

       

      

       

      DEBENTURE

       

      

       

      _______________________________

       

      

       

      

       

      

       

      

       

      

       

      

       

      Solicitors

      

       

      Waverley
House

      7-12
Noel Street London  W1F 8GQ DX: 44627 MAYFAIR

      Tel:
+44 (0) 20 7339 7000  Fax: +44 (0) 20 7339 7001  Web:
jgrweb.com

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      THIS DEBENTURE
is                                                                                                                 2009

       

      and made
BETWEEN:

       

      
        	
                (1)

              	
                GTT-EMEA LTD., a company
      incorporated and registered in England and Wales under company number
      03580993, whose registered office is at Fifth Floor, Morley House, 26
      Holborn Viaduct, London  EC1A 4AT (“the Chargor”);
      and

              

      

       

      
        	
                (2)

              	
                SILICON VALLEY BANK, a
      California chartered bank, with its principal place of business at 3003
      Tasman Drive, Santa Clara, California 95054, U.S.A. (“the Bank”).

              

      

       

      
        	
                 
      

              	
                WHEREAS:

              

      

       

      
        	
                (A)

              	
                The
      Bank has agreed to make available jointly to the Chargor, Global Telecom
      & Technology, Inc (a company incorporated and registered in the State
      of Delaware, U.S.A. which is the parent company of the Chargor) (“GTTI”), Global Telecom
      & Technology Americas, Inc (a company incorporated and registered in
      the State of Virginia, U.S.A. which is a subsidiary of GTTI) (“GTTA”) and WBS Connect
      LLC (a company incorporated in the State of Colorado, U.S.A.) (“WBS”), under the terms
      of a second amended and restated loan and security agreement entered into
      on the date of this Debenture between the Bank, GTTI, GTTA, WBS and the
      Chargor (“the Loan and
      Security Agreement”), a revolving loan facility of a maximum amount
      of $6,250,000 (six million two hundred and fifty thousand US dollars)
      increasing to $10,000,000 (ten million dollars) upon an Increase Event (as
      defined in the Loan and Security Agreement) (“the Facility”).

              

      

       

      
        	
                (B)

              	
                It
      is a condition precedent to the availability of the Facility that the
      Chargor enters into this Debenture.

              

      

       

      WITNESSES
as follows:

       

      
        	
                1.

              	
                Definitions

              

      

       

      
        	
                 
      

              	
                In
      this Debenture:

              

      

       

      
        	
                 
      

              	
                “Permitted
      Encumbrance” means:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                Permitted
      Liens (as defined in the Loan and Security
  Agreement);

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Rental
      Deposit Agreement dated 8 June 2004 in favour of Frank Blin, John Edward
      Kitson Smith, Paul Boorman and John Robert Lloyd Berriman;
    and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                Rent
      Deposit Agreement dated 1 June 2009 in favour of Price Waterhouse Coopers
      LLP.

              

      

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      2.           Covenant
to pay

       

      The
Chargor covenants to pay and discharge to the Bank, when the same shall be or
become due, all monies obligations and liabilities whatsoever whether for
principal, interest (to the date of discharge in full) or otherwise in whatever
currency which may now or at any time in the future be due owing or incurred
(whether actual or contingent and whether alone, severally or jointly or as
principal, guarantor, surety or otherwise and in whatever name or style) by the
Chargor to the Bank under the terms of the Loan and Security Agreement
(including any amendment or renewal thereof) or under the terms of any of the
other Loan Documents (as defined in the Loan and Security
Agreement).

       

      
        	
                3.

              	
                Charge

              

      

       

      
        	
                3.1.

              	
                The
      Chargor, with full title guarantee and as a continuing security for the
      payment or discharge of all monies obligations and liabilities covenanted
      to be paid or discharged by the Chargor under this Debenture together with
      all reasonable costs and expenses incurred by the Bank in relation to this
      Debenture or the monies obligations and liabilities hereby secured, hereby
      charges:

              

      

       

      
        	
                3.1.1.

              	
                by
      way of first fixed charge:

              

      

       

      
        	
                 
      

              	
                3.1.1.1.

              	
                all
      freehold leasehold and other immovable property now or in the future
      belonging or charged to the Chargor together with all buildings, trade and
      other fixtures, fixed plant and machinery of the Chargor from time to time
      thereon and the proceeds of sale
thereof;

              

      

       

      
        	
                 
      

              	
                3.1.1.2.

              	
                all
      equipment plant machinery vehicles tools furniture fittings computers and
      other tangible moveable property now or in the future belonging to the
      Chargor (or rights to use any of the same) and the full benefit of any
      warranties or maintenance contracts for any of the
  same;

              

      

       

      
        	
                 
      

              	
                3.1.1.3.

              	
                all
      present and future book debts and other debts and other monies due owing
      payable or incurred to the Chargor now or in the future (“the Debts”) and
      the benefit of any guarantees, indemnities or other assurances in respect
      of the Debts and the proceeds of payment or realisation of each of the
      Debts until the payment of such proceeds into the separate bank account
      mentioned in clause 5.2.5 below;

              

      

       

      
        	
                 
      

              	
                3.1.1.4.

              	
                all
      funds standing to the credit of the Chargor from time to time on any
      account with the Bank or any other bank or financial institution and all
      rights deriving therefrom (including the right to
    interest);

              

      

       

      
        	
                 
      

              	
                3.1.1.5.

              	
                all
      stocks shares and other securities now or in the future belonging to the
      Chargor together with all dividends and other rights deriving
      therefrom;

              

      

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                3.1.1.6.

              	
                all
      bills of exchange promissory notes and negotiable instruments of any
      description now or in the future beneficially owned by the
      Chargor;

              

      

       

      
        	
                 
      

              	
                3.1.1.7.

              	
                all
      the goodwill of the Chargor and its uncalled capital for the time
      being;

              

      

       

      
        	
                 
      

              	
                3.1.1.8.

              	
                all
      rights and interests in and claims under all policies of insurance and
      assurance held or to be held by or inuring to the benefit of the Chargor
      and the benefit of all rights and claims to which the Chargor is now or
      may be entitled under any
contracts;

              

      

       

      
        	
                 
      

              	
                3.1.1.9.

              	
                the
      benefit of all licences, consents and authorisations held or utilised by
      the Chargor now or in the future in connection with its business or the
      use of any of its assets; and

              

      

       

      
        	
                 
      

              	
                3.1.1.10.

              	
                the
      benefit of all patents patent applications inventions trade marks service
      marks designs and trade names copyright know-how and other intellectual
      property rights and all fees royalties and other rights of every kind
      deriving therefrom now or in the future belonging to the Chargor;
      and

              

      

       

      
        	
                3.1.2.

              	
                by
      way of first floating charge the whole of the Chargor’s undertaking and
      all its property and assets whatsoever and wheresoever present and future
      other than the property and assets from time to time effectively charged
      to the Bank by way of fixed charge by this
  Debenture.

              

      

       

      
        	
                3.2.

              	
                The
      Bank may, in its sole discretion, convert the floating charge created by
      clause 3.1.2 at any time by notice in writing to the Chargor into a fixed
      charge as regards all of the property and assets which for the time being
      are the subject of such floating charge or, as the case may be, such of
      the said property and assets as are specified by such
      notice.  The floating charge created by clause 3.1.2 shall
      subject to the provisions of Paragraph 43 of Schedule B1 to the Insolvency
      Act 1986 and unless otherwise agreed in writing by the Bank automatically
      and without notice immediately be converted into a fixed charge in the
      event that the Chargor shall create or permit to subsist any mortgage
      charge pledge lien or other security interest other than this Debenture or
      if any person takes any step to levy any distress attachment execution or
      other legal process against any of the said property or
      assets.

              

      

       

      
        	
                3.3.

              	
                Paragraph
      14 of Schedule B1 to the Insolvency Act 1986 applies to the floating
      charge created by clause 3.1.2 of this Debenture which is a “qualifying
      floating charge” for the purposes of paragraph 14(1) of Schedule B1 to the
      Insolvency Act 1986.

              

      

       

      
        	
                3.4.

              	
                The
      security from time to time constituted by or pursuant to this Debenture
      shall be in addition to and shall not prejudice determine or affect any
      other security which the Bank may from time to time hold for or in respect
      of all or any part of the monies obligations and liabilities hereby
      secured. No prior security held by

              

      

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      the Bank
over the property charged by this Debenture or any part of it shall merge in the
security created hereby or pursuant hereto which will remain in force and effect
as a continuing security until discharged by the Bank.

       

      
        	
                4.

              	
                Restrictions
      on Dealing

              

      

       

      
        	
                4.1.

              	
                The
      Chargor shall not without the prior written consent of the
      Bank;

              

      

       

      
        	
                4.1.1.

              	
                create
      or permit to subsist any mortgage charge (fixed or floating) pledge lien
      (other than a lien arising by operation of law) or other security interest
      on any of its assets other than this Debenture and Permitted
      Encumbrances;

              

      

       

      
        	
                4.1.2.

              	
                other
      than in respect of Permitted Indebtedness and Permitted Investments (as
      defined in the Loan and Security Agreement) and other than as otherwise
      specifically permitted in the Loan and Security Agreement sell transfer
      lease lend or otherwise dispose of the whole or any part of its
      undertaking or (save in the normal course of trading at not less than
      market value) of its assets or enter into any agreement or grant any
      option for any such sale transfer lease loan or other
      disposal;

              

      

       

      
        	
                4.1.3.

              	
                part
      with possession of any freehold or leasehold property grant or agree to
      grant any option or any licence tenancy or other right of occupation to
      any person or exercise the powers of leasing or agreeing to lease or of
      accepting or agreeing to accept surrenders conferred by Sections 99 and
      100 of the Law of Property Act 1925 provided that such restrictions shall
      not be construed as a limitation on the powers of any receiver appointed
      under this Debenture and being an agent of the Chargor and the Bank may
      grant or accept surrenders of leases without restriction at any time after
      the Bank shall have demanded the payment or discharge of any of the monies
      obligations and liabilities hereby secured;
and

              

      

       

      
        	
                4.1.4.

              	
                pull
      down or remove or redevelop or make any material alteration to the whole
      or any part of any buildings or sever unfix or remove any fixtures or
      remove any plant or machinery belonging to or in use by the Chargor except
      for the purpose of effecting repairs or replacing the
  same.

              

      

       

      
        	
                5.

              	
                Representations,
      Warranties and Covenants by the
Chargor

              

      

       

      
        	
                5.1.

              	
                The
      Chargor represents and warrants to the Bank and undertakes
      that:

              

      

       

      
        	
                5.1.1.

              	
                it
      has and will at all times have the necessary power and authority to enter
      into and perform its obligations under this
  Debenture;

              

      

       

      
        	
                5.1.2.

              	
                this
      Debenture constitutes its legal valid binding and enforceable obligations
      and is a security over the relevant assets of the Chargor effective in
      accordance with its terms;

              

      

       

      
        	
                5.1.3.

              	
                all
      necessary authorisations and consents to enable or entitle it to enter
      into this Debenture and to enable it to carry on its business as it is
      currently being

              

      

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      conducted
have been obtained and will remain in full force and effect during the
subsistence of the security constituted by this Debenture;

       

      
        	
                5.1.4.

              	
                no
      Event of Default under Article 8 of the Loan and Security Agreement has
      occurred and/or is continuing and, so far as the Chargor is aware, no
      event has occurred which with the giving of notice or lapse of time or
      both would constitute such an
event;

              

      

       

      
        	
                5.1.5.

              	
                there
      are no legal proceedings pending or threatened before any court or
      tribunal which will adversely affect the Chargor’s financial
      situation;

              

      

       

      
        	
                5.1.6.

              	
                there
      are no other mortgages charges (fixed or floating) pledges liens or other
      security interests affecting any of the Chargor’s assets existing at the
      date of this Debenture (other than Permitted
  Encumbrances);

              

      

       

      
        	
                5.1.7.

              	
                the
      Chargor is not insolvent (as defined in the Insolvency Act 1986) at the
      date of this Debenture; and

              

      

       

      
        	
                5.1.8.

              	
                all
      information supplied by the Chargor or its agents to the Bank or its agent
      on or prior to the date of this Agreement was at the time supplied and
      remains at the date of this Debenture true, complete and accurate in all
      respects.

              

      

       

      
        	
                5.2.

              	
                The
      Chargor warrants with the Bank to:

              

      

       

      
        	
                5.2.1.

              	
                keep
      all buildings and all vehicles plant machinery fixtures and fittings owned
      by the Chargor in good repair and condition and permit any person or
      persons nominated by the Bank free access at all reasonable times to view
      the state and condition thereof;

              

      

       

      
        	
                5.2.2.

              	
                insure
      and keep insured such of its property as is insurable with such insurer
      and against such risks and in such amounts and otherwise in such terms as
      the Bank may require and will maintain such other insurances as are
      normally maintained by prudent companies carrying on similar businesses
      with the interest of the Bank noted upon all policies of such insurance
      or, if the Bank shall require and if it is reasonably practicable to do
      so, in the joint names of the Chargor and the Bank and the Chargor will
      deposit with the Bank all such policies and receipts for all premium and
      other payments necessary for effecting and maintaining such
      insurances;

              

      

       

      
        	
                5.2.3.

              	
                apply
      any insurance proceeds in making good the loss or damage or at the Bank’s
      option in or towards the discharge of the monies obligations and
      liabilities secured by this
Debenture;

              

      

       

      
        	
                5.2.4.

              	
                punctually
      pay all rents taxes duties assessments debts and other outgoings and
      observe and perform all restrictive and other covenants under which any of
      the property subject to this Debenture is
held;

              

      

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      
        	
                5.2.5.

              	
                (unless
      and until otherwise instructed by the Bank pursuant to the provisions of
      the Loan and Security Agreement or otherwise) pay or procure the payment
      of all monies which it may receive in respect of the Debts only into a
      separate bank account with the Royal Bank of Scotland where the monies
      therein are held on trust for the Bank and until payment into such an
      account the Chargor shall in any event hold all such monies on trust for
      the Bank;

              

      

       

      
        	
                5.2.6.

              	
                not
      allow the bank account mentioned in clause 5.2.5 or any other bank account
      into which such monies are paid to become
  overdrawn;

              

      

       

      
        	
                5.2.7.

              	
                deal
      with the Debts (and the proceeds thereof) in accordance with clause 5.2.5
      and in accordance with any directions from time to time given in writing
      by the Bank and in default of and subject to any such directions deal with
      the same only in the ordinary and proper course of its trading business
      (and for this purpose the realisation of debts by means of block
      discounting factoring or the like shall not be regarded as dealing in the
      ordinary and proper course of its trading
  business);

              

      

       

      
        	
                5.2.8.

              	
                at
      any time after this Debenture has become enforceable immediately at the
      request of the Bank execute a legal assignment (in such form as the Bank
      may require) of any of the Debts to the Bank, give notice thereof to the
      relevant debtor(s) and take such other steps as the Bank may require to
      perfect such legal assignment;

              

      

       

      
        	
                5.2.9.

              	
                at
      any time after this Debenture has become enforceable deal with all licence
      fees royalties and other monies deriving from its intellectual property in
      accordance with any directions from time to time given in writing by the
      Bank;

              

      

       

      
        	
                5.2.10.

              	
                subject
      to the rights of any prior mortgagee and upon the request of the Bank
      deposit with the Bank all deeds certificates and documents constituting or
      evidencing title to the property or any part thereof charged by this
      Debenture (including without limitation all certificates or other
      documents of title relating to all stocks shares and other securities now
      or in the future belonging to the Chargor) and all insurance
      policies;

              

      

       

      
        	
                5.2.11.

              	
                comply
      with the provisions of all present or future statutes and directives and
      every notice order direction licence consent or permission given or made
      under any of the foregoing and the requirements of any competent authority
      so far as any of the same shall relate to its assets or their use or
      anything done on any property belonging to or occupied by the
      Chargor;

              

      

       

      
        	
                5.2.12.

              	
                provide
      the Bank with all financial and other information with respect to the
      assets, liabilities and affairs of the Chargor and its subsidiaries and
      associated companies (if any) that the Bank may from time to time require
      subject always to the Bank adhering to any general duties of
      confidentiality implied by law and the provisions of Section 12.8 of the
      Loan and Security Agreement in respect of such
  information.

              

      

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      
        	
                5.3.

              	
                If
      the Chargor shall fail to satisfy the Bank that it has performed any of
      its obligations under clause 5.2 then the Bank may take such steps as it
      considers appropriate to procure the performance of such obligation and
      shall not thereby be deemed to be a mortgagee in possession and the monies
      expended by the Bank shall be reimbursed by the Chargor on demand on a
      full indemnity basis and be secured on the property charged by this
      Debenture.

              

      

       

      
        	
                6.

              	
                Enforcement

              

      

       

      
        	
                6.1.

              	
                This
      Debenture shall become enforceable:

              

      

       

      
        	
                6.1.1.

              	
                upon
      the occurrence of any Event of Default under Article 8 of the Loan and
      Security Agreement which is continuing;
or

              

      

       

      
        	
                6.1.2.

              	
                upon
      the presentation of a petition for the winding up of the Chargor the
      making of an order for the winding up of the Chargor or the passing by the
      Chargor of a resolution for voluntary winding up save where the winding-up
      petition is frivolous or vexatious and is discharged, stayed or dismissed
      within fourteen (14) days of commencement;
or

              

      

       

      
        	
                6.1.3.

              	
                if
      an encumbrancer shall take possession of or a receiver shall be appointed
      over or any secured creditor of the Chargor shall seek to enforce its
      security in respect of all or any of the property or assets charged by
      this Debenture; or

              

      

       

      
        	
                6.1.4.

              	
                if
      a petition is presented or if the Chargor or its directors resolve to
      present a petition for an administration order in relation to the Chargor
      or if an administration application is made or filed in relation to the
      Chargor if a notice of intention to appoint an administrator in relation
      to the Chargor is given or if any notice of appointment of an
      administrator in relation to the Chargor is made or filed;
    or

              

      

       

      
        	
                6.1.5.

              	
                if
      the Chargor shall enter into any composition or arrangement for the
      benefit of its creditors.

              

      

       

      
        	
                6.2.

              	
                Section
      103 of the Law of Property Act 1925 shall not apply and the statutory
      power of sale and all other powers under that or any other Act as varied
      or extended by this Debenture shall arise on and be exercisable at any
      time after the Bank shall have demanded the payment or discharge by the
      Chargor of all or any of the monies obligations and liabilities secured by
      this Debenture.

              

      

       

      
        	
                6.3.

              	
                Section
      93 of the Law of Property Act 1925 dealing with the consolidation of
      mortgages shall not apply to this
Debenture.

              

      

       

      
        	
                7.

              	
                Receiver

              

      

       

      
        	
                7.1.

              	
                At
      any time after this Debenture has become enforceable or if the Chargor so
      requests in writing the Bank may without further notice to the Chargor
      appoint by writing under hand or under seal any one or more persons either
      singly jointly

              

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      severally
or jointly and severally to be a receiver, receiver and manager or
administrative receiver (each a “Receiver”) of all or any part or parts of the
property charged by this Debenture and either at the time of appointment or any
time thereafter may fix his or their remuneration and except as otherwise
required by statute may remove any such Receiver and appoint another or others
in his or their place.  This clause shall operate subject to the
provisions of Paragraph 43 of Schedule B1 to the Insolvency Act
1986.

       

      
        	
                7.2.

              	
                Any
      Receiver shall be the agent of the Chargor and the Chargor alone shall be
      responsible for such agent’s acts and defaults and liable under any
      contracts or engagements made or entered into by such agent and the Bank
      shall in no way be responsible for such agent’s misconduct, negligence or
      default.

              

      

       

      
        	
                7.3.

              	
                The
      remuneration of any Receiver shall form part of the sums secured under
      this Debenture and accordingly shall be secured on such part of the
      property charged by the debenture in respect of which he has been
      appointed.

              

      

       

      
        	
                7.4.

              	
                Any
      Receiver shall have all the powers conferred by the Law of Property Act
      1925 and the Insolvency Act 1986 on mortgagors mortgagees in possession
      (but without liability as such) receivers administrative receivers and
      administrators appointed under those Acts which in the case of joint
      receivers may be exercised either jointly or severally. In addition, but
      without prejudice to the generality of the foregoing the Receiver shall
      have power (in the name of the Chargor or otherwise and in such manner and
      on such terms and conditions as he shall think fit)
  to:

              

      

       

      
        	
                7.4.1.

              	
                take
      possession of collect and get in all or any part of the property (or
      related rents or income) in respect of which he is appointed and for that
      purpose to take any proceedings;

              

      

       

      
        	
                7.4.2.

              	
                carry
      on or concur in carrying on the business of the Chargor and to raise money
      from the Bank or others on the security of any property charged by this
      Debenture;

              

      

       

      
        	
                7.4.3.

              	
                purchase
      or acquire any land and purchase, acquire and grant any interest in or
      right over land;

              

      

       

      
        	
                7.4.4.

              	
                sell
      or concur in selling let or concur in letting and terminate or accept
      surrenders of leases or tenancies of any of the property charged by this
      Debenture in respect of which he has been appointed and to carry any such
      transactions into effect;

              

      

       

      
        	
                7.4.5.

              	
                sell,
      assign let or otherwise dispose of or concur in selling, assigning,
      letting or otherwise disposing of all or any of the debts and any other
      property in respect of which he is
appointed;

              

      

       

      
        	
                7.4.6.

              	
                make
      any arrangement or compromise or enter into any contracts between the
      Chargor and any other person which he may think
  expedient;

              

      

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      
        	
                7.4.7.

              	
                make
      and effect all repairs improvement and
  insurances;

              

      

       

      
        	
                7.4.8.

              	
                purchase
      materials tools equipment goods or
supplies;

              

      

       

      
        	
                7.4.9.

              	
                call
      up any uncalled capital of the Chargor with all the powers conferred by
      the Articles of Association of the Chargor in relation to
      calls;

              

      

       

      
        
          	
                  7.4.10.

                	
                  employ
      engage and appoint managers and other employees and `professional
      advisers;

                

        

         

      

      
        	
                7.4.11.

              	
                do
      all such other acts and things as may be considered to be incidental or
      conducive to any other matters or powers aforesaid or to the realisation
      of the security constituted by this Debenture and which he lawfully may or
      can do.

              

      

       

      
        	
                8.

              	
                Application
      of Proceeds

              

      

       

      
        	
                8.1.

              	
                The
      provisions of Section 109(6) and (8) of the Law of Property Act 1925 shall
      not apply and any monies received by the Bank or any Receiver shall
      subject to the repayment of any claims having priority to the charges
      created by this Debenture be applied in the following order but without
      prejudice to the right of the Bank to recover any shortfall from the
      Chargor:

              

      

       

      
        	
                8.1.1.

              	
                in
      the payment of all costs charges and expenses of and incidental to the
      appointment of the Receiver and the exercise of all or any of his powers
      and of all outgoings paid by him;

              

      

       

      
        	
                8.1.2.

              	
                in
      the payment of the Receiver’s
remuneration;

              

      

       

      
        	
                8.1.3.

              	
                in
      or towards payment of any debts or claims which are by statute payable in
      preference to money secured by this
Debenture;

              

      

       

      
        	
                8.1.4.

              	
                in
      or towards the satisfaction of the monies obligations and liabilities
      secured by this Debenture in such order as the Bank in its absolute
      discretion thinks fit;

              

      

       

      
        	
                8.1.5.

              	
                in
      payment of the surplus (if any) to the person or persons entitled to
      it.

              

      

       

      
        	
                8.2.

              	
                All
      monies received recovered or realised by the Bank under this Debenture may
      be credited at the discretion of the Bank to any suspense or impersonal
      account and may be held in such account for so long as the Bank shall
      think fit pending its application from time to time in or towards the
      discharge of any of the monies obligations and liabilities secured by this
      Debenture.

              

      

       

      
        	
                9.

              	
                Protection
      of Third Parties

              

      

       

      No person
dealing with a Receiver or the Bank shall be concerned to enquire whether any
power which he or it is purporting to exercise has become exercisable or whether
any money is due under this Debenture or as to the application of any money paid
raised or borrowed or as to the propriety or

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      regularity
of any sale by or other dealing with such Receiver or the Bank. All the
protection to purchasers contained in Sections 104 and 107 of the Law of
Property Act 1925 shall apply to any person purchasing from or dealing with a
Receiver or the Bank.

       

      
        	
                10.

              	
                Entry
      into Possession

              

      

       

      If the
Bank or any Receiver shall enter into possession of the property hereby charged
or any part thereof it or he may from time to time and at any time go out of
such possession. Neither the Bank nor any Receiver shall in any circumstances
(either by reason of any entry into or taking of possession of any such property
or for any other reason and whether as mortgagee in possession or on any other
basis) other than its gross negligence or wilful misconduct be liable to account
to the Chargor for anything except its or his actual receipts or be liable to
the Chargor for any loss or damage arising from any realisation of the property
hereby charged or from any act default or omission in relation
thereto.

       

      
        	
                11.

              	
                Power
      of Attorney

              

      

       

      The
Chargor irrevocably appoints the Bank any Receiver and any person nominated by
the Bank jointly and also severally to be the attorney of the Chargor with the
power of substitution and in its name and otherwise on its behalf and as its act
and deed, regardless of whether this Debenture has become enforceable, to sign
or execute all deeds instruments and documents which the Bank or any Receiver
may deem necessary or expedient, as determined solely and exclusively by the
Bank, to protect or preserve the Bank’s rights and remedies under this
Debenture, as directed by the Bank. The Chargor agrees to ratify and confirm
anything such attorney shall lawfully and properly do in accordance with this
provision.

       

      
        	
                12.

              	
                Appointment
      of Administrator

              

      

       

      
        	
                
12.1.

              	
                The
      Bank may without notice to the Chargor appoint any one or more persons to
      be an administrator of the Chargor pursuant to paragraph 14 of Schedule B1
      of the Insolvency Act 1986 if this debenture becomes
      enforceable.

              

      

       

      
        	
                
12.2.

              	
                Any
      appointment under this clause 12
shall:

              

      

       

      
        	
                
12.2.1.

              	
                be
      in writing signed by a duly authorised signatory of the Bank;
      and

              

      

       

      
        	
                
12.2.2.

              	
                take
      effect, in accordance with paragraph 19 of Schedule B1 of the Insolvency
      Act 1986, when the requirements of paragraph 18 of Schedule B1 of the
      Insolvency Act 1986 are satisfied.

              

      

       

      
        	
                12.3.

              	
                The
      Bank may (subject to any necessary approval from the court) end the
      appointment of an Administrator and under this clause 12 appoint a
      replacement for any Administrator whose appointment ends for any
      reason.

              

      

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      
        	
                13.

              	
                Currency
      Indemnity

              

      

       

      If for
the purposes of obtaining judgment in any court in any jurisdiction with respect
to this Debenture it becomes necessary to convert into the currency of such
jurisdiction ("the Judgment Currency") any amount due under this Debenture in
any currency other than the Judgment Currency, then conversion shall be made at
the rate of exchange prevailing on the Business Day (as defined in the Loan and
Security Agreement) before the day on which judgment is given.  For this
purpose "rate of exchange" means the spot rates at which the Bank will on the
relevant date at or about 12 noon UK time sell such currency against the
Judgment Currency.  In the event that there is a change in the rate of
exchange prevailing between the Business Day before the day on which the
judgment is given and the date of payment of the amount due, the Chargor will on
the date of payment pay such additional amounts (if any) as may be necessary to
ensure that the amount paid on such date is the amount in the Judgment Currency
which when converted at the rate of exchange prevailing on the date of payment
is the amount then due under this Debenture in such other currency.  Such
additional amounts (if any) payable under this Clause will be due as a separate
debt and shall not be affected by judgment being obtained for any other sums due
under or in respect of this Debenture.

       

      
        	
                14.

              	
                New
      Accounts

              

      

       

      If the
Bank shall at any time receive actual or constructive notice of any charge or
other interest affecting any part of the property hereby charged then the Bank
may open a new account or accounts for the Chargor and if the Bank does not do
so then the Bank shall be treated as if it had in fact done so at the time when
it received or was deemed to receive notice and as from that time all payments
made by the Chargor to the Bank shall be credited or treated as having been
credited to the new account and shall not operate or reduce the amount secured
by this Debenture at the time when the Bank received or was deemed to have
received such notice.

       

      
        	
                15.

              	
                Further
      Assurance

              

      

       

      The
Chargor shall at its own cost whenever requested by the Bank immediately execute
and sign all such deeds and documents and do all such things as the Bank may
require for the purpose of perfecting or more effectively providing security to
the Bank for the payment and discharge of the monies obligations and liabilities
secured by this Debenture or to facilitate the realisation of the property and
assets mortgaged and charged by this Debenture or the exercise of any rights
vested in the Bank or any Receiver.

       

      
        	
                16.

              	
                Set-off

              

      

       

      The Bank
may at any time after this Debenture has become enforceable and without notice
to the Chargor combine or consolidate all or any of the Chargor’s

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      then
existing accounts with and liabilities to the Bank and set off or transfer any
sum or sums standing to the credit of any one or more of such accounts in or
towards satisfaction of any of the liabilities of the Chargor to the Bank on any
other account or in any other respects.  The Bank shall notify the
Chargor that such a transfer has been made.

       

      
        	
                17.

              	
                Costs
      and Indemnity

              

      

       

      
        	
                17.1.

              	
                All
      costs and expenses incurred by the Bank in relation to this Debenture or
      the monies obligations and liabilities hereby secured including without
      limitation and for the avoidance of doubt all amounts the Bank may from
      time to time require to compensate it for his internal management and
      administrative costs and expenses shall be reimbursed by the Chargor to
      the Bank on demand on a full indemnity basis and until so reimbursed shall
      carry interest at the rate of 3 per cent above the base rate of Barclays
      Bank Plc from time to time from the date of demand to the date of
      reimbursement and be secured on the property charged by this
      Debenture.  A certificate signed by the Bank as to the amount of
      such costs and expenses shall be conclusive and binding upon the
      Chargor.

              

      

       

      
        	
                17.2.

              	
                The
      Bank and every Receiver attorney or other person appointed by the Bank
      under this Debenture and their respective employees (“the Indemnified
      Persons”) shall be entitled to be indemnified on a full indemnity basis
      out of the property charged by this Debenture in respect of all
      liabilities and expenses incurred by any of them in or directly or
      indirectly as a result of the exercise or purported exercise of any of the
      powers authorities or discretions vested in them under this Debenture and
      against all actions proceedings losses costs claims and demands (save
      where the same is due to the gross negligence or wilful misconduct of any
      of the Indemnified Persons) in respect of any matter or thing done or
      omitted in any way relating to the property charged by this Debenture and
      the Bank and any such Receiver may retain and pay all sums in respect of
      the same out of the monies received under the powers conferred by this
      Debenture.

              

      

       

      
        	
                18.

              	
                Miscellaneous

              

      

       

      
        	
                18.1.

              	
                The
      Bank may without discharging or in any way affecting the security created
      by this Debenture or any remedy of the Bank grant time or other indulgence
      or abstain from exercising or enforcing any remedies securities guarantees
      or other rights which it may now or in the future have from or against the
      Chargor and may make any arrangement variation or release with any person
      or persons without prejudice either to this Debenture or the liability of
      the Chargor for the monies obligations and liabilities secured by this
      Debenture.

              

      

       

      
        	
                18.2.

              	
                The
      Bank shall have a full and unfettered right to assign the whole or any
      part of the benefit of this Debenture and the expression ‘the Bank’ shall
      include its successors and assigns and the Bank shall be entitled to
      disclose any information relating to the Chargor and/or its obligations
      and liabilities under this Debenture and/or under the Loan and Security
      Agreement and/or under any of the
other

              

      

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      Loan
Documents (as defined in the Loan and Security Agreement) to any actual or
prospective assignee successor or participant.

       

      
        	
                18.3.

              	
                The
      Chargor shall not and shall not purport to assign, transfer or otherwise
      dispose of any of its rights or obligations under this
      Debenture.

              

      

       

      
        	
                18.4.

              	
                The
      provisions of this Debenture shall be severable and if at any time any one
      or more such provisions is or becomes invalid illegal or unenforceable the
      validity legality and enforceability of the remaining provisions shall not
      in any way be impaired.

              

      

       

      
        	
                18.5.

              	
                The
      rights and remedies of the Bank provided by this Debenture are cumulative
      and are not exclusive of any rights powers or remedies provided by law and
      may be exercised from time to time and as often as the Bank may deem
      expedient.

              

      

       

      
        	
                18.6.

              	
                Any
      reference in this Debenture to any statute or any section of any statute
      shall be deemed to include reference to any statutory modification or
      re-enactment thereof for the time being in
  force.

              

      

       

      
        	
                18.7.

              	
                A
      person who is not a party to this Debenture has no right under the
      Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
      Debenture but this does not affect any right or remedy of a third party
      which exists or is available apart from that
  Act.

              

      

       

      
        	
                19.

              	
                Communications

              

      

       

      
        	
                19.1.

              	
                Every
      notice demand or other communication under this Debenture shall be in
      writing and may be delivered personally or by letter or facsimile
      transmission dispatched as follows:

              

      

       

      (a)           if
to the Bank to:

       

      
        	 	
                Address:

              	
                Silicon
      Valley Bank

                2221
      Washington St.

                One
      Newton Executive Park, Ste 200

                Newton,
      MA 02462-1417, U.S.A

              
	 	
                Fax
      No.

              	
                (001)
      (617) 527-7368

              
	 	
                For
      the Attention of:

              	
                Christine
      Egitto

              

      

      

      (b)           if
to the Chargor:

       

      
        	 	
                Address:

              	
                c/o
      Global Telecom & Technology, Inc

                8484
      Westpark Drive, Suite 720

                McLean,
      VA 22102, U.S.A

              
	 	
                Fax
      No.

              	
                (001)
      (703) 442-5595

              
	 	
                For
      the Attention of:

              	
                Chief
      Financial Officer

              

      

      

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      or such
other address or facsimile number as may be notified in accordance with this
clause by the relevant party to the other party for such purpose.

       

      
        	
                19.2.

              	
                Every
      notice demand or other communication shall be deemed to have been received
      (if sent by post) 24 hours after being posted first class postage prepaid
      (if posted from and to an address within the United Kingdom) or 5 working
      days after being posted prepaid airmail (if posted from or to an address
      outside the United Kingdom) and (if delivered personally or by facsimile
      transmission) at the time of delivery or dispatch if during normal
      business hours on a working day in the place of intended receipt and
      otherwise at the opening of business in that place on the next succeeding
      such working day.

              

      

       

      
        	
                19.3.

              	
                The
      Bank and any Receiver may but shall not be obliged to rely upon and act in
      accordance with any communication which may be or purport to be given by
      telephone or facsimile transmission on behalf of the Chargor by any person
      notified to the Bank by the Chargor as being authorised to give such
      communication without enquiry as to the authority and identity of the
      person making or purporting to make such communication.  The
      Chargor shall indemnify and keep the Bank or any Receiver indemnified on a
      full indemnity basis against all losses, claims, actions, proceedings,
      damages, costs and expenses incurred or sustained by the Bank as a result
      of relying upon or acting in accordance with any such
      communication.

              

      

       

      
        	
                19.4.

              	
                All
      notices, demands or other communications under or in connection with this
      Debenture shall be in English.

              

      

       

      
        	
                20.

              	
                Governing
      Law and Jurisdiction

              

      

       

      
        	
                20.1.

              	
                This
      Debenture and all disputes or claims arising out of or in connection with
      it or its subject matter or formation (including non-contractual disputes
      or claims) shall be governed by and construed in accordance with the laws
      of England and Wales.

              

      

       

      
        	
                20.2.

              	
                The
      parties to this Debenture irrevocably agree that, subject as provided
      below, the courts of England and Wales shall have exclusive jurisdiction
      to settle any dispute or claim that arises out of or in connection with
      this Debenture or its subject matter or formation (including
      non-contractual disputes or claims). Nothing in this clause 20 shall limit
      the right of the Bank to take proceedings against the Chargor in any other
      court of competent jurisdiction, nor shall the taking of proceedings in
      any one or more jurisdictions preclude the taking of proceedings in any
      other jurisdictions, whether concurrently or not, to the extent permitted
      by the law of such other
jurisdiction.

              

      

       

      
        	
                21.

              	
                Certificate

              

      

       

      The
Chargor certifies that neither its entry into the Loan and Security Agreement
nor its entry into this Debenture contravenes its Memorandum and Articles of
Association or any regulations, restrictions, conditions or stipulations
affecting

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      the
charged property and that both the Loan and Security Agreement and this
Debenture have been executed in accordance with such constitutional documents
and other factors.

       

      
        	
                22.

              	
                Land
      Registry Restriction

              

      

       

      Insofar
as the title to any leasehold or freehold property comprised in the property
charged under this Debenture is registered, the Chargor hereby applies to the
Registrar for a restriction in the following terms to be entered on the
register:

       

      “Except
under an Order of the Registrar no disposition of the registered estate by the
proprietor of the registered estate (other than by a prior charge) is to be
registered without a written consent signed by Silicon Valley Bank or by its
solicitors,
[                ]
of
[                          ].”

       

      IN WITNESS WHEREOF this
Debenture has been duly executed and delivered as a Deed on the date written at
the beginning of this Deed.

       

      
        	
                EXECUTED AND DELIVERED
      as a DEED
      by

                acting
      by Richard D CalderJr

                a
      director in the presence of:-

              	
                )

                )

                )

                )

                )

              	
                 

                 

                 

                 

                ................................................

              
	 
      	 
      	
                Director

              

      

      

      

      
        	
                Witness’
      signature

              	
                ..............................

              	 
      
	 
      	 
      	 
      
	
                Name

              	
                ..............................

              	 
      
	 
      	 
      	 
      
	
                Address

              	
                ..............................

              	 
      
	 
      	 
      	 
      
	 
      	
                ..............................

              	 
      
	 
      	 
      	 
      
	
                Occupation

              	
                ..............................

              	 
      

      

      

      

      
        	
                EXECUTED AND DELIVERED
      as a DEED

                on
      behalf of SILICON VALLEY
      BANK

                a
      company incorporated in

                the
      State of California, U.S.A.

                by

                being
      a person who, in accordance

                with
      the laws of that territory, is acting

                under
      the authority of the company

              	
                )

                )

                )

                )

                )

                )

                )

                )

              	 
      
	 
      	 
      	 
      

      

      

       

      
        
           

        

        
          15exv10w1

Exhibit 10.1

GENERAL MILLS, INC.

2009 STOCK COMPENSATION PLAN

1. PURPOSE OF THE PLAN

The purpose of the General Mills, Inc. 2009 Stock Compensation Plan (the “Plan”) is to attract
and retain able individuals by rewarding employees of General Mills, Inc., its subsidiaries and
affiliates (defined as entities in which General Mills, Inc. has a significant equity or other
interest, collectively, the “Company”) and to align the interests of employees with those of the
stockholders of the Company. The Company shall include any successors to General Mills, Inc. or
any future parent corporations or similar entities.

2. EFFECTIVE DATE AND DURATION OF PLAN

This Plan shall become effective as of September 21, 2009, subject to the approval of the
stockholders of the Company at the Annual Meeting on September 21, 2009. Awards may be made under
the Plan until December 31, 2011.

3. ELIGIBLE PERSONS

Only persons who are employees of the Company shall be eligible to receive grants of Stock
Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, and/or Performance
Awards (each defined below) and become “Participants” under the Plan. The Compensation Committee
of the Company’s Board of Directors (the “Committee”) shall exercise the discretionary authority
to determine from time to time the employees of the Company who are eligible to participate in
this Plan.

4. AWARD TYPES

	 	(a)	 	Stock Option Awards. The Committee may award Participants options (“Stock Options”) to
purchase a fixed number of shares of common stock ($.10 par value) of the Company (“Common
Stock”). The grant of a Stock Option entitles the Participant to purchase shares of Common
Stock at an “Exercise Price” established by the Committee which shall not be less than 100%
of the Fair Market Value of the Common Stock on the date of grant, and may exceed the Fair
Market Value on the grant date, at the Committee’s discretion. “Fair Market Value” shall
equal the closing price on the New York Stock Exchange of the Company’s Common Stock on the
applicable date.
	 
	 	(b)	 	Stock Appreciation Rights. The Committee may also award Participants Stock Appreciation
Rights. A Stock Appreciation Right is a right to receive, upon exercise of that right, an
amount, which may be paid in cash, shares of Common Stock, or a combination thereof in the
complete discretion of the Committee, equal to the difference between the Fair Market Value
of one share of Common Stock as of the date of exercise and the Fair Market Value of one
share of Common Stock on the date of grant.
	 
	 	(c)	 	Restricted Stock Awards. The Committee may grant Participants, subject to certain
restrictions, shares of Common Stock (“Restricted Stock”) or the right to receive shares of
Common Stock or cash (“Restricted Stock Units”).
	 
	 	(d)	 	Performance Awards. Performance Awards may be made by the Committee granting a right to
either the value of a number of shares of Common Stock (“Performance Share Units”) or a
monetary amount, which could be settled in such shares or in cash or a combination thereof
(“Performance Units”), determined based on the extent to which applicable performance goals
are achieved.

Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units and
Performance Awards are sometimes referred to as “Awards”. To the extent any Award is subject to
section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), the terms and
administration of such Award shall comply therewith and IRS guidance thereunder. If any provision
of the Plan would otherwise conflict with or frustrate this intent, that provision will be
interpreted and deemed amended so as to avoid the conflict. Further, for purposes of the
limitations on nonqualified deferred compensation under Section 409A, each payment of
compensation under this Plan shall be treated as a separate payment of compensation for purposes
of applying the Section 409A deferral election rules and the exclusion from Section 409A for
certain short-term deferral amounts.

5. COMMON STOCK SUBJECT TO THE PLAN

	 	(a)	 	Maximum Shares Available for Delivery. Subject to Section 5(c), the maximum number of
shares of Common Stock available for Awards to Participants under the Plan shall be
12,000,000. Stock Options and Stock Appreciation Rights awarded shall reduce the number of
shares available for Awards by one share for every one share granted; provided that Stock
Appreciation Rights that may be settled only in cash shall not reduce the number of shares
available for Awards. Awards of Restricted Stock, Restricted Stock Units and Performance
Awards settled in shares of Common Stock shall reduce the number

 

 

	 	 	 	of shares available for Awards by one share for every one share awarded, up to 30 percent of
the total number of shares available; beyond that, Restricted Stock, Restricted Stock Units
and Performance Awards settled in shares of Common Stock shall reduce the number of shares
available for Awards by five shares for every one share awarded. Restricted Stock Units and
Performance Awards that may be settled only in cash shall not reduce the number of shares
available for Awards.

	 	 	 	In addition, any Common Stock covered by a Stock Option or Stock Appreciation Right granted
under the Plan which is forfeited prior to the end of the vesting period shall be deemed not
to be granted for purposes of determining the maximum number of shares of Common Stock
available for Awards under the Plan. In the event a Stock Appreciation Right is settled for
cash, the number of shares deducted against the maximum number of shares provided in Section
5(a) shall be restored and again be available for Awards. However, if (i) any Stock Option or
Stock Appreciation Right that is exercised through the delivery of Common Stock in
satisfaction of the Exercise Price, and (ii) withholding tax requirements arising upon
exercise of any Stock Option or Stock Appreciation Right are satisfied through the withholding
of Common Stock otherwise deliverable in connection with such exercise, the full number of
shares of Common Stock underlying any such Stock Option or Stock Appreciation Right, or
portion thereof being so issued shall count against the maximum number of shares available for
grants under the Plan.
	 
	 	 	 	Upon forfeiture or termination of Restricted Stock, Restricted Stock Units and Performance
Awards prior to vesting, the shares of Common Stock subject thereto shall again be available
for Awards under the Plan.
	 
	 	 	 	The Company will repurchase a number of shares of Common Stock in the public market at least
equal to the number of shares of Common Stock issued under this Plan.
	 
	 	(b)	 	Individual Limits. The number of shares of Common Stock subject to Stock Options and
Stock Appreciation Rights or shares of Common Stock available for Restricted Stock,
Restricted Stock Units and Performance Awards granted under the Plan to any single
Participant shall not exceed, in the aggregate, 1,000,000 shares and/or units per fiscal
year. The maximum dollar value of Performance Awards payable to any single Participant shall
be $20,000,000 per fiscal year. These per-Participant limits shall be construed and applied
consistently with Code section 162(m) and the regulations thereunder.
	 
	 	(c)	 	Adjustments for Corporate Transactions. If a corporate transaction has occurred
affecting the Common Stock such that an adjustment to outstanding Awards is required to
preserve (or prevent enlargement of) the benefits or potential benefits intended at the time
of grant, then in such manner as the Committee deems equitable, an appropriate adjustment
shall be made to (i) the number and kind of shares which may be awarded under the Plan; (ii)
the number and kind of shares subject to outstanding Awards; (iii) the number of shares
credited to an account; (iv) the individual limits imposed under the Plan; and if
applicable; (v) the Exercise Price of outstanding Options and Stock Appreciation Rights
provided that the number of shares of Common Stock subject to any Stock Option or Stock
Appreciation Right denominated in Common Stock shall always be a whole number. For this
purpose a corporate transaction includes, but is not limited to, any dividend or other
distribution (whether in the form of cash, Common Stock, securities of a subsidiary of the
Company, other securities or other property), recapitalization, stock split, reverse stock
split, combination of shares, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase or exchange of Common Stock or other securities of the Company,
issuance of warrants or other rights to purchase Common Stock or other securities of the
Company, or other similar corporate transaction. Notwithstanding anything in this paragraph
to the contrary, an adjustment to a Stock Option or Stock Appreciation Right under this
paragraph shall be made in a manner that will not result in the grant of a new Stock Option
or Stock Appreciation Right under Section 409A.
	 
	 	(d)	 	Limits on Distribution. Distribution of shares of Common Stock or other amounts under
the Plan shall be subject to the following:

	 	(i)	 	Notwithstanding any other provision of the Plan, the Company shall have no
liability to deliver any shares of Common Stock under the Plan or make any other
distribution of benefits under the Plan unless such delivery or distribution would comply
with all applicable laws (including, without limitation, the requirements of the
Securities Act of 1933), and the applicable requirements of any securities exchange or
similar entity.
	 
	 	(ii)	 	To the extent that the Plan provides for issuance of stock certificates to reflect
the issuance of shares of Common Stock or Restricted Stock, the issuance may be effected
on a non-certificated basis, to the extent not prohibited by applicable law or the
applicable rules of any stock exchange.

	 	(e)	 	Stock Deposit Requirements and other Restrictions. The Committee, in its discretion, may
require as a condition to the grant of Awards, the deposit of Common Stock owned by the
Participant receiving such grant, and the forfeiture of such grant, if such deposit is not
made or maintained during the required holding period. Such shares of deposited Common Stock
may not be otherwise sold or disposed of during the applicable holding period or restricted
period. The Committee may also determine whether any shares issued upon exercise of a Stock
Option or Stock Appreciation Right, or attainment of any performance goal, shall be
restricted in any manner.

 

 

6. STOCK OPTIONS AND STOCK APPRECIATION RIGHTS TERMS AND TYPE

	 	(a)	 	General. Stock Options granted under the Plan shall be Non-Qualified Stock Options
governed by Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”). The
term of any Stock Option and Stock Appreciation Right granted under the Plan shall be
determined by the Committee, provided that said term shall not exceed 10 years and one
month.
	 
	 	(b)	 	No Reload Rights. Neither Stock Options nor Stock Appreciation Rights granted under this
Plan shall contain any provision entitling the optionee or right-holder to the automatic
grant of additional options or rights in connection with any exercise of the original option
or right.
	 
	 	(c)	 	No Repricing. Subject to Section 5(c), outstanding Stock Options and Stock Appreciation
Rights granted under this Plan shall under no circumstances be repriced.

7. GRANT, EXERCISE AND VESTING OF STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

	 	(a)	 	Grant. Subject to the limits otherwise imposed by the terms of this Plan, the Committee
has discretionary authority to determine the size of a Stock Option or Stock Appreciation
Right Award, which may be tied to meeting performance-based requirements.
	 
	 	(b)	 	Exercise. Except as provided in Sections 11 and 12 (Change of Control and Termination of
Employment), each Stock Option or Stock Appreciation Right may be exercised only in
accordance with the terms and conditions of the Stock Option grant or Stock Appreciation
Right and during the periods as may be established by the Committee. A Participant
exercising a Stock Option or Stock Appreciation Right shall give notice to the Company of
such exercise and of the number of shares elected to be purchased prior to 4:30 P.M. CST/CDT
on the day of exercise, which must be a business day at the executive offices of the
Company.
	 
	 	(c)	 	Vesting. Stock Options and Stock Appreciation Rights shall not be exercisable unless
vested. Subject to Sections 11 and 12 Stock Options and Stock Appreciation Rights shall be
fully vested only after four years of the Participant’s continued employment with the
Company following the date of the grant.
	 
	 	(d)	 	Payment of Exercise Price. The Exercise Price for Stock Options shall be paid to the
Company at the time of such exercise, subject to any applicable rule or regulation adopted
by the Committee:

	 	(i)	 	in cash (including check, draft, money order or wire transfer made payable to the
order of the Company);
	 
	 	(ii)	 	through the tender of shares of Common Stock owned by the Participant (by either
actual delivery or attestation);
	 
	 	(iii)	 	by a combination of (i) and (ii) above; or
	 
	 	(iv)	 	by authorizing a third party broker to sell a sufficient number of shares of Common
Stock acquired upon exercise of the Stock Option and remit to the Company such sales
proceeds to pay the entire Exercise Price and any tax withholding resulting from the
exercise.

	 	 	 	For determining the amount of the payment, Common Stock delivered pursuant to (ii) or
(iii) shall have a value equal to the Fair Market Value of the Common Stock on the date
of exercise.

8. RESTRICTED STOCK AND RESTRICTED STOCK UNITS

Restricted Stock and Restricted Stock Units may be awarded on either a discretionary or
performance-based method.

	 	(a)	 	Discretionary. With respect to discretionary Awards of Restricted Stock and Restricted
Stock Units, the Committee shall:

	 	(i)	 	Select Participants to whom Awards will be made;
	 
	 	(ii)	 	Subject to the otherwise applicable Plan limits, determine the number of shares of
Restricted Stock or the number of Restricted Stock Units to be awarded to a Participant;
	 
	 	(iii)	 	Determine the length of the restricted period, which shall be no less than four
years;
	 
	 	(iv)	 	Determine the purchase price, if any, to be paid by the Participant for Restricted
Stock or Restricted Stock Units;

 

 

	 	(v)	 	Determine whether Restricted Stock Unit Awards will be settled in shares of Common
Stock, cash or a combination thereof; and
	 
	 	(vi)	 	Determine any restrictions other than those set forth in this Section.

	 	(b)	 	Performance-Based. With respect to Awards of performance-based Restricted Stock and
Restricted Stock Units, the intent is to grant such Awards so as to satisfy the requirements
for “qualified performance-based compensation” under Code Section 162(m). Performance-based
Awards are subject to the following:

	 	(i)	 	The Committee has exclusive authority to determine which Participants may be
awarded performance-based Restricted Stock and Restricted Stock Units and whether any
Restricted Stock Unit Awards will be settled in shares of Common Stock, cash, or a
combination thereof.
	 
	 	(ii)	 	In order for any Participant to be awarded Restricted Stock or Restricted Stock
Units for a Performance Period (defined below), the net earnings from continuing
operations excluding items identified and disclosed by the Company as non-recurring or
special costs and after taxes (“Net Earnings”) of the Company for such Performance Period
must be greater than zero.
	 
	 	(iii)	 	At the end of the Performance Period, if the Committee determines that the
requirement of Section 8(b)(ii) has been met, each Participant eligible for a
performance-based Award shall be deemed to have earned an Award equal in value to the
Maximum Amount, or such lesser amount as the Committee shall determine in its discretion
to be appropriate. The Committee may base this determination on performance-based
criteria and in no case shall this have the effect of increasing an Award payable to any
other Participant. For purposes of computing the value of Awards, each Restricted Stock
or Restricted Stock Unit shall be deemed to have a value equivalent to the Fair Market
Value of one share of Common Stock on the date the Award is granted.
	 
	 	(iv)	 	In addition to the limitation on the number of shares of Common Stock available for
Awards under section 5(b) hereof, in no event shall the total value of the
performance-based Restricted Stock or Restricted Stock Unit Award granted to any
Participant for any one Performance Period exceed 0.5 percent of the Company’s Net
Earnings for that Performance Period (such amount is the “Maximum Amount”).
	 
	 	(v)	 	The Committee shall determine the length of the restricted period which, subject to
Sections 11 and 12, shall be no less than four years.
	 
	 	(vi)	 	“Performance Period” means a fiscal year of the Company, or such other period as
the Committee may from time to time establish.

Subject to the restrictions set forth in this Section, each Participant who receives Restricted
Stock shall have certain rights as a stockholder with respect to such shares, as set forth in the
applicable Award Agreement. Each Participant who is awarded Restricted Stock Units that are
settled in shares of Common Stock shall be eligible to receive, at the expiration of the
applicable restricted period (or such later time as provided herein), one share of Common Stock
for each Restricted Stock Unit awarded, and the Company shall issue to each such Participant that
number of shares of Common Stock. Each Participant who is awarded Restricted Stock Units that are
settled in cash shall receive an amount equal to the Fair Market Value of a share of Common Stock
on the date the applicable restricted period ends, multiplied by the number of Units awarded.
Participants who receive Restricted Stock Units shall have no rights as stockholders with respect
to such Restricted Stock Units until such time as share certificates for Common Stock are issued
to the Participants (if applicable); provided, however, that as of the first day of each quarter,
during the applicable restricted period for all Restricted Stock Units awarded hereunder, the
Company may credit to each such Participant an amount equal to the sum of all dividends and other
distributions paid by the Company during the prior quarter on that equivalent number of shares of
Common Stock. Notwithstanding any provisions of this Section or the Plan to the contrary, any
dividends or other distributions paid on Restricted Stock, or any dividend equivalents or other
distributions credited in respect to Restricted Stock Units, shall be distributed (in either cash
or shares of Common Stock, with or without interest or other earnings, as provided in the Award
Agreement at the discretion of the Committee) to the Participant only if, when, and to the extent
the restrictions imposed on the attendant Restricted Stock or Restricted Stock Units lapse, and
in an amount equal to the sum of all quarterly dividends and other distributions paid by the
Company during the applicable restricted period on the equivalent number of shares of Common
Stock which become unrestricted. Such dividends, dividend equivalents, or other distributions
shall be payable at the same time as the attendant Restricted Stock or Restricted Stock Units to
which they relate, as provided under the applicable terms of the Plan and relevant Award
Agreements. Dividends, dividend equivalents, and other distributions that are not so vested shall
be forfeited.

The Committee may in its discretion permit a Participant to defer receipt of any Common Stock or
cash issuable upon the lapse of any restriction of Restricted Stock or Restricted Stock Units,
subject to such rules and procedures as it may establish. In particular, the Committee shall
establish rules relating to such deferrals intended to comply with the requirements of Code
section 409A,
including without limitation, the time when a deferral election can be made, the period of the
deferral, and the events that would result in payment of the deferred amount.

 

 

9. PERFORMANCE AWARDS

	 	(a)	 	Grant. The Committee may grant Performance Awards which may be denominated in shares of
Common Stock (“Performance Share Units”) or notionally represented by a monetary value, and
which may be settled in shares of Common Stock, paid in cash, or a combination thereof
(“Performance Units”).
	 
	 	(b)	 	Performance Goal. In order for any Participant to be granted a Performance Award for a
Performance Period (defined below), the net earnings from continuing operations excluding
items identified and disclosed by the Company as non-recurring or special costs and after
taxes (“Net Earnings”) of the Company for such Performance Period must be greater than zero.
	 
	 	(c)	 	Grant Size. At the end of the Performance Period, if the Committee determines that the
requirement of Section 9(b) has been met, each Participant eligible for a Performance Award
shall be deemed to be granted an Award equal in value to the Maximum Amount, or such lesser
amount as the Committee determines in its discretion to be appropriate. The Committee may
base this determination on additional performance-based criteria and in no case shall this
have the effect of increasing an Award payable to any other Participant. For purposes of
computing the grant value of Awards, each Performance Award denominated in shares of Common
Stock (whether or not share settled) shall be deemed to have a value equivalent to the Fair
Market Value of one share of Common Stock on the date the Award is granted.
	 
	 	(d)	 	Additional Performance Conditions and Vesting. Awards granted under this Section 9 shall
be subject to such other terms and conditions as the Committee, in its discretion, imposes
in the relevant Award Agreement. These conditions may include service and/or performance
requirements and goals over periods of one or more years that could result in the future
forfeiture of all or part of the Performance Award granted hereunder in the event of the
Participant’s termination of employment with the Company prior to the expiration of any
service conditions, and/or said performance criteria or other conditions are not met in
whole or in part within the designated period of time. This designated period of time shall
be referred to as the “Additional Performance Period”. Except as provided in Sections 11(b),
(c) and 12(c), Performance Awards shall not be paid other than on the date specified in the
relevant Award Agreement after the end of the Additional Performance Period.
	 
	 	(e)	 	Maximum Amount. In addition to the limitation on the dollar value of Performance Awards
and the number of shares of Common Stock available for Awards under Section 5(b), in no
event shall the total value of a Performance Award granted to any Participant for any one
Performance Period exceed 0.5 percent of the Company’s Net Earnings for that Performance
Period (such amount is the “Maximum Amount”).
	 
	 	(f)	 	Performance Period. “Performance Period” means the period as the Committee may from time
to time establish.
	 
	 	(g)	 	Dividend Equivalents and Voting. At the discretion of the Committee, Performance Share
Units may be credited with amounts equal to the sum of all dividends and other distributions
paid by the Company during the prior quarter on that equivalent number of shares of Common
Stock. Notwithstanding the previous sentence, any dividend equivalents or other
distributions so credited shall be distributed (in either cash or shares of Common Stock,
with or without interest or other earnings, as provided in the Award Agreement at the
discretion of the Committee) to the Participant only if, when, and to the extent the
conditions imposed on the attendant Performance Share Units are satisfied, and in an amount
equal to the sum of all quarterly dividends and other distributions paid by the Company
during the relevant Performance Period and/or Additional Performance Period on the
equivalent number of shares of Common Stock which become payable. Such dividend equivalents
or other distributions shall be payable at the same time as the attendant Performance Share
Units to which they relate, as provided under the applicable terms of the Plan and Award
Agreement. Dividend equivalents and other distributions that are not so vested shall be
forfeited. Dividend equivalents shall not be credited in respect to Performance Units.
Participants who receive either Performance Share Units or Performance Units shall have no
rights as stockholders and in particular shall have no voting rights.

The Committee may in its discretion permit a Participant to defer receipt of any Common Stock or
cash issuable under a Performance Award subject to such rules and procedures as it may establish.
In particular, the Committee shall establish rules relating to such deferrals intended to comply
with the requirements of Code section 409A, including without limitation, the time when a
deferral election can be made, the period of the deferral, and the events that would result in
payment of the deferred amount.

10. TAXES

The Company has the right to withhold amounts from Awards to satisfy tax obligations as it deems
appropriate. Whenever the Company issues Common Stock under the Plan, unless it decides to
satisfy the withholding obligations through additional withholding on salary or other wages, it
may require the recipient to remit to the Company an amount sufficient to satisfy any

 

 

Federal, state, local or foreign tax withholding requirements prior to the delivery of such
Common Stock, or the Company may in its discretion withhold from the shares to be delivered
shares sufficient to satisfy all or a portion of such tax withholding requirements.

11. CHANGE OF CONTROL

	 	(a)	 	Each of the following (i) through (iv) constitutes a “Change of Control”:

	 	(i)	 	The acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the 1934 Act), (a “Person”) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the 1934 Act) of voting securities of the Company
where such acquisition causes such Person to own 20% or more of the combined voting power
of the then outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Voting Securities”); provided, however, that
for purposes of this subsection (i), the following acquisitions shall not be deemed to
result in a Change of Control: (A) any acquisition directly from the Company, (B) any
acquisition by the Company, (C) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any corporation controlled by the
Company or (D) any acquisition by any corporation pursuant to a transaction that complies
with clauses (A), (B) and (C) of subsection (iii) below; and provided, further, that if
any Person’s beneficial ownership of the Outstanding Voting Securities reaches or exceeds
20% as a result of a transaction described in clause (A) or (B) above, and such Person
subsequently acquires beneficial ownership of additional voting securities of the
Company, such subsequent acquisition shall be treated as an acquisition that causes such
Person to own 20% or more of the Outstanding Voting Securities; or
	 
	 	(ii)	 	Individuals who, as of the date hereof, constitute the Board of Directors (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, that any individual becoming a director subsequent to the date hereof
whose election, or nomination for election by the Company’s shareholders, was approved by
a vote of at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or
	 
	 	(iii)	 	Consummation of a reorganization, merger, statutory share exchange or
consolidation or similar transaction involving the Company or any of its subsidiaries, a
sale or other disposition of all or substantially all of the assets of the Company, or
the acquisition of assets or stock of another entity by the Company or any of its
subsidiaries (each, a “Business Combination”); excluding however, such a Business
Combination pursuant to which (A) all or substantially all of the individuals and
entities who were the beneficial owners of the Outstanding Voting Securities immediately
prior to such Business Combination beneficially own, directly or indirectly, more than
60% of, respectively, the then outstanding shares of common stock and the combined voting
power of the then outstanding voting securities entitled to vote generally in the
election of directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of the Company’s assets
either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Business Combination of the
Outstanding Company Securities, (B) no Person (excluding any corporation resulting from
such Business Combination or any employee benefit plan (or related trust) of the Company
or such corporation resulting from such Business Combination) beneficially owns, directly
or indirectly, 20% or more of, respectively, the then outstanding shares of common stock
of the corporation resulting from such Business Combination or the combined voting power
of the then outstanding voting securities of such corporation except to the extent that
such ownership existed prior to the Business Combination and (C) at least a majority of
the members of the board of directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of the
initial agreement, or of the action of the Board, providing for such Business
Combination; or
	 
	 	(iv)	 	Approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company.

	 	(b)	 	If, within two years after a Change of Control a Participant experiences an involuntary
separation from service initiated by the Company for reasons other than “cause” (for this
purpose cause shall have the same meaning as that term has in Section 4.2(b)(ii) of Plan B
of the General Mills Separation Pay and Benefits Program for Officers), or a separation from
service for “good reason” actually entitling the employee to certain separation benefits
under Section 4.2(a)(ii) of Plan B of the General Mills Separation Pay and Benefits Program
for Officers, the following applies:

	 	(i)	 	All of his or her outstanding Stock Options and Stock Appreciation Rights shall
fully vest immediately and remain exercisable for the one-year period beginning on the
date of his or her separation from service.

 

 

	 	(ii)	 	All shares of Restricted Stock and Restricted Stock Units shall fully vest and be
settled immediately (subject to a proper deferral election made with respect to the
Award).
	 
	 	(iii)	 	All Performance Awards shall fully vest immediately and shall be considered to be
earned in full “at target” as if the applicable performance goals established for the
Additional Performance Period have been achieved, and paid immediately (subject to a
proper deferral election made with respect to the Award).
	 
	 	(iv)	 	If Awards are replaced pursuant to subsection (d) below, the protections and rights
granted under this subsection (b) shall transfer and apply to such replacement awards.

	 	 	 	Notwithstanding the above, any Restricted Stock Units or Performance Awards subject to Section
409A (not subject to a proper deferral election) shall be settled on the Participant’s
separation from service (within the meaning of Section 409A) or in the case of a Participant
who is a “specified employee” (within the meaning of Section 409A) on the first day of the
seventh month following the month of the Participant’s separation from service.
	 
	 	(c)	 	If, in the event of a Change of Control, and to the extent outstanding Awards are not
assumed by a successor corporation (or affiliate thereto) or other successor entity or
person, or replaced with an award or grant that, solely in the discretionary judgment of the
Committee preserves the existing value of outstanding Awards at the time of the Change of
Control, then, by action of the Committee, the following shall occur:

	 	(i)	 	Subject to the other provisions of this subsection (c), All Stock Options and Stock
Appreciation Rights shall vest and become exercisable immediately upon the Change of
Control event.
	 
	 	(ii)	 	The restrictions on all shares of Restricted Stock shall lapse and Restricted Stock
Units shall vest immediately.
	 
	 	(iii)	 	All Performance Awards shall fully vest immediately and shall be considered to be
earned in full “at target” as if the applicable performance goals established for the
Additional Performance Period have been achieved.
	 
	 	(iv)	 	If the Change of Control constitutes a “change in control” event as described in
IRS regulations or other guidance under Code section 409A(a)(2)(A)(v), Participants’
Restricted Stock Units and Performance Awards shall be settled and paid upon the Change
of Control.
	 
	 	(v)	 	If the Change of Control does not constitute a “change in control” event as
described in IRS regulations or other guidance under Code section 409A(a)(2)(A)(v),
Restricted Stock Units and Performance Awards that are not Section 409A Restricted Stock
Units and/or not otherwise subject to Section 409A, and on which a deferral election was
not made, shall be settled and paid upon the Change of Control. However, the Section 409A
Restricted Stock Units, Performance Awards otherwise subject to Section 409A, or such
Awards for which a proper deferral election was made, shall be settled in cash equal to
either the Award’s Fair Market Value at the time of the Change of Control, or its
monetary value provided for above in (iii), as applicable, plus interest at a rate of
Prime plus 1% from the Change of Control to the date of payment, which shall be the time
the original restriction period would have closed, the Performance Award would have been
originally payable, or the date elected pursuant to the proper deferral election, as
applicable.

	 	 	 	In the discretion of the Committee and notwithstanding subsection (c)(i) above or any other
Plan provision, outstanding Stock Options and Stock Appreciation Rights (both exercisable and
unexercisable) may be cancelled at the time of the Change of Control in exchange for cash,
property, or a combination thereof that is determined by the Committee to be at least equal to
the excess (if any) of the value of the consideration that would be received in such Change of
Control by the holders of Common Stock, over the exercise price for such Awards. For purposes
of clarification, by operation of this provision Stock Options and Stock Appreciation Rights
that would not yield a gain at the time of the Change of Control under the aforementioned
equation are subject to cancellation without consideration. Furthermore, the Committee is
under no obligation to treat Awards and/or Participants uniformly and has the discretionary
authority to treat Awards and Participants disparately.
	 
	 	(d)	 	If in the event of a Change of Control and to the extent outstanding Awards are assumed
by any successor corporation, affiliate thereof, person or other entity, or are replaced
with awards that, solely in the discretionary judgment of the Committee preserve the
existing value of outstanding Awards at the time of the Change of Control and provide for
vesting payout terms, and performance goals, as applicable, that are at least as favorable
to Participants as vesting, payout terms and Performance Goals applicable to Awards, then
all such Awards or such substitutes thereof shall remain outstanding and be governed by
their respective terms.
	 
	 	(e)	 	With respect to any outstanding Awards as of the date of any Change of Control which
require the deposit of owned Common Stock as a condition to obtaining rights, the deposit
requirement shall be terminated as of the date of the Change of Control.

 

 

12. TERMINATION OF EMPLOYMENT

	 	(a)	 	Resignation or Termination for Cause. If the Participant’s employment by the Company is
terminated by either

	 	(i)	 	the voluntary resignation of the Participant, or
	 
	 	(ii)	 	a Company discharge due to Participant’s illegal activities, poor work performance,
misconduct or violation of the Company’s Code of Conduct, policies or practices,

	 	 	 	then the Participant’s Stock Options and Stock Appreciation Rights shall terminate three
months after such termination (but in no event beyond the original full term of the Stock
Options or Stock Appreciation Rights) and no Stock Options or Stock Appreciation Rights shall
become exercisable after such termination, and all shares of Restricted Stock, Restricted
Stock Units which are subject to restriction on the date of termination, and all outstanding
Performance Awards, shall be cancelled and forfeited.
	 
	 	(b)	 	Other Termination. If the Participant’s employment by the Company terminates
involuntarily at the initiation of the Company for any reason other than specified in
Sections 11, 12 (a), (d) or (e), the following rules shall apply:

	 	(i)	 	In the event that, at the time of such involuntary termination, the sum of the
Participant’s age and years of service with the Company equals or exceeds 70, (A) the
Participant’s outstanding Stock Options and Stock Appreciation Rights shall continue to
become exercisable according to the schedule established at the time of grant unless
otherwise provided in the applicable Award Agreement; (B) the restriction on all shares
of Restricted Stock shall lapse and Restricted Stock Units shall vest and be paid (or
deferred, as appropriate) immediately; and (C) any Performance Awards remaining
outstanding during the Additional Performance Period shall fully vest and be payable
according to the original terms of the Award with a value, if any, that otherwise would
be earned under the applicable performance goals originally established under the Award
Agreement based on actual performance (subject to a proper deferral election). Stock
Options and Stock Appreciation Rights shall remain exercisable for the remaining full
term of such Awards.
	 
	 	(ii)	 	In the event that, at the time of such involuntary termination, the sum of the
Participant’s age and years of service with the Company is less than 70, (A) the
Participant’s outstanding unexercisable Stock Options and Stock Appreciation Rights, and
unvested Restricted Stock and Restricted Stock Units, shall become exercisable or vest
and paid or deferred immediately, as the case may be, as of the date of termination, in a
pro-rata amount based on the full months of employment completed during the full vesting
period from the date of grant to the date of termination with such newly-vested Stock
Options and Stock Appreciation Rights, and Stock Options and Stock Appreciation Rights
exercisable on the date of termination, remaining exercisable for the lesser of one year
from the date of termination and the original full term of the Stock Option and/or Stock
Appreciation Right; and (B) the Participant’s Performance Awards remaining outstanding
during the Additional Performance Period shall be payable according to the original terms
of the Award with a value, if any, that otherwise would be earned under the applicable
performance goals originally established under the Award Agreement based on actual
performance, and shall vest at the end of the relevant Additional Performance Period in a
pro-rata amount based on the full months of employment completed during the relevant
Additional Performance Period originally established in the Award Agreement through the
date of termination. All other Stock Options, Stock Appreciation Rights, shares of
Restricted Stock, Restricted Stock Units and Performance Awards shall be forfeited as of
the date of termination. Provided, however, that if the Participant is a Company Senior
Vice President or above, the Participant’s outstanding Stock Options and Stock
Appreciation Rights which, as of the date of termination are not yet exercisable, shall
become exercisable effective as of the date of such termination and, with all outstanding
Stock Options and Stock Appreciation Rights already exercisable on the date of
termination, shall remain exercisable for the lesser of one year following the date of
termination and the original full term of the Stock Option or Stock Appreciation Right;
all shares of Restricted Stock and Restricted Stock Units shall fully vest as of the date
of termination and be paid or deferred immediately; and any outstanding Performance
Awards shall fully vest and be payable according to the original terms of the Award with
a value, if any, that otherwise would be earned under the applicable performance goals
originally established in the Award Agreement (subject to a proper deferral election).

	 	 	 	Notwithstanding the foregoing, any Section 409A Restricted Stock Units that vest under this
Section 12(b) shall be paid on the Participant’s separation from service (within the meaning
of Code section 409A), or in the case of a Participant who is a specified employee (within the
meaning of Code section 409A) shall be paid on the first day of the seventh month following
the month of separation from service.
	 
	 	(c)	 	Death. If a Participant dies while employed by the Company, any Stock Option or Stock
Appreciation Right previously granted under this Plan shall fully vest and become
exercisable upon death and may be exercised by the person designated as such Participant’s
beneficiary or beneficiaries or, in the absence of such designation, by the Participant’s
estate. Stock Options and Stock Appreciation Rights shall remain exercisable for the
remaining full term of such Awards. A Participant who dies while employed by the Company
during any applicable restricted period shall fully vest in such shares of Restricted Stock
or

 

 

	 	 	 	Restricted Stock Units, effective as of the date of death, and such shares or cash shall be
paid as of the first day of the month following death to the designated beneficiary or
beneficiaries. If a Participant dies while employed by the Company during an Additional
Performance Period, all Performance Awards shall fully vest and shall be considered to be
earned in full “at target” as if the applicable performance goals have been achieved, and paid
on the first day of the month following death to the designated beneficiary or beneficiaries.

	 	(d)	 	Retirement. The Committee shall determine, at the time of grant, the treatment of Awards
upon the retirement of the Participant. Unless other terms are specified in the original
Award Agreement, if the termination of employment is due to a Participant’s retirement on or
after age 55 and completion of five years of eligibility service under the General Mills
Pension Plan, the Participant may, effective as of the date of employment termination as a
retiree, exercise a Stock Option or Stock Appreciation Right pursuant to the original terms
and conditions of such Awards; shall fully vest in, and be paid or have deferred, all shares
of Restricted Stock or shares or cash attributable to Restricted Stock Units; and all
Performance Awards shall fully vest and be payable according to the original terms of the
Award with a value, if any, that otherwise would be earned under the applicable performance
goals originally established in the Award Agreement based on actual performance (subject to
a proper deferral election made with respect to the Award). However, the Restricted Stock
Units without a proper deferral election that vest under this Section 12(d) shall be payable
on the Participant’s separation from service (within the meaning of Section 409A) or in the
case of a Participant who is a specified employee (within the meaning of Section 409A) shall
be paid on the first day of the seventh month following the month of separation from
service.
	 
	 	 	 	A Restricted Stock Unit that could vest upon retirement under this Section 12(d) at any time
within the Award’s restricted period shall be referred to as a “Section 409A Restricted Stock
Unit”.
	 
	 	 	 	Notwithstanding the above, the terms of this Section 12(d) shall not apply to a Participant
who, prior to a Change of Control, is terminated for cause as described in Section 12(a)(ii);
said Participant shall be treated as provided in Section 12(a).
	 
	 	(e)	 	Spin-offs and Other Divestitures. If the termination of employment is due to the
divestiture, cessation, transfer, or spin-off of a line of business or other activity of the
Company, the Committee, in its sole discretion, shall determine the conversion, vesting, or
other treatment of all outstanding Awards under the Plan. Such treatment shall be consistent
with Section 409A, and in particular will take into account whether a separation from
service has occurred within the meaning of Section 409A.

13. ADMINISTRATION OF THE PLAN

	 	(a)	 	Administration. The authority to control and manage the operations and administration of
the Plan shall be vested in the Committee in accordance with this Section.
	 
	 	(b)	 	Selection of Committee. The Committee shall be selected by the Board, and shall consist
of two or more outside, disinterested members of the Board who, in the judgment of the
Board, are qualified to administer the Plan as contemplated by Rule 16b-3 of the Securities
and Exchange Act of 1934 (or any successor rule), Code section 162(m) and the regulations
thereunder (or any successors thereto), and any rules and regulations of a stock exchange on
which Common Stock is traded.
	 
	 	(c)	 	Powers of Committee. The authority to manage and control the operations and
administration of the Plan shall be vested in the Committee, subject to the following:

	 	(i)	 	Subject to the provisions of the Plan, the Committee will have the authority and
discretion to select from among the eligible Company employees those persons who shall
receive Awards, to determine the time or times of receipt, to determine the types of
Awards and the number of shares or amounts covered by the Awards, to establish the terms,
conditions, performance criteria, performance period, restrictions, and other provisions
of such Awards, to specify that the Participant’s rights, payments, and benefits with
respect to Awards shall be subject to adjustment, reduction, cancellation, forfeiture, or
recoupment under certain circumstances, and (subject to the restrictions imposed by
Section 14) to cancel or suspend Awards. In making such determinations, the Committee may
take into account the nature of services rendered by the individual, the individual’s
present and potential contribution to the Company’s success and such other factors as the
Committee deems relevant. Such terms and conditions may be evidenced by an agreement
(“Award Agreement”), which need not require execution by the Participant, in which case
acceptance of the Award shall constitute agreement by the Participant with all its terms,
conditions, limitations and forfeiture provisions.
	 
	 	(ii)	 	The Committee will have the authority and discretion to establish terms and
conditions of Awards as the Committee determines to be necessary or appropriate to
conform to applicable requirements or practices of jurisdictions outside of the United
States.
	 
	 	(iii)	 	The Committee will have the authority and discretion to interpret the Plan and
Award Agreements, to establish, modify, and rescind any rules relating to the Plan, to
determine the terms and provisions of any Award Agreements made pursuant to the Plan, to
correct any technical defect(s) or omission(s) in connection with the Plan or Award
Agreement, reconcile

 

 

	 	 	 	any technical inconsistencies in connection with the Plan or Award Agreement, and to make
all other determinations that may be necessary or advisable for the administration of the
Plan.
	 
	 	(iv)	 	Any interpretation of the Plan or Award Agreements by the Committee and any
decision made by it under the Plan or Award Agreements is final and binding.
	 
	 	(v)	 	The Committee will have exclusive authority and discretion to decide how
outstanding Awards will be treated, and is empowered to make all elections among possible
options, consistent with Sections 11(c) and (d).

	 	(d)	 	Delegation by Committee. Except to the extent prohibited by applicable law or the
applicable rules of a stock exchange, the Committee may allocate all or any portion of its
responsibilities and powers to any one or more of its members and may delegate all or any
part of its responsibilities and powers to any person or persons selected by it. Any such
allocation or delegation may be revoked by the Committee at any time.
	 
	 	(e)	 	Designation of Beneficiary. Each Participant to whom an Award has been made under the
Plan may designate a beneficiary or beneficiaries to exercise any Award or to receive any
payment which under the terms of the Plan and the relevant Award Agreement may become
exercisable or payable on or after the Participant’s death. At any time, and from time to
time, any such designation may be changed or cancelled by the Participant without the
consent of any such beneficiary. Any such designation, change or cancellation must be on a
form provided for that purpose by the Committee and shall not be effective until received by
the Committee. Such form may establish other rules as the Committee deems appropriate. If no
beneficiary has been designated by a deceased Participant, or if all the designated
beneficiaries have predeceased the Participant, the beneficiary shall be the Participant’s
estate. If the Participant designates more than one beneficiary, any payments under the Plan
to such beneficiaries shall be made in equal shares unless the Participant has expressly
designated otherwise, in which case the payments shall be made in the shares designated by
the Participant.

14. AMENDMENTS OF THE PLAN

The Committee may from time to time prescribe, amend and rescind rules relating to the Plan.
Subject to the approval of the Board of Directors, where required, the Committee may at any time
terminate, amend, or suspend the operation of the Plan, provided that no action shall be taken by
the Board of Directors or the Committee without the approval of the stockholders which would:

	 	(a)	 	except as provided in Section 5(c), materially increase the number of shares which may be
issued under the Plan;
	 
	 	(b)	 	permit granting of Stock Options or Stock Appreciation Rights at less than Fair Market
Value;
	 
	 	(c)	 	except as provided in Section 5(c), permit the repricing of outstanding Stock Options or
Stock Appreciation Rights; or
	 
	 	(d)	 	amend the individual limits on awards set forth in Section 5(b) which may be granted to
any single Participant.

No termination, modification, suspension, or amendment of the Plan shall alter or impair the
rights of any Participant pursuant to an outstanding Award, in any material respect, without the
consent of the Participant. There is no obligation for uniformity of treatment of Participants or
Awards under the Plan.

15. FOREIGN JURISDICTIONS

The Committee may adopt, amend, and terminate such arrangements, not inconsistent with the intent
of the Plan, as it may deem necessary or desirable to make available tax or other benefits of the
laws of any foreign jurisdiction, to employees of the Company who are subject to such laws and
who receive Awards under the Plan.

16. TRANSFERABILITY OF AWARDS

Except as otherwise provided by rules of the Committee, no Stock Options or Stock Appreciation
Right shall be transferable by a Participant otherwise than (i) by the Participant’s last will
and testament or (ii) by the applicable laws of descent and distribution, and such Stock Options
or Stock Appreciation Right shall be exercised during the Participant’s lifetime only by the
Participant or his or her guardian or legal representative. Except as otherwise provided in
Sections 8 or 9, no shares of Restricted Stock, no Restricted Stock Units and no Performance
Awards shall be sold, exchanged, transferred, pledged or otherwise disposed of during the
restricted period.

 

 

17. NON-ALIENATION OF RIGHTS AND BENEFITS.

Subject to Section 16 and the rights of the Company established under the Plan’s terms, no right
or benefit under the Plan shall be subject to alienation, sale, assignment, pledge, or
encumbrance and any attempt to do so shall be void. No right or benefit under the Plan be subject
to the debts, contracts, liabilities or torts of the person entitled to such rights or benefits.

18. LIMITATION OF LIABILITY OR OBLIGATION OF THE COMPANY.

Nothing in the Plan shall be construed

	 	(a)	 	to give any employee of the Company any right to be granted any Award other than at the
sole discretion of the Committee;
	 
	 	(b)	 	to give any Participant any rights whatsoever with respect to shares of Common Stock
except as specifically provided in the Plan;
	 
	 	(c)	 	to limit in any way the right of the Company or any Subsidiary to terminate, change or
modify, with or without cause, the employment of any Participant at any time; or
	 
	 	(d)	 	to be evidence of any agreement or understanding, express or implied, that the Company or
any Subsidiary will employ any Participant in any particular position at any particular rate
of compensation or for any particular period of time.

Payments and other benefits received by a Participant under an Award shall not be deemed part of
a Participant’s regular, recurring compensation for purposes of any termination, indemnity or
severance pay laws and shall not be included in, nor have any effect on, the determination of
benefits under any other employee benefit plan, contract or similar arrangement provided by the
Company or any Subsidiary, unless expressly so provided by such other plan, contract or
arrangement.

19. NO LOANS

The Company shall not lend money to any Participant to finance a transaction under this Plan.

20. NOTICES

All notices to the Company regarding the Plan shall be in writing, effective as of actual receipt
by the Company, and shall be sent to:

Attention: Corporate Compensation

General Mills, Inc.

Number One General Mills Boulevard

Minneapolis, MN 55426

21. RECOGNITION AWARDS

Notwithstanding any other provision of the Plan to the contrary, the Committee is given the
discretionary authority to award up to a total of 10,000 unrestricted shares of Common Stock
during each calendar year to selected employees as a bonus or reward (“Recognition Awards”).
Under this paragraph no employee shall receive over 100 shares of Common Stock as Recognition
Awards over the duration of the Plan’s term.

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