Document:

Exhibit

DARDEN RESTAURANTS, INC.
2015 OMNIBUS INCENTIVE PLAN

	
			
	TABLE OF CONTENTS
	Page

	1.   PURPOSE
	1
	 

	2.   DEFINITIONS
	1
	 

	3.   ADMINISTRATION OF THE PLAN
	8
	 

	3.1   Committee
	8
	 

	3.1.1   Powers and Authorities
	8
	 

	3.1.2   Composition of the Committee
	9
	 

	3.1.3   Other Committees
	9
	 

	3.1.4   Delegation by Committee
	9
	 

	3.2   Board
	10
	 

	3.3   Terms of Awards
	10
	 

	3.3.1   Committee Authority
	10
	 

	3.3.2   Forfeiture; Recoupment
	10
	 

	3.4   No Repricing Without Stockholder Approval
	11
	 

	3.5   Deferral Arrangement
	11
	 

	3.6   Registration; Share Certificates
	11
	 

	4.   STOCK SUBJECT TO THE PLAN
	11
	 

	4.1   Number of Shares of Stock Available for Awards
	11
	 

	4.2   Adjustments in Authorized Shares of Stock
	12
	 

	4.3   Share Usage
	12
	 

	5.   TERM; AMENDMENT AND TERMINATION
	12
	 

	5.1   Term
	12
	 

	5.2   Amendment, Suspension, and Termination
	13
	 

	6.   AWARD ELIGIBILITY AND LIMITATIONS
	13
	 

	6.1   Eligible Grantees
	13
	 

	6.2   Limitation on Shares of Stock Subject to Awards and Cash Awards
	13
	 

	6.3   Stand-Alone, Additional, Tandem, and Substitute Awards
	13
	 

	6.4   Minimum Vesting Period
	14
	 

	7.   AWARD AGREEMENT
	14
	 

	8.   TERMS AND CONDITIONS OF OPTIONS
	14
	 

	8.1   Option Price
	14
	 

	8.2   Vesting and Exercisability
	14
	 

	8.3   Term
	14
	 

	8.4   Termination of Service
	15
	 

	8.5   Limitations on Exercise of Option
	15
	 

	8.6   Method of Exercise
	15
	 

	8.7   Rights of Holders of Options
	15
	 

	8.8   Delivery of Stock
	15
	 

	8.9   Transferability of Options
	15
	 

	8.10   Family Transfers
	15
	 

	8.11   Limitations on Incentive Stock Options
	16
	 

	
			
	8.12   Notice of Disqualifying Disposition
	16
	 

	9.   TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS
	16
	 

	9.1   Right to Payment and SAR Price
	16
	 

	9.2   Other Terms
	16
	 

	9.3   Term
	16
	 

	9.4   Rights of Holders of SARs
	17
	 

	9.5   Transferability of SARs
	17
	 

	9.6   Family Transfers
	17
	 

	10.   TERMS AND CONDITIONS OF RESTRICTED STOCK, RESTRICTED STOCK UNITS, AND DEFERRED STOCK UNITS
	17
	 

	10.1   Grant of Restricted Stock, Restricted Stock Units, and Deferred Stock Units
	17
	 

	10.2   Restrictions
	17
	 

	10.3   Registration; Restricted Stock Certificates
	17
	 

	10.4   Rights of Holders of Restricted Stock
	18
	 

	10.5   Rights of Holders of Restricted Stock Units and Deferred Stock Units
	18
	 

	10.5.1   Voting and Dividend Rights
	18
	 

	10.5.2   Creditor’s Rights
	18
	 

	10.6   Termination of Service
	18
	 

	10.7   Purchase of Restricted Stock and Shares of Stock Subject to Restricted Stock Units and Deferred Stock Units
	19
	 

	10.8   Delivery of Shares of Stock
	19
	 

	11.   TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS
	19
	 

	11.1   Unrestricted Stock Awards
	19
	 

	11.2   Other Equity-Based Awards
	19
	 

	12.   TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS
	20
	 

	12.1   Dividend Equivalent Rights
	20
	 

	12.2   Termination of Service
	20
	 

	13.   TERMS AND CONDITIONS OF PERFORMANCE-BASED AWARDS
	20
	 

	13.1   Grant of Performance-Based Awards
	20
	 

	13.2   Value of Performance-Based Awards
	20
	 

	13.3   Earning of Performance-Based Awards
	21
	 

	13.4   Form and Timing of Payment of Performance-Based Awards
	21
	 

	13.5   Performance Conditions
	21
	 

	13.6   Performance-Based Awards Granted to Designated Covered Employees
	21
	 

	13.6.1   Performance Goals Generally
	21
	 

	13.6.2   Timing For Establishing Performance Goals
	21
	 

	13.6.3   Payment of Awards; Other Terms
	22
	 

	13.6.4   Performance Measures
	22
	 

	13.6.5   Evaluation of Performance
	24
	 

	13.6.6   Adjustment of Performance-Based Compensation
	24
	 

	13.6.7   Committee Discretion
	24
	 

	13.6.8   Status of Awards Under Code Section 162(m)
	25
	 

	
			
	14.   FORMS OF PAYMENT
	25
	 

	14.1   General Rule
	25
	 

	14.2   Surrender of Shares of Stock
	25
	 

	14.3   Cashless Exercise
	25
	 

	14.4   Other Forms of Payment
	25
	 

	15.   REQUIREMENTS OF LAW
	25
	 

	15.1   General
	25
	 

	15.2   Rule 16b-3
	26
	 

	16.   EFFECT OF CHANGES IN CAPITALIZATION
	26
	 

	16.1   Changes in Stock
	26
	 

	16.2   Reorganization in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control
	27
	 

	16.3   Change in Control in which Awards are not Assumed
	27
	 

	16.4   Change in Control in which Awards are Assumed
	28
	 

	16.5   Adjustments
	29
	 

	16.6   No Limitations on Company
	29
	 

	17.   PARACHUTE LIMITATIONS
	29
	 

	18.   GENERAL PROVISIONS
	30
	 

	18.1   Disclaimer of Rights
	30
	 

	18.2   Nonexclusivity of the Plan
	30
	 

	18.3   Withholding Taxes
	30
	 

	18.4   Captions
	31
	 

	18.5   Construction
	31
	 

	18.6   Other Provisions
	31
	 

	18.7   Number and Gender
	31
	 

	18.8   Severability
	31
	 

	18.9   Governing Law
	31
	 

	18.10   Section 409A of the Code
	31
	 

	18.11   Limitation on Liability
	32
	 

DARDEN RESTAURANTS, INC.
2015 OMNIBUS INCENTIVE PLAN
		
	1.
	PURPOSE 

The Plan is intended to (a) provide eligible individuals with an incentive to contribute to the success of the Company and to operate and manage the Company’s business in a manner that will provide for the Company’s long-term growth and profitability and that will benefit its stockholders and other important stakeholders, including its employees and customers, and (b) provide a means of recruiting, rewarding, and retaining key personnel.  To this end, the Plan provides for the grant of Awards of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Deferred Stock Units, Unrestricted Stock, Dividend Equivalent Rights, Performance Shares and other Performance-Based Awards, Other Equity-Based Awards, and cash bonus awards.  Any of these Awards may, but need not, be made as performance incentives to reward the holders of such Awards for the achievement of performance goals in accordance with the terms of the Plan.  Options granted under the Plan may be Nonqualified Stock Options or Incentive Stock Options, as provided herein.
		
	2.
	DEFINITIONS 

For purposes of interpreting the Plan documents, including the Plan and Award Agreements, the following capitalized terms shall have the meanings specified below, unless the context clearly indicates otherwise:
2.1“Accounting Firm” shall mean a nationally recognized accounting firm, or actuarial, benefits or compensation consulting firm (with experience in performing the calculations regarding the applicability of Code Section 280G and of the tax imposed by Code Section 4999) selected by the Company immediately prior to a Change in Control.
2.2“Affiliate” shall mean any Person that controls, is controlled by, or is under common control with the Company within the meaning of Rule 405 of Regulation C under the Securities Act, including any Subsidiary.  For purposes of grants of Options or Stock Appreciation Rights, an entity may not be considered an Affiliate unless the Company holds a Controlling Interest in such entity.
2.3“Applicable Laws” shall mean the legal requirements relating to the Plan and the Awards under (a) applicable provisions of the Code, the Securities Act, the Exchange Act, any rules or regulations thereunder, and any other laws, rules, regulations, and government orders of any jurisdiction applicable to the Company or its Affiliates, (b) applicable provisions of the corporate, securities, tax, and other laws, rules, regulations, and government orders of any jurisdiction applicable to Awards granted to residents thereof, and (c) the rules of any Stock Exchange or Securities Market on which the Stock is listed or publicly traded.
2.4“Award” shall mean a grant under the Plan of an Option, a Stock Appreciation Right, Restricted Stock, a Restricted Stock Unit, a Deferred Stock Unit, Unrestricted Stock, a Dividend Equivalent Right, a Performance Share or other Performance-Based Award, an Other Equity-Based Award, or cash.
2.5“Award Agreement” shall mean the written agreement, in such written, electronic, or other form as determined by the Committee, between the Company and a Grantee that evidences and sets forth the terms and conditions of an Award.
2.6“Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.
2.7“Board” shall mean the Board of Directors of the Company.
2.8“Cause” shall have the meaning set forth in an applicable agreement between a Grantee and the Company or an Affiliate, and in the absence of any such agreement, shall mean, with respect to any Grantee and as determined by the Committee, (a) an act or acts of fraud or misappropriation on the Grantee’s part which result in or are intended to result in 

the Grantee’s personal enrichment at the expense of the Company and which constitute a criminal offense under state or federal laws, (ii) the Grantee’s continued failure to substantially perform the Grantee’s duties with the Company (other than any such failure resulting from the Grantee’s incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Grantee by the Committee, which demand specifically identifies the manner in which the Committee believes that the Grantee has not substantially performed the Grantee’s duties; (iii) the Grantee’s willful engagement in conduct that is demonstrably and materially injurious to the Company, monetarily or otherwise; or (iv) the Grantee’s conviction of, or entering into a plea of either guilty or nolo contendere to, any felony, including, but not limited to, a felony involving moral turpitude, embezzlement, theft or similar act that occurred during or in the course of the Grantee’s employment with the Company.  For purposes of the Plan, an act, or failure to act, shall not be deemed to be “willful” unless it is done, or omitted to be done, by the Grantee in bad faith or without a reasonable belief that the action or omission was in the best interests of the Company.
2.9“Capital Stock” shall mean, with respect to any Person, any and all shares, interests, participations, or other equivalents (however designated, whether voting or non-voting) in equity of such Person, whether outstanding on the Effective Date or issued thereafter, including, without limitation, all shares of Stock.
2.10“Change in Control” shall mean, subject to Section 18.10, the occurrence of any of the following:
(a)    Any individual, entity or group (within the meaning of Section 13d(3) or 14(d)(2) of the Exchange Act) becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty percent 30% or more of either (i) the then-outstanding shares of Stock (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then-outstanding Voting Stock of the Company (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this Section 2.10(a), the following acquisitions shall not constitute a Change in 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 company controlled by, controlling or under common control with the Company or (D) any acquisition pursuant to a transaction that complies with Sections 2.10(b)(i), (ii) and (iii);
(b)    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 securities of another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (i) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than fifty percent 50% of the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, 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 Common Stock and the Outstanding Company Voting Securities, as the case may be, (ii) no individual, entity or group (within the meaning of Section 13d(3) or 14(d)(2) of the Exchange Act) (excluding any entity resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, thirty percent 30% or more of, respectively, the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) of the entity resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such entity, except to the extent that such ownership existed prior to the Business Combination, and (iii) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting from such 

Business Combination were members of the Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or
(c)    Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.
The Board shall have full and final authority, in its sole discretion, to determine conclusively whether a Change in Control has occurred pursuant to the above definition, the date of the occurrence of such Change in Control, and any incidental matters relating thereto.
2.11“Code” shall mean the Internal Revenue Code of 1986, as amended, as now in effect or as hereafter amended, and any successor thereto.  References in the Plan to any Code Section shall be deemed to include, as applicable, regulations and guidance promulgated under such Code Section.
2.12“Committee” shall mean a committee of, and designated from time to time by resolution of, the Board, which shall be constituted as provided in Section 3.1.2 and Section 3.1.3 (or, if no Committee has been so designated, the Board).
2.13“Company” shall mean Darden Restaurants, Inc. and any successor thereto.
2.14“Controlling Interest” shall have the meaning set forth in Treasury Regulation Section 1.414(c)-2(b)(2)(i); provided that (a) except as specified in clause (b) below, an interest of “at least 50 percent” shall be used instead of an interest of “at least 80 percent” in each case where “at least 80 percent” appears in Treasury Regulation Section 1.414(c)-2(b)(2)(i) and (b) where a grant of Options or Stock Appreciation Rights is based upon a legitimate business criterion, an interest of “at least 20 percent” shall be used instead of an interest of “at least 80 percent” in each case where “at least 80 percent” appears in Treasury Regulation Section 1.414(c)-2(b)(2)(i).
2.15“Covered Employee” shall mean a Grantee who is, or could become, a “covered employee” within the meaning of Code Section 162(m)(3).
2.16“Deferred Stock Unit” shall mean a Restricted Stock Unit, the terms of which provide for delivery of the underlying shares of Stock, cash, or a combination thereof subsequent to the date of vesting, at a time or times consistent with the requirements of Code Section 409A.
2.17“Dividend Equivalent Right” shall mean a right, granted to a Grantee pursuant to Section 12, entitling the Grantee thereof to receive, or to receive credits for the future payment of, cash, Stock, other Awards, or other property equal in value to dividend payments or distributions, or other periodic payments, declared or paid with respect to a number of shares of Stock specified in such Dividend Equivalent Right (or other Award to which such Dividend Equivalent Right relates) as if such shares of Stock had been issued to and held by the Grantee of such Dividend Equivalent Right as of the record date.
2.18“Effective Date” shall mean September 17, 2015.
2.19“Employee” shall mean, as of any date of determination, an employee (including an officer) of the Company or an Affiliate.
2.20“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, as now in effect or as hereafter amended, and any successor thereto.
2.21“Excise Tax” shall mean, collectively, (i) the tax imposed by Section 4999 of the Code, (ii) any similar tax imposed by state or local law, and (iii) any interest or penalties with respect to any tax described in clause (i) or (ii).

2.22“Fair Market Value” shall mean the fair market value of a share of Stock for purposes of the Plan, which shall be, as of any date of determination:
(a)    If on such date the shares of Stock are listed on a Stock Exchange, or are publicly traded on another Securities Market, the Fair Market Value of a share of Stock shall be the closing price of the Stock as reported on such Stock Exchange or such Securities Market (provided that, if there is more than one such Stock Exchange or Securities Market, the Committee shall designate the appropriate Stock Exchange or Securities Market for purposes of the Fair Market Value determination).  If there is no such reported closing price on such date, the Fair Market Value of a share of Stock shall be the closing price of the Stock on the next preceding day on which any sale of Stock shall have been reported on such Stock Exchange or such Securities Market.
(b)    If on such date the shares of Stock are not listed on a Stock Exchange or publicly traded on a Securities Market, the Fair Market Value of a share of Stock shall be the value of the Stock as determined by the Committee by the reasonable application of a reasonable valuation method, in a manner consistent with Code Section 409A.
Notwithstanding this Section 2.22 or Section 18.3, for purposes of determining taxable income and the amount of the related tax withholding obligation pursuant to Section 18.3, the Fair Market Value will be determined by the Committee in good faith using any reasonable method as it deems appropriate, to be applied consistently with respect to Grantees; provided, further, that the Committee shall determine the Fair Market Value of shares of Stock for tax withholding obligations due in connection with sales, by or on behalf of a Grantee, of such shares of Stock subject to an Award to pay the Option Price, SAR Price, and/or any tax withholding obligation on the same date on which such shares may first be sold pursuant to the terms of the applicable Award Agreement (including broker-assisted cashless exercises of Options and Stock Appreciation Rights, as described in Section 14.3, and sell-to-cover transactions) in any manner consistent with applicable provisions of the Code, including but not limited to using the sale price of such shares on such date (or if sales of such shares are effectuated at more than one sale price, the weighted average sale price of such shares on such date) as the Fair Market Value of such shares, so long as such Grantee has provided the Company, or its designee or agent, with advance written notice of such sale.
2.23“Family Member” shall mean, with respect to any Grantee as of any date of determination, (a) a Person who is a spouse, former spouse, child, stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive relationships, of such Grantee, (b) any Person sharing such Grantee’s household (other than a tenant or employee), (c) a trust in which any one or more of the Persons specified in clauses (a) and (b) above (and such Grantee) own more than fifty percent (50%) of the beneficial interest, (d) a foundation in which any one or more of the Persons specified in clauses (a) and (b) above (and such Grantee) control the management of assets, and (e) any other entity in which one or more of the Persons specified in clauses (a) and (b) above (and such Grantee) own more than fifty percent (50%) of the voting interests.
2.24“Grant Date” shall mean, as determined by the Committee, the latest to occur of (a) the date as of which the Committee approves the Award, (b) the date on which the recipient of an Award first becomes eligible to receive an Award under Section 6 hereof (e.g., in the case of a new hire, the first date on which such new hire performs any Service), or (c) such subsequent date specified by the Committee in the corporate action approving the Award.
2.25“Grantee” shall mean a Person who receives or holds an Award under the Plan.
2.26“Group” shall have the meaning set forth in Sections 13(d) and 14(d)(2) of the Exchange Act.
2.27“Incentive Stock Option” shall mean an “incentive stock option” within the meaning of Code Section 422.

2.28“Net After-Tax Receipt” shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of a Payment net of all taxes imposed on the Executive with respect thereto under Sections 1 and 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied to the Grantee’s taxable income for the immediately preceding taxable year, or such other rate(s) as the Grantee certifies, in the Grantee’s sole discretion, as likely to apply to the Grantee in the relevant tax year(s).
2.29“Nonqualified Stock Option” shall mean an Option that is not an Incentive Stock Option.
2.30“Non-Employee Director” shall have the meaning set forth in Rule 16b-3 under the Exchange Act.
2.31“Officer” shall have the meaning set forth in Rule 16a-1(f) under the Exchange Act.
2.32“Option” shall mean an option to purchase one or more shares of Stock at a specified Option Price awarded to a Grantee pursuant to Section 8.
2.33“Option Price” shall mean the per share exercise price for shares of Stock subject to an Option.
2.34“Other Equity-Based Award” shall mean an Award representing a right or other interest that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to Stock, other than an Option, a Stock Appreciation Right, Restricted Stock, a Restricted Stock Unit, a Deferred Stock Unit, Unrestricted Stock, a Dividend Equivalent Right, or a Performance Share or other Performance-Based Award.
2.35“Outside Director” shall have the meaning set forth in Code Section 162(m)(4)(C)(i).
2.36“Reduced Amount” shall mean $1,000.00 less than the greatest amount of Payments that can be paid that would not result in the imposition of the excise tax under Section 4999 of the Code if the Accounting Firm determines to reduce Payments pursuant to Section 17.
2.37“Performance-Based Award” shall mean an Award of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Deferred Stock Units, Performance Shares, Other Equity-Based Awards, or cash made subject to the achievement of performance goals (as provided in Section 13) over a Performance Period specified by the Committee.
2.38“Performance-Based Compensation” shall mean compensation under an Award that is intended to satisfy the requirements of Code Section 162(m) for Qualified Performance-Based Compensation paid to Covered Employees.  Notwithstanding the foregoing, nothing in the Plan shall be construed to mean that an Award which does not satisfy the requirements for Qualified Performance-Based Compensation does not constitute performance-based compensation for other purposes, including the purposes of Code Section 409A.
2.39“Performance Measures” shall mean measures as specified in Section 13.6.4 on which the performance goal or goals under Performance-Based Awards are based and which are approved by the Company’s stockholders pursuant to, and to the extent required by, the Plan in order to qualify such Performance-Based Awards as Performance-Based Compensation.
2.40“Performance Period” shall mean the period of time, up to ten (10) years, during or over which the performance goals under Performance-Based Awards must be met in order to determine the degree of payout and/or vesting with respect to any such Performance-Based Awards.
2.41“Performance Shares” shall mean a Performance-Based Award representing a right or other interest that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to Stock, 

made subject to the achievement of performance goals (as provided in Section 13) over a Performance Period of up to ten (10) years.
2.42“Person” shall mean an individual, a corporation, a partnership, a limited liability company, an association, a trust, or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.
2.43“Plan” shall mean this Darden Restaurants, Inc. 2015 Omnibus Incentive Plan, as amended from time to time.
2.44“Prior Plan” shall mean the Darden Restaurants, Inc. 2002 Stock Incentive Plan, as amended from time to time.
2.45“Qualified Performance-Based Compensation” shall have the meaning set forth in Code Section 162(m).
2.46“Restricted Period” shall mean a period of time established by the Committee during which an Award of Restricted Stock, Restricted Stock Units, or Deferred Stock Units is subject to restrictions.
2.47“Restricted Stock” shall mean shares of Stock awarded to a Grantee pursuant to Section 10.
2.48“Restricted Stock Unit” shall mean a bookkeeping entry representing the equivalent of one (1) share of Stock awarded to a Grantee pursuant to Section 10 that may be settled, subject to the terms and conditions of the applicable Award Agreement, in shares of Stock, cash, or a combination thereof.
2.49“SAR Price” shall mean the per share exercise price of a SAR.
2.50“Securities Act” shall mean the Securities Act of 1933, as amended, as now in effect or as hereafter amended, and any successor thereto.
2.51“Securities Market” shall mean an established securities market.
2.52“Separation from Service” shall have the meaning set forth in Code Section 409A.
2.53“Service” shall mean service qualifying a Grantee as a Service Provider to the Company or an Affiliate.  Unless otherwise provided in the applicable Award Agreement, a Grantee’s change in position or duties shall not result in interrupted or terminated Service, so long as such Grantee continues to be a Service Provider to the Company or an Affiliate.  Subject to the preceding sentence, any determination by the Committee whether a termination of Service shall have occurred for purposes of the Plan shall be final, binding, and conclusive.  If a Service Provider’s employment or other Service relationship is with an Affiliate and the applicable entity ceases to be an Affiliate, a termination of Service shall be deemed to have occurred when such entity ceases to be an Affiliate unless the Service Provider transfers his or her employment or other Service relationship to the Company or any other Affiliate.
2.54“Service Provider” shall mean (a) an Employee or director of the Company or an Affiliate, or (b) a consultant or adviser to the Company or an Affiliate (i) who is a natural person, (ii) who is currently providing bona fide services to the Company or an Affiliate, and (iii) whose services are not in connection with the Company’s sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s Capital Stock.
2.55“Service Recipient Stock” shall have the meaning set forth in Code Section 409A.

2.56“Share Limit” shall have the meaning set forth in Section 4.1.
2.57“Short-Term Deferral Period” shall have the meaning set forth in Code Section 409A.
2.58“Stock” shall mean the common stock, without par value, of the Company, or any security into which shares of Stock may be changed or for which shares of Stock may be exchanged as provided in Section 16.1.
2.59“Stock Appreciation Right” or “SAR” shall mean a right granted to a Grantee pursuant to Section 9.
2.60“Stock Exchange” shall mean the New York Stock Exchange, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, or another established national or regional stock exchange.
2.61“Subsidiary” shall mean any corporation (other than the Company) or non-corporate entity with respect to which the Company owns, directly or indirectly, fifty percent (50%) or more of the total combined voting power of all classes of Voting Stock.  In addition, any other entity may be designated by the Committee as a Subsidiary, provided that (a) such entity could be considered as a subsidiary according to generally accepted accounting principles in the United States of America and (b) in the case of an Award of Options or Stock Appreciation Rights, such Award would be considered to be granted in respect of Service Recipient Stock under Code Section 409A.
2.62“Substitute Award” shall mean an Award granted upon assumption of, or in substitution for, outstanding awards previously granted under a compensatory plan of the Company, an Affiliate, or a business entity acquired or to be acquired by the Company or an Affiliate or with which the Company or an Affiliate has combined or will combine.
2.63“Ten Percent Stockholder” shall mean a natural Person who owns more than ten percent (10%) of the total combined voting power of all classes of Voting Stock of the Company, the Company’s parent (if any), or any of the Company’s Subsidiaries.  In determining stock ownership, the attribution rules of Code Section 424(d) shall be applied.
2.64“Unrestricted Stock” shall mean Stock that is free of any restrictions.
2.65“Voting Stock” shall mean, with respect to any Person, Capital Stock of any class or kind ordinarily having the power to vote for the election of directors, managers, or other voting members of the governing body of such Person.
		
	3.
	ADMINISTRATION OF THE PLAN

3.1Committee.
3.1.1Powers and Authorities. The Committee shall administer the Plan and shall have such powers and authorities related to the administration of the Plan as are consistent with the Company’s articles of incorporation and bylaws and Applicable Laws.  Without limiting the generality of the foregoing, the Committee shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan, any Award, or any Award Agreement and shall have full power and authority to take all such other actions and to make all such other determinations not inconsistent with the specific terms and provisions of the Plan which the Committee deems to be necessary or appropriate to the administration of the Plan, any Award, or any Award Agreement.  All such actions and determinations shall be made by (a) the affirmative vote of a majority of the members of the Committee present at a meeting at which a quorum is present, or (b) the unanimous consent of the members of the Committee executed in writing or evidenced by electronic transmission in accordance with the Company’s articles of incorporation and bylaws and Applicable Laws.  Unless otherwise expressly determined by the Board, the Committee shall have the authority to interpret and construe all provisions of the Plan, any Award, and any Award Agreement, and any such interpretation or construction, and any other determination contemplated to be made under the Plan or any Award Agreement, by the Committee shall be final, binding, and conclusive on all Persons, whether or not expressly provided for in any provision of the Plan, such Award, or such Award Agreement.

In the event that the Plan, any Award, or any Award Agreement provides for any action to be taken by the Board or any determination to be made by the Board, such action may be taken or such determination may be made by the Committee constituted in accordance with this Section 3.1 if the Board has delegated the power and authority to do so to such Committee.

3.1.2Composition of the Committee. The Committee shall be a committee composed of not fewer than two (2) directors of the Company designated by the Board to administer the Plan.  Each member of the Committee shall be (a) a Non-Employee Director, (b) an Outside Director, and (c) an independent director in accordance with the rules of any Stock Exchange on which the Stock is listed; provided that any action taken by the Committee shall be valid and effective whether or not members of the Committee at the time of such action are later determined not to have satisfied the requirements for membership set forth in this Section 3.1.2 or otherwise provided in any charter of the Committee.  Without limiting the generality of the foregoing, the Committee may be the Compensation Committee of the Board or a subcommittee thereof if the Compensation Committee of the Board or such subcommittee satisfies the foregoing requirements.
3.1.3Other Committees. The Board also may appoint one or more committees of the Board, each composed of one or more directors of the Company who need not be Outside Directors, which (a) may administer the Plan with respect to Grantees who are not Officers or directors of the Company, (b) may grant Awards under the Plan to such Grantees, and (c) may determine all terms of such Awards, in each case, excluding (for the avoidance of doubt) Performance-Based Awards intending to constitute Qualified Performance-Based Compensation and subject, if applicable, to the requirements of Rule 16b-3 under the Exchange Act and the rules of any Stock Exchange or Securities Market on which the Stock is listed or publicly traded.
3.1.4Delegation by Committee. To the extent permitted by Applicable Laws, the Committee may, by resolution, delegate some or all of its authority with respect to the Plan and Awards to the Chief Executive Officer of the Company and/or any other officer of the Company designated by the Committee, provided that the Committee may not delegate its authority hereunder (a) to make Awards to directors of the Company, (b) to make Awards to Employees who are (i) Officers, (ii) Covered Employees, or (iii) officers of the Company who are delegated authority by the Committee pursuant to this Section 3.1.4, or (c) to interpret the Plan, any Award, or any Award Agreement.  Any delegation hereunder will be subject to the restrictions and limits that the Committee specifies at the time of such delegation or thereafter.  Nothing in the Plan will be construed as obligating the Committee to delegate authority to any officer of the Company, and the Committee may at any time rescind the authority delegated to an officer of the Company appointed hereunder and delegate authority to one or more other officers of the Company.  At all times, an officer of the Company delegated authority pursuant to this Section 3.1.4 will serve in such capacity at the pleasure of the Committee.  Any action undertaken by any such officer of the Company in accordance with the Committee’s delegation of authority will have the same force and effect as if undertaken directly by the Committee, and any reference in the Plan to the “Committee” will, to the extent consistent with the terms and limitations of such delegation, be deemed to include a reference to each such officer.
3.2Board. The Board, from time to time, may exercise any or all of the powers and authorities related to the administration and implementation of the Plan, as set forth in Section 3.1 and other applicable provisions of the Plan, as the Board shall determine, consistent with the Company’s articles of incorporation and bylaws and Applicable Laws.
3.3Terms of Awards.
3.1.1    Committee Authority. Subject to the other terms and conditions of the Plan, the Committee shall have full and final authority to:
(a)designate Grantees; 

(b)determine the type or types of Awards to be made to a Grantee; 
(c)determine the number of shares of Stock to be subject to an Award or to which an Award relates; 
(d)establish the terms and conditions of each Award (including the Option Price, the SAR Price, and the purchase price for applicable Awards; the nature and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the shares of Stock subject thereto; the treatment of an Award in the event of a Change in Control (subject to applicable agreements); and any terms or conditions that may be necessary to qualify Options as Incentive Stock Options); 
(e)prescribe the form of each Award Agreement evidencing an Award; 
(f)subject to the limitation on repricing in Section 3.4, amend, modify, or supplement the terms of any outstanding Award, which authority shall include the authority, in order to effectuate the purposes of the Plan but without amending the Plan, to make Awards or to modify outstanding Awards made to eligible natural Persons who are foreign nationals or are natural Persons who are employed outside the United States to reflect differences in local law, tax policy, or custom; provided that, notwithstanding the foregoing, no amendment, modification, or supplement of the terms of any outstanding Award shall, without the consent of the Grantee thereof, impair such Grantee’s rights under such Award; and
(g)make Substitute Awards. 
3.3.2    Forfeiture; Recoupment. The Committee may reserve the right in an Award Agreement to cause a forfeiture of the gain realized by a Grantee with respect to an Award thereunder on account of actions taken by, or failed to be taken by, such Grantee in violation or breach of, or in conflict with, any (a) employment agreement, (b) non-competition agreement, (c) agreement prohibiting solicitation of Employees or clients of the Company or an Affiliate, (d) confidentiality obligation with respect to the Company or an Affiliate, (e) Company or Affiliate policy or procedure, (f) other agreement, or (g) other obligation of such Grantee to the Company or an Affiliate, as and to the extent specified in such Award Agreement.  If the Grantee of an outstanding Award is an Employee of the Company or an Affiliate and such Grantee’s Service is terminated for Cause, the Committee may annul such Grantee’s outstanding Award as of the date of the Grantee’s termination of Service for Cause.
Any Award granted pursuant to the Plan shall be subject to mandatory repayment by the Grantee to the Company (x) to the extent set forth in this Plan or an Award Agreement or (y) to the extent the Grantee is, or in the future becomes, subject to (1) any Company or Affiliate “clawback” or recoupment policy that is adopted to comply with the requirements of any Applicable Laws, or (2) any Applicable Laws which impose mandatory recoupment, under circumstances set forth in such Applicable Laws.
3.4No Repricing Without Stockholder Approval. Except in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, distribution (whether in the form of cash, shares of Stock, other securities, or other property), stock split, extraordinary dividend, recapitalization, Change in Control, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares of Stock, or other securities or similar transaction), the Company may not: (a) amend the terms of outstanding Options or SARs to reduce the Option Price or SAR Price, as applicable, of such outstanding Options or SARs; (b) cancel outstanding Options or SARs in exchange for or substitution of Options or SARs with an Option Price or SAR Price, as applicable, that is less than the Option Price or SAR Price, as applicable, of the original Options or SARs; or (c) cancel outstanding Options or SARs with an Option Price or SAR Price, as applicable, above the current Fair Market Value in exchange for cash or other securities, in each case, unless such action is subject to and approved by the Company's stockholders.
3.5Deferral Arrangement. The Committee may permit or require the deferral of any payment pursuant to any Award into a deferred compensation arrangement, subject to such rules and procedures as it may establish, which may 

include provisions for the payment or crediting of interest or Dividend Equivalent Rights and, in connection therewith, provisions for converting such credits into Deferred Stock Units and for restricting deferrals to comply with hardship distribution rules affecting tax-qualified retirement plans subject to Code Section 401(k)(2)(B)(IV); provided that no Dividend Equivalent Rights may be granted in connection with, or related to, an Award of Options or SARs.  Any such deferrals shall be made in a manner that complies with Code Section 409A, including, if applicable, with respect to when a Separation from Service occurs.
3.6Registration; Share Certificates. Notwithstanding any provision of the Plan to the contrary, the ownership of the shares of Stock issued under the Plan may be evidenced in such a manner as the Committee, in its sole discretion, deems appropriate, including by book-entry or direct registration (including transaction advices) or the issuance of one or more share certificates.
		
	4.
	STOCK SUBJECT TO THE PLAN 

4.1    Number of Shares of Stock Available for Awards. Subject to such additional shares of Stock as shall be available for issuance under the Plan pursuant to Section 4.2, and subject to adjustment pursuant to Section 16, the maximum number of shares of Stock reserved for issuance under the Plan shall be equal to the sum of (i) nine hundred thousand (900,000) shares of Stock, plus (ii) the number of shares of Stock available for future awards under the Prior Plan as of the Effective Date, plus (iii) the number of shares of Stock related to awards outstanding under the Prior Plan as of the Effective Date that thereafter terminate by expiration or forfeiture, cancellation, or otherwise without the issuance of such shares of Stock (the “Share Limit”).  Such shares of Stock may be authorized and unissued shares of Stock, treasury shares of Stock, or any combination of the foregoing, as may be determined from time to time by the Board or by the Committee.  Any of the shares of Stock reserved and available for issuance under the Plan may be used for any type of Award under the Plan, and any or all of the shares of Stock reserved for issuance under the Plan shall be available for issuance pursuant to the Incentive Stock Options.
4.2    Adjustments in Authorized Shares of Stock. In connection with mergers, reorganizations, separations, or other transactions to which Code Section 424(a) applies, the Committee shall have the right to cause the Company to assume awards previously granted under a compensatory plan of another business entity that is a party to such transaction and to grant Substitute Awards under the Plan for such awards.  The Share Limit pursuant to Section 4.1 shall be increased by the number of shares of Stock subject to any such assumed awards and Substitute Awards.  Shares available for issuance under a stockholder-approved plan of a business entity that is a party to such transaction (as appropriately adjusted, if necessary, to reflect such transaction) may be used for Awards under the Plan and shall not reduce the number of shares of Stock otherwise available for issuance under the Plan, subject to applicable rules of any Stock Exchange or Securities Market on which the Stock is listed or publicly traded.
4.3    Share Usage.
(a)    Shares of Stock covered by an Award shall be counted as used as of the Grant Date for purposes of calculating the number of shares of Stock available for issuance under Section 4.1.
(b)    Any shares of Stock that are subject to Awards, including shares of Stock acquired through dividend reinvestment pursuant to Section 10, will be counted against the Share Limit set forth in Section 4.1 as one (1) share of Stock for every one (1) share of Stock subject to an Award.  The number of shares of Stock subject to an Award of SARs will be counted against the Share Limit set forth in Section 4.1 as one (1) share of Stock for every one (1) share of Stock subject to such Award regardless of the number of shares of Stock actually issued to settle such SARs upon the exercise of the SARs.  The target number of shares issuable under a Performance Share grant shall be counted against the Share Limit set forth in Section 4.1 as of the Grant Date, but such number shall be adjusted to equal the actual number of shares issued upon settlement of the Performance Shares to the extent different from such target number of shares.  Awards that do not 

entitle the Grantee thereof to receive or purchase shares of Stock and Awards that are settled in cash shall not be counted against the Share Limit set forth in Section 4.1.
(c)    If any shares of Stock covered by an Award are not purchased or are forfeited or expire or if an Award otherwise terminates without delivery of any Stock subject thereto or is settled in cash in lieu of shares, then the number of shares of Stock counted against the Share Limit with respect to such Award shall, to the extent of any such forfeiture, termination, expiration, or settlement, again be available for making Awards under the Plan.
(d)    The number of shares of Stock available for issuance under the Plan will not be increased by the number of shares of Stock (i) tendered, withheld, or subject to an Award granted under the Plan surrendered in connection with the purchase of shares of Stock upon exercise of an Option, (ii) that were not issued upon the net settlement or net exercise of a Stock-settled SAR granted under the Plan, (iii) deducted or delivered from payment of an Award granted under the Plan in connection with the Company’s tax withholding obligations as provided in Section 18.3, or (iv) purchased by the Company with proceeds from Option exercises.
		
	5.
	TERM; AMENDMENT AND TERMINATION 

5.1    Term. The Plan shall become effective as of the Effective Date.  The Plan shall terminate on the first to occur of (a) the tenth (10th) anniversary of the Effective Date, (b) the date determined in accordance with Section 5.2, and (c) the date determined in accordance with Section 16.3.  Upon such termination of the Plan, all outstanding Awards shall continue to have full force and effect in accordance with the provisions of the terminated Plan and the applicable Award Agreement (or other documents evidencing such Awards).
5.2    Amendment, Suspension, and Termination. The Board may, at any time and from time to time, amend, suspend, or terminate the Plan; provided that, with respect to Awards theretofore granted under the Plan, no amendment, suspension, or termination of the Plan shall, without the consent of the Grantee, impair the rights or obligations under any such Award.  The effectiveness of any amendment to the Plan shall be contingent on approval of such amendment by the Company’s stockholders to the extent provided by the Board or required by Applicable Laws.
		
	6.
	AWARD ELIGIBILITY AND LIMITATIONS 

6.1    Eligible Grantees. Subject to this Section 6, Awards may be made under the Plan to (a) any Service Provider, as the Committee shall determine and designate from time to time, and (b) any other individual whose participation in the Plan is determined to be in the best interests of the Company by the Committee.
6.2    Limitation on Shares of Stock Subject to Awards and Cash Awards. During any time when the Company has any class of common equity securities registered under Section 12 of the Exchange Act, but subject to adjustment as provided in Section 16:
(a)    The maximum number of shares of Stock that may be granted under the Plan, pursuant to Options or SARs, in a fiscal year to any Person eligible for an Award under Section 6.1, other than a Non-Employee Director of the Company, is one million (1,000,000) shares;
(b)    The maximum number of shares of Stock that may be granted under the Plan, pursuant to Awards other than Options or SARs that are Stock-denominated and are either Stock- or cash-settled, in a fiscal year to any Person eligible for an Award under Section 6.1, other than a Non-Employee Director of the Company, is two hundred thousand (200,0000) shares;
(c)    The maximum Fair Market Value of shares of Stock that may be granted under the Plan, pursuant to Awards, in a fiscal year to any Non-Employee Director of the Company is five hundred thousand dollars ($500,000); and

(d)    The maximum amount that may be paid as a cash-denominated Performance-Based Award (whether or not cash-settled) for a Performance Period to any Person eligible for an Award under Section 6.1 shall be ten million dollars ($10,000,000).
6.3    Stand-Alone, Additional, Tandem, and Substitute Awards. Subject to Section 3.4, Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution or exchange for, (a) any other Award, (b) any award granted under another plan of the Company, an Affiliate, or any business entity that has been a party to a transaction with the Company or an Affiliate, or (c) any other right of a Grantee to receive payment from the Company or an Affiliate.  Such additional, tandem, exchange, or Substitute Awards may be granted at any time.  If an Award is granted in substitution or exchange for another Award, or for an award granted under another plan of the Company, an Affiliate, or any business entity that has been a party to a transaction with the Company or an Affiliate, the Committee shall require the surrender of such other Award or award under such other plan in consideration for the grant of such exchange or Substitute Award.  In addition, Awards may be granted in lieu of cash compensation, including in lieu of cash payments under other plans of the Company or an Affiliate.  Notwithstanding Section 8.1 and Section 9.1, but subject to Section 3.4, the Option Price of an Option or the SAR Price of a SAR that is a Substitute Award may be less than one hundred percent (100%) of the Fair Market Value of a share of Stock on the original Grant Date; provided that such Option Price or SAR Price is determined in accordance with the principles of Code Section 424 for any Incentive Stock Option and consistent with Code Section 409A for any other Option or SAR.
6.4    Minimum Vesting Period. Except with respect to a maximum of five percent (5%) of the Share Limit, as may be adjusted pursuant to Section 4.2, and except as otherwise provided in Section 16, no Award shall provide for vesting which is any more rapid than vesting on the one (1) year anniversary of the Grant Date or, with respect to Awards that vest upon the attainment of performance goals, a Performance Period that is less than twelve (12) months.
		
	7.
	AWARD AGREEMENT 

Each Award granted pursuant to the Plan shall be evidenced by an Award Agreement, which shall be in such form or forms as the Committee shall from time to time determine.  Award Agreements utilized under the Plan from time to time or at the same time need not contain similar provisions but shall be consistent with the terms of the Plan.  Each Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be Nonqualified Stock Options or Incentive Stock Options, and, in the absence of such specification, such Options shall be deemed to constitute Nonqualified Stock Options.  In the event of any inconsistency between the Plan and an Award Agreement, the provisions of the Plan shall control.
		
	8.
	TERMS AND CONDITIONS OF OPTIONS 

8.1    Option Price. The Option Price of each Option shall be fixed by the Committee and stated in the Award Agreement evidencing such Option.  Except in the case of Substitute Awards, the Option Price of each Option shall be at least the Fair Market Value of one (1) share of Stock on the Grant Date; provided that, in the event that a Grantee is a Ten Percent Stockholder, the Option Price of an Option granted to such Grantee that is intended to be an Incentive Stock Option shall be not less than one hundred ten percent (110%) of the Fair Market Value of one (1) share of Stock on the Grant Date.  In no case shall the Option Price of any Option be less than the par value of one (1) share of Stock.
8.2    Vesting and Exercisability. Subject to Sections 8.3 and 16.3, each Option granted under the Plan shall become vested and/or exercisable at such times and under such conditions as shall be determined by the Committee and stated in the Award Agreement, in another agreement with the Grantee, or otherwise in writing.
8.3    Term. Each Option granted under the Plan shall terminate, and all rights to purchase shares of Stock thereunder shall cease, on the tenth (10th) anniversary of the Grant Date of such Option, or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Committee and stated in the Award Agreement 

relating to such Option; provided that, in the event that the Grantee is a Ten Percent Stockholder, an Option granted to such Grantee that is intended to be an Incentive Stock Option shall not be exercisable after the fifth (5th) anniversary of the Grant Date of such Option; and provided, further, that, to the extent deemed necessary or appropriate by the Committee to reflect differences in local law, tax policy, or custom with respect to any Option granted to a Grantee who is a foreign national or is a natural Person who is employed outside the United States, such Option may terminate, and all rights to purchase shares of Stock thereunder may cease, upon the expiration of a period longer than ten (10) years from the Grant Date of such Option as the Committee shall determine.
8.4    Termination of Service. Each Award Agreement with respect to the grant of an Option shall set forth the extent to which the Grantee thereof, if at all, shall have the right to exercise such Option following termination of such Grantee’s Service.  Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service.
8.5    Limitations on Exercise of Option. Notwithstanding any provision of the Plan to the contrary, in no event may any Option be exercised, in whole or in part, after the occurrence of an event referred to in Section 16 which results in the termination of such Option.
8.6    Method of Exercise. Subject to the terms of Section 14 and Section 18.3, an Option that is exercisable may be exercised by the Grantee’s delivery to the Company or its designee or agent of notice of exercise on any business day, at the Company’s principal office or the office of such designee or agent, on the form specified by the Company and in accordance with any additional procedures specified by the Committee.  Such notice shall specify the number of shares of Stock with respect to which such Option is being exercised and shall be accompanied by payment in full of the Option Price of the shares of Stock for which such Option is being exercised, plus the amount (if any) of federal and/or other taxes which the Company may, in its judgment, be required to withhold with respect to the exercise of such Option.
8.7    Rights of Holders of Options. Unless otherwise stated in the applicable Award Agreement, a Grantee or other Person holding or exercising an Option shall have none of the rights of a stockholder of the Company (for example, the right to receive cash or dividend payments or distributions attributable to the shares of Stock subject to such Option, to direct the voting of the shares of Stock subject to such Option, or to receive notice of any meeting of the Company’s stockholders) until the shares of Stock subject thereto are fully paid and issued to such Grantee or other Person.  Except as provided in Section 16, no adjustment shall be made for dividends, distributions, or other rights with respect to any shares of Stock subject to an Option for which the record date is prior to the date of issuance of such shares of Stock.
8.8    Delivery of Stock. Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price with respect thereto, such Grantee shall be entitled to receive such evidence of such Grantee’s ownership of the shares of Stock subject to such Option as shall be consistent with Section 3.6.
8.9    Transferability of Options. Except as provided in Section 8.10, during the lifetime of a Grantee of an Option, only such Grantee (or, in the event of such Grantee’s legal incapacity or incompetency, such Grantee’s guardian or legal representative) may exercise such Option.  Except as provided in Section 8.10, no Option shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and distribution.
8.10    Family Transfers. If authorized in the applicable Award Agreement and by the Committee, in its sole discretion, a Grantee may transfer, not for value, all or part of an Option which is not an Incentive Stock Option to any Family Member.  For the purpose of this Section 8.10, a transfer “not for value” is a transfer which is (a) a gift, (b) a transfer under a domestic relations order in settlement of marital property rights, or (c) unless Applicable Laws do not permit such transfer, a transfer to an entity in which more than fifty percent (50%) of the voting interests are owned by Family Members (and/or the Grantee) in exchange for an interest in such entity.  Following a transfer under this Section 8.10, any such Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to such transfer.  Subsequent transfers of transferred Options shall be prohibited except to Family Members of the original Grantee in accordance with 

this Section 8.10 or by will or the laws of descent and distribution.  The provisions of Section 8.4 relating to termination of Service shall continue to be applied with respect to the original Grantee of the Option, following which such Option shall be exercisable by the transferee only to the extent, and for the periods specified, in Section 8.4.
8.11    Limitations on Incentive Stock Options. An Option shall constitute an Incentive Stock Option only (a) if the Grantee of such Option is an Employee of the Company or any corporate Subsidiary, (b) to the extent specifically provided in the related Award Agreement, and (c) to the extent that the aggregate Fair Market Value (determined at the time such Option is granted) of the shares of Stock with respect to which all Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Company and its Affiliates) does not exceed one hundred thousand dollars ($100,000).  Except to the extent provided in the regulations under Code Section 422, this limitation shall be applied by taking Options into account in the order in which they were granted.
8.12    Notice of Disqualifying Disposition. If any Grantee shall make any disposition of shares of Stock issued pursuant to the exercise of an Incentive Stock Option under the circumstances provided in Code Section 421(b) (relating to certain disqualifying dispositions), such Grantee shall notify the Company of such disposition immediately but in no event later than ten (10) days thereafter.
		
	9.
	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS 

9.1    Right to Payment and SAR Price. A SAR shall confer on the Grantee to whom it is granted a right to receive, upon exercise thereof, the excess of (a) the Fair Market Value of one (1) share of Stock on the date of exercise, over (b) the SAR Price as determined by the Committee.  The Award Agreement for a SAR shall specify the SAR Price, which shall be no less than the Fair Market Value of one (1) share of Stock on the Grant Date of such SAR.  SARs may be granted in tandem with all or part of an Option granted under the Plan or at any subsequent time during the term of such Option, in combination with all or any part of any other Award, or without regard to any Option or other Award; provided that a SAR that is granted in tandem with all or part of an Option will have the same term, and expire at the same time, as the related Option; provided, further, that a SAR that is granted subsequent to the Grant Date of a related Option must have a SAR Price that is no less than the Fair Market Value of one (1) share of Stock on the Grant Date of such SAR.
9.2    Other Terms. The Committee shall determine, on the Grant Date or thereafter, the time or times at which, and the circumstances under which, a SAR may be exercised in whole or in part (including based on achievement of performance goals and/or future Service requirements); the time or times at which SARs shall cease to be or become exercisable following termination of Service or upon other conditions; the method of exercise, method of settlement, form of consideration payable in settlement, method by or forms in which shares of Stock shall be delivered or deemed to be delivered to Grantees, whether or not a SAR shall be granted in tandem or in combination with any other Award; and any and all other terms and conditions of any SAR.
9.3    Term. Each SAR granted under the Plan shall terminate, and all rights thereunder shall cease, on the tenth (10th) anniversary of the Grant Date of such SAR or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Committee and stated in the Award Agreement relating to such SAR.
9.4    Rights of Holders of SARs.Unless otherwise stated in the applicable Award Agreement, a Grantee or other Person holding or exercising a SAR shall have none of the rights of a stockholder of the Company (for example, the right to receive cash or dividend payments or distributions attributable to the shares of Stock underlying such SAR, to direct the voting of the shares of Stock underlying such SAR, or to receive notice of any meeting of the Company’s stockholders) until the shares of Stock underlying such SAR, if any, are issued to such Grantee or other Person.  Except as provided in Section 16, no adjustment shall be made for dividends, distributions, or other rights with respect to any shares of Stock underlying a SAR for which the record date is prior to the date of issuance of such shares of Stock, if any.

9.5    Transferability of SARs. Except as provided in Section 9.6, during the lifetime of a Grantee of a SAR, only the Grantee (or, in the event of such Grantee’s legal incapacity or incompetency, such Grantee’s guardian or legal representative) may exercise such SAR.  Except as provided in Section 9.6, no SAR shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and distribution.
9.6    Family Transfers. If authorized in the applicable Award Agreement and by the Committee, in its sole discretion, a Grantee may transfer, not for value, all or part of a SAR to any Family Member.  For the purpose of this Section 9.6, a transfer “not for value” is a transfer which is (a) a gift, (b) a transfer under a domestic relations order in settlement of marital property rights, or (c) unless Applicable Laws do not permit such transfer, a transfer to an entity in which more than fifty percent (50%) of the voting interests are owned by Family Members (and/or the Grantee) in exchange for an interest in such entity.  Following a transfer under this Section 9.6, any such SAR shall continue to be subject to the same terms and conditions as were in effect immediately prior to such transfer.  Subsequent transfers of transferred SARs shall be prohibited except to Family Members of the original Grantee in accordance with this Section 9.6 or by will or the laws of descent and distribution.
		
	10.
	TERMS AND CONDITIONS OF RESTRICTED STOCK, RESTRICTED STOCK UNITS, AND DEFERRED STOCK UNITS 

10.1    Grant of Restricted Stock, Restricted Stock Units, and Deferred Stock Units. Awards of Restricted Stock, Restricted Stock Units, and Deferred Stock Units may be made for consideration or for no consideration, other than the par value of the shares of Stock, which shall be deemed paid by past Service or, if so provided in the related Award Agreement or a separate agreement, the promise by the Grantee to perform future Service to the Company or an Affiliate.
10.2    Restrictions. At the time a grant of Restricted Stock, Restricted Stock Units, or Deferred Stock Units is made, the Committee may, in its sole discretion, (a) establish a Restricted Period applicable to such Restricted Stock, Restricted Stock Units, or Deferred Stock Units and (b) prescribe restrictions in addition to or other than the expiration of the Restricted Period, including the achievement of corporate or individual performance goals, which may be applicable to all or any portion of such Restricted Stock, Restricted Stock Units, or Deferred Stock Units as provided in Section 13.  Awards of Restricted Stock, Restricted Stock Units, and Deferred Stock Units may not be sold, transferred, assigned, pledged, or otherwise encumbered or disposed of during the Restricted Period or prior to the satisfaction of any other restrictions prescribed by the Committee with respect to such Awards.
10.3    Registration; Restricted Stock Certificates. Pursuant to Section 3.6, to the extent that ownership of Restricted Stock is evidenced by a book-entry registration or direct registration (including transaction advices), such registration shall be notated to evidence the restrictions imposed on such Award of Restricted Stock under the Plan and the applicable Award Agreement.  Subject to Section 3.6 and the immediately following sentence, the Company may issue, in the name of each Grantee to whom Restricted Stock has been granted, certificates representing the total number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date of such Restricted Stock.  The Committee may provide in an Award Agreement with respect to an Award of Restricted Stock that either (a) the Secretary of the Company shall hold such certificates for such Grantee’s benefit until such time as such shares of Restricted Stock are forfeited to the Company or the restrictions applicable thereto lapse and such Grantee shall deliver a stock power to the Company with respect to each certificate, or (b) such certificates shall be delivered to such Grantee, provided that such certificates shall bear legends that comply with Applicable Laws and make appropriate reference to the restrictions imposed on such Award of Restricted Stock under the Plan and such Award Agreement.
10.4    Rights of Holders of Restricted Stock. Unless the Committee provides otherwise in an Award Agreement and subject to the restrictions set forth in the Plan, any applicable Company program, and the applicable Award Agreement, holders of Restricted Stock shall have the right to vote such shares of Restricted Stock and the right to receive any dividend payments or distributions declared or paid with respect to such shares of Restricted Stock.  The Committee may provide in an Award Agreement evidencing a grant of Restricted Stock that (a) any cash dividend payments or distributions paid on 

Restricted Stock shall be reinvested in shares of Stock, which may or may not be subject to the same vesting conditions and restrictions as applicable to such underlying shares of Restricted Stock or (b) any dividend payments or distributions declared or paid on shares of Restricted Stock shall only be made or paid upon satisfaction of the vesting conditions and restrictions applicable to such shares of Restricted Stock.  Dividend payments or distributions declared or paid on shares of Restricted Stock which vest or are earned based upon the achievement of performance goals shall not vest unless such performance goals for such shares of Restricted Stock are achieved, and if such performance goals are not achieved, the Grantee of such shares of Restricted Stock shall promptly forfeit and, to the extent already paid or distributed, repay to the Company such dividend payments or distributions.  All stock dividend payments or distributions, if any, received by a Grantee with respect to shares of Restricted Stock as a result of any stock split, stock dividend, combination of stock, or other similar transaction shall be subject to the same vesting conditions and restrictions as applicable to such underlying shares of Restricted Stock.
10.5    Rights of Holders of Restricted Stock Units and Deferred Stock Units.
10.5.1    Voting and Dividend Rights. Holders of Restricted Stock Units and Deferred Stock Units shall have no rights as stockholders of the Company (for example, the right to receive dividend payments or distributions attributable to the shares of Stock underlying such Restricted Stock Units and Deferred Stock Units, to direct the voting of the shares of Stock underlying such Restricted Stock Units and Deferred Stock Units, or to receive notice of any meeting of the Company’s stockholders).
10.5.2    Creditor’s Rights. A holder of Restricted Stock Units or Deferred Stock Units shall have no rights other than those of a general unsecured creditor of the Company.  Restricted Stock Units and Deferred Stock Units represent unfunded and unsecured obligations of the Company, subject to the terms and conditions of the applicable Award Agreement.
10.6    Termination of Service. Unless the Committee provides otherwise in an Award Agreement, in another agreement with the Grantee, or otherwise in writing after such Award Agreement is issued, but prior to termination of the Grantee’s Service, upon the termination of such Grantee’s Service, any Restricted Stock, Restricted Stock Units, or Deferred Stock Units held by such Grantee that have not vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited.  Upon forfeiture of such Restricted Stock, Restricted Stock Units, or Deferred Stock Units, the Grantee thereof shall have no further rights with respect thereto, including any right to vote such Restricted Stock or any right to receive dividends or Dividend Equivalent Rights, as applicable, with respect to such Restricted Stock, Restricted Stock Units, or Deferred Stock Units.
10.7    Purchase of Restricted Stock and Shares of Stock Subject to Restricted Stock Units and Deferred Stock Units. The Grantee of an Award of Restricted Stock, vested Restricted Stock Units, or vested Deferred Stock Units shall be required, to the extent required by Applicable Laws, to purchase such Restricted Stock or the shares of Stock subject to such vested Restricted Stock Units or Deferred Stock Units from the Company at a purchase price equal to the greater of (x) the aggregate par value of the shares of Stock represented by such Restricted Stock or such vested Restricted Stock Units or Deferred Stock Units or (y) the purchase price, if any, specified in the Award Agreement relating to such Restricted Stock or such vested Restricted Stock Units or Deferred Stock Units.  Such purchase price shall be payable in a form provided in Section 14 or, in the sole discretion of the Committee, in consideration for Service rendered or to be rendered by the Grantee to the Company or an Affiliate.
10.8    Delivery of Shares of Stock. Upon the expiration or termination of any Restricted Period and the satisfaction of any other conditions prescribed by the Committee, including, without limitation, any performance goals or delayed delivery period, the restrictions applicable to Restricted Stock, Restricted Stock Units, or Deferred Stock Units settled in shares of Stock shall lapse, and, unless otherwise provided in the applicable Award Agreement, a book-entry or direct registration (including transaction advices) or a certificate evidencing ownership of such shares of Stock shall, consistent with Section 3.6, be issued, free of all such restrictions, to the Grantee thereof or such Grantee’s beneficiary or estate, as the case may be.  Neither the Grantee, nor the Grantee’s beneficiary or estate, shall have any further rights with regard to a 

Restricted Stock Unit or Deferred Stock Unit once the shares of Stock represented by such Restricted Stock Unit or Deferred Stock Unit have been delivered in accordance with this Section 10.8.
		
	11.
	TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS

11.1    Unrestricted Stock Awards. Subject to Section 6.4, the Committee may, in its sole discretion, grant (or sell at the par value of a share of Stock or at such other higher purchase price as shall be determined by the Committee) an Award to any Grantee pursuant to which such Grantee may receive shares of Unrestricted Stock under the Plan.  Awards of Unrestricted Stock may be granted or sold to any Grantee as provided in the immediately preceding sentence in respect of Service rendered or, if so provided in the related Award Agreement or a separate agreement, to be rendered by the Grantee to the Company or an Affiliate or other valid consideration, in lieu of or in addition to any cash compensation due to such Grantee.
11.2    Other Equity-Based Awards. The Committee may, in its sole discretion, grant Awards in the form of Other Equity-Based Awards, as deemed by the Committee to be consistent with the purposes of the Plan.  Awards granted pursuant to this Section 11.2 may be granted with vesting, value, and/or payment contingent upon the achievement of one or more performance goals.  The Committee shall determine the terms and conditions of Other Equity-Based Awards on the Grant Date or thereafter.  Unless the Committee provides otherwise in an Award Agreement, in another agreement with the Grantee, or otherwise in writing after such Award Agreement is issued, but prior to termination of the Grantee’s Service, upon the termination of the Grantee’s Service, any Other Equity-Based Awards held by such Grantee that have not vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited.  Upon forfeiture of any Other Equity-Based Award, the Grantee thereof shall have no further rights with respect to such Other Equity-Based Award.
		
	12.
	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS

12.1    Dividend Equivalent Rights. A Dividend Equivalent Right may be granted hereunder, provided that no Dividend Equivalent Rights may be granted in connection with, or related to, an Award of Options or SARs.  The terms and conditions of Dividend Equivalent Rights shall be specified in the Award Agreement therefor.  Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid currently (with or without being subject to forfeiture or a repayment obligation) or may be deemed to be reinvested in additional shares of Stock or Awards, which may thereafter accrue additional Dividend Equivalent Rights (with or without being subject to forfeiture or a repayment obligation).  Any such reinvestment shall be at the Fair Market Value thereof on the date of such reinvestment.  Dividend Equivalent Rights may be settled in cash, shares of Stock, or a combination thereof, in a single installment or in multiple installments, all as determined in the sole discretion of the Committee.  A Dividend Equivalent Right granted as a component of another Award may (a) provide that such Dividend Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other Award and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other Award or (b) contain terms and conditions which are different from the terms and conditions of such other Award, provided that Dividend Equivalent Rights credited pursuant to a Dividend Equivalent Right granted as a component of another Award which vests or is earned based upon the achievement of performance goals shall not vest unless such performance goals for such underlying Award are achieved, and if such performance goals are not achieved, the Grantee of such Dividend Equivalent Rights shall promptly forfeit and, to the extent already paid or distributed, repay to the Company payments or distributions made in connection with such Dividend Equivalent Rights.
12.2    Termination of Service. Unless the Committee provides otherwise in an Award Agreement, in another agreement with the Grantee, or otherwise in writing after such Award Agreement is issued, a Grantee’s rights in all Dividend Equivalent Rights shall automatically terminate upon such Grantee’s termination of Service for any reason.

		
	13.
	TERMS AND CONDITIONS OF PERFORMANCE-BASED AWARDS

13.1    Grant of Performance-Based Awards. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Performance-Based Awards in such amounts and upon such terms as the Committee shall determine.
13.2    Value of Performance-Based Awards. Each grant of a Performance-Based Award shall have an initial cash value or an actual or target number of shares of Stock that is established by the Committee as of the Grant Date.  The Committee shall set performance goals in its discretion which, depending on the extent to which they are achieved, shall determine the value and/or number of shares of Stock subject to a Performance-Based Award that will be paid out to the Grantee thereof.
13.3    Earning of Performance-Based Awards. Subject to the terms of the Plan, in particular Section 13.6.3, after the applicable Performance Period has ended, the Grantee of a Performance-Based Award shall be entitled to receive a payout of the value earned under such Performance-Based Award by such Grantee over such Performance Period.
13.4    Form and Timing of Payment of Performance-Based Awards. Payment of the value earned under Performance-Based Awards shall be made, as determined by the Committee, in the form, at the time, and in the manner described in the applicable Award Agreement.  Subject to the terms of the Plan, the Committee, in its sole discretion, (i) may pay the value earned under Performance-Based Awards in the form of cash, shares of Stock, other Awards, or a combination thereof, including shares of Stock and/or Awards that are subject to any restrictions deemed appropriate by the Committee, and (ii) shall pay the value earned under Performance-Based Awards at the close of the applicable Performance Period, or as soon as reasonably practicable after the Committee has determined that the performance goal or goals relating thereto have been achieved; provided that, unless specifically provided in the Award Agreement for such Performance-Based Awards, such payment shall occur no later than the fifteenth (15th) day of the third (3rd) month following the end of the calendar year in which such Performance Period ends.
13.5    Performance Conditions. The right of a Grantee to exercise or to receive a grant or settlement of any Performance-Based Award, and the timing thereof, may be subject to such performance conditions as may be specified by the Committee.  The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions.  If and to the extent required under Code Section 162(m), any power or authority relating to an Award intended to qualify under Code Section 162(m) shall be exercised by the Committee and not by the Board.
13.6    Performance-Based Awards Granted to Designated Covered Employees. If and to the extent that the Committee determines that a Performance-Based Award to be granted to a Grantee should constitute Qualified Performance-Based Compensation for purposes of Code Section 162(m), the grant, exercise, and/or settlement of such Performance-Based Award shall be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 13.6.
13.6.1    Performance Goals Generally. The performance goals for Performance-Based Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with this Section 13.6.  Performance goals shall be objective and shall otherwise meet the requirements of Code Section 162(m), including the requirement that the level or levels of performance targeted by the Committee result in the achievement of performance goals being “substantially uncertain.”  The Committee may determine that such Awards shall be granted, exercised, and/or settled upon achievement of any single performance goal or of two (2) or more performance goals.  Performance goals may differ for Performance-Based Awards granted to any one Grantee or to different Grantees.

13.6.2    Timing For Establishing Performance Goals. Performance goals for any Performance-Based Award shall be established not later than the earlier of (a) ninety (90) days after the beginning of any Performance Period applicable to such Performance-Based Award, and (b) the date on which twenty-five percent (25%) of any Performance Period applicable to such Performance-Based Award has expired, or at such other date as may be required or permitted for compensation payable to a Covered Employee to constitute Performance-Based Compensation.
13.6.3    Payment of Awards; Other Terms. Payment of Performance-Based Awards shall be in cash, shares of Stock, other Awards, or a combination thereof, including shares of Stock and/or Awards that are subject to any restrictions deemed appropriate by the Committee, in each case as determined in the sole discretion of the Committee.  The Committee may, in its sole discretion, reduce the amount of a payment otherwise to be made in connection with such Performance-Based Awards.  The Committee shall specify the circumstances in which such Performance-Based Awards shall be paid or forfeited in the event of termination of Service by the Grantee prior to the end of a Performance Period or settlement of such Performance-Based Awards.  In the event payment of the Performance-Based Award is made in the form of another Award subject to Service-based vesting, the Committee shall specify the circumstances in which the payment Award will be paid or forfeited in the event of a termination of Service.
13.6.4    Performance Measures. The performance goals upon which the vesting or payment of a Performance-Based Award to a Covered Employee that is intended to qualify as Performance-Based Compensation may be conditioned shall be limited to the following Performance Measures, with or without adjustment (including pro forma adjustments):
(a)    net earnings or net income; 
(b)    operating earnings; 
(c)    pretax earnings; 
(d)    earnings per share; 
(e)    share price, including growth measures and total stockholder return; 
(f)    new unit growth;
(g)    new unit return on investment;
(h)    earnings before interest and taxes; 
(i)    earnings before interest, taxes, depreciation, and/or amortization; 
(j)    earnings before interest, taxes, depreciation, and/or amortization as adjusted to exclude any one or more of the following: 
rent costs;
     stock-based compensation expense;
     income from discontinued operations;
gain on cancellation of debt;
     debt extinguishment and related costs;

restructuring, separation, and/or integration charges and costs;
     reorganization and/or recapitalization charges and costs;
impairment charges;
merger-related events;
     gain or loss related to investments;
sales and use tax settlements; and
     gain on non-monetary transactions;
(k)    sales or revenue growth or targets, whether in general or by type of product, service, or customer; 
(l)    gross or operating margins; 
(m)    return measures, including return on assets, capital, investment, equity, sales, or revenue; 
(n)    cash flow, including: 
operating cash flow;
		
	 
	free cash flow, defined as earnings before interest, taxes, depreciation, and/or amortization (as adjusted to exclude any one or more of the items that may be excluded pursuant to the Performance Measure specified in clause (h) above) less capital expenditures;

levered free cash flow, defined as free cash flow less interest expense;
     cash flow return on equity; and
cash flow return on investment;
(o)    productivity ratios; 
(p)    costs, reductions in cost, and cost control measures;
(q)    expense targets; 
(r)    market or market segment share or penetration; 
(s)    financial ratios as provided in credit agreements of the Company and its subsidiaries; 
(t)    working capital targets; 
(u)    completion of acquisitions of businesses or companies; 
(v)    completion of divestitures and asset sales; 
(w)    regulatory achievements or compliance;

(x)    customer satisfaction measurements; 
(y)    execution of contractual arrangements or satisfaction of contractual requirements or milestones;
(z)    product development achievements; and
(aa)    any combination of the foregoing business criteria.
Performance under any of the foregoing Performance Measures (a) may be used to measure the performance of (i) the Company, its Subsidiaries, and other Affiliates as a whole, (ii) the Company, any Subsidiary, any other Affiliate, or any combination thereof, or (iii) any one or more business units or operating segments of the Company, any Subsidiary, and/or any other Affiliate, in each case as the Committee, in its sole discretion, deems appropriate, (b) may be compared to the performance of one or more other companies or one or more published or special indices designated or approved by the Committee for such comparison, as the Committee, in its sole discretion, deems appropriate, and (c) may be stated as a combination of one or more Performance Measures, and on an absolute or relative basis.  In addition, the Committee, in its sole discretion, may select performance under the Performance Measure specified in clause (e) above for comparison to performance under one or more stock market indices designated or approved by the Committee. The Committee shall also have the authority to provide for accelerated vesting of any Performance-Based Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Section 13.
13.6.5    Evaluation of Performance. The Committee may provide in any Performance-Based Award that any evaluation of performance may include or exclude any of the following events that occur during a Performance Period: (a) asset write-downs; (b) litigation or claims, judgments, or settlements; (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results; (d) any reorganization or restructuring events or programs; (e) extraordinary, non-core, non-operating, or non-recurring items; (f) acquisitions or divestitures; (g) foreign exchange gains and losses; (h) impact of shares of Stock purchased through share repurchase programs; (i) tax valuation allowance reversals; (j) impairment expense; and (k) environmental expense.  To the extent such inclusions or exclusions affect Awards to Covered Employees that are intended to qualify as Performance-Based Compensation, such inclusions or exclusions shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility.
13.6.6    Adjustment of Performance-Based Compensation. The Committee shall have the sole discretion to adjust Awards that are intended to qualify as Performance-Based Compensation, either on a formula or discretionary basis, or on any combination thereof, as the Committee determines consistent with the requirements of Code Section 162(m) for deductibility.
13.6.7    Committee Discretion. In the event that Applicable Laws change to permit Committee discretion to alter the governing Performance Measures without obtaining stockholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining stockholder approval, provided that the exercise of such discretion shall not be inconsistent with the requirements of Code Section 162(m).  In addition, in the event that the Committee determines that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base vesting on Performance Measures other than those set forth in Section 13.6.4.
13.6.8    Status of Awards Under Code Section 162(m). It is the intent of the Company that Performance-Based Awards under Section 13.6 granted to Grantees who are designated by the Committee as likely to be Covered Employees shall, if so designated by the Committee, constitute Qualified Performance-Based Compensation.  Accordingly, the terms of Section 13.6, including the definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent with Code Section 162(m).  If any provision of the Plan, the applicable Award Agreement, or any other agreement 

relating to any such Performance-Based Award does not comply or is inconsistent with the requirements of Code Section 162(m), such provision shall be construed or deemed amended to the extent necessary to conform to such requirements.
		
	14.
	FORMS OF PAYMENT 

14.1    General Rule. Payment of the Option Price for the shares of Stock purchased pursuant to the exercise of an Option or the purchase price, if any, for Restricted Stock, vested Restricted Stock Units, and/or vested Deferred Stock Units shall be made in cash or in cash equivalents acceptable to the Company.
14.2    Surrender of Shares of Stock. To the extent that the applicable Award Agreement so provides, payment of the Option Price for shares of Stock purchased pursuant to the exercise of an Option or the purchase price, if any, for Restricted Stock, vested Restricted Stock Units, and/or vested Deferred Stock Units may be made all or in part through the tender or attestation to the Company of shares of Stock, which shall be valued, for purposes of determining the extent to which such Option Price or purchase price has been paid thereby, at their Fair Market Value on the date of such tender or attestation.
14.3    Cashless Exercise. To the extent permitted by Applicable Laws and to the extent the Award Agreement so provides, payment of the Option Price for shares of Stock purchased pursuant to the exercise of an Option may be made all or in part by delivery (on a form acceptable to the Committee) of an irrevocable direction to a licensed securities broker acceptable to the Company to sell shares of Stock and to deliver all or part of the proceeds of such sale to the Company in payment of such Option Price and/or any withholding taxes described in Section 18.3.
14.4    Other Forms of Payment. To the extent that the applicable Award Agreement so provides and/or unless otherwise specified in an Award Agreement, payment of the Option Price for shares of Stock purchased pursuant to exercise of an Option or the purchase price, if any, for Restricted Stock, vested Restricted Stock Units, and/or vested Deferred Stock Units may be made in any other form that is consistent with Applicable Laws, including (a) with respect to Restricted Stock, vested Restricted Stock Units, and/or vested Deferred Stock Units only, Service rendered or to be rendered by the Grantee thereof to the Company or an Affiliate and (b) with the consent of the Company, by withholding the number of shares of Stock that would otherwise vest or be issuable in an amount equal in value to the Option Price or purchase price and/or the required tax withholding amount.
		
	15.
	REQUIREMENTS OF LAW 

15.1    General. The Company shall not be required to offer, sell, or issue any shares of Stock under any Award, whether pursuant to the exercise of an Option, a SAR, or otherwise, if the offer, sale, or issuance of such shares of Stock would constitute a violation by the Grantee, the Company, an Affiliate, or any other Person of any provision of the Company’s articles of incorporation or bylaws or of Applicable Laws, including any federal or state securities laws or regulations.  If at any time the Company shall determine, in its discretion, that the listing, registration, or qualification of any shares of Stock subject to an Award upon any Stock Exchange or Securities Market or under any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the offering, sale, issuance, or purchase of shares of Stock in connection with any Award, no shares of Stock may be offered, sold, or issued to the Grantee or any other Person under such Award, whether pursuant to the exercise of an Option, a SAR, or otherwise, unless such listing, registration, or qualification shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of such Award.  Without limiting the generality of the foregoing, upon the exercise of any Option or any SAR that may be settled in shares of Stock or the delivery of any shares of Stock underlying an Award, unless a registration statement under the Securities Act is in effect with respect to the shares of Stock subject to such Award, the Company shall not be required to offer, sell, or issue such shares of Stock unless the Committee shall have received evidence satisfactory to it that the Grantee or any other Person exercising such Option or SAR or accepting delivery of such shares may acquire such shares of Stock pursuant to an exemption from registration under the Securities Act.  Any determination by the Committee in connection with the foregoing shall be final, binding, and conclusive.  The Company 

may register, but shall in no event be obligated to register, any shares of Stock or other securities issuable pursuant to the Plan pursuant to the Securities Act.  The Company shall not be obligated to take any affirmative action in order to cause the exercise of an Option or a SAR or the issuance of shares of Stock or other securities issuable pursuant to the Plan or any Award to comply with any Applicable Laws.  As to any jurisdiction that expressly imposes the requirement that an Option or SAR that may be settled in shares of Stock shall not be exercisable until the shares of Stock subject to such Option or SAR are registered under the securities laws thereof or are exempt from such registration, the exercise of such Option or SAR under circumstances in which the laws of such jurisdiction apply shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption.
15.2    Rule 16b-3. During any time when the Company has any class of common equity securities registered under Section 12 of the Exchange Act, it is the intention of the Company that Awards pursuant to the Plan and the exercise of Options and SARs granted hereunder that would otherwise be subject to Section 16(b) of the Exchange Act shall qualify for the exemption provided by Rule 16b-3 under the Exchange Act.  To the extent that any provision of the Plan or action by the Committee does not comply with the requirements of such Rule 16b-3, such provision or action shall be deemed inoperative with respect to such Awards to the extent permitted by Applicable Laws and deemed advisable by the Committee and shall not affect the validity of the Plan.  In the event that such Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify the Plan in any respect necessary or advisable in its judgment to satisfy the requirements of, or to permit the Company to avail itself of the benefits of, the revised exemption or its replacement.
		
	16.
	EFFECT OF CHANGES IN CAPITALIZATION 

16.1    Changes in Stock. If the number of outstanding shares of Stock is increased or decreased or the shares of Stock are changed into or exchanged for a different number of shares or kind of Capital Stock or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse stock split, spin-off, combination of stock, exchange of stock, stock dividend or other distribution payable in capital stock, or other increase or decrease in shares of Stock effected without receipt of consideration by the Company occurring after the Effective Date, the number and kinds of shares of Capital Stock for which grants of Options and other Awards may be made under the Plan, including the Share Limit set forth in Section 4.1 and the individual share limitations set forth in Section 6.2, shall be adjusted proportionately and accordingly by the Committee. In addition, the number and kind of shares of Capital Stock for which Awards are outstanding shall be adjusted proportionately and accordingly by the Committee so that the proportionate interest of the Grantee therein immediately following such event shall, to the extent practicable, be the same as immediately before such event.  Any such adjustment in outstanding Options or SARs shall not change the aggregate Option Price or SAR Price payable with respect to shares that are subject to the unexercised portion of such outstanding Options or SARs, as applicable, but shall include a corresponding proportionate adjustment in the per share Option Price or SAR Price, as the case may be.  The conversion of any convertible securities of the Company shall not be treated as an increase in shares effected without receipt of consideration.  Notwithstanding the foregoing, in the event of any distribution to the Company’s stockholders of securities of any other entity or other assets (including an extraordinary dividend, but excluding a non-extraordinary dividend, declared and paid by the Company) without receipt of consideration by the Company, the Board or the Committee constituted pursuant to Section 3.1.2 shall, in such manner as the Board or the Committee deems appropriate, adjust (a) the number and kind of shares of Capital Stock subject to outstanding Awards and/or (b) the aggregate and per share Option Price of outstanding Options and the aggregate and per share SAR Price of outstanding SARs as required to reflect such distribution.
16.2    Reorganization in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control. Subject to Section 16.3, if the Company shall be the surviving entity in any reorganization, merger, or consolidation of the Company with one or more other entities which does not constitute a Change in Control, any Award theretofore granted pursuant to the Plan shall pertain to and apply to the Capital Stock to which a holder of the number of shares of Stock subject to such Award would have been entitled immediately following such reorganization, merger, or consolidation, with a corresponding proportionate adjustment of the per share Option Price or SAR Price of any outstanding Option or SAR so that the aggregate Option Price or SAR Price thereafter shall be the same as the aggregate Option Price or SAR Price of the shares of Stock remaining subject to the Option or SAR as in effect immediately prior to such 

reorganization, merger, or consolidation. Subject to any contrary language in an Award Agreement, in another agreement with the Grantee, or as otherwise set forth in writing, any restrictions applicable to such Award shall apply as well to any replacement shares of Capital Stock subject to such Award, or received by the Grantee, as a result of such reorganization, merger, or consolidation.  In the event of any reorganization, merger, or consolidation of the Company referred to in this Section 16.2, Performance-Based Awards shall be adjusted (including any adjustment to the Performance Measures applicable to such Awards deemed appropriate by the Committee) so as to apply to the Capital Stock that a holder of the number of shares of Stock subject to the Performance-Based Awards would have been entitled to receive immediately following such reorganization, merger, or consolidation.
16.3    Change in Control in which Awards are not Assumed. Except as otherwise provided in the applicable Award Agreement, in another agreement with the Grantee, or as otherwise set forth in writing, upon the occurrence of a Change in Control in which outstanding Awards are not being assumed or continued, the following provisions shall apply to such Award, to the extent not assumed or continued:
(a)    Immediately prior to the occurrence of such Change in Control, in each case with the exception of Performance-Based Awards, all outstanding shares of Restricted Stock, and all Restricted Stock Units, Deferred Stock Units, and Dividend Equivalent Rights shall be deemed to have vested, and all shares of Stock and/or cash subject to such Awards shall be delivered; and one or both of the two (2) actions described below in Sections 16.3(a)(i) and (ii) shall be taken:
(i)At least fifteen (15) days prior to the scheduled consummation of such Change in Control, all Options and SARs outstanding hereunder shall become immediately exercisable and shall remain exercisable for a period of fifteen (15) days.  Any exercise of an Option or SAR during this fifteen (15)-day period shall be conditioned upon the consummation of the applicable Change in Control and shall be effective only immediately before the consummation thereof, and upon consummation of such Change in Control, the Plan and all outstanding but unexercised Options and SARs shall terminate, with or without consideration (including, without limitation, consideration in accordance with clause (ii) below) as determined by the Committee in its sole discretion.  The Committee shall send notice of an event that shall result in such a termination to all Persons who hold Options and SARs not later than the time at which the Company gives notice thereof to its stockholders. 
(ii)The Committee may elect, in its sole discretion, to cancel any outstanding Awards of Options, SARs, Restricted Stock, Restricted Stock Units, Deferred Stock Units, and/or Dividend Equivalent Rights and pay or deliver, or cause to be paid or delivered, to the holder thereof an amount in cash or Capital Stock having a value (as determined by the Committee acting in good faith), in the case of Restricted Stock, Restricted Stock Units, Deferred Stock Units, and Dividend Equivalent Rights (for shares of Stock subject thereto), equal to the formula or fixed price per share paid to holders of shares of Stock pursuant to such Change in Control and, in the case of Options or SARs, equal to the product of the number of shares of Stock subject to such Options or SARs multiplied by the amount, if any, by which (x) the formula or fixed price per share paid to holders of shares of Stock pursuant to such transaction exceeds (y) the Option Price or SAR Price applicable to such Options or SARs.  For the avoidance of doubt, if the formula or fixed price per share paid to holders of shares of Stock pursuant to such transaction is equal to or less than the Option Price or SAR Price applicable to a given Option or SAR, then such Option or SAR may be cancelled without payment therefore.    
(b)    Performance-Based Awards shall be treated as though target performance has been achieved.  After application of this Section 16.3(b), if any Awards arise from application of this Section 16, such Awards shall be settled under the applicable provision of Section 16.3(a).
(c)    Other Equity-Based Awards shall be governed by the terms of the applicable Award Agreement. 
16.4    Change in Control in which Awards are Assumed. Except as otherwise provided in the applicable Award Agreement, in another agreement with the Grantee, or as otherwise set forth in writing, upon the occurrence of a Change in 

Control in which outstanding Awards are being assumed or continued, the following provisions shall apply to such Award, to the extent assumed or continued:
The Plan and the Options, SARs, Restricted Stock, Restricted Stock Units, Deferred Stock Units, Dividend Equivalent Rights, and Other Equity-Based Awards granted under the Plan shall continue in the manner and under the terms so provided in the event of any Change in Control to the extent that provision is made in writing in connection with such Change in Control for the assumption or continuation of such Options, SARs, Restricted Stock, Restricted Stock Units, Deferred Stock Units, Dividend Equivalent Rights, and Other Equity-Based Awards, or for the substitution for such Options, SARs, Restricted Stock, Restricted Stock Units, Deferred Stock Units, Dividend Equivalent Rights, and Other Equity-Based Awards of new stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, dividend equivalent rights, and other equity-based awards relating to the Capital Stock of a successor entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number of shares (disregarding any consideration that is not common stock) and exercise prices of options and stock appreciation rights.
16.5    Adjustments. Adjustments under this Section 16 related to shares of Stock or other Capital Stock of the Company shall be made by the Committee, whose determination in that respect shall be final, binding, and conclusive.  No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share.  The Committee may provide in the applicable Award Agreement as of the Grant Date, in another agreement with the Grantee, or otherwise in writing at any time thereafter with the consent of the Grantee, for different provisions to apply to an Award in place of those provided in Sections 16.1, 16.2, 16.3, and 16.4.  This Section 16 shall not limit the Committee’s ability to provide for alternative treatment of Awards outstanding under the Plan in the event of a change in control event involving the Company that is not a Change in Control.
16.6    No Limitations on Company. The making of Awards pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or assets (including all or any part of the business or assets of any Subsidiary or other Affiliate) or to engage in any other transaction or activity.
		
	17.
	PARACHUTE LIMITATIONS 

The provisions of this Section 17 shall apply to all Grantees, unless, with respect to a Grantee, there is a conflict between the provisions of this Section 17 and the provisions set forth in an agreement between the Grantee and the Company or an Affiliate, in which case the provisions of such agreement shall apply to such Grantee.  Each Grantee shall bear all expense of, and be solely responsible for, any Excise Tax imposed on the Grantee; provided, however, in the event that the Accounting Firm shall determine that receipt of all payments or distributions in the nature of compensation to or for the benefit of the Grantee, whether paid or payable pursuant to the Plan or otherwise (the “Payments”) would subject the Grantee to tax under Section 4999 of the Code, the Accounting Firm shall determine whether the Payments shall be reduced (but not below zero) to meet the definition of Reduced Amount.  The Payments shall be reduced to the Reduced Amount only if the Accounting Firm determines that the Net After-Tax Receipt of unreduced aggregate Payments would be equal to or less than one-hundred ten percent (110%) of the Net After-Tax Receipt of the aggregate Payments if the Payments were reduced to the Reduced Amount.
If the Accounting Firm determines that aggregate Payments should be reduced to the Reduced Amount, the Company shall promptly give the Grantee notice to that effect and a copy of the detailed calculation thereof.  All determinations made by the Accounting Firm under this Section 17 shall be binding upon the Company and the Grantee and shall be made as soon as reasonably practicable and in no event later than five (5) business days following the effective date of the applicable Change in Control, or such later date on which there has been a Payment.  The reduction of the Payments, if applicable, shall be made in the order that would provide the Grantee with the largest amount of after-tax proceeds (with such order, to the 

extent permitted by Code Sections 280G and 409A designated by the Grantee, or otherwise determined by the Accounting Firm).  All fees and expenses of the Accounting Firm in implementing the provisions of this Section 17 shall be borne by the Company.
As a result of the uncertainty in the application of Section 4999 of the Code, at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts shall have been paid or distributed by the Company to or for the benefit of the Grantee pursuant to the Plan which should not have been so paid or distributed (“Overpayment”) or that additional amounts which shall have not been paid or distributed by the Company to or for the benefit of the Grantee pursuant to the Plan could have been so paid or distributed (“Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder.  In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or the Grantee which the Accounting Firm believes has a high probability of success determines that an Overpayment has been made, the Grantee shall pay any such Overpayment to the Company, without interest; provided, however, that no amount shall be payable by the Grantee to the Company if and to the extent such payment would not either reduce the amount on which the Grantee is subject to tax under Section 1 and Section 4999 of the Code or generate a refund of such taxes.  In the event that the Accounting Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be paid promptly (and in no event later than sixty (60) days following the date on which the Underpayment is determined) by the Company to or for the benefit of the Grantee, without interest.
The Company and the Grantee shall provide the Accounting Firm access to and copies of any books, records, and documents in their possession as reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with the preparation and issuance of the determinations and calculations contemplated by this Section 17.  For purposes of making the calculations required by this Section 17, the Accounting Firm may rely on reasonable, good faith interpretations concerning the application of Code Sections 280G and 4999.
		
	18.
	GENERAL PROVISIONS 

18.1    Disclaimer of Rights. No provision in the Plan, any Award, or any Award Agreement shall be construed (a) to confer upon any individual the right to remain in the Service of the Company or an Affiliate, (b) to interfere in any way with any contractual or other right or authority of the Company or an Affiliate either to increase or decrease the compensation or other payments to any Person at any time, or (c) to terminate any Service or other relationship between any Person and the Company or an Affiliate.  In addition, notwithstanding any provision of the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, in another agreement with the Grantee, or otherwise in writing, no Award granted under the Plan shall be affected by any change of duties or position of the Grantee thereof, so long as such Grantee continues to provide Service.  The obligation of the Company to pay any benefits pursuant to the Plan shall be interpreted as a contractual obligation to pay only those amounts provided herein, in the manner and under the conditions prescribed herein.  The Plan and Awards shall in no way be interpreted to require the Company to transfer any amounts to a third-party trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan.
18.2    Nonexclusivity of the Plan. Neither the adoption of the Plan nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations upon the right and authority of the Board or the Committee to adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual or particular individuals) as the Board or the Committee in their discretion determine desirable.
18.3    Withholding Taxes. The Company or an Affiliate, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any federal, state, or local taxes of any kind required by Applicable Laws to be withheld with respect to the vesting of or other lapse of restrictions applicable to an Award or upon the issuance of any shares of Stock upon the exercise of an Option or pursuant to any other Award.  At the time of such vesting, lapse, or exercise, 

the Grantee shall pay in cash to the Company or an Affiliate, as the case may be, any amount that the Company or such Affiliate may reasonably determine to be necessary to satisfy such withholding obligation; provided that if there is a same-day sale of shares of Stock subject to an Award, the Grantee shall pay such withholding obligation on the day on which such same-day sale is completed.  Subject to the prior approval of the Company or an Affiliate, which may be withheld by the Company or such Affiliate, as the case may be, in its sole discretion, the Grantee may elect to satisfy such withholding obligation, in whole or in part, (a) by causing the Company or such Affiliate to withhold shares of Stock otherwise issuable to the Grantee or (b) by delivering to the Company or such Affiliate shares of Stock already owned by the Grantee.  The shares of Stock so withheld or delivered shall have an aggregate Fair Market Value equal to such withholding obligation.  The Fair Market Value of the shares of Stock used to satisfy such withholding obligation shall be determined by the Company or such Affiliate as of the date on which the amount of tax to be withheld is to be determined.  A Grantee who has made an election pursuant to this Section 18.3 may satisfy such Grantee’s withholding obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements.  The maximum number of shares of Stock that may be withheld from any Award to satisfy any federal, state, or local tax withholding requirements upon the exercise, vesting, or lapse of restrictions applicable to any Award or payment of shares of Stock pursuant to such Award, as applicable, may not exceed such number of shares of Stock having a Fair Market Value equal to the minimum statutory amount required by the Company or the applicable Affiliate to be withheld and paid to any such federal, state, or local taxing authority with respect to such exercise, vesting, lapse of restrictions, or payment of shares of Stock, or such greater amount as may be permitted under applicable accounting standards.
18.4    Captions. The use of captions in the Plan or any Award Agreement is for convenience of reference only and shall not affect the meaning of any provision of the Plan or such Award Agreement.
18.5    Construction. Unless the context otherwise requires, all references in the Plan to “including” shall mean “including without limitation.”
18.6    Other Provisions. Each Award granted under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Committee, in its sole discretion.
18.7    Number and Gender. With respect to words used in the Plan, the singular form shall include the plural form, and the masculine gender shall include the feminine gender, as the context requires.
18.8    Severability. If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction.
18.9    Governing Law. The validity and construction of the Plan and the instruments evidencing the Awards hereunder shall be governed by, and construed and interpreted in accordance with, the laws of the State of Florida, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan and the instruments evidencing the Awards granted hereunder to the substantive laws of any other jurisdiction.
18.10    Section 409A of the Code. The Plan is intended to comply with Code Section 409A to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan will be interpreted and administered to be in compliance with Code Section 409A.  Any payments described in the Plan that are due within the Short-Term Deferral Period will not be treated as deferred compensation unless Applicable Laws require otherwise. Notwithstanding any provision of the Plan to the contrary, to the extent required to avoid accelerated taxation and tax penalties under Code Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six (6)-month period immediately following the Grantee’s Separation from Service will instead be paid on the first payroll date after the six (6)-month anniversary of the Grantee’s Separation from Service (or the Grantee’s death, if earlier).

Furthermore, notwithstanding anything in the Plan to the contrary, in the case of an Award that is characterized as deferred compensation under Code Section 409A, and pursuant to which settlement and delivery of the cash or shares of Stock subject to the Award is triggered based on a Change in Control, in no event will a Change in Control be deemed to have occurred for purposes of such settlement and delivery of cash or shares of Stock if the transaction is not also a “change in the ownership or effective control of” the Company or “a change in the ownership of a substantial portion of the assets of” the Company as determined under Treasury Regulation Section 1.409A-3(i)(5) (without regard to any alternative definition thereunder).  If an Award characterized as deferred compensation under Code Section 409A is not settled and delivered on account of the provision of the preceding sentence, the settlement and delivery shall occur on the next succeeding settlement and delivery triggering event that is a permissible triggering event under Code Section 409A.  No provision of this paragraph shall in any way affect the determination of a Change in Control for purposes of vesting in an Award that is characterized as deferred compensation under Code Section 409A.
Notwithstanding the foregoing, neither the Company nor the Committee will have any obligation to take any action to prevent the assessment of any excise tax or penalty on any Grantee under Code Section 409A, and neither the Company or an Affiliate nor the Board or the Committee will have any liability to any Grantee for such tax or penalty.
18.11    Limitation on Liability. No member of the Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan, any Award, or any Award Agreement.  Notwithstanding any provision of the Plan to the contrary, neither the Company, an Affiliate, the Board, the Committee, nor any person acting on behalf of the Company, an Affiliate, the Board, or the Committee will be liable to any Grantee or to the estate or beneficiary of any Grantee or to any other holder of an Award under the Plan by reason of any acceleration of income, or any additional tax (including any interest and penalties), asserted by reason of the failure of an Award to satisfy the requirements of Code Section 422 or Code Section 409A or by reason of Code Section 4999, or otherwise asserted with respect to the Award; provided, that this Section 18.11 shall not affect any of the rights or obligations set forth in an applicable agreement between the Grantee and the Company or an Affiliate.

To record adoption of the Plan by the Board as of [_____________] and approval of the Plan by the Company’s stockholder as of [_____________], the Company has caused its authorized officer to execute the Plan.
	
		
	 
	 

	DARDEN RESTAURANTS, INC.

	 
	 

	By:
	 

	Name:
	 

	Title:Exhibit 10.1

 

CONTRACT
FOR RENTAL
OF DCA KIOSKS
WITH OPTION TO
PURCHASE

 

		Lessor:	The Consortium
between ID Global Solutions
Corp. and
Hanco Technologies, S.A.S.
	 	 	 
	 	Tax ID Numbers:	ID Global Solutions Corp.: 4-2069547
	 	 	Hanco Technologies, S.A.S.: 900.326.893-5
	 	 	 
	 	Legal Representative:	Douglas Solomon
	 	 	 
	 	Lessor’s Colombian Address:	Calle 109 #19-48, Oficina #302
	 	 	Bogotá, Colombia
	 	 	 
	 	Subject of the Contract:	Provision of 80 DCA units with the technical specifications listed in Annex #2, pursuant to a rental with option to purchase;
which units will be installed at the transportation stations managed by Recaudo Bogotá, S.A.S.
	 	 	 
	 	Value of the Services/Form of Payment:	The price of each DCA unit is COP $45.600.000 plus VAT, which shall be paid in equal monthly installments of COP $380.000,
pre-VAT, for each DCA unit. This price includes maintenance of the DCA units throughout the term of the Contract.

 

This
contract is a
Rental Contract
with Purchase
Option for the
80 DCA units
(hereinafter the "Contract"),
and includes full
maintenance
of the
units. The
Contract is between:

 

(i)                
BASETEK SAS
(hereinafter "BASETEK"), a
company with
its headquarters in Bogotá,
Colombia, incorporated
under Shareholders'
Record of March
26, 2014, registered
under number
01823011 of
Book IX
of the
Bogotá Chamber
of Commerce, existing and
legally constituted under the
laws of the
Republic of Colombia, identified
with NIT 900.739.824-1.

 

(ii)              
THE CONSORTIUM
identified above (hereinafter
"THE CONSORTIUM"),
constituted via a
private
consortium
agreement between
ID Global
Solutions Corporation,
identified with EIN
4-2069547, and Hanco
Technologies, S.A.S.,
identified with
NIT 900.326.893-5.

 

BASETEK and THE CONSORTIUM (individually a "Party" and collectively the
"Parties") have agreed to enter into this Contract, which shall be governed by the provisions of
the civil and commercial laws of Colombia and the terms
and conditions this Contract, subject to
the following:

 

    

     

    

 

CONSIDERATIONS:

 

1.                   
-. That on
August 11, 2011,
a contract was
signed between TRANSMILENIO
S.A. and RECAUDO BOGOTÁ,
S.A.S. ("RBSAS"), the object of which is
"the concession of
the design, supply, implementation,
operation, maintenance
and integration
of the system
of fare collection for the TransMilenio
Integrated Public Transportation System in Bogotá, Colombia.

 

2.                   That
the objectives
of the
Integrated Public
Transportation
System established in Decree District
309 2009, among
others, are to
improve service
coverage to different
parts of the
city, provide improved
access and connectivity,
and perform the
operational
integration and
fare collection  associated 
therewith,  establishing
 the  principles 
of  progressivity,  timeliness,
accessibility, 
efficiency,  financial 
and  environmental 
sustainability,
 safety,  quality 
and coordination.

 

3.                 
 That upon the
issuance of Concession
Contract 001 2011,
RBSAS took over
the collection function
for the
Integrated Public
Transport System,
thereby extending the
charging network throughout the
city.

 

4.                  
BASETEK has the
organization, infrastructure,
personnel, trade agreements
and appropriate financial resources
to facilitate the
implementation of
collection services in Bogotá.

 

5.                    BASETEK and RBSAS executed a framework agreement, aimed at "Uniting their efforts
to ensure the expansion of the charging network."

 

6.                    Consistent
with the aforementioned
Contract, BASETEK
conducted a
selection process for the rental-with-option-to-purchase
of 80
DCA units.

 

7.                    The selection process was awarded to THE CONSORTIUM.

 

8.                  
THE CONSORTIUM has
been constituted
via a
private consortium
agreement dated August
21, 2015, a
copy of which
was provided to
RBSAS and under
which an officer
of ID Global
Solutions Corp. has
been designated
as the Legal
Representative of THE CONSORTIUM.

 

9.                    Therefore, the Parties agree as follows: 

 

    

     

    

CLAUSES

 

FIRST.
OBJECT.
The purpose of
this Contract is
for THE CONSORTIUM
to supply 80
DCA units with the
technical
specifications
listed in
Annex #2
hereto, by
way of
a rental-with-option- to-purchase,
and which will
be installed
on the
premises
of the transportation
stations
managed by RBSAS,
which for the
purposes of this
Agreement shall
be called the
“End User”. RBSAS will
provide THE
CONSORTIUM with the
specific
installation
locations in advance.

 

SECOND.
 OBLIGATIONS OF
THE CONSORTIUM.

 

a)  Provide the added-value propositions listed
in Annex #1 at the request of BaseTek.

 

b) Provision of 80 DCA units with the features
listed in Annex #2.

 

c) Provide data on a real-time reporting basis,
including information for previous days, detailing recharge transactions, card sales, a log of unit events, cash flow reporting,
amount of cash entered into the unit, amounts of recharges and payment rejections.

 

d) Provide maintenance for the DCA units throughout
the ten-year Contract term, pursuant to the terms and provisions of Clause #8 of the present Contract, without additional cost
to BaseTek.

 

e)  Guarantee and maintain the service levels
delineated in Clause #7 of the present Contract.

 

f)  The DCA units must be installed and properly
functioning in the places to be designated by BaseTek and/or the End User.

 

g) Assume the cost of all import taxes, as
well as transportation costs to the installations sites.

 

h) Ensure the integration of the DCA units
with the End User’s collection platform via the available associated systems and mechanisms.

 

i)  Technical personnel must provide reports
in relation to technical services provided.

 

j)  Develop the units according to the features
that are stated in the API (Application Programming Interface).

 

k)  Employ an LSAM and an OLSAM provided by
BaseTek to perform laboratory testing in the event that validation uses are presented in the zonal system with charges generated
from the units, which must be paid by THE CONSORTIUM.

 

l)  Guarantee the transmission of payment transactions
to the central collection system. In the event that transactions become lost and therefore not transmitted to the central collection
system, THE CONSORTIUM shall assume the financial responsibility for such transactions, and such amounts will be deducted from
the amounts otherwise invoiced, subject to the correct functioning and performance of the communications platform provided by BASETEK
and/or End User.

 

    

     

    

 

m) In the event of unit failures that cannot
be resolved via the procedures established in Clause Seven, THE CONSORTIUM must replace the respective unit within 24 hours of
the failure.

 

n) Provide semester-based
training sessions for BASETEK and/or End User personnel related to operation of the DCA units.

 

o) Provide technical and operating manuals
for the DCA units, and update them as necessary.

 

p) Deliver detailed operating information from
an internal Help Desk and update such information as necessary.

 

q) Constitute the policies listed in Clause
#9 of the present Contract.

 

r)  THE CONSORTIUM warrants that it is the owner
of the DCA units, title to which it will transfer to BaseTek upon termination of the term of the Contract or upon exercise of the
option to purchase.

 

s) At the time of transfer of title to the
DCA units, THE CONSORTIUM will provide BaseTek with all related documentation, including importation, license and all other related
documentation.

 

t)  THE CONSORTIUM warrants that its property
rights in and to the DCA units do not infringe any third-party intellectual property rights.

 

u) Obtain any licenses necessary to provide
the DCA units.

 

v) Comply with all legal requirements applicable
to this type of contract, which requirements are incorporated herein.

 

w) Provide replacement parts for the DCA units,
which such parts shall be guaranteed by THE CONSORTIUM.

 

x) Generate a daily income report for each
unit.

 

y) Comply with the delivery schedule set forth
in Annex #3.

 

z) Guarantee the availability of the purchase
option in favor of BaseTek, pursuant to the terms and condition set forth in the present Contract.

 

aa) Permit BaseTek to sublease the DCA units
to RBSAS or other End User that shall use them for the collection of transit fares.

 

bb) Provide BaseTek with the software source
code in the event of the dissolution of THE CONSORTIUM.

 

    

     

    

 

cc) Perform the necessary steps to procure
a Colombian Tax ID Number for THE CONSORTIUM.

 

THIRD. OBLIGATIONS OF BASETEK.

 

a) Ensure that the equipment is permitted to
be installed in the designated transportation stations.

 

b) Ensure payment of the monthly rental invoices.

 

c) Report directly or through the End User
any developments or changes relating to the functioning or operation of the equipment.

 

d) Ensure directly or through the End User
the power supply and communications solution for the DCA units. Nevertheless, BaseTek is not responsible for non-compliance of
third parties in conjunction with the provision of such services, and therefore THE CONSORTIUM cannot hold BaseTek responsible
for such non-compliance and cannot invoice for units not in service as result of such power/communications failures.

 

e) Provide civil works, directly or through
the End User, if necessary, to adapt the facilities for installation of the DCAs, always and as long as the associated costs are
reasonable. THE CONSORTIUM shall inform BASETEK of the availability of the DCA units for installation, and if after 15 working
days the sites are not available for installation, THE CONSORTIUM may invoice the monthly fee for such DCA units.

 

f) Procure all necessary permits for installation
of the DCAs. Nevertheless, if the relevant third-party authority will not issue a permit, BaseTek shall not be responsible therefore,
and THE CONSORTIUM cannot invoice for the associated unit.

 

g) Provide and manage the transport debit cards.

 

h) Collect and manage the cash received into
the DCA system.

 

i) Ensure the procurement of risk policies
for vandalism and damage caused by natural disasters.

 

j) Procure and maintain in effect a compliance
policy, guaranteeing payment on a six-month rolling basis.

 

FOURTH.  VALUE  OF  RENTAL  PAYMENTS.  BASETEK  shall  remit  to  THE CONSORTIUM the sum of three
hundred and eighty thousand Colombian
Pesos plus VAT (COP $380.000 plus VAT) monthly per device throughout the term
of the Contract. Such sum is
subject to applicable
tax retentions under Colombian
law.

 

Such
amount
will be updated
annually by applying
the CPI
index from the
previous year, as
of the month
of January for
each year of the term of
the Contract.

 

    

     

    

 

 

The rental
payment
amount includes
all maintenance,
including spare parts
for the devices
and the software
and licenses required
for operation.

 

The
failure by BaseTek
to make
the monthly
rental payments
for five straight
months shall
allow THE CONSORTIUM
to remove
any DCA
unit to which such failure of
payment is applicable, as well as
invoke the penalty
provisions in Clause
#12 of the
present Contract.

 

FIFTH.
PAYMENT
METHOD. THE
CONSORTIUM shall
submit
an invoice at
the end of each
month including
all DCA units
that have
been installed and
accepted during
that month,
as well as the
prorated working days
in the month
on the basis
of $380,000 pesos
per month, which totals
$12,667
pesos per
day. There
will be
a formal
act of acceptance
for each DCA,
which act will enable
the initiation of
invoicing for each
respective
unit.

 

Invoices
shall be paid
within thirty (30)
days following presentation,
subject to satisfactory delivery
and functioning of the DCA units.

 

SIXTH.
TERM AND
PURCHASE OPTION.
The term
of this Contract
is ten (10)
years. In case of
termination for
breach, the provisions
of Clause 16
shall be exhausted.

 

In
any case, BASETEK
reserves the
right to exercise
the option to
purchase the
DCAs under
the following conditions:

 

-.
At the end
of the term
of 10 years,
BaseTek shall
be permitted
to exercise
the purchase
option by making
a payment
of COP $10.000
to THE CONSORTIUM
for each
DCA unit,
for a
total of COP $800.000.

 

-.
In the event
that, upon termination
of the Contract,
rental payments
remain due
and payable to THE
CONSORTIUM under the
term of the
Contract, BASETEK will
satisfy such payments
via a single
payment, based
on present value
and then
discounted at a
rate of 10%.

 

-.
The same
formula
above shall apply
in the event
of early termination
of the Contract
as the result of any cause, in order for BASTEK to
be able to exercise the purchase
option.

 

First Paragraph:
In the event
that BaseTek must
exercise the purchase option as
a result of a breach of contract by THE
CONSORTIUM, and a resulting cancelation
of the
Contract, the purchase option
shall be exercised without prejudice
to BaseTek’s right
to invoke the
terms and provisions of the penalty
clause set forth in Clause #12.

 

Second Paragraph: The purchase option is also available to the End User in the event that
BaseTek elects no to exercise the option.

 

SEVENTH.
SERVICE LEVELS.
THE CONSORTIUM will
ensure a
monthly “uptime”
of 99.5% system-wide.
If the percentage
of “uptime”
in a given
calendar month
falls below this guaranteed amount,
the following penalty shall apply
to that month’s invoice.

 

    

     

    

 

The penalty
is calculated
as follows:

A =%
guaranteed minimum “uptime” (99.5%)

B =%
of computed “uptime”
for invoiced calendar
month

C = (%
penalty) = A-B

The penalty
shall apply to
the current month’s invoice.

The monthly
“uptime” of
99.5% is measured
from the arrival
of a technician
at the physical location
of the
DCA.

Paragraph:
The dealer shall
guarantee
the delivery
dates set forth
in Annex
#3, and for
each day of
delay that
is attributable
to the act
or omission
of THE CONSORTIUM,
an amount
of .5% of the monthly
value of each delivery shall apply.

EIGHTH. MAINTENANCE.
THE CONSORTIUM shall
provide ongoing maintenance
and support for the
DCA units throughout
the term of
the contract based on the "Terms
of Service" as defined below:

1)  
The response
time for
a maintenance
problem is
measured from
the time
BASETEK formally
notifies THE
CONSORTIUM of the
failure.
The notification
of the failure
shall be
received by a
service center
maintained by
THE CONSORTIUM,
where a
record of
the reported
problem shall be
made. The
operator will
provide the Customer
with a ticker
number with
an associated timestamp.
THE CONSORTIUM shall committ
to have a technician arrive at the DCA
site within 45 minutes under normal
conditions, and within 90 minutes during peak traffic or
under unusual circumstances
related to traffic flow in the City.

 

2)  
The restoration
time is
measured from
the time
the technician
arrives on-site until
the time of
the completion
of the necessary
repairs. The
monthly
“uptime” of
99.5% is measured
from the arrival of a technician at the
DCA site.

 

3)   The critical spots are the sites where one (1) DCA is installed.

 

4)   The non-critical sites are locations where more than one (1) DCA is installed.

 

5)   The restoration times
relate only to
repairs made
to address normal
wear and tear
not associated with
or resulting from
vandalism or natural disasters.

 

6) 
 Necessary repairs or
replacements required
as a result
of vandalism or
natural disasters may
be provided but
is not included within the monthly
rental payment.

 

7)    “Downtime”
is calculated from the time an issue is registered
in the THE
CONSORTIUM system until the time
it is resolved
and the unit is running.
“Downtime” does not include operational failures due to power and energy network outages or other service
interruptions due to strikes or civil unrest. “Downtime” does not include blockages in the bill
and coin acceptors, given that this is contemplated in the First Level of service
that BaseTek or
the Final User provides.

 

    

     

    

 

 

8)    The
 uptime 
percentage  is  based 
on  total 
number  of 
DCA  units  installed
 and 
is calculated as
follows:

 

X = Total Number
of DCAs Installed

Y = Total number
of hours in a calendar month

Z = X * Y, or total “uptime”
available in a calendar month.

T = Total number of hours of
“downtime” in a calendar month

Uptime% = [(Z - T) / Z] x 100

9)   Maintenance levels are defined as follows:

 

Level
1: BASETEK
or End User
personnel, coordinated
via BASETEK,
remove bills
and coins that
have become
stuck or otherwise
lodged, and
manage all
issues related to
currency and shutting down/restarting
of the units
on a daily
basis. No service
ticket is
associated
with this process.

 

Level
2: Calibration and
updates of
bill and coin
acceptors,
hoppers, and other
peripherals. Regular cleaning
of the machines,
replacement of
parts that
may be
failing and management
of all operational
matters. In
general, these are
all items
that not covered
by Level 1,
and shall include calibration
and preventative
maintenance,
recommended by
the manufacturers
of the component
parts, including
the bill acceptors
and cyclers,
typically occurring between
20,000 and 25,000 transactions.
These items will
generate a service
ticket.

 

Level
3. Corrective
and preventive
maintenance of
the hardware
and software
resolved at
the Second Level of service. These interventions
will generate a
service ticket.

 

After
completion of
the 10-year term
of the Contract,
the Consortium will
be able to
continue to provide the
maintenance services
in the event
that the
Parties can
agree on the
market price
at that time.

 

NINTH.
GUARANTEES.
BASETEK shall procure
a compliance
policy on behalf
of THE CONSORTIUM
to guarantee payment,
and such policy
shall operate on
a minimum-6-months
rolling basis, specifically in the amount of COP $211.584.000.

 

The
Consortium must
procure a compliance
policy in the
amount of COP
$126.950.400, which amount shall
increase on an annual basis in conformity
with the national
CPI index.

 

The
Consortium must
procure a “civil
responsibility” and “third-party
liability” policy
in the
amount of COP $423.168.000.

 

    

     

    

 

TENTH.  EXCLUSION  OF  EMPLOYMENT.  THE  CONSORTIUM  is  an  independent
contractor. BASETEK is
not responsible for CONSORTIUM personnel under Colombian labor law. THE CONSORTIUM is responsible for all costs, including government-mandated
costs and contributions, for its personnel.

 

ELEVENTH.
INDEMNITY. THE
CONSORTIUM agrees to
indemnify BASETEK
and the
End User in
connection with any
action, claim,
demand, judgment,
order, sanction, fine,
or civil or criminal
proceeding, arising
out of any
act attributable to THE CONSORTIUM
in conjunction with the
deliberate failure
to comply
with the terms
of this Contract.
THE CONSORTIUM
shall be responsible for
the expenses and
costs incurred
by BASETEK or
the End
User in relation
to any of the events specified
in this clause,
including court costs
and attorneys’ fees.

 

Also,
BASETEK agrees to
indemnify THE
CONSORTIUM
in connection
with any
action, claim,
demand,
judgment, order,
sanction, fine,
or civil or
criminal proceeding,
arising out
of any act
attributable to
BASETEK or
the End
User in
conjunction with
the performance
of this Contract. BASETEK
shall be responsible
for the
expenses and costs
incurred by THE CONSORTIUM
in relation
to any of
the events
specified
in this clause,
including
court costs
and attorneys’ fees.

 

TWELFTH.
PENALY
CLAUSE.
In the event
of a breach
of this Contract
by either of
the Parties, it is
agreed that
a penalty equivalent
to 10% of
the total
value of
this Contract
shall apply.
Material default
by THE
CONSORTIUM shall be
understood as
follows: Six
consecutive months of
monthly “uptime”
of less than
99.5% system-wide
(which will lead to
the penalty provision in
the Clause 12
of this Agreement),
plus three (3)
months (after
the aforementioned six
(6) months)
to cure
problem. If
the problem
persists, resulting
in an
“uptime” of
less than 99.5% in the system for
nine consecutive months, such will be a failure by THE CONSORTIUM,
which shall allow
BASETEK to terminate the Contract.

 

Material
default by BaseTek
and/or the End
User shall be
constituted by five
(5) consecutive months of
failure to make
payment of
the invoices
issued by THE
CONSORTIUM, which shall permit
THE CONSORTIUM
to cancel the
Contract and invoke
the aforementioned
10% penalty, without prejudice
to its other
available remedies
under this Contract
or available at
law.

 

The
complying Party
may directly
discount any sums
due under this
penalty clause and
no pre- requirement or notification
of doing
so shall be
necessary.

 

THIRTEENTH.
ENFORCEABILITY. The
obligations described in
this Contract
shall be fully enforceable.

 

FOURTEENTH.
APPLICABLE
LEGISLATION. This
Contract shall
be governed
by the
laws of the Republic of Colombia.

 

    

     

    

 

 

FIFTEENTH.
CONFIDENTIALITY.
All information
exchanged between the
Parties, which is is
confidential
or the intellectual
property of
a Party, may
not be used
for purposes other
than those specified
in the contract
and necessary
to fulfill
the Contract,
and furthermore
may not
be used for the
individual interests
of a Party
outside of the
execution of the
Contract.

 

For
purposes of the
Contract, “Confidential Information”
is any information
disclosed in written, graphic,
verbal, or machine-recognizable
form, unless
it is marked,
designated, labelled or
identified at
the time
of disclosure
as being
non-confidential. Notwithstanding
any other
provisions of
this Contract,
Confidential
Information
shall not
include any
information
that: (i) is or
becomes publicly
known through no
wrongful act of
the receiving Party;
(ii) is already
known to the
receiving Party
without restriction
when it
is disclosed;
(iii) is,
or subsequently
becomes, rightfully and without
breach of this Contract, in the receiving
Party’s possession without any obligation
restricting disclosure; (iv)
is independently developed
by the
receiving Party
without breach of this Contract;
or (v) is explicitly
approved for release by written authorization
of the disclosing Party.

 

Each
Party will: (i)
maintain the
confidentiality
of the other
Party’s Confidential
Information and
not disclose it
to any third
party, except as
authorized by the
disclosing Party in writing
or as required
by a court
of competent
jurisdiction;
(ii) restrict
disclosure of
Confidential Information
to its subcontractors,
representatives, consultants,
legal advisors and
employees who have
a “need
to know”
and not
copy
or reproduce such
Confidential Information;
(iii) take necessary and
appropriate precautions
to guard the
confidentiality of
Confidential Information, including
informing its employees
who handle such Confidential Information
that it is confidential and not to be disclosed to
others, but such
precautions shall rise at least
to the same degree of care that the receiving
Party applies to its own Confidential Information
and shall not be less
than reasonable care; and
(iv) use such Confidential
Information
only in furtherance
of the performance of this Contract.
Confidential Information
is and shall at all times remain
the property of the
disclosing Party, and no
grant of
any proprietary rights
in Confidential Information
is hereby given
or intended, including
any express or
implied license,
other than the limited
right of the recipient to use Confidential
Information in the manner and to the extent
permitted by this Contract.

 

Upon
completion of
the Contract, the
Parties will be
required to return
to the other
Party all documentation
that has been
provided. These provision
shall remain
in effect
for an
additional five years following completion
of the Contract.

 

SIXTEENTH. ALTERNATIVE DISPUTE RESOLUTION.
The Parties agree
that in the
event that disputes arise between
them concerning the performance and execution of this
Contract, the following
procedures shall apply:
(i) The Parties shall attempt
to amicably and
directly resolve
the dispute, for which they will have a maximum
period of fifteen
(15) calendar days, counted from the date on which a Party submits a written complaint
to the other Party. (ii) the
Parties shall submit to a mutually-selected mediator. If the Parties cannot agree on the selection of a mediator, one will be appointed pursuant to the rules
and procedures of the Camara
de Comercio of Bogotá.
The Parties shall have
fifteen (15) days following selection or appointment of the mediatior
to attempt to resolve the dispute. If the dispute is not resolved via the above mechanism,
the dispute shall be submitted
to the arbitral tribunal, which will be responsible for resolving the dispute. The Tribunal of Arbitration shall be governed by the
following rules and conditions:
(a) The Arbitration and
Conciliation Division of the Camara
de Comercio of Bogotá; (b) one (1) arbitrator shall be appointed by the
Parties. If the Parties cannot reach an agreement
at the end of fifteen days from the written request
for arbitration, one shall be appointed by
the Camara de Comercio of Bogotá
from lists submitted by each of the Parties, which shall designate at most
5 arbitrators from said chamber. (c)
The Tribunal will operate according to the rules established
by the Division of Arbitration and Conciliation of the Camara de
Comercio of Bogotá; (d) The award shall be in law; (e) The Tribunal shall
sit in the city of Bogotá. The rules applicable to the arbitration shall be those in force on the subject under
the laws of the Republic of Colombia; (iii) Fees incurred
by the Tribunal will be shared equally between the Parties.

 

    

     

    

 

 

SEVENTEENTH.
ASSIGNMENT.
Neither Party may
assign the
Contract without
the prior written consent of the other Party.

 

EIGHTEENTH.
TERMINATION.
This Contract shall
be terminated
by the
occurrence of any of the following events:

 

1. 
By mutual agreement of the Parties.

 

2.  
By early termination
of the Contract
in the case
of a material
breach by
either Party of
any of the obligations stated herein, subject
to the provisions
of the Twelfth
and Sixteenth Clauses.

 

NINETEENTH.  PLACE OF PERFORMANCE OF THE CONTRACT.  The place of
performance of the Contract will be in the
city of Bogotá, D.C, Colombia.

 

TWENTIETH.
ADDRESS AND NOTIFICATION.
For legal and
tax purposes, BASETEK shall
receive notifications
at Calle 73
No. 6-30, Bogotá,
D.C., and
THE CONSORTIUM
shall receive notifications at Calle 109 No. 19-48 Oficina 302, Bogotá,
D.C.

 

TWENTY-FIRST.
CONTRACT EXPENSES.
All expenses
incurred in
the development
and execution of the Contract shall be borne by the
Parties separately
and individually.

 

TWENTY-SECOND.
DOCUMENTS. The
following documents,
attached as
exhibits, are
deemed a
part of this
Contract:
a) the Consortium
Agreement;
b) Certificates
of Good
Standing for ID
Global Solutions Corp.
and Hanco Technologies,
S.A.S.; c)
the award letter
accepting THE CONSORTIUM’s
proposal that gives
rise to this
Contract, and
which it
is incorporated herein; d) any other documented
pre-contractual conditions.

 

TWENTY-THIRD.
ENTIRE CONTRACT.
This Contract, including
any exhibits
or annexes
hereto, represent
the entire
understanding
of the
Parties with
respect
to the subject
matter
hereof and supersedes
all other
Contracts and
understandings, both
written and
oral, with respect
to the subject matter hereof.

 

    

     

    

 

TWENTY-FOURTH.  INTELLECTUAL PROPERTY.  THE CONSORTIUM grants non-exclusive, transferable authorization to use the
intellectual
property right
associated
with the units and incorporated software,
for the maximum
time permitted
by the respective
countries under whose laws such rights arise, and with a territorial scope encompassing
the entire world. THE CONSORTIUM represents that it has properly
acquired all right
and title to the DCA units
and their respective components, and guarantees that neither the units, nor the software, violate any
third-party intellectual property rights. In the event of a termination
of the consortium relationship between IDGS and Hanco, THE CONSORTIUM promises
to deliver the source
code to BaseTek.

 

Paragraph: THE
CONSORTIUM shall
indemnify
BaseTek for any
third-party claims,
demands or lawsuits against BaseTek
resulting from the breach of this
Clause.

 

TWENTY-FIFTH.  GUARANTEE OF THE UNITS.  THE
CONSORTIUM guarantees the units for a minimum
of seven years from the date
of exercise of the purchase option, without
limiting in any way the other obligations contained herein.

 

TWENTY-SIXTH.  JOINT AND SEVERAL RESPONSIBILITY.  The members
of THE CONSORTIUM are jointly and severally responsible to BaseTek for the execution and delivery of
the present Contract.

 

TWENTY-SEVENTH.
 TAXES. 
Each Party is
responsible for its
own taxes as
applicable to
it under Colombian law.

 

 

 

Executed
in Bogotá D.C.
this 15th
day of
September 2015.

 

 

 

 

FOR
BASETEK
S.A.S.

 

 

 

 

/s/ PEDRO LUIS CASTRO
RUANO 

PEDRO LUIS
CASTRO RUANO.

Legal Representative

 

 

 

 

FOR
THE
CONSORTIUM

 

 

 

 

/s/ DOUGLAS
SOLOMON

DOUGLAS SOLOMON

Legal Representative

 

    

     

    

ANNEX
#1

ADDED-VALUE
SERVICES

 

THE
CONSORTIUM is committed
to delivering
added-value services for
additional compensation, pursuant to
independent contracts
apart from the
present Contract, such as:

 

		-	Creating
                                         new or
                                         alternative payment
                                         services
                                         and
                                         methods,
                                         including
                                         Correspondent Banking,
                                         Wire Transfers
                                         and Collection.
                                         THE CONSORTIUM
                                         represents that
                                         it possesses its
                                         own transactional
                                         platform
                                         switch via
                                         its subsidiary,
                                         MultiPay, S.A.S., which
                                         currently operates
                                         the platform
                                         of
                                         Red
                                         4-72
                                         and
                                         correspondent
                                         banking
                                         for Colpatria Bank.

 

		-	Outreach
                                         to other
                                         recharging networks
                                         through
                                         a vending
                                         model
                                         associated
                                         with
                                         THE CONSORTIUM
                                         account,
                                         which
                                         include
                                         charging
                                         points
                                         with
                                         vending
                                         machine
                                         that can
                                         perform the
                                         recharging
                                         of the
                                         TuLlave card
                                         (subject
                                         to pilot
                                         test approval
                                         with the
                                         vending operator),
                                         the scope
                                         of which
                                         will be
                                         related
                                         to the
                                         award
                                         of additional
                                         devices apart
                                         from the
                                         80 DCA
                                         units that
                                         are the
                                         subject
                                         of the
                                         present
                                         Contract.

 

		-	Support
                                         BASETEK in API development on the Android platform.

 

Ensure
that the DCA
units have
the ability to
accommodate the
current
online payment model operated
by Recaudo Bogotá
S.A.S., via
an alliance that
BaseTek will create
with the monetary
transportation security company
with which it
presently
contracts.

 

    

     

    

 

ANNEX
#2

FUNCTIONAL REQUIREMENTS

 

The
Means of Payment

 

		-	Sale and
dispensing of the
physical method
of payment
(Debit Cards).
The debit card dispensation
module must
deliver the card
that the customer
is activating at
the time of purchase.
Cards available for sale within the device
are inactive.

 

		-	The recharge
module must
permit recharging
of all card
types currently operating with
the SITP
system. BASETEK must
ensure the correct
charging module
functionality with the
application interface
(API) and comply
with all current
and future modifications of the
interface application.

 

		-	Must allow virtual
recharges for
card activation
for users
who utilize
subsidies, balance transfers
or reloads
executed via
the Internet.

 

Collection

 

		-	Reception of
Currency Bills:
Receive Colombian
currency bills of
all denominations
with an
initial configuration
ranging from the
$1.000 pesos denomination
to the $20.000 pesos denomination. The units must be configurable for receiving new bill denominations that may be introduced in
the Colombian currency system. THE CONSORTIUM shall undertake the necessary developments to ensure that the units can accept
denominations above $20.000 pesos.

		-	Reception of
Coins with Escrow
System:
Receive all
Colombian
coin denominations
with an initial
configuration ranging
from $50 pesos
to $1.000 Pesos.
The option of which
coins the units
will receive
shall be
parameterized
on a
machine-by-machine basis
and updatable to
receive new coin
denominations that
may be
introduced into
the national currency
system.

 

		-	Bills must be entered into the units one-at-a-time.

 

		-	The minimum storage capacity for each DCA is 1,000 bills.

 

		-	Each unit must come with three bill acceptors, each with a 1,000-bill capacity.

 

		-	If counterfeit
bills are introduced,
the units shall
return the
bills back to
the user, informing
the user as
to the reason
for the return,
and then resolicit
the submission
of the bills into
the system.

 

		-	If counterfeit
bills are introduced,
the units shall
return the
bills back to
the user, informing
the user as
to the reason
for the return,
and then resolicit
the submission
of the bills into
the system.

 

		-	Calibration of
the Bill
Acceptors. The risk
of acceptance
of counterfeit money
by the units
lies with THE
CONSORTIUM.

 

    

     

    

 

		-	If a
card-charging
transaction
cannot be
completed as
a result
of a system
failure, the unit
shall return
the money
to the customer
and inform the
customer that
the transaction was
not feasible.
The failed
transaction shall
remain registered
in the system but
not affect the
functionality of the unit going forward.

 

		-	Cross-reference the
payment method
against the
current “blacklist” and
deny the processing of
transactions if the
card is blocked.
The unit must
update the blacklist
at least once a
day before 4:00
a.m. BASETEK
shall make
available to THE CONSORTIUM
the API and the updated blacklist.

 

		-	Allow the
customer to
consult his/her balance
on the card,
and in the
event that the balance
is negative,
inform the
client of
the amount
of the recharge
that is
necessary to eliminate
the negative
balance.

 

		-	If a
card-charging
transaction
cannot be
completed as
a result
of a system
failure, the unit
shall return
the money
to the customer
and inform the
customer that
the transaction was
not feasible.
The failed
transaction shall
remain registered
in the system.

 

Other Features

 

		-	Inventory Management: Card control and virtual control of cash/currency.

 

		-	Generation of
alerts if there
are bill
jams, unit
failure or unavailability,
hardware failures, software failures
and/or connectivity problems.

 

		-	Compatible
for use by
disabled persons, per
the specifications
listed in the
technical annex attached hereto.

 

		-	The DCA
must have the
ability to provide
the user with
information
on how to
use the unit, via
animation, visual
messages and
audio.

 

		-	An integrated
monitoring
and security
camera,
which will
be located
on the
front of
the unit and
can take a
photo of the
user and
the bill
acceptor. Video
access shall
remain available
for eight days.
Videos shall be
reviewable on-site and
which shall include date
and hour of
transaction as well as card number.

 

		-	The
DCA must
have a
menu offering
other languages
for operation
of the
unit, with
a minimum
offering of English.

 

		-	Provide information
on the display
screen, such
as transportation route
finding, changes or updates
in the system,
which must
be configured
according to the
needs of the operation,
as well as
any other contingencies
in the system
that can provide
additional information
to improve
the service experience.

 

    

     

    

 

		-	Provide data
on a real-time
reporting basis, including
information for
previous days, detailing recharge
transactions, card
sales, a log
of unit events,
cash flow
reporting, amount
of cash
entered into the
unit, amounts of recharges
and payment rejections.

 

Technicality
and Structure

 

		-	A requirement of 5% in spare parts in stock.

 

		-	The DCAs
must be
designed to operate
for the duration
Contract under the environmental
conditions typical in
the city of
Bogota. The units
must be
able to work outdoors
with the respective
dusty and humidity/moisture
conditions inherent in the
City. The
devices are
certified
with International
Protection
54 (IP
54), and
must be waterproof.

 

		-	Be equipped
with an internal
battery with a
minimum
capacity of 15
minutes to
meet contingencies in
case of power
failure.

 

		-	Functional software and licenses meeting all legal requirements.

 

		-	The development
of an intuitive,
user-friendly
interface, so customers
can execute purchases and
recharges quickly, thus
expediting the
time of
the transactions.

 

		-	The interface
design must be
approved by
RBSAS, and if
required THE CONSORTIUM
shall make
requested adjustments.
Furthermore, if
new unit functions are
incorporated
after receipt
and acceptance of
the DCAs, THE CONSORTIUM
must execute
them.

 

		-	The units
must come
with an online,
central monitoring
solution, which allows
for prompt attention related to maintenance
and operational issues.

 

		-	THE CONSORTIUM
must provide a
technical manual
with the details
of the component parts, including
respective life cycles.

 

		-	The units
shall come
equipped with a
metallic
cabinet, with
a frontal opening
and equipped according to
the operational needs.
The cabinet
structure
shall ensure sturdiness
for placement
and location of
the computer,
utilizing a
main metal
structure, which must
be fixed to
the floor
by at least
four (4)
screws or
bolts, with a proper
rust treatment.
The DCA must
have a suitable
fastening
system so
that its height does
not allow for
vibration or misalignment
when force is exerted via use.

 

		-	The device
should be vandalism-proof,
abuse-resistant, and
be formatted
to absorb shock, scratches, liquids and easy-cleaning
following attempts at vandalism.

 

		-	Regarding the
internal structure of
the unit,
access to money
should be located
in a compartment
independent of the
electronics or
maintenance components,
and ensuring mechanisms for secure
access.

    	 

    	 

    

 

		-	The locks must be “security” grade.

 

		-	The device
shall continue to
operate in
“offline” mode
in the
event of
a telecommunications failure.

 

		-	In the
event of failure,
the units must
be able
to account locally
for the possibility
of recuperation of
information
of sales and
recharge transactions.

 

		-	THE CONSORTIUM
shall incorporate
a tool for
monitoring and
managing the
units on a 24/7 basis, which includes:

                

		-	A messaging package that allows for the sending of alert messages and cost communication.

 

		-	Online ability to check the operation of all equipment.

 

		-	Remote management should allow for the validation of active configurations in the units.

 

		-	Display devices shall be grouped according to a defined classification (e.g., by portals and station types).

		-	Must have storage functionality with an
event log of
at least 30
days.

 

		-	Capacity to inform the central control station of intervention events at the site location of the units, via an alarm system.

 

		-	Capacity to inform the central control station and/or RBSAS of any changes occurring during the execution of operations, including
the capacity to inform such via an alarm system.

 

		-	Systems and inventory reports proving data to management regarding the sales of cards to customers.

 

		-	Be equipped with alarm system for cash
management purposes.

 

		-	Alarms related to failures of the
hardware, software and connectivity.

 

		-	The system shall conform to
existing protocols for connection to the
central collection system.

 

		-	Access and
Monitoring of Units’
Compartments:
Must ensure that
the equipment
has proper compartments
for access by
technical personnel, and
that such compartments
can be
securely locked
upon termination
of maintenance
and installation
work.  In
the event of any change or update in conjunction with the aforementioned, the system shall report an immediate failure designated
“high priority”.

 

    

     

    

 

Other Features

 

		-	Provide one training
session per semester
for groups of
up to twenty
people related
to technical operation of the DCA units, including for updates
or changes to
the units.

 

		-	Deliver technical and operational manuals and updates thereto when appropriate.

 

		-	THE  CONSORTIUM
 technical 
personnel  must
 provide  reports 
in  relation
 to technical services provided.

 

		-	The card recharge module must comply with the following minimum requirements:

 

		-	Card reader must
comply
with ISO 14443
Type A.

 

		-	Supply Voltage:
110 VAC
+/- 10%
60 HZ according
to Colombian
electrical regulations.

 

		-	Must have electrical protection systems
for the electrical outlets.

 

		-	Come equipped with a MTBF (Mean Time
Between Failures) module.

 

		-	Operating Temperature:
0°C to –
50°C.

 

		-	Humidity: 15%
to 90% without
condensation.

 

		-	Possibility to incorporate
2 cxt6SAM modules (Secure Access
Module).

 

		-	Maximum
time of
full (recharge)
transaction, from
which the card
is situated facing
the reader until
the transaction
log is generated in the terminal:
300 ms.

 

		-	RTC (Real
Time Clock),
which must maintain
a precision
time in
excess of 500ms
if updated on
a daily or
less frequent basis.
It must
come
with an
external sync command
that ensures periodic
synchronization.

 

		-	The deployed
units must
have at least
one Ethernet
port and communications modem
upgradeable and
scalable according
to the advances
in cellular communication
technology (3G, LTE,
etc.), covering
the data submission
requirements of
the solution, which
allows the
transfer of
server data to
Recaudo Bogota’s central processing unit.

 

		-	The transfer
of information
must  be programmed 
automatically  via 
Ethernet, GPRS,
3G, 4G
LTE, etc.

 

		-	The deployed
units must
have the ability
to operate under
two contingency
IP routing services
for high
availability,
so that
in the event
that the
primary connection
fails, automatic
routing to the
secondary
connection occurs.

 

    

     

    

 

ANNEX
#3

DELIVERY SCHEDULE

 

THE CONSORTIUM commits
to comply
with the following delivery
schedule:

First Delivery: September 23,
2015 – 20 DCA units.

Second Delivery:
October 28, 2015
– 20 DCA
units.

 

Third Delivery:
November 4, 2015
– 20 DCA
units.

 

Fourth
Delivery: November 11,
2015 – 20
DCA units.

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