Document:

Incentive Stock Option and Nonstatutory Stock Option Plan

 EXHIBIT 10.1 
  
 Conformed Copy 
  
 WOODFOREST BANCSHARES, INC. 
 HOUSTON,
TEXAS 
  
 INCENTIVE STOCK OPTION AND 
 NONSTATUTORY STOCK OPTION PLAN 
  
 1.    Purpose and Scope 
  
 The purpose of this Plan is to promote the interests of the Company and its shareholders by strengthening its ability to attract and retain key officers
and directors by furnishing additional incentives whereby such present and future officers, key employees, and directors may be encouraged to acquire, or to increase their acquisition of, the Company’s common stock, thus maintaining their
personal and proprietary interest in the Company’s continued success and progress. The Plan provides for the grant of Incentive Stock Options and the grant of Nonstatutory Stock Options in accordance with the terms and conditions set forth
below. 
  
 2.    Definitions 
  
 Unless otherwise required by the context: 
  
 2.01.    “Company” shall mean
Woodforest Bancshares, Inc., a Texas corporation, and any subsidiary corporation. 
  
 2.02.    “Board” shall mean the Board of Directors of the Company. 
  
 2.03.    “Committee” shall mean the Stock Option Plan Committee, which consists of three members appointed by
the Board. 
  
 2.04.    “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 2.05.    “Incentive Stock Option” shall mean a right to purchase stock, granted pursuant to the Plan, which
qualifies under Section 422 of the Code and the regulations thereunder. 
  
 2.06.    “Nonstatutory Stock Option” shall mean a right to purchase Stock, granted pursuant to the Plan, which does not qualify under Section 422 of the Code and the regulations thereunder.

 2.07.    “Options” shall mean either an Incentive Stock
Option or Nonstatutory Stock Option. 
  
 2.08.    “Option Price” shall mean the purchase price for Stock under an Incentive Stock Option or Nonstatutory Stock Option, as determined in Section 6 below. 
  
 2.09.    “Participant” shall mean
anyone to whom an Incentive Stock Option or Nonstatutory Stock Option is granted under the Plan. 
  
 2.10.    “Plan” shall mean the Woodforest Bancshares, Inc. Stock Option Plan. 
  
 2.11.    “Stock” shall mean the
common stock of Woodforest Bancshares, Inc. 
  
 3.    Stock to be Optioned 
  
 Subject to the provisions of Section 14 of the Plan, the maximum number of shares of Stock that may be optioned or sold under the Plan is 1,926,000 shares. Such shares may be treasury, or authorized, but unissued, shares of Stock of the
Company. If any Incentive Stock Option or Nonstatutory Stock Option granted under the Plan shall expire or terminate for any reason without having been exercised in full, the shares not purchased shall again be available for purposes of the Plan.

  
 4.    Administration 
  
 The Plan shall be administered by the Committee. Two members of the
Committee shall constitute a quorum for the transaction of business. The Committee shall be responsible to the Board for the operation of the Plan, and shall make recommendations to the Board with respect to participation in the Plan by employees
and directors of the Company, and with respect to the extent of that participation. The interpretation and construction of any provision of the Plan by the Committee shall be final, unless otherwise determined by the Board. No member of the Board or
the Committee shall be liable for any action or determination made by him in good faith. 
  
 5.    Eligibility 
  
 The Board, upon recommendation of the Committee, may grant Nonstatutory Stock Options to any director and Incentive Stock Options or Nonstatutory Stock Options to any officer, key executive, administrative or other
employee (including an employee who is a director of the Company). Options may be awarded by the Board at any time 
  

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 and from time to time to new Participants, or to then Participants, or to a greater or lesser number of Participants, and
may include or exclude previous Participants, as the Board, upon recommendation by the Committee shall determine. Options granted at different times need not contain similar provisions. 
  
 6.    Option Price 
  
 The purchase price for Stock under each Nonstatutory Stock Option shall be 100 percent of the fair market value of the Stock
at the time the Option is granted, unless the Committee determines otherwise. The purchase price for stock under each Incentive Stock Option shall not be less than 100 percent of the fair market value of the Stock at the time the Incentive Stock
Option is granted. 
  
 7.    Terms and Conditions of
Options 
  
 Options granted pursuant to the Plan shall be
authorized by the Board and shall be evidenced by a Stock Option Agreement in such form as the Board, upon recommendation of the Committee, shall from time to time approve. Such agreements shall comply with and be subject to the following terms and
conditions: 
  
 7.01.    Employment
Agreement.     The Board may, in its discretion, include in any Option granted under the Plan a condition that the Participant shall agree to remain in the employ of, and to render services to, the Company for a period of
time (specified in the agreement) following the date the Option is granted. No such agreement shall impose upon the Company, however, any obligation to employ the Participant for any period of time. 
  
 7.02.    Noncompetition.    The Board may, in its discretion, include in any Option granted under the Plan a condition that the Participant agree not to compete with the Company for a
specific period of time and/or within a specific geographic area. 
  
 7.03.    Time and Method of Payment.    The Option Price shall be paid in cash at the time an Option is exercised under the Plan and/or may be paid for by tendering of one or more shares
of Stock. Upon a tender of Stock, the fair market value of the Stock at the time of tender shall be used to determine the value of the Stock as payment. The Committee shall have sole discretion to determine the fair market value of the shares of
Stock taking into consideration such factors as the most recent appraisal of the Stock for purposes of the Company’s Employee Stock Ownership Plan, the Company’s year-to-date 
  

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 earnings, and recent trading prices of the Stock. Promptly after the exercise of an Option and the payment of the full
Option Price either in Stock or cash, the Participant shall be entitled to the issuance of a stock certificate evidencing his ownership of such share of Stock. A Participant shall have none of the rights of a shareholder until shares are issued to
him, and no adjustment will be made for dividends or other rights for which the record date is prior to the date such stock certificate is issued. 
  
 7.04.    Number of Shares.    Each Option shall state the total number of shares of Stock to which
it pertains. 
  
 7.05.    Option Period
and Limitations on Exercise of Options.    The Board may, in its discretion, provide that an Option may not be exercised in whole or in part for any period or periods of time specified in the Option Agreement. Except as
provided in the Option Agreement, an Option may be exercised in whole or in part at any time during its term. No Option may be exercised after the expiration of ten years from the date it is granted. No Option may be exercised for a fractional share
of Stock. 
  
 8.    Provisions Applicable to Incentive
Stock Options 
  
 It is intended that Incentive Stock
Options granted under the Plan shall constitute Incentive Stock Options within the meaning of Section 422 of the Code. The following provisions are applicable to any Incentive Stock Option granted under the Plan. 
  
 8.01.    Term of Incentive Stock
Option.    No Incentive Stock Option shall be exercisable prior to the date one year, or after the date ten years, from the date such Incentive Stock Option is granted. 
  
 8.02.    Ten Percent
Shareholder.    Notwithstanding any other provision herein contained, no Plan Participant may receive an Incentive Stock Option under the Plan if such Participant, at the time the award is granted, owns (as defined in
Section 424(d) of the Code) stock possessing more than ten percent of the total combined voting power of all classes of stock of the Company, unless the option price for such Incentive Stock Option is at least 110 percent of the fair market value of
the Stock subject to such Incentive Stock Option on the date of the grant and such Incentive Stock Option is not exercisable after the date five years from the date such Incentive Stock Option is granted. 
  
 8.03.    Limitation on
Amounts.    The aggregate fair market value (determined with respect to each Incentive Stock Option as of the time such Incentive Stock Option is 
  

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 granted) of the Stock with respect to which Incentive Stock Options are exercisable for the first time by a Participant
during any calendar year shall not exceed $100,000. 
  
 8.04.    Grant of Incentive Stock Option.    An Incentive Stock Option granted pursuant to the Plan must be granted within ten years from the date the Plan is adopted or the date the
Plan is approved by Company shareholders, whichever is earlier. 
  
 9.      Exercise of Options 
  
 The Committee, in granting Options hereunder, shall have discretion to determine the terms upon which such Options shall be exercisable, subject to the applicable provisions of the Plan. If a Participant is discharged
for just cause at any time, the entire number of shares of Stock granted to a Participant shall be forfeited. For this purpose, “just cause” shall mean theft, fraud, embezzlement or willful misconduct causing significant property damage to
the Company or personal injury to any employee of the Company. The Committee shall have sole discretion in determining “just cause” within the terms of this Section. 
  
 10.    Termination of Employment 
  
 Following the date of cessation of employment, the Participant may at any time within three months exercise his Options to
the extent that he was entitled to exercise them on the date of cessation of employment, but in no event shall any Option be exercisable more than ten (10) years from the date it was granted. In the sole discretion of the Committee, the Stock Option
Agreement may provide that should the Participant engage in employment or activities contrary, in the opinion of the Committee, to the best interests of the Company or any of its subsidiaries, then any Stock issued or to be issued to the Participant
shall become null and void. The Committee shall determine in each case whether a termination of employment shall be considered a retirement with the consent of the Company or a subsidiary, and, subject to applicable law, whether a leave of absence
shall constitute a termination of employment. Any such determination of the Committee shall be final and conclusive, unless overruled by the Board. 
  
 11.    Rights in Event of Death 
  
 If a Participant dies while employed by the Company or any of its subsidiaries, or within three months after having retired with the consent of the
Company or any of its subsidiaries, without having fully exercised his Options, the executors or administrators, 
  

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 or legatees or heirs, of his estate shall have the right to exercise such Options to the extent that such deceased
Participant was entitled to exercise the Options on the date of his death; provided, however, that in no event shall the Options be exercisable more than ten years from the date they were granted. 
  
 12.    No Obligations to Exercise Option 
  
 The granting of an Option shall impose no obligation upon the Participant to
exercise such Option. 
  
 13.    Nonassignability

  
 Options shall not be transferable other than by will or
by the laws of descent and distribution, and during a Participant’s lifetime shall be exercisable only by such Participant. 
  
 14.    Effect of Change in Stock Subject to the Plan 
  
 The aggregate number of shares of Stock available for Options under the Plan, the shares subject to any Option and the price
per share shall be proportionately adjusted for any increase or decrease in the number of issued shares of Stock subsequent to the effective date of the Plan resulting from (1) a subdivision or consolidation of shares or any other capital
adjustment, (2) the payment of a stock dividend, or (3) other increase or decrease in such shares effected without receipt of consideration by the Company. If the Company shall be the surviving corporation in any merger or consolidation, any Option
shall pertain, apply, and relate to the securities to which a holder of the number of shares of Stock subject to the Option would have been entitled after the merger or consolidation. Upon dissolution or liquidation of the Company, or upon a merger
or consolidation in which the Company is not the surviving corporation, all Options outstanding under the Plan shall terminate; provided, however, that each Participant (and each other person entitled under Section 11 to exercise an Option) shall
have the right, immediately prior to such dissolution or liquidation, or such merger or consolidation, to exercise such Participant’s Options in whole or in part, but only to the extent that such Options are otherwise exercisable under the
terms of the Plan. 
  

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 15.    Amendment and Termination 
  
 Neither the Board nor the Committee may, without the consent of the holder
of an Option, alter or impair any Option previously granted under the Plan, except as authorized herein. Unless sooner terminated, the Plan shall remain in effect for a period of ten (10) years from the earlier of the date of the Plan’s
adoption by the Board or approval by the Company shareholders. Termination of the Plan shall not affect any Option previously granted. 
  
 With respect to any shares of Stock to which Options have not been granted under the Plan, the Board, without further action on the part of the
shareholders of the Company, may from time to time alter, amend, or suspend certain provisions of the Plan except that it may not, without the approval of the shareholders of the Company: (i) change the number of shares of Stock available for
grant under the Plan, (ii) extend the duration of the Plan, (iii) increase the maximum term of Incentive Stock Options under the Plan, (iv) decrease the minimum option price of Incentive Stock Options, (v) change the class of
employees eligible to be granted Incentive Stock Options under the Plan, or (vi) effect a change relating to Incentive Stock Options granted under the Plan which is inconsistent with Code Section 422 or the regulations thereunder. 

 
 16.    Agreement and Representation of Employees

  
 As a condition to the exercise of any portion of an
Option, the Company may require the person exercising such Option to represent and warrant at the time of such exercise that any shares of Stock acquired at exercise are being acquired only for investment and without any present intention to sell or
distribute such shares, if, in the opinion of counsel for the Company, such a representation is required under the Securities Act of 1933 or any other applicable law, regulation, or rule of any governmental agency. 
  
 17.    Reservation of Shares of Stock 
  
 The Company, during the term of this Plan, will at all times reserve and
keep available, and will seek or obtain from any regulatory body having jurisdiction any requisite authority necessary to issue and to sell, the number of shares of Stock that shall be sufficient to satisfy the requirements of this Plan. The
inability of the Company to obtain from any regulatory body having jurisdiction the authority deemed necessary by counsel for the Company for the lawful issuance and sale of its Stock hereunder shall 
  

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 relieve the Company of any liability in respect of the failure to issue or sell Stock as to which the requisite authority
has not been obtained. 
  
 18.    Withholding Taxes

  
 Whenever under the Plan shares are to be issued upon the
exercise of Options thereunder, the Company shall have the right to require the Optionee to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements, if any, prior to the delivery of any Stock
certificate or certificates for such shares. Whenever under the Plan payments are made in cash such payment shall be net of an amount sufficient to satisfy federal, state and local withholding tax requirements. 
  
 19.    Effective Date of Plan 
  
 The Plan shall be effective from the earlier of the date of the Plan’s
adoption by the Board or approval by the shareholders of the Company. 
  
 Date
Approved By Board of
Directors:    10-18-95                                 
                    
  
 Date Approved by Company
Shareholders:    4-17-96                                
                 
  

 82004 Stock Incentive Plan

 Exhibit 10.2 
  
 WOODFOREST FINANCIAL GROUP, INC. 
  
 2004 STOCK INCENTIVE PLAN 
  
 1. PURPOSE 
  
 The purpose of the WOODFOREST FINANCIAL GROUP, INC. 2004 STOCK INCENTIVE PLAN (the “Plan”) is to provide a means through which Woodforest
Financial Group, Inc., a Texas corporation (the “Company”), and its subsidiaries, may attract able persons to the Company and to provide a means whereby those employees, Directors and consultants, upon whom the responsibilities of
the successful administration and management of the Company rest, and whose present and potential contributions to the welfare of the Company are of importance, can acquire and maintain stock ownership, thereby strengthening their concern for the
welfare of the Company and their desire to remain in its employ or service. A further purpose of the Plan is to provide such employees, Directors and consultants with additional incentive and reward opportunities designed to enhance the profitable
growth of the Company. Accordingly, the Plan provides for granting Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Performance Awards, Phantom Stock Awards, or any combination of the
foregoing, as is best suited to the circumstances of the particular Holder as provided herein. 
  
 2. DEFINITIONS 
  
 The
following definitions shall be applicable throughout the Plan unless specifically modified by any paragraph: 
  
 (a) “Affiliates” means any “parent corporation” of the Company and any “subsidiary” of the Company within the meaning
of Code Sections 424(e) and (f), respectively. 
  
 (b)
“Award” means, individually or collectively, any Option, Restricted Stock Award, Phantom Stock Award, Performance Award or Stock Appreciation Right. 
  
 (c) “Board” means the Board of Directors of the Company. 
  
 (d) “Change of Control” means the occurrence of any of the
following events: (i) the Company shall not be the surviving entity in any merger, consolidation or other reorganization (or survives only as a subsidiary of an entity other than a previously wholly-owned subsidiary of the Company); (ii) the
Company’s subsidiary bank is merged or consolidated into, or otherwise acquired by, an entity other than a wholly-owned subsidiary of the Company; (iii) the Company sells, leases or exchanges all or substantially all of its assets to any other
person or entity (other than a wholly-owned subsidiary of the Company); (iv) the Company is to be dissolved and liquidated; (v) any person or entity, including a “group” as contemplated by Section 13(d)(3) of the 1934 Act, acquires or
gains ownership or control (including, without limitation, power to vote or control the voting) of more than 50% of the outstanding shares of the Company’s voting stock (based upon voting power) or (vi) as a result of or in connection with a
contested election of directors, the persons who were directors of the Company before such election shall cease to constitute a majority of the Board. 
  

 (e) “Change of Control Value” shall mean (i) the per share price offered to shareholders
of the Company in any such merger, consolidation, reorganization, sale of assets or dissolution transaction; (ii) the price per share offered to shareholders of the Company in any tender offer or exchange offer whereby a Change of Control takes
place or (iii) if such Change of Control occurs other than pursuant to a tender or exchange offer, the Fair Market Value per share of the shares into which Awards are exercisable, as determined by the Committee, whichever is applicable. In the event
that the consideration offered to shareholders of the Company consists of anything other than cash, the Committee shall determine the fair cash equivalent of the portion of the consideration offered which is other than cash. 
  
 (f) “Code” means the Internal Revenue Code of 1986, as
amended. Reference in the Plan to any section of the Code shall be deemed to include any amendments or successor provisions to any section and any regulations under such section. 
  
 (g) “Committee” means the Compensation Committee of the Board which shall be (i) constituted so as to
permit the Plan to comply with Rule 16b-3 promulgated by the Securities and Exchange Commission (“Rule 16b-3”) under the 1934 Act and (ii) constituted solely of “outside directors” within the meaning of Code Section 162(m) and
applicable interpretive authority thereunder. 
  
 (h)
“Company” means Woodforest Financial Group, Inc. and any of its Affiliates. 
  
 (i) A “consultant” means an individual (other than a Director) who performs services for the Company or its Affiliates as an independent contractor. 
  
 (j) “Director” means an individual elected to the Board by
the shareholders of the Company or by the Board under applicable corporate law who is serving on the Board on the date the Plan is adopted by the Board or is elected to the Board after such date. 
  
 (k) An “employee” means any person (excluding a Non-Employee
Director), including an officer, in an employment relationship with the Company or any parent or subsidiary corporation (as defined in section 424 of the Code). 
  

(l) “1934 Act” means the Securities Exchange Act of 1934, as amended. 
  
 (m) “Fair Market Value” means, as of any specified date, the mean of the high and low sales prices of the
Stock (i) reported by the any interdealer quotation system on which the Stock is quoted on that date or (ii) if the Stock is listed on a national stock exchange, reported on the stock exchange composite tape on that date; or, in either case, if no
prices are reported on that date, on the last preceding date on which such prices of the Stock are so reported. If the Stock is traded over the counter at the time a determination of its fair market value is required to be made hereunder, its fair
market value shall be deemed to be equal to the average between the reported high and low or closing bid and asked prices of Stock on the most recent date on which Stock was publicly traded. In the event Stock is not publicly traded at the time a
determination of its value is required to be made hereunder, the determination of its fair market value shall be made by the Committee in such manner as it deems appropriate. 
  

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 (n) “Holder” means an employee, Director or consultant who has been granted an Award.

  
 (o) “Incentive Stock Option” means an option
that is designated as an incentive stock option within the meaning of section 422(b) of the Code. 
  
 (p) “Non-Employee Director” means an individual who is a Director of the Company and who is not an employee of the Company or any
Affiliate. 
  
 (q) “Nonqualified Stock Option”
means an option granted under Paragraph 7 of the Plan, to purchase Stock which does not constitute an Incentive Stock Option. 
  
 (r) “Option” means an Award granted under Paragraph 7 of the Plan and includes Incentive Stock Options to purchase Stock and Nonqualified
Stock Options to purchase Stock. 
  
 (s) “Option
Agreement” means a written agreement between the Company and a Holder with respect to an Option. 
  
 (t) “Performance Award” means an Award granted under Paragraph 10 of the Plan. 
  
 (u) “Performance Award Agreement” means a written agreement
between the Company and a Holder with respect to a Performance Award. 
  
 (v) “Phantom Stock Award” means an Award granted under Paragraph 11 of the Plan. 
  
 (w) “Phantom Stock Award Agreement” means a written agreement between the Company and a Holder with respect to a Phantom Stock Award.

  
 (x) “Plan” means the Woodforest Financial
Group, Inc. 2004 Stock Incentive Plan, as amended from time to time. 
  
 (y) “Restricted Stock Agreement” means a written agreement between the Company and a Holder with respect to a Restricted Stock Award. 
  

(z) “Restricted Stock Award” means an Award granted under Paragraph 9 of the Plan. 
  
 (aa) “Spread” means, in the case of a Stock Appreciation
Right, an amount equal to the excess, if any, of the Fair Market Value of a share of Stock on the date such right is exercised over the exercise price of such Stock Appreciation Right. 
  
 (bb) “Stock” means the common stock, $1.00 par value per share, of the Company. 
  
 (cc) “Stock Appreciation Right” means an Award granted under
Paragraph 8 of the Plan. 
  
 (dd) “Stock Appreciation
Rights Agreement” means a written agreement between the Company and a Holder with respect to an Award of Stock Appreciation Rights. 
  

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 3. EFFECTIVE DATE AND DURATION OF THE PLAN 
  
 The Plan shall be effective upon the date of its adoption by the Board,
provided that the Plan is approved by the shareholders of the Company within twelve months thereafter. No further Awards may be granted under the Plan after the expiration of ten years from the date of its adoption by the Board. The Plan shall
remain in effect until all Awards granted under the Plan have been satisfied or expired. 
  
 4. ADMINISTRATION 
  
 (a)
Committee. The Plan shall be administered by the Committee. 
  
 (b) Powers. Subject to the provisions of the Plan, the Committee shall have sole authority, in its discretion, to determine which employees, Directors or consultants shall receive an Award, the time or times when such Award shall be
made, whether an Incentive Stock Option, Nonqualified Stock Option or Stock Appreciation Right shall be granted, the number of shares of Stock which may be issued under each Option, Stock Appreciation Right or Restricted Stock Award, and the value
of each Performance Award and Phantom Stock Award. In making such determinations, the Committee may take into account the nature of the services rendered by the respective employees, Directors or consultants, their present and potential
contributions to the Company’s success and such other factors as the Committee in its discretion shall deem relevant. 
  
 (c) Additional Powers. The Committee shall have such additional powers as are delegated to it by the other provisions of the Plan. Subject to the
express provisions of the Plan, the Committee is authorized to construe the Plan and the respective agreements executed thereunder, to prescribe such rules and regulations relating to the Plan as it may deem advisable to carry out the Plan, and to
determine the terms, restrictions and provisions of each Award, including such terms, restrictions and provisions as shall be requisite in the judgment of the Committee to cause designated Options to qualify as Incentive Stock Options, and to make
all other determinations necessary or advisable for administering the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in any agreement relating to an Award in the manner and to the extent it shall
deem expedient to carry it into effect. The determinations of the Committee on the matters referred to in this Article 4 shall be conclusive. 
  
 5. GRANT OF OPTIONS, STOCK APPRECIATION RIGHTS, 
 RESTRICTED STOCK AWARDS, PERFORMANCE AWARDS 
 AND PHANTOM STOCK AWARDS; SHARES SUBJECT TO THE PLAN 
  
 (a) Stock Grant and Award Limits. The Committee may from time to time
grant Awards to one or more employees, Directors or consultants determined by it to be eligible for participation in the Plan in accordance with the provisions of Paragraph 6. Subject to Paragraph 12, the aggregate number of shares of Stock that may
be issued under the Plan shall not exceed 1,200,000 shares. Shares of Stock shall be deemed to have been issued under the Plan only to the extent actually issued and delivered pursuant to an Award. To the extent that an Award lapses or the rights of
its Holder terminate or the Award is paid in cash, any shares of Stock 

  

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subject to such Award shall again be available for the grant of an Award. Separate stock certificates shall be issued by the Company for those shares
acquired pursuant the exercise of an Incentive Stock Option and for those shares acquired pursuant to the exercise of a Nonqualified Stock Option. 
  
 (b) Stock Offered. The stock to be offered pursuant to the grant of an Award may be authorized but unissued Stock or Stock previously issued and
outstanding and reacquired by the Company. 
  
 6. ELIGIBILITY

  
 Awards may be granted only to persons who, at the time of
grant, are employees, Directors or consultants. An Award may be granted on more than one occasion to the same person, and, subject to the limitations set forth in the Plan, such Award may include an Incentive Stock Option or a Nonqualified Stock
Option, a Stock Appreciation Right, a Restricted Stock Award, a Performance Award, a Phantom Stock Award or any combination thereof. 
  
 7. STOCK OPTIONS 
  
 (a) Option Period. The term of each Option shall be as specified by the Committee at the date of grant, provided that the term of an Incentive
Stock Option cannot exceed ten years from the date of grant. 
  
 (b) Limitations on Exercise of Option. An Option shall be exercisable in whole or in such installments and at such times as determined by the Committee. 
  
 (c) Special Limitations on Incentive Stock Options. Incentive Stock Options may be granted only to employees. To the
extent that the aggregate Fair Market Value (determined at the time the respective Incentive Stock Option is granted) of Stock with respect to which Incentive Stock Options are exercisable for the first time by an individual during any calendar year
under all incentive stock option plans of the Company and its parent and subsidiary corporations exceeds $100,000, such Incentive Stock Options shall be treated as Nonqualified Stock Options. The Committee shall determine, in accordance with
applicable provisions of the Code, Treasury Regulations and other administrative pronouncements, which of an optionee’s Incentive Stock Options will not constitute Incentive Stock Options because of such limitation and shall notify the Holder
of such options of such determination as soon as practicable after such determination. No Incentive Stock Option shall be granted to an individual if, at the time the Option is granted, such individual owns stock possessing more than 10% of the
total combined voting power of all classes of stock of the Company or of its parent or subsidiary corporation, within the meaning of section 422(b)(6) of the Code, unless (i) at the time such Option is granted the option price is at least 110% of
the Fair Market Value of the Stock subject to the Option and (ii) such Option by its terms is not exercisable after the expiration of five years from the date of grant. 
  
 (d) Option Agreement. Each Option shall be evidenced by an Option Agreement in such form and containing such
provisions not inconsistent with the provisions of the Plan as the Committee from time to time shall approve, including, without limitation, provisions to qualify an Incentive Stock Option under section 422 of the Code. An Option Agreement may
provide 

  

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for the payment of the option price, in whole or in part, by the delivery of a number of shares of Stock (plus cash if necessary) having a Fair Market Value
equal to such option price. Each Option Agreement shall specify the effect of termination of employment, the cessation of serving on the Board or the cessation of performing services as a consultant on the exercisability of the Option. Moreover, an
Option Agreement may provide for a “cashless exercise” of the Option by establishing specific procedures related to such cashless exercise. Such Option Agreement may also include, without limitation, provisions relating to (i) vesting of
Options, subject to the provisions hereof accelerating such vesting on a Change of Control; (ii) tax matters (including provisions (y) permitting the delivery of additional shares of Stock or the withholding of shares of Stock from those acquired
upon exercise to satisfy federal or state income tax withholding requirements and (z) dealing with any other applicable employee wage withholding requirements) and (iii) any other matters not inconsistent with the terms and provisions of this Plan
that the Committee shall in its sole discretion determine. The terms and conditions of the respective Option Agreements need not be identical. 
  
 (e) Option Price and Payment. The price at which a share of Stock may be purchased upon exercise of an Option shall be determined by the Committee,
but (i) such purchase price shall not be less than the Fair Market Value of Stock subject to an Incentive Stock Option on the date such Incentive Stock Option, as the case may be, is granted and (ii) such purchase price shall be subject to
adjustment as provided in Paragraph 12. The Option or portion thereof may be exercised by delivery of an irrevocable notice of exercise to the Company. The purchase price of the Option or portion thereof shall be paid in full in the manner
prescribed by the Committee. 
  
 (f) Shareholder Rights and
Privileges. The Holder shall be entitled to all the privileges and rights of a shareholder only with respect to such shares of Stock as have been purchased under the Option and for which certificates of stock have been registered in the
Holder’s name. 
  
 (g) Options and Rights in Substitution
for Stock Options Granted by Other Corporations. Options and Stock Appreciation Rights may be granted under the Plan from time to time in substitution for stock options held by individuals employed by corporations who become employees as a
result of a merger or consolidation of the employing corporation with the Company or any subsidiary, or the acquisition by the Company or a subsidiary of the assets of the employing corporation, or the acquisition by the Company or a subsidiary of
stock of the employing corporation with the result that such employing corporation becomes a subsidiary. 
  
 8. STOCK APPRECIATION RIGHTS 
  
 (a) Stock Appreciation Rights. A Stock Appreciation Right is the right to receive an amount equal to the Spread with respect to a share of Stock upon the exercise of such Stock Appreciation Right. Stock
Appreciation Rights may be granted in connection with the grant of an Option, in which case the Option Agreement will provide that exercise of Stock Appreciation Rights will result in the surrender of the right to purchase the shares under the
Option as to which the Stock Appreciation Rights were exercised. Alternatively, Stock Appreciation Rights may be granted independently of Options in which case each Award of Stock Appreciation Rights shall be evidenced by a Stock Appreciation Rights
Agreement which shall contain such terms and 

  

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conditions as may be approved by the Committee. The Spread with respect to a Stock Appreciation Right may be payable either in cash, shares of Stock with a
Fair Market Value equal to the Spread or in a combination of cash and shares of Stock. With respect to Stock Appreciation Rights that are subject to Section 16 of the 1934 Act, however, the Committee shall, except as provided in Paragraph 12(c),
retain sole discretion (i) to determine the form in which payment of the Stock Appreciation Right will be made (i.e., cash, securities or any combination thereof) or (ii) to approve an election by a Holder to receive cash in full or partial
settlement of Stock Appreciation Rights. Each Stock Appreciation Rights Agreement shall specify the effect of termination of employment, the cessation of serving on the Board or the cessation of performing service as a consultant on the
exercisability of the Stock Appreciation Rights. 
  
 (b) Other
Terms and Conditions. At the time of such Award, the Committee, may in its sole discretion, prescribe additional terms, conditions or restrictions relating to Stock Appreciation Rights, including, but not limited to rules pertaining to
termination of employment, the cessation of serving on the Board or the cessation of performing services as a consultant (by retirement, disability, death or otherwise) of a Holder prior to the expiration of such Stock Appreciation Rights. Such
additional terms, conditions or restrictions shall be set forth in the Stock Appreciation Rights Agreement made in conjunction with the Award. Such Stock Appreciation Rights Agreements may also include, without limitation, provisions relating to (i)
vesting of Awards, subject to the provisions hereof accelerating vesting on a Change of Control; (ii) tax matters (including provisions covering applicable wage withholding requirements), and (iii) any other matters not inconsistent with the terms
and provisions of this Plan, that the Committee shall in its sole discretion determine. The terms and conditions of the respective Stock Appreciation Rights Agreements need not be identical. 
  
 (c) Exercise Price. The exercise price of each Stock Appreciation
Right shall be determined by the Committee, but such exercise price (i) shall not be less than the Fair Market Value of a share of Stock on the date the Stock Appreciation Right is granted (or such greater exercise price as may be required if such
Stock Appreciation Right is granted in connection with an Incentive Stock Option that must have an exercise price equal to 110% of the Fair Market Value of the Stock on the date of grant pursuant to Paragraph 7(c)), and (ii) shall be subject to
adjustment as provided in Paragraph 12. 
  
 (d) Exercise
Period. The term of each Stock Appreciation Right shall be as specified by the Committee at the date of grant. 
  
 (e) Limitations on Exercise of Stock Appreciation Right. A Stock Appreciation Right shall be exercisable in whole or in such installments and at
such times as determined by the Committee. 
  
 9. RESTRICTED
STOCK AWARDS 
  
 (a) Forfeiture Restrictions to be
Established by the Committee. Shares of Stock that are the subject of a Restricted Stock Award shall be subject to restrictions on disposition by the Holder and an obligation of the Holder to forfeit and surrender the shares to the Company under

  

 7 

 
certain circumstances (the “Forfeiture Restrictions”). The Forfeiture Restrictions shall be determined by the Committee in its sole discretion, and
the Committee may provide that the Forfeiture Restrictions shall lapse upon (i) the attainment of targets established by the Committee that are based on (a) the price of a share of Stock, (b) the Company’s earnings per share, (c) the
Company’s revenue, (d) the revenue of a business unit of the Company designated by the Committee, (e) the return on shareholders’ equity achieved by the Company or (f) the Company’s pre-tax cash flow from operations; (ii) the
Holder’s continued employment with the Company for a specified period of time or (iii) a combination of any two or more of the factors listed in clauses (i) and (ii) of this sentence. Each Restricted Stock Award may have different Forfeiture
Restrictions, in the discretion of the Committee. The Forfeiture Restrictions applicable to a particular Restricted Stock Award shall not be changed except as permitted by Paragraph 9(b) or Paragraph 12. 
  
 (b) Date of Lapse of Forfeiture Restrictions to be Established by the
Committee. The Committee, at the time of grant of a Restricted Stock Award, shall specify the date or dates (which may depend upon or be related to the attainment of targets and other conditions as set forth above) on which the Forfeiture
Restrictions shall lapse. The Committee at any time may accelerate such date or dates and otherwise waive or amend any conditions of the grant; provided, however, the Committee may not take any action described in this paragraph with respect to a
Restricted Stock Award that has been granted to a “covered employee” (within the meaning of Treasury Regulation § 1.162-27(c)(2)) if such Restricted Stock Award has been designed to meet the exception for performance-based
compensation under Section 162(m) of the Code. With respect to a Restricted Stock Award granted to a “covered employee,” if the Forfeiture Restrictions imposed upon such Restricted Stock Award are based on the attainment of performance
goals, the Committee shall certify in writing that such performance goals have been attained. 
  
 (c) Other Terms and Conditions. Stock awarded pursuant to a Restricted Stock Award shall be represented by a stock certificate registered in the name of the Holder of such Restricted Stock Award. The Holder
shall have the right to receive dividends with respect to Stock subject to a Restricted Stock Award, to vote Stock subject thereto and to enjoy all other shareholder rights, except that (i) the Holder shall not be entitled to delivery of the stock
certificate until the Forfeiture Restrictions shall have expired; (ii) the Company shall retain custody of the Stock until the Forfeiture Restrictions shall have expired; (iii) the Holder may not sell, transfer, pledge, exchange, hypothecate or
otherwise dispose of the Stock until the Forfeiture Restrictions shall have expired and (iv) a breach of the terms and conditions established by the Committee pursuant to the Restricted Stock Agreement shall cause a forfeiture of the Restricted
Stock Award. At the time of such Award, the Committee may, in its sole discretion, prescribe additional terms, conditions or restrictions relating to Restricted Stock Awards, including, but not limited to, rules pertaining to the termination of
employment, the cessation of serving on the Board or the cessation of service as a consultant (by retirement, disability, death or otherwise) of a Holder prior to expiration of the Forfeiture Restrictions. Such additional terms, conditions or
restrictions shall be set forth in a Restricted Stock Agreement made in conjunction with the Award. Such Restricted Stock Agreement may also include, without limitation, provisions relating to (i) vesting of Awards, subject to the provisions hereof
accelerating vesting on a Change of Control; (ii) tax matters (including provisions (y) covering any applicable employee wage withholding requirements and (z) prohibiting an election by the Holder under Section 83(b) of the Code); and (iii) any
other matters not inconsistent with the 

  

 8 

 
terms and provisions of this Plan that the Committee shall in its sole discretion determine. The terms and conditions of the respective Restricted Stock
Agreements need not be identical. 
  
 (d) Payment for
Restricted Stock. The Committee shall determine the amount and form of any payment for Stock received pursuant to a Restricted Stock Award, provided that in the absence of such a determination, a Holder shall not be required to make any payment
for Stock received pursuant to a Restricted Stock Award, except to the extent otherwise required by law. 
  
 (e) Agreements. At the time any Award is made under this Paragraph 9, the Company and the Holder shall enter into a Restricted Stock Agreement
setting forth each of the matters as the Committee may determine to be appropriate. The terms and provisions of the respective Restricted Stock Agreements need not be identical. 
  
 10. PERFORMANCE AWARDS 
  
 (a) Performance Period. The Committee shall establish, with respect to and at the time of each Performance Award, a performance period over which
the performance of the Holder shall be measured. 
  
 (b)
Performance Awards. Each Performance Award shall have a maximum value established by the Committee at the time of such Award. 
  
 (c) Performance Measures. A Performance Award shall be awarded to an employee, Director or consultant contingent upon future performance of the
employee, Director or consultant, the Company or any subsidiary, division or department thereof by or in which is he employed or for which he performs services during the performance period. The Committee shall establish the performance measures
applicable to such performance prior to the beginning of the performance period but subject to such later revisions as the Committee shall deem appropriate to reflect significant, unforeseen events or changes. 
  
 (d) Awards Criteria. In determining the value of Performance Awards,
the Committee shall take into account a Holder’s responsibility level, contributions, performance, potential, other Awards and such other considerations as it deems appropriate. 
  
 (e) Payment. Following the end of the performance period, the Holder of a Performance Award shall be entitled to
receive payment of an amount, not exceeding the maximum value of the Performance Award, based on the achievement of the performance measures for such performance period, as determined by the Committee. Payment of a Performance Award may be made in
cash, Stock or a combination thereof, as determined by the Committee. Payment shall be made in a lump sum or in installments as prescribed by the Committee. Any payment to be made in Stock shall be based on the Fair Market Value of the Stock on the
payment date. If a payment of cash is to be made on a deferred basis, the Committee shall establish whether interest shall be credited, the rate thereof and any other terms and conditions applicable thereto. 
  
 (f) Termination of Employment, Cessation of Serving on Board or
Termination of Service. A Performance Award shall terminate if the Holder does not remain continuously in the 

  

 9 

 
employ of the Company, fails to serve on the Board or fails to perform services as a consultant at all times during the applicable performance period, except
as may be determined by the Committee or as may otherwise be provided in the Award at the time granted. 
  
 (g) Agreements. At the time any Award is made under this Paragraph 10, the Company and the Holder shall enter into a Performance Award Agreement
setting forth each of the matters contemplated hereby, and, in addition such matters as are set forth in Paragraph 9(b), as the Committee may determine to be appropriate. The terms and provisions of the respective agreements need not be identical.

  
 11. PHANTOM STOCK AWARDS 
  
 (a) Phantom Stock Awards. Phantom Stock Awards are rights to receive
shares of Stock (or cash in an amount equal to the Fair Market Value thereof), or rights to receive an amount equal to any appreciation in the Fair Market Value of Stock (or portion thereof) over a specified period of time, which vest over a period
of time or upon the occurrence of an event (including without limitation a Change of Control) as established by the Committee, without payment of any amounts by the Holder thereof (except to the extent otherwise required by law) or satisfaction of
any performance criteria or objectives. Each Phantom Stock Award shall have a maximum value established by the Committee at the time of such Award. 
  
 (b) Award Period. The Committee shall establish, with respect to and at the time of each Phantom Stock Award, a period over which or the event upon
which the Award shall vest with respect to the Holder. 
  
 (c)
Awards Criteria. In determining the value of Phantom Stock Awards, the Committee shall take into account a Holder’s responsibility level, contributions, performance, potential, other Awards and such other considerations as it deems
appropriate. 
  
 (d) Payment. Following the end of the
vesting period for a Phantom Stock Award, the Holder of a Phantom Stock Award shall be entitled to receive payment of an amount, not exceeding the maximum value of the Phantom Stock Award, based on the then vested value of the Award. Payment of a
Phantom Stock Award may be made in cash, Stock or a combination thereof as determine by the Committee. Payment shall be made in a lump sum or in installments as prescribed by the Committee in its sole discretion. Any payment to be made in Stock
shall be based on the Fair Market Value of the Stock on the payment date. Cash dividend equivalents may be paid during or after the vesting period with respect to a Phantom Stock Award, as determined by the Committee. If a payment of cash is to be
made on a deferred basis, the Committee shall establish whether interest shall be credited, the rate thereof and any other terms and conditions applicable thereto. 
  
 (e) Termination of Employment, Cessation of Serving on Board or Termination of Service. A Phantom Stock Award shall
terminate if the Holder does not remain continuously in the employ of the Company, fails to serve on the Board or fails to perform services as a consultant at all times during the applicable vesting period, except as may be otherwise determined by
the Committee or as set forth in the Award at the time of grant. 
  

 10 

 (f) Agreements. At the time any Award is made under this Paragraph 11, the Company and the Holder
shall enter into a Phantom Stock Award Agreement setting forth each of the matters contemplated hereby, and, in addition such matters as are set forth in Paragraph 9(b), as the Committee may determine to be appropriate. The terms and provisions of
the respective agreements need not be identical. 
  
 12.
RECAPITALIZATION OR REORGANIZATION 
  
 (a) In the event of
changes in the outstanding Stock by reason of a stock split, stock dividend, combination of shares or other relevant changes in capitalization, the number and kind of shares of Stock or other securities which are subject to this Plan or subject to
any Awards theretofore granted, and the purchase prices or exercise prices, as applicable, shall be appropriately and equitably adjusted so as to maintain the proportionate number of shares or other securities without changing the aggregate purchase
price or exercise price, as applicable. 
  
 (b) If the Company
recapitalizes or otherwise changes its capital structure, thereafter upon any exercise or satisfaction, as applicable, of an Award theretofore granted the Holder shall be entitled to (or entitled to purchase, if applicable) under such Award, in lieu
of the number of shares of Stock then covered by such Award, the number and class of shares of stock and securities to which the Holder would have been entitled pursuant to the terms of the recapitalization if, immediately prior to such
recapitalization, the Holder had been the holder of record of the number of shares of Stock then covered by such Award. 
  
 (c) Upon the occurrence of a Change of Control, the Committee, in its discretion, may direct that all or a portion of the outstanding Awards shall
immediately vest and become exercisable or satisfiable, as applicable. The Committee, in its discretion, may determine that upon the occurrence of a Change of Control, each Award other than an Option outstanding hereunder shall terminate within a
specified number of days after notice to the Holder, and such Holder shall receive, with respect to each share of Stock subject to such Award, cash in an amount equal to the excess, if any, of the Change of Control Value over the exercise price.
Further, upon the occurrence of a Change of Control, the Committee, in its discretion, shall act to effect one or more of the following alternatives with respect to outstanding Options, which may vary among individual Holders and which may vary
among Options held by any individual Holder: (i) determine a limited period of time for the exercise of such Options on or before a specified date (before or after such Change of Control) after which specified date all unexercised Options and all
rights of Holders thereunder shall terminate; (ii) require the mandatory surrender to the Company by selected Holders of some or all of the outstanding Options held by such Holders (irrespective of whether such Options are then exercisable under the
provisions of the Plan) as of a date, before or after such Change of Control, specified by the Committee, in which event the Committee shall thereupon cancel such Options and the Company shall pay to each Holder an amount of cash per share equal to
the excess, if any, of the Change of Control Value of the shares subject to such Option over the option price(s) under such Options for such shares; (iii) make such adjustments to Options then outstanding as the Committee deems appropriate to
reflect such Change of Control (provided, however, that the Committee may determine in its sole discretion that no adjustment is necessary to Options then outstanding) or (iv) provide that thereafter upon any exercise of an Option theretofore
granted the Holder shall be entitled to purchase under such Option, in lieu of the number of shares of Stock then covered by such 

  

 11 

 
Option the number and class of shares of stock or other securities or property (including, without limitation, cash) to which the Holder would have been
entitled pursuant to the terms of the agreement of merger, consolidation or sale of assets and dissolution if, immediately prior to such merger, consolidation or sale of assets and dissolution the Holder has been the holder of record of the number
of shares of Stock then covered by such Option. The provisions contained in this paragraph shall not alter or terminate any rights of the Holder to further payments pursuant to any other agreement with the Company following a Change of Control.

  
 (d) The existence of the Plan and the Awards granted hereunder
shall not affect in any way the right or power of the Board or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger
or consolidation of the Company, any issue of debt or equity securities ahead of or affecting Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its
assets or business or any other corporate act or proceeding. 
  
 (e) Any adjustment provided for in Subparagraphs (a), (b) or (c) above shall be subject to any required shareholder action. 
  
 (f) Except as hereinbefore expressly provided, the issuance by the Company of shares of stock of any class or securities convertible into shares of stock
of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares of obligations of the Company convertible into such shares or other securities, and in
any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to Awards theretofore granted or the purchase price per share, if applicable.

  
 13. AMENDMENT AND TERMINATION OF THE PLAN 
  
 The Board in its discretion may terminate the Plan at any time with respect
to any shares for which Awards have not theretofore been granted. The Board shall have the right to alter or amend the Plan or any part thereof from time to time; provided that no change in any Award theretofore granted may be made which would
impair the rights of the Holder without the consent of the Holder (unless such change is required in order to cause the benefits under the Plan to qualify as performance-based compensation within the meaning of section 162(m) of the Code and
applicable interpretive authority thereunder), and provided, further, that the Board may not, without approval of the shareholders, amend the Plan: 
  
 (a) to increase the maximum number of shares which may be issued on exercise or surrender of an Award, except as provided in Paragraph 12; 
  
 (b) to change the Option price; 
  
 (c) to change the class of employees, Directors or consultants eligible to
receive Awards or materially increase the benefits accruing to employees, Directors or consultants under the Plan; 
  

 12 

 (d) to extend the maximum period during which Awards may be granted under the Plan; 
  
 (e) to modify materially the requirements as to eligibility for participation
in the Plan; 
  
 (f) to decrease any authority granted to the
Committee hereunder in contravention of Rule 16b-3; or 
  
 (g) in
any other manner that would require shareholder approval under Rule 16b-3, the exchange on which Stock is listed, or Sections 162(m) or 422 of the Code or any successor provisions. 
  
 14. MISCELLANEOUS 
  
 (a) No Right to An Award. Neither the adoption of the Plan by the Company nor any action of the Board or the Committee shall be deemed to give an
employee, Director or consultant any right to be granted an Award to purchase Stock, a right to a Stock Appreciation Right, a Restricted Stock Award, a Performance Award or a Phantom Stock Award or any of the rights hereunder except as may be
evidenced by an Award or by an Option Agreement, Stock Appreciation Rights Agreement, Restricted Stock Agreement, Performance Award Agreement or Phantom Stock Award Agreement on behalf of the Company, and then only to the extent and on the terms and
conditions expressly set forth therein. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any other segregation of funds or assets to assure the payment of any Award. 
  
 (b) No Employment or Service Rights Conferred. Nothing contained in
the Plan shall (i) confer upon any employee, Director or consultant any right with respect to continuation of employment or service with the Company or any subsidiary or (ii) interfere in any way with the right of the Company or any subsidiary to
terminate his or her employment or service at any time. 
  
 (c)
Compliance With Other Laws; Withholding. The Plan, the grant and exercise of Awards thereunder, and the obligation of the Company to sell and deliver shares under such Awards, shall be subject to all applicable federal and state laws, rules
and regulations and to such approvals by any governmental or regulatory agency as may be required. The Company shall not be obligated to issue any Stock pursuant to any Award granted under the Plan at any time when the shares covered by such Award
have not been registered under any state and federal laws, rules or regulations as the Company or the Committee deems applicable and, in the opinion of legal counsel for the Company, there is no exemption from the registration requirements of such
laws, rules or regulations available for the issuance and sale of such shares. No fractional shares of Stock shall be delivered, nor shall any cash in lieu of fractional shares be paid. The Company shall have the right to deduct in connection with
all Awards any taxes required by law to be withheld and to require any payments required to enable it to satisfy its withholding obligations. 
  
 (d) No Restriction on Corporate Action. Nothing contained in the Plan shall be construed to prevent the Company or any subsidiary from taking any
corporate action which is deemed by the Company or such subsidiary to be appropriate or in its best interest, whether or 

  

 13 

 
not such action would have an adverse effect on the Plan or any Award made under the Plan. No employee, director, beneficiary or other person shall have any
claim against the Company or any subsidiary as a result of any such action. 
  
 (e) Restrictions on Transfer. An Award shall not be transferable otherwise than by will or the laws of descent and distribution or pursuant to a “qualified domestic relations order” as defined by the
Code or Title I of the Employee Retirement Income Security Act of 1974, as amended, or the rules thereunder, and shall be exercisable during the Holder’s lifetime only by such Holder or the Holder’s guardian or legal representative.

  
 (f) Section 162(m). If the Company is subject to 162(m)
of the Code, it is intended that the Plan comply fully with and meet all the requirements of Section 162(m) of the Code and regulations promulgated thereunder so that Options and Stock Appreciation Rights granted hereunder and, if determined by the
Committee, Restricted Stock Awards, shall constitute “performance-based” compensation within the meaning of such section. If any provision of the Plan would disqualify the Plan or would not otherwise permit the Plan to comply with Section
162(m) as so intended, such provision shall be construed or deemed amended to conform to the requirements or provisions of Section 162(m); provided that no such construction or amendment shall have an adverse effect on the economic value to a Holder
of any Award previously granted hereunder. With respect to any Award granted to a “covered employee” (as defined in Section 162(m)(3) of the Code), if the payment of such Award is contingent on the satisfaction of performance goals, such
performance goals shall be established in writing by the Committee not later than ninety (90) days after the commencement of the period of service to which the performance goals relate; provided, however, that the performance goals must be
established before twenty-five percent (25%) of such period of service has elapsed. The performance goals shall comply with the requirements of Treasury Regulation Section 1.162-27(e)(2). The Committee shall certify in writing prior to payment of
any such Award that such performance goals have been satisfied. 
  
 (g) Rule 16b-3. It is intended that the Plan and any grant of an Award made to a person subject to Section 16 of the 1934 Act meet all of the requirements of Rule 16b-3. If any provision of the Plan or any such Award would disqualify
the Plan or such Award under, or would otherwise not comply with, Rule 16b-3, such provision or award shall be construed or deemed amended to conform to Rule 16b-3. 
  
 (h) Governing Law. This Plan shall be construed in accordance with the laws of the State of Texas. 
  

 14

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