Document:

share-exchange_aree.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SHARE
EXCHANGE AGREEMENT

    

    This
Share Exchange Agreement (the “Agreement”) dated as of the 2nd day of April
2009, by and among Competitive Companies, Inc., a Nevada corporation (the
“Company”), Innovation Capital Management, Inc., a Delaware corporation
(“Innovation”), Innovation Capital Management LLC, a Texas Limited Liability
Company (“Innovation LLC”), DiscoverNet, Inc., a Wisconsin corporation
(“DiscoverNet”) each a “Selling Entity” and collectively the “Selling Entities”
and the shareholders, unit holders and preferred shareholders respectively, of
the Selling Entities named on the signature page of this Agreement
(collectively, the “Shareholders” and each, individually, a
“Shareholder”).

    

    WITNESSETH:

    

    WHEREAS,
the Shareholders are the holders of all of the issued and outstanding capital
stock, units and preferred shares respectively of the Selling Entities (the
“Selling Entity Shares”);

     

    WHEREAS,
the Company is acquiring a controlling interest in the Selling
Entities;

     

    WHEREAS,
the Company is willing to issue 29,075,600 shares of
its common stock, par value $0.001 per share (the “Common Stock”), to the
Shareholders in consideration for all of the Selling Entity Shares;
and

    

    WHEREAS,
the Company will acquire certain assets and liabilities of the Selling Entities
as additional consideration (the “Additional Consideration”);

     

    NOW,
THEREFORE, for the mutual consideration set out herein, the parties agree as
follows:

     

    1.
             
Exchange of Shares and
Issuance to the Shareholders.

     

    (a)  Issuance of Shares by the
Company. On and subject to the conditions set forth in this Agreement,
the Company will issue to the Shareholders, in exchange for 2,907,560 Selling
Entity Shares, which represents all of the issued and outstanding capital stock
of the Selling Entities, an aggregate of 29,075,600 shares of
Common Stock. The shares of Common Stock will be issued to the Shareholders in
the amounts set forth after their respective names in Schedule I to this
Agreement.

    

    (b)  Transfer of
the Selling Entity Shares by the Shareholders. Subject to the conditions
set forth in this Agreement, the Shareholders will transfer to the Company all
of the Selling Entity Shares in exchange for shares of Common
Stock.  Each Shareholder holds the number of Selling Entity Shares set
forth after his or her name in Schedule I to this
Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    (c)  Closing. The issuance
of the Common Stock to the Shareholders and the transfer of the Selling Entity
Shares to the Company will take place at a closing (the “Closing”) to be held at
the offices of Anslow & Jaclin, LLP, 195 Route 9 South, Suite 204,
Manalapan, New Jersey 07726 as soon as possible after or contemporaneously with
the satisfaction or waiver of all of the conditions to closing set forth in
Section 5 of this Agreement (the “Closing Date”).

    

    2.
             Representations and
Warranties of the Company. The Company hereby represents, warrants,
covenants and agrees as follows:

     

    (a)
   Organization and
Authority.

     

    
      	
              (i)  

            	
              The
      Company is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Nevada.  The Company
      does not have any equity investment or other interest, direct or indirect,
      in, or any outstanding loans, advances or guarantees to or on behalf of,
      any domestic or foreign corporation, Limited Liability Company,
      association, partnership, joint venture or other entity. 

            

    

    

    
      	
              (ii)  

            	
              Complete
      and correct copies of the Company’s certificate of incorporation and
      by-laws are available for review on the EDGAR system maintained by the
      U.S. Securities and Exchange Commission (the
  “Commission”).

            

    

    

    
      	
              (iii)  

            	
              The
      Company has full power and authority to carry out the transactions
      provided for in this Agreement, and this Agreement constitutes the legal,
      valid and binding obligations of the Company, enforceable in accordance
      with its terms, except as enforceability may be limited by bankruptcy,
      insolvency and other laws of general application affecting the enforcement
      of creditor’s rights and except that any remedies in the nature of
      equitable relief are in the discretion of the court.  All
      necessary action required to be taken by the Company for the consummation
      of the transactions contemplated by this Agreement has been
      taken.

            

    

    

    
      	
              (iv)  

            	
              The
      execution and performance of this Agreement will not constitute a breach
      of any agreement, indenture, mortgage, license or other instrument or
      document to which the Company is a party or by which its assets and
      properties are bound, and will not violate any judgment, decree, order,
      writ, rule, statute, or regulation applicable to the Company or its
      properties.  The execution and performance of this Agreement
      will not violate or conflict with any provision of the certificate of
      incorporation or by-laws of the
Company.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    
      	
              (v)  

            	
              The
      Securities, when issued pursuant to this Agreement, will be duly and
      validly authorized and issued, fully paid and non-assessable. The issuance
      of the Securities to Shareholders is exempt from the registration
      requirements of the Securities Act of 1933, as amended (the “Securities
      Act”), pursuant to an exemption provided by Section 4(2) and Rule 506
      promulgated thereunder.

            

    

    

    
      	
              (vi)  

            	
              The
      authorized capital stock of the Company consists of 500,000,000 shares of
      Common Stock, $0.001 par value of which 67,409,910 shares are currently
      issued and outstanding and 999,000,000 shares of preferred stock, $0.001
      par value of which 1,495,436 shares are issued.  Except as
      provided in, contemplated by, or set forth in this Agreement or the
      Company SEC Documents (as defined below), the Company has no outstanding
      or authorized warrants, options, other rights to purchase or otherwise
      acquire capital stock or any other securities of the Company, preemptive
      rights, rights of first refusal, registration rights or related
      commitments of any nature.  All issued and outstanding shares
      were either (i) registered under the Securities Act, or (ii) issued
      pursuant to valid exemptions from registration
  thereunder.

            

    

    

    
      	
              (vii)  

            	
              No
      consent, approval or agreement of any person, party, court, governmental
      authority, or entity is required to be obtained by the Company in
      connection with the execution and performance by the Company of this
      Agreement or the execution and performance by the Company of any
      agreements, instruments or other obligations entered into in connection
      with this Agreement.

            

    

     

    (b)
   SEC
Documents.

    

    
      	
              (i)  

            	
              The
      Company is registered pursuant to Section 12 of the Exchange Act and it is
      current with its reporting obligations under the Securities Exchange Act
      of 1934, as amended (the “Exchange Act”).  None of the Company’s
      filings made pursuant to the Exchange Act (collectively, the “Company SEC
      Documents”) contains any untrue statement of a material fact or omitted to
      state a material fact required to be stated therein or necessary to make
      the statements therein, in light of the circumstances under which they
      were made, not misleading.  The Company SEC Documents, as of
      their respective dates, complied in all material respects with the
      requirements of the Exchange Act, and the rules and regulations of the
      Commission thereunder, and are available on the Commission’s EDGAR
      system.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    
      	
              (ii)  

            	
              The
      Company SEC Documents include the Company’s audited consolidated financial
      statements for the fiscal year ended December 31, 2007 (the “Financial
      Statements”), including, in each case, a balance sheet and the related
      statements of income, stockholders’ equity and cash flows for the period
      then ended, together with the related notes.  The Audited
      Financial Statements have been certified by Lawrence Scharfman & Co.,
      CPA P.C. (“LS & Co.”).  The Financial Statements are in
      accordance with all books, records and accounts of the Company, are true,
      correct and complete and have been prepared in accordance with GAAP,
      consistently applied.  LS & Co. is independent as to the
      Company under the rules of the Commission pursuant to the Securities Act
      and is registered with the PCAOB. The Financial Statements present fairly
      the financial position of the Company at the respective balance sheet
      dates, and fairly present the results of the Company’s operations, changes
      in stockholders’ equity and cash flows for the periods
      covered.

            

    

    

    
      	
              (iii)  

            	
              At
      the close of business on September 30, 2008 the date of Company’s most
      recent Form 10-Q filing, the Company did not have any material
      liabilities, absolute or contingent, of the type required to be reflected
      on balance sheets prepared in accordance with GAAP which are not fully
      reflected, reserved against or disclosed on the September 30, 2008 balance
      sheet.  The Company has not guaranteed or assumed or incurred
      any obligation with respect to any debt or obligations of any Person,
      except endorsements made in the ordinary course of business in connection
      with the deposit of items for collection.  The Company does not
      have any debts, contracts, guaranty, standby, indemnity or hold harmless
      commitments, liabilities or obligations of any kind, character or
      description, whether accrued, absolute, contingent or otherwise, or due or
      to become due except to the extent set forth or noted in the Financial
      Statements, and not heretofore paid or
  discharged.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Absence of
      Changes.  Since September 30, 2008, except as set forth
      in the Company SEC Documents and to the best of Company’s knowledge, there
      have not been:

            

    

    

    
      	
              (i)  

            	
              any
      change in the consolidated assets, liabilities, or financial condition of
      the Company, except changes in the ordinary course of business which do
      not and will not have a material adverse effect on the
      Company;

            

    

    

    
      	
              (ii)  

            	
              any
      damage, destruction, or loss, whether or not covered by insurance,
      materially and adversely affecting the assets or financial condition of
      the Company (as conducted and as proposed to be
  conducted);

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    
      	
              (iii)  

            	
              any
      change or amendment to a material contract, charter document or
      arrangement not in the ordinary course of business to which the Company is
      a party other than contracts which are to be terminated at or prior to the
      Closing;

            

    

    

    
      	
              (iv)  

            	
              any
      loans made by the Company to any of affiliate of the Company or any of the
      Company’s employees, officers, directors, shareholders or any of its
      affiliates;

            

    

    

    
      	
              (v)  

            	
              any
      declaration or payment of any dividend or other distribution or any
      redemption of any capital stock of the
Company;

            

    

    

    
      	
              (vi)  

            	
              any
      sale, transfer, or lease of any of the Company’s assets other than in the
      ordinary course of business;

            

    

    

    
      	
              (vii)  

            	
              any
      other event or condition of any character which might have a material
      adverse effect on the Company;

            

    

    

    
      	
              (viii)  

            	
              any
      satisfaction or discharge of any lien, claim or encumbrance or payment of
      any obligation by Company except in the ordinary course of business and
      that is not material to the assets or financial condition of the Company;
      or

            

    

    

    
      	
              (ix)  

            	
              any
      agreement or commitment by the Company to do any of the things described
      in this Section 2(c).

            

    

    

    (d)  Property.  Except
as set forth in the Company SEC Documents, the Company does not own any real
estate and is not a party to any lease agreement.

    

    (e)  Taxes.  The
Company has filed all federal, state, county and local income, excise,
franchise, property and other tax, governmental and/or related returns, forms,
or reports, which are due or required to be filed by it prior to the date
hereof, except where the failure to do so would have no material adverse impact
on the Company, and has paid or made adequate provision in the financial
statement included in the Company SEC Documents for the payment of all taxes,
fees, or assessments which have or may become due pursuant to such returns or
pursuant to any assessments received.  The Company is not delinquent
or obligated for any tax, penalty, interest, delinquency or charge.

    

    (f)  Contracts and
Commitments.  Except as contemplated under this Agreement or
set forth in the Company SEC Documents, the Company is not a party to any
contract or agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    (g)  No Adverse
Change.  Since September 30, 2008, there has not been any
Material Adverse Change in the financial condition of the Company.  A
Material Adverse Change shall mean a material adverse change in the business,
financial condition, operations or prospects of a person.

    

    (h)  No
Defaults.  The Company is not in violation of its certificate
of incorporation or by-laws or any judgment, decree or order, applicable to
it.

    

    (i)  Litigation.  There
are no material (i.e., claims which, if adversely determined based on the
amounts claimed, would exceed fifty thousand dollars ($50,000) in the aggregate)
claims, actions, suits, proceedings, inquiries, labor disputes or investigations
(whether or not purportedly on behalf of the Company) pending or, to Company’s
knowledge, threatened against the Company or any of its assets, at law or in
equity or by or before any governmental entity or in arbitration or
mediation.

    

    (j)  Compliance with
Laws.  The Company, to its knowledge, is in full compliance
with all laws applicable to it (including, without limitation, with respect to
zoning, building, wages, hours, hiring, firing, promotion, equal opportunity,
pension and other benefit, immigration, nondiscrimination, warranties,
advertising or sale of products, trade regulations, anti-trust or control and
foreign exchange or, to the Company’s knowledge, environmental, health and
safety requirements).

    

    (k)  Contracts and
Commitments.  The Company is not a party to any contract of
agreement other than agreements that will be terminated at or prior to the
Closing.

    

    (l)  Intellectual
Property.  The Company has no intellectual property
rights.

    

    (m)  No
Broker.  Neither the Company nor any of its agents or employees
has employed or engaged any broker or finder or incurred any liability for any
brokerage fees, commissions or finders’ fees in connection with the transactions
contemplated by this Agreement.  The Company shall indemnify and hold
the Shareholders harmless against any loss, damage, liability or expense,
including reasonable fees and expenses of counsel, as a result of any brokerage
fees, commissions or finders’ fees which are due as a result of the consummation
of the transaction contemplated by this Agreement.

    

    (n) Reliance by
Shareholders.  The representations and warranties set forth in
this Section 2 taken together, do not contain any untrue statement of a material
fact or omits to state a material fact necessary to make the statements
contained herein and therein, when taken together, not misleading, and there is
no fact which materially and adversely affects the business, operations or
financial condition of the Company.  Shareholders may rely on the
representations set forth in this Section 2 notwithstanding any investigation it
may have made.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    3.
             Representations and
Warranties of Selling Entities and the Shareholders. The Selling Entities
and Shareholders hereby represent, warrant, covenant and agree as of the date
hereof and as of the Closing Date as follows:

    

     

    (a)
   Organization and
Authority.

     

    
      	
              (i)  

            	
              The
      Selling Entities are duly organized, validly existing and in good standing
      under the laws of their respective states of incorporation.  The
      Selling Entities do not have any equity investment or other interest,
      direct or indirect, in, or any outstanding loans, advances or guarantees
      to or on behalf of, any domestic or foreign corporation, Limited Liability
      Company, association, partnership, joint venture or other
      entity. 

            

    

    

    
      	
              (ii)  

            	
              Complete
      and correct copies of each of Innovation, Innovation LLC and DiscoverNet’s
      certificate of incorporation and by-laws are attached
    hereto.

            

    

    

    
      	
              (iii)  

            	
              The
      Shareholders and Selling Entities have full power and authority to carry
      out the transactions provided for in this Agreement, and this Agreement
      constitutes the legal, valid and binding obligations of the Shareholders
      and Selling Entities, enforceable in accordance with its terms, except as
      enforceability may be limited by bankruptcy, insolvency and other laws of
      general application affecting the enforcement of creditor’s rights and
      except that any remedies in the nature of equitable relief are in the
      discretion of the court.  All necessary action required to be
      taken by the Shareholders and Selling Entities for the consummation of the
      transactions contemplated by this Agreement have been
    taken.

            

    

    

    
      	
              (iv)  

            	
              The
      execution and performance of this Agreement will not constitute a breach
      of any agreement, indenture, mortgage, license or other instrument or
      document to which the Selling Entities are a party or by which its assets
      and properties are bound, and will not violate any judgment, decree,
      order, writ, rule, statute, or regulation applicable to the Selling
      Entities or their properties.  The execution and performance of
      this Agreement will not violate or conflict with any provision of the
      certificate of incorporation or by-laws of the Selling
      Entities.

            

    

    

    
      	
              (v)  

            	
              No
      consent, approval or agreement of any person, party, court, governmental
      authority, or entity is required to be obtained by the Shareholders or the
      Selling Entities in connection with the execution and performance by the
      Shareholders and Selling Entiites of this Agreement or the execution and
      performance by the Shareholders and Selling Entities of any agreements,
      instruments or other obligations entered into in connection with this
      Agreement.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    

    4.           Closing
Deliveries.

     

    (a)  On
the Closing Date, the Company shall deliver or cause to be delivered toeach
Shareholder:

     

    (i)  a
certificate registered in the name of each Shareholder representing the number
of shares of Common Stock, Units, and Preferred Shares respectively set forth on
Schedule I;

    

    (ii) a
legal opinion of counsel to the Company acceptable to the Shareholders;
and

    

    (b)  On
the Closing Date, each Shareholder shall deliver or cause to be deliveredto the
Company:

    

    (i) the
certificate representing such Shareholder’s shares of Selling Entity Shares, or
if the shares were issued in uncertificated form, a written representation
executed by an officer of the Selling Entity  that such Shareholder
was issued the number of shares set forth next to its name on Schedule
I.

    

     

    5.        Conditions to the Obligation
of the Shareholders to Close.  The obligations ofShareholders
under this Agreement are subject to the satisfaction of the followingconditions
unless waived by Shareholders:

     

    (a) Representations and
Warranties.  On the Closing Date, the representations and
warranties of the Company shall be true and correct in all material respects on
and as of the Closing Date with the same force and effect as if made on such
date, and the Company shall have performed all of their respective obligations
required to be performed by them pursuant to this Agreement at or prior to the
Closing Date, and Shareholders shall have received a certificate of the Company
to such effect and as to any other matters set forth in this
Agreement.

     

    (b) No Material Adverse
Change.  No Material Adverse Change in the business or
financial condition of the Company shall have occurred or be threatened since
the date of this Agreement, and no action, suit or proceedings shall be
threatened or pending before any court of governmental agency or authority or
regulatory body seeking to restraint, prohibition or the obtain damages or other
relief in connection with this Agreement or the consummation of the transactions
contemplated by this Agreement or that, if adversely decided, has or may have a
Material Adverse Effect.

     

    (c) Liabilities. On the
Closing Date, the Company’s total liabilities shall not exceed
$350,000.

     

    (d) Legal
Opinion.  The Shareholders shall have received a legal opinion
from the Company’s legal counsel, acceptable to the Shareholders

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

     

    (e)  Elections and
Appointments.  On the Closing Date, the Company shall appoint
William H. Gray as Chief Financial Officer of the Company.

     

    (f)  Shares
Outstanding.  The Company shall have 67,409,910 shares of
Common Stock outstanding without giving effect to the issuances contemplated
under this Agreement.

     

    

     

    6.           Indemnification

    

    
      	
              (a)  

            	
              The
      Company agrees to indemnify, defend and hold harmless
      each  Selling Entity, its Affiliates and, if applicable, their
      respective directors, officers, shareholders, employees, attorneys,
      accountants, agents and representatives and their heirs, successors and
      assigns from and against any and all Damages based upon, arising out of or
      otherwise in respect of (i) any inaccuracy in or any breach of any
      representation or warranty, of the Company contained in this Agreement,
      (ii) the failure of the Company to perform or observe fully any covenant,
      agreement or provision to be performed or observed by the Company pursuant
      to this Agreement, or (iii) any third-party claim arising out of or in
      connection with the operation of the Business of the Company on or before
      the Closing.

            

    

    

    
      	
              (b)  

            	
              The
      Selling Entities agree to indemnify, defend and hold harmless the Company,
      its Affiliates and, if applicable, their respective directors, officers,
      shareholders, employees, attorneys, accountants, agents and
      representatives and their heirs, successors and assigns from and against
      any and all Damages based upon, arising out of or otherwise in respect of
      (i) any inaccuracy in or any breach of any representation or warranty, of
      the Selling Entities contained in this Agreement, or (ii) the failure of
      the Selling Entities to perform or observe fully any covenant, agreement
      or provision to be performed or observed by the Selling Entities pursuant
      to this Agreement.

            

    

    

     

    
      	
               
      

            	
              7.

            	
              Accredited Investor
      Status. By countersigning this Agreement, each of the Shareholders,
      severally and not jointly, represents that such Shareholder is an
      accredited investor as such is defined in Regulation D promulgated under
      the Securities Act of 1933 as amended, because such Shareholder fits one
      of the definitions set forth in Exhibit A
      attached hereto.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              8.

            	
              Notices. Any
      notice, demand, request, waiver or other communication required or
      permitted to be given hereunder shall be in writing and shall be effective
      (a) upon hand delivery by telecopy, e-mail or facsimile at the address or
      number designated below (if delivered on a business day during normal
      business hours where such notice is to be received), or the first business
      day following such delivery (if delivered other than on a business day
      during normal business hours where such notice is to be received) or (b)
      on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur.  The
      addresses for such communications shall
be:

            

    

     

    if to the
Company:

     

    Competitive
Companies, Inc.

     

    Attn:
Chief Executive Officer

     

    19206
Huebner Ste. 202

     

    San
Antonio, TX 78258

     

    Tel:
(210) 233-8980

     

    Fax:
(210) 233-8986

     

    

     

    if to the Selling Entities
and the Shareholders:

     

    Innovation
Capital Management, Inc.

     

    Attn:
William H. Gray

     

    19206
Huebner Road, Suite 202

     

    San
Antonio, TX 78258

     

    Tel:
(210) 233-8980

     

    Fax:
(210) 233-8986

     

    

     

    with a copy to (which shall
not constitute notice):

     

    Anslow
& Jaclin LLP

     

    Attn:
Gregg E. Jaclin, Esq.

     

    Gary S.
Eaton, Esq.

     

    195 Route
9 South, Suite 204

     

    Manalapan,
NJ 07726

     

    Phone:
(732) 409-1212

     

    Fax:
(732) 577-1188

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

     

    9.
                Miscellaneous. 

     

    
      	
               
      

            	
              (a)

            	
              This
      Agreement constitutes the entire agreement between the parties relating to
      the subject matter hereof, superseding any and all prior or
      contemporaneous oral and prior written agreements, understandings and
      letters of intent. This Agreement may not be modified or amended nor may
      any right be waived except by a writing which expressly refers to this
      Agreement, states that it is a modification, amendment or waiver and is
      signed by all parties with respect to a modification or amendment or the
      party granting the waiver with respect to a waiver. No course of conduct
      or dealing and no trade custom or usage shall modify any provisions of
      this Agreement.

            

    

     

    
      	
               
      

            	
              (b)

            	
              This
      Agreement shall be governed by and construed in accordance with the laws
      of the State of Texas without regard to any principles of conflicts of law
      applicable to contracts made and to be performed entirely within such
      State.  Each of the parties hereby irrevocably consents and
      agrees that any legal or equitable action or proceeding arising under or
      in connection with this Agreement shall be brought in the federal or state
      courts located in the State of Texas, by execution and delivery of this
      Agreement, irrevocably submits to and accepts the jurisdiction of said
      courts, (iii) waives any defense that such court is not a convenient
      forum, and (iv) consent to any service of process method permitted by
      law.

            

    

     

    
      	
               
      

            	
              (c)

            	
              This
      Agreement shall be binding upon and inure to the benefit of the parties
      hereto, and their respective successors and permitted
    assigns.

            

    

     

    
      	
               
      

            	
              (d)
        

            	
              This
      Agreement may be executed in two or more counterparts, each of which shall
      be deemed an original but all of which together shall constitute one and
      the same document.  Fax or PDF copies of signatures shall be
      treated as originals for all
purposes.

            

    

     

    
      	
               
      

            	
              (e)

            	
              The
      various representations, warranties, and covenants set forth in this
      Agreement or in any other writing delivered in connection therewith shall
      survive the issuance of the Shares.

            

    

     

     

     

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    IN
WITNESS WHEREOF, the parties have executed this Share Exchange Agreement the day
and year first above written.

     

    COMPETITIVE COMPANIES,
INC.

    

    

    

    By: /S/ William
Gray

    
 

    

    INNOVATION
CAPITAL MANAGEMENT, INC.

    

    

    

    By: /S/ William
Gray

    

    

    

    INNOVATION
CAPITAL MANAGEMENT LLC

    

    

    

    By: /S/ William
Gray

    

    

    DISCOVERNET,
INC.

    

    

    

    By: /S/ William
Gray

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    Exhibit
A

    

    Accredited
investors

    

    A Person
who meets any one of the following tests is an accredited investor:

    

     (a)
  The Person is an individual who has a net worth, or joint net worth with
the Person’s spouse, of at least $1,000,000.

    

     (b)
  The Person is an individual who had individual income of more than
$200,000 (or $300,000 jointly with the Person’s spouse) for the past two years,
and the Person has a reasonable expectation of having income of at least
$200,000 (or $300,000 jointly with the Person’s spouse) for the current
year.

    

     (c)
  The Person is an officer or director of the Company.

    

     (d)
  The Person is a bank as defined in section 3(a)(2) of the Securities Act
or any savings and loan association or other institution as defined in section
3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary
capacity.

    

     (e)
  The Person is a broker or dealer registered pursuant to section 15 of the
Securities Exchange Act of 1934.

    

     (f)
  The Person is an insurance company as defined in section 2(13) of the
Securities
Act.                   

    

     (g)
  The Person is an investment company registered under the Investment
Company Act of 1940 or a business development company as defined in section
2(a)(48) of that Act.

    

     (h)
  The Person is a small Business Investment Company licensed by the U.S.
Small Business Administration under section 301(c) or (d) of the Small Business
Investment Act of 1958.

    

     (i)
  The Person is an employee benefit plan within the meaning of Title I of
the Employee Retirement Income Security Act of 1974, if the investment decision
is made by a plan fiduciary, as defined in section 3(21) of such Act, which is
either a bank, savings and loan association, insurance company, or registered
investment adviser, or if the employee benefit plan has total assets in excess
of $5,000,000 or, if a self-directed plan, with investment decisions made solely
by persons that are accredited investors.

    

     (j)
  The Person is a private business development company as defined in
section 202(a)(22) of the Investment Advisers Act of 1940.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

     (k)
  The Person is an organization described in Section 501(c)(3) of the
Internal Revenue Code, corporation, Massachusetts or similar business trust, or
partnership, not formed for the specific purpose of acquiring the securities
offered, with total assets in excess of $5,000,000.

    

     (l)
  The Person is a trust, with total assets in excess of $5,000,000, not
formed for the specific purpose of acquiring the securities offered, whose
purchase is directed by a sophisticated person as described in Rule
506(b)(2)(ii) of the Commission under the Securities Act.

    

     (m)
  The Person is an entity in which all of the equity owners are accredited
investors (i.e., all of the equity owners meet one of the tests for an
accredited investor).

    

     If
an individual Person qualifies as an accredited investor, such individual may
purchase the Shares in the name of his or her individual retirement account
(“IRA”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
B

    

    Assumed
Liabilities

    

    The
Company shall assume all circuit liabilities conducive to the ongoing operation
related to its fixed wireless operation.Exhibit 10.1

 

MORNINGSTAR, INC. INCENTIVE PLAN

 

(As Amended and Restated Effective January 1, 2009)

 

ARTICLE 1

 

Statement of Purpose

 

The
compensation policies of Morningstar, Inc. (the “Company”) are intended to
support the Company’s overall objective of enhancing Shareholder value.  In furtherance of this philosophy, the
Company has designed this Morningstar, Inc. Incentive Plan (the “Plan”) to
provide incentives for business performance, reward contributions towards goals
consistent with the Company’s business strategy, and enable the Company to
attract and retain highly qualified Employees. 
The Plan was originally effective January 1, 2005 and was then
amended and restated on May 22, 2007, effective as of January 1,
2007.  The Plan, as amended and restated
herein, is effective January 1, 2009. 
Where applicable, the Bonuses payable under the Plan are intended to
qualify as “performance-based compensation” under Section 162(m) of
the Code.

 

ARTICLE 2

 

Definitions

 

The
terms used in this Plan include the feminine as well as the masculine gender
and the plural as well as the singular, as the context in which they are used
requires. The following terms, unless the context requires otherwise, are
defined as follows:

 

	
  2.1

  	
   

  	
  “Affiliate” means any parent, subsidiary
  or other entity that is (directly or indirectly) controlled by, or controls,
  the Company.

  
	
   

  	
   

  	
   

  
	
  2.2

  	
   

  	
  “Board”
  means the Morningstar, Inc. Board of Directors.

  
	
   

  	
   

  	
   

  
	
  2.3

  	
   

  	
  “Bonus”
  means the incentive compensation determined under Section 4.4 of
  the Plan payable in cash.

  
	
   

  	
   

  	
   

  
	
  2.4

  	
   

  	
  “Bonus Bank” means a bookkeeping
  account maintained by the Company pursuant to Section 4.6(b) of the
  Plan.

  
	
   

  	
   

  	
   

  
	
  2.5

  	
   

  	
  “Bonus
  Pool” means an amount that may be established
  for the Company or a Business Unit, all or a portion of which may be
  allocated among the Eligible Employees of the Company or such Business Unit.

  
	
   

  	
   

  	
   

  
	
  2.6

  	
   

  	
  “Business Unit” means an organizational
  unit of business within the Company, as identified by the Company.

  
	
   

  	
   

  	
   

  
	
  2.7

  	
   

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

  
	
   

  	
   

  	
   

  
	
  2.8

  	
   

  	
  “Committee” means the
  Compensation Committee of the Board or any successor committee with
  responsibility for compensation, or any subcommittee, as long as the

  

 

 

	
   

  	
   

  	
  number
  of Committee members and their qualifications shall at all times be
  sufficient to meet the applicable requirements for “outside directors” under
  Section 162(m) and the regulations thereunder and the independence
  requirements of the NASDAQ Marketplace Rules or any other applicable
  exchange on which Morningstar, Inc.’s common equity is at the time
  listed, in each case as in effect from time to time.

  
	
   

  	
   

  	
   

  
	
  2.9

  	
   

  	
  “Company” means
  Morningstar, Inc. and any of its Subsidiaries that adopt this Plan or
  that have Employees who are participants under this Plan.

  
	
   

  	
   

  	
   

  
	
  2.10

  	
   

  	
  “Covered
  Employee” means an Executive Officer who is a “covered
  employee” for purposes of Section 162(m).

  
	
   

  	
   

  	
   

  
	
  2.11

  	
   

  	
  “Disability” means
  permanent and total disability as defined in the Company’s long term
  disability plan, or if no such plan is then in effect, as defined in Code
  Section 22(e)(3).

  
	
   

  	
   

  	
   

  
	
  2.12

  	
   

  	
  “Employee” means any person employed
  on a full-time or part-time basis by the Company or an Affiliate in a common
  law employee-employer relationship. A Participant shall not cease to be an
  Employee for purposes of this Plan in the case of (i) any leave of
  absence approved by the Company, or (ii) transfers between locations of
  the Company or among the Company, its Subsidiaries or any successor.

  
	
   

  	
   

  	
   

  
	
  2.13

  	
   

  	
  “Executive
  Officer” means an Employee who is an “executive officer”
  as defined in Rule 3b-7 promulgated under the Exchange Act.

  
	
   

  	
   

  	
   

  
	
  2.14

  	
   

  	
  “Exchange
  Act” means the Securities Exchange Act of 1934, as amended.

  
	
   

  	
   

  	
   

  
	
  2.15

  	
   

  	
  “Participant” means an Executive Officer or Employee as
  described in Article 3 of this Plan.

  
	
   

  	
   

  	
   

  
	
  2.16

  	
   

  	
  “Performance
  Period” means the period for which a Bonus may be paid.
  Unless otherwise specified by the Committee, the Performance Period shall be
  a calendar year, beginning on January 1 and ending on December 31
  of any year. The first Performance Period under the Plan, as amended and
  restated herein, shall be the calendar year 2009. Any bonus attributable to
  calendar year 2008 or any prior year shall be governed by the terms of the
  Plan, as in effect prior to this amendment and restatement effective
  January 1, 2009. No Bonus shall be payable under this Plan for a
  Performance Period beginning on or after January 1, 2009 until the Plan
  has been approved by the Company’s shareholders.

  
	
   

  	
   

  	
   

  
	
  2.17

  	
   

  	
  “Plan”, except
  where the context clearly indicates otherwise, means the
  Morningstar, Inc. Incentive Plan, as stated herein and as may be amended
  from time to time.

  
	
   

  	
   

  	
   

  
	
  2.18

  	
   

  	
  “SEC” means the
  U.S. Securities and Exchange Commission.

  
	
   

  	
   

  	
   

  
	
  2.19

  	
   

  	
  “Section 162(m)” means Code
  Section 162(m) and regulations promulgated thereunder by the
  Secretary of the Treasury.

  

 

2

 

ARTICLE 3

 

Participation

 

An
Executive Officer or other Employee of the Company designated by the Committee
individually or by classification shall be a Participant in this Plan and shall
continue to be a Participant until any Bonus he may receive has been paid or
forfeited under the terms of this Plan. 
The amount of a Participant’s Bonus, if any, will be governed by Article 4.

 

ARTICLE 4

 

Incentive Bonuses

 

	
  4.1

  	
   

  	
  Objective
  Performance Goals. The Committee shall establish written,
  objective performance goals for a Performance Period not later than 90 days
  after the beginning of the Performance Period (but not after more than 25% of
  the Performance Period has elapsed); provided that the outcome is
  substantially uncertain at the time the Committee establishes the Performance
  Goal. The objective performance goals shall be stated as specific amounts of,
  or specific changes in, one or more of the financial measures described in
  Section 4.2. Objective
  performance goals may also include operational goals such as: productivity,
  safety, other strategic objectives and individual performance goals. The
  objective performance goals need not be the same for different Performance
  Periods and for any Performance Period may be stated: (a) as goals for
  Morningstar, Inc., for one or more of its Subsidiaries, Business Units,
  divisions, organizational units, or for any combination of the foregoing;
  (b) on an absolute basis or relative to the performance of other
  companies or of a specified index or indices, or be based on any combination
  of the foregoing; and (c) separately for one or more Participants or
  Business Units, or in any combination of the two.

  
	
   

  	
   

  	
   

  
	
  4.2

  	
   

  	
  Financial
  Measures.  The Committee shall use
  any one or more of the following financial measures to establish objective
  performance goals under Section 4.1: earnings before interest and taxes
  (EBIT); earnings before interest, taxes, depreciation and amortization
  (EBITDA); net earnings; operating earnings or income; earnings growth; net
  income (absolute or competitive growth rates comparative); net income per
  share; cash flow, including operating cash flow, free cash flow, discounted
  cash flow return on investment, and cash flow in excess of cost of capital;
  earnings per share; return on shareholders’ equity (absolute or peer-group
  comparative); stock price (absolute or peer-group comparative); absolute
  and/or relative return on common shareholders’ equity; absolute and/or relative
  return on capital; absolute and/or relative return on assets; economic value
  added (income in excess of cost of capital); customer satisfaction; expense
  reduction; ratio of operating expenses to operating revenues; gross revenue
  or revenue by pre-defined business segment (absolute or competitive growth
  rates comparative); revenue backlog; margins realized on delivered services;
  total Shareholder return; dept-to-capital ratio or market share. The
  Committee may specify any reasonable definition of the financial measures it
  uses. Such definitions may provide for reasonable adjustments and may include
  or exclude items, including but not limited to: realized

  

 

3

 

	
   

  	
   

  	
  investment
  gains and losses; extraordinary, unusual or non-recurring items; gains or
  losses on the sale of assets; changes in accounting principles or the
  application thereof; currency fluctuations, acquisitions, divestitures, or
  necessary financing activities; recapitalizations, including stock splits and
  dividends; expenses for restructuring or productivity initiatives; and other
  non-operating items.

  
	
   

  	
   

  	
   

  
	
  4.3

  	
   

  	
  Performance
  Evaluation.  Within a reasonable time
  after the close of a Performance Period, the Committee shall determine, and
  with respect to Executive Officers certify in writing, whether the objective
  performance goals established for that Performance Period have been met by
  the respective Company, Business Unit, Executive Officers, Employees or
  otherwise subject to such performance goals, and the extent to which such
  performance goals may have been exceeded.

  
	
   

  	
   

  	
   

  
	
  4.4

  	
   

  	
  Bonus. If the
  Committee has determined, and with respect to Executive Officers certified in
  writing, that objective performance goals established for a Performance
  Period have been satisfied, the Committee will determine in its discretion
  the amount of bonuses payable by the Company. Bonus amounts determined by the
  Committee may be expressed as individual Bonuses payable to a Participant or
  as one or more Bonus Pools, all or a portion of which may be allocated as
  individual Bonuses to Participants employed in one or more Business Units.
  Such allocation may be made by the Committee or, to the extent permitted by
  applicable law, rule or regulation, by the senior executive of such Business
  Unit (or his or her designee) or other individuals as may be designated by
  the Committee.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notwithstanding
  any provision of this Plan to the contrary, the Committee shall determine any
  Bonus payable to a Covered Employee in a manner intended to satisfy the
  performance-based compensation exception under Code Section 162(m). As
  such, at the time the Committee establishes the objective performance goals
  for a Performance Period pursuant to Section 4.1, it shall establish a
  formula or standard for computing the amount of the Bonus payable to each
  Executive Officer, which Bonus, in the case of a Covered Employee, may be
  decreased, but may not be increased, in the Committee’s discretion. If such
  Bonus is to be derived from the amount allocated to one or more Bonus Pools,
  then: (i) the percentage of each such Bonus Pool that may be allocated
  to each Covered Employee must be stated as a specified share of such Bonus
  Pool or stated as a formula determining such share of the Bonus Pool(s);
  (ii) the total of such specified shares may not exceed 100% of the
  relevant Bonus Pool; and (iii) any discretion exercised by the Committee
  to decrease the Bonus payable to any Employee under a Bonus Pool may not
  result in an increase of the Bonus payable to any other Covered Employee
  under such Bonus Pool or any other Bonus Pool that may be established for
  such Performance Period. In no event may a Bonus payable to a Covered
  Employee for any Performance Period exceed $5,000,000.

  
	
   

  	
   

  	
   

  
	
  4.5

  	
   

  	
  Eligibility for Payments.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)           Except
  as otherwise provided in this Section 4.5, a Participant will be
  eligible to receive his or her Bonus only if the Participant is employed by
  the Company continuously from the first day of the Performance Period up to
  and including the last day of the Performance Period.

  

 

4

 

	
   

  	
   

  	
  (b)           Under
  Section 4.5(a), a leave of absence that lasts less than three months and
  that is approved in accordance with applicable Company policies is not a
  break in continuous employment. In the case of a leave of absence of three
  months or longer: (1) the Committee shall determine whether the leave of
  absence constitutes a break in continuous employment, and (2) if a
  Participant is on a leave of absence on the last day of the Performance
  Period, the Committee may require that the Participant return to active
  employment with the Company at the end of the leave of absence as a condition
  of receiving the Bonus or payment.  Any
  determination as to a Participant’s eligibility for a Bonus or payment under
  this Section 4.5(b) may be deferred for a reasonable period after
  such Participant’s return to active employment.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)           The
  Committee may determine, in its sole discretion, that a Bonus will be payable
  pro-rata for a Participant who either becomes an Employee during the
  Performance Period or terminates his or her employment with the Company
  during the Performance Period due to death or Disability.

  
	
   

  	
   

  	
   

  
	
  4.6

  	
   

  	
  Payment, Bonus Bank or Deferral of the Bonus.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)           As
  soon as practicable after the amount of a Participant’s Bonus is determined
  under Section 4.4, the Company shall pay the portion of the Bonus to the
  Participant that is not otherwise put in the Bonus Bank or deferred under
  this Section 4.6.  Payments under
  the Plan shall be made on or before the date that is 2-1⁄2 months after the end
  of the calendar year which includes the end of the Performance Period.  The Company shall deduct from any Bonus,
  any applicable Federal, state and local income and employment taxes, and any
  other amounts that the Company is otherwise required to deduct.  Any payment attributable to a deceased
  Participant shall be made to the beneficiary designated in the Company’s
  qualified 401(k) plan or, if no beneficiary is so designated, to his or
  her spouse or, if none, to his or her estate.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)           The
  Committee or, to the extent permitted by applicable law, rule or
  regulation, the senior executive of a Business Unit (or his or her designee)
  or other individuals as may be designated by the Committee, may determine
  that any portion of a Participant’s Bonus for a Performance Period shall be
  held in a Bonus Bank.  Any Bonus held
  in a Bonus Bank shall become payable, in whole or in part, only upon the
  satisfaction of objective performance goals identified and established by the
  Committee for the following Performance Period.  If such objective performance goals are met
  in the following Performance Period, all or a portion of the Bonus held in a
  Bonus Bank on behalf of such Participant shall be payable under Section 4.6(a),
  with interest at a risk-free rate as determined by the Committee.  If such objective performance goals are not
  met in the following Performance Period, any Bonus held in a Bonus Bank on
  behalf of such Participant will be forfeited unless otherwise determined by
  the Committee in its discretion.  This Section 4.6(b) shall
  apply to any Bonus for calendar year 2008 that is held in a Bonus Bank and is
  contingent upon satisfaction of the objective performance goals for the
  Performance Period beginning January 1, 2009.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)           Subject
  to the Committee’s approval and applicable law, Participants may request that
  payments of a Bonus be deferred under a deferred compensation arrangement
  maintained by the Company by making a deferral election prior to or, as
  permitted, 

  

 

5

 

	
   

  	
   

  	
  during
  the Performance Period pursuant to such rules and procedures as the
  Committee may establish from time to time with respect to such arrangement.

  

 

ARTICLE 5

 

Administration

 

	
  5.1

  	
   

  	
  General
  Administration and Delegation of Authority. This Plan
  shall be administered by the Committee, subject to such requirements for
  review and approval by the Board as the Board may establish. As permitted by
  applicable law and the Company, the Committee may delegate any of its duties
  and authority under the Plan.

  
	
   

  	
   

  	
   

  
	
  5.2

  	
   

  	
  Administrative
  Rules. The Committee shall have full power and authority
  to adopt, amend and rescind administrative guidelines, rules and
  regulations pertaining to this Plan and to interpret this Plan and
  rule on any questions respecting any of its provisions, terms and
  conditions.

  
	
   

  	
   

  	
   

  
	
  5.3

  	
   

  	
  Committee
  Members Not Eligible. No member of the
  Committee shall be eligible to participate in this Plan.

  
	
   

  	
   

  	
   

  
	
  5.4

  	
   

  	
  Committee
  Members Not Liable. The Committee and each of its members
  shall be entitled to rely upon certificates of appropriate officers of the
  Company with respect to financial and statistical data in order to determine
  if the objective performance goals for a Performance Period have been met.
  Neither the Committee nor any member shall be liable for any action or
  determination made in good faith with respect to this Plan or any Bonus paid
  hereunder.

  
	
   

  	
   

  	
   

  
	
  5.5

  	
   

  	
  Decisions
  Binding. All decisions, actions and interpretations of the
  Committee concerning this Plan shall be final and binding on
  Morningstar, Inc. and its Subsidiaries and their respective boards of
  directors, and on all Participants and other persons claiming rights under
  this Plan.

  

 

ARTICLE 6

 

Amendments; Termination

 

This
Plan may be amended or terminated by the Board or the Committee. All amendments
to this Plan, including an amendment to terminate this Plan, shall be in
writing. An amendment to this Plan shall not be effective without the prior
approval of the shareholders of Morningstar, Inc. if such approval is
necessary to qualify Bonuses as performance-based compensation under Section 162(m),
or otherwise under Treasury or SEC regulations, the NASDAQ Marketplace Rules or
any other applicable exchange or any other applicable law or regulations.
Unless otherwise expressly provided by the Board or the Committee, no amendment
to this Plan shall apply to potential Bonuses with respect to a Performance
Period that began before the effective date of such amendment.

 

6

 

ARTICLE 7

 

Other Provisions

 

	
  7.1

  	
   

  	
  Bonuses
  Not Assignable. No Bonus or any right thereto shall be
  assignable or transferable by a Participant except by will or by the laws of
  descent and distribution. Any other attempted assignment or alienation shall
  be void and of no force or effect.

  
	
   

  	
   

  	
   

  
	
  7.2

  	
   

  	
  Participant’s
  Rights. The right of any Participant to receive any Bonus
  granted or allocated to such Participant pursuant to the provisions of this
  Plan shall be an unsecured claim against the general assets of the Company.
  This Plan shall not create, nor be construed in any manner as having created,
  any right by a Participant to any Bonus or portion of a Bonus Pool for a
  Performance Period because of a Participant’s participation in this Plan for
  any prior Performance Period or employment during such Performance Period.
  The application of the Plan to one Participant shall not create, nor be
  construed in any manner as having created, any right by another Participant
  to similar or uniform treatment under the Plan.

  
	
   

  	
   

  	
   

  
	
  7.3

  	
   

  	
  Termination
  of Employment. The Company retains the right to terminate the
  employment of any Participant or other Employee at any time for any reason or
  no reason, and a Bonus is not, and shall not be construed in any manner to
  be, a waiver of such right.

  
	
   

  	
   

  	
   

  
	
  7.4

  	
   

  	
  Exclusion
  from Benefits. Bonuses under this Plan shall not constitute
  compensation for the purpose of determining participation or benefits under
  any other plan of the Company unless specifically included as compensation in
  such plan.

  
	
   

  	
   

  	
   

  
	
  7.5

  	
   

  	
  Successors. Any
  successor (whether direct or indirect, by purchase, merger, consolidation or
  otherwise) to all or substantially all of Morningstar, Inc.’s business
  or assets, shall assume Morningstar, Inc.’s liabilities under this Plan
  and perform any duties and responsibilities in the same manner and to the
  same extent that Morningstar, Inc. would be required to perform if no
  such succession had taken place.

  
	
   

  	
   

  	
   

  
	
  7.6

  	
   

  	
  Law
  Governing Construction. The construction and
  administration of this Plan and all questions pertaining thereto shall be
  governed by the laws of the State of Illinois, except to the extent that such
  law is preempted by Federal law.

  
	
   

  	
   

  	
   

  
	
  7.7

  	
   

  	
  Headings
  Not a Part Hereto. Any headings preceding
  the text of the several Articles, Sections, subsections, or paragraphs hereof
  are inserted solely for convenience of reference and shall not constitute a
  part of this Plan, nor shall they affect its meaning, construction or effect.

  
	
   

  	
   

  	
   

  
	
  7.8

  	
   

  	
  Severability
  of Provisions. If any provision of this Plan is determined to be
  void by any court of competent jurisdiction, this Plan shall continue to
  operate and, for the purposes of the jurisdiction of the court only, shall be
  deemed not to include the provision determined to be void.

  

 

7

 

	
  7.9

  	
   

  	
  Offsets. The Company shall have
  the right to offset from any Bonus payable hereunder any amount that the
  Participant owes to the Company or any Affiliate without the
  consent of the Participant (or his Beneficiary, in the event of the
  Participant’s death).

  
	
   

  	
   

  	
   

  
	
  7.10

  	
   

  	
  Dispute Resolution.
  Notwithstanding any employee agreement in effect between a Participant and
  the Company or any Affiliate, if a Participant or
  Beneficiary brings a claim that relates to benefits under this Plan,
  regardless of the basis of the claim (including but not limited to, actions
  under Title VII, wrongful discharge, breach of employment agreement, etc.),
  such claim shall be settled by final binding arbitration in accordance with
  the rules of the American Arbitration Association (“AAA”) and judgment
  upon the award rendered by the arbitrator may be entered in any court having
  jurisdiction thereof. Arbitration must be initiated by serving or mailing a
  written notice of the complaint to the other party describing the facts and
  claims for each claim. Written notice shall be provided within one year (365
  days) after the day the complaining party first knew or should have known of
  the events giving rise to the complaint, unless the applicable statute of
  limitation provides for a longer period of time. If the complaint is not
  properly submitted within the appropriate time frame, all rights and claims
  that the complaining
  party has or may have against the other party shall be waived and void.
  Notice will be deemed given according to the date of any postmark or the date
  of time of any personal delivery. Each party may be
  represented in the arbitration by an attorney or other representative
  selected by the party. The Company or Affiliate shall be responsible for its
  own costs, the AAA filing fee and all other fees, costs and expenses of the
  arbitrator and AAA for administering the arbitration. The claimant shall be
  responsible for his attorney’s or representative’s fees, if any. However, if
  any party prevails on a statutory claim which allows the prevailing party
  costs and/or attorneys’ fees, the arbitrator may award costs and reasonable
  attorneys’ fees as provided by such statute.

  
	
   

  	
   

  	
   

  
	
  7.11

  	
   

  	
  Section 409A. All Bonuses
  paid hereunder, including those held in a Bonus Bank contingent upon
  satisfaction of performance criteria for a subsequent Performance Period, are
  intended to be “short-term deferrals” that are exempt from Section 409A
  of the Code and the applicable regulations and guidance thereunder. The Plan
  shall be administered and interpreted consistently with such intent.

  

 

8

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