Document:

2004 Equity Incentive Plan

 Exhibit 10.58 
 THE GYMBOREE CORPORATION 
 2004 EQUITY INCENTIVE PLAN 
 SECTION 1. PURPOSE 
 The purpose of The Gymboree
Corporation 2004 Equity Incentive Plan is to attract, retain and motivate employees, officers, directors, consultants, agents, advisors and independent contractors of the Company and its Related Companies by providing them the opportunity to acquire
a proprietary interest in the Company and to align their interests and efforts to the long-term interests of the Company’s stockholders. 
 SECTION 2. DEFINITIONS 
 Certain capitalized terms used in the Plan have the meanings set forth in Appendix A. 
 SECTION 3. ADMINISTRATION 
  

	3.1	Administration of the Plan 

 The Plan shall be administered by the
Board or the Compensation Committee, which shall be composed of two or more directors, each of whom is a “non-employee director” within the meaning of Rule 16b-3(b)(3) promulgated under the Exchange Act, or any successor definition adopted
by the Securities and Exchange Commission, and an “outside director” within the meaning of Section 162(m) of the Code, or any successor provision thereto. Notwithstanding the foregoing, the Board may delegate responsibility for
administering the Plan with respect to designated classes of Eligible Persons to different committees consisting of one or more members of the Board, subject to such limitations as the Board deems appropriate, except with respect to Awards to
Participants who are subject to Section 16 of the Exchange Act or Awards granted pursuant to Section 16 of the Plan. Notwithstanding the foregoing, with respect to discretionary Awards to non-employee directors, the Board shall delegate
responsibility for administering the Plan to a committee composed of independent directors. Members of any committee shall serve for such term as the Board may determine, subject to removal by the Board at any time. To the extent consistent with
applicable law, the Board or the Compensation Committee may authorize one or more officers of the Company to grant Awards to designated classes of Eligible Persons, within limits specifically prescribed by the Board or the Compensation Committee;
provided, however, that no such officer shall have or obtain authority to grant Awards to himself or herself or to any person subject to Section 16 of the Exchange Act. All references in the Plan to the “Committee” shall be, as
applicable, to the Compensation Committee or any other committee or any officer to whom the Board or the Compensation Committee has delegated authority to administer the Plan. 

	3.2	Administration and Interpretation by Committee 

 (a) Except for the
terms and conditions explicitly set forth in the Plan and to the extent permitted by applicable law, the Committee shall have full power and exclusive authority, subject to such orders or resolutions not inconsistent with the provisions of the Plan
as may from time to time be adopted by the Board or a Committee composed of members of the Board, to (i) select the Eligible Persons to whom Awards may from time to time be granted under the Plan; (ii) determine the type or types of Award
to be granted to each Participant under the Plan; (iii) determine the number of shares of Common Stock to be covered by each Award granted under the Plan; (iv) determine the terms and conditions of any Award granted under the Plan;
(v) approve the forms of notice or agreement for use under the Plan; (vi) determine whether, to what extent and under what circumstances Awards may be settled in cash, shares of Common Stock or other property or canceled or suspended;
(vii) determine whether, to what extent and under what circumstances cash, shares of Common Stock, other property and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the Participant;
(viii) interpret and administer the Plan and any instrument evidencing an Award, notice or agreement executed or entered into under the Plan; (ix) establish such rules and regulations as it shall deem appropriate for the proper
administration of the Plan; (x) delegate ministerial duties to such of the Company’s employees as it so determines; and (xi) make any other determination and take any other action that the Committee deems necessary or desirable for
administration of the Plan. 
 (b) In no event, however, shall the Committee have the right, without stockholder approval, to (i) cancel or amend
outstanding Options or SARs for the purpose of repricing, replacing or regranting such Options or SARs with Options or SARs that have a purchase or grant price that is less than the purchase or grant price for the original Options or SARs except in
connection with adjustments provided in Section 15, or (ii) issue an Option or amend an outstanding Option to provide for the grant or issuance of a new Option on exercise of the original Option. 
 (c) The effect on the vesting of an Award of a Company-approved leave of absence or a Participant’s working less than full-time shall be determined by the
Company’s chief human resources officer or other person performing that function or, with respect to directors or executive officers, by the Compensation Committee, whose determination shall be final. 
 (d) Decisions of the Committee shall be final, conclusive and binding on all persons, including the Company, any Participant, any stockholder and any Eligible Person. A
majority of the members of the Committee may determine its actions. 
 SECTION 4. SHARES SUBJECT TO THE PLAN 
  

	4.1	Authorized Number of Shares 

 Subject to adjustment from time to
time as provided in Section 15.1, the number of shares of Common Stock available for issuance under the Plan shall be: 
  

	(a)	2,190,000 shares; plus 

  

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 (b) any authorized shares (i) not issued or subject to outstanding options under the Company’s 2002 Amended and
Restated Stock Incentive Plan and the Company’s Amended and Restated 1993 Stock Option Plan (the “Prior Plans”) on the Effective Date and (ii) any shares subject to outstanding options under the Prior Plans on the
Effective Date that cease to be subject to such options (other than by reason of exercise or settlement of the options to the extent they are exercised for or settled in shares), up to an aggregate maximum of 5,268,841 shares, subject to
adjustment from time to time as provided in Section 15.1, which shares shall cease, as of the Effective Date, to be available for grant and issuance under the Prior Plans, but shall be available for issuance under the Plan. 
 Shares issued under the Plan shall be drawn from authorized and unissued shares or shares now held or subsequently acquired by the Company as treasury shares.

  

	4.2	Share Usage 

 (a) Shares of Common Stock covered by an Award shall
not be counted as used unless and until they are actually issued and delivered to a Participant. If any Award lapses, expires, terminates or is canceled prior to the issuance of shares thereunder or if shares of Common Stock are issued under the
Plan to a Participant and thereafter are forfeited to or otherwise reacquired by the Company, the shares subject to such Awards and the forfeited or reacquired shares shall again be available for issuance under the Plan. Any shares of Common Stock
(i) tendered by a Participant or retained by the Company as full or partial payment to the Company for the purchase price of an Award or to satisfy tax withholding obligations in connection with an Award, or (ii) covered by an Award that
is settled in cash, or in a manner such that some or all of the shares of Common Stock covered by the Award are not issued, shall be available for Awards under the Plan. The number of shares of Common Stock available for issuance under the Plan
shall not be reduced to reflect any dividends or dividend equivalents that are reinvested into additional shares of Common Stock or credited as additional shares of Common Stock subject or paid with respect to an Award. 
 (b) The Committee shall also, without limitation, have the authority to grant Awards as an alternative to or as the form of payment for grants or rights earned or due
under other compensation plans or arrangements of the Company. 
 (c) Notwithstanding anything in the Plan to the contrary, the Committee may grant
Substitute Awards under the Plan. Substitute Awards shall not reduce the number of shares authorized for issuance under the Plan. In the event that an Acquired Entity has shares available for awards or grants under one or more preexisting plans not
adopted in contemplation of such acquisition or combination, then, to the extent determined by the Board or the Compensation Committee, the shares available for grant pursuant to the terms of such preexisting plan (as adjusted, to the extent
appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to holders of common stock of the entities that are parties to such acquisition or
combination) may be used for Awards under the Plan and shall 

  

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not reduce the number of shares of Common Stock authorized for issuance under the Plan; provided, however, that Awards using such available shares shall not
be made after the date awards or grants could have been made under the terms of such preexisting plans, absent the acquisition or combination, and shall only be made to individuals who were not employees or directors of the Company or a Related
Company prior to such acquisition or combination. In the event that a written agreement between the Company and an Acquired Entity pursuant to which a merger or consolidation is completed is approved by the Board and said agreement sets forth the
terms and conditions of the substitution for or assumption of outstanding awards of the Acquired Entity, said terms and conditions shall be deemed to be the action of the Committee without any further action by the Committee, except as may be
required for compliance with Rule 16b-3 under the Exchange Act, and the persons holding such awards shall be deemed to be Participants. 
 (d)
Notwithstanding the other provisions in this Section 4.2, the maximum number of shares that may be issued upon the exercise of Incentive Stock Options shall equal the aggregate share number stated in Section 4.1, subject to adjustment as
provided in Section 15.1. 
  

	4.3	Limitations 

 (a) Subject to adjustment as provided in
Section 15.1, the aggregate number of shares that may be issued pursuant to Awards granted under the Plan, other than Awards of Options or Stock Appreciation Rights, that are not (i) subject to restrictions based on the satisfaction of
specified performance goals or (ii) granted in lieu of the payment of performance-based cash incentive awards shall not exceed 50% of the aggregate maximum number of shares specified in Section 4.1. 
 (b) Subject to adjustment as provided in Section 15.1, the aggregate number of shares that may be issued pursuant to Awards granted under the Plan, other than
Awards of Options or Stock Appreciation Rights, that contain no restrictions or restrictions based solely on continuous employment or services for less than three years (except where Termination of Service occurs by reason of death or Disability)
shall not exceed 50% of the aggregate maximum number of shares specified in Section 4.1. 
 (c) Each grant of Stock Awards, Restricted Stock and
Restricted Stock Units granted pursuant to Sections 10, 11 or 12 of the Plan shall be subject to a minimum repurchase or forfeiture restriction such that the Award shall remain subject to repurchase or forfeiture for at least (i) one year
after the Grant Date if the applicable restrictions are based on the achievement of performance goals and (ii) three years after the Grant Date if the applicable restrictions are based on continuous service with the Company or a Related
Company; and the Committee may waive the applicable restrictions during the applicable restriction period only in connection with (x) a Company Transaction that is not a Related Party Transaction, (y) a Change in Control or (z) the
Participant’s Termination of Service without Cause or by reason of the Participant’s death, Disability or retirement. 
  

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 SECTION 5. ELIGIBILITY 
 An Award may be granted to any employee, officer or director of the Company or a Related Company whom the Committee from time to time selects. An Award may also be granted to any consultant, agent, advisor or
independent contractor for bona fide services rendered to the Company or any Related Company that (a) are not in connection with the offer and sale of the Company’s securities in a capital-raising transaction and (b) do not directly
or indirectly promote or maintain a market for the Company’s securities. 
 SECTION 6. AWARDS 
  

	6.1	Form, Grant and Settlement of Awards 

 The Committee shall have the
authority, in its sole discretion, to determine the type or types of Awards to be granted under the Plan. Such Awards may be granted either alone or in addition to or in tandem with any other type of Award. Any Award settlement may be subject to
such conditions, restrictions and contingencies as the Committee shall determine. 
  

	6.2	Evidence of Awards 

 Awards granted under the Plan shall be
evidenced by a written, including an electronic, notice or agreement that shall contain such terms, conditions, limitations and restrictions as the Committee shall deem advisable and that are not inconsistent with the Plan. 
  

	6.3	Deferrals 

 The Committee may permit or require a Participant to
defer receipt of the payment of any Award. If any such deferral election is permitted or required, the Committee, in its sole discretion, shall establish rules and procedures for such payment deferrals, which may include the grant of additional
Awards or provisions for the payment or crediting of interest or dividend equivalents, including converting such credits to deferred stock unit equivalents. 
  

	6.4	Dividends and Distributions 

 Participants may, if the Committee so
determines, be credited with dividends paid with respect to shares of Common Stock underlying an Award in a manner determined by the Committee in its sole discretion. The Committee may apply any restrictions to the dividends or dividend equivalents
that the Committee deems appropriate. The Committee, in its sole discretion, may determine the form of payment of dividends or dividend equivalents, including cash, shares of Common Stock, Restricted Stock or Stock Units. 
 SECTION 7. OPTIONS 
  

	7.1	Grant of Options 

 The Committee may grant Options designated as
Incentive Stock Options or Nonqualified Stock Options. 
  

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	7.2	Option Exercise Price 

 The exercise price for shares purchased
under an Option shall be as determined by the Committee, but shall not be less than 100% of the Fair Market Value on the Grant Date, except in the case of Substitute Awards. Notwithstanding the foregoing, the Committee, in its sole discretion, may
establish an exercise price that is equal to the average of 100% of the Fair Market Value over a period of trading days not to exceed 30 days from the Grant Date. 
  

	7.3	Term of Options 

 Subject to earlier termination in accordance with
the terms of the Plan and the instrument evidencing the Option, the maximum term of a Nonqualified Stock Option shall be as established for that Option by the Committee or, if not so established, shall be ten years from the Grant Date. 

 

	7.4	Exercise of Options 

 The Committee shall establish and set forth in
each instrument that evidences an Option the time at which, or the installments in which, the Option shall vest and become exercisable, any of which provisions may be waived or modified by the Committee at any time. If not so established in
the instrument evidencing the Option, the Option shall vest and become exercisable according to the following schedule, which may be waived or modified by the Committee at any time: 
  

			
	Period of Participant’s Continuous Employment or Service With the Company or Its Related Companies From the Vesting Commencement Date	  	Portion of Total Option That Is Vested and Exercisable
		
	After 1 year	  	1/4th
		
	Each additional one-month period of continuous service completed thereafter	  	An additional 1/48th
		
	After 4 years	  	100%

 To the extent an Option has vested and become exercisable, the Option may be exercised in whole or from time to
time in part by delivery to or as directed or approved by the Company of a properly executed stock option exercise agreement or notice, in a form and in accordance with procedures established by the Committee, setting forth the number of shares with
respect to which the Option is being exercised, the restrictions imposed on the shares purchased under such exercise agreement, if any, and such representations and agreements as may be required by the Committee, accompanied by payment in full as
described in Sections 7.5 and 13. An Option may be exercised only for whole shares and may not be exercised for less than a reasonable number of shares at any one time, as determined by the Committee. 
  

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	7.5	Payment of Exercise Price 

 The exercise price for shares purchased
under an Option shall be paid in full to the Company by delivery of consideration equal to the product of the Option exercise price and the number of shares purchased. Such consideration must be paid before the Company will issue the shares being
purchased and must be in a form or a combination of forms acceptable to the Committee for that purchase, which forms may include: 
  

	(a)	cash, check or wire transfer; 

 (b) tendering (either actually or, so long
as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, by attestation) shares of Common Stock that on the day prior to the exercise date have an aggregate Fair Market Value equal to the aggregate exercise price of
the shares being purchased under the Option owned by the Participant for at least six months (or any shorter period necessary to avoid a charge to the Company’s earnings for financial reporting purposes); 
 (c) so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, and to the extent permitted by law, delivery of a properly executed
exercise notice, together with irrevocable instructions to a brokerage firm designated or approved by the Company to deliver promptly to the Company the aggregate amount of proceeds to pay the Option exercise price and any withholding tax
obligations that may arise in connection with the exercise, all in accordance with the regulations of the Federal Reserve Board; or 
  

	(d)	such other consideration as the Committee may permit. 

  

	7.6	Effect of Termination of Service 

 The Committee shall establish and
set forth in each instrument that evidences an Option whether the Option shall continue to be exercisable, and the terms and conditions of such exercise, after a Termination of Service, any of which provisions may be waived or modified by the
Committee at any time. If not so established in the instrument evidencing the Option, the Option shall be exercisable according to the following terms and conditions, which may be waived or modified by the Committee at any time: 
 (a) Any portion of an Option that is not vested and exercisable on the date of a Participant’s Termination of Service shall expire on such date. 
 (b) Any portion of an Option that is vested and exercisable on the date of a Participant’s Termination of Service shall expire on the earliest to occur of:

 (i) if the Participant’s Termination of Service occurs for reasons other than Cause, Disability or death, the date that is three months after such
Termination of Service; 
 (ii) if the Participant’s Termination of Service occurs by reason of Disability or death, the one-year anniversary of such
Termination of Service; and 
  

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 (iii) the last day of the maximum term of the Option (the “Option Expiration Date”). 
 Notwithstanding the foregoing, if a Participant dies after his or her Termination of Service but while an Option is otherwise exercisable, the portion of the Option that
is vested and exercisable on the date of such Termination of Service shall expire upon the earlier to occur of (y) the Option Expiration Date and (z) the one-year anniversary of the date of death, unless the Committee determines otherwise.

 Also notwithstanding the foregoing, in case a Participant’s Termination of Service occurs for Cause, all Options granted to the Participant shall
automatically expire upon first notification to the Participant of such termination, unless the Committee determines otherwise. If a Participant’s employment or service relationship with the Company is suspended pending an investigation of
whether the Participant shall be terminated for Cause, all the Participant’s rights under any Option shall likewise be suspended during the period of investigation. If any facts that would constitute termination for Cause are discovered after a
Participant’s Termination of Service, any Option then held by the Participant may be immediately terminated by the Committee, in its sole discretion. 
 (c) A Participant’s change in status from an employee to a consultant, advisor or independent contractor, or a change in status from a consultant, advisor or independent contractor to an employee, shall not be considered a Termination
of Service for purposes of this Section 7.6. 
 SECTION 8. INCENTIVE STOCK OPTION LIMITATIONS 
 Notwithstanding any other provisions of the Plan, the terms and conditions of any Incentive Stock Options shall in addition comply in all respects with Section 422
of the Code, or any successor provision, and any applicable regulations thereunder, including, to the extent required thereunder, the following: 
  

	8.1	Dollar Limitation 

 To the extent the aggregate Fair Market Value
(determined as of the Grant Date) of Common Stock with respect to which a Participant’s Incentive Stock Options become exercisable for the first time during any calendar year (under the Plan and all other stock option plans of the Company and
its parent and subsidiary corporations) exceeds $100,000, such portion in excess of $100,000 shall be treated as a Nonqualified Stock Option. In the event the Participant holds two or more such Options that become exercisable for the first time in
the same calendar year, such limitation shall be applied on the basis of the order in which such Options are granted. 
  

	8.2	Eligible Employees 

 Individuals who are not employees of the
Company or one of its parent or subsidiary corporations may not be granted Incentive Stock Options. 
  

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	8.3	Exercise Price 

 The exercise price of an Incentive Stock Option
shall be at least 100% of the Fair Market Value of the Common Stock on the Grant Date, and in the case of an Incentive Stock Option granted to a Participant who owns more than 10% of the total combined voting power of all classes of the stock of the
Company or of its parent or subsidiary corporations (a “Ten Percent Stockholder”), shall not be less than 110% of the Fair Market Value of the Common Stock on the Grant Date. The determination of more than 10% ownership shall be
made in accordance with Section 422 of the Code. 
  

	8.4	Option Term 

 Subject to earlier termination in accordance with the
terms of the Plan and the instrument evidencing the Option, the maximum term of an Incentive Stock Option shall not exceed ten years, and in the case of an Incentive Stock Option granted to a Ten Percent Stockholder, shall not exceed five years.

  

	8.5	Exercisability 

 An Option designated as an Incentive Stock Option
shall cease to qualify for favorable tax treatment as an Incentive Stock Option to the extent it is exercised (if permitted by the terms of the Option) (a) more than three months after the date of a Participant’s Termination of Service if
termination was for reasons other than death or disability, (b) more than one year after the date of a Participant’s Termination of Service if termination was by reason of disability, or (c) after the Participant has been on leave of
absence for more than 90 days, unless the Participant’s reemployment rights are guaranteed by statute or contract. 
  

	8.6	Taxation of Incentive Stock Options 

 In order to obtain certain tax
benefits afforded to Incentive Stock Options under Section 422 of the Code, the Participant must hold the shares acquired upon the exercise of an Incentive Stock Option for two years after the Grant Date and one year after the date of exercise.

 A Participant may be subject to the alternative minimum tax at the time of exercise of an Incentive Stock Option. The Participant shall give the Company
prompt notice of any disposition of shares acquired on the exercise of an Incentive Stock Option prior to the expiration of such holding periods. 
  

	8.7	Code Definitions 

 For the purposes of this Section 8
“disability,” “parent corporation” and “subsidiary corporation” shall have the meanings attributed to those terms for purposes of Section 422 of the Code. 
  

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 SECTION 9. STOCK APPRECIATION RIGHTS 
  

	9.1	Grant of Stock Appreciation Rights 

 The Committee may grant Stock
Appreciation Rights to Participants at any time on such terms and conditions as the Committee shall determine in its sole discretion. An SAR may be granted in tandem with an Option or alone (“freestanding”). The grant price of a tandem SAR
shall be equal to the exercise price of the related Option. The grant price of a freestanding SAR shall be established in accordance with procedures for Options set forth in Section 7.2. An SAR may be exercised upon such terms and conditions
and for the term as the Committee determines in its sole discretion; provided, however, that, subject to earlier termination in accordance with the terms of the Plan and the instrument evidencing the SAR, the term of a freestanding SAR shall be as
established for that SAR by the Committee or, if not so established, shall be ten years, and in the case of a tandem SAR, (a) the term shall not exceed the term of the related Option and (b) the tandem SAR may be exercised for all or part
of the shares subject to the related Option upon the surrender of the right to exercise the equivalent portion of the related Option, except that the tandem SAR may be exercised only with respect to the shares for which its related Option is then
exercisable. 
  

	9.2	Payment of SAR Amount 

 Upon the exercise of an SAR, a Participant
shall be entitled to receive payment in an amount determined by multiplying: (a) the difference between the Fair Market Value of the Common Stock for the date of exercise over the grant price of the SAR by (b) the number of shares with
respect to which the SAR is exercised. At the discretion of the Committee as set forth in the instrument evidencing the Award, the payment upon exercise of an SAR may be in cash, in shares, in some combination thereof or in any other manner approved
by the Committee in its sole discretion. 
 SECTION 10. STOCK AWARDS, RESTRICTED STOCK AND STOCK UNITS 
  

	10.1	Grant of Stock Awards, Restricted Stock and Stock Units 

 The
Committee may grant Stock Awards, Restricted Stock and Stock Units on such terms and conditions and subject to such repurchase or forfeiture restrictions, if any, which may be based on continuous service with the Company or a Related Company or the
achievement of any performance goals, as the Committee shall determine in its sole discretion, which terms, conditions and restrictions shall be set forth in the instrument evidencing the Award. 
  

	10.2	Vesting of Restricted Stock and Stock Units 

 Upon the satisfaction
of any terms, conditions and restrictions prescribed with respect to Restricted Stock or Stock Units, or upon a Participant’s release from any terms, conditions and restrictions of Restricted Stock or Stock Units, as determined by the
Committee, and subject to the provisions of Section 13, (a) the shares of Restricted Stock covered by each 

  

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Award of Restricted Stock shall become freely transferable by the Participant, and (b) Stock Units shall be paid in shares of Common Stock or, if set
forth in the instrument evidencing the Awards, in cash or a combination of cash and shares of Common Stock. Any fractional shares subject to such Awards shall be paid to the Participant in cash. 
  

	10.3	Waiver of Restrictions 

 Notwithstanding any other provisions of
the Plan, the Committee, in its sole discretion, may waive the repurchase or forfeiture period and any other terms, conditions or restrictions on any Restricted Stock or Stock Unit under such circumstances and subject to such terms and conditions as
the Committee shall deem appropriate. 
 SECTION 11. PERFORMANCE AWARDS 
  

	11.1	Performance Shares 

 The Committee may grant Awards of Performance
Shares, designate the Participants to whom Performance Shares are to be awarded and determine the number of Performance Shares and the terms and conditions of each such Award. Performance Shares shall consist of a unit valued by reference to a
designated number of shares of Common Stock, the value of which may be paid to the Participant by delivery of shares of Common Stock or, if set forth in the instrument evidencing the Award, of such property as the Committee shall determine,
including, without limitation, cash, shares of Common Stock, other property, or any combination thereof, upon the attainment of performance goals, as established by the Committee, and other terms and conditions specified by the Committee.
Notwithstanding the foregoing, the amount to be paid under an Award of Performance Shares may be adjusted on the basis of such further consideration as the Committee shall determine in its sole discretion. 
  

	11.2	Performance Units 

 The Committee may grant Awards of Performance
Units, designate the Participants to whom Performance Units are to be awarded and determine the number of Performance Units and the terms and conditions of each such Award. Performance Units shall consist of a unit valued by reference to a
designated amount of property other than shares of Common Stock, which value may be paid to the Participant by delivery of such property as the Committee shall determine, including, without limitation, cash, shares of Common Stock, other property,
or any combination thereof, upon the attainment of performance goals, as established by the Committee, and other terms and conditions specified by the Committee. Notwithstanding the foregoing, the amount to be paid under an Award of Performance
Units may be adjusted on the basis of such further consideration as the Committee shall determine in its sole discretion. 
 SECTION 12.
OTHER STOCK OR CASH-BASED AWARDS 
 Subject to the terms of the Plan and such other terms and conditions as the Committee deems appropriate, the
Committee may grant other incentives payable in cash or in shares of Common Stock under the Plan. 
  

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 SECTION 13. WITHHOLDING 
 The Company may require the Participant to pay to the Company the amount of (a) any taxes that the Company is required by applicable federal, state, local or foreign law to withhold with respect to the grant,
vesting or exercise of an Award (“tax withholding obligations”) and (b) any amounts due from the Participant to the Company or to any Related Company (“other obligations”). The Company shall not be required to issue any
shares of Common Stock or otherwise settle an Award under the Plan until such tax withholding obligations and other obligations are satisfied. 
 The
Committee may permit or require a Participant to satisfy all or part of the Participant’s tax withholding obligations and other obligations by (a) paying cash to the Company, (b) having the Company withhold an amount from any cash
amounts otherwise due or to become due from the Company to the Participant, (c) having the Company withhold a number of shares of Common Stock that would otherwise be issued to the Participant (or become vested, in the case of Restricted Stock)
having a Fair Market Value equal to the tax withholding obligations and other obligations, or (d) surrendering a number of shares of Common Stock the Participant already owns having a value equal to the tax withholding obligations and other
obligations. The value of the shares so withheld may not exceed the employer’s minimum required tax withholding rate, and the value of the shares so tendered may not exceed such rate to the extent the Participant has owned the tendered shares
for less than six months if such limitations are necessary to avoid a charge to the Company for financial reporting purposes. 
 SECTION
14. ASSIGNABILITY 
 No Award or interest in an Award may be sold, assigned, pledged (as collateral for a loan or as security for the performance of an
obligation or for any other purpose) or transferred by a Participant or made subject to attachment or similar proceedings otherwise than by will or by the applicable laws of descent and distribution, except to the extent the Participant designates
one or more beneficiaries on a Company-approved form who may exercise the Award or receive payment under the Award after the Participant’s death. During a Participant’s lifetime, an Award may be exercised only by the Participant.
Notwithstanding the foregoing and to the extent permitted by Section 422 of the Code, the Committee, in its sole discretion, may permit a Participant to assign or transfer an Award subject to such terms and conditions as the Committee shall
specify. 
 SECTION 15. ADJUSTMENTS 
  

	15.1	Adjustment of Shares 

 In the event, at any time or from time to
time, a stock dividend, stock split, spin-off, combination or exchange of shares, recapitalization, merger, consolidation, distribution to stockholders other than a normal cash dividend, or other change in the Company’s corporate or capital
structure results in (a) the outstanding shares of Common Stock, or any securities exchanged therefor or received in their place, being exchanged for a different number or kind 

  

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of securities of the Company or (b) new, different or additional securities of the Company or any other company being received by the holders of shares
of Common Stock, then the Committee shall make proportional adjustments in (i) the maximum number and kind of securities available for issuance under the Plan; (ii) the maximum number and kind of securities issuable as Incentive Stock
Options as set forth in Section 4.2; and (iii) the number and kind of securities that are subject to any outstanding Award and the per share price of such securities, without any change in the aggregate price to be paid therefor. The
determination by the Committee as to the terms of any of the foregoing adjustments shall be conclusive and binding. 
 Notwithstanding the foregoing, the
issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, for cash or property, or for labor or services rendered, either upon direct sale or upon the exercise of rights or warrants to
subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such shares or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, outstanding Awards. Also
notwithstanding the foregoing, a dissolution or liquidation of the Company or a Company Transaction shall not be governed by this Section 15.1 but shall be governed by Sections 15.2 and 15.3, respectively. 
  

	15.2	Dissolution or Liquidation 

 To the extent not previously exercised
or settled, and unless otherwise determined by the Committee in its sole discretion, Awards shall terminate immediately prior to the dissolution or liquidation of the Company. To the extent a vesting condition, forfeiture provision or repurchase
right applicable to an Award has not been waived by the Committee, the Award shall be forfeited immediately prior to the consummation of the dissolution or liquidation. 
  

	15.3	Company Transaction; Change in Control 

  

	15.3.1	Effect of a Company Transaction That Is Not a Change in Control or a Related Party Transaction 

 Notwithstanding any other provision of the Plan to the contrary, unless the Committee shall determine otherwise at the time of grant with respect to a particular Award, in the event of a Company Transaction that is
not (a) a Change in Control or (b) a Related Party Transaction: 
 (i) All outstanding Awards, other than Performance Shares and Performance Units,
shall become fully and immediately exercisable, and all applicable deferral and restriction limitations or forfeiture provisions shall lapse, immediately prior to the Company Transaction and shall terminate effective at the effective time of the
Company Transaction, unless such Awards are converted, assumed or replaced by the Successor Company. Notwithstanding the foregoing, with respect to Options or Stock Appreciation Rights, the Committee, in its sole discretion, may instead provide that
a Participant’s outstanding Options shall terminate upon consummation of such Company Transaction and that each such Participant shall receive, in exchange therefor, a cash payment equal to the amount (if any) by which (x) the Acquisition
Price multiplied by the number of shares of Common Stock subject to such outstanding Options or SARs (whether or not then exercisable) exceeds (y) the respective aggregate exercise price for such Options or grant price for such SARs.

  

 -13- 

 For the purposes of this Section 15.3.1, an Award shall be considered assumed or substituted for if following the
Company Transaction the option or right confers the right to purchase or receive, for each share of Common Stock subject to the Award immediately prior to the Company Transaction, the consideration (whether stock, cash or other securities or
property) received in the Company Transaction by holders of Common Stock for each share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding shares); provided, however, that if such consideration received in the Company Transaction is not solely common stock of the Successor Company, the Committee may, with the consent of the Successor Company, provide for the
consideration to be received upon the exercise of the Option, for each share of Common Stock subject thereto, to be solely common stock of the Successor Company substantially equal in fair market value to the per share consideration received by
holders of Common Stock in the Company Transaction. The determination of such substantial equality of value of consideration shall be made by the Committee, and its determination shall be conclusive and binding. 
 (ii) All Performance Shares or Performance Units earned and outstanding as of the date the Company Transaction is determined to have occurred shall be payable in full at
the target level in accordance with the payout schedule pursuant to the Award agreement. Any remaining Performance Shares or Performance Units (including any applicable performance period) for which the payout level has not been determined shall be
prorated at the target payout level up to and including the date of such Company Transaction and shall be payable in full at the target level in accordance with the payout schedule pursuant to the Award agreement. Any existing deferrals or other
restrictions not waived by the Committee in its sole discretion shall remain in effect. 
  

	15.3.2	Effect of a Change in Control 

 Notwithstanding any other provision
of the Plan to the contrary, unless the Committee shall determine otherwise at the time of grant with respect to a particular Award, in the event of a Change in Control: 
 (a) any Options and Stock Appreciation Rights outstanding as of the date such Change in Control is determined to have occurred, and which are not then exercisable and vested, shall become fully exercisable and vested
to the full extent of the original grant; 
 (b) any restrictions and deferral limitations applicable to any Restricted Stock or Stock Units shall lapse, and
such Restricted Stock or Stock Units shall become free of all restrictions and limitations and become fully vested and transferable to the full extent of the original grant; 
  

 -14- 

 (c) all Performance Shares and Performance Units shall be considered to be earned at the target level and payable in
full, any deferral or other restriction shall lapse and such Performance Shares and Performance Units shall be immediately settled or distributed; and 
 (d)
any restrictions and deferral limitations and other conditions applicable to any other Awards shall lapse, and such other Awards shall become free of all restrictions, limitations or conditions and become fully vested and transferable to the full
extent of the original grant. 
  

	15.3.3	Change in Control Cash-Out 

 Notwithstanding any other provision of
the Plan, during the 60-day period from and after a Change in Control (the “Change in Control Exercise Period”), if the Committee shall so determine at, or at any time after, the time of grant, a Participant holding an Option, SAR,
Restricted Stock Unit or Performance Share, shall have the right, whether or not the Award is fully vested and/or exercisable and without regard to any deferral or other restriction and in lieu of the payment of the purchase price for the shares of
Common Stock being purchased under an Option, to elect by giving notice to the Company within the Change in Control Exercise Period to surrender all or part of the Award to the Company and to receive cash, within 30 days of such notice: 

(a) for an Option or SAR, in an amount equal to the amount by which the Acquisition Price per share of Common Stock on the date of such election shall exceed the
exercise price per share of Common Stock under the Option, or the grant price per share of Common Stock under the SAR; and 
 (b) for a Restricted Stock Unit
or Performance Share, in an amount equal to the Acquisition Price per share of Common Stock under the Restricted Stock or Performance Share, 
 multiplied by
the number of shares of Common Stock granted under the Award as to which the right granted under this Section 15.3.3 shall have been exercised. 
  

	15.4	Further Adjustment of Awards 

 Subject to Sections 15.2 and
15.3, the Committee shall have the discretion, exercisable at any time before a sale, merger, consolidation, reorganization, liquidation, dissolution or change in control of the Company, as defined by the Committee, to take such further action as it
determines to be necessary or advisable with respect to Awards. Such authorized action may include (but shall not be limited to) establishing, amending or waiving the type, terms, conditions or duration of, or restrictions on, Awards so as to
provide for earlier, later, extended or additional time for exercise, lifting restrictions and modifications, and the Committee may take such actions with respect to all Participants, to certain categories of Participants or only to individual
Participants. The Committee may take such action before or after granting Awards to which the action relates and before or after any public announcement with respect to such sale, merger, consolidation, reorganization, liquidation, dissolution or
change in control that is the reason for such action. 
  

 -15- 

	15.5	No Limitations 

 The grant of Awards shall in no way affect the
Company’s right to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
  

	15.6	Fractional Shares 

 In the event of any adjustment in the number of
shares covered by any Award, each such Award shall cover only the number of full shares resulting from such adjustment. 
 SECTION 16. CODE
SECTION 162(m) PROVISIONS 
 Notwithstanding any other provision of the Plan, if the Committee determines, at the time Awards are granted to a
Participant who is, or is likely to be as of the end of the tax year in which the Company would claim a tax deduction in connection with such Award, a Covered Employee, then the Committee may provide that this Section 16 is applicable to such
Award. 
  

	16.1	Performance Criteria 

 If an Award is subject to this
Section 16, then the lapsing of restrictions thereon and the distribution of cash, shares of Common Stock or other property pursuant thereto, as applicable, shall be subject to the achievement of one or more objective performance goals
established by the Committee, which shall be based on the attainment of specified levels of one of or any combination of the following “performance criteria” for the Company as a whole or any business unit of the Company, as reported or
calculated by the Company: cash flows (including, but not limited to, operating cash flow, free cash flow or cash flow return on capital); working capital; earnings per share; book value per share; operating income (including or excluding
depreciation, amortization, extraordinary items, restructuring charges or other expenses); revenues; operating margins; return on assets; inventory turns; return on equity; debt; debt plus equity; market or economic value added; stock price
appreciation; total stockholder return; cost control; strategic initiatives; store openings; growth and development of new concepts; market share; net income (including or excluding extraordinary items, restructuring charges or other expenses);
return on invested capital; improvements in capital structure; or customer satisfaction, employee satisfaction, services performance, cash management or asset management metrics (together, the “Performance Criteria”). Such
performance goals also may be based on the achievement of specified levels of Company performance (or performance of an applicable affiliate, division or business unit of the Company) under one or more of the Performance Criteria described above
relative to the performance of other corporations. Such performance goals shall be set by the Committee within the time period prescribed by, and shall otherwise comply with the requirements of, Section 162(m) of the Code, or any successor
provision thereto, and the regulations thereunder. 
  

 -16- 

	16.2	Adjustment of Awards 

 Notwithstanding any provision of the Plan
other than Section 15, with respect to any Award that is subject to this Section 16, the Committee may adjust downwards, but not upwards, the amount payable pursuant to such Award, and the Committee may not waive the achievement of the
applicable performance goals except in the case of the death or disability of the Covered Employee. 
  

	16.3	Limitations 

 Subject to adjustment from time to time as provided in
Section 15.1, no Covered Employee may be granted Awards other than Performance Units subject to this Section 16 in any calendar year period with respect to more than 400,000 shares of Common Stock for such Award, except that the
Company may make additional one time grants of such Awards for up to 400,000 shares to newly hired individuals, and the maximum dollar value payable with respect to Performance Units subject to this Section 16 granted to any Covered
Employee in any one calendar year is $10,000,000. 
 The Committee shall have the power to impose such other restrictions on Awards subject to this
Section 16 as it may deem necessary or appropriate to ensure that such Awards satisfy all requirements for “performance-based compensation” within the meaning of Section 162(m)(4)(C) of the Code, or any successor provision
thereto. 
 SECTION 17. AMENDMENT AND TERMINATION 
  

	17.1	Amendment, Suspension or Termination 

 The Board or the Compensation
Committee may amend, suspend or terminate the Plan or any portion of the Plan at any time and in such respects as it shall deem advisable; provided, however, that, to the extent required by applicable law, regulation or stock exchange rule,
stockholder approval shall be required for any amendment to the Plan; and provided, further, that any amendment that requires stockholder approval may be made only by the Board. Subject to Section 17.3, the Committee may amend the terms of any
outstanding Award, prospectively or retroactively. 
  

	17.2	Term of the Plan 

 Unless sooner terminated as provided herein, the
Plan shall terminate ten years from the Effective Date. After the Plan is terminated, no future Awards may be granted, but Awards previously granted shall remain outstanding in accordance with their applicable terms and conditions and the
Plan’s terms and conditions. Notwithstanding the foregoing, no Incentive Stock Options may be granted more than ten years after the later of (a) the Effective Date and (b) the approval by the stockholders of any amendment to the Plan
that constitutes the adoption of a new plan for purposes of Section 422 of the Code. 
  

 -17- 

	17.3	Consent of Participant 

 The amendment, suspension or termination of
the Plan or a portion thereof or the amendment of an outstanding Award shall not, without the Participant’s consent, materially adversely affect any rights under any Award theretofore granted to the Participant under the Plan. Any change or
adjustment to an outstanding Incentive Stock Option shall not, without the consent of the Participant, be made in a manner so as to constitute a “modification” that would cause such Incentive Stock Option to fail to continue to qualify as
an Incentive Stock Option. Notwithstanding the foregoing, any adjustments made pursuant to Section 15 shall not be subject to these restrictions. 
 SECTION 18. GENERAL 
  

	18.1	No Individual Rights 

 No individual or Participant shall have any
claim to be granted any Award under the Plan, and the Company has no obligation for uniformity of treatment of Participants under the Plan. 
 Furthermore,
nothing in the Plan or any Award granted under the Plan shall be deemed to constitute an employment contract or confer or be deemed to confer on any Participant any right to continue in the employ of, or to continue any other relationship with, the
Company or any Related Company or limit in any way the right of the Company or any Related Company to terminate a Participant’s employment or other relationship at any time, with or without cause. 
  

	18.2	Issuance of Shares 

 Notwithstanding any other provision of the
Plan, the Company shall have no obligation to issue or deliver any shares of Common Stock under the Plan or make any other distribution of benefits under the Plan unless, in the opinion of the Company’s counsel, such issuance, delivery or
distribution would comply with all applicable laws (including, without limitation, the requirements of the Securities Act or the laws of any state or foreign jurisdiction) and the applicable requirements of any securities exchange or similar entity.

 The Company shall be under no obligation to any Participant to register for offering or resale or to qualify for exemption under the Securities Act, or to
register or qualify under the laws of any state or foreign jurisdiction, any shares of Common Stock, security or interest in a security paid or issued under, or created by, the Plan, or to continue in effect any such registrations or qualifications
if made. 
 As a condition to the exercise of an Option or any other receipt of Common Stock pursuant to an Award under the Plan, the Company may require
(a) the Participant to represent and warrant at the time of any such exercise or receipt that such shares are being purchased or received only for the Participant’s own account and without any present intention to sell or distribute such
shares and (b) such other action or agreement by the Participant as may from 

  

 -18- 

 
time to time be necessary to comply with the federal, state and foreign securities laws. At the option of the Company, a stop-transfer order against any such
shares may be placed on the official stock books and records of the Company, and a legend indicating that such shares may not be pledged, sold or otherwise transferred, unless an opinion of counsel is provided (concurred in by counsel for the
Company) stating that such transfer is not in violation of any applicable law or regulation, may be stamped on stock certificates to ensure exemption from registration. The Committee may also require the Participant to execute and deliver to the
Company a purchase agreement or such other agreement as may be in use by the Company at such time that describes certain terms and conditions applicable to the shares. 
 To the extent the Plan or any instrument evidencing an Award provides for issuance of stock certificates to reflect the issuance of shares of Common Stock, the issuance may be effected on a noncertificated basis, to
the extent not prohibited by applicable law or the applicable rules of any stock exchange. 
  

	18.3	Indemnification 

 Each person who is or shall have been a member of
the Board, or a committee appointed by the Board, or an officer of the Company to whom authority was delegated in accordance with Section 3, shall be indemnified and held harmless by the Company against and from any loss, cost, liability or
expense that may be imposed upon or reasonably incurred by such person in connection with or resulting from any claim, action, suit or proceeding to which such person may be a party or in which such person may be involved by reason of any action
taken or failure to act under the Plan and against and from any and all amounts paid by such person in settlement thereof, with the Company’s approval, or paid by such person in satisfaction of any judgment in any such claim, action, suit or
proceeding against such person; provided, however, that such person shall give the Company an opportunity, at its own expense, to handle and defend the same before such person undertakes to handle and defend it on such person’s own behalf,
unless such loss, cost, liability or expense is a result of such person’s own willful misconduct or except as expressly provided by statute. 
 The
foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such person may be entitled under the Company’s certificate of incorporation or bylaws, as a matter of law, or otherwise, or of any power
that the Company may have to indemnify or hold harmless. 
  

	18.4	No Rights as a Stockholder 

 Unless otherwise provided by the
Committee or in the instrument evidencing the Award or in a written employment, services or other agreement, no Award, other than a Stock Award, shall entitle the Participant to any cash dividend, voting or other right of a stockholder unless and
until the date of issuance under the Plan of the shares that are the subject of such Award. 
  

 -19- 

	18.5	Compliance With Laws and Regulations 

 In interpreting and applying
the provisions of the Plan, any Option granted as an Incentive Stock Option pursuant to the Plan shall, to the extent permitted by law, be construed as an “incentive stock option” within the meaning of Section 422 of the Code.

  

	18.6	Participants in Other Countries or Jurisdictions 

 Without amending
the Plan, the Committee may grant Awards to Eligible Persons who are foreign nationals on such terms and conditions different from those specified in this Plan as may, in the judgement of the Committee, be necessary or desirable to foster and
promote achievement of the purposes of the Plan and shall have the authority to adopt such modifications, procedures, subplans and the like as may be necessary or desirable to comply with provisions of the laws or regulations of other countries or
jurisdictions in which the Company or any Related Company may operate or have employees to ensure the viability of the benefits from Awards granted to Participants employed in such countries or jurisdictions, meet the requirements that permit the
Plan to operate in a qualified or tax-efficient manner, comply with applicable foreign laws or regulations and meet the objectives of the Plan. 
  

	18.7	No Trust or Fund 

 The Plan is intended to constitute an
“unfunded” plan. Nothing contained herein shall require the Company to segregate any monies or other property, or shares of Common Stock, or to create any trusts, or to make any special deposits for any immediate or deferred amounts
payable to any Participant, and no Participant shall have any rights that are greater than those of a general unsecured creditor of the Company. 
  

	18.8	Successors 

 All obligations of the Company under the Plan with
respect to Awards shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all the business and/or assets
of the Company. 
  

	18.9	Severability 

 If any provision of the Plan or any Award is
determined to be invalid, illegal or unenforceable in any jurisdiction, or as to any person, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform
to applicable laws, or, if it cannot be so construed or deemed amended without, in the Committee’s determination, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or
Award, and the remainder of the Plan and any such Award shall remain in full force and effect. 
  

 -20- 

	18.10	Choice of Law 

 The Plan, all Awards granted thereunder and all
determinations made and actions taken pursuant hereto, to the extent not otherwise governed by the laws of the United States, shall be governed by the laws of the State of California without giving effect to principles of conflicts of law.

  

	18.11	Legal Requirements 

 The granting of Awards and the issuance of
shares of Common Stock under the Plan are subject to all applicable laws, rules and regulations and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 SECTION 19. EFFECTIVE DATE 
 The effective date (the
“Effective Date”) is the date on which the Plan is approved by the stockholders of the Company. If the stockholders of the Company do not approve the Plan within 12 months after the Board’s adoption of the Plan, any
Incentive Stock Options granted under the Plan will be treated as Nonqualified Stock Options. 
  

 -21- 

 APPENDIX A 
 DEFINITIONS 
 As used in the Plan, 
 “Acquired Entity” means any entity acquired by the Company or a Related Company or with which the Company or a Related Company merges or combines. 
 “Acquisition Price” means the higher of (a) the highest reported sales price, regular way, of a share of Common Stock in any transaction reported
on the New York Stock Exchange or other national exchange on which the Common Stock is listed or on the Nasdaq National Market during the 60-day period prior to and including the date of a Company Transaction or Change in Control or (b) if the
Company Transaction or Change in Control is the result of a tender or exchange offer or a negotiated acquisition of the Company’s Common Stock, the highest price per share of Common Stock paid in such tender or exchange offer or acquisition. To
the extent that the consideration paid in any such transaction described above consists all or in part of securities or other noncash consideration, the value of such other securities or other noncash consideration shall be determined by the Board
in its sole discretion. 
 “Award” means any Option, Stock Appreciation Right, Stock Award, Restricted Stock, Stock Unit, Performance Share,
Performance Unit, cash-based award or other incentive payable in cash or in shares of Common Stock as may be designated by the Committee from time to time. 
 “Board” means the Board of Directors of the Company. 
 “Cause,” unless otherwise defined in the instrument
evidencing an Award or in a written employment, services or other agreement between the Participant and the Company or a Related Company, means dishonesty, fraud, serious or willful misconduct, unauthorized use or disclosure of confidential
information or trade secrets, or conduct prohibited by law (except minor violations), in each case as determined by the Company’s chief human resources officer or other person performing that function or, in the case of directors and executive
officers, the Compensation Committee, whose determination shall be conclusive and binding. 
 “Change in Control,” unless the Committee
determines otherwise with respect to an Award at the time the Award is granted, means the happening of any of the following events: 
 (a) an acquisition by
any Entity of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either (1) the then outstanding shares of common stock of the Company (the “Outstanding Company Common
Stock”) or (2) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding 

 
Company Voting Securities”), excluding, however, the following (i) any acquisition directly from the Company, other than an acquisition by
virtue of the exercise of a conversion privilege where the security being so converted was not acquired directly from the Company by the party exercising the conversion privilege, (ii) any acquisition by the Company, (iii) any acquisition
by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Related Company, or (iv) a Related Party Transaction; or 
 (b) a change in the composition of the Board during any two-year period such that the individuals who, as of the beginning of such two-year period, constitute the Board (the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Board; provided, however, that for purposes of this definition, any individual who becomes a member of the Board subsequent to the beginning of the two-year period, whose election, or nomination for election by
the Company’s stockholders, was approved by a vote of more than half of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as
though such individual were a member of the Incumbent Board; and provided further, however, that any such individual whose initial assumption of office occurs as a result of or in connection with an actual or threatened solicitation of proxies or
consents by or on behalf of an Entity other than the Board shall not be considered a member of the Incumbent Board. 
 “Change in Control Exercise
Period” has the meaning set forth in Section 15.3.3. 
 “Code” means the Internal Revenue Code of 1986, as amended from time
to time. 
 “Committee” has the meaning set forth in Section 3.1. 
 “Common Stock” means the common stock, par value $0.001 per share, of the Company. 
 “Company” means The Gymboree Corporation, a Delaware corporation. 
 “Company Transaction,” unless
otherwise defined in the instrument evidencing the Award or in a written employment, services or other agreement between the Participant and the Company or a Related Company, means consummation of: 
  

	(a)	a merger or consolidation of the Company with or into any other company or other entity; 

 (b) a sale in one transaction or a series of transactions undertaken with a common purpose of more than 50% of the Company’s outstanding voting securities; or 
 (c) a sale, lease, exchange or other transfer in one transaction or a series of related transactions undertaken with a common purpose of all or substantially all of the
Company’s assets. 
  

 A-2 

 Where a series of transactions undertaken with a common purpose is deemed to be a Company Transaction, the date of such
Company Transaction shall be the date on which the last of such transactions is consummated. 
 “Compensation Committee” means the
Compensation Committee of the Board. 
 “Covered Employee” means a “covered employee” as that term is defined for purposes of
Section 162(m)(3) of the Code or any successor provision. 
 “Disability,” unless otherwise defined by the Committee or in the
instrument evidencing the Award or in a written employment, services or other agreement between the Participant and the Company or a Related Company, means a mental or physical impairment of the Participant that is expected to result in death or
that has lasted or is expected to last for a continuous period of 12 months or more and that causes the Participant to be unable to perform his or her material duties for the Company or a Related Company and to be engaged in any substantial
gainful activity, in each case as determined by the Company’s chief human resources officer or other person performing that function or, in the case of directors and executive officers, the Compensation Committee, whose determination shall be
conclusive and binding. 
 “Effective Date” has the meaning set forth in Section 19. 
 “Eligible Person” means any person eligible to receive an Award as set forth in Section 5. 
 “Entity” means any individual, entity or group (within the meaning of Section 13(d)(3) of the Exchange Act). 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time. 
 “Fair Market Value” means the average of the high and low trading prices for the Common Stock on any given date during regular trading, or if not trading on that date, such price on the last preceding
date on which the Common Stock was traded, unless determined otherwise by the Committee using such methods or procedures as it may establish. 
 “Grant Date” means the later of (a) the date on which the Committee completes the corporate action authorizing the grant of an Award or such later date specified by the Committee or (b) the date on which all
conditions precedent to an Award have been satisfied, provided that conditions to the exercisability or vesting of Awards shall not defer the Grant Date. 
 “Incentive Stock Option” means an Option granted with the intention that it qualify as an “incentive stock option” as that term is defined for purposes of Section 422 of the Code or any successor provision.

 “Nonqualified Stock Option” means an Option other than an Incentive Stock Option. 
  

 A-3 

 “Option” means a right to purchase Common Stock granted under Section 7. 
 “Parent Company” means a company or other entity which as a result of a Company Transaction owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries. 
 “Participant” means any Eligible Person to whom an
Award is granted. 
 “Performance Award” means an Award of Performance Shares or Performance Units granted under Section 11.

 “Performance Criteria” has the meaning set forth in Section 16.1. 
 “Performance Share” means an Award of units denominated in shares of Common Stock granted under Section 11.1. 
 “Performance Unit” means an Award of units denominated in cash or property other than shares of Common Stock granted under Section 11.2.

 “Plan” means The Gymboree Corporation 2004 Equity Incentive Plan. 
 “Related Company” means any entity that is directly or indirectly controlled by, in control of or under common control with the Company. 
 “Related Party Transaction” means a Company Transaction pursuant to which: 
 (a) the Entities who are the
beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Company Transaction will beneficially own, directly or indirectly, at least 50% of the outstanding shares of common stock,
and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the Successor Company in substantially the same proportions as their ownership, immediately prior to such Company
Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting Securities; 
 (b) no Entity (other than the Company, any employee
benefit plan (or related trust) of the Company or a Related Company, the Successor Company or, if reference was made to equity ownership of any Parent Company for purposes of determining whether clause (a) above is satisfied in connection with
the applicable Company Transaction, such Parent Company) will beneficially own, directly or indirectly, 50% or more of, respectively, the outstanding shares of common stock of the Successor Company or the combined voting power of the outstanding
voting securities of the Successor Company entitled to vote generally in the election of directors unless such ownership resulted solely from ownership of securities of the Company prior to the Company Transaction; and 
  

 A-4 

 (c) individuals who were members of the Incumbent Board will immediately after the consummation of the Company
Transaction constitute at least a majority of the members of the board of directors of the Successor Company (or, if reference was made to equity ownership of any Parent Company for purposes of determining whether clause (a) above is satisfied
in connection with the applicable Company Transaction, of the Parent Company). 
 “Restricted Stock” means an Award of shares of Common
Stock granted under Section 10, the rights of ownership of which are subject to restrictions prescribed by the Committee. 
 “Securities
Act” means the Securities Act of 1933, as amended from time to time. 
 “Stock Appreciation Right” or “SAR” means a
right granted under Section 9.1 to receive the excess of the Fair Market Value of a specified number of shares of Common Stock over the grant price. 
 “Stock Award” means an Award of shares of Common Stock granted under Section 10, the rights of ownership of which are not subject to restrictions prescribed by the Committee. 
 “Stock Unit” means an Award denominated in units of Common Stock granted under Section 10. 
 “Substitute Awards” means Awards granted or shares of Common Stock issued by the Company in substitution or exchange for awards previously granted by an
Acquired Entity. 
 “Successor Company” means the surviving company, the successor company or Parent Company, as applicable, in connection
with a Company Transaction. 
 “Termination of Service” means a termination of employment or service relationship with the Company or
a Related Company for any reason, whether voluntary or involuntary, including by reason of death or Disability. Any question as to whether and when there has been a Termination of Service for the purposes of an Award and the cause of such
Termination of Service shall be determined by the Company’s chief human resources officer or other person performing that function or, with respect to directors and executive officers, by the Compensation Committee, whose determination shall be
conclusive and binding. Transfer of a Participant’s employment or service relationship between the Company and any Related Company shall not be considered a Termination of Service for purposes of an Award. Unless the Compensation Committee
determines otherwise, a Termination of Service shall be deemed to occur if the Participant’s employment or service relationship is with an entity that has ceased to be a Related Company. 
 “Vesting Commencement Date” means the Grant Date or such other date selected by the Committee as the date from which an Award begins to vest.

  

 A-5WCM Pool  LLC Organization Agreement

 EXHIBIT 10.14 
 WCM POOL LLC 
 ORGANIZATION AGREEMENT 
 dated as of November 20, 2006 

 WCM POOL LLC 
 ORGANIZATION AGREEMENT 
 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I	  	ORGANIZATION	  	2
			
	 1.1.
	  	Formation	  	2
	 1.2.
	  	Name	  	2
	 1.3.
	  	Purposes	  	2
	 1.4.
	  	Duration	  	3
	 1.5.
	  	Registered Office and Registered Agent; Principal Office	  	3
	 1.6.
	  	Qualification in Other Jurisdictions	  	4
	 1.7.
	  	No State-Law Partnership	  	4
			
	ARTICLE II	  	MEMBERS	  	4
			
	 2.1.
	  	Initial Members	  	4
	 2.2.
	  	Admission of Additional Members	  	4
	 2.3.
	  	Classes of Members	  	4
			
	ARTICLE III	  	CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS	  	5
			
	 3.1.
	  	Initial Capital Contributions	  	5
	 3.2.
	  	Initial Membership Interests	  	5
	 3.3.
	  	No Further Required Capital Contributions	  	5
	 3.4.
	  	Additional Capital Contributions	  	5
	 3.5.
	  	Additional Capital Contributions Permitted Only In Cash	  	5
	 3.6.
	  	Capital Accounts	  	5
	 3.7.
	  	Return of Capital Contributions	  	6
	 3.8.
	  	Interest	  	6
	 3.9.
	  	Distributions	  	6
			
	ARTICLE IV	  	ALLOCATIONS AND DISTRIBUTIONS	  	7
			
	 4.1.
	  	Allocations of Gross Income, Gain and Loss for Financial Purposes	  	7
	 4.2.
	  	Allocation of Commissions, Fees and Expenses for Financial Purposes	  	7
	 4.3.
	  	Tax Allocations	  	7
	 4.4.
	  	Limitations on Loss Allocation	  	8
	 4.5.
	  	Costs of Effecting Allocations	  	8
	 4.6.
	  	Members’ Tax Liabilities	  	8

 WCM POOL LLC 
 ORGANIZATION AGREEMENT 
 TABLE OF CONTENTS 
 (continued) 
  

					
	ARTICLE V	  	TRANSFERS AND ASSIGNMENTS PROHIBITED; WITHDRAWALS	  	8
			
	 5.1.
	  	Transfers and Assignments Prohibited	  	8
	 5.2.
	  	Withdrawals	  	9
			
	ARTICLE VI	  	MANAGEMENT OF THE COMPANY	  	9
			
	 6.1.
	  	Management of Business	  	9
	 6.2.
	  	General Powers of Voting Members	  	9
	 6.3.
	  	Delegation of Administrative Authority	  	9
	 6.4.
	  	Delegation of Trading Authority	  	10
	 6.5.
	  	Standard of Care; Liability	  	10
	 6.6.
	  	Limitations on Powers of Members	  	10
	 6.7.
	  	Other Business	  	11
			
	ARTICLE VII	  	OWNERSHIP OF COMPANY PROPERTY	  	11
			
	ARTICLE VIII	  	FISCAL MATTERS; BOOKS AND RECORDS	  	11
			
	 8.1.
	  	Bank Accounts; Investments	  	11
	 8.2.
	  	Records Required by Act; Right of Inspection	  	11
	 8.3.
	  	Books and Records of Account	  	12
	 8.4.
	  	Tax Returns and Information	  	12
	 8.5.
	  	Delivery of Financial and Tax Information to Members	  	12
	 8.6.
	  	Audits	  	12
	 8.7.
	  	Fiscal Year	  	13
	 8.8.
	  	Tax Elections	  	13
	 8.9.
	  	Tax Matters Member	  	13
	 8.10.
	  	Regulatory Reporting	  	13
			
	ARTICLE IX	  	INDEMNIFICATION	  	14
			
	 9.1.
	  	Indemnification by the Members	  	14
	 9.2.
	  	Indemnification by Preferred of the Members	  	14

 WCM POOL LLC 
 ORGANIZATION AGREEMENT 
 TABLE OF CONTENTS 
 (continued) 
  

					
	ARTICLE X	  	DISSOLUTION AND WINDING UP	  	14
			
	 10.1.
	  	Events Causing Dissolution	  	14
	 10.2.
	  	Winding Up	  	14
	 10.3.
	  	Compensation of Liquidator	  	15
	 10.4.
	  	Distribution of Company Property	  	15
	 10.5.
	  	Final Audit	  	16
	 10.6.
	  	Deficit Capital Accounts	  	16
			
	ARTICLE XI	  	MISCELLANEOUS PROVISIONS	  	16
			
	 11.1.
	  	Approval of Administration Agreement	  	16
	 11.2.
	  	Interpretation	  	16
	 11.3.
	  	“Commodity Pool” Status of the Company	  	16
	 11.4.
	  	Compliance with the “Blue Sky” Guidelines	  	17
	 11.5.
	  	Organizational and Maintenance Expenses	  	17
	 11.6.
	  	Counterparts	  	17
	 11.7.
	  	Entire Agreement	  	17
	 11.8.
	  	Partial Invalidity	  	17
	 11.9.
	  	Amendment	  	17
	 11.10.
	  	Binding Effect	  	17
	 11.11.
	  	Governing Law	  	18
	 11.12.
	  	Effect of Waiver or Consent	  	18
	 11.13.
	  	Further Assurances	  	18
		
	 Testimonium
	  	18
	 Signatures
	  	19
	 Schedule I
	  	20

 WCM POOL LLC 
 ORGANIZATION AGREEMENT (this “Agreement”) dated as of November 20, 2006 by and among (A) the commodity pools (each, a “Member” and, collectively, the
“Members”) signatory from time to time hereto, each of which (i) has as its sole managing owner or trading manager (or its functional equivalent in another type of entity) Preferred Investment Solutions Corp.
(“Preferred”), a “commodity pool operator” registered with the Commodity Futures Trading Commission (the “CFTC”), (ii) is no longer engaged in the distribution of its units of beneficial interest (or
equivalent common equity securities), and (iii) intends to open a trading account managed pursuant to the Diversified Program (the “WCM Program”) of Winton Capital Management Limited, United Kingdom company
(“Winton”) and (B) Preferred, not as a Member, but for the limited purposes set forth herein. 
 W
I T N E S S E T H 
 WHEREAS, the Company has been formed as a
means of consolidating the commodity interest trading of the Members; and 
 WHEREAS, the Company’s trading will at all times be
managed exclusively pursuant to the WCM Program (Winton being delegated trading management authority over the Company pursuant to Section 18-407 of the Delaware Limited Liability Company Act, 6 Del. C. §18-101 et seq. (the
“Act”), and an Advisory Agreement by and among the Company, Preferred and Winton of even date herewith); and 
 WHEREAS, all
Members shall share pro rata in the profits and losses of the Company, based on the relative values (prior to reduction for all accrued but unpaid fees or expenses) of their respective Membership Interests (“Membership
Interest” to mean, with respect to any Member at any time, the entire interest of such Member in the Company at such time. A Membership Interest includes, without limitation, (a) all rights of a Member to receive distributions of
revenues, allocations of income and loss and distributions of liquidation proceeds under this Agreement and (b) all management rights, if any, voting rights or rights to consent of the respective Members) in the Company — applicable CFTC
policies prohibiting any Member’s investment in the Company being traded at a higher degree of leverage than any other Member’s investment or pursuant to any different trading program than that employed to direct the Company’s trading
with respect to any other Member; and 
 WHEREAS, pursuant to Section 18-407 of the Act, Preferred (which is either the sole
managing owner or the trading manager of each of the Members) shall be delegated administrative authority over the operations of the Company; and 
 WHEREAS, pursuant to Section 18-302 of the Act, the Company shall issue two classes of Membership Interests: Non-Voting Membership Interests and Voting Membership Interests. These two classes of Membership Interests shall have
identical pro rata economic interests in the Company, but the Non-Voting Membership Interests shall in no respect participate in the management of the Company, such management to be vested solely in the Voting Membership Interests; and

 WHEREAS, all Members (“Non-Voting Members”) which are non-United States persons shall acquire “Non-Voting
Membership Interests”, and shall not participate in any respect in the management of the Company, or engage, directly or indirectly, in the participation in or control of all or any portion of the business activities or affairs of the
Company (Non-Voting Members being the functional equivalent of limited partners in a limited partnership); and 
  

 -1- 

 WHEREAS, the Members (“Voting Members”) which are United States persons shall
acquire “Voting Membership Interests” and shall, acting as Members without any “manager,” mutually dominate and control all business activities and affairs of the Company by agreement of the majority in interest of such
Members, subject to the authority vested in and delegated to Winton and the administrative authority vested in and delegated to Preferred hereunder; and 
 WHEREAS, upon the terms and subject to the conditions set forth herein, each of the initial Members are, concurrently with the execution of this Agreement, acquiring either Voting Membership Interests or
Non-Voting Membership Interests in the Company; and 
 WHEREAS, it is the express intent of the Members that their participation in
the Company be, other than in respect of the consolidation of the Members’ WCM Program trading accounts, the functional equivalent of each Member opening such trading accounts on an individual basis; and 
 WHEREAS, in accordance with the Act, each of the Members desires to enter into this Agreement to set forth the respective rights, powers and
interests of the Members with respect to the Company and their respective Voting Membership Interests or Non-Voting Membership Interests (as the case may be) and to provide for the management of the business and operations of the Company.

 NOW, THEREFORE, in consideration of the premises and of the mutual promises and agreements made herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows. 
 ARTICLE I

 ORGANIZATION 
 1.1
Formation. The Company has been organized as a Delaware limited liability company under and pursuant to the Act by the filing of a Certificate of Formation with the Office of the Secretary of State of Delaware as required by the Act. This
Agreement embodies the agreement among the Members as to the governance of the Company and related matters. However, in the event of a conflict between the terms of this Agreement and the Certificate of Formation, the terms of the Certificate of
Formation shall prevail. 
 1.2 Name. The name of the Company is WCM Pool LLC (the “Company”). 
 1.3 Purposes. The purposes of the Company are to engage in any activity and/or business for which limited liability companies may be formed under
the Act including, without limitation, the activities set forth in the recitals to this Agreement. For greater certainty and not by way of limitation, the Company’s business and purpose is to trade, buy, sell or otherwise acquire, hold or
dispose of forward and futures contracts for all manner of commodities, financial instruments and currencies, as well as options and rights pertaining thereto (collectively, “commodity interests”), and to engage in all activities
necessary, convenient or incidental thereto. The Company may also engage in “hedge,” arbitrage and cash trading of commodities, futures, forwards and options. The objective of the Company’s business is appreciation of its assets

  

 -2- 

 
through speculative trading. The Company may engage in the foregoing speculative trading directly and through investing in other entities which are
themselves “commodity pools” rather than private “investment companies” within the meaning of Section 3(c)(1) of the Investment Company Act of 1940 (the “Company Act”); provided, that in all cases, the
Company’s commodity interest trading shall be directed exclusively pursuant to Winton implementing its Portfolio, as the same may change and develop over time. 
 The Company may not engage in any “yield enhancement” activities or securities trading, but only (i) acquire government interest-bearing securities with the intent of holding such securities until
maturity and/or (ii) receive interest credits on cash deposits made by it. 
 The Company may not admit as a Member any entity which is
engaged in soliciting additional investments in such entity. 
 The Company shall have all the powers necessary or convenient to effect any
purpose for which it is formed, including all powers granted by the Act. 
 1.4 Duration. The Company shall continue in existence
until December 31, 2056 or until the Company shall be sooner dissolved and its affairs wound up in accordance with the Act or this Agreement. 
 1.5 Registered Office and Registered Agent; Principal Office. 
 (a) The registered office of the Company required by the Act
to be maintained in the State of Delaware shall be the initial registered office named in the Certificate of Formation or such other office (which need not be a place of business of the Company) as the Voting Members holding a majority in interest
of the Voting Membership Interests (the affirmative vote of such a majority in interest of the Voting Membership Interests being hereinafter referred to as a “Majority Vote”) may designate from time to time in the manner provided by
Section 18-104 of the Act. 
 (b) The registered agent of the Company in the State of Delaware shall be the initial registered agent
named in the Certificate of Formation or such other person or persons as the Voting Members by Majority Vote may designate in the manner provided by Section 18-104 of the Act. 
 (c) The principal office of the Company shall be c/o Preferred Investment Solutions Corp., 900 King Street, Suite 100, Rye Brook, New York 10573;
telephone: (914) 307-7000, or at such place as the Voting Members by Majority Vote may designate from time to time, which need not be in the State of Delaware. The Company shall maintain at its principal office, available for inspection, the
records required by the Act and the Commodity Exchange Act (the “CEA”). 
 The Company may have such other offices as the
Voting Members by Majority Vote may designate from time to time. 
  

 -3- 

 1.6 Qualification in Other Jurisdictions. The Members shall have authority to cause the Company to
do business in jurisdictions other than the State of Delaware only if either of the following conditions is satisfied: 
 (a) such
jurisdiction has enacted a limited liability company statute, and the Voting Members by Majority Vote shall have approved the qualification of the Company under such statute to do business as a foreign limited liability company in such jurisdiction;
or 
 (b) the Company shall have obtained an opinion of counsel qualified to practice law in such jurisdiction to the effect that under the
laws of such jurisdiction the Members will not be held liable for any debts or obligations of the Company. 
 The Voting Members by Majority
Vote, will determine whether and where the Company will qualify to do business as a foreign limited liability company from time to time. 
 1.7 No State-Law Partnership. No provision of this Agreement shall be deemed or construed to constitute the Company a partnership (including, without limitation, a limited partnership) or joint venture, or any Member a partner or
joint venturer of or with any other Member, for any purposes other than federal and state tax purposes. 
 ARTICLE II 
 MEMBERS 
 2.1 Initial Members.
The initial Members of the Company are listed on Schedule I of this Agreement, and the addresses of such initial Members are as set forth on such Schedule I. As of the date hereof, there are no other Members of the Company and no other person
(other than Preferred and Winton acting pursuant to delegated authority as contemplated by Section 6.3 and 8.4 respectively) has any right to take part in the management (except as contemplated in the second and fourth recitals to this
Agreement) or ownership of the Company. 
 2.2 Admission of Additional Members. Additional Members of the Company may only be admitted
if (i) such proposed Members are “commodity pools” of which Preferred is the sole managing owner (if such “commodity pools” are United States trusts) or sole trading manager (if such “commodity pools” are foreign
corporations) or the functional equivalent thereof and (ii) such proposed Members are no longer accepting additional investments, (iii) such pools contributing to the Company will be managed exclusively pursuant to the WCM Program, and
(iv) the admission of such additional Members is approved by Majority Vote of the Voting Members. 
 If a new Member is admitted to the
Company, the books and records of the Company (including Schedule I hereto) shall be amended to reflect such addition, as contemplated by Section 18-301 of the Act. 
 2.3 Classes of Members. There shall be two classes of Members: Voting Members and Non-Voting Members. All United States persons which are admitted as Members shall be admitted as Voting Members, and all foreign
persons which are admitted as Members shall be admitted as Non-Voting Members. 
  

 -4- 

 ARTICLE III 
 CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS 
 3.1 Initial Capital Contributions. Each initial
Member shall contribute to the capital (a “Capital Contribution”) of the Company, as of January 1, 2007 the amount set forth as such Member’s initial capital contribution (“Initial Capital Contribution”)
on Schedule I. Such Initial Capital Contributions may include, provided the necessary regulatory approvals are obtained, open futures positions (and will include open forward positions), as well as cash (U.S. dollars in immediately available
funds). If any Initial Capital Contribution includes open futures and forward positions that are not “Section 1256 contracts” as defined in Section 1256(b) of the Internal Revenue Code of 1986, as amended (the “Code”)
(“Non-Section 1256 Contracts”), the tax basis and fair market values of such Non-Section 1256 Contracts shall be set forth on Schedule I. 
 3.2 Initial Membership Interests. Upon making the Initial Capital Contribution specified on Schedule I, each Member shall be entitled to the Membership Interest (Voting or Non-Voting, as the case may be)
set forth opposite such Member’s name on Schedule I. 
 3.3 No Further Required Capital Contributions. No Member shall be
obligated to make any Capital Contributions to the Company or be subject to any form of capital call or assessment with respect to such Member’s Membership Interest. 
 3.4 Additional Capital Contributions. Additional Capital Contributions of existing Members may be made, unless objected to by a Majority Vote of the Voting Members, at any time; provided, that the Member making
such additional Capital Contribution has done so pursuant to the Advisory Agreement and has received the approval of Winton that Winton is willing to manage such additional capital. 
 The initial capital contributions of Members admitted pursuant to Section 2.2 shall require the approval of the majority vote of the Voting Members.
Schedule I shall be appropriately amended to reflect any such capital contributions. 
 3.5 Additional Capital Contributions Permitted
Only In Cash. All additional Capital Contributions to the Company, whenever made, shall be made exclusively in U.S. dollars and in immediately available funds. Open futures and forward positions may, if at all, only be accepted as Capital
Contributions at the time of an initial Member’s initial capital contribution, and only subject to receipt of all necessary regulatory approvals and such Member shall provide the company with the tax basis and fair market value of any
Non-Section 1256 Contracts contributed to the Company. 
 3.6 Capital Accounts. (a) A capital account (“Capital
Account”) shall be established and maintained for each Member on the books of the Company. The initial balance in each Member’s Capital Account shall equal such Member’s initial capital contribution. Each Member’s Capital
Account (i) shall be increased by (A) the amount of any additional Capital Contribution made by that Member, and (B) allocations to that Member of Company income and gain (or items thereof), including income and gain exempt from tax
and income and gain described in Section 1.704-1(b)(2)(iv)(g) of the Treasury Regulations, and (ii) shall be decreased by (A) the amount of cash distributed to that Member by the Company, (B) allocation of commissions, fees and
expenses pursuant to Section 4.2, (C) allocations to that Member of expenditures described under Section 705(a)(2)(B), and (D) allocations of Company loss and deduction (or items thereof), including loss and deduction described
in Section 1.704-1(b)(2)(iv)(g) of the Treasury Regulations. 
  

 -5- 

 (b) In addition to the adjustments required by the foregoing provisions of this Section 3.6, the
Capital Accounts of the Members shall be adjusted in accordance with the capital account maintenance rules of Section 1.704-1(b)(2)(iv) of the Treasury Regulations. 
 (c) Except as otherwise provided herein, whenever it is necessary to determine the Capital Account of any Member for purposes of this Agreement, the Capital Account of such Member shall be determined after giving
effect to (i) all Capital Contributions made to the Company on or after the date of such Member’s initial capital contribution, (ii) all allocations of income, gain, deduction and loss for operations and transactions effected on or
after the date of such Member’s initial capital contribution and prior to the date such determination is required to be made under this Agreement and (iii) all distributions made on or after the date of such Member’s initial capital
contribution. 
 (d) The Capital Accounts of the Members shall be determined, and allocations of Company income, gain, loss and deduction
made (and adjustments made to reflect additional Capital Contributions or withdrawals, if any), as of the close of business on every Friday and on December 31 of each year; provided that Preferred may, pursuant to the authority delegated to it
pursuant to Section 6.3, cause the current accounting period for the Company to end and a new accounting period for the Company to begin at such other time or times as Preferred may, in its discretion, determine. 
 (e) The foregoing provisions of this Section 3.6 are intended to comply with Section 1.704-1(b)(2)(iv) of the Treasury Regulations and shall be
interpreted and applied in a manner consistent with such Treasury Regulations. If the Voting Members, by Majority Vote, shall determine that it is prudent to modify the manner in which the Capital Accounts are computed in order to comply with
Section 1.704-1(b)(2)(iv) of the Treasury Regulations, the Voting Members, by Majority Vote, may make such modification, provided that such modification is not likely to have a material effect on the amounts allocable to any Member, Voting or
Non-Voting. 
 3.7 Return of Capital Contributions. Except as otherwise provided in Section 5.2 or in the Act, no Member shall
have the right to withdraw, or receive any return of, all or any portion of such Member’s Capital Contribution. No Member shall have the right to receive any assets upon withdrawal of any or all of such Member’s Capital Accounts, other
than U.S. dollars. 
 3.8 Interest. No interest shall be paid by the Company on Capital Contributions or on balances in Members’
Capital Accounts, although Members’ Capital Accounts shall, as provided herein, be allocated their pro rata share of all interest earned by the Company. 
 3.9 Distributions. Any distributions made by the Company must be made, except as may be necessary to ensure that the assets of the Company not be deemed to constitute “plan assets” within the meaning
of the Employee Retirement Income Security Act of 1974 (“ERISA”) and that the Company will continue to satisfy the requirements of a “qualified electing fund” under Section 988 of the Code, pro rata among all Members
based on their respective Membership Interests. The Company does not intend to make any distributions. 
  

 -6- 

 ARTICLE IV 
 ALLOCATIONS AND DISTRIBUTIONS 
 4.1 Allocations of Gross Income, Gain and Loss for Financial
Purposes. Financial income, gain and loss from the Company’s operations, prior to the allocations of commissions, fees and expenses prescribed in Section 4.2, shall be allocated to the Members as of the end of each accounting period
(as contemplated by Section 3.6(d)) in accordance with the ratio of the balance in each such Member’s Capital Account — unreduced by any accrued but unpaid fees or expenses — as of the beginning of such accounting period to the
aggregate of such balances in all such Members’ Capital Accounts as of the beginning of such accounting period (such ratio to equal such Member’s “Company Percentage”). 
 4.2 Allocation of Commissions, Fees and Expenses for Financial Purposes. Following the allocation of Company income, gain and loss among the
Members’ respective Capital Accounts, as provided in Section 4.1, Preferred shall calculate the brokerage commissions, advisory fees, administrative fees and other expenses due from the Company to third parties, in respect of the
Company’s trading on behalf of the respective Members (the Company being subject to different commissions and fees in respect of its trading as allocable to the various different Members). Such commissions, fees and expenses shall be specially
allocated as of the end of each accounting period (not pro rata based on the Members’ Company Percentages) to, and deducted from, the appropriate Members’ Capital Accounts and paid out by the Company. 
 The Company shall, upon each Member’s investment in the Company, assume the obligations to make all payments due in respect of or attributable to
such Member’s WCM Program trading account. Preferred, as administrator of the Company, shall determine the amounts of all such payments, and these shall become obligations and expenses of the Company, not of any such Member, although the
commissions, fees and expenses attributable to a particular Member’s trading pursuant to the WCM Program may be specially allocated to such Member’s Capital Account. As provided in Section 9.2, Preferred shall indemnify and hold
harmless each Member from any commissions, fees and expenses which may be allocated to such Member’s Capital Account, but which should have been specially allocated to another Member’s Capital Account. 
 4.3 Tax Allocations. (a) Items of income, gain, loss, deduction and credit from the Company’s operations shall be allocated to the
Members in such manner as Preferred, acting pursuant to the administrative authority delegated to it pursuant to Section 6.3, and pursuant to the Administrative Services Agreement by and between Preferred and the Company, executed and delivered
pursuant to said Section 6.3, may determine shall equitably reflect the financial allocations made pursuant to Section 4.1 and Section 4.2. Preferred may, in effecting such tax allocations, allocate gain and loss separately and not on
a netted basis, if Preferred believes that doing so would be more consistent with the manner in which the Voting Members intend to allocate the tax effects of their investment in the Company among their respective unitholders. 
 (b) The allocation of profit and loss for federal income tax purposes set forth herein is intended to allocate taxable profit and loss among Members
generally in the ratio and to the extent that profit and loss are allocated to such Members so as to eliminate, to the extent possible, any disparity between a Member’s financial and its tax allocations, consistent with principles set forth in
Section 704(c) of the Code, and the Tax Matters Member may select any permissible method under Section 704(c) of the Code to make the allocations required to eliminate any disparity between a Member’s book capital account and tax
capital account. 
  

 -7- 

 (c) The Company intends to allocate taxable profit and loss in a manner consistent with
Section 704(b) of the Code, including, without limitation, a “Qualified Income Offset.” 
 (d) The allocations of profit and
loss of the Members shall not exceed the allocations permitted under Subchapter K of the Code, as determined by Preferred, whose determination shall be binding. 
 4.4 Limitations on Loss Allocation. Notwithstanding any other provision of this Agreement to the contrary, no item of loss or deduction of the Company shall be allocated to a Member if such allocation would
result in a negative balance in such Member’s Capital Account. Such loss or deduction shall be allocated first among the Members with positive balances in their Capital Accounts in proportion to (and to the extent of) such positive balances,
and thereafter in accordance with their interests in the Company as determined under Section 1.704-1(b)(3) of the Treasury Regulations. 
 4.5 Costs of Effecting Allocations. Preferred shall bear, without reimbursement from the Company (other than in respect of administrative fees due from the Company to Preferred pursuant to Section 6.3 and the Administrative
Services Agreement therein contemplated), all costs and expenses related to effecting the Company’s tax and financial allocations. 
 4.6 Members’ Tax Liabilities. Although not a Member of the Company, Preferred is hereby authorized by all Members to withhold or withdraw from each Member’s Capital Account any amount which Preferred reasonably believes may
be owing by the Company to any federal or state tax authority in respect of such Member’s investment in the Company. Any such withholding or withdrawal shall reduce each affected Member’s Membership Interest and Company Percentage until
such time, if any, as the amount of any such withholding or withdrawal is returned in whole or in part, to such Member’s Capital Account. 
 ARTICLE V 
 TRANSFERS AND ASSIGNMENTS PROHIBITED; WITHDRAWALS 
 5.1 Transfers and Assignments Prohibited. No Member may transfer or assign all or any part of its Membership Interest to any other party
(including, without limitation, to any other Member) without the unanimous consent of all Members, Voting and Non-Voting. Any transferee which is permitted to acquire a Membership Interest pursuant to any such unanimous consent shall be admitted to
the Company as a Member (no transferee or assignee of a Membership Interest shall be recognized which does not itself become a Member) and shall succeed to the Capital Account or portion thereof transferred or assigned, as if (insofar as the
Company’s accounting is concerned) no such transfer or assignment had occurred. 
 Only “commodity pools” of which Preferred
is either the managing owner (or its functional equivalent in another type of entity) or the trading manager, which are no longer accepting additional investments, shall be eligible transferees or assignees of Membership Interests. Only domestic
statutory trusts of which Preferred is the manager owner (or its functional equivalent in another type of entity) shall be eligible transferees or assignees of Voting Membership Interests, and only foreign corporations of which Preferred is the
trading manager (or its functional equivalent in another type of entity) shall be eligible transferees or assignees of Non-Voting Membership Interests. 
  

 -8- 

 No “commodity pool,” even if otherwise qualified for admission as a Member pursuant to the
preceding paragraph, shall be eligible for such admission if such “commodity pool” continues to be engaged — either directly or indirectly through accepting investments from “feeder funds” or similar entities — in the
distribution of interests in such “commodity pool” (whether on a public or private basis). 
 The limitations set forth in the
preceding two paragraphs may be amended by a Majority Vote of the Voting Members, but only provided that, in doing so, such Voting Members explicitly agree that in their good faith judgment the admission of entities otherwise proscribed under the
foregoing paragraphs as Members will not expose any other Member to any additional risk or potential liability. 
 5.2 Withdrawals. A
Member may withdraw all or any portion of its Capital Account at any time upon ten (10) calendar days’ notice to Preferred or such lesser period of notice as Preferred may approve. There shall be no penalty or fee assessed upon any such
withdrawal. Preferred shall itself reimburse the Company for any cost or expense which the Company may incur as a result of the processing of any such withdrawal, so that such cost or expense will in no respect reduce any Member’s Capital
Account. 
 All withdrawals shall be paid exclusively in cash (U.S. dollars in immediately available funds) and within ten (10) business
days of the effective date of withdrawal. No interest shall accrue on any withdrawal proceeds while held by the Company pending payment out to the withdrawing Member, provided that such payment is made within such ten (10) business-day period.

 Although Members shall be entitled to withdraw from the Company at any time, all Members agree to use best efforts to withdraw capital
from the Company only as of a Friday. 
 ARTICLE VI 
 MANAGEMENT OF THE COMPANY 
 6.1 Management of Business. Except as otherwise expressly provided
in this Agreement, the powers of the Company shall be exercised by or under the authority of, and the business and affairs of the Company shall be managed under the direction of, the Voting Members. 
 6.2 General Powers of Voting Members. Except as may otherwise be expressly provided in this Agreement, the Voting Members shall have complete and
exclusive discretion in the management and control of the business and affairs of the Company, including the right to make and control all ordinary and usual decisions concerning the business and affairs of the Company. The Voting Members shall,
subject to the provisions hereof, possess all power, on behalf of the Company, to do or authorize the Company to do all things necessary or convenient to carry out the business and affairs of the Company. 
 6.3 Delegation of Administrative Authority. The Voting Members shall manage the Company to the exclusion of the Non-Voting Members. However, the
Voting Members herewith delegate (under the ultimate supervision and authority of the Voting Members) authority over the administrative management of the Company to Preferred, to the same extent and with the same effect as Preferred is given
authority over the administrative management of each Voting Member, in Preferred’s capacity as managing owner of such Voting Member (or its functional equivalent in another form of entity). 
  

 -9- 

 In connection with the delegation of administrative authority for the Company to Preferred as
contemplated by this Section 6.3, each officer of Preferred is hereby designated as an officer of the Company, to serve, without compensation, at the pleasure of the Majority Vote of the Voting Members. Successors or replacements to the
foregoing officers shall be made by the Majority Vote of the Voting Members. 
 In performing administrative services for the Company —
which Preferred shall do in consideration of Preferred’s receipt of an administrative fee from the Company, as provided in the Administrative Services Agreement by and between the Company and Preferred, as well as in consideration of Preferred
continuing to act as managing owner of the Voting Members and trading manager of the Non-Voting Members (or in a functionally equivalent capacity). Preferred shall act as an independent contractor and not in any respect as a “manager” of
the Company within the meaning of the Act. 
 6.4 Delegation of Trading Authority. Pursuant to an Advisory Agreement dated as of
November 20, 2006 by and among the Company, Preferred and Winton, the Company (with the unanimous approval of the Members as evidenced by their signatures to this Agreement) has appointed Winton as the sole trading advisor to the Company, with
authority and direction to manage the Company’s commodity interest trading pursuant to the WCM Program, as such Portfolio may change and develop from time to time, all as contemplated by said Advisory Agreement. 
 In acting as the sole trading advisor to the Company, Winton shall act as an independent contractor and not in any respect as a “manager” of
the Company within the meaning of the Act. 
 Each Member, in consideration of such Member being admitted to the Company, agrees,
acknowledges and approves the terms of the Advisory Agreement dated as of November 20, 2006 by and among the Company, Winton and Preferred. 
 6.5 Standard of Care; Liability. Each Member shall discharge its duties under this Agreement in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances, and in a manner it
reasonably believes to be in, or not opposed to, the best interests of the Company. A Member will not be liable for any monetary damages to the Company for any breach of such duties except for receipt of a financial benefit to which the Member is
not entitled; voting for or assenting to a distribution to Members in violation of this Agreement or the Act; or a knowing violation of the law. 
 The standard of care set forth in this Section 6.5 and applicable to the Members shall in no respects qualify, restrict or limit the standard of care applicable to Preferred as managing owner or trading manager of such Members (or in a
functionally equivalent capacity), as otherwise provided by and among such Members, respectively, and Preferred. 
 6.6 Limitations on
Powers of Members. The enumeration of powers in this Agreement shall not limit the general or implied powers of the Members or any additional powers provided by law; provided, that the Non-Voting Members may in no event participate in any
respect in the management of the Company. 
  

 -10- 

 Notwithstanding the foregoing, no Member may cause the Company to become engaged or involved in any
business other than the speculative trading of commodity interests pursuant to the Portfolio under the direction of Winton without the consent of all Members, Voting and Non-Voting. Furthermore, no Member or Members, Voting or Non-Voting, may reduce
or modify (except as contemplated pursuant to a withdrawal of capital as permitted under Section 5.2) the economic interest of any other Member or Members (including the percentage of profits, losses or distributions, the tax allocations and
the indemnities to which such Member is entitled hereunder) or such other Member’s or Members’ ability to withdraw from the Company other than with the express written consent of the affected Member or Members. 
 Any modification of Sections 1.7, 3.3, 3.5, Article IV, Article V and this Section 6.6 shall require unanimous consent of all Members, Voting and
Non-Voting. 
 6.7 Other Business. The Members may engage in or possess an interest in other business ventures, by virtue of this
Agreement or any relationships created or deemed created hereby, of every kind and description, independently or with others. Neither the Company nor the Members shall have any rights in or to such independent ventures of the Members or the income
or profits therefrom. 
 ARTICLE VII 
 OWNERSHIP OF COMPANY PROPERTY 
 Company property shall be deemed to be owned by the Company as an
entity, and no Member, individually or collectively, shall have any ownership interest in such Company property or any portion thereof. Title to any or all Company property may be held in the name of the Company or one or more nominees, as the
Voting Members by Majority Vote may determine. All Company property shall be recorded as the property of the Company on its books and records, irrespective of the name in which legal title to such Company property is held. 
 ARTICLE VIII 
 FISCAL MATTERS; BOOKS
AND RECORDS 
 8.1 Bank Accounts; Investments. Capital Contributions, revenues and any other Company funds shall, as directed by
Preferred, be deposited by the Company in trading accounts (whether “regulated” or “unregulated”) established in the name of the Company. As provided by Rule 4.20(c) of the Commodity Futures Trading Commission (the
“CFTC”), no other funds shall be deposited into the Company’s trading accounts or commingled with Company investments. Funds deposited in the Company’s trading accounts may be withdrawn only to be invested in furtherance of the
Company’s purposes, to pay Company debts or obligations or to be distributed to the Members pursuant to this Agreement. 
 8.2
Records Required by Act; Right of Inspection. (a) During the term of the Company’s existence and for a period of six (6) years thereafter, there shall be maintained in the Company’s principal office specified pursuant to
Section 1.5(c) all records required to be kept pursuant to the Act and the CEA, including, without limitation, a current list of the names, addresses, Membership Interests and Company Percentages held by each of the Members 

  

 -11- 

 
(including the dates on which each of the Members became a Member), copies of federal, state and local information or income tax returns for each of the
Company’s tax years, copies of this Agreement and the Certificate of Formation, including all amendments or restatements, and correct and complete books and records of account of the Company. 
 (b) On written request stating the purpose, a Member may examine and copy in person, at any reasonable time, and at the Member’s expense, records
required to be maintained under the Act and the CEA and such other information regarding the business, affairs and financial condition of the Company as such Member may reasonably request. Upon written request by any Member made to the Company at
the address of the Company’s principal office specified in Section 1.5(c), the Company shall provide to the Member without charge true copies of (i) this Agreement and the Certificate of Formation and all amendments or restatements,
and (ii) any of the tax returns of the Company described above. 
 The provisions of this Section 8.2(b) shall in no event
be construed so as to provide any investor in any Member with any greater access (on a direct or derivative basis) to the books and records of, or to information concerning, such Member than would such investor under the constituent documents of
such Member. In no event shall any provision hereof be interpreted so as to permit any investor in any Member to obtain any information relating to another Member (except as may otherwise be required by law). 
 8.3 Books and Records of Account. The Company shall maintain adequate books and records of account that shall be maintained on the accrual method
of accounting and on a basis consistent with appropriate provisions of the Code. 
 8.4 Tax Returns and Information. The Members
intend for the Company to be treated as a partnership for tax purposes. The Company shall prepare or cause there to be prepared all federal, state and local income and other tax returns that the Company is required to file. As promptly as
practicable after the end of each calendar year, the Company shall send or deliver to each person who was a Member at any time during such year such tax information as shall be reasonably necessary for the preparation by such person of such
person’s federal income tax return, state income and any other applicable tax returns. 
 8.5 Delivery of Financial and Tax
Information to Members. Each of the Members is itself an investment fund and each of the Voting Members, as a United States trust, must furnish tax information on an annual basis to each of its investors. Preferred, as administrator of the
Company, undertakes to supply to all Members, on a timely basis, all financial and tax information relating to each such Member’s investment in the Company as each such Member is required, or reasonably wishes, to provide to its investors. The
cost of providing such information shall be solely for the account of Preferred except as may be otherwise provided in writing between a particular Member and Preferred. 
 8.6 Audits. The fiscal year-end financial statements and the financial statements to be delivered pursuant to Section 10.5 shall be audited. The audit shall be performed by an accounting firm approved by
the Majority Vote of the Voting Members, which may be the same such firm as is used by one or more such Members. The Company shall arrange, at the expense of Preferred, for sufficient information to be made available to each Member that such Member
may itself obtain an audit of such Member’s own financial statements, in full compliance with all applicable CFTC requirements. 
  

 -12- 

 8.7 Fiscal Year. The Company’s fiscal year shall end on December 31 of each calendar
year. 
 8.8 Tax Elections. The Company shall make the following elections on the appropriate tax returns: 
 (a) to adopt the calendar year as the Company’s fiscal year; 
 (b) to adopt the accrual method of accounting, and to keep the Company’s books and records on the basis of such method; 
 (c) to be a “qualified electing fund” (if possible) under Section 988 of the Code; and 
 (d)
any other election the Voting Members may, by Majority Vote, deem appropriate and in, or not opposed to, the best interests of the Members. 
 Neither the Company nor any Member may make an election for the Company to be excluded from the application of the provisions of subchapter K of chapter 1 of subtitle A of the Code or any similar provisions of applicable
state law. 
 8.9 Tax Matters Member. The Members shall designate one Member to be the “tax matters partner” (the “Tax
Matters Member”) of the Company pursuant to Section 6231(a)(7) of the Code. Such Member shall take such action as may be necessary to cause each other Member to become a “notice partner” within the meaning of Section 6223 of
the Code. Such Member shall inform each other Member of all significant matters that may come to its attention in its capacity as “Tax Matters Member” by giving notice thereof on or before the fifth Business Day after becoming aware
thereof and, within that time, shall forward to each other Member copies of all significant written communications it may receive in that capacity. Such Member may not take any action contemplated by Sections 6222 through 6232 of the Code
without the consent of the Majority Vote of the Voting Members but this sentence does not authorize such Member to take any action left to the determination of an individual Member under Sections 6222 through 6232 of the Code. The initial Tax
Matters Member shall be Diversified Futures Trust I. Diversified Futures Trust I hereby appoints Preferred to perform all necessary administrative procedures for and on behalf of Diversified Futures Trust I, as Tax Matters Member of the Company.

 8.10 Regulatory Reporting. The Company’s Voting Members are each subject to various regulatory and investor reporting
requirements imposed by the CFTC. The Company itself may also be so subject. Preferred, as administrator of the Company, shall be responsible for ensuring that all such reporting requirements are duly met and complied with at no additional cost to
the Company. 
  

 -13- 

 ARTICLE IX 
 INDEMNIFICATION 
 9.1 Indemnification by the Members. Each of the Members agrees that the
various indemnifications which they have provided to Preferred, as either the managing owner or the trading manager of such Member or in a functionally equivalent capacity, as the case may be, shall be equally applicable to the component of such
Member’s operations attributable to its investment in the Company. However, such investment shall in no respect increase the indemnification obligation of any Member towards Preferred or any “related or associated party.” 

9.2 Indemnification by Preferred of the Members. Preferred shall indemnify and hold harmless each Member from and against any losses,
judgments, liabilities, expenses and amounts paid in settlement of any claims sustained by them as a result of such Member having invested in the Company rather than maintained an individual WCM Program trading account in such Member’s own
name. 
 ARTICLE X 
 DISSOLUTION AND WINDING UP 
 10.1 Events Causing Dissolution. The Company shall be dissolved upon the first of the
following events to occur: 
 (a) December 31, 2056; 
 (b) The written consent of all Members (Voting and Non-Voting) at any time to dissolve and wind up the affairs of the Company; 
 (c) The death, retirement, resignation, expulsion, bankruptcy or dissolution of a Member or the occurrence of any other event that terminates the continued membership of a Member in the Company, unless there are at
least two remaining Members and the business of the Company is continued by the consent of all remaining Members (Voting and Non-Voting) within 10 days following the occurrence of any such event; or 
 (d) The occurrence of any other event that causes the dissolution of a limited liability company under the Act. 
 10.2 Winding Up. If the Company is dissolved pursuant to Section 10.1, the Company’s affairs shall be wound up as soon as reasonably
practicable in the manner set forth below. 
 (a) The winding up of the Company’s affairs shall be supervised by Preferred, as
liquidator, or such other entity as may be selected by the Majority Vote of the Voting Members. 
 (b) In winding up the affairs of the
Company, the liquidator shall have full right and unlimited discretion, in the name of and for and on behalf of the Company to: 
 (i) prosecute and defend civil, criminal or administrative suits; 
 (ii) collect Company assets, including
obligations owed to the Company; 
  

 -14- 

 (iii) settle and close the Company’s business; 
 (iv) close out all open commodity interest positions held in the name of the Company, having due regard for the activity and condition of
the relevant market and general financial and economic conditions; 
 (v) pay all reasonable costs and other expenses incurred
in connection with the winding up out of the proceeds of the disposition of Company property; 
 (vi) discharge the
Company’s known liabilities and, if necessary, to set up, for a period not to exceed five (5) years after the date of dissolution, such cash reserves as the liquidator may deem reasonably necessary for any contingent or unforeseen
liabilities or obligations of the Company; 
 (vii) distribute any remaining assets of the Company to the Members as
contemplated by Section 10.4; 
 (viii) prepare, execute, acknowledge and file articles of dissolution under the Act and
any other certificates, tax returns or instruments necessary or advisable under any applicable law to effect the winding up and termination of the Company; 
 (ix) assist the former Members, to the extent that they so request, in establishing individual WCM Program trading accounts, to be maintained in their own names; and 
 (x) exercise, without further authorization or consent of any of the parties hereto or their legal representatives or successors in
interest, all of the powers conferred upon the Members under the terms of this Agreement to the extent necessary or desirable in the good faith judgment of the liquidator to perform its duties and functions. 
 10.3 Compensation of Liquidator. The liquidator, if Preferred, shall act without compensation. If the liquidator is not Preferred, the
compensation due to the liquidator shall be as agreed to by the Majority Vote of the Voting Members and shall be allocated pro rata among all Members as based on their respective Company Percentages. 
 10.4 Distribution of Company Property. (a) Upon completion of all desired sales of Company property, and after payment of all selling costs
and expenses, the liquidator shall distribute the proceeds of such sales, and any Company property that is to be distributed in kind, to the following groups in the following order of priority: 
 (i) to satisfy Company liabilities to creditors, whether by payment or establishment of reserves; and 
 (ii) to the Members, in accordance with the positive balances in their respective Capital Accounts determined after allocating all items
for all periods prior to and including the date of distribution. 
 All distributions required under this Section 10.4 shall be made to
the Members by the end of the taxable year in which the liquidation occurs or, if later, within 90 days after the date of such liquidation. 
  

 -15- 

 (b) If the assets available for disposition pursuant to Section 10.4(a)(ii) are insufficient to
dispose of all of the claims of a priority group, the available assets shall be distributed in proportion to the amounts owed to each creditor or the respective Capital Account balances of each Member in such group. 
 10.5 Final Audit. Within a reasonable time following the completion of the liquidation (and, in all events, in full compliance with all applicable
CFTC rules), the liquidator shall supply to each of the Members a statement that shall set forth the assets and the liabilities of the Company as of the date of complete liquidation and each Member’s portion of the distributions made pursuant
to Section 10.4. 
 10.6 Deficit Capital Accounts. As contemplated by Section 4.4, notwithstanding anything to the contrary
contained in this Agreement, and notwithstanding any custom or rule of law to the contrary, to the extent that the deficit, if any, in the Capital Account of any Member results from or is attributable to deductions and losses of the Company, or
distributions of money pursuant to this Agreement to all Members in proportion to their respective Membership Interests, upon dissolution of the Company such deficit shall not be an asset of the Company and such Members shall not be obligated to
contribute such amount to the Company to bring the balance of such Member’s Capital Account to zero. 
 ARTICLE XI 
 MISCELLANEOUS PROVISIONS 
 11.1
Approval of Administration Agreement. The Company and Preferred have entered into an Administrative Services Agreement with Preferred as contemplated by Section 6.3. Each Member herewith expressly approves and consents to such Agreement
as a condition of such Member’s admission to the Company. 
 11.2 Interpretation. The Company has been formed with the specific
intent of permitting the Members to consolidate their trading pursuant to the WCM Program in accordance with the Securities and Exchange Commission No-Action Letter, The Managed Futures Association (publicly available July 15, 1996). This
No-Action Letter contemplates that “commodity pools” such as the Members could consolidate their commodity interest trading through investing in entities such as the Company without thereby becoming subject to the Company Act. The terms
and operations of the Company are intended to be, and are to be interpreted so as to be, in full compliance with the intent as well as the particular requirements of such No-Action Letter. Other than in respect of permitting such consolidated
trading, the Members’ investment in the Company is intended to have no effect upon the Members which differs in any respect from their continuing to maintain individual WCM Program trading accounts, and this Agreement is to be interpreted so as
to achieve this result. 
 This Agreement shall be deemed to be amended ab initio in whatever manner it may be determined by
Majority Vote of the Voting Members to be necessary or advisable to ensure compliance with the requirements of the foregoing No-Action Letter and that none of the Members, solely as a result of investing in the Company, has become an
“investment company” within the meaning of the Company Act. 
 11.3 “Commodity Pool” Status of the Company. It is
unclear whether the CFTC will require the Company to report its operations on the basis that it is a “commodity pool” on a stand-alone basis, as opposed to having the respective attributable results of their investments in the Company
reflected in the performance reports of the Members. Preferred, as administrator of the 

  

 -16- 

 
Company, shall be responsible, at Preferred’s own cost and expense, for all CFTC-required reporting of the Company, and shall ensure that the Company is
operated in full compliance with all substantive requirements (as opposed to procedural or reporting requirements, which the CFTC might waive) relating to the operation of “commodity pools.” 
 11.4 Compliance with the “Blue Sky” Guidelines. The Voting Members are each “commodity pools” which were publicly offered in
the United States and which, accordingly, were structured in respect of certain of their business terms so as to comply with the “Guidelines for the Registration of Commodity Pool Programs” (the “Guidelines”) promulgated
by the North American Association of Securities Administrators, Inc. It is the express intent of all Members that the investment by the Voting Members in the Company, and the terms of this Agreement, in no respect whatsoever permit the Voting
Members to act in a manner inconsistent with the Guidelines (except as may have been previously agreed to by a Voting Member with the state securities administrators, as reflected in such Voting Member’s constituent documents), and this
Agreement is in all respects to be interpreted in a manner consistent with such intent. 
 11.5 Organizational and Maintenance
Expenses. Preferred shall pay, without reimbursement from the Company or any Member, all organizational costs relating to the formation of the Company as well as all ongoing costs of maintaining the Company as a Delaware limited liability
company and a foreign limited liability company (if and as applicable), in each case in good standing. 
 11.6 Counterparts. This
Agreement may be executed in several counterparts, each of which will be deemed an original but all of which will constitute one and the same. 
 11.7 Entire Agreement. This Agreement (which refers to and must be interpreted in light of certain agreements among the respective Members, Preferred, Winton and others as contemplated herein) constitutes the entire agreement among
the parties hereto and contains all of the agreements among such parties with respect to the subject matter hereof. This Agreement supersedes any and all other agreements, either oral or written, between such parties with respect to the subject
matter hereof. 
 11.8 Partial Invalidity. Wherever possible, each provision hereof shall be interpreted in such manner as to be
effective and valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such provision shall be ineffective to the extent, but
only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such invalid, illegal or unenforceable provision or provisions or any other provisions hereof, unless such a construction would be
unreasonable. 
 11.9 Amendment. Except as expressly provided to the contrary herein (for example, in Sections 5.1 and 6.6), this
Agreement may be amended by, and only by, a written agreement executed by all Voting Members. 
 11.10 Binding Effect. Subject to the
provisions of this Agreement relating to transferability, this Agreement will be binding upon and shall inure to the benefit of the parties, and their respective distributees, heirs, successors and assigns. 
  

 -17- 

 11.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LOCAL, INTERNAL LAWS OF THE STATE OF DELAWARE; PROVIDED, HOWEVER, THAT CAUSES OF ACTION FOR VIOLATION OF THE FEDERAL OR STATE SECURITIES LAWS SHALL NOT BE GOVERNED BY THIS SECTION 11.11. IN PARTICULAR, THIS AGREEMENT IS INTENDED TO COMPLY WITH THE
REQUIREMENTS OF THE ACT AND THE CERTIFICATE OF FORMATION. IN THE EVENT OF A DIRECT CONFLICT BETWEEN THE PROVISIONS OF THIS AGREEMENT AND THE MANDATORY PROVISIONS OF THE ACT OR ANY PROVISION OF THE CERTIFICATE OF FORMATION, THE ACT AND THE
CERTIFICATE OF FORMATION, IN THAT ORDER OF PRIORITY, WILL CONTROL. 
 11.12 Effect of Waiver or Consent. A waiver or consent, express
or implied, to or of any breach or default by any person in the performance by that person of its obligations with respect to the Company is not a consent or waiver to or of any other breach or default in the performance by that person of the same
or any other obligations of that person with respect to the Company. Failure on the part of a person to complain of any act of any person or to declare any person in default with respect to the Company, irrespective of how long that failure
continues, does not constitute a waiver by that person of its rights with respect to that default until the applicable statute-of-limitations period has run. 
 11.13 Further Assurances. In connection with this Agreement and the transactions contemplated hereby, each Member shall execute and deliver any additional documents and instruments and perform any additional
acts that may be necessary or appropriate to effectuate and perform the provisions of this Agreement and such transactions. For greater certainty and not by way of limitation, each Member agrees to take all steps and perform such additional acts as
the CFTC or the Securities and Exchange Commission, respectively, may deem to be necessary or appropriate in connection with the consolidation of the Members’ respective WCM Program trading accounts into the sole trading account of the Company.

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 -18- 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the year and date first
above written, to be effective on the date first above written. 
  

					
	WCM POOL LLC
		
	By:	 	Diversified Futures Fund LP, a Member
			
		 	By:	 	 Preferred Investment Solutions Corp.,
 its General
Partner

			
		 	By:	 	 /s/ Esther E. Goodman

		 	Name:	 	Esther E. Goodman
		 	Title:	 	Senior Executive Vice President and Chief Operating Officer
		
	By:	 	Diversified Futures Trust I, a Member
			
		 	By:	 	 Preferred Investment Solutions Corp.,
 its Managing
Owner

			
		 	By:	 	 /s/ Esther E. Goodman

		 	Name:	 	Esther E. Goodman
		 	Title:	 	Senior Executive Vice President and Chief Operating Officer
		
	By:	 	Kenmar Global Trust, a Member
			
		 	By:	 	 Preferred Investment Solutions Corp.,
 its Managing
Owner

			
		 	By:	 	 /s/ Esther E. Goodman

		 	Name:	 	Esther E. Goodman
		 	Title:	 	Senior Executive Vice President and Chief Operating Officer

  

 -19- 

 Schedule I 
 MEMBERS AND INITIAL CAPITAL CONTRIBUTIONS 
 Initial Positions Transferred 
 Capital Contribution (see attached Cash schedule) 
  

							
	 Member
	  	Initial Company
Percentage	  	Non-Voting
Membership
Interest	  	Voting
Membership
Interest
	 Diversified Futures Fund LP
	  	$	  	%	  	X
	 Diversified Futures Trust I
	  	$	  	%	  	X
	 Kenmar Global Trust
	  	$	  	%	  	X

 The address of all the Members is Preferred Investment Solutions Corp., 900 King Street, Suite 100, Rye Brook, NY
10573; telephone: (914) 307-7000. 
  

 -20-

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