Document:

Exhibit 10.02

 Exhibit 10.01 
 

 
  
  

2017 Short-Term Incentive Plan 

Centuri Construction Group 

 Table of Contents 

 
  

							
		 	SECTION	  	 	PAGE	 
			
	 1.
	 	SHORT TERM INCENTIVE PLAN OBJECTIVES	  	 	1	 
			
	 2.
	 	PLAN STATUS	  	 	1	 
			
	 3.
	 	ELIGIBILITY AND INCENTIVE OPPORTUNITY	  	 	1	 
			
	 4.
	 	FAIL SAFE	  	 	2	 
			
	 5.
	 	PERFORMANCE MEASURES, WEIGHTS, AND GOALS	  	 	2	 
			
	 6.
	 	PLAN DESCRIPTION AND TEMPLATE	  	 	3	 
			
	 7.
	 	PAYOUT TABLE	  	 	4	 
			
	 8.
	 	INCENTIVE CALCULATION EXAMPLE	  	 	5	 
			
	 9.
	 	TERMS AND CONDITIONS	  	 	5	 

 Short Term Incentive Plan (“Plan”) Objectives 

 
  

	 	•	 	 Attract, motivate and retain top talent 

 

	 	•	 	 Align incentives with short-term business strategies and priorities 

 

	 	•	 	 Energize employees to achieve company objectives 

 

	 	•	 	 Provide an adequate financial return at reasonable cost 

Plan Status 
 The Plan is a bonus
plan and has been designed to fit into the Department of Labor Regulation Section 2510.3-2(c) bonus program exception to an employee pension benefit plan status under the Employee Retirement Income Security Act of 1974, as amended. The Plan
pays bonus compensation shortly after the year in which it is earned and is not intended to systematically defer the receipt of compensation until termination of employment or to provide retirement income. The Plan is also designed to not be subject
to Section 409A of the Internal Revenue Code of 1986, (the “Code”) as amended, because the Plan fits into the Treasury Regulation Section 1.409A-1(b)(4) short term deferral exception
to the application of Code Section 409A. For purposes of this Plan, the rules, regulations, and published guidance of the Internal Revenue Service promulgated for Code Section 409A are hereinafter collectively referred to as
“Section 409A.” 
 Eligibility and Incentive Opportunity 

 
 This Plan applies to Centuri
Construction Group, Inc. (“Centuri”) and its subsidiaries. As used herein: a “Plan Year” means the calendar year; the term “CEO” means Centuri’s President & CEO; “Company”
means Centuri and any of its subsidiaries and, unless the context clearly indicates otherwise, refers to each in the singular and not collectively; and “Committee” means Centuri’s Compensation Steering Committee, which group
shall be comprised of the CEO, Centuri’s Executive Vice-President/Chief Financial Officer, and Centuri’s Senior Vice-President of Human Resources (SVPHR) , along with such others as the CEO may appoint as Committee members from time to
time. The CEO may remove one or more Committee members at any time. 
 Employees eligible for participation under this Plan are those whose
jobs are deemed to be exempt positions as defined by the Fair Labor Standards Act (FSLA) and so designated by the Committee; eligibility starts upon hire or promotion into a Plan-designated position (subject to written confirmation by the SVPHR or
his/her designee, by way of an offer letter or notice of such Plan eligibility to the newly promoted). Regarding any partial year (meaning an employee with a hire date or promotion date that is other than January 1), Plan participation will be
proportionately based on a ratio of days in the Plan-

 
designated position to 365 days for the Plan Year. A Company employee shall not be eligible to receive a Plan bonus for a Plan Year under this Plan if the employee is eligible for a bonus for
such Plan Year under any other Company short term incentive plan. A Plan bonus earned by an eligible employee/participant in one Plan Year will be paid in the following Plan Year to such eligible employee/participant only if employee remains
actively employed by the Company at time of payout unless, in the Plan Year to which a Plan bonus is earned, the employee’s Company employment terminates due to the employee’s death, or his or her total and permanent disability.
For purposes of this Plan, an employee will not be considered to have terminated employment due to a total and permanently disability unless, by no later than two months after the end of the Plan Year in which the employee’s employment
terminates, the employee has been determined to be totally and permanently disabled by the Company’s long term disability insurer. 

Plan bonus payouts are salary-based (and subject to the goals attainment, measures and weightings discussed elsewhere in this Plan), and the
salary used for such shall be pegged to the employee’s base salary, as well as the percentage associated with their position, as of October 1 of the Plan Year at issue. 

Fail Safe 
  

If Centuri does not achieve a minimum threshold of its annual net profit before incentives and taxes goal for a Plan Year, the Plan will not
pay any bonuses for such Plan Year. 
 Performance Measures, Weights, and Goals 

 
 The calculation of bonuses payable
under this Plan is based on four performance measures or components: 
  

	 	1.	 Corporate annual pre-tax profit (Appendix I); 

 

	 	2.	 Safety DART (Appendix II); 

 

	 	3.	 Area, Region, and Division Level Targets (Appendix III); 

 

	 	4.	 Individual goals 

At or near the beginning of the Plan Year, or as soon thereafter as practicable, the Centuri executive team will set a Plan Year corporate
profitability goal (on a consolidated basis), as reviewed and approved by the CEO, representing the aggregate pre-tax profit at the Area, Regional and Division levels (Division targets will be set by Division
management, subject to review and approval by the CEO), each of which shall be used for measuring and calculating payout of the profits 

 
component for each level depicted on the appendices (as amended from time to time with regard to any particular Plan Year). 

The safety goal will be based on the American Gas Association (“AGA”) industry days away from work, restricted or transferred
(“DART”) incident rate standard measurement for safety. 
 Attainment of targeted goals from each component comprises one-hundred percent (100%) of the total target incentive opportunity. Metrics and weighting are amended from time to time with regard to any particular Plan Year. 

Plan Description and Template 
  

 
 

 

 

					
	 Performance
	 	Award
	 Excellence
	  	125%	 	170%
	 Target
	  	100%	 	100%
	 Threshold
	  	70%	 	65%
	 Not Qual.
	  	<70%	 	0%
	 Fail Safe
	  	TBD:
 50%
	 	No
Bonus

 

					
	 Performance
	  	Award
	 Excellence
	  	TBD	  	170%
	 Target
	  	1.0	  	100%
	 Threshold
	  	TBD	  	65%

 

					
	 Performance
	  	Award
	 Excellence
	  	5 of 5	  	170%
	 Good
	  	4 of 5	  	120%
	 Target
	  	3 of 5	  	100%
	 OK
	  	2 of 5	  	80%
	 Threshold
	  	1 of 5	  	65%

 
 

 Pre-tax Profit Performance Incentive 

Subject to the above-referenced Fail Safe, the Plan pays for profit achievement if, for the participating employee, no less than 70% of
the profit goal is met at the level applicable to that employee. At 70% achievement, the payout would be 65% of the participant’s target award. Excellence is defined as achievement of 125% of the pre-tax
profit goal with payouts of 170% of the target award. Awards for levels of performance between threshold and excellence are enumerated in the payout tables in this Plan document. 

Safety or Area Performance Index Incentive 

The safety goal will be based on DART. The peer group data will be used as a benchmark for establishing this goal. The target is consistent
annually at 1.0, representing a significantly lower score than the industry peer group. The threshold is set at the 3-year median of scores and the maximum is set at the
3-year average minimum score reported to the AGA by the industry peer group. 
 Individual Goals
Incentives. Individual components of the Plan pay for employee achievement of individual goals set by supervision, ranging from 65% attainment of the individual component if one goal is achieved to 170% if all are successfully achieved.
Individual goals are equally weighted. 

 Payout Table 

Payout Schedule Based on Achievement Level 

 

									
	 Level
	  	Achievement	 	  	Award	 
	 Excellence
	  	 	125%+	 	  	 	170.00%	 
		  	 	124%	 	  	 	167.20%	 
		  	 	123%	 	  	 	164.40%	 
		  	 	122%	 	  	 	161.60%	 
		  	 	121%	 	  	 	158.80%	 
		  	 	120%	 	  	 	156.00%	 
		  	 	119%	 	  	 	153.20%	 
		  	 	118%	 	  	 	150.40%	 
		  	 	117%	 	  	 	147.60%	 
		  	 	116%	 	  	 	144.80%	 
		  	 	115%	 	  	 	142.00%	 
		  	 	114%	 	  	 	139.20%	 
		  	 	113%	 	  	 	136.40%	 
		  	 	112%	 	  	 	133.60%	 
		  	 	111%	 	  	 	130.80%	 
		  	 	110%	 	  	 	128.00%	 
		  	 	109%	 	  	 	125.20%	 
		  	 	108%	 	  	 	122.40%	 
		  	 	107%	 	  	 	119.60%	 
		  	 	106%	 	  	 	116.80%	 

									
	 Level
	  	Achievement	 	  	Award	 
	 Target
	  	 	100%	 	  	 	100.00%	 
		  	 	99%	 	  	 	98.83%	 
		  	 	98%	 	  	 	97.67%	 
		  	 	97%	 	  	 	96.50%	 
		  	 	96%	 	  	 	95.33%	 
		  	 	95%	 	  	 	94.17%	 
		  	 	94%	 	  	 	93.00%	 
		  	 	93%	 	  	 	91.83%	 
		  	 	92%	 	  	 	90.67%	 
		  	 	91%	 	  	 	89.50%	 
		  	 	90%	 	  	 	88.33%	 
		  	 	89%	 	  	 	87.17%	 
		  	 	88%	 	  	 	86.00%	 
		  	 	87%	 	  	 	84.83%	 
		  	 	86%	 	  	 	83.67%	 
		  	 	85%	 	  	 	82.50%	 
		  	 	84%	 	  	 	81.33%	 
		  	 	83%	 	  	 	80.17%	 
		  	 	82%	 	  	 	79.00%	 
		  	 	81%	 	  	 	77.83%	 

 
 

  

									
		  	 	105%	 	  	 	114.00%	 
		  	 	104%	 	  	 	111.20%	 
		  	 	103%	 	  	 	108.40%	 
		  	 	102%	 	  	 	105.60%	 
		  	 	101%	 	  	 	102.80%	 
	 Target
	  	 	100%	 	  	 	100.00%	 

 

									
		  	 	80%	 	  	 	76.67%	 
		  	 	79%	 	  	 	75.50%	 
		  	 	78%	 	  	 	74.33%	 
		  	 	77%	 	  	 	73.17%	 
		  	 	76%	 	  	 	72.00%	 
		  	 	75%	 	  	 	70.83%	 
		  	 	74%	 	  	 	69.67%	 
		  	 	73%	 	  	 	68.50%	 
		  	 	72%	 	  	 	67.33%	 
		  	 	71%	 	  	 	66.17%	 
	 Threshold
	  	 	70%	 	  	 	65.00%	 

 
 

  
 Incentive Calculation Example for
Area Employees 
  
 Example: 

A Plan participant has a Salary of $50,000 and an incentive target of ten percent (10%). Profit achievement was 110% of its net profit goal.
Safety achievement was 135% of the goal, and the participant achieved 4 out of 5 individual goals. 
  

							
	 Step One:
	 	 Calculate target incentive opportunity

		 	 Opportunity
	  	 $50,000 x 10%
	  	 = $5,000

		
	 Step Two:
	 	 Calculate amount for each component

		 	 Profit
	  	 $5,000 x 60% Weight
	  	 = $3,000

		 	 Safety
	  	 $5,000 x 20% Weight
	  	 = $1,000

		 	 Individual
	  	 $5,000 x 20% Weight
	  	 = $1,000

		
	 Step Three:
	 	 See achievement and award percentages on payout tables, given the following
results:

		 	 Profit
	  	 110% Achievement
	  	 = 128% Award

		 	 Safety
	  	 135% Achievement
	  	 = 170% Award

		 	 Individual
	  	 4 out of 5
	  	 = 120% Award

							
				
	 Step Four:
	 	 Calculate total incentive award
	  		  	
		 	 Profit
	  	 $3,000 x 128%
	  	 = $3,840.00

		 	 Safety
	  	 $1,000 x 170%
	  	 = $1,700.00

		 	 Individual
	  	 $1,000 x 120%
	  	 = $1,200.00

		 	 	 
		 	 Total earned
	  		  	 = $6,740.00

		 	 Incentive earned as % of Base Pay
	  	 = 13.48%

 Terms and Conditions 

 
 The following Terms and Conditions are
applicable to all Company employees who for a given Plan Year are eligible to receive a Plan bonus payment. This document supersedes any and all prior or existing Company short term incentive bonus plans, programs, agreements, or contracts. 

This Plan is a statement of compensation guidelines and is not a guarantee to any particular employee that any amount of Plan bonus will be
paid out for any given Plan Year. 
 Expression of Salary or any other form of compensation in terms of an annual period or any other period
shall not be construed as a contract of employment for the duration of the annual period or any other period. 
 TIMING AND FORM OF PLAN PAYMENTS

 Plan bonus payments for a given Plan Year will in all events be paid in a one-time lump sum
payment by the Company, through payroll and subject to all legally-required payroll withholdings, on or before March 15th of the calendar year following the Plan Year in which the Plan bonus payment is earned. Any Plan bonus payment that is payable
with respect to a deceased employee shall be paid to the deceased employee’s estate and/or survivors within thirty (30) days of notice to Centuri of both the death of the employee and the legally-appropriate payee. 

 ENTRY, TRANSFER, AND EXIT FROM THE INCENTIVE PLAN 

If an employee is not eligible at the start of a Plan Year but becomes eligible later, employee will be eligible to receive a prorated portion
of any incentive Plan bonus payment that employee would otherwise earn for the Plan Year, based on the number of days worked while eligible. 

When a Plan participant changes jobs to a position with a different target incentive opportunity, the participant’s incentive
opportunities will be proportionately determined (in a manner determined by the Committee in its discretion) on the basis of days worked in the different positions. However, if an employee is hired into a Plan-eligible position after October 1
of a given Plan Year, or otherwise becomes eligible to participate in the Plan after October 1 of a given Plan Year, the employee will not be eligible to receive a Plan bonus for the current Plan Year. 

Claims or disputes are time-barred under this Plan if not raised within thirty (30) days immediately following termination of Company
employment. 
 NON-PAYMENT AND RECOVERY OF INCENTIVES 

The Company reserves the right to recover, through whatever means it deems appropriate, part or all of any Plan bonus payment that Company
subsequently determines was paid in error. 
 PLAN AMENDMENT AND ADMINISTRATION 

Centuri’s Board of Directors (the “Board”) may, at any time, and in its discretion, alter, amend, modify, suspend or
terminate the Plan or any portion thereof, provided that no such amendment, modification, suspension or termination may be retroactive with regard to any Plan Year. 

The Plan shall be administered by the “Committee” or its express delegate, which shall have the authority to: 

 

	 	(a)	 designate such job positions as may be eligible for participation in the Plan; 

 

	 	(b)	 construe and interpret the Plan and apply its provisions; 

  

	 	(c)	 promulgate, amend, and rescind rules and regulations relating to administration of the Plan; and

  

	 	(d)	 exercise discretion to make any and all other determinations deemed by the Committee as necessary or advisable
for administration of the Plan. 

 Board/Committee determinations need not be uniform and any such determinations may be
made selectively among participants. 
 All decisions by the Board or Committee shall be final and binding upon any participating company or
employee. 
 SECTION 409A 
 It is
intended that the time and form of Plan payments will fit into the short term deferral exception to the application of Code Section 409A. In the event that one or more Plan payments are determined to be subject to Section 409A: 

 

	 	(a)	 Neither Centuri nor any of its affiliates shall be liable for any additional tax, interest or penalties that
may be imposed on a participant as a result of Section 409A or any damages for failing to comply with Section 409A (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A); and

  

	 	(b)	 Notwithstanding any provision in this Plan to the contrary, (i) the Plan shall be interpreted and
administered such that such payment(s) comply(ies) to the fullest extent possible with Section 409A, and (ii) each Plan payment shall be deemed to be a separate and distinct payment for purposes of Section 409A. 

—- END OF PLAN DOCUMENT —-Exhibit

    

Exhibit 10.1

Nasdaq, Inc.  
 
NON-QUALIFIED STOCK OPTION AWARD CERTIFICATE 
                                                    
Grant Date: January 3, 2017    Number of Options Granted: 268,817
Exercise Price per Share: $66.68    Expiration Date: January 3, 2027
Option Type: Non-qualified Stock Option        Vesting Schedule: See below
 
THIS CERTIFIES THAT Nasdaq, Inc. (the “Company”) has on the Grant Date specified above awarded to
ADENA FRIEDMAN
(the “Optionee”) options (the “Options”) to purchase any part or all of an aggregate number of Shares of the Company’s common stock equal to the number of Options granted as indicated above, at a purchase price equal to the Exercise Price indicated above.  The Options are intended to be Non-Qualified Stock Options and not Incentive Stock Options within the meaning of Section 422 of the Internal Revenue Code.
The foregoing grant of Options is subject to the terms and conditions contained in this Award Certificate and the Nasdaq, Inc. Equity Incentive Plan (the “Plan”).  Capitalized terms not otherwise defined have the meanings set forth in the Plan.  A copy of the Plan is available from Human Resources, and is also available on the Company’s website. 
*    *    *    *
		
	1.
	Vesting.  

		
	(a)
	Subject to Section 3 hereof and contingent upon the Optionee’s continued employment with the Company until the applicable vesting date (except as otherwise provided in paragraphs (c) and (d) below) the Options shall vest as follows:

		
	(i)
	33% on December 31, 2017, but only if the 2017 Performance Goal (as defined below) is achieved,

		
	(ii)
	33% on December 31, 2018 but only if the 2018 Performance Goal (as defined below) is achieved, or

		
	(iii)
	Remaining balance on December 31, 2019 but only if the 2019 Performance Goal (as defined below) is achieved.

1

(b)    For purposes of this Award Certificate, the following terms shall have the respective meanings set forth below:
		
	(i)
	“2017 Performance Goal” is achieved if the 2017 Fully Diluted EPS is at least 3% greater than 2016 Fully Diluted EPS.

		
	(ii)
	“2018 Performance Goal” is achieved if (A) the 2018 Fully Diluted EPS is at least 3% greater than 2016, and (B) the 2018 Fully Diluted EPS Growth is at least 3%; or Average Annual 2017 and 2018 Fully Diluted EPS Growth is at least 3%. 

		
	(iii)
	 “2019 Performance Goal” is achieved if (A) the 2019 Fully Diluted EPS is at least 3% greater than 2016, and (B) the 2019 Fully Diluted EPS Growth is at least 3%; or Average Annual 2017, 2018 and 2019 Fully Diluted EPS Growth is at least 3%.

		
	(iv)
	“Annual Fully Diluted EPS Growth” shall be determined based upon the percentage by which the Fully Diluted EPS for the fiscal year of the Company exceeds the Fully Diluted EPS of the prior fiscal year of the Company.

		
	(v)
	“Fully Diluted EPS” shall be determined by the Committee in accordance with the U.S. Generally Accepted Accounting Principles (GAAP) for the Company and in making this determination, the Committee may include or exclude the effect of any one or more of the applicable extraordinary events described in Section 2 of the Plan that may occur during the fiscal year.  The Committee may also decide to include or exclude share buybacks or share issuances in making this determination. 

As used herein, “vested” Options shall mean those Options which (1) shall have become exercisable pursuant to the terms of this Award Certificate and (2) shall not have been previously exercised.
		
	(c)
	If, prior to vesting of the Options under paragraph (a) above the Optionee has a Separation from Service (as defined in the Plan) with the Company or any of its subsidiaries for any reason (voluntary or involuntary)), then such non-vested Options shall be immediately and irrevocably forfeited, except as otherwise provided in Section 6(j)(ii) of the Plan (Separation from Service by reason of death or Retirement) or Section 12 of the Plan (Separation from Service following a Change in Control) but modified to provide a two-year period of protection following a Change in Control.  Following Separation from Service, the Optionee’s vested Options shall remain exercisable for a limited period of time, as set forth in Section 6(j)(ii) or Section 12 of the Plan, as applicable.  Notwithstanding anything to the contrary in the Plan or this Award Certificate, and for purposes of clarity, any Separation from Service shall be effective as of 

2

the date the Optionee’s active employment ends and shall not be extended by any statutory or common law notice period.
		
	(d)
	If, prior to the vesting of the Options under paragraph (a) above the Optionee is determined by the insurance carrier under the Company’s then-current long-term disability plan to be entitled to receive benefits under such plan, and, by reason of such disability, is deemed to have a Separation from Service (within the meaning of the Plan), then an amount of unvested Options shall vest as described on Section 6(j)(iii) of the Plan, and the Optionee’s vested Options shall be exercisable for a limited period of time as described in Section 6(j)(iii) of the Plan. 

		
	2.
	Exercise of the Options.

		
	(a)
	Subject to the provisions of the Plan (including without limitation Section 6(j) of the Plan (Separation from Service) and Section 12 of the Plan (Change in Control)) and this Award Certificate, the Optionee may exercise all or a portion of the vested Options at any time prior to the Expiration Date; provided that Options may be exercised with respect to whole Shares only; and provided further that Options may not be exercised at any one time as to fewer than 100 Shares (or such number of Shares as to which the Options are then exercisable if such number is less than 100).  In no event shall the Options be exercisable on or after the Expiration Date.

		
	(b)
	In accordance with Section 2(a) hereof, the Options may be exercised by delivering to the Company a notice of intent to exercise.  The Optionee shall deliver such notice by such method (whether telephonic, electronic or written) as may be specified by the Committee from time to time.  The date of exercise shall be the date the required notice is received by the Company; provided, however, that if payment in full is not received by the Company as described herein or as otherwise permitted, such notice shall be deemed not to have been received.  Such notice shall specify the number of Shares as to which the Options are being exercised and shall be accompanied by payment in full, or adequate provision therefor, of the Exercise Price and any applicable withholding tax.  

		
	(c)
	The payment of the Exercise Price shall be made in accordance with any process or procedure permitted by the Plan as of the date of exercise, including without limitation payment (i) in cash, or its equivalent, (ii) by exchanging Shares owned by the Optionee for at least six months (which are not the subject of any pledge or other security interest), (iii) by having the Company “net settle” the Shares by withholding from the Shares which would otherwise be delivered to the Optionee such Shares with a Fair Market Value sufficient to satisfy the withholding required with respect thereto as determined by the Committee, (iv) through any broker’s cashless exercise procedure approved by the Committee, or (v) by a combination of the foregoing, provided that the combined value of all cash and cash equivalents and the Fair Market Value of any such Shares so tendered to the 

3

Company as of the date of such tender is at least equal to such Exercise Price and, if applicable, the withholding tax.  Any broker-assisted exercise procedure must comply with all applicable laws at the time of exercise, and the Optionee shall be responsible for all broker fees.  At the time of exercise of the Options, the Optionee shall pay such amount to the Company as the Company deems necessary to satisfy its obligation to withhold federal, state or local income or other taxes incurred by reason of such exercise or make such other arrangements as are acceptable to the Company, all in accordance with the provisions of Section 5 hereof.  The net settlement of shares and the exchange of Shares previously owned and herein specifically authorized alternatives for the payment of the Exercise Price and/or the satisfaction of withholding obligations.
		
	(d)
	Notwithstanding any other provision of the Plan or this Award Certificate to the contrary, no Option may be exercised prior to the completion of any registration or qualification of such Shares under applicable state and federal securities or other laws, or under any ruling or regulation of any government body, national securities exchange, or inter-dealer market system that the Committee shall in its sole discretion determine to be necessary or advisable.

		
	(e)
	As soon as practicable following the Company’s determination that an Option has been validly exercised as to any of the Shares, and the receipt by the Company of payment in full of the Exercise Price (as well as any applicable tax withholding as described in Section 5 hereof), the Company shall make delivery of Shares by either (A) delivering certificates representing such Shares to the Optionee, registered in the name of the Optionee, or (B) depositing such Shares into a stock brokerage account maintained for the Optionee. The Company will not deliver any fractional Shares but will instead round down to the next full number of Shares to be delivered.   The Company shall not be liable to the Optionee for damages relating to any delays in issuing the certificates or in the certificates themselves. 

		
	3.
	No Right to Continued Employment: No Rights as a Shareholder.  Neither the Plan nor this Award Certificate shall confer on the Optionee any right to be retained in any position, as an employee, consultant or director of the Company.  Further, nothing in the Plan or this Award Certificate shall be construed to limit the discretion of the Company to terminate the Optionee’s employment at any time, with or without cause.  The Optionee shall not have any rights as a shareholder with respect to any Shares subject to an Option prior to the date of exercise of the Option.

		
	4.
	Transferability.

		
	(a)
	Except as provided below, the Options are nontransferable and may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Optionee, except by will or the laws of descent and distribution.  Notwithstanding the foregoing, the Optionee may transfer vested Options to members of his or her immediate family (defined as his or her spouse, 

4

children or grandchildren (including children or grandchildren by means of adoption, and stepchildren)) or to one or more trusts for the exclusive benefit of such immediate family members or partnerships in which such immediate family members are the only partners if the transfer is approved by the Committee and the Optionee does not receive any consideration for the transfer.  Any such transferred Options shall continue to be subject to the same terms and conditions that were applicable to the Options immediately prior to transfer (except that such transferred Options shall not be further transferable by the transferee).  No transfer of an Option shall be effective to bind the Company unless the Company shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the transferee of the terms and conditions hereof.
		
	(b)
	In order to comply with any applicable securities laws, the Shares may only be sold by the Optionee following registration under the Securities Act of 1933, as amended, or pursuant to an exemption therefrom.

		
	5.
	Tax Liability and Withholding.  Regardless of any action the Company takes with respect to any or all income tax (including U.S. federal, state and local taxes), social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), the ultimate liability for all Tax-Related Items legally due by the Optionee is and remains the Optionee’s responsibility, and the Company (a) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Options, including the grant of the Options, the vesting of the Options, the exercise of the Options, the subsequent sale of any Shares acquired pursuant to the Options and the receipt of any dividends; and (b) does not commit to structure the terms of the grant or any aspect of the Options to reduce or eliminate the Optionee’s liability for Tax-Related Items.

5

Prior to the delivery of the Shares upon the exercise of the Options, if any taxing jurisdiction requires withholding of Tax-Related Items, the Company may withhold a sufficient number of whole Shares otherwise issuable upon the exercise of the Options that have an aggregate Fair Market Value (as defined under the Plan) sufficient to pay the applicable Tax-Related Items required to be withheld with respect to the Shares.  The cash equivalent of the Shares withheld will be used to settle the obligation to withhold the Tax-Related Items.  No fractional Shares will be withheld or issued pursuant to the grant of the Options and the issuance of Shares hereunder.  Alternatively, the Company may, in its discretion and with the consent of the Optionee, withhold any amount necessary to pay the Tax-Related Items from the Optionee’s salary or other amounts payable to the Optionee, with no withholding in Shares.  In the event the withholding requirements are not satisfied through the withholding of Shares or through the Optionee’s salary or other amounts payable to the Optionee, no Shares will be issued upon exercise of the Options unless and until satisfactory arrangements (as determined by the Committee) have been made by the Optionee with respect to the payment of any Tax-Related Items which the Company determines, in its sole discretion, must be withheld or collected with respect to such Options.  All other Tax-Related Items related to the Options and any Shares delivered in payment thereof are the Optionee’s sole responsibility.
		
	6.
	Securities Laws.  The Company may require, as a condition of the exercise of an Option, that upon the acquisition of any Shares pursuant to the exercise of the Option, the Optionee or the Optionee’s transferee, if applicable, make or enter into such written representations, warranties and agreements as the Company may reasonably request in order to comply with applicable securities laws, with this Award Certificate, or as the Committee otherwise deems necessary or advisable.  The Committee may require that the Optionee, as a condition of the exercise of an Option, execute a stockholders agreement containing terms and conditions generally applicable to some or all of the stockholders of the Company.

		
	7.
	Administration. This Award Certificate shall at all times be subject to the terms and conditions of the Plan.  Capitalized terms not defined in this Award Certificate shall have the meanings set forth in the Plan.  The Committee shall have sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of the Committee with respect thereto and this Award Certificate shall be final and binding upon the Optionee and the Company.  The Committee has the authority and discretion to determine any questions which arise in connection with the grant of the Options hereunder. 

		
	8.
	Code Section 409A.  The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify this Award Certificate as may be necessary to ensure that all grants, vesting and exercises provided under this Award Certificate are made in a manner that is exempt from Section 409A of the Code; provided, however, that the Company makes no representation that the Options provided under this Award Certificate will be exempt from and/or comply with Section 409A of the Code. 

6

		
	9.
	Imposition of Other Requirements. The Company reserves the right to impose other requirements on the Optionee’s participation in the Plan, on the Options and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require, as a condition of the exercise of an Option, the Optionee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. 

		
	10.
	Amendments. The Committee has the right, as set forth in the Plan, to amend, alter, suspend, discontinue or cancel this Award, prospectively or retroactively; provided however, that no such amendment, alteration, suspension, discontinuance or cancelation of the Options will adversely affect Optionee’s material rights under this Award Certificate without Optionee’s consent.  The Company has the authority to amend this Award Certificate, consistent with the foregoing, without the Optionee’s written agreement, except as set forth in this Section 10.

In the event that the Company is reorganized or liquidated, or if all or substantially all of its assets are sold, or if the Company is merged or consolidated with another corporation or entity (or in the event the Company consummates a written agreement to accomplish any of the foregoing), the Committee may, in its sole discretion and upon at least 10 days advance notice to the Optionee, cancel any outstanding Options and cause the Optionee to be paid (in cash or in stock, or any combination thereof) the value of such Options based upon the price per share received or to be received in the transaction.
		
	11.
	Notices.  Any notice, request, instruction or other document given under this Award Certificate shall be in writing and may be delivered by such method as may be permitted by the Company, and shall be addressed and delivered, in the case of the Company, to the Secretary of the Company at the principal office of the Company and, in the case of the Optionee, to the Optionee’s address as shown in the records of the Company or to such other address as may be designated in writing (or by such other method approved by the Company) by either party.

		
	12.
	Option Subject to Plan: Amendments to the Award Certificate.  This Award Certificate is subject to the Plan as approved by the stockholders of the Company.  The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference.  In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of this Award Certificate will govern and prevail.

		
	13.
	Severability.  The invalidity or unenforceability of any provision of the Plan or this Award Certificate shall not affect the validity or enforceability of any other provision of the Plan or this Award Certificate, and each other provision of the Plan and this Award Certificate shall be severable and enforceable to the extent permitted by law.

		
	14.
	Discretionary Nature of Plan; No Vested Rights.  The Plan is discretionary in nature and limited in duration, and may be amended, cancelled, or terminated by the Company, in its 

7

sole discretion, at any time.  The grant of the Options represented by this Award Certificate does not create any contractual or other right to receive an award or benefits in lieu of Options in the future.  Future Awards, if any, will be at the sole discretion of the Company, including, but not limited to, the form and timing of an Award, the number of Shares subject to the Award, and the vesting provisions.  Any amendment, modification or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Optionee’s employment with the Company.
		
	15.
	Electronic Delivery. The Company may, in its sole discretion, decide to deliver any

documents related to the Options or future Awards granted under the Plan by electronic means or request the Optionee’s consent to participate in the Plan by electronic means. By accepting this Option, the Optionee hereby consents and agrees to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

		
	16.
	No Advice Regarding Grant. The Company is not providing any tax, legal or financial 

advice, nor is the Company making any recommendations regarding the Optionee's participation in the Plan, or Optionee's acquisition or sale of the underlying Shares. The Optionee acknowledges that he or she should consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.
		
	17.
	Entire Agreement. This Award Certificate represents the entire understanding and

agreement between the parties with respect to the subject matter of this Award Certificate and supersedes and replaces all previous agreements, arrangements, understandings, rights, obligations and liabilities between the parties in respect of such matters.

		
	18.
	No Impact on Other Benefits.  The value of the Optionee’s Options is not part of the Optionee’s normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.

Nasdaq, Inc.  

 
 
By: /s/ Adena T. Friedman     

8

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