Exhibit 99.1
ECOARK HOLDINGS, INC.
2
01
7
O
MNIB
U
S INCE
N
TIVE
PLAN
ART
I
CLE
1
ESTABLISHMENT, O
B
J
ECTIVES,
AND DURATION
1
.
1
Est
ab
lis
h
me
n
t
o
f t
h
e Plan
. Ecoark Holdings,
I
n
c
.
,
he
r
eby establis
h
es an incentive co
m
p
ensation
plan
t
o be
k
nown as the “Ecoark Holdings,
I
n
c.
20
1
7
O
m
ni
b
u
s
Inc
e
ntive Plan” (herein
a
fter referred
to as the “
Pla
n
”). T
h
e
Plan
p
er
m
its t
h
e
gra
n
ting
o
f N
o
nq
u
alified
Stock O
p
tio
n
s
,
Inc
e
nti
v
e Sto
c
k
Opti
o
n
s
, S
t
o
ck
A
pp
reciation Ri
g
h
ts,
Res
t
ri
cted Sto
c
k,
Restricted S
t
ock Units, Performance Sh
a
res,
Per
fo
r
m
ance
U
n
its
a
n
d Oth
e
r Aw
a
r
d
s.
T
h
e
Plan will bec
o
m
e effective
June
13, 2017 (the
“
Effective Dat
e
”)
if it is
ap
proved by
t
h
e
C
o
m
p
a
ny
’s
sto
ck
ho
l
ders at t
h
e
C
o
m
p
an
y
’s
2
017 a
n
n
u
al
s
t
o
ckh
o
l
d
ers
m
e
eti
ng
.
T
h
e Plan s
h
all re
m
ain
in effect as pro
v
i
d
ed in
Section
1
.
3
her
e
o
f
.
1
.
2
Objectives
of the P
l
a
n
. T
h
e
o
bj
ectives
o
f
t
h
e
Plan are
t
o
op
t
i
m
ize
t
h
e
p
r
o
f
i
ta
b
ility
a
n
d
g
r
owth
of the Co
m
p
any
t
h
rough
i
n
cent
i
ves
t
h
at are co
n
siste
n
t
with the C
o
m
p
a
n
y’s
g
o
als a
n
d t
h
at
li
n
k t
h
e
p
e
rso
n
al
i
n
terests
o
f Partici
p
a
n
ts
to t
ho
se of t
h
e Co
m
p
a
n
y’s
st
o
c
k
ho
l
d
ers.
T
h
e
Plan is f
u
rt
h
er
i
n
ten
d
ed
to
p
r
o
v
i
d
e
fle
x
i
b
ility
to t
h
e Co
m
p
a
n
y
in its abili
t
y to
m
o
ti
v
a
t
e,
attract and retain t
h
e ser
v
i
ces
of Participa
n
ts w
h
o
m
ake
o
r are e
x
pect
e
d
to
m
ake sign
i
ficant
c
on
t
ri
b
u
tions
to
t
h
e C
o
m
p
an
y
’s
success and
t
o allow P
a
rticip
a
n
ts
to sh
a
re
i
n
t
h
e
s
u
ccess of
t
h
e
C
o
m
p
any.
1
.
3
D
u
r
a
tion
o
f the Plan
. No Award
m
ay be gr
a
n
ted
und
e
r
t
h
e
Plan
a
fter the day immediately prec
e
di
n
g
t
h
e
t
enth
an
niv
e
rsa
r
y
of t
h
e
E
ffect
i
v
e
Date, or such earlier date as t
h
e
B
o
ard
s
h
all
d
eter
m
i
n
e.
T
h
e Plan will re
m
ain in effect with res
p
ect
to o
u
tst
a
n
d
ing
Awar
d
s u
n
til
n
o
Awar
d
s re
m
ain
ou
tsta
nd
i
n
g
.
ART
I
CLE
2
DEFI
N
ITI
ON
S
T
h
e f
o
llowing
ter
m
s, w
h
en ca
p
italize
d
,
s
h
all
h
a
v
e
t
h
e
m
ea
n
i
ng
s
set forth
b
e
l
o
w:
2
.
1 “
Aw
ar
d
”
m
ea
n
s, in
d
i
v
i
du
ally
o
r c
o
llecti
v
ely,
N
o
nq
u
alified St
o
ck
O
p
tio
n
s, I
n
ce
n
ti
v
e
St
o
c
k Opti
o
n
s
,
S
t
ock
A
p
p
reciati
o
n
Rights, Res
t
ricted Sto
c
k, R
e
stricted
S
t
ock Units, P
e
rfo
r
m
ance
Sh
a
res, Perfor
m
ance Units, a
n
d
Ot
h
er Aw
a
rds
g
r
a
n
ted
u
nd
e
r
t
h
e
Plan.
2
.
2 “
Aw
ar
d
Ag
re
em
en
t
”
m
eans
a
n
a
g
ree
m
ent
entered
i
n
to by the C
o
m
p
a
n
y
and a Partici
p
a
n
t setti
n
g
f
o
rth
t
h
e
ter
m
s and
pr
ovisi
o
ns
a
pp
lica
b
le to an Award.
2
.
3 “
Beneficial
Own
e
r
s
hip
” s
h
a
l
l
h
a
v
e t
h
e
m
ea
n
ing ascri
b
ed
t
o s
u
ch term in R
u
le
13
d
-3
o
f t
h
e
Ge
n
e
ral
R
u
les and Reg
u
lati
on
s
un
d
er t
h
e E
x
c
h
an
g
e
Act.
2
.
4 “
Boar
d
”
m
eans the
B
o
ard
of Directors of the Co
m
p
any.
2.5 “
Cause
”
means the engaging by a Participant in illegal conduct that, in the sole discretion of the Committee, is materially and demonstrably
injurious to the Company, unless otherwise defined in an agreement between the Participant and the Company.
2
.
6 “
Change
i
n Contro
l
”
m
eans
t
h
at t
h
e
co
ndit
i
ons
set f
o
rth
i
n any one
o
f
t
h
e
f
o
ll
o
w
i
ng
s
ub
sections s
h
all
h
a
v
e
b
een satisfie
d
:
(a) an ac
qu
isition
i
mme
d
iate
l
y
after w
h
ich a
n
y Per
s
on
p
o
ssesses
d
irect or in
d
irect
Be
n
eficial O
w
ne
r
sh
i
p
of 2
5
% or
m
o
re
o
f eit
h
er t
h
e
t
h
e
n outst
a
nd
i
ng
s
h
ares
o
f
C
o
m
p
any
co
m
m
on s
t
ock
(
t
he
“
Outs
t
and
i
ng
C
o
m
p
any
C
o
m
m
on
Stock
”) or t
h
e c
o
m
b
i
n
ed
v
o
ti
n
g power
o
f
t
h
e
t
h
en
o
u
t
sta
nd
i
n
g
v
o
ting sec
u
rities
o
f
t
h
e
C
o
m
p
a
n
y
e
n
titled to v
o
te
g
e
n
erally
in
t
h
e electi
o
n
o
f
d
i
rect
o
r
s
(
t
h
e “
O
u
tstan
d
ing
Co
m
p
a
n
y
V
o
ting Securitie
s
”);
pr
ov
i
ded
t
h
at t
h
e f
o
llowing
ac
qu
isitio
n
s s
h
all
b
e e
x
c
l
u
d
e
d
:
(i) a
n
y acq
u
isiti
o
n
d
irectly from t
h
e C
o
m
p
any,
o
t
h
e
r
t
h
an an ac
qu
isition
b
y
v
irt
u
e
of t
h
e exercise of a con
v
ers
i
o
n
pri
v
ile
g
e
un
less
t
h
e sec
u
rity
b
e
i
n
g
so c
o
n
v
erted was itself ac
qu
i
red
d
irectly fr
o
m t
h
e
Co
m
p
a
n
y,
(ii) a
n
y acq
u
isiti
o
n
b
y t
h
e C
o
m
p
a
n
y,
(iii) a
n
y acq
u
isiti
o
n
b
y a
n
y e
m
p
l
o
y
ee
b
e
n
e
fit
p
l
an (or related tr
u
st)
s
p
o
n
s
o
red
or mai
n
tai
n
ed
b
y
t
h
e C
o
m
p
a
n
y
or a Su
b
si
d
iary,
o
r
(iv) a
n
y acq
u
isiti
o
n
p
u
rs
u
a
n
t
t
o a
t
r
a
n
saction
t
h
at c
o
m
p
lies
with
p
ara
g
rap
h
s
(
i
), (ii) and (iii)
o
f s
u
bsecti
o
n
(c)
o
f t
h
is
Section
2
.
6
;
or
(
b
) d
u
ri
n
g
a
n
y per
i
od
o
f
t
wo c
o
n
s
ecuti
v
e
y
ea
r
s,
t
h
e
i
n
div
i
d
u
als
w
h
o, as of t
h
e beg
i
nn
i
ng
o
f
s
u
ch
per
i
o
d
,
c
onsti
t
ute
t
h
e
B
o
a
r
d
(
su
c
h B
o
ar
d
s
h
a
ll
be h
e
rei
n
a
ft
e
r
r
e
fe
r
r
e
d
to as t
h
e “
I
n
c
u
m
bent
B
o
a
rd
”) cea
s
e
for
a
n
y reason
t
o
c
o
nstit
u
te at least a ma
jo
rity
of
t
h
e B
o
a
r
d
;
p
r
o
v
ided
t
h
at f
o
r p
u
r
po
s
es
o
f
t
h
is
Secti
o
n
2
.
6
,
a
n
y indiv
i
dual
w
h
o be
c
o
m
es
a
m
e
m
b
er
of
t
h
e B
o
a
r
d
s
u
bs
eq
uent
t
o
t
h
e be
g
inni
n
g
o
f
s
u
ch
per
i
od a
n
d
wh
ose
electi
o
n,
o
r
n
o
m
ination
f
o
r electi
o
n by t
h
e
C
o
m
p
an
y
’s
sh
a
re
h
old
e
rs,
was
ap
p
r
ov
e
d
by a vote
o
f at least two-
t
h
i
rd
s
o
f t
h
ose i
n
di
v
iduals
w
h
o are
m
e
m
b
ers
of the Bo
a
rd and who were al
s
o
m
e
m
b
ers
of
t
h
e In
c
u
m
b
ent
B
o
a
r
d (
o
r
de
em
ed to be
s
u
c
h
p
u
r
s
u
a
nt
to t
h
is
p
r
o
v
i
s
o)
s
h
all be
co
nsi
d
e
red
as t
ho
u
g
h
s
u
ch i
n
divi
d
u
al
were a
m
e
m
b
er
of
t
h
e In
c
u
m
b
ent
B
o
a
r
d;
p
r
ov
i
de
d
,
furt
h
e
r,
t
h
at
any s
u
ch in
d
i
v
i
d
u
al
wh
o
se
i
n
itial
ass
u
m
p
ti
o
n
o
f office
o
cc
u
rs
as a res
u
lt of
e
it
h
er
an act
u
al or threate
n
ed election
c
onte
s
t
or o
t
her ac
t
u
a
l
or t
h
reat
e
n
e
d
solicitation
o
f p
ro
x
ies
o
r
co
n
s
ents
by
o
r on
b
ehalf of a P
e
r
s
on
o
t
her than
t
h
e
B
o
ard shall not be
s
o
c
o
n
s
i
d
er
e
d
a
s a
m
e
m
b
er
of
t
h
e Incu
m
b
ent
Board; or
(c) co
n
su
m
m
ation
of a r
eo
rg
a
niz
a
tion,
m
erge
r
,
s
h
are
ex
c
h
a
ng
e
,
c
o
n
s
oli
d
ati
o
n
or sale
o
r oth
e
r
d
isp
o
siti
o
n
of all
o
r su
b
sta
n
t
i
ally
all
o
f t
h
e assets of t
h
e
Co
m
p
a
n
y
(“
C
o
rp
o
rate Tra
n
sacti
on
”
);
e
x
cl
u
d
in
g
,
h
o
w
e
v
e
r,
su
c
h a
C
o
rp
or
a
te
Tra
n
sacti
o
n p
u
r
s
uant
t
o w
h
ich:
(i) all
o
r
su
b
sta
n
t
i
ally
all
o
f t
h
e
i
nd
i
v
id
u
als
a
n
d e
n
tities who
h
a
v
e
Be
n
eficial Ow
n
ers
h
i
p
,
res
p
ecti
v
ely, of t
h
e
O
u
tstan
d
i
n
g
C
o
m
p
a
n
y
C
o
m
m
o
n
St
o
ck a
n
d O
u
tstan
d
ing
C
o
m
p
a
n
y
Voti
n
g Securities
i
mme
d
i
ately
p
ri
o
r
t
o
s
u
ch Cor
p
orate Tra
n
sacti
o
n
will
h
a
v
e
B
e
n
eficial Ow
n
ers
h
ip,
d
irectly
o
r in
d
irectly,
of
m
o
re t
h
an
5
0
% of, re
s
p
e
c
ti
v
el
y
,
t
h
e out
s
tandi
n
g
sh
a
res of co
m
m
on
st
o
ck
a
n
d
t
h
e
c
o
m
b
i
n
e
d
voti
n
g
p
o
w
e
r
of t
h
e
t
h
e
n
ou
tsta
nd
i
n
g
voti
n
g sec
u
rities e
n
titled
to v
o
te
g
e
n
erally
in
t
h
e electi
o
n
o
f
d
i
rect
o
r
s,
as t
h
e case
m
ay
b
e,
of t
h
e co
rp
orati
o
n
re
s
u
lting f
r
om
su
c
h
C
o
r
p
o
rate
Tr
ansacti
o
n (
i
nc
l
ud
i
n
g
,
wit
h
o
u
t
l
i
m
itation, t
h
e
C
o
m
p
any
or a co
rp
orati
o
n that as a re
s
u
lt
of su
c
h
t
ransa
c
tion
owns the Co
m
p
any or all
o
r
su
b
sta
n
tially all
o
f
t
h
e Co
m
p
a
n
y’s
assets eit
h
er
d
irectly
o
r
thro
u
g
h o
n
e
o
r
m
o
re
su
b
s
i
d
iaries)
(t
h
e “
Res
u
lti
n
g
C
o
rp
o
ratio
n
”)
in s
ub
sta
n
tially t
h
e
sa
m
e
p
r
o
p
o
rtio
n
s
as t
h
eir o
w
ne
r
sh
i
p,
i
m
m
ediately
p
ri
o
r
to su
c
h C
o
r
p
o
rate
T
ra
n
saction,
o
f
t
h
e Outst
a
nd
i
ng
C
o
m
p
any
C
o
m
m
on
Stock a
n
d O
u
tsta
nd
i
n
g
C
o
m
p
a
n
y
V
o
ting Securities, as t
h
e case
m
ay
b
e;
(ii) no P
e
rs
o
n
(
o
t
h
er
th
a
n (
1
)
t
h
e
Co
m
p
an
y
,
(
2
) an e
m
plo
y
ee
b
enefit plan
(
o
r
related t
r
ust) s
p
o
n
s
o
red
or mai
n
tai
n
ed
b
y
t
h
e C
o
m
p
a
n
y
or Res
u
lti
n
g
C
o
rp
o
ratio
n
,
or (3) a
n
y e
n
tity co
n
tr
o
lled
b
y t
h
e C
o
m
p
a
n
y
o
r Res
u
lti
n
g
C
o
rp
o
ratio
n
)
will ha
v
e Be
n
eficial Ow
n
ers
h
i
p
,
d
ire
c
tly
o
r
in
d
irectly,
o
f 2
5
%
o
r
m
o
re
o
f, res
p
ecti
v
ely,
t
h
e outst
a
nd
i
ng
s
h
ares of co
m
m
on
s
t
ock
o
f t
h
e
Resulting
C
o
rp
orati
o
n
or t
h
e
c
o
m
b
i
n
ed
vot
i
n
g p
o
w
e
r
of
t
h
e outst
a
nd
i
ng
vo
ting securities of t
h
e Res
u
l
ti
n
g
C
o
r
p
oration
e
n
titled to vote
g
e
n
e
rally
in t
h
e electi
o
n of
d
irectors,
e
x
ce
p
t to
t
h
e
e
x
te
n
t that s
u
ch
o
w
n
e
rs
h
i
p
existed prior to the C
o
rp
o
rate Tra
n
sactio
n
;
and
(iii) i
nd
i
v
i
du
als
who were
m
e
m
be
rs
o
f
t
h
e
I
n
c
u
m
b
e
n
t
B
o
ard will c
on
tin
u
e
t
o c
on
stit
u
te
at least a
m
a
jo
rity
o
f
t
h
e
m
e
m
b
ers
o
f t
h
e b
o
ard
o
f
d
irec
t
o
rs
of t
h
e Res
u
lting C
o
r
p
oratio
n
;
or
(
d
) t
h
e
a
pp
r
o
v
al
b
y
t
h
e sto
ck
ho
l
d
ers
of t
h
e
C
o
m
p
any
o
f
a
c
o
m
p
lete
liqu
i
dati
o
n or dis
s
oluti
o
n
of t
h
e C
o
m
p
a
n
y.
2
.
7 “
Code
”
m
eans the Internal R
e
venue
C
o
de
of 1986,
a
s a
m
ended
f
rom
ti
m
e to ti
m
e.
2
.
8 “
Committe
e
”
mea
n
s t
h
e e
n
tity,
as s
p
ecified in
Section
3
.
1
,
a
u
th
o
rized to a
d
m
i
n
ister
t
h
e Pla
n
.
2
.
9 “
Co
m
pan
y
”
m
eans Ecoark Holdings, Inc.,
a
n
d
any su
c
cessor th
e
reto.
2
.
10 “
Con
s
ultant
”
means any natural person that is a
c
onsultant or
ad
vi
s
o
r
to
t
h
e Co
m
p
any
or a Subs
i
d
iary.
2
.
1
1 “
Directo
r
”
m
eans
a
n
y
indiv
i
dual who is a m
e
m
b
er
of
t
h
e
B
o
ard
of D
i
rectors of
t
h
e
C
o
m
p
any
or a Su
b
si
d
iary.
2.12 “
Disability
”
means an individual: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months; or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement
benefits for a period of not less than three (3) months under an accident and health plan covering employees or directors of the
Company. Medical determination of Disability may be made by either the Social Security Administration or by the provider of an
accident or health plan covering Employees or Directors of the Company provided that the definition of “disability”
applied under such disability insurance program complies with the requirements of the preceding sentence. Upon the request of
the plan administrator, the Participant must submit proof to the plan administrator of the Social Security Administration’s
or the provider’s determination.
2
.
1
3
“
Di
v
i
d
end
Equi
v
a
le
n
t
”
m
eans, with re
s
p
ect
t
o Sh
a
res
su
bj
e
ct
to an Award, a rig
h
t to
b
e paid an a
m
ount
eq
ual
t
o t
h
e
d
i
vid
en
d
s
declar
e
d
an
d
p
aid
o
n
a
n
eq
ual
n
u
m
b
er
o
f ou
t
stand
i
ng
S
h
ar
e
s.
2
.
1
4 “
Effective
Da
t
e
” shall have the
m
eaning
a
s
crib
e
d to su
c
h
t
erm in
Section 1.1
her
e
o
f
.
2
.
1
5 “
E
m
p
loyee
”
means
a
n
y e
m
ployee
of
t
h
e Co
m
p
any
or a Subsidiary.
2
.
1
6 “
Ex
c
ha
n
g
e
Ac
t
”
m
ea
n
s
t
h
e Sec
u
rities E
x
c
h
a
ng
e
Act of
1
93
4
, as a
m
e
nd
ed
fr
o
m t
i
me to time.
2
.
1
7 “
E
x
ercise
Pric
e
”
m
eans the price at which
a Sh
a
re
m
ay be
p
u
rc
h
ased
b
y a Partici
p
a
n
t
purs
u
a
n
t to an O
p
tio
n
.
2
.
1
8 “
Fair
Market Value
”
m
eans the fair
m
arket
value of a Sh
ar
e as
d
eter
m
i
n
ed
in go
o
d faith
b
y t
h
e
C
o
mm
ittee or p
u
r
s
uant
t
o a
p
roc
ed
ure
speci
f
ied in
g
o
o
d
faith
b
y t
h
e
C
o
mmi
t
tee;
p
ro
v
i
d
e
d
,
h
o
we
v
e
r,
t
h
at if t
h
e
Committee has not
s
p
ecified otherwise,
Fa
i
r Market Value shall
m
ean (a), if the
Company’s shares are listed on the NASDAQ Stock Market, the closing price of a Share as reported on the NASDAQ Stock Market
or (b) if the Company’s shares are not listed on the NASDAQ Stock Market, but are listed on a different national securities
exchange or are quoted on the OTC Markets, the closing price of a Share as reported on such other national securities exchange
or the OTC Markets, as applicable.
2
.
1
9 “
Freestanding
SA
R
”
m
eans
a
n
S
AR
t
h
at
is
g
rant
e
d i
n
d
e
pe
n
d
ently
o
f
a
n
y
Opti
o
n
s
, as de
s
crib
e
d
in
Article 7
h
e
re
i
n
.
2
.
20
“
I
n
ce
n
ti
v
e
Stock O
p
tio
n
” or “
ISO
”
m
eans an Option
t
h
at
i
s intend
e
d to meet t
h
e
req
u
ireme
n
ts
o
f
Code Secti
o
n
4
2
2
.
2
.
21
“
Non
qu
alified
St
o
ck O
p
tio
n
”
or “
NQSO
”
m
eans
a
n
Option that is not
i
n
tend
e
d
t
o
m
eet the req
u
ire
m
e
n
ts
of Co
d
e Secti
o
n 4
2
2.
2
.
2
2 “
O
p
tio
n
”
m
eans an Incentive Stock Opti
o
n or a N
o
nq
u
alified
S
t
o
ck O
p
tion
gra
n
ted
u
n
d
er
t
h
e Plan, as des
c
rib
e
d
i
n
Article 6
here
i
n
.
2
.
2
3 “
Oth
e
r
Aw
a
rd
”
m
eans a cash, Sh
a
re-bas
e
d
or Sh
a
re-relat
e
d Aw
a
rd
(
o
t
h
e
r
t
h
an an
A
w
a
rd
descr
i
bed in
A
rticle
6,
7
,
8,
9
o
r
1
0
of the Plan) t
h
at is
g
ra
n
ted
p
u
rs
u
a
n
t
to
Article
1
1
h
e
rein.
2
.
2
4 “
Participan
t
”
m
eans a
c
u
r
re
n
t
or
f
o
r
m
er
E
m
plo
y
ee, Direc
t
or
o
r
C
on
s
ultant
wh
o has ri
g
h
ts
relati
n
g to an o
u
tstan
d
i
n
g
Awar
d
.
2
.
2
5 “
Perfor
m
ance-Based
E
x
c
e
ptio
n
”
m
eans the perfor
m
ance-based e
x
ce
p
ti
o
n
fr
o
m t
h
e tax
d
ed
u
cti
b
ility
l
i
mit
a
ti
on
s
o
f C
od
e Section
1
6
2
(
m
).
2
.
2
6 “
Perfor
m
ance
Period
”
m
eans the p
e
riod dur
i
ng
which a pe
r
f
o
r
m
ance
m
easure
m
u
st
be
m
e
t.
2
.
2
7 “
Perfor
m
ance
Sh
a
re
”
m
ea
n
s
an Award
g
ranted to a Partici
p
a
n
t,
as
d
escri
b
ed in
Article 9
here
i
n
.
2
.
2
8 “
Perfor
m
ance
Unit
”
m
eans
a
n Aw
a
rd
gr
a
n
ted to a P
a
rti
c
ipa
n
t,
as
d
escri
b
e
d
in
Article 10
here
i
n
.
2
.
2
9 “
Period
of Re
s
trictio
n
”
m
eans
the per
i
od Re
s
tricted Sto
c
k
or Restricted S
t
ock Units are
s
u
bject
to a su
b
sta
n
tial r
i
sk
o
f f
o
rfeit
u
re
and are
no
t tra
n
sfera
b
le,
as pr
ov
i
d
ed
in
Articles 8
an
d
9
he
r
ei
n
.
2
.
30
“
Per
s
on
”
s
h
all
h
a
v
e
t
h
e
m
ea
n
i
n
g
ascr
i
b
ed to s
u
ch
term in Secti
o
n
3
(a)(
9
)
o
f t
h
e E
x
c
h
ange
Act a
n
d
u
s
e
d
i
n
Section
s
1
3
(
d
)
a
n
d
1
4
(
d
)
t
h
e
r
eo
f.
2
.
31
“
Replace
m
ent
Aw
a
rds
”
m
ea
n
s
Awar
d
s iss
u
ed in s
ub
stit
u
tion
o
f awards
g
r
a
n
ted
u
nd
e
r e
qu
ity-
b
ased
ince
n
ti
v
e
p
la
n
s
s
p
o
n
s
o
red
or mai
n
tai
n
ed
b
y
an e
n
tity with which t
h
e
C
o
m
p
a
n
y
en
g
a
g
es
i
n a
m
er
g
er,
ac
qu
isition
o
r
o
t
h
e
r
bu
s
i
n
ess
tra
n
sactio
n
, purs
u
a
n
t
to w
h
ich awar
d
s relati
n
g
to
i
n
terests
i
n
s
u
ch e
n
tity (
o
r
a related e
n
tity) are o
u
tsta
nd
ing
im
m
e
d
iately
p
ri
o
r
to s
u
ch
m
er
g
er,
a
c
qu
isition
o
r
o
ther
bu
s
i
n
ess
t
ra
n
sactio
n
.
For all
p
u
rp
o
ses
her
eu
nd
e
r, R
ep
lace
m
ent
Aw
ar
d
s
s
h
all
be de
em
ed
A
wa
r
ds.
2
.
3
2
“
Restricted
Stoc
k
”
m
ea
n
s
an Award gra
n
ted to a Partici
p
ant, as
d
escr
i
b
ed
in
Article 8
h
er
ei
n
.
2
.
3
3 “
Restricted
Stock U
n
i
t
”
m
eans
an Award gr
a
n
ted
t
o
a Parti
c
i
p
a
n
t,
as
d
escr
i
b
ed
in
Article 9
here
i
n
.
2
.
3
4 “
Sh
a
r
e
”
m
eans a
s
h
are
c
o
mmon sto
c
k
of the Co
m
p
any, par val
u
e
$
0
.00
1
p
e
r
s
h
ar
e
,
s
u
b
j
ect
to adj
u
st
m
ent p
ur
su
a
nt
to
Secti
o
n 4
.
3
her
e
o
f
.
2
.
3
5 “
Stock
Appre
c
iation Righ
t
” or
“
SAR
”
m
eans an Award gr
a
n
ted
t
o a Parti
c
ipant, ei
t
h
er
a
l
one or
i
n c
o
n
n
ection
with a related O
p
ti
on
, as
d
escribed
in
Article 7
here
i
n
.
2
.
3
6 “
Subsidiar
y
”
means any
c
o
rporation in wh
i
ch
t
h
e C
o
m
p
any
o
w
n
s,
d
i
rectly
o
r
in
d
irectly, at least fifty
p
e
rce
n
t
(5
0
%) of
t
h
e
t
o
tal c
o
m
b
i
n
ed
v
o
ti
n
g p
o
wer
o
f all classes of s
t
oc
k
,
or a
n
y
o
t
h
e
r
e
n
tity (i
n
cludi
ng
,
b
u
t
no
t l
i
mited
t
o
,
p
ar
t
n
ers
h
ips
a
n
d joi
n
t
v
e
n
tures)
in w
h
ich
t
h
e
C
o
m
p
a
n
y
o
w
n
s,
directly
o
r
i
nd
irectly,
at least fifty
p
erce
n
t (
5
0
%
)
of
t
h
e
c
o
m
b
i
n
ed
e
qui
t
y t
h
er
e
o
f.
N
o
t
wit
h
sta
n
di
n
g
t
h
e f
o
re
g
o
i
n
g,
f
o
r
p
u
rp
oses
o
f deter
m
i
n
ing
w
h
eth
e
r
a
n
y
i
nd
i
v
i
du
al
m
ay
b
e a
Pa
r
tici
p
a
n
t
f
o
r
pu
r
p
o
se
s
o
f
a
n
y
g
r
a
n
t
o
f
I
n
c
e
nti
v
e
S
t
o
ck Opti
o
n
s
,
“
S
ubs
i
d
iar
y
”
s
h
a
l
l
have t
h
e meaning
a
scr
i
b
ed
to
s
u
ch t
e
rm
in
C
ode Secti
o
n 4
24
(
f
).
2
.
3
7 “
Tandem
SA
R
”
m
ea
n
s
an SAR t
h
at is gra
n
ted in con
n
ection
with a related O
p
tio
n
, as
d
e
scri
b
e
d
in
Article 7
h
e
re
i
n
.
ART
I
CLE
3
A
D
M
I
NIS
T
R
ATI
O
N
3
.
1
T
h
e
C
o
mmitte
e
.
T
h
e Pl
a
n
s
h
all be
a
d
m
inistered
by t
h
e
C
o
mpensation
Committee of
t
h
e
B
o
ard
or s
u
ch
o
t
h
er
c
o
m
m
i
t
tee
as t
h
e
B
o
ard
s
h
all select (t
h
e “
C
o
mmitte
e
”).
3
.
2
A
u
th
o
rity
o
f the Committe
e
. E
x
ce
p
t
as limit
e
d
b
y law or
b
y
t
h
e Certificate
o
f I
n
cor
p
oration
o
r Bylaws of t
h
e C
o
m
p
a
n
y,
and s
u
b
j
ect
t
o
t
h
e pro
v
isio
n
s
h
ere
i
n
,
t
h
e
C
o
mmi
tt
ee
s
h
all
h
a
v
e
f
u
ll p
o
wer
t
o
select t
h
e E
m
plo
y
ees,
Directo
r
s
a
n
d
C
o
nsult
a
nts
wh
o
shall p
a
rtici
p
ate in t
h
e
Pla
n
; determi
n
e t
h
e
s
i
zes and ty
p
es of Awar
d
s;
deter
m
i
n
e t
h
e
ter
m
s and
c
o
n
d
i
tions
of
A
w
a
r
d
s
in a
m
anner
c
on
siste
n
t
with t
h
e Pla
n
; co
n
str
u
e
a
n
d i
n
ter
p
ret
t
h
e Plan and any Award Agree
m
e
n
t
o
r
o
t
h
e
r
a
g
ree
m
e
n
t
or
i
n
str
u
m
e
n
t
e
n
tered i
n
t
o
i
n c
o
n
n
ection
with t
h
e Pla
n
; esta
b
lis
h
,
a
m
end,
o
r wai
v
e
rules
an
d r
e
gulati
o
ns
f
o
r
t
h
e
Pla
n
’s
a
d
m
i
n
istration;
a
n
d
,
s
u
b
j
ect
to t
h
e
pr
ovis
i
ons
o
f
Se
c
tion 1
9
.3
h
ere
i
n
,
a
m
e
n
d t
h
e
ter
m
s a
n
d c
o
n
d
iti
o
ns
o
f any
ou
tsta
nd
i
n
g
Award a
n
d Award A
g
ree
m
e
n
t.
F
u
r
t
h
er,
t
h
e
C
o
mmi
t
tee
shall
m
ake all oth
e
r deter
m
i
n
ations
t
h
at
m
ay
be necess
a
ry
o
r
a
dvis
a
ble
f
o
r t
h
e
ad
m
inistration
o
f t
h
e
Pla
n
. As
p
er
m
itted
b
y law,
t
h
e
C
o
mmi
t
tee
m
ay
d
ele
g
a
te
its a
u
th
o
rity as i
d
e
n
tified
h
e
rei
n
.
3
.
3
Decisions
B
i
nding
. All deter
m
i
n
ations
a
n
d d
e
cisions
m
ade
b
y t
h
e C
o
m
m
ittee
p
u
r
s
u
a
nt
to
t
h
e
p
r
o
v
isi
o
ns
o
f
t
h
e
Plan a
n
d all related
o
r
d
e
rs
a
n
d res
o
l
u
tio
n
s
o
f t
h
e B
o
a
rd
s
h
all be final,
c
onc
l
u
sive
a
n
d bi
n
d
i
n
g
on all Per
s
on
s
,
i
n
cl
ud
ing
t
h
e
C
o
m
p
an
y
,
its
Su
bsi
d
i
a
ries,
its sto
ckh
o
l
d
e
rs,
Direc
t
o
rs, E
m
plo
y
ees,
C
o
nsultants
a
n
d
t
h
eir estates and b
e
neficiaries and
a
n
y
tr
a
n
sf
e
ree
of
a
n Aw
a
rd.
ART
I
CLE
4
SHARES SUB
J
ECT
TO
T
HE
PLA
N;
IN
DI
VIDU
AL
LI
MI
TS;
A
N
D
A
NTI
-D
ILUTI
O
N
A
D
J
U
STM
E
NTS
4
.
1
N
u
m
b
er
of S
ha
res A
v
ailable
f
o
r
G
r
ants
.
(a) Subject
t
o
ad
just
m
ent
as pro
v
i
d
ed
in
Section
4
.
3
here
i
n
,
t
h
e
m
axi
m
u
m
nu
m
ber
o
f
S
h
a
res
t
h
at
m
ay
be deli
v
er
e
d
p
u
r
s
u
a
nt
to
A
w
a
rds
un
d
er
t
h
e
Pla
n
s
h
al
l
b
e
four million (4,000,000)
S
h
a
r
es
;
p
r
o
v
i
d
e
d
t
h
at:
(i) S
h
ares
t
h
at are
po
te
n
tially
d
eli
v
era
b
le
u
n
d
er
an Aw
ar
d gr
an
ted
un
d
er
the Plan that is ca
n
celed, forfeite
d
, settled
in cas
h
, ex
p
ires or is
o
t
h
e
rwise
t
er
m
i
n
ated
with
ou
t
d
eli
v
ery
of
s
u
c
h
S
h
are
s
shal
l
no
t
b
e
counted as h
a
ving be
e
n deliv
e
red
under
t
h
e Plan.
(ii) S
h
ares
t
h
at
h
a
ve
b
een iss
u
ed in c
o
n
n
ection
with an Award of Res
t
ricted S
t
ock that
is ca
n
celed or forfeited
p
rior
t
o
v
esting
o
r settled in cas
h
,
cau
s
i
n
g t
h
e
S
h
ares to
b
e ret
u
r
n
ed
to t
h
e
C
o
m
p
any,
s
h
all
no
t be
c
o
u
n
ted
as hav
i
ng be
e
n d
e
li
v
ered
un
d
er
t
h
e
Pl
a
n
.
If S
h
ares
are ret
u
r
n
ed to
t
h
e
C
o
m
p
a
n
y
in sat
i
sfacti
o
n of taxes relati
n
g
to Restricted S
t
o
ck, in co
n
n
ecti
o
n
with a c
a
sh
o
u
t
of Restricted Sto
c
k (
b
ut
e
x
cl
u
d
i
n
g
u
po
n f
o
rfeit
u
re
of Res
t
ricted S
t
oc
k
)
or in c
o
n
n
ection with t
h
e
ten
d
er
i
n
g
of S
h
a
r
es
b
y
a Partici
p
a
n
t in satisfact
i
on
of the
E
x
ercise Price or taxes re
l
a
ti
n
g
t
o
a
n Aw
a
r
d
,
s
u
c
h
is
s
u
e
d
S
h
ar
e
s
sh
a
l
l
no
t
b
e
c
o
m
e
a
v
a
il
a
b
le
a
g
ain
u
nd
e
r
t
h
e Pl
an
.
Ea
c
h
S
AR
i
s
s
u
ed
u
n
d
e
r
t
h
e Plan will
b
e c
o
u
n
ted
as o
n
e s
h
are iss
u
ed
un
d
er the Plan with
ou
t re
g
a
rd
to
t
h
e n
u
m
b
er
of S
h
ares iss
u
ed to
t
h
e
Partici
p
a
n
t
u
pon
e
x
ercise of such SAR.
Sh
a
res deli
v
er
e
d
p
u
r
s
uant
t
o
t
h
e Pl
a
n
m
ay be authorized b
u
t u
n
iss
u
ed
S
h
ar
es, trea
s
ury
Shares or Sh
a
res p
u
r
c
ha
s
ed
on t
h
e
o
p
en
m
arket.
(
b
) Subject
t
o
ad
just
m
ent
as pro
v
i
d
ed
in
Section
4
.
3
h
ere
i
n
,
four million (4,000,000)
S
h
a
r
e
s
m
a
y
b
e
d
e
li
v
e
r
e
d
in
c
o
n
n
ection
with “f
u
ll
v
al
u
e
Awar
d
s,”
m
eaning
A
wa
r
ds
o
t
h
er t
h
a
n
O
p
ti
o
n
s,
S
ARs,
o
r Other
A
wa
r
ds
f
o
r
w
h
ich
t
h
e Partici
p
a
n
t
p
a
y
s t
h
e
g
ra
n
t
d
ate
i
n
tri
n
sic
v
a
l
u
e.
(c) No
t
wit
h
sta
n
d
i
ng
t
h
e
f
o
r
e
go
i
n
g
,
f
o
r
p
u
rp
oses
o
f deter
m
i
n
ing
t
h
e
n
u
m
b
er
o
f
S
h
ar
e
s
a
v
ailable
f
o
r
gr
a
n
t as
I
n
cen
t
ive
Sto
c
k
O
p
tion
s
,
only Sh
ar
es t
h
at are
s
u
b
ject
to an
A
w
ar
d t
h
at
ex
pires
o
r is c
a
ncelled,
f
o
r
feited
or settled in cash s
h
all
b
e treated as
no
t
h
a
v
ing
b
een iss
u
ed un
d
er
t
h
e Pla
n
.
4
.
2
I
n
divi
d
ual
Li
m
its
. Sub
j
ect to a
d
j
u
st
m
e
n
t
as
p
r
o
v
i
d
ed
in
Secti
o
n
4
.
3
here
i
n
,
t
h
e
foll
o
wi
n
g rules shall a
p
ply
wi
t
h respect
t
o
A
wa
r
ds
an
d
a
n
y
related divid
en
d
s or D
i
vid
e
nd
E
q
uival
e
nts i
n
tend
e
d
to
q
u
al
i
fy
f
o
r t
h
e
Perfor
m
ance-Based
E
x
c
e
ption:
(a)
O
p
tio
n
s
:
The maxi
m
u
m aggregate nu
m
b
er
of Shares with res
p
ect
t
o w
h
ich
O
p
tio
n
s
m
ay
b
e
g
ra
n
ted
in a
n
y
on
e fiscal year to a
n
y
o
n
e Par
t
ici
p
a
n
t
s
h
all
b
e
four
hundred thousand (400,000)
S
h
ares.
(
b
)
SARs
:
The
m
a
xi
m
u
m
aggr
eg
ate nu
m
ber of Sh
a
res
with re
s
p
ect to
w
h
ich
Stock
Ap
prec
i
ation Ri
gh
ts
m
ay
b
e
g
ra
n
ted
in a
n
y
on
e fiscal year to a
n
y
o
n
e Par
t
ici
p
a
n
t
s
h
all
b
e
four
hundred thousand (400,000) S
h
a
r
e
s.
(c)
Restricted
S
t
o
c
k
:
The
m
axi
m
u
m
aggr
e
g
ate nu
m
ber
of
S
h
a
res
of Restricted S
t
ock t
h
at
m
ay
be
g
ra
n
ted in a
n
y
on
e fiscal year to a
n
y o
n
e
Par
t
ici
p
a
n
t
s
h
all
b
e
four
hundred thousand (400,000)
S
h
ares.
(
d
)
Restricted
S
t
o
c
k Unit
s
:
The maxi
m
u
m aggregate nu
m
b
er
of Shares with respect
t
o whi
c
h Restricted
Sto
c
k Units
m
ay be grant
e
d
in any one fiscal year to a
n
y o
n
e Partici
p
a
n
t
s
h
all be
four hundred thousand (400,000)
S
h
ares.
(e)
Perfo
r
m
a
nce
S
ha
r
es
:
T
h
e
m
axi
m
u
m
aggr
eg
ate nu
m
ber of Sh
a
res
with re
s
p
ect to
w
h
ich
Perfor
m
ance Shares
m
ay be grant
e
d
in any one fiscal year
t
o
a
n
y
one P
a
rt
i
ci
p
a
n
t
s
h
all
b
e
four
hundred thousand (400,000)
S
h
ares.
(
f
)
Perfo
r
m
a
nce
Units
:
T
h
e
m
axi
m
u
m
aggr
eg
ate co
m
p
ensati
o
n
t
h
at c
a
n be paid
p
u
r
s
u
a
nt
to Perfor
m
ance Units aw
a
rd
e
d
i
n
any one fiscal year to
a
n
y one
Partici
p
a
n
t shall
b
e
$
1
,0
0
0
,
0
0
0
or a n
u
m
b
er
of S
h
ares hav
i
ng an a
ggr
egate
Fair
M
a
r
k
et
Va
l
u
e not in
e
x
cess
o
f
s
u
c
h
a
m
ount.
(
g
)
Other Awa
r
ds
:
T
h
e
m
axi
m
u
m
aggregate
co
m
p
ensation
t
h
a
t can be paid
p
u
r
s
u
a
nt
to Ot
h
er Aw
a
rds award
e
d
in any one fiscal year to
a
n
y o
n
e
Partici
p
a
n
t s
h
all
be $
1
,
0
0
0
,0
0
0
or a nu
m
b
er of Sh
a
res
hav
i
ng an
a
g
gr
e
g
ate
Fair Mar
k
et Val
u
e n
o
t
in e
x
cess of s
u
ch am
o
u
n
t.
(
h
)
Divide
n
d
s
an
d Divide
n
d E
q
u
i
valents
:
T
h
e
m
axi
m
u
m
divide
n
d
o
r Divid
e
nd
E
qu
i
valent
t
h
at
m
ay be paid
i
n
a
n
y
one fiscal year to any o
n
e Par
t
ici
p
a
n
t
s
h
all
b
e $
1
,
0
0
0
,0
0
0
.
4
.
3
A
d
j
u
s
t
me
n
ts
in A
u
t
ho
rized
Sh
a
res a
n
d Awar
d
s
.
In t
h
e e
v
e
n
t
of a
n
y eq
u
ity restr
u
cturing
(wit
h
in t
h
e mea
n
i
n
g
of F
i
na
n
cial Acco
un
t
i
n
g
Stan
d
ar
d
s No.
1
2
3
R),
s
u
ch as a st
o
c
k
d
i
v
i
d
e
n
d
,
s
t
o
ck s
p
lit,
s
p
i
n
-
o
ff,
r
i
gh
ts offering or rec
a
pitalization
t
h
ro
u
g
h
a larg
e
, n
o
nre
cu
r
r
ing
c
a
sh d
i
vid
e
n
d
,
t
h
e C
o
m
m
ittee
shall cause an
eq
uitable
a
d
j
u
st
m
ent
to be
m
ade (i)
i
n
t
h
e
nu
m
ber
an
d ki
n
d
o
f
S
h
ar
e
s
t
h
at
m
ay be d
e
li
v
ered
un
d
er
t
h
e
Pl
a
n u
n
d
e
r
Section 4
.
1
h
e
re
o
f
,
(ii) in t
h
e in
d
i
v
id
u
al
l
i
m
i
tati
on
s
set f
o
r
t
h in
Section
4
.
2
h
ere
o
f and (iii) with res
p
ect
to o
u
tstan
d
i
n
g
Awar
d
s
, in t
h
e
n
u
m
b
er
and k
i
nd
o
f S
h
ares
su
bject
t
o outst
a
nd
i
ng
A
wa
r
ds, t
h
e
Ex
e
rc
i
se
P
rice,
gr
a
n
t
p
rice
or o
t
h
e
r price of Shares subject to outst
a
nd
i
ng
A
wa
r
ds, any p
er
f
o
r
m
ance
co
nd
itions relati
n
g
t
o
S
h
a
res,
t
h
e
m
arket
p
rice of Sh
a
res,
o
r
pe
r-
Sh
a
re r
e
sults,
a
n
d
o
t
h
er
terms and co
nd
itions of
ou
tsta
nd
i
ng
Awards,
i
n
t
h
e
case of (i), (ii) and
(
iii)
t
o pre
v
e
n
t
d
il
u
ti
o
n
o
r e
n
lar
g
e
m
e
n
t
o
f rig
h
ts. In t
h
e
e
v
e
n
t of a
n
y
o
t
her c
h
an
g
e
i
n
co
rporate c
a
pitalization,
su
c
h as a
m
erger,
c
o
n
s
olidation
or li
qu
i
d
atio
n
,
t
h
e C
o
mmittee may, in its s
o
le
discreti
on
, ca
u
s
e
an
eq
uitable adj
u
st
m
ent
as descr
i
bed in
t
h
e
f
o
r
e
go
i
ng
se
n
te
n
ce to
b
e
ma
d
e, to pre
v
e
n
t
d
il
u
tion or e
n
lar
g
e
m
e
n
t
o
f rig
h
ts. T
h
e
nu
m
b
er
o
f
S
h
ares sub
j
ect to a
n
y
Aw
a
rd s
h
all alwa
y
s
be
r
o
un
d
ed
do
wn to a w
h
ole nu
m
ber
wh
e
n
ad
j
u
st
m
e
nts
are
m
ade
p
u
r
s
u
a
nt
to
t
h
is
Section 4
.3
.
Adjust
m
ents
m
ade by t
h
e
C
o
mm
ittee
p
u
r
s
uant
t
o
t
h
is
Se
c
tion 4
.
3
s
h
all
b
e
final, b
i
nd
i
ng a
n
d
c
onc
l
u
si
v
e.
ART
I
CLE
5
ELIGIBILITY AND PAR
T
ICIPATION
5
.
1
Eli
g
i
b
ility
.
Pers
o
n
s eli
g
i
b
le
t
o
p
a
rtici
p
ate
in
t
h
e Plan i
n
c
l
ude
all E
m
p
l
o
y
e
e
s,
D
i
rectors and C
on
s
u
lta
n
t
s.
5
.
2
Act
ua
l
P
a
rticip
a
ti
o
n
.
Su
bj
ect to t
h
e pr
ov
isions
of t
h
e Plan,
t
h
e
C
o
mmi
t
tee
may, fr
o
m t
i
me to ti
m
e,
select fr
o
m all eli
g
i
b
le
E
m
p
l
o
y
ees,
Direc
t
o
rs and
C
on
s
u
ltants,
th
o
se to wh
o
m Awar
d
s
shall
b
e gra
n
ted a
n
d
shall deter
m
ine the nature
a
n
d
amount of each Award.
ART
I
CLE
6
OPTI
O
NS
6
.
1
Gra
n
t
o
f O
p
tio
n
s
.
Sub
j
ect to t
h
e ter
m
s
a
n
d pro
v
isio
n
s
o
f the Pla
n
, O
p
tio
n
s
m
a
y
b
e
gra
n
ted to Partici
p
ants in su
c
h
a
m
ounts, u
po
n
s
u
c
h
te
r
m
s, and at
s
u
c
h
ti
m
es as t
h
e C
o
mm
ittee
sh
a
ll deter
m
i
n
e.
6
.
2
Awa
r
d
A
g
re
em
en
t
.
Each O
p
ti
o
n gra
n
t
s
h
all
b
e e
v
i
d
e
n
ced
by an Award Agree
m
e
n
t t
h
at
shall s
p
ecify t
h
e Exercise Price, the d
u
ration
o
f the O
p
ti
o
n,
t
h
e
n
u
m
b
e
r
o
f
S
h
are
s
t
o
w
h
ic
h
t
h
e
O
p
ti
o
n
p
e
rt
ains
,
a
n
d
s
u
ch
oth
e
r p
r
ovis
i
o
n
s
as t
h
e C
o
mm
ittee
shall dete
rm
i
n
e. The
Aw
a
rd
A
g
ree
m
e
n
t
also s
h
all s
p
ecify w
h
et
h
er
t
h
e O
p
ti
o
n
is i
n
tend
e
d
t
o
be an ISO
o
r
a
n
N
Q
S
O.
O
p
tions t
h
at
are
i
n
te
nd
ed
to
b
e ISOs s
h
all
b
e
sub
j
ect to t
h
e li
m
it
a
ti
on
s
set f
o
rth in C
o
de Secti
o
n
4
2
2.
6
.
3
Exercise
Pric
e
. The Ex
e
rcise Price for
ea
c
h gr
a
n
t
of
a
n Option und
e
r
t
h
e
Plan
s
h
all be at
l
east
equal
t
o one h
u
n
d
r
e
d
perc
e
n
t
(
1
0
0
%
)
of t
h
e
F
air
M
a
r
k
et
Va
l
u
e of a
S
h
are
o
n t
h
e date
t
h
e
Opti
o
n is
g
ran
t
ed;
provid
e
d
, however, that
t
h
is
restriction
s
h
all not
ap
ply
to R
e
place
m
ent Awards or Aw
a
rds
that are adjus
t
ed pur
s
uant to
Section
4
.
3
h
ere
i
n
.
No ISO gra
n
ted to a Partici
p
a
n
t
wh
o
, at t
h
e ti
m
e
t
h
e ISO is
g
ra
n
ted,
ow
n
s s
t
o
ck
re
p
rese
n
ting
m
o
re
t
h
an ten
p
erce
n
t
(1
0
%)
o
f t
h
e
v
o
ti
n
g p
o
wer
o
f all classes of s
t
o
ck
of t
h
e C
o
m
p
a
n
y
or a
n
y S
ub
s
i
d
iary
s
h
all
h
a
v
e
an
E
x
ercise Pr
i
ce
that is less
t
h
an o
n
e
h
u
ndre
d
te
n
p
e
rc
e
n
t
(
11
0
%
)
o
f
t
h
e
Fai
r
Mar
k
e
t
Val
u
e
o
f
a
S
h
a
re
o
n
t
h
e
d
a
te
t
h
e
ISO is grante
d
.
6
.
4
D
u
r
a
tion
o
f
O
p
ti
o
n
s
.
Each O
p
ti
o
n gra
n
ted
t
o a Partici
p
a
n
t
s
h
all ex
p
ire at s
u
ch
ti
m
e as t
h
e C
o
mmi
t
tee
s
h
all
d
eter
m
i
n
e
at t
h
e t
i
m
e
o
f gra
n
t; pro
v
i
d
e
d
,
h
o
w
e
v
e
r,
t
h
at no O
p
tion
s
h
all
b
e e
x
ercisa
b
le
later t
h
an t
h
e tenth (
1
0t
h
)
an
niv
e
rsary date of its
g
rant.
N
o I
S
O gr
a
n
ted
to a Partici
p
a
n
t wh
o
,
at t
h
e time t
h
e ISO is
g
r
a
n
te
d
,
ow
n
s stock r
e
pres
e
n
t
ing
m
o
re
t
h
an
ten perc
e
n
t
(10
%)
of t
h
e
v
o
ti
n
g
p
o
w
e
r of all classes
o
f
s
t
o
c
k of t
h
e
C
o
m
p
any
o
r
a
n
y
Su
b
si
d
iary s
h
a
l
l
b
e e
x
ercisa
b
l
e
later t
h
an t
h
e f
i
fth
(
5
t
h
)
a
nn
i
vers
a
ry
of
t
h
e date
o
f
its gr
an
t.
6
.
5
Exercise
of Option
s
. O
p
tio
n
s
g
ra
n
ted un
d
er
t
h
is
Article 6
shall be exercis
a
ble
at
s
u
ch times and be s
u
b
j
ect
t
o s
u
ch restrictio
n
s
and c
o
n
d
iti
o
ns
as set f
o
r
t
h in t
h
e
Award Agreeme
n
t a
n
d as
t
h
e
C
o
mmittee
sh
all in each instance
ap
prove,
which ne
e
d not be the s
a
me for ea
c
h
grant or for each P
a
rticipant.
6
.
6
Pa
y
men
t
.
O
p
ti
on
s gra
n
ted
un
d
er t
h
is
Article 6
s
h
all
b
e e
x
ercised
b
y
t
h
e
d
e
li
v
ery
of a written n
o
tice of ex
e
rcise to the
C
o
m
p
any,
s
etting for
t
h
t
h
e
n
u
m
b
e
r
o
f
S
h
a
r
e
s
with res
p
ect to w
h
ich t
h
e
O
p
tion is to
b
e e
x
ercised
and
s
p
ecif
y
i
n
g
t
h
e
m
ethod of pa
y
m
ent
of t
h
e Ex
e
rcise
P
ric
e
.
T
h
e
E
x
ercise Price of an O
p
t
i
o
n
shall
b
e
p
a
y
a
b
le
to
t
h
e
C
o
m
p
a
n
y
in f
u
ll: (a)
i
n cash
o
r
its eq
u
i
v
ale
n
t,
(b)
b
y te
nd
e
ring
S
h
ares or
d
irecting t
h
e
C
o
m
p
a
n
y
t
o wit
h
h
o
ld
S
h
a
res f
r
om
t
h
e
O
p
ti
o
n
h
a
vi
n
g
a
n
a
g
g
r
e
g
ate
F
ai
r
M
a
r
k
et
Value at
t
h
e t
i
me
of
e
x
ercise equal
t
o
the
Ex
ercise Price,
(c
) by
b
r
o
k
e
r-as
s
isted
cashle
s
s
e
x
ercise,
(d) in any o
t
her
m
anner t
h
e
n
p
er
m
itted by t
h
e
C
o
mm
ittee, or (e) by a co
m
b
i
n
ati
o
n
o
f
a
n
y
o
f t
h
e p
e
r
m
i
t
ted
m
ethods
o
f p
a
y
m
ent.
The
C
o
mmi
t
t
e
e
m
a
y
l
i
mi
t
a
n
y
m
eth
o
d
o
f
p
a
y
m
e
n
t,
oth
e
r
t
h
an
t
h
at specifi
e
d u
n
der
(
a
), f
o
r
adm
inistrati
v
e
c
o
nv
e
nienc
e
,
t
o c
o
m
p
ly
with a
pp
lica
b
le law,
o
r
f
o
r a
n
y
o
t
h
e
r
reaso
n
.
6
.
7
Restricti
on
s
o
n S
ha
r
e
Tra
n
sfer
ab
ility
.
T
h
e
C
o
mmittee
m
ay
i
m
pose
s
u
ch
r
e
strictions on
a
ny Sh
a
res
acqu
i
red
p
u
r
s
u
ant
to
t
h
e
e
x
er
c
ise
of an O
p
tion
g
ra
n
ted
un
d
er t
h
is
Article 6
as it
m
a
y
deem advisable, inc
l
ud
i
ng, wit
h
o
u
t
li
m
i
ta
t
i
on
,
res
t
ricti
o
ns u
n
der
ap
p
lica
b
le fe
d
er
a
l
sec
u
rities laws,
u
n
d
er
t
h
e req
u
ireme
n
ts
o
f a
n
y st
o
ck
e
x
c
h
an
g
e
o
r mar
k
et u
p
on
w
h
ich s
u
ch S
h
ares
are
t
h
en list
e
d
a
nd
/
o
r
tra
d
e
d
, a
n
d
un
d
er a
n
y
b
l
u
e
s
k
y
o
r state securities laws a
pp
lica
b
l
e
to s
u
ch S
h
ares.
6
.
8
Divide
n
d
E
q
u
i
valents
. At
t
h
e
discreti
o
n of t
h
e C
o
mm
ittee,
an Aw
a
rd
o
f
Op
tions
m
ay pr
ov
ide t
h
e
Participant with the r
i
ght
t
o receive D
i
vid
e
nd
Eq
uivalent
s
, whi
c
h
m
ay be paid
cu
rr
e
ntly
or cr
e
d
ited
t
o
a
n ac
c
ount for t
h
e
Partici
p
a
n
t, and
m
ay
b
e settled in cash an
d
/or S
h
ares,
as
d
eter
m
i
n
ed
b
y t
h
e C
o
m
m
i
ttee
in its s
o
le
d
iscreti
o
n,
subject
i
n ea
c
h case to su
c
h
t
e
r
m
s and
co
n
d
iti
on
s
as t
h
e Comm
i
ttee s
h
all
esta
b
lis
h
.
6
.
9
Termi
n
ati
o
n
of E
m
plo
y
m
e
nt
o
r Servic
e
. Each Partici
p
a
n
t’s
O
p
tion Award Agree
m
e
n
t
s
h
all set forth
t
h
e
e
x
te
n
t to w
h
ich
t
h
e Partici
p
a
n
t
s
h
all
h
a
v
e
t
h
e r
i
gh
t
to e
x
ercise
t
h
e
O
p
tion f
o
ll
o
w
i
n
g
ter
m
i
n
ati
o
n
o
f t
h
e Partici
p
a
n
t
’s
e
m
p
l
oy
m
e
n
t
o
r
, if t
h
e
Partici
p
a
n
t is a Direc
t
or
o
r C
o
n
s
ultant,
se
r
v
ice with the Co
m
p
any
and/or a Su
b
si
d
iary, as
t
h
e
case
m
ay
b
e. S
u
ch
pr
ov
isio
n
s s
h
all
b
e
d
eter
m
i
n
ed
in t
h
e s
o
le
d
iscretion
o
f t
h
e
C
o
mmit
t
ee,
n
eed not be
u
n
i
f
orm
a
m
ong all
O
p
t
ion
s
,
a
n
d
m
ay
reflect disti
n
ct
i
ons
b
ased
o
n
t
h
e
reas
o
n
s
f
o
r
ter
m
i
n
ation
o
f
e
m
ploy
m
ent
or service.
6
.
1
0
N
on
tr
a
nsfera
b
ility
o
f O
p
t
i
on
s
.
(a)
Inc
e
ntive
S
t
ock Options
. I
S
Os
m
a
y
not be
s
o
l
d
,
t
ran
s
fe
r
r
e
d,
ple
d
ge
d
, ass
i
g
n
e
d
,
or o
t
he
r
wise alienated or h
y
po
t
hecated,
other th
a
n by will or by
t
h
e
l
a
ws of desc
e
n
t
a
n
d distribution,
an
d
shall be ex
er
cisable
d
u
ring
a Partici
p
a
n
t’s lifet
i
m
e
o
n
ly
b
y s
u
ch
Partici
p
a
n
t.
(
b
)
N
o
nq
ua
lified
St
o
ck O
p
tio
n
s
.
N
Q
SOs
m
ay not be
s
o
l
d
,
tra
n
sfe
r
re
d
,
ple
d
g
e
d,
a
ssi
g
n
e
d
,
or oth
e
rwise alienated or h
y
po
t
hecated,
other th
a
n by will or by
t
h
e
l
a
ws of desc
e
n
t
a
n
d distribution,
an
d
shall be ex
er
cisable
d
u
ring
a Partici
p
a
n
t’s lifet
i
m
e
o
n
ly
b
y s
u
ch
Partici
p
a
n
t. NQSOs
m
ay
no
t
b
e t
r
a
n
s
ferred
for va
l
u
e or
c
onsideration.
ART
I
CLE
7
STOCK APPRECIATION RIGHTS
7
.
1
Gr
a
n
t
of SARs
. Sub
j
ect to
t
h
e
ter
m
s a
n
d pr
o
v
isi
on
s
of t
h
e P
l
a
n
,
SARs
m
ay
b
e
g
ra
n
ted
to Partici
p
ants in su
c
h a
m
ounts,
u
po
n
s
u
c
h
te
r
m
s, and at
s
u
c
h
ti
m
es as t
h
e C
o
mm
ittee
sh
a
ll deter
m
i
n
e.
The
C
o
mm
ittee
m
ay grant Fre
e
stand
i
ng
S
AR
s
, T
a
ndem
SA
R
s,
o
r
a
n
y
c
o
m
b
i
n
ation
o
f t
h
es
e
f
o
r
m
s
of S
A
R.
The
C
o
mmitt
e
e
shall have co
m
p
l
e
te
discretion in d
e
ter
m
ining the nu
m
b
er
of SARs gr
a
n
ted to each Partici
p
a
n
t
(su
bj
ect
t
o
Article 4
h
e
rei
n
)
an
d
, c
o
nsiste
n
t
with t
h
e
p
r
o
v
isi
o
ns
o
f t
h
e Pla
n
,
in
d
eter
m
i
n
i
n
g
the ter
m
s a
n
d c
o
n
d
iti
o
ns
p
er
t
ai
n
i
n
g
to s
u
ch SARs.
The gr
a
n
t
price of a Freest
a
nding SAR shall at least equal
t
h
e
Fa
i
r Market Value of a Share on the date of gr
a
n
t
of
t
h
e SAR, and
t
h
e
gr
an
t price of a T
a
ndem SAR s
h
all
eq
u
al t
h
e E
x
ercise
Price
o
f the related O
p
tio
n
;
provid
e
d
, however, that
t
h
is
restriction
s
h
all not
ap
ply
to R
e
place
m
ent Awards or Aw
a
rds
that are adjus
t
ed pur
s
uant to
Section
4
.
3
here
i
n
.
7
.
2
Exercise
of T
a
nd
e
m SA
Rs
.
A Ta
n
d
em SAR
m
ay
be ex
e
rci
s
ed on
l
y
with r
e
spect to the Shares for w
h
ich its
related O
p
tion is t
h
en e
x
ercis
a
ble.
To
t
h
e
e
x
tent
e
x
ercis
a
ble,
T
a
ndem SARs
m
a
y
be
e
x
ercis
e
d
for all or part of the Sh
a
res
s
u
bject
t
o
t
h
e
related Opt
i
on.
T
h
e
e
x
ercise of all or
p
art
o
f a Ta
nd
em SAR s
h
all
res
u
lt in t
h
e f
o
rfeit
u
re
of t
h
e ri
g
h
t
to
p
u
r
c
h
ase
a nu
m
ber
o
f
S
h
ar
e
s
u
n
d
e
r t
h
e
related O
p
t
i
o
n
eq
u
al to the nu
m
b
er
of Shares with respect
t
o whi
c
h the SAR
is
e
x
ercis
e
d.
C
o
nversely, upon exercise of all or part
o
f an O
p
ti
o
n
with res
p
ect to w
h
ich a Ta
n
d
em
SAR has be
e
n gr
a
n
ted,
a
n
eq
uival
e
nt
po
rtion of the Tan
d
em SAR s
h
all
si
m
i
larly
b
e
forfeited.
No
t
wit
h
sta
n
d
i
ng
any oth
e
r p
r
ovis
i
on
o
f t
h
e Plan to t
h
e
c
on
trar
y
, with res
p
ect
to a T
an
d
e
m
SAR gr
a
n
ted in c
o
n
n
ection
with an ISO: (i) the Tan
d
em SAR will ex
p
ire
no later
t
h
an t
h
e
ex
p
iration
o
f t
h
e
u
n
d
e
rlyi
n
g
ISO; (ii) t
h
e
v
al
u
e
of t
h
e
p
a
y
ou
t
with respect to t
h
e Tand
e
m SAR
m
ay
b
e f
o
r no
m
o
re
t
h
an o
n
e
h
u
ndred
p
erce
n
t
(10
0
%) of
t
h
e
diff
e
r
e
nce between the Ex
er
cise
Price of the u
nd
e
rlyi
n
g
ISO and t
h
e Fa
i
r Mar
k
et
Val
u
e of t
h
e S
h
ares
s
u
b
j
ect to t
h
e
u
n
d
e
rlyi
n
g
ISO at t
h
e ti
m
e
th
e
Tan
d
em SAR is e
x
ercise
d
;
a
n
d (iii) the Ta
nd
em SAR
m
ay
b
e e
x
ercised
on
ly
w
h
en t
h
e Fair Mar
k
et
Val
u
e of t
h
e S
h
ares
s
u
b
j
ect to the ISO
e
x
c
eeds
t
h
e
E
x
erc
i
se
Price of the ISO.
7
.
3
Exercise
of F
r
eestanding S
A
R
s
.
Freestan
d
i
n
g
SARs
m
ay
b
e e
x
ercis
e
d
upon whatev
e
r
t
er
m
s
and c
o
n
d
iti
o
ns
t
h
e C
o
mmi
t
tee,
in its s
o
le
d
iscreti
o
n,
i
m
po
ses
u
p
o
n
t
h
em a
n
d sets for
t
h
in
t
h
e Award Agreeme
n
t.
7
.
4
Awa
r
d
A
g
re
em
en
t
.
Ea
c
h SAR grant
s
h
all
be evid
e
n
ced by
a
n
Aw
a
rd Agr
e
e
m
ent
that sha
l
l specify t
h
e gra
n
t
price, t
h
e term
o
f
t
h
e
SAR, and s
u
ch oth
e
r p
r
ovis
i
ons
as
t
h
e
C
o
mm
ittee
shall de
t
er
m
i
n
e.
7
.
5
Term
of SAR
s
. T
h
e term
o
f
an SAR gra
n
ted
u
n
d
e
r
t
h
e Plan s
h
all
b
e
d
etermi
n
ed
b
y
t
h
e Comm
i
ttee, in its sole disc
r
etion;
pr
ov
i
de
d
,
ho
wev
e
r, t
h
at
su
c
h term sha
l
l not
e
x
ce
e
d
t
e
n (
1
0)
y
ears.
7
.
6
Pa
y
ment
of S
A
R A
mo
un
t
.
Up
o
n e
x
ercise
o
f
an SAR, a Partici
p
a
n
t s
h
all
b
e e
n
titled to recei
v
e
pay
m
ent from the Co
m
p
any
i
n
a
n a
m
ount
d
e
ter
m
ined by
m
u
ltiplying:
(a)
the
difference between the Fair Market Value of a Share on the date of exercise over the grant price; by
(
b
) the
nu
m
b
er of Sh
a
res
with res
p
ect to w
h
ich t
h
e
SAR is e
x
ercise
d
.
At t
h
e
d
iscret
i
o
n
of
t
h
e C
o
m
m
i
t
t
ee,
the payment upon S
A
R exercise
m
a
y
be in ca
s
h,
i
n Sh
a
res
of equ
i
valent val
u
e,
o
r
i
n
s
o
m
e
co
m
b
i
n
ation
t
h
e
re
o
f.
7
.
7
Divide
n
d
E
q
u
i
valents
. At
t
h
e
discreti
o
n of t
h
e C
o
mm
ittee,
an Aw
a
rd
o
f S
A
Rs
m
a
y p
r
ov
i
d
e
t
h
e Participant with the r
i
ght
t
o
receive D
i
vid
e
nd
Eq
uivalent
s
,
whi
c
h
m
ay be paid
cu
rr
e
ntly
or cr
e
d
ited
t
o
a
n ac
c
ount for t
h
e
Partici
p
a
n
t, and
m
ay
b
e settled in cash an
d
/or S
h
ares,
as
d
eter
m
i
n
ed
b
y t
h
e C
o
m
m
i
ttee
in its s
o
le
d
iscreti
o
n,
subject
i
n ea
c
h case to su
c
h
t
e
r
m
s and
co
n
d
iti
on
s
as t
h
e Comm
i
ttee s
h
all
esta
b
lis
h
.
7
.
8
Termi
n
ati
o
n
of E
m
plo
y
m
e
nt
o
r Servic
e
. Each SAR Award A
g
ree
m
e
n
t
s
h
all set forth t
h
e exte
n
t
to w
h
ich t
h
e Partici
p
a
n
t
s
h
all
h
a
v
e
t
h
e r
i
gh
t
t
o e
x
ercise
t
he
SAR f
o
llowing
t
er
m
i
n
ati
o
n
of
t
h
e Partici
p
a
n
t
’
s
e
m
p
l
oy
m
e
n
t
o
r
, if
t
h
e
Partici
p
a
n
t is a Direct
o
r
o
r Co
n
s
u
lta
n
t,
ser
v
i
ce with the
C
o
m
p
any
and
/
or a Subsidiary, as the
ca
se
m
ay
be. Su
c
h p
ro
v
isi
o
n
s
shall be dete
rm
i
n
ed in
t
h
e
so
le discr
e
ti
o
n
of t
h
e
C
o
mm
ittee,
ne
e
d
n
o
t
be un
i
f
o
rm a
m
ong
all
S
ARs, and
m
ay reflect disti
n
cti
o
n
s
b
ased
o
n t
h
e
re
a
so
n
s
fo
r
ter
m
i
n
ation of e
m
ploy
m
ent
or s
er
v
ice.
7
.
9
N
on
tr
a
nsfera
b
ility
o
f
S
AR
s
.
S
ARs
m
ay not
b
e
so
l
d
, tr
a
n
s
fe
r
re
d
,
ple
d
ge
d
,
a
ssign
e
d,
o
r ot
h
erwise alienated or h
y
po
t
hecated,
other th
a
n by will or by
t
h
e
l
a
ws of desc
e
n
t
a
n
d distribution,
an
d
shall be ex
er
cisable
d
u
ring
a Partici
p
a
n
t’s lifet
i
m
e
o
n
ly
b
y
s
u
c
h
Partici
p
a
n
t
.
SAR
s
m
a
y
no
t
b
e
t
r
an
s
ferred
for value or c
on
s
i
d
erati
o
n.
ART
I
CLE
8
RESTR
I
CT
E
D
ST
OC
K
8
.
1
Gr
a
n
t
of Restr
i
cted S
t
oc
k
.
Subject to
t
h
e ter
m
s
and provisions of the Plan,
R
estricted S
t
ock
m
a
y be gr
a
n
ted
to Par
t
icipants in su
c
h a
m
ount
s
,
upon
s
u
c
h
ter
m
s, and at
s
u
ch
ti
m
e
s as the Co
mm
ittee
shall deter
m
ine.
8
.
2
Awa
r
d
A
g
re
em
en
t
.
Ea
c
h Res
t
r
icted
Sto
c
k gr
a
n
t
s
h
all be
e
v
idenced
by
a
n Award Agree
m
en
t
that s
h
all s
p
ec
i
fy
the Per
i
o
d
(s)
of Restricti
o
n a
n
d, if ap
p
l
i
cable,
Perfor
m
ance Period(
s
),
t
h
e
nu
m
b
er of Sh
a
res
of Restricted St
o
c
k
g
ra
n
ted,
a
n
d s
u
ch
o
t
h
er
pro
v
isio
n
s as t
h
e
C
o
mmi
t
tee s
h
all
d
eter
m
i
n
e.
8
.
3
Other
Restriction
s
.
T
h
e
C
o
mmittee shall impo
s
e
s
u
ch o
t
h
e
r
c
o
n
d
iti
on
s
an
d
/or r
e
stricti
o
ns
on a
n
y Sh
a
res of Rest
r
icted
Sto
c
k gr
a
n
ted
p
u
r
s
u
a
nt
to t
h
e Plan as it
m
ay deem adv
i
sable
i
n
c
l
ud
i
n
g
,
wit
ho
u
t li
m
it
a
tion,
a req
u
ire
m
e
n
t
that Partici
p
a
n
ts
p
ay
a stip
u
lated
p
u
rc
h
ase
pr
i
c
e for ea
c
h
Sh
ar
e of Restricted Stock, a r
e
quir
e
m
ent
that the issu
a
n
ce of Sh
a
res
of Res
t
ricted S
t
ock be delayed, res
t
rictions
bas
e
d upon
t
h
e
a
c
hiev
e
m
ent
of spec
i
fic pe
r
f
o
r
m
ance
g
o
als, ti
m
e-based
restrictions
o
n vesti
n
g
f
o
ll
o
wi
n
g
t
h
e attai
nm
ent of t
h
e
p
er
f
o
r
m
ance
goal
s
, t
i
m
e-based
restriction
s
,
an
d/
o
r
r
e
stricti
o
n
s
u
n
d
er
ap
plicable laws
o
r u
nd
er
t
h
e r
e
qu
i
re
m
ents
of
a
n
y s
t
o
ck
e
x
ch
an
ge
or
m
arket upon whi
c
h
su
ch
Sh
a
res
a
re listed or
t
rad
e
d
,
or hold
i
n
g r
e
quire
m
ents
or s
a
le r
e
strictions placed on the Shares
by
t
h
e Co
m
p
any
upon vesting of
s
u
c
h
Restricted S
t
ock.
T
h
e
C
o
mpa
n
y
m
ay retain in its c
u
s
t
od
y
a
n
y certificate e
v
i
d
e
n
cing
the Shares of
R
estricted S
t
ock and place
th
er
eon a leg
e
nd
a
n
d
institute s
t
op-tr
a
nsfer ord
e
rs
on su
c
h Shares,
a
n
d
the Partici
p
a
n
t s
h
all
b
e o
b
li
g
ated
to sign a
n
y stock
p
o
wer
reques
t
ed
b
y t
h
e
C
o
m
p
a
n
y
relating to t
h
e S
h
ares to
g
i
v
e
effect to t
h
e f
o
rfeit
u
re
pro
v
isio
n
s
o
f
t
h
e Restricted St
o
ck.
8
.
4
Re
m
o
val
of R
e
strictions
. Subject to applicab
l
e
laws, Res
t
ricted S
t
ock
s
h
all
beco
m
e freely tra
n
sfera
b
le
b
y t
h
e Partici
p
a
n
t
after
t
h
e last day
o
f
t
h
e Peri
o
d of Restricti
o
n
a
pplicable thereto. Once R
e
stricted Stock
is released from the restriction
s
,
t
h
e
Participant shall be
e
n
titled to rece
i
ve
a c
e
rtificate evid
e
n
cing
the Shares.
8
.
5
V
o
ting
Rig
h
ts
. U
n
less
o
t
h
erw
i
se
d
eter
m
i
n
ed
b
y t
h
e
C
o
mmi
t
tee
a
n
d set forth in a Partici
p
a
n
t’s
Aw
a
rd
Ag
re
em
ent,
to t
h
e
ex
tent p
e
r
m
itted
or r
e
qu
i
red by l
a
w,
as
d
eter
m
i
n
ed
b
y
t
h
e
C
o
mm
i
ttee,
Partici
p
a
n
ts h
o
l
d
ing
Sh
a
res of Rest
r
icted Sto
c
k
gr
a
n
ted h
e
r
e
un
d
er
m
a
y e
x
ercise
f
u
ll v
o
ti
n
g
r
i
gh
t
s
with re
s
p
ect
t
o
those Shares during
t
h
e Peri
o
d
of Rest
r
iction.
8
.
6
Di
vi
d
e
n
d
s
and
Ot
h
er Di
stributi
ons
.
Exc
e
pt
a
s o
t
he
r
wise
p
ro
v
ided in a Partici
p
a
n
t’s
Award Agree
m
e
n
t, during t
h
e
Per
i
o
d of Restri
c
tio
n
,
Partici
p
a
n
ts h
o
l
d
ing
S
h
ares
o
f Restricted St
o
ck
s
h
all recei
v
e all reg
u
lar
cash
d
i
v
i
d
en
d
s
p
aid with respect to all S
h
ares w
h
ile
t
h
ey are so he
l
d
,
an
d, except
a
s oth
e
rwise
deter
m
ined by the C
o
mm
ittee,
all oth
e
r distri
b
u
t
ions
pa
i
d with respect
t
o
s
u
c
h
Restricted S
t
ock s
h
all
b
e
cre
d
ited to Partici
p
a
n
ts
sub
j
ect to t
h
e sa
m
e
restricti
on
s
o
n tra
n
sfera
b
ility
a
n
d forfeita
b
ility as t
h
e
Restricted S
t
o
ck with res
p
ect
to w
h
ich t
h
ey were
p
aid
and
p
aid at s
u
ch ti
m
e
f
o
ll
o
w
i
n
g
f
u
ll
v
es
t
i
n
g
as are
p
a
i
d t
h
e
S
h
ares of
R
estricted S
t
o
ck
with res
p
ect to w
h
ich su
c
h
distri
b
u
tions w
e
re
m
ade.
8
.
7
Termi
n
ati
o
n
of E
m
plo
y
m
e
nt
o
r Servic
e
. Each Award Agreeme
n
t
s
h
all set f
o
r
t
h
t
h
e e
x
te
n
t
to w
h
ich t
h
e Partici
p
a
n
t
s
h
all
h
a
v
e
t
h
e ri
gh
t
to retain u
nv
e
sted R
e
stricted
St
o
c
k f
o
llowing
ter
m
i
n
at
io
n
of
t
h
e Partici
p
a
n
t’s
e
m
p
l
oy
m
e
n
t
o
r
, if
t
h
e
Participa
n
t is a Direc
t
or
o
r
C
o
n
s
u
lt
a
n
t
,
service with
t
h
e
C
o
m
p
any
and
/
or a Subsid
i
ary, as
t
h
e
case
m
ay be.
S
u
ch
pr
ovisi
o
n
s
shall be det
e
r
m
i
n
ed
i
n t
h
e
s
o
le
discreti
o
n
o
f
t
h
e
C
o
mm
ittee,
need
n
o
t be un
i
f
o
rm
a
m
on
g
all Awar
d
s of Restricted S
t
o
ck,
a
n
d may reflect
d
isti
n
cti
o
ns
b
ased
o
n t
h
e
reas
o
n
s for ter
m
i
n
ati
o
n
of e
m
ploy
m
ent or se
r
v
ice.
8
.
8
N
on
tr
a
nsfera
b
ility
o
f Restricted
S
t
o
ck
.
E
x
cept as
o
t
h
erwise
d
eter
m
i
n
ed
b
y t
h
e C
o
m
m
i
tte
e
,
during t
h
e ap
p
lica
b
le
Period
o
f Restricti
on
, a Partici
p
a
n
t
’s
Restric
t
ed S
t
o
ck
and r
i
gh
ts relating thereto s
h
all
be a
v
aila
b
le
d
u
ring
t
h
e Partici
p
a
n
t’s
lifet
i
m
e
on
ly
to s
u
ch Partici
p
a
n
t,
a
n
d s
u
ch
Restricted Sto
c
k
an
d related r
i
g
h
ts
m
ay not be sold, tr
a
n
sf
e
rr
e
d,
pledg
e
d,
a
ssign
e
d,
or otherwise alienated or h
y
po
t
hecated
oth
e
r th
a
n by will or by the
l
aws
of desc
e
n
t a
n
d
di
s
tributi
o
n.
ARTICLE
9
RESTRICTED
STOCK UNITS AND PERFORMANCE SHARES
9.1
Grant
of Restricted Stock Units/Performance Shares
. Subject to the terms and provisions of the Plan, Restricted Stock Units
and Performance Shares may be granted to Participants in such amounts, upon such terms, and at such times as the Committee shall
determine.
9.2
Award
Agreement
. Each grant of Restricted Stock Units or Performance Shares shall be evidenced by an Award Agreement that shall
specify the applicable Period(s) of Restriction and/or Performance Period(s) (as the case may be), the number of Restricted Stock
Units or Performance Shares granted, and such other provisions as the Committee shall determine. The initial value of a Restricted
Stock Unit or Performance Share shall be at least equal to the Fair Market Value of a Share on the date of grant; provided, however,
that this restriction shall not apply to Replacement Awards or Awards that are adjusted pursuant to
Section 4.3
herein.
9.3
Form and Timing of Payment
. Except as otherwise provided in
Article 17
herein or a Participant’s Award
Agreement, payment of Restricted Stock Units or Performance Shares shall be made at a specified settlement date that shall not
be earlier than the last day of the Period of Restriction or Performance Period, as the case may be. The Committee, in its sole
discretion, may pay earned Restricted Stock Units and Performance Shares by delivery of Shares or by payment in cash of an amount
equal to the Fair Market Value of such Shares (or a combination thereof). The Committee may provide that settlement of Restricted
Stock Units or Performance Shares shall be deferred, on a mandatory basis or at the election of the Participant.
9.4
Voting
Rights
. A Participant shall have no voting rights with respect to any Restricted Stock Units or Performance Shares granted
hereunder; provided, however, that the Committee may deposit Shares potentially deliverable in connection with Restricted Stock
Units or Performance Shares in a rabbi trust, in which case the Committee may provide for pass through voting rights with respect
to such deposited Shares.
9.5
Dividend
Equivalents
. At the discretion of the Committee, an Award of Restricted Stock Units or Performance Shares may provide
the Participant with the right to receive Dividend Equivalents, which may be paid currently or credited to an account for the
Participant, and may be settled in cash and/or Shares, as determined by the Committee in its sole discretion, subject in each
case to such terms and conditions as the Committee shall establish.
9.6
Termination
of Employment or Service
. Each Award Agreement shall set forth the extent to which the Participant shall have the right
to receive a payout with respect to an Award of Restricted Stock Units or Performance Shares following termination of the Participant’s
employment or, if the Participant is a Director or Consultant, service with the Company and/or a Subsidiary, as the case may be.
Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Restricted Stock Units
or Performance Shares, and may reflect distinctions based on the reasons for termination of employment or service.
9.7
Nontransferability
.
Except as otherwise determined by the Committee, Restricted Stock Units and Performance Shares and rights relating thereto may
not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent
and distribution.
ARTICLE
10
PERFORMANCE
UNITS
10.1
Grant
of Performance Units
. Subject to the terms and conditions of the Plan, Performance Units may be granted to Participants
in such amounts, upon such terms, and at such times as the Committee shall determine.
10.2
Award Agreement
. Each grant of Performance Units shall be evidenced by an Award Agreement that shall specify the
number of Performance Units granted, the Performance Period(s), the performance goals and such other provisions as the Committee
shall determine.
10.3
Value
of Performance Units
. The Committee shall set performance goals in its discretion that, depending on the extent to which
they are met, will determine the number and/or value of Performance Units that will be paid out to the Participants.
10.4
Form
and Timing of Payment
. Except as otherwise provided in
Article 17
herein or a Participant’s Award Agreement,
payment of earned Performance Units shall be made following the close of the applicable Performance Period. The Committee, in
its sole discretion, may pay earned Performance Units in cash or in Shares that have an aggregate Fair Market Value equal to the
value of the earned Performance Units (or a combination thereof). The Committee may provide that settlement of Performance Units
shall be deferred, on a mandatory basis or at the election of the Participant.
10.5
Dividend
Equivalents
. At the discretion of the Committee, an Award of Performance Units may provide the Participant with the right
to receive Dividend Equivalents, which may be paid currently or credited to an account for the Participant, and may be settled
in cash and/or Shares, as determined by the Committee in its sole discretion, subject in each case to such terms and conditions
as the Committee shall establish.
10.6
Termination
of Employment or Service
. Each Award Agreement shall set forth the extent to which the Participant shall have the right
to receive a payout with respect to an Award of Performance Units following termination of the Participant’s employment
or, if the Participant is a Director or Consultant, service with the Company and/or a Subsidiary, as the case may be. Such provisions
shall be determined in the sole discretion of the Committee, need not be uniform among all Performance Units and may reflect distinctions
based on reasons for termination of employment or service.
10.7
Nontransferability
.
Except as otherwise determined by the Committee, Performance Units and rights relating thereto may not be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.
ARTICLE
11
OTHER
AWARDS
11.1
Grant
of Other Awards
. Subject to the terms and conditions of the Plan, Other Awards may be granted to Participants in such
amounts, upon such terms, and at such times as the Committee shall determine. Types of Other Awards that may be granted pursuant
to this
Article 11
include, without limitation, the payment of cash or Shares based on attainment of performance goals
established by the Committee, the payment of Shares as a bonus or in lieu of cash based on attainment of performance goals established
by the Committee, and the payment of Shares in lieu of cash under other Company incentive or bonus programs.
11.2
Payment
of Other Awards
. Payment under or settlement of any such Awards shall be made in such manner and at such times as the
Committee may determine.
11.3
Termination
of Employment or Service
. The Committee shall determine the extent to which the
Participant
shall have the right to receive Other Awards following termination of the Participant’s employment or, if the Participant
is a Director or Consultant, service with the Company and/or a Subsidiary, as the case may be. Such provisions shall be determined
in the sole discretion of the Committee, may be included in an agreement entered into with each Participant, but need not be uniform
among all Other Awards, and may reflect distinctions based on the reasons for termination of employment or service.
11.4
Nontransferability
. Except as otherwise determined by the Committee, Other Awards and rights relating thereto may
not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent
and distribution.
ARTICLE
12
REPLACEMENT
AWARDS
Each
Replacement Award shall have substantially the same terms and conditions (as determined by the Committee) as the award it replaces;
provided, however, that the number of Shares subject to Replacement Awards, the Exercise Price, grant price or other price of
Shares subject to Replacement Awards, any performance conditions relating to Shares underlying Replacement Awards, or the market
price of Shares underlying Replacement Awards or per-Share results may differ from the awards they replace to the extent such
differences are determined to be appropriate and equitable by the Committee, in its sole discretion.
ARTICLE
13
PERFORMANCE
MEASURES
The
Committee may specify that the attainment of one or more of the performance measures set forth in this Article 13 shall determine
the degree of granting, vesting and/or payout with respect to Awards (including any related dividends or Dividend Equivalents)
that the Committee intends will qualify for the Performance-Based Exception. The performance goals to be used for such Awards
shall be chosen from among the following performance measure(s): earnings per share, economic value created, market share (actual
or targeted growth), net income (before or after taxes), operating income, earnings before interest, taxes, depreciation and/or
amortization, core earnings, core earnings per share, return on assets (actual or targeted growth), return on capital (actual
or targeted growth), return on equity (actual or targeted growth), return on investment (actual or targeted growth), revenue (actual
or targeted growth), cash flow (including operating cash flow and free cash flow), operating margin, share price, share price
growth, total stockholder return, economic value added, and strategic business criteria consisting of one or more objectives based
on meeting specified market penetration goals, market share, productivity measures, geographic business expansion goals, expense
management, expense targets (including SG&A or other allocated or indirect costs), operating efficiency ratios (including
days sales outstanding, accounts payable to sales, inventory turns, and working capital as a percentage of sale), customer satisfaction
or employee satisfaction goals, goals relating to merger synergies, management of employment practices and employee benefits,
or supervision of litigation and information technology, and goals relating to acquisitions or divestitures of Subsidiaries and/or
other affiliates or joint ventures. The targeted level or levels of performance with respect to such performance measures may
be established at such levels and on such terms as the Committee may determine, in its discretion, including in absolute terms,
as a goal relative to performance in prior periods, or as a goal compared to the performance of one or more comparable companies
or an index covering multiple companies. Awards (including any related dividends or Dividend Equivalents) that are not intended
to qualify for the Performance-Based Exception may be based on these or such other performance measures as the Committee may determine
Achievement
of performance goals in respect of Awards intended to qualify under the Performance-Based Exception shall be measured over a Performance
Period, and the goals shall be established not later than ninety (90) days after the beginning of the Performance Period or, if
less than (90) days, the number of days that is equal to twenty-five percent (25%) of the relevant Performance Period applicable
to the Award. The Committee shall have the discretion to adjust the determinations of the degree of attainment of the pre-established
performance goals; provided, however, that Awards that are designed to qualify for the Performance-Based Exception may not be
adjusted upward (the Committee may, in its discretion, adjust such Awards downward).
ARTICLE
14
BENEFICIARY
DESIGNATION
Each
Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively)
to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit.
Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee,
and will be effective only when filed by the Participant in writing during the Participant’s lifetime with the Committee.
In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s
estate.
ARTICLE
15
DEFERRALS
If
permitted by the Committee, a Participant may defer receipt of amounts that would otherwise be provided to such Participant with
respect to an Award, including Shares deliverable upon exercise of an Option or SAR or upon payout of any other Award. If permitted,
such deferral (and the required deferral election) shall be made in accordance with, and shall be subject to, the terms and conditions
of the applicable nonqualified deferred compensation plan, agreement or arrangement under which such deferral is made and such
other terms and conditions as the Committee may prescribe.
ARTICLE
16
RIGHTS
OF PARTICIPANTS
16.1
Continued
Service
. Nothing in the Plan shall:
(a)
interfere with or limit in any way the right of the Company or a Subsidiary to terminate any Participant’s employment
or service at any time,
(b)
confer upon any Participant any right to continue in the employ or service of the Company or a Subsidiary, nor
(c)
confer on any Director any right to continue to serve on the Board of Directors of the Company or a Subsidiary.
16.2
Participation
.
No Employee, Director or Consultant shall have the right to be selected to receive an Award under the Plan, or, having been so
selected, to be selected to receive future Awards.
ARTICLE
17
CHANGE
IN CONTROL
Except
as otherwise provided in a Participant’s Award Agreement, upon the termination of a Participant’s employment for any
reason other than Cause, Disability or death within 12 months following a Change in Control, unless otherwise specifically prohibited
under applicable laws, or by the rules and regulations of any governing governmental agencies or national securities exchanges:
(a)
any and all outstanding Options and SARs granted hereunder shall become immediately exercisable; provided, however, that the
Committee may instead provide that such Awards shall be automatically cashed out;
(b)
any Period of Restriction or other restriction imposed on Restricted Stock, Restricted Stock Units and Other Awards shall
lapse; and
(c)
any and all Performance Shares, Performance Units and other Awards (if performance-based) shall be deemed earned at the
target level (or if no target level is specified, the maximum level) with respect to all open Performance Periods.
ARTICLE
18
ADDITIONAL
FORFEITURE PROVISIONS
The
Committee may condition a Participant’s right to receive a grant of an Award, to vest in the Award, to exercise the Award,
to retain cash, Shares, other Awards, or other property acquired in connection with the Award, or to retain the profit or gain
realized by the Participant in connection with the Award, including cash or other proceeds received upon sale of Shares acquired
in connection with an Award, upon compliance by the Participant with specified conditions relating to non-competition, confidentiality
of information relating to or possessed by the Company, non-solicitation of customers, suppliers, and employees of the Company,
cooperation in litigation, non-disparagement of the Company and its officers, directors and affiliates, and other restrictions
upon or covenants of the Participant, including during specified periods following termination of employment with or service for
the Company and/or a Subsidiary.
ARTICLE
19
AMENDMENT,
MODIFICATION AND TERMINATION
19.1
Amendment,
Modification and Termination
. The Board may at any time and from time to time, alter, amend, suspend or terminate the
Plan in whole or in part; provided, however, that no amendment that requires stockholder approval (a) in order for the Plan to
continue to comply with Section 162(m) requirements, (b) pursuant to the requirements of any national securities exchange upon
which any of the Company’s securities are listed for trading, or (c) pursuant to any rule promulgated by the United States
Securities and Exchange Commission shall be effective unless such amendment shall be approved by the requisite vote of stockholders
of the Company entitled to vote thereon within the time period required under such applicable listing standard or rule.
19.2
Adjustment
of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events
. The Committee may make adjustments in the
terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including,
without limitation, the events described in
Section 4.3
hereof) affecting the Company or the financial statements of
the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that
such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended
to be made available under the Plan; provided, however, that (except as provided in
Section 4.3
hereof) the Committee
does not have the power to amend the terms of previously granted options to reduce the exercise price per share subject to
such options, or to cancel such options and grant substitute options with a lower exercise price per share than the cancelled
options. The Company is not permitted to purchase for cash previously granted options with an exercise price that is greater
than the Company’s trading price on the proposed date of purchase. With respect to any Awards intended to comply with
the Performance-Based Exception, any such exception shall be specified at such times and in such manner as will not cause
such Awards to fail to qualify under the Performance-Based Exception.
19.3
Awards
Previously Granted
. No termination, amendment or modification of the Plan or of any Award shall adversely affect in any
material way any Award previously granted under the Plan without the written consent of the Participant holding such Award, unless
such termination, modification or amendment is required by applicable law and except as otherwise provided herein.
19.4
Compliance
with the Performance-Based Exception
. If it is intended that an Award (and/or any dividends or Dividend Equivalents relating
to such Award) comply with the requirements of the Performance-Based Exception, the Committee may apply any restrictions it deems
appropriate such that the Awards (and/or dividends or Dividend Equivalents) maintain eligibility for the Performance-Based Exception.
If changes are made to Code Section 162(m) or regulations promulgated thereunder to permit greater flexibility with respect to
any Award or Awards available under the Plan, the Committee may, subject to this
Article 19
, make any adjustments to the
Plan and/or Award Agreements it deems appropriate.
ARTICLE
20
WITHHOLDING
20.1
Tax
Withholding
. The Company shall have the power and the right to deduct or withhold, or require a Participant to remit to
the Company, an amount sufficient to satisfy federal, state, local, domestic or foreign taxes required by law or regulation to
be withheld with respect to any taxable event arising as a result of the Plan.
20.2
Use
of Shares to Satisfy Withholding Obligation
. With respect to withholding required upon the exercise of Options or SARs,
upon the vesting or settlement of Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units, or upon any
other taxable event arising as a result of Awards granted hereunder, the Committee may require or may permit Participants to elect
that the withholding requirement be satisfied, in whole or in part, by having the Company withhold, or by tendering to the Company,
Shares having a Fair Market Value equal to the minimum statutory withholding (based on minimum statutory withholding rates for
federal and state tax purposes, including payroll taxes) that could be imposed on the transaction and, in any case in which it
would not result in additional accounting expense to the Company, taxes in excess of the minimum statutory withholding amounts.
Any such elections by a Participant shall be irrevocable, made in writing and signed by the Participant.
ARTICLE
21
INDEMNIFICATION
Each
person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held harmless by the Company
to the fullest extent permitted by the laws of the State of incorporation of the Company against and from any loss, cost, liability,
or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action,
suit, or proceeding to which he or she may be a party or in which he or she 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 him or her in settlement thereof, with the Company’s
approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided
he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes
to handle and defend it on his or her own behalf. The foregoing right of indemnification is subject to the person having been
successful in the legal proceedings or having acted in good faith and what is reasonably believed to be a lawful manner in the
Company’s best interests. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification
to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them harmless.
ARTICLE
22
SUCCESSORS
All
obligations of the Company under the Plan and 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 other event, or a sale
or disposition of all or substantially all of the business and/or assets of the Company.
ARTICLE
23
LEGAL
CONSTRUCTION
23.1
Gender,
Number and References
. Except where otherwise indicated by the context, any masculine term used herein also shall include
the feminine; the plural shall include the singular and the singular shall include the plural. Any reference in the Plan to an
act or code or to any section thereof or rule or regulation thereunder shall be deemed to refer to such act, code, section, rule
or regulation, as may be amended from time to time, or to any successor act, code, section, rule or regulation.
23.2
Severability
.
In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had
not been included.
23.3
Requirements
of Law
. The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules,
and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.
23.4
Governing
Law
. To the extent not preempted by federal law, the Plan, and all agreements hereunder, shall be construed in accordance
with and governed by the laws Nevada without giving effect to conflicts or choice of law principles.
23.5
Non-Exclusive
Plan
. Neither the adoption of the Plan by the Board nor its submission to the stockholders of the Company for approval
shall be construed as creating any limitations on the power of the Board or a committee thereof to adopt such other incentive
arrangements as it may deem desirable, including other incentive arrangements and awards that do or do not qualify under the Performance-Based
Exception.
23.6
Code
Section 409A Compliance
. To the extent applicable, it is intended that this Plan and any Awards granted under the
Plan comply with the requirements of Code Section 409A and any related regulations or other guidance promulgated with respect
to such Section by the U.S. Department of the Treasury or the Internal Revenue Service (collectively “
Section
409A
”). Any provision that would cause the Plan or any Award granted under the Plan to fail to satisfy Section 409A
shall have no force or effect until amended to comply with Section 409A, which amendment may be retroactive to the extent
permitted by Section 409A.
15
