As filed with the U.S. Securities and Exchange
Commission on August 26, 2015
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933
SEACOAST BANKING CORPORATION OF FLORIDA |
(Exact name of registrant |
as specified in its charter) |
Florida |
|
59-2260678 |
|
|
|
(State or other jurisdiction of |
|
(I.R.S. Employer |
incorporation or organization) |
|
Identification Number) |
815 Colorado Avenue
Stuart, Florida 34994
(772) 287-4000
(Address, including zip code, and telephone number,
including area code, of registrant’s principal executive offices)
Amended and Restated Seacoast Banking
Corporation of Florida
2013 Long-Term Incentive Plan
(Full Title of the
Plan)
Dennis S. Hudson, III
Chief Executive Officer
Seacoast Banking Corporation of Florida
815 Colorado Avenue
Stuart, Florida 34994
(772) 287-4000
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
Copies to:
Randolph A. Moore III
Alston & Bird LLP
One Atlantic Center
1201 W. Peachtree Street
Atlanta, Georgia 30309
Telephone: (404) 881-7794
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions
of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2
of the Exchange Act. (Check one):
Large accelerated filer ¨ |
Accelerated filer x |
Non-accelerated filer ¨ |
Smaller reporting company ¨ |
(Do not check if a smaller reporting company) |
CALCULATION OF REGISTRATION FEE
Title of Securities to be Registered | |
Amount to
be Registered | | |
Proposed
Maximum
Offering Price
Per Share | | |
Proposed
Maximum
Aggregate
Offering Price | | |
Amount of
Registration Fee | |
Common Stock, $0.01 par value | |
| 1,700,000 | (1) | |
$ | 14.465 | (2) | |
$ | 24,590,500 | (2) | |
$ | 2,857.42 | |
| (1) | Amount to be registered consists of 1,700,000 shares of common stock of Seacoast Banking Corporation of Florida (the “Company”)
that may be issued under the Amended and Restated Seacoast Banking Corporation of Florida 2013 Incentive Plan (the “Plan”).
The amount of common stock registered hereunder shall be deemed to include any additional shares issuable as a result of any stock
split, stock dividend or other change in the capitalization of the Company. The Company previously registered 6,500,000 shares
(adjusted to 1,300,000 shares upon the Company’s one-for-five reverse stock split on December 13, 2013) on a Form S-8 filed
on August 9, 2013 (Reg. No. 333-190507) for issuance under the Plan. |
| (2) | Estimated solely for purposes of calculating the registration fee in accordance with Rule 457(h), based on the average of the
high and low prices of the Company’s common stock reported on the NASDAQ Global Select Market on August 24, 2015. |
PART I |
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS |
(a) The
documents constituting Part I of this Registration Statement on Form S-8 under the Securities Act of 1933, as amended (the “Registration
Statement”) will be sent or given to participants in the Plan as specified by Rule 428(b)(1) under the Securities Act.
These documents and the documents incorporated by reference in this registration statement pursuant
to Item 3 of Part II of this form, taken together, constitute a prospectus that meets the requirements of Section 10(a) of the
Securities Act.
(b) Upon
written or oral request, the Company will provide, without charge, the documents incorporated by reference in Item 3 of Part II
of this Registration Statement. The documents are incorporated by reference in the Section 10(a) prospectus. The Company will also
provide, without charge, upon written or oral request, other documents required to be delivered to employees pursuant to Rule 428(b).
Requests for any of the above-mentioned information should be directed to the Company’s Corporate Secretary at the address
and telephone number on the cover of this Registration Statement.
PART II |
INFORMATION REQUIRED IN REGISTRATION STATEMENT |
Item 3. | Incorporation of Documents by Reference. |
The following documents
filed with the Securities and Exchange Commission (the “Commission”) pursuant to the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), are hereby incorporated by reference into this Registration Statement and deemed to
be a part hereof:
(1) The
Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed on March 16, 2015, including
the portions of our Definitive Proxy Statement on Schedule 14A filed on April 7, 2015, and incorporated by reference into Part
III of our Annual Report on Form 10-K;
(2)
The Company’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2015, filed on May 11, 2015 and quarter ended June 30, 2015, filed on August 10, 2015;
(3) The
Company’s Current Reports on Form 8-K or Form 8-K/A, as applicable, filed February 24, 2015, March 2, 2015, March 31, 2015,
May 18, 2015, May 27, 2015, July 20, 2015, and August 7, 2015;
(4) The
description of our common stock contained in our Registration Statement filed with the SEC pursuant to Section 12 of the Exchange
Act, including any amendment or report filed for purposes of updating such description; and
(5) All
other documents subsequently filed by the Company pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act prior to the
filing of a post-effective amendment to this Registration Statement that indicates that all securities offered have been sold or
that deregisters all securities that remain unsold (except for information furnished to the Commission that is not deemed to be
“filed” for purposes of the Exchange Act).
Any statement contained
in a document incorporated or deemed incorporated herein by reference shall be deemed to be modified or superseded for the purpose
of this Registration Statement to the extent that a statement contained herein or in any subsequently filed document which also
is, or is deemed to be, incorporated herein by reference modifies or supersedes such statement. Any such statement so modified
or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Registration Statement.
Item 4. |
Description of Securities. |
Not Applicable.
Item 5. | Interests of Named Experts and Counsel. |
Not Applicable.
Item 6. |
Indemnification of Directors and Officers. |
The Florida Business
Corporation Act, as amended (the “FBCA”) permits, under certain circumstances, the indemnification of officers, directors,
employees and agents of a corporation with respect to any threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative or investigative, to which such person was or is a party or is threatened to be made a party, by
reason of his or her being an officer, director, employee or agent of the corporation, or is or was serving at the request of,
such corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise,
against liability incurred in connection with such proceeding, including appeals thereof; provided, however, that the officer,
director, employee or agent acted in good faith and in a manner that he or she reasonably believed to be in, or not opposed to,
the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe
his or her conduct was unlawful. The termination of any such third-party action by judgment, order, settlement, or conviction or
upon a plea of nolo contendere or its equivalent does not, of itself, create a presumption that the person (i) did not act in good
faith and in a manner which he or she reasonably believed to be in, or not opposed to, the best interests of the corporation or
(ii) with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful.
In the case of proceedings
by or in the right of the corporation, the FBCA permits for indemnification of any person by reason of the fact that such person
is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of, such corporation as
a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against liability
incurred in connection with such proceeding, including appeals thereof; provided, however, that the officer, director, employee
or agent acted in good faith and in a manner that he or she reasonably believed to be in, or not opposed to, the best interests
of the corporation, except that no indemnification is made where such person is adjudged liable, unless a court of competent jurisdiction
determines that, despite the adjudication of liability but in view of all circumstances of the case, such person is fairly and
reasonably entitled to indemnity for such expenses which such court shall deem proper.
To the extent that
such person is successful on the merits or otherwise in defending against any such proceeding, Florida law provides that he or
she shall be indemnified against expenses actually and reasonably incurred by him or her in connection therewith.
The Company’s
Bylaws contain indemnification provisions similar to the FBCA, and further provide that the Company may purchase and maintain insurance
on behalf of directors, officers, employees and agents in their capacities as such, or serving at the request of the corporation,
against any liabilities asserted against such persons whether or not the Company would have the power to indemnify such persons
against such liability under its Bylaws.
Insofar as indemnification
for liabilities arising under the Securities Act of 1933, as amended, may be permitted to the Company’s directors, officers
and controlling persons pursuant to the foregoing provisions, or otherwise, the Company has been advised that, in the opinion of
the Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.
Item 7. |
Exemption from Registration Claimed. |
Not Applicable.
Item 8. Exhibits.
See Exhibit Index,
which is incorporated here by this reference.
Item 9. Undertakings.
(a) The
undersigned Company hereby undertakes:
(1) To
file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:
(i) To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To
reflect in the prospectus any facts or events arising after the effective date of this Registration Statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in this Registration Statement.
(iii) To
include any material information with respect to the plan of distribution not previously disclosed in this Registration Statement
or any material change to such information in this Registration Statement;
provided, however,
that paragraphs (a)(1)(i) and (a)(1)(ii) of this section do not apply if the registration statement is on Form S-8 and the information
required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the
Commission by the Company pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated
by reference in this Registration Statement.
(2) That,
for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
(3) To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.
(b) The
undersigned Company hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing
of the Company’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where
applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange
Act of 1934) that is incorporated by reference in the Registration Statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
(c) Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the Company pursuant to the foregoing provisions, or otherwise, the Company has been advised that in the opinion of
the Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities (other than the payment by the Company of expenses incurred or paid by
a director, officer or controlling person of the Company in the successful defense of any action, suit or proceeding) is asserted
by such director, officer or controlling person in connection with the securities being registered, the Company will, unless in
the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
SIGNATURES
Pursuant to the requirements
of the Securities Act of 1933, as amended, the registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-8 and has duly caused these Post-Effective Amendments to the Registration Statements to
be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Stuart, state of Florida, on this 26th day
of August, 2015.
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SEACOAST BANKING CORPORATION OF FLORIDA |
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By: |
/s/ Dennis S. Hudson, III |
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Dennis S. Hudson, III |
|
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Chief Executive Officer |
POWER OF ATTORNEY
Each person whose signature
appears below hereby constitutes and appoints Dennis S. Hudson, III his or her true and lawful attorney-in-fact and agents, with
full power of substitution and resubstitution for him or her, in any and all capacities, to sign this Registration Statement for
the registration of certain securities of the Company Corporation, any or all amendments to the Registration Statement (including,
but not limited to, post-effective amendments), which amendments may make such changes in and additions to the Registration Statement
as such attorney-in-fact may deem necessary or appropriate, and to file the same, with exhibits thereto and other documents in
connection therewith, with the Commission, granting unto such attorney-in-fact and agent full power and authority to do and perform
each and every act and thing requisite and necessary in connection with such matters, as fully to all intents and purposes as he
or she might or could do in person, hereby ratifying and confirming all that such attorney-in-fact and agent or his substitute
or substitutes may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements
of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities
and on the date indicated.
Signatures |
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Title |
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Date |
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/s/ Dennis S. Hudson, III |
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Chairman of the Board, Chief |
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August 26, 2015 |
Dennis S. Hudson, III |
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Executive Officer and Director
(Principal Executive Officer) |
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/s/ Stephen A. Fowle |
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Executive Vice President and Chief |
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August 26, 2015 |
Stephen A. Fowle |
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Financial Officer
(Principal Financial Officer and Principal Accounting Officer) |
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/s/ Dennis J. Arczynski |
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Director |
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August 26, 2015 |
Dennis J. Arczynski |
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/s/ Stephen E. Bohner |
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Director |
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August 26, 2015 |
Stephen E. Bohner |
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/s/ Jacqueline L. Bradley |
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Director |
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August 26, 2015 |
Jacqueline L. Bradley |
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/s/ T. Michael Crook |
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Director |
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August 26, 2015 |
T. Michael Crook |
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/s/ H. Gilbert Culbreth, Jr. |
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Director |
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August 26, 2015 |
H. Gilbert Culbreth, Jr. |
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/s/ Julie H.
Daum |
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Director |
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August 26, 2015 |
Julie H. Daum |
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/s/ Christopher E. Fogal |
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Director |
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August 26, 2015 |
Christopher E. Fogal |
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/s/ Maryann
Goebel |
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Director |
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August 26, 2015 |
Maryann Goebel |
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/s/ Roger O. Goldman |
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Director |
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August 26, 2015 |
Roger O. Goldman |
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/s/ Robert B. Goldstein |
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Director |
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August 26, 2015 |
Robert B. Goldstein |
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/s/ Dennis S. Hudson, Jr. |
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Director |
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August 26, 2015 |
Dennis S. Hudson, Jr. |
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/s/ Thomas E. Rossin |
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Director |
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August 26, 2015 |
Thomas E. Rossin |
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/s/ Edwin E. Walpole, III |
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Director |
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August 26, 2015 |
Edwin E. Walpole, III |
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EXHIBIT INDEX
TO
REGISTRATION STATEMENT ON FORM S-8
Exhibit |
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Number |
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Description |
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4.1.1 |
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Amended and Restated Articles of Incorporation of the Company, incorporated herein by reference from Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q, filed May 10, 2006. |
|
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4.1.2 |
|
Articles of Amendment to the Amended and Restated Articles of Incorporation, incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed December 23, 2008. |
|
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4.1.3 |
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Articles of Amendment to the Amended and Restated Articles of Incorporation, incorporated herein by reference from Exhibit 3.4 to the Company’s Form S-1, filed June 22, 2009. |
|
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4.1.4 |
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Articles of Amendment to the Amended and Restated Articles of Incorporation, incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed July 20, 2009. |
|
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4.1.5 |
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Articles of Amendment to the Amended and Restated Articles of Incorporation, incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed December 3, 2009. |
|
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4.1.6 |
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Articles of Amendment to the Amended and Restated Articles of Incorporation, incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K/A, filed July 14, 2010. |
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4.1.7 |
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Articles of Amendment to the Amended and Restated Articles of Incorporation, incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed June 25, 2010. |
|
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4.1.8 |
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Articles of Amendment to the Amended and Restated Articles of Incorporation, incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed June 1, 2011. |
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4.1.9 |
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Articles of Amendment to the Amended and Restated Articles of Incorporation, incorporated herein by reference from Exhibit 3.1 to the Company’s Form 8-K, filed December 13, 2013. |
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4.2 |
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Amended and Restated By-laws of the Company, incorporated herein by reference from Exhibit 3.2 to the Company’s Form 8-K, filed December 21, 2007. |
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5.1 |
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Opinion of Alston & Bird LLP. |
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23.1 |
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Consent of Alston & Bird LLP (included in Exhibit 5.1). |
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23.2 |
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Consent of KPMG LLP. |
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23.3 |
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Consent of Crowe Horwath LLP. |
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24.1 |
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Power of Attorney (included on signature page). |
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99.1 |
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Amended and Restated Seacoast Banking Corporation of Florida 2013 Incentive Plan. |
Exhibit 5.1
One Atlantic Center
1201 West Peachtree Street
Atlanta, GA 30309-3424
404-881-7000
Fax: 404-253-8330
www.alston.com
August 26, 2015
Seacoast Banking Corporation of Florida |
|
815 Colorado Avenue |
|
Stuart, Florida 34994 |
|
Re: |
Registration Statement on Form S-8 – |
|
Amended and Restated Seacoast Banking Corporation of Florida 2013 Incentive Plan |
Ladies and Gentlemen:
We have acted as counsel
to Seacoast Banking Corporation of Florida, a Florida corporation (the “Corporation”), in connection with the above-referenced
Registration Statement on Form S-8 (the “Registration Statement”) to be filed on the date hereof by the Corporation
with the Securities and Exchange Commission (the “Commission”) to register under the Securities Act of 1933, as amended
(the “Securities Act”), 1,700,000 shares of the Corporation’s common stock, $0.10 par value per share (the “Shares”),
which may be issued by the Corporation pursuant to the Amended and Restated Seacoast Banking Corporation of Florida 2013 Incentive
Plan (the “Plan”). We are furnishing this opinion letter pursuant to Item 8 of Form S-8 and Item 601(b)(5) of Regulation
S-K under the Securities Act.
In connection with
our opinion below, we have examined the Amended and Restated Articles of Incorporation of the Corporation and the subsequent Articles
of Amendment thereto, the Amended and Restated By-laws of the Corporation, records of proceedings of the Board of Directors deemed
by us to be relevant to this opinion letter, the Plan and the Registration Statement. We also have made such further legal and
factual examinations and investigations as we deemed necessary for purposes of expressing the opinion set forth herein. In our
examination, we have assumed the genuineness of all signatures, the legal capacity of all natural persons, the authenticity of
all documents submitted to us as original documents and the conformity to original documents of all documents submitted to us as
certified, conformed, facsimile, electronic or photostatic copies.
As to certain factual
matters relevant to this opinion letter, we have relied conclusively upon originals or copies, certified or otherwise identified
to our satisfaction, of such other records, agreements, documents and instruments, including certificates or comparable documents
of officers of the Corporation and of public officials, as we have deemed appropriate as a basis for the opinion hereinafter set
forth. Except to the extent expressly set forth herein, we have made no independent investigations with regard to matters of fact,
and, accordingly, we do not express any opinion as to matters that might have been disclosed by independent verification.
Atlanta • Brussels • Charlotte
• Dallas • Los Angeles • New York • Research Triangle • Silicon Valley • Washington, D.C.
August 26, 2015
Page 2
Our opinion set forth
below is limited to the Florida Business Corporation Act.
This opinion letter
is provided for use in connection with the transactions contemplated by the Registration Statement and may not be used, circulated,
quoted or otherwise relied upon for any other purpose without our express written consent. The only opinion rendered by us consists
of those matters set forth in the sixth paragraph hereof, and no opinion may be implied or inferred beyond the opinion expressly
stated. This opinion letter is rendered as of the date hereof and we make no undertaking and expressly disclaim any duty to supplement
or update the opinions rendered herein, if, after the date hereof, facts or circumstances come to our attention or changes in the
law occur which could affect such opinions. We note specifically that the Shares may be issued from time to time hereafter, and
our opinion is limited to the applicable laws, including the related rules and regulations, as in effect on the date hereof.
Based on the foregoing,
it is our opinion that the Shares that may be issued under the Plan are duly authorized, and, when issued by the Corporation in
accordance with the terms of the Plan, will be validly issued, fully paid and non-assessable.
We consent to the filing
of this opinion letter as an exhibit to the Registration Statement. In giving such consent, we do not thereby admit that we are
within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of
the Commission thereunder.
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Sincerely, |
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ALSTON & BIRD LLP |
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/s/ Alston & Bird LLP |
Exhibit 23.2
Consent of Independent Registered Public
Accounting Firm
The Board of Directors
Seacoast Banking Corporation of Florida:
In connection with the Form S-8 registration
statement to be filed by Seacoast Banking Corporation of Florida and subsidiaries (the Company), we consent to the use of our report
dated March 17, 2014, with respect to the consolidated balance sheet of the Company as of December 31, 2013, and the related consolidated
statements of income, comprehensive income (loss), cash flows, and shareholders’ equity for each of the years in the two-year
period ended December 31, 2013, incorporated herein by reference.
/s/ KPMG LLP
August 26, 2015
Miami, Florida
Certified Public Accountants
EXHIBIT 23.3
CONSENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in this Registration
Statement on Form S-8 pertaining to Seacoast Banking Corporation of Florida Amended and Restated Seacoast Banking Corporation of
Florida 2013 Long-Term Incentive Plan of our reports dated March 16, 2015 with respect to the consolidated financial statements
Seacoast Banking Corporation of Florida and the effectiveness of internal control over financial reporting appearing in the Annual
Report on Form 10-K Seacoast Banking Corporation of Florida for the year ended December 31, 2014.
/s/ Crowe Horwath LLP
Crowe Horwath LLP
Fort Lauderdale, Florida
August 26, 2015
Exhibit 99.1
AMENDED
AND RESTATED
SEACOAST
BANKING CORPORATION OF FLORIDA
2013
Incentive PLAN
AMENDED
AND RESTATED
Seacoast
Banking Corporation of Florida
2013 INCENTIVE PLAN
ARTICLE 1 PURPOSE |
1 |
|
1.1 |
General |
1 |
|
1.2 |
History |
1 |
ARTICLE 2 DEFINITIONS |
1 |
|
2.1 |
Definitions |
1 |
ARTICLE 3 EFFECTIVE TERM OF PLAN |
7 |
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3.1 |
Effective Date |
7 |
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3.2 |
Term of Plan |
7 |
ARTICLE 4 ADMINISTRATION |
7 |
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4.1 |
Committee |
7 |
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4.2 |
Actions and Interpretations by the Committee |
8 |
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4.3 |
Authority of Committee |
8 |
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4.4 |
Delegation |
9 |
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4.5 |
Indemnification |
9 |
ARTICLE 5 SHARES SUBJECT TO THE PLAN |
10 |
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5.1 |
Number of Shares |
10 |
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5.2 |
Share Counting |
10 |
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5.3 |
Stock Distributed |
10 |
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5.4 |
Limitation on Awards |
11 |
ARTICLE 6 ELIGIBILITY |
11 |
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6.1 |
General |
11 |
ARTICLE 7 STOCK OPTIONS |
11 |
|
7.1 |
General |
11 |
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7.2 |
Incentive Stock Options |
12 |
ARTICLE 8 STOCK APPRECIATION RIGHTS |
13 |
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8.1 |
Grant of Stock Appreciation Rights |
13 |
ARTICLE 9 RESTRICTED STOCK, RESTRICTED STOCK UNITS AND DEFERRED STOCK UNITS |
14 |
|
9.1 |
Grant of Restricted Stock, Restricted Stock Units and Deferred Stock Units |
14 |
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9.2 |
Issuance and Restrictions |
14 |
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9.3 |
Dividends on Restricted Stock |
14 |
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9.4 |
Forfeiture |
14 |
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9.5 |
Delivery of Restricted Stock |
14 |
ARTICLE 10 PERFORMANCE AWARDS |
15 |
|
10.1 |
Grant of Performance Awards |
15 |
|
10.2 |
Performance Goals |
15 |
ARTICLE 11 QUALIFIED STOCK-BASED AWARDS |
15 |
|
11.1 |
Options and Stock Appreciation Rights |
15 |
|
11.2 |
Other Awards |
15 |
|
11.3 |
Performance Goals |
16 |
|
11.4 |
Inclusions and Exclusions from Performance Criteria |
17 |
|
11.5 |
Certification of Performance Goals |
17 |
|
11.6 |
Award Limits |
17 |
ARTICLE 12 DIVIDEND EQUIVALENTS |
17 |
|
12.1 |
Grant of Dividend Equivalents |
17 |
ARTICLE 13 STOCK OR OTHER STOCK-BASED AWARDS |
18 |
|
13.1 |
Grant of Stock or Other Stock-Based Awards |
18 |
ARTICLE 14 PROVISIONS APPLICABLE TO AWARDS |
18 |
|
14.1 |
Award Certificates |
18 |
|
14.2 |
Form of Payment of Awards |
18 |
|
14.3 |
Limits on Transfer |
18 |
|
14.4 |
Beneficiaries |
19 |
|
14.5 |
Stock Trading Restrictions |
19 |
|
14.6 |
Acceleration upon Death or Disability |
19 |
|
14.7 |
Effect of a Change in Control |
20 |
|
14.8 |
Acceleration for Other Reasons |
21 |
|
14.9 |
Forfeiture Events |
21 |
|
14.10 |
Substitute Awards |
21 |
ARTICLE 15 CHANGES IN CAPITAL STRUCTURE |
21 |
|
15.1 |
Mandatory Adjustments |
21 |
|
15.2 |
Discretionary Adjustments |
22 |
|
15.3 |
General |
22 |
ARTICLE 16 AMENDMENT, MODIFICATION AND TERMINATION |
22 |
|
16.1 |
Amendment, Modification and Termination |
22 |
|
16.2 |
Awards Previously Granted |
23 |
|
16.3 |
Compliance Amendments |
23 |
ARTICLE 17 GENERAL PROVISIONS |
23 |
|
17.1 |
Rights of Participants |
23 |
|
17.2 |
Withholding |
24 |
|
17.3 |
Special Provisions Related to Section 409A of the Code |
24 |
|
17.4 |
Unfunded Status of Awards |
26 |
|
17.5 |
Relationship to Other Benefits |
26 |
|
17.6 |
Expenses |
26 |
|
17.7 |
Titles and Headings |
26 |
|
17.8 |
Gender and Number |
26 |
|
17.9 |
Fractional Shares |
27 |
|
17.10 |
Government and Other Regulations |
27 |
|
17.11 |
Governing Law |
27 |
|
17.12 |
Severability |
27 |
|
17.13 |
No Limitations on Rights of Company |
27 |
AMENDED
AND RESTATED
Seacoast
Banking Corporation of Florida
2013 INCENTIVE PLAN
ARTICLE 1
PURPOSE
1.1. GENERAL.
The purpose of the Seacoast Banking Corporation of Florida 2013 Incentive Plan (the “Plan”) is to promote the success,
and enhance the value, of Seacoast Banking Corporation of Florida (the “Company”), by linking the personal interests
of employees, officers, directors, consultants and advisors of the Company or any Affiliate (as defined below) to those of Company
shareholders and by providing such persons with an incentive for outstanding performance. The Plan is further intended to provide
flexibility to the Company in its ability to motivate, attract, and retain the services of employees, officers, directors, consultants
and advisors upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely
dependent. Accordingly, the Plan permits the grant of incentive awards from time to time to selected employees, officers, directors,
consultants and advisors of the Company and its Affiliates.
1.2 HISTORY.
The Plan was originally adopted by the Board on February 19, 2013, and was approved by the shareholders on May 23, 2013. The
Plan was amended by the Board on February 26, 2015, to increase the number of shares authorized to be issued pursuant to the Plan,
and such amendment was approved by the shareholders on May 26, 2015.
ARTICLE 2
DEFINITIONS
2.1. DEFINITIONS.
When a word or phrase appears in this Plan with the initial letter capitalized, and the word or phrase does not commence a sentence,
the word or phrase shall generally be given the meaning ascribed to it in this Section or in Section 1.1 unless a clearly different
meaning is required by the context. The following words and phrases shall have the following meanings:
(a) “Affiliate”
means (i) any Subsidiary or Parent, or (ii) an entity that directly or through one or more intermediaries controls, is controlled
by or is under common control with, the Company, as determined by the Committee.
(b) “Award”
means an award of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Deferred Stock Units, Performance
Awards, Other Stock-Based Awards, or any other right or interest relating to Stock or cash, granted to a Participant under the
Plan.
(c) “Award
Certificate” means a written document, in such form as the Committee prescribes from time to time, setting forth the terms
and conditions of an Award. Award Certificates may be in the form of individual award agreements or certificates or a program document
describing the terms and provisions of an Award or series of Awards under the Plan. The Committee may provide for the use of electronic,
internet or other non-paper Award Certificates, and the use of electronic, internet or other non-paper means for the acceptance
thereof and actions thereunder by a Participant.
(d) “Beneficial
Owner” shall have the meaning given such term in Rule 13d-3 of the General Rules and Regulations under the 1934 Act.
(e) “Board”
means the Board of Directors of the Company.
(f) “Cause”
as a reason for a Participant’s termination of employment shall have the meaning assigned such term in the employment, severance
or similar agreement, if any, between such Participant and the Company or an Affiliate; provided, however, that if
there is no such employment, severance or similar agreement in which such term is defined, and unless otherwise defined in the
applicable Award Certificate, “Cause” shall mean any of the following acts by the Participant, as determined by the
Committee: gross neglect of duty, prolonged absence from duty without the consent of the Company, material breach by the Participant
of any published Company code of conduct or code of ethics; or willful misconduct, misfeasance or malfeasance of duty which is
reasonably determined to be detrimental to the Company. With respect to a Participant’s termination of directorship, “Cause”
means an act or failure to act that constitutes cause for removal of a director under applicable Florida law. The determination
of the Committee as to the existence of “Cause” shall be conclusive on the Participant and the Company.
(g) “Change
in Control” means and includes the occurrence of any one of the following events:
(i) during
any consecutive 12-month period, individuals who, at the beginning of such period, constitute the Board of Directors of the Company
(the “Incumbent Directors”) cease for any reason to constitute at least a majority of such Board, provided that any
person becoming a director after the beginning of such 12-month period and whose election or nomination for election was approved
by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided,
however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened
election contest with respect to the election or removal of directors (“Election Contest”) or other actual or threatened
solicitation of proxies or consents by or on behalf of any Person other than the Board (“Proxy Contest”), including
by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director;
or
(ii) any
person becomes a Beneficial Owner, directly or indirectly, of either (A) 35% or more of the then-outstanding shares of common stock
of the Company (“Company Common Stock”) or (B) securities of the Company representing 35% or more of the combined voting
power of the Company’s then outstanding securities eligible to vote for the election of directors (the “Company Voting
Securities”); provided, however, that for purposes of this subsection (ii), the following acquisitions of Company
Common Stock or Company Voting Securities shall not constitute a Change in Control: (w) an acquisition directly from the Company,
(x) an acquisition by the Company or a Subsidiary, (y) an acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any Subsidiary, or (z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection
(iii) below); or
(iii) the
consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving
the Company or a Subsidiary (a “Reorganization”), or the sale or other disposition of all or substantially all of the
Company’s assets (a “Sale”) or the acquisition of assets or stock of another corporation or other entity (an
“Acquisition”), unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all
of the individuals and entities who were the Beneficial Owners, respectively, of the outstanding Company Common Stock and outstanding
Company Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly,
more than 35% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such
Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such transaction owns the Company
or all or substantially all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving
Entity”) in substantially the same proportions as their ownership, immediately prior to such Reorganization, Sale or Acquisition,
of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no person (other
than (x) the Company or any Subsidiary, (y) the Surviving Entity or its ultimate parent entity, or (z) any employee benefit plan
(or related trust) sponsored or maintained by any of the foregoing) is the Beneficial Owner, directly or indirectly, of 35% or
more of the total common stock or 35% or more of the total voting power of the outstanding voting securities eligible to elect
directors of the Surviving Entity, and (C) at least a majority of the members of the board of directors of the Surviving Entity
were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such
Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in (A),
(B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or
(iv) approval
by the shareholders of the Company of a complete liquidation or dissolution of the Company.
(h) “Code”
means the Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references to sections of the
Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision.
(i) “Committee”
means the committee of the Board described in Article 4.
(j) “Company”
means Seacoast Banking Corporation of Florida, a Florida corporation, or any successor corporation.
(k) “Continuous
Service” means the absence of any interruption or termination of service as an employee, officer, director, consultant or
advisor of the Company or any Affiliate, as applicable; provided, however, that for purposes of an Incentive Stock
Option “Continuous Service” means the absence of any interruption or termination of service as an employee of the Company
or any Parent or Subsidiary, as applicable, pursuant to applicable tax regulations. Continuous Service shall not be considered
interrupted in the following cases: (i) a Participant transfers employment between the Company and an Affiliate or between Affiliates,
or (ii) in the discretion of the Committee as specified at or prior to such occurrence, in the case of a spin-off, sale or disposition
of the Participant’s employer from the Company or any Affiliate, or (iii) any leave of absence authorized in writing by the
Company prior to its commencement; provided, however, that for purposes of Incentive Stock Options, no such leave
may exceed 90 days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon
expiration of a leave of absence approved by the Company is not so guaranteed, on the 91st day of such leave any Incentive Stock
Option held by the Participant shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as
a Nonstatutory Stock Option. Whether military, government or other service or other leave of absence shall constitute a termination
of Continuous Service shall be determined in each case by the Committee at its discretion, and any determination by the Committee
shall be final and conclusive; provided, however, that for purposes of any Award that is subject to Code Section
409A, the determination of a leave of absence must comply with the requirements of a “bona fide leave of absence” as
provided in Treas. Reg. Section 1.409A-1(h).
(l) “Covered
Employee” means a covered employee as defined in Code Section 162(m)(3).
(m) “Deferred
Stock Unit” means a right granted to a Participant under Article 9 to receive Shares (or the equivalent value in cash or
other property if the Committee so provides) at a future time as determined by the Committee, or as determined by the Participant
within guidelines established by the Committee in the case of voluntary deferral elections.
(n) “Disability”
of a Participant means that the Participant (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 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 12 months, receiving income
replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Participant’s
employer. If the determination of Disability relates to an Incentive Stock Option, Disability means Permanent and Total Disability
as defined in Section 22(e)(3) of the Code. In the event of a dispute, the determination of whether a Participant is Disabled will
be made by the Committee and may be supported by the advice of a physician competent in the area to which such Disability relates.
(o) “Dividend
Equivalent” means a right granted with respect to an Award pursuant to Article 12.
(p) “Effective
Date” has the meaning assigned such term in Section 3.1.
(q) “Eligible
Participant” means an employee (including a leased employee), officer, director, consultant or advisor of the Company or
any Affiliate.
(r) “Exchange”
means any national securities exchange on which the Stock may from time to time be listed or traded.
(s) “Fair
Market Value,” on any date, means (i) if the Stock is listed on a securities exchange, the closing sales price on the principal
such exchange on such date or, in the absence of reported sales on such date, the closing sales price on the immediately preceding
date on which sales were reported, or (ii) if the Stock is not listed on a securities exchange, the mean between the bid and offered
prices as quoted by the applicable interdealer quotation system for such date, provided that if the Stock is not quoted on an interdealer
quotation system or it is determined that the fair market value is not properly reflected by such quotations, Fair Market Value
will be determined by such other method as the Committee determines in good faith to be reasonable and in compliance with Code
Section 409A.
(t) “Full-Value
Award” means an Award other than in the form of an Option or SAR, and which is settled by the issuance of Stock (or
at the discretion of the Committee, settled in cash valued by reference to Stock value).
(u) “Good
Reason” (or a similar term denoting constructive termination) has the meaning, if any, assigned such term in the employment,
consulting, severance or similar agreement, if any, between a Participant and the Company or an Affiliate; provided, however,
that if there is no such employment, consulting, severance or similar agreement in which such term is defined, “Good Reason”
shall have the meaning, if any, given such term in the applicable Award Certificate. If not defined in either such document, the
term “Good Reason” as used herein shall not apply to a particular Award.
(v) “Grant
Date” of an Award means the first date on which all necessary corporate action has been taken to approve the grant of the
Award as provided in the Plan, or such later date as is determined and specified as part of that authorization process. Notice
of the grant shall be a provided to the grantee within a reasonable time after the Grant Date.
(w) “Incentive
Stock Option” means an Option that is intended to be an incentive stock option and meets the requirements of Section 422
of the Code or any successor provision thereto.
(x) “Independent
Directors” means those members of the Board of Directors who qualify at any given time as (a) an “independent”
director under the applicable rules of each Exchange on which the Shares are listed, (b) a “non-employee” director
under Rule 16b-3 of the 1934 Act, and (c) an “outside” director under Section 162(m) of the Code.
(y) “Non-Employee
Director” means a director of the Company who is not a common law employee of the Company or an Affiliate.
(z) “Nonstatutory
Stock Option” means an Option that is not an Incentive Stock Option.
(aa) “Option”
means a right granted to a Participant under Article 7 of the Plan to purchase Stock at a specified price during specified time
periods. An Option may be either an Incentive Stock Option or a Nonstatutory Stock Option.
(bb) “Other
Stock-Based Award” means a right, granted to a Participant under Article 13, that relates to or is valued by reference to
Stock or other Awards relating to Stock.
(cc) “Parent”
means a corporation, limited liability company, partnership or other entity which owns or beneficially owns a majority of the outstanding
voting stock or voting power of the Company. Notwithstanding the above, with respect to an Incentive Stock Option, Parent shall
have the meaning set forth in Section 424(e) of the Code.
(dd) “Participant”
means an Eligible Participant who has been granted an Award under the Plan; provided that in the case of the death of a Participant,
the term “Participant” refers to a beneficiary designated pursuant to Section 14.4 or the legal guardian or other legal
representative acting in a fiduciary capacity on behalf of the Participant under applicable state law and court supervision.
(ee) “Performance
Award” means any award granted under the Plan pursuant to Article 10.
(ff) “Person”
means any individual, entity or group, within the meaning of Section 3(a)(9) of the 1934 Act and as used in Section 13(d)(3) or
14(d)(2) of the 1934 Act.
(gg) “Plan”
means the Seacoast Banking Corporation of Florida 2013 Incentive Plan, as amended from time to time.
(hh) “Qualified
Performance-Based Award” means an Award that is either (i) intended to qualify for the Section 162(m) Exemption and is made
subject to performance goals based on Qualified Business Criteria as set forth in Section 11.2, or (ii) an Option or SAR having
an exercise price equal to or greater than the Fair Market Value of the underlying Stock as of the Grant Date.
(ii) “Qualified
Business Criteria” means one or more of the Business Criteria listed in Section 11.2 upon which performance goals for certain
Qualified Performance-Based Awards may be established by the Committee.
(jj) “Restricted
Stock” means Stock granted to a Participant under Article 9 that is subject to certain restrictions and to risk of forfeiture.
(kk) “Restricted
Stock Unit” means the right granted to a Participant under Article 9 to receive shares of Stock (or the equivalent value
in cash or other property if the Committee so provides) in the future, which right is subject to certain restrictions and to risk
of forfeiture.
(ll) “Section
162(m) Exemption” means the exemption from the limitation on deductibility imposed by Section 162(m) of the Code that is
set forth in Section 162(m)(4)(C) of the Code or any successor provision thereto.
(mm) “Shares”
means shares of the Company’s Stock. If there has been an adjustment or substitution pursuant to Article 15, the term “Shares”
shall also include any shares of stock or other securities that are substituted for Shares or into which Shares are adjusted pursuant
to Article 15.
(nn) “Stock”
means the $0.10 par value common stock of the Company and such other securities of the Company as may be substituted for Stock
pursuant to Article 15.
(oo) “Stock
Appreciation Right” or “SAR” means a right granted to a Participant under Article 8 to receive a payment equal
to the difference between the Fair Market Value of a Share as of the date of exercise of the SAR over the base price of the SAR,
all as determined pursuant to Article 8.
(pp) “Subsidiary”
means any corporation, limited liability company, partnership or other entity of which a majority of the outstanding voting stock
or voting power is beneficially owned directly or indirectly by the Company. Notwithstanding the above, with respect to an Incentive
Stock Option, Subsidiary shall have the meaning set forth in Section 424(f) of the Code.
(qq) “1933
Act” means the Securities Act of 1933, as amended from time to time.
(rr) “1934
Act” means the Securities Exchange Act of 1934, as amended from time to time.
ARTICLE 3
EFFECTIVE TERM OF PLAN
3.1. EFFECTIVE
DATE. Subject to the approval of the Plan by the Company’s shareholders within 12 months after the Plan’s adoption
by the Board, the Plan will become effective on the date that it is adopted by the Board (the “Effective Date”).
3.2. TERMINATION
OF PLAN. Unless earlier terminated as provided herein, the Plan shall continue in effect until the tenth anniversary of the
Effective Date or, if the shareholders approve an amendment to the Plan that increases the number of Shares subject to the Plan,
the tenth anniversary of the date of such approval. The termination of the Plan on such date shall not affect the validity of any
Award outstanding on the date of termination, which shall continue to be governed by the applicable terms and conditions of the
Plan.
ARTICLE 4
ADMINISTRATION
4.1. COMMITTEE.
The Plan shall be administered by a Committee appointed by the Board (which Committee shall consist of at least two directors)
or, at the discretion of the Board from time to time, the Plan may be administered by the Board. It is intended that at least two
of the directors appointed to serve on the Committee shall be Independent Directors and that any such members of the Committee
who do not so qualify shall abstain from participating in any decision to make or administer Awards that are made to Eligible Participants
who at the time of consideration for such Award (i) are persons subject to the short-swing profit rules of Section 16 of the 1934
Act, or (ii) are reasonably anticipated to become Covered Employees during the term of the Award. However, the mere fact that a
Committee member shall fail to qualify as an Independent Director or shall fail to abstain from such action shall not invalidate
any Award made by the Committee which Award is otherwise validly made under the Plan. The members of the Committee shall be appointed
by, and may be changed at any time and from time to time in the discretion of, the Board. Unless and until changed by the Board,
the Compensation and Governance Committee of the Board is designated as the Committee to administer the Plan. The Board may reserve
to itself any or all of the authority and responsibility of the Committee under the Plan or may act as administrator of the Plan
for any and all purposes. To the extent the Board has reserved any authority and responsibility or during any time that the Board
is acting as administrator of the Plan, it shall have all the powers and protections of the Committee hereunder, and any reference
herein to the Committee (other than in this Section 4.1) shall include the Board. To the extent any action of the Board under the
Plan conflicts with actions taken by the Committee, the actions of the Board shall control.
4.2. ACTION
AND INTERPRETATIONS BY THE COMMITTEE. For purposes of administering the Plan, the Committee may from time to time adopt rules,
regulations, guidelines and procedures for carrying out the provisions and purposes of the Plan and make such other determinations,
not inconsistent with the Plan, as the Committee may deem appropriate. The Committee may correct any defect, supply any omission
or reconcile any inconsistency in the Plan or in any Award in the manner and to the extent it deems necessary to carry out the
intent of the Plan. The Committee’s interpretation of the Plan, any Awards granted under the Plan, any Award Certificate
and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties.
Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that
member by any officer or other employee of the Company or any Affiliate, the Company’s or an Affiliate’s independent
certified public accountants, Company counsel or any executive compensation consultant or other professional retained by the Company
to assist in the administration of the Plan. No member of the Committee will be liable for any good faith determination, act or
omission in connection with the Plan or any Award.
4.3. AUTHORITY
OF COMMITTEE. Except as provided in Section 4.1 and 4.5 hereof, the Committee has the exclusive power, authority and discretion
to:
|
(b) |
Designate Participants; |
(c) Determine
the type or types of Awards to be granted to each Participant;
(d) Determine
the number of Awards to be granted and the number of Shares or dollar amount to which an Award will relate;
(e) Determine
the terms and conditions of any Award granted under the Plan;
(f) Prescribe
the form of each Award Certificate, which need not be identical for each Participant;
(g) Decide
all other matters that must be determined in connection with an Award;
(h) Establish,
adopt or revise any rules, regulations, guidelines or procedures as it may deem necessary or advisable to administer the Plan;
(i) Make
all other decisions and determinations that may be required under the Plan or as the Committee deems necessary or advisable to
administer the Plan;
(j) Amend
the Plan or any Award Certificate as provided herein; and
(k) Adopt
such modifications, procedures, and subplans as may be necessary or desirable to comply with provisions of the laws of the United
States or any non-U.S. jurisdictions in which the Company or any Affiliate may operate, in order to assure the viability of the
benefits of Awards granted to participants located in the United States or such other jurisdictions and to further the objectives
of the Plan.
Notwithstanding any
of the foregoing, grants of Awards to Non-Employee Directors hereunder shall (i) be subject to the applicable award limits set
forth in Section 5.4 hereof, and (ii) be made only in accordance with the terms, conditions and parameters of a plan, program or
policy for the compensation of Non-Employee Directors as in effect from time to time that is approved and administered by a committee
of the Board consisting solely of Independent Directors. The Committee may not make other discretionary grants hereunder to Non-Employee
Directors.
4.4. DELEGATION.
The Board or the Committee may, by resolution, expressly delegate to a special committee, consisting of one or more directors who
may but need not be officers of the Company, the authority, within specified parameters as to the number and terms of Awards, to
(i) designate officers and/or employees of the Company or any of its Affiliates to be recipients of Awards under the Plan, and
(ii) to determine the number of such Awards to be received by any such Participants; provided, however, that such
delegation of duties and responsibilities to an officer of the Company may not be made with respect to the grant of Awards to eligible
participants (a) who are subject to Section 16(a) of the 1934 Act at the Grant Date, or (b) who as of the Grant Date are reasonably
anticipated to be become Covered Employees during the term of the Award. The acts of such delegates shall be treated hereunder
as acts of the Board and such delegates shall report regularly to the Board and the Compensation Committee regarding the delegated
duties and responsibilities and any Awards so granted.
4.5. INDEMNIFICATION.
Each person who is or shall have been a member of the Committee, or of the Board, or an officer of the Company to whom authority
was delegated in accordance with this Article 4 shall be indemnified and held harmless by the Company against and from any
loss, cost, liability, or expense that may be imposed upon or reasonably incurred by 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, unless such loss, cost, liability, or expense is
a result of his or her own willful misconduct or except as expressly provided by statute. The foregoing right of indemnification
shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s charter
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 5
SHARES SUBJECT TO THE PLAN
5.1. NUMBER
OF SHARES. Subject to adjustment as provided in Sections 5.2 and Section 15.1, the aggregate number of Shares reserved and
available for issuance pursuant to Awards granted under the Plan shall be 3,000,000. The maximum number of Shares that may be issued
upon exercise of Incentive Stock Options granted under the Plan shall be 800,000. From and after the Effective Date, no further
awards shall be granted under the Company’s 2000 Long-Term Incentive Plan or the Company’s 2008 Long-Term Incentive
Plan (the “Prior Plans”) and the Prior Plans shall remain in effect only so long as awards granted thereunder shall
remain outstanding.
5.2. SHARE
COUNTING. The maximum number of Shares covered by an Award shall be subtracted from the Plan share reserve as of the Grant
Date, but shall be added back to the Plan share reserve in accordance with this Section 5.2.
(a) To
the extent that an Award is canceled, terminates, expires, is forfeited or lapses for any reason, any unissued or forfeited Shares
originally subject to the Award will be added back to the Plan share reserve and again be available for issuance pursuant to Awards
granted under the Plan.
(b) Shares
subject to Awards settled in cash will be added back to the Plan share reserve and again be available for issuance pursuant to
Awards granted under the Plan.
(c) To
the extent that the full number of Shares subject to a Performance Award is not issued by reason of failure to achieve maximum
performance goals, the unearned Shares originally subject to the Award will be added back to the Plan share reserve and again be
available for issuance pursuant to Awards granted under the Plan.
(d) Substitute
Awards granted pursuant to Section 14.10 of the Plan shall not count against the Shares otherwise available for issuance under
the Plan under Section 5.1.
(e) Subject
to applicable Exchange requirements, shares available under a shareholder-approved plan of a company acquired by the Company (as
appropriately adjusted to Shares to reflect the transaction) may be issued under the Plan pursuant to Awards granted to individuals
who were not employees of the Company or its Affiliates immediately before such transaction and will not count against the maximum
share limitation specified in Section 5.1.
(f) The
following Shares may not again be made available for issuance as Awards under the Plan: (i) Shares not issued or delivered as a
result of the net settlement of an outstanding Option or SAR, (ii) Shares used to pay the exercise price or withholding taxes related
to an outstanding Option or SAR, or (iii) Shares repurchased on the open market with the proceeds of the exercise price of an Option.
5.3. STOCK
DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Stock,
treasury Stock or Stock purchased on the open market.
5.4. LIMITATION
ON AWARDS. Notwithstanding any provision in the Plan to the contrary (but subject to adjustment as provided in Article 15):
(a) Options.
The maximum aggregate number of Shares subject to Options granted under the Plan in any 12-month period to any one Participant
shall be 200,000.
(b) SARs.
The maximum number of Shares subject to Stock Appreciation Rights granted under the Plan in any 12-month period to any one Participant
shall be 200,000.
(c) Restricted
Stock or Restricted Stock Units. The maximum aggregate number of Shares underlying Awards of Restricted Stock or Restricted
Stock Units granted under the Plan in any 12-month period to any one Participant shall be 200,000.
(d) Other
Stock-Based Awards. The maximum aggregate number of Shares associated with Other Stock-Based Awards granted under the Plan
in any 12-month period to any one Participant shall be 200,000.
(e) Cash-Based
Awards. The maximum aggregate amount that may be paid with respect to cash-based Awards under the Plan to any one Participant
in any fiscal year of the Company shall be $1,000,000.
(f) Awards
to Non-Employee Directors. The maximum aggregate number of Shares associated with any Award granted under the Plan in
any 12-month period to any one Non-Employee Director shall be 200,000.
ARTICLE 6
ELIGIBILITY
6.1. GENERAL.
Awards may be granted only to Eligible Participants. Incentive Stock Options may be granted only to Eligible Participants who are
employees of the Company or a Parent or Subsidiary as defined in Section 424(e) and (f) of the Code. Eligible Participants who
are service providers to an Affiliate may be granted Options or SARs under this Plan only if the Affiliate qualifies as an “eligible
issuer of service recipient stock” within the meaning of §1.409A-1(b)(5)(iii)(E) of the final regulations under Code
Section 409A.
ARTICLE 7
STOCK OPTIONS
7.1. GENERAL.
The Committee is authorized to grant Options to Participants on the following terms and conditions:
(a) EXERCISE
PRICE. The exercise price per Share under an Option shall be determined by the Committee, provided that the exercise price
for any Option (other than an Option issued as a substitute Award pursuant to Section 14.10) shall not be less than the Fair Market
Value as of the Grant Date.
(b) PROHIBITION
ON REPRICING. Except as otherwise provided in Article 15, without the prior approval of shareholders of the Company: (i) the
exercise price of an Option may not be reduced, directly or indirectly, (ii) an Option may not be cancelled in exchange for cash,
other Awards, or Options or SARs with an exercise or base price that is less than the exercise price of the original Option, or
otherwise, and (iii) the Company may not repurchase an Option for value (in cash or otherwise) from a Participant if the current
Fair Market Value of the Shares underlying the Option is lower than the exercise price per share of the Option.
(c) TIME
AND CONDITIONS OF EXERCISE. The Committee shall determine the time or times at which an Option may be exercised in whole or
in part, subject to Section 7.1(e), including a provision that an Option that is otherwise exercisable and has an exercise price
that is less than the Fair Market Value of the Stock on the last day of its term will be automatically exercised on such final
date of the term by means of a “net exercise,” thus entitling the optionee to Shares equal to the intrinsic value of
the Option on such exercise date, less the number of Shares required for tax withholding. The Committee shall also determine the
performance or other conditions, if any, that must be satisfied before all or part of an Option may be exercised or vested.
(d) PAYMENT.
The Committee shall determine the methods by which the exercise price of an Option may be paid, the form of payment, and the methods
by which Shares shall be delivered or deemed to be delivered to Participants. As determined by the Committee at or after the Grant
Date, payment of the exercise price of an Option may be made in, in whole or in part, in the form of (i) cash or cash equivalents,
(ii) delivery (by either actual delivery or attestation) of previously-acquired Shares based on the Fair Market Value of the Shares
on the date the Option is exercised, (iii) withholding of Shares from the Option based on the Fair Market Value of the Shares on
the date the Option is exercised, (iv) broker-assisted market sales, or (iv) any other “cashless exercise” arrangement.
(e) EXERCISE
TERM. Except for Nonstatutory Options granted to Participants outside the United States, no Option granted under the Plan shall
be exercisable for more than ten years from the Grant Date.
(f) NO
DEFERRAL FEATURE. No Option shall provide for any feature for the deferral of compensation other than the deferral of recognition
of income until the exercise or disposition of the Option.
(g) NO
DIVIDEND EQUIVALENTS. No Option shall provide for Dividend Equivalents.
7.2. INCENTIVE
STOCK OPTIONS. The terms of any Incentive Stock Options granted under the Plan must comply with the requirements of Section
422 of the Code. Without limiting the foregoing, any Incentive Stock Option granted to a Participant who at the Grant Date owns
more than 10% of the voting power of all classes of shares of the Company must have an exercise price per Share of not less than
110% of the Fair Market Value per Share on the Grant Date and an Option term of not more than five years. If all of the requirements
of Section 422 of the Code (including the above) are not met, the Option shall automatically become a Nonstatutory Stock Option.
ARTICLE 8
STOCK APPRECIATION RIGHTS
8.1. GRANT
OF Stock Appreciation Rights. The Committee is authorized to grant Stock Appreciation
Rights to Participants on the following terms and conditions:
(a) RIGHT
TO PAYMENT. Upon the exercise of a SAR, the Participant has the right to receive, for each Share with respect to which the
SAR is being exercised, the excess, if any, of:
(1) The
Fair Market Value of one Share on the date of exercise; over
(2) The
base price of the SAR as determined by the Committee and set forth in the Award Certificate, which shall not be less than the Fair
Market Value of one Share on the Grant Date.
(b) PROHIBITION
ON REPRICING. Except as otherwise provided in Article 15, without the prior approval of shareholders of the Company: (i) the
base price of a SAR may not be reduced, directly or indirectly, (ii) a SAR may not be cancelled in exchange for cash, other Awards,
or Options or SARs with an exercise or base price that is less than the base price of the original SAR, or otherwise, and (iii)
the Company may not repurchase a SAR for value (in cash or otherwise) from a Participant if the current Fair Market Value of the
Shares underlying the SAR is lower than the base price per share of the SAR.
(c) TIME
AND CONDITIONS OF EXERCISE. The Committee shall determine the time or times at which a SAR may be exercised in whole or in
part, including a provision that a SAR that is otherwise exercisable and has a base price that is less than the Fair Market Value
of the Stock on the last day of its term will be automatically exercised on such final date of the term, thus entitling the holder
to cash or Shares equal to the intrinsic value of the SAR on such exercise date, less the cash or number of Shares required for
tax withholding. Except for SARs granted to Participants outside the United States, no SAR shall be exercisable for more than ten
years from the Grant Date.
(d) NO
DEFERRAL FEATURE. No SAR shall provide for any feature for the deferral of compensation other than the deferral of recognition
of income until the exercise or disposition of the SAR.
(e) NO
DIVIDEND EQUIVALENTS. No SAR shall provide for Dividend Equivalents.
(f) OTHER
TERMS. All SARs shall be evidenced by an Award Certificate. Subject to the limitations of this Article 8, the terms, methods
of exercise, methods of settlement, form of consideration payable in settlement (e.g., cash, Shares or other property), and any
other terms and conditions of the SAR shall be determined by the Committee at the time of the grant and shall be reflected in the
Award Certificate.
ARTICLE 9
RESTRICTED STOCK, RESTRICTED STOCK UNITS
AND DEFERRED STOCK UNITS
9.1. GRANT
OF RESTRICTED STOCK, RESTRICTED STOCK UNITS AND DEFERRED STOCK UNITS. The Committee is authorized to make Awards of Restricted
Stock, Restricted Stock Units or Deferred Stock Units to Participants in such amounts and subject to such terms and conditions
as may be selected by the Committee. An Award of Restricted Stock, Restricted Stock Units or Deferred Stock Units shall be evidenced
by an Award Certificate setting forth the terms, conditions, and restrictions applicable to the Award.
9.2. ISSUANCE
AND RESTRICTIONS. Restricted Stock, Restricted Stock Units or Deferred Stock Units shall be subject to such restrictions on
transferability and other restrictions as the Committee may impose (including, for example, limitations on the right to vote Restricted
Stock or the right to receive dividends on the Restricted Stock). These restrictions may lapse separately or in combination at
such times, under such circumstances, in such installments, upon the satisfaction of performance goals or otherwise, as the Committee
determines at the time of the grant of the Award or thereafter. Except as otherwise provided in an Award Certificate or any special
Plan document governing an Award, a Participant shall have none of the rights of a shareholder with respect to Restricted Stock
Units or Deferred Stock Units until such time as Shares of Stock are paid in settlement of such Awards.
9.3 DIVIDENDS
ON RESTRICTED STOCK. In the case of Restricted Stock, the Committee may provide that ordinary cash dividends declared on the
Shares before they are vested (i) will be forfeited, (ii) will be deemed to have been reinvested in additional Shares or otherwise
reinvested (subject to Share availability under Section 5.1 hereof), or (iii) in the case of Restricted Stock that is not subject
to performance-based vesting, will be paid or distributed to the Participant as accrued (in which case, such dividends must be
paid or distributed no later than the 15th day of the 3rd month following the later of (A) the calendar year
in which the corresponding dividends were paid to shareholders, or (B) the first calendar year in which the Participant’s
right to such dividends is no longer subject to a substantial risk of forfeiture). Unless otherwise provided by the Committee,
dividends accrued on Shares of Restricted Stock before they are vested shall, as provided in the Award Certificate, either (i)
be reinvested in the form of additional Shares, which shall be subject to the same vesting provisions as provided for the host
Award, or (ii) be credited by the Company to an account for the Participant and accumulated without interest until the date upon
which the host Award becomes vested, and any dividends accrued with respect to forfeited Restricted Stock will be reconveyed to
the Company without further consideration or any act or action by the Participant. In no event shall dividends with respect to
Restricted Stock that is subject to performance-based vesting be paid or distributed until the performance-based vesting provisions
of such Restricted Stock lapse.
9.4. FORFEITURE.
Subject to the terms of the Award Certificate and except as otherwise determined by the Committee at the time of the grant of the
Award or thereafter, upon termination of Continuous Service during the applicable restriction period or upon failure to satisfy
a performance goal during the applicable restriction period, Restricted Stock or Restricted Stock Units that are at that time subject
to restrictions shall be forfeited.
9.5. DELIVERY
OF RESTRICTED STOCK. Shares of Restricted Stock shall be delivered to the Participant at the Grant Date either by book-entry
registration or by delivering to the Participant, or a custodian or escrow agent (including, without limitation, the Company or
one or more of its employees) designated by the Committee, a stock certificate or certificates registered in the name of the Participant.
If physical certificates representing shares of Restricted Stock are registered in the name of the Participant, such certificates
must bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock.
ARTICLE 10
PERFORMANCE AWARDS
10.1. GRANT
OF PERFORMANCE AWARDS. The Committee is authorized to grant any Award under this Plan, including cash-based Awards, with performance-based
vesting criteria, on such terms and conditions as may be selected by the Committee. Any such Awards with performance-based vesting
criteria are referred to herein as Performance Awards. The Committee shall have the complete discretion to determine the number
of Performance Awards granted to each Participant, subject to Section 5.4, and to designate the provisions of such Performance
Awards as provided in Section 4.3. All Performance Awards shall be evidenced by an Award Certificate or a written program established
by the Committee, pursuant to which Performance Awards are awarded under the Plan under uniform terms, conditions and restrictions
set forth in such written program.
10.2. PERFORMANCE
GOALS. The Committee may establish performance goals for Performance Awards which may be based on any criteria selected by
the Committee. Such performance goals may be described in terms of Company-wide objectives or in terms of objectives that relate
to the performance of the Participant, an Affiliate or a division, region, department or function within the Company or an Affiliate.
If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company
or the manner in which the Company or an Affiliate conducts its business, or other events or circumstances render performance goals
to be unsuitable, the Committee may modify such performance goals in whole or in part, as the Committee deems appropriate. If a
Participant is promoted, demoted or transferred to a different business unit or function during a performance period, the Committee
may determine that the performance goals or performance period are no longer appropriate and may (i) adjust, change or eliminate
the performance goals or the applicable performance period as it deems appropriate to make such goals and period comparable to
the initial goals and period, or (ii) make a cash payment to the participant in an amount determined by the Committee. The foregoing
two sentences shall not apply with respect to a Performance Award that is intended to be a Qualified Performance-Based Award if
the recipient of such award (a) was a Covered Employee on the date of the modification, adjustment, change or elimination of the
performance goals or performance period, or (b) in the reasonable judgment of the Committee, may be a Covered Employee on the date
the Performance Award is expected to be paid.
ARTICLE 11
QUALIFIED PERFORMANCE-BASED AWARDS
11.1. OPTIONS
AND STOCK APPRECIATION RIGHTS. The provisions of the Plan are intended to ensure that all Options and Stock Appreciation Rights
granted hereunder to any Covered Employee shall qualify for the Section 162(m) Exemption.
11.2. OTHER
AWARDS. When granting any other Award, the Committee may designate such Award as a Qualified Performance-Based Award, based
upon a determination that the recipient is or may be a Covered Employee with respect to such Award, and the Committee wishes such
Award to qualify for the Section 162(m) Exemption. If an Award is so designated, the Committee shall establish performance goals
for such Award within the time period prescribed by Section 162(m) of the Code based on one or more of the following Qualified
Business Criteria, which may be expressed in terms of Company-wide objectives or in terms of objectives that relate to the performance
of an Affiliate or a division, region, department or function within the Company or an Affiliate:
¾
Revenue
¾
Sales
¾
Profit (net profit, gross profit, operating profit, economic profit, profit margins or other corporate profit measures)
¾
Earnings (EBIT, EBITDA, earnings per share, or other corporate earnings measures)
¾
Net income (before or after taxes, operating income or other income measures)
¾
Cash (cash flow, cash generation or other cash measures)
¾
Stock price or performance
¾
Total shareholder return (stock price appreciation plus reinvested dividends divided by beginning share price)
¾
Economic value added
¾
Return measures (including, but not limited to, return on assets, capital, equity, investments or sales, and cash flow return on
assets, capital, equity, or sales);
¾
Market share
¾
Improvements in capital structure
¾
Expenses (expense management, expense ratio, expense efficiency ratios or other expense measures)
¾
Business expansion or consolidation (acquisitions and divestitures)
¾
Internal rate of return or increase in net present value
¾
Productivity measures
¾
Cost reduction measures
¾
Strategic plan development and implementation
¾
Customer measures (including changes in number of customers or households)
Performance goals with
respect to the foregoing Qualified Business Criteria may be specified in absolute terms, in percentages, or in terms of growth
from period to period or growth rates over time, as well as measured relative to the performance of a group of comparator companies,
or a published or special index, or a stock market index, that the Committee deems appropriate. Any member of a comparator group
or an index that ceases to exist during a measurement period shall be disregarded for the entire measurement period. Performance
Goals need not be based upon an increase or positive result under a business criterion and could include, for example, the maintenance
of the status quo or the limitation of economic losses (measured, in each case, by reference to a specific business criterion).
11.3. PERFORMANCE
GOALS. Each Qualified Performance-Based Award (other than a market-priced Option or SAR) shall be earned, vested and payable
(as applicable) only upon the achievement of performance goals established by the Committee based upon one or more of the Qualified
Business Criteria, together with the satisfaction of any other conditions, such as continued employment, as the Committee may determine
to be appropriate; provided, however, that the Committee may provide, either in connection with the grant thereof
or by amendment thereafter, that achievement of such performance goals will be waived, in whole or in part, upon (i) the termination
of employment of a Participant by reason of death or Disability, or (ii) the occurrence of a Change in Control. Performance periods
established by the Committee for any such Qualified Performance-Based Award may be as short as three months and may be any longer
period. In addition, the Committee has the right, in connection with the grant of a Qualified Performance-Based Award, to exercise
negative discretion to determine that the portion of such Award actually earned, vested and/or payable (as applicable) shall be
less than the portion that would be earned, vested and/or payable based solely upon application of the applicable performance goals.
11.4. INCLUSIONS
AND EXCLUSIONS FROM PERFORMANCE CRITERIA. The Committee may provide in any Qualified Performance-Based Award, at the time the
performance goals are established, that any evaluation of performance shall exclude or otherwise objectively adjust for any specified
circumstance or event that occurs during a performance period, including by way of example but without limitation the following:
(a) asset write-downs or impairment charges; (b) litigation or claim judgments or settlements; (c) the effect of changes in tax
laws, accounting principles or other laws or provisions affecting reported results; (d) accruals for reorganization and restructuring
programs; (e) extraordinary nonrecurring items as described in then-current accounting principles; (f) extraordinary nonrecurring
items as described in management’s discussion and analysis of financial condition and results of operations appearing in
the Company’s annual report to shareholders for the applicable year; (g) acquisitions or divestitures; and (h) foreign exchange
gains and losses. To the extent such inclusions or exclusions affect Awards to Covered Employees, they shall be prescribed in a
form that meets the requirements of Code Section 162(m) for deductibility.
11.5. CERTIFICATION
OF PERFORMANCE GOALS. Any payment of a Qualified Performance-Based Award granted with performance goals pursuant to Section
11.3 above shall be conditioned on the written certification of the Committee in each case that the performance goals and any other
material conditions were satisfied. Except as specifically provided in Section 11.3, no Qualified Performance-Based Award held
by a Covered Employee or by an employee who in the reasonable judgment of the Committee may be a Covered Employee on the date of
payment, may be amended, nor may the Committee exercise any discretionary authority it may otherwise have under the Plan with respect
to a Qualified Performance-Based Award under the Plan, in any manner to waive the achievement of the applicable performance goal
based on Qualified Business Criteria or to increase the amount payable pursuant thereto or the value thereof, or otherwise in a
manner that would cause the Qualified Performance-Based Award to cease to qualify for the Section 162(m) Exemption.
11.6. AWARD
LIMITS. Section 5.4 sets forth (i) the maximum number of Shares that may be granted in any one-year period to a Participant
in designated forms of stock-based Awards, and (ii) the maximum aggregate dollar amount that may be paid with respect to cash-based
Awards under the Plan to any one Participant in any fiscal year of the Company.
ARTICLE 12
DIVIDEND EQUIVALENTS
12.1. GRANT
OF DIVIDEND EQUIVALENTS. The Committee is authorized to grant Dividend Equivalents with respect to Full-Value Awards granted
hereunder, subject to such terms and conditions as may be selected by the Committee. Dividend Equivalents shall entitle the Participant
to receive payments equal to ordinary cash dividends or distributions with respect to all or a portion of the number of Shares
subject to a Full-Value Award, as determined by the Committee. The Committee may provide that Dividend Equivalents (i) will be
deemed to have been reinvested in additional Shares or otherwise reinvested, or (ii) except in the case of Performance Awards,
will be paid or distributed to the Participant as accrued (in which case, such Dividend Equivalents must be paid or distributed
no later than the 15th day of the 3rd month following the later of (A) the calendar year in which the corresponding
dividends were paid to shareholders, or (B) the first calendar year in which the Participant’s right to such Dividends Equivalents
is no longer subject to a substantial risk of forfeiture). Unless otherwise provided by the Committee, Dividend Equivalents accruing
on unvested Full-Value Awards shall, as provided in the Award Certificate, either (i) be reinvested in the form of additional Shares,
which shall be subject to the same vesting provisions as provided for the host Award, or (ii) be credited by the Company to an
account for the Participant and accumulated without interest until the date upon which the host Award becomes vested, and any Dividend
Equivalents accrued with respect to forfeited Awards will be reconveyed to the Company without further consideration or any act
or action by the Participant. In no event shall Dividend Equivalents with respect to a Performance Award be paid or distributed
until the performance-based vesting provisions of the Performance Award lapse.
ARTICLE 13
STOCK OR OTHER STOCK-BASED AWARDS
13.1. GRANT
OF STOCK OR OTHER STOCK-BASED AWARDS. The Committee is authorized, subject to limitations under applicable law, to grant to
Participants such other Awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related
to Shares, as deemed by the Committee to be consistent with the purposes of the Plan, including without limitation Shares awarded
purely as a “bonus” and not subject to any restrictions or conditions, convertible or exchangeable debt securities,
other rights convertible or exchangeable into Shares, and Awards valued by reference to book value of Shares or the value of securities
of or the performance of specified Parents or Subsidiaries. The Committee shall determine the terms and conditions of such Awards.
ARTICLE 14
PROVISIONS APPLICABLE TO AWARDS
14.1. AWARD
CERTIFICATES. Each Award shall be evidenced by an Award Certificate. Each Award Certificate shall include such provisions,
not inconsistent with the Plan, as may be specified by the Committee.
14.2. FORM
OF PAYMENT FOR AWARDS. At the discretion of the Committee, payment of Awards may be made in cash, Stock, a combination of cash
and Stock, or any other form of property as the Committee shall determine. In addition, payment of Awards may include such terms,
conditions, restrictions and/or limitations, if any, as the Committee deems appropriate, including, in the case of Awards paid
in the form of Stock, restrictions on transfer and forfeiture provisions. Further, payment of Awards may be made in the form of
a lump sum, or in installments, as determined by the Committee.
14.3. LIMITS
ON TRANSFER. No right or interest of a Participant in any unexercised or restricted Award may be pledged, encumbered, or hypothecated
to or in favor of any party other than the Company or an Affiliate, or shall be subject to any lien, obligation, or liability of
such Participant to any other party other than the Company or an Affiliate. No unexercised or restricted Award shall be assignable
or transferable by a Participant other than by will or the laws of descent and distribution; provided, however, that
the Committee may (but need not) permit other transfers (other than transfers for value) where the Committee concludes that such
transferability (i) does not result in accelerated taxation, (ii) does not cause any Option intended to be an Incentive Stock Option
to fail to be described in Code Section 422(b), and (iii) is otherwise appropriate and desirable, taking into account any factors
deemed relevant, including without limitation, state or federal tax or securities laws applicable to transferable Awards.
14.4. BENEFICIARIES.
Notwithstanding Section 14.3, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise
the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary,
legal guardian, legal representative, or other person claiming any rights under the Plan is subject to all terms and conditions
of the Plan and any Award Certificate applicable to the Participant, except to the extent the Plan and Award Certificate otherwise
provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If no beneficiary has been designated
or survives the Participant, any payment due to the Participant shall be made to the Participant’s estate. Subject to the
foregoing, a beneficiary designation may be changed or revoked by a Participant, in the manner provided by the Company, at any
time provided the change or revocation is filed with the Committee.
14.5. STOCK
TRADING RESTRICTIONS. All Stock issuable under the Plan is subject to any stop-transfer orders and other restrictions as the
Committee deems necessary or advisable to comply with federal or state securities laws, rules and regulations and the rules of
any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded. The Committee may
place legends on any Stock certificate or issue instructions to the transfer agent to reference restrictions applicable to the
Stock.
14.6. ACCELERATION
UPON DEATH OR DISABILITY. Except as otherwise provided in the Award Certificate or any special Plan document governing an Award,
upon the termination of a person’s Continuous Service by reason of death or Disability:
(i) all
of that Participant’s outstanding Options and SARs shall become fully exercisable, and shall thereafter remain exercisable
for a period of one (1) year or until the earlier expiration of the original term of the Option or SAR;
(ii) all
time-based vesting restrictions on that Participant’s outstanding Awards shall lapse as of the date of termination; and
(iii) the
payout opportunities attainable under all of that Participant’s outstanding performance-based Awards shall be deemed to have
been fully earned as of the date of termination as follows:
(A) if
the date of termination occurs during the first half of the applicable performance period, all relevant performance goals will
be deemed to have been achieved at the “target” level, and
(B) if
the date of termination occurs during the second half of the applicable performance period, then all relevant performance goals
will be deemed to have been achieved at the “target” level or, if greater, the actual level of achievement of all relevant
performance goals against target will be measured as of the end of the calendar quarter immediately preceding the date of termination.
To the extent that
this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Code Section 422(d), the excess Options
shall be deemed to be Nonstatutory Stock Options.
14.7. EFFECT
OF A CHANGE IN CONTROL. The provisions of this Section 14.7 shall apply in the case of a Change in Control, unless otherwise
provided in the Award Certificate or any special Plan document or separate agreement with a Participant governing an Award.
(a) Awards
Assumed or Substituted by Surviving Entity. With respect to Awards assumed by the Surviving Entity or otherwise equitably converted
or substituted in connection with a Change in Control: if within two years after the effective date of the Change in Control, a
Participant’s employment is terminated without Cause or the Participant resigns for Good Reason, then (i) all of that Participant’s
outstanding Options, SARs and other Awards in the nature of rights that may be exercised shall become fully exercisable, (ii) all
time-based vesting restrictions on his or her outstanding Awards shall lapse, and (iii) the payout level under all of that Participant’s
performance-based Awards that were outstanding immediately prior to effective time of the Change in Control shall be determined
and deemed to have been earned as of the date of termination based upon (A) an assumed achievement of all relevant performance
goals at the “target” level if the date of termination occurs during the first half of the applicable performance period,
or (B) the actual level of achievement of all relevant performance goals against target (measured as of the end of the calendar
quarter immediately preceding the date of termination), if the date of termination occurs during the second half of the applicable
performance period, and, in either such case, there shall be a prorata payout to such Participant within sixty (60) days following
the date of termination of employment (unless a later date is required by Section 17.3 hereof), based upon the length of time within
the performance period that has elapsed prior to the date of termination of employment. With regard to each Award, a Participant
shall not be considered to have resigned for Good Reason unless either (i) the Award Certificate includes such provision or (ii)
the Participant is party to an employment, severance or similar agreement with the Company or an Affiliate that includes provisions
in which the Participant is permitted to resign for Good Reason. Any Awards shall thereafter continue or lapse in accordance with
the other provisions of the Plan and the Award Certificate. To the extent that this provision causes Incentive Stock Options to
exceed the dollar limitation set forth in Code Section 422(d), the excess Options shall be deemed to be Nonstatutory Stock Options.
(b) Awards
not Assumed or Substituted by Surviving Entity. Upon the occurrence of a Change in Control, and except with respect to any
Awards assumed by the Surviving Entity or otherwise equitably converted or substituted in connection with the Change in Control
in a manner approved by the Committee or the Board: (i) outstanding Options, SARs, and other Awards in the nature of rights that
may be exercised shall become fully exercisable, (ii) time-based vesting restrictions on outstanding Awards shall lapse, and (iii)
the target payout opportunities attainable under outstanding performance-based Awards shall be deemed to have been fully earned
as of the effective date of the Change in Control based upon (A) an assumed achievement of all relevant performance goals at the
“target” level if the Change in Control occurs during the first half of the applicable performance period, or (B) the
greater of the “target” level or the actual level of achievement of all relevant performance goals against target measured
as of the date of the Change in Control, if the Change in Control occurs during the second half of the applicable performance period.
Any Awards shall thereafter continue or lapse in accordance with the other provisions of the Plan and the Award Certificate. To
the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Code Section 422(d),
the excess Options shall be deemed to be Nonstatutory Stock Options.
14.8. ACCELERATION
FOR OTHER REASONS. Regardless of whether an event has occurred as described in Section 14.6 or 14.7 above, and subject to Article
11 as to Qualified Performance-Based Awards, the Committee may in its sole discretion at any time determine that, upon the termination
of service of a Participant, or the occurrence of a Change in Control, all or a portion of such Participant’s Options, SARs
and other Awards in the nature of rights that may be exercised shall become fully or partially exercisable, that all or a part
of the restrictions on all or a portion of the Participant’s outstanding Awards shall lapse, and/or that any performance-based
criteria with respect to any Awards held by that Participant shall be deemed to be wholly or partially satisfied, in each case,
as of such date as the Committee may, in its sole discretion, declare. The Committee may discriminate among Participants and among
Awards granted to a Participant in exercising its discretion pursuant to this Section 14.8.
14.9. FORFEITURE
EVENTS. Awards under the Plan shall be subject to any compensation recoupment policy that the Company may adopt from time to
time that is applicable by its terms to the Participant. In addition, the Committee may specify in an Award Certificate that the
Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture
or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions
of an Award. Such events may include, but shall not be limited to, (i) termination of employment for cause, (ii) violation of material
Company or Affiliate policies, (iii) breach of noncompetition, confidentiality or other restrictive covenants that may apply to
the Participant, (iv) other conduct by the Participant that is detrimental to the business or reputation of the Company or any
Affiliate, or (v) a later determination that the vesting of, or amount realized from, a Performance Award was based on materially
inaccurate financial statements or any other materially inaccurate performance metric criteria, whether or not the Participant
caused or contributed to such material inaccuracy.
14.10. SUBSTITUTE
AWARDS. The Committee may grant Awards under the Plan in substitution for stock and stock-based awards held by employees of
another entity who become employees of the Company or an Affiliate as a result of a merger or consolidation of the former employing
entity with the Company or an Affiliate or the acquisition by the Company or an Affiliate of property or stock of the former employing
corporation. The Committee may direct that the substitute awards be granted on such terms and conditions as the Committee considers
appropriate in the circumstances.
ARTICLE 15
CHANGES IN CAPITAL STRUCTURE
15.1. MANDATORY
ADJUSTMENTS. In the event of a nonreciprocal transaction between the Company and its shareholders that causes the per-share
value of the Stock to change (including, without limitation, any stock dividend, stock split, reverse stock split, spin-off, rights
offering, or large nonrecurring cash dividend), the authorization limits under Section 5.1 and 5.4 shall be adjusted proportionately,
and the Committee shall make such adjustments to the Plan and Awards as it deems necessary, in its sole discretion, to prevent
dilution or enlargement of rights immediately resulting from such transaction. Action by the Committee may include: (i) adjustment
of the number and kind of shares that may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject
to outstanding Awards; (iii) adjustment of the exercise price of outstanding Awards or the measure to be used to determine the
amount of the benefit payable on an Award; and (iv) any other adjustments that the Committee determines to be equitable. Notwithstanding
the foregoing, the Committee shall not make any adjustments to outstanding Options or SARs that would constitute a modification
or substitution of the stock right under Treas. Reg. Sections 1.409A-1(b)(5)(v) that would be treated as the grant of a new stock
right or change in the form of payment for purposes of Code Section 409A. Without limiting the foregoing, in the event of a subdivision
of the outstanding Stock (stock-split), a declaration of a dividend payable in Shares, or a combination or consolidation of the
outstanding Stock into a lesser number of Shares, the authorization limits under Section 5.1 and 5.4 shall automatically be adjusted
proportionately, and the Shares then subject to each Award shall automatically, without the necessity for any additional action
by the Committee, be adjusted proportionately without any change in the aggregate purchase price therefor.
15.2 DISCRETIONARY
ADJUSTMENTS. Upon the occurrence or in anticipation of any corporate event or transaction involving the Company (including,
without limitation, any merger, reorganization, recapitalization, combination or exchange of shares, or any transaction described
in Section 15.1), the Committee may, in its sole discretion, provide (i) that Awards will be settled in cash rather than Stock,
(ii) that Awards will become immediately vested and non-forfeitable and exercisable (in whole or in part) and will expire after
a designated period of time to the extent not then exercised, (iii) that Awards will be assumed by another party to a transaction
or otherwise be equitably converted or substituted in connection with such transaction, (iv) that outstanding Awards may be settled
by payment in cash or cash equivalents equal to the excess of the fair market value of the underlying Stock, as of a specified
date associated with the transaction (or the per-shares transaction price), over the exercise or base price of the Award, (v) that
performance targets and performance periods for Performance Awards will be modified, consistent with Code Section 162(m) where
applicable, or (vi) any combination of the foregoing. The Committee’s determination need not be uniform and may be different
for different Participants whether or not such Participants are similarly situated.
15.3 GENERAL.
Any discretionary adjustments made pursuant to this Article 15 shall be subject to the provisions of Section 16.2. To the extent
that any adjustments made pursuant to this Article 15 cause Incentive Stock Options to cease to qualify as Incentive Stock Options,
such Options shall be deemed to be Nonstatutory Stock Options.
ARTICLE 16
AMENDMENT, MODIFICATION AND TERMINATION
16.1. AMENDMENT,
MODIFICATION AND TERMINATION. The Board or the Committee may, at any time and from time to time, amend, modify or terminate
the Plan without shareholder approval; provided, however, that if an amendment to the Plan would, in the reasonable
opinion of the Board or the Committee, either (i) materially increase the number of Shares available under the Plan, (ii) expand
the types of awards under the Plan, (iii) materially expand the class of participants eligible to participate in the Plan, (iv)
materially extend the term of the Plan, or (v) otherwise constitute a material change requiring shareholder approval under applicable
laws, policies or regulations or the applicable listing or other requirements of an Exchange, then such amendment shall be subject
to shareholder approval; and provided, further, that the Board or Committee may condition any other amendment or
modification on the approval of shareholders of the Company for any reason, including by reason of such approval being necessary
or deemed advisable (i) to comply with the listing or other requirements of an Exchange, or (ii) to satisfy any other tax, securities
or other applicable laws, policies or regulations. Without the prior approval of the shareholders of the Company, the Plan may
not be amended to permit: (i) the exercise price or base price of an Option or SAR to be reduced, directly or indirectly, (ii)
an Option or SAR to be cancelled in exchange for cash, other Awards, or Options or SARs with an exercise or base price that is
less than the exercise price or base price of the original Option or SAR, or otherwise, or (iii) the Company to repurchase an Option
or SAR for value (in cash or otherwise) from a Participant if the current Fair Market Value of the Shares underlying the Option
or SAR is lower than the exercise price or base price per share of the Option or SAR.
16.2. AWARDS
PREVIOUSLY GRANTED. At any time and from time to time, the Committee may amend, modify or terminate any outstanding Award without
approval of the Participant; provided, however:
(a) Subject
to the terms of the applicable Award Certificate, such amendment, modification or termination shall not, without the Participant’s
consent, reduce or diminish the value of such Award;
(b) The
original term of an Option or SAR may not be extended without the prior approval of the shareholders of the Company;
(c) Except
as otherwise provided in Article 15, without the prior approval of the shareholders of the Company: (i) the exercise price or base
price of an Option or SAR may not be reduced, directly or indirectly, (ii) an Option or SAR may not be cancelled in exchange for
cash, other Awards, or Options or SARs with an exercise or base price that is less than the exercise price or base price of the
original Option or SAR, or otherwise, and (iii) the Company may not repurchase an Option or SAR for value (in cash or otherwise)
from a Participant if the current Fair Market Value of the Shares underlying the Option or SAR is lower than the exercise price
or base price per share of the Option or SAR; and
(d) No
termination, amendment, or modification of the Plan shall adversely affect any Award previously granted under the Plan, without
the written consent of the Participant affected thereby.
16.3. COMPLIANCE
AMENDMENTS. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, the Board may amend the Plan
or an Award Certificate, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming
the Plan or Award Certificate to any present or future law relating to plans of this or similar nature (including, but not limited
to, Section 409A of the Code), and to the administrative regulations and rulings promulgated thereunder. By accepting an Award
under this Plan, a Participant agrees to any amendment made pursuant to this Section 16.3 to any Award granted under the Plan without
further consideration or action.
ARTICLE 17
GENERAL PROVISIONS
17.1. RIGHTS
OF PARTICIPANTS.
(a) No
Participant or any Eligible Participant shall have any claim to be granted any Award under the Plan. Neither the Company, its Affiliates
nor the Committee is obligated to treat Participants or Eligible Participants uniformly, and determinations made under the Plan
may be made by the Committee selectively among Eligible Participants who receive, or are eligible to receive, Awards (whether or
not such Eligible Participants are similarly situated).
(b) Nothing
in the Plan, any Award Certificate or any other document or statement made with respect to the Plan, shall interfere with or limit
in any way the right of the Company or any Affiliate to terminate any Participant’s employment or status as an officer, or
any Participant’s service as a director, at any time, nor confer upon any Participant any right to continue as an employee,
officer, or director of the Company or any Affiliate, whether for the duration of a Participant’s Award or otherwise.
(c) Neither
an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company or any Affiliate and,
accordingly, subject to Article 16, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive
discretion of the Committee without giving rise to any liability on the part of the Company or an of its Affiliates.
(d) No
Award gives a Participant any of the rights of a shareholder of the Company unless and until Shares are in fact issued to such
person in connection with such Award.
17.2. WITHHOLDING.
The Company or any Affiliate shall have the authority and the right to deduct or withhold, or require a Participant to remit to
the Company or such Affiliate, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s
FICA obligation) required by law to be withheld with respect to any exercise, lapse of restriction or other taxable event arising
as a result of the Plan. The obligations of the Company under the Plan will be conditioned on such payment or arrangements and
the Company or such Affiliate will, to the extent permitted by law, have the right to deduct any such taxes from any payment of
any kind otherwise due to the Participant. Unless otherwise determined by the Committee at the time the Award is granted or thereafter,
any such withholding requirement may be satisfied, in whole or in part, by withholding from the Award Shares having a Fair Market
Value on the date of withholding equal to the minimum amount (and not any greater amount) required to be withheld for tax purposes,
all in accordance with such procedures as the Committee establishes. All such elections shall be subject to any restrictions or
limitations that the Committee, in its sole discretion, deems appropriate.
17.3. SPECIAL
PROVISIONS RELATED TO SECTION 409A OF THE CODE.
(a) General.
It is intended that the payments and benefits provided under the Plan and any Award shall either be exempt from the application
of, or comply with, the requirements of Section 409A of the Code. The Plan and all Award Certificates shall be construed in a manner
that effects such intent. Nevertheless, the tax treatment of the benefits provided under the Plan or any Award is not warranted
or guaranteed. Neither the Company, its Affiliates nor their respective directors, officers, employees or advisers (other than
in his or her capacity as a Participant) shall be held liable for any taxes, interest, penalties or other monetary amounts owed
by any Participant or other taxpayer as a result of the Plan or any Award.
(b) Definitional
Restrictions. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, to the extent that any amount
or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code (“Non-Exempt
Deferred Compensation”) would otherwise be payable or distributable, or a different form of payment (e.g., lump sum or installment)
of such Non-Exempt Deferred Compensation would be effected, under the Plan or any Award Certificate by reason of the occurrence
of a Change in Control, or the Participant’s Disability or separation from service, such Non-Exempt Deferred Compensation
will not be payable or distributable to the Participant, and/or such different form of payment will not be effected, by reason
of such circumstance unless the circumstances giving rise to such Change in Control, Disability or separation from service meet
any description or definition of “change in control event”, “disability” or “separation from service”,
as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions
that may be available under such definition). This provision does not affect the dollar amount or prohibit the vesting of
any Award upon a Change in Control, Disability or separation from service, however defined. If this provision prevents the payment
or distribution of any amount or benefit, or the application of a different form of payment of any amount or benefit, such payment
or distribution shall be made at the time and in the form that would have applied absent the non-409A-conforming event.
(c) Allocation
among Possible Exemptions. If any one or more Awards granted under the Plan to a Participant could qualify for any separation
pay exemption described in Treas. Reg. Section 1.409A-1(b)(9), but such Awards in the aggregate exceed the dollar limit permitted
for the separation pay exemptions, the Company (acting through the Committee or the Head of Human Resources) shall determine which
Awards or portions thereof will be subject to such exemptions.
(d) Six-Month
Delay in Certain Circumstances. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, if any amount
or benefit that would constitute Non-Exempt Deferred Compensation would otherwise be payable or distributable under this Plan or
any Award Certificate by reason of a Participant’s separation from service during a period in which the Participant is a
Specified Employee (as defined below), then, subject to any permissible acceleration of payment by the Committee under Treas. Reg.
Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment
taxes):
(i) the amount of such
Non-Exempt Deferred Compensation that would otherwise be payable during the six-month period immediately following the Participant’s
separation from service will be accumulated through and paid or provided on the first day of the seventh month following the Participant’s
separation from service (or, if the Participant dies during such period, within 30 days after the Participant's death) (in either
case, the “Required Delay Period”); and
(ii) the normal payment
or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.
For purposes of this
Plan, the term “Specified Employee” has the meaning given such term in Code Section 409A and the final regulations
thereunder; provided, however, that, as permitted in such final regulations, the Company’s Specified
Employees and its application of the six-month delay rule of Code Section 409A(a)(2)(B)(i) shall be determined in accordance with
rules adopted by the Board or any committee of the Board, which shall be applied consistently with respect to all nonqualified
deferred compensation arrangements of the Company, including this Plan.
(e) Installment
Payments. If, pursuant to an Award, a Participant is entitled to a series of installment payments, such Participant’s
right to the series of installment payments shall be treated as a right to a series of separate payments and not to a single payment.
For purposes of the preceding sentence, the term “series of installment payments” has the meaning provided in Treas.
Reg. Section 1.409A-2(b)(2)(iii) (or any successor thereto).
(f) Timing
of Release of Claims. Whenever an Award conditions a payment or benefit on the Participant’s execution and non-revocation
of a release of claims, such release must be executed and all revocation periods shall have expired within 60 days after the date
of termination of the Participant’s employment; failing which such payment or benefit shall be forfeited. If such payment
or benefit is exempt from Section 409A of the Code, the Company may elect to make or commence payment at any time during such
60-day period. If such payment or benefit constitutes Non-Exempt Deferred Compensation, then, subject to subsection (d) above,
(i) if such 60-day period begins and ends in a single calendar year, the Company may make or commence payment at any time during
such period at its discretion, and (ii) if such 60-day period begins in one calendar year and ends in the next calendar year,
the payment shall be made or commence during the second such calendar year (or any later date specified for such payment under
the applicable Award), even if such signing and non-revocation of the release occur during the first such calendar year included
within such 60-day period. In other words, a Participant is not permitted to influence the calendar year of payment based on the
timing of signing the release.
(g) Permitted
Acceleration. The Company shall have the sole authority to make any accelerated distribution permissible under Treas. Reg.
section 1.409A-3(j)(4) to Participants of deferred amounts, provided that such distribution(s) meets the requirements of Treas.
Reg. section 1.409A-3(j)(4).
17.4. UNFUNDED
STATUS OF AWARDS. The Plan is intended to be an “unfunded” plan for incentive and deferred compensation. With
respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Certificate
shall give the Participant any rights that are greater than those of a general creditor of the Company or any Affiliate. In its
sole discretion, the Committee may authorize the creation of grantor trusts or other arrangements to meet the obligations created
under the Plan to deliver Shares or payments in lieu of Shares or with respect to Awards. This Plan is not intended to be subject
to ERISA.
17.5. RELATIONSHIP
TO OTHER BENEFITS. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement,
savings, profit sharing, group insurance, welfare or benefit plan of the Company or any Affiliate unless provided otherwise in
such other plan. Nothing contained in the Plan will prevent the Company from adopting other or additional compensation arrangements,
subject to shareholder approval if such approval is required; and such arrangements may be either generally applicable or applicable
only in specific cases.
17.6. EXPENSES.
The expenses of administering the Plan shall be borne by the Company and its Affiliates.
17.7. TITLES
AND HEADINGS. The titles and headings of the Sections in the Plan are for convenience of reference only, and in the event of
any conflict, the text of the Plan, rather than such titles or headings, shall control.
17.8. GENDER
AND NUMBER. 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.
17.9. FRACTIONAL
SHARES. No fractional Shares shall be issued and the Committee shall determine, in its discretion, whether cash shall be given
in lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding up or down.
17.10. GOVERNMENT
AND OTHER REGULATIONS.
(a) Notwithstanding
any other provision of the Plan, no Participant who acquires Shares pursuant to the Plan may, during any period of time that such
Participant is an affiliate of the Company (within the meaning of the rules and regulations of the Securities and Exchange Commission
under the 1933 Act), sell such Shares, unless such offer and sale is made (i) pursuant to an effective registration statement under
the 1933 Act, which is current and includes the Shares to be sold, or (ii) pursuant to an appropriate exemption from the registration
requirement of the 1933 Act, such as that set forth in Rule 144 promulgated under the 1933 Act.
(b) Notwithstanding
any other provision of the Plan, if at any time the Committee shall determine that the registration, listing or qualification of
the Shares covered by an Award upon any Exchange or under any foreign, federal, state or local law or practice, or the consent
or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the granting
of such Award or the purchase or receipt of Shares thereunder, no Shares may be purchased, delivered or received pursuant to such
Award unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free
of any condition not acceptable to the Committee. Any Participant receiving or purchasing Shares pursuant to an Award shall make
such representations and agreements and furnish such information as the Committee may request to assure compliance with the foregoing
or any other applicable legal requirements. The Company shall not be required to issue or deliver any certificate or certificates
for Shares under the Plan prior to the Committee’s determination that all related requirements have been fulfilled. The Company
shall in no event be obligated to register any securities pursuant to the 1933 Act or applicable state or foreign law or to take
any other action in order to cause the issuance and delivery of such certificates to comply with any such law, regulation or requirement.
17.11. GOVERNING
LAW. To the extent not governed by federal law, the Plan and all Award Certificates shall be construed in accordance with and
governed by the laws of the State of Florida.
17.12. SEVERABILITY.
In the event that any provision of this Plan is found to be invalid or otherwise unenforceable under any applicable law, such invalidity
or unenforceability will not be construed as rendering any other provisions contained herein as invalid or unenforceable, and all
such other provisions will be given full force and effect to the same extent as though the invalid or unenforceable provision was
not contained herein.
17.13. NO
LIMITATIONS ON RIGHTS OF COMPANY. The grant of any Award shall not in any way affect the right or power of the Company to make
adjustments, reclassification or changes in its capital or business structure or to merge, consolidate, dissolve, liquidate, sell
or transfer all or any part of its business or assets. The Plan shall not restrict the authority of the Company, for proper corporate
purposes, to draft or assume awards, other than under the Plan, to or with respect to any person. If the Committee so directs,
the Company may issue or transfer Shares to an Affiliate, for such lawful consideration as the Committee may specify, upon the
condition or understanding that the Affiliate will transfer such Shares to a Participant in accordance with the terms of an Award
granted to such Participant and specified by the Committee pursuant to the provisions of the Plan.
* * * * *
The foregoing is hereby
acknowledged as being the Seacoast Banking Corporation of Florida 2013 Incentive Plan as adopted by the Board on February 19, 2013
and by the shareholders on May 23, 2013, and as amended by the Board on February 26, 2015 with such amendment approved by the shareholders
on May 26, 2015.
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SEACOAST BANKING Corporation |
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OF FLORIDA |
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By: |
/s/ Sharon Mehl |
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Name: |
Sharon Mehl |
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Its: |
Corporate Secretary |
Seacoast Banking Corpora... (NASDAQ:SBCF)
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