Form of Long Term Performance Restricted Stock Unit



 Exhibit 10.18 
 ITRON, INC. 
 2010 STOCK INCENTIVE PLAN 

LONG TERM PERFORMANCE 
 RESTRICTED STOCK UNIT AWARD NOTICE 
 FOR U.S. PARTICIPANTS

 Itron, Inc. (the “Company”) hereby grants to Participant a performance restricted stock unit
award (the “Award”). The Award is subject to all the terms and conditions set forth in this Performance Restricted Stock Unit Award Notice (the “Award Notice”), the Performance Restricted Stock Unit
Award Agreement, including Appendices A and B (the “Agreement”) and the Itron, Inc. 2010 Stock Incentive Plan (the “Plan”), all of which are incorporated into the Award Notice in their entirety.

  

			
		
	 Participant:
	  	 «First_Name» «Last_Name»

		
	 Grant Date:
	  	 «RSUs»

		
	 Performance Period:
	  	 January 1, 2011 to December 31, 2011

		
	 Number of Performance Restricted Stock Units (“PSUs”):
	  	 The actual number of PSUs that become eligible for vesting according to the Vesting Schedule below shall be determined
based on the attainment of the 2011 Performance Goals specified in Appendix A, as assessed by the Plan Administrator as soon as reasonably practicable after the end of the Performance Period.

 
 The minimum number of PSUs is zero (0).

 
 The target number of PSUs is:
«RSUs»
  
 The maximum number of PSUs
is: «RSUs»

		
	 Vesting Schedule:
	  	 The actual number of PSUs that become eligible for vesting based on the attainment of the 2011 Performance Goals shall vest in three equal installments on
January 1, 2013, January 1, 2014 and January 1, 2015 (each, a “Vest Date”).



  
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 Additional Terms/Acknowledgement: This Award is subject to all the terms and
conditions set forth in this Award Notice, the Agreement and the Plan which are attached to and incorporated into this Award Notice in their entirety. 
 «First_Name» «Last_Name» 
 I accept this award subject to
the terms and conditions stated herein. 
 «First_Name» 

Attachments: 

1. Performance Restricted Stock Unit Award Agreement, including Appendices A and B 

2. 2010 Stock Incentive Plan 
 3. Plan Prospectus 

  
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 ITRON, INC. 
 2010 STOCK INCENTIVE PLAN 
 LONG TERM PERFORMANCE 

RESTRICTED STOCK UNIT AWARD AGREEMENT 
 FOR U.S. PARTICIPANTS 
 Pursuant to your Performance
Restricted Stock Unit Award Notice (the “Award Notice”), this Performance Restricted Stock Unit Award Agreement, including Appendices A and B (this “Agreement”) and Itron, Inc. (the
“Company”) has granted you a performance restricted stock unit award (the “Award”) under its 2010 Stock Incentive Plan (the “Plan”). Capitalized terms not expressly defined in
this Agreement but defined in the Plan shall have the same definitions as in the Plan, as applicable. 
 The
details of the Award are as follows: 
  

	1.	 Number of Units Subject to Award 


 This Award is a performance based award which is based on targets set by the Plan Administrator at the beginning of the performance year (calendar year 2011 in this case) (the “Performance
Period”). Performance goals are set forth in Appendix A along with your target number of Units for the Performance Period. At the end of the Performance Period, the Plan Administrator shall determine the number of Units that are
eligible for vesting under the Award. The Plan Administrator will communicate this number to you as soon as practicable after the end of the Performance Period. The Units will vest in accordance with Section 2 below. 

 

	2.	 Vesting 


 The Award will vest to the extent the performance goals set forth in Appendix A are attained as determined by the Plan Administrator and according to the vesting schedule set forth in the Award
Notice (the “Vesting Schedule”). One share of Common Stock will be issuable for each performance restricted stock unit that vests. Performance restricted stock units that have vested and are no longer subject to forfeiture
according to the Vesting Schedule are referred to herein as “Vested Units.” Performance Restricted Stock Units that have not vested and remain subject to forfeiture under the Vesting Schedule are referred to herein as
“Unvested Units.” The Unvested and Vested Units are collectively referred to herein as the “Units”. The Award will terminate and the Unvested Units will be subject to forfeiture upon termination of
your employment as set forth in Section 3.1. 
  

	3.	 Termination of Employment; Change in Control Transaction 



3.1 Termination of Employment 

Except as provided in Section 3.2 below, if your employment terminates during the Performance Period by reason of
(a) death or (b) Disability, the number of Units that become eligible for vesting according to the Vesting Schedule (based on the attainment of the 

  
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performance goals as assessed after the end of the Performance Period) shall be pro-rated based on the number of calendar days of employment with the Company or a Related Corporation during the
Performance Period (rounded down to the nearest whole number) and such Units shall vest as of the date of termination but shall be settled in accordance with Section 4 below. 

Except as provided in Section 3.2 below, if your employment terminates during the three-year vesting period
following the Performance Period by reason of (a) death or (b) Disability, the Unvested Units shall vest as of the date of termination but shall be settled in accordance with Section 4 below. 

If your employment terminates for any other reason, any Unvested Units will be forfeited upon termination of your
employment. 
 Subject to Section 9.1 below, the Company may cause the Unvested Units to vest with respect
to such number of Units as may be necessary to satisfy any Tax-Related Items (as defined in Section 9.1 below) that may arise prior to the date the Units are settled in accordance with Section 4 below. 

3.2 Change in Control Transaction 

In the event of a Change in Control Transaction during the Performance Period, the number of PSUs subject to the Award
shall be the greater of (a) the target number of PSUs subject to the Award or (b) the actual number of PSUs subject to the Award as determined based on the attainment of the performance goals if the Plan Administrator determines that the
attainment of the performance goals may be determined as of the date of the Change in Control Transaction, pro-rated based on the portion of the Performance Period that has elapsed between the Award Date and the date of the Change in Control
Transaction. 
 In the event of a Change in Control Transaction during the three-year vesting period following
the Performance Period, any Unvested Units will accelerate in vesting and become Vested Units immediately prior to such transaction. 
  

	4.	 Settlement of Vested Units. 


 Vested Units shall be settled within thirty (30) days following the applicable Vest Date(s) set forth in the Award Notice, or, if earlier, upon the earlier of (a) a date within thirty
(30) days following your death or (b) a date within five (5) days of a Change in Control, provided that, in the case of U.S. taxpayers, if the Units or settlement of the Units constitute an item of deferred compensation under
Section 409A of the Code and the Change in Control does not constitute a “change in control event” within the meaning of Section 409A of the Code, the Vested Units shall be settled on the earlier of the applicable Vest Date(s)
set forth in the Award Notice or a date within thirty (30) days following your death. 
  

	5.	 Securities Law Compliance 


 5.1 You represent and warrant that you (a) have been furnished with a copy of the prospectus for the Plan and all information which you deem necessary to evaluate the merits and risks of
receipt of the Award, (b) have had the opportunity to ask questions and receive answers 

  
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concerning the information received about the Award and the Company, and (c) have been given the opportunity to obtain any additional information you deem necessary to verify the accuracy of
any information obtained concerning the Award and the Company. 
 5.2 You hereby agree that you will in
no event sell or distribute all or any part of the shares of Common Stock that you receive pursuant to settlement of this Award (the “Shares”) unless (a) there is an effective registration statement under the U.S.
Securities Act of 1933, as amended (the “Securities Act”) and any applicable state and foreign securities laws covering any such transaction involving the Shares or (b) the Company receives an opinion of your legal
counsel (concurred in by legal counsel for the Company) stating that such transaction is exempt from registration or the Company otherwise satisfies itself that such transaction is exempt from registration. You understand that the Company has no
obligation to you to register the Shares with the U.S. Securities and Exchange Commission or any foreign securities regulator and has not represented to you that it will so register the Shares. 

5.3 You confirm that you have been advised, prior to your receipt of the Shares, that neither the offering of the
Shares nor any offering materials have been reviewed by any regulator under the Securities Act or any other applicable securities act (the “Acts”) and that the Shares cannot be resold unless they are registered under the Acts
or unless an exemption from such registration is available. 
 5.4 You hereby agree to indemnify the
Company and hold it harmless from and against any loss, claim or liability, including attorneys’ fees or legal expenses, incurred by the Company as a result of any breach by you of, or any inaccuracy in, any representation, warranty or
statement made by you in this Agreement or the breach by you of any terms or conditions of this Agreement. 
  

	6.	 Transfer Restrictions 


 Units shall not be sold, transferred, assigned, encumbered, pledged or otherwise disposed of, whether voluntarily or by operation of law. 

 

	7.	 No Rights as Shareholder 


 You shall not have voting or other rights as a shareholder of the Company with respect to the Units. 
  

	8.	 Book Entry Registration of Shares 


 The Company will issue the Shares by registering the Shares in book entry form with the Company’s transfer agent in your name and the applicable restrictions will be noted in the records of the
Company’s transfer agent and in the book entry system. 
  

	9.	 Responsibility for Taxes 


 9.1 Regardless of any action the Company or your employer (the “Employer”) take with respect to any and all income tax, social insurance, payroll tax, payment on account or
other tax-related items related to your participation in the Plan and legally applicable to you (“Tax-

  
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Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items is and remains your responsibility and may exceed the amount actually withheld by the
Company and/or the Employer. You further acknowledge that the Company and the Employer (a) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including, but not
limited to, the granting or vesting of the Award, the settlement of Vested Units, the issuance of Shares upon settlement of the Vested Units, the subsequent sale of Shares acquired upon settlement of the Vested Units and the receipt of any
dividends; and (b) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Award to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. Further, if you
have become subject to tax in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, as applicable, you acknowledge that the Company and/or the Employer (or former employer, as applicable)
may be required to withhold or account for Tax-Related Items in more than one jurisdiction. Notwithstanding anything to the contrary in this Section 9.1, the right of the Company or the Employer to withhold any Tax-Related Items for any portion
of the Award that is considered deferred compensation subject to Code Section 409A shall be limited to the minimum amount permitted to avoid a prohibited acceleration under Section 409A of the Code. 

9.2 Prior to any relevant taxable or tax withholding event, as applicable, you will pay or make adequate
arrangements satisfactory to the Company and or the Employer to satisfy all Tax-Related Items. 
 (a) In this
regard, you hereby irrevocably appoint Fidelity or any stock plan service provider or brokerage firm designated by the Company for such purpose (the “Agent”) as your Agent, and authorize the Agent, to: 

 

	 	(i)	 Sell on the open market at the then prevailing market price(s), on your behalf, as soon as practicable on or after the settlement date for any
Vested Unit, the minimum number of Shares (rounded up to the next whole number) sufficient to generate proceeds to cover the Tax-Related Items and all applicable fees and commissions due to, or required to be collected by, the Agent;



  

	 	(ii)	 Remit directly to the Company the cash amount necessary to cover the Tax-Related Items; 



 

	 	(iii)	 Retain the amount required to cover all applicable fees and commissions due to, or required to be collected by, the Agent, relating directly to the
sale of Shares referred to in clause (i) above; and 


  

	 	(iv)	 Remit any remaining funds to you. 


 (b) Alternatively, or in addition to or in combination with the withholding mechanism described in Section 9.2(a), you authorize the Company and/or the Employer, at their discretion, to satisfy the
obligations with regard to all Tax-Related Items by: 
  

	 	(i)	 requiring you to pay to the Company or the Employer any amount of the Tax-Related Items; and/or 



  
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	 	(ii)	 withholding any amount of the Tax-Related Items from your wages or other cash compensation paid to you by the Company and/or the Employer; and/or



  

	 	(iii)	 withholding in Shares to be issued upon settlement of the Vested Units. 



(c) To avoid negative accounting treatment, the Company may withhold or account for Tax-Related Items by considering
applicable minimum statutory withholding amounts or other applicable withholding rates. If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, you will be deemed to have been issued the full number of Shares
subject to the Vested Units notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of your participation in the Plan. The Company may refuse to issue or deliver
Shares to you if you fail to comply with your obligations in connection with the Tax-Related Items. 
 9.3
You acknowledge that the authorization and instruction to the Agent set forth in Section 9.2(a)(i) above to sell Shares to cover the Tax-Related Items is intended to comply with the requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange
Act and to be interpreted to comply with the requirements of Rule 10b5-1(c) under the Exchange Act (regarding trading of the Company’s securities on the basis of material nonpublic information) (a “10b5-1 Plan”). This
10b5-1 Plan is being adopted to permit you to sell a number of Shares issued upon settlement of Vested Units sufficient to pay the Tax-Related Items. 
 You acknowledge that the broker is under no obligation to arrange for the sale of Shares at any particular price. You further acknowledge that you will be responsible for all brokerage fees and other
costs of sale, and you agree to indemnify and hold the Company harmless from any losses, costs, damages, or expenses relating to any such sale. You acknowledge that it may not be possible to sell Shares during the term of this 10b5-1 Plan due to
(a) a legal or contractual restriction applicable to you or to the broker, (b) a market disruption, (c) rules governing order execution priority on the NASDAQ or other exchange where the Shares may be traded, (d) a sale effected
pursuant to this 10b5-1 Plan that fails to comply (or in the reasonable opinion of the Agent’s counsel is likely not to comply) with the Securities Act, or (e) if the Company determines that sales may not be effected under this 10b5-1
Plan. In the event of the Agent’s inability to sell Shares, you will continue to be responsible for the Tax-Related Items. 
 You hereby agree to execute and deliver to the Agent any other agreements or documents as the Agent reasonably deems necessary or appropriate to carry out the purposes and intent of the 10b5-1 Plan. You
acknowledge that this 10b5-1 Plan is subject to the terms of any policy adopted now or hereafter by the Company governing the adoption of 10b5-1 plans. The Agent is a third party beneficiary of Section 9.2(a)(i) and this 10b5-1 Plan.


  
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	10.	 Nature of Grant 


 In accepting the grant, you acknowledge, understand and agree that: 
 (a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time; 

(b) the grant of the Award is voluntary and occasional and does not create any contractual or other right to receive
future grants of performance restricted stock units, or benefits in lieu of performance restricted stock units, even if performance restricted stock units have been granted repeatedly in the past; 

(c) all decisions with respect to future grants of performance restricted stock units, if any, will be at the sole
discretion of the Company; 
 (d) your participation in the Plan shall not create a right to further employment
with the Employer and shall not interfere with the ability of the Employer to terminate your employment relationship at any time; 
 (e) you are voluntarily participating in the Plan; 
 (f) the Award
and the Shares subject to the Award are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or the Employer, and which is outside the scope of your employment contract, if any;

 (g) the Award and the Shares subject to the Award are not intended to replace any pension rights or
compensation; 
 (h) the Award and the Shares subject to the Award are not part of normal or expected
compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar
payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company, the Employer or any Related Corporation; 

(i) the grant of the Award and your participation in the Plan will not be interpreted to form an employment contract or
relationship with the Company or any Related Corporation; 
 (j) the future value of the underlying Shares is
unknown and cannot be predicted with certainty; 
 (k) no claim or entitlement to compensation or damages shall
arise from forfeiture of the Award resulting from termination of your employment by the Company or the Employer (for any reason whatsoever and whether or not in breach of local labor laws) and, in consideration of the grant of the Award to which you
are otherwise not entitled, you irrevocably agree never to institute any claim against the Company or the Employer, waive the ability, if any, to bring any such claim and release the Company and the Employer from any such claim; if, notwithstanding
the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by 

  
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participating in the Plan, you will be deemed irrevocably to have agreed not to pursue such claim and agree to execute any and all documents necessary to request dismissal or withdrawal of such
claims; 
 (l) in the event of termination of your employment (whether or not in breach of local labor laws),
your right to vest in the Award, if any, will terminate effective as of the date that you are no longer actively employed and will not be extended by any notice period mandated under local law (e.g., active employment would not include a
period of “garden leave” or similar period pursuant to local law); the Company’s Chief Executive Officer shall have the exclusive discretion to determine when you are no longer actively employed for purposes of the Award; and

 (m) the Award and the benefits under the Plan, if any, will not necessarily transfer to another company in
the case of a merger, take over or transfer of liability. 
  

	11.	 No Advice Regarding Grant 


 The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan or your acquisition or sale of the underlying
Shares. You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan. You acknowledge that you have either consulted with competent
advisors independent of the Company to obtain advice concerning the receipt of the Award and the acquisition or disposition of any Shares to be issued pursuant to the Award in light of your specific situation or had the opportunity to consult with
such advisors but chose not to do so. 
  

	12.	 Data Privacy 


 You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this Agreement and any other Award materials
by and among, as applicable, the Employer, the Company and its Related Corporations for the exclusive purpose of implementing, administering and managing your participation in the Plan. 

You understand that the Company and the Employer may hold certain personal information about you, including, but
not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all Awards or
any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”). 

You understand that Data will be transferred to Fidelity or such other stock plan service provider as may be
selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan. You understand that the recipients of Data may be located in the United States or elsewhere, and that the
recipients’ country (e.g., the United States) may have different data privacy laws and protections than your country. You understand that you may request a list with the names and


  
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addresses of any potential recipients of Data by contacting your local human resources representative. You authorize the Company, Fidelity and any other possible recipients which may assist the
Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing your
participation in the Plan. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan. You understand that you may, at any time, view Data, request additional information
about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human resources representative. You understand, however, that
refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources
representative. 
  

	13.	 Electronic Delivery and Participation 



The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the
Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the
Company. 
  

	14.	 Language 


 If you have received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different from the English
version, the English version will control. 
  

	15.	 General Provisions 


 15.1 Successors and Assigns. The provisions of this Agreement will inure to the benefit of the successors and assigns of the Company and be binding upon you and your heirs, executors,
administrators, successors and assigns. 
 15.2 Section 409A. For purposes of U.S. taxpayers, the
Units and the settlement of the Units are intended to either be exempt from Section 409A of the Code under the “short-term deferral” exception or comply with Section 409A of the Code, and this Agreement will be interpreted,
operated and administered in a manner that is consistent with this intent. In furtherance of this intent, the Plan Administrator may, at any time and without your consent, modify the terms of the Award as it determines appropriate to comply with the
requirements of Section 409A of the Code and the related U.S. Department of Treasury guidance. The Company makes no representation or covenant to ensure that the Units, settlement of the Units or other payment hereunder are exempt from or
compliant with Section 409A of the Code and will have no liability to you or any other party if the settlement of the Units or other payment hereunder that is intended to be exempt from, or compliant with, Section 409A of the Code, is not
so exempt or compliant or for any action taken by the Plan Administrator with respect thereto. 

  
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 15.3 Governing Law and Choice of Venue. The Award and the provisions
of this Agreement will be construed and administered in accordance with and governed by the laws of the State of Washington without giving effect to such state’s principles of conflict of laws. For the purposes of litigating any dispute that
arises under this grant of this Agreement, the parties hereby submit to and consent to the exclusive jurisdiction of the State of Washington and agree that such litigation shall be conducted in the courts of Spokane County, Washington, or the
federal courts for the United States for the Eastern District of Washington, where this grant is made and/or to be performed. 
 15.4 Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions shall nevertheless be binding and enforceable. 
 15.5 Notice. Any notice required
or permitted hereunder shall be made in writing and sent to the following address: 
 Itron,
Inc. 
 Attn. General Counsel 

2111 N. Molter Road 

Liberty Lake, WA USA 99019 

 

	16.	 Appendix B 


 Notwithstanding any provisions in this Agreement, the Award shall be subject to any special terms and conditions set forth in Appendix B to this Agreement for your country
(“Appendix B”). Moreover, if you relocate to one of the countries included in Appendix B, the special terms and conditions for such country will apply to you, to the extent the Company determines that the
application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan. Appendix B constitutes part of this Agreement. 

 

	17.	 Imposition of Other Requirements 


 The Company reserves the right to impose other requirements on your participation in the Plan, on the Award and on any Shares acquired under the Plan, to the extent the Company determines it is necessary
or advisable in order to comply with local law or facilitate the administration of the Plan, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. 

  
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 APPENDIX A 
 [INSERT 2011 PERFORMANCE GOALS] 

  
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 APPENDIX B 

ITRON, INC. 

2010 STOCK INCENTIVE PLAN 
 LONG TERM PERFORMANCE 
 RESTRICTED STOCK UNIT AWARD NOTICE 

FOR U.S. PARTICIPANTS 

Terms and Conditions 
 Appendix B includes additional terms and conditions that govern the restricted stock unit award (the “Award”) granted to you under the Itron, Inc. 2010 Stock Incentive Plan
(the “Plan”) if you reside in one of the countries listed below. Capitalized terms not expressly defined in this Appendix B but defined in the Plan or the Restricted Stock Unit Award Agreement (the
“Agreement”) shall have the same definitions as in the Plan and/or the Agreement, as applicable. 
 Notifications

 This Appendix B also includes information regarding exchange control and other issues of which you should be
aware with respect to your participation in the Plan. The information is based on the exchange control, securities and other laws in effect in the respective countries as of September 2010. Such laws are often complex and change frequently. As a
result, the Company strongly recommends that you not rely on the information herein as the only source of information relating to the consequences of participation in the Plan because the information may be out of date at the time that the Award
vests or the Shares acquired under the Plan are sold. 
 In addition, the information contained herein is general in nature and
may not apply to your particular situation and the Company is not in a position to assure you of a particular result. Accordingly, you are advised to seek appropriate professional advice as to how the relevant laws in your country may apply to your
situation. 
 Finally, if you are a citizen or resident of a country other than the one in which you are currently working, or
if you transfer employment to another country after the Award is granted, the information contained herein may not be applicable to you. 

  
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 UNITED STATES 
 Terms and Conditions 
 Termination of Employment. This provision supplements
Section 3.1 of the Agreement: 
 Except as provided in Section 3.2, if your employment terminates
during the Performance Period by reason of Retirement, the number of Units that become eligible for vesting according to the Vesting Schedule (based on the attainment of the performance goals as assessed after the end of the Performance Period)
shall be pro-rated based on the number of calendar days of employment with the Company or a Related Corporation during the Performance Period (rounded down to the nearest whole number) and such Units shall vest as of the date of termination but
shall be settled in accordance with Section 4. 
 Except as provided in Section 3.2, if your
employment terminates during the three-year vesting period following the Performance Period by reason of Retirement, the Unvested Units shall vest as of the date of termination but shall be settled in accordance with Section 4. 

For purposes of this Agreement, “Retirement” shall mean a termination of employment (other
than an involuntary termination for Cause) (a) on or after your 65th birthday or (b) on or after your 55th birthday if you have, at such time, been employed by the Company and/or a Related Corporation for at least ten (10) years. 

  
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