Document:

H.B. Fuller Company Management Short-Term Incentive Plan

 Exhibit 10.1 
  

			
	

	 	 Rewards - Compensation
 Management Short-Term Incentive
 (STI) Plan

	 
	 

  
  
  

			
	Purpose	 	 The STI plan provides an annual performance-based cash bonus opportunity for eligible employees. This is intended to achieve a number of goals
including:
  
 •   Emphasizing
the Company’s commitment to competitive compensation practices;
  
 •   Driving a high performance culture;
  
 •   Assuring accountability;
  

•   Focusing on results, not activity; and
  
 •   Reinforcing the importance of
measurable and aligned goals and objectives.

		
	Eligibility	 	 To participate in the STI Plan, an employee must:
  
 •   Be a regular full-time or part-time employee of the Company in job grades 25 or higher. Consultants and
temporary agency employees performing services at Company facilities are not eligible to participate;
  
 •   Not qualify as a participant in any other Company variable compensation program (such as sales or unit
performance bonus programs).
  
 To receive payment under the STI Plan, the participant
must:
  
 •   Be actively
employed as of fiscal year-end;
  
 •   Have been rated at least “good” through the pay-for-performance program, as demonstrated by a PPA rating of ‘3’ or higher.

		
	Plan Design	 	 The plan design is based on financial metrics. The metrics will vary based on position and will generally include the following:
  
 •   EBITDA*
  
 •   ROGI
  
 •   Organic Sales
  
 •   Earnings Per Share
                                        
                                         
                                         
                                         
                              
 *       For administrative purposes, operating income may be used as a proxy for
EBITDA
  
 There will be 5 design standards, as follows:
  
 •   Region
  
 •   Region – Operations or Sales
Management
  
 •   Corporate/Global
  
 •   Business Unit, Country, Sub Region
  
 •   Global Accounts, Industry, Program

  

  
 Page 1 of 5 

			
	

	 	 Rewards - Compensation
 Management Short-Term Incentive
 (STI) Plan

	 
	 

  
  
  

			
		 	 Participant’s plan design will be based on position. Details of the design are as follows:
  
 •   Region Standard
  
 •   Applies generally to region roles,
with the exception of sales and operations.

  

									
	 	  	Metric & Weighting Per Metric
	  	EPS	 	Region Organic Revenue	 	Region EBITDA ($)	 	Region ROGI
	 EC Member
	  	30%	 	20%	 	35%	 	15%
	 Standard
	  	25%	 	25%	 	40%	 	10%

  

			
		 	 •   Region – Operations or Region Sales Management

  

									
	 	  	Metric & Weighting Per Metric
	  	EPS	 	Organic Revenue or
Operations metric	 	Region EBITDA ($)	 	Region ROGI
	 Standard
	  	25%	 	25%	 	40%	 	10%

  

			
		 	 •   Corporate/Global
  
 •   Applies to corporate functions such
as Finance, HR, Legal, Marketing, Technology, and Strategy
  

  

											
	 	  	Metric & Weighting Per Metric
	  	EPS	 	NA Composite	 	EU Composite	 	AP Composite	 	LA Composite
	 Standard
	  	30%	 	25%	 	20%	 	12.5%	 	12.5%

  

			
		 	 •   Region composite is the combination of Region Organic Revenue, EBITDA, and ROGI
results
  
 •   Business Unit,
Country, Sub Region

  

											
	 	  	Metric & Weighting Per Metric
	  	EPS	 	Region
Composite	 	BU/Country/Sub Region
Organic Revenue or
Operations
metric	 	BU/Country/Sub
Region EBITDA	 	BU/Country/Sub
Region ROGI or Net
Working
Capital
	 Standard
	  	15%	 	20%	 	20%	 	35%	 	10%

  

			
		 	 •   Global Accounts, Global Industry, Global Program

  

													
	 	  	Metric & Weighting Per Metric
	  	EPS	 	Global Account, Industry
or Program Sales	 	NA Composite	 	EU Composite	 	AP Composite	 	LA Composite
	 Standard
	  	15%	 	30%	 	20%	 	15%	 	10%	 	10%
	
	CEO Plan Design:
	
	 Metric & Weighting Per
Metric

	 EPS
	  	HBF Organic Revenue	 	HBF EBITDA ($)	 	HBF ROGI
	 30%
	  	20%	 	35%	 	15%

  

  
 Page 2 of 5 

			
	

	 	 Rewards - Compensation
 Management Short-Term Incentive
 (STI) Plan

	 
	 

  
  
  

			
		 	 Target
  
 •   Each metric will have a target level of performance. Payout will be determined for each metric based on
performance relative to target. The target levels of performance will be established at the beginning of each fiscal year.

		
		 	 Threshold
  
 •   Threshold performance levels will be established for each metric as follows:
  
 •   Sales, Organic Revenue: 80% of
target
  
 •   EBITDA: 80% of
target
  
 •   ROGI: 80% of
target
  
 •   EPS: 80% of
target
  
 •   Operations
Metrics: 80-90% of target, varies by metric
  
 •   Payout at the threshold level of performance will be 50% of the target allocated to that metric.
  
 Superior
  
 •   Superior performance levels will be established for each metric as follows:
  
 •   Sales, Organic Revenue: 115% of
target
  
 •   EBITDA: 115% of
target
  
 •   ROGI: 115% of
target
  
 •   EPS: 115% of
target
  
 •   Operations
Metrics: 110-120% of target, varies by metric
  
 •   Payout at the superior level of performance will be 150% of the target allocated to that metric.
  
 See Appendix for payout schedule.
  
 Superior Stretch Goal – EC
  
 •   Additional superior goals will be established for metrics for the EC members as follows:
  
 •   Organic Revenue: 125% of target
  
 •   EBITDA: 125% of target
  
 •   ROGI: 125% of target
  
 •   EPS: 125% of target
  
 •   Payout at the superior stretch goal
will be 200% of the target allocated to that metric

		
	Payment	 	 Payment will be made in cash, subject to taxes and deductions as applicable.
 Payment will be made in, or as close to possible to, January following the conclusion of the relevant Plan Year, but will be made no later than March 15th of the calendar year following the Plan Year.

		
	 Participant
 Status
 Changes
	 	 If a participant begins employment with the company during the Plan Year, bonus potential will be pro-rated for the time the participant was
employed during the Plan Year.
  
 If a participant transfers jobs and changes plan design
standards, potential bonus will be pro-rated for the time spent in each job.

  

  
 Page 3 of 5 

			
	

	 	 Rewards - Compensation
 Management Short-Term Incentive
 (STI) Plan

	 
	 

  
  
  

			
	Administration	  	 Participants may direct questions about the STI Plan to their local management or human resources representatives.
  
 The Compensation Committee of the Board of Directors shall make a certification decision with respect
to performance of financial metrics and consider extraordinary circumstances that may have positively or negatively impacted the achievement of the objectives. The Board or management in their discretion, reserves the right at any time to enhance,
diminish or terminate all or any portion of any compensation plan or program, on a collective or individual basis.

		
	 Relevant
 Terms
	  	 Actively Employed - A full-time or part-time employee on the Company payroll. It excludes any employee who has been terminated from
employment with the Company – voluntarily or involuntarily – in advance of fiscal year-end.
  
 Company - H.B. Fuller Company and its wholly owned subsidiaries.
  
 Eligible Earnings - Varies by region and country.
  
 Payment - The cash reward payable after conclusion of the Plan Year.
  
 Plan Year - The relevant Company fiscal year.
  
 Short Term Incentive
(STI) Plan - The program described herein. May also be referred to as “STIP” or “STI Plan”.

  

  
 Page 4 of 5 

			
	

	 	 Rewards - Compensation
 Management Short-Term Incentive
 (STI) Plan

	 
	 

  
  
  

 Appendix 
  

					
	 Payout Schedule
	 	 
	 Metric Performance
	 	 Payout (as % of target)
	 	 
	115%	 	150.0%	 	
	114%	 	146.7%	 	
	113%	 	143.3%	 	
	112%	 	140.0%	 	
	111%	 	136.7%	 	
	110%	 	133.3%	 	
	109%	 	130.0%	 	
	108%	 	126.7%	 	
	107%	 	123.3%	 	
	106%	 	120.0%	 	
	105%	 	116.7%	 	
	104%	 	113.3%	 	
	103%	 	110.0%	 	
	102%	 	106.7%	 	
	101%	 	103.3%	 	
	100%	 	100.0%	 	
	99%	 	97.5%	 	
	98%	 	95.0%	 	
	97%	 	92.5%	 	
	96%	 	90.0%	 	
	95%	 	87.5%	 	
	94%	 	85.0%	 	
	93%	 	82.5%	 	
	92%	 	80.0%	 	
	91%	 	77.5%	 	
	90%	 	75.0%	 	
	89%	 	72.5%	 	
	88%	 	70.0%	 	
	87%	 	67.5%	 	
	86%	 	65.0%	 	
	85%	 	62.5%	 	
	84%	 	60.0%	 	
	83%	 	57.5%	 	
	82%	 	55.0%	 	
	81%	 	52.5%	 	
	80%	 	50.0%	 	

  

			
		 	 •   Payout is calculated for each incremental increase in performance (straight line
interpolation).
  
 •   EC
members have an additional stretch superior goal as follows:
  
 •   Payout is calculated at an additional 5% for each incremental increase in performance up to 125% of metric performance (straight line interpolation).

  

  
 Page 5 of 5Form of Restricted Stock Unit Award Agreement

 Exhibit 10.2 
 FORM OF RESTRICTED STOCK UNIT AGREEMENT 
 H.B. FULLER COMPANY 
 RESTRICTED STOCK UNIT AWARD AGREEMENT 
 (Under the Amended and Restated Year 2000 Stock Incentive Plan) 
 THIS AGREEMENT, dated as of
                    ,         , is entered into between H.B. Fuller Company, a Minnesota
corporation (the “Company”), and                     , an employee of the Company or an affiliate of the Company
(“Participant”). 
 WHEREAS, the Company, pursuant to the Amended and Restated H.B. Fuller Company Year 2000 Stock Incentive
Plan (the “Plan”), wishes to award to Participant Restricted Stock Units, representing the right to receive shares of common stock, par value $1.00 per share, of the Company (“Common Stock”), subject to certain restrictions and
on the terms and conditions contained in this Agreement and the Plan; 
 NOW, THEREFORE, in consideration of the premises and
agreements set forth herein, the parties hereto hereby agree as follows: 
 1. Award of Restricted Stock Units. The Company, effective as of the date
of this Agreement, hereby grants to Participant an award of              Restricted Stock Units, each Restricted Stock Unit representing the right to receive one share of Common
Stock on such date as set forth herein, plus an additional amount pursuant to Section 2(b) hereof, subject to the terms and conditions set forth in this Agreement. 
 2. Rights of Participant with Respect to the Restricted Stock Units. 
 (a) No Shareholder
Rights. The Restricted Stock Units granted pursuant to this Agreement do not and shall not entitle Participant to any rights of a shareholder of Common Stock. The rights of Participant with respect to the Restricted Stock Units shall remain
forfeitable at all times prior to the date on which such rights become vested, and the restrictions with respect to the Restricted Stock Units lapse, in accordance with Section 3 hereof. 
 (b) Dividend Equivalents. As long as Participant holds Restricted Stock Units granted pursuant to this Agreement, the Company shall credit to
Participant, on each date that the Company pays a cash dividend to holders of Common Stock generally, an additional number of Restricted Stock Units (“Additional Restricted Stock Units”) equal to the total number of whole Restricted Stock
Units and Additional Restricted Stock Units previously credited to Participant under this Agreement multiplied by the dollar amount of the cash dividend paid per share of Common Stock by the Company on such date, divided by the Fair Market Value of
a share of Common Stock on such date. Any fractional Restricted Stock Unit resulting from such calculation shall be included in the Additional Restricted Stock Units. A report showing the number of Additional Restricted Stock Units so credited shall
be sent to Participant periodically, as determined by the Company. The Additional Restricted Stock Units so credited shall be subject to the same terms and conditions as the Restricted Stock Units granted pursuant to this Agreement and the
Additional Restricted Stock Units shall be forfeited in the event that the Restricted Stock Units with respect to which the dividend equivalents were paid are forfeited. 

 (c) Issuance of Shares; Conversion of Restricted Stock Units. No shares of Common Stock shall be
issued to Participant prior to the date on which the Restricted Stock Units vest, and the restrictions with respect to the Restricted Stock Units lapse, in accordance with Section 3 hereof. Neither this Section 2(c) nor any action taken
pursuant to or in accordance with this Section 2(c) shall be construed to create a trust of any kind. After any Restricted Stock Units vest pursuant to Section 3 hereof, the Company shall promptly cause to be issued, in either certificated
or uncertificated form, shares of Common Stock registered in Participant’s name or in the name of Participant’s legal representatives, beneficiaries or heirs, as the case may be, in payment of such vested whole Restricted Stock Units and
any Additional Restricted Stock Units and shall cause such certificated or uncertificated shares to be delivered to Participant or Participant’s legal representatives, beneficiaries or heirs, as the case may be. The value of any fractional
Restricted Stock Unit shall be paid in cash at the time certificated or uncertificated shares are delivered to Participant in payment of the Restricted Stock Units and any Additional Restricted Stock Units. 
 3. Vesting; Forfeiture. 
 (a) Vesting. Subject
to the terms and conditions of this Agreement, the Restricted Stock Units shall vest in full and the restrictions with respect to the Restricted Stock Units shall lapse if Participant remains continuously employed by the Company or an Affiliate of
the Company until                     ,         . 
 (b) Early Vesting. Notwithstanding the vesting provision contained in Section 3(a) above, but subject to the other terms and conditions set
forth herein, upon the occurrence of a “Change in Control” (as defined below) or in the event of Participant’s death or permanent disability, Participant or Participant’s legal representatives, beneficiaries or heirs, as the case
may be, shall become immediately vested in all of the Restricted Stock Units, and the restrictions with respect to the Restricted Stock Units shall lapse, as of the date of such Change in Control, death or permanent disability. 
 (c) For the purposes of this Agreement, a “Change in Control” shall be deemed to have occurred upon any of the following events: 
  

	 	(1)	a public announcement (which, for purposes hereof, shall include, without limitation, a report filed pursuant to Section 13(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) that any individual, corporation, partnership, association, trust or other entity becomes the beneficial owner (as defined in Rule 13(d)(3) promulgated under the Exchange Act), directly or indirectly, of
securities of the Company representing 30% or more of the voting power of the Company then outstanding; 

  

	 	(2)	the individuals who, as of the date of this Agreement, are members of the Board of Directors of the Company (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board (provided, however, that if the election or nomination for election by the Company’s shareholders of any new director was approved by a vote of at least a majority of the Incumbent Board, such new director shall be
considered to be a member of the Incumbent Board); 

  

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	 	(3)	the approval of the shareholders of the Company, and consummation, of (i) any consolidation, merger or statutory share exchange of the Company with any person in which the
surviving entity would not have as its directors at least 60% of the Incumbent Board and as a result of which those persons who were shareholders of the Company immediately prior to such transaction would not hold, immediately after such
transaction, at least 60% of the voting power of the Company then outstanding or the combined voting power of the surviving entity’s then outstanding voting securities; (ii) any sale, lease, exchange or other transfer in one transaction or
series of related transactions substantially all of the assets of the Company; or (iii) the adoption of any plan or proposal for the complete or partial liquidation or dissolution of the Company; or 

  

	 	(4)	a determination by a majority of the members of the Incumbent Board, in their sole and absolute discretion, that there has been a Change in Control of the Company.

 For purposes of this Section 3(c), “voting power” when used with reference to the Company shall mean the voting power of all
classes and series of capital stock of the Company now or hereafter authorized. 
 (d) Forfeiture. If Participant ceases to be
employed by the Company or an Affiliate of the Company for any reason other than those specified in Section 3(b) hereof prior to the vesting of the Restricted Stock Units pursuant to Section 3(a) hereof, Participant’s rights to all of
the Restricted Stock Units shall be immediately and irrevocably forfeited, including the right to receive any Additional Restricted Stock Units. 
 4.
Restrictions on Transfer. The Restricted Stock Units shall not be transferable other than by will or by the laws of descent and distribution. Notwithstanding the foregoing, Participant may, in the manner established by the Committee,
designate a beneficiary or beneficiaries to exercise the rights of Participant and receive any property distributable with respect to the Restricted Stock Units upon the death of Participant. Each right under this Agreement shall be exercisable
during Participant’s lifetime only by Participant or, if permissible under applicable law, by Participant’s legal representative. The Restricted Stock Units and any rights under this Agreement may not be sold, assigned, transferred,
pledged, alienated, attached or otherwise encumbered and any purported sale, assignment, transfer, pledge, alienation, attachment or encumbrance shall be void and unenforceable against the Company or any Affiliate. 
 5. Income Tax Matters. 
 In order to comply with all
applicable federal, foreign, state or local income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal, foreign, state or local payroll, withholding, income or other taxes, which
are the sole and absolute responsibility of Participant, are withheld or collected from Participant. Upon vesting of the Restricted Stock Units and the lapse of the restrictions with respect to the Restricted Stock Units under the terms of this
Award Agreement, Participant shall be obligated to pay any applicable withholding taxes arising from such vesting and lapse of restrictions. Unless the Company receives an irrevocable written instruction, addressed to the attention of the Secretary
of the Company, from Participant prior to the date that the Restricted Stock Units 

  

 3 

 
vest and the restrictions lapse, the Company shall automatically withhold as payment the number of shares of Common Stock, determined by the Fair Market
Value at the date of such vesting and lapse of restrictions, required to pay the applicable withholding taxes. The Company shall not be required to deliver any fractional share of Common Stock but will pay, in lieu thereof, the Fair Market Value (as
of the date the Restricted Stock Units vest and the restrictions lapse) of such fractional share. 
 6. Securities Matters. No shares of Common Stock
shall be issued pursuant to this Agreement prior to such time as counsel to the Company shall have determined that the issuance of such shares will not violate any securities or other laws, rules or regulations. The Company shall not be required to
deliver any shares of Common Stock until the requirements of any applicable securities or other laws, rules or regulations (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied.

 7. Adjustments. In the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, shares, other
securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares or other securities of the Company, issuance of warrants or
other rights to purchase shares or other securities of the Company or other similar corporate transaction or event affects the Common Stock such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available under this Agreement, then the Committee shall, in such manner as it may deem equitable, in its sole discretion, adjust any or all of the number and type of shares
subject to the Restricted Stock Units. 
 8. General Provisions. 
 (a) Interpretations. This Agreement is subject in all respects to the terms of the Plan. Terms used herein which are defined in the Plan shall have the respective meanings ascribed to such terms in the Plan,
unless otherwise defined herein. In the event that any provision of this Agreement is inconsistent with the terms of the Plan, the terms of the Plan shall govern. Any question of administration or interpretation arising under this Agreement shall be
determined by the Committee, and such determination shall be final and conclusive upon all parties in interest. 
 (b) No Right to
Employment. The grant of the Restricted Stock Units shall not be construed as giving Participant the right to be retained as an employee of the Company or any Affiliate. In addition, the Company or an Affiliate may at any time dismiss
Participant from employment, free from any liability or any claim under this Agreement, unless otherwise expressly provided in this Agreement. 
 (c) Headings. Headings are given to the sections and subsections of this Agreement solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or
interpretation of this Agreement or any provision hereof. 
 (d) Severability. If any provision of this Agreement is or becomes or is
deemed to be invalid, illegal or unenforceable in any jurisdiction under any law deemed to be applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable law, or if it cannot be so construed or
amended without, in the determination of the Committee, materially altering the purpose or intent of this Agreement, such provision shall be stricken as to such jurisdiction or this Agreement, and the remainder of this Agreement shall remain in full
force and effect. 
  

 4 

 (e) Governing Law. The internal law, and not the law of conflicts, of the State of Minnesota will
govern all questions concerning the validity, construction and effect of this Agreement. 
 IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed as of the date first set forth above. 
  

					
	H.B. FULLER COMPANY
		
	By:	 	  

		 	Michele Volpi
		 	President and Chief Executive Officer
		
		 	  

		 	Participant
			
		 	Date:	 	  

  

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