Document:

bwmn-ex1017_335.htm

Exhibit 10.17

 

[Name of Participant] 

PERFORMANCE BASED

RESTRICTED STOCK UNIT AGREEMENT

 

This Restricted Stock Unit Agreement (this “Agreement”) dated this ___ day of _____, 2021 (the “Grant Date”), is between _________ (the "Participant") and Bowman Consulting Group Ltd. (the "Company"), a Delaware corporation, and governs a grant of Restricted Stock Units (“RSU”s) to the Participant pursuant to the Bowman Consulting Group Ltd. 2021 Omnibus Equity Incentive Plan (the "Plan") and the Bowman Consulting Group 2021 Executive Long Term Incentive Plan (the “LTIP Plan”). Capitalized terms not explicitly defined in this Agreement have the definitions ascribed to them in the Plan or the LTIP Plan. The Company and the Participant agree as follows:

 

1.Restricted Stock Unit Grant.  Subject to, and in accordance with the terms, conditions and restrictions set forth in the Plan, the LTIP Plan and this Agreement, the Company hereby grants to the Participant ________ RSUs effective as of the Grant Date (the “Award”) Each RSU is equivalent to one share of Common Stock of the Company (the “Shares”) for the purposes of determining the number of Shares subject to this Award.  

 

2.Restriction on Transfer.  RSUs may not be transferred, sold, pledged, exchanged, assigned or otherwise encumbered or disposed of by Participant unless and until they have become nonrestricted and nonforfeitable in accordance with Section 3; provided, however, that Participant's interest in this Award may be transferred by will or the laws of descent and distribution. Any purported transfer, encumbrance or other disposition of the RSUs that is in violation of this Section 2 shall be null and void, and the other party to any such purported transaction shall not obtain any rights to or interest in the RSUs.

 

3.Vesting, Release and Lapse of Restrictions.  

 

	
 
	
(a)
	
Subject to paragraphs (b) and (c) of this Section, the RSUs shall vest in one installment for the Performance Period on the date that the Committee determines the Company’s results on Relative Total Shareholder Return for the Performance Period.  Based on such result, vesting will be as follows:

 

	
If the Company’s

Relative TSR at end

of Performance Period is
	
Then the percentage of the

RSU that will vest will be:

	
75th Percentile or higher
	
100%

	
55th Percentile
	
50%

	
35th Percentile
	
25%

	
Below 35th Percentile
	
0%

 

The actual number of RSUs that will vest shall be interpolated between the vesting percentages as set forth in the LTIP Plan to the extent that the Relative Total Shareholder Return is between the amounts set forth above in the chart.

 

	
 
	
(b)
	
The RSUs shall become fully vested immediately upon the (i) the Participant’s death or Disability, or (ii) if the Participant’s employment with the Company is terminated (A) by the 

 

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Company without Cause, (B) by the Participant for Good Reason, or (C) by the Participant for Good Reason related to a Change in Control, (iii) provided that in each of (ii) A, B, or C, the Participant (or his or her personal representative) executes the Company’s release agreement.  The terms Disability, Cause, and Good Reason shall be as defined in the written employment letter or agreement between the Company and the Participant in effect at the time of such event of termination.  

 

	
 
	
(c)
	
 If the Participant's employment with the Company is terminated by the Company for Cause or by the Participant without Good Reason, then any unvested RSUs shall be forfeited and all of the Participant's rights hereunder with respect to such unvested RSUs (and any Dividend Equivalent Rights, as defined below) shall cease as of the effective date of such termination of employment.  

 

	
 
	
(d)
	
If the Participant's employment with the Company is terminated by the Participant by Retirement or Early Retirement:

 

	
 
	
(i)
	
prior to July 1 in the first year of the Performance Period, then all unvested RSU’s shall be forfeited;

 

	
 
	
(ii)
	
after July 1 through December 31 in the first year of the Performance Period, then one-third (1/3) of any unvested RSUs shall remain eligible to vest at the end of the Performance Period on the date that the Committee determines the Company’s results on Relative Total Shareholder Return for the Performance Period pursuant to 3(a) above;

 

	
 
	
(iii)
	
 at any time in the second year of the Performance Period, then two-thirds (2/3) of any unvested RSUs shall remain eligible to vest at the end of the Performance Period on the date that the Committee determines the Company’s results on Relative Total Shareholder Return for the Performance Period pursuant to 3(a) above; and

	
 
	
(iv)
	
 at any time in the third year of the Performance Period, then any and all unvested RSUs shall remain eligible to vest at the end of the Performance Period on the date that the Committee determines the Company’s results on Relative Total Shareholder Return for the Performance Period pursuant to 3(a) above.

 

4.Dividends. If the Company declares a cash dividend payable to stockholders of Common Stock that is payable to stockholders of record after the Grant Date and before the applicable Shares deliverable under this Agreement are issued hereunder, this Award will reflect, and represent the future right to receive, subject to the restrictions herein, an amount equal to such cash dividend per share payable per share of Common Stock then subject to this Award (a “Dividend Equivalent Right"), which shall accrue in cash without interest.

 

The Dividend Equivalent Rights will be subject to the same terms, conditions, and restrictions of this Agreement as are the RSUs to which they relate and will be payable at the same time as the underlying RSUs are settled and released following vesting of such RSUs. None of the RSUs will be issued (nor will the Participant have any of the rights of a stockholder with respect to the underlying shares) and no Dividend Equivalent Rights (if any) will be paid until the vesting and other conditions under the Agreement and Plan are satisfied. If such RSUs are forfeited, the Participant shall have no right to such Dividend Equivalent Rights.

 

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5.No Rights as Stockholder; Change in Shares.  The Participant shall have none of the rights or privileges of a stockholder in respect of the RSUs or the Shares deliverable under this Award unless and until the RSUs vest and electronic delivery representing the Shares have been completed, recorded on the records of the Company or its transfer agents and registrars, and delivered to Participant.  After such issuance, recordation and delivery, Participant shall have all the rights of a stockholder of the Company, including the right to vote such Shares.  If any of the Company shares of common stock are split, combined, or in any other manner changed, modified or amended, or the Company is recapitalized, restructured, or reorganized, the RSUs may be adjusted as provided in the Plan.

 

6.Compliance with Laws and Claw-Back.

 

(a) Repayment/Forfeiture. Any benefits that the Participant may receive hereunder shall be subject to repayment or forfeiture as may be required to comply with the requirements of the U.S. Securities and Exchange Commission or any applicable law, rule or regulation, including the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations thereunder, as may be in effect from time to time.

 

(b) Claw-back.  If the Participant performs any activity that is in violation of any of the restrictive covenants in any exhibit to the Employment Letter the Company may recoup from the Participant any proceeds, gains or other economic benefit the Participant actually or constructively received or derived from the Shares.

 

7.No Right to Other Long-Term Incentive Awards. The Participant understands and agrees that (a) the Plan and LTIP Plan are established voluntarily by the Company, are discretionary in nature and may be suspended or terminated by the Company or the Committee at any time, to the extent permitted by the Plan or LTIP Plan; (b) the grant of RSUs is voluntary and does not create any contractual or other right or entitlement to receive future grants of RSUs or other equity, or benefits in lieu of RSUs, even if RSUs have been granted in the past; and (c) all determinations with respect to future grants of RSUs, if any, including the grant date, the number of RSUs granted and the applicable vesting terms, will be at the sole discretion of the Committee.

 

8.No Effect on Employment. This Agreement is not an employment contract. The terms of the Participant's employment are not affected or changed in any way by the grant of RSUs, and neither the Plan, the LTIP Plan, nor this Agreement afford the Participant any rights to compensation or damages, including for loss or potential loss that the Participant may suffer by reason of the RSUs (including any Dividend Equivalent Rights) not vesting as a result of the termination of the Plan, the LTIP Plan, forfeiture of the RSUs or the termination of the Participant' s employment.

 

9.The Plan. The RUSs awarded by the Company and described in this Agreement are made in accordance with and subject to the Plan and the LTIP Plan. The terms of this Agreement are intended to be in full accordance with each of the Plan and LTIP Plan. However, in the event of any potential or actual conflict between any term of this Agreement and either the Plan or LTIP Plan, this Agreement shall automatically be amended to comply with the terms of the Plan or LTIP Plan, as applicable.

 

10.Modifications to Agreement. This Agreement together with any Exhibits represents the full and complete understanding between the Participant and the Company on the subjects covered. The 

 

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Participant expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations or inducements other than those contained in this Agreement. Except as otherwise provided in the Plan, this Agreement cannot be modified or changed by any prior or contemporaneous or future oral agreement of the parties. Except as otherwise provided in the Plan, this Agreement shall only be modified by the express written agreement of the parties.

 

11.Binding Agreement.  This Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

 

12.Notices. For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when either hand delivered, the next business day after being deposited with a nationally recognized overnight delivery service, or three business days after being mailed by United States Postal Service certified mail, return receipt requested, postage prepaid.  Notice to the Company Any notice to be given to the Company under the terms of this Agreement will be addressed to the Legal Department of the Company, 12355 Sunrise Valley Drive, Reston VA  20191, or at such other address as the Company may designate in writing, and if to Participant at the Participant’s residence address then set forth in the Company’s employment records.•

 

13.Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to choice of law or conflict of law rules.

 

14.Beneficiary of Deceased Participant.  Any distribution or delivery to be made to the Participant under this Agreement shall, if the Participant is then deceased, be made to the Participant's designated beneficiary named pursuant to the Plan, or if no beneficiary survives the transferee must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.

 

15.Taxation. Regardless of any action the Company and/or the Subsidiary or affiliate employing the Participant (the "Employer") take with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to the Participant's participation in the Plan and legally applicable to the Participant ("Tax-Related Items"), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains the Participant's responsibility and may exceed the amount actually withheld by the Company or the Employer. The Participant further acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Restricted Shares, including, but not limited to, the grant, vesting or settlement of the Restricted Shares, the issuance of shares in settlement of the Restricted Shares, the subsequent sale of shares acquired at vesting and the receipt of any dividends and/or any dividend equivalents; and (ii) do not commit to and are under no obligation to structure the terms of the Award or any aspect of the Restricted Shares to reduce or eliminate the Participant's liability for Tax-Related Items or achieve any particular tax result. Further, if the Participant has become subject to tax in more than one jurisdiction between the Grant Date and the date of any relevant taxable event, the Participant acknowledges 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.

 

 

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Prior to the relevant taxable or tax withholding event, as applicable, the Participant shall pay or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax­ Related Items. In the event the Participant fails to pay or make such adequate arrangements, as determined by the Company and/or the Employer, the Participant hereby authorizes the Company and/or the Employer, or their respective agents, at their discretion and without further notice or authorization by Participant, to satisfy the obligations with regard to all Tax-Related Items by withholding in Shares to be issued upon vesting/settlement of the Shares as provided for in the Plan.

 

16.Electronic Communications. The Company and its affiliates may choose to deliver any documents related to Participant’s current or future participation in the Plan by electronic means. By accepting this grant, the Participant consents and agrees to electronic delivery of any Plan documents, proxy materials, annual reports and other related documents, including all materials required to be distributed pursuant to applicable securities laws. The Company has established procedures for an electronic signature system for delivery and acceptance of Plan documents (including documents relating to any programs adopted under the Plan). The Participant consents to such procedures and agrees to participate in the Plan through an online or electronic system established and maintained by the Company or a third party designated by the Company. The Participant agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature. The Participant understands that, unless earlier revoked by the Participant, this consent shall be effective for the duration of the Agreement and that he or she shall have the right at any time to request written copies of any and all materials referred to above.

 

17.Insider-Trading Notification. The Participant should be aware of the insider- trading rules and acknowledges review of the Company's Insider Trading Policy, which, may affect the sale of shares issued to the Participant upon settlement of the RSUs. In particular, the Participant may be prohibited from effectuating certain transactions involving the Shares if the Participant has material nonpublic information about the Company. If the Participant is uncertain whether the insider-trading rules are applicable, the Participant should consult with a personal legal advisor.  The Participant acknowledges that the Company in its discretion may determine that a breach of the Insider Trading Policy constitutes material misconduct.  

 

	
Accepted by the Participant:
	
 
	
For the Company:

	
 
	
 
	
 

-

	
 
	
 
	
 

 

 

5bwmn-ex1018_334.htm

Exhibit 10.18

 

BOWMAN CONSULTING GROUP LTD.

2021 EXECUTIVE OFFICERS SHORT TERM INCENTIVE PLAN

 

SECTION 1. ESTABLISHMENT AND PURPOSE

 

1.1 Establishment. Bowman Consulting Group Ltd., a Delaware company (the “Company”), hereby establishes a short-term incentive compensation plan to be known as the 2021 Executive Officers Short Term Incentive Plan (the “STIP”). The STIP permits the awarding of cash bonuses to Employees (as defined below), based on the achievement of performance goals that are pre-established by the Board of Directors of the Company (the “Board”) or by the Compensation Committee of the Board (the “Committee”).

 

Upon approval by the Board, the STIP shall become effective as of November 1, 2021 and continue until five (5) years after its Effective Date, unless terminated earlier as set forth in Section 9.

 

1.2 Purpose. The purposes of the STIP are to (i) provide greater motivation for certain employees of the Company to attain and maintain the highest standards of performance, (ii) attract and retain employees of outstanding competence, and (iii) direct the energies of employees towards the achievement of specific business goals established for the Company. The purposes shall be carried out by the payment to Participants (as defined below) of short-term incentive cash awards, subject to the terms and conditions set forth in the STIP. 

 

SECTION 2. DEFINITIONS

 

Unless otherwise defined, the following terms shall have the meanings set forth below.

 

“Award Opportunity” means the various levels of incentive awards which a Participant may earn under the STIP, as established by the Committee pursuant to Section 5.

 

“Base Salary” shall mean the regular annualized base salary (determined as of January 1 of each Plan Year) earned by a Participant during a Plan Year; provided, however, that Base Salary shall not include awards under this STIP, any bonuses, equity awards, the matching contribution under any plan of the Company providing such, overtime, relocation allowances, severance payments or any other special awards as may determined by the Committee.

 

“Early Retirement” means, with the consent of the independent members of the Board, a Participant’s Retirement with at least five (5) years of continuous combined service with the Company or a Predecessor, ,, and that is either (a) on or before May 7, 2024 (or in the case of the CEO on or before May 7, 2026) or (b) prior to the Participant having attained combined years of age and years of service with the Company or a Predecessor of seventy (70) or more.

 

“Effective Date” means the date the STIP becomes effective, as set forth in Section 1.1.

 

“Employee” means an employee of the Company or an employee of a Predecessor Company.

 

 

 

 

“Final Award” means the actual award earned during a STIP Year by a Participant, as determined by the Committee at the end of such Plan Year.

 

“Participant” means an Employee who is participating in the STIP pursuant to Section 4.

 

“Plan Year” means the calendar year, commencing on January 1st and ending on December 31st.  The Committee shall have the authority and discretion to designate different performance periods under the STIP, in which case references to Plan Year shall be deemed to refer to such other performance period.

 

“Predecessor” means an entity which the Company has acquired, directly or indirectly, through merger, consolidation, or the purchase of substantially all the asset or voting stock.

 

“Retirement” means, with the consent of the Committee, a Participant’s termination of employment with the Company other than for Cause after May 7, 2024 (or in the case of the CEO after May 7, 2026) provided that the LTIP Participant (i) gave at least three-months prior written notification to the Company of intention to terminate employment, (ii) has attained the age of 55, (iii) has accrued five (5) or more years of continuous service either with the Company or a Predecessor, and (iv) has combined years of age and years of service with the Company or a Predecessor of seventy (70) or more.

 

“Target Incentive Award” means the award, expressed as a percentage of a Participant’s Base Salary and as provided in any applicable employment agreement, that may be paid to a Participant when performance measures are achieved, as established by the Committee.

 

SECTION 3. ADMINISTRATION

 

The STIP shall be administered by the Committee.  Subject to the limitations set forth in the STIP, the Committee shall:

 

	
 
	
a.
	
approve the selection of Employees who shall participate in the STIP; 

	
 
	
b.
	
establish Award Opportunities in such forms and amounts as it shall determine, subject to any applicable employment agreements or contractual arrangements then in existence between the Company and a Participant;

	
 
	
c.
	
impose such limitations, restrictions, and conditions upon such Award Opportunities as it shall deem appropriate; 

	
 
	
d.
	
interpret the STIP and adopt, amend, and rescind administrative guidelines and other rules and regulations relating to the STIP;

	
 
	
e.
	
make any and all determinations in connection with the administration and interpretation of the STIP; 

	
 
	
f.
	
correct any defect or omission or reconcile any inconsistency in this STIP or in any Award Opportunity granted hereunder; and

	
 
	
g.
	
make all other necessary determinations and take all other actions necessary or advisable for the implementation and administration of the STIP.

 

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The Committee's determinations on matters within its authority shall be conclusive and binding upon all parties.

  

SECTION 4. ELIGIBILITY   

 

The Chief Executive Officer, the Chief Operating Officer, the Chief Legal Officer, and the Chief Financial Officer of the Company shall participate in the STIP annually.  Additional Employees recommended by the Chief Executive Officer and approved by the Committee are eligible to participate the STIP for the Plan Year. Participants shall be notified of the performance goals and related Award Opportunities for the relevant Plan Year.

  

SECTION 5. AWARD DETERMINATION

 

5.1 Performance Goals. 

 

	
 
	
a.
	
Prior to the beginning of each Plan Year, or as soon as practicable thereafter, the Committee shall approve or establish in writing the performance goals for that Plan Year.  The Committee may select one or more of the performance goals specified for each Plan Year which need not be the same for each Participant in a given year.  Performance goals may include financial and/or non-financial goals.  Performance goals may be described in terms of objectives that are related to an individual Participant or objectives that are Company-wide or related to a department, region, function or business unit and may be measured on an absolute or cumulative basis or on the basis of percentage of improvement over time, and may be measured in terms of Company performance (or performance of the applicable department, region, function or business unit) or measured relative to selected peer companies or a market index.  Performance goals and their relative weight may vary by job.

 

	
 
	
b.
	
Financial performance goals may be GAAP or non-GAAP measures, as the Committee may deem appropriate in its sole discretion, including but not limited to, net income, EBITDA, Adjusted EBITDA, gross contract revenue, contract costs, net service billing, operating expense, income from operations, earnings per share, earnings per share as adjusted, return on equity, total shareholder return, or stock price appreciation.  Non-GAAP performance goals shall be determined on the basis presented in the Company’s financial statements, subject to modifications and adjustments approved by the Committee.  

 

5.2 Award Opportunities. Prior to the beginning of each Plan Year, or as soon as practicable thereafter, the Committee shall establish an Award Opportunity for each Participant subject to any applicable employment agreements or contractual arrangements then in existence between the Company and a Participant. In the event a Participant changes job levels during a Plan Year, the Participant's Award Opportunity may be adjusted to reflect the amount of time at each job level during the Plan Year. In addition, if a Participant changes jobs during the year, the Participant’s goals may change as of the effective date of the job change to reflect the different performance goals. Each job’s performance goals will continue to be assessed on a full-year basis to determine payouts, with the proportion of time in each job applied to determine the final payout amount.

 

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5.3 Adjustment of Performance Goals. The Committee shall have the right to adjust the performance goals and the Award Opportunities during a Plan Year based on the occurrence of external changes or other unanticipated business conditions, including without limitation, events such as material acquisitions, changes in the capital structure of the Company, economic downturns, or global pandemics.

 

5.4 Final Awards.  At the end of each Plan Year, Final Awards shall be computed for each Participant and approved by the Committee.  Each Final Award shall be based upon the level of satisfaction or achievement, for example, threshold, target or high, on the pre-established performance goals multiplied by a percentage of the Participant’s Base Salary as determined by the Committee or as set forth in such Participant’s employment contract.  Final Award amounts may vary above or below the Target Incentive Award and lineal interpolation shall be used if performance falls between levels established by the Committee. The Committee also shall have the authority to exercise subjective discretion in the determination of Final Awards to reduce or increase a calculated award based on the Committee's qualitative assessment of performance.

 

SECTION 6. PAYMENT OF FINAL AWARDS

 

6.1 Form and Timing of Payment. Final Award payments shall be payable to the Participant in a single lump-sum cash payment, as soon as practicable after the Committee, in its sole discretion, has determined the extent to which the specified performance goals were achieved, but in no event later than March 15th of the year immediately following such Plan Year.

 

6.2 Payment of Partial Awards. Subject to Section 7 In the event a Participant no longer meets the eligibility criteria as set forth in the STIP during the course of a particular Plan Year, the Committee may, in its sole discretion, compute and pay a partial award for the portion of the Plan Year that an Employee was a Participant. Unless such payment is specifically approved by the Committee, no such payments will be made, and continued service through the end of the Plan Year shall be required to earn an award.

 

 SECTION 7. TERMINATION OF ELIGIBILITY OR EMPLOYMENT

 

7.1 Termination of Eligibility. In the event a Participant ceases to be eligible to participate in the STIP during a Plan Year but remains employed by the Company through the end of such Plan Year, the Final Award determined in accordance with Section 5 shall be reduced to reflect participation prior to such cessation of eligibility only. The reduced award shall be based upon the proportionate amount of Base Salary earned during the Plan Year prior to cessation of eligibility.

 

The Final Award thus determined shall be payable as soon as practicable following certification of the relevant performance goals by the Committee for the Plan Year in which such termination occurs, or sooner (except with respect to Executive Officers), as determined by the Committee in its sole discretion.

 

 

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7.2 Termination of Employment. 

 

	
 
	
a.
	
A Participant shall be entitled to his or her Target Incentive Award for a Plan Year without regard to a Final Award determination (i) upon the Participant’s death or Disability during the Plan Year, or (ii) if the Participant’s employment with the Company is terminated during the Plan Year (A) by the Company without Cause, (B) by the Participant for Good Reason, or (C) by the Participant for Good Reason related to a Change in Control, (iii) provided that in each of (ii) A, B, or C, the Participant (or his or her personal representative) executes the Company’s release agreement.  The terms “Disability”, “Cause”, and “Good Reason” shall be as defined in the written employment letter or agreement between the Company and the Participant in effect at the time of such event of termination.  

 

	
 
	
b.
	
If during a Plan Year the Participant's employment with the Company is terminated by the Company for Cause or by the Participant without Good Reason, then all of the Participant’s rights to a Final Award for the Plan Year then in progress shall be forfeited.

 

	
 
	
c.
	
If the Participant retires on or after July 1 of any calendar year, either by Retirement or Early Retirement, then he or she shall be entitled to a Final Award for the Plan Year in progress determined and paid in accordance with Sections 5 and 6 above respectively.  If the Participant Retires prior to July 1 of any calendar year, either by Retirement or Early Retirement, then all of the Participant’s rights to a Final Award for the Plan Year then in progress shall be forfeited

 

SECTION 8. RIGHTS OF PARTICIPANTS

 

8.1 Employment. Nothing in this STIP shall interfere with or limit in any way the right of the Company to terminate any Participant's employment at any time, nor confer upon any Participant any right to continue in the employ of the Company.

 

8.2 Non-transferability. No right or interest of any Participant in the Plan shall be assignable or transferable, or subject to any lien, directly, by operation of law, or otherwise, including, but not limited to, execution, levy, garnishment, attachment, pledge, and bankruptcy.

 

SECTION 9. AMENDMENT AND MODIFICATION

 

The Committee, in its sole discretion, without notice, at any time and from time to time, may modify or amend, in whole or in part, any or all of the provisions of the STIP, or suspend or terminate it entirely; provided, however, that no such modification, amendment, suspension, or termination may, without the consent of a Participant (or his or her beneficiary in the case of the death of the Participant), reduce the right of a Participant (or his or her beneficiary, as the case may be) to a payment or distribution hereunder which he or she has already earned and is otherwise entitled, except where such modification, amendment, suspension or termination is necessary to comply with applicable law, including without limitation, any modifications or amendments made pursuant to Section 409A of the Code and any regulations, rulings and other regulatory guidance issued thereunder.

 

5

 

 

SECTION 10. MISCELLANEOUS

 

10.1 Governing Law. The STIP shall be governed by and construed in accordance with the laws of Delaware.

 

10.2 Withholding Taxes. The Company shall have the right to deduct from all payments under the STIP any federal, state, local and/or foreign income, employment or other applicable payroll taxes required by law to be withheld with respect to such payments.

 

10.3  Compliance with Laws and Claw-Back.

 

	
 
	
(a)
	
Repayment/Forfeiture. Any benefits that the Participant may receive hereunder shall be subject to repayment or forfeiture as may be required to comply with the requirements of the U.S. Securities and Exchange Commission or any applicable law, rule or regulation, including the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations thereunder, as may be in effect from time to time.

 

	
 
	
(b)
	
Claw-back.  If the Participant performs any activity that is in violation of any of the restrictive covenants in any exhibit to the Employment Letter the Company may recoup from the Participant any proceeds, gains or other economic benefit the Participant actually or constructively received from the STIP.

 

10.4 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

10.5   Costs of the Plan.  All costs of implementing and administering the Plan shall be borne by the Company.

 

10.6 Successors. All obligations of the Company under the Plan shall be binding upon and inure to the benefit of any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, amalgamation, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

 

 

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