Document:

Exhibit 10.1(q)

    

     

    

    
      SENSIENT TECHNOLOGIES CORPORATION

      MANAGEMENT INCENTIVE COMPENSATION PLAN

      

      

      Adopted by the Board of Directors on February 11, 2021

      Amended by the Board of Directors on February 10, 2022

      

      

      I.          THE PLAN

      

      

      The name of this Plan is the Sensient Technologies Corporation Management Incentive Compensation Plan, as amended, restated, and renamed, effective January
        1, 2021. The purpose of this Plan is to promote the interests of the shareholders and to provide incentives to eligible officers of the Company, and eligible employees of Corporate Management and Group Management, for contributions to the
        profitability of the Company. It is separate and distinct from the other Company incentive plans currently in effect.

      

      

      The Plan is an amendment and restatement of the Sensient Technologies Corporation Incentive Compensation Plan for Elected Officers, adopted by the Board of
        Directors on October 7, 2013.  The Plan also sets forth the entire Management Incentive Compensation Plan for Corporate Management and Group Management and supersedes and replaces all prior plans, policies, and programs related to the subject
        matter hereof, including the Sensient Technologies Corporation Management Incentive Compensation Plan for Corporate Management, the Sensient Technologies Corporation Management Incentive Compensation Plan for Group Presidents, and the Sensient
        Technologies Corporation Management Incentive Compensation Plan for Group/Division Management.

      

      

      The Plan is an annual plan that is offered to eligible individuals on a Fiscal Year by Fiscal Year basis. The Committee retains the discretion to not offer
        the Plan for a future Fiscal Year or, if it is offered, to establish different features, terms and conditions.

      

      

      II.          DEFINITIONS

      

      

      In this Plan, the following terms used will have the following definitions:

      

      

      A.          “Board of Directors” means the Board of Directors of Sensient Technologies Corporation.

      

      

      B.          “Bonus Award” means an award paid pursuant to Section VII of this Plan.

      

      

      C.          “Cause” shall have the meaning given such term in any employment or change of control agreement between the individual and the Company.  In the absence of such an agreement, "Cause"
          shall mean:  (a) the willful and continued failure of the individual to perform substantially the individual’s duties with the Company or one of its affiliates (other than any such failure resulting from incapacity due to physical or mental
          illness), after a written demand for performance is delivered to the individual by the individual’s direct supervisor which specifically identifies the manner in which the individual’s direct supervisor believes that the individual has not
          substantially performed the individual’s duties, (b) a violation of the Sensient Technologies Corporation Code of Conduct, or (c) the willful engaging by the individual in illegal conduct or gross misconduct which is materially and demonstrably
          injurious to the Company.

       

      D.          “CEO” means the Chief Executive Officer of the Company.

      

      

      E.          “Code” means the Internal Revenue Code of 1986, as amended and in effect from time to time.

      

      

      F.          “Committee” means the committee provided for in Section III.

      

      

      G.          “Company” means Sensient Technologies Corporation.

      

      

      

      

      
        
          

      

      H.          “Corporate Management” means the management team that performs corporate functions for the Company.

      

      

      I.             "Disability" means the Employee has met the requirements for long-term disability under the Company sponsored plan in which the Employee participates, or an equivalent benefit in the
          country in which the Employee resides.

       

      J.            “Employee” means an employee regularly employed by the Company, and paid on a salary basis.

      

      

      K.          “Fiscal Year” means the calendar year.

      

      

      L.            “Fiscal Year Salary” of any Participant means the base pay earned by such Participant as of December 31 of the relevant Fiscal Year of the Company, exclusive of any incentive
          compensation or supplemental allowances or other payments by the Company.

      

      

      M.          “Group Management” means the management team for the respective Colors Group, Flavors and Extracts Group, and Asia Pacific Group (individually, “Group”).

      

      

      N.          "Normal Retirement" means "normal retirement" under the terms of the Company’s Employee Stock Ownership Plan ("ESOP") in effect on the date of the Participant’s termination of
          employment (or on the date the ESOP is terminated if not then in effect) with the Company.

       

      O.          “Officer” means Employees elected or appointed to serve as officers of the Company by the Company’s Board of Directors.

      

      

      P.          “Participant” means any (1) Officer of the Company and (2) Corporate Management and Group Management Employee selected for participation in the Plan for a given Fiscal Year as further
          described in Section IV.

      

      

      Q.          “Performance Goals” means business criteria with respect to the Company, a Group, and/or any one or more business units or product lines of the Company, which may be on an absolute or
          relative basis.

      

      

      R.          “Plan” means this Sensient Technologies Corporation Management Incentive Compensation Plan.

      

      

      S.          "Proration Factor" means the number of full months as a Participant for the Fiscal Year divided by 12.

      

      

      III.          COMMITTEE

          AND PLAN AUTHORITY

      

      

      A.          The Board of Directors has appointed and shall
          continue to appoint and keep in existence a Compensation and Development Committee composed of at least three members of the Company’s Board of Directors, each of whom meets the independence requirements of the New York Stock Exchange (“NYSE”) on
          which the Company’s stock is listed.  Except as otherwise provided, this Committee shall have full power and authority to interpret and
          administer the Plan in accordance with its terms (provided that, except as provided in Section VII.B. hereof, the Committee shall have no authority or discretion to adjust the amount of any Bonus Award in any amount other than the “Planned
          Amount” (as hereinafter defined)).  Determinations, interpretations or other actions made or taken by the Committee pursuant to the provisions hereof shall be final, binding, and conclusive for all purposes and upon all persons. The Committee’s
          decisions need not be uniform and may be made selectively among Participants, whether or not they are similarly situated.

      

      

      B.          The Board of Directors may, from time to time,
          remove members from the Committee or add members thereto, and vacancies on the Committee, however caused, shall be filled by action of the Board of Directors; provided, that no person shall be appointed to the Committee who does not meet the
          independence requirements of the NYSE.

      

      

      

      

      
        
          

      

      C.          The Committee hereby delegates certain
          authority as described herein to the CEO, including, but not limited to, Corporate Management and Group Management eligibility determinations and establishing the eligible Bonus Award opportunities, and discretionary authority to adjust payouts
          as described herein.  Any such authority delegated or allocated by the Committee shall be exercised in accordance with the terms and conditions of the Plan and any rules, regulations, or administrative guidelines that may from time to time be
          established by the Committee, and any such allocation or delegation may be revoked by the Committee at any time.  Determinations, interpretations, or other actions made or taken by the CEO pursuant to its delegated authority shall be final,
          binding, and conclusive for all purposes and upon all persons. The CEO’s decisions need not be uniform and may be made selectively among Participants, whether or not they are similarly situated.

      

      

      IV.          ELIGIBILITY

          AND PLAN PARTICIPATION

      

      

      Except as provided under Section VI hereof, eligibility to participate in the Plan is determined as follows:

      

      

      A.          All Officers of the Company shall be eligible
          to participate in the Plan and earn a Bonus Award.

      

      

      B.          The CEO shall determine the Employees from
          among Corporate Management who are eligible to participate in the Plan and earn a Bonus Award. The CEO, in consultation with the Group Presidents and Group Vice President, as applicable, shall determine the Employees from among Group Management
          who are eligible to participate in the Plan and earn a Bonus Award.  Such determinations shall be made at the beginning of the Fiscal Year.  Participants will be notified of their selection and be provided with the Plan and specific provisions
          related to their level of participation. Notwithstanding the foregoing, not all Corporate and Group Management Employees need be selected as Participants, and selection as a Participant in one Fiscal Year does not ensure selection in future
          Fiscal Years, if such Plan should be implemented.  In addition, the CEO may render a Participant ineligible from continuing to earn a Bonus Award during a Fiscal Year, in consideration of individual performance or disciplinary status.

      

      

      C.          Eligibility for or receipt of a Bonus Award
          should not be considered as automatic, retroactive, or precedent-based.

      

      

      V.          ESTABLISHMENT

          OF PERFORMANCE GOALS AND AWARD OPPORTUNITIES

      

      

      A.          Not later than the 90th day of each
          Fiscal Year of the Company, the Committee shall establish and adopt Performance Goals for Officers, Corporate Management, and Group Management for such Fiscal Year. Unless the Committee determines otherwise, for the Group Presidents and Group
          Vice President, as applicable, the Committee shall also determine the allocation or weighting of the Performance Goals between those established for Officers and Corporate Management and those established for Group Management.  Following the 90th
          day of each Fiscal Year of the Company, the Performance Goals that have been established for the applicable Fiscal Year in accordance with the foregoing paragraph shall not be subject to modification or adjustment for any reason, except certain events, as described in Paragraph
          VII.A.  The Performance Goals for Officers, Corporate Management, and Group Management may include, but not be limited to:  Earnings per share, EBITDA, cash flow, operating profit (EBIT), and revenue.  In any given Fiscal Year, the Committee may
          utilize any or all of the listed Performance Goals, or substitute or supplement those listed with additional Performance Goals.  The Committee further may define the Performance Goals as it deems appropriate and from Fiscal Year to Fiscal Year.

      

      

      B.          For Officers, the Committee shall also
          establish the Bonus Award opportunities based on a percent of Fiscal Year Salary that may be paid to a Participant as a Bonus Award under this Plan depending on the relative or comparative achievement of the established Performance Goals, which
          may include threshold, target, and maximum Bonus Award amounts.  For Corporate Management and Group Management, the CEO shall establish the Bonus Award opportunities for the Participants selected to participate in the Plan for a Fiscal Year.

      

      

      
        
          

      

      VI.          IMPACT
          OF EMPLOYMENT EVENTS

      

      

      A.          If an Employee is hired or promoted into an
          eligible position during the Fiscal Year, such Employee may be selected as a Participant after the beginning of a Fiscal Year and shall be eligible to receive a Bonus Award multiplied by a Proration Factor to reflect the duration of Plan
          participation, paid at the same time as all other Bonus Awards under the Plan.

      

      

      B.          If a Participant transfers from one eligible
          position to another during the Fiscal Year, the Participant shall be eligible to receive a Bonus Award multiplied by a Proration Factor based on any changes in Bonus Award opportunity, Performance Goals, and/or Plan eligibility for each
          respective time period during the Fiscal Year.

      

      

      C.          If a Participant is on a paid, unpaid, or
          military leave of absence during the Fiscal Year for a month or more, the Participant shall be eligible to receive a Bonus Award that shall be prorated to reflect the number of full months during the Fiscal Year that the Participant was not on
          leave.

      

      

      D.          If a Participant terminated employment with
          the Company during the Fiscal Year because of Normal Retirement, death, or Disability, the amount payable to the Participant shall be equal to the Bonus Award multiplied by the Proration Factor.  The Committee or the CEO, as applicable, with
          respect to a Participant shall have the discretion to increase the Bonus Award up to, but not in excess of, the amount that would have been earned for a full Fiscal Year of participation.

      

      

      E.          If a Participant voluntarily terminates
          employment with the Company (other than for Normal Retirement) or is terminated by the Company, with or without Cause and regardless of whether the Participant is eligible for Normal Retirement, the Participant will not earn a Bonus Award and no
          Bonus Award shall be paid to the Participant.  The Committee or the CEO, as applicable, will have the discretion to grant an exception to this limitation and approve a Bonus Award to a Participant who leaves the Company in good standing after the
          start of the Fourth Quarter of the Fiscal Year, but before the Bonus Award is paid for that Fiscal Year.

      

      

      VII.          DETERMINATION

          AND PAYMENT OF BONUS AWARDS

      

      

      A.          Subject to the following sentence of this
          Paragraph A and to Paragraphs B, C, and E of this Section VII, the Committee shall determine the amount of the Bonus Award payable to a Participant who is an Officer for any Fiscal Year under this Plan and remains employed with the Company on the
          date the Bonus Award is paid out.  The CEO shall make such determinations with respect to Corporate Management, and in consultation with the Group Presidents and Group Vice President, as applicable, with respect to Group Management, provided such
          Participants are employed with the Company on the date the Bonus Award is paid out.  A Bonus Award shall not vest and become earned until payout.  The Bonus Award payable to any Participant shall be an amount that corresponds to the relative or
          comparative achievement of the Performance Goals for such Fiscal Year. In comparing actual performance against the Performance Goals, the Committee may exclude from such comparison any excluded gains, losses, charges, or credits which appear on
          the Company's books and records as the Committee deems appropriate. An excluded item is an item that was not considered for the establishment of the Performance Goals and is related to an activity or event that is outside of the Company's
          ordinary course of business or that impacts comparability between periods.  Examples may include, but shall not be limited to, an item in the Company's financial statements reflecting a significant change in an accounting rule or tax law,
          restructuring costs, merger and acquisition activities, foreign currency translation effects, or the impact of significant litigation. The dollar amount of any Bonus Award determined under this Paragraph A is referred to herein as the “Planned
          Amount.”

      

      

      B.          The Committee or CEO, as applicable, may in
          its discretion reduce the Bonus Award for any Participant or Participants for any Fiscal Year to an amount less than the Planned Amount if the Committee or CEO, in its discretion, determines such reduction to be appropriate, taking into
          consideration such factors as the Committee or CEO, as applicable, deems appropriate. In no event, however, shall any Bonus Award be reduced under this Paragraph B of this Section VII to less than eighty percent (80%) of the Planned Amount.    Discretionary reductions in Bonus Awards under this Paragraph B may be made in different amounts or percentages for different Participants, and
          may be based on considerations unique to a particular Participant and/or considerations affecting the Company or all Participants generally. Notwithstanding anything in the Plan to the contrary, under no circumstances shall the Committee have any
          discretion to increase any Bonus Award to an Officer in an amount greater than the Planned Amount.

      

      

      

      

      
        
          

      

      C.          All Bonus Awards shall be paid in a lump sum
          no later than March 15 of the Fiscal Year following the last day of the Fiscal Year for which the Bonus Award has been determined.

      

      

      D.          No Bonus Award payable for a Fiscal Year shall
          be paid to a Participant prior to the time that the Committee or CEO, as applicable, has made its determination under this Section VII.

      

      

      VIII.          SUCCESSORS

          AND ASSIGNS

      

      

      A.          If the Company sells, assigns, or transfers
          all or substantially all of its business and assets to any person, excluding affiliates of the Company, or if the Company merges into or consolidates or otherwise combines with any person which is a continuing or successor entity, then the
          Company shall assign all of its right, title, and interest in this Plan as of the date of such event to the person which is the acquiring or successor corporation, and such person(s) shall assume and perform from and after the date of such
          assignment all of the terms, conditions, and provisions imposed by this Plan upon the Company.

      

      

      B.          In the case of such an assignment and
          assumption, all further rights, as well as all other obligations of the Company under this Agreement, thenceforth shall cease and terminate and thereafter the expression “the Company” wherever used herein shall be deemed to mean such successor
          person(s).

      

      

      IX.          COORDINATION

          WITH CHANGE OF CONTROL EMPLOYMENT AND SEVERANCE AGREEMENTS

      

      

      If any Participant is a party to a Change of Control Employment and Severance Agreement with the Company (“Change of Control Agreement”), it is the intent of the Company that, if such Change of Control Agreement becomes effective as a result of a Change of Control (as defined therein) of the
        Company, while the Participant continues to be employed by the Company under Section 4 of the Change of Control Agreement such Participant shall not be entitled to receive, for the same fiscal year, a Bonus Award under this Plan as well as a bonus
        under Section 4(b)(ii) of his or her Change of Control Agreement. Accordingly, for example, any Bonus Award payable to any such Participant under this Plan with respect to the fiscal year in which a Change of Control occurs shall be reduced by the
        amount of any bonus to which such Participant is entitled, for or in respect of the same fiscal year, under Section 4(b)(ii) of his or her Change of Control Agreement.

      

      

      X.          PLAN
          AMENDMENTS, DISCONTINUANCE

      

      

      The Board of Directors may amend, suspend, or discontinue this Plan at any time, provided that the Performance Goals and the method by which the amount of
        Bonus Award is determined may not be altered for any Fiscal Year after the Performance Goals for such year have been established except in accordance with Section IV.B. of the Plan; and provided further, that the Plan may not be suspended or
        discontinued for any Fiscal Year after the Performance Goals have been established for such year.  The CEO shall have the foregoing authority with respect to Corporate Management and Group Management.

       

      XI.          GOVERNING

          LAW AND JURISDICTION

       

      The Plan shall be interpreted and governed in accordance with the laws of the State of Wisconsin.  Any action regarding the Plan shall be brought before
        binding arbitration in accordance with JAMS Alternative Dispute Resolution.

      

      

      
        
          

      

      

      

       

      XII.          MISCELLANEOUS

       

      Bonus Awards are in the complete discretion of the Committee or the CEO, as applicable.  The Plan is unfunded and Participants do not have any right to or
        entitlement to Company assets, but rather are unsecured general creditors of the Company.  Any payment of a Bonus Award made hereunder is subject to the Company’s recoupment policy, which is hereby incorporated by reference, as may be amended from
        time to time.

       

      No Employee or Participant shall have any claim or right to receive a Bonus Award under this Plan. Neither this Plan nor any action taken hereunder shall be
        construed as giving an Employee any right to be retained by the Company or any of its subsidiaries or to limit in any way the right of the Company or any of its subsidiaries to change such Employee’s compensation or other benefits or to terminate
        the employment or service of such person with or without Cause. For purposes of this Plan, the transfer of employment by an employee between subsidiaries shall not be deemed a termination of the employee’s employment.Document

Exhibit 10.37

CEO CHANGE OF CONTROL AND SEVERANCE AGREEMENT

This CEO Change of Control and Severance Agreement (the “Agreement”) is made and entered into effective as of June 19, 2019 (the “Effective Date”), by and between Michael Slessor (the “Employee”) and FormFactor, Inc., a Delaware corporation (the “Company”).

RECITALS

WHEREAS, the Company considers it essential to the best interests of its shareholders to foster the continuous employment of key management personnel;

WHEREAS, the Board of Directors of the Company (the “Board”) recognizes that, as is the case with many publicly-held corporations, the possibility of a Change in Control (as defined below) exists and that such possibility, and the uncertainty and questions which it may raise among management, could result in the departure or distraction of management personnel to the detriment of the Company and its shareholders; and

WHEREAS, the Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company's management, including the Employee, to their assigned duties without distraction in light of the possibility of a Change in Control.

NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Company and the Employee hereby agree as follows.

ARTICLES

l.Definitions. The following terms referred to in this Agreement shall have the following meanings.

“Cause” shall mean (i) any act of personal dishonesty taken by the Employee in connection with his or her responsibilities as an employee which is intended to result in substantial personal enrichment of the Employee and is reasonably likely to result in material harm to the Company, (ii) the Employee's conviction of a felony, (iii) a willful act by the Employee which constitutes misconduct and is materially injurious to the Company, or (iv) continued willful violations by the Employee of the Employee's obligations to the Company after the Employee has received a written demand for performance from the Company which describes the basis for the Company's belief that the Employee has not substantially performed his or her duties.

“Change of Control” shall mean the first to occur of any of the following events after the date hereof:

(i)the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into or exchanged for voting securities of the surviving entity) more than sixty percent (60%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or
(ii)(A) any approval by the shareholders of the Company of a plan of complete liquidation of the Company, other than as a result of insolvency or (B) the consummation of the sale or disposition (or the last in a series of sales or dispositions) by the Company of all or substantially all of the Company's assets, other than a sale or disposition to a wholly-owned direct or indirect subsidiary of the Company and other than a sale or disposition which would result in the voting securities of the Company outstanding immediately prior thereto 
			
	

continuing to represent (by being converted into or exchanged for voting securities of the entity to which such sale or disposition was made) more than sixty percent (60%) of the total voting power represented by the voting securities of the entity to which such sale or disposition was made after such sale or disposition; or
(iii)any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becoming the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 40% or more of the total voting power represented by the Company's then outstanding voting securities; or
(iv)during any period of two consecutive years after the Effective Date, Incumbent Directors cease for any reason to constitute a majority of the Board.

“Good Reason” shall mean the occurrence of any of the following: (i) without the Employee's express written consent, a material reduction of the Employee's duties, position or responsibilities relative to the Employee's duties, position or responsibilities in effect immediately prior such reduction; (ii) a reduction by more than 10% of the Employee's base salary or target bonus as in effect immediately prior to such reduction;
(iii)without the Employee's express written consent, the relocation of the Employee's primary work location by more than 50 miles; or (iv) the failure of the Company to obtain the assumption of this Agreement by a successor (by express agreement or operation of law); provided, however, that the Employee will have Good Reason to terminate employment only if (i) the Employee provides notice to the Company of the existence of the event or circumstances constituting Good Reason specified in any of the preceding clauses within 90 days of the initial existence of such event or circumstances, and (ii) the Company does not remedy such event or circumstances within 15 days following receipt of such notice.

“Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the Effective Date, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of those directors then still in office who either were directors on the Effective Date or whose election or nomination for election was so approved.

“Involuntary Termination” shall mean a termination of the Employee by the Company without Cause or a resignation by the Employee within 120 days of any event constituting Good Reason.

“Separation from Service” shall have the meaning given in Section 409A of the Internal Revenue Code (as defined herein).

2.Term of Agreement. This Agreement shall be in effect for the period commencing on the Effective Date and ending on the third anniversary of the Effective Date (the “Term”); provided, however, that the Term shall automatically be extended for one additional year unless, not later than 90 days prior to the scheduled expiration of the then-current Term, the Company or Employee shall have given notice not to extend the Term; and provided further that if a Change of Control shall have occurred during the Term, this Agreement shall remain in effect until 12 months following such Change of Control to give effect to its provisions.

3.At-Will Employment. The Company and the Employee acknowledge that the Employee's employment is and shall continue to be at-will, as defined under applicable law. If the Employee's employment terminates for any reason, the Employee shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement, or as may otherwise be established under the Company's then existing employee benefit plans or policies at the time of termination.

4.Change of Control and Severance Benefits; Non-solicitation.

(a)Involuntary Termination Following Change of Control. If the Employee's employment with the Company terminates as a result of an Involuntary Termination at any time within twelve (12) months after a Change of Control, then the Employee shall be entitled to receive from the Company the following benefits (the “CIC Severance Benefits”), contingent upon the Employee's delivery of a signed release reasonably satisfactory to the Company (the 
			
	

“Release”) within 45 days from the Employee's Separation from Service (the “Release Deadline”) and non-revocation of such Release within the time period specified therein.

(i)Cash Severance Payments. Employee shall receive an aggregate amount equal to one times the sum of (A) the Employee's annual base salary in effect on the date of termination plus (B) the greater of (x) the Employee's annual target bonus amount for the year of termination assuming a 100% payout on all objectives under the Company's bonus plan in effect on the date of termination or (y) such annual target bonus amount times the average rate of annual bonus paid to each executive officer (compared to such officer's target bonus) covered under a change of control severance agreement substantially similar to this Agreement averaged over the two most recently completed fiscal years preceding the date of termination. The Company shall pay the foregoing amount to the Employee in a lump sum within 60 days following the Employee's Separation from Service.

(ii)Health Benefits Continuation. The Company shall pay to the Employee the product of: (A) the Company's monthly COBRA premium in effect on the date of Separation from Service under the Company's group health plan for the type of coverage in effect under such plan (e.g., family coverage) for the Employee on the date of Separation from Service, and (B) 12, which shall be paid in a lump sum within 60 days following the Employee's Separation from Service.
(iii)Equity Acceleration. The vesting and exercisability of each option, restricted stock award, restricted stock unit or other stock based award, including any cash-based award that was substituted or assumed for any stock-based award at the time of the Change in Control (each, an “Equity Award”) shall be automatically accelerated in full and the forfeiture provisions and/or Company right of repurchase of each Equity Award shall automatically lapse in full.

(iv)Forfeiture upon Breach of Covenants. Notwithstanding any of the foregoing, if the Employee materially breaches his or her obligations under paragraph (e) or (f) of this Article 4, from and after the date of such breach, the Employee will no longer be entitled to, and the Company will no longer be obligated to pay, any remaining unpaid portion of the CIC Severance Benefits.

(b)Other Termination. If Employee's employment with the Company terminates as a result of an Involuntary Termination at any time during the Term other than within twelve (12) months following a Change of Control, then Employee shall be entitled to receive from the Company the following benefits (the “Severance Benefits”), contingent upon the Employee's delivery of a signed release reasonably satisfactory to the Company (the “Release”) within 45 days from the Employee's Separation from Service (the “Release Deadline”) and non-revocation of such Release within the time period specified therein.

(v)Cash Severance Payments. Employee shall receive an aggregate amount equal to (A) one times the Employee's annual base salary in effect on the date of termination plus (B) a pro-rated annual bonus (pro-rated through the date of termination) equal to (1) a pro-rata portion of Employee's annual target bonus for the fiscal year of termination of employment or (2) if such annual bonus is intended to be under a Section 162(m) plan, a pro-rata portion of the lesser of (x) the bonus actually earned for the year of termination, as determined following the end of the year, or (y) the target bonus. The Company shall pay the foregoing amount to the Employee in a lump sum within 60 days following the Employee's Separation from Service or, if payment is made under clause (2) of the foregoing sentence, within two and one half months following the end of the year of termination.
			
	

(vi)Health Benefits Continuation. The Company shall pay to the Employee the product of: (A) the Company's monthly COBRA premium in effect on the date of Separation from Service under the Company's group health plan for the type of coverage in effect under such plan (e.g., family coverage) for the Employee on the date of Separation from Service, and (B) 12, which shall be paid in a lump sum within 60 days following the Employee's Separation from Service.
(vii)Equity Acceleration. Employee will become immediately vested in an additional number of shares of Company common stock under all of Employees outstanding Equity Awards as if Employee had continued in employment for twelve (12) additional months following Employee's Separation from Service; provided that with respect to any performance-based Equity Award for which the performance period has not ended as of the date of termination (a “Performance Award”) but for which the initial vesting date would occur within 12 months following Employee's Separation from Service, such Performance Award shall remain outstanding and, upon determination of the amount earned for such performance period, the earned amount of the Performance Period shall be subject to the foregoing 12-month acceleration provision (from the date of termination) and, if applicable, shall be settled within two and one-half months following the year in which Employee's Separation from Service occurs. Further, Employee will have twelve (12) months following Employee's Separation from Service to exercise any vested stock options not to exceed the expiration date of such options.

(c)Other Termination. If the Employee's employment with the Company terminates other than as a result of an Involuntary Termination, then the Employee shall not be entitled to receive the CIC Severance Benefits or Severance Benefits, as applicable, but may be eligible for those benefits (if any) as may then be established under the Company's then existing severance and benefits plans and policies.

(d)Accrued Wages and Vacation; Expenses. Without regard to the reason for, or the timing of, Employee's termination of employment: (i) the Company shall pay the Employee any unpaid base salary due for periods prior to the date of termination; (ii) the Company shall pay the Employee all of the Employee's accrued and unused vacation through the date of termination; and (iii) following submission of proper expense reports by the Employee, the Company shall reimburse the Employee for all expenses reasonably and necessarily incurred by the Employee in connection with the business of the Company prior to the date of termination. These payments shall be made promptly upon termination and within the period of time mandated by law.

(e)Non-solicitation. In consideration of the benefits and protections conferred under this Agreement, Employee agrees that for the Non-solicit Period (as defined below), the Employee shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company's Personnel (as defined below) to leave their employment, or take away such Personnel, or attempt to solicit, induce, recruit, encourage or take away such Personnel, either for the Employee or for any other person or entity. “Personnel” means any of the Company's employees, excluding the Employee's administrative assistant. “Non-solicit Period” means the period commencing on the date of a Change of Control and ending 12 months thereafter.

(f)Confidentiality. In consideration of the benefits and protections conferred under this Agreement, the Employee agrees that he or she will continue to abide by the confidentiality provisions in the Company's Employment, Confidential Information and Invention Assignment Agreement, as executed by the Employee.

5.Limitation on Benefits.
			
	

(a)Notwithstanding anything contained in this Agreement to the contrary, to the extent that the payments and benefits provided under this Agreement and benefits provided to, or for the benefit of, the Employee under any other employer plan or agreement (such payments or benefits are collectively referred to as the “Benefits”) would be subject to the excise tax (the “Excise Tax”) imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), the Benefits shall be reduced (but not below zero) if and to the extent that a reduction in the Benefits would result in Employee retaining a larger amount, on an after tax basis (taking into account federal, state and local income taxes and the Excise Tax), than if Employee received all of the Benefits (such reduced amount is hereinafter referred to as the “Limited Benefit Amount”). The Company shall reduce or eliminate the Benefits, by first reducing or eliminating those payments or benefits which are not payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the “Determination” (as hereinafter defined).

(b)A determination as to whether the Benefits shall be reduced to the Limited Benefit Amount pursuant to this Agreement and the amount of such Limited Benefit Amount shall be made by the Company's independent public accountants or another certified public accounting firm or valuation firm designated by the Company (the “Accounting Firm”) at the Company's expense. The Accounting Firm shall provide its determination (the “Determination”), together with detailed supporting calculations and documentation to the Company and Employee within 30 days of the date of termination of Employee's employment.

6.Successors.

(a)Company's Successors. Any successor to the Company (whether direct or indirect) to all or substantially all of the Company's business and/or assets shall assume the Company's obligations under this Agreement and agree (either expressly or by operation of law) to perform the Company's obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company's business and/or assets.

(b)Employee's Successors. Without the written consent of the Company, Employee shall not assign or transfer this Agreement or any right or obligation under this Agreement to any other person or entity. Notwithstanding the foregoing, the terms of this Agreement and all rights of Employee hereunder shall inure to the benefit of, and be enforceable by, Employee's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

7.Notices.

(a)General. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of the Employee, mailed notices shall be addressed to him or her at the home address that he or she most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its General Counsel, or to the Chief Financial Officer if the notice to the Company is from the General Counsel. Notice of Termination. Any termination by the Company or by the Employee shall be communicated by a notice of termination to the other party hereto given in accordance with this Article.

8.Arbitration.

			
	

(a)Any dispute or controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof, shall be settled by binding arbitration to be held in San Francisco, California, in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association (the “Rules”). The arbitrator(s) may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator's decision in any court having jurisdiction.

(b)The arbitrator(s) shall apply California law to the merits of any dispute or claim, without reference to conflicts of law rules. The arbitral proceedings shall be governed by federal arbitration law and by the Rules, without reference to state arbitration law. Employee hereby consents to the personal jurisdiction of the state and federal courts located in California for any action or proceeding arising from or relating to this Agreement or relating to any arbitration in which the parties are participants.

(c)EMPLOYEE HAS READ AND UNDERSTANDS THIS ARTICLE, WHICH DISCUSSES ARBITRATION. EMPLOYEE UNDERSTANDS THAT SUBMITTING ANY CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO BINDING ARBITRATION, CONSTITUTES A WAIVER OF EMPLOYEE'S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, THE FOLLOWING CLAIMS:

i.         ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION. 
ii.        ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL, STATE OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE CIVIL RIGHTS ACT OF 1991, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, AND LABOR CODE SECTION 201, et seq.;
iii.     ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.

9.Miscellaneous Provisions.

(a)Section 409A. It is intended, and this Agreement will be so construed, that any amounts payable under this Agreement shall either be exempt from or comply with the provisions of Section 409A of the Code and the treasury regulations relating thereto so as not to subject the Employee to the payment of interest and/or any tax penalty that may be imposed under Section 409A of the Code. Employee acknowledges and agrees that the Company has made no representation to Employee as to the tax treatment of the compensation and benefits provided pursuant to this Agreement and that Employee is solely responsible for all taxes due with respect to such compensation and benefits. In addition, to the extent (i) any payments to which Employee becomes entitled under this Agreement in connection with Employee's 
			
	

termination of employment with the Company constitutes deferred compensation subject to Section 409A and (ii) Employee is deemed at the time of such termination of employment to be a “specified” employee under Section 409A, then to the extent required to avoid adverse tax treatment under Section 409A to Employee, such payment or payments shall not be made or commence until the date which is more than six (6) months after the Employee's Separation from Service or, if earlier, the date of death of the Employee. If the condition of providing a Release by the Employee could cause the payment of any amount or provision of any Benefit subject to such release to be paid or provided in either of two taxable years of the Employee, then to the extent required to avoid adverse tax treatment under Section 409A to Employee,
such amount or benefit shall be paid or provided in the later such taxable year.

(b)No Duty to Mitigate. The Employee shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor shall any such payment be reduced by any earnings that the Employee may receive from any other source.
(c)Waiver. No provision of this Agreement may be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Company other than the Employee. No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.
(d)Integration. This Agreement represents the entire agreement and understanding between the parties as to the subject matter herein and supersede all prior or contemporaneous agreements, whether written or oral.

(e)Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the internal substantive laws, but not the conflicts of law rules, of the State of California.

(f)Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.

(g)Withholding Taxes. All payments made pursuant to this Agreement shall be subject to withholding of applicable income and employment taxes.

(h)Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.

(Remainder of page intentionally blank.)
			
	

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above written.

															
	FormFactor, Inc.
	Michael Slessor

			
			
	By:	/s/ JASON COHEN		/s/ MICHAEL SLESSOR

		Name:	Jason Cohen		
		Title:	Vice Present and General Counsel

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