Document:

Exhibit 10.1 2015-17VSPPlanDocument-ZionsBancorporationfinal

            

EXHIBIT 10.1

Zions Bancorporation
2015 – 2017 Value Sharing Plan

Objective:  The purpose of the 2015 – 2017 The Zions Bancorporation Value Sharing Plan (the “Plan”) is to provide a three year cash incentive plan for selected members of the senior management team and other key employees of Zions Bancorporation (the “Company”). It is designed to create long-term shareholder value by focusing the Participant’s attention on achieving superior results relative to financial objectives, credit quality and other important initiatives over a three year period. 

Eligibility:  Selected key members of the senior management group and other key managers of the Bank (“Participants”) as determined by the Zions Bancorporation Board of Directors (the “Board”) or its Compensation Committee (the “Committee”), or by the Company’s CEO, under authority delegated by the Committee. 

Effective Date: January 1, 2015 through December 31, 2017 (the “Award Period”) with performance measured over the time period from January 1, 2015 to December 31, 2015 (the “Performance Period”)

Payment of Awards: Subject to limitations enumerated in the “Other Administrative Provisions” section of the Plan, the incentive awards, if any, earned under this Plan will be paid within ninety days after the end of the Award Period. 

Plan Administrator: The Plan is to be governed and interpreted by the Committee.

How the Plan Works:  

		
	1)
	Establishment of Award Fund

An Award Fund will be established, the size of which will be determined by the Committee. The Committee will use informed judgment to determine and assign a quartile rating to the Company’s overall performance, based upon its performance as measured by the quartile ratings it achieves for each of seven performance categories. The Committee will further determine, within that quartile rating, whether performance was in the “low,” “medium,” or “high” range within that quartile, each of which is assigned a per-unit award value (refer to Appendix II). 
 
The seven performance categories include: 
 
		
	1.
	Adjusted Pre-tax Pre-Provision Earnings (“PTPP Earnings”); 

		
	2.
	Net Charge-Offs; 

		
	3.
	Adjusted Total Direct Expense; 

		
	4.
	Adjusted Non-Interest Income; 

		
	5.
	Strategic Progress; 

		
	6.
	Zions Bancorporation’s Return on Average Assets (relative to Zions Bancorporation peer companies); and, 

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2015 – 2017 Value Sharing Plan 
Page 2

		
	7.
	Zions Bancorporation’s Tier 1 Common Ratio (relative to Zions Bancorporation peer companies). 
 

These metrics are more fully defined in Section 5 and Appendix I.

		
	2)
	Participation Units

Each Participant designated by the Committee shall be awarded a specific number of Participation Units (“Units”), representing a pro-rata claim, in proportion to the total number of authorized Units, on any Award Fund established under this Plan during the Award Period.

		
	3)
	Grant of Phantom Restricted Common Stock Units:

The assigned per-unit value will be multiplied by the total number of units awarded to each Participant to determine their individual nominal award values. Shortly following the conclusion of the performance period, each Participant will be “provisionally” granted phantom restricted stock units (“RSUs”) of Zions Bancorporation, based on each Participant’s initial nominal award value divided by the average closing price for Zions Bancorporation’s common shares for each trading day during January, 2016.

		
	4)
	Final Cash Settlement of the Phantom Restricted Common Stock Units:

The phantom RSUs granted under this plan are subject to potential reductions of all or a portion of the phantom RSUs, upon the occurrence of certain dramatic events at the sole discretion of the Committee. Dramatic events would include (but, not be limited to) the Company or Bank experiencing significant stress due to severe deterioration in asset quality, earnings, fraud, malfeasance, material errors or reputational harm during the 24 month deferral period running from January 1, 2016 to December 31, 2017. 
 
The value of the phantom restricted stock units, if any, will be settled in cash during the first quarter of 2017 based on the average closing price of Zions Bancorporation common stock for each trading day during January 2018.

		
	5)
	Definitions of Factors:

A)Pre-tax Pre-provision (PTPP) Earnings is defined as the total of the following items (but, not limited to) during the Performance Period:

Net interest income plus non-interest income, less non-interest operating expenses 
adjusted for the following items: 

		
	▪
	Equity securities gains (losses)

		
	▪
	Fixed income securities gains (losses)

		
	▪
	Net impairment losses on investment securities

		
	▪
	Debt extinguishment costs

		
	▪
	Income and expense associated with FDIC supported loan portfolios

		
	▪
	Fair value and nonhedge derivative income (losses)

		
	▪
	Provision for unfunded lending commitments

2015 – 2017 Value Sharing Plan 
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Plus or (minus), 

Equitable adjustments, as follows:
		
	•
	any adjustment deemed necessary by the Committee to normalize PTPP Earnings as a result of unusual and extraordinary changes in internal cost or income allocations during the Performance Period resulting from reclassifications or changes in allocation methodologies which produce material changes in costs or income which are not offset by a corresponding change in income or costs within the Company; 

		
	•
	any other adjustments, which, in the sole discretion of the Committee, are required to equitably reflect operating performance during the Performance Period.  

		
	B)
	Net Charge Offs will be calculated using the net charge-off amounts reflected in the Bank’s regulatory call reports for the relevant periods. 

C)Adjusted Total Direct Expense     Total direct expense adjusted for the following:

		
	•
	Income and expense associated with FDIC supported loan portfolios

		
	•
	Provision for unfunded lending commitments

		
	•
	Debt extinguishment costs

     
D)Adjusted Non-Interest Income:  Non-Interest Income adjusted for the following: 

		
	•
	Fair value and nonhedge derivative income (losses)

		
	•
	Equity securities gains (losses)

		
	•
	Fixed income securities gains (losses)

		
	•
	Net impairment losses on investment securities

      
E)Strategic Progress:  
		
	•
	Produce solid risk management outcomes and continually enhance risk management practices and maintain regulatory relationships.

		
	•
	Continue multi-year improvement in return on equity results by achieving 2015 financial plan with focus on increasing PTPP, increasing fee income and executing effectively on cost reduction initiative.

		
	•
	Progress on the implementation of the “Big 5” projects with specific focus on the realization of related cost savings/efficiencies.

		
	•
	Achieve progress on optimizing all of our core businesses and product segments with sensitivity to those elements most negatively impacted by the various Federal Reserve stress tests.      

F)Return on Average Assets:  Zions Bancorporation Return on Average Assets during the performance period measured relative to the same metric for Zions Bancorporation peer companies during the same time period
          
G)Tier 1 Common Ratio:  Zions Bancorporation Tier 1 Common Ratio during the performance period measured relative to the same metric for Zions Bancorporation peer companies during the same time period 

2015 – 2017 Value Sharing Plan 
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6)    Other Administrative Provisions

		
	(1)
	This is a discretionary Plan governed and interpreted by the Committee, whose decisions shall be final. The intent of the Plan is to fairly reward Participants for increasing shareholder value. If any adjustments need to be made to allow this Plan to accomplish its purpose, the Committee in its sole discretion can make those adjustments.

		
	(2)
	The Committee may, at its sole discretion, alter the terms of the Plan at any time during an Award Period.

		
	(3)
	Participants will not vest in any benefits available under the Plan until any payments hereunder are made after the conclusion of the Award Period. Dividends will not be paid on phantom RSUs.

		
	(4)
	A Participant must be employed by the Company or one of its affiliates at the time payment is made in order to receive a payout of Participant’s Unit award and if Participant ceases to be so employed at any time Participant’s Unit award shall automatically be forfeited and cancelled without consideration and without further action by Participant; provided, however, that 

		
	(i)
	In the event of Participant’s termination by the Company or an affiliate or normal or early retirement, management or, if Participant is a member of the Executive Management Committee (or “EMC”), the Committee shall have the discretion to make a “Pro Rata Adjustment” to Participant’s Unit award, provided further that notwithstanding the foregoing any such adjusted Unit award shall automatically be forfeited and cancelled without consideration and without further action by Participant immediately upon (x) Participant’s commencement of, or agreement to commence, employment with or provision of services (whether as a director, consultant or otherwise) to another company that is in the financial services industry unless such employment or provision of services is specifically approved by management or the Committee, as the case may be, (y) Participant making any derogatory or damaging statements (verbally, in writing or otherwise) about the Company or any of its affiliates, the management or the board of directors of the Company or any affiliate, the products, services or business condition of the Company or any affiliate in any public way to anyone who could make those statements public or to customers of, vendors to or counterparties of the Company or any affiliate, or (z) Participant violating any duty of confidentiality owed to the Company or its affiliates under the policies or procedures of the Company and its affiliates, including the Company’s employee handbook, code of conduct and similar materials, or under federal or state law, or Participant misappropriating or misusing any proprietary information or assets of the Company and its affiliates, including intellectual property rights; and 

		
	(ii)
	In the event of Participant’s “Termination of Employment” by reason of Participant’s death or “Disability”, a Pro Rata Adjustment shall be made to Participant’s unit award.  

In the event a Participant’s Unit award is subjected to a “Pro Rata Adjustment”, Participant (or his/her estate) shall be entitled to receive a pro-rata incentive payout of 

2015 – 2017 Value Sharing Plan 
Page 5

his or her Unit award at the conclusion of the Award Period. This award will be based upon the Participant’s calculated award for the full Award Period as approved by the Committee and will be prorated for the number of full calendar quarters within the Award Period the Participant was engaged as an officer of the Company or its affiliates prior to Termination of Employment in the circumstances described above. For purposes of this Plan, the terms “Termination of Employment,” “Retirement” and “Disability” shall have the meanings assigned to them in the form of Standard Restricted Stock Unit Award Agreement used by the Company in making annual equity awards to employees in May 2014.

		
	(5)
	The Company shall retain the right to withhold payment of incentives otherwise earned under this Plan to any individual Participant or to all Participants as a group in the event of a significant deterioration in the Company’s or the Bank’s financial condition, if so required by regulatory authorities, or for any other reason considered valid by the Board in its sole discretion including but not limited to those set out in the Company’s Incentive Compensation Clawback Policy as in effect at any time during or subsequent to the Award Period. 

		
	(6)
	The terms of this plan are subject to and limited by applicable law, including, without limitation, the Sarbanes Oxley Act of 2002, the Dodd-Frank Act, and regulations or guidance issued by the Board of Governors of the Federal Reserve System or other regulatory agencies.

		
	(7)
	Designation as a Participant in the Plan does not create a contract of employment for any specified time, nor shall such act to alter or amend the Company’s “at-will” policy of employment. 

		
	(8)
	In the event a Participant transfers within Zions Bancorporation during the Award Period, management or, if Participant is a member of the EMC, the Committee shall have the discretion to maintain such Participant’s full Unit award under this plan, to divide and allocate such full award between Zions entities with which Participant has been employed during the Award Period or to transfer and allocate such award to a single other Zions entity with which Participant has been employed during the Award Period (and to make corresponding adjustments to Award Funds).

 
		
	(9)
	In the event of a change in control of the Company (as defined in the Company’s Change in Control Agreements), the Plan will be terminated and payments shall be made in accordance with the provisions of section 3 (b) of the Change in Control Agreements, provided that the reference in Section 3(b) to “average annual growth in Earnings per Share and the average Tangible Return on Equity” shall be deemed to refer to the award determination methodology set forth in this plan.

		
	(10)
	This document is intended to provide a guideline for the creation and distribution of incentive compensation. Nothing herein creates a contractual obligation binding on the Board or the Committee, and no Participant shall have any legal rights with respect to an Award until such Award is distributed.

2015 – 2017 Value Sharing Plan 
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APPENDIX I

The following is the VSP Scorecard applicable over the Performance Period.

	
						
	Performance Measures
(adjusted for selected items)
	Performance Quartiles

	Below Threshold
	Quartile 4
	Quartile 3
	Quartile 2
	Quartile 1

	PTPP
	Less than $602.6M
(Less than 93.0% of plan)
	$602.6M to $625.2M
(93.0% to 96.4% of plan)
	$625.3M to $647.9M 
(96.5% to 99.9% of plan)
	$648.0M to $670.7M
(100.0% to 103.4% of plan)
	$670.7M to $693.4M
(103.5% to 107.0% of plan)

	Net Charge-Offs
	More than 75bp
	51 to 75bp
	36 to 50bp
	20 to 35bp
	Less than 20bp

	Total Direct Expense
	More than $1,616.1M
(More than 103.0% of plan)
	$1,616.1M to $1,600.5M
(103.0% to 102.1% of plan)
	$1,600.4M to $1,569.1M  (102.0% to 100.1% of plan)
	$1,569.0M to $1,537.7M  (100.0% to 98.1% of plan)
	$1,537.6M to $1,521.9M  (98.0% to 97.0% of plan)

	Total Noninterest Income
	Less than $493.4M
(Less than 96.0% of plan)
	$493.4M to $503.6M 
(96.0% to 97.9% of plan)
	$503.7M to $513.9M
(98.0% to +99.9% of plan)
	$514.0M to $524.2M
(100.0% to 101.9% of plan)
	$524.3M to $534.6M
(102.0% to 104.0% of plan)

	Strategic Progress1
	Unsatisfactory
	< than Expected
	Expected
	> than Expected
	Exemplary

	Return on Average Assets (vs. peer organizations)
	Lowest 
	 
	 
	 
	Highest

	ß
	 
	 
	 
	à

	 
	 
	 

	Tier 1 Common Capital Ratio
(vs. peer organizations)
	Lowest 
	

	 
	 
	Highest

	ß
	 
	 
	 
	à

	 
	 
	 

	 
	 
	 
	OVERALL "QUARTILE" RATING
(Quartile 1, 2, 3, or 4)
	 

1  Zions Bancorporation Strategic Progress Goals
a) Produce solid risk management outcomes and continually enhance risk management practices and maintain regulatory relationships
b) Continue multi-year improvement in return on equity results by achieving 2015 financial plan with focus on increasing PTPP, increasing fee income and executing effectively on the cost reduction initiative
c) Progress on the implementation of the "Big 5" projects with specific focus on the realization of related cost savings/efficiencies.
d) Achieve progress on optimizing all of our core businesses and product segments with sensitivity to those elements most negatively impacted by the various Federal Reserve stress tests

Note: M=millions

2015 – 2017 Value Sharing Plan 
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APPENDIX II

The following is the VSP funding determination chart to be used by the Board Compensation Committee

	
									
	 
	 
	Performance Quartiles

	 
	Below Threshold
	Quartile 4
	Quartile 3
	Quartile 2
	Quartile 1

	Funding Pool Ranges
	Per Unit Value
	$
	0
	

	High = $ 0.200/unit
Med = $ 0.100/unit
Low = $ 0.000/unit
	High = $ 0.550/unit
Med = $ 0.425/unit
Low = $ 0.300/unit
	High = $ 0.900/unit
Med = $ 0.775/unit
Low = $ 0.650/unit
	High = $ 1.200/unit
Med = $ 1.100/unit
Low = $ 1.000/unit

	 
	 
	 
	VSP FUNDING DETERMINATION
(expressed as per unit value)Amended Annual Bonus Plan EX 10.1

EXHIBIT 10.1
LGI HOMES, INC.
ANNUAL BONUS PLAN
(amended 3/6/3015)

ARTICLE 1
ESTABLISHMENT AND PURPOSE

1.1    Purpose.  LGI Homes, Inc., a Delaware corporation (the "Company") hereby establishes this Annual Bonus Plan (the "Plan") as a sub-plan to the Company’s Equity Incentive Plan.  The Plan is intended to increase stockholder value and the success of the Company by motivating key executives to perform to the best of their abilities and to achieve the objectives set forth by the Compensation Committee of the Board of Directors (the "Committee").  The Plan and any payouts hereunder are intended to qualify as performance-based compensation under Section 162(m) of the Code.

1.2    Sub-Plan to the Equity Incentive Plan.  In accordance with Article 4 of the Equity Incentive Plan, the Plan shall be a sub-plan thereunder and is therefore subject to all the terms of the Equity Incentive Plan.

1.3    Effective Date.  The Plan was adopted by the Board on August 23, 2013, to be effective immediately prior to the effectiveness of the Company’s Form S-1 Registration Statement.

ARTICLE 2
DEFINITIONS

Except as otherwise defined under the Equity Incentive Plan, the following terms shall have the following meanings (unless the context clearly requires a different meaning):

2.1    "Actual Award" means the actual award (if any) payable to a Participant for the Performance Period.  The Actual Award is determined by the Payout Formula for the Performance Period, subject to the Committee’s authority under Section 3.5 to reduce the award otherwise determined by the Payout Formula.

2.2    "Base Salary" means as to any Performance Period, 100% of the Participant’s salary he or she earned for the applicable Performance Period.  Such Base Salary shall be determined prior to any deductions for taxes or benefits and prior to any deferrals of compensation pursuant to a Company-sponsored employee benefit plan.

2.3     "Board" means the Board of Directors of the Company.

2.4    "Code" means the Internal Revenue Code of 1986, as amended.

2.5    "Committee" means the Compensation Committee of the Board of Directors  If a Committee member shall fail to qualify as an "outside director" when administering the Plan with respect to a Target Award, such failure shall not invalidate any such Target Award granted by the Committee if such Target Award is otherwise validly granted.

2.6    "Company" means LGI Homes, Inc., a Delaware corporation, and its successors.

2.7    "Determination Date" means as to any Performance Period, the later of (i) the first day of the Performance Period, or (ii) the latest date possible which will not jeopardize the qualification of the payment as performance-based compensation under Section 162(m) of the Code.

2.8    "Effective Date" means immediately prior to the effectiveness of the Company’s Form S-1 Registration Statement.

2.9    "Equity Incentive Plan" means the LGI Homes, Inc. 2013 Equity Incentive Plan.  The Plan shall be a sub-plan to the Equity Incentive Plan.

2.10    "Maximum Award" means as to any Participant for any Performance Period, two million dollars ($2,000,000.00).  The Maximum Award is the maximum amount which may be paid to a Participant for any Performance Period.

2.11    "Participant" means as to any Performance Period, an officer or other employee of the Company who has been selected by the Committee to participate in the Plan for the applicable Performance Period.

2.12    "Payout Formula" means as to any Performance Period, the formula or payout matrix established by the Committee pursuant to Section 3.4, in order to determine the Actual Awards (if any) to be paid to Participants.  The formula or matrix may differ from Participant to Participant.

2.13    "Performance Goal" means as defined in the Equity Incentive Plan.

2.14    "Performance Period" means any calendar year beginning on or after January 1, 2013, except that for the partial year that includes the Effective Date, the Performance Period shall be the stub year.

2.15    "Plan" means this Annual Bonus Plan, a sub-plan to the Equity Incentive Plan.

2.16    "Target Award" means the target award payable under the Plan to a Participant for the Performance Period, expressed as a percentage of his or her Base Salary or an amount, as determined by the Committee in accordance with Section 3.3.

ARTICLE 3
SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS

3.1    Selection of Participants.  On or prior to the Determination Date, the Committee, in its sole discretion, shall select the employees of the Company who shall be Participants for the Performance Period.  In selecting Participants, the Committee shall choose employees who are likely to have a significant impact on the performance of the Company.  Participation in the Plan is in the sole discretion of the Committee and on a Performance Period by Performance Period basis.  Accordingly, an employee who is a Participant for a given Performance Period in no way is guaranteed or assured of being selected as a Participant for any subsequent Performance Period.

3.2    Determination of Performance Goals.  On or prior to the Determination Date, the Committee, in its sole discretion, shall establish the Performance Goals for each Participant for the Performance Period.  Such Performance Goals shall be set forth in writing.

3.3    Determination of Target Awards.  On or prior to the Determination Date, the Committee shall establish a Target Award for each Participant.  Each Participant’s Target Award shall be determined by the Committee in its sole discretion, and each Target Award shall be set forth in writing.

3.4    Determination of Payout Formula.  On or prior to the Determination Date, the Committee, in its sole discretion, shall establish a Payout Formula for purposes of determining the Actual Award (if any) 

payable to each Participant.  Each Payout Formula shall (i) be in writing, (ii) be based on a comparison of actual performance to the Performance Goals, (iii) provide for the payment of a Participant’s Target Award if the Performance Goals for the Performance Period are achieved, and (iv) provide for an Actual Award greater than or less than the Participant's Target Award, depending upon the extent to which actual performance exceeds or falls below the Performance Goals and the terms of the Payout Formula.  Notwithstanding the preceding, no Participant’s Actual Award under the Plan may exceed the Maximum Award.

3.5    Determination of Actual Awards.  As soon as administratively practicable after the end of each Performance Period, the Committee shall certify in writing the extent to which the Performance Goals applicable to each Participant for the Performance Period were achieved or exceeded.  The Actual Award for each Participant shall be determined by applying the Payout Formula to the level of actual performance which has been certified by the Committee.  Notwithstanding any contrary provision of the Plan: (i) the Committee, in its sole discretion, may eliminate or reduce the Actual Award payable to any Participant that would otherwise be payable under the Payout Formula; and (ii) if a Participant’s employment with the Company is terminated by the Company for a reason other than Cause prior to the date the Actual Award for the Performance Period is paid, the Committee shall reduce his or her Actual Award proportionately based on the date of termination (and subject to further reduction or elimination under clause (i) of this sentence).  

ARTICLE 4
PAYMENT OF AWARDS

4.1    Right to Receive Payment.  Each Actual Award that may become payable under the Plan shall be paid solely from the general assets of the Company.  Nothing in the Plan shall be construed to create a trust or security interest, or to establish or evidence any Participant’s claim of any right other than as an unfunded, unsecured general creditor with respect to any payment to which he or she may be entitled.

4.2    Timing of Payment.  Payment of each Actual Award shall be made within ten (10) days from conclusion of the audit related to the applicable Performance Period; provided, however, that payment of an Actual Award shall be made no later than March 15 of the calendar year following the calendar year in which such Actual Award vested or the risk of forfeiture lapsed. Notwithstanding the foregoing, no payment of an Actual Award shall be made prior to the Committee’s certification set forth in Section 3.5 of the Plan.

4.3    Form of Payment.  Actual Awards shall be paid in cash (or its equivalent) in a single lump sum.  However, the Committee, in its sole discretion, may declare any Actual Award, in whole or in part, payable in the form of restricted stock units (“RSUs) or  stock bonus granted under the Equity Incentive Plan or successor equity incentive plan.  The number of RSUs or shares granted shall be determined by dividing the  amount of the Actual Award by the Fair Market Value of a share of Company common stock on the date that the cash payment otherwise would have been made.  For this purpose, the term Fair Market Value shall be as defined in the Equity Incentive Plan or successor equity incentive plan.

4.4    Payment in the Event of Death.  If a Participant dies prior to the payment of an Actual Award earned by him or her for a Performance Period, the Actual Award shall be paid to the Participant’s beneficiary.  If a Participant fails to designate a beneficiary or if each person designated as a beneficiary predeceases the Participant or dies prior to distribution of the Participant’s benefits, then the Committee shall direct the distribution of such benefits to the Participant’s estate.

ARTICLE 5
ADMINISTRATION

5.1    Committee is the Administrator.  The Plan shall be administered by the Committee.

5.2    Committee Authority.  The Committee shall have all discretion and authority necessary or appropriate to administer the Plan and to interpret the provisions of the Plan, consistent with the qualification of the Plan as performance-based compensation under Section 162(m) of the Code.  Any determination, decision or action of the Committee in connection with the construction, interpretation, administration or application of the Plan shall be final, conclusive, and binding upon all persons, and shall be given the maximum deference permitted by law.

5.3    Tax Withholding.  The Company shall withhold all applicable taxes from any payment, including any non-U.S., federal, state, and local taxes.  In the case of payment in the form of RSUs or a stock bonus pursuant to Section 4.3, the granting and vesting of such stock bonus shall be subject to Section 19(c) (Conditions Upon Issuance of Shares - Taxes) of the Equity Incentive Plan, or such comparable provisions of any successor plan regarding the withholding of taxes.

ARTICLE 6
GENERAL PROVISIONS

6.1    Nonassignability.  A Participant shall have no right to assign or transfer any interest under the Plan.

6.2    No Effect on Employment; Coordination with Employment Agreements.  The establishment and subsequent operation of the Plan, including eligibility as a Participant, shall not be construed as conferring any legal or other rights upon any Participant for the continuation of his or her employment for any Performance Period or any other period.  Employment with the Company is on an at-will basis only.  Except as may be provided in an employment contract with the Participant, the Company expressly reserves the right, which may be exercised at any time during a Performance Period, to terminate any individual’s employment without cause and without regard to the effect such termination might have upon the Participant’s receipt of an Actual Award under the Plan.  In the event of any inconsistency between the terms of the Plan and the terms of any employment agreement between the Company and the Participant (whether now in effect or later adopted or amended), the terms of the Plan shall prevail; further, whether and to the extent any inconsistency exists shall be interpreted in the sole discretion of the Committee.  

6.3    Section 409A of the Code.  The Plan, including any future amendments thereto which do not expressly amend this Section 6.3, is designed, and shall be administered and operated, in the good faith determination of the Board or the Committee, to comply with, or be exempt from, Section 409A of the Code.  Although the Company intends to administer the Plan so that it complies with the requirements of Section 409A of the Code, the Company does not warrant that any Actual Award under the Plan will in fact comply with Section 409A or qualify for favorable tax treatment under any other provision of federal, state, local or foreign law.  The Company shall not be liable to any Participant for any tax, interest or penalties the Participant might owe as a result of its participation in the Plan.

6.4    Savings Clause.  The Plan is intended to comply in all respects with applicable laws and regulations.  In case any one or more of the provisions of the  Plan shall be held invalid, illegal or unenforceable in any respect under applicable law or regulation, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal or unenforceable provision shall be deemed null and void; provided, however, to the extent permissible by law, any provision which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit the Plan to be construed in compliance with all applicable laws so as to foster the intent of the Plan.

6.5    Non-Alienation of Benefits.  Except to the extent set forth herein as to the rights of the estates or beneficiaries of employees to receive payments, Actual Awards under the Plan are non-assignable and non-transferable and are not subject to anticipation,  adjustment,  alienation, encumbrance, garnishment, attachment or levy of any kind.

ARTICLE 7
AMENDMENT AND TERMINATION

The Board or a duly authorized committee thereof may amend or terminate the Plan at any time and for any reason.

*     *     *     *     *

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