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knlex10320180331

                                                                              Exhibit 10.3                       PERFORMANCE-BASED STOCK UNIT AGREEMENT                                        UNDER THE                                        KNOLL INC.                             _________ STOCK INCENTIVE PLAN                                                      THIS AGREEMENT is made effective as of the ______ day of __________, 2018 (the “Grant Date”),  between Knoll, Inc., a Delaware corporation (the “Company”), and ________________________ (the “Grantee”).   Except as otherwise specifically provided herein, capitalized terms used herein shall have the meanings attributed  thereto in the Knoll, Inc. ______ Stock Incentive Plan (the “Plan”).  All references to employment and termination  of employment herein shall also relate to any consulting relationship, directorship or similar relationship between  the Company or a Subsidiary and the Grantee, and the termination thereof.                 WHEREAS, pursuant to the Plan, the Company desires to grant the Grantee a Performance Award in the  form of Stock Units, on the terms and conditions set forth herein.                 NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and  valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as  follows:          1.     Grant of Stock Units.  The Company hereby grants to the Grantee ______________ Stock Units  (the “Award”) on the terms and conditions set forth herein.  The Grantee expressly acknowledges receipt of a copy  of the Plan and agrees to be bound by all of the provisions of this Agreement and the Plan.           2.    Non-Transferability.  The Grantee may not sell, transfer, pledge, or otherwise encumber or  dispose of this Award.            3.     Definitions; Vesting; Forfeiture.                 (a)    Definitions.  Capitalized terms not defined in this Agreement shall have the meanings  ascribed to them in the Plan.  For purposes of this Agreement, the following capitalized terms shall have the  following meanings:                        (i)   “Cause” means “Cause” as defined in any employment agreement between the        Grantee and the Company or any Subsidiary or, in the absence of any such definition, (A) the substantial        and continued failure of the Grantee to perform material duties reasonably required of the Grantee by the        Company or any Subsidiary or the Company’s Board of Directors (the “Board”), as applicable (it being        understood that a failure to attain performance objectives shall not in and of itself be treated as a failure to        perform material duties for purpose of this clause (A)) for a period of not less than thirty (30) consecutive        days, provided notice in writing from the Company or the Board, as applicable, is given to the Grantee        specifying in reasonable detail the circumstances constituting such substantial and continued failure, (B)        conduct by the Grantee substantially disloyal to the Company which conduct is identified in reasonable        detail by notice in writing from the Company or the Board, as applicable, and which conduct, if susceptible        of cure, is not cured by the Grantee within 30 days of the Grantee’s receipt of such notice, (C) any act of        fraud, embezzlement or misappropriation by the Grantee against the Company or any Subsidiary, (D) the        conviction of the Grantee of a felony (or the equivalent under applicable law) or plea by the Grantee of        guilty or “nolo contendre” to the charge of a felony (or the equivalent under applicable law), or (E) in the        case of a Grantee who is a director of the Company, removal of the Grantee from the Board for cause under        applicable law.  The definition of “Cause” herein shall not modify, amend or otherwise affect the definition        of “Cause” in any employment or other agreement with the Company or any Subsidiary.                       (ii)   “Concentrated Peer Group” means a group of publicly-traded peer companies        approved by the Committee.  If the common stock of any of these companies ceases to be publicly traded at        any time during the Performance Period, such company shall be deleted from the Concentrated Peer Group        and shall not be taken into account when determining TSR for the Concentrated Peer Group.                                                1    

 

                                                                        Exhibit 10.3                 (iii) “Disability” means “Disability” as defined in any employment agreement  between the Grantee and the Company or any Subsidiary or, in the absence of any such definition, any  physical or mental disability or infirmity that prevents the performance of the Grantee’s duties with the  Company or Subsidiary for a period of (i) ninety (90) consecutive days or (ii) one hundred eighty (180)  non-consecutive days during any twelve (12) month period.  The definition of “Disability” herein shall not  modify, amend or otherwise affect the definition of “Disability” in any employment or other agreement  with the Company or any Subsidiary.                 (iv)  “Dividends Paid” means dividends declared (including extraordinary dividends),  if any, during the TSR Performance Period.  Cash equivalents will be valued as of the date(s) on which the  dividend(s) were declared during the TSR Performance Period. Stock dividends will be valued at the fair  market value measured at the end of the TSR Performance Period.                   (v)   “EBITDA” means, for any fiscal year, the Company’s earnings before interest,  taxes, depreciation and amortization.  The determination of EBITDA shall be made from the Company’s  books and records.  Such books and records shall be maintained in accordance with U.S. generally accepted   accounting principles and the Company’s internal accounting policies and procedures consistently applied   over each of the fiscal years during the EBITDA Performance Period.  Notwithstanding the foregoing, the   Committee will determine the extent to which extraordinary and one-time items of income and expense,   such as asset impairment charges, gains or losses on sales of fixed assets, transactions outside of the   ordinary course of business (acquisition costs, bank refinancings, IPO/secondary stock offerings, etc.), and   restructuring costs, in each case, shall be excluded from the determination of EBITDA for the fiscal year in   which the extraordinary or one-time item of income or expense occurs.  The Company’s finance   department shall make an initial determination of EBITDA for each fiscal year during the EBITDA   Performance Period.  The Company’s auditors shall review the finance department’s determinations.  The   Committee shall take into account the finance department’s determination and the Company’s auditors’   review and make the final determination of EBITDA as soon as practicable after the end of the EBITDA   Performance Period.  Notwithstanding anything to the contrary set forth herein, all determinations and   interpretations made by the Committee shall be binding and conclusive.                  (vi)   “Material Acquisition or Divestiture” means any acquisition or divestiture or  other business combination not involving a Change in Control that is deemed to result in an increase or   decrease in annual EBITDA exceeding $_____________ USD (the “Materiality Threshold”).  An  acquisition (or business combination) will be deemed to result in an increase in annual EBITDA exceeding  the Materiality Threshold if the acquired business’s EBITDA measured over the most recently completed  fiscal year immediately preceding the date of acquisition (or business combination) exceeded   $___________ USD.  A divestiture will be deemed to result in a decrease in annual EBITDA exceeding the   Materiality Threshold if the divested business’ EBITDA measured over the most recently completed fiscal   year immediately preceding the divestiture exceeded $_____________ USD.                 (vii)   “EBITDA Target I” means $____________ USD; provided, however, that if a  Material Acquisition or Divestiture occurs, other than the divestiture of a business that generated an  operating loss in the twelve (12) months preceding such divestiture, the EBITDA Target shall be adjusted  to account for the addition of EBITDA, or the decrease of EBITDA, resulting from the transaction.  For  example, the acquisition of an entity that generated EBITDA of $____________ USD in the 12 months  preceding the acquisition shall cause an upward adjustment in the EBITDA target by $__________ USD  for each full calendar year remaining in the EBITDA Performance Period (if any), plus an amount equal to  the product of $___________ multiplied by a fraction, the numerator of which is the number of full months  remaining in the calendar year in which the acquisition occurred and the denominator of which is twelve  (12).                 (viii)  “EBITDA Target II” means $_________ USD; provided, however, that if a  Material Acquisition or Divestiture occurs, other than the divestiture of a business that generated an  operating loss in the twelve (12) months preceding such divestiture, the EBITDA Target shall be adjusted  to account for the addition of EBITDA, or the decrease of EBITDA, resulting from the transaction.  For  example, the acquisition of an entity that generated EBITDA of $  USD in the 12 months                                        2                  

 

                                                                        Exhibit 10.3   preceding the acquisition shall cause an upward adjustment in the EBITDA target by $__________ USD  for each full calendar year remaining in the EBITDA Performance Period (if any), plus an amount equal to  the product of $________  multiplied by a fraction, the numerator of which is the number of full months  remaining in the calendar year in which the acquisition occurred and the denominator of which is twelve  (12).                 (ix)  “EBITDA Performance Period” means the three calendar-year period  commencing on January 1, 2018 and ending on December 31, 2020.                 (x)   “Performance Period” means the EBITDA Performance Period and the TSR  Performance Period, as applicable.                  (xi)   “Pro Rata Fraction” means a fraction, the numerator of which is the number of  full months from the Grant Date through the date of a Qualified Termination and the denominator of which  is thirty-six (36).                  (xii)   “Qualified Termination” means a termination of employment with the  Company and all Subsidiaries during the Performance Period (A) by the Company or a Subsidiary on  account of the Grantee’s Disability, (B) due to the Grantee’s death, or (C) that constitutes a “Without Cause  Termination.”  For the avoidance of doubt, the voluntary resignation of a director or the decision by a   director not to stand for re-election shall not be a Qualified Termination.                 (xiii) “Stretch Target” means $______________ USD; provided, however, that if a  Material Acquisition or Divestiture occurs, other than the divestiture of a business that generated an  operating loss in the twelve (12) months preceding such divestiture, the Stretch Target shall be adjusted to  account for the addition of EBITDA, or the decrease of EBITDA, resulting from the transaction,  For  example, the acquisition of an entity that generated EBITDA of $________ USD in the 12 months  preceding the acquisition shall cause an upward adjustment in the Stretch Target by $___________ USD  for each full calendar year remaining in the EBITDA Performance Period (if any), plus an amount equal to  the product of $___________ multiplied by a fraction, the numerator of which is the number of full months  remaining in the calendar year in which the acquisition occurred and the denominator of which is twelve  (12).                 (xiv)  “Subsidiary” shall mean each entity with respect to which the Company owns,  directly or indirectly, greater than fifty percent (50%) of the capital stock.                 (xv)   “TSR” means the cumulative percentage change in stock price over the TSR  Performance Period, with Dividends Paid during the TSR Performance Period being added to the stock  price at the end of the TSR Performance Period.  For purposes of this Agreement, the price of an entity’s  stock at the beginning of the TSR Performance Period will be the average closing stock price over the  trading days in the twenty (20) days immediately preceding the start of the TSR Performance Period, and  the stock price at the end of the TSR Performance Period will be the average closing stock price over the  trading days in the last twenty (20) days of the TSR Performance Period.  In the event of a spin off, split up  or similar transaction involving the business of the Company or a company in the Concentrated Peer  Group, the shares of the entity of such transaction will be treated as Dividends Paid with respect to the  Company or the company in the Concentrated Peer Group, as applicable.                    (xvi) “TSR Performance Period” means the three-year period commencing on the  Grant Date and ending on the third (3rd) anniversary of the Grant Date.                  (xvii) “Vesting Date” means the date the Committee certifies the EBITDA and TSR  results or, if earlier, the date vesting occurs pursuant to Section 3(c) or Section 3(d)(iii).                 (xviii)  “Without Cause Termination” means a termination of employment by the  Company or a Subsidiary without Cause.  The failure of a director to become re-elected that is not the                                        3                  

 

                                                                              Exhibit 10.3         result of a voluntary decision not to stand for re-election shall be deemed to be a Without Cause        Termination.                (b)    Vesting.  Except as otherwise specifically provided in Sections 3(c) and 3(d) hereof, the  vesting of the Award is contingent upon the Grantee’s continuous employment with the Company or a Subsidiary  from the Grant Date through the Vesting Date.  Except as otherwise provided in Sections 3(c), and 3(d) hereof, the  Award shall vest as follows:                                      (i)    EBITDA Portion.  (I) Twenty five percent (25%) of the Award shall vest if        cumulative EBITDA over the EBITDA Performance Period equals or exceeds the EBITDA Target I, but is        less than the EBITDA Target II and (II) an additional twenty five percent (25%) of the Award shall vest if        cumulative EBITDA over the EBITDA Performance Period equals or exceeds the EBITDA Target II, and        (III) an additional twenty-five percent (25%) of the Award shall vest if the cumulative EBITDA over the        EBITDA Performance period equals or exceeds the Stretch Target; and                                             (ii)  Relative TSR Portion.  Fifty percent (50%) of the Award shall vest if the        Company’s TSR equals or exceeds the fiftieth (50th) percentile of the TSR of the Concentrated Peer Group         over the TSR Performance Period.                                            Except as otherwise provided in Sections 3(c) and 3(d), the Award shall be forfeited to         the extent it does not vest pursuant to this Section 3(b).  For the sake of clarity, up to 125% of the Award is         eligible to vest pursuant to this Section 3(b).                                     (c)    Accelerated Vesting on Termination of Employment After a Change in Control.   Notwithstanding anything herein or in the Plan to the contrary, if, during the Performance Period, the Grantee shall  cease to be employed by reason of a Without Cause Termination within twelve (12) months after a Change in  Control, one hundred percent (100%) of the Award shall vest immediately upon such Without Cause Termination  unless the Committee has previously certified EBITDA and TSR results and determined the vesting criteria were not  met.                   (d)    Prorated Vesting in connection with a Qualified Termination.  If, during the Performance  Period, the Grantee shall cease to be employed by the Company and all Subsidiaries by reason of a Qualified  Termination, a pro rata portion of the Award shall immediately vest as follows:                        (i)   If the Qualified Termination is a termination by the Company or a Subsidiary on        account of the Grantee’s Disability or due to the Grantee’s death, the number of Stock Units subject to the        Award that shall vest as a result of the Qualified Termination shall be determined by multiplying the total        number of Stock Units subject to the Award by the Pro Rata Fraction.                                              (ii)  If the Qualified Termination is a Without Cause Termination, the number of         Stock Units subject to the Award that shall vest as a result of the Qualified Termination shall be determined         by multiplying the number of Stock Units subject to the Award that vest based on actual performance over         the entire Performance Period by the Pro Rata Fraction.                        (iii)  The date of such pro rata vesting in the event of a Qualified Termination shall be         (A) if the Qualified Termination is a termination by the Company or a Subsidiary on account of the         Grantee’s Disability or due to the Grantee’s death, the date of such Qualified Termination, and (B) if the         Qualified Termination is a Without Cause Termination, the date vesting would have occurred pursuant to         Section 3(b).                 (e)    Forfeiture on Termination of Employment.  If the Grantee’s employment with the  Company and all Subsidiaries is terminated for any reason during the Performance Period, any Stock Units subject  to the Award that do not become vested pursuant to Sections 3(c) and 3(d) shall be immediately forfeited.          4.     Conversion of Stock Units and Issuance of Shares.  One share of Common Stock shall be  issuable for each Stock Unit subject to the Award that vests (the “Shares”).  The Shares shall be issued at or as soon                                              4    

 

                                                                              Exhibit 10.3   as practicable following the Vesting Date (but in no event later than March 15th of the calendar year following the  year in which the Vesting Date occurs).  In the case of the Grantee’s death, such Shares will be issued in the name of  the beneficiary designated in writing by the Grantee pursuant to a form of designation provided by the Company, to  the Grantee’s legatee or legatees, or to his or her personal representatives or distributes, as the case may be.  Any  fractional unit remaining after the Award is fully vested shall be discarded and shall not be converted into a  fractional Share.          5.     Rights as a Stockholder; Dividend Equivalent Right.                   (a)    Rights as Stockholder. Except as provided in Section 5(b) below, neither the Grantee nor  any person claiming under or through the Grantee will have any of the rights or privileges of a stockholder of the  Company in respect of any Shares deliverable hereunder unless and until certificates representing such Shares  (which may be in book entry form) will have been issued and recorded on the records of the Company or its transfer  agents or registrars.  After such issuance and recordation, the Grantee will have all the rights of a stockholder of the  Company with respect to voting such Shares and receipt of dividends and distributions on such Shares.                 (b)    Dividend Equivalent Rights. If the Company declares a cash dividend on its Common  Stock prior to the earlier of the date the Award is settled in full or terminates, the Grantee will receive a dividend  equivalent credit equal to such cash dividend for each outstanding Stock Unit subject to the Award.  Any such  dividend equivalent credits shall be accumulated and shall be subject to the same terms and conditions as are  applicable to the Stock Units to which the dividend equivalents relate, including, without limitation, the restrictions  on transfer, forfeiture, vesting and payment provisions contained in this Agreement.  For avoidance of doubt,  dividend equivalents shall be paid in cash only if and when the Stock Units to which they relate are converted into  Shares pursuant to Section 4.          6.     Binding Effect.  This Agreement shall be binding upon the heirs, executors, administrators and  successors of the parties hereto.          7.     Governing Law.  This Agreement shall be construed and interpreted in accordance with the  internal laws of the State of Delaware, without reference to the principles of conflicts of law thereof.  Each party  hereby irrevocably consents and submits to the personal jurisdiction of and venue in the United States District Court  - District of Delaware and the Delaware State courts, in any legal action, equitable suit or other proceeding arising  out of or related to this Agreement.           8.    Withholding.  The Company or any Subsidiary thereof shall have the power and right to deduct or  withhold, or require the Grantee to remit to the Company or any Subsidiary all federal, state, local or foreign taxes  required by law to be withheld by the Company or a Subsidiary with respect to this Award.  The Grantee may be  required to pay to the Company in cash or cash equivalents, either prior to or concurrent with the delivery of  certificates representing Stock Units that have vested, the amount required by law to be withheld by the Company.   The Company, in its sole discretion, may withhold from the number of Shares to be delivered upon vesting of the  Stock Units, such number of Shares having an aggregate fair market value equal to the amount of applicable federal,  state, local or foreign taxes to be withheld by the Company.  The Committee may establish other rules and  procedures to allow the Grantee to satisfy and to facilitate the required tax withholding from time to time.          9.     No Employment Rights.  The establishment of the Plan and the grant of Stock Units hereunder  shall not be construed as granting to the Grantee the right to remain in the employ of the Company or any  Subsidiary, nor shall the Plan or this Agreement be construed as limiting the right of the Company or any Subsidiary  to discharge the Grantee from employment at any time for any reason whatsoever, with or without Cause.          10.    No Liability.  No member of the Committee or the Board shall be personally liable by reason of  any contract or other instrument executed by such member or on his or her behalf in his or her capacity as a member  of the Committee or Board nor for any mistake of judgment made in good faith, and the Company shall indemnify  and hold harmless each member of the Committee, each member of the Board and each other employee, officer or  director of the Company to whom any duty or power relating to the administration or interpretation of the Plan or  this Agreement may be allocated or delegated, against any cost or expense (including counsel fees) or liability  (including any sum paid in settlement of a claim) arising out of any act or omission to act in connection with the                                              5    

 

                                                                              Exhibit 10.3   Plan or this Agreement unless arising out of such person’s own fraud or bad faith; provided, however, that approval  of the Board shall be required for the payment of any amount in settlement of a claim against any such person.  The  foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such  persons may be entitled under the Company’s certificate of incorporation or by-laws, as a matter of law, or  otherwise, or any power that the Company may have to indemnify them or hold them harmless.          11.    Headings.  Headings are for the convenience of the parties and are not deemed to be a part of this  Agreement.          12.    Plan and Compensation Recoupment Policy.  The terms of the Plan, a copy of which is  provided with this Agreement, and the Knoll, Inc. Compensation Recoupment Policy (the “Policy) which is made  part of this Agreement and incorporated herein by reference.  In the event of any conflict between the terms of the  Plan and the terms of this Agreement or the Policy, the terms of the Plan shall govern.           13.   Nature of Award.  In accepting the Award, the Grantee acknowledges and agrees that:                (a)    the Plan is established voluntarily by the Company, it is discretionary in nature, and it  may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the  Plan and this Agreement;                (b)    the Award is voluntary and occasional and does not create any contractual or other right  to receive future awards of Stock Units, or benefits in lieu of Stock Units, even if Stock Units have been awarded  repeatedly in the past;                (c)    all decisions with respect to future awards, if any, will be at the sole discretion of the  Company;                (d)    the Grantee’s participation in the Plan is voluntary;                (e)    the Award is not part of normal or expected compensation or salary for any purposes,  including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service  payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no  event should be considered as compensation for, or relating in any way to, past services for the Company or any  Subsidiary;                (f)    in the event that the Grantee is not an employee of the Company or any Subsidiary, the  Award and the Grantee’s participation in the Plan will not be interpreted to form an employment or service contract  or relationship with the Company or any Subsidiary;                (g)    the future value of the underlying Shares is unknown and cannot be predicted with  certainty;                 (h)    in consideration of the Award, no claim or entitlement to compensation or damages shall  arise from termination of the Award or diminution in value of the Award or Shares acquired upon vesting of the  Award, resulting from termination of the Grantee’s employment by the Company or any Subsidiary (for any reason  whatsoever and whether or not in breach of local labor laws) and in consideration of the grant of the Award, the  Grantee irrevocably releases the Company and any Subsidiary from any such claim that may arise; if,  notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by  signing this Agreement, the Grantee shall be deemed irrevocably to have waived his or her right to pursue or seek  remedy for any such claim or entitlement;                (i)    in the event of termination of the Grantee’s employment (whether or not in breach of  local labor laws), the Grantee’s right to receive Awards under the Plan and to vest in such Awards, if any, will  terminate effective as of the date that the Grantee is no longer providing services and will not be extended by any                                              6    

 

                                                                              Exhibit 10.3   notice period mandated under local law (e.g., providing services would not include a period of “garden leave” or  similar period pursuant to local law); furthermore, in the event of termination of the Grantee’s employment (whether  or not in breach of local labor laws), the Committee shall have the exclusive discretion to determine when the  Grantee is no longer providing services for purposes of this Award;                (j)    the Company is not providing any tax, legal or financial advice, nor is the Company  making any recommendations regarding the Grantee’s participation in the Plan or the Grantee’s acquisition or sale  of the underlying Shares; and                (k)    the Grantee is hereby advised to consult with the Grantee’s own personal tax, legal and  financial advisers regarding the Grantee’s participation in the Plan before taking any action related to the Plan.         14.    Data Privacy.                (a)    The Grantee hereby explicitly and unambiguously consents to the collection, use and  transfer, in electronic or other form, of the Grantee’s personal data as described in this Agreement by and among, as  applicable, the Grantee’s employer, the Company and any Subsidiary for the exclusive purpose of implementing,  administering and managing the Grantee’s participation in the Plan.                (b)    The Grantee understands that the Company and the Grantee’s employer may hold certain  personal information about the Grantee, including, but not limited to, the Grantee’s name, home address and  telephone number, date of birth, social insurance or other identification number, salary, nationality, job title, any  shares of Common Stock or directorships held in the Company, details of all Stock Units or any other entitlement to  shares of Common Stock awarded, canceled, vested, unvested or outstanding in the Grantee’s favor, for the  exclusive purpose of implementing, administering and managing the Plan (“Data”).                (c)    The Grantee understands that Data will be transferred to any third party assisting the  Company with the implementation, administration and management of the Plan.  The Grantee understands that the  recipients of the Data may be located in the Grantee’s country, or elsewhere, and that the recipients’ country may  have different data privacy laws and protections than the Grantee’s country.  The Grantee understands that the  Grantee may request a list with the names and addresses of any potential recipients of the Data by contacting the  Grantee’s local human resources representative.  The Grantee authorizes the Company and any other possible  recipients which may assist the Company (presently or in the future) with implementing, administering and  managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole  purpose of implementing, administering and managing the Grantee’s participation in the Plan.  The Grantee  understands that Data will be held only as long as is necessary to implement, administer and manage the Grantee’s  participation in the Plan.  The Grantee understands that the Grantee may, at any time, view Data, request additional  information about the storage and processing of Data, require any necessary amendments to Data or refuse or  withdraw the consents herein, in any case without cost, by contacting in writing the Grantee’s local human resources  representative.  The Grantee understands, however, that refusal or withdrawal of consent may affect the Grantee’s  ability to participate in the Plan.  For more information on the consequences of the Grantee’s refusal to consent or  withdrawal of consent, the Grantee understands that the Grantee may contact the Grantee’s local human resources  representative.         15.    Language.  If the Grantee has received this Agreement or any other document related to the Plan  translated into a language other than English and if the translated version is different than the English version, the  English version will control, unless otherwise prescribed by applicable law.         16.    Section 409A.  To the extent applicable, the provisions of this Agreement shall be interpreted and  construed in a manner intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended,  the regulations issued thereunder or any exception thereto (“Section 409A”).  Each payment under this Agreement is  intended to be exempt from Section 409A under the short-term deferral exception as specified in Treas. Reg. §  1.409A-l(b)(4).  Notwithstanding the foregoing, to the extent the Award (or any portion of the Award) is determined  to constitute deferred compensation and to be subject to Section 409A, (a) the Grantee shall only be deemed to have                                              7    

 

                                                                              Exhibit 10.3   terminated employment for purposes of the Award if the termination constitutes a “separation from service,” as that  term is used in Section 409A, and (b) to the extent any Shares would be issued with respect to any portion of the  Award due to the Grantee’s termination of employment, if the Grantee is deemed to be a “specified employee”  within the meaning of Section 409A(a)(2)(B)(i), no Shares shall be issued hereunder with respect to such portion of  the Award prior to the date that is six (6) months after the date of the Grantee’s termination of employment or, if  earlier, the Grantee’s date of death.  Immediately following any such six (6) month delay, all such delayed Shares  will be issued in a single lump sum.  The Company makes no representation that the Award will comply with  Section 409A and makes no undertaking to prevent Section 409A from applying to the Award or to mitigate its  effects on any deferrals or payments made in respect of the Award.        Effective as of the day and year first written above.                                                             KNOLL, INC.                                                              By:                                                       Name:                                                   Title:                                                             GRANTEE:                                                                   Name:                                                 8Exhibit

EXHIBIT 10.1

FULL WAIVER AND RELEASE OF ALL CLAIMS

This Full Waiver and Release of all Claims (“Agreement”) is made and entered into by and between Jeffrey Risenmay (“Employee”) and Global Water Resources, Inc. (“Company”) and is intended to be a mutual agreement concerning the resolution of all claims and disputes between Employee and Company.  Employee and Company are collectively referred to as the “Parties.”  

RECITALS

    
A.Employee has been employed by the Company as the Controller on an “at will” basis giving either Party the right to terminate the relationship at any time.

B.The Company has decided to exercise its right to terminate the employment relationship and has notified Employee that his last day of employment will be February 16, 2018.

C.The Company will pay Employee his final wages in accordance with state and federal law regardless of whether Employee signs this Agreement.  

D.By entering into this Agreement, the Parties mutually agree to resolve all disputes between them and to be legally bound by the terms set forth below.

COVENANTS

NOW THEREFORE, for valuable consideration, the Parties agree as follows:
 
1.    Severance and other Consideration offered to Employee.  

a)    The Company agrees to pay Employee the sum of Ninety-Eight Thousand, Three Hundred Twelve Dollars ($98,312), less all lawfully required holdings. This payment will be made to Employee within ten (10) business days of Employee signing this Agreement,  assuming Employee has timely signed this Agreement. 

b)    The Company agrees to enter into an Independent Contractor Agreement  (“IC Agreement”), attached as Exhibit 1, with Employee for the period of time specified in that IC Agreement; and
c)      If Employee so elects, the Company will allow Employee to resign in lieu of termination and will confirm to any future employers that Employee’s departure was a voluntary resignation.  

In consideration of the covenants set forth in Section 1 above and the covenants herein:

2.    Release.  In consideration of the covenants set forth in Section 1 above, Employee, on behalf of himself, his marital community if any, and his heirs or assigns, expressly releases Company and its subsidiaries, affiliated companies, directors, officers, all of their agents, employees and attorneys; and all their predecessors and successors from any and all complaints, rights, actions, claims, damages, expenses or costs arising out of or relating to Employee's employment with Company or the termination of that employment.   This FULL WAIVER AND RELEASE includes, without limitation, all rights and claims, known and unknown, arising under the Civil Rights Act of 1866, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Rehabilitation Act of 1973, the Fair Labor Standards Act,  the Family & Medical Leave Act, the Age Discrimination in Employment Act,  the Lilly Ledbetter Fair Pay Act,  the National Labor Relations Act, the Occupational Safety and Health Act, the Sarbanes Oxley Act, the Equal Pay Act, the Older Workers’ Benefit Protection Act, the Employee Retirement Income Security Act of 1974, the National Labor Relations Act, the Labor Management Relations Act, the Consolidated Omnibus Budget 

Reconciliation Act, the Arizona Civil Rights Act, the Arizona Minimum Wage Law, the Arizona Employment Protection Act, and the Arizona Equal Pay Act, all as amended, and/or any other federal, state, or local laws, as well as any statutory, common law, contract or tort causes of action arising from or in any way related to Employee’s relationship with the Company or the termination of that relationship.

3.    Other Filings.   Employee represents that he has not filed any administrative charges, lawsuits, or other types of legal claims against the Company. Nothing in this Agreement limits Employee’s ability to file a charge or complaint with the EEOC, the ACRD, the NLRB, OSHA, SEC or any other federal, state or local governmental agency or commission (“Government Agencies”).  Employee further understands that this Agreement does not limit his ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by a Government Agency, including providing documents or other information, without notice to the Company.  While Employee will not be entitled to receive any compensation based on any charge or claims filed with the EEOC, NLRB, or OSHA as a result of his waiver of all claims, the Agreement does not limit Employee’s right to receive an award for information provided to the SEC pursuant to Section 21 F-17 of the Dodd Frank Wall Street Reform and Consumer Protection Act.  

4.    Time to Consider Agreement.  Employee has the right to consult with an attorney before signing this Agreement.  Employee must sign and return this agreement to the person listed below before close of business on February 23, 2018, or this Agreement is considered null and void:
 
Global Water Resources, Inc.
Attn: Joanne Ellsworth
21410 N. 19th Avenue, Suite 220
Phoenix, Arizona 85027

5.    No Admission of Liability.  Nothing in this Agreement shall be interpreted as an admission that Company has violated any law, breached any contract or engaged in any wrongful conduct with respect to Employee.  Company denies any wrongdoing with respect to Employee’s former employment.

    
6    Non-Disparagement.  From and after the date this Agreement was first provided to Employee,  Employee shall not take any action or make any statements to past, present or potential clients of Company, professionals, regulatory agencies or others that might be injurious to the reputation or goodwill of Company or which in any manner may interfere with the business affairs or business relations of Company.

7.    Non-Solicitation.  Employee agrees that for a period of one (1) year after termination from Company, Employee shall not on Employee’s own account or in conjunction with or on behalf of any other person, solicit or entice or hire away or attempt to solicit or entice or hire away from Company any Company employee, offer employment to or offer to any Company employee or encourage any Company employee to terminate their employment with Company.    

8.    Non-Disclosure of Confidential Information.  Employee agrees that, following his receipt of this Agreement and at all times thereafter,  Employee shall not disclose to any third party any of Company’s confidential, proprietary or trade secret information, including information regarding Company’s current and planned business activities, including (i) information regarding the administrative, financial or marketing activities of Company; (ii) information received from Company’s clients and other third parties; and (iii) any written materials containing any of the above information.  Employee’s failure to maintain the confidentiality of this information shall constitute a material breach of this Agreement.  Confidential information does not include information that is or becomes publicly available by means other than by disclosure by Employee.  Employee also acknowledges that he previously signed a Confidentiality & Non-Disparagement Agreement, which is attached as Exhibit 2, and understands that this Confidentiality & Non-Disparagement Agreement remains in full force and effect. 

9.    Confidentiality of Agreement.  The Parties agree to keep the terms of this Agreement completely confidential, including any discussions leading up to the execution of this Agreement and any matters resolved by this Agreement.  Employee further agrees not to disclose any of the above, except where disclosure is required by law or to lawyers or accountants engaged in connection with this Agreement.

10.    No-Reapply.   Employee understands that his employment relationship with the Company has ended. He therefore agrees to not apply for, nor accept employment with, the Company at any time except for the independent contractor relationship as set forth in the Parties’ agreement in Exhibit 1. 

11.    Return of Company Property.  Employee agrees to immediately return and deliver to the Company all Company property including, but not limited to the following:  original and copies of records, documents, confidential information, trade secrets, computer and office equipment, client property, keys, lap top,  Company charge cards, key fobs for Company bank accounts, and other items, in whatever form, in Employee’s possession and control.  The Parties agree that the Company may specifically allow Employee to retain some of these items if needed to perform the duties under the IC Agreement as set forth in Exhibit 1.

12.         Company Representation.     Employee acknowledges that he can no longer act as a representative of the Company and agrees to cooperate with the Company to ensure any transfer of such authority back to the Company. 

13.    Severability.  Each and every provision set forth in this Agreement is independent and severable from the others, and no restriction will be rendered unenforceable by virtue of the fact that, for any reason, any other or others of them may be unenforceable in whole or in part.  If any provision of this Agreement is deemed unenforceable for any reason whatsoever, that provision will be appropriately limited and given effect to the maximum extent provided by applicable law.

14.    Nature of the Agreement.  This document and its attachments constitute the entire Agreement between the Parties and supersede all previous communications, whether oral or written.  This Agreement may only be modified by a written document signed by both Parties.  If any portion of this Agreement is found to be unenforceable, the remainder of the Agreement shall continue in full force and effect.  The Agreement shall be governed by and construed in accordance with the laws of the state of Arizona.  The prevailing party shall be entitled to recover its reasonable attorneys' fees in enforcing this Agreement.  Each Party represents that it has read and understands the terms of this Agreement, that it has relied only upon its own legal counsel, and that it has not relied upon any representation made by another party or that party’s counsel, except as set forth herein.

15.    Reliance.  Employee acknowledges that this Agreement is written in a manner that is understandable to Employee and that Employee has read all of the paragraphs of this Agreement.  Employee further acknowledges that Employee is entering into this Agreement freely, knowingly, voluntarily and with a full understanding of its terms and that no statements made by Company have in any way coerced or unduly influenced Employee to execute this Agreement.  

16.    409A.  The Parties intend that the payment set forth in this Agreement will comply with the separation pay exception set forth in Treas. Reg. 1.409A-1(b)(9)(iii) and any successor provision, and is, therefore, not subject to the requirements of Section 409A of the Internal revenue Code of 1986, as amended.  

    

THIS AGREEMENT WAS PROVIDED TO EMPLOYEE ON FEBRUARY 16, 2018.

EMPLOYEE

2/20/2018                /s/ Jeffrey E. Risenmay                                
Date                    Jeffrey Risenmay

GLOBAL WATER RESOURCES, INC.
a Delaware Corporation

2/20/18                    /s/ Michael Liebman                            
Date                    Michael Liebman
Chief Financial Officer

4810-9578-6077

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