Document:

Exhibit

BRYN MAWR BANK CORPORATION 
RESTRICTED STOCK UNIT AGREEMENT FOR NON-EMPLOYEE DIRECTORS
(SERVICE/PERFORMANCE-BASED)
SUBJECT TO THE AMENDED AND RESTATED 2010 LONG TERM INCENTIVE PLAN 
 
Grantee:        [    ]    
Date of Grant:     [________], 2019
Total Number of RSUs:    [    ] 
Number of time-based RSUs:    [    ] (“Time-Based RSUs”)
Target number of performance-based RSUs:     [    ] (“Performance-Based RSUs”)
Service Period:    [__], 2019 to [__], 2022 (“Service Period”)

		
	Performance Goal:
	Certain conditions and goals as determined according to Exhibit A hereto

RESTRICTED STOCK UNIT AGREEMENT (“Agreement”), dated as of the Date of Grant set forth above by and between BRYN MAWR BANK CORPORATION (the “Corporation”) and the Grantee named above (the “Grantee”). 
1.The Plan.  This Agreement is subject to the terms and conditions of the Amended and Restated Bryn Mawr Bank Corporation 2010 Long Term Incentive Plan (the “Plan”) as approved by the Board of Directors of the Corporation on February 27, 2015 and by the Corporation’s shareholders on April 30, 2015. Except as otherwise specified herein, all capitalized terms used in this Agreement shall have the meanings given to them in the Plan. 
2.Grant of Restricted Stock Units. 
a.    Subject to the terms and conditions of the Plan and this Agreement, and the Grantee’s acceptance of same by execution of this Agreement, the Corporation’s Management Development and Compensation Committee (“Compensation Committee”) hereby grants to the Grantee the number of Restricted Stock Units set forth under “Total Number of RSUs” above (the “RSUs”). 
b.    Upon vesting of the RSUs and satisfaction of all of the other terms and conditions in this Agreement, the Corporation will issue stock representing the shares underlying the vested RSUs (regardless of whether such RSUs are Time-Based RSUs or Performance-Based RSUs) as soon as practicable following the Time Vesting Date (as defined in subsection 3(a) below), in the case of the vested Time-Based RSUs, and the Performance Vesting Date (as defined in subsection 3(b) below)), in the case of the Performance-Based RSUs.
3.Terms and Conditions.  The Grant is subject to the following terms and conditions:
a.    Time-Based Requirements. The Time-Based RSUs will vest on [__], 2022 (such date, the “Time Vesting Date”), provided that Grantee provides continuous service as a director of the Corporation from the Date of Grant through the Time Vesting Date.   
b.    Performance Goals.  The Performance-Based RSUs are subject to the performance goals set forth in Exhibit A (the “Performance Goals”) and shall vest, in whole or in part, upon the Performance Vesting Date only if the Performance Goals are achieved and the Grantee has provided continuous service as a director of the Corporation through the end of the Service Period, or as otherwise provided herein. The Compensation Committee shall determine within 75 days 

after the last day of the Service Period whether the Performance Goals have been achieved, in whole or in part, in accordance with Exhibit A attached hereto.  The value of any fractional shares will be paid to the Grantee through a separate disbursement.  No vesting of Performance-Based RSUs shall be deemed to have occurred unless and until the Compensation Committee certifies in writing as to the portion of Performance Goals that have been achieved. The date on which the Compensation Committee certifies as to the achievement of the Performance Goals and the vesting of the Performance-Based RSUs is referred to in this Agreement as the “Performance Vesting Date”. 
c.    No Rights as a Shareholder.  Grantee will have no rights or privileges of a shareholder (including but not limited to, no right to vote the shares) with respect to shares underlying RSUs until such RSUs have vested and such shares have been issued. 
d.    Dividend-Equivalents.  At the time of issuance of shares underlying vested RSUs pursuant to subsection 2(b) above, the Corporation shall also pay to Grantee an amount equal to the aggregate amount of all dividends declared and paid by the Corporation based on dividend record dates falling between the Date of Grant and the date of issuance in accordance with the number of shares issued. The computation set forth in this subparagraph is separate and distinct from the calculations and concepts set forth on Exhibit A hereto and the calculations and concepts set forth on Exhibit A hereto have no applicability to the calculation of the amount of dividends to be paid by the Corporation pursuant to this subparagraph.  
e.    Holding Period.  All vested RSUs will be subject to a holding period (“Holding Period”) until the earliest of:
		
	i.
	The two-year anniversary of such Time Vesting Date or Performance Vesting Date, as applicable;

		
	ii.
	The date of the Grantee’s death or Disability (as defined in Section 5 below); or

		
	iii.
	The date of consummation of a Change of Control (as defined in Section 7 below).

For purposes of clarification, once shares underlying vested RSUs have been issued and until the expiration of the applicable Holding Period, Grantee shall have all of the rights and privileges of a shareholder with respect to such shares other than the right to sell, transfer, gift, or otherwise divest himself or herself of such shares.  Notwithstanding anything herein to the contrary, the Corporation may lift the Holding Period with respect to any shares underlying vested RSUs where the sale of such shares is necessary to satisfy the payment of statutory federal, state and local withholding taxes including, without limitation, social security and medicare taxes. 
4.Forfeiture.
a.    Forfeiture.  All Time-Based RSUs that have not vested at the Time Vesting Date in accordance with subsection 3(a), and all Performance-Based RSUs that have not vested at the Performance Vesting Date in accordance with subsection 3(b) and Exhibit A attached hereto, shall be forfeited in their entirety.  
b.    Forfeiture of Unvested RSUs and Payment to the Corporation for Issued Shares Resulting from Vested RSUs If Grantee Engages in Certain Activities. The provisions of this subsection 4(b) will apply to all RSUs granted to Grantee under the Plan and to any shares issued to the Grantee upon vesting of RSUs. If, at any time during the Service Period, or for a period of two (2) years after termination of Grantee’s service as a director of the Corporation for any reason, Grantee engages in any activity inimical, contrary or harmful to the interests of the Corporation including, but not limited to (A) conduct related to Grantee’s service for which either criminal or civil penalties against Grantee may be brought, (B) violation of the Corporation’s or the Bank’s policies including, without limitation, the Insider Trading Policy, Code of Business Conduct and Ethics, Code of Personal Conduct, Employee Handbook, or otherwise, (C) soliciting of any customer of the Corporation or any of its direct or indirect subsidiaries (individually and collectively, the “Company Group”) for business which would result in such customer terminating their relationship with the Company Group, (D) soliciting or inducing any individual who is an employee or director of the Company Group to leave the Company Group or otherwise 

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terminate their relationship with the Company Group, (E) disclosing or using any confidential information or material concerning the Company Group, (F) breach of any agreement between the Grantee and the Company Group, or (G) participating in a hostile takeover attempt, then (x) all RSUs that have not vested effective as of the date on which Grantee engages in such activity, unless forfeited sooner by operation of another term or condition of this Agreement or the Plan, shall be forfeited in their entirety, and (y) for any shares underlying vested RSUs which have been issued to Grantee, the Grantee shall pay to the Corporation the market value of the shares on the date of issuance or the date Grantee engages in such activity, whichever is greater.  The term “Confidential Information” as used in this Agreement includes, but is not limited to, records, documents, programs, technical data, information technology, policies, files, lists, client non-public personal information, pricing, costs, strategies, market data, statistics, business partners, customers, customer requirements, prospective customer contacts, knowledge of the Company Group’s clients, methods of operation, processes, trade secrets, methods of determination of prices, fees, financial condition, profits, sales, net income, indebtedness, potential mergers or acquisitions, or the sale of Company Group assets or subsidiaries, commercial contracts and relationships, employees, litigation (whether actual or threatened), information acquired in connection with the Grantee’s role as a director to the Company, whether through board meetings, deliberations or discussions among directors, Company Group employees or agents, or relating to board dynamics generally, including, without limitation, proprietary or confidential information of any third party who may disclose such information to the Company Group or the Grantee in the course of Company Group business, and any other information relating to the Company Group that has not been made available to the general public, as the same may exist from time to time. The provisions of this Section 4 are in addition to, and in no way decrease, limit, or affect the applicability of or relief available to the Corporation under Section 8. 
c.    Right of Setoff.  By accepting this Agreement, Grantee consents to the deduction, to the extent permitted by law, from any amounts that the Company Group owes Grantee from time to time and the amounts Grantee owes the Corporation under subsection 4(b) above. Whether or not the Corporation elects to make any setoff in whole or in part, if the Corporation does not recover by means of setoff the full amount Grantee owes it, calculated as set forth above, Grantee agrees to immediately pay the unpaid balance to the Corporation. 
d.    Compensation Committee Discretion.  Grantee may be released from Grantee’s obligations under subsections 4(b) and 4(c) only if the Compensation Committee, or its duly appointed agent, determines in its sole discretion that such action is in the best interest of the Corporation. 
5.Death, Disability or Retirement.  In the event the Grantee shall cease to be a director of the Corporation prior to the expiration of the Service Period by reason of: (a) retirement, whether or not early, with the consent of the Compensation Committee; (b) a transfer of the Grantee in a spinoff; (c) death; or (d) total and permanent disability as determined by the Compensation Committee (“Disability”), then the vesting requirements on a fraction of Grantee’s RSUs will be deemed to have been fulfilled.  With respect to the Time-Based RSUs, the vested portion shall be calculated as follows: the number of Time-Based RSUs granted multiplied by a fraction, the numerator of which is the number of full calendar months that elapsed in the Service Period prior to the death, Disability, retirement or transfer in a spinoff of the Grantee and the denominator of which is the total number of full calendar months in the Service Period.  With respect to the Performance-Based RSUs, the vested portion shall be calculated as follows: the number of Performance-Based RSUs that would have vested in accordance with Section 3(b) had Grantee remained a director through the Service Period, multiplied by a fraction, the numerator of which is the number of full calendar months that elapsed in the Service Period prior to the death, Disability, retirement or transfer in a spinoff of the Grantee and the denominator of which is the total number of full calendar months in the Service Period.  Shares underlying all Time-Based RSUs that vest in accordance with the terms of this Section 5 shall be issued as soon as practicable following such vesting and Performance-Based RSUs that vest in accordance with the terms of this Section 5 shall be issued as soon as practicable following the Performance Vesting Date.  Any remaining RSUs which have not vested as provided in this Section 5 shall be forfeited.  
6.Termination.  If the Grantee ceases to be a director of the Corporation prior to the expiration of the Service Period for any reason other than as described in Section 5 above, any RSUs that have not yet vested at the date of termination shall automatically be forfeited.

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7.Change of Control.  In the event of a Change of Control, Grantee’s outstanding RSUs will be deemed to have vested and any shares underlying such RSUs not previously issued shall be issued within ten days after the Change of Control.  For purposes of clarification, in such a situation, all Time-Based RSUs will vest, and Performance-Based RSUs will vest at the target levels as described in Exhibit A hereto.  A “Change of Control” shall be deemed to have taken place if (i) any Person (as defined below) other than an entity in the Company Group or an employee benefit plan of the Company Group (or any Person organized, appointed or established by the Company Group for or pursuant to the terms of any such employee benefit plan), together with all affiliates and associates of such Person, becomes the beneficial owner in the aggregate of 25% or more of the common stock of the Corporation then outstanding, or (ii) during any twenty-four month period, individuals who at the beginning of such period constituted the Board of Directors of the Corporation or The Bryn Mawr Trust Company (the “Bank”) cease, for any reason, to constitute a majority thereof, unless the election, or the nomination for election by the Corporation or the Bank’s shareholders, as the case may be, of each director who was not a director at the beginning of such period was approved by a vote of at least two-thirds of the directors in office at the time of such election or nomination, who were directors at the beginning of such period.

8.Non-Interference and Non-Solicitation.  
a.    For a period of twenty-four (24) months following the date Grantee ceases to be a director of the Corporation for any reason, whether voluntarily or involuntarily (the “Separation Date”), Grantee agrees not to disrupt, damage, impair or interfere with the business of the Company Group in any manner, including without limitation, by:  (a) employing, engaging or soliciting any employee of the Company Group; (b) inducing or attempting to influence an employee to leave the employ of the Company Group; (c) adversely influencing or altering the relationship of any person, firm, corporation, partnership, association or other entity (“Person”) with the Company Group, whether such Person is an employee, customer, client or otherwise; or (d) directly or indirectly, individually or for any other, calling on, engaging in business with, soliciting, inducing, or attempting to solicit or induce, any Person who has been a customer, client or business referral source of the Company Group, or who has been solicited as a potential customer, client or business referral source of the Company Group, during the two (2) year period preceding the Separation Date to (x) cease doing business in whole or in part with or through the Company Group or (y) do business with any other Person which performs services or offers products materially similar to or competitive with those provided by the Company Group.  
b.    Grantee shall maintain Confidential Information (as defined in Section 4(b)) in the strictest of confidence, shall not disclose Confidential Information to any person outside of the Company Group, and shall not use, reproduce, disseminate, or take any other action with respect to Confidential Information other than in connection with Grantee’s provision of services as a director of the Corporation and for the benefit of the Company Group.  Grantee shall not remove Confidential Information from Company Group premises unless necessary in connection with the performance of Grantee’s service, and in such event, such Confidential Information shall be returned or destroyed immediately upon cessation of Grantee’s service with the Company Group.  The obligations of Grantee under this Section 8(b) shall apply during Grantee’s provision of services and following termination of Grantee’s provision of services, and shall survive in perpetuity.
c.    Grantee acknowledges and agrees that the restrictions contained in this Section 8 are reasonable and necessary in order to protect the legitimate interests of the Company Group and that any violation thereof would result in irreparable injury to the Company Group.  Consequently, Grantee acknowledges and agrees that, in the event of any violation thereof, the Company Group shall be authorized and entitled, without the necessity of posting a bond or other form of security, to obtain from any court of competent jurisdiction injunctive and equitable relief, as well as an equitable accounting of all profits and benefits arising out of such violation, which rights and remedies shall be cumulative and in addition to any other rights or remedies to which the Company Group may be entitled at law or in equity (including the rights of forfeiture set forth in Section 4 hereof) and, in the event the Company Group is required to enforce the terms of this Agreement through court proceedings, the Company Group shall be entitled to reimbursement of all legal fees, costs and expenses incident to enforcement of any such term, in whole or in part and/or such term as may be modified by a court of competent jurisdiction.  

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d.    The provisions of this Section 8 are in addition to, and in no way decrease, limit, or affect the applicability of or relief available to the Corporation under Section 4.
e.    If any court of competent jurisdiction construes any of the restrictive covenants set forth in this Section 8, or any part thereof, to be unenforceable because of the duration, scope or geographic area covered thereby, such court shall have the power to reduce the duration, scope or geographic area of such provision and, in its reduced form, such provision shall then be enforceable and shall be enforced.  
9.Change Adjustments.  The Compensation Committee shall make appropriate adjustments to give effect to adjustments made in the number of shares of the Corporation’s common stock through a merger, consolidation, recapitalization, reclassification, combination, spinoff, common stock dividend, stock split or other relevant change as the Compensation Committee deems appropriate to prevent dilution or enlargement of the rights of the Grantee.  Any adjustments or substitutions pursuant to this section shall meet the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and shall be final and binding upon the Grantee.  
10.Compliance with Law and Regulations.  The grant of RSUs and the issuance of shares underlying vested RSUs shall be subject to all applicable federal and state laws, the rules and regulations and to such approvals by any government or regulatory agency as may be required.  The Corporation shall not be required to register any securities pursuant to the Securities Act of 1933, as amended, or to list such shares under the stock market or exchange on which the common stock of the Corporation may then be listed, or to take any other affirmative action in order to cause the issuance or delivery of shares underlying vested RSUs to comply with any law or regulation of any governmental authority.
11.Notice.  Any notice which either party hereto may be required or permitted to give to the other shall be in writing, and may be delivered personally or by mail, postage prepaid, addressed as follows: to the Corporation, Attention: Corporate Secretary, at its office at 801 Lancaster Avenue, Bryn Mawr, PA 19010 or to the Grantee at her/his address on the records of the Corporation or at such other addresses as the Corporation, or Grantee, may designate in writing from time to time to the other party hereto. 
12.Incorporation by Reference.  This Restricted Stock Unit Award is granted pursuant and subject to the terms and conditions of the Plan, the provisions of which are incorporated herein by reference. If any provision of this Agreement conflicts with any provision of the Plan in effect on the Date of Grant, the terms of the Plan shall control. This Agreement shall not be modified after the Date of Grant except by written agreement between the Corporation and the Grantee; provided, however, that such modification shall (a) not be inconsistent with the Plan, and (b) be approved by the Committee. 
13.Reformation; Severability. If any provision of this Agreement shall hereafter be held to be invalid, unenforceable or illegal, in whole or in part, by a court of competent jurisdiction under any circumstances for any reason, (i) such provision shall be reformed to the minimum extent necessary to cause such provision to be valid, enforceable and legal while preserving the intent of the parties as expressed in, and the benefits of the parties provided by, this Agreement or (ii) if such provision cannot be so reformed, such provision shall be severed from this Agreement or the Notice and an equitable adjustment shall be made to this Agreement (including, without limitation, addition of necessary further provisions) so as to give effect to the intent as so expressed and the benefits so provided. Such holding shall not affect or impair the validity, enforceability or legality of such provision in any other jurisdiction or under any other circumstances.  Neither such holding nor such reformation or severance shall affect the legality, validity or enforceability of any other provision of this Agreement.   
14.Compliance with Internal Revenue Code Section 409A.  It is the intention of the parties that the RSUs and the Agreement comply with the provisions of Section 409A of the Code to the extent, if any, that such provisions are applicable to the Agreement and the Agreement will be administered by the Compensation Committee in a manner consistent with this intent.  If any payments or benefits may be subject to taxation under Section 409A of the Code, Grantee agrees that the Compensation Committee may, without the consent of Grantee, modify this Agreement to the extent and in the manner that the Compensation Committee deems necessary or advisable or take any other action or actions, including an amendment or action with retroactive effect that the Compensation Committee determines is necessary or appropriate to exempt any 

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payments or benefits from the application of Section 409A or to provide such payments or benefits in the manner that complies with the provisions of Section 409A such that they will not be taxable thereunder. 
15.Choice of Law.  The provisions of this Agreement shall be construed in accordance with the laws of the Commonwealth of Pennsylvania, without regard to any conflict of law provision that would apply the law of another jurisdiction.
16.Interpretation.  The interpretation and construction or any terms or conditions of the Plan or this Agreement by the Compensation Committee shall be final and conclusive. 

[Signature Page Follows]

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IN WITNESS WHEREOF, the Corporation has caused this Agreement to be executed by a duly authorized officer, and the Grantee has hereunto set his/her hand and seal, effective as of the Date of Grant set forth above. 
 
	
				
	 
	 

	BRYN MAWR BANK CORPORATION

	

By:
	 
 

	Name: Michael W. Harrington
	 

	Title: Chief Financial Officer
	 

	 

	 
 

	(Signature of Grantee)

	 

	 
 

	(Print Name of Grantee)

	 

	 
 

	(Address of Grantee)

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EXHIBIT A

TO RESTRICTED STOCK UNIT AGREEMENT DATED AS OF [_______], 2019

All of the terms and conditions of the Restricted Stock Unit Agreement dated as of [________], 2019, (“Agreement”), to which this Exhibit is attached are incorporated herein by reference. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Agreement.

Name of Grantee: [    ]

1.  Target Number of Performance-Vested Restricted Stock Units subject to vesting based on Total Shareholder Return (“TSR”): ____[    ]_____________
2.  Target Number of Performance-Vested Restricted Stock Units subject to vesting based on Return on Average Equity (“ROAE”): _________[    ]________ 
3.  Performance Goals: Except as otherwise set forth in the Award Agreement, the number of RSUs (rounded down to the nearest whole number of RSUs) that become nonforfeitable with respect to the Performance Period in accordance with the terms of the Award Agreement will be based on the Company’s relative TSR and ROAE Percentile Rank (as defined below) compared to the Peer Group (as defined below) in respect of the relevant Performance Period, as set forth in the chart below.  Notwithstanding anything herein to the contrary, in the event of a Change of Control, the number of RSUs that vest shall be the greater of (i) 100% of target and (ii) the percent of target that would have been achieved based on actual TSR and ROAE Percentile Ranks calculated in accordance with the terms of this Exhibit A. 
	
					
	TSR Percentile Rank1,2
	Less than 25%
	25%
	50%
	75% or Greater

	ROAE Percentile Rank1
	

Less than 25%
	

25%
	

50%
	

75% or Greater

	Number of RSUs Vesting
	0 RSUs
	0% of target
	100% of target
	150% of target

1 If the applicable TSR or ROAE Percentile Rank is greater than 25% and less than 75% with respect to the relevant Performance Period, the number of RSUs that shall vest shall be prorated based on the actual level of performance achieved. For example, performance at the 37.5th percentile (halfway between the threshold of 25th percentile and the max of 50th percentile) for both metrics would result in 50% of target RSUs vesting (halfway between 0% at threshold and 100% at target).  
2 Provided however, if the Corporation’s TSR over the Performance Period is negative, no more than 100% of the target number of RSUs subject to TSR will vest. 
4.  For purposes of this Exhibit A, the following terms shall have the respective meanings set forth below:
		
	a.
	“Peer Group” means the following financial institutions:

	
		
	Company Name
	Ticker

		
	(1)
	Notwithstanding the foregoing, if at any time prior to the expiration of the Performance Period a member of the Peer Group ceases to be a domestically domiciled publicly traded company on a national stock exchange or market system; or has gone private; or has reincorporated in a foreign (e.g., non-U.S.) jurisdiction, regardless of whether it is a reporting company in that or another jurisdiction; or has been acquired by another company (whether by a peer company or otherwise, but not including internal reorganizations), or has sold all or substantially all of its assets, then such member shall be immediately removed from the Peer Group. 

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	b.
	“Performance Period” means (i) for measurement of ROAE, the 12-quarter period beginning [____], 2019 and ending [____]; and (i) for measurement of TSR, the 3-year period beginning [_____], 2019 and ending [__], 2022.

		
	c.
	“ROAE” means (a) net income applicable to the common shareholders of a company during the Performance Period, divided by (b) that company’s average common shareholders’ equity during the Performance Period (as reported in the company’s annual or quarterly report for the applicable fiscal period end) subject to adjustments for certain extraordinary or special items, in the form and manner determined in the Committee’s sole discretion and if permitted by the IRS regulations under Section 162(m) of the Internal Revenue Code of 1986, as amended, relating to the “pre-established performance goal” rules, for any: change in accounting policy; gain/loss on disposition of assets or business; charge for goodwill impairment; extraordinary legal/regulatory settlements; extraordinary market conditions; significant currency fluctuations; effects of nature or man-made disasters; hyperinflation; change in statutory tax rates/regulations; charges or costs associated with Board-approved restructurings of the Company, including but not limited to, acquisitions and mergers by the Company; results of discontinued operations held for sale after sale closing; other extraordinary, unusual or infrequently occurring items as determined under U.S. generally accepted accounting principles (“GAAP”).  

		
	d.
	“TSR” means, with respect to any company, the Company’s total shareholder return, which will be calculated by dividing (i) the Closing Average Share Value by (ii) the Opening Average Share Value.

		
	e.
	“Opening Average Share Value” means the average, over the trading days in the Opening Average Period, of the closing price of a company’s stock multiplied by the Accumulated Shares for each trading day during the Opening Average Period.

		
	f.
	“Opening Average Period” means the 20 trading days preceding [__], 2019.

		
	g.
	“Accumulated Shares” means, solely for purposes of the calculation of TSR, for a given trading day, the sum of (i) one (1) share and (ii) a cumulative number of shares of the company’s common stock purchased with the dividends declared on a company’s common stock, assuming same day reinvestment of the dividends in the common stock of a company at the closing price on the ex-dividend date, for ex-dividend dates between the start of the Opening Average Period and the trading day.

		
	h.
	“Closing Average Share Value” means the average, over the trading days in the Closing Average Period, of the closing price of the company’s stock multiplied by the Accumulated Shares for each trading day during the Closing Average Period.

		
	i.
	“Closing Average Period” means (i) in the absence of a Change of Control, the 20 trading days preceding [__], 2022; or (ii) in the case of a Change of Control, the trading days during the period beginning thirty (30) calendar days prior to the Change of Control and ending on the Accelerated End Date.

		
	j.
	“Accelerated End Date” means the date five (5) calendar days (or such shorter period as may be established by the Compensation Committee in its sole discretion) prior to the Change of Control.

		
	k.
	“Percentile Rank” means the Company’s relative percentile positioning in respect of the TSR or ROAE, as applicable, of the other members of the Peer Group.

-9-Exhibit

Pay Continuation Plan for Employees Participating in the 
BMT 2019 Years of Service Incentive Program - Executive Tier

(Effective March 20, 2019)

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14631670v1 (22616.012) 

Contents

	
			
	Article 1. Introduction
	 
	1

	1.1 Establishment of the Plan
	 
	1

	1.2 Status of the Plan
	 
	1

	Article 2. Definitions
	 
	1

	2.1 Affiliate
	 
	1

	2.2 Annual Base Salary
	 
	1

	2.3 Base Pay
	 
	1

	2.4 BMT
	 
	2

	2.5 Board
	 
	2

	2.6 Code
	 
	2

	2.7 Disability
	 
	2

	2.8 Effective Date
	 
	2

	2.9 Eligible Employee
	 
	2

	2.10 Employee
	 
	3

	2.11 ERISA
	 
	3

	2.12 Gross Cause
	 
	3

	2.13 Pay Continuation Benefits
	 
	3

	2.14 Plan
	 
	4

	2.15 Plan Administrator
	 
	4

	2.16 Plan Year
	 
	4

	2.17 Qualifying Termination of Employment
	 
	4

	2.18 Regular Pay Continuation Benefit
	 
	4

	2.19 Release
	 
	4

	2.20 Specified Employee
	 
	5

	2.21 Successor Employer
	 
	5

	2.22 Termination of Employment
	 
	5

	2.23 U.S. Subsidiary
	 
	6

	2.24 Years of Service
	 
	6

	Article 3. Eligibility for Benefits
	 
	6

	3.1 Eligibility for Benefit
	 
	6

	3.2 Release
	 
	7

	3.3 Discretion as to Eligibility
	 
	7

	 
	 
	 

i
14631670v1 (22616.012) 

	
			
	Article 4. Amount of Benefits
	 
	7

	4.1 Regular Pay Continuation Benefit
	 
	7

	4.2 Discretion as to Amount of Benefit
	 
	8

	4.3 Offsets
	 
	8

	Article 5. Benefits
	 
	8

	5.1 Timing
	 
	8

	5.2 Death of Otherwise Eligible Employee
	 
	9

	5.3 Health Benefits
	 
	9

	Article 6. Cost of the Plan
	 
	9

	6.1 Plan Costs
	 
	9

	Article 7. Reemployment
	 
	10

	7.1 Reemployment of Eligible Employee
	 
	10

	Article 8. Amendment or Termination
	 
	10

	8.1 Amendment or Termination
	 
	10

	Article 9. Plan Administration
	 
	10

	9.1 Plan Administrator
	 
	10

	9.2 Operation of the Plan Administrator
	 
	11

	9.3 Agents
	 
	11

	9.4 Compensation and Expenses
	 
	11

	9.5 Plan Administrator’s Powers and Duties
	 
	11

	9.6 Plan Administrator’s Decisions Conclusive/Exclusive Benefit
	 
	12

	9.7 Indemnity
	 
	12

	9.8 Insurance
	 
	14

	9.9 Fiduciaries
	 
	14

	9.10 Notices
	 
	14

	9.11 Data
	 
	15

	9.12 Claims Procedure
	 
	15

	9.13 Effect of a Mistake
	 
	18

	Article 10. Miscellaneous Provisions
	 
	18

	10.1 No Enlargement of Employee Rights
	 
	18

	10.2 No Examination or Accounting
	 
	18

	10.3 Records Conclusive
	 
	18

	10.4 409A
	 
	18

	10.5 Service of Legal Process
	 
	19

	10.6 Governing Law
	 
	19

	10.7 Severability
	 
	19

	 
	 
	 

ii
14631670v1 (22616.012) 

	
			
	10.8 Missing Persons
	 
	19

	10.9 Facility of Payment
	 
	19

	10.10 General Restrictions Against Alienation
	 
	20

	10.11 Gender and Number
	 
	20

	10.12 Counterparts
	 
	21

	10.13 Withholding
	 
	21

	 
	 
	 

    

iii
14631670v1 (22616.012) 

Article 1. Introduction

		
	1.1
	Establishment of the Plan

The Plan is effective as of March 18, 2019, and is designed to provide certain Eligible Employees who voluntarily terminate their employment with BMT for qualifying reasons with Pay Continuation Benefits that will be paid based on the Employee’s complete years of service with BMT. 

		
	1.2
	Status of the Plan

The Plan is intended to provide a severance or separation pay benefit and is intended to constitute an “employee welfare benefit plan” under ERISA section 3(1). The provisions of this Plan are effective for Eligible Employees who become eligible for Pay Continuation Benefits on or after March 18, 2019 but no later than June 30, 2020.

Article 2. Definitions

2.1 Affiliate

“Affiliate” means:

		
	(a)
	Any entity or organization that, together with BMT, is part of a controlled group of corporations, within the meaning of Code section 414(b);

		
	(b)
	Any trade or business that, together with BMT, is under common control, within the meaning of Code section 414(c); and

		
	(c)
	Any entity or organization that is required to be aggregated with BMT, pursuant to Code section 414(m) or 414(o).

An entity shall be an Affiliate only during the period when the entity has the required relationship, under this Section 2.1, with BMT.

2.2 Annual Base Salary

“Annual Base Salary” means an Eligible Employee’s gross, base annual rate of pay or salary, excluding overtime, bonuses, commissions, premium pay, shift differentials, employer-paid employee benefits, expense reimbursements, and similar amounts. If the Employee is paid by the hour, Annual Base Salary is the Eligible Employee’s regular hourly rate multiplied by his or her regularly scheduled hours per year.

2.3 Base Pay

“Base Pay” means for an Eligible Employee’s gross, base weekly salary, excluding overtime, bonuses, commissions, premium pay, shift differentials, employer-paid employee benefits, 

expense reimbursements, and similar amounts, as of March 18, 2019.  

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2.4 BMT

“BMT” means only Bryn Mawr Bank Corporation, The Bryn Mawr Trust Company, Lau Associates, LLC, and BMT Insurance Advisors, Inc., and excludes all Affiliates and any U.S. Subsidiary except as expressly listed in this Section 2.4. 

2.5 Board

“Board” means the Board of Directors of Bryn Mawr Bank Corporation.

2.6 Code

“Code” means the Internal Revenue Code of 1986, as amended.

2.7 Disability

“Disability” means a total physical or mental condition which, in the opinion of the Committee, causes an Eligible Employee to be totally and presumably permanently disabled, due to sickness or injury, so as to be completely and presumably permanently unable to perform the regular full-time active, essential and usual duties of his or her employment.

2.8 Effective Date

“Effective Date” means March 18, 2019. Unless the Plan is modified to extend its duration, the Plan shall expire at 11:59pm on December 31, 2021.

2.9 Eligible Employee

“Eligible Employee” means a current Employee of BMT who is employed in the position of Executive Vice President and who on or after the Effective Date works at a BMT location in Pennsylvania or Delaware, except for BMT locations in Hershey, Pennsylvania, and is on BMT’s active payroll on April 1, 2019, and as of December 31, 2018 had at least 15 years of service with BMT and was age 58 or older. An Employee who works at any BMT New Jersey or Hershey, Pennsylvania location is not an Eligible Employee. Any employee who is currently receiving long-term disability benefits or is on an indefinite personal leave of absence is not an Eligible Employee. Any Employee classified by BMT, in its sole discretion, as being in one or more of the following categories, is not an Eligible Employee:

		
	(a)
	Any Employee with a currently effective employment agreement or contract (including a letter agreement) providing for severance, notice, change of control, or termination benefits, unless the employee executes a waiver of rights under the agreement or contract in a form approved by BMT;

		
	(b) 
	Any Employee absent from work on an indefinite unpaid leave of absence for any reason and expected to exceed 90 days, unless eligibility is required by applicable federal or state 

2 

law or BMT notifies the individual in writing, after the leave of absence is approved, that he or she is eligible for benefits under this Plan; or
		
	(c)
	Any Employee who abandons his or her position, or resigns before the Termination of Employment.

2.10 Employee

“Employee” means an individual classified by BMT as a regular employee on the active U.S. payroll, who is employed by BMT on a full-time basis. 

2.11 ERISA

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

2.12 Gross Cause

“Gross Cause” means (i) the Employee’s engagement in gross negligence or misconduct that is materially injurious to BMT, monetarily or otherwise, or any of its parents, subsidiaries or affiliates (collectively, the “Company Group”), its/their reputation, products, services or customers; or (ii) the Employee’s  commission of a crime involving moral turpitude or dishonesty, or plea of nolo contendere or guilty with respect to or conviction of a crime involving moral turpitude or dishonesty, or any felony relating to the Employee’s BMT employment; or (iii) any misappropriation of BMT or customer funds by the Employee; or (iv) the Employee’s use, possession or distribution of, or being under the influence of, drugs or alcohol during working time or work-related activities or in a manner that is injurious to the reputation of BMT or any of their subsidiaries; or (v) the Employee’s making a general assignment for the benefit of the Employee’s creditors of any proceeding seeking to adjudicate the Employee bankrupt or insolvent under any laws relating to bankruptcy or insolvency or an involuntary petition shall be filed against the Employee seeking relief under any law relating to bankruptcy or insolvency which remains undismissed for a period of 60 days or more; or (vi) the Employee’s willful violation of the provisions of the Release and failure to cure such violation within 30 days after receipt of written notice of such violation; or (vii) the Company Group’s receipt of a notice from any of the governmental agencies that supervise any of them requesting that the Employee be suspended or removed from any position that the Employee then holds with the Company Group; or (viii) a violation of the BMT Code of Ethics, the BMT Code of Personal Conduct, the BMT Employee Handbook, or the BMT Insider Trading Policy to the extent the violation is determined to be material in the sole discretion of BMT.

2.13 Pay Continuation Benefits

“Pay Continuation Benefits” means the Regular Pay Continuation Benefit described in Section 4.1, as applicable.

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2.14 Plan

“Plan” means the Pay Continuation Plan for Employees Participating in the BMT 2019 Years of Service Incentive Program - Executive Tier as stated herein and as subsequently amended from time to time.

2.15 Plan Administrator

Except as otherwise provided in the Plan, the BMT 2019 Years of Service Incentive Program – Executive Tier Administrative Committee shall be the Plan Administrator, within the meaning of ERISA section 3(16)(A). The members of the BMT 2019 Years of Service Incentive Program – Executive Tier Administrative Committee shall be appointed by the Board from time to time, shall serve without compensation, and shall normally number three members.

2.16 Plan Year

“Plan Year” means the consecutive 12-month period beginning January 1 and ending December 31.

2.17 Qualifying Termination of Employment

“Qualifying Termination of Employment” means an Eligible Employee’s voluntary Termination of Employment on the last day of work with BMT as designated by BMT, as this date may be accelerated, extended or postponed, that, in BMT’s sole discretion, qualifies the Eligible Employee for Pay Continuation Benefits so long as the Eligible Employee meets all applicable requirements and conditions to receive Pay Continuation Benefits under the Plan, including Section 3.1.

2.18 Regular Pay Continuation Benefit

“Regular Pay Continuation Benefit” means the benefit payable under Section 4.1 of the Plan.

2.19 Release

“Release” means the executed and delivered irrevocable Separation Agreement and General Release of Claims, in the form prescribed by BMT and as revised from time to time in BMT’s sole discretion, from the Employee to BMT, which among other things releases BMT from any and all claims relating to the Employee’s employment with BMT, including, but not limited to, unvested retirement and welfare benefits under BMT-sponsored benefit plans, policies and programs.

2.20 Specified Employee

“Specified Employee” means an Eligible Employee qualifying as a “key employee” for purposes of Code section 416(i) (determined without regard to Code section 416(i)(5)) by satisfying any one of the following conditions at any time during the 12-month period ending on each December 31 (the “Identification Date”):

4 

		
	(a)
	The Eligible Employee is among the top-paid 50 officers of BMT with annual compensation (within the meaning of Code section 415(c)(3)) in excess of $180,000 (for the December 31, 2019 Identification Date) (subject to cost-of-living adjustments in accordance with Code section 416(i)(1));

		
	(b) 
	The Eligible Employee is a five-percent owner; or

		
	(c)
	The Eligible Employee is a one-percent owner and has annual compensation (within the meaning of Code section 415(c)(3)) in excess of $150,000. 

If an individual is a key employee as of an Identification Date, the individual shall be treated as a Specified Employee for the 12-month period beginning on the April 1 following the Identification Date. For the limited purpose of applying the “one-percent” and “five-percent” ownership rules, ownership is determined with respect to the entity for which the Employee provides services. The Code’s controlled and affiliated service group rules do not apply when determining an Employee’s ownership interests. 

Notwithstanding the foregoing, an individual shall not be treated as a Specified Employee unless any stock of BMT or a corporation affiliated with it pursuant to Code section 414(b) or (c) is publicly traded on an established securities market or otherwise.

Notwithstanding the above, BMT may (but is not required to) adopt an alternative method for identifying Specified Employees, provided such method satisfies the requirements set forth at Treasury Regulations section 1.409A-1(i)(5). 

2.21 Successor Employer

“Successor Employer” means any unrelated entity that acquires or assumes, including by merger, BMT’s facilities, operations or functions formerly carried out by BMT (such as the buyer of a facility or an entity to which a BMT operation or function has been outsourced), or any Affiliate or Subsidiary making an offer of employment at the request of BMT.

2.22 Termination of Employment

“Termination of Employment” means the last day of work and the termination of the employment relationship between the Employee and BMT as designated by BMT in its sole discretion, after which date both the employee and BMT reasonably anticipate that no future services will be performed.

For purposes of this Plan, the term Termination of Employment shall have the same meaning as the term “separation from service” as defined in Treasury Regulation section 1.409A-1(h) and the rules of such Treasury Regulation (and other applicable guidance) will be applied to determine whether an Eligible Employee has a Termination of Employment.

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2.23 U.S. Subsidiary

“U.S. Subsidiary” means any domestic entity in an unbroken chain of entities beginning with Bryn Mawr Bank Corporation if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing at least eighty percent (80%) of the total combined voting power of all classes of securities or interests in one of the other entities in such chain.

2.24 Years of Service

“Years of Service” means the number of complete years (each year being 365 days) of active paid employment with BMT, counted from an Eligible Employee’s date of hire to the date BMT designates for the Eligible Employee’s Termination of Employment. Employment with a predecessor entity, Affiliate or U.S. Subsidiary will be included. No credit shall be given for periods of less than a full year.

Article 3. Eligibility for Benefits

3.1 Eligibility for Benefits

		
	(a)
	Subject to the conditions provided in this Article 3, Pay Continuation Benefits will be payable to each Eligible Employee who:

		
	(1)
	during the prescribed period applies to participate in, and is approved by BMT to participate in BMT’s 2019 Years of Service Incentive Program - Executive Tier, and 

		
	(2)
	does not engage in conduct that constitutes Gross Cause, and 

		
	(3)
	continues to work for BMT until the last day of work as designated by BMT, as this date may be accelerated, extended or postponed. 

		
	(b)
	An otherwise Eligible Employee shall forfeit his or her eligibility for Pay Continuation Benefits unless BMT is satisfied that such Employee has satisfactorily completed all reasonable transition requests made by BMT, including but not limited to informing BMT of the location of business files and returning BMT property to BMT.

		
	(c)
	An otherwise Eligible Employee will not be eligible for Pay Continuation Benefits if the otherwise Eligible Employee:

		
	(1) 
	Resigns, quits, retires, abandons his or her employment, or otherwise voluntarily terminates employment with BMT;

		
	(2) 
	Terminates employment with BMT after being informed by BMT that he or she has been approved for participation in the BMT 2019 Years of Service Incentive Program - Executive Tier but prior to the date designated by BMT for the Eligible Employee’s Termination of Employment.

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	(3) 
	Dies except as provided by Paragraph 5.2 below;

		
	(4) 
	Incurs a Disability;

		
	(5)
	Is discharged by BMT for unsatisfactory job performance, Gross Cause, or a material violation of a BMT policy; or

		
	(6)
	Notified BMT of his or her retirement and has an effective retirement date that is prior to April 1, 2019.

3.2 Release

No Pay Continuation Benefits will be provided under this Plan to an Eligible Employee unless such Eligible Employee executes and delivers to BMT a Release in accordance with Paragraph 2.19 above, and does not revoke the Release within the time period prescribed in the Release. The Release must be satisfactory to BMT in form and substance and must be delivered to BMT, without modifications or deletions, no later than the date prescribed by BMT.

3.3 Discretion as to Eligibility

Notwithstanding the provisions of Article 3 above, BMT retains the unilateral and absolute right and discretion to determine whether one or more Employees will be eligible for Pay Continuation Benefits under this Plan and whether such Employees are otherwise determined to be Eligible Employees for purposes of this Plan.

Article 4. Amount of Benefits

4.1 Regular Pay Continuation Benefit

Subject to the offsets described below in Section 4.3, an Eligible Employee, who becomes eligible for benefits under this Plan in accordance with Article 3, will be paid a Regular Pay Continuation Benefit based on the Eligible Employee’s Years of Service with BMT as of the date of the Eligible Employee’s Qualifying Termination of Employment. The Regular Pay Continuation Benefit is payable in installments consistent with BMT’s payroll processing schedule and will commence as soon as administratively practicable after the Employee’s Qualifying Termination of Employment, subject to the provisions of Article 5.1(a) below. The formula generally used to calculate the Regular Pay Continuation Benefit for Eligible Employees is as follows: five weeks of Base Pay for each complete Year of Service measured up to the date BMT designates for the Eligible Employee’s Termination of Employment, subject to a maximum Regular Pay Continuation Benefit of 100 weeks of Base Pay.

4.2 Discretion as to Amount of Benefit

Notwithstanding the provisions of Section 4.1, BMT retains the unilateral and absolute right to determine what, if any, Regular Pay Continuation Benefit, as applicable, will be paid. The provisions of this Section 4.2 shall not be applied if doing so would trigger an excise tax under Code section 409A(a)(1)(B).

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4.3 Offsets

If an Eligible Employee becomes entitled to severance benefits under any other severance or salary or pay continuation plan, program or agreement maintained by BMT (including any Successor Employer or other successor in interest to BMT, but excluding any benefit payable under this Plan) as a result of a Termination of Employment and BMT determines that the Eligible Employee is eligible to receive benefits under this Plan, the Regular Pay Continuation Benefit payable under this Plan will be reduced by the severance benefits otherwise payable to the Eligible Employee under these other severance plans, programs, or agreements to the extent that making such a reduction will not trigger an excise tax under Code section 409A(a)(1)(B). Additionally, severance and other additional benefits available under this Plan are not intended to duplicate workers’ compensation wage replacement benefits, disability benefits, pay-in-lieu-of-notice, severance pay, or similar payments or benefits under other benefit plans, severance programs, employment contracts, or applicable laws, such as the WARN act. Any such benefits to be paid under this Plan will be reduced dollar for dollar by any such similar benefits required to be paid outside of the Plan as described in the immediately preceding sentence to the extent that making such a reduction will not trigger an excise tax under Code section 409A(a)(1)(B). If as of the Termination of Employment the Eligible Employee has used more paid time off than was accrued under BMT policy, the Regular Pay Continuation Benefit shall be adjusted by offsetting the paid time off that the Eligible Employee used but had not yet accrued.  

Article 5. Benefits

5.1 Timing

		
	(a)
	Subject to this Article 5, an Eligible Employee’s Regular Pay Continuation Benefit is payable in installments consistent with BMT’s payroll processing schedule, commencing as soon as administratively practicable after the Employee’s Qualifying Termination of Employment, but only after the latest of all of the following has occurred:  

		
	(1) 
	The Termination of Employment of the Eligible Employee; and  

		
	(2) 
	The Eligible Employee’s Release has been executed, without modifications or deletions, and has been returned to BMT, and has become irrevocable and enforceable within the maximum time period for execution and revocation of the Release (as provided in the Release).

		
	(b) 
	All benefits payable pursuant to the terms of this Plan, including, for example, the Regular Pay Continuation Benefit, will be paid before the end of the second Plan Year following the Plan Year in which the Qualifying Termination of Employment occurs. The intent of this provision is to satisfy the requirements for an exemption for certain separation pay plans as specified under Treasury Regulation section 1.409A-1(b)(9) such that any benefit payable under this Plan, to the extent applicable, will not be treated as deferred compensation under Code section 409A.

8 

		
	(c)
	If an Eligible Employee is a Specified Employee, payment of the Eligible Employee’s Pay Continuation Benefits, to the extent not otherwise exempt from Code section 409A, will not commence prior to the first day of the month following the six-month anniversary of the Eligible Employee’s Termination of Employment. If a portion of the Eligible Employee’s Pay Continuation Benefits are subject to this Code section 409A restriction, that portion of the Pay Continuation Benefits will be paid in a lump sum as soon as administratively practicable after the expiration of the six-month period described herein. 

5.2 Death of Otherwise Eligible Employee
Payment of the Regular Pay Continuation Benefit will be made to a deceased Eligible Employee who is otherwise eligible to receive a Regular Pay Continuation Benefit but did not execute and return a Release provided that the deceased Eligible Employee’s Estate representative has the power to execute and executes the Release without modifications or deletions, in which case the Regular Pay Continuation Benefit shall be paid to the Eligible Employee’s Estate in accordance with Section 5.1(a) above.
5.3 Health Benefits

To the extent BMT is required to offer health care continuation coverage in a manner consistent with the provisions of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) or other applicable state law, the Eligible Employee will have the opportunity after Termination of Employment and after receipt of Regular Pay Continuation Benefits to continue his or her participation in BMT-sponsored health insurance programs in which the Eligible Employee was enrolled, at the Employee’s cost.

Article 6. Cost of the Plan

6.1 Plan Costs

All costs of the Plan, including all administrative costs, will be borne by BMT. 

Nothing in the establishment of this Plan is to be construed as requiring BMT to create or maintain any separate fund, account or reserve to provide for the payment of BMT’s obligations under the Plan. All benefits under the Plan shall be paid from the general assets of BMT, or from a grantor trust established for the purpose of making such payments.

Article 7. Reemployment

7.1 Reemployment of Eligible Employee
If an Eligible Employee is reemployed by BMT or a Successor Employer (or provides services to BMT or a Successor Employer as an independent contractor) while Pay Continuation Benefits are still payable under the Plan, then all remaining Pay Continuation Benefits will cease, except as otherwise specified by BMT, in its sole discretion. A rehired Eligible Employee who received some or all of the Pay Continuation Benefits shall be entitled to retain such benefits already paid.  In the 

9 

event the rehired Eligible Employee experiences a Termination of Employment in the future, then his or her eligibility for a benefit under this Plan shall be determined without regard to the complete Years of Service used in calculating any benefit he or she received under this Plan.

Article 8. Amendment or Termination

8.1 Amendment or Termination

		
	(a)
	BMT, acting through its Board or an appropriate officer, has the right, in its non-fiduciary settlor capacity, to amend or to terminate the Plan at any time, prospectively or retroactively, for any reason, without notice, including the right to discontinue or eliminate benefits. 

		
	(b) 
	BMT shall amend the Plan by action of any of its officers. An officer of BMT shall execute the amendment, evidencing the adoption of such amendment.

Article 9. Plan Administration

9.1 Plan Administrator

		
	(a)
	The BMT 2019 Years of Service Incentive Program – Executive Tier Administrative Committee shall be the administrator of the Plan (“Plan Administrator”), within the meaning of ERISA section 3(16)(A). A quorum of two members of the Committee is required for a determination with respect to administration of the Plan. Assuming a quorum, the members of the BMT 2019 Years of Service Incentive Program – Executive Tier Administrative Committee shall act by majority vote.   

9.2 Operation of the Plan Administrator

		
	(a) 
	All resolutions, proceedings, acts, and determinations of the Plan Administrator, with respect to the administration of the Plan, shall be recorded and one member of the BMT 2019 Years of Service Incentive Program – Executive Tier Administrative Committee shall be designated as recording secretary; all such records, together with such documents and instruments as may be necessary for the administration of the Plan, shall be preserved by the Plan Administrator.

		
	(b)
	Subject to the limitations contained in this Plan, the Plan Administrator shall be empowered from time to time, in its discretion, to establish rules for the exercise of the duties imposed upon the Plan Administrator under the Plan.

9.3 Agents

		
	(a)
	The Board, BMT, or the Plan Administrator may delegate such of its powers and duties as it deems desirable to any person, in which case every reference herein made to the Board, BMT, or the Plan Administrator (as applicable) shall be deemed to mean or include the delegated persons as to matters within their jurisdiction.

10 

		
	(b) 
	The Board, BMT, or the Plan Administrator may also appoint one or more persons or agents to aid it in carrying out its duties and delegate such of its powers and duties as it deems desirable to such persons or agents.

		
	(c)
	The Board, BMT, or the Plan Administrator may employ such counsel, auditors, and other specialists and such clerical and other services as it may require in carrying out the provisions of the Plan, with the expenses therefore paid, as provided in Section 9.4.

9.4 Compensation and Expenses

		
	(a) 
	All expenses of administering the Plan shall be paid by BMT. 

9.5 Plan Administrator’s Powers and Duties

The Plan Administrator shall have such powers and duties as may be necessary to discharge its functions hereunder, including the following:

		
	(a)
	To engage actuaries, attorneys, accountants, appraisers, brokers, consultants, administrators, physicians or other persons and to rely upon the reports, advice, opinions or valuations of any such person except as required by law;

		
	(b) 
	To adopt administrative rules of the Plan that are not inconsistent with the Plan or applicable law and to amend or revoke any such rule;

		
	(c)
	To construe the Plan and the administrative rules of the Plan;

		
	(d) 
	To determine questions of eligibility of Plan participants and beneficiaries;

		
	(e)
	To determine entitlement to a benefit and to distributions or other rights of Employees and Eligible Employees;  

		
	(f) 
	To make findings of fact as necessary to make any determinations and decisions in the exercise of such discretionary duty, power and responsibility;

		
	(g) 
	To appoint claims and review officials to conduct claims procedures;

		
	(h) 
	To comply with the reporting and disclosure requirements of ERISA and other applicable law with respect to the Plan; 

		
	(i)
	To establish and maintain all Plan documents, provided legal approval has been obtained from BMT’s legal counsel; and

		
	(j)
	To delegate any duty, power or requirements to any person or persons. 

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9.6 Plan Administrator’s Decisions Conclusive; Exclusive Benefit

The Plan Administrator shall have the exclusive right and discretionary authority to interpret the terms and provisions of the Plan and to resolve all questions arising thereunder, including the right to resolve and remedy ambiguities, inconsistencies, or omissions in the Plan, provided, however, that the construction necessary for the Plan to conform to the Code and ERISA shall in all cases control. Benefits under this Plan will be paid only if the Plan Administrator decides in its discretion that the Eligible Employee is entitled to them. Any and all disputes with respect to the Plan that may arise involving Eligible Employees shall be referred to the Plan Administrator, and its decisions shall be final, conclusive, and binding, except to the extent found by a court of competent jurisdiction to constitute an abuse of discretion. All findings of fact, interpretations, determinations, and decisions of the Plan Administrator in respect of any matter or question arising under the Plan shall be final, conclusive, and binding upon all persons, including, without limitation, Employees, and any and all other persons having, or claiming to have, any interest in or under the Plan and shall be given the maximum possible deference allowed by law. The Plan Administrator shall administer the Plan for the exclusive benefit of Eligible Employees.

9.7 Indemnity

		
	(a)
	BMT (including any Successor Employer, as applicable, including a Successor by merger) shall indemnify and hold harmless each of the following persons (“Indemnified Persons”) under the terms and conditions of Section 9.7(b):

		
	(1) 
	       The Plan Administrator; and

		
	(2) 
	Each Employee, former Employee, current and former members of the Plan Administrator, or current or former members of the Board who has, or had, responsibility (whether by delegation from another person, an allocation of responsibilities under the terms of this Plan document, or otherwise) for a fiduciary duty, a non-fiduciary settlor function (such as deciding whether to approve a plan amendment), or a non-fiduciary administrative task relating to the Plan.

		
	(b) 
	BMT shall indemnify and hold harmless each Indemnified Person against any and all claims, losses, damages, and expenses, including reasonable attorneys’ fees and court costs, incurred by that person on account of his or her good-faith actions or failures to act with respect to his or her responsibilities relating to the Plan. BMT’s indemnification shall include payment of any amounts due under a settlement of any lawsuit or investigation, but only if BMT agrees to the settlement.

		
	(1) 
	An Indemnified Person shall be indemnified under this Section 9.7 only if he or she notifies an Appropriate Person (defined below) at BMT of any claim asserted against or any investigation of the Indemnified Person that relates to the Indemnified Person’s responsibilities with respect to the Plan.

		
	(A)
	A person is an “Appropriate Person” to receive notice of the claim or investigation if a reasonable person would believe that the person notified would initiate action to protect the interests of BMT in response to the Indemnified Person’s notice.

12 

		
	(B)
	The notice must be provided in writing. The notice must be provided to the Appropriate Person promptly after the Indemnified Person becomes aware of the claim or investigation. No indemnification shall be provided under this Section 9.7 to the extent that BMT is materially prejudiced by the unreasonable delay of the Indemnified Person in notifying an Appropriate Person of the claim or investigation.

		
	(2) 
	An Indemnified Person shall be indemnified under this Section 9.7 with respect to attorneys’ fees, court costs, or other litigation expenses or any settlement of such litigation only if the Indemnified Person agrees to permit BMT to select counsel and to conduct the defense of the lawsuit and agrees not to take any action in the lawsuit that BMT believes would be prejudicial to BMT’s interests.

		
	(3) 
	No Indemnified Person, including an Indemnified Person who is a Former Eligible Employee, shall be indemnified under this Section 9.7 unless he or she makes himself or herself reasonably available to assist BMT with respect to the matters in issue and agrees to provide whatever documents, testimony, information, materials, or other forms of assistance that BMT shall reasonably request.

		
	(4) 
	No Indemnified Person shall be indemnified under this Section 9.7 with respect to any action or failure to act that is judicially determined to constitute or be attributable to the gross negligence or willful misconduct of the Indemnified Person.

		
	(5)
	Payments of any indemnity under this Section 9.7 shall be made only from assets of BMT. The provisions of this Section 9.7 shall not preclude or limit such further indemnities or reimbursement under this Plan as allowable under applicable law, as may be available under insurance purchased by BMT, or as may be provided by BMT under any by-law, agreement or otherwise, provided that no expense shall be indemnified under this Section 9.7 that is otherwise indemnified by BMT, by an insurance contract purchased by BMT, or by this Plan.

9.8 Insurance

BMT may authorize the purchase of insurance to cover any liabilities or losses occurring by reason of the act or omission of any fiduciary. To the extent permitted by law, BMT may purchase insurance covering any fiduciary for any personal liability of such fiduciary with respect to any fiduciary responsibilities under this Plan. Any fiduciary may purchase insurance for his or her own account covering any personal liability under this Plan.

9.9 Fiduciaries

		
	(a)
	The fiduciaries named in this Plan shall have only those specific powers, duties, responsibilities, and obligations as are specifically given to them under this Plan. BMT shall have the sole responsibility for making the payments specified under the Plan.

		
	(b) 
	The Plan Administrator shall be the named fiduciary under the Plan.

		
	(c)
	A fiduciary may rely upon any direction, information, or action of another fiduciary as being proper under this Plan and is not required under this Plan to inquire into the propriety of any such direction, information, or action. It is intended under this Plan that each fiduciary shall 

13 

be responsible for the proper exercise of his, her, or its own powers, duties, responsibilities, and obligations under this Plan and shall not be responsible for any act or failure to act of another fiduciary.

		
	(d) 
	Any person or group of persons may serve in more than one fiduciary capacity, with respect to the Plan. Nothing in this Section 9.9 shall be interpreted as preventing a fiduciary from properly delegating or allocating its responsibilities to other appropriate persons, in accordance with this Plan.

9.10 Notices

Each Eligible Employee shall be responsible for furnishing to BMT his or her current address. The Eligible Employee shall also be responsible for notifying BMT of any change in the above information. If an Eligible Employee does not provide the above information to BMT, the Plan Administrator may rely on the address of record of the Eligible Employee on file with BMT’s Human Resources Department.

All notices or other communications from the Plan Administrator to an Eligible Employee, shall be deemed given and binding upon that person for all purposes of the Plan when delivered to, or when mailed first-class mail, postage prepaid, and addressed to that person at his or her address last appearing on the Plan Administrator’s records, and the Plan Administrator, and BMT shall not be obliged to search for or ascertain his or her whereabouts.

All notices or other communications from an Employee required or permitted under this Plan shall be provided to the person specified by the Plan Administrator, using such procedures as are prescribed by the Plan Administrator. The Plan Administrator may require that the oral notice or communication be provided by telephoning a specific telephone number and, after calling that telephone number, by following a specified procedure. Any oral notice or oral communication from an Employee that is made in accordance with procedures prescribed by the Plan Administrator shall be deemed to have been duly given when all information requested by the person specified by the Plan Administrator is provided to such person, in accordance with the specified procedures.

9.11 Data
All persons entitled to benefits from the Plan must furnish to the Plan Administrator such documents, evidence, or information, as the Plan Administrator considers necessary or desirable for the purpose of administering the Plan, and it shall be a condition of the Plan that each such person must furnish such information and sign such documents as the Plan Administrator may require (such as the Release) before any benefits become payable from the Plan.

9.12 Claims Procedure

All decisions made under the procedure set out in this Section 9.12 shall be final, and there shall be no further right of appeal. No lawsuit may be initiated by any person before fully pursuing and exhausting the procedures set out in this Section 9.12, including the appeal permitted pursuant to Section 9.12(c).

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	(a)
	The right of an Employee or any other person entitled to claim a benefit under the Plan (collectively “Claimants”) shall be determined by the Plan Administrator, provided, however, that the Plan Administrator may delegate its responsibility to any person.

		
	(1) 
	The Claimant (or an authorized representative of a Claimant) may file a claim for benefits by written notice to the Plan Administrator. The Plan Administrator shall establish procedures for determining whether a person is authorized to represent a Claimant.

		
	(2) 
	Any claim for benefits under the Plan, pursuant to this Section 9.12, shall be filed with the Plan Administrator no later than 365 days after the date of the Employee’s Termination of Employment. The Plan Administrator in its sole discretion shall determine whether this limitation period has been exceeded.

		
	(3) 
	Notwithstanding anything to the contrary in this Plan, the following shall not be a claim for purposes of this Section 9.12:

		
	(A)
	A request for determination of eligibility, participation, or benefit calculation under the Plan without an accompanying claim for benefits under the Plan. The determination of eligibility, participation, or benefit calculation under the Plan may be necessary to resolve a claim, in which case such determination shall be made in accordance with the claims procedures set forth in this Section 9.12;

		
	(B)
	Any casual inquiry relating to the Plan, including an inquiry about benefits or the circumstances under which benefits might be paid under the Plan;

		
	(C)
	A claim that is defective or otherwise fails to follow the procedures of the Plan (e.g., a claim that is addressed to a party other than the Plan Administrator or an oral claim); or

		
	(D)
	An application or request for benefits under the Plan.

		
	(b) 
	If a claim for benefits is wholly or partially denied, the Plan Administrator shall, within a reasonable period of time, but no later than 90 days after receipt of the claim, notify the Claimant of the denial of benefits. If special circumstances justify extending the period up to an additional 90 days, the Claimant shall be given written notice of this extension within the initial 90-day period, and such notice shall set forth the special circumstances and the date a decision is expected. A notice of denial:

(1)     Shall be written in a manner calculated to be understood by the Claimant; and
(2) Shall contain:
		
	(A)
	The specific reasons for denial of the claim;

		
	(B)
	Specific reference to the Plan provisions on which the denial is based;

		
	(C)
	A description of any additional material or information necessary for the Claimant to perfect the claim, along with an explanation as to why such material or information is necessary; and

15 

		
	(D)
	An explanation of the Plan’s claim review procedures and the time limits applicable to such procedures, including a statement of the Claimant’s right to bring a civil action under ERISA section 502(a) following an adverse determination on review.

		
	(c)
	Within 60 days of the receipt by the Claimant of the written denial of his or her claim or, if the claim has not been granted, within a reasonable period of time (which shall not be less than the 90 or 180 days described in Section 9.12(b)), the Claimant (or an authorized representative of a Claimant) may file a written request with the Plan Administrator that it conduct a full review of the denial of the claim. In connection with the Claimant’s appeal, upon request, the Claimant may review and obtain copies of all documents, records and other information relevant to the Claimant’s claim for benefits (but not including any document, record or information that is subject to any attorney–client or work–product privilege) and may submit issues and comments in writing. Whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to U.S. Department of Labor regulations codified at 29 C.F.R. Section 2560. The Claimant may submit written comments, documents, records, and other information relating to the claim for benefits. All comments, documents, records, and other information submitted by the Claimant shall be taken into account in the appeal without regard to whether such information was submitted or considered in the initial benefit determination.

		
	(d) 
	The Plan Administrator shall deliver to the Claimant a written decision on the claim promptly, but no later than 60 days after the receipt of the Claimant’s request for such review, unless special circumstances exist that justify extending this period up to an additional 60 days. If the period is extended, the Claimant shall be given written notice of this extension during the initial 60-day period and such notice shall set forth the special circumstances and the date a decision is expected. The decision on review of the denial of the claim

		
	(1) 
	Shall be written in a manner calculated to be understood by the Claimant;

		
	(2) 
	Shall include specific reasons for the decision;

		
	(3) 
	Shall contain specific references to the Plan provisions on which the decision is based;

		
	(4) 
	Shall contain a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the Claimant’s claim for benefits. Whether a document, record, or other information is relevant to a claim for benefits shall be determined by reference to U.S. Department of Labor regulations codified at 29 C.F.R.  Section 2560; and

		
	(5)
	Shall contain a statement of the Claimant’s right to bring a civil action under ERISA section 502(a) following an adverse determination on review.

		
	(e)
	No lawsuit may be initiated by any person before fully pursuing the procedures set out in this Section 9.12, including the appeal permitted pursuant to Section 9.12(c). In addition, no legal action may be commenced later than 365 days subsequent to the date of the written response of the Plan Administrator to a Claimant’s request for review pursuant to Section 9.12(d).

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9.13 Effect of a Mistake

In the event of a mistake or misstatement as to the eligibility, participation, or service of any Employee or the amount of payments made or to be made to an Eligible Employee, the Plan Administrator shall, if possible, cause to be withheld or accelerated or otherwise make adjustment of the amounts of payments as will, in its sole judgment, result in the Eligible Employee’s receiving the proper amount of payments under the Plan. No withholding or acceleration will be done unless BMT determines that the Pay Continuation Benefits subject to acceleration or other adjustment are treated as being paid from a separation pay arrangement that is exempt from Code section 409A and such acceleration or other adjustment will not trigger an excise tax under Code section 409A(a)(1)(B).

Article 10. Miscellaneous Provisions

10.1 No Enlargement of Employee Rights

This Plan is strictly a voluntary undertaking on the part of BMT and shall not be deemed to constitute a contract between BMT with any Employee or to be consideration for, or an inducement to, or a condition of, the employment of any Employee. Nothing contained in the Plan shall be deemed to give any Employee the right to be retained in the service of BMT or any Affiliate or to interfere with the right of any of them to discharge or retire any person at any time. No one shall have any right to benefits, except to the extent provided in this Plan.

10.2 No Examination or Accounting

Neither this Plan nor any action taken thereunder shall be construed as giving any person the right to an accounting or to examine the books or affairs of BMT, or an Affiliate or a U.S.  Subsidiary.

10.3 Records Conclusive

The records of BMT shall be conclusive in respect to all matters involved in the administration of the Plan.

10.4 Code Section 409A

Notwithstanding any provision of this Plan to the contrary, the Plan Administrator shall administer this Plan in a manner designed to comply with Code section 409A and the Plan Administrator shall disregard any Plan provision if the Plan Administrator determines that application of such Plan provision would subject the Eligible Employee to additional tax liability under Code section 409A(a)(1)(B).

10.5 Service of Legal Process

The General Counsel of BMT is hereby designated as agent(s) of the Plan for the purpose of receiving legal process.

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10.6 Governing Law

(a)         The Plan shall be construed, administered, and governed in all respects under the applicable laws of the Commonwealth of Pennsylvania, except to the extent pre-empted by federal law.

		
	(b)
	Upon any change in the law or other determination that any term, condition or other provision of the Plan has been altered in any way, the Plan Administrator shall administer this Plan in accordance with such change, notwithstanding the terms of the Plan pending an amendment to this Plan.

10.7 Severability

If any provision of this Plan is held illegal or invalid for any reason, such illegality or invalidity will not affect the remaining provisions; instead, each provision is fully severable, and the Plan will be construed and enforced as if any illegal or invalid provision had never been included.

10.8 Missing Persons

The Plan Administrator shall establish rules if the Plan Administrator is unable to make payment of a benefit due under the terms of the Plan to an Eligible Employee because the whereabouts of the Eligible Employee cannot be ascertained.

10.9 Facility of Payment

Every person receiving or claiming benefits under this Plan is presumed to be mentally competent and of age until the date on which the Plan Administrator receives a written notice, in a form and manner acceptable to it, that such person is mentally incompetent or a minor, and that a guardian or other person legally vested with the care of such person or his or her estate has been appointed.

However, if the Plan Administrator should find that any person to whom a benefit is payable under this Plan is unable to care for his or her affairs because of any incompetency or is a minor, any payment due (unless a prior claim was made by a duly appointed legal representative) may be paid to the spouse, a child, a parent, or a brother or sister, or to any other person or institution that the Plan Administrator determines to have incurred expense for such person otherwise entitled to payment. To the extent permitted by law, any such payment so made shall be a complete discharge of any liability therefore under the Plan.

If a guardian of the estate or other person legally vested with the care of the estate of any person receiving or claiming benefits under the Plan is appointed by a court of competent jurisdiction, payments shall be made to such guardian or other person provided that proper proof of appointment and continuing qualification is furnished in a form and manner suitable to the Plan Administrator. To the extent permitted by law, such guardian or other person may act for the Eligible Employee and make any election required of or permitted by the Eligible Employee under this Plan, and such action or election shall be deemed to have been done by the Eligible Employee, and benefit payments 

18 

may be made to such guardian or other person and any such payment shall be a complete discharge of any such liability under the Plan.

If an Eligible Employee dies while benefits remain unpaid, the Plan Administrator may, at its discretion, make direct payment to the lawfully appointed representative of the Eligible Employee’s estate.
10.10 General Restrictions Against Alienation
The interest of any Eligible Employee under this Plan shall not in any event be subject to sale, assignment, or transfer, and each Eligible Employee is hereby prohibited from anticipating, encumbering, assigning, or in any manner alienating his or her interest hereunder and is without power to do so; provided, however, this provision shall not restrict the power or authority of the Plan Administrator, in accordance with the applicable provisions of the Plan, to disburse funds to the legally appointed guardian, executor, administrator, or personal representative of any Eligible Employee or pursuant to a valid domestic relations order certified and issued by a court of competent jurisdiction.  If any person attempts to take any action contrary to this Section 10.10, such action shall be void, and BMT may disregard such action and is not in any manner bound thereby, and it shall suffer no liability for any such disregard thereof. If the Plan Administrator is notified that any Eligible Employee has been adjudicated bankrupt or has purported to anticipate, sell, transfer, assign, or encumber any Plan distribution or payment, voluntarily or involuntarily, the Plan Administrator shall hold or apply such distribution or payment or any part thereof to, or for the benefit of, such Eligible Employee in such manner as the Plan Administrator finds appropriate.
10.11 Gender and Number
Except as otherwise indicated by the context, any masculine or feminine terminology shall also include the opposite gender, and the definition of any term in the singular or plural shall also include the opposite number.
10.12 Counterparts
This Plan may be executed in any number of counterparts, each of which shall be deemed to be an original. All the counterparts shall constitute but one and the same instrument and may be sufficiently evidenced by any one counterpart.
10.13 Withholding
BMT may withhold, or require the withholding, from any payment that is made under this Plan of any federal, state, or local taxes required by law to be withheld with respect to such payment. If BMT (or other person required by law to withhold a portion of a payment) is unable to withhold the full amount required to be withheld, the Eligible Employee shall make a cash payment to BMT of the difference between the amount required to be withheld and the amount that BMT was able to withhold. If the Eligible Employee does not make a cash payment to BMT of the amount set forth above, then BMT may withhold from any other amounts payable to the Eligible Employee by BMT the additional amount that is required to be withheld with respect to any benefit under this Plan.

19

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