Document:

EXHIBIT 10.1

CLEARFIELD, INC.

 

COMPENSATION RECOUPMENT POLICY

 

Adopted September 23, 2021

 

	1.	PURPOSE
	 	 
	 	The Board of Directors (the “Board”) of Clearfield, Inc.
(the “Company”) has established this policy on the recovery and forfeiture of compensation (as may be amended from time to
time, this “Policy”) to appropriately align the interests of certain senior executives of the Company with those of the Company
and to create and maintain a culture that emphasizes integrity and accountability.

 

	2.	ADMINISTRATION
	 	 
	 	This Policy shall be administered by the Board, or, if so designated
by the Board, the Compensation Committee, in which case references herein to the Board shall be deemed references to the Compensation
Committee. Any determinations made by the Board shall be final, binding and conclusive on all affected individuals.

 

	3.	INDIVIDUALS SUBJECT TO RECOUPMENT POLICY
	 	 
	 	This Policy shall apply to (a) any current or former executive officer
(as defined in Rule 3b-7 of the Securities Exchange Act of 1934, as amended from time to time (the “Exchange Act”)), and (b)
such other senior executives of the Company who may from time to time be deemed subject to this Policy by the Board, in its sole discretion,
or as may be required under Exchange Act Section 10D (each, a “Covered Executive”).

 

	4.	COVERED COMPENSATION
	 	 
	 	This Policy shall apply to all incentive-based cash and equity compensation
grants awarded to a Covered Executive on or after October 1, 2021, or that vest or are paid out on or after October 1, 2021 (even if awarded
prior to such date), including, without limitation, annual bonuses and other short- and long-term cash incentives, stock options, restricted
stock, restricted stock units, performance shares, and performance share units (“Covered Compensation”). Except as described
in the preceding sentence, Covered Compensation paid or awarded to a Covered Executive prior to October 1, 2021 shall be subject to, as
applicable, the Company’s 2007 Stock Compensation Plan, as amended (the “2007 Plan”).

 

	5.	EXCESS INCENTIVE COMPENSATION
	 	 
	 	The term “Excess Incentive Compensation” shall mean the
portion of a Covered Executive’s Covered Compensation for the relevant period that exceeded the amount that would have been received
by the Covered Executive based on the restated financial results or the corrected level of performance goal achievement.

 

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	6.	RECOVERABLE COMPENSATION
	 	 
	 	The term “Recoverable Compensation” shall mean the maximum
amount of Covered Compensation that the Company, in its sole discretion, may recoup from a Covered Executive under Section 8(b).

 

	7.	COVERED EVENTS
	 	 
	 	The following events shall constitute “Covered Events”
for purposes of this Policy:
	 	 
	 	  a)	Restatement of Financials; Error in Calculation of Results/Payout.
               (i) A restatement of the Company’s financial results (other than a restatement caused by a change in applicable
               accounting rules or interpretations), or (ii) an error in the calculation of the achievement of a performance goal applicable
               to any Covered Compensation, or in the calculation of the payout of such Covered Compensation, where, in either case,
               (A) the payment or award (or the vesting of such award) of Covered Compensation was predicated upon the achievement of
               financial results or such performance goals, and (B) a lower payment or award would have been made to a Covered Executive
               (or lesser or no vesting would have occurred with respect to such award) based upon the restated financial results or
               the corrected level of performance goal achievement.
	 	 	 
	 	  b)	Detrimental Conduct. The Board’s determination, in good faith and
               in accordance with the terms of this Policy, that a Covered Executive has engaged in one or more of the following: (i)
               the commission of an act of fraud or dishonesty in the course of the Covered Executive’s employment that causes
               material financial or reputational harm to the Company; (ii) improper conduct by the Covered Executive including, but
               not limited to, fraud, unethical conduct, falsification of the Company’s records, unauthorized removal of property
               or information of the Company, theft, violent acts or threats of violence, unauthorized possession of controlled substances
               on the property of the Company, conduct causing material financial or reputational harm to the Company, or the use of
               property, facilities or services of the Company for unauthorized or illegal purposes; (iii) the improper disclosure by
               the Covered Executive of proprietary, privileged or confidential information of the Company or breach of a fiduciary duty
               owed to the Company; (iv) the commission of a criminal act by the Covered Executive, whether or not performed in the workplace,
               that constitutes a felony or a crime of comparable magnitude under applicable law as determined by the Company in its
               sole discretion, or that subjects, or if generally known, would subject, the Company to public ridicule or embarrassment;
               (v) the commission of an act or omission that causes the Covered Executive or the Company to be in violation of federal
               or state securities laws, rules or regulations; (vi) the material breach of a written policy applicable to associates
               of the Company including, but not limited to, policies prohibiting sexual harassment, policies prohibiting violation of
               federal, state and local nondiscrimination laws and regulations and the Company’s Corporate Governance Guidelines
               or Code of Ethics and Business Conduct; (vii) material breach of any written confidentiality or restrictive covenant agreements;
               or (viii) any other act or omission which constitutes “cause” for termination (as such term is defined in
               the Covered Executive’s employment agreement and/or equity award agreements with the Company).

 

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	8.	AMOUNTS SUBJECT TO RECOUPMENT
	 	 
	 	The Company, in its sole discretion, may seek to recoup the following
amounts in the event of the indicated Covered Event:
	 	 
	 	  a)	Covered Event Described in Section 7(a). If a Covered Event described
               in Section 7(a) occurs, then the Company may seek to recoup no more than a Covered Executive’s Excess Incentive
               Compensation for the relevant period.
	 	 	 
	 	  b)	Covered Event Described in Section 7(b). If a Covered Event described in Section
               7(b) occurs, then the Company may seek to recoup no more than a Covered Executive’s Covered Compensation for the
               “Recoupment Period.” The “Recoupment Period” shall mean the period beginning three-years prior
               to the date that the Board determined that a Covered Executive engaged in Detrimental Conduct and ending three years after
               the date that the Board determined that a Covered Executive engaged in Detrimental Conduct.

 

	9.	METHOD OF RECOUPMENT
	 	 
	 	To the extent permitted by applicable law, the Company may, as determined by the Board in its discretion, take any such actions as it deems necessary or appropriate if a Covered Event occurs, to recover Excess Incentive Compensation and Recoverable Compensation, as applicable, including, without limitation (and as applicable), (a) seeking recovery from a Covered Executive of Excess Incentive Compensation and Recoverable Compensation, (b) cancellation of any vested or unvested Covered Compensation awards granted to a Covered Executive not paid or otherwise settled prior to the date of determination, (c) seeking recovery of any gain realized on the vesting, exercise, settlement, sale, transfer, or other disposition of any equity-based Covered Compensation awards, (d) seeking recovery of any Covered Compensation that was previously paid to such Covered Executive, (e) offsetting, withholding or eliminating any form of compensation that could be paid or awarded to the Covered Executive after the date of determination, or (f) taking any other remedial and recovery action permitted by law, as determined by the Board. In addition, the Board may authorize legal action for breach of fiduciary duty or other violation of law and/or take such other action to enforce the Covered Executive’s obligations to the Company, as the Board deems appropriate.

                                                

                                               In each such instance, in determining what actions to take, the Board will take into account any factors that it considers appropriate or relevant. Generally, this review would include consideration of (in each case, to the extent applicable):

	 	 
	 	  a)	the Board’s view of the type or amount of Covered Compensation that would have been paid or awarded to the Covered Executive
had the financial results been properly reported or the level of performance goal achievement correctly calculated;
	 	 	 
	 	  b)	the nature of the Covered Event;

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	 	  c)	the conduct of the Covered Executive in connection with the Covered Event;
	 	 	 
	 	  d)	whether the assertion of a claim against the Covered Executive could prejudice the Company’s overall interests;
	 	 	 
	 	  e)	whether other penalties or punishments are being imposed on the Covered Executive in relation to the Covered Event, including by third
parties such as regulators or other authorities (provided, that the Board’s power to determine appropriate sanctions is in addition
to, and not in replacement of, sanctions imposed by such entities);
	 	 	 
	 	  f)	whether it would be impracticable to seek to recover the Covered Compensation (i.e., whether the expense paid to a third party to
assist in enforcement would exceed the amount to be recovered, or whether the recovery would violate home country law);
	 	 	 
	 	  g)	the tax treatment of the recovery and related matters; and
	 	 	 
	 	  h)	any other facts and circumstances that the Board deems relevant.

 

 

	10.	AMENDMENT OR TERMINATION
	 	 
	 	The Board may amend, modify, or terminate this Policy in whole or in
part at any time and from time to time in its sole discretion.

 

	11.	POLICY NOT EXCLUSIVE
	 	 
	 	Nothing in this Policy
will limit or restrict (a) the Company from providing for forfeiture or repayment of any amount of executive compensation under circumstances
not described herein, (b) the Company’s right to take action under the 2007 Plan, or (c) the Company’s right to take any action
with respect to any Covered Executive’s (or any other person’s) employment. Any right of recoupment under this Policy is in
addition to, and not in lieu of, any other remedies or rights of recoupment that may be available to the Company pursuant to the terms
of any similar policy in any employment agreement, equity award agreement, or similar agreement and any other legal remedies available
to the Company.

 

4EX-10.1

 Exhibit 10.1 

FORM OF 
 EXECUTIVE
SEVERANCE AGREEMENT 
 UNDER THE 

KRATON CORPORATION 

EXECUTIVE SEVERANCE PROGRAM 

This Severance Agreement with respect to participation under the Kraton Corporation Executive Severance Program (this
“Agreement”) is made this September     , 2021 by and between Kraton Corporation (the “Company”) and
                     (“Executive”). All capitalized terms not otherwise defined herein will have the meanings ascribed to them in
the Kraton Corporation Executive Severance Program (the “Severance Program”). 
 WHEREAS, the Executive has
contributed to the growth of the Company during Executive’s employment with the Company; 
 WHEREAS, the Executive is currently
eligible to participate in the Severance Program; 
 WHEREAS, the Company presently has the ability to amend the Severance Program to
remove the Executive as a participant in the Severance Program; and 
 WHEREAS, the Company wishes to assure the Executive that the
Executive will remain eligible for the promised benefits under the Severance Program in the event of a qualifying termination. 
 NOW,
THEREFORE, in consideration of the promises and the mutual agreements and covenants contained herein, the parties agree as follows: 

1.    Eligibility. Executive is hereby designated as a Participant (as defined in the Severance Program) in the
Severance Program and will remain a Participant from the date this Agreement is effective until the day following the 2nd anniversary of a Change in Control (as defined in the Severance Program)
(the “Protection Period”). 
 2.    Severance. As a Participant, Executive is eligible to
receive the severance benefits provided under the Severance Program in effect as of the date of this Agreement, subject to all terms and conditions of the Severance Program, including Executive experiencing a qualifying termination of employment
under the terms of the Severance Program. 
 3.    Payment. Notwithstanding anything to the contrary in the
Severance Program, Executive will receive any annual Base Salary continuation payments under Article III of the Severance Program that are exempt from Section 409A of the Internal Revenue Code of 1986, as amended (“Code
Section 409A”) as either “short term deferral” or “separation pay” in a single lump sum within 60 days following Executive’s Termination Date, subject to Executive’s execution and non-revocation of a waiver and release agreement as provided under Article III of the Severance Program. For the avoidance of doubt, any annual Base Salary continuation payments that are not exempt from Code
Section 409A will be paid pursuant to Articles III and V of the Severance Program. 
 4.    Amendment. The
Company may not amend the Severance Program during the Protection Period in any manner that negatively impacts Executive’s rights under the Severance Program, as such rights existed on the date of this Agreement, without Executive’s
express written consent. Notwithstanding the foregoing, this Agreement will become null and void and of no further force or effect if the transaction contemplated in that certain Merger Agreement executed in September 2021 does not close by
December 31, 2022. 
 5.    Governing Law. This Agreement will be governed by, construed and interpreted in
accordance with the laws of the State of Texas. 
 6.    Binding Effect. This Agreement will be binding upon the
Company and the Company’s affiliates and successors and Executive and Executive’s heirs, executors, administrators and successors.  

[Signature page follows] 

 IN WITNESS HEREOF, the Company and Executive have executed this Agreement to be effective as of the
date first written above. 
  

									
	KRATON CORPORATION	 		 	EXECUTIVE
					
	By:	 	     
	 		 	By:	 	     

		 	Name:	 		 	Date:
		 	Title:	 		 		 	
		 	Date:

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