Document:

Exhibit

Universal Display Corporation
EQUITY COMPENSATION PLAN

PERFORMANCE UNIT GRANT LETTER

THIS PERFORMANCE UNIT GRANT LETTER (the “Grant Letter”), dated as of March [  ], 201[3] (the “Grant Date”), is delivered by Universal Display Corporation (the “Company”), to [                ], a key employee of the Company or one of its subsidiaries (the “Grantee”).
RECITALS
WHEREAS, the Universal Display Corporation Equity Compensation Plan (the “Plan”) permits the grant of Performance Units to employees, non-employee directors, or consultants of the Company and its subsidiaries, in accordance with the terms and provisions of the Plan;
WHEREAS, the Company desires to grant Performance Units to the Grantee, and the Grantee desires to accept such Performance Units, on the terms and conditions set forth herein and in the Plan; 
WHEREAS, the Performance Units granted pursuant to this Grant Letter shall vest based on the attainment of performance goals related to total shareholder return and revenue growth, as described in Schedule A (“Performance Goals”); and  
WHEREAS, the applicable provisions of the Plan are incorporated into this Grant Letter by reference, including the definitions of terms contained in the Plan (unless such terms are otherwise defined herein).
NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, agree as follows:
		
	1.
	Grant of Performance Units.

Subject to the terms and vesting conditions hereinafter set forth, the Company hereby awards to the Grantee a target award of [          ] Performance Units (hereinafter, the “Target Award”) under the Plan.    
		
	2.
	Vesting.

(a)General Vesting Terms.  Except as set forth in Sections 2(b) and 2(c) below, the Grantee shall vest in a number of Performance Units based on the attainment of the Performance Goals as of the end of the performance period, provided that the Grantee remains employed by the Company or a subsidiary through March [  ], 2015 (the “Vesting Date”).  The performance period shall begin [January 1, 2013] and shall end [December 31, 2014] (the “Performance Period”).  The period beginning on [January 1, 2013] and ending on [March 7, 2015] shall be referred to as the “Vesting Period.”  Except as specifically provided for below in this Section 2, no Performance Units will vest for any reason prior to the Vesting Date, and in the event of a termination of the Grantee’s employment prior to the Vesting Date, the Grantee will forfeit all Performance Units that have not yet vested as of the termination date.  Except as provided in Section 2(c) below, if the Performance Goals are not attained at the end of the Performance Period, the Performance Units will be immediately forfeited.  Except as otherwise set forth in this Grant Letter, at the end of the Performance Period, the Committee will determine whether and to what extent the Performance Goals have been met and the amount earned with respect to the Performance Units, and will certify such attainment of the Performance Goals.  The Grantee may earn up to two hundred percent (200%) of the Target Award based on the attainment of the Performance Goals. 
(b)Death or Disability.  If the Grantee terminates employment during the Vesting Period because of the Grantee’s death or “Disability” (as defined below), the Grantee shall earn a pro-rata portion of the outstanding Performance Units based on attainment of the Performance Goals described on Schedule A, as determined following the end of the Performance Period (or as determined under Section 2(c), if applicable).  The pro-rated portion shall be determined based on the number of Performance Units earned based on the attainment of the Performance Goals during the Performance Period, multiplied by a fraction, the numerator of which is the number of days of service actually completed by the Grantee during the Vesting Period prior to such termination of employment, and the denominator of which is [796] (i.e., the number of days in the Vesting Period).  “Disability” shall mean that the Grantee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, as determined by the Committee in its discretion.   

(c)Corporate Changes.  In the event of a corporate change under Section 12 of the Plan, the Performance Units may vest as set forth in Section 12 of the Plan. 
(d)Termination other than due to Death or Disability.  Except as provided in Section 2(b), in the event of a termination of employment, the Grantee will forfeit all Performance Units that do not vest either before the termination date or on the termination date associated with such termination.  Except as provided in Section 2(b), no Performance Units will vest after the Grantee’s employment with the Company or a subsidiary has terminated for any reason.  In the event a Grantee’s employment is terminated by the Company or a subsidiary for cause, as determined by the Committee, all outstanding Performance Units held by such Grantee shall immediately terminate and be of no further force or effect.
3.Performance Units Account.
The Company shall establish a bookkeeping account on its records for the Grantee and shall credit the Grantee’s Performance Units to the bookkeeping account.
		
	4.
	Payment of Performance Units.

(a)If the Performance Units vest in accordance with Section 2(a) or Section 2(b), the Grantee shall be entitled to receive upon vesting the equivalent number of shares of common stock of the Company (“Common Stock”) corresponding to the vested Performance Units.  The shares of Common Stock shall be distributed in March [2015] after the Vesting Date and shall be subject to a one-year holding requirement.  Under the one-year holding requirement, the Grantee may not transfer, pledge, or assign the shares of Common Stock distributed pursuant to this Performance Unit until March [   , 2016], except as permitted by the Board in the event of a corporate transaction or under other circumstances as the Board deems appropriate. 
(b)If the Performance Units vest in accordance with Section 2(c) due to a corporate change as set forth in Section 12 of the Plan that qualifies as a “change in control event” under section 409A of the Code, the Grantee shall be entitled to receive the equivalent number of shares of Common Stock corresponding to the vested Performance Units as of the corporate change under Section 12 of the Plan.  If the corporate change as set forth in Section 12 of the Plan is not a “change in control event” under section 409A of the Code, distribution of the shares of Common Stock shall be made on the regular schedule set forth in Section 4(a), to the extent required under section 409A of the Code.
(c)In March [2015], for distributions under Section 4(a), or upon the closing date of the corporate change as set forth in Section 12 of the Plan, for distributions under Section 4(b), as applicable, each vested Performance Unit credited to the Grantee’s account shall be settled in stock as one share of Common Stock for every vested Performance Unit, and the Company shall deliver to the Grantee a stock certificate (which shall restrict the transfer, pledge, or assignment of the shares pursuant to the one-year holding requirement described in Section 4(a)), or make an appropriate book entry for such shares, for the number of shares of Common Stock equal to the number of vested Performance Units being settled, subject to payment of any federal, state, local, or foreign withholding taxes as described in Section 12 below, and subject to compliance with section 409A of the Code, if applicable.  The obligation of the Company to deliver the shares upon vesting shall be subject to the rights of the Company as set forth in the Plan and to all applicable laws, rules, regulations, and such approvals by governmental agencies as may be deemed appropriate by the Committee.
5.Certain Corporate Changes. 
If there is any change made to the Common Stock (whether by reason of a stock dividend, extraordinary dividend or distribution, recapitalization, stock split, combination of shares, exchange of shares, merger, reorganization, consolidation, reclassification, change in par value, or any other change in capital structure made without receipt of consideration), then unless such event or change results in the termination of all the Performance Units granted under this Grant Letter, the Committee shall proportionately adjust, as provided in the Plan, the number and class of shares underlying the Performance Units held by the Grantee to reflect the effect of such event or change in the Company’s capital structure in such a way as to prevent the enlargement or dilution of rights and benefits under the Performance Units.  Any adjustment that occurs under the terms of this Section 5 or the Plan will not change the timing or form of payment with respect to any Performance Units.
		
	6.
	No Stockholder Rights.  

The Grantee has no voting rights, no rights to receive dividends, and no other ownership rights and privileges of a stockholder with respect to the shares of Common Stock subject to the Performance Units prior to the delivery of shares of Common Stock after vesting.  Notwithstanding the foregoing, should any dividend or other distribution payable in cash be declared and paid on the outstanding Common Stock while one or more Performance Units remain subject to this award (i.e., those shares of Common Stock are not otherwise issued and outstanding for purposes of entitlement to the dividend or distribution), then a special book account shall be established for the Grantee and credited with a dividend equivalent to the actual dividend or distribution which would have been paid on those shares of Common Stock had they been issued and outstanding and entitled to that dividend or distribution.  No interest will be credited to any such account.  The dividend equivalents shall vest in accordance with the vesting provisions in effect hereunder for the particular shares of Common Stock to which they relate and shall be distributed to the Grantee (in cash or such other form as the Committee may deem appropriate) concurrently with the issuance of those vested shares of Common Stock, subject to applicable tax withholding.  In no event shall any dividend equivalents vest or become distributable unless the shares of Common Stock to which they relate vest in accordance with the terms of this Grant Letter.  

		
	7.
	Retention Rights.

Neither the award of Performance Units, nor any other action taken with respect to the Performance Units, shall confer upon the Grantee any right to continue in the employ or service of the Company or a subsidiary or shall interfere in any way with the right of the Company or a subsidiary to terminate Grantee’s employment or service at any time. 
		
	8.
	Restrictive Covenants.

(a)    The Grantee acknowledges and agrees that, during the Grantee’s employment with the Company and its affiliates, and for the twelve (12) month period following the Grantee’s termination of employment for any reason, the Grantee will not be employed for, engaged as a consultant or researcher for, or otherwise perform services for any business or enterprise directly engaged in, or with affiliates directly engaged in, the business of researching, developing, licensing, selling, distributing, marketing or otherwise commercializing organic light emitting device (“OLED”) technology, chemicals or manufacturing equipment.  The Grantee further agrees that, given the nature of the Company’s business and the locations of its clients, a worldwide geographic scope is appropriate and reasonable.
(b)    For purposes of this Agreement, the Grantee acknowledges and agrees that the terms “Confidential Information” and “Trade Secrets” shall mean information that the Company or any of its affiliates owns or possesses, that the Company or its affiliates have developed at significant expense and effort, that they use or that is potentially useful in the business of the Company or its affiliates, that the Company or its affiliates treat as proprietary, private or confidential, and that is not generally known to the public. The Grantee further acknowledges that the Grantee’s relationship with the Company is one of confidence and trust such that the Grantee has in the past been, and may in the future be, privy to Confidential Information and Trade Secrets of the Company or any of its affiliates.
(c)    The Grantee covenants and agrees that during the term of the Grantee’s employment by the Company and for a period to two (2) years following termination of employment for any reason, the Grantee shall not, directly or indirectly through others, (i) hire or attempt to hire any employee of the Company or any of its affiliates, (ii) solicit or attempt to solicit any employee of the Company or its affiliates to become an employee, consultant, or independent contractor to, for, or of any other person or business entity, or (iii) solicit or attempt to solicit any employee, or any consultant or independent contractor of the Company or any of its affiliates to change or terminate his or her relationship with the Company or any of its affiliates, unless in each case more than three months shall have elapsed between the last day of such person’s employment or service with the Company or any of its affiliates and the first date of such solicitation or hiring or attempt to solicit or hire.  If any employee, consultant, or independent contractor is hired or solicited by any entity that has hired or agreed to hire the Grantee, such hiring or solicitation shall be conclusively presumed to be a violation of this Grant Letter; provided, however, that any hiring or solicitation pursuant to a general solicitation conducted by an entity that has hired or agreed to hire the Grantee, or by a headhunter employed by such entity, which does not involve the Grantee, shall not be a violation of this Section 8(c).
(d)    The Grantee covenants and agrees that during the term of the Grantee’s employment by the Company or its affiliates and for a period to two (2) years following termination of employment for any reason, the Grantee shall not, either directly or indirectly through others:
(i)    solicit, divert, appropriate, or do business with, or attempt to solicit, divert, appropriate, or do business with, any customer for whom the Company or any of its affiliates provided goods or services within 12 months prior to the Grantee’s date of termination or any actively sought prospective customer of the Company or any of its affiliates for the purpose of providing such customer or actively sought prospective customer with services or products competitive with those offered by the Company or any of its affiliates during the Grantee’s employment with the Company or any of its affiliates, or 
(ii)    encourage any customer for whom the Company or any of its affiliates provided goods or services within 12 months prior to the Grantee’s date of termination to reduce the level or amount of business such customer conducts with the Company or any of its affiliates.
(e)    The Grantee acknowledges and agrees that the business of the Company and its affiliates is highly competitive, that the Confidential Information and Trade Secrets have been developed by the Company at significant expense and effort, and that the restrictions contained in this Section 8 are reasonable and necessary to protect the legitimate business interests of the Company and its affiliates.
(f)    Because the Grantee’s services are personal and unique and the Grantee has had and will continue to have access to and has become and will continue to become acquainted with Confidential Information and Trade Secrets, the parties to this Grant Letter acknowledge and agree that any breach by the Grantee of any of the covenants or agreements contained in Section 8 will result in irreparable injury to the Company or any of its affiliates, as the case may be, for which money damages could not adequately compensate such entity.  Therefore, the Company or any of its affiliates shall have the right (in addition to any other rights and remedies which it may have at law or in equity and in addition to the forfeiture requirements set forth in Section 8(g) below) to seek to enforce Section 8 and any of its provisions by injunction, specific performance, or other equitable relief, without bond and without prejudice to any other rights and remedies that the Company or any of its affiliates may have for a breach, or threatened breach, of the restrictive covenants set forth in Section 8.  The Grantee agrees that in any action in which the Company 

or any of its affiliates seeks injunction, specific performance, or other equitable relief, the Grantee will not assert or contend that any of the provisions of Section 8 are unreasonable or otherwise unenforceable.  The Grantee irrevocably and unconditionally (i) agrees that any legal proceeding arising out of this paragraph or the obligations set forth in this Agreement may be brought in the State Courts of the Commonwealth of Pennsylvania or the United States District Court for the Eastern District of Pennsylvania, (ii) consents to the non-exclusive jurisdiction of such court in any such proceeding, and (iii) waives any objection to the laying of venue of any such proceeding in any such court.  The Grantee also irrevocably and unconditionally consents to the service of any process, pleadings, notices, or other papers.
(g)    The Grantee acknowledges and agrees that in the event the Grantee breaches any of the covenants or agreements contained in this Section 8:
(i)    The Committee may in its discretion determine that the Grantee shall forfeit all of the outstanding Performance Units, and the outstanding Performance Units shall immediately terminate, and
(ii)    The Committee may in its discretion require the Grantee to return to the Company any shares of Common Stock received in settlement of the Performance Units; provided, that if the Grantee has disposed of any shares of Common Stock received in settlement of the Performance Units, then the Committee may require the Grantee to pay to the Company, in cash, the fair market value of such shares of Common Stock as of the date of disposition.  The Committee shall exercise the right of recoupment provided in this Section 8(g)(ii) within 180 days after the Committee’s discovery of the Grantee’s breach of any of the covenants or agreements contained in this Section 8.
(h)    If any portion of the covenants or agreements contained in this Section 8, or the application hereof, is construed to be invalid or unenforceable, the other portions of such covenants or agreements or the application thereof shall not be affected and shall be given full force and effect without regard to the invalid or unenforceable portions to the fullest extent possible.  If any covenant or agreement in this Section 8 is held to be unenforceable because of the duration thereof or the scope thereof, then the court making such determination shall have the power to reduce the duration and limit the scope thereof, and the covenant or agreement shall then be enforceable in its reduced form.  The covenants and agreements contained in this Section 8 shall survive the termination of this Agreement.
		
	9.
	Amendment.

This award may be amended by the Committee, in whole or in part, in accordance with the applicable terms of the Plan.
		
	10.
	Notice.

Any notice to the Company provided for in this Grant Letter shall be addressed to it in care of the Corporate Secretary of the Company, 375 Phillips Boulevard, Ewing, New Jersey 08618, and any notice to the Grantee shall be addressed to such Grantee at the current address shown on the payroll system of the Company or a subsidiary thereof, or to such other address as the Grantee may designate to the Company in writing.  Any notice provided for hereunder shall be delivered by hand, sent by telecopy or electronic mail, or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage and registry fee prepaid in the United States mail or other mail delivery service.  Notice to the Company shall be deemed effective upon receipt.  By receipt of this Grant Letter, Grantee hereby consents to the delivery of information (including without limitation, information required to be delivered to the Grantee pursuant to the applicable securities laws) regarding the Company, the Plan, and the Performance Units via the Company’s electronic mail system or other electronic delivery system.
		
	11.
	Incorporation of Plan by Reference.

This Grant Letter is made pursuant to the terms of the Plan, the terms of which are incorporated herein by reference, and shall in all respects be interpreted in accordance therewith.  The decisions of the Committee shall be conclusive upon any question arising hereunder.  The Grantee’s receipt of the Performance Units awarded under this Grant Letter constitutes such Grantee’s acknowledgment that all decisions and determinations of the Committee with respect to the Plan, this Grant Letter, and/or the Performance Units shall be final and binding on the Grantee, his or her beneficiaries, and any other person having or claiming an interest in such Performance Units.  The settlement of any award with respect to Performance Units is subject to the provisions of the Plan and to interpretations, regulations, and determinations concerning the Plan as established from time to time by the Committee in accordance with the provisions of the Plan.  A copy of the Plan will be furnished to each Grantee upon request.
		
	12.
	Income Taxes; Withholding Taxes.

The Grantee is solely responsible for the satisfaction of taxes and penalties that may arise in connection with the Performance Units pursuant to this Grant Letter.  At the time of taxation, the Company shall have the right to deduct from other compensation, or to withhold from the amounts payable under the Performance Units, including from shares of Common Stock, an amount equal to the federal (including FICA), state, local, and foreign income taxes and other amounts as may be required by law to be withheld with respect to the taxation of the Performance Units, provided that any share withholding shall not exceed the Grantee’s minimum applicable withholding tax rate for federal (including FICA), state, local, and foreign tax liabilities.

		
	13.
	Governing Law.

The validity, construction, interpretation, and effect of this instrument shall exclusively be governed by, and determined in accordance with, the applicable laws of the Commonwealth of Pennsylvania, excluding any conflicts or choice of law rule or principle.  
		
	14.
	Assignment.

This Grant Letter shall bind and inure to the benefit of the successors and assignees of the Company.  The Grantee may not sell, assign, transfer, pledge, or otherwise dispose of the Performance Units, except to a successor Grantee in the event of the Grantee’s death.
		
	15.
	Section 409A.

This Grant Letter is intended to comply with the applicable requirements of section 409A of the Code, as set forth in Section 22 of the Plan.
		
	16.
	Company Policies.

All Performance Units under this Grant Letter shall be subject to any applicable clawback or recoupment policies, share trading policies, and other policies that may be implemented by the Board from time to time.
IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute and attest this instrument, and the Grantee has placed his or her signature hereon, effective as of the date of the grant set forth above.

Universal Display Corporation

By:  ________________________________
Name:  [                  ]
Title:    [                  ]

I, [             ], hereby accept the award of the Performance Units described in this Grant Letter pursuant to the terms and conditions described herein, and I agree to be bound by all terms of the Plan and this Grant Letter.  I hereby agree that all decisions and determinations of the Committee with respect to the Performance Units shall be final and binding. 

Acknowledged and Agreed by the Grantee:

By: _______________________________
[                   ]

Date: _____________________________

Schedule A
Performance Goals
		
	1.
	Performance Goals.  The Performance Units shall vest based on continual employment (as described in the Grant Letter) and based on the Company’s achievement of two Performance Goals as follows:

•50% of the Target Award shall be based on the Company’s TSR (as defined below) as compared to the TSR of the companies in the Peer Group as described in Section 3 below during the Performance Period.
•50% of the Target Award shall be based on the Company’s cumulative revenue growth, as compared to the cumulative revenue growth of the companies in the Peer Group, as described in Section 4 below during the Performance Period.
		
	2.
	Calculation of TSR.  

(i)Comparative total shareholder return (“TSR”) means the Company’s TSR relative to the TSR of the companies in the Peer Group during the Performance Period.  At the end of the Performance Period, the TSR for the Company and each company in the Peer Group shall be calculated by dividing the “Closing Average Share Value” (as defined below) by the “Opening Average Share Value” (as defined below).  

(ii)The term “Closing Average Share Value” means the average value of the common stock for the 30 trading days ending on the last day of the Performance Period ([December 31, 2014]) (the “Closing 30-day period”), which shall be calculated as follows: (A) determine the closing price of the common stock on each trading date during the Closing 30-day period, (B) multiply each closing price as of that trading date by the applicable share number described below, and (C) average the amounts so determined for the Closing 30-day period.  The Closing Average Share Value shall take into account any dividends on the common stock for which the ex-dividend date occurred during the Performance Period, as if the dividend amount had been reinvested in common stock at the closing price on the ex-dividend date.  The share number in clause (B) above, for a given trading day, is the sum of one share plus the cumulative number of shares deemed purchased with such dividends.  
(iii)The term “Opening Average Share Value” means the average value of the common stock for the trading days during the 30 trading days ending on the last trading day prior to the beginning of the Performance Period ([January 1, 2013]) (the “Opening 30-day period”), which shall be calculated as follows: (A) determine the closing price of the common stock on each trading date during Opening 30-day period, (B) multiply each closing price as of that trading date by the applicable share number described below, and (C) average the amounts so determined for the Opening 30-day period.  The Opening Average Share Value shall take into account any dividends on the common stock for which the ex-dividend date occurred during the Opening 30-day period, as if the dividend amount had been reinvested in common stock at the closing price on the ex-dividend date.  The share number in clause (B) above, for a given trading day, is the sum of one share plus the cumulative number of shares deemed purchased with such dividends.
3.Performance Units Based on Comparative TSR to the Peer Group.  Performance for 50% of the Target Award of Performance Units (the “TSR Portion”) shall be based on the Company’s TSR as compared to the TSR of the companies that are in the Peer Group on the last day of the Performance Period, in accordance with the following: 
(i)The Peer Group for this purpose shall be the Nasdaq Electronics Components Index (each member a “Peer Company” and collectively, the “Peer Group”).
(ii)The Peer Group shall be subject to change as follows:
(a)  In the event of a merger, acquisition, or business combination transaction of a Peer Company in which the Peer Company is the surviving entity and remains publicly traded, the surviving entity shall remain a Peer Company.  
(b)  In the event of a merger, acquisition, or business combination transaction of a Peer Company, a “going private” transaction or similar event involving a Peer Company, or the liquidation of a Peer Company, in each case where the Peer Company is not the surviving entity or is no longer publicly traded, the company shall no longer be a Peer Company.
(iii)The TSR Portion will vest in accordance with the following:

	
		
	Total Shareholder Return

	Performance ranking vs. Peer Group
	Multiple of 50% of the Target Award

	90th to 99th percentile
	2.0x

	80th to 89th percentile
	1.75x

	70th to 79th percentile
	1.5x

	60th to 69th percentile
	1.25x

	50th to 59th percentile
	1.0x

	40th to 49th percentile
	.5x

	30th to 39th percentile
	.25x

	Below 30th percentile
	0x

If the Company’s TSR rank falls between the measuring points on the foregoing schedule, the percentage vesting will be based on linear interpolation.      
		
	4.
	Performance Units Based on Comparative Revenue Growth to the Peer Group.  Performance for 50% of the Target Award of Performance Units (the “Revenue Portion”) shall be earned based on the Company’s cumulative revenue growth over the Performance Period as compared to the cumulative revenue growth of the companies that are in the Peer Group on the last day of the Performance Period.  The Revenue Portion shall vest according to the following schedule:  

	
		
	Revenue Growth

	Performance ranking vs. Peer Group
	Multiple of 50% of the Target Award

	90th to 99th percentile
	2.0x

	80th to 89th percentile
	1.75x

	70th to 79th percentile
	1.5x

	60th to 69th percentile
	1.0x

	50th to 59th percentile
	.5x

	40th to 49th percentile
	.25x

	30th to 39th percentile
	0x

	Below 30th percentile
	0x

If the Company’s cumulative revenue growth rank falls between the measuring points on the foregoing schedule, the percentage vesting will be based on linear interpolation.
		
	5.
	General Vesting Terms.  Notwithstanding the foregoing, if the Company’s TSR is negative for the Performance Period, the Performance Units may not vest above the Target Award.  No vesting shall occur unless and until the Committee certifies that the Performance Goals have been achieved.  Any fractional Performance Unit resulting from the vesting of the Performance Units shall be rounded down to the nearest whole number.  Any portion of the Performance Units that does not vest as of the end of the Performance Period shall be forfeited as of the end of the Performance Period.  In no event shall the maximum number of Performance Units that may be payable pursuant to this Grant Letter exceed 200% of the Target Award.Exhibit

Exhibit 10.24

LPL FINANCIAL HOLDINGS, INC. 
NON-EMPLOYEE DIRECTOR DEFERRED COMPENSATION PLAN
1.DEFINED TERMS
Exhibit A, which is incorporated by reference, defines the terms used in this Plan and sets forth certain operational rules relating to those terms.
2.    PURPOSE; EFFECTIVE DATE 
The purpose of the Plan is to enable Directors to defer the receipt of certain compensation earned in their capacity as non-employee directors of the Company. The Plan is an unfunded deferred compensation plan that is intended to (a) comply with Section 409A and shall be construed, administered and interpreted accordingly and (b) be exempt from the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Plan shall be effective as of November 19, 2015.
3.    ADMINISTRATION
The Plan is administered by the Administrator.  The Administrator has discretionary authority, subject only to the express provisions of the Plan, to interpret the Plan; to prescribe forms, rules and procedures relating to the Plan; and to otherwise do all things necessary or appropriate to carry out the purpose of the Plan.  Determinations of the Administrator made under the Plan will be conclusive and will bind all parties.  No individual acting as Administrator may determine his or her own rights or entitlements under the Plan, if any.
4.    ELIGIBILITY AND PARTICIPATION
(a)    Commencement of Participation.  A Director will become a Participant on the day that his or her first deferral election under Section 5 becomes irrevocable, as provided for in Section 5(c).
(b)    Termination of Eligibility and Participation.  A Director shall remain a Participant until his or her Account has been fully distributed.
5.    DEFERRAL ELECTIONS
(a)    Director Equity Retainer.  A Director may defer the receipt of 100% of the Equity Retainer awarded to such Director as compensation for services to be performed in any calendar year by completing and delivering a deferral election in accordance with Section 5(c) below not later than December 31 of the preceding calendar year (or such earlier date as may be specified by the Administrator).  Subject to Section 5(d) below, any individual who becomes a Director after January 1 of any year may elect within 30 days after becoming a Director to defer the receipt of 100% of the pro-rata Equity Retainer awarded to such Director as compensation for services to be performed subsequent to such election in the remainder of such calendar year by completing and delivering a deferral election in accordance with Section 5(c) below within such 30-day period.  For the avoidance of doubt, a Director who elects to defer his or her Equity Retainer for services to be performed in a calendar year may defer no less than 100% of such Equity Retainer and any deferral election to the contrary shall be null and void and shall have no effect.  
(b)    Director Cash Retainer.  For any calendar year with respect to which a Director elects to defer his or her Equity Retainer pursuant to Section 5(a), the Director may also defer the receipt of 100% of the Cash Retainer payable as compensation for services to be performed in the same calendar year by completing and delivering a deferral election form in accordance with Section 5(c) below not later than December 31 of the preceding calendar year (or such earlier date as may be specified by the Administrator).  Subject to Section 5(d) below, any individual who becomes a Director after January 1 of any year, and elects to make a deferral of his or her Equity Retainer for the remainder of such calendar year pursuant to Section 5(a), may elect within 30 days after 

        

becoming a Director to defer the receipt of 100% of the pro-rata Cash Retainer payable as compensation for services to performed subsequent to such election in the remainder of such calendar year by completing and delivering a deferral election in accordance with Section 5(c) below within such 30-day period.  A Director’s Cash Retainer shall be treated as earned for services performed in a calendar year if paid with respect to services performed in such year.  For the avoidance of doubt, (i) a Director may not elect to defer a Cash Retainer payable for services to be performed in a calendar year pursuant to this Section 5(b) unless such Director has made a deferral of the Equity Retainer payable for services to be performed in the same calendar year pursuant to Section 5(a), and (ii) a Director who elects to defer his or her Cash Retainer for services to be performed in a calendar year may defer no less than 100% of such Cash Retainer and, in each case, any deferral election to the contrary shall be null and void and shall have no effect.
(c)    Form of Deferral Election.  Each deferral election under this Section 5 shall be made in writing on the form set forth on Exhibit B hereto, or in such other writing (including an electronic writing) as prescribed by the Administrator.  The Administrator may condition the effectiveness of any election upon the delivery by the Director of such other form or forms as the Administrator may prescribe.  A deferral election under this Section 5 for a particular calendar year shall become irrevocable once that year has begun or upon such earlier date as may be specified by the Administrator (or in the case of an initial year of participation under Section 5(a) or 5(b) for an individual who becomes a Director after January 1 of any calendar year, once the 30-day initial election period has expired).  Any election submitted in accordance with this Section 5 shall remain in effect only for the calendar year following the year in which the election was made.  
(d)    Limitation on Mid-Year Elections.  Any individual who becomes a Director after January 1 of any year and who already participates or is eligible to participate in (including, except to the extent otherwise provided in Section 1.409A-2(a)(7) of the Treasury Regulations, an individual who has any entitlement, vested or unvested, to payments under) any other nonqualified deferred compensation plan that would be required to be aggregated with the Plan for purposes of Section 1.409A-1(c)(2) of the Treasury Regulations shall not be treated as eligible for the mid-year election rules of this Section 5 with respect to the Plan, even if he or she had never previously been eligible to participate in the Plan itself.
6.    ACCOUNTS
(a)    Establishment of Accounts.  The Company shall maintain an Account on behalf of each Participant and shall make additions to and subtractions from such Account as provided herein.
(b)    Investment in Stock Units.  For each Equity Retainer and Cash Retainer deferred by a Director under Section 5, there shall be credited to a Participant's Account a number of Stock Units that is equal to the quotient obtained by dividing (i) the dollar amount of such deferred Cash Retainer or Equity Retainer by (ii) the fair market value of a share of Stock (as determined in accordance with the Policy and the Equity Plan) on the date the Cash Retainer or Equity Retainer then being allocated to the Account would otherwise have been paid (or, in the case of any deferred Equity Retainer, granted) to the Participant, rounded down to the nearest whole number of Stock Units. 
(c)    Dividends.  On the payment date of any cash dividend with respect to Stock, the number of vested and unvested Stock Units credited to a Participant's Account shall be increased by that number of Stock Units which is equal to the quotient obtained by dividing (i) the Dividend Amount by (ii) the fair market value of a share of Stock (as determined in accordance with the Policy and the Equity Plan) on the payment date, rounded down to the nearest whole number of Stock Units.  In the case of any dividend declared on Stock which is payable in Stock, a Participant's Account shall be increased by that number of Stock Units which is equal to the product of (x) the number of Stock Units credited to the Participant's Account on the related dividend record date and (y) the number of shares of Stock (including any fraction thereof) declared as a dividend with respect to a share of Stock, rounded down to the nearest whole number of Stock Units.
(d)    Stock Units credited to a Participant’s Account pursuant to this Section 6 shall be considered awards of Stock Units granted under the Equity Plan and the shares of Stock issuable upon the 

-2-

        

distribution of a Participant’s Account shall be counted against the share reserve of the Equity Plan in accordance with Section 4 of the Equity Plan.  Stock Units credited to a Participant’s Account shall be subject to adjustment in accordance with Section 7 of the Equity Plan and in the event of a Change in Control that is a Covered Transaction (within the meaning of the Equity Plan), the provisions of Section 7 of the Equity Plan shall apply to the Stock Units credited to a Participant’s Account in a manner consistent with the requirements of Section 409A of the Code.  In all other respects, Stock Units credited to a Participant’s Account and, the Stock issued upon distribution thereof shall be subject to the terms and conditions of the Equity Plan, which are incorporated herein by reference.  For the avoidance of doubt, no Stock has been separately reserved for issuance under the Plan
7.    VESTING
(a)    Stock Units Attributable to Cash Retainer.  A Participant shall be fully vested in the portion of his or her Account, including any Stock Units credited to such Participant’s account pursuant to Section 6(c), that is attributable to the deferral of a Cash Retainer.  
(b)    Stock Units Attributable to Equity Retainer.  A Participant shall become fully vested in the portion of his or her Account, including any Stock Units credited to such Participant’s account pursuant to Section 6(c), that is attributable to the deferral of an Equity Retainer on the date on which such Equity Retainer would have vested in accordance with the Policy if it had not been deferred pursuant to the Plan (for each such deferral of an Equity Retainer, the “Vesting Date”), subject, in all cases to the Director’s continuous service as a Director through the applicable Vesting Date.  Upon a termination of a Director’s service prior to a Vesting Date for any reason, any unvested portion of his or her Account, including any Stock Units credited to such Participant’s account pursuant to Section 6(c), shall be automatically and immediately forfeited.
(c)    Notwithstanding anything to the contrary in this Section 7, any unvested portion of a Director’s Account shall vest upon the occurrence of a Change in Control, provided that the Director remains in service at such date.  
8.    DISTRIBUTIONS
(a)    Form of Distribution.  The Company shall make a distribution to a Participant in the form of a single distribution of Stock equal in number to the number of vested Stock Units credited to such Participant’s Account.  
(b)    Timing of Distribution.  A distribution described in Section 8(a) shall be made to the Participant by the Company within thirty (30) days following the earlier of (i) such Participant’s Separation from Service for any reason (including by reason of death) or (ii) a Change in Control.
9.    AMENDMENT AND TERMINATION
The Administrator may at any time or times amend the Plan for any purposes which may at the time be permitted by law, and may at any time terminate the Plan; provided, however, that, except as otherwise expressly provided in the Plan, the Administrator may not, without the Participant’s consent, alter the rights of a Participant with respect to vested amounts, if any, standing to the credit of such Participant's Account prior to such alteration so as to affect materially and adversely the Participant’s rights with respect to such amount.  Any amendments to the Plan shall be conditioned upon stockholder approval only to the extent, if any, such approval is required by law (including the Code and applicable stock exchange requirements), as determined by the Administrator.  In addition, a Participant's deferral election in effect for the calendar year in which the termination of the Plan occurs shall not be cancelled for such year, and no distributions shall be made upon termination of the Plan, unless permitted by and in accordance with Section 409A of the Code.

-3-

        

10.    GOVERNING LAW
The provisions of the Plan and deferral election agreement under the Plan and all claims or disputes arising out of or based upon the Plan or any deferral election agreement under the Plan or relating to the subject matter hereof or thereof will be governed by and construed in accordance with the domestic substantive laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.
11.    MISCELLANEOUS
(a)    Unfunded Plan.  This Plan shall not be construed to create a trust of any kind or a fiduciary relationship between the Company and any Participant.  The Company shall not be obligated to fund its liabilities under the Plan and no person (including, without limitation, any Participant or any beneficiary thereof) shall have any claim against the Company or its assets in connection with the Plan other than as an unsecured general creditor.
(b)    No Warranties.  The Company does not warrant or represent in any way that the value of a Participant’s Account will increase or not decrease.  Each Participant (and his or her designated beneficiaries) assumes all risk in connection with participation in the Plan, including, without limitation, any change in such value.
(c)    Limitation on Liability.  Notwithstanding anything to the contrary in the Plan, neither the Company, nor any Affiliate, nor the Administrator, nor any person acting on behalf of the Company, any Affiliate, or the Administrator, shall be liable to any Participant or to the estate or beneficiary of any Participant by reason of any acceleration of income, or any additional tax (including any interest and penalties), asserted by reason of any deferral to satisfy the requirements of Section 409A of the Code.
(d)    No Stock Ownership.  Stock Units do not create any interest in any class of equity securities of the Company, and no Participant (or beneficiary) shall have any rights of a shareholder with respect to Stock Units (including, for the avoidance of doubt, any voting rights) by virtue of participation in the Plan, except as to shares of Stock actually distributed to him or her (or his or her designated beneficiaries) pursuant to the Stock Units credited to his or her Account. 
(e)    Designation of Beneficiary.  Subject to such rules and limitations as the Administrator may prescribe, each Participant from time to time may designate one or more persons (including a trust) to receive benefits payable with respect to the Participant under the Plan upon or after the Participant’s death, and may change such designation at any time. Each designation will revoke all prior designations by the same Participant, shall be in a form prescribed by the Administrator, and will be effective only when filed in writing with the Administrator during the Participant’s lifetime. In the absence of a valid beneficiary designation, or if, at the time any benefit payment is due to a beneficiary there is no living Beneficiary validly named by the Participant, the Administrator shall cause such benefit to be paid to the Participant’s estate. 
(f)    Inalienability of Benefits.  No benefit under, or interest in, the Plan or any Account shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to do so shall be void other than pursuant to a beneficiary designation filed under the Plan or by will or under the applicable laws of descent and distribution.
(g)    Status as a Director.  Nothing in the Plan shall be deemed to create any obligation on the part of the Board to nominate any Director for reelection by the Company's stockholders or to confer any right on the part of a Director to receive any, or any particular level, of Cash Retainer or Equity Retainer.
12.    As of November 19, 2015

-4-

Exhibit A

DEFINITION OF TERMS
“Account”: A book entry account established and maintained by the Company on behalf of a Participant to record his or her deferral of any Equity Retainer and Cash Retainer under the Plan and any additions thereto or subtractions therefrom credited or charged in accordance with Section 6 hereof.
“Administrator”: The Compensation Committee, which may delegate (i) to one or more of its members (or one or more other members of the Board) such of its duties, powers and responsibilities as it may determine and (ii) to such Employees or other persons as it determines such ministerial tasks as it deems appropriate In the event of any delegation described in the preceding sentence, the term “Administrator” shall include the person or persons so delegated to the extent of such delegation.
“Affiliate”: Any corporation or other entity that stands in a relationship to the Company that would result in the Company and such corporation or other entity being treated as one employer under Section 414(b) and Section 414(c) of the Code, except that in determining eligibility for the grant of an Award by reason of service for an Affiliate, Sections 414(b) and 414(c) of the Code shall be applied by substituting “at least 50%” for “at least 80%” under Section 1563(a)(1), (2) and (3) of the Code and Treas. Regs. § 1.414(c)-2; provided, that to the extent permitted under Section 409A, “at least 20%” shall be used in lieu of “at least 50%”; and further provided, that the lower ownership threshold described in this definition (50% or 20% as the case may be) shall apply only if the same definition of affiliation is used consistently with respect to all compensatory stock options or stock awards (whether under the Plan or another plan).  The Company may at any time by amendment provide that different ownership thresholds (consistent with Section 409A) apply but any such change shall not be effective for twelve (12) months.    
“Board”: The Board of Directors of the Company.
“Cash Retainer”: The portion of any annual retainer payable to a Director in cash, as set forth in the Policy, other than any portion of the annual retainer payable in cash solely in respect of a Director’s service on a committee of the Board (whether standing or otherwise) or as Lead Director of the Board. The portion of any annual retainer payable to a Director in cash shall be determined prior to taking into account the ability of a Director to make an election pursuant to the Policy to have such portion payable in Stock in lieu of cash.   
“Change in Control”  The consummation, after the Effective Date, of (i) any transaction or series of related transactions, whether or not the Company is party thereto, after giving effect to which in excess of 50% of the Company’s voting power is owned directly, or indirectly through one or more entities, by any person and its “affiliates” or “associates” (as such terms are defined in the Exchange Act Rules) or any “group” (as defined in the Exchange Act Rules) other than, in each case, the Company or any person and entity directly or indirectly controlling, controlled by or under common control with the Company (where control may be by management authority, contract or equity interest) immediately following the Effective Date  or (ii) a sale or other disposition of all or substantially all of the consolidated assets of the Company (each of the foregoing, a “Business Combination”), provided that, notwithstanding the foregoing, a Change in Control shall not be deemed to occur as a result of a Business Combination following which the individuals or entities who were beneficial owners of the outstanding securities entitled to vote generally in the election of directors of the Company immediately prior to such Business Combination beneficially own, directly or indirectly, 50% or more of the outstanding securities entitled to vote generally in the election of directors of the resulting, surviving or acquiring corporation in such transaction.
“Code”: The U.S. Internal Revenue Code of 1986, as from time to time amended and in effect, or any successor statute as from time to time in effect.
“Company”: LPL Financial Holdings Inc.
“Compensation Committee”: The Compensation and Human Resources Committee of the Board.
“Director”: A member of the Board who is not an employee of the Company or any of its Affiliates.        

A-1
 

        

 “Equity Plan”:  The LPL Financial Holdings Inc. Amended and Restated 2010 Omnibus Equity Incentive Plan, as amended from time to time.
“Equity Retainer”:  The portion of any annual retainer payable to a Director in the form of restricted shares of the Company’s common stock, as set forth in the Policy.
“Exchange Act”:  The Securities Exchange Act of 1934, as from time to time amended and in effect.
“Dividend Amount”:  An amount equal to the product of (i) the number of vested and unvested Stock Units credited to the Participant's Account on the date of a dividend and (ii) the amount of the dividend with respect to a share of Stock.
 “Participant”: A Director that participates in the Plan.
“Policy”:  The LPL Financial Holdings Inc. Non-Employee Director Compensation Policy, as may be amended from time to time and any successor policy thereto.
“Plan”: The LPL Financial Holdings Inc. Non-Employee Director Deferred Compensation Plan, as may be amended from time to time. 
“Separation from Service”: A “separation from service” (as defined at Section 1.409A-1(h) of the Treasury Regulations after giving effect to the presumptions contained therein) from the Company and all other corporations and trades or businesses, if any, that would be treated as a single “service recipient” with the Company under Section 1.409A-1(h)(3) of the Treasury Regulations; and correlative terms shall be construed to have a corresponding meaning.
“Stock”: A share of common stock of the Company, par value $0.001 per share.
“Stock Unit”: An unfunded and unsecured promise, denominated in shares of Stock, to deliver Stock or cash measured by the value of Stock in the future.

A-2

Exhibit B

DEFERRAL ELECTION AGREEMENT
THIS DEFERRAL ELECTION AGREEMENT, dated as of ____________, 201[5], is entered into by and between LPL Financial Holdings Inc. (the “Company”), a Delaware corporation, and the undersigned Director of the Company (the “Director”).  This Deferral Election Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and shall be construed, administered and interpreted accordingly.  All definitions shall have the meaning set forth in the Company’s Non-Employee Director Deferred Compensation Plan, as may be amended from time to time, except as otherwise set forth herein.
WHEREAS, the Director serves as a non-employee director of the Company and will earn remuneration in the form of an Equity Retainer and a Cash Retainer from the Company in that capacity pursuant to the Company’s Non-Employee Director Compensation Policy, as may be amended from time to time; and
WHEREAS, the Director and the Company desire to enter into an agreement to provide for the deferral of the Equity Retainer and, if applicable, the Cash Retainer in a manner consistent with the Plan and the requirements of Section 409A of the Internal Revenue Code. 
NOW, THEREFORE, it is agreed as follows:
1.  The Director irrevocably elects to defer receipt of: 
		
	□ 
	100% of the Equity Retainer awarded for services to be performed after the date of this Agreement [in calendar year 2016].

		
	□ 
	100% of the Equity Retainer awarded for services to be performed after the date of this Agreement [in calendar year 2016] and 100% of the Cash Retainer awarded for services to be performed after the date of this Agreement [in calendar year 2016].  

2.  The Director hereby acknowledges that (i) he or she may defer no less than 100% of the Equity Retainer and, if applicable, the Cash Retainer pursuant to Section 1 and (ii) an election to defer receipt of the Cash Retainer pursuant to Section 1 shall be valid only if the Director has elected to defer receipt of the Equity Retainer for the same calendar year.  In each case, any deferral election to the contrary shall be null and void and shall have no effect.
3.  An election to defer receipt of the Equity Retainer and, if applicable, the Cash Retainer shall remain in effect only for such Equity Retainer and, if applicable, such Cash Retainer earned in calendar year 2016.  
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its duly authorized officer, and Director has executed this Agreement, as of the date first written above.
LPL FINANCIAL HOLDINGS, INC.
By:       
 
 Director

B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00254-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00254-of-00352.parquet"}]]