Document:

exv10w59

Exhibit 10.59

APPLIED MATERIALS, INC.

APPLIED INCENTIVE PLAN

(Amended and Restated Effective August 13, 2010)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	1. ESTABLISHMENT AND PURPOSE
	 	 	-        1        -	 
	 
	2. DEFINITIONS
	 	 	-        1        -	 
	 
	3. PARTICIPATION AND DETERMINATION OF AWARDS
	 	 	-        3        -	 
	 
	3.1. Participation
	 	 	-        3        -	 
	3.2. Determination of Performance Goals
	 	 	-        3        -	 
	3.3. Determination of Payout Formula or Formulae
	 	 	-        3        -	 
	3.4. Determination of Payable Awards
	 	 	-        4        -	 
	3.5. Eligibility for Payable Awards
	 	 	-        4        -	 
	 
	4. PAYMENT OF AWARDS
	 	 	-        5        -	 
	 
	4.1. Right to Receive Payment
	 	 	-        5        -	 
	4.2. Form of Payment
	 	 	-        5        -	 
	4.3. Timing of Payment
	 	 	-        5        -	 
	4.4. Taxes
	 	 	-        5        -	 
	4.5. Payment in Event of Participant’s Death
	 	 	-        6        -	 
	4.6. Payment Through Affiliate
	 	 	-        6        -	 
	4.7. Clawback in Connection with a Material Negative Financial
Restatement
	 	 	-        6        -	 
	 
	5. ADMINISTRATION
	 	 	-        6        -	 
	 
	5.1. Committee is the Administrator
	 	 	-        6        -	 
	5.2. Committee Authority
	 	 	-        6        -	 
	5.3. Delegation by the Committee
	 	 	-        6        -	 
	 
	6. GENERAL PROVISIONS
	 	 	-        7        -	 
	 
	6.1. Nonassignability
	 	 	-        7        -	 
	6.2. Section 409A
	 	 	-        7        -	 
	6.3. No Effect on Employment
	 	 	-        7        -	 
	6.4. No Individual Liability
	 	 	-        7        -	 
	6.5. Integration
	 	 	-        7        -	 
	6.6. Amendment or Termination
	 	 	-        7        -	 
	6.7. Arbitration
	 	 	-        7        -	 
	6.8. Severability; Governing Law
	 	 	-        7        -	 
	 
	EXECUTION
	 	 	-        8        -	 

-i-

 

APPLIED MATERIALS, INC.

APPLIED INCENTIVE PLAN

(Amended and Restated Effective August 13, 2010)

	1.	 	ESTABLISHMENT AND PURPOSE

     Applied Materials, Inc. (the “Company”), having originally established the Applied Materials,
Inc. Applied Incentive Plan (the “Plan”) effective as of December 8, 2008, hereby amends and
restates the Plan in its entirety effective as of August 13, 2010. The Plan is intended to
increase shareholder value and the success of the Company and its affiliates by motivating Plan
Participants to perform to the best of their abilities, and to achieve and even exceed the
Company’s objectives. The Plan’s goals are to be achieved by providing Plan Participants with the
potential to receive incentive awards based on their meeting or exceeding performance goals set for
the Company, their business units, and/or the Participant.

	2.	 	DEFINITIONS

     The following terms will have the following meanings unless a different meaning is plainly
required by the context:

     2.1. “Affiliate” means any corporation or any other entity (including, but not limited
to, partnerships, joint ventures and limited liability companies) that the Committee determines to
be controlling, controlled by, or under common control with the Company.

     2.2. “Board” means the Company’s Board of Directors.

     2.3. “Cause” means a Participant’s (a) failure to perform (other than due to mental or
physical disability or death) the duties of his or her position (as they may exist from time to
time) to the reasonable satisfaction of the Company or an Affiliate after receipt of a written
warning or performance improvement plan; (b) any act of dishonesty taken in connection with the
Participant’s responsibilities as an employee that is intended to result in his or her personal
enrichment; (c) conviction or plea of no contest to a crime that negatively reflects on the
Participant’s fitness to perform his or her duties or harms the reputation or business of the
Company or of an Affiliate; (d) willful or reckless misconduct that is injurious to the reputation
or business of the Company or of an Affiliate; or (e) violation of a material policy of the Company
or of an Affiliate.

     2.4. “Committee” means the Company’s Chief Executive Officer (the “CEO”) or a
committee of one or more employees or other individuals appointed by the CEO to administer the
Plan. Notwithstanding the foregoing, in the case of a Section 16 Officer, “Committee” means the
HRCC.

     2.5. “Company” means Applied Materials, Inc., a Delaware corporation.

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     2.6. “Disability” means a Participant’s disability occurring during a Plan Year for
which the Participant actually receives benefits under a Company-sponsored long-term disability
plan.

     2.7. “HRCC” means the Human Resources and Compensation Committee of the Board.

     2.8. “Intentional Misconduct” means a Participant’s deliberate engagement in any one
or more of the following: (a) fraud, misappropriation, embezzlement or any other act or acts of
similar gravity resulting or intended to result directly or indirectly in substantial personal
enrichment to the Participant at the expense of the Company; (b) a material violation of a federal,
state or local law or regulation applicable to the Company’s business that has a significant
negative effect on the Company’s financial results; or (c) a material breach of the Participant’s
fiduciary duty owed to the Company that has a significant negative effect on the Company’s
financial results; provided, however, that a Participant’s exercise of judgment or actions (or
abstention from action), and/or decision-making will not constitute Intentional Misconduct if such
judgment, action (or abstention from action) and/or decision is, in the good faith determination of
the Board, reasonable based on the facts and circumstances known to the Participant at the time of
such judgment, action (or abstention from action) and/or decision; and such judgment, action (or
abstention from action) and/or decision is in an area or situation in which (i) discretion must be
exercised by the Participant or (ii) differing views or opinions may apply.

     2.9. “Participant” means, as to any Plan Year, an employee of the Company or its
Affiliate who (a) is in Grade 38, 39, x50 through Senior Executive, or x70 through x72, or (b) is
in Grade 37 and participated in the Plan as a Grade 37 during the immediately preceding Plan Year.
Notwithstanding the foregoing, the Committee, in its sole discretion, may determine that an
otherwise eligible employee will not be a Participant in the Plan for a given Plan Year.

     2.10. “Payable Award” means the award, if any, payable to a Participant under the Plan
for a Plan Year.

     2.11. “Payout Formula” or “Payout Formulae” means, as to any Plan Year, the
formula, or formulae or payout matrix established pursuant to Section 3.3 below to guide the
determination of any Payable Awards to be paid to Participants for that Plan Year. The formula or
matrix may differ from Participant to Participant and may differ from Plan Year to Plan Year.

     2.12. “Performance Goals” means the financial and/or operational goals applicable to a
Participant for a Plan Year. Performance Goals may differ from Participant to Participant and may
differ from Plan Year to Plan Year.

     2.13. “Plan” means the Applied Materials, Inc. Applied Incentive Plan as set forth in
this instrument and as hereafter amended from time to time.

     2.14. “Plan Year” means the fiscal year of the Company.

     2.15. “Retirement” means, with respect to any Participant, a termination of his or her
employment with the Company and all of its Affiliates after: (a) obtaining at least sixty (60)

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years of age and whose age plus Years of Service with the Company is not less than seventy (70) or
(b) obtaining at least sixty-five (65) years of age.

     2.16. “Section 16 Officer” means an employee of the Company or its Affiliate who is
subject to Section 16 of the Securities Exchange Act of 1934, as amended.

     2.17. “Section 409A” means Section 409A of the Internal Revenue Code of 1986, as
amended and the regulations and guidance thereunder, as they may be amended or modified from time
to time.

     2.18. “Senior Executive” means, as to any Plan Year, an officer of the Company with
grade level x10 and above, but excluding any officer selected by the HRCC to participate in the
Applied Materials, Inc. Senior Executive Bonus Plan for that Plan Year.

     2.19. “Years of Service” means the number of months (or a fraction thereof) from a
Participant’s latest hire date with the Company or its Affiliate to the date in question, divided
by twelve (12). The Participant’s latest hire date will be determined after giving effect to the
non-401(k) plan principles of North American Human Resources Policy No. 2-06, Re-Employment of
Former Employees/Bridging of Service, as such policy may be amended, revised or superseded from
time to time.

	3.	 	PARTICIPATION AND DETERMINATION OF AWARDS

     3.1. Participation. All eligible Participants will be automatically enrolled in the Plan each Plan Year; provided,
however, that an individual who first becomes a Participant after the first business day in August
of a Plan Year may not be enrolled in the Plan for that Plan Year. Participation in the Plan is
mandatory for any eligible Participants. Notwithstanding the foregoing, the Committee, in its sole
discretion, may determine that an otherwise eligible employee will not be a Participant in the Plan
for a given Plan Year. Accordingly, a Participant who participates in the Plan in a given Plan
Year is not in any way guaranteed or assured of participation in the Plan in any subsequent Plan
Year. Unless otherwise determined by the Committee, a Participant in this Plan is not eligible for
any other Company incentive plan, including, but not necessarily limited to, milestone plans,
profit sharing plans, the Discretionary Bonus Incentive Plan, sales incentive plans, etc.
Notwithstanding the foregoing, in determining whether an otherwise eligible employee shall become a
Participant with respect to a Plan Year, the Committee may, in its sole discretion, provide that an
individual will be deemed to have become a Participant on the first day of the Plan Year, if, as of
the first business day in August of such Plan Year, (a) he or she was an employee of an entity or
its predecessor that, by virtue of an acquisition or similar transaction by the Company, first
became an Affiliate after the first business day in August of such Plan Year, and (b) he or she
otherwise meets the definition of a “Participant” in Section 2.9 of the Plan.

     3.2. Determination of Performance Goals. The Committee, in its sole discretion, will establish written Performance Goals for each
Participant for the Plan Year.

     3.3. Determination of Payout Formula or Formulae. The Committee, in its sole discretion, will establish a Payout Formula or Payout Formulae for
purposes of serving as a guide for determining any Payable Awards. Each Payout Formula will (a) be
in writing, (b) be

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based on a comparison of actual performance against the Performance Goals, (c)
suggest a target Payable Award based on the assumption that the Performance Goals are met, and (d)
set a maximum Payable Award.

     3.4. Determination of Payable Awards.

          3.4.1. In General. After the end of each Plan Year, the Committee will determine the
extent to which each Participant exceeded, achieved, or missed his or her Performance Goals for the
Plan Year. The Payable Award for each Participant, if any, will be determined by the Committee, in
its sole discretion, with reference to the applicable Payout Formula. Notwithstanding any contrary
provision of the Plan, (a) the Committee, in its sole discretion, may increase, reduce, pro-rate or
eliminate a Participant’s Payable Award based on whatever factors it deems relevant, and (b) the
Board, in its sole discretion, may require a Participant to forfeit, return or reimburse the
Company all or a portion of his or her Payable Award in accordance with Section 4.7 of the Plan.
The fact that a Participant achieved or exceeded his or her Performance Goals will not, in any
respect, guarantee that the Participant will receive any Payable Award or any specific amount of
Payable Award. As a result, a Participant has no right or entitlement to any Payable Award unless
and until the Committee, in its sole discretion, has determined the Payable Award with respect to
the Participant.

          3.4.2. Discretion for One-Time Early Determination. Notwithstanding any contrary
provision of the Plan, during the 2010 Plan Year and except as provided below, the Committee may,
in its sole discretion, determine that a portion of a Participant’s potential Payable Award for the
2010 Plan Year will be determined and payable prior to the end of that Plan Year (the “FY 2010
Discretionary Early Payment”). If the Committee, in its sole discretion, determines that a
Participant will receive a FY 2010 Discretionary Early Payment, such determination will be subject
to the Committee’s discretion to increase, reduce, pro-rate or eliminate the Participant’s FY 2010
Discretionary Early Payment, if any, based on the factors the Committee deems relevant; provided,
however, that no FY 2010 Discretionary Early Payment made to any Participant may exceed forty
percent (40%) of the Participant’s target Payable Award based on the assumption that all the
Performance Goals are met at 100% levels for the fiscal year. The amount of any FY 2010
Discretionary Early Payment made to any Participant shall be deducted from the FY 2010 maximum
Payable Award determined in accordance with Section 3.3 of the Plan. Notwithstanding the foregoing,
no FY 2010 Discretionary Early Payments may be determined or made with respect to (a) any
Participant who has elected to defer any portion of his or her Payable Award (if any) for the 2010
Plan Year under the Applied Materials, Inc. 2005 Executive Deferred Compensation Plan, as amended,
or (b) any Section 16 Officer.

     3.5. Eligibility for Payable Awards. Except as provided in this Section, a Participant will be eligible for consideration for a
Payable Award only if he or she remains an employee of the Company or an Affiliate through the end
of the Plan Year. Notwithstanding the foregoing, the Committee, in its discretion, may determine
that a Participant will be eligible for consideration for a Payable Award (and subject to the
Committee’s authority under Section 3.4.1) if, during the Plan Year, the Participant’s employment
with the Company or an Affiliate is terminated on account of Retirement, Disability, death, or
involuntary termination by the Company or an Affiliate for a reason other than Cause. The
Committee, in its sole discretion,

- 4 -

 

may determine whether a Participant who has received any form of
disciplinary action, including but not limited to a written or final warning or is placed on a
Performance Improvement Plan during the Plan Year is entitled to a Payable Award for that Plan
Year.

	4.	 	PAYMENT OF AWARDS

     4.1. Right to Receive Payment. Any Payable Award will be paid solely from the Company’s general assets. Nothing in this Plan
will be construed to create a trust or to establish or evidence any Participant’s claim of any
right other than as an unsecured general creditor with respect to any payment to which he or she
may be entitled.

     4.2. Form of Payment. Any Payable Award under the Plan will be paid in cash, or its equivalent, in a single lump sum.

     4.3. Timing of Payment. Any Payable Award under the Plan will be paid as soon as administratively practicable after such
Payable Award has been determined by the Committee, but in no event will such payment be made later
than the fifteenth (15th) day of the third (3rd) month immediately following
the end of the Plan Year to which the Payable Award relates. However, in the case of any
Participant who is on a Company-approved personal leave of absence on the last day of the Plan Year
(or with respect to any FY 2010 Discretionary Early Payment, the date on which such payment is
determined by the Committee in accordance with Section 3.4.2 of the Plan), the Payable Award, if
any, will not be paid until the Participant has returned to work for at least 90 consecutive days
following his or her return from the leave of absence (the “90-Day Service Period”), in which case,
the Payable Award, if any, will be paid as soon as administratively practicable after the
completion of the 90-Day Service Period, but in no event will such payment be made later than the
fifteenth (15th) day of the third (3rd) month immediately following the later
of (a) the end of the Plan Year in which the 90-Day Service Period is completed; or (b) the end of
the Participant’s taxable year in which the 90-Day Service Period is completed. Notwithstanding
the foregoing, the Committee may, in its sole discretion, determine that the 90-Day Service Period
will be waived for any reason, including, but not limited to, with respect to a Participant whose
employment with the Company or an Affiliate terminates during such 90-Day Service Period by reason
of such Participant’s Retirement, Disability, death or involuntary termination by the
Company or an Affiliate for a reason other than Cause. If the 90-Day Service Period is waived with
respect to any Participant, the Payable Award, if any, will be paid as soon as administratively
practicable after such waiver, but in no event will such payment be made later than the fifteenth
(15th) day of the third (3rd) month immediately following the later of (a)
the end of the Plan Year in which the 90-Day Service Period is waived; or (b) the end of the
Participant’s taxable year in which the 90-Day Service Period is waived. For purposes of clarity,
a Participant who both is on a Company-approved non-personal leave of absence and whose employment
status is protected by applicable law as a result of such leave of absence will not be subject to
any 90-Day Service Period requirement.

     4.4. Taxes. Each Payable Award will be paid net of all applicable tax withholding and deductions.

- 5 -

 

     4.5. Payment in Event of Participant’s Death. If the Committee has determined, in its sole discretion, that a Participant will receive a
Payable Award, but the Participant is deceased at the time such award is payable, then such Payable
Award will be paid to the Participant’s estate or to the beneficiary or beneficiaries entitled
thereto under the intestacy laws governing the disposition of the Participant’s estate.

     4.6. Payment Through Affiliate. Payable Awards may be paid, in the Committee’s discretion, through the Company or any of its
Affiliates.

     4.7. Clawback in Connection with a Material Negative Financial Restatement. Pursuant to the Company’s clawback policy, the Board, in its sole discretion, may require a
Participant to forfeit, return or reimburse the Company all or a portion of his or her Payable
Award that is paid on or after December 7, 2009, if (i) the Participant is or was a Section 16
Officer during the applicable Plan Year, and (ii) the Participant deliberately engaged in
Intentional Misconduct that was determined by the Board, in its sole discretion, to be the primary
cause of a material negative restatement of a Company financial statement that was filed with the
U.S. Securities and Exchange Commission and such financial statement, as originally filed, is one
of the Company’s three (3) most recently filed annual financial statements. The portion of the
Payable Award, if any, that a Participant may be required to forfeit, return or reimburse will be
determined by the Board, in its sole discretion, but will be no more than the after-tax portion of
the Payable Award that was: (1) in excess of the Payable Award he or she would have received had
the Company’s financial results been calculated under the restated financial statements, and (2)
paid within the period beginning on the date the Committee determines the Payable Award (in
accordance with Section 3.4 of the Plan) and ending on the date that is twelve (12) months after
the original filing of the financial statement that subsequently was restated.

	5.	 	ADMINISTRATION

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

     5.2. Committee Authority. The Committee has all powers and discretion to administer the Plan and to control its operation,
including, but not limited to, the power and discretion to (a) select Participants and make other
determinations under Section 3; (b) make Plan rules and regulations to address any situation or
condition not specifically provided for by the Plan; and (c) interpret the provisions of the Plan
and any Payable Awards. Any determination, decision or action of the Committee (or any delegate of
the Committee) in connection with the construction, interpretation, administration or application
of the Plan will be final, conclusive, and binding upon all persons, and will be given the maximum
possible deference permitted by law.

     5.3. Delegation by the Committee. The Committee, in its sole discretion and on such terms and conditions as it may provide, may
delegate all or part of its authority and/or powers under the Plan to one or more officers or other
employees of the Company or its Affiliates; provided, however, that any decision, action or
determination under the Plan by any such delegate of the Committee will be subject to review and
change by the Committee, in its sole discretion. Notwithstanding the foregoing, the Committee may
not delegate its authority and/or powers under the Plan with respect to Section 16 Officers.

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	6.	 	GENERAL PROVISIONS

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

     6.2. Section 409A. It is intended that any Payable Awards under this Plan will be exempt from the requirements of
Section 409A pursuant to the “short-term deferral” exemption or, in the alternative, will comply
with the requirements of Section 409A so that none of the payments to be provided under the Plan
will be subject to the additional tax imposed under Section 409A, and any ambiguities and ambiguous
terms herein shall be interpreted to so comply or be exempt. Each payment payable under this Plan
is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury
Regulations. The Company may, in good faith and without the consent of any Participant, make any
amendments to this Plan and take such reasonable actions which it deems necessary, appropriate or
desirable to avoid imposition of any additional tax or income recognition under Section 409A prior
to actual payment to any Participant.

     6.3. No Effect on Employment. The Plan, participation in the Plan, and administration of the Plan do not confer any right upon
any Participant for the continuation of his or her employment with the Company or its Affiliates
for any Plan Year or any other period. A Participant’s employment with the Company or its
Affiliates is fully terminable at will. The Company and its Affiliates expressly reserve the
right,
which may be exercised at any time and without regard to when during a Plan Year such exercise
occurs, to terminate any Participant’s employment with or without cause, and to treat him or her
without regard to the effect that such treatment might have upon him or her as a Participant.

     6.4. No Individual Liability. Neither the Committee, nor any member of the Committee, nor any delegate of the Committee, nor
any member of the HRCC, nor any member of the Board will be liable for any determination, decision
or action made or taken in good faith with respect to the Plan or any Payable Award under the Plan.

     6.5. Integration. The Plan as stated in this document is the complete embodiment of the terms and conditions of
the Plan and supersedes any prior versions of the Plan and any prior or contemporaneous agreements,
promises, or representations concerning the subject matter of the Plan.

     6.6. Amendment or Termination. The Committee or the HRCC may amend or terminate the Plan at any time and for any reason by a
written amendment. No individual director, officer, or employee, regardless of his or her position
at the Company or its Affiliates, otherwise has the power to amend or alter the terms and
conditions of the Plan, whether he or she purports to do so verbally or in writing.

     6.7. Arbitration. Any dispute arising from, or related to, this Plan will be settled pursuant to the Applied
Materials, Inc. Arbitration Policy, where such an arbitration policy is in effect.

     6.8. Severability; Governing Law. If any provision of the Plan is found to be invalid or unenforceable, such provision will not
affect the other provisions of the Plan, and the Plan will

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be construed in all respects as if such
invalid provision had been omitted. The provisions of the Plan will be governed by and construed
in accordance with the laws of the State of California, with the exception of California’s conflict
of laws provisions.

EXECUTION

     IN WITNESS WHEREOF, Applied Materials, Inc., by its duly authorized officer, has executed this
restated Plan document effective as of August 13, 2010.

	 	 	 	 	 
	 	APPLIED MATERIALS, INC.

 	 
	 	By  	/s/ Ron Miller
 	 
	 	 	Ron Miller 	 
	 	 	Corporate Vice President, Global Rewards 	 
	 

- 8 -exv10w2

Exhibit 10.2

THE J. M. SMUCKER COMPANY

RESTRICTED STOCK AGREEMENT

     WHEREAS, __________ (the “Grantee”) is an employee of The J. M. Smucker Company, an Ohio
corporation (the “Company”), or one of its Subsidiaries; and

     WHEREAS, the execution of an agreement in the form hereof (this “Agreement”) has been
authorized by a resolution of the Executive Compensation Committee (the “Committee”) of the Board,
pursuant to The J. M. Smucker Company 2010 Equity and Incentive Compensation Plan (the “Plan”), as
of __________ (the “Date of Grant”);

     NOW, THEREFORE, the Company hereby grants to the Grantee __________ shares of Restricted Stock
(the “Restricted Stock”), effective as of the Date of Grant, subject to the terms and conditions of
the Plan and the following additional terms, conditions, limitations and restrictions.

ARTICLE I

DEFINITIONS

     All terms used herein with initial capital letters and not otherwise defined herein that are
defined in the Plan shall have the meanings assigned to them in the Plan.

ARTICLE II

CERTAIN TERMS OF THE RESTRICTED STOCK

     1. Issuance of Restricted Stock. The Restricted Stock covered by this Agreement shall
be issued to the Grantee effective upon the Date of Grant. The Restricted Stock shall be
registered in the Grantee’s name and shall be fully paid and nonassessable. Any certificates or
evidence of award shall bear an appropriate legend referring to the restrictions hereinafter set
forth.

     2. Restrictions on Transfer of Shares. The Restricted Stock may not be sold,
exchanged, assigned, transferred, pledged, encumbered or otherwise disposed of by the Grantee,
except to the Company, unless the Restricted Stock has become nonforfeitable as provided in Article
II, Section 3 hereof; provided, however, that the Grantee’s rights with respect to
such Restricted Stock may be transferred by will or pursuant to the laws of descent and
distribution. Any purported transfer or encumbrance in violation of the provisions of this Article
II, Section 2 shall be void, and the other party to any such purported transaction shall not obtain
any rights to or interest in such Restricted Stock. The Committee in its sole discretion, when and
as permitted by the Plan, may waive the restrictions on transferability with respect to all or a
portion of the Restricted Stock.

 

 

     3. Vesting of Restricted Stock.

          (a) All of the Restricted Stock covered by this Agreement shall become nonforfeitable on the
fourth anniversary of the Date of Grant, which such date will be __________, if the Grantee shall
have remained in the continuous employ of the Company or a Subsidiary during that four-year period.

          (b) Notwithstanding the provisions of Article II, Section 3(a), all of the Restricted Stock
covered by this Agreement shall immediately become nonforfeitable if (i) the Grantee dies or
becomes permanently disabled while in the employ of the Company or a Subsidiary during the
four-year period from the Date of Grant, (ii) [at any time during the four-year period from the
Date of Grant, the Grantee is age 60 with at least ten years of service with the
Company,]1 or (iii) a Change in Control occurs during the four-year period from the Date
of Grant while the Grantee is employed by the Company or a Subsidiary.

          (c) Notwithstanding the provisions of Article II, Section 3(a), if the Grantee leaves the
employ of the Company or a Subsidiary within four years from the Date of Grant under circumstances
determined by the Committee to be for the convenience of the Company, the Committee may, when and
as permitted by the Plan, determine that all of the Restricted Stock covered by this Agreement
shall become nonforfeitable.

     4. Forfeiture of Shares. The Restricted Stock shall be forfeited, except as otherwise
provided in Article II, Section 3 above, if the Grantee ceases to be employed by the Company or a
Subsidiary prior to the fourth anniversary of the Date of Grant or in the event the Committee
determines the Grantee has engaged in Detrimental Activity as such term is defined in the Plan. In
the event of a forfeiture, any certificate(s) representing the Restricted Stock or any evidence of
direct registration of the Restricted Stock covered by this Agreement shall be cancelled.

     5. Dividend, Voting and Other Rights. (a) Except as otherwise provided herein, from
and after the Date of Grant, the Grantee shall have all of the rights of a shareholder with respect
to the Restricted Stock covered by this Agreement, including the right to vote such Restricted
Stock and receive any dividends that may be paid thereon; provided, however, that
any additional Common Shares or other securities that the Grantee may become entitled to receive
pursuant to a stock dividend, stock split, combination of shares, recapitalization, merger,
consolidation, separation, or reorganization or any other change in the capital structure of the
Company shall be subject to the same restrictions as the Restricted Stock covered by this
Agreement.

          (b) Cash dividends on the Restricted Stock covered by this Agreement shall be paid to the
Grantee pursuant to the Company’s then-current articles of incorporation and reported on the
Grantee’s annual wage and tax statement (Form W-2) as compensation.

 

			
	1	 	For employees of the Folgers business, use:
[at any time during the four-year period from the Date of Grant, theGrantee has
either (A) reached the age of 60 with at least ten years of combined service
with the Folgers business and the Company or (B) reached the age of 571/2 years
of age and has at least 20 years of combined service with the Folgers business
and the Company, provided, further, that the Grantee was at least 48 years of
age as of November 19, 2008,]

-2-

 

     6. Retention of Restricted Stock in Book Entry Form. The Restricted Stock will be
held at the Company’s transfer agent in book entry form with appropriate restrictions relating to
the transfer of such Restricted Stock until all restrictions thereon will have lapsed.

ARTICLE III

GENERAL PROVISIONS

     1. Compliance with Law. The Company shall make reasonable efforts to comply with all
applicable federal and state securities laws; provided, however, notwithstanding
any other provision of this Agreement, the Company shall not be obligated to issue any Common
Shares pursuant to this Agreement if the issuance thereof would result in a violation of any such
law.

     2. Withholding Taxes. To the extent that the Company or any Subsidiary is required to
withhold federal, state, local or foreign taxes in connection with the Restricted Stock or any
delivery of Common Shares pursuant to this Agreement, and the amounts available to the Company or
such Subsidiary for such withholding are insufficient, it will be a condition to the receipt of
Restricted Stock or such delivery that the Grantee make arrangements satisfactory to the Company
for payment of the balance of such taxes required to be withheld. The Grantee hereby elects to
satisfy this withholding obligation by having withheld, from the Common Shares otherwise
deliverable to the Grantee, Common Shares having a value equal to the amount required to be
withheld (except where the Grantee has made an election under Section 83(b) of the Code with
respect to the Common Shares subject to delivery). The Common Shares so retained shall be credited
against such withholding requirement at the Market Value per Share on the date of such retention.
In no event, however, shall the Company withhold Common Shares for payment of taxes in excess of
the minimum amount of taxes required to be withheld.

     3. Continuous Employment. For purposes of this Agreement, the continuous employment
of the Grantee with the Company or a Subsidiary shall not be deemed to have been interrupted, and
the Grantee shall not be deemed to have ceased to be an employee of the Company or Subsidiary, by
reason of the (a) transfer of his employment among the Company and its Subsidiaries or (b) a leave
of absence approved by a duly constituted officer of the Company or a Subsidiary.

     4. Right to Terminate Employment. No provision of this Agreement shall limit in any
way whatsoever any right that the Company or a Subsidiary may otherwise have to terminate the
employment of the Grantee at any time. Nothing herein shall be deemed to create a contract or a
right to employment with respect to the Grantee.

     5. Relation to Other Benefits. Any economic or other benefit to the Grantee under
this Agreement or the Plan shall not be taken into account in determining any benefits to which the
Grantee may be entitled under any profit-sharing, retirement, or other benefit or compensation plan
maintained by the Company or a Subsidiary and shall not affect the amount of any life insurance
coverage available to any beneficiary under any life insurance plan covering employees of the
Company or a Subsidiary.

-3-

 

     6. Amendments. Any amendment to the Plan shall be deemed to be an amendment to this
Agreement to the extent that the amendment is applicable hereto; provided, however,
that no amendment shall impair the rights of the Grantee under this Agreement without the Grantee’s
consent; further provided, however, that the Grantee’s consent shall not be
required to an amendment that is deemed necessary by the Company to ensure compliance with (or
exemption from) Section 409A of the Code or the Dodd-Frank Wall Street Reform and Consumer
Protection Act or any regulations promulgated thereunder.

     7. Severability. In the event that one or more of the provisions of this Agreement
shall be invalidated for any reason by a court of competent jurisdiction, any provision so
invalidated shall be deemed to be separable from the other provisions hereof, and the remaining
provisions hereof shall continue to be valid and fully enforceable.

     8. Relation to Plan. This Agreement is subject to the terms and conditions of the
Plan. In the event of any inconsistency between the provisions of this Agreement and the Plan, the
Plan shall govern. The Committee acting pursuant to the Plan, as constituted from time to time,
shall, except as expressly provided otherwise herein, have the right to determine any questions
which arise in connection with the grant of the Restricted Stock.

     9. Electronic Delivery. The Company may, in its sole discretion, deliver any
documents related to the Restricted Stock and the Grantee’s participation in the Plan, or future
awards that may be granted under the Plan, by electronic means or to request the Grantee’s consent
to participate in the Plan by electronic means. The Grantee consents to receive such documents by
electronic delivery and, if requested, agrees to participate in the Plan through an on-line or
electronic system established and maintained by the Company or another third party designated by
the Company.

     10. Governing Law. This Agreement is made under, and shall be governed by and
construed in accordance with the internal substantive laws of the State of Ohio.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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     This Agreement is executed by the Company as of the _____ day of _________.

	 	 	 	 	 
	 	THE J. M. SMUCKER COMPANY

 	 
	 	By:  	

 	 
	 	 	Title: 	 	 
	 	 	 	 
	 

     The undersigned hereby acknowledges receipt of an executed original of this Agreement,
together with a copy of the prospectus for the Plan, dated __________, summarizing key provisions
of the Plan, and accepts the award of Restricted Stock granted hereunder on the terms and
conditions set forth herein and in the Plan.

	 	 	 	 	 

	Date:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	Grantee:

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