Document:

EXHIBIT
10.1

AGREEMENT
FOR PURCHASE OF PROPERTY

 

by and between

 

Mining
Power Group, Inc.

a Colorado corporation

 

 

and

 

-NORTHWAY MINING, LLC

 a New York limited liability company

 

 

 

    	 

    	 

    

AGREEMENT FOR PURCHASE OF PROPERTY

 

This AGREMENT FOR PURCHASE
OF PROPERTY (the “Agreement”) is dated as of this 1st day of August, 2018 by and among Mining
Power Group, Inc., a Colorado corporation (“MPG”), NORTHWAY MINING, LLC, a New York limited liability company
(“NORTHWAY”) and the members of NORTHWAY other than MPG (the “MEMBERSHIP”)
who hold 45% of the NORTHWAY ownership interest. (MPG, NORTHWAY and the MEMBERSHIP
may be referred to herein as a “party” and collectively as the “parties”, and MPG and NORTHWAY may be individually
referred to herein as a “Company” or collectively as the “Companies”.)

 

RECITALS

 

A.        WHEREAS,
NORTHWAY wishes to occupy for its business purpose the building located at 2 Flint Mine Road, Coxsackie, NY 12051, SBL Nos.
71.00-1-20 and 71.00-1-3.112., (the “Property”), to be used as NORTHWAY’s address; and

 

B.       WHEREAS,
NORTHWAY and MPG have entered into that certain Acquisition Agreement between them of even date wherein MPG became the majority
owner of NORTHWAY holding 55% of its ownership interest and NORTHWAY became a majority-owned subsidiary of MPG, the MEMBERSHIP
owning the remaining 45% of ownership interest; and

 

C.       WHEREAS,
MPG has entered into that certain separate Contract of Sale, dated July 5, 2018, by and between MPG and Marsan Properties,
Inc., a New York corporation, (the “Sales Contract”) wherein MPG upon the closing of the Sales Contract whereupon MPG
pays a deposit on said purchase of $350,000 (U.S.), (the “Deposit”), on the total purchase price of $950,000 U.S. (the
“Purchase Price”), not including closing expenses and taxes, and thereby becomes the owner of the Property occupied
and used by NORTHWAY, its subsidiary; and

 

D.       
WHEREAS, the MEMBERSHIP desires for NORTHWAY to own directly 45% of the Property for its sole use for which NORTHWAY shall
pay all costs associated with the Property, including, but not limited to, utility and mortgage payments of outstanding principal
and interest on the Property and real estate taxes (collectively, the “NORTHWAY PAYMENTS”).

 

		1.	Terms and Conditions of the Agreement

 

NOW, THEREFORE, in
consideration of the premises and of the mutual agreements contained herein to which the parties have agreed, the Companies do
hereby agree to the following:

 

		1.1.	Recitals. The MPG, the MEMBERSHIP and NORTHWARY acknowledge and warrant that the
preceding Recitals are true and correct and are incorporated herein by reference.

 

 

    	1 

    	 

    

 

		1.2.Fundamental	Terms and Conditions of Agreement. 

 

	 	(a)	MPG shall assign 100% of its interest in the Sales Contract to NORTHWAY in order for NORTHWAY to because the sole purchaser of
the Property in place of MPG (the “Sales Contract Assignment”);

 

		(b)	As a result of the Sales Contract Assignment, NORTHWAY shall directly purchase the Property for
the Purchase Price and become its sole owner and use the Property only in accordance with federal, state and local law and regulation,
and for the sole purpose of its business as approved by MPG. No other use of the property or rental or lease in whole or in part
shall be allowed by the parties except as approved by MPG, and NORTHWAY and the MEMBERSHIP agree that the Property and its address
shall not be used by any other entity for any purpose whatever without the written authorization of MPG.

 

		(c)	MPG shall pay directly or through a subsidiary, the amount of the Deposit to NORTHWAY to be paid
by NORTHWAY at the Closing for the purchase of the Property, which amount shall represent an equity investment in NORTHWAY to be
recorded in MPG’s capital account per the terms and conditions of the Amended & Restated Operating Agreement of NORTHWAY.

  

	 	(d)	NORTHWAY shall as part of the
NORTHWAY PAYMENTS pay the remaining principal balance of $600,000 of the Purchase Price owned on the mortgage, not including interest.
Failure by NORTHWAY in whole or in part, to make any and all of NORTHWAY PAYMENTS on a timely basis, may be considered by MPG in
its sole judgement, as a breach of this Agreement which breach MPG shall allow to be cured by NORTHWAY within ten (10) days of
a written notice of said breach. Any uncured breach of this subsection “(c)” which results in MPG assuming or making
payments on the Property which per the terms herein would be the responsibility of NORTHWAY, shall entitle MPG, in its sole judgment,
to assume up to 100% ownership of the Property and require the deed for said Property to be transferred to it (the “Deed
Transfer”), thereby reducing NORTHWAY’s ownership percentage to zero (0%) or in MPG’s sole discretion, reduce
NORTHWAY ownership percentage below 45% of the Property. The MEMBERSHIP and NORTHWAY hereby agree to such assumption and Deed Transfer,
and thereby grants MPG any and all rights in law and equity to effectuate either or both of them at its discretion. Moreover, as
a contingency against said breach, within ten (10) days following the real estate closing, NORTHWAY and the MEMBERSHIP agree that
NORTHWAY shall file a UCC-1 financing statement in jurisdictions specified by MPG against the Property and the contents therein
that are the property of NORTHWAY in an amount that is not less than the remaining principal balance of $600,000 of the Purchase
Price (the “Financing Statement”). The Financing Statement shall be cancelled by MPG at such time as the mortgage on
the Property is paid in full.

 

    	2 

    	 

    

 

		1.3.	Approvals. Pursuant to applicable statutory provisions, this Agreement shall require
the approval of all the MEMBERSHIP, NORTHWAY and stockholders of MPG respectively. The conditions of the applicable statutes of
the States of Colorado and New York have been complied with as follows:

 

		(a)	The boards of directors of each of Company have recommended to each Company’s respective
membership or shareholders that this Agreement be approved by a vote of each, as attested thereto, and such Agreement has been
subsequently thereby approved by a unanimous vote of the board of directors of each Company; and

 

		(b)	This Agreement does not conflict with, or make changes to, the Articles of Incorporation or Organization
of either Company, as amended, or the Bylaws or Operating Agreement respectively of either Company.

 

		1.4.	Record Date of Agreement.  The record date of the Agreement shall be the Closing
Date (as hereinafter defined).

 

		2.	The Closing.

		2.1.	Place and Time. The closing of the Agreement shall occur not later than the close of business
(EDT) on Wednesday, August 15, 2018, or at such date and time as the parties may agree in writing (the “Closing Date”).

		2.2.	Deliveries by NORTHWAY at Closing to MPG. At the Closing, NORTHWAY shall deliver the following:

		(a)	a resolution of the MEMBERSHIP in form and substance as agreed to by the parties authorizing and
ratifying this Agreement;

		(b)	all other documents, instruments and writings required by this Agreement to be delivered by NORTHWAY
at the Closing.

		2.3.	Deliveries by MPG at Closing to NORTHWAY. At the Closing, MPG shall deliver the following:

		(a)	a board of directors’ resolution and an officer’s certificate certifying the shareholder
vote approval in form and substance as agreed to by the parties authorizing and ratifying this Agreement;

		(b)	all other documents, instruments and writings required by this Agreement to be delivered by MPG
at the Closing.

 

    	3 

    	 

    

 

		3.	Conditions to MPG’s Obligations.

 

The obligations of MPG to effect
the Closing shall be subject to the satisfaction, at or prior to the Closing, of the following conditions, any one or more of which
may be waived by MPG:

 

		3.1.	No Injunction. There shall not be in effect any injunction, order or decree of a court of
competent jurisdiction that prevents the consummation of the transactions contemplated hereby; no litigation or proceedings seeking
the issuance of such an injunction, order or decree or seeking to impose substantial penalties on MPG or NORTHWAY if this Agreement
is consummated shall be pending.

		3.2.	MPG shall have performed and complied in all material respects with the obligations contained in
this Agreement.

 

		3.3.	Representations, Warranties and Agreements of MPG.

 

The representations and warranties
of MPG set forth in this Agreement shall be true and complete in all material respects as of the Closing Date, including, but not
limited to, the following:

 

		(a)	Organization. MPG is a corporation duly organized, validly existing and in good standing
under the laws of Colorado and has all necessary corporate powers to beneficially control and own its properties and to carry on
its business as now owned and operated by it, and is duly qualified and registered to do business in the State of Colorado, holding
all necessary business permits and certifications required under law and regulation to conduct its business, and is in good standing
in each of the political geographic locales where its business requires qualification.

 

		(b)	Certain Agreements. MPG is not in default of any contract, agreement, undertaking or arrangement
to which it is bound wherein such default could be reasonably expected to have a Material Adverse Effect (as defined in Section
6) on the business, assets, properties, operations, results of operations, condition (financial or otherwise) or prospects of MPG.

  

	 	3.4	Regulatory Approvals. All licenses, authorizations, consents, orders and regulatory
    approvals of Governmental Bodies necessary for the consummation of the Agreement shall have been obtained and shall be in
    full force and effect.

  

	 	3.5	Authority and Approval of MPG Directors. The Board of Directors of MPG has authorized
    the execution of this Agreement and the consummation of the transactions contemplated herein, and MPG has full power and authority
    to execute, deliver and perform this Agreement, and this Agreement is a legal, valid and binding obligation of MPG and is
    enforceable in accordance with its terms and conditions. The transactions described herein shall be approved by the MPG Board
    of Directors, which approval shall be delivered at Closing.

 

 

    	4 

    	 

    

 

		4.	Conditions to NORTHWAY’s Obligations.

 

The obligations
of NORTHWAY to effect the Closing shall be subject to the satisfaction at or prior to the Closing of the following conditions,
any one or more of which may be waived by MPG:

 

		(a)	No Injunction. There shall not be in effect any injunction, order or decree of a court of
competent jurisdiction that prevents the consummation of the transactions contemplated hereby; no litigation or proceedings seeking
the issuance of such an injunction, order or decree or seeking to impose substantial penalties on MPG or NORTHWAY if this Agreement
is consummated shall be pending.

 

		(b)	NORTHWAY shall have performed and complied in all material respects with the agreements and obligations
contained in this Agreement which are required to be performed and/or complied with by it at, or prior to, the Closing.

 

 

	 	4.2	Representations, Warranties and Agreements of NORTHWAY.

  

The representations and warranties of NORTHWAY
set forth in this Agreement shall be true and complete in all material respects as of the Closing Date, including, but not limited
to, the following:

 

		(a)	Organization. NORTHWAY is a limited liability company duly organized, validly existing and
in good standing under the laws of the State of New York and has all necessary corporate powers to beneficially control and own
its properties and to carry on its business as now owned and operated by it, and is duly qualified and registered to do business
in New York State, holding all necessary business permits and certifications required under law and regulation to conduct its business,
and is in good standing in each of the political geographic locales where its business requires qualification.

 

		(b)	Certain Agreements. NORTHWAY is not in default of any contract, agreement, undertaking or
arrangement to which it is bound wherein such default could be reasonably expected to have a Material Adverse Effect (as defined
in Section 6) on the business, assets, properties, operations, results of operations, condition (financial or otherwise) or prospects
of NORTHWAY.

 

		4.3.	Regulatory Approvals. All licenses, authorizations, consents, orders and regulatory
                                                                                  approvals of Governmental Bodies necessary for the consummation of the Agreement shall have been obtained and shall be in
                                                                                  full force and effect.

 

    	5 

    	 

    

 

 

		4.4.	Authority and Approval of NORTHWAY Directors. The MEMBERSHIP of NORTHWAY has
                                                                                 authorized the execution of this Agreement and the consummation of the transactions contemplated herein, and NORTHWAY has
                                                                                 full power and authority to execute, deliver and perform this Agreement, and this Agreement is a legal, valid and binding
                                                                                 obligation of NORTHWAY and is enforceable in accordance with its terms and conditions. The transactions described herein
                                                                                 shall be approved by the MEMBERSHIP, which approval shall be delivered at Closing.

 

		5.	Conduct of Business Prior to the Closing.

 

		5.1.	Operation in Ordinary Course. Between the date of this Agreement and the Closing Date,
                                                                                 MPG and NORTHWAY shall each conduct its businesses in all material respects in the ordinary course.

 

		5.2.	Corporate Organization. Between the date of this Agreement and the Closing Date,
                                                                                 except by mutual written agreement, MPG and NORTHWAY shall not cause or permit any amendment to its respective certificate of
                                                                                 organization, bylaws, except that NORTHWAY shall have amended and restated its Operating Agreement as agreed among the
                                                                                 parties, and shall not:

 

		(a)	be party to any merger, consolidation or other business combination;

 

		(b)	sell, lease, license or otherwise dispose of any of its properties or assets in an amount which
is material to its business or financial condition, except in the ordinary course of business.

 

		5.3.	Notice of Non-Compliance.  Each party shall give prompt notice to the other party of
                                                                              any representation or warranty made by it in this Agreement becoming untrue or inaccurate in any respect or the failure by it
                                                                              to comply with or satisfy in any material respect any covenant, condition or agreement to be complied with or satisfied by it
                                                                              under this Agreement.

 

		6.	Definitions. 

 

As used in this Agreement, the following terms
have the meanings specified or referred to as follows:

 

		6.1.	“Governmental Body.” Any domestic or foreign national, state or municipal or
other local government or multi-national body, or any subdivision, agency, commission or authority thereof.

		6.2.“	Material Adverse Effect.” Any change in or effect on the business of a company
                                                                                       that, individually or in the aggregate (taking into account all other such changes or effects), is, or is reasonably likely
                                                                                       to be, materially adverse to the business, assets, liabilities, financial condition or results of operations of said company,
                                                                                       taken as a whole, except to the extent any such change or effect results from or is attributable to changes in general
                                                                                       economic conditions or changes affecting the industry generally in which said company operates (provided that such changes do
                                                                                       not affect the Company in a materially disproportionate manner).

    	6 

    	 

    

 

		6.3.	“Person.” Any individual, corporation, partnership, joint venture, trust, association,
unincorporated organization, other entity, or Governmental Body.  

		7.	Termination. 

 

		7.1.	Termination. This Agreement
                                         may be terminated prior to Closing only as follows:

 

		(a)	By written agreement of NORTHWAY and MPG at any time.

 

		(b)	By MPG, by notice to NORTHWAY at any time, if one or more of the conditions specified in Section
3 is not satisfied at the time at which the Closing (as it may be deferred pursuant to Section 2.1) would otherwise occur or if
satisfaction of such a condition is or becomes impossible.

 

		(c)	By NORTHWAY, by notice to MPG at any time, if one or more of the conditions specified in Section
4 is not satisfied at the time at which the Closing (as it may be deferred pursuant to Section 2.1), would otherwise occur of if
satisfaction of such a condition is or becomes impossible.

 

		7.2.	Effect of Termination. If this Agreement is terminated pursuant to Section 7.1, this
                                                                              Agreement shall terminate without any liability or further obligation of any party to another.

 

		8.	Notices. All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed to have been duly given, (a) if delivered in person or by courier, (b) if sent by nationally
recognized overnight delivery service, (c) if mailed by certified or registered mail, postage prepaid, return receipt requested,
or (d) if transmitted by facsimile with receipt confirmed, as follows:

 

a. If to MPG:

Mining Power Group, Inc.

20200 Dixie Highway, Suite 906

Miami, FL 33180

ATTN: Dror Svorai, President and CEO

 

b. If to NORTHWAY MINING, LLC

Northway Mining, LLC

707 Flats Road

Athens New York 12015

ATTN: Michael Maranda

 

    	7 

    	 

    

 

or to such other address as the Party to be
notified shall have furnished to the other Parties in writing. Any notice given in accordance with the foregoing shall be deemed
to have been given, (i) at the time of delivery, when delivered in person or by courier, (ii) one business day after sending by
nationally recognized overnight delivery service, (iii) three business days following the date on which it shall have been mailed
by certified or registered mail, postage prepaid, return receipt requested, or (iv) at the time of transmittal, when transmitted
by facsimile with receipt confirmed.

 

		9.	Miscellaneous. 

 

		9.1.	Expenses. Each party shall bear its own expenses incident to the preparation, negotiation,
execution and delivery of this Agreement and the performance of its obligations hereunder.

 

		9.2.	Captions. The captions in this Agreement are for convenience of reference only and shall
not be given any effect in the interpretation of this agreement.

 

		9.3.	Choice of Law and Venue. The parties hereto agree that any dispute or controversy arising
out of or relating to any interpretation, construction, performance or breach of this Agreement, shall be exclusively governed
by Florida law without respect to its conflict of law provisions. The parties hereto further agree to submit to personal jurisdiction
in the state or federal courts in Miami-Dade County, Florida as such courts shall serve as the exclusive venue for all dispute
resolution.

 

		9.4.	Attorney’s Fees. In the event of any court proceeding to enforce the terms hereof
or of any dispute hereunder, the prevailing party in such proceeding and/or dispute shall be entitled to recover its expenses associated
therewith including, without limitation, reasonable attorneys’ and paralegals’ fees and costs through and including
all trial and appellate levels and post-judgment proceedings.

 

		9.5.	No Waiver. The failure of a party to insist upon strict adherence to any term of this Agreement
on any occasion shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence
to that term or any other term of this Agreement. Any waiver must be in writing.

 

		9.6.	Entire Agreement and Modification. This Agreement supersedes all prior agreements between
the parties with respect to its subject matter and constitutes (along with the documents referred to in this Agreement) a complete
and exclusive statement of the terms of the agreement between the parties with respect to its subject matter. This Agreement may
not be amended except by a written agreement executed by both parties.

 

    	8 

    	 

    

 

		9.7.	Severability. The provisions of this Agreement are severable and the unenforceability of
any provision shall not affect the enforceability of any other provision hereof. In addition, in the event that any provision of
this Agreement (or any portion thereof) is determined by a court to be unenforceable as drafted by virtue of the scope, duration,
extent or character of any obligation contained herein, the parties acknowledge that it is their intention that such provision
(or portion thereof) shall be construed in a manner designed to effectuate the purposes of such provision to the maximum extent
enforceable under applicable law.

 

		9.8.	Counterparts. This Agreement
                                         may be executed in two or more counterparts, each of which shall be considered an original,
                                         but all of which together shall constitute the same instrument.

 

		9.9.	Binding Effect. This Agreement shall inure to the benefit of and be binding upon the
                                                                               parties hereto and their respective successors and assigns; provided that neither party may assign its rights hereunder
                                                                               without the consent of the other.

 

		9.10.	Survival of Terms and Conditions. All provisions, terms and conditions of this Agreement
which by their text specify that they survive, or which need to do so to give full force and effect to their intent and effect,
will survive the Closing or any termination of this Agreement, or until such provision, term or condition is fulfilled by the parties
so obligated to do so to the satisfaction of the other parties hereto (the “Survival”). Such provisions, terms, and
conditions includes, but are not limited to, the representations, warranties, covenants and agreements of the parties in this Agreement
or in any instrument, certificate, opinion or other writing connected directly or indirectly to this Agreement.

 

		9.11.	Further Assurances. The parties hereto shall cooperate with one another at reasonable times
and on reasonable conditions and shall promptly execute and deliver such instruments and documents as may be reasonably necessary
in order to fully carry out the intent and purposes of this Agreement, the relationship contemplated hereunder, and any and all
provisions contained herein.

 

		9.12.	No Interpretation Against Drafter. There shall be no rule of interpretation against the
drafter in drafting this Agreement. The parties hereto acknowledge they have had ample time to review this Agreement, make or negotiate
any changes they deem necessary, and have had the opportunity to review this Agreement with their respective attorneys.

 

    	9 

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed and entered into as of the Closing Date.

 

 

	“MPG”	“NORTHWAY” and its “MEMBERSHIP”
	 	 
	Mining Power Group, Inc.	Northway Mining, LLC
	a Colorado corporation	a New York limited liability company
	 	 
	 	 
	By: /s/
    Dror Svorai	By: /s/
    Michael Maranda
	
         

        Name: Dror Svorai______
	
         

        Name: Michael Maranda__________

	
         

        Its: ___President and CEO
	
         

        Its: ____President________________

         

        By: /s/ Ryan Lehmann____________

         

        Name: _Ryan Lehmann___________

         

        Its: ____Vice President___________

         

         

	 	 

 

    	10Exhibit

EXHIBIT (10-1) 
 
The Procter & Gamble Performance Stock Program Summary

PERFORMANCE STOCK PROGRAM SUMMARY
(Effective July 1, 2018)

The Performance Stock Program (“PSP”) is a part of The Procter & Gamble Company’s (the “Company”) long-term incentive (“LTI”) compensation and is designed to provide additional focus on key Company measures for top executives with senior management responsibility for total Company results.  Awards granted under the PSP (“PSP Awards”) are made pursuant to authority delegated to the Compensation & Leadership Development Committee (the “C&LD Committee”) by the Board of Directors for determining compensation for the Company’s principal officers and for making awards under the Procter & Gamble 2014 Stock and Incentive Compensation Plan (the “2014 Plan”) or any successor stock plan approved in accordance with applicable listing standards.    PSP Awards are Performance-Based Compensation (as defined in Article 15 of the 2014 Plan). 

I.    ELIGIBILITY

The Chairman of the Board and/or Chief Executive Officer and those active executives at Band 6 or above as of October 1 prior to the grant date and recommended by management are eligible to participate (“Participants”).  

II.    OVERVIEW

A significant portion of the Band 6 and above compensation is delivered through two long-term incentive programs tied to Company performance: PSP and the Long-term Incentive Program. 
Total long-term incentive compensation targets are based on relevant competitive market data considering the median total long-term compensation of comparable positions, regressed for revenue size.  The C&LD Committee establishes the Peer Group and sets compensation targets for all Principal Officers including the CEO.  The CEO approves compensation targets for non-Principal Officers (generally Band 6 managers).  
The C&LD Committee determines the long-term incentive award for the CEO.  The CEO recommends all other Principal Officer awards to the C&LD Committee based on benchmarked long-term compensation targets, adjusted for business results and individual contributions attributable to each executive and including that individual’s leadership skills. The C&LD Committee retains full authority to accept, modify, or reject these recommendations. The CEO approves awards for participants who are not Principal Officers based on long-term compensation targets, business results and individual contributions. Long-term incentive awards can be up to 50% above or 50% below the benchmarked target. In exceptional cases, no award will be made. After total LTI award size is determined then approximately half of each Band 7 manager’s long-term compensation is allocated to PSP via an Initial PSU Grant (as defined below). The remaining portion is a Long-term Incentive Program Grant.  Approximately 25% of each Band 6 manager’s total LTI is allocated to PSP with the remainder awarded under the Long-term Incentive Program.

PSP rewards Participants for Company performance against certain three-year performance goals in categories established by the C&LD Committee.  The C&LD Committee sets these performance goals for each three-year period that begins on July 1 and ends on June 30 three years later (“Performance Period”).  In the first year of each Performance Period, the C&LD Committee grants Performance Stock Units (“PSUs”) to Participants that will vest at the end of the Performance Period based on the Company’s performance relative to the pre-established performance goals (“Initial PSU Grant”).  The number of PSUs that vest at the end of the Performance Period depends on the Company’s performance against the pre-established performance goals.  Vested PSUs, including dividend equivalents, are converted into shares of the Company’s common stock (“Common Stock”) delivered to the applicable Participant within 60 days following the end of the Performance Period, or such later date as may be elected by the Participant in accordance with Section 409A of the Internal Revenue Code (“Section 409A”).

		
	III.
	PERFORMANCE CATEGORIES 

The PSP Award is based on the Company’s performance in each of the following categories (each a “Performance Category”) and weighted as indicated:

		
	·  
	Organic sales growth (percentile rank in the competitive peer group)*  - 30%

		
	·  
	Constant currency core before-tax operating profit growth - 20%

		
	·  
	Core earnings per share (EPS) growth - 30%

		
	·  
	Adjusted free cash flow productivity - 20%

Awards will be further adjusted based on the three-year relative total shareholder return (R-TSR) of P&G compared to the competitive peer group*.  Awards will be adjusted for top quartile performance using a 125% multiplier to increase awards, and reduced for bottom quartile performance using a 75% multiplier.
* Competitive peer group is defined in the PSP Accounting Guidelines.

Within the first 90 days of each Performance Period, the C&LD Committee sets three-year performance goals (“Performance Goals”) for each Performance Category for such Performance Period and establishes a sliding scale to measure the Company’s performance against each Performance Goal in each Performance Category.  The C&LD Committee uses the sliding scale to establish a payout factor between 0% and 200% for each Performance Category  ( a “Sales Factor”, “Profit Factor”,  “EPS Factor” and “Cash Flow Factor”, collectively, “Performance Factors”).

In all cases, the C&LD Committee retains the discretion to include or exclude certain of the Performance Categories for purposes of determining the PSP Award.  The C&LD Committee may reduce or eliminate any payment if it determines that such payout is inconsistent with long-term shareholders’ interests or incongruous with the overall performance of the company.

PSP awards will have the following terms unless otherwise approved by the C&LD Committee:

IV.    THE INITIAL PSU GRANT 

The C&LD Committee has the sole discretion to establish the target award (“PSP Target”) for each Participant serving as a Principal Officer.  The CEO establishes the PSP Targets for participants who are not Principal Officers. The PSP Target will be a cash amount and will be the basis for the Initial PSU Grant.  The C&LD Committee will make the Initial PSU Grant on the last business date in February (“Grant Date”) following the beginning of each Performance Period.  If the New York Stock Exchange is closed on the day of the grant, then the C&LD will establish a grant date as soon as practical subsequent to the date previously specified for such award. The Initial PSU Grant will set forth a target and maximum number of PSUs.  The target number of PSUs will be determined by dividing the PSP Target by the expense value of one PSU using the same methodology by which the Company expenses PSUs, rounding to the nearest whole unit.

The Initial PSU Grant maximum will be two times the Initial PSU Grant.      
                                                                                                                           

V.     PSU VESTING AND PAYMENT

After the Performance Period is complete, the C&LD Committee will establish the Payout Factors for each of the Performance Categories based on the Company’s results versus the pre-established Performance Goals.  The number of PSUs that vest will be determined by multiplying the Performance Factors by their respective weightings, summing up the results, then applying the R-TSR multiplier if applicable.  The final result will be rounded up or down to the nearest full percentage.   The resulting percentage will be applied to the number of PSUs in the Initial PSU Grant target, including dividends that would have accumulated since the initial PSU grant on the vested units, rounding up to the nearest whole share.  The number of PSUs that vest may be equal to, above or below the Initial PSU Grant target depending on the Company’s performance in the Performance Categories, but in no event more than the Initial PSU Grant maximum.  Vested PSUs are converted into shares of Common Stock delivered to the applicable Participant within 60 days following the end of the Performance Period, or such later date as may be elected by the Participant if applicable and in accordance with Section 409A.

Participants at Band 7 and above may elect to defer delivery of the Common Stock by electing to receive Restricted Stock Units.  PSP RSUs will have the following terms unless otherwise approved by the Committee at grant:

VESTING AND SETTLEMENT:   PSP RSUs will be vested on the grant date with a settlement date at least one year following the original PSU delivery date (as elected by the Participant), are eligible for dividend equivalents, and can be further deferred in accordance with Section 409A.  These RSUs will be paid on their Original Settlement Date or the Agreed Settlement Date, except in the case of death.  In the case of death (except in France and the UK), payment will be made by the later of the end of the calendar year or two and a half months following the date of death.  For awards granted in France or the UK, the consequences of death are determined by the local plan supplement, if applicable.

VI.     SEPARATION FROM THE COMPANY (Defined terms shall have the meaning designated in the 2014 Plan or related award documents)

If the Participant’s Termination of Employment occurs for any reason before the Vest Date, except for the reasons listed below, the Award will be forfeited.  Participants must remain in compliance with the terms and conditions set forth in the 2014 Plan, including those in Article 6. 

		
	•
	Termination on Account of Death (except in France and the UK).  The Award is immediately vested and will become deliverable on the Settlement Date or Agreed Settlement Date, whichever is applicable. 

		
	•
	Termination on Account of Death for awards granted in France or the UK.  The consequences of death are determined by the local plan supplement, if applicable.

		
	•
	Termination on Account of Retirement or Disability after June 30th of the fiscal year in which this Award was granted.  PSUs are retained and will be delivered on the Settlement Date. 

		
	•
	Termination pursuant to a Written Separation Agreement that provides for retention of the Award, after June 30th of the fiscal year in which this Award was granted. PSUs are retained and will be delivered on the Settlement Date. 

		
	•
	Termination in connection with a divestiture or separation of any of the Company’s businesses, as determined by the Company’s Chief Human Resources Officer.  PSUs are retained and will be delivered on the Settlement Date. 

VII.    CHANGE IN CONTROL

Notwithstanding the foregoing, if there is a Change in Control that meets the requirements of a change in control event under Section 409A, all outstanding PSP Awards will vest at 100% of the Initial PSU Grant target (or 100% of the PSP Target if the Change in Control occurs prior to the Initial PSU Grant) including dividends that would have accumulated since the initial PSU grant on the vested units, and shall be paid in shares of Common Stock at the time of such Change in Control.  If there is a Change in Control event that does not meet the requirements of a change in control event under Section 409A, all outstanding PSP Awards will be settled according to the terms and conditions set forth herein, without the application Article 17 of the 2014 Plan.  “Change in Control” shall have the same meaning as defined in the 2014 Plan or any successor stock plan approved in accordance with applicable listing standards.

VIII.    GENERAL TERMS AND CONDITIONS

It shall be understood that the PSP does not give to any officer or employee any contract rights, express or implied, against any Company for any PSP Award, or for compensation in addition to the salary paid to him or her, or any right to question the action of the Board of Directors or the C&LD Committee.

Each PSP Award made to an individual at Band 7 and above is subject to the Senior Executive Recoupment Policy adopted by the C&LD Committee in December 2006.

To the extent applicable, it is intended that the PSP comply with the provisions of Section 409A.  The PSP will be administered and interpreted in a manner consistent with this intent.  Neither a Participant nor any of a Participant’s creditors or beneficiaries will have the right to subject any deferred compensation (within the meaning of Section 409A) payable under the PSP to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment.  Except as permitted under Section 409A, any deferred compensation (within the meaning of Section 409A) payable to a Participant under the PSP may not be reduced by, or offset against, any amount owing by a Participant to the Company.

This program document may be amended at any time by the C&LD Committee.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}]]