Document:

Exhibit 10.3

 

RHINO LONG-TERM INCENTIVE PLAN

 

SECTION 1.           Purpose of the Plan

 

The Rhino Long-Term Incentive Plan (the “Plan”) has been adopted by
Rhino GP LLC, a Delaware limited liability company, the general partner (“General
Partner”) of Rhino Resource Partners LP, a Delaware limited partnership (the “Partnership”).  The Plan is intended to promote the interests
of the Partnership by providing to Employees, Consultants, and Directors
incentive compensation awards based on Units to encourage superior performance.  The Plan is also contemplated to enhance the
ability of the Partnership and its Affiliates to attract and retain the
services of individuals who are essential for the growth and profitability of
the Partnership and to encourage them to devote their best efforts to advancing
the business of the Partnership.

 

SECTION 2.           Definitions

 

As
used in the Plan, the following terms shall have the meanings set forth below:

 

“Affiliate”
means, with respect to any Person, any other Person that directly or indirectly
through one or more intermediaries controls, is controlled by or is under
common control with, the Person in question. 
For purposes of the preceding sentence, “control” (including, with
correlative meanings, the terms “controlled by” and “under common control with”),
as used with respect to any entity or organization, shall mean the possession,
directly or indirectly, of the power (i) to vote more than 50% of the
securities or equity interests having ordinary voting power for the election of
directors of the controlled entity or organization, or (ii) to direct or
cause the direction of the management and policies of the controlled entity or
organization, whether through the ownership of voting securities or equity
interests or by contract or otherwise.

 

“Award”
means an Option, Unit Appreciation Right, Restricted Unit, Phantom Unit, Other
Unit-Based Award, or a Unit Award granted under the Plan, and includes a DER
granted in tandem with respect to a Phantom Unit.

 

“Award
Agreement” means the written or electronic agreement by which an Award shall be
evidenced.

 

“Board”
means the Board of Directors or Managers, as the case may be, of the General
Partner.

 

“Change
of Control” means, and shall be deemed to have occurred upon, any of the
following events:  (a) any “person”
or “group”, within the meaning of those terms as used in Sections 13(d) and
14(d)(2) of the Exchange Act, other than (i) Wexford, the General
Partner or an Affiliate of either, (ii) any fund or other entity owned,
managed or otherwise controlled by Wexford, or (iii) any Person(s) who,
on the effective date of the Plan, is (are) an owner(s) of the General
Partner (or any Person who, subsequent to the effective date of the Plan,
through inheritance from such an owner becomes a direct or indirect owner of
the General Partner), (a “Third Party”) shall become the beneficial owner, by
way of merger, consolidation,

 

 

recapitalization,
reorganization or otherwise, of more than 50% of the voting power of the voting
securities of either the Partnership or the General Partner; or (b) the
sale or other disposition, including by way of liquidation, by either the
Partnership or the General Partner of all or substantially all of its assets,
whether in a single or series of related transactions, to one or more Third
Parties.  For clarity, an initial public
offering of Units shall not constitute a Change of Control.

 

“Committee”
means the Board, unless and to the extent the Board delegates its powers and
duties as provided in Section 3.

 

“Consultant”
means an individual, other than a Director or an Employee, who performs
services for the benefit of the General Partner, the Partnership or an
Affiliate of either.

 

“DER”
means a contingent right, granted in tandem with a specific Phantom Unit, to
receive with respect to a Phantom Unit subject to the Award an amount in cash,
Units, Restricted Units, and/or Phantom Units equal in value to the cash
distributions made by the Partnership with respect to a Unit during the period
such Phantom Unit is “outstanding.”

 

“Director”
means a member of the Board who is not also an Employee or a Consultant, and
shall also include any individual who is appointed a member of the Board by
Wexford (a “Wexford Director”).

 

“Disability”
means, unless provided otherwise in the Award Agreement, an illness or injury
that entitles the Participant to benefits under a long-term disability plan of
the General Partner or an Affiliate.

 

“Employee”
means an employee of the General Partner, the Partnership or an Affiliate of
either.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Fair
Market Value” means the closing sales price of a Unit on the principal national
securities exchange or other market in which trading in Units occurs on the
applicable date (or, if there is no trading in the Units on such date, on the
next preceding date on which there was trading) as reported in such reporting
service approved by the Committee.  If
Units are not traded on a national securities exchange or other market at the
time a determination of fair market value is required to be made hereunder, the
determination of fair market value shall be made in good faith by the
Committee.

 

“Option”
means an option to purchase Units granted under the Plan.

 

“Other
Unit-Based Award” means an Award granted pursuant to Section 6(d) of
the Plan.

 

“Participant”
means an Employee or Director granted an Award under the Plan.  With respect to a Wexford Director, Wexford
or its assignee shall be deemed to be the Participant and not the individual
appointed to the Board from time to time by Wexford.

 

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“Person”
means an individual or a corporation, limited liability company, partnership,
joint venture, trust, unincorporated organization, association, governmental
agency or political subdivision thereof or other entity.

 

“Phantom
Unit” means a notional Unit granted under the Plan that upon vesting entitles
the Participant to receive a Unit or an amount of cash equal to the Fair Market
Value of a Unit, as determined by the Committee in its discretion.

 

“Restricted
Period” means the period established by the Committee with respect to an Award
during which the Award remains subject to forfeiture and either is not
exercisable by or payable to the Participant, as the case may be.

 

“Restricted
Unit” means a Unit granted under the Plan that is subject to a Restricted
Period.

 

“Rule 16b-3”
means Rule 16b-3 promulgated by the SEC under the Exchange Act or any
successor rule or regulation thereto as in effect from time to time.

 

“SEC”
means the Securities and Exchange Commission, or any successor thereto.

 

“UDR”
means a distribution made by the Partnership with respect to a Restricted Unit.

 

“Unit”
means a Common Unit of the Partnership.

 

“Unit
Appreciation Right” or UAR” means a contingent right that entitles the holder
to receive all or part of the excess of the Fair Market Value of a Unit on the
exercise date of the UAR over the exercise price of the UAR.  Such excess shall be paid in Units, cash or
any combination thereof, in the discretion of the Committee.

 

“Unit
Award” means a grant of a Unit that is not subject to a Restricted Period.

 

“Wexford”
means Wexford Capital LP, a Delaware limited partnership.

 

SECTION 3.           Administration

 

The
Plan shall be administered by the Committee. 
Subject to applicable law and the following, the Committee, in its sole
discretion, may delegate any or all of its powers and duties under the Plan,
including the power to grant Awards under the Plan, to a committee comprised
solely of members of the Board and/or to the Chief Executive Officer of the
General Partner, subject to such limitations on such delegated powers and
duties as the Committee may impose, if any. 
Upon any such delegation, all references in the Plan to the “Committee”
shall be deemed to include such delegatees; provided, however, that a
delegation to the Chief Executive Officer shall not limit the Chief Executive
Officer’s right to receive Awards under the Plan.  Notwithstanding the foregoing, the Chief
Executive Officer may not grant Awards to, or take any action with respect to
any Award previously granted to, a person who is an officer subject to Rule 16b-3
or a member of the Board or take any action provided in Section 7.  Subject to the terms of the Plan and
applicable law, and any limitations provided in any delegations by the Board,
the Committee shall have full power and authority, in addition to the other
express 

 

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powers
and authorizations conferred on the Committee by the Plan, to:
(i) designate Participants; (ii) determine the type or types of
Awards to be granted to a Participant; (iii) determine the number of Units
to be covered by Awards; (iv) determine the terms and conditions of any
Award; (v) determine whether, to what extent, and under what circumstances
Awards may be settled, exercised, canceled, or forfeited; (vi) interpret
and administer the Plan and any instrument or agreement relating to an Award
made under the Plan; (vii) establish, amend, suspend, or waive such rules and
regulations and appoint such agents as it shall deem appropriate for the proper
administration of the Plan; and (viii) make any other determination and
take any other action that the Committee deems necessary or desirable for the
administration of the Plan.  The
Committee may correct any defect or supply any omission or reconcile any
inconsistency in the Plan or an Award Agreement in such manner and to such
extent as the Committee deems necessary or appropriate.  Unless otherwise expressly provided in the
Plan, all designations, determinations, interpretations, and other decisions
under or with respect to the Plan or any Award shall be within the sole
discretion of the Committee, may be made at any time (including after the grant
of an Award) and shall be final, conclusive, and binding upon all Persons,
including the Partnership, the General Partner, any Affiliate, any Participant,
and any beneficiary thereof.  Without
limiting the foregoing, the Committee may delegate any or all of its administrative
duties to any Person, subject to such limitations, if any, as the Committee may
provide with such delegation.

 

SECTION 4.           Units

 

(a)           Limits on Units Deliverable.  Subject to adjustment as provided in Section 4(c),
the number of Units that may be delivered with respect to Awards under the Plan
is equal to 10% of the number of Common Units and subordinated units
outstanding on the closing date of the initial public offering of Units.  Units withheld from an Award to satisfy the
General Partner’s, Partnership’s or an Affiliate’s tax withholding obligations
with respect to the Award or to pay the exercise price of an Award shall be
considered Units delivered under the Plan for this purpose.  If any Award is forfeited, cancelled,
exercised, paid, or otherwise terminates or expires without the actual delivery
of Units pursuant to such Award (the grant of Restricted Units is not a
delivery of Units for this purpose), the Units that were subject to such Award
shall again be available for new Awards under the Plan.  There shall not be any limitation on the
number of Awards that may be paid or settled in cash.

 

(b)           Sources of Units Deliverable Under Awards.  Any Units delivered pursuant to an Award
shall consist, in whole or in part, of Units newly issued by the Partnership,
Units acquired in the open market, from any Affiliate of the Partnership or
from any other Person, or may be any combination of the foregoing, as
determined by the Committee in its discretion.

 

(c)           Anti-dilution Adjustments.  With respect to any “equity restructuring”
event that could result in an additional compensation expense to the
Partnership pursuant to the provisions of Statement of Financial Accounting
Standards No. 123(R), Codified as “FASB Topic 718-Stock Compensation” (“FAS
123R”) if adjustments to Awards with respect to such event were discretionary,
the Committee shall equitably adjust the number and type of Units covered by
each outstanding Award and the terms and conditions, including the exercise
price and performance criteria (if any), of such Award to reflect such
restructuring event and shall adjust the number and type of Units (or other
securities or property) with respect to which Awards may 

 

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be granted under the Plan after such event.  With respect to any other similar event that
would not result in a FAS 123R accounting charge if the adjustment to Awards
with respect to such event were subject to discretionary action, the Committee
shall have complete discretion to adjust Awards in such manner as it deems
appropriate with respect to such other event.

 

SECTION 5.           Eligibility

 

Each
Employee, Consultant and Director shall be eligible to be designated a
Participant by the Committee and receive an Award under the Plan; provided, however,
any Award granted to a Wexford Director shall be treated, for all purposes, as
a grant to Wexford or its assignee, as Wexford may direct or provide, and not
to the individual serving on the Board on behalf of Wexford or its assignee.

 

SECTION 6.           Awards

 

(a)           Options and UARs.  The Committee shall have the authority to
determine the Employees, Consultants and Directors to whom Options and UARs
shall be granted, the number of Units to be covered by each Option or UAR, the
exercise price therefor, the Restricted Period and other conditions and
limitations applicable to the exercise of the Option or UAR, including the
following terms and conditions and such additional terms and conditions, as the
Committee shall determine, that are not inconsistent with the provisions of the
Plan.

 

(i)            Exercise Price.  The exercise price per Unit purchasable under
an Option or subject to a UAR shall be determined by the Committee at the time
the Option or UAR is granted and may not be less than the Fair Market Value of
a Unit as of the date of grant of the Option or UAR.

 

(ii)           Time and Method of Exercise.  The Committee shall determine the exercise
terms and the Restricted Period with respect to an Option or UAR grant, which
may include, without limitation, (A) a provision for accelerated vesting
upon the death or Disability of a Participant, the achievement of specified
performance goals or such other events as the Committee may provide, and (B) the
method or methods by which payment of the exercise price with respect to an
Option may be made or deemed to have been made, which may include, without
limitation, cash, check acceptable to the Committee, withholding (netting)
Units from the payment of the Award, a “cashless-broker” exercise through
procedures approved by the Committee, or any combination of the above methods.

 

(iii)          Forfeitures.  Except as otherwise provided in the terms of
the Option or UAR grant, upon termination of a Participant’s employment or
consulting services with the Partnership, General Partner or their Affiliates,
or membership on the Board, whichever is applicable, for any reason during the
applicable Restricted Period, all unvested Options and UARs shall be forfeited
by the Participant.  The Committee may,
in its discretion, waive in whole or in part such forfeiture with respect to a
Participant’s Options or UARs.

 

(b)           Restricted Units and Phantom Units.  The Committee shall have the authority to
determine the Employees, Consultants and Directors to whom Restricted Units and
Phantom 

 

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Units shall be granted, the number of Restricted
Units or Phantom Units to be granted to each such Participant, the Restricted
Period, the conditions under which the Restricted Units or Phantom Units may
become vested or forfeited and such other terms and conditions as the Committee
may establish with respect to such Awards which may include, without
limitation, a provision for accelerated vesting upon the death or Disability of
a Participant, the achievement of specified performance goals and such other
events as the Committee may provide.

 

(i)            DERs.  To the extent provided by the Committee, in
its discretion, a grant of Phantom Units may include a tandem grant of DERs,
which may provide that such DERs shall be paid directly to the Participant at
the time of a distribution with respect to a Unit, be credited to a bookkeeping
account (with or without interest in the discretion of the Committee), be “reinvested”
in Restricted Units or additional Phantom Units and be subject to the same or
different vesting restrictions as the tandem Phantom Unit Award, or be subject
to such other provisions or restrictions as determined by the Committee in its
discretion.  DERs shall be credited to a
Participant’s DER Account at the time of the corresponding distribution with
respect to a Unit.  Absent any such
provisions in the Award Agreement with respect to DERs granted in tandem with a
Phantom Unit, upon a distribution with respect to a Unit, cash equal in value
to such Unit distribution shall be paid promptly to the Participant by the
General Partner without vesting restrictions with respect to each tandem
Phantom Unit then held.

 

(ii)           UDRs.  To the extent provided by the Committee, in
its discretion, a grant of Restricted Units may provide that the distributions
made by the Partnership with respect to the Restricted Units shall be subject
to the same forfeiture and other restrictions as the Restricted Unit and, if
restricted, such distributions shall be held, without interest, until the Restricted
Unit vests or is forfeited with the UDR being paid or forfeited at the same
time, as the case may be.  In addition,
the Committee may provide that such distributions be used to acquire additional
Restricted Units for the Participant. 
Such additional Restricted Units may be subject to such vesting and
other terms as the Committee may proscribe. 
Absent such a restriction on the UDRs in the Award Agreement, upon a
distribution with respect to the Restricted Unit, such distribution shall be
paid promptly to the holder of the Restricted Unit without vesting
restrictions.

 

(iii)          Forfeitures.  Except as otherwise provided in the terms of
the Restricted Units or Phantom Units grant agreement, upon termination of a
Participant’s employment or consulting services with the Partnership, General
Partner or their Affiliates, or membership on the Board, whichever is
applicable, for any reason during the applicable Restricted Period, all
outstanding, unvested Restricted Units and Phantom Units awarded the Participant
shall be automatically forfeited on such termination.  The Committee may, in its discretion, waive
in whole or in part such forfeiture with respect to a Participant’s Restricted
Units and/or Phantom Units.

 

(iv)          Lapse of Restrictions.

 

(A)          Phantom Units.  Upon or as soon as reasonably practical
following the vesting of each Phantom Unit, but not later than 30 days after
such vesting unless the Award Agreement specifically provides for a later date,
subject to

 

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satisfying the tax withholding obligations of Section 8(b),
the Participant shall receive from the General Partner one Unit or cash equal
to the Fair Market Value of a Unit, as determined by the Committee in its
discretion.

 

(B)           Restricted Units.  Upon or as soon as reasonably practical
following the vesting of each Restricted Unit, subject to satisfying the tax
withholding obligations of Section 8(b), the Participant shall have the
restrictions removed from his or her Unit certificate so that the Participant
then holds an unrestricted Unit.

 

(c)           Unit Awards.  Unit Awards may be granted under the Plan to
such Employees, Consultants and Directors and in such amounts as the Committee,
in its discretion, may select.  Such
Awards may be in addition to, or in satisfaction of, cash compensation, whether
base salary, incentive or deferred compensation or otherwise, due the
individual.

 

(d)           Other Unit-Based Awards.  Other Unit-Based Awards may be granted under
the Plan to such Employees, Consultants and Directors and in such amounts as
the Committee, in its discretion, may select. 
An Other Unit-Based Award shall be an award denominated in, valued in or
otherwise based on or related to Units, in whole or in part.  The Committee shall determine the terms and
conditions of any such Other Unit-Based Award. 
Upon vesting, an Other Unit-Based Award may be paid in cash, Units
(including Restricted Units) or any combination thereof as provided in the
Award Agreement.

 

(e)           General.

 

(i)            Awards May Be Granted
Separately or Together. 
Awards may, in the discretion of the Committee, be granted either alone
or in addition to, in tandem with, or in substitution for any other Award
granted under the Plan or any award granted under any other plan of the
Partnership, an Affiliate or any other Person. 
Awards granted in addition to or in tandem with other Awards or awards
granted under any other plan of the Partnership, an Affiliate or any other
Person may be granted either at the same time as or at a different time from
the grant of such other Awards or awards.

 

(ii)           Limits on Transfer of
Awards.

 

(A)          Except as provided in
subparagraph (C) below, each Option and Unit Appreciation Right shall be
exercisable only by the Participant during the Participant’s lifetime, or by
the person to whom the Participant’s rights shall pass by will or the laws of
descent and distribution.

 

(B)           Except as provided in
subparagraph (A) above or subparagraph (C) below, no Award and no
right under any such Award may be assigned, alienated, pledged, attached, sold
or otherwise transferred or encumbered by a Participant (or any permitted
transferee or successor holder of the Participant) and any such purported
assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall
be void and unenforceable against the General Partner, the Partnership and
their Affiliates.

 

7

 

(C)           To the extent specifically
provided and approved by the Committee with respect to an Award, an Award may
be transferred by a Participant without consideration to immediate family
members or related family trusts, limited partnerships or similar entities on
such terms and conditions as the Committee may from time to time establish.

 

(iii)          Term of Awards.  The term of each Award shall be for such
period as may be determined by the Committee.

 

(iv)          Unit Certificates.  All certificates for Units or other
securities of the Partnership delivered under the Plan pursuant to any Award or
the exercise thereof shall be subject to such stop transfer orders and other
restrictions as the Committee may deem advisable under the Plan or the rules,
regulations, and other requirements of the SEC, any stock exchange upon which
such Units or other securities are then listed, and any applicable federal or
state laws, and the Committee may cause a legend or legends to be inscribed on
any such certificates to make appropriate reference to such restrictions.

 

(v)           Consideration for Grants.  Awards may be granted for such consideration,
including services, as the Committee shall determine.

 

(vi)          Delivery of Units or other
Securities and Payment by Participant of Consideration.  Notwithstanding anything in the Plan or any
Award Agreement to the contrary, delivery of Units pursuant to the exercise or
vesting of an Award may be deferred for any period during which, in the good
faith determination of the Committee, the General Partner is not reasonably
able to obtain Units to deliver pursuant to such Award without violating
applicable law or the applicable rules or regulations of any governmental
agency or authority or securities exchange. 
No Units or other securities shall be delivered pursuant to any Award
until payment in full of any amount required to be paid pursuant to the Plan or
the applicable Award grant agreement (including, without limitation, any
exercise price or tax withholding) is received by the General Partner or
appropriate Affiliate.

 

SECTION 7.           Amendment and Termination.

 

Except
to the extent prohibited by applicable law:

 

(a)           Amendments to the Plan.  Except as required by the rules of the
principal securities exchange on which the Units are traded or provided in any
Award Agreement and subject to Section 7(b) below, the Board may
amend, alter, suspend, discontinue, or terminate the Plan in any manner without
the consent of any member, Participant, other holder or beneficiary of an
Award, or any other Person.  In addition,
except in connection with a corporate transaction involving the General Partner
(including, without limitation, any unit, unit split, extraordinary cash
distribution, recapitalization, reorganization, merger, consolidation,
split-up, spin-off, combination, or exchange of units), the terms of
outstanding Awards may not be amended to reduce the exercise price of
outstanding Options or SARs or cancel outstanding Options or SARs in exchange
for cash, other Awards or Options or SARs with an exercise price that is less
than the exercise price of the original Options or SARs without unitholder
approval.  Notwithstanding 

 

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the foregoing, the Plan may not be terminated with
respect to an Award that is subject to Section 409A of the Internal
Revenue Code of 1986, as amended, unless such termination would not result in
the Award becoming subject to the additional tax under Section 409A.

 

(b)           Amendments to Awards.  Subject to Section 7(a), the Board or
the Committee may waive any conditions or rights under, amend any terms of, or
alter any Award theretofore granted, provided no change, other than pursuant to
Section 7(c), in any Award shall materially reduce the vested rights or
benefits (as contrasted with a contingent right or benefit) of a Participant
(or holder) with respect to an outstanding Award without the consent of such
Participant (or holder).  Notwithstanding
anything in the Plan to the contrary, no amendment may be made with respect to
an Award without the Participant’s consent that would cause the Participant to
incur the additional tax provided under Section 409A with respect to such Award.

 

(c)           Actions Upon the Occurrence of Certain Events.  Upon the occurrence of a Change of Control, a
recapitalization, reorganization, merger, consolidation, combination, exchange
or change in the capitalization of the Partnership, any change in applicable
law or regulation affecting the Plan or Awards thereunder, or any change in
accounting principles affecting the financial statements of the General Partner
or the Partnership, the Committee, in its sole discretion, without the consent
of any Participant or holder of the Award, and on such terms and conditions as
it deems appropriate, may take any one or more of the following actions in
order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan or an outstanding Award:

 

(i)            provide for either (A) the
termination of any Award in exchange for an amount of cash, if any, equal to
the amount that would have been then attained upon the exercise or vesting of
such Award (and, for the avoidance of doubt, if as of the date of the
occurrence of such transaction or event the Committee determines in good faith
that no amount would have been then attained upon the exercise or vesting of
such Award then such Award may be terminated by the Committee without payment)
or (B) the replacement of such Award with other rights or property
selected by the Committee in its sole discretion;

 

(ii)           provide that such Award be
assumed by the successor or survivor entity, or a parent or subsidiary thereof,
or be exchanged for similar options, rights or awards covering the equity of
the successor or survivor, or a parent or subsidiary thereof, with appropriate
adjustments as to the number and kind of equity interests and prices;

 

(iii)          make adjustments in the
number and type of Units (or other securities or property) subject to
outstanding Awards, and in the number and kind of outstanding Awards or in the
terms and conditions of (including the exercise price), and the vesting  and performance criteria included in,
outstanding Awards, or both;

 

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(iv)          provide that such Award
shall be exercisable or payable, notwithstanding anything to the contrary in
the Plan or the applicable Award Agreement; and

 

(v)           provide that the Award cannot
be exercised or become payable after such event, i.e.,
the Award shall terminate upon such event.

 

Notwithstanding
the foregoing, with respect to an above event that is an “equity restructuring”
event that would result in a compensation expense pursuant FAS 123R, the
provisions in Section 4(c) shall control to the extent they are in
conflict with the discretionary provisions of this Section 7.

 

SECTION 8.           General Provisions.

 

(a)           No Rights to Award.  No Person shall have any claim to be granted
any Award under the Plan, and there is no obligation for uniformity of
treatment of Participants.  The terms and
conditions of Awards need not be the same with respect to each Participant.

 

(b)           Tax Withholding.  Unless other arrangements have been made that
are acceptable to the Committee, the General Partner and any applicable
Affiliate-employer is authorized to withhold from any Award, from any payment
due or transfer made under any Award or from any compensation or other amount
owing to a Participant the amount (in cash, Units, Units that would otherwise
be issued pursuant to such Award or other property) of any applicable taxes
required to be withheld in respect of the grant of an Award, its exercise, the
lapse of restrictions thereon, or any payment or transfer under an Award or
under the Plan and to take such other action as may be necessary in the opinion
of the Committee to satisfy the tax withholding obligations with respect to
such Award.  Notwithstanding the foregoing,
with respect to any Participant who is subject to Rule 16b-3, such tax
withholding automatically shall be effected by the General Partner “netting” or
withholding Units otherwise deliverable to the Participant on the vesting or
payment of such Award.

 

(c)           No Right to Continued Employment, Consulting or
Board Membership.  The grant
of an Award shall not be construed as giving a Participant the right to be
retained in the employ of or provide consulting services to the General Partner
or any Affiliate or to remain on the Board, as applicable.  Furthermore, the General Partner or an
Affiliate may at any time dismiss a Participant from employment or services or
the Board free from any liability or any claim under the Plan, unless otherwise
expressly provided in the Plan, any Award Agreement or other agreement.

 

(d)           Governing Law.  The validity, construction, and effect of the
Plan and any rules and regulations relating to the Plan shall be
determined in accordance with the laws of the State of Delaware without regard
to its conflicts of laws principles.

 

(e)           Severability.  If any provision of the Plan or any Award is
or becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction or as to any Person or Award, or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to the applicable law or, if it cannot
be construed or deemed amended without, in the determination of the Committee, 

 

10

 

materially altering the intent of the Plan or the
Award, such provision shall be stricken as to such jurisdiction, Person or
Award and the remainder of the Plan and any such Award shall remain in full
force and effect.

 

(f)            Other Laws.  The Committee may refuse to issue or transfer
any Units or other consideration under an Award if, in its sole discretion, it
determines that the issuance or transfer of such Units or such other
consideration might violate any applicable law or regulation, the rules of
the principal securities exchange on which the Units are then traded, or
entitle the Partnership or an Affiliate to recover the same under Section 16(b) of
the Exchange Act, and any payment tendered by a Participant, other holder or
beneficiary in connection with the exercise of such Award shall be promptly
refunded to the relevant Participant, holder or beneficiary.

 

(g)           No Trust or Fund Created.  Neither the Plan nor any Award shall create
or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Partnership or any participating Affiliate and a
Participant or any other Person.  To the
extent that any Person acquires a right to receive payments from the
Partnership or any participating Affiliate pursuant to an Award, such right
shall be no greater than the right of any general unsecured creditor of the
Partnership or any participating Affiliate.

 

(h)           No Fractional Units.  No fractional Units shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities, or other property shall be paid or transferred
in lieu of any fractional Units or whether such fractional Units or any rights
thereto shall be canceled, terminated, or otherwise eliminated.

 

(i)            Headings.  Headings are given to the Sections and
subsections of the Plan solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way
material or relevant to the construction or interpretation of the Plan or any
provision thereof.

 

(j)            Facility Payment.  Any amounts payable hereunder to any person
under legal disability or who, in the judgment of the Committee, is unable to
manage properly his financial affairs, may be paid to the legal representative
of such person, or may be applied for the benefit of such person in any manner
that the Committee may select, and the General Partner and all Affiliates shall
be relieved of any further liability for payment of such amounts.

 

(k)           Gender and Number.  Words in the masculine gender shall include
the feminine gender, the plural shall include the singular and the singular
shall include the plural.

 

(l)            Compliance with IRC Section 409A.  The Plan and the Award Agreements are
intended to be exempt from Section 409A of the Internal Revenue Code of
1986, as amended, or, if not exempt, to comply with Section 409A to the
extent applicable.  To the extent Section 409A
is applicable, the terms of the Plan and Award Agreements shall be construed as
necessary to comply with Section 409A. 
The provisions of Section 409A and the Treasury regulations
thereunder required to be in the Plan or an Award Agreement are hereby
incorporated by reference and shall control over any provision in conflict
therewith, unless such provision expressly provides to the contrary.  If a payment under an Award is subject to the
provisions of Section 409A(a)(2)(B)(i), such payment shall be delayed to
comply with said Section and shall 

 

11

 

be paid in a lump sum (without interest) on (i) the
first day that is more than six months after the Participant’s separation from
service date or (ii) his death, if earlier.

 

(m)          Participation by Affiliates.  To the extent the Partnership has an
obligation to reimburse the General Partner or an Affiliate for compensation
paid for services rendered for the benefit of the Partnership, such
reimbursements may be made by the Partnership directly or indirectly to the
entity employing the Participant.

 

SECTION 9.           Term of the Plan.

 

The
Plan shall be effective on the day immediately preceding the effective date of
the initial public offering of Units; provided, however, no Award shall become
vested or exercisable prior to the closing date of the initial public offering
of Units.  Subject to the preceding
sentence, the Plan shall continue until the earliest of (i) the date it is
terminated by the Board, (ii) all Units available under the Plan have been
paid to Participants or beneficiaries, or (iii) the 10th anniversary of
the date the Plan is adopted by the Board; provided, however, any Award granted
prior to such termination, and the authority of the Board or the Committee to
amend, alter, adjust, suspend, discontinue, or terminate any such Award or to
waive any conditions or rights under such Award, shall extend beyond such
termination date.

 

12Exhibit
10.1

 

SEMTECH CORPORATION

 

EXECUTIVE CHANGE IN CONTROL RETENTION PLAN

 

Semtech
Corporation (“Semtech”) has
established this Semtech Corporation Executive Change in Control Retention Plan
(the “Plan”) for certain of its
executive officers who report to Semtech’s Chief Executive Officer
(collectively, the “Executives”)
to provide incentives for Plan Participants to exert maximum efforts for
Semtech’s success even in the face of a potential Change in Control (as defined
in Section 1).  The Plan provides
for cash payments, certain accelerated vesting of equity rights, and other
benefits.  The Plan took effect on September 28,
2010 (the “Effective Date”)  and will remain in effect until terminated
in accordance with Section 12.  This
document constitutes both the formal plan document and the summary plan
description of the Plan.  This Plan will
control in case of conflict with any other document, unless the Plan states
otherwise.  The Plan is an employee
welfare benefit plan within the meaning of section 3(1) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”).  Participant’s
ERISA rights are described at the end of the document.  Except as defined elsewhere in this Plan,
capitalized terms used herein shall have the meanings set forth in
Section 1.

 

1.             DEFINITIONS.  For purposes of this Plan only,
capitalized terms used herein shall have the following meanings:

 

(a)           “Administrative Committee” means, with respect to all periods
of time prior to a Change in Control, the Compensation Committee of Semtech’s
Board of Directors (“Compensation Committee”)
as constituted from time to time and means, with respect to all periods of time
on or after a Change in Control, the Compensation Committee as it was
constituted immediately prior to a Change in Control.

 

(b)           “Affiliate” means any parent corporation of Semtech or other
subsidiary corporation, whether now or hereafter existing, as those terms are
defined in Section 422(e) and (f) respectively, of the Code.

 

(c)           “Base Salary” means the highest base salary (expressed as an
annual amount) paid to a Participant by Semtech or an Affiliate during the six
months prior to a Change in Control (calculated before any deductions or
deferrals).

 

(d)           “Board” means Semtech’s Board of Directors or any subcommittee
thereof.

 

(e)           “Cause” means that a Participant (i) has engaged in an act
of personal dishonesty in connection with the Participant’s responsibilities as
a Semtech or Affiliate employee which is intended to result in a substantial
personal benefit to the Participant, the Participant’s family, or any entity in
which any of them have a substantial beneficial interest; (ii) was
convicted of or entered a plea of guilty or nolo
contendere to a crime that constitutes a felony (other than traffic
related offenses not involving serious bodily injury); (iii) has committed
an act or engaged in an omission which constitutes willful misconduct or gross
negligence and is materially injurious, or reasonably expected to result in
material injury, to Semtech or an Affiliate; 
(iv) willfully failed to follow the lawful directives of the Board
or the 

 

1

 

Chief Executive Officer that
are consistent with such Participant’s position or duties; or
(v) materially breached any Central Agreement or written policy of Semtech
or any of its Affiliates.

 

(f)            “Central Agreements” means the Semtech Code of Conduct, the
Semtech Policy Regarding Confidential Information and Insider Trading for All
Employees, the Semtech Invention Agreement & Secrecy Agreement, the
Semtech Employee Confidentiality Agreement and Proprietary Rights Assignment,
and any other written agreement between a Participant and Semtech (regardless
of when such agreements become effective).

 

(g)           “Change in Control” means: 
(i) a sale of all or substantially all of the assets of Semtech or
(ii) the acquisition of more than 50% of the voting power of the
outstanding securities of Semtech by another entity by means of any transaction
or series of related transactions (including, without limitation,
reorganization, merger or consolidation) unless the Semtech stockholders of
record, as applicable, as constituted immediately prior to such acquisition
will, immediately after such acquisition (by virtue of their continuing to hold
such stock and/or their receipt in exchange therefor of securities issued as
consideration for the outstanding stock of Semtech, as applicable) hold at
least 50% of the voting power of the surviving or acquiring entity.

 

(h)           “Change in Control Window” means the period (i) beginning
90 days prior to the earlier of (a) the execution of a letter of
intent relating to a Change in Control transaction, if any, or (b) the
execution of a definitive agreement with respect to a Change in Control
transaction; in either case, provided that the Change in Control with the party
to the letter of intent or definitive agreement is consummated within
one year following such execution, and (ii) ending on the second
anniversary of such Change in Control; provided, however, that
the application of the Change in Control Window pursuant to this Plan shall not
cause any Stock Awards which have lapsed to become exercisable.

 

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

 

(j)            “Common Stock” means the common stock of Semtech.

 

(k)           “Competitor” means any individual, party, firm, company, or
other entity, including, but not limited to, governmental, commercial, and
academic entities, which conducts or intends to conduct activities relating to
any business performed or contemplated to be performed by Semtech including,
but not limited to, the business of supplying analog or mixed-signal
semiconductor products or the design, production, or sales of integrated
circuits for end market applications in which Semtech’s products are used
including, but not limited to, Intersil Corporation, International
Rectifier Corporation, Maxim Integrated Products, Analog Devices, Inc.,
Linear Technology Corporation, National Semiconductor Corporation, Micrel, Inc.,
Microsemi Corporation, Texas Instruments, Inc. and any company in the peer
group of competitors used from time to time in conjunction with the issuance of
performance-based stock options by Semtech.

 

(l)            “Good Reason” means the occurrence without the written consent
of a Participant of any one of the following acts by Semtech or an Affiliate:

 

2

 

(i)            A Participant’s Base Salary
or annual bonus potential is materially diminished;

 

(ii)           A material breach of a
Participant’s written employment agreement with Semtech or an Affiliate (unless
the individual’s Letter Agreement provides otherwise);

 

(iii)          A Participant’s authority,
duties, or responsibilities are materially diminished; or

 

(iv)          Semtech or an Affiliate
reassigns a Participant’s primary place of employment to a location that is  more than seventy-five (75) miles from
such Participant’s primary place of employment as of immediately prior to the
date such reassignment is announced and that reassignment materially and
adversely affects a Participant’s commute based on such Participant’s principal
place of employment immediately prior to the time such reassignment is
announced;

 

provided, however, that (a) a Participant must
provide Semtech with written notice of the Participant’s intent to terminate
his or her employment and a description of the event the Participant believes
constitutes Good Reason within 60 days after the initial existence of the event
and (b) Semtech or an Affiliate (as applicable) shall have 60 days after a
Participant provides the notice described above to cure the default that
constitutes Good Reason (the “Cure Period”).  A Participant will have 30 days following the
end of the Cure Period (if Semtech or an Affiliate has not cured the event that
otherwise constituted Good Reason) to terminate Participant’s employment, after
which Good Reason will no longer exist.

 

(m)          “Letter Agreement” means a letter signed by a duly authorized
Semtech officer in the form approved by the Administrative Committee confirming
an Executive’s eligibility for the Plan.

 

(n)           “Participant”
means an eligible Executive participating in the Plan.

 

(o)           “Performance Unit” means a restricted stock unit that is
subject to performance-based, rather than time-based, vesting.

 

(p)           “Required Accounting Restatement” shall mean an accounting
restatement that is required due to Semtech’s material noncompliance with any
financial reporting requirement under applicable securities laws.

 

(q)           “Stock Awards” means any stock option, restricted stock unit,
restricted stock, or other equity-based compensation with respect to Common
Stock (whether settled in Common Stock or cash) granted to a Participant prior
to a Change in Control, but excluding Performance Units.

 

2.             PLAN
ELIGIBILITY.  An Executive is eligible for this Plan only
if (a) the Administrative Committee has approved in writing such Executive’s
participation in the Plan and (b) Semtech has provided such Executive with
a Letter Agreement.  If such Executive 

 

3

 

executes the Letter Agreement and returns it to
Semtech within 30 days (or such shorter period as determined by the
Administrative Committee) after receiving it, such Executive will become a
Participant on the date Semtech receives the properly executed Letter
Agreement.

 

3.             PARACHUTE
PAYMENTS.

 

(a)           Notwithstanding the other
provisions of this Plan (other than subsection (b) below), in the event
that any payment or benefit received or to be received by a Participant
pursuant to this Plan or otherwise (collectively, the “Payments”) would result in a “parachute
payment” as described in Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”),
such Payments shall be reduced by the minimum amount necessary to ensure that
they do not, in the aggregate, exceed the maximum amount that may be paid to
such Participant without triggering golden parachute penalties under Section 280G
and related provisions of the Code, such as Section 4999 (the “Cut-Back Payment”).

 

(b)           If, instead of receiving the
Cut Back Payment, a Participant would realize increased net Payments (after (i) taking
into account payment of federal, state and local income, payroll, and excise
taxes on such Payments and (ii) reducing the Payments by the cost of any
lost deduction to Semtech by virtue of application of Section 4999 of the
Code), Section 3(a) shall not apply and such Participant shall
instead receive the Payments, less the cost of any lost deduction to Semtech by
virtue of application of Section 4999 of the Code.

 

(c)           If any Payments must be
reduced or forfeited under subsection (a) or (b), they shall be cut back
in the following order (unless cutting Payments back in such order would result
in the imposition on the Participant of an additional tax under Section 409A
of the Code (or similar state or local law) and cutting the Payments back in
another order would not, in which case benefits shall instead be cut back in
such other order):  First, all Payments
that do not constitute “nonqualified deferred compensation” within the meaning
of Section 409A of the Code (in the order designated by the
Participant).  Second, all Payments that
constitute “nonqualified deferred compensation” within the meaning of Section 409A
of the Code that were granted to the Participant in the 12-month period of time
preceding the applicable Change in Control, in the order such benefits were
granted to the Participant.  Third, all
remaining Payments shall be reduced prorata.

 

(d)           If a Participant receives an
amount in excess of the limit set forth in this Section 3, the Participant
shall repay the excess amount to Semtech on demand, with interest at the rate
provided for in Internal Revenue Code Section 1274(b)(2)(B) (or any
successor provision).  Semtech and each
Participant agree to cooperate with each other in connection with any
administrative or judicial proceedings concerning the existence or amount of
golden parachute penalties.

 

(e)           All calculations required
under this Section 3 shall be performed by the accounting firm engaged by
Semtech for general audit purposes as of the day prior to the effective date of
the Change in Control described in Code Section 280G(b)(2)(a)(i).  All determinations required to be made under
this Section 3 (other than determinations pursuant to Section 3(c))
shall be made by such independent accountants. 
If the accounting firm so engaged by Semtech is serving as accountant or
auditor for the individual, entity or group effecting the Change in Control or
otherwise has a conflict of interest or is unwilling to perform such 

 

4

 

calculations, Semtech shall
appoint a nationally recognized accounting firm to make the determinations
required hereunder.  Semtech shall bear
all expenses with respect to the determinations by such accounting firm.

 

(f)            The accounting firm engaged
to make the determinations hereunder shall provide its calculations, together
with detailed supporting documentation, to the Participant and Semtech within
15 calendar days following the Change in Control and at such other time as may
be reasonably requested by the Participant or Semtech.  Any good faith determinations of the
accounting firm made hereunder shall be final, binding and conclusive on the
Participant and Semtech.

 

4.             ACCELERATION
OF STOCK AWARDS IN THE EVENT OF A CHANGE IN CONTROL.  Unless a Participant’s Letter
Agreement provides otherwise, the terms of this Section 4 shall apply in
the event of a Change of Control.

 

(a)           Stock Awards.  The
vesting and (if applicable) exercisability of each Stock Award that is
outstanding as of a Change in Control shall be accelerated in full with respect
to each Participant who is employed with Semtech or an Affiliate on the day
immediately prior to the effective date of such Change in Control.  In addition, if (i) a Change in Control
occurs and (ii) a Participant’s employment was involuntarily terminated by
Semtech or an Affiliate without Cause or by the Participant for Good Reason (in
either case, during a Change in Control Window, but prior to the occurrence of
a Change in Control), then the vesting and (if applicable) exercisability of
each Stock Award that had not expired or terminated prior to the Change in
Control shall be accelerated in full immediately prior to the Change in
Control.

 

(b)           Performance Units.  The “Performance Period” (as defined in the
relevant plan and grant documents) for each Performance Unit award held by a
Participant as of a Change in Control shall terminate effective as of the
most-recently completed Semtech fiscal year and the number of Performance Units
that shall vest immediately with respect to such award shall be determined
based on actual Semtech performance during the shortened Performance
Period.  In determining such vesting, any
relevant performance goals shall be prorated based on the percentage of the
Performance Period that had elapsed as of the end of the most-recent Semtech
fiscal year.  Any Performance Unit that
does not vest after giving effect to the prior two sentences shall terminate as
of the Change in Control.  In addition,
if (i) a Change in Control occurs and (ii) a Participant’s employment
was involuntarily terminated by Semtech or an Affiliate without Cause or by the
Participant for Good Reason (in either case, during a Change in Control Window,
but prior to the occurrence of a Change in Control), then the vesting of each
Performance Unit award that had not expired or terminated prior to the Change
in Control shall be determined as described above.

 

Example:

 

The following example demonstrates the effect of proration on the
cumulative operating income (COI) and cumulative net revenue (NR) targets with
respect to a hypothetical Performance Unit award that has a 2012-2014 fiscal
year performance period, assuming that a change in control occurred on July 30,
2013 (i.e., after completion of the first fiscal year) and July 30, 2014
(i.e., after completion of the second fiscal year):

 

5

 

	
   

  	
   

  	
  COI/NR Targets

  Before Change in

  Control

  	
   

  	
  COI/NR Targets

  After Change in

  Control in Year 1

  	
   

  	
  COI/NR Targets

  After Change in

  Control in Year 2

  	
   

  
	
  90% Vesting

  	
   

  	
  $300,000/$600,000

  	
   

  	
  $100,000/$200,000

  	
   

  	
  $200,000/$400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  100% Vesting (i.e., target)

  	
   

  	
  $600,000/$900,000

  	
   

  	
  $200,000/$300,000

  	
   

  	
  $400,000/$600,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  110% Vesting

  	
   

  	
  $900,000/$1,200,000

  	
   

  	
  $300,000/$400,000

  	
   

  	
  $600,000/$800,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Relevant Performance Period

  	
   

  	
  Fiscal
  years 2012-2014

  	
   

  	
  Fiscal
  year 2012

  	
   

  	
  Fiscal
  years 2012-2013

  	
   

  

 

Thus, assuming that the Performance Unit award had a target of 12,000
Performance Units, if a change in control occurred on July 30, 2014 and
Semtech’s COI for fiscal years 2012 and 2013 was exactly $200,000,000 and
(b) Semtech’s NR for fiscal years 2012 and 2013 was exactly $400,000,000,
then (according to the chart above) 90% of the target Performance Units (i.e., 10,800) would vest immediately prior
to the Change in Control.

 

Any
reacquisition or repurchase rights held by Semtech with respect to the shares
of Common Stock for which vesting is accelerated pursuant to this Section 4
shall lapse in full as appropriate.

 

5.             SEVERANCE.

 

(a)           Unless a Participant’s
Letter Agreement provides otherwise, if Semtech or an Affiliate terminates a
Participant’s employment without Cause during a Change in Control Window, or if
Executive terminates his or her employment for Good Reason  during a Change in Control Window, then,
in either case, subject to the terms and conditions of this Section 5, the
Participant will be entitled to the following benefits:

 

(i)            payment of an amount equal
to one times the greater of the Participant’s target bonus (as determined by
the Compensation Committee of Semtech’s Board of Directors during the relevant
fiscal years) for (A) the fiscal year in which such termination of
employment occurred or (B) the fiscal year prior to the fiscal year in
which such termination of employment occurred, which will be paid in a lump sum
at the time the bonus for the fiscal year in which such termination of
employment occurs otherwise would have been paid;

 

(ii)           payment of an amount equal
to 12 months of the Participant’s Base Salary, paid in a single lump sum (15
days following the seven-month anniversary of such termination of employment if
employment was terminated on or after a Change in Control, but during a Change
in Control Window or 15 days following the seven-

 

6

 

month anniversary of the
applicable Change in Control if employment was terminated prior to a Change in
Control, but during a Change in Control Window);

 

(iii)          reimbursement of the Participant’s
COBRA coverage premiums (if applicable) under Semtech’s fully-insured group
health plans for the Participant and his or her dependents who are then covered
by such plans until the earlier of (A) 12 months following such
termination of employment; (B) such other date on which the Participant is
eligible to enroll for coverage under another group health plan; or
(C) the date on which the Participant no longer qualifies for COBRA
continuation coverage under the normal COBRA rules; provided, however,
that no such reimbursement shall be made if it would result in adverse tax
consequences, as determined by the Administrative Committee.

 

Any reimbursement request under this Section 5(a) must
be made within 60 days of incurring the expense and must be accompanied with
proof of payment and any such reimbursement will be made within 60 days after
receipt of a properly submitted request. 
Any reimbursement under this Section 5(a) in one taxable year
will not affect the amount available for reimbursement in any other taxable
year.

 

(b)           In order to receive any
benefits or payments under Section 5(a), a Participant must execute and
deliver to Semtech a valid waiver and release of claims against Semtech, all
current and former, direct and indirect parents, subsidiaries, and all other
affiliates and related partnerships, joint ventures, or other related entities,
and, with respect to each of them, their predecessors and successors and, with
respect to each such entity, all of its past, present, and future employees,
officers, directors, stockholders, owners, representatives, assigns, attorneys,
agents, insurers, employee benefit programs (and the trustees, administrators,
fiduciaries, and insurers of such programs), and any other persons acting by,
through, under or in concert with any of the persons or entities listed in this
Section 5(b), and their successors, all in their respective capacities as
such, in a form tendered by Semtech (the “Release
Agreement”) no later than 45 days after a Participant’s termination
of employment or, if later, no later than 45 days from the commencement of the
Applicable Change in Control Window and the period within which such
Participant may revoke his or her Release Agreement has expired without
revocation (which period shall not be longer than 15 days, unless a longer
period is required by applicable law which, in any event, shall not extend
beyond the date the first payment is due to a Participant under this Section 5).  The Release Agreement shall be substantially
in the form attached hereto as Appendix 1. 
The Administrative Committee has the authority to amend or adopt a new
form of Appendix 1 at any time prior to the commencement of a Change in
Control Window.  If the Administrative
Committee has not amended or adopted a new form of Appendix 1 prior to the
commencement of a Change in Control Window, the Release Agreement shall be
substantially in the form attached hereto as Appendix 1; provided, however,
that the Administrative Committee shall, after the commencement of a Change in
Control Window, continue to have the authority to make changes to Appendix 1
that it reasonably determines are required to (i) comply with applicable
law or (ii) address changes in the law that have occurred after the
effective date of this Plan.  Any amendment
or adoption of a new form of Appendix 1 permitted by this Section 5(b) shall
not be considered an amendment of this Plan.

 

(c)           If a Participant timely
revokes his or her Release Agreement, such Participant shall not be eligible to
receive any benefits or payments under Section 5(a).

 

7

 

6.             ADJUSTMENTS
UPON CHANGES IN COMMON STOCK.  All references to the Stock Awards referenced
in this Plan shall include and shall be appropriately adjusted by Semtech to
reflect any stock split, stock dividend, stock combination or other change in
the Common Stock which may be made by Semtech after the date this Plan is
adopted.

 

7.             FORFEITURE
OF PLAN BENEFITS.

 

(a)           Competition.  In the event that a Participant directly or
indirectly, whether as an employee, independent contractor, or consultant, or
otherwise (whether for pay or otherwise) provides any services to a Competitor
(without first obtaining written approval from the Administrative Committee)
prior to the one-year anniversary of such Participant’s termination of
employment, the Participant shall irrevocably forfeit all unpaid Plan benefits
as of the date that such Participant first provided services to a
Competitor.  To the extent that any
Participant received any Plan benefits prior to engaging in such activity
(without first obtaining written approval from the Administrative Committee),
the Participant shall return to Semtech all such Plan benefits within 15 days
of receiving written demand therefor. 
Notwithstanding the foregoing, this Section 7 shall not apply to a
Participant to the extent that his or her Letter Agreement expressly provides
that this Section 7 does not apply to such Participant.

 

(b)           Breach of Certain Other
Agreements.  In the
event that a Participant materially breaches any Central Agreement prior to
receipt of all Plan benefits, the Participant shall irrevocably forfeit all
unpaid Plan benefits as of the date that such Participant first materially
breached any such Central Agreement.  To
the extent that any Participant inadvertently receives Plan benefits after
materially breaching any Central Agreement, the Participant shall return to
Semtech all such Plan benefits within 15 days of receiving written demand
therefor.

 

(c)           Accounting Restatement.  In the event that Semtech prepares a Required
Accounting Restatement, each Participant or former Participant shall pay to
Semtech on demand any amounts required to be returned to Semtech by Section 954
of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or the
rules and/or the applicable listing standards promulgated thereunder or in
connection therewith (collectively, the “2010
CPA”).

 

8.             NOTICES.  Any notices provided for in
this Plan shall be given in writing and shall be deemed effectively given upon
receipt or, in the case of notices delivered by Semtech to a Participant,
five days after deposit in the United States mail, postage prepaid,
addressed to such Participant at the address specified in Semtech’s corporate
records or at such other address as such Participant designates by written
notice to Semtech.

 

9.             CLAIMS
PROCEDURES.

 

(a)           Claims Normally Not Required.

 

Normally,
a Participant does not need to present a formal claim to receive benefits
payable under this Plan.

 

8

 

(b)           Disputes.

 

If
any person (claimant) believes that benefits are being denied improperly, that
the Plan is not being operated properly, that fiduciaries of the Plan have
breached their duties, or that the claimant’s legal rights are being violated
with respect to the Plan, the claimant must file a formal claim with the
Administrative Committee.  This
requirement applies to all claims that any claimant has with respect to the
Plan, including claims against fiduciaries and former fiduciaries, except to
the extent the Administrative Committee determines, in its sole discretion,
that it does not have the power to grant all relief reasonably being sought by
the claimant.

 

(c)           Time for Filing Claims.

 

A
formal claim must be filed no later than 90 days after any payment pursuant to
Section 5(a) should have been made, unless the Administrative Committee in
writing consents otherwise.  The
Administrative Committee will provide a claimant, on request, with a copy of
the claims procedures established under subsection 9(d).

 

(d)           Procedures.

 

The
Administrative Committee will adopt procedures for considering claims, which it
may amend from time to time, as it sees fit. 
A claimant must file a claim for benefits on a form prescribed by the
Administrative Committee.  If the
claimant’s claim for a benefit is wholly or partially denied, the
Administrative Committee will furnish the claimant with a written notice of the
denial.  This written notice must be
provided to the claimant within a reasonable period of time (generally within
90 days, unless special circumstances require an extension of time for
processing the claim, in which case a period not to exceed 180 days) after the
receipt of the claimant’s claim by the Administrative Committee.  (If such an extension of time is required,
written notice of the extension will be furnished to the claimant prior to the
termination of the initial 90-day period, and will indicate the special
circumstances requiring the extension.) 
Written notice of denial of the claimant’s claim must contain the
following information:

 

(i)         the specific reason or
reasons for the denial;

 

(ii)        a specific reference to
those provisions of the Plan on which such denial is based;

 

(iii)       a description of any
additional information or material necessary to perfect the claimant’s claim,
and an explanation of why such material or information is necessary; and

 

(iv)       a copy of the appeals
procedures under the Plan and the time limits applicable to such procedures,
including a statement of the claimant’s right to bring a civil action under
Section 502(a) of ERISA following an adverse determination of the claimant’s
claim.

 

If
the claimant’s claim has been denied, and the claimant wishes to submit his or
her request for a review of his or her claim, the claimant must follow the
following Claims Review Procedure:

 

9

 

(i)         Upon the denial of his or
her claim for benefits, the claimant may file his or her request for review of
his or her claim, in writing, with the Administrative Committee;

 

(ii)        The claimant must file the
claim for review not later than 60 days after he or she has received written
notification of the denial of his or her claim for benefits;

 

(iii)       The claimant has the right
to review and obtain copies of all relevant documents relating to the denial of
his or her claim and to submit any issues and comments, in writing, to the
Administrative Committee;

 

(iv)       If the claimant’s claim is
denied, the Administrative Committee must provide the claimant with written
notice of this denial within 60 days after the Administrative Committee’s
receipt of the claimant’s written claim for review.  There may be times when this 60-day period
may be extended.  This extension may only
be made, however, where there are special circumstances which are communicated
to the claimant in writing within the 60-day period.  If there is an extension, a decision will be
made as soon as possible, but not later than 120 days after receipt by the Administrative
Committee of the claimant’s claim for review; and

 

(v)        The Administrative Committee’s
decision on the claimant’s claim for review will be communicated to the
claimant in writing, and if the claimant’s claim for review is denied in whole
or part, the decision will include:

 

(A)          the specific
reason or reasons for the denial;

 

(B)           specific
references to the pertinent provisions of the Plan on which the decision was
based;

 

(C)           a statement
that the claimant may receive, upon request and free of charge, reasonable
access to and copies of, all documents, records and other information relevant
to the claimant’s claim for benefits; and

 

(D)          a statement of
the claimant’s right to bring a civil action under Section 502(a) of ERISA.

 

10.           PLAN
ADMINISTRATION.

 

(a)           Discretion.

 

The
Administrative Committee is responsible for the general administration and
management of the Plan and shall have all powers and duties necessary to
fulfill its responsibilities, including, but not limited to, the discretion to
interpret and apply the Plan and to determine all questions relating to
eligibility for benefits.  The
Administrative Committee and all Plan fiduciaries shall have the discretion to
interpret or construe ambiguous, unclear, or implied (but omitted) terms in any
fashion they deem to be appropriate in their sole and absolute discretion, and
to make any findings of fact needed in the administration of the Plan.  The validity of any such interpretation,
construction, decision, or finding of fact shall not be given de

 

10

 

novo
review if challenged in court, by arbitration, or in any other forum, and shall
be upheld unless clearly arbitrary or capricious.

 

(b)           Finality of Determinations.

 

Unless
arbitrary and capricious, all actions taken and all determinations by the
Administrative Committee or by Plan fiduciaries will be final and binding on
all persons claiming any interest in or under the Plan.  To the extent the Administrative Committee or
any Plan fiduciary has been granted discretionary authority under the Plan, the
Administrative Committee’s or Plan fiduciary’s prior exercise of such authority
shall not obligate it to exercise its authority in a like fashion thereafter.

 

(c)           Drafting Errors.

 

If,
due to errors in drafting, any Plan provision does not accurately reflect its
intended meaning, as demonstrated by consistent interpretations or other
evidence of intent (by Semtech or the Administrative Committee, as the case may
be), or as determined by the Administrative Committee in its sole and absolute
discretion, the provision shall be considered ambiguous and shall be
interpreted by the Administrative Committee and all Plan fiduciaries in a
fashion consistent with its intent, as determined in the sole and absolute
discretion of the Administrative Committee (but with regard to the intent of
Semtech as settlor).

 

(d)           Scope.

 

This
Section may not be invoked by any person to require the Plan to be interpreted
in a manner inconsistent with its interpretation by the Administrative
Committee or other Plan fiduciaries.

 

11.           COSTS,
INDEMNIFICATION, AND REIMBURSEMENT FOR LITIGATION EXPENSES.

 

(a)           All costs of administering
the Plan and providing Plan benefits will be paid by Semtech.

 

(b)           To the extent permitted by
applicable law and in addition to any other indemnities or insurance provided
by Semtech, Semtech shall indemnify and hold harmless its (and its affiliates’)
current and former officers, directors, and employees against all expenses,
liabilities, and claims (including legal fees incurred to defend against such
liabilities and claims) arising out of their discharge in good faith of their
administrative and fiduciary responsibilities with respect to the Plan.  Expenses and liabilities arising out of
willful misconduct will not be covered under this indemnity.

 

12.           PLAN
AMENDMENT AND TERMINATION; LIMITATION ON EMPLOYEE RIGHTS.

 

(a)           Semtech, acting through its
Board of Directors or its delegate, has the right in its sole and absolute
discretion to amend or terminate the Plan prospectively.  The Plan shall automatically terminate on the
fifth anniversary of the Effective Date, unless (i) 

 

11

 

extended by Semtech’s Board of Directors or (ii) sooner terminated
pursuant to the preceding sentence.

 

(b)           Notwithstanding anything to
the contrary contained herein, the Administrative Committee shall have the
authority, in its sole discretion, to amend the provisions of Section 7(c) to
the extent that it determines in its sole discretion that such modification is
required by or in connection with implementation of Section 954 of the 2010
CPA.  The Administrative Committee need
not seek Participant consent with respect to any such amendment; however, to
the extent that the Administrative Committee does seek written consent any Participant
who does not consent in writing to the amendment within a reasonable timeframe
required by the Administrative Committee shall immediately cease to be a
Participant and shall permanently forfeit all Plan benefits.

 

(c)           Notwithstanding the
provisions of Section 12(a), any amendment or termination of the Plan (other
than pursuant to Section 12(b)) that occurs within a Change in Control Window
(including on account of the fifth anniversary of the Effective Date), shall
not apply to any Participant until the later of (i) the expiration of such
Change in Control Window or (ii) three months after the Administrative
Committee provides the Participant with written notice of such amendment or
termination; provided, however, an amendment or termination of the Plan
that occurs within a Change in Control Window may take immediate effect with
respect to each Participant who (a) consents individually and in writing to the
amendment or termination or (b) is not adversely affected by such
amendment or termination.

 

Notwithstanding
anything to the contrary contained in this Plan, any decision or interpretation
that is made either during a Change in Control Window or pursuant to this
subparagraph (c) shall be subject to judicial review under a de novo
standard, and not under the arbitrary and capricious standard that is generally
intended to apply (and shall apply) to all other Plan determinations and
interpretations.

 

(d)           This Plan shall not give any
employee the right to be retained in the service of Semtech or an Affiliate,
and shall not interfere with or restrict the right of Semtech or an Affiliate
to discharge or retire an employee for any lawful reason.

 

13.           COMPLIANCE
WITH CODE SECTION 409A.  To the extent applicable, it is intended that
this Plan comply with the provisions of Section 409A.  The Plan will be administered and interpreted
in a manner consistent with this intent and any provision of this Plan that
would cause any payment to be made to a Participant that would be subject to
the additional taxes imposed by Section 409A (the “Additional Taxes”) will have no force and effect until amended
such that the payment will not be subject to the Additional Taxes, if such an
amendment is possible (which amendment may be retroactive to the extent
permitted by Section 409A).  In the event
any payment under this Plan is not made by application of the previous
sentence, Semtech shall use commercially reasonable efforts to pay an
equivalent amount to such Participant in a manner that will not subject such
payment to the Additional Taxes. 
Notwithstanding anything contained herein to the contrary, a Participant
shall not be considered to have terminated employment with Semtech or an
Affiliate for purposes of this Plan and no payments shall be due to a
Participant under this Plan which are payable upon such Participant’s
termination of employment unless such Participant would be considered to have
incurred a “separation from service” from Semtech or an Affiliate (as
applicable) within the meaning of

 

12

 

Section 409A. 
To the extent required in order to avoid accelerated taxation or the
imposition of additional taxes under Section 409A, amounts that would otherwise
be payable and benefits that would otherwise be provided pursuant to this Plan
during the six-month period immediately following a Participant’s separation
from service shall instead be paid on the first business day after the date
that is six months following such Participant’s separation from service (or
upon such Participant’s death, if earlier). 
In addition, each amount to be paid or benefit to be provided to a
Participant pursuant to this Plan shall be construed as a separate identified
payment for purposes of Section 409A.

 

14.           GOVERNING
LAW.

 

(a)           This Plan is a welfare plan
subject to ERISA, and it shall be interpreted, administered, and enforced in
accordance with that law.  To the extent
that state law is applicable, this Plan shall be governed by, and construed in
accordance with, the laws of the State of California, regardless of the law
that might be applied under applicable principles of conflicts of law.

 

(b)           Although this Plan is a
welfare plan, if it is ever determined to be a pension plan within the meaning
of ERISA, it shall be an unfunded arrangement maintained primarily for the
purpose of providing deferred compensation to a select group of management or
highly compensated executive officers, which is exempt from Parts 2, 3, and 4
of Title I of ERISA (i.e., a “top
hat plan”).  If, notwithstanding the foregoing,
this Plan ever is determined to be a pension plan that is not a non-top hat
pension plan, this Plan shall be invalid and of no force and effect,
retroactive to its adoption date and no Plan benefits shall exist or ever be
payable.

 

15.           MISCELLANEOUS.

 

(a)           Any failure by Semtech or a
Participant to enforce any provision or provisions of this Plan shall not in
any way be construed as a waiver of any such provision or provisions, nor
prevent either Semtech or a Participant from thereafter enforcing each and
every other provision of this Plan.  The
rights granted Semtech or a Participant herein are cumulative and shall not
constitute a waiver of either Semtech’s or a Participant’s right to assert all
other legal remedies available to it under the circumstances.

 

(b)           Each Participant agrees upon
request to execute any further documents or instruments necessary or desirable
to carry out the purposes or intent of this Plan.

 

(c)           Except as provided in
Section 14(b), if any provision of this Plan shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired.

 

(d)           Semtech will withhold
federal, state and local taxes and other required payroll deductions and
amounts from any benefit payments made under the Plan to the extent it
determines it is required to do so.

 

(e)           Where the context so
indicates, the singular will include the plural and vice versa.  Titles are provided herein for convenience
only and are not to serve as a basis for interpretation or construction of the
Plan.  Unless the context clearly
indicates to the contrary, a

 

13

 

reference to a statute or
document shall be construed as referring to any subsequently enacted, adopted,
or executed counterpart.

 

16.           OTHER
INFORMATION.

 

(a)           Type of Plan.

 

This
is a welfare plan.

 

(b)           Plan Number.

 

The
Plan Number assigned by Semtech is 502.

 

(c)           Addresses, etc.

 

Semtech’s
address, telephone number, and employer identification number are as follows:

 

Semtech
Corporation

Attention:  General Counsel

200 Flynn Road

Camarillo,
CA 93012

 

Telephone:  (805) 498-2111

 

EIN:  95-2119684

 

(d)           Plan Year.

 

The
Plan’s Plan Year is the Calendar year.

 

(e)           Agent for Service of Legal
Process.

 

Semtech’s
General Counsel is the Plan’s agent for service of legal process.

 

(f)            Funding.

 

The
Plan is funded out of Semtech’s general assets.

 

(g)           Plan Amendment or
Termination.

 

Semtech
has reserved the right to amend and terminate the Plan as set forth herein.

 

17.           STATEMENT
OF ERISA RIGHTS.

 

As
a participant in this Semtech Corporation Executive Change in Control Retention
Plan you are entitled to certain rights and protections under the Employee
Retirement Income Security Act of 1974 (as noted above, ERISA). ERISA provides
that all Plan participants shall be entitled to:

 

14

 

(a)           Receive Information About
Your Plan and Benefits

 

Examine,
without charge, all documents governing the Plan, and a copy of insurance
contracts and the latest annual report (Form 5500 Series), if any, filed by the
Plan with the U.S. Department of Labor and available at the Public Disclosure
Room of the Employee Benefits Security Administration and at Semtech’s
corporate office and other specified locations without charge.

 

Obtain,
upon written request to the Administrative Committee, copies of documents
governing the operation of the plan, including insurance contracts and copies
of the latest annual report (Form 5500 Series), if any, and an updated summary
plan description. The Administrative Committee may make a reasonable charge for
the copies.

 

Receive
a summary of the Plan’s annual financial report, if any. The Plan administrator
is required by law to furnish each participant with a copy of this summary
annual report, if any.

 

(b)           Prudent Actions by Plan
Fiduciaries

 

In
addition to creating rights for Plan participants ERISA imposes duties upon the
people who are responsible for the operation of the Plan. The people who operate
your Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and
in the interest of you and other Plan participants and beneficiaries. No one,
including your employer or any other person, may fire you or otherwise
discriminate against you in any way to prevent you from obtaining a welfare
benefit or exercising your rights under ERISA.

 

(c)           Enforce Your Rights

 

If
your claim for a welfare benefit is denied or ignored, in whole or in part, you
have a right to know why this was done, to obtain copies of documents relating
to the decision without charge, and to appeal any denial, all within certain
time schedules.

 

Under
ERISA, there are steps you can take to enforce the above rights. For instance,
if you request a copy of Plan documents or the latest annual report, if any,
from the Plan and do not receive them within 30 days, you may file suit in a
Federal court. In such a case, the court may require the Plan administrator to
provide the materials and pay you up to $110 a day until you receive the
materials, unless the materials were not sent because of reasons beyond the
control of the administrator. If you have a claim for benefits which is denied
or ignored, in whole or in part, you may file suit in a state or Federal court.
In addition, if you disagree with the Plan’s decision or lack thereof
concerning the qualified status of a domestic relations order or a medical
child support order, you may file suit in Federal court.  If it should happen that Plan fiduciaries
misuse the Plan’s money, or if you are discriminated against for asserting your
rights, you may seek assistance from the U.S. Department of Labor, or you may
file suit in a Federal court. The court will decide who should pay court costs
and legal fees. If you are successful the court may order the person you have
sued to pay these costs and fees. If you lose, the court may order you to pay
these costs and fees, for example, if it finds your claim is frivolous.

 

15

 

(d)           Assistance with Your
Questions

 

If
you have any questions about your Plan, you should contact the Plan
administrator. If you have any questions about this statement or about your
rights under ERISA, or if you need assistance in obtaining documents from the
Plan administrator, you should contact the nearest office of the Employee
Benefits Security Administration, U.S. Department of Labor, listed in your
telephone directory or the Division of Technical Assistance and Inquiries,
Employee Benefits Security Administration, U.S. Department of Labor, 200
Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain
publications about your rights and responsibilities under ERISA by calling the
publications hotline of the Employee Benefits Security Administration or by
visiting its website (http://www.dol.gov/ebsa/).

 

18.           WHOM TO
CALL FOR ADDITIONAL INFORMATION.

 

If
you have any questions, please contact the Administrative Committee.

 

16

 

SEMTECH CORPORATION

EXECUTIVE CHANGE IN CONTROL RETENTION PLAN

 

 

Appendix 1

 

Form of Release
Agreement

 

 

17

 

GENERAL RELEASE AGREEMENT

 

In
order to settle as fully as possible all known and unknown claims [Name of
Executive] (Former Executive), might have against Semtech Corporation (Company)
and all related parties, the Company and Former Executive agree as follows:

 

(a)                                  Consideration:  Former
Executive will receive the benefits under the Semtech Corporation Executive
Change in Control Retention Plan that are payable to Former Executive only if
Former Executive becomes bound by this Agreement.  Former Executive agrees to the plan’s
terms.  Plan benefits will not be taken
into account in determining Former Executive’s rights or benefits under any
other program.  The Company will report
any such benefits to tax authorities and withhold taxes from them as it
determines it is required to do.

 

(b)                                  Release:  Former
Executive releases (i.e., give
up) all known and unknown claims that Former Executive presently has against
the Company, all current and former, direct and indirect parents, subsidiaries,
brother-sister companies, and all other affiliates and related partnerships,
joint ventures, or other entities, and, with respect to each of them, their
predecessors and successors; and, with respect to each such entity, all of its
past, present, and future employees, officers, directors, stockholders, owners,
representatives, assigns, attorneys, agents, insurers, employee benefit
programs (and the trustees, administrators, fiduciaries, and insurers of such
programs), and any other persons acting by, through, under or in concert with
any of the persons or entities listed in this section, and their successors,
specifically including Semtech Neuchatel (Released Parties), except claims that
the law does not permit Former Executive to waive by signing this
Agreement.  For example, Former Executive
is releasing all common law contract, tort, or other claims Former Executive
might have, as well as all claims Former Executive might have under the Age
Discrimination in Employment Act (ADEA), the Worker Adjustment &
Retraining Notification Act (WARN Act), Title VII of the Civil Rights Act of
1964, Sections 1981 and 1983 of the Civil Rights Act of 1866, the Americans
With Disabilities Act (ADA), the Employee Retirement Income Security Act of
1974 (ERISA), and any similar domestic or foreign laws, such as the California
Fair Employment and Housing Act, California Labor Code Section 200 et
seq., and any applicable California Industrial Welfare Commission order.

 

Former
Executive expressly waives the protection of Section 1542 of the Civil
Code of the State of California, which states that:

 

A
general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release,
which if known by him or her must have materially affected his or her
settlement with the debtor.

 

(c)                                  Claims Not Released:  Notwithstanding anything to the contrary
contained herein, Former Executive is not releasing any claims Former Executive
might have to (a) vested benefits under any of the Company’s employee
benefit plans (including the Company’s equity incentive plans),
(b) participate in Company medical, dental, life insurance, or other
benefit plans, or (c) indemnification rights (under the Company’s bylaws,
the California Labor Code, 

 

18

 

any written agreement between the Company and
Former Executive and any rights Former Executive has as a shareholder or former
shareholder of the Company).

 

(d)                                  Applicable Law:  This
agreement is governed by [Federal law and the laws of California].

 

(e)                                  Representations and Promises:  The Company and Former Executive acknowledge
and agree that:

 

(i)                                     Complete Agreement: 
Except as specifically provided in Section (c), this Agreement is
the entire agreement relating to any claims or future rights that Former
Executive might have with respect to the Company and the Released Parties.  Once in effect, this Agreement is a legally
admissible and binding agreement.  It
shall not be construed strictly for or against Former Executive, the Company,
or any Released Party.

 

(ii)                                  Amendments:  This
Agreement only may be amended by a written agreement that the Company and
Former Executive both sign.

 

(iii)                               Representations:  When
Former Executive decided to sign this Agreement, Former Executive was not
relying on any representations that are not in this Agreement.  The Company would not have agreed to pay the
consideration Former Executive is getting in exchange for this Agreement but
for the representations and promises Former Executive is making by signing
it.  Former Executive has not suffered
any job-related wrongs or injuries, such as any type of discrimination, for
which Former Executive might still be entitled to compensation or relief now or
in the future.  Former Executive has been
paid all wages, compensation, benefits, and other amounts that the Company or
any Released Party should have paid Former Executive in the past.

 

(iv)                              No Wrongdoing:  This
Agreement is not an admission of wrongdoing by the Company or any other
Released Party; neither it nor any drafts shall be admissible evidence of
wrongdoing.

 

(v)                                 Unknown Claims:  Former
Executive is intentionally releasing claims that Former Executive does not know
that Former Executive might have and that, with hindsight, Former Executive
might regret having released.  Former
Executive has not assigned or given away any of the claims Former Executive is
releasing.

 

(vi)                              Effect of Void Provision:  If the Company or Former Executive
successfully asserts that any provision in this Agreement is void, the rest of
the Agreement shall remain valid and enforceable unless the other party to this
Agreement elects to cancel it.  If this
Agreement is cancelled, Former Executive will repay the consideration Former
Executive received for signing it.

 

(vii)                           Consideration of Agreement:  If Former Executive initially did not think
any representation Former Executive is making in this Agreement was true or if
Former Executive initially was uncomfortable making it, Former Executive
resolved all of Former Executive’s doubts and concerns before signing this
Agreement.  Former Executive represents that
Former Executive has carefully read this Agreement, Former Executive fully
understands 

 

19

 

what it means, Former Executive is entering into it
knowingly and voluntarily, and all Former Executive’s representations in it are
true.  The consideration period described
in the box above Former Executive’s signature started when Former Executive
first was given this Agreement [; Former Executive acknowledges that
Former Executive also was given employment termination program census data at
that time].  Former Executive waives any
right to have this consideration period restarted or extended by any subsequent
changes to this Agreement.

 

(viii)                        Agreement to be Confidential:  Former Executive has not disclosed and will
never disclose the underlying facts that led up to the settlement evidenced by
this Agreement, or the terms, amount, or existence of that settlement or this
Agreement, to anyone other than a member of Former Executive’s immediate family
or Former Executive’s attorney or other professional advisor and, even as to
such a person, only if the person agrees to honor this confidentiality
requirement.  Such a person’s violation
of this confidentiality requirement shall be treated as a violation by Former
Executive.  This subsection does not
prohibit disclosures to the extent necessary legally to enforce this Agreement
or to the extent required by law (but only if Former Executive notifies the
Company of a disclosure obligation or request within one day after Former
Executive learns of it and permits the Company to take all steps it deems to be
appropriate to prevent or limit the required disclosure).  The parties agree that a copy of this
Agreement may be required to be filed with the Securities and Exchange Commission.

 

(ix)                                Return of Company Property:  Former Executive represents that Former
Executive has returned to the Company all files, memoranda, documents, records,
copies of the foregoing, Company-provided credit cards, keys, building passes,
security passes, access or identification cards, and any other property of the
Company or any Released Party in Former Executive’s possession or control.  Former Executive has cleared all expense
accounts, repaid everything Former Executive owes to the Company or any
Released Party, paid all amounts Former Executive owes on Company-provided
credit cards or accounts (such as cell phone accounts), and canceled or
personally assumed any such credit cards or accounts.

 

(x)                                   Nondisparagement: 
Former Executive agrees not to criticize, denigrate, or otherwise
disparage the Company, any other Released Party, or any of their products,
processes, experiments, policies, practices, standards of business conduct, or
areas or techniques of research. 
However, nothing in this subsection shall prohibit Former Executive from
complying with any lawful subpoena or court order or taking any other actions
affirmatively authorized by law.

 

(f)                                    Employment Termination:  Former Executive’s employment with the
[Company] ended on
[                  ].

 

YOU MAY NOT MAKE ANY CHANGES TO THE TERMS OF THIS
AGREEMENT.  BEFORE SIGNING THIS
AGREEMENT, READ IT CAREFULLY, AND THE COMPANY SUGGESTS THAT YOU DISCUSS IT WITH
YOUR ATTORNEY AT YOUR OWN EXPENSE.  TAKE
AS MUCH TIME AS YOU NEED TO CONSIDER THIS AGREEMENT BEFORE DECIDING WHETHER TO
SIGN IT, UP TO [21/45] DAYS.  BY SIGNING
IT YOU WILL BE WAIVING YOUR KNOWN AND UNKNOWN CLAIMS.

 

20

 

                                
IS THE DEADLINE FOR YOU TO DELIVER A SIGNED COPY OF THIS AGREEMENT TO                                 
AT                                  
..  IF YOU FAIL TO DO SO, YOU WILL NOT
RECEIVE THE SPECIAL PAYMENTS OR BENEFITS DESCRIBED IN IT.

 

YOU MAY REVOKE THIS AGREEMENT IF YOU REGRET HAVING
SIGNED IT.  TO DO SO, YOU MUST DELIVER A
WRITTEN NOTICE OF REVOCATION TO                               
AT
                               
BEFORE SEVEN 24-HOUR PERIODS EXPIRE FROM THE TIME YOU SIGNED IT.  IF YOU REVOKE THIS AGREEMENT, IT WILL
NOT GO INTO EFFECT AND YOU WILL NOT RECEIVE THE SPECIAL PAYMENTS OR BENEFITS
DESCRIBED IN IT.

 

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Former
  Executive

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Company

  

 

21

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