Document:

exh10-1_092414.htm

 

EMPLOYMENT AGREEMENT

 

FOR 

 

MICHAEL D. DEVLIN

 

This Employment Agreement (the “Agreement”) is effective as of the 1st day of October, 2014 (the “Effective Date”), by and between Cape Bank, a New Jersey chartered stock bank (the “Bank”), with its principal offices at Cape May Court House, New Jersey, and Michael D. Devlin (“Executive”).  Any reference herein to the “Company” shall mean Cape Bancorp, Inc., the holding company of the Bank.

 

WHEREAS, Executive is serving as Chief Executive Officer and President of the Bank and the Bank wishes to assure itself of the services of Executive as an officer of the Bank for the period provided in this Agreement; and

 

WHEREAS, in order to induce Executive to remain in the employ of the Bank and to provide further incentive for Executive to achieve the financial and performance objectives of the Bank, the parties desire to enter into this Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and upon the terms and conditions hereinafter provided, the parties hereby agree as follows:

 

	
1.  

	
    POSITION AND RESPONSIBILITIES

 

During the term of this Agreement, Executive agrees to serve as Chief Executive Officer and President of the Bank, and will perform all duties and have all powers generally associated with such position.  Without limiting the generality of the foregoing, Executive will be responsible for the overall management of the Bank, and shall be responsible for establishing the business objectives, policies and strategic plans of the Bank, in conjunction with the Board of Directors of the Bank (the “Board”). Executive also shall be responsible for providing leadership and direction to all departments or divisions of the Bank, and shall be the primary contact between the Board and officers and employees of the Bank.  As President and Chief Executive Officer, Executive shall directly report to the Board.  Executive also shall be nominated as a member of the Board, subject to election by members or shareholders of the Bank, as the case may be. Executive also agrees to serve, if appointed or elected, as a director of the Bank or the Company, and as an officer and/or director of any subsidiary or affiliate of the Bank or the Company.

 

	
2.  

	
    TERM 

 

(a)    Term and Annual Review.  The term of this Agreement will begin as of the Effective Date and will continue for twenty-four (24) full calendar months thereafter.  Within ninety (90) days before each anniversary of the Effective Date of this Agreement (the “Anniversary Date”), the disinterested members of the Board or, in the Board’s discretion, a Committee designated by the Board, will conduct a comprehensive performance evaluation and review of Executive for purposes of determining whether to extend this Agreement for an additional year, and the results thereof, will be included in the minutes of the Board’s or Committee’s meeting, as applicable.  On the basis of the results of the foregoing, the disinterested members of the Board or Committee, as applicable, may extend the term of this Agreement for an additional period such that the remaining term shall be twenty-four (24) months, and notice of such extension shall be provided to Executive. If such notice is not provided to Executive, the term of this Agreement will end twelve (12) months following such Anniversary Date.   Notwithstanding the foregoing, in the event that at any time prior to the Anniversary Date the Company or the Bank has entered into an agreement to effect a transaction which would be considered a Change in Control under Section 7(a) hereof, then the term of this Agreement shall be extended and shall terminate twenty-four (24) months following the date on which the Change in Control occurs.

 

  

  

  

(b)    Continued Employment Following Expiration of Term.  Nothing in this Agreement shall mandate or prohibit a continuation of Executive’s employment following the expiration of the term of this Agreement, upon such terms and conditions as the Bank and Executive may mutually agree.

 

	
3.  

	
    LOYALTY AND OUTSIDE ACTIVITIES

 

During the period of his employment hereunder, except for periods of absence occasioned by illness, reasonable vacation periods, and reasonable leaves of absence pursuant to Section 4(d) hereof, Executive will devote all of his business time, attention, skill and efforts to the faithful performance of his duties under this Agreement, including activities and duties directed by the Board.  Notwithstanding the preceding sentence, subject to the approval of the Board, Executive may serve as a member of the board of directors of business, community and charitable organizations, provided that in each case such service shall not materially interfere with the performance of his duties under this Agreement, adversely affect the reputation of the Bank, or present any conflict of interest.  Executive will present annually to the Board for its review and prior approval, a list of organizations in which Executive is participating or proposes to participate.

	
4.  

	
    COMPENSATION AND REIMBURSEMENT

 

(a)    Base Salary.  In consideration of Executive’s performance of the responsibilities and duties set forth in Section 1, the Bank will provide Executive the compensation specified in this Agreement.  The Bank will pay Executive a salary of $360,500 per year (the “Base Salary”).  Such Base Salary will be payable  in accordance with the customary payroll practices of the Bank.  During the term of this Agreement, the disinterested members of the Board, or a Committee designated by the Board, will review Executive’s Base Salary at least annually, and the Board may increase, but not decrease Executive’s Base Salary (except for a decrease that is not in excess of any decrease that is generally applicable to all senior management of the Bank).  Any increase in Base Salary will become the “Base Salary” for purposes of this Agreement.

 

(b)    Bonus and Incentive Compensation.  Executive will be entitled to participate in any incentive compensation and bonus plans or arrangements of the Bank.  Such incentive compensation will be paid in accordance with the terms of such plans or arrangements, or on a discretionary basis by the Board or a Committee designated by the Board.  Nothing paid to Executive under any such plans or arrangements will be deemed to be in lieu of other compensation to which Executive is entitled under this Agreement.

 

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(c)    Benefit Plans.  Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites substantially equivalent to those in which Executive was participating or otherwise deriving benefit from immediately prior to the beginning of the term of this Agreement, subject to the terms and provisions of such plan documents.  The Bank will not, without Executive’s prior written consent, make any changes in such plans, arrangements or perquisites which would adversely affect Executive’s rights or benefits thereunder, unless such adverse effect resulting from such changes applies generally in a proportionate manner to all participants under the affected plan, arrangement or perquisite or such adverse effect is otherwise required by law.  Without limiting the generality of the foregoing provisions of this Section 4(c), Executive also will be entitled to participate in or receive benefits under any employee benefit plans, including but not limited to, stock benefit plans, retirement plans, supplemental retirement plans, pension plans, profit-sharing plans, health-and-accident plans, medical coverage or any other employee benefit plan or arrangement made available by the Bank in the future to its senior executives and key management employees, subject to and on a basis consistent with the terms, conditions and overall administration of such plans and arrangements.

 

(d)    Vacation and Leave.  Executive will be entitled to paid vacation time each year during the term of this Agreement (measured on a fiscal or calendar year basis, in accordance with the Bank’s usual practices), as well as sick leave, holidays and other paid absences in accordance with the Bank’s policies and procedures for senior executives.  Any unused paid time off during an annual period will be treated in accordance with the Bank’s personnel policies as in effect from time to time.

 

 (e)           Expense Reimbursements.  During the term of this Agreement, the Bank will pay or reimburse Executive for all reasonable travel, entertainment and other reasonable expenses incurred by Executive during the course of performing his obligations under this Agreement, including, without limitation, fees for memberships in such organizations as Executive and the Board mutually agree are necessary and appropriate in connection with the performance of his duties under this Agreement, upon substantiation of such expenses in accordance with applicable policies and procedures of the Bank, provided, however, that in no event will such reimbursement be made later than sixty (60) days following the end of the year during which such expense was incurred.

 

	
5.  

	
    WORKING FACILITIES 

 

The Bank will provide Executive at his principal place of employment, an office and other support services and facilities suitable to his position with the Bank and necessary or appropriate in connection with the performance of his duties under this Agreement.

 

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6.  

	
    TERMINATION AND TERMINATION PAY  

 

Subject to Section 7 of this Agreement which governs a termination in the event of a Change in Control (other than a termination due to death or Disability), Executive’s employment under this Agreement may be terminated in the following circumstances:

 

(a)    Death.  Executive’s employment under this Agreement will terminate upon his death during the term of this Agreement, in which event Executive’s estate or beneficiary will receive the compensation due to Executive through the last day of the calendar month in which his death occurred, and the Bank will continue to provide for Executive’s family non-taxable medical and dental benefits for one (1) year after Executive’s death.

 

(b)    Retirement.  This Agreement will terminate upon Executive’s “Retirement” under the retirement benefit plan or plans of the Bank in which he participates.  Executive will not be entitled to the termination benefits specified in Section 6 hereof in the event of termination due to Retirement.  For purposes of this Agreement, termination of Executive’s employment based on Retirement shall include termination of Executive’s employment by the Board for any reason after Executive attains the age of sixty-seven (67).  For the avoidance of doubt, in the event of a Change in Control, this Section 6(b) shall be inapplicable.

 

(c)    Disability.

 

	
(i)  

	
The Board may, by written notice, terminate Executive’s employment after having determined Executive is “Disabled.”  For purposes of this Agreement, Executive will be considered “Disabled” and the Board will have the right to terminate this Agreement due to Executive’s Disability, if a physical or mental infirmity exists that impairs Executive’s ability to substantially perform his duties under this Agreement and that results in Executive’s becoming eligible for long-term disability benefits under a long-term disability plan of the Bank (or if the Bank has no such plan in effect, that impairs Executive’s ability to substantially perform his duties under this Agreement for a period of one hundred eighty (180) calendar days).  The Board shall determine in good faith, based upon competent medical advice and other factors that the Board reasonably believe to be relevant, whether or not Executive is or continues to be Disabled for purposes of this Agreement.  As a condition to any benefits, the Board may require Executive to submit to such physical or mental evaluations and tests as it deems reasonably appropriate, at the Bank’s expense.

 

	
(ii)  

	
In the event the Board determines that Executive is Disabled, Executive will no longer be obligated to perform services under this Agreement.  In addition, the Bank will cause to be continued for a period of two (2) years, life insurance and non-taxable medical and dental coverage substantially identical to the coverage maintained by the Bank for Executive prior to his termination, provided, however, that if earlier, such medical and dental coverage shall cease on the date Executive becomes eligible for Medicare coverage unless Executive is covered by family coverage or coverage for self and a spouse, in which case Executive’s family or spouse shall continue to be covered for the remainder of the two (2) year period, provided that the Bank’s insurance plans then in effect permit Executive (and/or his spouse and dependents) to be covered after Executive’s termination of employment for such period.  If the Bank is unable to provide such coverage under group policies then in effect for employees of the Bank, the Bank hereby agrees to pay for such coverage for two years (or such lesser period as is necessary) through providers in the health care system then available in the State of New Jersey.

 

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(d)    Termination for Cause.

 

	
(i)  

	
The Board may by written notice to Executive in the form and manner specified in this paragraph, immediately terminate Executive’s employment at any time for “Cause.”  Executive shall have no right to receive compensation or other benefits for any period after termination for Cause, except for already vested benefits.  Termination for Cause shall mean termination because of, in the good faith determination of the Board, Executive’s:

 

	
(1)  

	
material act of dishonesty in performing Executive’s duties on behalf of the Bank or incompetence in the performance of such duties;

 

	
(2)  

	
willful misconduct that in the judgment of the Board will likely cause economic damage to the Bank or injury to the business reputation of the Bank;

 

	
(3)  

	
breach of fiduciary duty involving personal profit;

 

	
(4)  

	
intentional failure to perform stated duties under this Agreement after written notice thereof from the Board;

 

	
(5)  

	
willful violation of any law, rule or regulation (other than traffic violations or similar offenses) that reflect adversely on the reputation of the Bank, any felony conviction, any violation of law involving moral turpitude, or any violation of a final cease-and-desist order; or

 

	
(6)  

	
material breach by Executive of any provision of this Agreement.

 

	
(ii)  

	
Notwithstanding the foregoing, Executive’s termination for Cause will not become effective unless a majority of the entire membership of the Board has adopted a resolution determining that in the good faith opinion of the Board, Executive was guilty of the conduct described above.  For purposes of this definition, no act or failure to act by the Executive shall be considered willful, unless done, or omitted to be done, by him not in good faith without a reasonable belief that his action or omission was in the best interest of the Bank.

 

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(e)    Voluntary Termination by Executive.  In addition to his other rights to terminate his employment under this Agreement, Executive may voluntarily terminate employment during the term of this Agreement upon at least sixty (60) days prior written notice to the Board.  Upon Executive’s voluntary termination, he will receive only his compensation and vested rights and benefits to the date of his termination.  Following his voluntary termination of employment under this Section 6(e), Executive will be subject to the restrictions set forth in Sections 9(a) and 9(b) of this Agreement.

 

(f)    Termination Without Cause or With Good Reason.

 

	
(i)  

	
In addition to termination pursuant to Sections 6(a) through 6(e), the Board may, by written notice to Executive, immediately terminate his employment at any time for a reason other than Cause (a termination “Without Cause”), and Executive may, by written notice to the Board, terminate this Agreement at any time within sixty (60) days following an event constituting “Good Reason,” as defined below (a termination “With Good Reason”).  Notwithstanding the foregoing, in the event of Executive’s notice of termination for Good Reason, the Bank shall have a thirty (30) day period in which to cure the event giving right to the Good Reason termination, however, the Bank may waive such right.  Any termination of Executive’s employment, other than Termination for Cause, shall have no effect on or prejudice the vested rights of Executive under the Bank’s qualified or non-qualified retirement, pension, savings, thrift, profit-sharing or stock bonus plans, group life, health (including hospitalization, medical and major medical), dental, accident and long term disability insurance plans or other employee benefit plans or programs, or compensation plans or programs in which Executive was a participant.

 

	
(ii)  

	
Subject to Subsection 6(f)(iv) of this Agreement, in the event of termination under this Section 6(f), the Bank will, within ten (10) calendar days of Executive’s termination of employment, make a lump-sum cash payment to Executive equal to two (2) times Executive’s Base Salary and average bonus earned during the three (3) years prior to the year in which the termination occurs.  In addition, the Bank will cause to be continued life insurance and medical and dental coverage substantially identical to the coverage maintained by the Bank for Executive prior to his termination for a period of two (2) years, at no cost to the Executive, provided, however, that if earlier, such medical and dental coverage shall cease: (i) on the date Executive becomes eligible for Medicare coverage unless Executive is covered by family coverage or coverage for self and a spouse, in which case Executive’s family or spouse shall continue to be covered for the remainder of the two (2) year period, or (ii) the date Executive becomes entitled to substantially similar coverage to that provided by the Bank through another employer.  If the Bank is unable to provide such coverage under group policies then in effect for employees of the Bank, the Bank hereby agrees to pay for such coverage for two years (or such lesser period as is necessary) through providers in the health care system then available in the State of New Jersey.  For the avoidance of doubt, Executive shall not also be entitled to a benefit under Section 6(f) of this Agreement following a Change in Control.

 

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(iii)  

	
“Good Reason” exists if, without Executive’s express written consent, any of the following occurs during the term of this Agreement:

 

	
(1)  

	
a failure to elect or reelect or to appoint or reappoint Executive as Chief Executive Officer and President;

 

	
(2)  

	
a material change in Executive’s position to become one of lesser responsibility, importance, or scope from the position and attributes thereof described in Section 1 above;

 

	
(3)  

	
a liquidation or dissolution of the Bank other than liquidations or dissolutions that are caused by reorganizations that do not affect the status of Executive;

 

	
(4)  

	
a reduction in Executive’s Base Salary or benefits (other than a reduction authorized under Section 4(a), hereof) or by reduction in salary or material reduction in benefits below the amount to which Executive was entitled to receive prior to the Change in Control, provided, however, that a reduction or elimination of Executive’s benefits under one or more benefit plans maintained by the Bank as part of a good faith, overall reduction or elimination of such plans or benefits applicable to all participants in a manner that does not discriminate against Executive (except as such discrimination may be necessary to comply with law), will not constitute an event of Good Reason or a material breach of this Agreement; or

 

	
(5)  

	
a relocation of Executive’s principal place of employment by more than fifty (50) miles from its location as of the date of this Agreement; or

 

	
(6)  

	
a material breach of this Agreement.

 

	
(iv)  

	
Notwithstanding the foregoing, Executive shall not be deemed to have a termination of employment unless and until the Executive has a Separation from Service within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).  For purposes of this Agreement, a “Separation from Service” shall have occurred if the Bank and Executive reasonably anticipate that either no further services will be performed by the Executive after the date of the termination (whether as an employee or as an independent contractor) or the level of further services performed will not exceed 49% of the average level of bona fide services in the thirty-six (36) months immediately preceding the termination.  For all purposes hereunder, the definition of Separation from Service shall be interpreted consistent with Treasury Regulation Section 1.409A-1(h)(ii).   If Executive is a “Specified Employee,” as defined in Code Section 409A and any payment to be made under Section 6(f) shall be determined to be subject to Code Section 409A, then if required by Code Section 409A, such payment or a portion of such payment (to the minimum extent possible) shall be delayed and shall be paid on the first day of the seventh month following Executive’s Separation from Service.

 

	
(v)  

	
Notwithstanding anything in this Agreement to the contrary, Executive shall not be entitled to any payments or benefits under this Section unless and until Executive executes a release of his claims against the Bank, the Company and their affiliates, and their officers, directors, successors and assigns, releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment relationship other than claims for benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required by applicable law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement, provided that the Bank shall promptly provide Executive the release on or before his termination and such release shall be executed and the payment required hereunder shall made within the “short-term deferral” period set forth in Treasury Regulation 1.409A-1(b)(4).

 

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(g)    Termination and Board Membership.  To the extent Executive is a member of the Board on the date of termination of employment with the Bank (other than a termination due to Retirement or in connection with a Change in Control), Executive will resign from the Board immediately following such termination of employment with the Bank, and this Section 6(g) shall be deemed to constitute notice of Executive’s resignation for purposes of Section 8 hereof.  Executive will be obligated to tender this resignation regardless of the method or manner of termination (other than termination due to Retirement or in connection with a Change in Control), and such resignation will not be conditioned upon any event or payment.

 

(h)   Changes in Law Affecting the Provision of Benefits.  Notwithstanding anything herein to the contrary, if as the result of any change in, or interpretation of, the laws applicable to the payments or provisions of benefits hereunder, such payments or provisions are deemed illegal or subject to taxes or penalties, then the Bank shall, to the extent permitted under such laws, pay to the Executive a cash lump sum payment reasonably estimated to be equal to the amount of benefits (or the remainder of such amount) that Executive is no longer permitted to receive in-kind.  Such lump sum payment shall be required to be made no later than two and one-half months following Executive’s termination of employment, or if later, within two and one-half months following a determination that such payment would be illegal or subject to taxes or penalties.

 

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7.  

	
    TERMINATION IN CONNECTION WITH A CHANGE IN CONTROL

 

(a)    Change in Control Defined.  For purposes of this Agreement, a “Change in Control” means any of the following events:

 

	
(i)  

	
Merger:  The Company or the Bank merges into or consolidates with another entity, or merges another bank or corporation into the Bank or the Company, and as a result, less than a majority of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Company or the Bank immediately before the merger or consolidation;

 

	
(ii)  

	
Acquisition of Significant Share Ownership:  There is filed, or is required to be filed, a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner of 25% or more of a class of the Company’s or the Bank’s voting securities; provided, however, this clause (ii) shall not apply to beneficial ownership of the Company’s or the Bank’s voting shares held in a fiduciary capacity by an entity of which the Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities;

 

	
(iii)  

	
Change in Board Composition:  Individuals who constitute the Company’s or the Bank’s Board of Directors on the Effective Date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the Effective Date whose election was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board, shall be, for purposes of this clause (iii) be considered as though he or she was a member of the Incumbent Board; or

 

	
(iv)  

	
Sale of Assets:  The Company or the Bank sells to a third party all or substantially all of its assets.

 

(b)    Termination.  If within the period ending one year after a Change in Control, (i) the Bank terminates Executive’s employment Without Cause, or (ii) Executive voluntarily terminates his employment With Good Reason (subject to the Bank’s right to cure, as set forth in Section 6(f)(i) above), the Bank will, within ten (10) calendar days of the termination of Executive’s employment, make a lump-sum cash payment to Executive equal to two (2) times Executive’s Base Salary and average bonus earned (other than signing or retention bonuses) during the three (3) years prior to the year in which the termination occurs.  In addition, the Bank will cause to be continued for a period of two (2) years following such termination, at no cost to the Executive, life insurance and non-taxable medical and dental coverage substantially identical to the coverage maintained by the Bank for Executive prior to his termination, provided, however, that if earlier, such medical and dental coverage shall cease on the date Executive becomes eligible for Medicare coverage unless Executive is covered by family coverage or coverage for self and a spouse, in which case Executive’s family or spouse shall continue to be covered for the remainder of the two (2) year period.  If the Bank is unable to provide such coverage under group policies then in effect for employees of the Bank, the Bank hereby agrees to pay for such coverage for two years (or such lesser period as is necessary) through providers in the health care system then available in the State of New Jersey.  Notwithstanding anything herein to the contrary, in the event a benefit is payable under this Section 7(a) and (b), no benefit will be payable under Section 6 of this Agreement.  Notwithstanding anything herein to the contrary, if as the result of any change in, or interpretation of, the laws applicable to the payments or provisions of benefits hereunder, such payments or provisions are deemed illegal or subject to taxes or penalties, then the Bank shall, to the extent permitted under such laws, pay to the Executive a cash lump sum payment reasonably estimated to be equal to the amount of benefits (or the remainder of such amount) that Executive is no longer permitted to receive in-kind.  Such lump sum payment shall be required to be made no later than two and one-half months following Executive’s termination of employment, or if later, within two and one-half months following a determination that such payment would be illegal or subject to taxes or penalties.

 

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(c)    Separation from Service.  Notwithstanding Sections 7(a) or 7(b) above, Executive shall not be deemed to have been terminated following a Change in Control unless and until the Executive has a Separation from Service within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).  For purposes of this Agreement, a “Separation from Service” shall be interpreted consistent with Section 6(f)(iv) and Treasury Regulation Section 1.409A-1(h)(ii).   If Executive is a “Specified Employee,” as defined in Code Section 409A and any payment to be made under Section 7(b) shall be determined to be subject to Code Section 409A, then if required by Code Section 409A, such payment or a portion of such payment (to the minimum extent possible) shall be delayed and shall be paid on the first day of the seventh month following Executive’s Separation from Service.

 

(d)   Survival.  The provisions of this Section 7 and Sections 10 through 20, including the defined terms used in such sections, shall continue in effect until the later of the expiration of this Agreement or one year following a Change in Control.

 

(e)   Release.  Notwithstanding anything in this Agreement to the contrary, Executive shall not be entitled to any payments or benefits under this Section unless and until Executive executes a release of his claims against the Bank, the Company and their affiliates, and their officers, directors, successors and assigns, releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment relationship other than claims for benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required by applicable law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement, provided that the Bank shall promptly provide Executive the release on or before his termination and such release shall be executed and the payment required hereunder shall made within the “short-term deferral” period set forth in Treasury Regulation 1.409A-1(b)(4).

 

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8.  

	
    NOTICE

 

(a)    Notice of Termination.  A “notice of termination” shall mean a written notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated.

 

(b)    Date of Termination.  “Date of termination” shall mean: (i) if Executive’s employment is terminated for Disability, thirty (30) days after a notice of termination is given (provided that he shall not have returned to the performance of his duties on a full-time basis during such thirty (30) day period), or (ii) if Executive’s employment is terminated for any other reason, the date specified in the notice of termination.

 

(c)    Good Faith Resolution.  If the party receiving a notice of termination desires to dispute or contest the basis or reasons for termination, the party receiving the notice of termination must notify the other party within thirty (30) days after receiving the notice of termination that such a dispute exists, and shall pursue the resolution of such dispute in good faith and with reasonable diligence pursuant to Section 17 of this Agreement.  During the pendency of any such dispute, the Bank shall not be obligated to pay Executive compensation or other payments beyond the date of termination.  Any amounts paid to Executive upon resolution of such dispute under this Section shall be offset against or reduce any other amounts due under this Agreement.

 

(d)    Delivery of Notice.  Any notices or other communications hereunder shall be in writing and shall be deemed given if delivered by receipted hand delivery, mailed  by prepaid registered or certified mail (return receipt requested) or delivered by recognized overnight courier, to the Bank at the address set forth in the first paragraph hereof or to the Executive at Executive’s last known address set forth in the Bank’s books and records.

 

	
9.  

	
    POST-TERMINATION OBLIGATIONS/NON-COMPETE

 

(a)    Non-Solicitation/Non-Compete.  Executive hereby covenants and agrees that, for a period of one (1) year following his termination of employment with the Bank (other than a termination of employment following a change in control), he shall not, without the written consent of the Bank, either directly or indirectly:

 

	
(i)  

	
solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any officer or employee of the Bank, or of any holding company of the Bank, or any of their respective subsidiaries or affiliates, to terminate his or her employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any business whatsoever that competes with the business of the Bank, or of any holding company of the Bank, or any of their direct or indirect subsidiaries or affiliates, that has headquarters or offices within twenty-five (25) miles of any location(s) in which the Bank, or any holding company of the Bank, has business operations or has filed an application for regulatory approval to establish an office;

 

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(ii)  

	
become an officer, employee, consultant, director, independent contractor, agent, joint venturer, partner or trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity that competes with the business of the Bank, or any holding company of the Bank, or any of their direct or indirect subsidiaries or affiliates, that has headquarters or offices within twenty-five (25) miles of any location(s) in which the Bank, or any holding company of the Bank, has business operations or has filed an application for regulatory approval to establish an office; or

 

	
(iii)  

	
solicit, provide any information, advice or recommendation or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Bank to terminate an existing business or commercial relationship with the Bank.

 

(b)    Confidentiality.  Executive recognizes and acknowledges that the knowledge of the business activities, plans for business activities, and all other proprietary information of the Bank, or any holding company of the Bank, as it may exist from time to time, are valuable, special and unique assets of the business of the Bank, or any holding company of the Bank.  Executive will not, during or after the term of his employment, disclose any knowledge of the past, present, planned or considered business activities or any other similar proprietary information of the Bank, or any holding company of the Bank, to any person, firm, corporation, or other entity for any reason or purpose whatsoever unless expressly authorized by the Board or required by law.  Notwithstanding the foregoing, Executive may disclose any knowledge of banking, financial and/or economic principles, concepts or ideas which are not solely and exclusively derived from the business plans and activities of the Bank, or any holding company of the Bank.  Further, Executive may disclose information regarding the business activities of the Bank, or any holding company of the Bank, to any bank regulator having regulatory jurisdiction over the activities of the Bank, or any holding company of the Bank, pursuant to a formal regulatory request.  In the event of a breach or threatened breach by Executive of the provisions of this Section, the Bank, or any holding company of the Bank, will be entitled to an injunction restraining Executive from disclosing, in whole or in part, the knowledge of the past, present, planned or considered business activities of the Bank, or any holding company of the Bank, or any other similar proprietary information, or from rendering any services to any person, firm, corporation, or other entity to whom such knowledge, in whole or in part, has been disclosed or is threatened to be disclosed.  Nothing herein will be construed as prohibiting the Bank, or any holding company of the Bank, from pursuing any other remedies available to the Bank, or any holding company of the Bank, for such breach or threatened breach, including the recovery of damages from Executive.

 

(c)    Information/Cooperation.  Executive shall, upon reasonable notice, furnish such information and assistance to the Bank as may be reasonably required by the Bank, in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided, however, that Executive shall not be required to provide information or assistance with respect to any litigation between the Executive and the Bank or any of its subsidiaries or affiliates.  Executive shall be paid or reimbursed for all reasonable expenses incurred by Executive in connection with the rendering of such assistance to the Bank.  Such reimbursement shall occur no later than sixty (60) days after the end of the calendar year in which Executive incurs such expense.

 

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(d)    Reliance.  All payments and benefits to Executive under this Agreement shall be subject to Executive’s compliance with this Section 9, to the extent applicable.  The parties hereto, recognizing that irreparable injury will result to the Bank, its business and property in the event of Executive’s breach of this Section 9, agree that, in the event of any such breach by Executive, the Bank will be entitled, in addition to any other remedies and damages available, to an injunction to restrain the violation hereof by Executive and all persons acting for or with Executive. Executive represents and admits that Executive’s experience and capabilities are such that Executive can obtain employment in a business engaged in other lines of business than the Bank, and that the enforcement of a remedy by way of injunction will not prevent Executive from earning a livelihood.  Nothing herein will be construed as prohibiting the Bank, or any holding company of the Bank, from pursuing any other remedies available to them for such breach or threatened breach, including the recovery of damages from Executive.

 

	
10.  

	
    SOURCE OF PAYMENTS

 

All payments provided in this Agreement shall be timely paid in cash or check from the general funds of the Bank.

 

	
11.  

	
    REQUIRED REGULATORY PROVISIONS

 

Notwithstanding anything herein contained to the contrary, any payments to Executive by the Bank or any holding company of the Bank, whether pursuant to this Agreement or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1828(k), and the regulations promulgated thereunder in 12 C.F.R. Part 359.

 

	
12.  

	
    NO ATTACHMENT; SUCCESSORS AND ASSIGNS

 

(a)    Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void, and of no effect.

 

(b)    This Agreement shall be binding upon, and inure to the benefit of Executive, the Bank and the Bank’s successors and assigns.

 

-13-

  

  

  

 

	
13.  

	
    ENTIRE AGREEMENT; MODIFICATION AND WAIVER

 

(a)    This Agreement contains the entire agreement of the parties relating to the subject matter hereof, and supersedes in its entirety any and all prior agreements, understandings or representations relating to the subject matter hereof, except that the parties acknowledge that this Agreement shall not affect any of the rights and obligations of the parties  under any agreement or plan entered into with or by the Bank pursuant to which the Executive may receive compensation or benefits except as set forth in Section 6(d) hereof.

 

(b)    This Agreement may not be modified or amended except by an instrument in writing signed by each of the parties hereto.

 

(c)    No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel.  No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other than that specifically waived.

 

	
14.  

	
    SEVERABILITY

 

If, for any reason, any provision of this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision of this Agreement or any part of such provision not held so invalid, and each such other provision and part thereof shall to the full extent consistent with law continue in full force and effect.

 

	
15.  

	
    HEADINGS FOR REFERENCE ONLY

 

The headings of sections and paragraphs herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.

 

	
16.  

	
    GOVERNING LAW

 

This Agreement shall be governed by the laws of the State of New Jersey but only to the extent not superseded by federal law.

 

	
17.  

	
    ARBITRATION

 

Any dispute or controversy arising under or in connection with this Agreement, other than a dispute in connection with Section 9 hereof, shall be settled exclusively by binding arbitration, as an alternative to civil litigation and without any trial by jury to resolve such claims, conducted by a single arbitrator, mutually acceptable to the Bank and Executive, sitting in a location selected by the Bank within fifty (50) miles from the main office of the Bank, in accordance with the rules of the American Arbitration Association’s National Rules for the Resolution of Employment Disputes (“National Rules”) then in effect.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction.  The Bank and Executive shall each pay one-half of the fees and expenses of the single arbitrator and the payment of Executive’s legal fees shall be determined under Section 18 of this Agreement.

 

-14-

  

  

  

 

	
18.  

	
    PAYMENT OF LEGAL FEES

 

All reasonable legal fees paid or incurred by Executive pursuant to any dispute or question of interpretation relating to this Agreement shall be paid or reimbursed by the Bank, provided that the dispute or interpretation has been settled by Executive and the Bank or resolved in Executive’s favor, and such reimbursement shall occur no later than sixty (60) days after the end of the year in which the dispute is settled or resolved in Executive’s favor.  Executive shall be responsible for all legal fees paid or incurred by Executive if the dispute or interpretation is resolved in the Bank’s favor.

 

	
19.  

	
    INDEMNIFICATION

 

(a)    Indemnification.  The Bank agrees to indemnify Executive (and his heirs, executors, and administrators), and to advance expenses related to this indemnification, to the fullest extent permitted under applicable law and regulations, against any and all expenses and liabilities that Executive reasonably incurs in connection with or arising out of any action, suit, or proceeding in which he may be involved by reason of his service as a director or officer of the Bank, the Company, or any of its subsidiaries (whether or not he continues to be a director or officer at the time of incurring any such expenses or liabilities).  Covered expenses and liabilities include, but are not limited to, judgments, court costs, and attorneys’ fees and the costs of reasonable settlements, subject to Board approval, if the action is brought against Executive in his capacity as an officer or director of the Bank or any of its subsidiaries.  Indemnification for expenses will not extend to matters related to Executive’s termination for Cause.  Notwithstanding anything in this Section 19 to the contrary, the Bank will not be required to provide indemnification prohibited by applicable law or regulation.  The obligations of this Section 19 will survive the term of this Agreement by a period of six (6) years.

 

(b)    Insurance.  During the period for which the Bank must indemnify Executive, the Bank will provide Executive with coverage under a directors’ and officers’ liability policy, at the Bank’s expense, that is at least equivalent to the coverage provided to directors and senior executives of the Bank.

 

	
20.  

	
    SUCCESSORS AND ASSIGNS

 

The Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the business or assets of the Bank, expressly and unconditionally to assume and agree to perform the Bank’s obligations under this Agreement, in the same manner and to the same extent that the Bank would be required to perform if no such succession or assignment had taken place.

 

-15-

 

  

  

  

SIGNATURES

IN WITNESS WHEREOF, the Bank has caused this Agreement to be executed by its duly authorized officers, and Executive has signed this Agreement, effective as of the day and date first set forth above.

 

ATTEST:                                                                               CAPE BANK

                                                                                                 By:         /s/ Benjamin D. Goldman

 Name:    Benjamin D. Goldman

                                                                                                 Title:      Chairman of the Compensation Committee

 

 

WITNESS:                                                                              EXECUTIVE

   By:  /s/ Michael D. Devlin         

                                                                                                           Michael D. Devlin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-16-EX-4.3

 Exhibit 4.3 

Vectrus, Inc. 
 2014
OMNIBUS INCENTIVE PLAN 
 ARTICLE I 

ESTABLISHMENT, PURPOSE, AND DURATION 

Establishment. Vectrus, Inc., an Indiana corporation (hereinafter referred to as the “Company”), has established an
incentive compensation plan known as the Vectrus, Inc. 2014 Omnibus Incentive Plan (hereinafter referred to as the “Plan”), as set forth in this document. The Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options,
Stock Appreciation Rights (SARs), Restricted Stock, Restricted Stock Units and Other Awards. 
 The Plan first became effective
September 27, 2014 (the “Effective Date”) in connection with the spin-off of the Company from Exelis Inc. (“Exelis” and a “Predecessor Corporation”) on September 27, 2014. Exelis maintained a similar plan, the
Exelis Inc. 2011 Omnibus Incentive Plan (the “Exelis Plan” and a “Predecessor Plan”), prior to the spin-off of the Company. The Plan was created, in part, to govern the awards under the Exelis Plan that were assumed by the
Company in the spin-off from Exelis. The Exelis Plan was similarly adopted in connection with the spin-off of Exelis from ITT Corporation (ITT Corporation and Exelis are each hereinafter referred to as a “Predecessor Corporation”), which
maintained the ITT 2003 Equity Incentive Plan (such plan and the Exelis Plan are each referred to hereinafter as a “Predecessor Plan”) a plan similar to the Exelis Plan. 

The Plan shall remain in effect as provided in Section 1.3 hereof, and Participants shall receive full credit for their service and
participation with a Predecessor Corporation as provided in Section 5.3 hereof. 
 Purpose of the Plan. The purpose of the
Plan is to promote the long-term interests of the Company and its shareholders by strengthening the Company’s ability to attract and retain Employees of the Company and its Affiliates and members of the Board of Directors upon whose judgment,
initiative, and efforts the financial success and growth of the business of the Company largely depend, and to provide an additional incentive for such individuals through share ownership and other rights that promote and recognize the financial
success and growth of the Company and create value for shareholders. 
 Duration of the Plan. The Plan commenced as of the
Effective Date, as described in Section 1.1 hereof, and shall remain in effect, subject to the right of the Compensation and Personnel Committee of the Board, (the “Committee”) to amend or terminate the Plan at any time pursuant to
Article 14 hereof, until all Shares subject to it shall have been purchased or acquired according to the Plan’s provisions. 

ARTICLE II 
 DEFINITIONS

 Whenever used in the Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial
letter of the word shall be capitalized. 
 “Acceleration Event” shall be deemed to have occurred as of the first day that
any one or more of the following conditions have been satisfied: 
 a report on Schedule 13D shall be filed with the Securities and Exchange
Commission pursuant to Section 13(d) of the Exchange Act disclosing that any Person, other than the Company or a Subsidiary or any employee benefit plan sponsored by the Company or a Subsidiary (or related trust), is the Beneficial Owner
directly or indirectly of twenty percent (20%) or more of the outstanding Shares; 
 any Person, other than the Company or a
Subsidiary, or any employee benefit plan sponsored by the Company or a Subsidiary (or related trust), shall purchase shares pursuant to a tender offer or exchange offer to 

 
acquire any Shares (or securities convertible into Shares) for cash, securities or any other consideration, provided that after consummation of the offer, the Person in question is the Beneficial
Owner, directly or indirectly, of twenty percent (20%) or more of the outstanding Shares (calculated as provided in paragraph (d) of Rule 13d-3 under the Exchange Act in the case of rights to acquire Shares); 

the consummation of: 
 any
consolidation, business combination or merger involving the Company, other than a consolidation, business combination or merger involving the Company in which holders of Shares immediately prior to the consolidation, business combination or merger
(x) hold fifty percent (50%) or more of the combined voting power of the Company (or the corporation resulting from the consolidation, business combination or merger or the parent of such corporation) after the merger and (y) have the
same proportionate ownership of common stock of the Company (or the corporation resulting from the consolidation, business combination or merger or the parent of such corporation), relative to other holders of Shares immediately prior to the
consolidation, business combination or merger, immediately after the consolidation, business combination or merger as immediately before; or 

any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all the assets
of the Company; 
 there shall have been a change in a majority of the members of the Board within a 12-month period unless the election or
nomination for election by the Company’s shareholders of each new director during such 12-month period was approved by the vote of two-thirds of the directors then still in office who (x) were directors at the beginning of such 12-month
period or (y) whose nomination for election or election as directors was recommended or approved by a majority of the directors who were directors at the beginning of such 12-month period; or 

any Person, other than the Company or a Subsidiary or any employee benefit plan sponsored by the Company or a Subsidiary (or related trust),
becomes the Beneficial Owner of twenty percent (20%) or more of the Shares. 
 “Affiliate” means any Subsidiary and
any other Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Person specified. 

“Award” means, individually or collectively, a grant under this Plan of Nonqualified Stock Options, Incentive Stock Options,
SARs, Restricted Stock, Restricted Stock Units, Converted Awards and Other Awards. 
 “Award Agreement” means either
(i) an agreement entered into by the Company and a Participant setting forth the terms and provisions applicable to Awards granted under this Plan, or (ii) a statement issued by the Company to a Participant describing the terms and
conditions of such Award. 
 “Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 of the General
Rules and Regulations under the Exchange Act. 
 “Benefits and Compensation Matters Agreement” means Benefits and
Compensation Matters Agreement, dated as of October 25, 2011, by and among ITT Corporation, Exelis and Xylem Inc. 

“Board” or “Board of Directors” means the Board of Directors of the Company. 

“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time. 

“Committee” means the Compensation and Personnel Committee of the Board. 

“Company” means Vectrus, Inc., an Indiana corporation, and any successor thereto as provided in Article 16 herein; provided,
however, that for purposes of grants made under a Predecessor Plan, Company shall mean the Predecessor Corporation, as applicable, as the original grantor. 

 “Converted Award” means Nonqualified Stock Options, Incentive Stock Options,
SARs, Restricted Stock, Restricted Stock Units and Other Awards granted in replacement of awards that were originally granted to a Participant under a Predecessor Plan, as adjusted pursuant to the terms of the Benefits and Compensation Matters
Agreement and/or the Employee Matters Agreement. 
 “Covered Employee” means a Participant who is a “Covered
Employee,” as defined in Code Section 162(m) and the regulations promulgated under Code Section 162(m), or any successor statute. 

“Director” means any individual who is a member of the Board of Directors. 

“Employee” means any employee of the Company or its Affiliates. 

“Employee Matters Agreement” means the Employee Matters Agreement, by and between the Company and Exelis. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto. 

“Fair Market Value” means a price that is based on the opening, closing, actual, high, low, or average selling prices of a
Share on the New York Stock Exchange (“NYSE”) or other established stock exchange (or exchanges) on the applicable date, the preceding trading day, the next succeeding trading day, or an average of trading days, as determined by the
Committee in its discretion. 
 Such definition of Fair Market Value may differ depending on whether Fair Market Value is in reference to
the grant, exercise, vesting, or settlement or payout of an Award. If, however, the accounting standards used to account for equity awards granted to Participants are substantially modified subsequent to the Effective Date of the Plan, the Committee
shall have the ability to determine an Award’s Fair Market Value based on the relevant facts and circumstances. If Shares are not traded on an established stock exchange, Fair Market Value shall be determined by the Committee based on objective
criteria. 
 “Freestanding SAR” means a SAR that is granted independently of any Options, as described in Article 7 herein.

 “Full Value Award” means an Award other than an Option granted with an Option Price equal to at least Fair Market Value
on the date of grant or a SAR with a Grant Price equal to at least Fair Market Value on the date of grant. 
 “Grant Price”
means the amount to which the Fair Market Value of a Share is compared pursuant to Section 7.6 to determine the amount of payment that should be made upon exercise of a SAR. 

“Incentive Stock Option” or “ISO” means an Option that meets the requirements of Code Section 422, or
any successor provision, and that is not designated as a Nonqualified Stock Option. 
 “Insider” means an individual who
is, on the relevant date, an officer, Director, or more than ten percent (10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Board
or the Committee in accordance with Section 16 of the Exchange Act. 
 “Nonqualified Stock Option” or
“NQSO” means an Option that is not intended to meet the requirements of Code Section 422, or that otherwise does not meet such requirements. 

“Option” means an Incentive Stock Option or a Nonqualified Stock Option to purchase Shares, as described in Article 6 herein.

 “Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option. 

 “Other Award” means an Award granted to a Participant pursuant to Article 9
herein. 
 “Participant” means an Employee or Director who has been selected to receive an Award or who has an outstanding
Award granted under the Plan. 
 “Performance-Based Compensation” means an Award that is qualified as Performance-Based
Compensation under Code Section 162(m). 
 “Performance Measures” means measures as described in Article 10, the
attainment of which may determine the amount of payout and/or vesting with respect to Awards. 
 “Performance Period” means
the period of time during which the performance goals must be met in order to determine the amount of payout and/or vesting with respect to an Award. 

“Period of Restriction” means the period when Restricted Stock or Restricted Stock Units are subject to a substantial risk of
forfeiture (based on the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee, at its discretion) and transfer restrictions, as provided in Article 8 herein. 

“Person” shall have the meaning given in Section 3(a) (9) of the Exchange Act, as modified and used in Sections
13(d) and 14(d) thereof. 
 “Plan Year” means the fiscal year of the Company. 

“Plan” means the Vectrus, Inc. 2014 Omnibus Incentive Plan, as may be amended from time to time; provided, however, that for
purposes of grants made under a Predecessor Plan, Plan shall mean a Predecessor Plan, as it existed on the date of such grant. 

“Restricted Stock” means an Award granted to a Participant pursuant to Article 8 herein. 

“Restricted Stock Unit” means an Award granted to a Participant pursuant to Article 8 herein. 

“Share” means a share of common stock of the Company, $0.01 par value per share. 

“Stock Appreciation Right” or “SAR” means an Award granted to a Participant pursuant to Article 7 herein.

 “Subsidiary” means any corporation, partnership, joint venture, limited liability company, or other entity (other than
the Company) in an unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain owns at least fifty percent (50%) of the total combined voting power in one of the other entities
in such chain. 
 “Tandem SAR” means a SAR that is granted in connection with a related Option pursuant to Article 7. 

ARTICLE III 

ADMINISTRATION 

General. The Committee shall be responsible for administering the Plan. The Committee may employ attorneys, consultants,
accountants, and other persons, and the Committee, the Company, and its officers and Directors shall be entitled to rely upon the advice, opinions, or valuations of any such persons. All actions taken and all interpretations and determinations made
by the Committee shall be final and binding upon the Participants, the Company, and all other interested persons. 

 Authority of the Committee. The Committee shall have full and exclusive discretionary
power to interpret the terms and the intent of the Plan and to determine eligibility for Awards and to adopt such rules, regulations, and guidelines for administering the Plan as the Committee may deem necessary or proper. Such authority shall
include, but not be limited to, selecting Award recipients, establishing all Award terms and conditions and, subject to Article 14, adopting modifications and amendments to the Plan or any Award Agreement, including without limitation, any that are
necessary to comply with the laws of the countries in which the Company and its Affiliates operate. 
 Delegation. The Committee
may delegate to one or more of its members or to one or more agents or advisors such administrative duties as it may deem advisable, and the Committee or any person to whom it has delegated duties as aforesaid may employ one or more persons to
render advice with respect to any responsibility the Committee or such person may have under the Plan. The Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following: (a) designate Employees
and Directors to be recipients of Awards; and (b) determine the size of the Award; provided, however, the Committee shall not delegate such responsibilities to any such officer for Awards granted to an Employee that is considered
an elected officer of the Company, or to the extent it would unintentionally cause Performance-Based Compensation to lose its status as such. 

ARTICLE IV 
 SHARES
SUBJECT TO THE PLAN AND MAXIMUM AWARDS 
 Number of Shares Available for Awards. Subject to adjustment as provided in
Section 4.2 herein, the number of Shares hereby reserved for issuance to Participants under the Plan shall be two million, six hundred twenty five thousand (2,625,000). For purposes of the prior sentence, Shares subject to Converted Awards
shall not be considered available for issuance under the Predecessor Plan. Any Shares related to Awards (including Converted Awards) that terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are
settled in cash in lieu of Shares, or are exchanged with the Committee’s permission for Awards not involving Shares, shall be available again for grant under the Plan. Notwithstanding the foregoing, (a) upon the exercise of a stock-settled
Stock Appreciation Right or net-settled Option, the number of Shares subject to the Award (or portion of the Award) that is then being exercised shall be counted against the maximum aggregate number of Shares that may be issued under the Plan as
provided above, on the basis of one Share for every Share subject thereto, regardless of the actual number of Shares issued upon exercise and (b) any Shares withheld with respect to an Award (or, with respect to Restricted Stock, returned) in
satisfaction of tax withholding obligations shall be counted as Shares issued. 
 Subject to adjustment as provided in Section 4.2
herein, the number of Shares hereby reserved for issuance under the Plan for Full Value Awards granted after December 31, 2014 shall not exceed four hundred thirty thousand (430,000). In addition, any Shares related to Full Value Awards
(including Converted Awards that are Full Value Awards) that terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of Shares, or are exchanged with the Committee’s
permission for Awards not involving Shares, shall be available again for grant of Full Value Awards under the Plan. 
 All of the reserved
Shares may be used as ISOs. 
 The Shares available for issuance under the Plan may be authorized and unissued Shares or treasury Shares.

 The following limits (“Award Limits”) shall apply to Awards (other than Converted Awards), dividends and dividend
equivalent intended to qualify as Performance-Based Compensation: 
 Options: The maximum aggregate number of Shares that may be
granted in the form of Options, pursuant to any Award granted in any one Plan Year to any one Participant shall be eight hundred thousand (800,000). 

 SARs: The maximum number of Shares that may be granted in the form of Stock
Appreciation Rights, pursuant to any Award granted in any one Plan Year to any one Participant shall be eight hundred thousand (800,000). 

Restricted Stock or Restricted Stock Units: The maximum aggregate grant with respect to Awards of Restricted Stock or Restricted
Stock Units granted in any one Plan Year to any one Participant shall be four hundred thirty thousand (430,000). 
 Other
Awards: The maximum aggregate number of Shares with respect to which Other Awards may be granted in any one Plan Year to any one Participant shall be four hundred thirty thousand (430,000) and the maximum aggregate cash that may be
payable with respect to Other Awards granted in any one Plan Year to any one Participant shall be six million ($6,000,000) dollars. 

Dividends and Dividend Equivalents: The maximum aggregate value of cash dividends (other than large, nonrecurring cash dividends)
or dividend equivalents that any one Participant may receive pursuant to Awards in any one Plan Year shall not exceed one million, five hundred thousand ($1,500,000) dollars. 

Adjustments in Authorized Shares. In the event of any equity restructuring (within the meaning of FASB Accounting Standards
Codification (ASC) 718 (formerly FAS 123R) that causes the per share value of Shares to change, such as a stock dividend, stock split, spin off, rights offering, or recapitalization through a large, nonrecurring cash dividend, the Committee shall
cause there to be made an equitable adjustment to: (a) the number and, if applicable, kind of shares that may be issued under the Plan or pursuant to any type of Award under the Plan, (b) the Award Limits, (c) the number and, if
applicable, kind of shares subject to outstanding Awards and (d) as applicable, the Option Price or Grant Price of any then outstanding Awards. In the event of any other change in corporate structure or capitalization, such as a merger,
consolidation, any reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code) or any partial or complete liquidation of the Company, the Committee, in its sole discretion, in order to
prevent dilution or enlargement of Participants’ rights under the Plan, shall cause there to be made such equitable adjustments described in the foregoing sentence. Any fractional shares resulting from adjustments made pursuant to this
Section 4.2 shall be eliminated. Any adjustment made pursuant to this Section 4.2 shall be conclusive and binding for all purposes of the Plan. 

Except to the extent it would unintentionally cause Performance Based Compensation to fail to qualify for the performance based exception to
Code Section 162(m), appropriate adjustments may also be made by the Committee in the terms of any Awards under the Plan to reflect such changes or distributions and to modify any other terms of outstanding Awards on an equitable basis,
including modifications of performance goals and changes in the length of Performance Periods. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under the Plan. 

Subject to the provisions of Article 13, without affecting the number of Shares reserved or available hereunder, the Committee may authorize
the issuance or assumption of benefits under this Plan in connection with any merger, consolidation, acquisition of property or stock, share exchange, amalgamation, reorganization or similar transaction upon such terms and conditions as it may deem
appropriate; provided, however, that no such issuance or assumption shall be made without affecting the number of Shares reserved or available hereunder if it would prevent the granting of ISOs under the Plan. 

ARTICLE V 
 ELIGIBILITY
AND PARTICIPATION 
 Eligibility. Individuals eligible to participate in this Plan include all Employees and Directors. 

Actual Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select from all eligible
individuals, those to whom Awards shall be granted and shall determine the form and amount of each Award. 

 Prior Participation. Notwithstanding any other provision of the Plan to the contrary,
all prior service and participation by a Participant with a Predecessor Corporation shall be credited in full towards a Participant’s service and participation with the Company. 

ARTICLE VI 
 STOCK
OPTIONS 
 Grant of Options. Subject to the terms and provisions of the Plan, Options may be granted to Participants in such
number, and upon such terms, and at any time and from time to time as shall be determined by the Committee. 
 ISOs may not be granted
following the ten-year (10) anniversary of the date the Plan was last approved by shareholders in a manner that satisfies the shareholder approval requirements applicable to ISOs. ISOs may be granted only to Employees. 

Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the duration of
the Option, the number of Shares to which the Option pertains, the conditions upon which an Option shall become vested and exercisable, and such other provisions as the Committee shall determine which are not inconsistent with the terms of the Plan.
The Award Agreement also shall specify whether the Option is intended to be an ISO or an NQSO. 
 Option Price. The Option Price
for each grant of an Option under this Plan shall be as determined by the Committee; provided, however, the Option Price shall not be less than one hundred percent (100%) of the Fair Market Value of a Share on the date the Option is granted.

 Duration of Options. Each Option granted to a Participant shall expire at such time as the Committee shall determine at the
time of grant; provided, however, no Option shall be exercisable later than the tenth (10th) anniversary of its grant. 
 Exercise
of Options. Options granted under this Article 6 shall be exercisable at such times and be subject to such terms and conditions as the Committee shall in each instance approve, which need not be the same for each grant or for each
Participant. 
 Payment. Options granted under this Article 6 shall be exercised by the delivery of notice of exercise to an
agent designated by the Company or by complying with any alternative procedures which may be authorized by the Committee, setting forth the number of Shares with respect to which the Option is to be exercised. 

A condition of the issuance of the Shares as to which an Option shall be exercised shall be the payment of the Option Price. The Option may be
exercised (and the Option Price may be satisfied) by (a) delivering cash or its equivalent, (b) tendering (either by actual delivery or attestation) previously acquired Shares having an aggregate Fair Market Value at the time of exercise
equal to the Option Price, (c) broker-assisted cashless exercise, (d) net exercise, (e) a combination of the foregoing or (f) by any other method approved by the Committee in its sole discretion. The Committee shall determine
acceptable methods for tendering Shares as payment upon exercise of an Option and may impose such limitations and prohibitions on the use of Shares to exercise an Option as it deems appropriate. 

Subject to any governing rules or regulations, as soon as practicable after receipt of written notification of exercise and full payment
(including satisfaction of any applicable tax withholding), the Company shall deliver to the Participant evidence of book entry Shares, or upon the Participant’s request, Share certificates in an appropriate amount based upon the number of
Shares purchased under the Option(s). 
 Unless otherwise determined by the Committee, all payments under the methods indicated above shall
be paid in United States dollars. 

 Restrictions on Share Transferability. The Committee may impose such restrictions on
any Shares acquired pursuant to the exercise of an Option granted under this Article 6 as it may deem advisable, including, without limitation, restrictions under applicable federal securities laws, under the requirements of any stock exchange or
market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such Shares. 

Termination of Employment or Service as a Director. The impact of a termination of a Participant’s employment on an
Option’s vesting and exercise period shall be determined by the Committee, in its sole discretion, in the Participant’s Award Agreement, and need not be uniform among Option grants or Participants. The impact of a termination on a
Participant’s service as a Director on an Option’s vesting and exercise period shall be determined by the Committee, in its sole discretion, in the Participant’s Award Agreement, and need not be uniform among Option grants or
Participants. 
 Transferability of Options. During his or her lifetime, only the Participant shall have the right to exercise
the Options. After the Participant’s death, the Participant’s estate or beneficiary shall have the right to exercise such Options. 

Incentive Stock Options. No ISO granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution. 
 Nonqualified Stock Options. Except as otherwise
provided in a Participant’s Award Agreement, no NQSO granted under this Article 6 may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. Under no
circumstances may an NQSO be transferable for value or consideration. 
 Notification of Disqualifying Disposition. If any
Participant shall make any disposition of Shares issued pursuant to the exercise of an ISO under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions), such Participant shall notify the
Company of such disposition within ten (10) days thereof. 
 ARTICLE VII 

STOCK APPRECIATION RIGHTS 

Grant of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to Participants at any time and from time to
time as shall be determined by the Committee. The Committee may grant Freestanding SARs, Tandem SARs, or any combination of these forms of SARs. 

Subject to the terms and conditions of the Plan, the Committee shall have complete discretion in determining the number of SARs granted to
each Participant and, consistent with the provisions of the Plan, in determining the terms and conditions pertaining to such SARs. 
 The
SAR Grant Price for each grant of a Freestanding SAR shall be determined by the Committee and shall be specified in the Award Agreement. The SAR Grant Price shall not be less than one hundred percent (100%) of the Fair Market Value of a Share
on the date the SAR is granted. The Grant Price of Tandem SARs shall be equal to the Option Price of the related Option. 
 SAR
Agreement. Each SAR Award shall be evidenced by an Award Agreement that shall specify the Grant Price, the term of the SAR, and such other provisions as the Committee shall determine. 

Term of SAR. The term of a SAR granted under the Plan shall be determined by the Committee, in its sole discretion, provided that,
no SAR shall be exercisable later than the tenth (10th) anniversary of its grant. 

 Exercise of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms
and conditions the Committee, in its sole discretion, imposes upon them; provided, however, such terms and conditions shall be subject to Section 7.1 as to grant price and Section 7.3 as to the term of the SAR. 

Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares subject to the related Option upon the
surrender of the right to exercise the equivalent portion of the related Option. A Tandem SAR may be exercised only with respect to the Shares for which its related Option is then exercisable. 

Notwithstanding any other provision of this Plan to the contrary, with respect to a Tandem SAR granted in connection with an ISO: (a) the
Tandem SAR will expire no later than the expiration of the underlying ISO; (b) the value of the payout with respect to the Tandem SAR may be for no more than one hundred percent (100%) of the difference between the Option Price of the
underlying ISO and the Fair Market Value of the Shares subject to the underlying ISO at the time the Tandem SAR is exercised; and (c) the Tandem SAR may be exercised only when the Fair Market Value of the Shares subject to the ISO exceeds the
Option Price of the ISO. 
 Payment of SAR Amount. Upon the exercise of a SAR, a Participant shall be entitled to receive
payment from the Company in an amount determined by multiplying: 
 The difference between the Fair Market Value of a Share on the date of
exercise over the Grant Price; by 
 The number of Shares with respect to which the SAR is exercised. 

At the discretion of the Committee, the payment upon a SAR exercise may be in cash, in Shares of equivalent value, in some combination
thereof, or in any other manner approved by the Committee at its sole discretion. The Committee’s determination regarding the form of SAR payout shall be set forth in the Award Agreement pertaining to the grant of the SAR. 

Termination of Employment or Service as a Director. The impact of a termination of a Participant’s employment on a SAR’s
vesting and exercise period shall be determined by the Committee, in its sole discretion, in the Participant’s Award Agreement, and need not be uniform among SAR grants or Participants. The impact of a termination on a Participant’s
service as a Director on a SAR’s vesting and exercise period shall be determined by the Committee, in its sole discretion, in the Participant’s Award Agreement, and need not be uniform among SAR grants or Participants. 

Nontransferability of SARs. Except as otherwise provided in a Participant’s Award Agreement, no SAR granted under the Plan
may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. Under no circumstances may a SAR be transferable for value or consideration. Further, except as
otherwise provided in a Participant’s Award Agreement, all SARs granted to a Participant under the Plan shall be exercisable during his or her lifetime only by such Participant. 

Other Restrictions. The Committee shall impose such other conditions and/or restrictions on any Shares received upon exercise of a
SAR granted pursuant to the Plan as it may deem advisable. This includes, but is not limited to, requiring the Participant to hold the Shares received upon exercise of a SAR for a specified period of time. 

ARTICLE VIII 

RESTRICTED STOCK AND RESTRICTED STOCK UNITS 

Grant of Restricted Stock or Restricted Stock Units. Subject to the terms and conditions of the Plan, the Committee, at any time
and from time to time, may grant Shares of Restricted Stock and/or Restricted Stock Units to Participants in such amounts as the Committee shall determine. Restricted Stock Units shall be similar to Restricted Stock except that no Shares are
actually awarded to the Participant on the date of grant. 

 Restricted Stock or Restricted Stock Unit Agreement. Each Restricted Stock and/or
Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units granted, and such other provisions as the
Committee shall determine. 
 Transferability. Except as provided in this Article 8, the Shares of Restricted Stock and/or
Restricted Stock Units granted herein may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction established by the Committee and specified in the Award Agreement
(and in the case of Restricted Stock Units until the date of delivery or other payment), or upon earlier satisfaction of any other conditions, as specified by the Committee, in its sole discretion, and set forth in the Award Agreement. 

Other Restrictions. The Committee shall impose such other conditions and/or restrictions on any Shares of Restricted Stock or
Restricted Stock Units granted pursuant to the Plan as it may deem advisable including, without limitation, a requirement that Participants pay a stipulated purchase price for each Share of Restricted Stock or each Restricted Stock Unit,
restrictions based upon the achievement of specific performance goals, time-based restrictions on vesting following the attainment of the performance goals, time-based restrictions, and/or restrictions under applicable federal or state securities
laws. 
 To the extent deemed appropriate by the Committee, the Company may retain the certificates representing Shares of Restricted Stock
in the Company’s possession until such time as all conditions and/or restrictions applicable to such Shares have been satisfied or lapse. 

Except as otherwise provided in this Article 8, Shares of Restricted Stock covered by each Restricted Stock Award shall become freely
transferable by the Participant after all conditions and restrictions applicable to such Shares have been satisfied or lapse (including satisfaction of any applicable tax withholding obligations), and Restricted Stock Units shall be paid in cash,
Shares, or a combination of cash and Shares as the Committee, in its sole discretion shall determine. 
 Voting Rights. To the
extent permitted or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock granted hereunder may be granted the right to exercise full voting rights with respect to those Shares during the Period of
Restriction. A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder. 
 Dividends and
Other Distributions. During the Period of Restriction, Participants holding Shares of Restricted Stock or Restricted Stock Units granted hereunder may, if the Committee so determines, be credited with dividends paid with respect to the
underlying Shares or dividend equivalents while they are so held in a manner determined by the Committee in its sole discretion. The Committee may apply any restrictions to the dividends or dividend equivalents that the Committee deems appropriate.
The Committee, in its sole discretion, may determine the time and form of payment of dividends or dividend equivalents, including cash, Shares, Restricted Stock, or Restricted Stock Units; provided, however, that if dividends or dividend equivalents
are granted with respect to any Shares of Restricted Stock or Restricted Share Units that are subject to performance goals, the dividends or dividend equivalents shall be accumulated or reinvested and paid following the time such performance goals
are met, as set forth by the Committee in the applicable Award Agreement. 
 Termination of Employment or Service as a
Director. The impact of a termination of a Participant’s employment on a Restricted Stock or Restricted Stock Unit’s vesting and settlement shall be determined by the Committee, in its sole discretion, in the Participant’s
Award Agreement, and need not be uniform among Restricted Stock or Restricted Stock Unit grants or Participants. The impact of a termination of a Participant’s service as a Director on a Restricted Stock or Restricted Stock Unit’s vesting
and settlement shall be determined by the Committee, in its sole discretion, in the Participant’s Award Agreement, and need not be uniform among Restricted Stock or Restricted Stock Unit grants or Participants. 

Section 83(b) Election. The Committee may provide in an Award Agreement that the Award of Restricted Stock is conditioned
upon the Participant making or refraining from making an election with respect to the Award under Section 83(b) of the Code. If a Participant makes an election pursuant to Section 83(b) of the Code concerning a Restricted Stock Award, the
Participant shall be required to file promptly a copy of such election with the Company. 

 ARTICLE IX 

OTHER AWARDS 
 The
Committee may grant Other Awards, which may include, without limitation, unrestricted Shares, the payment of Shares in lieu of cash, the payment of cash based on attainment of Performance Goals, service conditions or other goals established by the
Committee and the payment of Shares in lieu of cash under other Company incentive or bonus programs. Payment under or settlement of any such Other Awards shall be made in such manner, at such times and subject to such terms and conditions as the
Committee may determine. 
 ARTICLE X 

PERFORMANCE MEASURES 

Unless and until the Committee proposes for shareholder vote and the shareholders approve a change in the general Performance Measures set
forth in this Article 10, the performance goals upon which the payment or vesting of an Award to a Covered Employee that is intended to qualify as Performance-Based Compensation shall be limited to one or more of the following Performance Measures:

 Net earnings; 
 Earnings per
share; 
 Net sales growth; 

Net income (before or after taxes); 

Net operating profit; 
 Return
measures (including, but not limited to, return on assets, capital, equity, or sales); 
 Cash flow (including, but not limited to, operating
cash flow and free cash flow); 
 Cash flow return on capital; 

Earnings before or after taxes, interest, depreciation, and/or amortization; 

Gross or operating margins; 

Productivity ratios; 
 Share price
(including, but not limited to, growth measures and total shareholder return); 
 Expense targets; 

Margins; 
 Operating efficiency;

 Customer satisfaction; 

Employee satisfaction metrics; 

Human resources metrics; 
 Working
capital targets; and 
 EVA®. 

Any Performance Measure(s) may be used to measure the performance of the Company or an Affiliate as a whole or any business unit of the
Company or an Affiliate or any combination thereof, as the Committee may deem appropriate, or any of the above Performance Measures as compared to the performance of a group of comparator 

 
companies, or published or special index that the Committee, in its sole discretion, deems appropriate, or the Company may select a share price Performance Measure above as compared to various
stock market indices. The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Article 10. 

The Committee may provide in any such Award that any evaluation of performance may include or exclude any of the following events that occurs
during a Performance Period: (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (d) any
reorganization and restructuring programs, (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial condition and results of operations
appearing in the Company’s annual report to shareholders for the applicable year, (f) acquisitions or divestitures, and (g) foreign exchange gains and losses. To the extent such inclusions or exclusions affect Awards to Covered
Employees, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility. 
 Awards that are
designed to qualify as Performance-Based Compensation, and that are held by Covered Employees, may not be adjusted upward. The Committee shall retain the discretion to adjust such Awards downward. 

In the event that applicable tax and/or securities laws change to permit Committee discretion to alter the governing Performance Measures
without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining shareholder approval. 

ARTICLE XI 
 BENEFICIARY
DESIGNATION 
 Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named
contingently or successively) to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, shall
be in a form prescribed by the Committee, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the
Participant’s death shall be paid to the Participant’s estate. 
 ARTICLE XII 

RIGHTS OF PARTICIPANTS 

Employment. Nothing in the Plan or an Award Agreement shall interfere with or limit in any way the right of the Company and/or its
Affiliates to terminate any Participant’s employment or of the Board of Directors to terminate service as a Director at any time or for any reason not prohibited by law, nor confer upon any Participant any right to continue his or her
employment or service as a Director for any specified period of time. 
 Neither an Award nor any benefits arising under this Plan shall
constitute an employment contract with the Company and, accordingly, subject to Article 3 and Section 14.1, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving
rise to any liability on the part of the Company, its Affiliates, and/or its Subsidiaries. 
 Participation. No individual shall
have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award. 

Rights as a Shareholder. Except as otherwise provided in Section 8 of the Plan or in an Award Agreement, a Participant shall
have none of the rights of a shareholder with respect to Shares covered by any Award until the Participant becomes the record holder of such Shares. 

 ARTICLE XIII 

ACCELERATION EVENT 
 The
Compensation Committee shall specify in each Participant’s Award Agreement the treatment of outstanding Awards upon an Acceleration Event; provided that any Converted Award will continue to apply the definition of “change in control”
or “acceleration event” as provided in the Predecessor Plan under which such Converted Award was originally granted, as adjusted pursuant to the terms of the Benefits and Compensation Matters Agreement and/or the Employee Matters
Agreement, as applicable. 
 ARTICLE XIV 

AMENDMENT, MODIFICATION, SUSPENSION, AND TERMINATION 

Amendment, Modification, Suspension, and Termination. Subject to Section 14.3, the Committee may, at any time and from time
to time, alter, amend, modify, suspend, or terminate the Plan and any Award Agreement in whole or in part; provided, however, that, except for a change or adjustment made pursuant to Section 4.2, no Option Price of an outstanding
Option or Grant Price of an outstanding SAR shall be reduced (whether through amendment, cancellation or replacement of Awards with other Awards or other payments of cash or property) without shareholder approval. 

Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The Committee may make adjustments in the
terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4.2 hereof) affecting the Company or the financial statements of the
Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under the Plan. 

Awards Previously Granted. Notwithstanding any other provision of the Plan to the contrary, no termination, amendment, suspension,
or modification of the Plan or an Award Agreement shall adversely affect in any material way any Award previously granted under the Plan, without the written consent of the Participant holding such Award. 

ARTICLE XV 
 WITHHOLDING

 Tax Withholding. The Company shall have the power and the right to deduct or withhold, or require a Participant to remit
to the Company, the minimum statutory amount to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan. 

Share Withholding. With respect to withholding required upon the exercise of Options, or SARs, upon the lapse of restrictions on
Restricted Stock and Restricted Stock Units, or any other taxable event arising as a result of Awards granted hereunder, Participants may elect, subject to the approval of the Committee, to satisfy the withholding requirement, in whole or in part,
by having the Company withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax that could be imposed on the transaction. All such elections shall be irrevocable, made in writing, and
signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 

 ARTICLE XVI 

SUCCESSORS 
 All
obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or
otherwise, of all or substantially all of the business and/or assets of the Company. 
 ARTICLE XVII 

GENERAL PROVISIONS 

Forfeiture Events. The Committee may specify in an Award Agreement that the Participant’s rights, payments, and benefits with
respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events shall
include, but shall not be limited to, termination of employment for cause, violation of material Company and/or Affiliate policies, breach of noncompetition, confidentiality, or other restrictive covenants that may apply to the Participant, or other
conduct by the Participant that is detrimental to the business or reputation of the Company and/or its Affiliates. 
 Legend. The
certificates for Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer of such Shares. 

Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the
plural shall include the singular, and the singular shall include the plural. 
 Severability. In the event any provision of the Plan
shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

Requirements of Law. The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules,
and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 Securities
Law Compliance. With respect to Insiders, transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successor under the Exchange Act. To the extent any provision of the Plan or action by the
Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee. 

Registration and Listing. The Company may use reasonable endeavors to register Shares allotted pursuant to the exercise of an Award
with the United States Securities and Exchange Commission or to effect compliance with the registration, qualification, and listing requirements of any national securities laws, stock exchange, or automated quotation system. 

Delivery of Title. The Company shall have no obligation to issue or deliver evidence of title for Shares issued under the Plan
prior to: 
 Obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and 

Completion of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any governmental
body that the Company determines to be necessary or advisable. 
 Inability to Obtain Authority. The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of
the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

 Employees or Directors Based Outside of the United States. Notwithstanding any
provision of the Plan to the contrary, in order to comply with the laws in other countries in which the Company and its Affiliates operate or have Employees or Directors, the Committee, in its sole discretion, shall have the power and authority to:

 Determine which Affiliates shall be covered by the Plan; 

Determine which Employees and/or Directors outside the United States are eligible to participate in the Plan; 

Modify the administrative terms and conditions of any Award granted to Employees and/or Directors outside the United States to comply with
applicable foreign laws; 
 Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may
be necessary or advisable. Any subplans and modifications to Plan terms and procedures established under this Section 17.10 by the Committee shall be attached to this Plan document as appendices; and 

Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government
regulatory exemptions or approvals. 
 Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be
granted, that would violate the Exchange Act, the Code, any securities law, or governing statute or any other applicable law. 

Uncertificated Shares. To the extent that the Plan provides for issuance of certificates to reflect the transfer of Shares, the
transfer of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange. 

Unfunded Plan. Participants shall have no right, title, or interest whatsoever in or to any investments that the Company may make
to aid it in meeting its obligations under the Plan. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any
Participant, beneficiary, legal representative, or any other person. To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of an unsecured general creditor
of the Company. All payments to be made hereunder shall be paid from the general funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as
expressly set forth in the Plan. The Plan is not subject to ERISA. 
 No Fractional Shares. No fractional Shares shall be issued
or delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, Awards, or other property shall be issued or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be forfeited or
otherwise eliminated. 
 Retirement and Welfare Plans. The value of compensation paid under this Plan will not be included as
“compensation” for purposes of computing the benefits payable to any participant under the Company’s retirement plans (both qualified and non-qualified) or welfare benefit plans unless such other plan expressly provides that such
compensation shall be taken into account in computing a participant’s benefit. 
 Governing Law. The Plan and each Award
Agreement shall be governed by the laws of the State of New York, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction. Unless
otherwise provided in the Award Agreement, recipients of an Award under the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of New York, to resolve any and all issues that may arise out of or relate
to the Plan or any related Award Agreement.

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