Document:

Stock Incentive Plan

 Exhibit 10.1 
 FEDERATED INVESTORS, INC. 
 STOCK INCENTIVE PLAN 
 (Adopted as of February 20, 1998) 
 (Amended as of August 26,1998) 

(Amended as of August 31, 1998) 
 (Amended as of January 26, 1999) 
 (Amended as of May 17, 1999) 
 (Amended as of July 20, 1999) 
 (Amended as of January 29, 2002) 
 (Approved by Shareholders April 24, 2002) 
 (Amended as of February 5, 2004) 
 (Amended as of April 19, 2004) 
 (Amended as of April 27, 2006) 
  

	1.	Purpose 

 The purpose of the Federated Investors,
Inc. Stock Incentive Plan (the “Plan”) is to: 
  

	 	(a)	Facilitate the assumption by Federated Investors, Inc., as the surviving corporation of a merger with its parent corporation, Federated Investors, of certain stock incentive awards
previously made by Federated Investors to its employees; and 

  

	 	(b)	Continue to promote the long-term growth and performance of Federated Investors, Inc. and its affiliates and to attract and retain outstanding individuals by awarding directors,
executive officers and key employees stock options, stock appreciation rights, performance awards, restricted stock and/or other stock-based awards. 

  

	2.	Definitions 

 The following definitions are
applicable to the Plan: 
 “Award” means the grant of Options, SARs, Performance Awards, Restricted Stock or other
stock-based award under the Plan. 
 “Board” means the Board of Directors of the Company. 
 “Board Committee” means the committee of the Board appointed in accordance with Section 4 to administer the Plan. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Commission” means the Securities and Exchange Commission. 

 “Common Stock” means the Class B Common Stock of the Company, no par value per share.

 “Company” means Federated Investors, Inc., a Pennsylvania corporation, and its successors and assigns. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Fair Market Value” means, on any date, the closing sale price of one share of Common Stock, as reported on the New York Stock Exchange
or any national securities exchange on which the Common Stock is then listed or on The NASDAQ Stock Market’s National Market (“NNM”) if the Common Stock is then quoted thereon, as published in the Wall Street Journal or another
newspaper of general circulation, as of such date or, if there were no sales reported as of such date, as of the last date preceding such date as of which a sale was reported. In the event that the Common Stock is not listed for trading on a
national securities exchange or authorized for quotation on NNM, Fair Market Value shall be the closing bid price as reported by The NASDAQ Stock Market or The NASDAQ SmallCap Market (if applicable), or if no such prices shall have been so reported
for such date, on the next preceding date for which such prices were so reported. In the event that the Common Stock is not listed on the New York Stock Exchange, a national securities exchange or NNM, and is not listed for quotation on The NASDAQ
Stock Market or The NASDAQ SmallCap Market, Fair Market Value shall be determined in good faith by the Board Committee in its sole discretion, and for this purpose the Board Committee shall be entitled to rely on the opinion of a qualified appraisal
firm with respect to such Fair Market Value, but the Board Committee shall in no event be obligated to obtain such an opinion in order to determine Fair Market Value. 
 “Grant Date” means the date on which the grant of an Option under Section 5.1 hereof or a SAR under Section 6.1 hereof becomes effective pursuant to the terms of the Stock Option Agreement
or Stock Appreciation Rights Agreement, as the case may be, relating thereto. 
 “Incentive Stock Option” means an option to
purchase shares of Common Stock designated as an incentive stock option and which complies with Section 422 of the Code. 
 “Non-Statutory Stock Option” means an option to purchase shares of Common Stock which is not an Incentive Stock Option. 
 “Offering” means the initial public offering of Class B Common Stock by United States and international underwriters. 
 “Option” means any option to purchase shares of Common Stock granted under Sections 5.1 or 10.1 hereof. 
 “Option Price” means the purchase price of each share of Common Stock under an Option. 
  

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 “Outside Director” means a member of the Board who is not an employee of the Company or
any Subsidiary. 
 “Participant” means any salaried employee of the Company and its affiliates designated by the Board
Committee to receive an Award under the Plan. 
 “Performance Award” means an Award of shares of Common Stock granted under
Section 7. 
 “Performance Period” means the period of time established by the Board Committee for achievement of
certain objectives under Section 7.1 hereof. 
 “Restriction Period” means the period of time specified in a
Performance Share Award Agreement or a Restricted Stock Award Agreement, as the case may be, between the Participant and the Company during which the following conditions remain in effect: (i) certain restrictions on the sale or other
disposition of shares of Common Stock awarded under the Plan, and (ii) subject to the terms of the applicable agreement, a requirement of continued employment of the Participant in order to prevent forfeiture of the Award. 
 “Stock Appreciation Rights” or “SARs” means the right to receive a cash payment from the Company equal to the excess of
the Fair Market Value of a stated number of shares of Common Stock at the exercise date over a fixed price for such shares. 
 “Subsidiary” means any corporation, business trust or partnership (other than the Company) in an unbroken chain of corporations, business trusts or partnerships beginning with the Company if each of the corporations,
business trusts or partnerships (other than the last corporation, business trust or partnership in the chain) owns stock, beneficial interests or partnership interests possessing 50% or more of the total combined voting power of all classes of stock
in one of the other corporations, business trusts or partnerships in the chain. 
 “Ten Percent Holder” means a person who
owns (within the meaning of Section 424(d) of the Code) more than ten percent of the voting power of all classes of stock of the Company or of its parent corporation or Subsidiary. 
  

	3.	Shares Subject to Plan 

 3.1 Shares Reserved
under the Plan. Subject to adjustment as provided in Section 3.2, the number of shares of Common Stock cumulatively available under the Plan shall equal 23,550,000 shares. All of such authorized shares of Common Stock shall be available for
the grant of Incentive Stock Options under the Plan. No Participant shall receive Awards in respect of more than 900,000 shares of Common Stock in any fiscal year of the Company. In addition, the aggregate Fair Market Value (determined on the Grant
Date) of Common Stock with respect to which Incentive Stock Options granted a Participant become exercisable for the first time in any single calendar year shall not exceed $100,000. Any Common Stock issued by the Company through the assumption or
substitution of outstanding grants from an acquired corporation or entity shall not reduce the shares 

  

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available for grants under the Plan. Shares of Common Stock to be issued pursuant to the Plan may be authorized and unissued shares, treasury shares, or any
combination thereof. Subject to Section 6.2 hereof, if any shares of Common Stock subject to an Award hereunder are forfeited or any such Award otherwise terminates without the issuance of such shares of Common Stock to a Participant, or if any
shares of Common Stock are surrendered by a Participant in full or partial payment of the Option Price of an Option, such shares, to the extent of any such forfeiture, termination or surrender, shall again be available for grant under the Plan.

 3.2 Adjustments. The aggregate number of shares of Common Stock which may be awarded under the Plan and the terms of outstanding
Awards shall be adjusted by the Board Committee to reflect a change in the capitalization of the Company, including but not limited to, a stock dividend or split, recapitalization, reorganization, merger, consolidation, combination, exchange of
shares, spin-off, spin-out or other distribution of assets to shareholders; provided that the number and price of shares subject to outstanding Options granted to Outside Directors pursuant to Section 10 hereof and the number of
shares subject to future Options to be granted pursuant to Section 10 shall be subject to adjustment only as set forth in Section 10 hereof. 
 3.3 Merger With Federated Investors. Notwithstanding the foregoing, the Company’s merger with Federated Investors and assumption of its outstanding stock incentive awards will not result in any adjustment
to the number of shares available under the Plan and will reduce the number of shares available under this Plan accordingly. For purposes of this Plan, after the merger all such stock incentive awards shall be treated as Awards under this Plan,
except that any Grant Date, Performance Period or Restricted Period shall relate back to the date on which the awards were made by Federated Investors. 
  

	4.	Administration of Plan 

 4.1 Administration by
the Board Committee. The Plan shall be administered as follows. 
  

	 	(a)	Prior to an Offering, the Plan shall be administered by either the full Board or by the Board Committee if one is established by the Board. Prior to an Offering, any member of the
Board may serve on the Board Committee. 

  

	 	(b)	 After an Offering, the Plan shall be administered by the Board Committee, which shall consist of no fewer than two members of the Board who are
(i) ”Non-Employee Directors” for purposes of Rule 16b-3 of the Commission under the Exchange Act and (ii) to the extent required to ensure that awards under the Plan are exempt for purposes of Section 162(m) of the Code,
“outside directors” for purposes of Section 162(m); provided, however, that the Board Committee may delegate some or all of its authority and responsibility under the Plan with respect to Awards to Participants who are
not subject to Section 16 of the Exchange Act to the Chief Executive Officer of the Company. In the event 

  

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that, after an Offering, the Board does not have two members who qualify as “Non-Employee Directors” for purposes of Rule 16b-3, the Plan shall be
administered by the full Board. 

  

	 	(c)	The Board Committee shall have authority to interpret the Plan, to establish, amend, and rescind any rules and regulations relating to the Plan, to prescribe the form of any
agreement or instrument executed in connection herewith, and to make all other determinations necessary or advisable for the administration of the Plan. All such interpretations, rules, regulations and determinations shall be conclusive and binding
on all persons and for all purposes. In addition, the Board Committee shall have authority, without amending the Plan, to grant Awards hereunder to Participants who are foreign nationals or employed outside the United States or both, on terms and
conditions different from those specified herein as may, in the sole judgment and discretion of the Board Committee, be necessary or desirable to further the purpose of the Plan. 

  

	 	(d)	Notwithstanding the foregoing, the Board Committee shall not have any discretion with respect to Options granted to Outside Directors pursuant to Section 10 hereof. In the
event that the Board does not establish a Board Committee for any reason, any reference in this Plan to the Board Committee shall be deemed to refer to the full Board. 

 4.2 Designation of Participants. Participants shall be selected, from time to time, by the Board Committee, from those executive officers and key
employees of the Company and its affiliates who, in the opinion of the Board Committee, have the capacity to contribute materially to the continued growth and successful performance of the Company. Outside Directors shall be Participants only in
accordance with Section 10. 
  

	5.	Stock Options 

 5.1 Grants. Options may be
granted, from time to time, to such Participants as may be selected by the Board Committee on such terms, not inconsistent with this Plan, as the Board Committee shall determine. The Option Price shall be determined by the Board Committee effective
on the Grant Date; provided, however, that (i) in the case of Incentive Stock Options granted to a Participant who on the Grant Date is not a Ten Percent Holder, such price shall not be less than one
hundred percent (100%) of the Fair Market Value of a share of Common Stock on the Grant Date, (ii) in the case of an Incentive Stock Option granted to a Participant who on the Grant Date is a Ten Percent Holder, such price shall be not
less than one hundred and ten percent (110%) of the Fair Market Value of a share of Common Stock on the Grant Date, and (iii) in the case of Non-Statutory Stock Options, such price shall be not less than eighty-five percent (85%) of
the Fair Market Value of a share of Common Stock on the Grant Date. The number of shares of Common Stock subject to each Option granted to each Participant, the terms of each Option, and any other terms and conditions of an Option granted hereunder
shall be determined by the Board Committee, in its sole discretion, effective on the Grant Date; provided, however, that no Incentive Stock Option shall be exercisable any later than ten (10) years from the Grant Date. Each
Option 

  

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shall be evidenced by a Stock Option Agreement between the Participant and the Company which shall specify the type of Option granted, the Option Price, the
term of the Option, the number of shares of Common Stock to which the Option pertains, the conditions upon which the Option becomes exercisable and such other terms and conditions as the Board Committee shall determine. 
 5.2 Payment of Option Price. No shares of Common Stock shall be issued upon exercise of an Option until full payment of the Option Price therefor
by the Participant. Upon exercise, the Option Price may be paid in cash, and, subject to approval by the Board Committee, in shares of Common Stock having a Fair Market Value equal to the Option Price, or in any combination thereof, or in any other
manner approved by the Board Committee. 
 5.3 Rights as Shareholders. Participants shall not have any of the rights of a shareholder
with respect to any shares subject to an Option until such shares have been issued upon the proper exercise of such Option. 
 5.4
Transferability of Options. Options granted under the Plan may not be sold, transferred, pledged, assigned, hypothecated or otherwise disposed of except by will or by the laws of descent and distribution; provided,
however, that, if authorized in the applicable Award agreement, a Participant may make one or more gifts of Options granted hereunder to members of the Participant’s immediate family or trusts or partnerships for the benefit of
such family members. All Options granted to a Participant under the Plan shall be exercisable during the lifetime of such Participant only by such Participant, his agent, guardian or attorney-in-fact; provided, however, that all Options transferred
in a manner consistent with the terms of an Award agreement may be exercised by the transferee. 
 5.5 Termination of Employment. If a
Participant ceases to be an employee of either the Company or of any of its affiliates, the Options granted hereunder shall be exercisable in accordance with the Stock Option Agreement between the Participant and the Company. 
 5.6 Designation of Incentive Stock Options. Except as otherwise expressly provided in the Plan, the Board Committee may, at the time of the grant
of an Option, designate such Option as an Incentive Stock Option under Section 422 of the Code. 
 5.7 Certain Incentive Stock Option
Terms. In the case of any grant of an Incentive Stock Option, whenever possible, each provision in the Plan and in any related agreement shall be interpreted in such a manner as to entitle the Option holder to the tax treatment afforded by
Section 422 of the Code, and if any provision of this Plan or such agreement shall be held not to comply with requirements necessary to entitle such Option to such tax treatment, then (i) such provision shall be deemed to have contained
from the outset such language as shall be necessary to entitle the Option to the tax treatment afforded under Section 422 of the Code, and (ii) all other provisions of this Plan and the agreement relating to such Option shall remain in
full force and effect. If any agreement covering an Option designated by the Board Committee to be an Incentive Stock Option under this Plan shall not explicitly include any terms required to entitle such Incentive 

  

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Stock Option to the tax treatment afforded by Section 422 of the Code, all such terms shall be deemed implicit in the designation of such Option and the
Option shall be deemed to have been granted subject to all such terms. 
  

	6.	Stock Appreciation Rights 

 6.1 Grants. Stock
Appreciation Rights may be granted, from time to time, to such salaried employees of the Company and its affiliates as may be selected by the Board Committee. SARs may be granted at the discretion of the Board Committee either (i) in connection
with an Option or (ii) independent of an Option. The price from which appreciation shall be computed shall be established by the Board Committee at the Grant Date; provided, however, that such price shall not be less than
one-hundred percent (100%) of the Fair Market Value of the number of shares of Common Stock subject of the grant on the Grant Date. In the event the SAR is granted in connection with an Option, the fixed price from which appreciation shall be
computed shall be the Option Price. Each grant of a SAR shall be evidenced by a Stock Appreciation Rights Agreement between the Participant and the Company which shall specify the type of SAR granted, the number of SARs, the conditions upon which
the SARs vest and such other terms and conditions as the Board Committee shall determine. 
 6.2 Exercise of SARs. SARs may be
exercised upon such terms and conditions as the Board Committee shall determine; provided, however, that SARs granted in connection with Options may be exercised only to the extent the related Options are then exercisable.
Notwithstanding Section 3.1 hereof, upon exercise of a SAR granted in connection with an Option as to all or some of the shares subject of such Award, the related Option shall be automatically canceled to the extent of the number of shares
subject of the exercise, and such shares shall no longer be available for grant hereunder. Conversely, if the related Option is exercised as to some or all of the shares subject of such Award, the related SAR shall automatically be canceled to the
extent of the number of shares of the exercise, and such shares shall no longer be available for grant hereunder. 
 6.3 Payment of
Exercise. Upon exercise of a SAR, the holder shall be paid in cash the excess of the Fair Market Value of the number of shares subject of the exercise over the fixed price, which in the case of a SAR granted in connection with an Option shall be
the Option Price for such, shares. 
 6.4 Rights of Shareholders. Participants shall not have any of the rights of a shareholder with
respect to any Options granted in connection with a SAR until shares have been issued upon the proper exercise of an Option. 
 6.5
Transferability of SARs. SARs granted under the Plan may not be sold, transferred, pledged, assigned, hypothecated or otherwise disposed of except by will or by the laws of descent and distribution. All SARs granted to a Participant under the
Plan shall be exercisable during the lifetime of such Participant only by such Participant, his agent, guardian, or attorney-in-fact. 
  

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 6.6 Termination of Employment. If a Participant ceases to be an employee of either the Company or
of any of its affiliates, SARs granted hereunder shall be exercisable in accordance with the Stock Appreciation Rights Agreement between the Participant and the Company. 
  

	7.	Performance Awards 

 7.1 Awards. Awards of
shares of Common Stock may be made, from time to time, to such Participants as may be selected by the Board Committee. Such shares shall be delivered to the Participant only upon (i) achievement of such corporate, sector, division, individual
or any other objectives or criteria during the Performance Period as shall be established by the Board Committee and (ii) the expiration of the Restriction Period. Except as provided in the Performance Share Award Agreement between the
Participant and the Company, shares subject to such Awards under this Section 7.1 shall be released to the Participant only after the expiration of the relevant Restriction Period. Each Award under this Section 7.1 shall be evidenced by a
Performance Share Award Agreement between the Participant and the Company which shall specify the applicable performance objectives, the Performance Period, the Restriction Period, any forfeiture conditions and such other terms and conditions as the
Board Committee shall determine. 
 7.2 Stock Certificates. Upon an Award of shares of Common Stock under Section 7.1 of the
Plan, the Company shall issue a certificate registered in the name of the Participant bearing the following legend and any other legend required by any federal or state securities laws or by the Delaware Business Trust Act: 
 “The sale or other transfer of the shares of stock represented by this certificate is subject to certain restrictions set forth in the Federated
Investors, Inc. Stock Incentive Plan, administrative rules adopted pursuant to such Plan and a Performance Share Award Agreement between the registered owner and Federated Investors, Inc. A copy of the Plan, such rules and such Agreement may be
obtained from the Secretary of Federated Investors, Inc.” 
 Unless otherwise provided in the Performance Share Award Agreement between the Participant
and the Company, such certificates shall be retained by the Company until the expiration of the Restriction Period. Upon the expiration of the Restriction Period, the Company shall (i) cause the removal of the legend from the certificates for
such shares as to which a Participant is entitled in accordance with the Performance Share Award Agreement between the Participant and the Company and (ii) release such shares to the custody of the Participant. 
 7.3 Rights as Shareholders. Subject to the provisions of the Performance Share Award Agreement between the Participant and the Company, during the
Performance Period, dividends and other distributions paid with respect to all shares awarded thereto under Section 7.1 hereof shall, in the discretion of the Board Committee, either be paid to Participants or held in escrow by the Company and
paid to Participants only at such time 

  

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and to such extent as the related Performance Award is earned. During the period between the completion of the Performance Period and the expiration of the
Restriction Period, Participants shall be entitled to receive dividends and other distributions only as to the number of shares determined in accordance with the Performance Share Award Agreement between the Participant and the Company. 

7.4 Transferability of Shares. Certificates evidencing the shares of Common Stock awarded under the Plan shall not be sold, exchanged,
assigned, transferred, pledged, hypothecated or otherwise disposed of until the expiration of the Restriction Period. 
 7.5 Termination
of Employment. If a Participant ceases to be an employee of either the Company or of one of its affiliates, the number of shares subject of the Award, if any, to which the Participant shall be entitled shall be determined in accordance with the
Performance Share Award Agreement between the Participant and the Company. 
 7.6 Transfer of Employment. If a Participant transfers
employment from one business unit of the Company or any of its affiliates to another business unit during a Performance Period, such Participant shall be eligible to receive such number of shares of Common Stock as the Board Committee may determine
based upon such factors as the Board Committee in its sole discretion may deem appropriate. 
  

	8.	Restricted Stock Awards 

 8.1 Awards. Awards
of shares of Common Stock subject to such restrictions as to vesting and otherwise as the Board Committee shall determine, may be made, from time to time, to Participants as may be selected by the Board Committee. The Board Committee may in its sole
discretion at the time of the Award or at any time thereafter provide for the early vesting of such Award prior to the expiration of the Restriction Period. Each Award under this Section 8.1 shall be evidenced by a Restricted Stock Award
Agreement between the Participant and the Company which shall specify the vesting schedule, any rights of acceleration, any forfeiture conditions, and such other terms and conditions as the Board Committee shall determine. 
 8.2 Stock Certificates. Upon an Award of shares of Common Stock under Section 8.1 of the Plan, the Company shall issue a certificate
registered in the name of the Participant bearing the following legend and any other legend required by any federal or state securities laws or by the Delaware Business Trust Act. 
 “The sale or other transfer of the shares of stock represented by this certificate is subject to certain restrictions set forth in the Federated
Investors, Inc. Stock Incentive Plan, administrative rules adopted pursuant to such Plan and a Restricted Stock Award Agreement between the registered owner and Federated Investors, Inc. A copy of the Plan, such rules and such agreement may be
obtained form the Secretary of Federated Investors, Inc.” 
  

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 Unless otherwise provided in the Restricted Stock Award Agreement between the Participant and the Company, such
certificates shall be retained in custody by the Company until the expiration of the Restriction Period. Upon the expiration of the Restriction Period, the Company shall (i) cause the removal of the legend from the certificates for such shares
as to which a Participant is entitled in accordance with the Restricted Stock Award Agreement between the Participant and the Company and (ii) release such shares to the custody of the Participant. 
 8.3 Rights as Shareholders. During the Restriction Period, Participants shall be entitled to receive dividends and other distributions paid with
respect to all shares awarded thereto under Section 8.1 hereof. 
 8.4 Transferability of Shares. Certificates evidencing the
shares of Common Stock awarded under the Plan shall not be sold, exchanged, assigned, transferred, pledged, hypothecated or otherwise disposed of until the expiration of the Restriction Period. 
 8.5 Termination of Employment. If a Participant ceases to be an employee of either the Company or of any of its affiliates, the number of shares
subject of the Award, if any, to which the Participant shall be entitled shall be determined in accordance with the Restricted Stock Award Agreement between the Participant and the Company. All remaining shares as to which restrictions apply at the
date of termination of employment shall be forfeited subject to such exceptions, if any, authorized by the Board Committee. 
  

	9.	Other Stock-Based Awards 

 Awards of shares of
Common Stock and other awards that are valued in whole or in part by reference to, or are otherwise based on, Common Stock, may be made, from time to time, to salaried employees of the Company and its affiliates as may be selected by the Board
Committee. Such Awards may be made alone or in addition to or in connection with any other Award hereunder. The Board Committee may in its sole discretion determine the terms and conditions, if any, of any such Award. Each such Award shall be
evidenced by an agreement between the Participant and the Company which shall specify the number of shares of Common Stock subject of the Award, any consideration therefor, any vesting or performance requirements and such other terms and conditions
as the Board Committee shall determine. 
  

	10.	Outside Directors’ Options 

 10.1 Initial
Grants. Effective on the dates set forth below, each category of Outside Director of the Company described below shall be automatically granted an Option to purchase 7,500 shares of Common Stock: 
  

	 	(i)	for any Outside Director serving on the Board at the effective date of the Offering, the effective date of the Offering; 

  

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	 	(ii)	for any Outside Director elected by the shareholders of the Company subsequent to the effective time of the Offering, the date of such Outside Director’s initial election to
the Board; and 

  

	 	(iii)	for any Outside Director appointed by the Board subsequent to the effective time of the Offering, the date such Outside Director’s appointment to the Board becomes effective.

 All such Options shall be Non-Statutory Stock Options. The Option Price for all Options granted pursuant to this Section 10 shall be
the greater of (a) $12.67 per share or (b) one hundred percent (100%) of the Fair Market Value per share of Common Stock on the date of grant. 
 10.2 Annual Grants. Effective on the date of each Annual Meeting of the shareholders of the Company that occurs after the Offering, each Outside Director who will be continuing as a director after such Annual
Meeting, but not including any Outside Director who is first elected at such Annual Meeting, shall automatically be granted an Option to purchase 3,000 shares of Common Stock. All such Options shall be Non-Statutory Stock Options. The Option price
shall be one-hundred percent (100%) of the Fair Market Value per share of Common Stock on the date of the grant. 
 10.3 Exercise of
Options. Three thousand (3,000) of the initial Options granted pursuant to Section 10.1 shall vest in an Outside Director on the first anniversary of such grant and two thousand, two hundred and fifty (2,250) of the initial
Options shall vest on each subsequent anniversary of such grant until such Options are fully vested at the end of three years. All Options granted pursuant to Section 10.2 shall vest immediately. All vested Options shall be immediately
exercisable and may be exercised by the Outside Director for a period of ten (10) years from the date of grant; provided, however, that in the event of the death or disability of an Outside Director, the Options shall be exercisable only within
the twelve (12) months next succeeding the date of death or disability and only if and to the extent that the Outside Director was entitled to exercise the Options at the date of the Outside Director’s death or disability, as the case may
be. If an Outside Director’s service with the Corporation terminates due to retirement all vested Options may be exercised by the Outside Director for a period of ten (10) years from the date of grant; provided, however, that in the event
of the death of a retired Outside Director, the Options shall be exercisable only within the twelve (12) months next succeeding the date of death. If an Outside Director’s service with the Company terminates for any reason other than
retirement, death or disability, the Options shall be exercisable for thirty (30) days after the date of such termination and only if and to the extent the Outside director was entitled to exercise the Options at the date of such termination.
In the case of death, such Options shall be exercisable only by the executor or administrator of the Outside Director’s estate or by the person or persons to whom the Outside Director’s rights under the Options shall pass by the Outside
Director’s will or the laws of descent and distribution. Notwithstanding the foregoing, in no event shall any Option be exercisable more than ten (10) years after the date of grant. 
  

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 10.4 Payment of Option price. An Option granted to an Outside Director shall be exercisable only
upon payment to the Company of the Option price. Payment for the shares shall be in United States dollars, payable in cash or by check. 
 10.5 Adjustments. In case there shall be a merger, reorganization, consolidation, recapitalization, stock dividend or other change in corporate structure such that the shares of Common Stock are changed into or become exchangeable
for a larger or smaller number of shares, thereafter the number of shares subject to outstanding Options granted to Outside Directors and the number of shares subject to Options to be granted to Outside Directors pursuant to the provisions of this
Section 10 shall be increased or decreased, as the case may be, in direct proportion to the increase or decrease in the number of shares of Common Stock by reason of such change in corporate structure, provided that the number of shares shall
always be a whole number, and the purchase price per share of any outstanding Options shall, in the case of an increase in the number of shares, be proportionately reduced, and in the case of a decrease in the number of shares, shall be
proportionately increased. 
  

	11.	Amendment or Termination of Plan 

 The Board may
amend, suspend or terminate the Plan or any part thereof from time to time, provided that no change may be made which would impair the rights of a Participant to whom shares of Common Stock have theretofore been awarded without the consent of said
Participant. 
  

	12.	Miscellaneous 

 12.1 Rights of Employees.
Nothing in the Plan shall interfere with or limit in any way the right of the Company or any affiliate to terminate any Participant’s employment at any time, nor confer upon any Participant any right to continued employment with the Company or
any affiliate. 
 12.2 Tax Withholding. The Company shall have the authority to withhold, or to require a Participant to remit to the
Company, prior to issuance or delivery of any shares or cash hereunder, an amount sufficient to satisfy federal, state and a local tax withholding requirements associated with any Award. In addition, the Company may, in its sole discretion, permit a
Participant to satisfy any tax withholding requirements, in whole or in part, by (i) delivering to the Company shares of Common Stock held by such Participant having a Fair Market Value equal to the amount of the tax; (ii) directing the
Company to retain shares of Common stock otherwise issuable to the Participant under the Plan; or (iii) any other method approved by the Board Committee. 
 12.3 Status of Awards. Awards hereunder shall not be deemed compensation for purposes of computing benefits under any retirement plan of the Company or affiliate and shall not affect any benefits under any
other benefit plan now or hereafter in effect under which the availability or amount of benefits is related to the level of compensation. 
 12.4 Waiver of Restrictions. The Board Committee may, in its sole discretion, based on such factors as the Board Committee may deem appropriate, waive in whole or in part, any remaining restrictions or vesting requirements in
connection with any Award hereunder. 
  

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 12.5 Adjustment of Awards. Subject to Section 11, the Board Committee shall be authorized to
make adjustments in performance award criteria or in the terms and conditions of other Awards (except Options granted pursuant to Section 10 hereof) in recognition of unusual or nonrecurring events affecting the Company or its financial
statements or changes in applicable laws, regulations or accounting principles; provided however, that no such adjustment shall impair the rights of any Participant without his consent. The Board Committee may also make Awards
hereunder in replacement of, or as alternatives to, Awards previously granted to Participants, including without limitation, previously granted Options having higher Option Prices and grants or rights under any other plan of the Company or of any
acquired entity. The Board Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry it into effect. In the event the Company shall
assume outstanding employee benefit awards or the right or obligation to make future such awards in connection with the acquisition of another corporation or business entity, the Board Committee may, in its discretion, make such adjustments in the
terms of Awards under the Plan as it shall deem appropriate. Notwithstanding the above, only the full Board (and not the Board Committee) shall have the right to make any adjustments in the terms or conditions of Options granted pursuant to
Section 10. 
 12.6 Consideration for Awards. Except as otherwise required in any applicable agreement or by the terms of the
Plan, Participants under the Plan shall not be required to make any payment or provide consideration for an Award other than the rendering of services. 
 12.7 Special Forfeiture Rule. Notwithstanding any other provision of this Plan to the contrary, the Board Committee shall be authorized to impose additional forfeiture restrictions with respect to Awards
granted under the Plan, other than Awards pursuant to Section 10 hereof, including, without limitation, provisions for forfeiture in the event the Participant shall engage in competition with the Company or in any other circumstance the Board
Committee may determine. 
 12.8 Effective Date and Term of Plan. The Plan shall be effective as of the date it is approved by the
Board, subject to the approval thereof by the shareholders of the Company. Unless terminated under the provisions of Section 11 hereof, the Plan shall continue in effect indefinitely; provided, however, that no Incentive Stock
Options shall be granted after the tenth anniversary of the effective date of the Plan. 
 12.9 Compliance with Section 162(m).
It is the Company’s intent that compensation payable pursuant to Awards (other than Awards of Restricted Stock which vest based solely on continued employment) to “covered employees” as such term is defined in Regulation
1.162-27(c)(2) promulgated under Section 162(m) of the Code, or any successor provision (“Section 162(m)”), qualify as “performance-based compensation” as defined in Regulation 1.162-27(e) under Section 162(m). If any
provision of this Plan or an Award is later found to make compensation intended to be 

  

 -13- 

 
performance-based compensation ineligible for such treatment, the provision shall be deemed null and void, unless otherwise determined by a committee of the
Board comprised solely of “outside directors” as such term is defined under Regulation 1.162-27(e)(3) under Section 162(m). 
 12.10 Transferability of Awards. Notwithstanding anything to the contrary contained in this Plan, any Award may be transferred to a “family member” as defined in and pursuant to the terms and conditions set forth in
Section A.1.a.5 of the General Instructions to Form S-8 promulgated under the Securities Act of 1933, as amended, as such provision may be amended from time to time, on such terms and conditions as may be determined by the Committee.

 Stock numbers adjusted for stock splits as of April 19, 2004. 
 Shares reserved for issuance reflect April 2006 increase. 
  

 -14-Disinterested Director Retention Plan

 EXHIBIT 10.1 
 AMERICAN CAPITAL STRATEGIES, LTD. 
 DISINTERESTED DIRECTOR RETENTION PLAN 
 1. Definitions. In this Plan, except where the context otherwise indicates, the following definitions shall apply: 
 1.1. “1940 Act” means the Investment Company Act of 1940, as amended. 
 1.2. “Account” means a separate bookkeeping account maintained on behalf of each Participant. The value of a Participant’s Account as of
any date shall equal the product of (a) the Annual Board Fee in effect for such Participant as of such date, and (b) the sum of (i) a whole number equal to the number of full Years of Service accrued by such Participant as of such
date, and (ii) one (1) if such date is not the Commencement Date or an anniversary thereof. No interest or other earnings shall be credited to Accounts under the Plan. 
 1.3. “Affiliate” means any corporation, partnership, business trust, limited liability company or other form of business organization at least a
majority of the total combined voting power of all classes of stock or other equity interests of which is owned by the Company, either directly or through one or more other Affiliates. 
 1.4. “Annual Board Fee” means for a Participant the annual board retainer fee as in effect on such Participant’s Payment Event Date, and
shall not include fees paid for meeting attendance or any additional retainers such as those paid to chairs of Board committees or to the lead director. 
 1.5. “Board” means the Board of Directors of the Company. 
 1.6. “Change of Control”
means a change in ownership or effective control (within the meaning of Section 409A of the Code) of the Company. 
 1.7.
“Code” means the Internal Revenue Code of 1986, as amended. 
 1.8. “Committee” means the committee appointed by the Board
to administer this Plan. Unless otherwise determined by the Board, the Compensation and Corporate Governance Committee of the Board shall be the Committee. 

 1.9. “Commencement Date” means the date on which an individual becomes an Eligible Individual.

 1.10. “Company” means American Capital Strategies, Ltd., a Delaware corporation, and any successor thereto. 
 1.11. “Director” means a member of the Board. 
 1.12. “Disabled” means “disabled” within the meaning of Section 409A of the Code. 
 1.13. “Effective Date” means July 27, 2006. 
 1.14. “Eligible Individual” means any Director of the Company
who is not “interested” as defined in the 1940 Act. 
 1.15. “Participant” means an Eligible Individual who has satisfied
the requirements of Section 4 hereof. 
 1.16. “Payment Event Date” means for a Participant the earliest to occur of
(a) the date of such Participant’s Separation from Service, (b) the date of such Participant becoming Disabled, (c) the date of such Participant’s death, or (d) the date of a Change of Control. 
 1.17. “Plan” means this American Capital Strategies, Ltd. Disinterested Director Retention Plan, as amended from time to time. 
 1.18. “Separation from Service” means a “separation from service” within the meaning of Section 409A of the Code. 
 1.19. “Year of Service” means for a Participant each one-year period commencing on a Participant’s Commencement Date or anniversary thereof
during which such Participant continues to be an Eligible Individual. 
 2. Purpose. The Plan is intended to assist the Company in attracting and
retaining Eligible Individuals of outstanding ability. 
 3. Administration. The Committee shall administer the Plan. Subject to the provisions of the
Plan, the Committee shall have plenary authority and discretion to construe and interpret the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan and to make all other determinations deemed necessary or advisable for the
administration of the Plan. The determinations of the Committee on the matters referred to in this Section 3 shall be binding and final. 

 4. Eligibility. 
 4.1. Each person who is an Eligible Individual as of the Effective Date shall be a Participant as of the Effective Date. 
 4.2. Each person who becomes an Eligible Individual subsequent to the Effective Date shall become a Participant on the one-year anniversary of such Eligible Individual’s Commencement Date if such Eligible
Individual does not die, become Disabled, experience a Separation from Service, or otherwise cease to be an Eligible Individual prior to such one-year anniversary. 
 5. Vesting. 
 5.1. Each person who is a Participant as of the Effective Date shall become vested in his or her Account as
follows: 
  

				
	 Date
	  	Percentage of Account Vested	 
	 August 1, 2006
	  	20	%
	 February 1, 2007
	  	40	%
	 August 1, 2007
	  	60	%
	 February 1, 2008
	  	80	%
	 August 1, 2008
	  	100	%

 Notwithstanding the foregoing, each such Participant shall become fully vested in his or her Account immediately
upon the Participant’s death or becoming Disabled, or upon the occurrence of a Change of Control. 
 5.2. Each other Participant shall
be fully vested in his or her Account immediately upon becoming a Participant. 
 5.3. Notwithstanding any other provision of this Plan, the
entirety of a Participant’s Account shall be immediately forfeited upon such Participant’s Separation from Service upon unanimous vote of the other members of the Board of Directors. In such case, such Participant shall cease to be an
Eligible Individual, and no amount shall be or ever become payable under this Plan to any such Participant. 
 6. Payment of Accounts. Except as
provided in Section 5.3, the Company shall pay to each Participant whose Account is vested as of such Participant’s Payment Event Date (or, in the event of the Participant’s death, his or her estate or designated beneficiary) an
amount equal to the value of his or her Account in a lump sum in cash within one month of such Participant’s Payment Event Date. 

 7. Termination or Amendment. The Board may amend or terminate this Plan in any respect at any time; provided,
however, that no amendment or termination of this Plan shall be made by the Board without approval of each affected Participant if such amendment or termination would adversely affect such Participant’s rights or obligations under this Plan.

 8. Withholding. The Company’s obligation to pay to any Participant any amount hereunder shall be subject to satisfaction of any applicable
federal, state and local tax withholding requirements. 
 9. Indemnification of Committee. In addition to such other rights of indemnification as they
may have as members of the Board or the Committee, members of the Committee (and such person(s) to whom the Committee delegates its powers or responsibilities) shall be indemnified by the Company against all reasonable expenses, including
attorneys’ fees, actually and reasonably incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure
to act under or in connection with this Plan or any Bonus Award granted hereunder, and against all amounts reasonably paid by them in settlement thereof or paid by them in satisfaction of a judgment in any such action, suit or proceeding, if such
members acted in good faith and in a manner which they believed to be in, and not opposed to, the best interests of the Company. 
 10. General
Provisions. 
 10.1. The establishment of this Plan shall not confer upon any Participant any legal or equitable right against the
Company, any Affiliate or the Committee, except as expressly provided in this Plan. 
 10.2. Participation in this Plan shall not give an
Eligible Individual any right to be retained in the service of the Company or any Affiliate as a Director or otherwise. 
 10.3. The interests
of any Participant under this Plan are not subject to the claims of the Participant’s creditors and may not, in any way, be assigned, alienated or encumbered. 
 10.4. This Plan shall be governed, construed and administered in accordance with the laws of the State of Delaware. 
 10.5. The Company may, in its discretion, establish a trust to fund the payment of Accounts. Notwithstanding the establishment of any trust, (a) all credits and adjustments to a Participant’s Account shall be 

 bookkeeping entries only and shall not represent a special reserve or otherwise constitute a funding of
the Company’s unsecured promise to pay any amounts hereunder, and (b) to the extent that a Participant or any other person acquires a right to receive payments from the Company under this Plan, such right shall be no greater than the right
of any unsecured general creditor of the Company, and such person has only the unsecured promise of the Company that such payments shall be made. The Plan is intended to be an unfunded plan for the benefit of non-employee directors, exempt from the
Employee Retirement Income Security Act of 1974, as amended. 
 10.6. This Plan is intended to comply with Section 409A of the Code, and
the Committee shall administer and interpret this Plan in a manner that is consistent therewith.

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