Document:

Exhibit

EXHIBIT 10.1
EXECUTION VERSION

FIRST AMENDMENT 
TO 
CREDIT AGREEMENT

This FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), dated as of September 17, 2019 (effective as provided herein), is among WINTRUST FINANCIAL CORPORATION, an Illinois corporation ("Borrower"), each Lender a party hereto, and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent ("Administrative Agent").
RECITALS:
Borrower, Lenders and Administrative Agent have previously entered into the Credit Agreement dated as of September 18, 2018 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "Credit Agreement").
Borrower has requested extension of the Revolving Credit Maturity Date, and Lenders have agreed, subject to the terms and conditions hereof, to extend the Revolving Credit Maturity Date, as provided in this Amendment, and to make certain other changes to the Credit Agreement.
AGREEMENT:
NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto agree as follows:
ARTICLE I 
 
Definitions
1.1    Definitions.  Capitalized terms not otherwise defined herein have the same meanings as set forth in the Credit Agreement.
ARTICLE II     
 
Amendments to Credit Agreement
2.1    Amendments to Section 1.01.  
(a) The following definitions are added to Section 1.01 of the Credit Agreement in appropriate alphabetical order:
"Covered Party" has the meaning specified in Section 11.24(b).
"First Amendment Effective Date" means September 17, 2019.
"QFC Credit Support" has the meaning specified in Section 11.24(b).
"Supported QFC" has the meaning specified in Section 11.24(b).
"U. S. Special Resolution Regimes" has the meaning specified in Section 11.24(b).
(b) The definition of “Revolving Credit Maturity Date” is amended by deletion of the date "September 17, 2019" and its replacement with the date "September 15, 2020".
(c) The definition of "Interest Period" is amended by deleting from the third line thereof the words "three months thereafter" and inserting in lieu thereof the following:
"that is seven (7) days or one (1), two (2), three (3), or six (6) months thereafter (as selected by the Borrower pursuant to Section 2.01 or 2.02)"
(d) The definition of "Audited Financial Statements" is amended by deletion of the date "December 31, 2017" and its replacement with the date "December 31, 2018".
(e) The definition of “Subsidiary Bank” is amended to add the parenthetical “(as such Schedule may be updated from time to time as agreed between the Borrower and the Administrative Agent)” to the end of clause (i) appearing in such definition.
2.2    Amendment to Section 2.01(b)(ii).  Section 2.01(b)(ii) of the Credit Agreement is amended by the deletion of the phrase “three months” and its replacement with the phrase “one month”.
2.3    Amendment to Section 2.02(a).  Section 2.02(a) of the Credit Agreement is amended (i) by the deletion of the phrase “three months” and its replacement with the phrase “one month” and (ii) to amend and restate the third sentence thereof to read as follows: “If the Borrower fails to give a timely Notice of Conversion/Continuation prior to the end of the Interest Period for any Eurodollar Rate Loan, then the applicable Eurodollar Rate Loan shall be automatically continued as a Eurodollar Rate Loan with an Interest Period of the same duration.”
2.4    Amendment to Section 5.05(b).  Section 5.05(b) of the Credit Agreement is amended by deletion of the date "June 30, 2018" and its replacement with the date "June 30, 2019".
2.5    Amendment to Section 7.02(e).  Section 7.02(e) of the Credit Agreement is amended by deleting therefrom the reference to "$200,000,000" and inserting in lieu thereof a reference to "$400,000,000."
2.6    Amendment to Article XI.  Article XI of the Credit Agreement is amended by adding thereto a new Section, numbered 11.24, reading as follows:
11.24    Acknowledgement Regarding Any Supported QFCs.  To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Swap Contracts or any other agreement or instrument that is a QFC (such support, "QFC Credit Support" and, each such QFC, a "Supported QFC"), the parties acknowledge and agree as follows with respect to the resolution power of the FDIC under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "U.S. Special Resolution Regimes") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States): 
(a)    In the event a Covered Entity that is party to a Supported QFC (each, a "Covered Party") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.  
(b)    As used in this Section 11.24, the following terms have the following meanings:
"BHC Act Affiliate" of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.
"Covered Entity" means any of the following:
(i)    a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
(ii)    a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
(iii)    a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
"Default Right" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
"QFC" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).
2.7    Restatement of Certain Schedules.  Schedule 7.02 to the Credit Agreement is amended and restated in its entirety in the form attached as Schedule 7.02 to this Amendment.
ARTICLE III     
 
Conditions Precedent; Effectiveness
3.1    Conditions.  The effectiveness of this Amendment is subject to the satisfaction of the following condition precedent:
(a)    Documents.  Administrative Agent shall have received this Amendment executed by Borrower and each Lender.
(b)    Upfront Fee.  The Borrower shall have paid to the Administrative Agent, for the account of the Lenders, a non-refundable upfront fee equal to 0.15% of the Aggregate Revolving Credit Commitments, such upfront fee to be distributed by the Administrative Agent to the Lenders pro rata in accordance with each Lender's Revolving Credit Commitment Percentage.   
(c)    Closing Certificates; Etc.  The Administrative Agent shall have received each of the following in form and substance reasonably satisfactory to the Administrative Agent:
(i)    Officer’s Certificate.  A certificate from a Responsible Officer of the Borrower to the effect that (A) all representations and warranties of the Borrower contained in this Amendment are true, correct and complete in all material respects (except to the extent such representation or warranty is already qualified as to materiality, Material Adverse Effect, or similar language, in which case it shall be true and correct in all respects) on and as of the date hereof with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects except to the extent such representations and warranties are already qualified as to materiality, Material Adverse Effect, or similar language, in which case they shall be true and correct in all respects) as of such earlier date and (B) no Default or Event of Default has occurred and is continuing.
(ii)    Certificate of Secretary of the Borrower.  A certificate of a Responsible Officer of the Borrower certifying as to the incumbency and genuineness of the signature of each officer of the Borrower executing this Amendment and certifying that attached thereto is a true, correct and complete copy of resolutions duly adopted by the board of directors of the Borrower authorizing and approving the transactions contemplated hereunder and the execution, delivery and performance of this Amendment.
(iii)    Certificate of Good Standing.  A certificate as of a recent date of the good standing of the Borrower under the laws of its jurisdiction of incorporation.
3.2    Effectiveness.  Upon satisfaction of the condition precedent in Section 3.1, this Amendment shall be effective as of the First Amendment Effective Date.

ARTICLE IV     
 
Ratification
4.1    Ratification.  The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Credit Agreement and except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect.  Borrower agrees that the Credit Agreement, as amended hereby, and the other Loan Documents to which it is a party or subject shall continue to be legal, valid, binding and enforceable in accordance with their respective terms.
ARTICLE V     
 
Representations and Warranties
5.1    Loan Documents.  Borrower hereby represents and warrants to each Lender and Administrative Agent that (a) the execution, delivery and performance of this Amendment and any and all other Loan Documents executed and/or delivered in connection herewith have been authorized by all requisite action on the part of Borrower and will not (i) violate any organizational or governance document of Borrower or (ii) violate any applicable law in any material respect, (b) the representations and warranties contained in the Credit Agreement, as amended hereby, and each other Loan Document are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof (except to the extent such representation or warranty is already qualified as to materiality, Material Adverse Effect, or similar language, in which case it shall be true and correct in all respects) on and as of the date hereof with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be shall be true and correct in all material respects (except to the extent such representations and warranties are already qualified as to materiality, Material Adverse Effect, or similar language, in which case they shall be true and correct in all respects) as of such earlier date, (c) no Default or Event of Default shall exist immediately before or immediately after giving effect to this Amendment, and (d) there have been no amendments, supplements or other modifications to the certificate of incorporation or by-laws of the Borrower since May 1, 2019, copies of which have heretofore been provided to the Lenders and which remain in full force and effect on and as of the date hereof.

ARTICLE VI     
 
Miscellaneous
6.1    Reference to Credit Agreement.  Each of the Loan Documents, including the Credit Agreement and any and all other agreements, documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement, as amended hereby, are hereby amended so that any reference in such Loan Documents to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby.
6.2    Severability.  Any provision of this Amendment or any other Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction.
6.3    Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed signature page of this Amendment by facsimile transmission or PDF attachment to email shall be effective as delivery of an original executed counterpart thereof.  
6.4    Governing Law; Jurisdiction, Etc.
(a)    Governing Law.  This Amendment and the other Loan Documents executed in connection herewith, unless expressly set forth therein, shall be governed by, construed and enforced in accordance with, the law of the State of Illinois, without reference to the conflicts or choice of law principles thereof.
(b)    Submission to Jurisdiction.  Each of the parties hereto irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of Illinois sitting in Cook County and of the United States District Court of the Northern District of Illinois, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Amendment or any other Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such Illinois state court or, to the fullest extent permitted by applicable Law, in such Federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Amendment or in any other Loan Document shall affect any right that Administrative Agent or any Lender may otherwise have to bring any action or proceeding relating to this Amendment or any other Loan Document against Borrower or its properties in the courts of any jurisdiction.
(c)    Waiver of Venue.  Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent permitted by applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Amendment or any other Loan Document executed in connection herewith in any court referred to in Section 6.4(b).  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(d)    Service of Process.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 11.02 of the Credit Agreement.  Nothing in this Amendment will affect the right of any party hereto to serve process in any other manner permitted by applicable Law.
6.5    Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
6.6    FINAL AGREEMENT.  THIS AMENDMENT, TOGETHER WITH THE CREDIT AGREEMENT, AS AMENDED HEREBY, AND THE OTHER LOAN DOCUMENTS, REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
6.7    Expenses of Administrative Agent.  To the extent provided in the Credit Agreement, Borrower shall pay all invoiced reasonable costs and expenses incurred by Administrative Agent in connection with the preparation, negotiation, and execution of this Amendment and the other Loan Documents executed pursuant hereto, including without limitation the reasonable fees and expenses of Administrative Agent’s legal counsel promptly following Borrower’s receipt of invoices therefor.

[Signature Pages Follow]

6.8    

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly authorized officers, all as of the day and year first written above.
BORROWER: 
 
WINTRUST FINANCIAL CORPORATION 
 
 
By:     /s/David L. Stoehr     
    David L. Stoehr 
    Executive Vice President and 
    Chief Financial Officer
WELLS FARGO BANK, N.A., 
as Administrative Agent  
 
 
By:     /s/Linda Sampson     
Name:     Linda Sampson 
Title:     Vice President 
    

WELLS FARGO BANK, N.A., 
as a Lender  
 
 
By:     /s/Nicole Freeman     
Name:    Nicole Freeman  
Title:     Managing Director

ROYAL BANK OF CANADA,
as a Lender

By:     /s/Brian Reidy     
Name:    Brian Reidy  
Title:    MD, ICM

U.S. BANK NATIONAL ASSOCIATION
as a Lender

By:     /s/Peter Caligiuri     
Name:    Peter Caligiuri  
Title:    Senior Vice President

SCHEDULE 7.02

EXISTING INDEBTEDNESS

		
	1.
	The Borrower has principal indebtedness of approximately $47.1 million as of June 30, 2019 with U.S. Bank National Association secured by a mortgage on two buildings located at 9700 West Higgins Road, Rosemont, Illinois and 9801 West Higgins Road, Rosemont, Illinois.

		
	2.
	Great Lakes Advisors LLC has a $7.5 million line of credit with Wintrust Financial Corporation, its ultimate parent company.

		
	3.
	Junior Subordinated Debentures due to the trusts established in connection with the issuance of trust preferred securities as disclosed in Footnote 12 to the Borrower’s Consolidated Financial Statements as filed on Form 10-Q for the period ended June 30, 2019.

		
	4.
	Wintrust Financial Corporation’s guaranties of the trust preferred securities as disclosed in Footnote 12 to the Borrower’s Consolidated Financial Statements as filed on Form 10-Q for the period ended June 30, 2019.

		
	5.
	5.0000% Subordinated Notes has existing principal indebtedness of approximately $140.0 million with U.S. Bank National Association, as trustee and Royal Bank of Canada, as underwriter,  as disclosed in Footnote 12 to the Borrower’s Consolidated Financial Statements as filed on Form 10-Q for the period ended June 30, 2019.

		
	6.
	4.850% Subordinated Notes has existing principal indebtedness of approximately $300.0 million with U.S. Bank National Association as trustee and RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC as underwriters, as disclosed in Footnote 11 to Borrower’s Condensed Consolidated Financial Statements filed on Form 10-Q for the period ended June 30, 2019.

1Exhibit

Exhibit 10.1
GRACO INC.
INCENTIVE BONUS PLAN

1.Definitions.  When the following terms are used herein with initial capital letters, they shall have the following meanings:
1.1Affiliate - any entity that (i) directly or indirectly through one or more intermediaries, is controlled by the Company or in which the Company has a significant equity interest, in each case as determined by the Compensation Committee, and (ii) has adopted the Plan. 
1.2Base Salary - the annual fixed salary paid to a Participant.
1.3Bonus Award - the incentive structure established for each Participant by the Compensation Committee for each Performance Period pursuant to Section 3.1 hereof.
1.4Bonus Payment - an amount payable to a Participant pursuant to Section 3.2 hereof.
1.5Compensation Committee - the Management Organization and Compensation Committee of the Board of Directors of Graco Inc.
1.6Company - Graco Inc., a Minnesota corporation.
1.7Eligible Employee - any employee of the Company or of an Affiliate.
1.8Participant - an Eligible Employee designated by the Compensation Committee as subject to the Plan.
1.9Performance Period - the Company’s fiscal year or such other period as determined by the Committee from time to time.
1.10Performance Target(s) - the financial and other target(s) established by the Compensation Committee for a Performance Period and reflected in a document adopted by the Compensation Committee in accordance with the terms of the Plan.
1.11Plan - this Incentive Bonus Plan.
2.Administration.
2.1Authority of Compensation Committee.  The Compensation Committee shall have the authority, subject to the terms of the Plan, to (i) make Bonus Awards, (ii) determine when and to whom Bonus Awards will be granted, (iii) determine the form, amount and other terms and conditions of each Bonus Award, (iv) set the Performance Period and establish the Performance Target(s) and relationship between the Performance Target(s) and Bonus Payments, and (v) otherwise administer the Plan. The Compensation Committee’s interpretation of the Plan and of any Bonus Payments made or to be made under the Plan shall be final and binding on all persons with an interest therein. The Compensation Committee shall have the power to establish regulations to administer the Plan and to change such regulations. 
2.2Delegation.  The Compensation Committee may delegate to the Chief Executive Officer the authority, with respect to Participants who are not executive officers of the Company, to (i) determine which of such Eligible Employees will be granted Bonus Awards under the Plan, (ii) determine the amount and terms of Bonus Awards under the Plan for such Participants and (iii) take all other actions of the Compensation Committee, including administration and interpretation of such Bonus Awards. Bonus Awards granted pursuant to such delegated authority shall be made consistent with the criteria established by the Compensation 

Committee and shall be subject to any other restrictions placed on the delegation by the Compensation Committee.
3.Bonus Award for a Performance Period.
3.1Bonus Award.
(a)Grant of Bonus Award. For each Bonus Award, the Compensation Committee shall designate the Participants in the Plan; determine the applicable Performance Period; determine the amount of the Bonus Award (which may be based on a percentage of the Participant’s Base Salary); select applicable Performance Target(s); identify the weights thereof; and determine the relationship between the degree to which Performance Targets have been achieved and Bonus Payments. Such determinations shall be memorialized in written documents adopted by the Compensation Committee.  
(b)Performance Targets.
(1)Performance Targets shall be based on one or more financial, operational or strategic measures approved by the Compensation Committee including, but not limited to: stock price, net sales, net earnings, pre-tax earnings, operating earnings, earnings before interest and taxes, earnings before interest, taxes, depreciation, and amortization, operating cash flow, free cash flow, cash flow from operations, return on equity, return on assets, return on invested capital, expenses, earnings per share, and total shareholder return (the “Performance Measures”). All Performance Measures applicable to Bonus Awards shall be applied in a manner consistent with usual Company practice and such rules and conditions as the Compensation Committee may establish. Financial Performance Measures shall be computed in accordance with generally accepted accounting principles as in effect from time to time and as applied by the Company in the preparation of its financial statements, except the Compensation Committee may provide that one or more objectively determinable adjustments shall be made to the financial Performance Measures on which the Performance Targets are based, which may include adjustments that would cause such measures to be considered “non-GAAP financial measures” within the meaning of Rule 101 under Regulation G promulgated by the Securities and Exchange Commission, such as excluding the impact of specified unusual or nonrecurring events such as acquisitions, divestitures, restructuring activities, asset write-downs, litigation judgments or settlements or changes in tax laws or accounting principles.
(2)Any Performance Target based on one or more of the Performance Measures may be expressed in absolute amounts, on a per share basis (basic or diluted), relative to one or more of the other Performance Measures, as a growth rate or change from preceding periods, or as a comparison to the performance of specified companies, indices or other external measures, and may relate to one or any combination of two or more of corporate (consolidated), group, unit, division, Affiliate or individual performance.
3.2Bonus Payment.  Following the close of each Performance Period and prior to the making of any payment in settlement of a Bonus Award (a “Bonus Payment”), the Compensation Committee shall determine whether and to what extent Performance Target(s) and all other factors upon which the Bonus Payment is based have been attained. In determining whether and to what extent a Performance Target has been attained, the Compensation Committee may make adjustments based on unusual or unique circumstances or the impact of acquisitions, divestitures or other major unusual events. Subject to any deferred compensation election pursuant to any such plans of the Company, payment of the Bonus Payment shall in all events be made within two and a half months following the calendar year in which the Performance Period ends.
3.3    Limitations.

(a)If Performance Targets are not Achieved.  If Performance Targets are not achieved during the Performance Period, no Bonus Payments shall be made under the Plan.
(b)Pro-ration or Elimination of Bonus Payment.  Participation in the Plan ceases with resignation, termination, retirement, death or long-term disability. A Participant who resigns or is terminated effective during the Performance Period is ineligible for a Bonus Payment unless the Compensation Committee directs otherwise. A Participant who is employed by the Company or any Affiliate through the last day of the Performance Period shall be eligible for a Bonus Payment. A Participant who retires, dies or becomes eligible for long-term disability benefits under the Company’s long-term disability benefit plan during the Performance Period may be paid a bonus in accordance with the direction of the Compensation Committee. Any Bonus Payments made pursuant to this Section 3.3(b) shall be based on actual achievement of the Performance Target(s) and prorated based on the actual number of days in the Performance Period the Participant was employed by the Company or an Affiliate. For purposes of the Plan, a Participant who has attained age 65, or age 55 and 10 years of service with the Company or an Affiliate shall, upon termination for any reason other than “cause” (as defined below) be deemed to have retired. As used in this Plan, the term “cause” shall mean: (a) Participant’s conviction or guilty or no contest plea to any felony or other criminal act involving moral turpitude; (b) gross misconduct or any act of fraud, disloyalty or dishonesty by Participant related to or connected with Participant’s employment or otherwise likely to cause material harm to the Company or its reputation; (c) a willful and material violation by Participant of the Company’s written policies or codes of conduct; (d) wrongful appropriation by Participant of Company funds or property or other material breach of Participant’s fiduciary duties to the Company; or (e) the willful and material breach by Participant of any employment agreement between Participant and the Company. Notwithstanding anything to the contrary in this Plan, a Participant who is terminated for “cause” will not be eligible to receive any Bonus Payment, regardless of whether such termination occurs during or after the Performance Period.
(c)Adjustments.  The Compensation Committee is authorized at any time prior to the payment of a Bonus Award, in its discretion and based on such considerations as it deems appropriate, to adjust the amount otherwise payable to the Participant in connection with such Bonus Award.
4.Nontransferability.  Participants and beneficiaries shall not have the right to assign, encumber or otherwise anticipate the payments to be made under the Plan, and the benefits provided hereunder shall not be subject to seizure for payment of any debts or judgments against any Participant or any beneficiary.
5.Tax Withholding.  In order to comply with all applicable federal, provincial, state or local income tax laws or regulations, the Company or an Affiliate may take such action as it deems appropriate to ensure that all applicable federal, provincial, state or local payroll, withholding, income or other taxes, which are the sole and absolute responsibility of a Participant, are withheld or collected from such Participant.
6.Amendment.  The Compensation Committee may amend the Plan prospectively at any time and for any reason deemed sufficient by it without prior notice to any person affected by the Plan, except that no such amendment may materially impair the rights of any Participant with respect to an outstanding Bonus Award without the Participant’s consent, unless such amendment is necessary to comply with applicable law or stock exchange rules. 
7.Miscellaneous.
7.1.Effective Date.  January 1, 2020
7.2.Term of the Plan.  The Plan shall continue in existence until affirmatively discontinued or terminated by the Compensation Committee, which it may do at any time. No Bonus Award shall be granted after the termination of the Plan; provided, however, that a Bonus Payment with respect to a Performance Period which begins before such termination may be made thereafter.

7.3.Headings.  Headings are given to the sections and subsections of the Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof.
7.4.Applicability to Successors.  The Plan shall be binding upon and inure to the benefit of the Company and each Participant, the successors and assigns of the Company, and the beneficiaries, personal representatives and heirs of each Participant. If the Company becomes a party to any merger, consolidation or reorganization, the Plan shall remain in full force and effect as an obligation of the Company or its successors in interest.
7.5.Employment Rights and Other Benefit Programs.
(a)The provisions of the Plan shall not give any Participant any right to be retained in the employment of the Company or any Affiliate. In the absence of any specific agreement to the contrary, the Plan shall not affect any right of the Company, or of any Affiliate, to terminate, with or without cause, the Participant’s employment at any time. The Plan shall not replace any contract of employment, whether oral or written, between the Company or any Affiliate and any Participant, but shall be considered a supplement thereto.
(b)Bonus Payments received by a Participant pursuant to the Plan shall not be deemed a part of the Participant’s regular, recurring compensation for purposes of the termination, indemnity or severance pay law of any country and shall not be included in, nor have any effect on, the determination of benefits under any other employee benefit plan, contract or similar arrangement provided by the Company or any Affiliate unless expressly so provided by such plan, contract or arrangement, or unless the Compensation Committee expressly determines that a Bonus Payment or portion of a Bonus Payment should be included to accurately reflect competitive practices or to recognize that a Bonus Payment has been made in lieu of a portion of competitive cash compensation.
7.6.No Trust or Fund Created.  The Plan shall not create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Company or any Affiliate pursuant to the Plan, such right shall be no greater than the right of any unsecured general creditor of the Company or of any Affiliate.
7.7.Governing Law.  To the extent that federal law does not otherwise control, the validity, construction and effect of the Plan or any bonus payable under the Plan shall be determined in accordance with the laws of the State of Minnesota.
7.8.Severability.  If any provision of the Plan is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Compensation Committee, materially altering the purpose or intent of the Plan, such provision shall be stricken as to such jurisdiction, and the remainder of the Plan shall remain in full force and effect.
7.9.Compensation Recovery Policy.   Bonus Awards and any compensation associated therewith, including any Bonus Payment, may be made subject to forfeiture, recovery by the Company or other action pursuant to any compensation recovery policy adopted by the Board of Directors or Compensation Committee at any time, including in response to the requirements of Section 10D of the Securities Exchange Act of 1934, as amended, and any implementing rules and regulations thereunder, or as otherwise required by law. The terms of any Bonus Award may be unilaterally amended by the Compensation Committee to comply with any such compensation recovery policy.

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