Document:

EX-10.1

 Exhibit 10.1 

Reynolds American Inc. 
 Executive Severance Plan

 As Amended and Restated Effective May 5, 2016 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	Article 1.  	 	 Establishment and Term of the Plan
	  	 	1	  
			
	1.1	 	 Establishment of the Plan
	  	 	1	  
			
	1.2	 	 Plan Term
	  	 	1	  
			
	1.3	 	 Change in Control and Plan Term
	  	 	1	  
			
	Article 2.	 	 Definitions
	  	 	2	  
			
	Article 3.	 	 Severance Eligibility/Conditions
	  	 	8	  
			
	3.1	 	 Qualifying Termination
	  	 	8	  
			
	3.2	 	 Specified Employees
	  	 	9	  
			
	3.3	 	 No Severance Benefits
	  	 	9	  
			
	3.4	 	 General Release and Non-Competition Agreement
	  	 	9	  
			
	3.5	 	 No Duplication of Severance Benefits
	  	 	9	  
			
	3.6	 	 Notice of Termination
	  	 	10	  
			
	3.7	 	 Disability
	  	 	10	  
			
	Article 4.	 	 Severance Benefits
	  	 	10	  
			
	4.1	 	 Change in Control Severance Benefits
	  	 	10	  
			
	4.2	 	 General Severance Benefits
	  	 	11	  
			
	Article 5.	 	 Excise Taxes
	  	 	13	  
			
	5.1	 	 Applicable Provisions if Excise Tax Applies
	  	 	13	  
			
	Article 6.	 	 Contractual Rights and Legal Remedies
	  	 	15	  
			
	6.1	 	 Payment Obligations Absolute
	  	 	15	  
			
	6.2	 	 Contractual Rights to Benefits
	  	 	15	  
			
	6.3	 	 Legal Fees and Expenses
	  	 	15	  
			
	6.4	 	 Return of Severance Benefits
	  	 	16	  
			
	Article 7.	 	 Successors
	  	 	16	  
			
	7.1	 	 Successors to the Company
	  	 	16	  
			
	7.2	 	 Assignment by the Executive
	  	 	16	  
			
	Article 8.	 	 Plan Administration
	  	 	16	  
			
	8.1	 	 The Committee
	  	 	16	  
			
	8.2	 	 Administration Committee
	  	 	17	  
			
	8.3	 	 Indemnification
	  	 	17	  

  
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 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
	Article 9.  	 	 Miscellaneous
	  	 	17	  
			
	9.1	 	 Employment Status
	  	 	17	  
			
	9.2	 	 Entire Plan
	  	 	17	  
			
	9.3	 	 Adoption Procedure for a Participating Company
	  	 	17	  
			
	9.4	 	 Notices
	  	 	18	  
			
	9.5	 	 Includable Compensation
	  	 	18	  
			
	9.6	 	 Tax Withholding
	  	 	18	  
			
	9.7	 	 Internal Revenue Code Section 409A
	  	 	18	  
			
	9.8	 	 Severability
	  	 	18	  
			
	9.9	 	 Modification
	  	 	18	  
			
	9.10	 	 Gender and Number
	  	 	19	  
			
	9.11	 	 Applicable Law
	  	 	19	  

  
 -ii- 

 Reynolds American Inc. 

Executive Severance Plan 
 Article 1.
Establishment and Term of the Plan 
 1.1 Establishment of the Plan. Reynolds American Inc. hereby amends and restates the
severance plan known as the “Reynolds American Inc. Executive Severance Plan” effective as of May 5, 2016. The Plan was originally effective January 1, 2007, and was subsequently amended and restated effective January 1,
2008, January 1, 2009, February 1, 2009, August 1, 2009, and December 1, 2012. The Plan provides severance benefits to specified executives of the Company and any other entity that adopts this Plan in accordance
with the provisions of Section 9.3 upon certain terminations of employment from a Participating Company. 
 The Company
considers the establishment and maintenance of a sound management to be essential to protecting and enhancing the best interests of the Company and its shareholders. In this connection, the Company recognizes that, as is the case with many publicly
held corporations, the possibilities of a Change in Control or a termination of an Executive’s employment by a Participating Company may arise and that such possibilities, and the uncertainty and questions which they may raise among management,
may result in the departure or distraction of management personnel to the detriment of the Company and its shareholders. 
 Accordingly, the
Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Participating Companies’ management to their assigned duties without distraction in circumstances
arising from the possibility of a Change in Control of the Company or a termination of an Executive’s employment by a Participating Company. 

1.2 Plan Term. This Plan commenced on January 1, 2007, and shall continue in effect until terminated by the Company. The Company
may terminate this Plan entirely or terminate any individual Executive’s participation in the Plan at any time by: (a) giving all Executives twelve (12) months prior written notice of Plan termination if terminating the Plan in its
entirety or (b) giving the affected Executive twelve (12) months prior written notice if terminating the affected Executive’s participation in the Plan. Upon delivery of such notice by the Company, this Plan or the Executive’s
participation in the Plan, as the case may be, along with all corresponding rights, duties, and covenants, shall terminate on the date indicated in such notice, which date shall not be less than twelve (12) months from the date the Executive
received such notice.  
 1.3 Change in Control and Plan Term. Notwithstanding Section 1.2, in the event of a Change in
Control during the term of the Plan, the Company may not terminate the Plan or any individual Executive’s participation in the Plan during the period beginning on the date of the Change in Control through the second anniversary of the Change in
Control, whereupon the provisions of the Plan pertaining to Change in Control Severance Benefits shall automatically terminate; provided, however, that such automatic termination shall not apply to the payment of any Change in Control
Severance Benefits commenced prior to such automatic termination. The Company shall cause any successor entity in a Change in Control to expressly assume the Plan, as further provided in Article 7. 

 Article 2. Definitions 

Wherever used in this Plan, the following capitalized terms shall have the meanings set forth below: 

 

	 	(a)	“Accounting Firm” means a nationally recognized accounting firm, or actuarial, benefits or compensation consulting firm (with experience in performing the calculations regarding the applicability of
Section 280G of the Code and of the tax imposed by Section 4999 of the Code) selected by the Company.  

  

	 	(b)	“B&W” means Brown & Williamson Tobacco Corporation. 

  

	 	(c)	“Base Salary” means, at any time, the then regular annual rate of pay which the Executive is receiving as annual salary, excluding amounts: (i) received under short-term or long-term incentive or
other bonus plans, regardless of whether the amounts are deferred, (ii) lump sum payments received in lieu of an increase to annual salary, or (iii) designated by the Participating Company as payment toward reimbursement of expenses.

  

	 	(d)	“BAT” means, collectively, British American Tobacco p.l.c., a public limited company incorporated under the laws of England and Wales, and its affiliates, other than the Participating Companies

  

	 	(e)	“BCA” has the meaning set forth in Section 2(i). 

  

	 	(f)	“Beneficial Owner” or “Beneficial Ownership” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

  

	 	(g)	“Board” means the Board of Directors of the Company. 

  

	 	(h)	“Cause” means the occurrence of any one or more of the following: 

  

	 	(i)	The Executive’s criminal conduct; 

  

	 	(ii)	The Executive’s deliberate and continual refusal to substantially perform his or her employment duties; 

  

	 	(iii)	The Executive’s deliberate and continual refusal to act in accordance with any specific lawful instructions of an authorized officer or employee at a higher level than the Executive or a majority of the Board of
Directors of the Participating Company; 

  

	 	(iv)	The Executive’s deliberate misconduct which could be materially damaging to the Participating Company or any of its business operations without a reasonable good faith belief by the Executive that such conduct was
in the best interests of the Participating Company; 

  

	 	(v)	The Executive’s material violation of the Company’s Code of Conduct or any policy of a Participating Company; or 

  
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	 	(vi)	The Executive’s material breach of any non-competition, non-disclosure of confidential information or commitment to provide assistance agreement or other material obligation to a Participating Company.

 Notwithstanding the foregoing, a Tier I or Tier II Executive shall not be deemed to have been terminated for
“Cause” hereunder unless and until there shall have been delivered to the Tier I or Tier II Executive a copy of a resolution duly adopted by the affirmative vote of not less than two thirds of the Board then in office at a meeting of the
Board called and held for such purpose (after reasonable notice to the Tier I or Tier II Executive and an opportunity for the Tier I or Tier II Executive, together with the Tier I or Tier II Executive’s counsel, to be heard before the Board),
finding that, in the good faith opinion of the Board, the Tier I or Tier II Executive had committed an act constituting “Cause” as herein defined and specifying the particulars thereof in detail. Nothing herein will limit the right of the
Tier I or Tier II Executive or his beneficiaries to contest the validity or propriety of any such determination. 
 Further
notwithstanding the foregoing, a Tier III Executive shall not be deemed to have been terminated for “Cause” hereunder unless and until there shall have been delivered to the Tier III Executive a copy of a decision by the Chief Executive
Officer of the Company, after consultation with the Executive Vice President and Chief Human Resources Officer of the Company (and after reasonable notice to the Tier III Executive and an opportunity for the Tier III Executive, together with the
Tier III Executive’s counsel, to be heard by the Chief Executive Officer of the Company), finding that, in the good faith opinion of the Chief Executive Officer of the Company, the Tier III Executive had committed an act constituting
“Cause” as herein defined and specifying the particulars thereof in detail. Nothing herein will limit the right of the Tier III Executive or his beneficiaries to contest the validity or propriety of any such determination. 

 

	 	(i)	“Change in Control” shall occur if any of the following events occur:  

  

	 	(i)	An individual, corporation, partnership, group, associate or other entity or Person, other than any employee benefit plans sponsored by the Company, is or becomes the Beneficial Owner, directly or indirectly, of thirty
percent (30%) or more of the combined voting power of the Company’s outstanding securities ordinarily having the right to vote at elections of directors; provided, however, that the acquisition of Company securities by BAT
pursuant to the Business Combination Agreement, dated as of October 27, 2003, between RJR and B&W, as thereafter amended (the “BCA”), or as expressly permitted by the Governance Agreement, dated as of July 30, 2004, among
British American Tobacco p.l.c., B&W and the Company, as thereafter amended (the “Governance Agreement”), shall not be considered a Change in Control for purposes of this subsection (i); 

 

	 	(ii)	 Individuals who constitute the Board (or who have been designated as directors in accordance with
Section 1.09 of the BCA) on July 30, 2004 (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to such date whose election, or nomination
for election by the Company’s shareholders, was (A) approved by a 

  
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vote of at least three-quarters (3/4) of the directors comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is
named as a nominee of the Company for director) or (B) made in accordance with Section 2.01 of the Governance Agreement, but excluding for this purpose any such individual whose initial assumption of office occurs as a result of either an
actual or threatened election contest with respect to the election or removal of a director or other actual or threatened solicitation of proxies or consents by or on behalf of an individual, corporation, partnership, group, associate or other
entity or Person other than the Board, shall be, for purposes of this paragraph (ii), considered as though such person were a member of the Incumbent Board; or 

  

	 	(iii)	The consummation of (A) a merger or consolidation of the Company other than with a wholly owned Subsidiary and other than a merger or consolidation that would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or (B) a sale, exchange or other disposition of all or substantially all of the assets of the Company, other than any such
transaction where the transferee of all or substantially all of the assets of the Company is a wholly owned Subsidiary or an entity more than fifty percent (50%) of the combined voting power of the voting securities of which is represented by
voting securities of the Company outstanding immediately prior to the transaction (either remaining outstanding or by being converted into voting securities of the transferee entity). 

 

	 	(j)	“Change in Control Good Reason” means the occurrence after a Change in Control of any one (1) or more of the following: 

 

	 	(i)	A material reduction of the Tier I or Tier II Executive’s authorities, duties, or responsibilities as an executive and/or officer of a Participating Company from those in effect as of ninety (90) calendar days
prior to the Change in Control, other than an inadvertent reduction that is remedied by the Participating Company as provided below; provided, however, that any change in reporting relationship, title or de minimis reduction in such
authorities, duties or responsibilities resulting merely from the acquisition of the Participating Company and its existence as a subsidiary or division of another entity shall not be sufficient to constitute a Change in Control Good Reason;

  

	 	(ii)	A Participating Company’s requiring an Executive to be based at a location that exceeds the minimum distance under Section 217(c) of the Code (for purposes of a moving expense deduction), from the location of
the Executive’s principal job location or office immediately prior to the Change in Control, except for required travel on the Participating Company’s business to an extent substantially consistent with the Executive’s then present
business travel obligations; provided, however, the repatriation of an Executive following the termination of an expatriate assignment will not be considered Change in Control Good Reason; 

  
 4 

	 	(iii)	A reduction by a Participating Company in an Executive’s (A) Base Salary, (B) target annual bonus opportunity, or (C) target annual long-term incentive opportunity (as determined by a third party
compensation firm chosen by the Company and using generally accepted valuation methodologies, which may include annualizing prior year long-term incentive grants over more than one year and ignoring prior special retention or sign-on grants), in
each case as compared to the value of each in effect on the date of the Change in Control; 

  

	 	(iv)	A reduction by a Participating Company in aggregate employee benefits provided to an Executive as compared to the value of aggregate employee benefits provided as of the date of the Change in Control, except for
across-the-board reductions generally applicable to all Executives; 

  

	 	(v)	The failure of the Company to obtain a satisfactory agreement from any successor to the Company to assume and agree to perform the Company’s obligations under this Plan, as contemplated in Article 7 herein; and

  

	 	(vi)	A material breach of this Plan by a Participating Company which is not remedied by the Participating Company within ten (10) business days of receipt of written notice of such breach delivered by an Executive to
the Participating Company. 

 Notwithstanding the foregoing, (A) Change in Control Good Reason shall cease to exist for an
event on the ninetieth (90th) day following the later of its occurrence or the Executive’s knowledge thereof, unless the Executive has given a Participating Company written notice
thereof prior to such date, (B) a Participating Company shall have thirty (30) days from receipt of such written notice to remedy the facts and circumstances claimed to provide the basis for the Executive’s Change in Control Good
Reason and (C) the Executive shall be deemed to have terminated employment for Change in Control Good Reason on the thirtieth (30th) day following the Participating Company’s
receipt of the written notice described in clause (A) if the Participating Company fails to remedy such circumstances by such thirtieth (30th) day. Unless an Executive becomes Disabled,
an Executive’s right to terminate employment for a Change in Control Good Reason shall not be affected by the Executive’s incapacity due to physical or mental illness. An Executive’s continued employment shall not constitute consent
to, or a waiver of rights with respect to, any circumstance constituting a Change in Control Good Reason herein. 
  

	 	(k)	“Change in Control Severance Benefits” mean the severance benefits as provided in Section 4.1(b). 

  

	 	(l)	“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated thereunder. 

 

	 	(m)	“Committee” means the Compensation and Leadership Development Committee of the Board, or another committee of the Board appointed by the Board to administer this Plan. 

  
 5 

	 	(n)	“Company” means Reynolds American Inc., a North Carolina corporation, and any successor thereto as provided in Article 7. 

 

	 	(o)	“Disability” or “Disabled” shall have the meaning ascribed to such term in the Company’s governing long-term disability plan, or if no such plan exists, at the discretion of the
Board. 

  

	 	(p)	“Effective Date” means May 5, 2016.  

  

	 	(q)	“Effective Date of Termination” means the date on which a Qualifying Termination occurs, as provided in Section 3.1, which triggers the payment of Severance Benefits, or such other date upon which
the Executive’s employment with a Participating Company terminates for reasons other than a Qualifying Termination. 

  

	 	(r)	“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, as such law, rules and regulations may be amended from time to time.

  

	 	(s)	“Excise Tax” means, collectively, (i) the tax imposed by Section 4999 of the Code by reason of being “contingent on a change in ownership or control” of the Company, within the
meaning of Section 280G of the Code, or (ii) any similar tax imposed by state or local law, or (iii) any interest or penalties with respect to any excise tax described in clause (i) or (ii). 

 

	 	(t)	“Executive” means a Tier I, Tier II or Tier III Executive who is initially hired or rehired by a Participating Company on or after January 1, 2007, or who was hired before that date and is not a
party to an effective agreement with a Participating Company providing for severance benefits. Notwithstanding the foregoing, for the period commencing on June 12, 2015 and ending on the second anniversary thereof, no employee who was a party
to a Change in Control Severance Agreement with Lorillard, Inc. immediately prior to June 12, 2015 shall be an “Executive” hereunder or entitled to any benefit under this Plan. 

 

	 	(u)	“General Release” has the meaning set forth in Section 3.4. 

  

	 	(v)	“General Severance Benefits” mean the severance benefits as provided in Section 4.2(b). 

  

	 	(w)	 “General Good Reason” means a reduction by a Participating Company in excess of twenty percent
(20%) of the aggregate value of (i) the Executive’s Base Salary and target annual bonus opportunity (as in effect on the date of such reduction) and (ii) the target annual long-term incentive opportunity provided to the Executive
(as in effect on the date of such reduction), except for across-the-board reductions generally applicable to all Executives. Notwithstanding the foregoing, (A) General Good Reason shall cease to exist for an event on the ninetieth (90th) day following the later of its occurrence or the Executive’s knowledge thereof, unless the Executive has given a Participating Company written notice thereof prior to such date,
(B) a Participating Company shall have thirty (30) days from receipt of such written notice to remedy the facts and circumstances claimed to provide the basis for the Executive’s General Good Reason and (C) the Executive shall be
deemed to have terminated employment for General  

  
 6 

	 	
Good Reason on the thirtieth (30th) day following the Participating Company’s receipt of the written notice described in clause
(A) if the Participating Company fails to remedy such circumstances by such thirtieth (30th) day. Unless the Executive becomes Disabled, the Executive’s right to terminate
employment for a General Good Reason shall not be affected by the Executive’s incapacity due to physical or mental illness. The Executive’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any
circumstance constituting a General Good Reason herein. 

  

	 	(x)	“Governance Agreement” has the meaning set forth in Section 2(i). 

  

	 	(y)	“Gross-Up Payment” has the meaning set forth in Section 5.1. 

  

	 	(z)	“Incumbent Board” has the meaning set forth in Section 2(i). 

  

	 	(aa)	“Non-Competition Agreement” has the meaning set forth in Section 3.4. 

  

	 	(bb)	“Notice of Termination” means a written notice provided by a Participating Company or the Executive indicating that the Executive’s employment is being terminated. In the event the Executive
provides such notice, the Notice of Termination shall indicate the specific termination provision in this Plan relied upon and, if the Executive’s employment is being terminated by the Executive pursuant to Section 3.1(a) or 3.1(c), the
Notice of Termination shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for the Executive’s termination of the Executive’s employment under the provision so indicated. 

 

	 	(cc)	“Other Severance Arrangement” has the meaning set forth in Section 9.2. 

  

	 	(dd)	“Participating Company” or “Participating Companies” means the Company and/or any other entity that adopts this Plan in accordance with the provisions of Section 9.3.
“Participating Company” includes any successor(s) to a Participating Company, whether by merger, consolidation or otherwise. All Participating Companies are listed on Appendix A. 

 

	 	(ee)	“Payment” has the meaning set forth in Section 5.1. 

  

	 	(ff)	“Payment Date” means the last day of the month after the sixtieth (60th) calendar day following the date of the Executive’s Qualifying
Termination. 

  

	 	(gg)	“Person” shall have the meaning ascribed to such term in Section 14(d) of the Exchange Act. 

  

	 	(hh)	“Plan” means this Reynolds American Inc. Executive Severance Plan. 

  

	 	(ii)	“Qualifying Termination” means any of the events described in Section 3.1, the occurrence of which triggers the payment of Severance Benefits. 

 

	 	(jj)	“RJR” means R.J. Reynolds Tobacco Holdings, Inc. 

  

	 	(kk)	“Separation from Service” has the meaning set forth in Section 3.1. 

  
 7 

	 	(ll)	“Severance Benefits” means the payout of Change in Control Severance Benefits or General Severance Benefits as provided in Article 4. 

 

	 	(mm)	“Subsidiary” means any corporation or other entity in which the Company has a significant equity or other interest as determined by the Committee. 

 

	 	(nn)	“Subsidized COBRA Period” has the meaning set forth in Section 4.1(b)(vi). 

  

	 	(oo)	“Tier I Executive” means the Chief Executive Officer of the Company. 

  

	 	(pp)	“Tier II Executive” means an individual employed by a Participating Company at job level eleven (11) through fourteen (14), inclusive (within the meaning of the Company’s payroll
structure). 

  

	 	(qq)	“Tier III Executive” means an individual employed by a Participating Company at job level ten (10) (within the meaning of the Company’s payroll structure). 

Article 3. Severance Eligibility/Conditions.  

3.1 Qualifying Termination. The Participating Company shall pay Severance Benefits to the Executive, as such benefits are described
under Article 4, upon the occurrence of any one or more of the following events (a “Qualifying Termination”): 
  

	 	(a)	Within twenty-four (24) calendar months following a Change in Control, the Executive incurs a Separation from Service other than: 

 

	 	(i)	By a Participating Company for Cause; or 

  

	 	(ii)	By reason of death or Disability; or 

  

	 	(iii)	By the Executive without Change in Control Good Reason. 

  

	 	(b)	Within twelve (12) calendar months prior to a Change in Control, the Executive incurs a Separation from Service by a Participating Company without Cause if such Separation from Service occurs at the request of any
party involved in the Change in Control transaction; in such event, the date of the Qualifying Termination shall be deemed to be the date of the Change in Control. 

 

	 	(c)	At any time other than as described in Section 3.1(a) or 3.1(b), the Executive incurs a Separation from Service other than: 

  

	 	(i)	By a Participating Company for Cause; or 

  

	 	(ii)	By reason of death or Disability; or 

  

	 	(iii)	By the Executive without General Good Reason. 

 A “Separation from Service” shall be
deemed to have occurred on the date on which the level of bona fide services reasonably anticipated to be performed by the Executive is forty-five percent (45%) or less of the average level of bona fide services performed by such Executive
during the immediately preceding thirty-six (36) month period (or the full period of services if the Executive has been providing services for less than thirty-six (36) months). 

  
 8 

 3.2 Specified Employees. Notwithstanding anything in this Plan to the contrary, in the
event that the Executive is deemed to be a “specified employee” on the date of the Qualifying Termination, determined pursuant to identification methodology adopted by the Company in compliance with Code Section 409A, and if any
portion of the payments or benefits to be received by the Executive upon separation from service would constitute a “deferral of compensation” subject to Code Section 409A, then to the extent necessary to comply with Code
Section 409A, amounts that would otherwise be payable pursuant to this Plan during the six (6) month period immediately following the date of the Executive’s Qualifying Termination and benefits that would otherwise be provided
pursuant to this Plan during the six (6) month period immediately following the date of the Executive’s Qualifying Termination will instead be paid or made available on the earlier of (i) within ten (10) days following the first
business day of the seventh month after the date of the Executive’s Qualifying Termination, provided that the Executive shall not have the right to designate the payment date or (ii) the Executive’s death. 

3.3 No Severance Benefits. The Executive shall not be entitled to receive Severance Benefits if the Executive’s employment with a
Participating Company ends for reasons other than a Qualifying Termination. 
 3.4 General Release and Non-Competition
Agreement. As a condition to receiving Severance Benefits under Article 4, the Executive shall be obligated to execute (i) a general release of claims in favor of the Company, its current and former subsidiaries, affiliates and
shareholders, and the current and former directors, officers, employees, and agents thereof in the form prescribed by the Company (a “General Release”), and any period for revocation will have expired and (ii) a Non-Competition,
Non-Disclosure of Confidential Information and Commitment to Provide Assistance Agreement in the form prescribed by the Company (a “Non-Competition Agreement”) and, at the Company’s option, with respect to an Executive who has
previously executed a Non-Competition Agreement, a written affirmation of the Executive’s obligations thereunder. The requirement that the Executive execute a General Release must be satisfied no later than 21 days after the Company provides a
copy of the General Release to the Executive, provided that the Company may, in its sole discretion, provide additional time for satisfaction of this requirement (but in all events, all requirements of this Section 3.4 must be satisfied no
later than the 60th day following the date of the Executive’s Qualifying Termination).  
 3.5 No Duplication of Severance
Benefits.  
  

	 	(a)	If the Executive becomes entitled to Change in Control Severance Benefits, the Severance Benefits provided for under Section 4.1 shall be in lieu of the benefits provided to the Executive under Section 4.2.
Similarly, if the Executive becomes entitled to General Severance Benefits, the Severance Benefits provided under Section 4.2 shall be in lieu of the benefits provided to the Executive under Section 4.1. 

 

	 	(b)	Notwithstanding anything in this Section 3.5 to the contrary, if the Executive incurs a Qualifying Termination described in Section 3.1(b), the Executive will be entitled to the Change in Control Severance
Benefits provided for under Section 4.1, in lieu of the General Severance Benefits provided under Section 4.2. 

  
 9 

 3.6 Notice of Termination. Any termination of the Executive’s employment by a
Participating Company or by the Executive shall be communicated by Notice of Termination to the other party. In the event an Executive provides written notice to the Participating Company of an alleged Change in Control Good Reason or General Good
Reason and subsequently is deemed to have terminated his/her employment pursuant to Section 2(j) or 2(w), as applicable, then such notice shall constitute a Notice of Termination. 

3.7 Disability. Notwithstanding any provision of the Plan to the contrary, if an Executive becomes Disabled after the date of the
Executive’s Qualifying Termination, such Executive shall not be entitled to benefits under any short-term or long-term disability plan of a Participating Company. 

Article 4. Severance Benefits 
  

	 	4.1	Change in Control Severance Benefits. 

  

	 	(a)	Subject to Section 3.4, the Participating Company shall pay the Executive Change in Control Severance Benefits, as described in Section 4.1(b), if the Executive receives or delivers a Notice of Termination of
a Qualifying Termination of the Executive’s employment pursuant to Section 3.1(a) or 3.1(b). 

  

	 	(b)	The Change in Control Severance Benefits to be provided to the Executive pursuant to Section 4.1(a) shall be the following: 

  

	 	(i)	An amount equal to the Executive’s unpaid Base Salary, unreimbursed business expenses, and all other items earned by and owed to the Executive through and including the date of the Qualifying Termination shall be
paid in cash to the Executive in a single lump sum on the Payment Date. Such payment shall constitute full satisfaction for these amounts owed to the Executive. 

  

	 	(ii)	An amount equal to the unpaid, accrued vacation pay owed to the Executive through and including the date of the Qualifying Termination shall be made in cash to the Executive in a single lump sum on the Payment Date.
Such payment shall constitute full satisfaction for these amounts owed to the Executive and in no event shall the Executive accrue additional vacation time after the date of the Executive’s Qualifying Termination. 

 

	 	(iii)	Any amount payable to the Executive under the annual bonus plan then in effect in respect of the most recently completed fiscal year, to the extent not theretofore paid, shall be paid in cash to the Executive in a
single lump sum at the applicable time provided in the annual bonus plan then in effect. Such payment shall constitute full satisfaction for this amount owed to the Executive. 

 

	 	(iv)	An amount equal to: (A) three (3) for Tier I Executives, (B) two (2) for Tier II Executives or (C) one and one-half (1 1⁄2) for Tier III Executives times the sum of: (1) the Executive’s annual rate of Base Salary in effect upon the date of the Qualifying Termination or, if greater, by the Executive’s annual rate
of Base Salary in effect immediately prior to the occurrence of the Change in Control plus (2) the Executive’s then current target bonus opportunity established under the annual bonus plan in effect for the bonus plan year in which the
date of the Executive’s Qualifying Termination occurs or, if greater, the Executive’s target bonus opportunity in effect prior to the occurrence of the Change in Control. The Participating Company shall pay such amount in cash to the
Executive in a single lump sum on the Payment Date. 

  
 10 

	 	(v)	An amount equal to the annual bonus the Executive would have earned under the annual bonus plan for the plan year in which the Qualifying Termination occurs, determined based on the actual performance achieved under
such annual bonus plan for such plan year and adjusted on a pro rata basis based on the number of months the Executive was actually employed during such plan year (full credit is given for partial months of employment), shall be paid in cash to the
Executive in a single lump sum at the applicable time provided in the annual bonus plan then in effect. Such payment shall constitute full satisfaction for this amount owed to the Executive. 

 

	 	(vi)	The Company shall provide, at the same cost structure as applicable to active employees, COBRA continuation coverage for the Executive (and the Executive’s eligible dependents) under the Company’s medical
benefit plan for a period of up to six (6) months from the date of the Qualifying Termination (the “Subsidized COBRA Period”). The Subsidized COBRA Period will be included in the Executive’s COBRA continuation coverage period. If
the Executive chooses to continue COBRA continuation coverage after the Subsidized COBRA Period, the Executive will be responsible for the entire premium payment for the remainder of the Executive’s COBRA continuation coverage period (in most
cases an additional twelve (12) months). 

  

	 	(vii)	If the Executive actively participates in any of the Company’s voluntary, employee pay-all plans or programs on the date of the Executive’s Qualifying Termination, the Executive may continue to participate in
such plan or program after the date of the Qualifying Termination if such continued participation is permitted by the third-party provider pursuant to the terms and conditions set forth therein. 

 

	 	(c)	Notwithstanding the foregoing, if the Qualifying Termination giving rise to the payment of Change in Control Severance Benefits under this Section 4.1 is due to a Change in Control Good Reason as defined in
Section 2(j)(iii), then the Executive’s Base Salary and target bonus opportunity in effect immediately prior to the occurrence of such Change in Control Good Reason shall be used for purposes of calculating any amounts to be paid based
thereupon under Section 4.1(b). 

  

	 	4.2	General Severance Benefits. 

  

	 	(a)	Subject to Section 3.4, the Participating Company shall pay the Executive General Severance Benefits, as described in Section 4.2(b), if the Executive receives or delivers a Notice of Termination of a
Qualifying Termination of the Executive’s employment pursuant to Section 3.1(c). 

  

	 	(b)	The General Severance Benefits to be provided to the Executive pursuant to Section 4.2(a) shall be the following: 

  
 11 

	 	(i)	An amount equal to the Executive’s unpaid Base Salary, unreimbursed business expenses, and all other items earned by and owed to the Executive through and including the date of the Qualifying Termination shall be
paid in cash to the Executive in a single lump sum on the Payment Date. Such payment shall constitute full satisfaction for these amounts owed to the Executive. 

  

	 	(ii)	An amount equal to the unpaid, accrued vacation pay owed to the Executive through and including the date of the Qualifying Termination shall be paid in cash to the Executive in a single lump sum on the Payment Date.
Such payment shall constitute full satisfaction for these amounts owed to the Executive and in no event shall the Executive accrue additional vacation time after the date of the Executive’s Qualifying Termination. 

 

	 	(iii)	Any amount payable to the Executive under the annual bonus plan then in effect in respect of the most recently completed fiscal year, to the extent not theretofore paid shall be paid in cash to the Executive in a single
lump sum at the applicable time provided in the annual bonus plan then in effect. Such payment shall constitute full satisfaction for this amount owed to the Executive. 

 

	 	(iv)	An amount equal to: (A) two and one-half (2 1⁄2) for Tier I Executives or (B) one and one-half (1 1⁄2) for Tier II and III Executives, times the sum of: (1) the Executive’s annual rate of Base Salary in effect upon the date of the Qualifying
Termination plus (2) the Executive’s then current target bonus opportunity established under the annual bonus plan in effect for the bonus plan year in which the date of the Executive’s Qualifying Termination occurs. The Participating
Company shall pay such amount in cash to the Executive in a single lump sum on the Payment Date. 

  

	 	(v)	An amount equal to the annual bonus the Executive would have earned under the annual bonus plan for the plan year in which the Qualifying Termination occurs, determined based on the actual performance achieved under
such annual bonus plan for such plan year and adjusted on a pro rata basis based on the number of months the Executive was actually employed during such plan year (full credit is given for partial months of employment), shall be paid in cash to the
Executive in a single lump sum at the applicable time provided in the annual bonus plan then in effect. Such payment shall constitute full satisfaction for this amount owed to the Executive. 

 

	 	(vi)	The Company shall provide, at the same cost structure as applicable to active employees, COBRA continuation coverage for the Executive (and the Executive’s eligible dependents) under the Company’s medical
benefit plan during the Subsidized COBRA Period. The Subsidized COBRA Period will be included in the Executive’s COBRA continuation coverage period. If the Executive chooses to continue COBRA continuation coverage after the Subsidized COBRA
Period, the Executive will be responsible for the entire premium payment for the remainder of the Executive’s COBRA continuation coverage period (in most cases an additional twelve (12) months). 

  
 12 

	 	(vii)	If the Executive actively participates in any of the Company’s voluntary, employee pay-all plans or programs on the date of the Executive’s Qualifying Termination, the Executive may continue to participate in
such plan or program after the date of the Qualifying Termination if such continued participation is permitted by the third-party provider pursuant to the terms and conditions set forth therein. 

 

	 	(c)	Notwithstanding the foregoing, if the Qualifying Termination giving rise to the payment of General Severance Benefits under this Section 4.2 is due to a General Good Reason as defined in Section 2(w), then the
Executive’s Base Salary and target bonus opportunity in effect immediately prior to the occurrence of such General Good Reason shall be used for purposes of calculating any amounts to be paid based thereupon under Section 4.2(b).

 Article 5. Excise Taxes.  
  

	 	5.1	Applicable Provisions if Excise Tax Applies.  

  

	 	(a)	Anything in the Plan to the contrary notwithstanding, if it is determined (as hereafter provided) that any payment or distribution by or on behalf of a Participating Company to or for the benefit of a Tier I or Tier II
Executive who was eligible to participate in the Plan as a Tier I or Tier II Executive as of the close of business on January 31, 2009, whether paid or payable or distributed or distributable pursuant to the terms of the Plan or otherwise
pursuant to or by reason of any other agreement, policy, plan, program or arrangement, including without limitation any stock option, stock appreciation right or similar right, or the lapse or termination of any restriction on or the vesting or
exercisability of any of the foregoing (in the aggregate, the “Payment”), would be subject to the Excise Tax, the Participating Company shall pay an additional amount (the “Gross-Up Payment”) such that, after payment by the
Tier I or Tier II Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including any Excise Tax imposed upon the Gross-Up Payment, the Tier I or Tier II Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payment; provided, however, that the Participating Company shall only be required to pay the Gross-Up Payment if the Tier I or Tier II Executive receives total “Parachute
Payments” within the meaning of Section 280G of the Code (without consideration of the Gross-Up Payment) that exceed one hundred and ten percent (110%) of the amount that the Tier I and Tier II Executive would be entitled to receive
without being subject to the Excise Tax. Subject to Section 3.2, such Gross-Up Payment shall be made no later than December 31 of the year following the year in which the Tier I or Tier II Executive incurs the Excise Tax. Subject to
Section 3.2, any expenses, including interest and penalties assessed on the Excise Tax described in this Section 5.1 resulting from the Company’s actions, incurred by a Tier I or Tier II Executive shall be reimbursed promptly after
the Tier I or Tier II Executive submits evidence of the incurrence of such expenses, which reimbursement in no event will be later than December 31 of the year following the year in which the Tier I or Tier II Executive incurs the expense,
provided that in no event will the amount of expenses eligible for reimbursement in one year affect the amount of expenses to be reimbursed, or in-kind benefits to be provided, in any other taxable year. 

  
 13 

	 	(b)	In the event that an Executive is not entitled to receive a Gross-Up Payment under Section 5.1(a), the Executive shall be entitled to receive the Payment to which the Executive is otherwise entitled to, unless
reducing such Payment would result in an increase in the after-tax benefit to the Executive (taking into account any Excise Tax, and any applicable federal, state and local income taxes). If reducing such Payment would result in an increase in the
after-tax benefit to the Executive, then the Payment shall be reduced to the minimum extent necessary so that no portion of any such Payment is subject to the Excise Tax. The fact that an Executive’s right to a Payment may be reduced by reason
of the limitations contained in this Section 5.1(b) shall not of itself limit or otherwise affect any other rights of the Executive other than under the Plan. In the event that a Payment intended to be provided under the Plan is required to be
reduced pursuant to this Section 5.1(b), the payment required by Section 4.1(b)(iv) will be so reduced. 

  

	 	(c)	All determinations required to be made under this Section 5.1, including whether an Excise Tax is payable by an Executive and the amount of such Excise Tax, shall be made by the Accounting Firm. The Participating
Company shall direct the Accounting Firm to submit its determination and detailed supporting calculations to the relevant Participating Company and the Executive within fifteen (15) calendar days after the date of the Executive’s
termination, if applicable, and any other such time or times as may be requested by such Participating Company or the Executive. If the Accounting Firm determines that no Excise Tax is payable by the Executive, it shall, at the same time as it makes
such determination, furnish the Executive with an opinion that the Executive has substantial authority not to report any Excise Tax on the Executive’s federal, state, local income or other tax return. 

 

	 	(d)	The Participating Company and the Executive shall each provide the Accounting Firm access to and copies of any books, records and documents in the possession of the Participating Company or the Executive, as the case
may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with the preparation and issuance of the determination contemplated by Section 5.1(c). Any reasonable determination by the
Accounting Firm of the type contemplated by Section 5.1(c) (and supported by the calculations done by the Accounting Firm) shall be binding upon such Participating Company and the Executive, subject to final determination by the Internal
Revenue Service. 

  

	 	(e)	The federal, state and local income or other tax returns filed by the Executive shall be prepared and filed on a consistent basis with the determination of the Accounting Firm with respect to the Excise Tax, if any,
payable by the Executive. The Executive shall make proper payment of the amount of any Excise Tax, and upon request, provide to the Participating Company true and correct copies (with any amendments) of the Executive’s federal income tax return
as filed with the Internal Revenue Service and corresponding state and local tax returns, if relevant, as filed with the applicable taxing authority, and such other documents reasonably requested by the Participating Company, evidencing such filing
and payment. 

  

	 	(f)	 The Participating Company will pay the fees and expenses of the Accounting Firm for its services in connection
with the determinations and calculations contemplated by Section 5.1(c) and Section 5.1(e). If such fees and expenses are initially paid by the 

  
 14 

 
Executive, the Participating Company shall reimburse the Executive the full amount of such fees and expenses within ten (10) business days after receipt from the Executive of reasonable
evidence of payment; provided, however, that any such reimbursements shall be made no later than December 31 of the year following the year in which the Executive incurs the fees and expenses. In no event will the amount of
expenses eligible for reimbursement in one year affect the amount of expenses to be reimbursed, or in-kind benefits to be provided, in any other taxable year. 

Article 6. Contractual Rights and Legal Remedies 

6.1 Payment Obligations Absolute. Except as otherwise provided in Section 6.4 below, a Participating Company’s obligation to
make the payments and the arrangements provided for herein shall be absolute and unconditional, and shall not be affected by any circumstances, including, without limitation, any offset, counterclaim, recoupment, defense, or other right which the
Participating Company may have against the Executive or anyone else. All amounts payable by a Participating Company hereunder shall be paid without notice or demand. 

The Executive shall not be obligated to seek other employment in mitigation of the amounts payable or arrangements made under any provision of
this Plan, and the obtaining of any such other employment shall in no event effect any reduction of a Participating Company’s obligations to make the payments and arrangements required to be made under this Plan, except to the extent provided
in Section 4.1(b)(vi) or 4.2(b)(vi). 
 6.2 Contractual Rights to Benefits. This Plan establishes and vests in the Executive a
contractual right to the benefits to which he is entitled hereunder. However, nothing herein contained shall require or be deemed to require, or prohibit or be deemed to prohibit, a Participating Company to segregate, earmark, or otherwise set aside
any funds or other assets, in trust or otherwise, to provide for any payments to be made or required hereunder. 
 6.3 Legal Fees
and Expenses. A Participating Company shall pay all reasonable legal fees, costs of litigation, prejudgment interest, and other expenses which are incurred in good faith by an Executive as a result of the Participating Company’s refusal to
provide the Change in Control Severance Benefits to which the Executive becomes entitled under this Plan, or as a result of the Participating Company’s (or any third party’s) contesting the validity, enforceability, or interpretation of
the Plan with respect to the Change in Control Severance Benefits, or as a result of any conflict between the parties pertaining to the Change in Control Severance Benefits under this Plan; provided, however, that if the court
determines that an Executive’s claims were arbitrary and capricious, the Participating Company shall have no obligation hereunder and an Executive who claims to be entitled to Change in Control Severance Benefits pursuant to Section 4.1
shall be obligated to return to the Company any reimbursement made to the Executive by the Company pursuant to this Section 6.3. If such fees and expenses are initially paid by the Executive, subject to Section 3.2, the Participating
Company shall reimburse the Executive the full amount of such fees and expenses after receipt from the Executive of reasonable evidence of payment; provided, however, that any such reimbursements shall be made no later than
December 31 of the year following the year in which the Executive incurs the fees and expenses. In no event will the amount of expenses eligible for reimbursement in one year affect the amount of expenses to be reimbursed, or in-kind benefits
to be provided, in any other taxable year.  

  
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 6.4 Return of Severance Benefits. With respect to Change in Control Severance Benefits or
General Severance Benefits provided pursuant to Sections 4.1 or 4.2, if at any time the Executive breaches any provision of (i) the General Release or (ii) the Non-Competition Agreement (or, with respect to an Executive who has previously
executed a Non-Competition Agreement, the written affirmation of the Executive’s obligations thereunder), each as executed by the Executive in accordance with Section 3.4 of this Agreement, then in addition to all other rights and remedies
available to it in law or equity, the Participating Company may cease to provide any further Severance Benefits under this Agreement, and upon the Participating Company’s written demand, the Executive shall repay to the Participating Company
the Severance Benefits and any other amount previously received under this Agreement. Any amount to be repaid pursuant to this Section 6.4 shall be (A) determined by the Participating Company in its sole and absolute discretion,
(B) held by the Executive in constructive trust for the benefit of the Participating Company and (C) paid by the Executive to the Participating Company within ten (10) days of the Executive’s receipt of written notice from the
Participating Company. The Participating Company shall have the right to offset such amount against any amounts otherwise owed to the Executive by the Participating Company.  

Article 7. Successors 
 7.1 Successors
to the Company. The Company shall require any successor (whether direct or indirect, by purchase, merger, reorganization, consolidation, acquisition of property or stock, liquidation, or otherwise) of all or substantially all of the business or
assets of the Company by agreement, to expressly assume and agree to perform this Plan in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. Regardless of whether such
agreement is executed, this Plan shall be binding upon any successor in accordance with the operation of law and such successor shall be deemed “the Company” for purposes of this Plan. 

7.2 Assignment by the Executive. This Plan shall inure to the benefit of and be enforceable by the Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees. If the Executive dies while any amount would still be payable to him hereunder had he continued to live, all such amounts, unless otherwise provided
herein or otherwise prohibited by law, shall be paid in a single lump sum within ninety (90) days following the date of the Executive’s death to the Executive’s devisee, legatee, or other designee, or if there is no such
designee, to the Executive’s estate, provided that such devisee, legatee, other designee or estate shall not have the right to designate the payment date.  

Article 8. Plan Administration 
 8.1
The Committee. The Committee shall have control of and manage the operation and administration of the Plan. It shall have the authority to make amendments to the Plan, provided, however, that amendments to Appendix A of the Plan may be made by
the RAI Employee Benefits Committee. Except as otherwise provided in Section 2(h), the Committee shall have the sole discretion to make decisions and take actions with respect to questions arising in connection with the Plan, including but not
limited to the determination of questions of eligibility and participation, the amount, manner and timing of benefits, the construction, interpretation and application of the Plan and the application thereof to relevant facts, as determined by the
Committee. Any such decision or action of the Committee shall be final and binding upon all Executives. 

  
 16 

 8.2 Administration Committee. The Committee, in its discretion, may delegate its
administrative duties and responsibilities to one or more Administration Committees each consisting of three or more persons, who shall be appointed by and serve at the pleasure of the Committee and one or more of whom may also be members of such
Committee. Vacancies in the Administration Committee shall be filled by the Committee but the Administration Committee may act, notwithstanding any vacancies, so long as there are at least two members of such Committee. The members of an
Administration Committee shall serve without compensation for their services as such, but shall be reimbursed by the Company for all necessary expenses incurred in the discharge of their duties. 

8.3 Indemnification. The Company agrees to indemnify and to defend to the fullest extent permitted by law any person serving on the
Committee or as a member of an Administration Committee (including any such persons who formerly served on the Committee or as a member of an Administration Committee) and any person to whom the Committee delegates its powers hereunder against all
liabilities, damages, costs and expenses (including attorneys’ fees and amounts paid in settlement of any claims approved by the Company) occasioned by any act or omission to act in connection with the Plan, unless such acts or omissions were
caused by willful misconduct or gross negligence. 
 Article 9. Miscellaneous 

9.1 Employment Status. This Plan is not, and nothing herein shall be deemed to create, an employment contract between the Executive and
a Participating Company. The Executive acknowledges that the rights of a Participating Company remain wholly intact to change or reduce at any time and from time to time his compensation, title, responsibilities, location, and all other aspects of
the employment relationship, or to discharge him (subject to Section 3.1). 
 9.2 Entire Plan. This Plan contains the
entire understanding of the Participating Company and the Executive with respect to the subject matter hereof. Notwithstanding anything to the contrary, if the Executive is entitled to the payments provided for under this Plan in the event of the
Executive’s termination of employment and any other employment, retention, severance, or similar agreement with a Participating Company or any Subsidiary to which the Executive is a party or any severance pay plan or program of a Participating
Company or any Subsidiary in which the Executive is a participant (an “Other Severance Arrangement”), the Executive will be entitled to severance benefits under either this Plan or the Other Severance Arrangement, whichever provides for
greater benefits, but will not be entitled to benefits under both this Plan and the Other Severance Arrangement.  
 9.3 Adoption
Procedure for a Participating Company. 
  

	 	(a)	Any Subsidiary of the Company may become a Participating Company under the Plan provided that by appropriate resolutions the board of directors or other governing body of such Subsidiary, such Subsidiary agrees to
become a Participating Company under the Plan and also agrees to be bound by any other terms and conditions which may be required by the Board, the Committee, or the RAI Employee Benefits Committee, provided that such terms and conditions are not
inconsistent with the purposes of the Plan. 

  
 17 

	 	(b)	A Participating Company may withdraw from participation in the Plan, subject to approval by the Committee or the RAI Employee Benefits Committee, by providing written notice to the Committee or the RAI Employee Benefits
Committee that withdrawal has been approved by the board of directors or other governing body of the Participating Company. The Committee or the RAI Employee Benefits Committee may at any time remove a Participating Company from participation in the
Plan by providing written notice to the Participating Company that it has approved removal. The Committee or the RAI Employee Benefits Committee will act in accordance with this Section 9.3 pursuant to unanimous written consent or by majority
vote at a meeting. 

 9.4 Notices. All notices, requests, demands, and other communications hereunder shall be
sufficient if in writing and shall be deemed to have been duly given if delivered by hand or if sent by registered or certified mail to the Executive at the last address the Executive has filed in writing with the Participating Company or, in the
case of the Participating Company, at its principal offices. 
 9.5 Includable Compensation. Change in Control Severance
Benefits and General Severance Benefits provided hereunder shall not be considered “includable compensation” for purposes of determining the Executive’s benefits under any other plan or program of a Participating Company unless
otherwise provided by such other plan or program. 
 9.6 Tax Withholding. A Participating Company shall withhold from any
amounts payable under this Plan all federal, state, city, or other taxes as legally required to be withheld.  
 9.7 Internal
Revenue Code Section 409A. To the extent applicable, it is intended that this Plan comply with the provisions of Code Section 409A. This Plan shall be administered in a manner consistent with this intent. References to Code
Section 409A shall include any proposed, temporary or final regulation, or any other guidance, promulgated with respect to such section by the U.S. Department of Treasury or the Internal Revenue Service. Each payment and each provision of
Severance Benefits pursuant to Article 4, and each provision of reimbursements pursuant to Section 5.1 or Section 6.3, shall be considered a separate payment and not one of a series of payments for purposes of Code Section 409A. In
addition, the Executive shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on the Executive in connection with this Plan (including any taxes and penalties under Code Section 409A), and
neither the Company nor any of its affiliates shall have any obligation to indemnify or otherwise hold the Executive harmless from any or all of such taxes or penalties. 

9.8 Severability. In the event any provision of this 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. Further, the captions of this Plan are not part of the provisions hereof and shall have no
force and effect. 
 Notwithstanding any other provisions of this Plan to the contrary, a Participating Company shall have no
obligation to make any payment to the Executive hereunder to the extent, but only to the extent, that such payment is prohibited by the terms of any final order of a federal or state court or regulatory agency of competent jurisdiction;
provided, however, that such an order shall not affect, impair, or invalidate any provision of this Plan not expressly subject to such order. 

9.9 Modification. Provisions of this Plan may be modified or waived by the Company without the Executive’s consent, except any
change that reduces the benefits of an Executive who is already receiving benefits shall require the Executive’s consent; provided, however, that during the period beginning on the date of the Change in Control and ending on the
second anniversary of such  

  
 18 

 
Change in Control, no provision of this Plan may be modified or waived unless such modification or waiver is agreed to in writing and signed by the affected Executives then covered by the Plan
and by a member of the Committee, as applicable, or by the respective parties’ legal representatives or successors; provided further that any modification or waiver occurring during the twelve (12) months immediately prior to the Change in
Control shall be deemed null and void unless such modification or waiver is agreed to in writing and signed by the affected Executives then covered by the Plan and by a member of the Committee, as applicable, or by the respective parties’ legal
representatives or successors. Modifications or waivers agreed to in writing may affect only those Executives who have signed such modification or waiver. 

9.10 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein shall include the feminine; the
plural shall include the singular and the singular shall include the plural. 
 9.11 Applicable Law. To the extent not
preempted by the laws of the United States, the laws of North Carolina shall be the controlling law in all matters relating to this Plan, including the General Release and the Non-Competition Agreement, without giving effect to principles of
conflicts of laws. 
 IN WITNESS WHEREOF, the Company has executed this Plan on this 5th day of May, 2016. 

 

			
		 	ATTEST:
		
		 	REYNOLDS AMERICAN INC.
		
	By:	 	 /s/ Lisa J. Caldwell

		 	Lisa J. Caldwell
		 	Executive Vice President – Chief Human Resources Officer

  
 19 

 Appendix A 

List of Participating Companies 

Reynolds American Inc. (plan sponsor) 

R. J. Reynolds Tobacco Company 
 R.
J. Reynolds Tobacco (CI), Co. 
 R. J. Reynolds Vapor Company 

RAI International, Inc. 
 Santa Fe
Natural Tobacco Company, Inc.* 
 American Snuff Company, LLC* 

Reynolds Innovations Inc. 
 RAI
Services Company 
 Niconovum, USA 

Kentucky BioProcessing, Inc. 
 RAI
Innovations Company 
 With respect to a Participating Company that has an Executive Department(*), only individuals 

employed within that Executive Department will be considered to be employed by the 

Participating Company for purposes of this Plan.EX-10.1

 Exhibit 10.1 

ZIMMER BIOMET HOLDINGS, INC. 

2009 STOCK INCENTIVE PLAN 

(As Amended on May 3, 2016) 

1. General: 
 (a)
Establishment of Plan; Merger of Prior Plans. The Zimmer Holdings, Inc. 2009 Stock Incentive Plan (now known as the Zimmer Biomet Holdings, Inc. 2009 Stock Incentive Plan) (the “Plan”) became effective on May 4, 2009 (the
“Effective Date”) as a successor to the Zimmer Holdings, Inc. 2006 Stock Incentive Plan and the Zimmer Holdings, Inc. TeamShare Stock Option Plan (collectively, the “Prior Plans”). The Prior Plans were merged with and into
the Plan effective as of the Effective Date, and no additional grants have been made thereafter under the Prior Plans. Outstanding grants under the Prior Plans shall continue in effect according to their terms as in effect before the Plan
merger (subject to such amendments as the Committee (defined below) determines, consistent with the Prior Plans, as applicable), and the shares with respect to outstanding grants under the Prior Plans shall be issued or transferred under this Plan.

 (b) Effective Date of Amendments. The Plan, as amended, will become effective on May 3, 2016 (the “2016 Amendment Effective
Date”), upon the affirmative vote of the holders of a majority of the votes cast at the 2016 annual meeting of stockholders. Previously, the Plan was amended effective as of June 24, 2015 to change the name of the Plan to the Zimmer Biomet
Holdings, Inc. 2009 Stock Incentive Plan. Prior to that, the Plan was amended on May 7, 2013 (the “2013 Amendment Effective Date”). 

(c) Purpose. The purpose of the Plan is to promote the success and enhance the value of the Company by linking the personal interests
of employees of the Company to those of the Company’s stockholders and by providing employees with long-term incentives for outstanding performance. The Plan is further intended to provide flexibility to the Company in its ability to
motivate, attract and retain the services of employees who will be largely responsible for the long-term performance, growth and financial success of the Company. 

2. Definitions: For purposes of this Plan: 

(a) “Affiliate” means any entity in which the Issuer has, directly or indirectly, an ownership interest of at least 20%. 

(b) “Associated Option” shall have the meaning set forth in Section 7. 

(c) “Award” means an award of options, stock appreciation rights, performance shares, performance units, restricted stock or
restricted stock units granted under this Plan. 
 (d) “Board” or “Board of Directors” means the Board of Directors of
the Issuer. 
 (e) “Change in Control” shall have the meaning set forth in Section 14(d). 

(f) “Committee” shall have the meaning set forth in Section 4. 

(g) “Current Portion” shall have the meaning set forth in Section 8(a). 

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

(i) “Common Stock” means the Issuer’s common stock. 

(j) “Company” means the Issuer (Zimmer Biomet Holdings, Inc.) and its Subsidiaries and Affiliates. 

(k) “Deferred Portion” shall have the meaning set forth in Section 8(a). 

(l) “Disability” means total disability as defined by the Company’s group long-term disability insurance policy applicable to
participants. 
 (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

(n) “Fair Market Value” means the average of the high and low sale prices of a share of Common Stock on the New York Stock Exchange
composite tape on the date of measurement or on any date as determined by the Committee and, if there were no trades on such date, on the day on which a trade occurred next preceding such date. 

(o) “Issuer” means Zimmer Biomet Holdings, Inc. 

 (p) “Plan” means this Zimmer Biomet Holdings, Inc. 2009 Stock Incentive Plan. 

(q) “Prior Plans” means, collectively, the Zimmer Holdings, Inc. 2006 Stock Incentive Plan and the Zimmer Holdings, Inc. TeamShare
Stock Option Plan. 
 (r) “Qualifying Performance Criteria” shall have the meaning set forth in Section 6(a). 

(s) “Qualifying Termination” shall have the meaning set forth in Section 14(e). 

(t) “Regulations” shall have the meaning set forth in Section 4(c). 

(u) “Restriction Period” shall have the meaning set forth in Section 9(b)(2). 

(v) “Retirement” shall mean termination of the employment of an employee with the Company on or after (i) the employee’s
65th birthday or (ii) the employee’s 55th birthday if the employee has completed 10 years of service with the Company. For purposes of this Section 2(v) and all other purposes of this Plan, Retirement shall also mean termination
of employment of an employee with the Company for any reason (other than the employee’s death, resignation, willful misconduct or activity deemed detrimental to the interests of the Company) where, on termination, the employee’s attained
age (expressed as a whole number) plus completed years of service (expressed as a whole number) plus one (1) equals at least 70 and the employee has completed 10 years of service with the Company and, where applicable, the employee has executed a
general release, a covenant not to compete and/or a covenant not to solicit. For purposes of this Plan, an employee’s service with the Company’s former parent, Bristol-Myers Squibb Company, and
its subsidiaries and affiliates before August 6, 2001, shall be included as service with the Company, provided that the employee was employed by Bristol-Myers Squibb Company on August 5, 2001 and has been continuously employed by the Company
since August 6, 2001. 
 (w) “Subcommittee” shall have the meaning set forth in Section 4(b). 

(x) “Subsidiary” shall mean any corporation which at the time qualifies as a subsidiary of the Issuer under the definition of
“subsidiary corporation” in Section 424 of the Code. 
 (y) “Tax Date” shall have the meaning set forth in Section
13(a). 
 (z) “Withholding Tax” shall have the meaning set forth in Section 13(c). 

3. Shares of Common Stock Subject to the Plan: 

(a) Shares Authorized; Share Counting; Fungible Share Pool. Subject to the other provisions of this Section 3, effective as
of the 2016 Amendment Effective Date, the total number of shares available for grant as Awards pursuant to this Plan shall be equal to the sum of the following: (i) 18,700,000 shares, plus (ii) the aggregate number of shares remaining
available for issuance under the Prior Plans as of the Effective Date, and (iii) the aggregate number of shares underlying outstanding awards under the Prior Plans as of the Effective Date that terminate or expire or are cancelled or forfeited
during the term of this Plan without having been exercised or fully vested. Substitute or assumed Awards made under Section 19 shall not be considered in applying this limitation. Solely for the purpose of applying the foregoing
limitation and subject to the replenishment provisions of Section 3(b) below: 
 (1) each option or stock appreciation right
granted under this Plan shall reduce the number of shares available for grant by one share for every one share granted; 

(2) effective as of the 2013 Amendment Effective Date, each Award granted under this Plan that may result in the issuance of
Common Stock, other than an option or stock appreciation right, shall reduce the number of shares available for grant by two and thirty-seven hundredths (2.37) shares for every one share granted; and 

(3) if Awards are granted in tandem, so that only one of the Awards may actually be exercised, only the Award that results in
the greater reduction in the number of shares available for grant shall result in a reduction of the shares so available, and the other Award shall be disregarded. 

(b) Shares Again Available. 

(1) In the event all or any portion of an Award terminates or expires or is cancelled or forfeited during the term of this Plan
without being exercised or fully vested or is settled for cash (collectively, “cancelled awards”), then (A) with respect to options and stock appreciation rights, the shares underlying such cancelled award shall be restored to the Plan on
a one-for-one basis and may again be 

  
 2 

 
used for Awards under the Plan; and (B) with respect to each Award granted under this Plan that may result in the issuance of Common Stock, other than an option or stock appreciation right,
effective as of the 2013 Amendment Effective Date, shares underlying such cancelled awards (whether such Awards were granted before or after the 2013 Amendment Effective Date) shall be restored to the Plan at a rate of two and thirty-seven
hundredths (2.37) shares for each cancelled share and may again be used for Awards under the Plan. 
 (2) Notwithstanding
anything to the contrary contained herein: 
 (A) shares that participants tender during the term of this Plan to pay the
purchase price of options in accordance with Section 7(b)(5) shall not be added to the aggregate Plan limit described above; 

(B) shares that the Company retains or causes participants to surrender to satisfy Withholding Tax requirements in accordance
with Section 13 shall not be added to the aggregate Plan limit described above; 
 (C) shares that are repurchased by
the Company using option exercise proceeds shall not be added to the aggregate Plan limit described above; 
 (D) if a stock
appreciation right included in an option in accordance with Section 7(b)(12) is exercised, the number of shares covered by the option or portion thereof which is surrendered on exercise of the stock appreciation right shall be considered issued
pursuant to the Plan and shall count against the aggregate Plan limit described above, regardless of whether or not any shares are actually issued to the participant upon exercise of the stock appreciation right; and 

(E) shares covered by any stock appreciation right granted in accordance with Section 18, to the extent that it is exercised
and settled in Common Stock, and whether or not shares are actually issued to the participant upon exercise of the right, shall be considered issued pursuant to the Plan and shall count against the aggregate Plan limit described above. 

(c) Individual Limitation. No individual participant may be granted, in any single calendar year during the term of this Plan,
stock options and/or stock appreciation rights to purchase more than 500,000 shares of Common Stock. No individual participant may be granted, in any single calendar year during the term of this Plan, restricted stock, restricted stock units,
performance units and/or performance shares representing more than 250,000 shares of Common Stock. Substitute or assumed Awards made under Section 19 shall not be included in applying these limitations. 

(d) Maximum Number of Incentive Stock Options. The number of shares of Common Stock with respect to which incentive stock options
may be granted shall not exceed 1,000,000 shares during the term of this Plan. 
 (e) Adjustment. The limitations under
Sections 3(a), (c) and (d) are subject to adjustment in number and kind pursuant to Section 12. 
 (f) Treasury or Market Purchased
Shares. Common Stock issued hereunder may be authorized and unissued shares or issued shares acquired by the Company on the market or otherwise. 

(g) Effect of Plans Operated by Acquired Companies. If a company acquired by the Company or with which the Company combines has
shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent
appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or
combination) may be used for Awards under the Plan and shall not reduce the shares of Common Stock authorized for grant under the Plan. Awards using such available shares shall not be made after the date awards or grants could have been made
under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not employees of the Company prior to such acquisition or combination. 

4. Administration: The Plan shall be administered under the supervision of the Board of Directors, which
may exercise its powers, to the extent herein provided, through the agency of its Compensation and Management Development Committee (the “Committee”), which shall be appointed by the Board of Directors. 

(a) Composition of Committee. The Committee shall consist of not less than two (2) members of the Board who are intended to meet
the definition of “outside director” under the provisions of Section 162(m) of the Code and the definition of “non-employee directors” under the provisions of the Exchange Act or rules or regulations promulgated thereunder. 

(b) Delegation and Administration. The Committee may delegate to one or more separate committees (any such committee a
“Subcommittee”) composed of one or more directors of the Issuer (who may, but need not be, members of the Committee) the ability to grant 

  
 3 

 
Awards with respect to participants who are not executive officers of the Company under the provisions of the Exchange Act or rules or regulations promulgated thereunder, and such actions shall
be treated for all purposes as if taken by the Committee. Any action by any such Subcommittee within the scope of such delegation shall be deemed for all purposes to have been taken by the Committee and references in this Plan to the Committee
shall include any such Subcommittee. The Committee may delegate the administration of the Plan to an officer or officers of the Issuer, and such administrator(s) may have the authority to execute and distribute agreements or other documents
evidencing or relating to Awards granted by the Committee under this Plan, to maintain records relating to the grant, vesting, exercise, forfeiture or expiration of Awards, to process or oversee the issuance of shares of Common Stock upon the
exercise, vesting and/or settlement of an Award, to interpret the terms of Awards and to take such other actions as the Committee may specify, provided that in no case shall any such administrator be authorized to grant Awards under the
Plan. Any action by any such administrator within the scope of its delegation shall be deemed for all purposes to have been taken by the Committee and references in this Plan to the Committee shall include any such administrator, provided that
the actions and interpretations of any such administrator shall be subject to review and approval, disapproval or modification by the Committee. 

(c) Regulations. The Committee, from time to time, may adopt rules and regulations (“Regulations”) for carrying out the
provisions and purposes of the Plan and make such other determinations, not inconsistent with the terms of the Plan, as the Committee shall deem appropriate. The interpretation and construction of any provision of the Plan by the Committee
shall, unless otherwise determined by the Board of Directors, be final and conclusive. 
 (d) Records and Actions. The Committee
shall maintain a written record of its proceedings. A majority of the Committee shall constitute a quorum, and the acts of a majority of the members present at any meeting at which a quorum is present, or acts unanimously approved in writing,
shall be the acts of the Committee. 
 5. Eligibility: Awards may be granted only to employees of the
Company, including Subsidiaries and Affiliates which become such after the Effective Date. Any director who is not an employee of the Company shall be ineligible to receive an Award under the Plan. The adoption of this Plan shall not be
deemed to give any employee any right to an Award, except to the extent and upon such terms and conditions as may be determined by the Committee. 

6. Qualifying Performance Criteria: Awards under Section 8 of this Plan shall be, and any other type of
Award (other than incentive stock options) in the discretion of the Committee may be, contingent upon achievement of Qualifying Performance Criteria. 

(a) Available Criteria. For purposes of this Plan, the term “Qualifying Performance Criteria” shall mean any one or more
of the following performance criteria, either individually, alternatively or in any combination, applied to either the Company as a whole or to a business unit, Affiliate or Subsidiary, either individually, alternatively or in any combination, and
measured either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison group, in each case
as specified by the Committee in the Award: 
  

	 	(1)	net sales, 

  

	 	(2)	revenue, 

  

	 	(3)	gross profit, 

  

	 	(4)	operating profit, 

  

	 	(5)	net earnings, 

  

	 	(6)	earnings per share, 

  

	 	(7)	profit margin (gross, operating or net), 

  

	 	(8)	cash flow, net cash flow or free cash flow, 

  

	 	(9)	acquisition integration synergies (measurable savings and efficiencies resulting from integration), 

  

	 	(10)	acquisition integration milestone achievements, 

  

	 	(11)	stock price performance, 

  

	 	(12)	total shareholder return, 

  
 4 

	 	(13)	internal total shareholder return (derived from operating profit growth and free cash flow yield) 

  

	 	(14)	expense reduction, 

  

	 	(15)	debt or net debt reduction, and 

  

	 	(16)	financial return ratios (including return on equity, return on assets or net assets, return on capital or invested capital and return on operating profit). 

(b) Adjustments. The Committee may adjust any evaluation of performance under a Qualifying Performance Criteria to exclude the
effects of any of the following items or events that occurs or otherwise impacts reported results during a performance period: (1) asset write-downs, (2) litigation or claim judgments or
settlements, (3) changes in tax law, accounting principles or other such laws or provisions affecting reported results, (4) accruals and expenses associated with reorganization, restructuring and/or transformation programs,
(5) acquisition and integration expenses and purchase accounting, (6) share-based payments, and (7) any extraordinary non-recurring 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 Issuer’s annual report to stockholders for the applicable year. Notwithstanding satisfaction or completion of
any Qualifying Performance Criteria, to the extent specified at the time of grant of an Award, the number of shares, stock options, stock appreciation rights, performance shares, performance units, restricted stock, or restricted stock units or
other benefits granted, issued, retainable and/or vested under an Award on account of satisfaction of such Qualifying Performance Criteria may be reduced by the Committee on the basis of such further considerations as the Committee in its sole
discretion shall determine. 
 (c) Establishment and Achievement of Targets. The Committee shall establish the specific targets
for the selected Qualified Performance Criteria. For Awards that are intended to qualify for exemption from the limitation on deductibility imposed by Section 162(m) of the Code or any successor provision, the targets shall be established
within the required time period. These targets may be set at a specific level or may be expressed as relative to the comparable measure at comparison companies or a defined index. In cases where Qualifying Performance Criteria are
established, the Committee shall determine the extent to which the criteria have been achieved and the corresponding level to which vesting requirements have been satisfied or other restrictions are to be removed from the Award or the extent to
which a participant’s right to receive an Award should lapse in cases where the Qualifying Performance Criteria have not been met, and shall certify these determinations in writing. The Committee may provide for the determination of the
attainment of such targets in installments where it deems appropriate. 
 7. Stock Options: Stock
options under the Plan shall consist of incentive stock options under Section 422 of the Code or nonqualified stock options (options not intended to qualify as incentive stock options), as the Committee shall determine. In addition, the
Committee may grant stock appreciation rights in conjunction with an option, as set forth in Section 7(b)(12), or may grant an option in conjunction with an award of performance units or performance shares, as set forth in Section 7(b)(11) (an
“Associated Option”). 
 Each option shall be subject to the following terms and conditions: 

(a) Grant of Options. The Committee shall (1) select the employees of the Company to whom options may from time to time be
granted, (2) determine whether incentive stock options or nonqualified stock options are to be granted, (3) determine the number of shares to be covered by each option so granted, (4) determine the terms and conditions (not inconsistent with the
Plan) of any option granted hereunder (including but not limited to restrictions upon the options, conditions of their exercise (including as to nonqualified stock options, subject to any Qualifying Performance Criteria), or restrictions on the
shares of Common Stock issuable upon exercise thereof), (5) determine whether nonqualified stock options or incentive stock options granted under the Plan shall include stock appreciation rights and, if so, the Committee shall determine the terms
and conditions thereof in accordance with Section 7(b)(12) hereof, (6) determine whether any nonqualified stock options granted under the Plan shall be Associated Options, and (7) prescribe the form of the instruments necessary or advisable in the
administration of options. 
 (b) Terms and Conditions of Option. Any option granted under the Plan shall be evidenced by a
Stock Option Agreement entered into by the Company and the optionee, in such form as the Committee shall approve, which agreement shall be subject to the following terms and conditions and shall contain such additional terms and conditions not
inconsistent with the Plan, and in the case of an incentive stock option not inconsistent with the provisions of the Code applicable to incentive stock options, as the Committee shall prescribe: 

(1) Number of Shares Subject to an Option. The Stock Option Agreement shall specify the number of shares of Common
Stock subject to the Agreement. If the option is an Associated Option, the number of shares of Common Stock subject to such Associated Option shall initially be equal to the number of performance units or performance shares subject to the
Award, but one share of Common Stock shall be canceled for each performance unit or performance share paid out under the Award. 

(2) Option Price. The purchase price per share of Common Stock purchasable under an option will be determined by
the Committee but will be not less than the Fair Market Value of a share of Common Stock on the date of the grant of the option, except as provided in Section 19 relating to assumed or substitute Awards. 

  
 5 

 (3) Option Period. The period of each option shall be fixed by the
Committee, but no option shall be exercisable after the expiration of ten years from the date the option is granted. 
 (4)
Consideration. Unless the Committee determines otherwise, each optionee, as consideration for the grant of an option, shall remain in the continuous employ of the Company for at least one year from the date of the granting of such
option, and no option shall be exercisable until after the completion of such one year period of employment by the optionee. 

(5) Exercise of Option. The Committee shall determine the time or times at which an option may be exercised in
whole or in part during the option period. An option will be deemed exercised when the Company receives written or electronic notice of exercise (in accordance with the Stock Option Agreement) from the person entitled to exercise the option and
payment in full of the purchase price and Withholding Taxes (as defined in Section 13 hereof). Payment in full may be made (i) by certified or bank check, (ii) by wire transfer, (iii) by payment through a broker under a cashless exercise
program implemented by the Company in connection with the Plan, (iv) in shares of Common Stock owned by the optionee having a Fair Market Value at the date of exercise equal to such purchase price, provided that payment in shares of Common Stock
will not be permitted unless at least 100 shares of Common Stock are required and delivered for such purpose, (v) in any combination of the foregoing, or (vi) by any other method that the Committee approves. At its discretion, the Committee may
modify or suspend any method for the exercise of stock options, including any of the methods specified in the previous sentence. Delivery of shares for exercising an option shall be made either through the physical delivery of shares or through
an appropriate certification or attestation of valid ownership. Shares of Common Stock used to exercise an option shall have been held by the optionee for the requisite period of time to avoid adverse accounting consequences to the Company with
respect to the option. No shares shall be issued until full payment therefor has been made. An optionee shall have the rights of a stockholder only with respect to shares of stock that have been recorded on the Company’s books on
behalf of the optionee or for which certificates have been issued to the optionee. 
 Notwithstanding anything in the Plan to
the contrary, the Committee may, in its sole discretion, allow the exercise of a lapsed grant if the Committee determines that: (i) the lapse was solely the result of the Company’s inability to execute the exercise of an option Award due
to conditions beyond the Company’s control and (ii) the optionee made valid and reasonable efforts to exercise the Award. In the event the Committee makes such a determination, the Company shall allow the exercise to occur as promptly as
possible following its receipt of exercise instructions subsequent to such determination. 
 (6) Nontransferability of
Options. An option or stock appreciation right granted under the Plan may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent and distribution, and may be
exercised, during the optionee’s lifetime, only by the optionee; provided that the Board may permit further transferability, on a general or specific basis, and may impose conditions and limitations on any permitted transferability. 

Notwithstanding the foregoing, the Committee may set forth in a Stock Option Agreement at the time of grant or thereafter, that
the options (other than incentive stock options) may be transferred to members of the optionee’s immediate family, to one or more trusts solely for the benefit of such immediate family members and to partnerships in which such family members or
trusts are the only partners. For this purpose, immediate family means the optionee’s spouse, parents, children, stepchildren, grandchildren and legal dependants. Any transfer of options under this provision will not be effective
until notice of such transfer is delivered to the Company. 
 (7) Termination of Employment Other than by Retirement or
Death. If an optionee shall cease to be employed by the Company for any reason (other than termination of employment by reason of Retirement or death) after the optionee shall have been continuously so employed for one year after the
granting of the option, or as otherwise determined by the Committee, the option shall be exercisable only to the extent that the optionee was otherwise entitled to exercise it at the time of such cessation of employment with the Company, unless
otherwise determined by the Committee. The option shall remain exercisable for three months after such cessation of employment (or, if earlier, the end of the option period), unless the Committee determines otherwise. The Plan does not
confer upon any optionee any right with respect to continuation of employment by the Company. 
 (8) Retirement of
Optionee. If an optionee shall cease to be employed by the Company by reason of Retirement after the optionee shall have been continuously employed by the Company for a period of at least one year after the granting of the option, or as
otherwise determined by the Committee, all remaining unexercised portion(s) of the option shall immediately vest and become exercisable by the optionee and shall remain exercisable for the remainder of the option period set forth therein, except
that, in the case of an incentive stock option, the option shall remain exercisable for three months following Retirement (or, if earlier, the end of the option period). 

(9) Death of Optionee. Except as otherwise provided in Section 7(b)(14), in the event of the optionee’s death
(i) while in the employ of the Company or (ii) after cessation of employment due to Retirement, the option shall be fully exercisable by the executors, administrators, legatees or distributees of the optionee’s estate, as the case may be, at
any time following such death. In the event of the optionee’s death after cessation of employment for any reason other than Retirement, the option shall be exercisable by the executors, administrators, legatees or distributees of the
optionee’s estate, as the case may be, at any time during the twelve month period following 

  
 6 

 
such death. Notwithstanding the foregoing, unless the Committee determines otherwise, in no event shall an option be exercisable unless the optionee shall have been continuously employed by
the Company for a period of at least one year after the option grant, and no option shall be exercisable after the expiration of the option period set forth in the Stock Option Agreement. In the event any option is exercised by the executors,
administrators, legatees or distributees of the estate of a deceased optionee, the Company shall be under no obligation to issue stock thereunder unless and until the Company is satisfied that the person or persons exercising the option are the duly
appointed legal representatives of the deceased optionee’s estate or the proper legatees or distributees thereof. 

(10) No Deferral Feature. No option or stock appreciation right granted under this Plan shall include any feature
for the deferral of compensation other than, in the case of an option, the deferral of recognition of income until the later of exercise or disposition of the option under Section 83 of the Code, or the time the stock acquired pursuant to the
exercise of the option first becomes substantially vested (as defined in regulations interpreting Section 83 of the Code), or, in the case of a stock appreciation right, the deferral of recognition of income until the exercise of the stock
appreciation right. 
 (11) Long-Term Performance Awards. The Committee may from time to time grant nonqualified
stock options under the Plan in conjunction with and related to an award of performance units or performance shares made under a Long-Term Performance Award as set forth in Section 8(b)(11). In such event, notwithstanding any other
provision hereof, (i) the number of shares to which the Associated Option applies shall initially be equal to the number of performance units or performance shares granted by the Award, but such number of shares shall be reduced on a
one-share-for-one unit or share basis to the extent that the Committee determines, pursuant to the terms of the Award, to pay to the optionee or the optionee’s beneficiary the performance units or performance shares granted pursuant to such
Award, and (ii) such Associated Option shall be cancelable in the discretion of the Committee, without the consent of the optionee, under the conditions and to the extent specified in the Award. 

(12) Stock Appreciation Rights. In the case of any option granted under the Plan, either at the time of grant or by
amendment of such option at any time after such grant, there may be included a stock appreciation right which shall be subject to such terms and conditions, not inconsistent with the Plan, as the Committee shall impose, including the following: 

(A) A stock appreciation right shall be exercisable to the extent, and only to the extent, that the option in which it is
included is at the time exercisable, and may be exercised within such period only at such time or times as may be determined by the Committee (and in no event after expiration of ten years from the date the option was granted); 

(B) A stock appreciation right shall entitle the optionee (or any person entitled to act under the provisions of Section
7(b)(9)) to surrender unexercised the option in which the stock appreciation right is included (or any portion of such option) to the Company and to receive from the Company in exchange therefor that number of shares having an aggregate value equal
to (or, in the discretion of the Committee, less than) the excess of the value of one share (provided such value does not exceed such multiple of the option price per share as may be specified by the Committee) over the option price per share
specified in such option (as determined by the Committee in accordance with Section 7(b)(2)) times the number of shares called for by the option, or portion thereof, which is so surrendered. The Committee shall be entitled to cause the Company
to settle its obligation, arising out of the exercise of a stock appreciation right, by the payment of cash equal to the aggregate value of the shares the Company would otherwise be obligated to deliver or partly by the payment of cash and partly by
the delivery of shares. Any such election shall be made within 30 business days after the receipt by the Committee of written or electronic notice of the exercise of the stock appreciation right. The value of a share for this purpose shall
be the Fair Market Value thereof on the last business day preceding the date of the election to exercise the stock appreciation right; 

(C) No fractional shares shall be delivered under this Section 7(b)(12) but in lieu thereof a cash adjustment shall be
made; 
 (D) If a stock appreciation right included in an option is exercised, such option shall be deemed to have been
exercised to the extent of the number of shares called for by the option or portion thereof which is surrendered on exercise of the stock appreciation right and no new option may be granted covering such shares under this Plan; and 

(E) If an option which includes a stock appreciation right is exercised, such stock appreciation right shall be deemed to
have been canceled to the extent of the number of shares called for by the option or portion thereof is exercised and no new stock appreciation rights may be granted covering such shares under this Plan. 

(13) Incentive Stock Options. Incentive stock options may only be granted to employees of the Issuer and its
Subsidiaries and parent corporations, as defined in Section 424 of the Code. In the case of any incentive stock option granted under the Plan, the aggregate Fair Market Value of the shares of Common Stock (determined at the time of grant of
each option) with respect to which incentive stock options granted under the Plan and any other plan of the Issuer or its parent or a Subsidiary which are exercisable for the first time by an employee during any calendar year shall not exceed
$100,000 or such other amount as may be required by the Code. 

  
 7 

 (14) Rights of Transferee. Notwithstanding anything to the contrary
herein, if an option has been transferred in accordance with Section 7(b)(6), the option shall be exercisable solely by the transferee. The option shall remain subject to the provisions of the Plan, including that it will be exercisable only to
the extent that the optionee or optionee’s estate would have been entitled to exercise it if the optionee had not transferred the option. In the event of the death of the optionee prior to the expiration of the right to exercise the
transferred option, the period during which the option shall be exercisable will terminate on the date one year following the date of the optionee’s death. In the event of the death of the transferee prior to the expiration of the right to
exercise the option, the period during which the option shall be exercisable by the executors, administrators, legatees and distributees of the transferee’s estate, as the case may be, will terminate on the date one year following the date of
the transferee’s death. In no event will the option be exercisable after the expiration of the option period set forth in the Stock Option Agreement. The option shall be subject to such other rules as the Committee shall determine.

 (15) No Reload. Options shall not be granted under this Plan in consideration for and shall not be conditioned
upon the delivery of shares of Common Stock in payment of the option price and/or tax withholding obligation under any other employee stock option. 

8. Long-term Performance Awards: Long-term performance awards under the
Plan shall consist of the conditional grant of a specified number of performance units or performance shares. The conditional grant of a performance unit to a participant will entitle the participant to receive a specified dollar value,
variable under conditions specified in the Award, if the Qualifying Performance Criteria specified in the Award are achieved and the other terms and conditions thereof are satisfied. The conditional grant of a performance share to a participant
will entitle the participant to receive a specified number of shares of Common Stock, or the equivalent cash value, as determined by the Committee, if the Qualifying Performance Criteria specified in the Award are achieved and the other terms and
conditions thereof are satisfied. Each Award shall be subject to the following terms and conditions: 
 (a) Grant of
Awards. The Committee shall (1) select the employees of the Company to whom Awards under this Section 8 may from time to time be granted, (2) determine the number of performance units or performance shares covered by each
Award, (3) determine the terms and conditions of each performance unit or performance share awarded and the award period and performance objectives with respect to each Award, (4) determine the extent to which a participant may elect to
defer payment of a percentage of an Award (the “Deferred Portion”) pursuant to the terms of a deferred compensation plan of the Company, (5) determine whether payment with respect to the portion of an Award which has not been deferred
(the “Current Portion”) and the payment with respect to the Deferred Portion of an Award shall be made entirely in cash, entirely in Common Stock or partially in cash and partially in Common Stock, (6) determine whether the Award is
to be made independently of or in conjunction with a nonqualified stock option granted under the Plan, and (7) prescribe the form of the instruments necessary or advisable in the administration of the Awards. 

(b) Terms and Conditions of Award. Any Award conditionally granting performance units or performance shares to a participant shall
be evidenced by a Performance Unit Agreement or Performance Share Agreement, as applicable, executed by the Company and the participant, in such form as the Committee shall approve, which agreement shall contain in substance the following terms and
conditions applicable to the Award and such additional terms and conditions as the Committee shall prescribe: 
 (1)
Number and Value of Performance Units. The Performance Unit Agreement shall specify the number of performance units conditionally granted to the participant. If the Award has been made in conjunction with the grant of an Associated
Option, the number of performance units granted shall initially be equal to the number of shares which the participant is granted the right to purchase pursuant to the Associated Option, but one performance unit shall be canceled for each share of
the Issuer’s Common Stock purchased upon exercise of the Associated Option or for each stock appreciation right included in such option that has been exercised. The Performance Unit Agreement shall specify the threshold, target and maximum
dollar values of each performance unit and corresponding performance objectives as provided under Section 8(b)(5). 
 (2)
Number and Value of Performance Shares. The Performance Share Agreement shall specify the number of performance shares conditionally granted to the participant. If the Award has been made in conjunction with the grant of an
Associated Option, the number of performance shares granted shall initially be equal to the number of shares which the participant is granted the right to purchase pursuant to the Associated Option, but one performance share shall be canceled for
each share of the Issuer’s Common Stock purchased upon exercise of the Associated Option or for each stock appreciation right included in such option that has been exercised. The Performance Share Agreement shall specify that each
Performance Share will have a value equal to one (1) share of Common Stock. 
 (3) Award Periods. For each Award,
the Committee shall designate an award period with a duration to be determined by the Committee in its discretion, but in no event less than three calendar years, within which specified performance objectives are to be attained. There may be
several award periods in existence at any one time and the duration of performance objectives may differ from each other. 

  
 8 

 (4) Consideration. Each participant, as consideration for the award
of performance units or performance shares, shall remain in the continuous employ of the Company for at least one year after the date of the making of such Award, and no Award shall be payable until after the completion of such one year of
employment by the participant, except as otherwise determined by the Committee. 
 (5) Performance
Objectives. The Committee shall select the Qualifying Performance Criteria and specific targets for each award period. 

(6) Determination and Payment of Performance Units or Performance Shares Earned. As soon as practicable after the
end of an award period, the Committee shall determine the extent to which Awards have been earned on the basis of actual performance in relation to the Qualifying Performance Criteria as set forth in the Performance Unit Agreement or Performance
Share Agreement and certify these results in writing. The Performance Unit Agreement or Performance Share Agreement shall specify that as soon as practicable after the end of each award period, the Committee shall determine whether the
conditions of Sections 8(b)(4) and 8(b)(5) hereof have been met and, if so, shall ascertain the amount payable or shares which should be distributed to the participant in respect of the performance units or performance shares. As promptly as
practicable after it has determined that an amount is payable or should be distributed in respect of an Award, and within 90 days after the end of the award period, the Committee shall cause the Current Portion of such Award to be paid or
distributed to the participant or the participant’s beneficiaries, as the case may be, in the Committee’s discretion, either entirely in cash, entirely in Common Stock or partially in cash and partially in Common Stock. Payment of any
Deferred Portion of an Award shall be determined by the terms of the Company deferred compensation plan under which the deferral was elected. 

In making payment in the form of Common Stock hereunder, the cash equivalent of such Common Stock shall be determined by the
Fair Market Value of the Common Stock on the day the Committee designates the performance units shall be payable. 
 (7)
Nontransferability of Awards and Designation of Beneficiaries. No Award under this Section of the Plan shall be transferable by the participant other than by will or by the laws of descent and distribution, except that a participant may
designate a beneficiary pursuant to the provisions hereof. If any participant or the participant’s beneficiary shall attempt to assign the participant’s rights under the Plan in violation of the provisions thereof, the Company’s
obligation to make any further payments to such participant or the participant’s beneficiaries shall forthwith terminate. 

A participant may name one or more beneficiaries to receive any payment of an Award to which the participant may be entitled
under the Plan in the event of the participant’s death, on a form to be provided by the Committee. A participant may change the participant’s beneficiary designation from time to time in the same manner. If no designated
beneficiary is living on the date on which any payment becomes payable to a participant’s beneficiary, or if no beneficiary has been specified by the participant, such payment will be payable to the participant’s estate. 

(8) Retirement and Termination of Employment Other Than by Death. In the event of the Retirement prior to the end
of an award period of a participant who has satisfied the one year employment requirement of Section 8(b)(4) with respect to an Award prior to Retirement, or as otherwise determined by the Committee, the participant, or his estate, shall be
entitled to a payment of such Award at the end of the award period, pursuant to the terms of the Plan and the participant’s Performance Unit Agreement or Performance Share Agreement, provided, however, that the participant shall be deemed to
have earned that proportion (to the nearest whole unit or share) of the value of the performance units or performance shares granted to the participant under such Award as the number of months of the award period which have elapsed since the first
day of the calendar year in which the Award was made to the end of the month in which the participant’s Retirement occurs, bears to the total number of months in the award period, subject to the attainment of performance objectives associated
with the Award as certified by the Committee. The participant’s right to receive any remaining performance units or performance shares shall be canceled and forfeited. 

Subject to Section 8(b)(6) hereof, the Performance Unit Agreement or Performance Share Agreement shall specify that the right
to receive the performance units or performance shares granted to such participant shall be conditional and shall be canceled, forfeited and surrendered if the participant’s continuous employment with the Company shall terminate for any reason,
other than the participant’s death or Retirement, prior to the end of the award period, or as otherwise determined by the Committee.

(9) Reserved. 

(10) Death of Participant. In the event of the death prior to the end of an award period of a participant who has
satisfied the one year employment requirement with respect to an Award under this Section 8 prior to the date of death, or as otherwise determined by the Committee, the participant’s beneficiaries or estate, as the case may be, shall be
entitled to a payment of such Award upon the end of the award period, pursuant to the terms of the Plan and the participant’s Performance Unit Agreement or Performance Share Agreement, provided, however, that the participant shall be deemed to
have earned that proportion (to the nearest whole unit or share) of the value of the performance units or performance shares granted to the participant under such Award as the number of months of the award period which have elapsed since the first
day of the calendar year in which the Award was made to the end of the month in which the participant’s death occurs, bears to the total number of months in the award period. The participant’s right to receive any remaining
performance units or performance shares shall be canceled and forfeited. 

  
 9 

 The Committee may, in its discretion, waive, in whole or in part, such
cancellation and forfeiture of any performance units or performance shares. 
 (11) Grant of Associated
Option. If the Committee determines that the conditional grant of performance units or performance shares under the Plan is to be made to a participant in conjunction with the grant of a nonqualified stock option under the Plan, the
Committee shall grant the participant an Associated Option under the Plan subject to the terms and conditions of this Section 8(b)(11). In such event, such Award shall be contingent upon the participant’s being granted such an
Associated Option pursuant to which: (i) the number of shares the optionee may purchase shall initially be equal to the number of performance units or performance shares conditionally granted by the Award, (ii) such number of shares shall be
reduced on a one-share-for-one-unit or share basis to the extent that the Committee determines, pursuant to Section 8(b)(6) hereof, to pay to the participant or the participant’s beneficiaries the performance units or performance shares
conditionally granted pursuant to the Award, and (iii) the Associated Option shall be cancelable in the discretion of the Committee, without the consent of the participant, under the conditions and to the extent specified herein and in Section
8(b)(6) hereof. 
 If no amount is payable in respect of the conditionally granted performance units or performance shares,
the Award and such performance units or performance shares shall be deemed to have been canceled, forfeited and surrendered, and the Associated Option, if any, shall continue in effect in accordance with its terms. If any amount is payable in
respect of the performance units or performance shares and such units or shares were granted in conjunction with an Associated Option, the Committee shall, within 30 days after the determination of the Committee referred to in the first sentence of
Section 8(b)(6), determine, in its sole discretion, either: 
 (A) to cancel in full the Associated Option, in
which event the value of the performance units or performance shares payable pursuant to Sections 8(b)(5) and (6) shall be paid or the performance shares shall be distributed; 

(B) to cancel in full the performance units or performance shares, in which event no amount shall be paid to the
participant in respect thereof and no shares shall be distributed but the Associated Option shall continue in effect in accordance with its terms; or 

(C) to cancel some, but not all, of the performance units or performance shares, in which event the value of the
performance units payable pursuant to Sections 8(b)(5) and (6) which have not been canceled shall be paid or the performance shares shall be distributed and the Associated Option shall be canceled with respect to that number of shares equal to
the number of conditionally granted performance units or performance shares that remain payable. 
 Any action taken by the
Committee pursuant to the preceding sentence shall be uniform with respect to all Awards having the same award period. If the Committee takes no such action, it shall be deemed to have determined to cancel in full the Award in accordance with
clause (B) above. 
 9. Restricted Stock and Restricted Stock Units: An Award of restricted stock under the
Plan shall consist of a grant of shares of Common Stock of the Issuer, the grant, issuance, retention and/or vesting of which is subject to the terms and conditions hereinafter provided. An Award of a restricted stock unit to a participant will
entitle the participant to receive a specified number of shares of Common Stock or cash, as determined by the Committee, if the objectives specified in the Award, if any, are achieved and the other terms and conditions thereof are
satisfied. Each Award shall be subject to the following terms and conditions: 
 (a) Grant of Awards: The Committee shall
(i) select the employees to whom restricted stock or restricted stock units may from time to time be granted, (ii) determine the number of shares to be covered by each Award granted, (iii) determine the terms and conditions (not
inconsistent with the Plan) of any Award granted hereunder, and (iv) prescribe the form of the agreement, legend or other instrument necessary or advisable in the administration of Awards under the Plan. 

(b) Terms and Conditions of Awards: Any Award granted under this Section 9 shall be evidenced by a Restricted Stock Agreement
or Restricted Stock Unit Agreement entered into by the Issuer and the participant, in such form as the Committee shall approve, which agreement shall be subject to the following terms and conditions and shall contain such additional terms and
conditions not inconsistent with the Plan as the Committee shall prescribe: 
 (1) Number of Shares Subject to an
Award: The agreement shall specify the number of shares of Common Stock or the number of restricted stock units subject to the Award. 

  
 10 

 (2) Restriction Period: The period of restriction applicable to each
Award (the “Restriction Period”) shall be established by the Committee but may not be less than one year, unless the Committee determines otherwise. The Restriction Period applicable to each Award shall commence on the award date.

 (3) Consideration: Each participant, as consideration for the grant of an Award, shall remain in the
continuous employ of the Company for at least one year from the date of the granting of such Award, or as otherwise determined by the Committee, and the participant’s right to any shares of restricted stock or restricted stock units covered by
such an Award shall be forfeited if the participant does not remain in the continuous employ of the Company for at least one year from the date of the granting of the Award, except as otherwise determined by the Committee. 

(4) Restriction Criteria: The Committee shall establish the criteria upon which the Restriction Period shall be
based. Restrictions shall be based upon either or both of (i) the continued employment of the participant or (ii) the attainment of one or more Qualifying Performance Criteria. 

(c) Terms and Conditions of Restrictions and Forfeitures: The restricted stock or restricted stock units awarded pursuant to the
Plan shall be subject to the following restrictions and conditions: 
 (1) During the Restriction Period, the participant
will not be permitted to sell, transfer, pledge or assign the Award made under this Section 9. 
 (2) Except as provided
in Section 9(c)(1), or as the Committee may otherwise determine, a participant holding restricted stock shall have all of the rights of a stockholder of the Issuer, including the right to vote the shares and receive dividends and other
distributions, provided that cash dividends paid with respect to restricted stock that is subject to the satisfaction of targets for Qualifying Performance Criteria shall be retained by the Company during the Restriction Period and shall be subject
to the same restrictions as the underlying restricted stock. In addition, distributions in the form of stock shall be subject to the same restrictions as the underlying restricted stock. A participant holding restricted stock units shall have none
of the rights of a stockholder of the Issuer during the Restriction Period. 
 (3) Unless the Committee shall expressly
otherwise provide in the agreement relating to an Award made under this Section 9, in the event of a participant’s Retirement or death prior to the end of the Restriction Period for a participant who has satisfied the one year employment
requirement of Section 9(b)(3), all time-based restrictions imposed under such Award shall immediately lapse, but such Award shall continue to be subject to the satisfaction of any targets for Qualifying Performance Criteria set forth in the
agreement relating to such Award. 
 (4) Unless the Committee shall expressly otherwise provide in the agreement relating to
an Award made under this Section 9, if during the Restriction Period a participant terminates employment with the Company for any reason other than Retirement or death, the shares covered by a restricted stock Award that are not already vested
shall be canceled and forfeited and will be deemed to be reacquired by the Issuer and any restricted stock units still subject to restriction shall be forfeited by the participant. 

(5) In cases of special circumstances as determined by the Committee, the Committee may, in its sole discretion when it finds
that such an action would be in the best interests of the Company, accelerate or waive in whole or in part any or all remaining time-based restrictions with respect to all or part of a participant’s restricted stock or restricted stock units.

 (6) In the event that the participant fails promptly to pay or make satisfactory arrangements as to the Withholding Taxes
as provided in Section 13, (i) all shares of restricted stock still subject to restriction shall be forfeited by the participant and will be deemed to be reacquired by the Company; and (ii) all restricted stock units still subject to
restriction shall be forfeited by the participant. 
 (7) A participant may, at any time prior to the expiration of the
Restriction Period, waive all rights to receive all or some of the shares covered by or corresponding to an Award by delivering to the Company a written or electronic notice of such waiver. 

(8) Notwithstanding the other provisions of this Section 9, the Committee may adopt rules which would permit a gift by a
participant holding restricted stock or the benefits of a restricted stock unit, to members of the participant’s immediate family (spouse, parents, children, stepchildren, grandchildren or legal dependants) or to a trust whose beneficiary or
beneficiaries shall be either such a person or persons or the participant. 
 (9) Any attempt to dispose of an Award under
this Section 9 in a manner contrary to the restrictions shall be ineffective. 

  
 11 

 10. Forfeiture of Awards; Recapture of Benefits: 

(a) Breach of Restrictive Covenants; Violation of Code or Policies. The Committee may, in its discretion, provide in an
agreement evidencing any Award that (1) in the event that the participant engages, within a specified period after termination of employment, in certain activity specified by the Committee that is deemed detrimental to the interests of the Company
(including, but not limited to, the breach of any non-solicitation and/or non-compete agreements with the Company), and/or (2) in the event that the participant engages in conduct (which may include a failure to act) that is deemed detrimental to
the interests of the Company (including, but not limited to, that which results in a violation of the Company’s Code of Business Conduct and Ethics, policies, procedures or other standards), the Committee may, in its discretion, require the
participant to forfeit his or her right to any unvested portion of the Award and, to the extent that any portion of the Award has previously vested, the Committee may require the participant to return to the Company the shares of Common Stock
covered by the Award or any cash proceeds the participant received upon the sale of such shares or, in the case of stock appreciation rights, performance units or restricted stock units that are settled in cash, an amount of cash, equal to the
amount of any gain realized upon the exercise of or lapsing of restrictions on any Award that occurred within a specified time period. 

(b) Other Bases for Forfeiture, Recovery or Other Actions. Awards and any compensation or benefits associated therewith
shall be subject to repayment or forfeiture as may be required to comply with (i) any applicable listing standards of a national securities exchange adopted in accordance with Section 10D of the Exchange Act (regarding recovery of
erroneously awarded compensation) and any implementing rules and regulations of the U.S. Securities and Exchange Commission adopted thereunder; (ii) similar rules under the laws of any other jurisdiction; and (iii) any policies adopted by the
Company to implement such requirements, all to the extent determined by the Company in its discretion to be applicable to a participant. Any agreement evidencing an Award may be unilaterally amended by the Committee to comply with
any such compensation recovery policy. 
 11. Determination of Breach of Conditions: The determination
of the Committee as to whether an event has occurred resulting in a forfeiture or a termination of an Award or any reduction of the Company’s obligations in accordance with the provisions of the Plan shall be conclusive. 

12. Adjustment of and Changes in the Common Stock: 

(a) Effect of Outstanding Awards. The existence of outstanding Awards shall not affect in any way the right or power of the
Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations, exchanges, or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company or any
issuance of Common Stock or other securities or subscription rights thereto, or any issuance of bonds, debentures, preferred or prior preference stock ahead of or affecting the Common Stock or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar character or otherwise. Further, except as expressly provided herein or by the Committee, (i) the issuance by the Company of Common Stock or any class of securities
convertible into shares of stock of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations to the Company convertible into such
shares or other securities, (ii) the payment of a dividend in property other than shares of Common Stock, or (iii) the occurrence of any similar transaction, and in any case whether or not for fair value, shall not affect, and no adjustment by
reason thereof shall be made with respect to, the number of shares of Common Stock subject to stock options or other Awards theretofore granted or the purchase price per share, unless the Committee shall determine, in its sole discretion, that an
adjustment is necessary or appropriate. 
 (b) Adjustments. If the outstanding Common Stock or other securities of the Company,
or both, for which an Award is then exercisable or as to which an Award is to be settled shall at any time be changed or exchanged by declaration of a stock dividend, stock split, combination of shares, extraordinary dividend of cash and/or assets,
recapitalization, reorganization, corporate separation or division (including, but not limited to, a split-up, spin-off,
split-off or distribution to Company stockholders other than a normal cash dividend) or any similar event affecting the Common Stock or other securities of the Company, the Committee shall appropriately and
equitably adjust the number and kind of shares or other securities which are subject to this Plan or subject to any Awards theretofore granted, and the exercise or settlement prices of such Awards, so as to maintain the proportionate number of
shares of Common Stock or other securities without changing the aggregate exercise or settlement price. 
 (c) Fractional
Shares. No right to purchase fractional shares shall result from any adjustment in stock options or stock appreciation rights pursuant to this Section 12. In case of any such adjustment, the shares subject to the stock option or
stock appreciation right shall be rounded down to the nearest whole share. 
 (d) Assumption of Awards. Any other provision
hereof to the contrary notwithstanding (except for Section 12(a)), in the event the Company is a party to a merger or other reorganization, outstanding Awards shall be subject to the agreement of merger or reorganization. Such agreement
may provide, without limitation, for the assumption of outstanding Awards by the surviving corporation or its parent, for their continuation by the Company (if it is the surviving corporation), for accelerated vesting and accelerated expiration, or
for settlement in cash. 

  
 12 

 13. Taxes: 

(a) Each participant shall, no later than the Tax Date (as defined below), pay to the Company, or make arrangements satisfactory to the
Committee regarding payment of, any Withholding Tax (as defined below) with respect to an Award, and the Company shall, to the extent permitted by law, have the right to deduct such amount from any payment of any kind otherwise due to the
participant. The Company shall also have the right to retain or sell without notice, or to demand surrender of, shares of Common Stock in value sufficient to cover the amount of any Withholding Tax, and to make payment (or to reimburse itself for
payment made) to the appropriate taxing authority of an amount in cash equal to the amount of such Withholding Tax, remitting any balance to the participant. For purposes of this paragraph, the value of shares of Common Stock so retained or
surrendered shall be the average of the high and low sales prices per share on the New York Stock Exchange composite tape on the date that the amount of the Withholding Tax is to be determined (the “Tax Date”) and the value of shares of
Common Stock so sold shall be the actual net sales price per share (after deduction of commissions) received by the Company. 
 (b)
Notwithstanding the foregoing, if the stock options have been transferred, the optionee shall provide the Company with funds sufficient to pay such Withholding Tax. If such optionee does not satisfy the optionee’s tax payment obligation
and the stock options have been transferred, the transferee may provide the funds sufficient to enable the Company to pay such taxes. However, if the stock options have been transferred, the Company shall have no right to retain or sell without
notice, or to demand surrender from the transferee of, shares of Common Stock in order to pay such Withholding Tax. 
 (c) The term
“Withholding Tax” means the minimum required withholding amount applicable to the participant, including federal, state and local income taxes, Federal Insurance Contribution Act taxes, social insurance contributions, payroll tax, payment
on account and any other governmental impost or levy. 
 (d) The participant shall be entitled to satisfy the obligation to pay any
Withholding Tax, in whole or in part, by providing the Company with funds sufficient to enable the Company to pay such Withholding Tax or, unless the Committee determines otherwise, by requiring the Company to retain or to accept upon delivery
thereof by the participant shares of Common Stock held by the participant having a Fair Market Value sufficient to cover the amount of such Withholding Tax. Each election by a participant to have shares retained or to deliver shares for this purpose
shall be subject to the following restrictions: (i) the election must be in writing and be made on or prior to the Tax Date; (ii) the election must be irrevocable; and (iii) the election shall be subject to the disapproval of the Committee. 

14. Change in Control: 

(a) Unless the Committee shall otherwise expressly provide in the agreement relating to an Award, in the event a participant’s employment
with the Company terminates pursuant to a Qualifying Termination (as defined below) during the three (3) year period following a Change in Control of the Issuer (as defined below): 

(1) all outstanding options shall become immediately fully vested and exercisable (to the extent not yet vested and exercisable
as of the date of the Qualifying Termination); and 
 (2) all time-based restrictions imposed under all outstanding Awards of
restricted stock and restricted stock units shall immediately lapse. 
 (b) Unless the Committee shall otherwise expressly provide in the
agreement relating to an Award, if the Company undergoes a Change in Control during the award period applicable to an Award that is subject to the satisfaction of any targets for Qualifying Performance Criteria, the number of shares or units deemed
earned shall be the greater of (i) the target number of shares or units specified in the participant’s Award agreement or (ii) the number of shares or units that would have been earned by applying the Qualifying Performance Criteria
specified in the Award agreement to the Company’s actual performance from the beginning of the applicable award period to the date of the Change in Control. 

(c) In addition, in the event of a Change in Control of the Issuer, the Committee may: 

(1) determine that outstanding options shall be assumed by, or replaced with comparable options by, the surviving corporation
(or a parent or subsidiary of the surviving corporation) and that outstanding Awards shall be converted to similar awards of the surviving corporation (or a parent or subsidiary of the surviving corporation), or 

(2) take such other actions with respect to outstanding options and other Awards as the Committee deems appropriate; provided,
however, that such actions are compliant with Section 409A of the Code, to the extent applicable. 
 (d) For purposes of this Plan, a Change
in Control shall be deemed to have occurred on the earliest of the following dates: 
 (1) The date any person (as defined in
Section 14(d)(3) of the Exchange Act) shall have become the direct or indirect beneficial owner of twenty percent (20%) or more of the then outstanding common shares of the Issuer; 

  
 13 

 (2) The date a merger or consolidation of the Issuer with any other corporation
is consummated, other than (i) a merger or consolidation which would result in the voting securities of the Issuer outstanding immediately prior thereto continuing to represent at least 75% of the combined voting power of the voting securities of
the Issuer or the surviving entity outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Issuer in which no Person acquires more than 50% of the combined voting
power of the Issuer’s then outstanding securities; 
 (3) The date the stockholders of the Issuer approve a plan of
complete liquidation of the Issuer or an agreement for the sale or disposition by the Issuer of all or substantially all of the Issuer’s assets; or 

(4) The date there shall have been a change in a majority of the Board of Directors within a two (2) year period beginning
after the Effective Date, unless the nomination for election by the Issuer’s stockholders of each new director was approved by the vote of two-thirds of the directors then still in office who were in office at the beginning of the two (2) year
period. 
 (e) For purposes of this Plan provision, a Qualifying Termination shall be deemed to have occurred under the following
circumstances: 
 (1) A Company-initiated termination for reasons other than the employee’s death, Disability,
resignation without good cause, willful misconduct or activity deemed detrimental to the interests of the Company, provided the participant executes a general release and, where applicable, a non-solicitation and/or non-compete agreement with the
Company; 
 (2) The participant resigns with good cause, which includes (i) a substantial adverse alteration in the
nature or status of the participant’s responsibilities, (ii) a reduction in the participant’s base salary or levels of entitlement or participation under any incentive plan, award program or employee benefit program without the
substitution or implementation of an alternative arrangement of substantially equal value, or (iii) the Company requiring the participant to relocate to a work location more than fifty (50) miles from the participant’s work location prior
to the Change in Control. 
 15. Amendment of the Plan: The Board of Directors may amend or suspend
this Plan at any time and from time to time; provided, however, that, except in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares), the terms of outstanding awards may not be amended to reduce the exercise price of outstanding stock options or stock appreciation
rights or cancel outstanding stock options or stock appreciation rights in exchange for cash, other awards or stock options or stock appreciation rights with an exercise price that is less than the exercise price of the original stock options or
stock appreciation rights without stockholder approval; and provided, further, that the Board of Directors shall submit for stockholder approval any amendment (other than an amendment pursuant to the adjustment provisions of Section 12)
required to be submitted for stockholder approval by law, regulation or applicable stock exchange requirements or that otherwise would: 

(a) increase the limitations in Section 3; 

(b) reduce the price at which stock options may be granted to below Fair Market Value on the date of grant; 

(c) extend the term of this Plan; or 

(d) change the class of persons eligible to be participants. 

In addition, no such amendment or alteration shall be made which would impair the rights of any participant, without such participant’s consent, under
any Award theretofore granted, provided that no such consent shall be required with respect to any amendment or alteration if the Committee determines in its sole discretion that such amendment or alteration either (i) is required or advisable
in order for the Company, the Plan or the Award to satisfy any law or regulation or to meet the requirements of any accounting standard, or (ii) is not reasonably likely to significantly diminish the benefits provided under such Award, or that
any such diminishment has been adequately compensated. 
 16. Miscellaneous: 

(a) By accepting any benefits under the Plan, each participant and each person claiming under or through such participant shall be
conclusively deemed to have indicated acceptance and ratification of, and consent to, any action taken or to be taken or made under the Plan by the Company, the Board, the Committee or any other committee appointed by the Board. 

  
 14 

 (b) No participant or any person claiming under or through him shall have any right or interest,
whether vested or otherwise, in the Plan or in any Award, contingent or otherwise, unless and until all of the terms, conditions and provisions of the Plan and the Agreement that affect such participant or such other person shall have been complied
with. 
 (c) Neither the adoption of the Plan nor its operation shall in any way affect the rights and powers of the Company to dismiss or
discharge any employee at any time. 
 17. Term of the Plan: The Plan shall expire on May 31,
2024, unless suspended or discontinued earlier by action of the Board of Directors. The expiration of the Plan, however, shall not affect the rights of participants under Awards theretofore granted to them, and all Awards shall continue in
force and operation after termination of the Plan except as they may lapse or be terminated by their own terms and conditions. 

18. Employees Based Outside of the United States: Notwithstanding any provision of the Plan to the
contrary, in order to foster and promote achievement of the purposes of the Plan or to comply with provisions of laws in other countries in which the Company operates or has employees, the Committee, in its sole discretion, shall have the power and
authority to (i) determine which employees employed outside the United States are eligible to participate in the Plan, (ii) modify the terms and conditions of Awards granted to employees who are employed outside the United States,
(iii) establish subplans, modified option exercise procedures and other terms and procedures to the extent such actions may be necessary or advisable, and (iv) grant to employees employed in countries wherein the granting of stock options
is impossible or impracticable, as determined by the Committee, stock appreciation rights with terms and conditions that, to the fullest extent possible, are substantially identical to the stock options granted hereunder; provided, however, that in
no event shall the exercise price of an option or stock appreciation right be less than the Fair Market Value of a share of Common Stock on the date of grant and provided, further, that in no event shall an option or stock appreciation right be
exercisable after the expiration of ten years from the date of grant thereof. 
 19. Grants in Connection with
Corporate Transactions and Otherwise: Nothing contained in this Plan shall be construed to (i) limit the right of the Committee to assume the equity-based awards or make substitute Awards under this
Plan to an employee of another corporation who becomes an employee of the Company by reason of a corporate merger, consolidation, acquisition of stock or property, reorganization or liquidation involving the Company in substitution for an award
granted by such corporation, or (ii) limit the right of the Company to grant options or make other awards outside of this Plan. The terms and conditions of any substitute or assumed Awards may vary from the terms and conditions required by
the Plan. Any substitute or assumed Awards that are made pursuant to this Section 19 shall not count against the limitations provided under Section 3. 

20. Governing Law: The validity, construction, interpretation and effect of the Plan and agreements
issued under the Plan shall be governed and construed by and determined in accordance with the laws of the State of Indiana, without giving effect to the conflict of laws provisions thereof. The Committee may provide that any dispute as to any
Award shall be presented and determined in such forum as the Committee may specify, including through binding arbitration. 

21. Unfunded Plan: Insofar as it provides for Awards, the Plan shall be unfunded. Although bookkeeping
accounts may be established with respect to participants who are granted Awards under this Plan, any such accounts will be used merely as a bookkeeping convenience. The Company shall not be required to segregate or earmark any cash or other
property which may at any time be represented by Awards, nor shall this Plan be construed as providing for such segregation or earmarking, nor shall the Company or the Committee be deemed to be a trustee of stock or cash to be awarded under the
Plan. 
 22. Compliance with Other Laws and Regulations: This Plan, the grant and exercise of Awards
hereunder, and the obligation of the Issuer to sell, issue or deliver shares of Common Stock under such Awards, shall be subject to all applicable federal, state and local laws, rules and regulations and to such approvals by any governmental or
regulatory agency as may be required. The Issuer shall not be required to register in a participant’s name or deliver any shares of Common Stock prior to the completion of any registration or qualification of such shares under any federal,
state or local law or any ruling or regulation of any government body which the Committee shall determine to be necessary or advisable. To the extent the Issuer is unable to or the Committee deems it infeasible to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Issuer’s counsel to be necessary to the lawful issuance and sale of any shares of Common Stock hereunder, the Issuer shall be relieved of any liability with respect to the
failure to issue or sell such shares as to which such requisite authority shall not have been obtained. No stock option shall be exercisable and no shares of Common Stock shall be issued and/or transferable under any other Award unless a
registration statement with respect to the shares underlying such stock option is effective and current or the Issuer has determined that such registration is unnecessary. 

23. Liability of Issuer: The Issuer shall not be liable to a participant or other persons as to (a) the
non-issuance or sale of shares of Common Stock as to which the Issuer has been unable to obtain from any regulatory body having jurisdiction the authority deemed by the Issuer’s counsel to be necessary to the lawful issuance and sale of any
shares hereunder; and (b) any tax consequence expected, but not realized, by any participant or other person due to the receipt, exercise or settlement of any Award granted hereunder. 

  
 15 

 24. Compliance with Section 409A of the Code: Notwithstanding any
provision of the Plan to the contrary, in the event any Award constitutes or provides for a deferral of compensation within the meaning of Section 409A of the Code, the Award shall comply in all respects with the applicable requirements of Section
409A of the Code; the agreement evidencing the Award shall include all provisions required for the Award to comply with the applicable requirements of Section 409A of the Code; and those provisions of such agreement shall be deemed to constitute
provisions of the Plan. 

  
 16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}]]