Document:

Exhibit 10.1

    

    
      Non-Employee Director Compensation Policy

       Amended June 2, 2021

      

       

      

      Ionis Pharmaceuticals, Inc. (“Ionis”) values the contributions made by its Board of Directors.  In recognition of these valuable contributions, Ionis will
        provide each non-employee Director with the compensation described in this policy.

       

      

      Cash Compensation

       

      Each non-employee Director will receive cash compensation based on his or her role on the Board and Board committees as follows:

       

      

      	
              Role

            	 	
              Cash Compensation

            	 
	
              Board Member (base retainer)

            	 	
              $

            	
              60,000

            	
              (1) 

            
	
              Non-Executive Chairman of the Board (additional)

            	 	
              $

            	
              40,000

            	 
	
              Independent Lead Director (additional)

            	 	
              $

            	
              40,000

            	 
	
              Committee Chair (additional):

              -Audit

              -Compliance

              -Compensation

              -Finance

              -Nominating, Governance and Review

              -Science/Medical

            	 	
               

              

              $

            	
              24,000

              $20,000

              $20,000

              $20,000

              $20,000

              $20,000

            	 
	
              Committee Member (additional):

              -Audit

              -Compliance

              -Compensation

              -Finance

              -Nominating, Governance and Review

              -Science/Medical

            	 	
               

              

              $

            	
              12,000

              $10,000

              $10,000

              $10,000

              $10,000

              $10,000

            	 

       

      

      	

            	(1)	
              Before March 31, 2024 this annual base cash retainer for each non-employee Director (not including fees for Non-Executive Chair, Independent Lead Director, Committee Chair or Committee Member) is limited to a
                maximum of $70,000 per year.

            

       

      Equity Compensation

       

      Each non-employee Director will receive an initial stock option award and restricted stock unit award upon joining the Board and an annual stock option award and restricted stock unit award for each year of continued
        service as follows (subject to the aggregate grant date value limit described below):

       

      

      	
              Type of Grant

            	
              Number of Shares*

            
	
              Initial Stock Option Grant

            	
              24,000

            
	
              Initial Restricted Stock Unit Grant

            	
              10,667

            
	
              Annual Stock Option Grant

            	
              12,000

            
	
              Annual Restricted Stock Unit Grant

            	
              5,333

            

      

      

      
        1

        
          

      

      *These equity awards are to be automatically granted pursuant to the terms of the Ionis Pharmaceuticals, Inc. Amended and Restated 2002 Non-Employee Directors Stock Option Plan as approved by our stockholders on June
        4, 2020 (the “NED Plan”).  Notwithstanding the terms of the NED Plan, (1) the Compensation Committee, with input from its independent consultant, may reduce the number of shares to be
        automatically issued on a grant date for each such award so that the awards granted have an aggregate grant date fair value (as determined in accordance with FASB Topic ASC 718 or its successor) that is aligned with the set of peer companies the
        Compensation Committee uses to evaluate compensation, and (2) the initial equity awards for new directors will be adjusted downward such that they are 1.5X the annual equity awards for any given year.

      

      

      The exercise price of each stock option will be the Fair Market Value (as defined in the NED Plan) of Ionis’ common stock on the date of grant.

      

      

      As set forth in the NED Plan, initial grants vest on the annual anniversary of the date of grant and annual grants vest on either (1) the annual anniversary of the date of grant, or (2) the next regularly scheduled annual meeting of stockholders, whichever occurs earlier.

       

      

      While serving on the Board, each non-employee Director may not sell Ionis shares obtained pursuant to vesting of restricted stock unit awards if selling such shares would reduce the shares owned by such non-employee
        Director (not including stock options or unvested restricted stock units) below an amount that is equal to four times his or her annual base cash retainer.

       

      Review of Non-Employee Director Compensation Policy

      

      

      This policy will be reviewed annually by Ionis’ Compensation Committee and Board of Directors.

      

      

      On at least an annual basis, Ionis will retain an independent consultant to (1) advise the Compensation Committee on recent developments and best practices concerning director compensation, and (2) compare Ionis’
        director compensation levels, policies, practices, and procedures to a set of peer companies selected by the Compensation Committee with input from the independent consultant.

      

      

      Ionis reserves the right to amend this compensation policy at any time so long as the issuance of the equity awards comply with the terms of the NED Plan or any successor thereto.

      

      

      

      

       2conformis-2015planx2021f

\\DC - 088353/000017 - 16216426 v8   CONFORMIS, INC.  2015 STOCK INCENTIVE PLAN  PERFORMANCE-BASED RESTRICTED STOCK UNIT AGREEMENT  COVER SHEET  Conformis, Inc., a Delaware corporation (the “Company”), hereby grants performance- based restricted stock units (the “Performance Stock Units”) relating to shares of the Company’s  common stock, par value $0.0001 per share (the “Stock”), to the Grantee named below, subject to  the achievement of performance goals and vesting conditions set forth below.  Additional terms  and conditions of the Performance Stock Units are set forth on this cover sheet and in the attached  Performance Stock Unit Agreement (together, the “Agreement”) and the Company’s 2015 Stock  Incentive Plan (as amended from time to time, the “Plan”).   Grant Date:  Name of Grantee:  Target Number of Performance Stock Units:  Maximum Number of Performance Stock  Units:  Performance Period: • Beginning on the Grant Date, and • Ending on ___________  You agree to all of the terms and conditions described in this Agreement and in the Plan,  unless you deliver a notice in writing within thirty (30) days of receipt of this Agreement to the  Company stating that you do not accept the terms and conditions described in this Agreement  and in the Plan.  You acknowledge that you have carefully reviewed the Plan and agree that the  Plan will control in the event any provision of this Agreement should appear to be inconsistent.  Attachment  This is not a stock certificate or a negotiable instrument.  

 

2  \\DC - 088353/000017 - 16216426 v8    CONFORMIS, INC.  2015 STOCK INCENTIVE PLAN  PERFORMANCE STOCK UNIT AGREEMENT  Performance Stock  Units  Performance Stock  Unit Transferability  Vesting  This Agreement evidences an award of Performance Stock Units in the  number set forth on the cover sheet and subject to the terms and  conditions set forth in this Agreement and the Plan.  Subject to satisfaction of the time-based vesting requirement set forth  below, the number of shares of Stock, if any, that may be issued pursuant  to the terms of this Agreement will be calculated based on the attainment,  as determined by the Compensation Committee (the “Committee”) of the  Board of Directors (the “Board”) of the Company, of the performance  goals described in Exhibit A to this Agreement (the “Performance  Goals”), which number of shares of Stock may be equal to all or a portion,  including none, of the Maximum Number of Performance Stock Units set  forth on the cover sheet.  If the Performance Goals are not achieved  during the Performance Period at a vesting percentage (as described on  Exhibit A) in excess of zero, you will forfeit all of your unvested  Performance Stock Units as of the end of the Performance Period, except  as otherwise provided in this Agreement.    Prior to the Settlement Date (as defined below), your Performance Stock  Units may not be sold, assigned, transferred, pledged, hypothecated, or  otherwise encumbered, whether by operation of law or otherwise, nor  may the Performance Stock Units be made subject to execution,  attachment, or similar process.  If you attempt to do any of these things,  you will immediately and automatically forfeit your Performance Stock  Units.   Except as otherwise provided herein, your Performance Stock Units will  vest and become non-forfeitable on (A) the date the Committee certifies  the achievement of the Performance Goals following the close of the  Performance Period or, (B) in the event of a Change in Control (as defined  below) consummated prior to the end of the Performance Period, the last  day of the Performance Period (in each case, the “Vesting Date”), and  subject to your continued employment with the Company from the Grant  Date through the Vesting Date, but only to the extent and in the vesting  percentage that the Performance Goals have been satisfied.  Promptly  following the completion of the Performance Period (and no later than  ten (10) days following the filing of the Company’s Quarterly Report on  Form 10-Q for the fiscal quarter ended ___________) or, in the event of  a Change in Control consummated prior to the end of the Performance  Period, as soon as practicable in connection with such Change in Control  (and no later than the earlier of the date that the Board approves such  Change in Control or sixty (60) days following the occurrence of such  Change in Control), the Committee will review and certify in writing (i)  

 

3  \\DC - 088353/000017 - 16216426 v8   whether, and to what extent, the Performance Goals have been achieved  and (ii) the number of Performance Stock Units that are eligible to vest.   Such certification will be final, conclusive, and binding.       You will forfeit to the Company all of the unvested Performance Stock  Units to the extent the specified Performance Goals have not been  achieved, as determined by the Committee.   Vesting upon  Termination of  Employment Prior to  a Change in Control  Death or Disability.  If, prior to a Change in Control, your employment  terminates more than 12 months after the Grant Date but prior to the  Vesting Date as a result of your death or because of a termination of your  employment by the Company for Disability, your Performance Stock  Units will vest as to the Target Number of Performance Stock Units set  forth on the cover sheet on the effective date of your termination of  employment. If your employment terminates following the end of the  Performance Period but prior to the Vesting Date as a result of your death  or because of a termination of your employment by the Company for  Disability, your Performance Stock Units will vest to the extent and in  the vesting percentage that the Performance Goals have been satisfied as  if your employment had not terminated, effective as of the Vesting Date.  Certain Terminations without Cause or for Good Reason.  If, prior to a  Change in Control, your employment terminates prior to the Vesting Date  because of your involuntary termination of employment by the Company  without Cause or your voluntary termination for Good Reason, you will  remain eligible to vest on the Vesting Date (to the extent and in the  vesting percentage that the Performance Goals are satisfied) with respect  to a pro rata portion of the Performance Stock Units as if your  employment had not terminated, which pro rata portion will be calculated  by multiplying the total number of the Performance Stock Units that  would vest based on actual performance (i.e., the Target Number of  Performance Share Units set forth on the cover sheet multiplied by the  applicable vesting percentage determined in accordance with Exhibit A)  by a fraction, the numerator of which equals the sum of the number of  days that you provided employment during the Performance Period and  the Additional Period, if any (provided that (i) if your employment  terminates less than 12 months after the Grant Date because of your  involuntary termination of employment by the Company without Cause  or your voluntary termination for Good Reason, the number of days that  you will be deemed to have provided employment during the  Performance Period for purposes of this calculation shall be zero, and (ii)  such sum shall in no event be greater than the total number of days in the  Performance Period), and the denominator of which equals the total  number of days in the Performance Period, rounded down to the nearest  whole unit, effective as of the Vesting Date. For purposes of the  foregoing, “Additional Period” means, if you are party to a Company  

 

4  \\DC - 088353/000017 - 16216426 v8   Employment Agreement providing for, in the case of involuntary  termination of employment by the Company without Cause or your  voluntary termination for Good Reason, acceleration of outstanding  unvested equity grants that would have vested during a specific length of  time following termination had you continued to be employed during  such time, such specific length of time as set forth in such Company  Employment Agreement.  For the avoidance of doubt, the existence of  any Additional Period in a Company Employment Agreement shall not  provide you with any right to deemed achievement of any of the  Performance Goals hereunder.  Other Terminations.  If, prior to the Vesting Date, your employment  terminates (i) because of your involuntary termination of employment by  the Company for Cause, (ii) because of your death, termination of your  employment by the Company for Disability, involuntary termination of  employment by the Company without Cause or your voluntary  termination for Good Reason, in each case within 12 months of the Grant  Date in a circumstance where no Additional Period is applicable pursuant  to the preceding paragraph, or (iii) because of your voluntary termination  other than for Good Reason, you will forfeit to the Company all of the  unvested portion of the Performance Stock Units on the date of your  termination of employment.   Change in Control Notwithstanding the vesting schedule set forth above, upon the  consummation of a Change in Control during the Performance Period, the  Performance Goals will be deemed achieved at the greater of (i) a  percentage of 100% (i.e., the Target Number of Performance Stock Units  set forth on the cover sheet) or (ii) the projected achievement of the  Performance Goals as of the end of the Performance Period, as  determined by the Committee in its sole discretion at the time of such  Change in Control, rounded down to the nearest whole unit (such greater  amount, the “Change in Control Deemed Achievement Amount”).  If  the Performance Stock Units are not assumed or continued in connection  with such Change in Control, such Performance Stock Units shall vest as  of the date of such Change in Control, at the percentage determined  pursuant to this paragraph.  If the Performance Stock Units are assumed  or continued in connection with such Change in Control, such  Performance Stock Units shall thereafter become a time-based award and  shall vest and become non-forfeitable, at the percentage determined  pursuant to this paragraph, on the earlier to occur of (i) your continued  status as an employee of the Company through the last day of the  Performance Period or (ii) your termination of employment during the  period following the consummation of such Change in Control and prior  to full vesting as a result of (A) death, (B) termination of your  employment by the Company for Disability, (C) your involuntary  termination of employment by the Company without Cause or (D) your  

 

5  \\DC - 088353/000017 - 16216426 v8   voluntary termination for Good Reason. If the Performance Stock Units  are assumed or continued in connection with the Change in Control and  your employment terminates prior to end of the Performance Period (x)  because of your involuntary termination of employment by the Company  for Cause, or (y) because of your voluntary termination other than for  Good Reason, you will forfeit to the Company all of the Performance  Stock Units on the date of such termination of employment. In the event  that you are party to a Company Employment Agreement with the  Company providing for the acceleration of 100% of outstanding equity  awards in connection with your cessation of employment in certain  specific situations (such as your involuntary termination of employment  by the Company without Cause or by you for Good Reason, in each case,  following a Change in Control), and such a situation occurs that provides  you the right to receive such acceleration in connection such a cessation,  such acceleration shall be deemed to occur at the Change in Control  Deemed Achievement Amount, which shall be no less than the Target  Number of Performance Stock Units set forth on the cover sheet.  Settlement of  Performance Stock  Units  Your rights to receive the shares of Stock represented by your vested  Performance Stock Units will become non-forfeitable on the date on  which the Performance Stock Units become vested in accordance with  the terms set forth herein, and the Performance Stock Units will be settled,  converted into shares of Stock and delivered on, or within thirty (30) days  following, such date (the “Settlement Date”), subject to any reduction  required in accordance with any “clawback” or recoupment policy, as  described below.  On the date on which shares of Stock are delivered to  you (or your beneficiary or, if none, your estate in the event of your death)  under this paragraph, the Company shall also deliver to you (or your  beneficiary or, if none, your estate in the event of your death) the number  of additional shares of Stock, the number of any other securities of the  Company and the amount of any other property (in the case of cash  dividends, assuming such dividends had been reinvested in shares of  Stock as of the ex-dividend date thereof), in each case that the Company  distributed per share of Stock to holders generally during the period  commencing on the first day of the Performance Period and ending on the  delivery date, multiplied by the number of shares of Stock that are being  delivered to you under this paragraph, without interest, and less any tax  withholding amount applicable to such distribution.  To the extent that  the Performance Stock Units are forfeited prior to vesting, the right to  receive such distributions shall also be forfeited.  Evidence of Issuance The issuance of the shares of Stock with respect to the Performance Stock  Units will be evidenced in such a manner as the Company, in its  discretion, deems appropriate, including, without limitation, book-entry,  registration, or issuance of one or more share certificates.   

 

6  \\DC - 088353/000017 - 16216426 v8   Withholding You acknowledge and agree that the Company has the right to deduct  from payments of any kind otherwise due to you any federal, state, local  or other taxes of any kind required by law to be withheld with respect to  the vesting of the Performance Stock Units.  At such time as you are not  aware of any material nonpublic information about the Company or the  Stock, you shall execute the instructions set forth in Exhibit B attached  hereto (the “Automatic Sale Instructions”) as the means of satisfying  such tax obligation. If you do not execute the Automatic Sale Instructions  prior to an applicable vesting date, then you agrees that if under  applicable law you will owe taxes at such vesting date on the portion of  the Performance Stock Units then vested the Company shall be entitled  to immediate payment from you of the amount of any tax required to be  withheld by the Company.  The Company shall not deliver any shares of  Stock to you until it is satisfied that all required withholdings have been  made.  Retention Rights This Agreement and the Performance Stock Units evidenced by this  Agreement do not give you the right to be retained by the Company in  any capacity.  The Company reserves the right to terminate your  employment with the Company at any time and for any reason.  Shareholder Rights You have no rights as a shareholder with respect to the Performance Stock  Units unless and until the Stock relating to the Performance Stock Units  has been delivered to you.  No adjustments are made for dividends,  distributions, or other rights if the applicable record date occurs before  your certificate is issued (or an appropriate book entry is made), except  as described in the Plan.  Clawback The Performance Stock Units are subject to mandatory repayment by you  to the Company to the extent you are or in the future become subject to  any Company “clawback” or recoupment policy, including, without  limitation, the executive officer recoupment policy in the Company’s  Corporate Governance Guidelines, or applicable laws that require the  repayment by you to the Company of compensation paid by the Company  to you in the event that you fail to comply with, or violate, the terms or  requirements of such policy or applicable laws.  Applicable Law This Agreement will be interpreted and enforced under the laws of the  State of Delaware, other than any conflicts or choice of law rule or  principle that might otherwise refer construction or interpretation of this  Agreement to the substantive law of another jurisdiction.  Definitions For purposes of this Agreement, the following terms shall have the  following meanings:  Unless otherwise defined in a Company Employment Agreement (in  which case the definition contained in such Company Employment  

 

7  \\DC - 088353/000017 - 16216426 v8   Agreement shall apply in lieu of the following), a termination of your  employment by the Company for “Cause” shall mean a termination by  the Company of your employment, pursuant to a reasonable good faith  determination by the Company, by reason of (i) your dishonesty or fraud,  gross negligence in the performance of the your duties and  responsibilities, deliberate violation of a Company policy, or refusal to  comply in any material respect with the legal directives of the Board or  the Company’s Chief Executive Officer so long as such directives are not  inconsistent with your position and duties as described herein; (ii)  conduct by you that materially discredits the Company, intentional  engagement by you in acts materially detrimental to the Company’s  operations or business, persistent or habitual negligence in the  performance of your duties and responsibilities, or your conviction of a  felony involving moral turpitude; (iii) your incurable material breach of  the terms of a Company Employment Agreement you have with the  Company, the Company’s employee confidential information, inventions  and non-competition agreement, or any other material agreement between  you and the Company; or (iv) unauthorized use or disclosure by you of  any proprietary information or trade secrets of the Company or any other  party to whom you owe an obligation of nondisclosure as a result of your  position with the Company.  “Change in Control” shall mean the occurrence of any one of the  following: (i) any “person”, as such term is used in Section 13(d) and  14(d) of the Securities Exchange Act of 1934, as amended (the  “Exchange Act”) (other than the Company, a subsidiary, an affiliate, or  a Company employee benefit plan, including any trustee of such plan  acting as trustee) is or becomes the “beneficial owner” (as defined in Rule  13d-3 under the Exchange Act), directly or indirectly, of securities of the  Company representing fifty percent (50%) or more of the combined  voting power of the Company’s then outstanding securities; or (ii) a sale  of assets involving 75% or more of the fair market value of the assets of  the Company as determined in good faith by the Company’s Board of  Directors (the “Board”); or (iii) any merger, reorganization or other  transaction of the Company whether or not another entity is the survivor,  pursuant to which holders of all the shares of capital stock of the  Company outstanding prior to the transaction hold, as a group, less than  fifty percent (50%) of the shares of capital stock of the Company  outstanding after the transaction; provided, however, that neither (A) a  merger effected exclusively for the purpose of changing the domicile of  the Company in which the holders of all the shares of capital stock of the  Company immediately prior to the merger hold the voting power of the  surviving entity following the merger in the same relative amounts with  substantially the same rights, preferences and privileges, nor (B) a  transaction the primary purpose of which is to raise capital for the  

 

8  \\DC - 088353/000017 - 16216426 v8   Company, will constitute a Change of Control.  “Company Employment Agreement” shall mean a written employment  agreement between you and the Company, if any.   Unless otherwise defined in a Company Employment Agreement (in  which case the definition contained in such Company Employment  Agreement shall apply in lieu of the following), a termination of your  employment by the Company for “Disability” means termination by the  Company of your employment by reason of your incapacitation due to  disability. You may be deemed, by the Company in its sole discretion, to  be incapacitated due to disability if you are unable to perform  substantially all of your employment duties in the normal and regular  manner due to illness, injury or mental or physical incapacity, and you  have been unable so to perform for either (i) 65 consecutive normal  working days, or (ii) 90 or more of the normal working days during 12  consecutive full calendar months. Nothing in the foregoing alters the  Company’s obligations under applicable law, which may, in certain  circumstances, result in the suspension or alteration of the foregoing time  periods.  Unless otherwise defined in a Company Employment Agreement (in  which case the definition contained in such Company Employment  Agreement shall apply in lieu of the following), a termination of your  employment by you for “Good Reason” shall mean a termination of your  employment by you following the occurrence of any of the following  events: (i) a material reduction or alteration in your job responsibilities or  title without your consent, provided that, following a Change in Control,  neither a change in job title nor a reassignment to a new position will  constitute a material reduction in job responsibilities, provided further  that the new position is substantially similar in scope and substance to the  position held prior to the Change of Control and the new job title  reasonably reflects such scope and substance; (ii) relocation by the  Company or a subsidiary, parent or affiliate, as appropriate, of your work  site to a facility or location more than 40 miles from Billerica,  Massachusetts without your consent; (iii) a material reduction in your  then-current base salary without your consent, provided that an across- the-board reduction in the salary level of all other employees or  consultants in positions similar to you by the same percentage amount as  part of a general salary level reduction will not constitute such a salary  reduction; or (iv) a material breach by the Company of a Company  Employment Agreement you have with the Company (each event a  “Good Reason”); provided, however, that no such event or condition  shall constitute Good Reason unless (x) you give the Company a written  notice of Termination for Good Reason not more than 30 days after the  initial existence of the condition, (y) the grounds for termination (if  

 

9  \\DC - 088353/000017 - 16216426 v8   susceptible to correction) are not corrected by the Company within 60  days of its receipt of such notice and your termination of employment  occurs within the earlier of (i) ninety (90) days following the Company’s  receipt of such notice or (ii) thirty (30) days following your receipt from  Company of a notice indicating that it does not intend to correct the  grounds for termination and/or that the Company disputes that the  grounds for terminations constitutes a Good Reason.  Any other capitalized terms used in this Agreement other than the  foregoing (and other than those defined and used in Exhibit A hereto)  shall have the meanings set forth in the Plan.  The Plan The text of the Plan is incorporated in this Agreement by reference.  This Agreement and the Plan constitute the entire understanding between  you and the Company regarding the Performance Stock Units.  Any prior  agreements, commitments, or negotiations concerning the Performance  Stock Units are superseded.  Data Privacy To administer the Plan, the Company may process personal data about  you.  Such data includes, but is not limited to, information provided in  this Agreement and any changes thereto, other appropriate personal and  financial data about you, such as your contact information, payroll  information, and any other information that might be deemed appropriate  by the Company to facilitate the administration of the Plan.  By accepting  the Performance Stock Units, you give explicit consent to the Company  to process any such personal data.  Disclaimer of Rights The grant of Performance Stock Units under this Agreement will in no  way be interpreted to require the Company to transfer any amounts to a  third party trustee or otherwise hold any amounts in trust or escrow for  payment to you.  You will have no rights under this Agreement or the  Plan other than those of a general unsecured creditor of the Company.  Performance Stock Units represent unfunded and unsecured obligations  of the Company, subject to the terms and conditions of the Plan and this  Agreement.   Electronic Delivery By accepting the Performance Stock Units, you consent to receive  documents related to the Performance Stock Units by electronic delivery  and, if requested, agree to participate in the Plan through an on-line or  electronic system established and maintained by the Company or another  third party designated by the Company, and your consent shall remain in  effect throughout your term of employment and thereafter until you  withdraw such consent in writing to the Company.  Code Section 409A The grant of Performance Stock Units under this Agreement is intended  to comply with Section 409A of the Code (“Section 409A”) to the extent  

 

10  \\DC - 088353/000017 - 16216426 v8   subject thereto, and, accordingly, to the maximum extent permitted, this  Agreement will be interpreted and administered to be in compliance with  Section 409A.  Notwithstanding anything to the contrary in the Plan or  this Agreement, neither the Company, its affiliates, the Board, nor the  Committee will have any obligation to take any action to prevent the  assessment of any excise tax or penalty on you under Section 409A, and  neither the Company, its affiliates, the Board, nor the Committee will  have any liability to you for such tax or penalty.  To the extent that the Performance Share Units constitute “deferred  compensation” under Section 409A, a termination of employment occurs  only upon an event that would be a “separation from service” within the  meaning of Section 409A.  If, at the time of your separation from service,  (1) you are a “specified employee” within the meaning of Section 409A, and (2) the Company makes a good faith determination that an amount payable on account of your separation from service constitutes deferred compensation (within the meaning of Section 409A), the payment of which is required to be delayed pursuant to the six (6)-month delay rule set forth in Section 409A to avoid taxes or penalties under Section 409A (the “Delay Period”), then the Company will not pay such amount on the otherwise scheduled payment date but will instead pay it in a lump sum on the first business day after the Delay Period (or upon your death, if earlier), without interest.  Each installment of Performance Share Units that vest under this Agreement (if there is more than one installment) will be considered one of a series of separate payments for purposes of Section 409A. By accepting this Agreement, you agree to all of the terms and conditions described  above and in the Plan.  Except as otherwise provided herein, in the event that any other term of  this Agreement conflicts with the terms of any employment agreement between you and the  Company, the terms herein shall supersede the conflicting terms of such employment  agreement.  

 

\\DC - 088353/000017 - 16216426 v8   EXHIBIT A  PERFORMANCE STOCK UNIT AGREEMENT  PERFORMANCE GOALS  

 

\\DC - 088353/000017 - 16216426 v8   EXHIBIT B  Automatic Sale Instructions  The undersigned hereby consents and agrees that any taxes due on a vesting date  as a result of the vesting of Performance Stock Units on such date shall be paid through an  automatic sale of shares as follows:  (a) Upon any vesting of Performance Stock Units pursuant to the Agreement, the Company shall arrange for the sale of such number of shares of Stock issuable with respect to  the Performance Stock Units that vest as is sufficient to generate net proceeds sufficient to  satisfy the Company’s minimum statutory withholding obligations with respect to the income  recognized by the Grantee upon the vesting of the Performance Stock Units (based on minimum  statutory withholding rates for all tax purposes, including payroll and social security taxes, that  are applicable to such income), and the Company shall retain such net proceeds in satisfaction of  such tax withholding obligations.  (b) The Grantee hereby appoints the Chief Legal Officer and Corporate Secretary of the Company his or her attorney in fact to sell the Grantee’s Stock in accordance  with this Exhibit B. The Grantee agrees to execute and deliver such documents, instruments and  certificates as may reasonably be required in connection with the sale of shares of the Stock  pursuant to this Exhibit B.  (c) The Grantee represents to the Company that, as of the date hereof, he or she is not aware of any material nonpublic information about the Company or the Stock. The Grantee  and the Company have structured this Agreement, including this Exhibit B, to constitute a  “binding contract” relating to the sale of Stock, consistent with the affirmative defense to  liability under Section 10(b) of the Securities Exchange Act of 1934 under Rule 10b5-1(c)  promulgated under such Act.  The Company shall not deliver any shares of Stock to the Grantee until it is  satisfied that all required withholdings have been made.  _________________________  Grantee Name:  _________________________  Date  

 

                        \\DC - 088353/000017 - 16216426 v8

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