Document:

Exhibit

EXHIBIT 10.1

William A. Foley
Chairman & Chief Executive Officer
Libbey Inc.

[DATE]

[NAME]
[ADDRESS]

Dear [NAME]: 

Libbey Inc. (the “Company”) considers it essential to the best interests of its shareholders to foster the continuous employment of key management personnel. In that connection, the Company’s Board of Directors (the “Board”) recognizes that, as is the case with many publicly held companies, the possibility of a change in control of the Company may exist and that the uncertainty and questions that it may raise among management could result in the departure or distraction of management personnel to the detriment of the Company and its shareholders.
The Board has decided to reinforce and encourage the continued attention and dedication of members of the Company’s management, including you, to their assigned duties without the distraction arising from the possibility of a change in control of the Company. In order to induce you to remain in its employ, the Company hereby agrees that after this letter agreement (this “Agreement”) has been fully executed, you will receive the severance benefits set forth in this Agreement if your employment with the Company is terminated under the circumstances described below subsequent to a Change in Control (as defined in Section 2). 
1.  Term of Agreement. The term of this Agreement will commence on [DATE], and will continue in effect through December 31, 2018. Commencing on January 1, 2019 and on each January 1 thereafter, the term of this Agreement will be extended automatically for one additional year unless the Company gives you written notice, not later than September 30 of the preceding calendar year, that the Company does not wish to extend this Agreement for the subsequent year. For example, if the Company does not desire to renew this Agreement for the 2019 calendar year, the Company must, on or before September 30, 2018, give you written notice that the term of this Agreement will not be renewed for the 2019 calendar year. If a Change in Control occurs during the initial or any extended term of this Agreement, the term of this Agreement will continue for a period of not less than 24 months beyond the month in which the Change in Control occurred.
2.  Change in Control. For purposes of this Agreement, a Change in Control will be deemed to occur if:
(a)  any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing thirty percent or more of the combined voting power of the Company’s then outstanding securities. For purposes of this Agreement, the term “Person” is used as the term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). However, the term “Person” does not include the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company. For purposes of this Agreement, the term “Beneficial Owner” has the meaning given to it in Rule 13d-3 under the Exchange Act;
(b)  during any period of two consecutive years (not including any period prior to the execution of this Agreement), Continuing Directors cease for any reason to constitute at least a majority of the Board. The term “Continuing Directors” means (i) individuals who were members of the Board at the beginning of the two year period referred to above and (ii) any individuals elected to the Board, after the beginning of the two year period referred to above, by a vote of at least two-thirds of the directors 

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then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously approved in accordance with this provision. Notwithstanding the immediately preceding sentence, an individual who is elected to the Board after the beginning of the two year period will not be deemed a Continuing Director if the individual was designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(a), (c) or (d);
(c)  the consummation of a merger or consolidation of the Company with any other corporation (or other entity), 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 two-thirds of the combined voting power of the voting securities of the Company or the surviving entity outstanding immediately after the merger or consolidation; or 
(d)  the consummation of a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets.
3.  Termination Following Change in Control.
(a)  General. If, (i) during the term of this Agreement, a Change in Control occurs and the Company terminates your employment without Cause, or you terminate your employment for Good Reason, within the two year period immediately following the date on which the Change in Control occurs, or (ii) during the term of this Agreement, the Company terminates your employment without Cause, or you terminate your employment for Good Reason, and within six months thereafter a Change in Control occurs, then you will be entitled to the benefits provided in Section 4, and those benefits will be paid notwithstanding the subsequent expiration of the term of this Agreement.
Notwithstanding anything to the contrary in this Agreement, you will not be entitled to any payment under Section 4 if your employment is terminated as a result of your death or Permanent Disability. “Permanent Disability” means any incapacity due to physical or mental illness as a result of which you are absent from the full-time performance of your duties with the Company for six consecutive months and do not return to the full-time performance of your duties within 30 days after the Company gives Notice of Termination to you.
(b)  Cause. “Cause” means the occurrence of any of the following events: (i) your willful and continued failure (other than as a result of your incapacity due to physical or mental illness or after your issuance of a Notice of Termination for Good Reason) to substantially perform your duties with the Company after the Board has delivered to you a written demand for substantial performance that specifically identifies the manner in which the Board believes that you have not substantially performed your duties; (ii) your willful and continued failure (other than as a result of your incapacity due to physical or mental illness or after your issuance of a Notice of Termination for Good Reason) to substantially follow and comply with the specific and lawful directives of the Board, after the Board has delivered to you a written demand for substantial performance that specifically identifies the manner in which the Board believes that you have not substantially followed or complied with the directives of the Board; (iii) your commission of an act of fraud or dishonesty that causes harm to the Company; (iv) your material failure to comply with a Company policy or code of conduct; (v) your material breach of any material obligation under any written agreement between you and the Company; or (vi) your engagement in illegal conduct or gross misconduct that causes harm to the Company.  Termination of your employment will not be deemed to be for Cause unless and until the Company has delivered to you a copy of a resolution duly adopted by the affirmative vote of a majority of the entire membership of the Board specifying in reasonable detail the particulars of the conduct constituting Cause.
(c)  Good Reason. “Good Reason” means the occurrence of any of the following circumstances without your consent unless such circumstances are fully corrected (provided such circumstances are capable of correction) prior to the Date of Termination specified in the applicable Notice of Termination:
(i)  you cease to be an officer of the Company;
(ii)  the Company’s reduction of your annual base salary and the reduction is not applied in the same or similar manner to similarly situated employees; 
(iii)  a material reduction in your annual incentive compensation opportunity established for the position held by you and the reduction is not applied in the same or similar manner to similarly situated employees;

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(iv)  a material reduction or elimination of an executive benefit or an employee benefit and the reduction is not applicable to similarly situated employees in the same or similar manner; or
(v)  the Company’s material breach of any written agreement between the Company and you and the Company does not remedy it prior to the expiration of 60 days after receipt of written notice of the breach given by you to the Company.
If you do not deliver to the Chief Executive Officer, within 90 days after the date on which you knew or should have known of the Good Reason event, written notice specifying in reasonable detail the particulars giving rise to the Good Reason Event, you will be deemed conclusively to have waived that particular Good Reason Event (but not any subsequent Good Reason Event) even if your failure to give timely notice of the Good Reason event is a result of your incapacity due to physical or mental illness. In all events, the Company will be given a 30 day period to cure or remedy the condition giving rise to the Executive’s notice.
(d)  Notice of Termination. Any purported termination of your employment by the Company or by you (other than termination as a result of your death, in which case your employment will terminate automatically, or as a result of resignation or retirement that is not at the written request of the Company and is not for Good Reason) will be communicated by written Notice of Termination to the other party hereto in accordance with Section 9. “Notice of Termination” means a written notice that indicates the specific termination provision in this Agreement relied upon and sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so indicated. 
(e)  Date of Termination, Etc. “Date of Termination” means the date on which your employment with the Company is terminated. Notwithstanding any other provision of this Agreement to the contrary, if you incur a termination of employment that is not a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), your right to all amounts payable upon such termination of employment pursuant to Section 4 will vest on the Date of Termination, but payment of any amount that is subject to Section 409A will be deferred until you have incurred a separation from service (or, if required by Section 4(b), six months thereafter).
4.  Compensation Upon Termination.
(a)  If you terminate your employment for Good Reason or the Company terminates your employment without Cause (other than as a result of your death or Permanent Disability), in each case in accordance with the terms of Section 3(a), then you will be entitled to the benefits provided below:
(i)  The following accrued benefits: (A) your base salary earned through the Date of Termination; (B) any earned but unpaid vacation pay as of the Date of Termination; (C) reimbursement of any expenses properly incurred prior to the Date of Termination in accordance with the Company’s policy on business expense reimbursement; (D) any amount or benefits to which the Executive is entitled under any pension plan, retirement savings plan, equity participation plan, stock purchase plan, medical benefit plan or other benefit plan or employment policy maintained by the Company in accordance with the terms of the plan, policy or arrangement; and (E) any incentive compensation earned but not yet paid for a performance period ended prior to the Date of Termination at the time it would otherwise have been paid but for the termination;
(ii)  In lieu of any further salary payments to you for periods subsequent to the Date of Termination, the Company will pay to you, at the time specified in Section 4(b), a lump-sum severance payment equal to the sum of the following:
		
	(A)
	two times your annual base salary at the rate in effect as of the date on which Notice of Termination is given (but without regard to any reduction in base salary that constituted, or would have constituted, Good Reason); and

		
	(B)
	two times your target annual incentive compensation opportunity as in effect as of the date on which Notice of Termination is given (but without regard to any reduction in incentive compensation opportunities that constituted, or would have constituted, Good Reason);

(iii) With respect to the annual incentive compensation opportunity during the year in which the Date of Termination occurs, you will receive payment of a prorated amount based on actual performance for the year. The amount payable pursuant to this clause will be paid, subject to Section 4(b), between January 1 and March 15 of the year following the year in which the Date of Termination occurs;
(iv)  Any equity compensation awards that are subject to time vesting requirements and remain unvested at the Date of Termination will become fully vested as of the Date of Termination. If a Change in Control occurs within six months 

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following a termination by the Company without Cause or termination by the Executive for Good Reason, then any equity compensation awards that were subject to time vesting requirements and remained unvested as of the Date of Termination will become vested as of the date of the Change in Control.
(v)  Executive outplacement services paid for by the Company; provided however, that the Company is not required to pay any amount for such services that exceeds 15% of the Executive’s annual base salary at the time of termination (without regard to any reduction in base salary that constituted, or would have constituted, Good Reason); provided, further that the services are received by you prior to the last day of your second taxable year following the taxable year in which your “separation from service” occurred.
(vi)  Continuation of your medical, prescription drug, dental and life insurance benefits (collectively, "Insurance Benefits") for a period of 18 months following the Date of Termination or until such earlier time as you receive medical or life insurance coverage through a future employer. You will continue to pay the employee portion of costs for the continued Insurance Benefits on a monthly basis.
(vii)  You will be entitled to financial planning services paid for by the Company; provided; however, that the Company is not required to pay any amount for the services that exceeds $10,000.
(b)  The payments provided for in this Section 4 will be made not later than the fifth business day following the Date of Termination or the Change in Control; provided, however, that if the Company, in its sole discretion, determines that the Change in Control does not constitute a “change in control event” as defined in Section 409A, then all such payments that (i) the Company determines are not “Section 409A Payments” or (ii) exceed the amount that would have been paid had the termination not occurred in connection with a Change in Control, will be paid in a lump sum and the remaining installments will be paid at the time they would have been paid had the termination not occurred in connection with a Change in Control (or, if earlier, not more than five days after a change in control event, as defined in Section 409A, occurs). As used herein “Section 409A Payments” means amounts that constitute deferred compensation subject to Section 409A. Notwithstanding any provisions of this Section 4 to the contrary, if you are a “specified employee” (within the meaning of Section 409A and determined pursuant to policies adopted by the Company) on the Date of Termination, amounts that otherwise would be payable pursuant to Section 4(c) (as well as any other payment or benefit that you are entitled to receive upon your separation from service and that would be considered a Section 409A Payment), to the extent that such amounts constitute Section 409A Payments during the six-month period immediately following the Date of Termination (the “Delayed Payments”) will instead be paid or made available on the earlier of (A) the first day of the seventh month following your Date of Termination and (B) your death. For purposes of this Agreement, all amounts payable pursuant to Section 4(c) will be considered 409A Payments except to the extent that the Company, in its sole discretion, determines that such amounts satisfy an exception to Section 409A, including the exception for short-term deferrals set forth in Treasury Regulation §1.409A-1(b)(4) and the exception for certain separation pay plans set forth in Treasury Regulation §1.409A-1(b)(9)(iii), which will be applied to all installments commencing with the first installment that does not qualify as a short-term deferral until the limitation on such separation pay plans is reached. In connection with the Company’s determination as set forth in the preceding sentence, you may furnish the Company with a tax opinion or other evidence that an exception applies but the Company will not be bound by any such opinion or evidence.
(c)  Payment of any amount to you and the provision of any benefits to you, or on your behalf, pursuant to this Section 4 and your acceptance of such amounts will be conditioned on your execution and delivery to the Company, no later than 60 days after the Date of Termination, of a general waiver and release of claims in the form attached hereto as Exhibit A or in such other form as the Company may reasonably request to provide a complete release of all claims and causes of action you or your estate may have against the Company, except claims and causes of action arising out of, or related to, the obligations of the Company pursuant to this Agreement and Claims (as defined in Exhibit A) for vested benefits under any pension plan, retirement plan and savings plan, rights under any equity compensation plan and stock purchase plan and rights to continuation of medical care coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 and any similar state law.
(d)  There will be no offset to any compensation or other benefits otherwise payable to you, or on your behalf, pursuant to the terms of Section 4 as a result of your receipt of any pension, retirement or other benefit payments (including, but not limited to, accrued vacation) except as provided by Section 9(m).
5.  Successors; Binding Agreement.
(a)  The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this 

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Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain the assumption and agreement prior to the effectiveness of any such succession will be a breach of this Agreement and will entitle you to terminate your employment and receive compensation from the Company in the same amount and on the same terms to which you would be entitled hereunder if you terminate your employment for Good Reason following a Change in Control. Unless expressly provided otherwise, “Company” as used herein will mean the Company as defined in this Agreement and any successor to its business and/or assets as aforesaid.
(b)  This Agreement will inure to the benefit of and be enforceable by you and your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If you should die while any amount would still be payable to you hereunder had you continued to live, all such amounts, unless otherwise provided herein, will be paid in accordance with the terms of this Agreement to your devisee, legatee or other designee or, if there is no such designee, to your estate. 
6.  Personal Property, Records and Confidential Data.
(a)  You acknowledge and agree that all personal property and equipment furnished to or paid for by the Company or prepared by you in the course of or incident to your employment by the Company belongs to the Company and will be promptly returned to the Company upon termination of the employment. “Personal property” includes, without limitation, all books, manuals, records, reports, notes, contracts, lists, blueprints, and other documents, or materials, or copies thereof (including computer files), all computers, lap tops, personal digital assistants, cellular phones and other electronic devices and all other proprietary information relating to the business of the Company or any affiliate, including information stored on any non-Company owned or furnished device, network, storage location or media in your possession or control. Following termination of employment, you agree not to retain any written or other tangible material containing any proprietary information or Confidential Information of the Company or any affiliate of the Company.
(b)  You acknowledge that in connection with the performance of your duties during the term of this Agreement, the Company will make available to you, or you will have access to, certain Confidential Information of the Company. You acknowledge and agree that any and all Confidential Information learned or obtained by you during the course of your employment by the Company or otherwise (including, without limitation, information that you obtained through or in connection with your stock ownership in and employment by the Company), whether developed by you alone or in conjunction with others or otherwise, will be and is the property of the Company.
(c)  You will keep all Confidential Information confidential and will not use the Confidential Information other than in connection with your discharge of your duties hereunder. You will safeguard the Confidential Information from unauthorized disclosure. This covenant is not intended to, and does not limit in any way, any of your duties or obligations to the Company under statutory or common law not to disclose or to make personal use of the Confidential Information or trade secrets.
(d)  Following your termination of employment, as soon as possible after the Company’s written request, you will return to the Company all written or electronic Confidential Information that has been provided to you, and you will destroy or return (at the Company’s option) all copies of any analyses, compilations, studies or other documents prepared by you or for your use containing or reflecting any Confidential Information. Within ten business days of your receipt of such request, you will deliver to the Company a notarized document certifying that the Confidential Information has been returned or destroyed in accordance with this Section 6(d). However, if the Confidential Information is contained on books, manuals, records, reports, notes, contracts, lists, blueprints, documents, materials and copies thereof (including computer files), computers, lap tops, personal digital assistants, cellular phones or other electronic devices belonging to the Company, then such property with all data including Confidential Information, will be returned to the Company.
(e)  For the purposes of this Agreement, “Confidential Information” will mean all information not generally known to the public, regardless of form or format, relating directly or indirectly to the business of the Company or any of its corporate affiliates or subsidiaries, or any existing or prospective customer, supplier, investor, or other associated third party, or of any other person or entity that has entrusted information to the Company in confidence. By way of illustration only and without limiting the preceding sentence, Confidential Information includes information relating to business processes, practices or methods; policies, plans, publications, manuals, records, articles or other documents; research; operations; services; strategies; techniques; agreements, contracts or terms of agreements; transactions, potential transactions, negotiations or pending negotiations; inventions, unpublished patent applications, know-how or trade secrets; computer programs, software, applications, operating systems, software design, web design, databases or information systems or any data contained in such systems; work-in-process; supplier or vendor information; financial information or results, accounting information, internal control information or accounting records; legal information; sales or marketing information, including market studies, advertising information, product plans, pricing information, 

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customer lists or other customer information or sales forecasts; credit information; design information; staffing or personnel information, including employee lists or payroll information; and supplier or vendor lists and cost information. The above list is not exhaustive, and Confidential Information also includes other information that is marked or otherwise identified or treated as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used. Confidential Information does not lose its status under this Agreement if it is not marked as “confidential.” Confidential Information includes information developed by you in the course of your employment by Company as if Company furnished the same Confidential Information to you in the first instance. For purposes of this Agreement, the Confidential Information will not include and your obligations under this Section 6 will not extend to (i) information that is available in the public domain and (ii) information that is required to be disclosed by lawful order of a court of competent jurisdiction, provided that you give the Company notice of the disclosure requirement and cooperate with the Company in connection with any action by the Company to seek a protective order or confidential treatment for the information.
(f)  Notwithstanding anything in this agreement to the contrary, you will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, but solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
(g)  If you file a lawsuit against the Company for retaliation for reporting a suspected violation of law, you may disclose the trade secret to your attorney and use the trade secret information in the court proceeding, if you (i) file any document containing the trade secret under seal and (ii) do not disclose the trade secret, except pursuant to court order.
(h)  Nothing in this Agreement limits your ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, or any other federal, state, or local governmental agency or commission (“Government Agencies”). This Agreement does not limit your ability to communicate with Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to Libbey. This Agreement does not limit your right to receive an award for information provided to any Government Agencies. Nothing in this Agreement in any way prohibits or is intended to restrict or impede you from exercising protected rights under Section 7 of the National Labor Relations Act.
(i)  Any reference to the Company in this Section 6 will include the Company and its affiliates.
7.  Additional Covenants.
(a)  Non-Interference with Customer Accounts. You covenant and agree that (i) during employment and (ii) for a period of 12 months commencing on the Date of Termination, except as may be required by your employment by the Company, you will not directly or indirectly, personally or on behalf of any other person, business, corporation, or entity, contact or do business with any customer of the Company with respect to any product, business activity or service which is competitive with any product, business, activity or service of the type sold or provided by the Company.
(b)  Non-Competition. In consideration of and in connection with the benefits provided to you under this Agreement and in order to protect the goodwill of the Company, you hereby agree that if your employment is terminated under conditions giving rise to payment under Section 4, then, unless the Company otherwise agrees in writing, for a period of 12 months commencing on the Date of Termination, you will not engage in any Prohibited Activity. “Prohibited Activity” means activity in which you contribute your knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, agent, partner, director, stockholder, officer, volunteer, intern, or any other similar capacity, to an entity engaged in the same or similar business as the Company, including those who sell, in competition with the Company, the same type of products as are sold by the Company, including without limitation glass tableware or other glass products, ceramic dinnerware, metalware and plastic supplies to the foodservice, retail (whether brick and mortar or internet) and business-to-business channels of distribution. Prohibited Activity also includes activity that may require or inevitably require disclosure of trade secrets, proprietary information, or Confidential Information. Without limiting the foregoing, the Company regards the following business operations as its primary, but not exclusive, competitors: The Oneida Group, Inc., including Anchor Hocking and Oneida Ltd.; Arc International and its affiliates, including Cardinal International, Inc.; the glass tableware business of Owens-Illinois, Inc.; Luigi Bormioli; Bormioli Rocco Casa SpA; Durobor; Vicrila; Crilamex; the Kedaung group of companies of Indonesia; the Sisecam group of companies of Turkey including Pasabahce; Ocean Glass, Anhui DeLi Glassware Co., Ltd.; Stone Island; and any distributor of products manufactured or sold by any of the preceding competitors. Nothing in this Agreement prohibits you from purchasing or owning 

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less than five percent (5%) of the publicly traded securities of any corporation, provided that such ownership represents a passive investment and that you are not a controlling person of, or a member of a group that controls, that corporation.
(c)  No Diversion. You covenant and agree that in addition to the other covenants set forth in this Section 7, (i) during your employment and (ii) for a period of 12 months following your Date of Termination, you will not divert or attempt to divert or take advantage of or attempt to take advantage of any actual or potential business opportunities of the Company (e.g., joint ventures, other business combinations, investment opportunities, potential investors in the Company, and other similar opportunities) of which you became aware as a result of your employment with the Company.
(d)  Non-Recruitment. You acknowledge that the Company has invested substantial time and effort in assembling its present workforce. Accordingly, you covenant and agree that during employment and for period of 12 months commencing on the Date of Termination, you will not either for your own account or jointly with or as a manager, agent, officer, employee, consultant, partner, joint venture owner or shareholder or otherwise on behalf of any other person, firm or corporation directly or indirectly entice, solicit, attempt to solicit, or seek to induce or influence any officer or employee of the Company to leave his or her employment with the Company or to offer employment to any person who on or during the six month period immediately preceding the date of the solicitation or offer was an employee of the Company; provided, however, that this Section 7(d) will not be deemed to be breached with respect to an employee or former employee of the Company who responds to a general advertisement seeking employment or who otherwise independently initiates contact for the purpose of seeking employment.
(e)  Non-Disparagement. You covenant and agree that during your employment and after your Date of Termination, you will not denigrate or disparage the Company or any of its directors, officers, employees, equity holders, contractors, customers or competitors (“Covered Parties”) or the Company’s products and will not make or post any negative or critical remarks in any newspaper, electronic media, blog or other public forum concerning the Company or the Covered Parties or their business, management or employment practices. Nothing in this paragraph will preclude you from providing truthful testimony if mandated by subpoena or court order to do so, or from cooperating fully with any valid request for information from a government agency.
(f)  Severability and Modification of any Unenforceable Covenant. It is the parties’ intent that each of the covenants in this Section 7 be read and interpreted with every reasonable inference given to its enforceability. However, it is also the parties’ intent that if any term, provision or condition of the covenants in this Section 7 is held to be invalid, void or unenforceable, the remainder of the provisions thereof will remain in full force and effect and will in no way be affected, impaired or invalidated. Finally, it is also the parties’ intent that if it is determined any of the covenants in this Section 7 are unenforceable because of over breadth, then the covenants will be modified so as to make it reasonable and enforceable under the prevailing circumstances.
(g)  Tolling. If you breach any covenant in this Section 7, the running of the period of restriction will automatically toll and suspend for the amount of time that the breach continues, and will automatically recommence when the breach is remedied so that the Company will receive the benefit of your compliance with the covenants in this Section 7.
(h)  Construction. Any reference to the Company in this Section 7 will include the Company and its affiliates.
8.  No Assignment. This Agreement and the rights and duties hereunder are personal to you and will not be assigned, delegated, transferred, pledged or sold by you without the Company’s prior written consent. You hereby acknowledge and agree that the Company may assign, delegate, transfer, pledge or sell this Agreement and the rights and duties hereunder (a) to an affiliate of the Company or (b) to any third party in connection with (i) the sale of all or substantially all of the Company’s assets or (ii) a stock purchase, merger, or consolidation involving the Company. This Agreement will inure to the benefit of and be enforceable by the parties hereto, and their respective heirs, personal representatives, successors and assigns.
9.  Miscellaneous Provisions.
(a)  Payment of Taxes. Except as specifically provided for in this Agreement, to the extent that any taxes become payable by you by virtue of any payments made or benefits conferred by the Company, the Company will not be liable to pay or obligated to reimburse you for any such taxes or to make any adjustment under this Agreement. Any payments otherwise due under this Agreement to you, including, but not limited to, the base salary and any bonus compensation, will be reduced by any required withholding for federal, state and/or local taxes and other appropriate payroll deductions.
(b)  Notices. All notices and other communications required or permitted to be given pursuant to this Agreement will be in writing and will be considered as properly given or made (i) if delivered personally or (ii) after the expiration of five days from the date upon which the notice was mailed from within the United States by certified mail, return receipt requested, postage 

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prepaid, (iii) upon receipt by prepaid telegram or facsimile transmission (with written confirmation of receipt) or (iv) after the expiration of the second business day following deposit with an overnight delivery service. All notices given or made pursuant hereto will be so given or made to the parties at the following addresses:
If to you:
[NAME]
[ADDRESS]

If to the Company:
Libbey Inc.
300 Madison Avenue
P.O. Box 10060
Toledo, Ohio 43604
Facsimile: (419) 325-2585
Attention: Secretary 
The address of any party hereto may be changed by a notice in writing given in accordance with the provisions hereof. 
(c)  Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the provision will be severed and enforced to the extent possible or modified in such a way as to make it enforceable, and the invalidity, illegality or unenforceability thereof will not affect the validity, legality or enforceability of the remaining provisions of this Agreement.
(d)  Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of Ohio applicable to contracts executed in and to be performed in that state, except with respect to matters of law concerning the internal corporate affairs of any corporate entity which is a party to or the subject of this Agreement, and as to those matters, the law of the jurisdiction under which the respective entity derives its powers will govern. Further, the arbitration provision in Section 9(k) will be governed solely by the Federal Arbitration Act as will any action to compel, enforce, vacate or confirm proceedings, awards or orders under the arbitration provision. The parties irrevocably agree that all actions to enforce an arbitrator’s award pursuant to Section 9(k) of this Agreement will be instituted and litigated only in federal or state courts sitting in Toledo, Ohio and each of the parties hereby consents to the exclusive jurisdiction and venue of the court and waives any objection based on forum non conveniens.
(e)  Waiver of Jury Trial. THE PARTIES HEREBY WAIVE, RELEASE AND RELINQUISH ANY AND ALL RIGHTS THEY MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY PROVISIONS OF THIS AGREEMENT, ANY CLAIM COVERED BY SECTION 9(L), OR TO ENFORCE AN ARBITRATOR’S AWARD PURSUANT TO SECTION 9(k) OF THIS AGREEMENT.
(f)  Counterparts. This Agreement may be executed in counterparts, each of which will be an original, but all of which will constitute one and the same instrument.
(g)  Entire Understanding. This Agreement including all Exhibits and Recitals hereto which are incorporated herein by this reference, together with the other agreements and documents being executed and delivered concurrently herewith by you, the Company and certain of its affiliates, constitute the entire understanding among all of the parties hereto and supersedes any prior understandings and agreements, written or oral, among them respecting the subject matter within.
(h)  Headings. The headings, titles and subtitles herein are inserted for convenience of reference only and are to be ignored in any construction of the provisions hereof. 
(i)  Amendment. Except as set forth in Sections 7(f) and 9(c), this Agreement will not be changed or amended unless in writing and signed by both you and the Chairman of the Board of Directors or Chief Executive Officer or unless amended by the Company in any manner provided that your rights and benefits will not be diminished by any amendment made by the Company without your written consent to the amendment. 
(j)  Advice of Counsel. You acknowledge (i) that you have consulted with or have had the opportunity to consult with independent counsel of your own choice concerning this Agreement and have been advised to do so by the Company, and (ii) that 

[NAME]
[DATE]
Page 9

you have read and understand this Agreement, are fully aware of its legal effect, and have entered into it freely based on your own judgment.
(k)  Arbitration. The parties agree to submit to arbitration on any dispute, not contrary to law, related to this Agreement, its provisions or interpretation, any aspect of your employment relationship with the Company and any employment-related claims you may wish to assert and agree that the arbitration process will be the exclusive, final and binding means for resolving disputes which the parties cannot themselves resolve. Any arbitration under this Agreement will be conducted in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association (“AAA”) for individual, non-aggregate claims as modified in this Agreement. Arbitration proceedings will take place in Toledo, Ohio, before a single neutral arbitrator, selected in accordance with AAA rules, who will be a lawyer. All arbitration proceedings will be confidential. Neither party will disclose any information about the evidence produced by the other party in the arbitration proceeding, except in the course of judicial, regulatory, or arbitration proceedings, or as may be demanded by government authority. Before making any disclosure permitted by the preceding sentence, a party will give the other party reasonable advance written notice of the intended disclosure and an opportunity to prevent disclosure. Each party will have the right to take the deposition of three individuals and any expert witness designated by the other party. Additional discovery may be had only where the arbitrator so orders, upon a showing of substantial need. Only evidence that is directly relevant to the issues may be obtained in discovery. Each party bears the burden of persuasion on any claim, counterclaim or affirmative defense raised by that party. The arbitration provisions of this Agreement will not prevent the Company from obtaining injunctive relief from a court of competent jurisdiction to enforce any obligations of this Agreement or the continuing obligations of the Agreement for which the Company may obtain provisional relief pending a decision on the merits by the arbitrator. The arbitrator will have authority to award any remedy or relief that a court of the State of Ohio or federal court located in the State of Ohio could grant in an individual action based on applicable law and the claims actually made in the arbitration. The arbitrator may allow reasonable attorney’s fees as a part of the award where the discretion to allow such fees is provided under applicable Ohio or federal law to prevailing parties. Any arbitration award will be accompanied by a written statement containing a summary of the issues in controversy, a description of the award, and an explanation of the reasons for the award. The arbitrator’s award will be final and judgment may be entered upon the award by any court. The administration and arbitrator’s fees for any arbitration will be paid by the Company.
(l)  Attorney’s Fees.  In addition to the attorneys’ fees referred to in Section 9(k), if you prevail in any arbitration or other proceeding including to enforce an arbitration award, or appeal in connection with this Agreement in which attorneys’ fees are not otherwise available to the prevailing party, the Company will reimburse you reasonable attorneys’ fees and other costs within a reasonable time after a final award or judgment in any enforcement proceeding is rendered.
(m)  Coordination with Deferred Compensation Plans. If and to the extent that you have elected, pursuant to the Executive Deferred Compensation Plan (“DCP”) or any other non-qualified deferred compensation plan (the plans being referred to as “deferred compensation plans”), to defer receipt of any of compensation, including without limitation any performance-based equity compensation or other equity-based compensation (as defined in the DCP), the terms of the applicable deferred compensation plan will govern as to the events upon which compensation that is subject to a deferral election is distributed to you and the timing of any such distribution. However, the terms of this Agreement will govern as to whether (and, if so, the extent to which) amounts, including without limitation annual incentive compensation, performance-based equity compensation and other equity-based compensation, that are subject to deferral elections have been earned or deemed earned at the time of any distribution event contemplated by the relevant deferred compensation plan.
(n)  Compliance with Section 409A. To the extent applicable, this Agreement is intended to comply with the provisions of Section 409A. This Agreement will be administered in a manner consistent with this intent. References to Section 409A will include any proposed, temporary or final regulation, or any other formal guidance, promulgated with respect to such section by the U.S. Department of Treasury or the Internal Revenue Service. 

[NAME]
[DATE]
Page 10

If this letter sets forth our agreement on the subject matter hereof, kindly sign and return to the Company the enclosed copy of this letter, which will then constitute our agreement on this subject.
 	
					
	 
	 
	 
	 
	 

	 
	Sincerely,

LIBBEY INC.
 
	 

	 
	By:  
	 
	 

	 
	 
	William A. Foley
	 

	 
	 
	Chief Executive Officer 
	 

	 

Agreed and Accepted as of the
___ day of [MONTH], [YEAR]	
			
	 
___________________________
Name:  [NAME]
	 
	 

[NAME]
[DATE]
Page 11

EXHIBIT A 

GENERAL RELEASE AND WAIVER OF CLAIMS 

The undersigned, __________________, resident of the State of ___ (“Releasor”), in accordance with and pursuant to the terms of Section 4(c) of the letter agreement dated [DATE], between Libbey Inc., a Delaware corporation (the “Company”), and Releasor (the “Agreement”), and the consideration therein provided, except as set forth herein, hereby remises, releases and forever discharges and covenants not to sue, and by these presents does for Releasor and Releasor’s legal representatives, trustees, beneficiaries, heirs and assigns (Releasor and the persons referred to herein, collectively, as the “Releasing Parties”) hereby remise, release and forever discharge and covenant not to sue the Company and its affiliates and the respective Officers, directors, employees, equity holders, agent and representatives of each of them and all of their respective successor and assigns (each a “Released Party” and collectively, the “Released Parties”), of and from any and all manner of actions, proceedings, claims, causes of action, suits, promises, damages, judgments, executions, claims and demands, of any nature whatsoever, and of every kind and description, choate and inchoate, known or unknown, at law or in equity (collectively, “Claims”), which the Releasing Parties, or any of them, now have or ever had, or hereafter can, will or may have, for, upon or by reason of any matter, cause or thing whatsoever, against the Released Parties, and each of them, from the beginning of time to the date hereof;
		
	(i)
	arising from Releasor’s employment, compensation, commissions, deferred compensation plans, insurance, stock ownership, stock options, employee benefits, and other terms and conditions of employment or employment practices of the Company under federal, state or local law or regulation, including, but not limited to the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended; 

		
	(ii)
	relating to the termination of Releasor’s employment or the circumstances surrounding thereof based on any contract, tort, whistleblower, personal injury, retaliatory, wrongful discharge or any other theory under any federal, state or local constitution, law, regulation, common law or otherwise;

		
	(iii)
	relating to payment of any attorneys’ fees incurred by Releasor; and 

		
	(iv)
	based on any alleged discrimination on the basis of race, color, religion, sex, age, national origin, handicap, disability or another category protected by any federal, state or local law or regulation, including, but not limited to, the Age Discrimination in Employment Act (“ADEA”), Title VII of the Civil Rights Act of 1964 (“Title VII”), the Americans with Disabilities Act (“ADA”), the Fair Labor Standards Act (“FLSA”), the Older Workers Benefit Protection Act of 1990 (“OWBPA”), or Executive Order 11246 (as any of these laws or orders may have been amended) or any other similar federal, state or local labor, employment or anti-discriminatory laws.. 

Notwithstanding any other provision of this General Release and Waiver of Claims, Releasor does not release or waive Releasor’s rights and Claims against the Company arising out of, or related to, the obligations of the Company pursuant to the Agreement, Claims for Releasor’s vested benefits under any pension plan, retirement plan and savings plan, rights under any equity participation plan and stock purchase plan and rights to continuation of medical care coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) and any similar state law.
Releasor represents and warrants on behalf of the Releasing Parties that there has been, and there will be, no assignment or other transfer of any right or interest in any Claims which Releasor has or may have against the Released Parties, and Releasor hereby agrees to indemnify and hold each Released Party harmless from any Claims, costs, expenses and attorney’s fees directly or indirectly incurred by any of the Released Parties as a result of any person asserting any right or interest pursuant to his, her or its assignment or transfer of any such right or interest.
Nothing in this General Release will foreclose Releasor’s right to consult or cooperate with any governmental agency.
Releasor agrees that if any Releasing Party hereafter commences, joins in, or in any manner seeks relief through any suit arising out of, based upon, or relating to any of the Claims released hereunder, or in any manner asserts against any Released Party any of the Claims released hereunder, then Releasor will pay to the Released Party, in addition to any all damages and compensation, direct or indirect, all attorney’s fees incurred in defending or otherwise responding to the suit or Claims.
Releasor acknowledges that (i) Releasor has received the advice of legal counsel in connection with this General Release and Waiver of Claims, (ii) Releasor has read and understands that this is a General Release and Waiver of Claims, and (iii) Releasor it intends to be legally bound by the same.

[NAME]
[DATE]
Page 12

Releasor acknowledges that Releasor has been given the opportunity to consider this Release for twenty-one (21) days and has been encouraged and given the opportunity to consult with legal counsel of Releasor’s choosing before signing it. Releasor understands that Releasor will have seven (7) days from the date on which Releasor executes this General Release and Waiver of Claims (as indicated by the date below his signature) to revoke Releasor’s signature and agreement to be bound hereby by providing written notice of revocation to the Company within the seven (7) day period. Releasor further understands and acknowledges this Release will become effective, if not sooner revoked, on the eighth day after the execution hereof by Releasor (the “Effective Date”).
IN WITNESS WHEREOF, Releasor has executed and delivered this General Release and Waiver of Claims on behalf of the Releasing Parties as of the day and year set forth below. 

Dated: _______, 20___. 	
					
	 
	 
	 
	 
	 

	 
	 
	RELEASOR:

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 

	  
	 
	Name:odfl-ex10211_188.htm

EXHIBIT 10.21.1

Old Dominion Freight Line, Inc.

Performance Incentive Plan

(As Amended and Restated Through January 30, 2019)

 

	
1.
	
Purpose

The purpose of the Old Dominion Freight Line, Inc. Performance Incentive Plan, as it may be amended and/or restated (the “PIP”), is to provide selected employees of Old Dominion Freight Line, Inc. or an affiliate thereof (collectively, the “Company”, unless the context otherwise requires) with awards (“awards”) in the form of cash bonuses based upon attainment of pre-established, objective performance goals, thereby promoting a closer identification of the participating employees’ interests with the interests of the Company and its shareholders, and further stimulating such employees’ efforts to enhance the efficiency, profitability, growth and value of the Company.

	
2.
	
Plan Administration

The PIP shall be administered by the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company or a subcommittee of the Committee.  To the extent required by The Nasdaq Stock Market LLC (“Nasdaq”), the Committee shall be comprised of at least two members who meet Nasdaq’s director independence requirements.  In addition to action by meeting in accordance with applicable laws, rules or regulations (or similar guidance), including but not limited to the listing or other rules of any applicable stock exchange (collectively, “Applicable Law”), any action of the Committee with respect to the PIP may be taken by a written instrument signed by all of the members of the Committee, and any such action so taken by written consent shall be as fully effective as if it had been taken by a majority of the members at a meeting duly held and called.  Subject to the terms of the PIP, the Committee shall have full authority in its discretion to take any action with respect to administration of the PIP.  Without limiting the foregoing, the Committee has full authority in its discretion to take any action with respect to the PIP including but not limited to the authority to (i) determine all matters relating to awards, including selection of individuals to be granted awards and all other terms, conditions, restrictions and limitations of an award; and (ii) construe and interpret the PIP and any related documents, to establish and interpret rules and regulations for plan administration and to make all other determinations deemed necessary or advisable for administering the PIP.

The Committee’s authority to grant awards and authorize payments under the PIP shall not restrict the authority of the Committee to grant compensation to employees under any other compensation plan or program of the Company.  Any decision made, or action taken, by the Committee in connection with the administration of the PIP shall be final, binding and conclusive.  Notwithstanding the foregoing, the Committee may delegate the administration of the PIP to one or more of its designees, including specified officers of the Company, provided that such delegation is in accordance with Applicable Law.  In the case of any such delegation, references to the “Committee” herein shall include such designee or designees, unless the context 

 

 

otherwise requires.  No member of the Board or the Committee shall be liable for any action, determination or decision made in good faith with respect to the PIP or any award paid under it.  In addition to such other rights of indemnification and reimbursement as members of the Board and the Committee may have under the Company’s articles of incorporation, bylaws and/or other instrument and/or pursuant to Applicable Law, such individuals shall be indemnified by the Company against all reasonable expenses, including attorneys’ fees, incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal thereof, to which any such individual may be a party by reason of any action taken or failure to act under or in connection with the PIP or any award granted hereunder and against all amounts paid by such individual in a settlement thereof that is approved by the Company’s legal counsel or paid in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be formally determined that such person is liable for gross negligence, bad faith or intentional misconduct; provided, however, that any such individual shall give the Company an opportunity, at its own expense, to defend the same before such individual undertakes to defend such action, suit or proceeding.

	
3.
	
Eligibility

The Participants in the PIP (individually, a “participant,” and collectively, the “participants”) shall be those employees of the Company who are designated from time to time as participants by the Committee.  Eligible participants shall be selected to participate on an annual or other periodic basis as determined by the Committee.  Participation in the PIP for any one performance period does not guarantee that an employee will be selected to participate in any other performance period.  (For the purposes of the PIP, “performance period” shall mean a period established by the Committee during which performance shall be measured to determine if any payment will be made under the PIP.  A performance period may be coincident with one or more months of a fiscal year of the Company.)

Non-employee service providers and non-employee directors are not eligible to participate.

	
4.
	
Nature of Awards

Awards granted under the PIP shall be in the form of cash bonuses. 

	
5.
	
Awards

(a)Grant of Awards:  At the time performance objectives are established for a performance period or performance periods as provided in Section 5(b) herein, the Committee also shall assign to each participant a participation factor applicable for the particular performance period.  A participant’s award, if any, shall be earned based on the attainment of performance objectives approved by the Committee for a specified performance period, as provided in Section 5(b) herein.  During any performance period, no participant may have a maximum participation factor or other award amount in excess of the limitations provided under Section 5(d) herein, nor shall the total award payable to all participants exceed the maximum amount payable as stated in Section 5(d) herein.  The Committee may adjust awards as appropriate for partial achievement of goals, exemplary effort on the part of a participant and/or 

2

 

such other circumstances as may be determined by the Committee and may also make necessary and appropriate adjustments in performance goals.

(b)Performance Objectives:  For each performance period, the Committee shall establish one or more objective performance measures and specific goals for each participant and/or for each group of participants.  The performance objectives established by the Committee shall be objective and based on the Company’s income before tax and the effects, if any, of a change in accounting principle, extraordinary items or discontinued operations (“IBT”).  In addition, the performance objectives may be calculated without regard to extraordinary items.

(c)Earning of Awards:  As soon as practicable after the end of the performance period, the Committee shall determine whether the performance goals for the performance period were achieved and, if so, the Committee shall determine the amount, if any, of the award earned by each participant and such award shall be paid in accordance with Section 5(e) herein (subject, however, to the limitations on awards stated in Section 5(d) herein).

(d)Maximum Award Payable to Participants:  Other provisions of the PIP notwithstanding, (i) the maximum amount of the participation factor to determine cash awards that may be granted under the PIP to any one participant in any one performance period shall not exceed 1.5% of IBT for such period, provided that (ii) the Committee may in its discretion from time to time establish additional participant award limitation(s) based on a multiple(s) of base salary or other factor(s) with respect to all or certain group(s) of participants, but in no event shall amounts payable based on a base salary multiple or other participant award limitation described in Section 5(d)(ii) herein exceed the 1.5% IBT participant award limitation described in Section 5(d)(i) herein.  In addition, the maximum amount of cash awards that may be granted under the PIP to all participants in the aggregate for a performance period shall not exceed 15% of IBT for such period.

(e)Payment of Awards:  An award earned by a participant with respect to a performance period shall be paid to such participant or credited to the participant’s account as soon as practicable following the performance period and determination of the amount of the award.  In any event, amounts payable under the PIP will be paid no later than (i) the date that is 2-1/2 months after the end of the participant’s first taxable year in which the amount ceases to be subject to a substantial risk of forfeiture, or (ii) the date that is 2-1/2 months after the end of the Company’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture, or shall otherwise be structured in a manner to be exempt from, or in compliance with, Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).  The Committee shall have the authority to make adjustments to awards and performance objectives upon the occurrence of certain unusual or nonrecurring events or other similar circumstances.  The Committee shall have the discretion to modify, increase (subject to Section 5(d) herein), reduce or eliminate the amount of an award otherwise earned and payable pursuant to the terms of the PIP to any participant. 

	
6.
	
Termination of Employment and Other Events; Covenants

Unless otherwise determined by the Committee, if a participant dies, retires, is assigned to a different position, is granted a leave of absence, or if the participant’s employment is 

3

 

otherwise terminated prior to payment of an award for a performance period, the participant will forfeit the incentive (and subsequent incentives).  However, the Committee has the discretion to determine whether awards will be paid or forfeited by the participant for a completed performance period, or a pro rata share of the participant’s award paid based on the period of actual participation, if the award would have become earned and payable had the participant’s employment status not changed.  The Committee may require a participant, as a condition to the grant or payment of an award, to have entered into agreements or covenants with the Company obligating the participant to not compete, to not interfere with the relationships of the Company with customers, suppliers or employees in any way, to refrain from disclosing or misusing confidential or proprietary information of the Company, and to take or refrain from taking such other actions adverse to the Company as the Committee may specify.  The form of such agreements or covenants shall be specified by the Committee, which may vary such form from time to time and may require renewal of the agreements or covenants, as then specified by the Committee, in connection with the allocation or payout of any award.

	
7.
	
Change of Control. 

(a)Notwithstanding any other provision in the PIP to the contrary, in the event of a change of control, as defined in Section 7(b) herein, awards will continue to be made in accordance with the PIP’s terms unless the employment of the participant or the PIP is terminated.  In addition, in the event that a participant has entered into an employment agreement, change in control agreement or similar agreement with the Company, the provisions of the PIP shall not be construed to reduce in any way the benefits otherwise payable under such separate plan or agreement.

(b)For the purposes herein, for each participant, a “change of control” shall have the definition and will be deemed to have occurred on the earliest of the following dates which occurs after the Effective Date:

(i)the date any person or group of persons (as defined in Section 13(d) and 14(d) of the Securities Exchange Act of 1934) together with its affiliates, is or becomes (or publicly discloses that such person or group is or has become), directly or indirectly, the “beneficial owner” (as defined in Rule 13d-3 promulgated under the Securities Exchange Act of 1934) of securities of the Company representing thirty-five percent (35% ) or more of the combined voting power of the Company’s then outstanding voting securities; provided, however, that the event described in this subparagraph (i) shall not be deemed to be a change of control by virtue of the beneficial ownership, or the acquisition of beneficial ownership, of voting securities by (A) any person directly or indirectly controlled by the Company, including any employee benefit plan sponsored or maintained by the Company or by a person controlled by the Company; (B) any underwriter (as such term is defined in Section 2(a)(11) of the Securities Act of 1933) that beneficially owns voting securities temporarily in connection with an offering of such securities; or (C) any member of the family of Earl E. Congdon or John R. Congdon unless David S. Congdon, acting in good faith, provides written notice to the Company that David S. Congdon believes, and within twenty (20) business days after the Company’s receipt of David S. Congdon’s notice a majority of the independent members of the Board determines, that the beneficial ownership of voting securities by such family 

4

 

member creates a substantial threat to corporate policy and effectiveness.  For the purposes of this clause (C) above, “family” means any lineal descendent, including adoptive relationships, of Earl E. Congdon or John R. Congdon, any spouse of the foregoing and any trust established by or for the benefit of any of the foregoing, and “independent” shall have the meaning set forth in the corporate governance rules of the principal exchange on which the Company’s common stock is listed; or

(ii)the date there shall have been a change in a majority of the Board within a twelve (12)-month period unless the nomination for election by the Company’s shareholders of each new director was approved by the vote of two-thirds (2/3) or more of the members of the Board (or a committee of the Board, if nominations are approved by a Board committee rather than the Board) then still in office who were in office at the beginning of the twelve (12)-month period; or

(iii)the date of the consummation of a merger, share exchange or consolidation with any other corporation or entity regardless of which entity is the survivor, other than a merger, share exchange or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or being converted into voting securities of the surviving or acquiring entity) at least sixty percent (60%) of the combined voting power of the voting securities of the Company or such surviving or acquiring entity outstanding immediately after such merger, share exchange or consolidation; or

(iv)the effective date of the sale or disposition by the Company of all or substantially all of the Company’s assets.

	
8.
	
No Right to Employment

Nothing contained in this PIP nor any action taken pursuant to the PIP shall be construed as conferring upon any participant the right or imposing upon him the obligation to continue in the employment of or service to the Company, nor shall it be construed as imposing upon the Company the obligation to continue the employment or service of a participant.  Except as may be otherwise provided in the PIP or determined by the Committee, all rights of a participant with respect to an award and distribution of any cash payment subject to an award shall terminate and be forfeited upon a participant’s termination of employment or service with the Company.

	
9.
	
Amendments

The Board may amend, discontinue or terminate the PIP in whole or in part at any time, subject to (a) shareholder approval of any amendments to the PIP if required by Applicable Law; and (b) participant consent if such action would materially adversely affect any award earned and payable under the PIP at that time.  However, notwithstanding the foregoing, the Board shall have unilateral authority to amend the PIP and any award (without participant consent) to the extent necessary to comply with Applicable Law or changes to Applicable Law (including but in no way limited to Code Section 409A, related regulations and other guidance).

 

5

 

	
10.
	
Effective Date

The PIP became effective on January 1, 2009 (the “Effective Date”), following approval by the shareholders of the Company.  The PIP was amended and restated effective January 30, 2019, and shall continue until such time that it is terminated or suspended by the Board.

	
11.
	
Miscellaneous

(a)Offset and Recoupment:  The Committee shall have authority (subject to any Code Section 409A considerations) to reduce the amount of any payment otherwise payable to a participant under the PIP by the amount of any obligation of the participant to the Company that is or becomes due and payable and any compensation payable to a participant under the PIP will be subject to any recoupment, “clawback” or similar Company policy or arrangement, and, by becoming a participant in the PIP, each participant will be deemed to have consented to such offset and recoupment restrictions.

(b)Withholding:  Any tax or other amount required to be withheld by any government authority shall be deducted from each award.

(c)Nonassignability:  Unless the Committee determines otherwise, awards and any other rights under the PIP shall not be transferred, pledged or assigned, except by designation of a beneficiary or by will or the laws of intestate succession.

(d)No Trust; Unfunded Plan:  The obligation of the Company to make payments hereunder shall constitute a liability of the Company to the participants.  Such payments shall be made from the general funds of the Company, and the Company shall not be required to establish or maintain any special or separate fund, or otherwise to segregate assets to assure that such payments shall be made, and neither the participants nor their beneficiaries shall have any interest in any particular assets of the Company by reason of its obligations hereunder.  Nothing contained in the PIP shall create or be construed as creating a trust of any kind or any other fiduciary relationship between the Company and the participants or any other person or constitute a guarantee that the assets of the Company shall be sufficient to pay any benefits to any person.  To the extent that any person acquires a right to receive payments from the Company hereunder, such right shall be no greater than the right of an unsecured creditor of the Company.

(e)Impact of Plan Award on other Plans:  Awards granted pursuant to the PIP shall not be treated as compensation for purposes of any other compensation or benefit plan, program or arrangement of the Company, unless (i) such other plan, program or arrangement provides that compensation in the form of awards payable under the PIP are to be considered as compensation thereunder, or (ii) the Committee so determines.  The adoption of the PIP shall not affect any other incentive or other compensation plans or programs in effect for the Company, nor shall the PIP preclude the Company from establishing any other forms of incentive or other compensation for employees of the Company.

(f)Facility of Payments:  If a participant or any other person entitled to receive an award under this PIP (the “recipient”) shall, at the time payment of any such amount is due, be incapacitated so that such recipient cannot legally receive or acknowledge receipt of the 

6

 

payment, then the Committee, in its sole and absolute discretion, may direct that the payment be made to the legal guardian, attorney-in-fact or person with whom such recipient is residing, and such payment shall be in full satisfaction of the Company’s obligation under the PIP with respect to such amount.

(g)Governing Law and Venue:  The PIP shall be construed and its provisions enforced and administered in accordance with the laws of the State of North Carolina, without regard to the principles of conflicts of laws, and in accordance with applicable federal laws. In any action, special proceeding or other proceeding that may be brought arising out of, in connection with, or by reason of the PIP, the laws of the State of North Carolina shall be applicable and shall govern to the exclusion of the law of any other forum. Any action, special proceeding or other proceeding with respect to the PIP shall be brought exclusively in the federal district court for the Middle District of North Carolina or state court located in Guilford County, North Carolina.  By participating in the PIP, each participant shall be deemed to have (i) irrevocably consented to the exclusive jurisdiction of those courts, (ii) submitted to personal jurisdiction in the State of North Carolina, (iii) irrevocably waived any objection, including any objection based on lack of jurisdiction, improper venue or forum non conveniens, which the participant may now or hereafter have to the bringing of any action or proceeding in such jurisdiction in respect to the PIP or any transaction related hereto and (iv) acknowledged and agreed that any service of legal process by mail in the manner provided for notices under the PIP constitutes proper legal service of process under applicable law in any action or proceeding under or in respect to the PIP. 

(h)Adjustments:  The Committee is authorized at any time before, during or after the completion of a performance period, in its sole discretion, to adjust or modify the terms of awards or performance objectives, or specify new awards, (i) in the event of any large, special and non-recurring dividend or distribution, recapitalization, reorganization, merger, consolidation, spin-off, combination, repurchase, share exchange, forward or reverse split, stock dividend, liquidation, dissolution or other similar corporate transaction, (ii) in recognition of any other unusual or nonrecurring event affecting the Company or the financial statements of the Company (including events described in (i) above as well as acquisitions and dispositions of businesses and assets and extraordinary items determined under generally accepted accounting principles), or (iii) in response to changes in Applicable Law, accounting principles, and tax rates (and interpretations thereof) or changes in business conditions or the Committee’s assessment of the business strategy of the Company.  

(i)Compliance with Code Section 409A:  To the extent possible, awards granted under the PIP are designed to be exempt from (or comply with) Code Section 409A.  The PIP shall at all times be construed in a manner designed to comply with, or be exempt from, Code Section 409A and should any provision be found not in compliance with or exempt from Code Section 409A, the PIP and/or awards shall, to the extent practicable, be amended as recommended by legal counsel to achieve compliance with, or an exemption from, Code Section 409A.  Without in any way limiting the effect of the foregoing, (i) in the event that exemption from or compliance with Code Section 409A requires that any special terms, provisions or conditions be included in the PIP or any award, then such terms, provisions and conditions shall, to the extent practicable, to be deemed to be made a part of the PIP or award, as applicable; and (ii) terms used in the PIP or an award shall be construed in accordance with Code Section 409A 

7

 

if and to the extent required.  In the event the participant is a “specified employee” (as determined in accordance with Company procedures and Code Section 409A requirements), then, to the extent required under Code Section 409A, a distribution due to separation from service may not be made before the date that is six months after the participant’s separation from service (or, if earlier, the date of the participant’s death).  Furthermore, in such event, the first six months of any such payments of deferred compensation that are required to be paid in installments shall be paid at the beginning of the seventh month following the participant’s separation from service, and all remaining installment payments shall be made as would ordinarily have been made under the provisions of the PIP or other applicable plan.  For purposes of the limitations on nonqualified deferred compensation under Code Section 409A, each payment of compensation under the PIP shall be treated as a separate payment of compensation for purposes of applying Code Section 409A.  The Committee has no responsibility to take, or to refrain from taking, any actions in order to achieve a certain tax result for any participant.  Further, in the event that the PIP or any award shall be deemed not to comply with (or be exempt from) Code Section 409A, then neither the Company, the Board, the Committee nor its or their designees or agents shall be liable to any participant or other persons for actions, decisions or determinations made in good faith.

(j)Restrictions on Awards:  Notwithstanding any other PIP provision to the contrary, the Company shall not be obligated to make any distribution of benefits under the PIP or take any other action, unless such distribution or action is in compliance with Applicable Law (including but not limited to applicable requirements of the Code).

(k)Gender and Number:  Where the context admits, words in any gender shall include any other gender, words in the singular shall include the plural and words in the plural shall include the singular.

(l)Severability:  If any provision of the PIP shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the PIP, and the PIP shall be construed and enforced as if the illegal or invalid provision had not been included.

(m)Binding Effect:  The PIP shall be binding upon the Company, its successors and assigns, and participants, their legal representatives, executors, administrators and beneficiaries.

 

 

[Signature Page to Follow]

 

8

 

This Old Dominion Freight Line, Inc. Performance Incentive Plan, as Amended and Restated through January 30, 2019, has been executed on behalf of the Company effective as of the 30th day of January, 2019.

OLD DOMINION FREIGHT LINE, INC.

 

 

By: /s/ Greg C. Gantt

Name:Greg C. Gantt 

Title:President and Chief Executive Officer

 

 

 

Attest:

 

 

By: /s/ Ross H. Parr

Name:Ross H. Parr

Title:Senior Vice President – Legal Affairs, General Counsel and Secretary

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