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Exhibit 10.2

SEVERANCE AND CHANGE-IN-CONTROL AGREEMENT

THIS SEVERANCE AND CHANGE-IN-CONTROL AGREEMENT (this “Agreement”), dated as of _____________________, 2021 (the “Effective Date”), is made by and between PROG Holdings, Inc., a corporation organized under the laws of the State of Georgia (“PROG”) and [●] (“Executive”).
WHEREAS, the Board of Directors of PROG (the “Board”) has determined that it is in the best interests of PROG and its stockholders to assure that PROG and its affiliates will have the continued dedication and objectivity of Executive, notwithstanding the possibility, threat or occurrence of a termination of employment or the occurrence of a Change in Control (as defined hereinbelow) of PROG; 
WHEREAS, the Board believes that it is in the best interests of PROG and its stockholders to provide Executive with an incentive to continue Executive’s employment and to motivate Executive to maximize the value of PROG for the benefit of its stockholders;
WHEREAS, the Executive is employed by Prog Leasing, LLC, a subsidiary of PROG; and
WHEREAS, the Board further believes that it is imperative to provide Executive with certain severance benefits upon Executive’s termination of employment and with certain additional benefits upon a Change in Control to provide Executive with enhanced financial security and incentive to remain with PROG and its affiliates.
NOW, THEREFORE, in consideration of the promises, agreements and conditions contained in this Agreement, PROG and Executive agree as follows:
SECTION I
DEFINITIONS
For the purposes of this Agreement the following definitions shall apply:
I.1“Accrued Obligations” means the sum of (a) Executive’s Annual Salary through the Date of Termination to the extent not already paid, and (b) Executive’s business expenses that are reimbursable in accordance with the Company Group’s policies and for which Executive submits for reimbursement within thirty (30) calendar days following the Date of Termination, but have not been reimbursed by the Company Group as of the Date of Termination. 
I.2“Affiliate” means any entity controlled by, controlling, or under common control with, PROG or the Company.
I.3“Annual Bonus” means Executive’s annual bonus under the Company’s or an Affiliate’s annual bonus program, as in effect from time to time, in which Executive is covered, if any.

I.4 “Annual Salary” means Executive’s annual base salary, exclusive of any bonus pay, commissions or other additional compensation, in effect on the Date of Termination.
I.5“Cause” means:
(a)the commission by Executive of an act of fraud, embezzlement, theft or proven dishonesty, or any other illegal act or practice (whether or not resulting in criminal prosecution or conviction);
(b)the willful engaging by Executive in misconduct which is deemed by the Board, in good faith, to be materially injurious to any member of the Company Group, monetarily or otherwise; or
(c)the willful and continued failure or habitual neglect by Executive to perform Executive’s duties with the Company Group, as applicable substantially in accordance with the operating and personnel policies and procedures of the Company Group generally applicable to all of their respective employees.
No act or failure to act by Executive shall be deemed to be “willful” unless done or omitted to be done by Executive not in good faith and without reasonable belief that Executive’s action or omission was in the best interest of the Company Group. “Cause” under (a), (b) or (c) shall be determined by the Board in its sole discretion.
I.6“Change in Control” means:
(a)The acquisition (other than from PROG) by any person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended (but without regard to any time period specified in Rule 13d-3(d)(l)(i))), of thirty-five percent (35%) or more of the combined voting power of then outstanding securities of PROG entitled to vote generally in the election of directors (the “Outstanding PROG Voting Securities”); excluding, however, (i) any acquisition by PROG or (ii) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by any member of the Company Group;
(b)A majority of the members of the Board is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election; or
(c)Consummation by PROG of a reorganization, merger, or consolidation or sale of all or substantially all of the assets of PROG (“Transaction”); excluding, however, a Transaction pursuant to which all or substantially all of the individuals or entities who are the beneficial owners, respectively, of the Outstanding PROG Voting Securities immediately prior to such Transaction will beneficially own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the outstanding securities of such corporation entitled to vote generally in the election of directors of the corporation resulting from such Transaction (including, without limitation, a corporation which as a result of such Transaction owns PROG 
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or all or substantially all of PROG’s assets either directly or indirectly) in substantially the same proportions relative to each other as their ownership, immediately prior to such Transaction, of the Outstanding PROG Voting Securities.
Provided, however, a Change in Control shall not be deemed to occur unless the Transaction also constitutes a change in the ownership or effective control of PROG or a change in the ownership of a substantial portion of the assets of PROG, each as defined in Section 409A(a)(2)(A)(v) of the Code and the regulations promulgated thereunder.
I.7“Change in Control Protection Period” means the period commencing on a Change in Control and ending on the second anniversary thereof.
I.8“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended from time to time.
I.9“Code” means the Internal Revenue Code of 1986, as amended from time to time.
I.10“Company Group” means PROG, the Company and their respective Affiliates.
I.11 “Date of Termination” means the effective date of Executive’s termination of employment with the Company Group.
I.12“Disability” shall be deemed the reason for the termination by the Company Group of Executive’s employment if Executive, due to physical or mental injury or illness, is unable to perform the essential functions of Executive’s position with or without reasonable accommodation for a period of one hundred eighty (180) days, whether or not consecutive, occurring within any period of twelve (12) consecutive months, subject to any limitation imposed by federal, state or local laws, including, without limitation, the Americans with Disabilities Act.  Eligibility for disability benefits under any policy for long-term disability benefits provided to Executive by the Company Group, or a determination of total disability by the Social Security Administration, shall conclusively establish Executive’s Disability. Any purported termination for Disability that does not follow the notice provisions set forth in Section 1.15 shall be deemed not to be a termination for Disability.
I.13“Good Reason” means, without Executive’s express written consent, the occurrence of any of the following circumstances:
(a)A material diminution in Executive’s Annual Salary other than as a result of an across-the-board base salary reduction similarly affecting other executives of the Company;
(b)A material diminution in Executive’s authority, duties, or responsibilities;
(c)A material change in the geographic location at which Executive must perform services for the Company Group (for this purpose, the relocation of Executive’s principal office location to a location more than fifty (50) miles from its current location will be deemed to be material); or
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(d)A material breach of this Agreement by PROG;
provided that any of the events described above shall constitute Good Reason only if (i) Executive provides PROG written notice of the existence of the event or circumstances constituting Good Reason (with sufficient specificity for PROG to respond to such claim) within sixty (60) days of the initial existence of such event or circumstances, (ii) Executive cooperates in good faith with the Company Group’s efforts to cure such event or circumstance for a period not less than thirty (30) days following Executive’s notice to PROG (the “Cure Period”), (iii) notwithstanding such efforts, the Company Group fails to cure such event or circumstances prior to the end of the Cure Period, and (iv) Executive terminates employment with the Company Group within sixty (60) days after the end of the Cure Period.
I.14“Notice of Termination” means the written notice of termination of Executive’s employment that is communicated in accordance with Section VIII of the Agreement.  If the Company Group terminates Executive for Cause or Disability, the Notice of Termination shall specify in reasonable detail the grounds for the termination for Cause or Disability; provided that Executive’s employment shall terminate immediately upon Executive’s death and a Notice of Termination shall not be required.
I.15“Section 409A” shall mean Section 409A of the Code and any proposed, temporary or final regulations, or any other guidance, promulgated with respect to such Section 409A by the U.S.  Department of Treasury. 
I.16“Target Bonus” means Executive’s annual target bonus under the Company’s or Affiliate’s annual bonus program, as in effect from time to time, in which Executive is covered, if any.
SECTION II
TERM OF AGREEMENT
II.1This Agreement shall become effective on the Effective Date and shall continue in effect for a three (3) year term (the “Term”).  To the extent not previously terminated, the Term shall be automatically renewed for successive one (1) year periods upon the terms and conditions set forth herein, commencing at the end of the initial Term, and on each annual anniversary thereafter, unless either party gives the other party notice at least ninety (90) calendar days prior to the end of such initial or applicable renewal Term that the Term shall not be so extended.  For purposes of this Agreement, any reference to the “Term” of this Agreement shall include the original term and any renewal thereof.  Notwithstanding the foregoing, upon the execution of a definitive agreement for a Change in Control or the consummation of a Change in Control, the Term shall be automatically extended so that the Term shall continue in full force and effect until the second anniversary of the consummation of the Change in Control.  If the definitive agreement for the Change in Control is terminated prior to consummation, the automatic extension described in the previous sentence shall not apply. Executive’s employment with the Company is “at will” and may be terminated by the Company for any reason in its sole and absolute discretion in accordance with any applicable provision of Section III and the payment or provision of such benefits as may be required under this Agreement.
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SECTION III
SEVERANCE PAYMENTS AND BENEFITS
III.1Change in Control Protection Period.  
(a)During the Term, if, during a Change in Control Protection Period, (1) the Company Group shall terminate Executive’s employment other than for Cause, Disability or death, or (2) Executive shall terminate employment for Good Reason, then PROG shall pay or provide the following amounts and benefits to Executive, in addition to the Accrued Obligations:
(i)Severance Payments.  On the sixtieth (60th) day following the Date of Termination, Executive will be paid a lump sum payment in an amount equal to two (2) times the sum of (x) Executive’s Annual Salary in effect immediately prior to the Date of Termination or, if higher, immediately prior to the Change in Control, plus (y) Executive’s Target Bonus in effect immediately prior to the Date of Termination or, if higher, immediately prior to the Change in Control.
(ii)Bonus for Year of Termination.  On the sixtieth (60th) day following the Date of Termination, Executive will be paid a lump sum cash payment in an amount equal to the product of (x) the average Annual Bonus earned by Executive for the two (2) calendar years immediately preceding the year in which the Date of Termination occurs, and (y) a fraction, the numerator of which is the number of days from January 1 of the year during which the Date of Termination occurs to the Date of Termination and the denominator of which is three hundred and sixty five (365). 
(iii)COBRA Payments.  On the sixtieth (60th) day following the Date of Termination, Executive will be paid a lump sum payment in an amount equal to the product of (x) Executive’s monthly premium amount for health insurance continuation coverage for Executive and Executive’s eligible dependents under COBRA (based on the monthly premium rate for such coverage in effect on the Date of Termination) and (y) twenty four (24).
(iv)Stock Options and Other Equity Awards.  As of the Date of Termination, any and all outstanding stock options, stock appreciation rights, restricted stock units and other equity based awards granted to Executive under any PROG stock plan shall become fully vested (to the extent not already then vested) and exercisable or settled, as applicable, to the extent provided under the terms of the applicable PROG stock plan and award agreements.
In the event of Executive’s death following the Date of Termination and before all payments or benefits Executive is entitled to receive under this Section 3.1 have been paid, such 
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unpaid amounts will be paid to Executive’s estate in a lump-sum payment within thirty (30) days following Executive’s death.
(b)If (i) Executive is terminated by the Company Group without Cause, or an event constituting Good Reason occurs, following the public announcement of a definitive agreement that, when consummated, would constitute a Change in Control, and (ii) such Change in Control is consummated, then the termination or event constituting Good Reason will be deemed to occur within the Change in Control Protection Period, and Executive may exercise Executive’s rights under Section 3.1 following the consummation of such Change in Control.
III.2Outside of Change in Control Protection Period.  
(a)If, during the Term, (1) the Company Group shall terminate Executive’s employment other than for Cause, Disability or death, or (2) Executive shall terminate employment for Good Reason, in either case other than during a Change in Control Protection Period, then PROG shall pay or provide the following amounts and benefits to Executive, in addition to the Accrued Obligations:
(i)Annual Salary and Target Bonus Continuation Payments. Commencing on the Company’s first normal payroll date that is on or immediately follows the sixtieth (60th) day following the Date of Termination, Executive will (x) continue to receive Executive’s Annual Salary in effect immediately prior to the Date of Termination for a period of twenty four (24) months following the Date of Termination, and (y) be paid an amount equal to one-twelfth (1/12th) of the Executive’s Target Bonus in effect on the Date of Termination in each of the twenty four (24) months following the Date of Termination, payable in normal payroll periods, in the same manner as it was paid as of the Date of Termination, and no less frequently than monthly; provided, however, any payments that would otherwise be payable during the period following the Date of Termination until the payment commencement date shall be accumulated without interest and paid on such commencement date.  In the event of Executive’s death following the Date of Termination and before all payments or benefits Executive is entitled to receive under this Section 3.2 have been paid, such unpaid amounts will be paid to Executive’s estate in a lump-sum payment within thirty (30) days following Executive’s death.
(ii)Stock Options, RSUs and Performance Shares with Annual Vesting.  Executive shall vest on the Date of Termination in a pro rata portion of any stock options, restricted stock units and performance shares granted under any PROG stock plan that are subject to annual vesting (to the extent not already then vested) and that: (x) were granted at least twelve (12) months prior to the Date of Termination and (y) would otherwise vest on the next anniversary of their grant date, based on a fraction, the numerator of which is the number of days that Executive was employed during the twelve (12) month vesting period in which the Date of Termination occurs and the denominator of which is three hundred and sixty five (365); provided, however, that if Executive was employed for at least one-hundred and eighty (180) days during the twelve (12) month vesting period in which the Date of Termination occurs, the fraction shall be one.  Any stock options that vest under this Section 3.2(a)(ii) shall be exercisable to the extent provided under the terms of (and are otherwise subject to) the applicable 
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PROG stock plan and award agreements.  Any restricted stock units and/or performance shares that vest under this Section 3.2(a)(ii) shall be paid on the Company’s first normal payroll date that is on or immediately follows the sixtieth (60th) day following the Date of Termination and are otherwise subject to the terms of the applicable PROG stock plan and award agreements.  For the avoidance of doubt, stock options, restricted stock units and performance shares that were granted less than twelve (12) months prior to the Date of Termination shall not vest under this Section 3.2(a)(ii) and stock options, restricted stock units and performance shares that would not otherwise vest on the next anniversary of the grant date shall not vest under this Section 3.2(a)(ii).  Further, any performance shares shall only be vested to the extent the performance measures are actually satisfied and/or only to the extent that other similarly situated executives are paid out on performance shares for the applicable performance period.
(iii)Performance Shares without Annual Vesting.  Executive shall vest in a pro rata portion of any performance shares granted under any PROG stock plan (to the extent not already then vested) and that (x) were granted at least twelve (12) months prior to the Date of Termination and (y) are subject to a performance period greater than twelve (12) months, based on a fraction, the numerator of which is the number of days that Executive was employed during the performance period in which the Date of Termination occurs and the denominator of which is the total number of days in the performance period.  Any performance shares that vest under this Section 3.2(a)(iii) shall be paid at the same time as such performance shares are paid for other executives and are otherwise subject to the terms of the applicable PROG stock plan and award agreements, including the satisfaction of all required performance measures.  For the avoidance of doubt, performance shares that were granted less than twelve (12) months prior to the Date of Termination shall not vest under this Section 3.2(a)(iii) and performance shares shall only be vested to the extent the performance measures are actually satisfied and/or only to the extent that other similarly situated executives are paid out on performance shares for the applicable performance period. 
III.3Voluntary Resignation without Good Reason.  If, during the Term, Executive voluntarily resigns Executive’s employment without Good Reason, Executive will be paid the Accrued Obligations.  No additional amounts or benefits shall be payable or provided under this Agreement. 
III.4Termination Due to Disability or Death.  If Executive’s employment with the Company Group is terminated due to Executive’s Disability or death, Executive (or the Executive’s estate, if applicable) will be paid the Accrued Obligations and an additional amount equal to the product of (x) Executive’s Annual Bonus for the year in which the Date of Termination occurs based on actual results, and (y) a fraction, the numerator of which is the number of days from January 1 of the year during which the Date of Termination occurs to the Date of Termination and the denominator of which is three hundred and sixty five (365).  The pro rata Annual Bonus, if any, will be paid at the same time such amount would otherwise have been paid to Executive. No additional amounts or benefits shall be payable or provided under this Agreement.
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III.5Release.  Notwithstanding anything contained in this Agreement to the contrary, PROG shall not be obligated to provide any benefits to Executive under Section 3.1, 3.2, 3.3 or 3.4 hereof unless: (a) Executive first executes no later than forty-five (45) calendar days after the Date of Termination a general release of the Company Group and their respective employees, officers and directors in such form as is requested by the Company Group; (b) Executive does not revoke such general release within seven (7) days after signature; and (c) the release becomes effective and irrevocable in accordance with its terms.  
III.6Exclusive Severance Benefit.  Notwithstanding anything contained in this Agreement to the contrary, and except as specifically provided below, any severance payments or benefits received by Executive pursuant to this Agreement shall be in lieu of any benefits under the Executive Severance Pay Plan of PROG Holdings, Inc. (as may be in effect from time to time) or any other severance or reduction-in-force plan, program, policy, agreement or other similar arrangement maintained by the Company Group from time to time and in lieu of any severance or separation pay benefit that may be required under applicable law; provided, however, the exclusion provided in this Section 3.6 shall not include any equity award agreement, retirement or deferred compensation plan or similar plan or agreement which may provide benefits upon the termination of Executive’s employment. Executive shall not be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under this Agreement.
III.7Tax Withholding.  The Company Group shall deduct from payments to be paid to Executive or any beneficiary all federal, state and local withholding and other taxes and charges required to be deducted under applicable law.
III.8Coordination with WARN Act.  To the extent that the Company Group determines that Executive’s termination may be subject to the Worker Adjustment and Retraining Notification Act or any other similar federal, state or local law regarding mass employment separations (collectively, “WARN Act”), notwithstanding any other provision of this Agreement, the Company Group shall endeavor to comply with the WARN Act, to the extent applicable, by giving notice of the termination (“WARN Act Notice”) at least sixty (60) days in advance of the termination date.  The period between the WARN Act Notice date and the termination date is hereinafter referred to as “WARN Act Notice Period”. The Company Group’s determination that Executive may be subject to the WARN Act and/or any corresponding actions taken or statements made are not an admission or indication that any WARN Act or WARN Act obligations are applicable, triggered, invoked or owed and do not waive or otherwise hinder the Company Group’s ability to argue the WARN Act does not apply or to take other similar positions.
The Company Group may excuse Executive from work during all or part of the WARN Act Notice Period and provide Executive with a payment or payments intended to satisfy all or part of any potential WARN Act obligations, including those during the WARN Act Notice Period.  If this occurs, any payments or benefits under this Agreement shall be reduced and offset by and may be coordinated with any payment(s) Executive receives during the WARN Act 
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Notice Period.  After any reduction and offset, PROG will provide the remaining benefits (subject to the release requirement described in Section 3.5) to Executive.
If Executive is not excused from work following the WARN Act Notice date, the regular salary or wages paid to Executive during the WARN Act Notice Period will constitute Executive’s usual compensation and not a benefit under this Agreement.
III.9No Duplication.  In no event shall payments and benefits provided in accordance with this Agreement be made in respect of more than one of Section 3.1, 3.2, 3.3 or 3.4.
SECTION IV
TAX INFORMATION
IV.1Section 280G Parachute Payments.  Notwithstanding any provision of this Agreement to the contrary, if any payment or benefit to be paid or provided hereunder would be a “Parachute Payment,” within the meaning of Section 280G of the Code, or any successor provision thereto, but for the application of this sentence, then the payments and benefits to be paid or provided hereunder shall be reduced to the minimum extent necessary (but in no event to less than zero) so that no portion of any such payment or benefit, as so reduced, constitutes a Parachute Payment; provided, however, that the foregoing reduction shall not be made if the total of the unreduced aggregate payments and benefits to be provided to Executive, determined on an after-tax basis (taking into account the excise tax imposed pursuant to Section 4999 of the Code, or any successor provision thereto, any tax imposed by any comparable provision of state law, and any applicable federal, state and local income taxes), exceeds by at least ten percent (10%) the total after-tax amount of such aggregate payments and benefits after application of the foregoing reduction. The determination of whether any reduction in such payments or benefits to be provided hereunder is required pursuant to the preceding sentence shall be made at the expense of the Company Group, if requested by Executive or the Company, by the Company Group’s independent accountants.  The fact that Executive’s right to payments or benefits may be reduced by reason of the limitations contained in this Section 4.1 shall not of itself limit or otherwise affect any other rights of Executive under this Agreement. In the event that any payment or benefit intended to be provided hereunder is required to be reduced pursuant to this Section 4.1 and no such payment or benefit qualifies as a “deferral of compensation” within the meaning of and subject to Section 409A (“Nonqualified Deferred Compensation”), Executive shall be entitled to designate the payments and/or benefits to be so reduced in order to give effect to this Section 4.1. The Company Group shall provide Executive with all information reasonably requested by Executive to permit Executive to make such designation.  In the event that any payment or benefit intended to be provided hereunder is required to be reduced pursuant to this Section 4.1 and any such payment or benefit constitutes Nonqualified Deferred Compensation or Executive fails to elect an order in which payments or benefits will be reduced pursuant to this Section 4.1, then the reduction shall occur in the following order: (a) reduction of cash payments described in Sections 3.1 and 3.2 (with such reduction being applied to the payments in the reverse order in which they would otherwise be made, that is, later payments shall be reduced before earlier payments); (b) cancellation of acceleration of vesting on any equity awards for which the exercise price exceeds the then fair market value of the underlying equity; and (c) 
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cancellation of acceleration of vesting of equity awards not covered under (b) above. Within any category of payments and benefits (that is, (a), (b) or (c)), a reduction shall occur first with respect to amounts that are not Nonqualified Deferred Compensation within the meaning of Section 409A and then with respect to amounts that are. In the event that acceleration of vesting of equity awards is to be cancelled, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of such equity awards, that is, later equity awards shall be canceled before earlier equity awards.
IV.2Section 409A.
(a)Section 409A imposes payment restrictions on Nonqualified Deferred Compensation (potentially including payments owed to Executive upon termination of employment).  Failure to comply with these restrictions could result in negative tax consequences to Executive.  It is PROG’s intent that this Agreement be exempt from the application of, or otherwise comply with, the requirements of Section 409A.  Specifically, any taxable benefits or payments provided under this Agreement are intended to be separate payments that qualify for the “short-term deferral” exception to Section 409A to the maximum extent possible and, to the extent they do not so qualify, are intended to qualify for the separation pay exceptions to Section 409A to the maximum extent possible.  To the extent that none of these exceptions applies, and to the extent that the Company Group determines it is necessary to comply with Section 409A (e.g., if Executive is a “specified employee” within the meaning of Section 409A), then notwithstanding any provision in this Agreement to the contrary, all amounts that would otherwise be paid or provided to Executive during the first six months following the Date of Termination shall instead be accumulated through and paid or provided (without interest) on the first business day that is more than six (6) months after Executive’s separation from service.
(b)A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Section 409A and Executive is no longer providing services (at a level that would preclude the occurrence of a “separation from service” within the meaning of Section 409A) to the Company Group as an employee or consultant, and for purposes of any such provision of this Agreement, references to the “Date of Termination,” a “termination,” “termination of employment” or like terms shall mean “separation from service” within the meaning of Section 409A.
(c)Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company Group.  In the event the payment period under this Agreement for any nonqualified deferred compensation commences in one calendar year and ends in a second calendar year, the payments shall not be paid (or installments commenced) until the later of the first payroll date of the second calendar year, or the date that the release described in Section 3.5 becomes effective and irrevocable, to the extent necessary to comply with Section 
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409A.  For purposes of Section 409A, Executive’s right to receive installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.
(d)Although the Company Group will use its best efforts to avoid the imposition of taxation, interest and penalties under Section 409A, the tax treatment of the benefits provided under this Agreement is not warranted or guaranteed.  Neither the Company Group nor their respective directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by Executive (or any other individual claiming a benefit through Executive) as a result of this Agreement.
SECTION V
RESTRICTIVE COVENANTS
V.1Executive acknowledges and agrees that the restrictions set forth in this Section V are reasonable and necessary to protect the legitimate business interests of the Company Group, and they will not impair or infringe upon Executive’s right to work or earn a living when Executive’s employment with the Company Group ends for any reason, and (i) Executive (1) served the Company Group as a Key Employee; and/or (2) served the Company Group as a Professional; and/or (3) customarily and regularly solicited Customers and/or Prospective Customers for the Company Group; and/or (4) customarily and regularly engaged in making sales or obtaining orders or contracts for products or services to be provided or performed by others in the Company Group; and/or (5) (A) had a primary duty of managing a department or subdivision of the Company Group, (B) customarily and regularly directed the work of two or more other employees, and (C) had the authority to hire or fire other employees; and/or (ii) Executive’s position was a position of trust and responsibility with access to (1) Confidential Information, (2) Trade Secrets, (3) information concerning Employees of the Company Group, (4) information concerning Customers of the Company Group, and/or (5) information concerning Prospective Customers of the Company Group.
(a)Trade Secrets and Confidential Information.  Executive shall not: (i) use, disclose, reverse engineer, divulge, sell, exchange, furnish, give away, or transfer in any way the Trade Secrets or the Confidential Information for any purpose other than the Company Group’s Business, except as authorized in writing by the Company Group; (ii) retain any Trade Secrets or Confidential Information, including any copies existing in any form (including electronic form) that are in Executive’s possession or control; or (iii) destroy, delete, or alter the Trade Secrets or Confidential Information without the Company Group’s prior written consent.  The obligations under this subsection shall: (1) with regard to the Trade Secrets, remain in effect as long as the information constitutes a trade secret under applicable law; and (2) with regard to the Confidential Information, remain in effect for so long as such information constitutes Confidential Information as defined in this Agreement.  The confidentiality, property, and proprietary rights protections set forth in this Agreement are in addition to, and not exclusive of, any and all other rights to which the Company Group is entitled under federal and state law, including, but not limited to, rights provided under copyright laws, trade secret and confidential information laws, and laws concerning fiduciary duties.  
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(b)Defend Trade Secrets Act.  Notwithstanding anything to the contrary set forth in this Agreement, pursuant to the Defend Trade Secrets Act of 2016 (18 U.S.C. § 1833(b)(1)), no individual shall be held criminally or civilly liable under federal or state law for the disclosure of a trade secret that: (1) is made (x) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (y) solely for the purpose of reporting or investigating a suspected violation of law; or (2) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
(c)Non-Solicitation of Customers.  During the Restricted Period, Executive shall not, directly or indirectly, solicit any Customer of the Company Group for the purpose of selling or providing any products or services competitive with the Business.  The restrictions set forth in this subsection shall apply only to those Customers (a) with whom or which Executive dealt on behalf of the Company Group, (b) whose dealings with the Company Group were coordinated or supervised by Executive, (c) about whom Executive obtained Confidential Information in the ordinary course of business as a result of Executive’s association with the Company Group, or (d) who received products or services authorized by the Company Group, the sale or provision of which resulted in compensation, commissions, or earnings for Executive within two (2) years prior to the Date of Termination.
(d)Non-Solicitation of Prospective Customers.  During the Restricted Period, Executive shall not, directly or indirectly, solicit any Prospective Customer of the Company Group for the purpose of selling or providing any products or services competitive with the Business.  The restrictions set forth in this subsection shall apply only to those Prospective Customers (i) with whom or which Executive dealt on behalf of the Company Group, (ii) whose dealings with the Company Group were coordinated or supervised by Executive, or (iii) about whom Executive obtained Confidential Information in the ordinary course of business as a result of Executive’s association with the Company Group.
(e)Non-Recruit of Employees.  During the Restricted Period, Executive shall not, directly or indirectly, solicit, recruit, or induce any Employee to (i) terminate his or her employment relationship with the Company Group, or (ii) work for any other person or entity engaged in the Business. For the avoidance of doubt, the foregoing restriction shall prohibit Executive from disclosing to any third party the names, background information, or qualifications of any Employee, or otherwise identifying any Employee as a potential candidate for employment. The restrictions set forth in this subsection shall apply only to Employees (1) with whom Executive had Material Interaction, or (2) Executive, directly or indirectly, supervised.
(f)Non-Competition.  During the Restricted Period, Executive shall not, on Executive’s own behalf or on behalf of any person or entity, engage in the Business within the Territory; provided, however, that Executive may work for a competitor within the Territory and during the Restricted Period if Executive first obtains express written permission from the Company’s Chief Executive Officer or the Board.  For purposes of this subsection, the term “engage in the Business” shall include: (i) performing or participating in any activities which are the same as, or substantially similar to, activities which Executive performed or in which 
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Executive participated, in whole or in part, for or on behalf of the Company Group; (ii) performing activities or services about which Executive obtained Confidential Information or Trade Secrets as a result of Executive’s association with the Company Group; and/or (iii) interfering with or negatively impacting the business relationship between the Company Group and a Customer, Prospective Customer, or any other third party about whom Executive obtained Confidential Information or Trade Secrets as a result of Executive’s association with the Company Group.
(g)Definitions.  For purposes of this Section V only, the capitalized terms shall be defined as follows:
(i)“Business” means (1) those activities, products, and services that are the same as or similar to the activities conducted and products and services offered and/or provided by the Company Group within two (2) years prior to the Date of Termination, and (2) (A) renting, leasing, and/or selling new or reconditioned consumer electronics, computers (including hardware, software, and accessories), appliances, household goods, residential furniture, and home furnishings, (B) providing web-based, virtual or remote lease-to-own programs, buy-now-pay-later programs or financing, or (C) issuing consumer credit cards and credit card and other consumer credit accounts, making consumer loans, cash advances and other extensions of credit and engaging in any other programs or activities for the origination or acquisition of loans, receivables or other payment obligations of consumers.
(ii)“Confidential Information” means: (1) information of the Company Group, to the extent not considered a Trade Secret under applicable law, that: (A) relates to the business of the Company Group, (B) was disclosed to Executive or of which Executive became aware of as a consequence of Executive’s relationship with the Company Group (C) possesses an element of value to the Company Group, and (D) is not generally known to the Company Group’s competitors, and (2) information of any third party provided to the Company Group which the Company Group is obligated to treat as confidential, including, but not limited to, information provided to the Company Group by their licensors, suppliers or customers.  Confidential Information includes, but is not limited to: (A) methods of operation; (B) price lists; (C) financial information and projections; (D) personnel data; (E) future business plans; (F) the composition, description, schematic or design of products, future products or equipment of the Company Group or any third party; (G) advertising or marketing plans; (H) information regarding independent contractors, employees, clients, licensors, suppliers, Customers, Prospective Customers or any third party, including, but not limited to, the names of Customers and Prospective Customers, Customer and Prospective Customer lists compiled by the Company Group, and Customer and Prospective Customer information compiled by the Company Group; and (I) personal information concerning owners and members of the Company Group.  Confidential Information shall not include any information that: (1) is or becomes generally available to the public other than as a result of an unauthorized disclosure, (2) has been independently developed and disclosed by others without violating this Agreement or the legal rights of any party, or (3) otherwise enters the public domain through lawful means.
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(iii)“Customer” means any person or entity to which the Company Group has sold its products or services.
(iv)“Employee” means any person who (1) is employed by the Company Group on the Date of Termination, or (2) was employed by the Company Group during the last year of Executive’s employment with the Company Group.
(v)“Key Employee” means that, by reason of the Company Group’s investment of time, training, money, trust, exposure to the public, or exposure to Customers, vendors, or other business relationships during the course of Executive’s employment with the Company Group, Executive will gain a high level of notoriety, fame, reputation, or public persona as the Company Group’s representative or spokesperson, or will gain a high level of influence or credibility with the Company Group’s Customers, vendors, or other business relationships, or will be intimately involved in the planning for or direction of the business of the Company Group or a defined unit of the business of the Company Group. Such term also means that Executive will possess selective or specialized skills, learning, or abilities or customer contacts or customer information by reason of having worked for the Company Group.
(vi)“Material Interaction” means any interaction with an Employee which related, directly or indirectly, to the performance of Executive’s duties or the Employee’s duties for the Company Group.
(vii)“Professional” means an employee who has a primary duty the performance of work requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction or requiring invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor.  Such term shall not include employees performing technician work using knowledge acquired through on-the-job and classroom training, rather than by acquiring the knowledge through prolonged academic study, such as might be performed, without limitation, by a mechanic, a manual laborer, or a ministerial employee.
(viii)“Prospective Customer” means any person or entity to which the Company Group has solicited to purchase the Company Group’s products or services.
(ix)“Restricted Period” means: (i) with respect to Sections 5.1(c), (d) and (e), twenty-four (24) months after the Date of Termination or (ii) with respect to Section 5.1(f), twelve (12) months after the Date of Termination. 
(x)“Territory” means within each of the following discrete, severable, geographic areas:
(A)any state or province in which Executive performed services for or on behalf of the Company Group during the last two (2) years of Executive’s employment with the Company Group (or during Executive’s employment if employed less than two (2) years); and/or if this subclause or any portion thereof is found to be unenforceable;
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(B)the United States of America (including the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming, as well as the District of Columbia); and/or if this subclause or any portion thereof is found to be unenforceable; 
(C)Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wyoming, the District of Columbia; and/or if this subclause or any portion thereof is found to be unenforceable;
(D)the state of Utah; and/or if this subclause or any portion thereof is found to be unenforceable;
(E)the Metropolitan Statistical Area of Salt Lake City, Utah as designated by the Office of Management and Budget and used by the U.S. Census Bureau in its most recent census as of the Date of Termination; and/or if this clause of any portion thereof is found to be unenforceable; 
(F)the counties of Salt Lake, Utah, Summit and Tooele, Utah; and/or if this subclause or any portion thereof is found to be unenforceable;
(G)the city of Draper, Utah; and/or if this subclause or any portion thereof is found to be unenforceable; then
(H)a fifteen (15) air mile radius of 256 West Data Drive, Draper, Utah 84020.
The Company Group and Executive acknowledge and agree that the Territory described above (x) represents a good faith estimate of the geographic areas that are applicable at the time of termination of Executive’s employment; (y) shall be construed ultimately to cover only so much of such estimate as relates to the geographic areas actually involved within a reasonable period of time prior to Executive’s termination; and (z) is drafted in such a way that a court may modify the definition and grant only the relief reasonably necessary to protect such legitimate business interests.
(xi)“Trade Secrets” means information of the Company Group, and its licensors, suppliers, clients, and customers, without regard to form, including, but not limited to, 
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technical or nontechnical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, a list of actual customers, clients, licensors, or suppliers, or a list of potential customers, clients, licensors, or suppliers which is not commonly known by or available to the public and which information (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
V.2Injunctive Relief.  If Executive breaches or threatens to breach any portion of this Agreement, Executive agrees that: (a) the Company Group would suffer irreparable harm; (b) it would be difficult to determine damages, and money damages alone would be an inadequate remedy for the injuries suffered by the Company Group; and (c) if the Company Group seeks injunctive relief to enforce this Agreement, Executive shall waive and shall not (i) assert any defense that the Company Group has an adequate remedy at law with respect to the breach, (ii) require that the Company Group submit proof of the economic value of any Trade Secret or Confidential Information, or (iii) require the Company Group to post a bond or any other security.  Nothing contained in this Agreement shall limit the Company Group’s right to any other remedies at law or in equity.
V.3Independent Enforcement.  Each of the covenants set forth in Section 5.1 above shall be construed as an agreement independent of (a) each of the other covenants set forth in Section 5.1, (b) any other agreements, or (c) any other provision in this Agreement, and the existence of any claim or cause of action by Executive against the Company Group, whether predicated on this Agreement or otherwise, regardless of who was at fault and regardless of any claims that either Executive or the Company Group may have against the other, shall not constitute a defense to the enforcement by the Company Group of any of the covenants set forth in Section 5.1 above.  The Company Group shall not be barred from enforcing any of the covenants set forth in Section 5.1 above by reason of any breach of (i) any other part of this Agreement, or (ii) any other agreement with Executive.
V.4Protected Rights. Nothing contained in this Agreement limits Executive’s ability to file a charge or complaint with the Equal Employment Opportunity Commission or any other federal, state or local governmental agency or commission (collectively, “Government Agencies”), or prevents Executive from providing truthful testimony in response to a lawfully issued subpoena or court order.  Further, this Agreement does not limit Executive’s ability to communicate with any 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 the Company Group.
V.5Survival of Restrictive Covenants. Upon termination of Executive’s employment for any reason whatsoever (whether voluntary on the part of Executive, for Cause, or other reasons), the obligations of Executive pursuant to Section V shall survive and remain in effect for the periods described herein.

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SECTION VI
DISPUTES
VI.1Arbitration. 
(a)Rules; Jurisdiction.  Any controversy, dispute or claim between the parties, including any controversy, dispute or claim arising out of, relating to or concerning this Agreement, the breach of this Agreement, the employment of Executive, or the termination of Executive’s employment (a “Disputed Matter”) will be resolved pursuant to this Section VI. Any such controversy, dispute or claim will be settled in Salt Lake County, Utah in accordance with the applicable rules of the American Arbitration Association (the “AAA”) then in effect; provided, however, that a breach of the obligations under Section V may be enforced by an action for injunctive relief and damages in a court of competent jurisdiction. If the rules of the AAA differ from any provisions of this Agreement, the provisions of this Agreement will control.
(b)Terms of Arbitration. The arbitrator chosen in accordance with these provisions shall not have the power to alter, amend or otherwise affect the terms of these arbitration provisions or the provisions of this Agreement except as otherwise expressly provided herein.
(c)Binding Effect. The arbitrator will have the authority to grant only such equitable and legal remedies that would be available in any judicial proceeding instituted to resolve a Disputed Matter, and the decision of the arbitrator within the scope of the submission will be final and conclusive upon the parties. Judgment upon any award rendered by the arbitrator may be entered in any court having subject matter jurisdiction to render such judgment. In the event any provision of this Section VI is found to be unenforceable for any reason by a court or an arbitrator, the court or arbitrator, as the case may be, shall reform this Section VI to the extent necessary to render it enforceable.
(d)Time for Arbitration. Any demand for arbitration involving an alleged breach of this Agreement shall be filed within one (1) year of the date the claim became known or should have become known; provided, however, any claim involving an alleged statutory obligation may be filed with the AAA and served on the other party at any time within the period covered by the applicable statute of limitations.
(e)Payment of Costs. To the extent permitted by applicable law, each party hereby agrees to pay one half the arbitrator’s fees, the costs of transcripts and all other expenses of the arbitration proceedings; provided, however, that the arbitrator shall have the authority to determine payment of costs as part of the award or to allocate costs in accordance with the AAA rules.
(f)Burden of Proof; Basis of Decision. For any claim submitted to arbitration, the burden of proof shall be as it would be if the claim were litigated in a judicial proceeding except where otherwise specifically provided in this Agreement, and the decision 
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shall be based on the application of the law of the State of Utah (as determined from statutes, court decisions and other recognized authorities) to the facts found by the arbitrator.
SECTION VII
SUCCESSORS
VII.1In addition to any obligations imposed by law upon any successor to PROG, PROG shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of PROG expressly to assume and agree to perform this Agreement in the same manner and to the same extent that PROG would be required to perform it if no such succession had taken place.  The provisions of this Section VII shall continue to apply to each subsequent employer of Executive bound by this Agreement in the event of any merger, consolidation or transfer of all or substantially all of the business or assets of that subsequent employer.
VII.2This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  
SECTION VIII
NOTICES
VIII.1For the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by (a) United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon actual receipt; or (b) personal delivery to the Chief Executive Officer:
To PROG:      
PROG Holdings, Inc.
256 West Data Drive 
Draper, Utah 84020
            Attention: Chief Executive Officer

Copy to (which shall not constitute notice): 

PROG Holdings, Inc.
256 West Data Drive 
Draper, Utah 84020
Attention: General Counsel

To Executive: At Executive’s most recent mailing address in the records of the Company Group, or at Executive’s employee email address (during employment)
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SECTION IX
MISCELLANEOUS
IX.1Any compensation paid or payable to Executive pursuant to this Agreement which is subject to recovery under any law, government regulation, order or stock exchange listing requirement, will be subject to such deductions and clawback (recovery) as may be required to be made pursuant to law, government regulation, order, stock exchange listing requirement (or any policy of the Company Group adopted from time to time). Executive specifically authorizes the Company Group to withhold from future salary or wages any amounts that may become due under this provision.  This Section 9.1 shall survive the termination of this Agreement for a period of three (3) years.
IX.2This Agreement embodies the entire agreement of PROG and Executive relating to separation or severance pay and, except as specifically provided herein, no provisions of any employee manual, personnel policies, corporate directives or other agreement or document shall be deemed to modify the terms of this Agreement.  Except as otherwise provided in Section 5.1, no amendment or modification of this Agreement shall be valid or binding upon Executive or PROG unless made in writing and signed by PROG and Executive.  This Agreement supersedes all prior understandings and agreements addressing severance or separation pay to which Executive and the Company Group are or were parties, including any previous change in control agreement, severance plan, offer letter provisions, or other employment agreements.
IX.3No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
IX.4No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement. 
IX.5The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.
IX.6The Agreement shall be construed, administered and governed in all respects under and by the applicable laws of the State of Utah.
IX.7This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.
[Signature page follows. Remainder of page left intentionally blank.]

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[Signature page to Severance and Change-in-Control Agreement]
IN WITNESS WHEREOF, the parties have signed this Agreement as of the date set forth above.
PROG HOLDINGS, INC.

By:    

Name:    
Title:    
Date:    

EXECUTIVE

    
[●]

Date:    

    - 20 -Document

Exhibit 10.1

ANNUAL CMS ENTERPRISES EMPLOYEE INCENTIVE COMPENSATION PLAN 

ANNUAL CMS ENTERPRISES EMPLOYEE INCENTIVE 
COMPENSATION PLAN 

     I.     GENERAL PROVISIONS

1.1    Purpose.  The purpose of the Annual CMS Enterprises Employee Incentive Compensation Plan (“EEICP” or “Plan”) is to provide an equitable and competitive level of compensation that will permit CMS Enterprises and its subsidiaries to attract, retain and motivate their employees.

1.2    Effective Date.    The Plan as described herein is effective as of January 1, 2014, as amended and revised January 1, 2016, August 4, 2017, December 1, 2018, December 1, 2019, February 1, 2020 and May 16, 2021.

1.3     Eligibility.  Except as otherwise provided in this Section 1.3, regular non-union U.S. employees and Enterprises Officers who do not participate in a broad-based incentive plan contingent upon objectives and performance unique to the employees’ or Enterprises Officers’ subsidiary, affiliate, site and/or business unit, are eligible for participation in the EEICP Plan.  An individual listed on the Company payroll records as a contract employee is not eligible for this Plan. Eligible regular non-union U.S. employees and Enterprises Officers who have received a performance rating of at least “Fully Effective” (also known as “Effective” or “Meets Expectations” or “Satisfactory” or “Fully Contributing”) for the Performance Year as documented on their annual performance, evaluation, feedback and development appraisal are eligible for participation in the EEICP.  Any regular non-union employee or Enterprises Officer who has received a performance rating of less than “Fully Effective” (as defined above), such as under-performing  (also known as “Needs Improvement”, “Under Performing”, “under-contributing” or (“U”)) for the Performance Year as documented on their annual performance, evaluation, feedback and development appraisal is not eligible for participation in the EEICP.  

1.4    Definitions.  As used in this Plan, the following terms have the meaning described below:

(a)    “Annual Award” means an annual incentive award granted under the EEICP.

(b)    “Base Salary” means regular straight-time salary or wages paid to the employee or Enterprises Officer.

(c)    “CMS Energy” means CMS Energy Corporation, the parent of Consumers Energy Company and CMS Enterprises.

(d)    “CMS Enterprises” means CMS Enterprises Company, a wholly owned subsidiary of CMS Energy.

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

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(f)     “Company” means CMS Enterprises.

(g)     “Deferred Annual Award” means the amount deferred pursuant to Section 4.2.

(h)     “Disability” means that a participant has terminated employment with the Company or a Subsidiary and is disabled, as that term is defined under Code Section 409A and any applicable regulations.

(i)    “Enterprises Officer” for purposes of this Plan means an elected officer of CMS Enterprises.

(j)     “Leave of Absence” for purposes of this Plan means a leave of absence that has been approved by the Company.

(k)     “Payment Event” means the time at which a Deferred Annual Award may be paid pursuant to Section 4.2.

(l)     “Payment Term” means the length of time for payment of a Deferred Annual Award under Section 4.2.

(m) “Pension Plan” means the Pension Plan for Employees of Consumers Energy and Other CMS Energy Companies.

(n)     “Performance Year” means the calendar year prior to the year in which an Annual Award is made under this Plan.

(o)     “Plan Administrator” is the Benefits Administration Committee appointed by the CMS Energy Chief Executive Officer and the CMS Energy Chief Financial Officer.

(p)     “Retirement” means that a Plan participant is no longer an active employee or Enterprises Officer and qualifies for a retirement benefit other than a deferred vested retirement benefit under the Pension Plan.  For a participant ineligible for coverage under the Pension Plan and covered instead under the Defined Company Contribution Plan, retirement occurs when there is a Separation from Service on or after age 55 with 5 or more years of service.

(q)     “Separation from Service” means an employee or Enterprises Officer retires or otherwise has a separation from service from the Company as defined under Code Section 409A and any applicable regulations.  The Plan Administrator will determine, consistent with the requirements of Code Section 409A and any applicable regulations, to what extent a person on a leave of absence, including on paid sick leave pursuant to Company policy, has incurred a Separation from Service.  Notwithstanding the above, a Separation from Service will occur consistent with Treasury Regulation Section 1.409A-1(h) when it is reasonably anticipated that the level of service provided by the employee or Enterprises Officer will be no more than 45% of the average level of bona fide service 
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performed by the employee or Enterprises Officer over the immediately preceding 36-month period.

(r)     “Standard Award Percentage” means the target award amount as a percentage of Base Salary as set forth in Section 3.1 of this Plan.

(s)     “Subsidiary” means any direct or indirect subsidiary of the Company.

    II.       CORPORATE PERFORMANCE GOALS

2.1    In General.  Each year the President of CMS Enterprises will establish the Performance Goals ("Goals") for the EEICP.  The Goals will consist of between three and ten company specific performance criteria relating to such items as net income, cash flow, gross margin, revenue, customer service, safety and reliability.  When establishing the Goals for a Performance Year, the President of CMS Enterprises will include the total number of criteria to be used for the year as well as the award percent for achievement of a specified number of the established criteria.  The specific Goals will be communicated to employees and Enterprises Officers no later than March 31st of the Performance Year.  The Award Formula may include additional adjustments based on financial performance goals relating to CMS Energy Corporation as determined by the Compensation and Human Resources Committee of the CMS Energy Board of Directors.

2.2    Plan Performance.  The adjustments, if applicable, based on financial performance goals relating to CMS Energy used to calculate an Annual Award is capped at two times the Standard Award Percentage.  The Goals for a Performance Year are established in a table relating specific performance results to specific performance goals. This table shall be created by the President of CMS Enterprises for each Performance Year.
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  III.     ANNUAL AWARD FORMULA

3.1    Annual Awards.  Annual Awards for each eligible EEICP participant will be based upon a standard award percentage as set forth in the table below, with the exception of the Enterprises Officer participants, which will be set forth in Section 3.3.  The total amount of a participant’s Annual Award shall be computed according to the annual award formula set forth in Section 3.2.  The Standard Award Percentages stated in this Section 3.1 are subject to adjustment by the President of CMS Enterprises as indicated by market practices.

															
		Salary	Standard Award Percentage of Base Salary
		Grade	Full time	Part time	
		25	25%	25%	
		24	25%	25%	
		23	15%	15%	
		22	15%	15%	
		21	12%	12%	
		20	12%	12%	
		19	12%	12%	
		18	10%	10%	
		17	6%	6%	
		16	3%	3%	
		15	3%	3%	
		14	3%	3%	
		13	3%	3%	
		12	3%	3%	
		11	3%	3%	
		10	3%	3%	
		9	3%	3%	
		8	3%	3%	
		7	3%	3%	
		6	3%	3%	
		5	3%	3%	
		4	3%	3%	
		3	3%	3%	

3.2     Annual Awards for EEICP participants will be calculated and made as follows:

Annual Award = Standard Award Percentage X Award percent for achievement of actual number of award criteria X Weighting for each award criteria

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3.3    Enterprises Officer Annual Awards.  Annual Awards for each eligible EEICP Enterprises Officer participant will be based upon a standard award percentage as set forth in the table below:   

															
	Officer		Standard Award Percentage of Base Salary
					
	President of CMS Enterprises		40%	
					
	Chief Operating Officer of CMS Enterprises		35%	
					
	Vice President of CMS Enterprises Development		30%	

  IV.     ADMINISTRATION OF THE PLAN

(a)    The Plan is administered by the President of CMS Enterprises under the general direction of the CMS Energy Chief Executive Officer, Senior Vice President People & Culture, and Senior Vice President of Strategy

(b)    Each year, normally in January, but no later than March 30th of the Performance Year, the Senior Vice President of Strategy will approve the established Performance Goals for the Performance Year. 

(c)    The Senior Vice President of Strategy, no later than March 31st of the calendar year following the Performance Year, will review for approval proposed Annual Awards as recommended by the President of CMS Enterprises.

(d)    The CMS Energy Chief Executive Officer reserves the right to modify the established Performance Goals with respect to unforeseeable circumstances or otherwise exercise discretion with respect to proposed Annual Awards as he or she deems necessary to maintain the spirit and intent of the EEICP, provided that if such discretion increases the Annual Award it does not exceed the computed performance factor by more than 20%.  The CMS Energy Chief Executive Officer also reserves the right in his or her discretion to not pay Annual Awards or to reduce the amount of Annual Awards for a Performance Year.  All decisions of the CMS Energy Chief Executive Officer are final.

V.    PAYMENT OF ANNUAL AWARDS

5.1    Cash Annual Award.  All Annual Awards for a Performance Year will be paid in cash no later than March 15th of the calendar year following the Performance Year provided that the Annual Award for a particular Performance Year has not been deferred voluntarily pursuant to Section 4.2.  The amounts required by law to be withheld for income and employment taxes will be deducted from the Annual Award payments.  All 
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Annual Awards become the obligation of the company on whose payroll the employee or Enterprises Officer is enrolled at the time CMS Enterprises makes the Annual Award.

5.2    Deferred Annual Awards.

(a)    The payment of all or any portion (rounded to an even multiple of 10%) of a cash Annual Award may be deferred voluntarily at the election of individual participants in salary grades 19-25.  Any such deferral will be net of any applicable FICA or FUTA taxes.  A separate irrevocable election must be made prior to the Performance Year.  Any Annual Award made by CMS Enterprises after termination of employment of a participant or retirement of a participant will be paid in accordance with any deferral election made within the enrollment period.

(b)    At the time the participant makes a deferral election he or she must select the payment options (including the Payment Event as set forth at (c) below and the Payment Term as set forth at (d) below) applicable to the Deferred Annual Award for the Performance Year, as well as any earnings or income attributable to such amounts.  The payment options elected will apply only to that year’s Deferred Annual Award and will not apply to any previous Deferred Annual Award or to any subsequent Deferred Annual Award.  Any participant who elects to defer all or a portion of an Annual Award and who fails to select a Payment Event or a Payment Term will be presumed to have elected a Payment Event of Separation from Service in accordance with paragraph (c)(i) below and/or a Payment Term of a single sum.

(c)    The Payment Event elected can be either:

(i)    Separation from Service for any reason other than death.  Payment will be made, or begin, in the later of: (1) January of the year following the year of the Separation from Service; or (2) the seventh month after the month of the Separation from Service.  Later installments, if any, will be paid in January of the succeeding years. Effective for amounts deferred in 2019 and succeeding years, payment will be made, or begin, in the seventh month after the month of Separation from Service.  Later installments, if any, will be paid in the same month of the succeeding years; 

(ii)    Payment upon attainment of a date certain that is more than 1 year after the last day of the applicable Performance Year.  Later installments, if any, will be paid in the same month of the succeeding years; or

(iii)    The first to occur of (i) or (ii) above.

(d)    Payment Term.  At the time of electing to defer an Annual Award, the participant must also elect how he or she wishes to receive any such payment from among the following options (the participant may elect a separate Payment Term for each Payment Event elected): 
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(i)    Payment in a single sum upon occurrence of the Payment Event.

(ii)    Payment of a series of annual installment payments over a period from two (2) years to fifteen (15) years following the Payment Event.  Each installment payment shall be equal to a fractional amount of the balance in the account the numerator of which is one and the denominator of which is the number of installment payments remaining.  Although initially such installment payments will be identical, actual payments may vary based upon investment performance.  For example, a series of 5 installment payments will result in a payout of 1/5 of the account balance in the first installment, 1⁄4 of the account balance (including investment gains or losses since the first installment date) in the second installment, etc. 

(e)    Changes to Payment Options.  Once a payment option has been elected, subsequent changes which would accelerate the receipt of benefits from the Plan are not permitted, except that the Plan Administrator, which is the Benefit Administration Committee as defined in the Savings Plan for Employees of Consumers Energy and other CMS Energy Companies (the “Savings Plan”), may at its discretion accelerate payments to the extent permitted by Code Section 409A and applicable regulations.  A subsequent election to change the payment options related to a Payment Event, in order to delay a payment or to change the form of a payment, can only be made when all of the following conditions are satisfied:

(i)    such election may not take effect until at least 12 months after the date on which the election is made; 

(ii)    the payment(s) with respect to which such election is made is deferred for a period of not less than 5 years from the date such payment would otherwise have been made (or, in the case of installment payments under Section 4.2(d)(ii) with regard to amounts deferred (and the related earnings) prior to January 1, 2016, 5 years from the date the first installment was scheduled to be paid); and

(iii)    such election must be made not less than 12 months before the date the payment was previously scheduled to be made (or, in the case of installment payments under Section 4.2(d)(ii) with regard to amounts deferred (and the related earnings) prior to January 1, 2016, 12 months before the first installment was scheduled to be paid), if the participant’s previous commencement date was a specified date.

Effective January 1, 2016, the right to a series of installment payments is to be treated as a right to a series of separate payments to the extent permissible under Code Section 409A and any applicable regulations.  When making a subsequent election with respect to the payment of any post-December 31, 2015 deferral, the participant may make a separate election with respect to each 
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separate payment, provided that such election must result in all of the applicable Performance Year’s deferral with related earnings being paid in a single sum or in a series of annual payments over a period from two (2) to fifteen (15) consecutive years.

(f)    Investments. At the time of electing to voluntarily defer payment, the participant must elect how the Deferred Annual Award will be treated by CMS Enterprises.  To the extent that any amounts deferred are placed in a rabbi trust with an independent record keeper, a participant who has previously deferred amounts under this Plan will automatically have his or her existing investment profile apply to this deferral also.  All determinations of the available investment options by the Plan Administrator are final and binding upon participants.  A participant may change the investment elections at any time prior to the payment of the benefit, subject to any restrictions imposed by the Plan Administrator, the plan record keeper or by any applicable laws and regulations.  A participant not making an election will have amounts deferred treated as if in a Lifestyle Fund as defined in the Savings Plan applicable to the participant's age 65, rounded up, or such other investment as determined by the Plan Administrator.  All gains and losses will be based upon the performance of the investments selected by the participant from the date the deferral is first credited to the nominal account.  If the Company elects to fund its obligation as discussed below, then investment performance will be based on the balance as determined by the record keeper.

(g)    The amount of any Deferred Annual Award is to be satisfied from the general corporate funds of the company on whose payroll the Plan participant was enrolled prior to the payout beginning and are subject to the claims of general creditors of the Company.  This is an unfunded nonqualified deferred compensation plan.  To the extent the Company elects to place funds with a trustee to pay its future obligations under this Plan, such amounts are placed for the convenience of CMS Enterprises, remain the property of CMS Enterprises and the participant shall have no right to such funds until properly paid in accordance with the provisions of this Plan.  For administrative ease and convenience, such amounts may be referred to as participant accounts, but as such are a notional account only and are not the property of the participant.  Such amounts remain subject to the claims of the creditors of CMS Enterprises. 

(h)    Payment in the Event of an Unforeseeable Emergency. The participant may request that payments commence immediately upon the occurrence of an Unforeseeable Emergency as that term is defined in Code Section 409A and any applicable regulations.  Generally, an unforeseeable emergency is a severe financial hardship resulting from an illness or accident of the participant or the participant’s spouse or dependent, loss of the participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant.  A distribution on account of unforeseeable emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the participant’s 
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assets (without causing severe financial hardship), or by cessation of deferrals under this arrangement, the Savings Plan or other arrangements. Distributions because of an unforeseeable emergency shall not exceed the amount permitted under Section 409A and accordingly are limited to the amount reasonably necessary to satisfy the emergency need (after use of insurance proceeds, liquidation of assets, etc.) plus an amount to pay taxes reasonably anticipated as a result of the distribution. In the event any payment is made due to an unforeseeable emergency, all deferral elections for the current Performance Year will cease and the participant will not be eligible to make any deferral elections under this Plan for the following Performance Year.  For any participant receiving a hardship withdrawal under the Savings Plan, all deferral elections under this Plan for the current Performance Year will cease and the participant will not be eligible to make any deferral elections under this Plan for the following Performance Year.

5.3  Payment in the Event of Death.

(a)    A participant may name the beneficiary of his or her choice on a beneficiary form provided by the Company or record keeper, and the beneficiary shall receive, within 90 days of the participant’s death, in a single sum, all payments credited to the participant in the event that the participant dies prior to receipt of Deferred Annual Awards.  If a beneficiary is not named or does not survive the participant, the payment will be made to the participant’s estate. In no event may any recipient designate a year of payment for an amount payable upon the death of the participant.  

(b)    A participant may change beneficiaries at any time, and the change will be effective as of the date the plan record keeper or the Company accepts the form as complete.  The Company will not be liable for any payments made before receipt and acceptance of a written beneficiary request.

  VI.    CHANGE OF STATUS

Payments in the event of a change in status will not be made if no Annual Awards are made for the Performance Year.

6.1    Pro-Rata Annual Awards.  A new EEICP participant, whether hired or promoted to the position, or an EEICP participant promoted to a higher salary grade or to an Enterprises Officer position during the Performance Year will receive a pro rata Annual Award based on the percentage of the Performance Year in which the employee is in a particular salary grade or Enterprises Officer position.  An EEICP participant whose salary grade has been lowered or who is no longer an Enterprises Officer, but whose employment is not terminated during the Performance Year, will receive a pro rata Annual Award based on the percentage of the Performance Year in which the employee is in a particular salary grade or Enterprises Officer position.  Awards will also be prorated for any change in full time or part time work status.  

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6.2    Termination.  An EEICP participant whose employment is terminated pursuant to a violation of the Company code of conduct or other corporate policies will not be considered for or receive an Annual Award.

6.3    Resignation.  An EEICP participant who resigns prior to payment (during or after a Performance Year) will not be eligible for an Annual Award.  If the resignation is due to reasons such as a downsizing or reorganization, or the ill health of the participant or ill health in the immediate family, the participant may petition the Plan Administrator and may be considered, in the discretion of the Plan Administrator, for a pro rata Annual Award.  The Plan Administrator's decision to approve or deny the request for a pro rata Annual Award shall be final.

6.4    Death, Disability, Retirement, Leave of Absence.  An EEICP participant whose status as an active employee or Enterprises Officer is changed during the Performance Year due to death, Disability, Retirement, or Leave of Absence (as determined by the Plan Administrator) will receive a pro rata Annual Award.  An EEICP participant whose employment is terminated following the Performance Year but prior to payment due to death, Disability or Retirement will continue to be eligible for an Annual Award for the Performance Year.  Any such payment or Annual Award payable due to the death of the EEICP participant will be made to the named beneficiary, or if no beneficiary is named or if the beneficiary doesn’t survive the EEICP participant, then to the EEICP participant’s estate no later than March 15 following the applicable Performance Year.  Notwithstanding the above, an EEICP participant who retires, is on Disability or Leave of Absence and who becomes employed by a competitor of CMS Energy or its subsidiaries or affiliates prior to award payout will forfeit all rights to an Annual Award, unless prior approval of such employment has been granted by the Chief Financial Officer of CMS Energy.  A “competitor” shall mean an entity engaged in the business of (1) selling (a) electric power or natural gas at retail or wholesale within the State of Michigan or (b) electric power at wholesale within the market area in which an electric generating plant owned by a subsidiary or affiliate of CMS Energy is located or (2) developing an electric generating plant within the State of Michigan or a market area in which an electric generating plant owned by a subsidiary or affiliate of CMS Energy is located.

6.5    Payment Following Leave of Absence.    Payment of an award for an EEICP participant who is on leave of absence or Family Medical Leave Act leave at the time of payment shall be paid in the same payroll period as active participants. Payment of an award for an EEICP participant who is laid-off at the time of payment shall be paid in the payroll period that is within an administratively reasonable time after returning to work, but no later than March 15 of the year following the year the participant has returned to work. 

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 VII.     MISCELLANEOUS

7.1    Impact on Benefit Plans.  Payments for eligible participants made under the Plan will be considered as earnings for the Supplemental Executive Retirement Plans but not for purposes of the Employees’ Savings Plan, Pension Plan, or other employee benefit programs.

7.2    Impact on Employment.  Neither the adoption of the Plan nor the granting of any Annual Award under the Plan will be deemed to create any right in any individual to be retained or continued in the employment of the Company or any corporation within the Company’s control group.

7.3    Termination or Amendment of the Plan.  The Company may amend or terminate the Plan at any time.  Upon termination, any Deferred Annual Award accrued under the Plan and vested will remain in the Plan and be paid out in accordance with the payment elections previously selected.  The Plan Administrator is authorized to make any amendments that are deemed necessary or desirable to comply with any applicable laws, regulations or orders or as may be advised by counsel or to clarify the terms and operation of the Plan.  The Company may terminate the Plan and accelerate any benefits under the Plan, at its discretion, if it acts consistent in all manners with the requirements of Code Section 409A and any applicable regulations with respect to when a terminated plan may accelerate payment to a participant.

7.4    Governing Law.  The Plan will be governed and construed in accordance with the laws of the State of Michigan.

7.5    Dispute Resolution.  Any disputes related to the Plan must be brought to the Plan Administrator.  The Plan Administrator is granted full discretionary authority to apply the terms of the Plan, make administrative rulings, interpret the Plan and make any other determinations with respect to the Plan.  If the Plan Administrator makes a determination and the participant disagrees with or wishes to appeal the determination, the participant must appeal the decision to the Plan Administrator, in writing and not later than 60 days from when the determination was mailed to the participant.  If the participant does not timely appeal the original determination, the participant has no further rights under the Plan with respect to the matter presented in the claim.  If the participant appeals the original determination and that appeal does not result in a mutually agreeable resolution, then the dispute shall be subject to final and binding arbitration before a single arbitrator selected by the parties to be conducted in Jackson, Michigan, provided the participant makes such request for arbitration in writing within 30 days of the final decision by the Plan Administrator.  The arbitration will be conducted and finished within 90 days of the selection of the arbitrator.  The parties shall share equally the cost of the arbitrator and of conducting the arbitration proceeding, but each party shall bear the cost of its own legal counsel and experts and other out-of-pocket expenditures.  The arbitrator must use an arbitrary and capricious standard of review when considering any determinations and findings by the Plan Administrator.   

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 VIII.    AMENDMENT TO REFLECT CODE SECTION 409A

8.1    Code Section 409A.  To the extent counsel determines amendments may be reasonable or desirable in order to comply with Code Section 409A, and any other applicable rules, laws and regulations, such changes shall be authorized with the approval of the Plan Administrator.

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IN WITNESS WHEREOF, signed this 22nd day of July, 2021.

															
	CMS ENTERPRISES COMPANY		Attest:	
					
					
	/s/ Garrick J. Rochow		/s/ Srikanth Maddipati
	Garrick J. Rochow			Srikanth Maddipati
	Chairman of the Board and Chief Executive Officer 	Vice President and Treasurer

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