Document:

EX-10.1

 Exhibit 10.1 
 PAUL C. VARGA 
 JULY 25, 2013 

SPECIAL RESTRICTED STOCK AWARD AGREEMENT 
  

			
		  	SUMMARY
	Participant:	  	Paul C. Varga
	Award Date:	  	July 25, 2013
	Performance Period	  	May 1, 2013 through April 30, 2018
	Restriction Ending Date:	  	June 1, 2018
	Number of Shares Subject to Award:	  	67,513
	Class of Shares:	  	Brown-Forman Corporation Class A Common Stock
	Award Date Price per Share:	  	$74.06

 THIS AWARD (the “Award”), effective as of the Award Date set forth above, represents a grant of Shares of
restricted stock by Brown-Forman Corporation, a Delaware corporation (the “Company”), under the Company’s 2013 Omnibus Compensation Plan (the “Plan”) to the Company employee named above (“Participant”). Capitalized
terms not otherwise defined herein shall have the meanings ascribed to them in the Plan. 
 1. Award. The Company hereby grants to the
Participant, subject to the terms and conditions set forth herein, the number of Shares of restricted stock set forth in the summary table above (the “Restricted Stock”). The Restricted Stock shall be issued in the name of the Participant,
legended with the appropriate restriction, and held in escrow by the Company or its agent. Upon the vesting of the Restricted Stock in accordance with Section 2 of this Award, and the satisfaction of applicable withholding requirements under
federal, state, local and foreign law, the Company shall issue or cause to be delivered to the Participant one or more unlegended stock certificates in respect of such vested Shares. 
 2. Vesting. The Restricted Stock shall vest, and the restrictions on the Restricted Stock shall be removed and unrestricted vested Shares shall be delivered to the Participant in accordance with
Section 1 of this Award, provided that, both: (i) the Participant remains continuously employed by the Company through the end of the Performance Period (except as provided in Section 4 of this Award) (the “Service
Condition”), and (ii) as of the Restriction Ending Date, the Plan Administrator certifies that the Company has achieved at least $3 billion of cumulative operating income (determined in accordance with US GAAP) over the Performance Period
(the “Performance Condition”). For the avoidance of doubt, except as otherwise provided in Section 4 of this Award, in the event that it ceases to be possible for both the Service Condition and the Performance Condition to be met as
of the Restriction Ending Date, all of the Restricted Stock shall be immediately canceled and forfeited to the Company, without compensation to the Participant. 
 3. Negative Discretion. Notwithstanding anything to the contrary in Section 2 of this Award, the Plan Administrator shall have the discretion to adjust downward for any reason the number of
Shares of Restricted Stock that shall vest and be issued in unlegended form to the Participant, including, but not limited to, performance considerations other than achievement of the Performance Condition. Without limiting the generality of the
foregoing, it is currently anticipated that the Plan Administrator will consider the following three factors, weighted relative to each other in accordance with the approximate percentages set forth next to each factor, in determining whether to
make an adjustment pursuant to this paragraph: (i) the Company’s annual revenue growth during the Performance Period (25%), (ii) the Company’s return on invested capital during the Performance Period relative to its peer group
(25%), and 

  
 Page 1 of 6

 
(iii) the Participant’s performance with respect to the Company’s long-term senior leadership succession planning (50%). The Plan Administrator shall have sole discretion to determine
how to evaluate performance in respect of such factors or any other performance factors, although it is anticipated that if overall performance is deemed to be at or above target, no downward adjustment shall be made pursuant to this paragraph. The
Plan Administrator’s determinations in accordance with this Section 3 shall be final, conclusive and binding. 
 4. Termination of
Employment. In the event the Participant does not remain continuously employed by the Company through April 30, 2018, the following rules will apply: 
 4.1 Death/Disability. If the Participant dies or terminates employment due to Disability (“Disability” to be determined by the Plan Administrator in its sole discretion in accordance with
Section 2.16 of the Plan), the Restricted Stock shall vest immediately as to a prorated portion of Restricted Stock, such proration to be based on a fraction, the numerator of which is the number of whole months that the Participant was
employed during the Performance Period prior to the Participant’s termination of employment, and the denominator of which is 60; provided, that, the Plan Administrator shall retain its discretion to adjust downwards the number of
Shares of Restricted Stock that vest and are issued in unlegended form to the Participant as provided in Section 3 of this Award. The unlegended stock certificate(s) in respect of such vested Shares shall be issued or delivered to the
Participant or the Participant’s beneficiary(ies) within thirty (30) days of the Participant’s death or termination of employment due to Disability, with the issuance or delivery date within such period to be determined by the Company
in its sole discretion. Any unvested portion of the Restricted Stock shall be immediately canceled and forfeited. 
 4.2
Voluntary Termination, Involuntary Termination for Cause, Involuntary Termination for Poor Performance. All of the Restricted Stock shall be immediately forfeited to the Company, without compensation to the Participant, in the event of the
Participant’s voluntary termination, involuntary termination for Cause (as such term is defined in the Plan), or involuntary termination for poor performance (as determined by the Plan Administrator in its sole discretion) prior to the
Restriction Ending Date. 
 4.3. Involuntary Termination – “No Fault”; Termination for any Other Reasons.
If the Participant’s employment is involuntarily terminated with “no fault” on the part of the Participant (as determined by the Plan Administrator in its sole discretion), or if the Participant’s employment terminates for any
reason other than those set out in Sections 4.1 and 4.2 of this Award, in each case, prior to the Restriction Ending Date, all of the Restricted Stock shall be immediately forfeited to the Company, without compensation to the Participant.
Notwithstanding the foregoing, the Plan Administrator may determine, in its sole discretion, that a prorated portion of the Restricted Stock shall remain outstanding following the Participant’s termination of employment and shall vest on the
Restriction Ending Date, subject to achievement of the Performance Condition, such proration to be based on a fraction, the numerator of which is the number of whole months that the Participant was employed during the Performance Period prior to the
Participant’s termination of employment, and the denominator of which is 60. The Plan Administrator shall retain its discretion to adjust downwards the number of Shares of Restricted Stock that vest and are issued or delivered to the
Participant as provided in Section 3 of this Award. Any unvested portion of the Restricted Stock shall be immediately canceled and forfeited. 
 5. Change in Control. Upon the occurrence of a Change in Control, as defined in the Plan, the Restricted Stock shall be treated in accordance with Article 11 of the Plan. 

  
 Page 2 of 6

 6. Rights as a Stockholder; Dividends. The Participant shall have full voting rights as a stockholder
of the Company with respect to the Restricted Stock during the period in which such Restricted Stock remains subject to a substantial risk of forfeiture. During the Performance Period, the Participant shall be credited with regular cash dividends
paid with respect to the Shares of Restricted Stock, which shall be accrued in Shares of Class A Common Stock (the amount of which shall be determined by dividing the amount of dividend that would have been payable in respect of the Restricted
Stock by the Fair Market Value on the dividend payment date) and held in escrow by the Company or its agent until the Restricted Stock vests in accordance with Section 2 of this Award, at which time one or more unlegended stock certificates in
respect of such Shares shall be issued or delivered to the Participant (subject to the satisfaction of applicable withholding requirements under federal, state, local and foreign law). In the event all or a portion of the underlying Restricted Stock
is forfeited, any corresponding Shares accrued pursuant to this Section 6 shall be concurrently forfeited. 
 7. Restrictions on
Transfer. Prior to the Restriction Ending Date and the removal of the restrictions on the Restricted Stock, the Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by
will or by the laws of descent and distribution. 
 8. Recapitalization. If there is any change in the Company’s Shares through the
declaration of stock dividends, a recapitalization, stock splits, or through merger, consolidation, exchange of Shares, or otherwise, or in the event of an extraordinary dividend or other corporate transaction, the Plan Administrator shall adjust
the number and class of Shares subject to this Award (including by making a different kind or class of securities subject to the Award), and/or the Performance Condition, as the Plan Administrator deems necessary to prevent dilution or enlargement
of rights. 
 9. Beneficiary Designation. The Participant may, from time to time, name any beneficiary or beneficiaries (who may be named
contingently or successively) to whom any benefit under this Award is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the Participant, shall be
in a form prescribed by the Company, and will be effective only when delivered during the Participant’s lifetime to the Company at its executive offices, addressed to the attention of the Compensation Department in Louisville, Kentucky.

 10. Continuation of Employment. This Award shall not confer upon the Participant any right to continued employment by the Company, nor
shall this Award interfere in any way with the Company’s right to terminate the Participant’s employment at any time. A transfer of the Participant’s employment between the Company and any of its subsidiaries, or between any divisions
or subsidiaries of the Company shall not be deemed a termination of employment. 
 11. Miscellaneous. 

 

	 	A)	 This Award and the Participant’s rights under it are subject to all the terms and conditions of the Plan and this Restricted Stock Award
Agreement, as they may be amended from time to time, as well as to such rules as the Plan Administrator may adopt. The Plan Administrator may impose such restrictions on this Award as it may deem advisable, including, without limitation,
restrictions under applicable Federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such Shares. The
Restricted Stock shall be subject to the requirements that, if at any time the Plan Administrator shall determine that (i) the listing, registration or qualification of Class A Common Stock subject or related thereto upon any securities
exchange or under any federal or state law, or (ii) the consent or approval of any governmental body, or (iii) an agreement by the Participant with respect to the disposition of Shares of Class A Common Stock is necessary or desirable
as a condition of, or 

  
 Page 3 of 6

	 	
in connection with, the delivery or purchase of Shares pursuant thereto, then in such event, the grant of Restricted Stock shall not be effective unless such listing, registration, qualification,
consent, approval or agreement shall have been effected or obtained free of any conditions not acceptable to the Plan Administrator. 

 The Plan Administrator may administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Award, all of which shall be binding upon the Participant.

  

	 	B)	Subject to the provisions of the Plan, the Board of Directors may terminate, amend, or modify the Plan; provided, however, that no such termination, amendment,
or modification of the Plan may in any way adversely affect the Participant’s rights under this Award, without the written consent of the Participant. This Award may not be modified, amended or waived except by an instrument in writing signed
by both parties hereto. The waiver by either party of compliance with any provision of this Award shall not operate or be construed as a waiver of any other provision of this Award, or of any subsequent breach by such party of a provision of this
Award. 

  

	 	C)	The Company may deduct or withhold, or require the Participant to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the
Participant’s FICA obligation) required by law to be withheld with respect to any exercise of the Participant’s rights under this Award. 

 The Participant may remit sufficient cash to the Company to satisfy the withholding requirement or the Participant may elect to satisfy the withholding requirement, in whole or in part, by having the
Company withhold Shares having an aggregate Fair Market Value, on the date the tax is to be determined, equal to the minimum amount required to be withheld. Such elections shall be irrevocable, shall be in writing, and shall be signed by the
Participant before the day that the transaction becomes taxable. 
  

	 	D)	The Participant agrees to take all steps necessary to comply with all applicable federal and state securities law in exercising his rights under this Award.

  

	 	E)	This Award shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may
be required. 

  

	 	F)	The Company’s obligations under the Plan and this Award shall bind any successor to the Company, whether succession results from a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 

  

	 	G)	To the extent not preempted by federal law, this Award shall be governed by, and construed in accordance with, the laws of the State of Delaware.

  

	 	H)	For so long as IRC Section 162(m) applies in respect of compensation to the Participant, this Award shall comply with the requirements for satisfaction of the
performance-based exception to such section, unless the Plan Administrator determines that compliance is not desired or necessary for any Award or Awards. 

  
 Page 4 of 6

	 	I)	The parties acknowledge and agree that, to the extent applicable, this Award shall be interpreted in accordance with, and the parties agree to use their best efforts to
achieve timely compliance with, Section 409A of the Code and the Treasury Regulations and other interpretive guidance issued thereunder. Notwithstanding any provision of this Award to the contrary, in the event that the Company determines that
any compensation or benefits payable or provided under this Award may be subject to Section 409A of the Code, the Company may adopt such limited amendments to this Award and appropriate policies and procedures, including amendments and policies
with retroactive effect, that the Company reasonably determines are necessary or appropriate to (i) exempt the compensation and benefits payable under this Award from Section 409A of the Code and/or preserve the intended tax treatment of
the compensation and benefits provided with respect to this Award or (ii) comply with the requirements of Section 409A of the Code. 

 Notwithstanding any other provision of this Award, to the extent the issuance of the Restricted Stock represented by this Award following the Performance Period does not qualify as a “short term
deferral” pursuant to Section 1.409A-1(b)(4) (or any other exception to Section 409A) and is treated as non-qualified deferred compensation subject to Section 409A of the Code, then (a) no delivery of Shares hereunder shall
be made upon a Participant’s termination of employment unless such termination of employment constitutes a “separation from service” within the meaning of Section 1.409A-1(h) of the Treasury Regulations and (b) if the
Participant is deemed at the time of his termination of employment to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, then to the extent delayed delivery of Shares to which the Participant is entitled
under this Award, and which is deliverable to the Participant due to his termination of employment, is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such delivery of Shares shall not be made to
the Participant prior to the earlier of (x) the expiration of the six-month period measured from the date of the Participant’s “separation from service” with the Company (as such term is defined in Section 1.409A-1(h) of the
Treasury Regulations) or (y) the date of the Participant’s death. The determination of whether the Participant is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of his separation
from service shall be made by the Company in accordance with the terms of Section 409A of the Code and applicable guidance thereunder (including without limitation Section 1.409A-1(i) of the Treasury Regulations and any successor provision
thereto). 
 Although the Company intends to take such actions so as to allow the Award to avoid adverse tax treatment pursuant
to Section 409A of the Code and otherwise, the Company makes no representation to that effect and expressly disavows any covenant to maintain favorable or avoid unfavorable tax treatment. The Company shall be unconstrained in its corporate
activities without regard to the potential negative tax impact on the Participant. 
  

	 	J)	This Award is subject to the terms of the Plan and Administrative Guidelines promulgated under it from time to time. In the event of a conflict between this document
and the Plan, the Plan document as well as any determinations made by the Plan Administrator as authorized by the Plan document, shall govern. 

  

	 	K)	The invalidity or unenforceability of any provision of this Award shall not affect the validity or enforceability of any other provision of this Award.

  
 Page 5 of 6

	 	L)	THIS AWARD IS SUBJECT TO THE BROWN-FORMAN CORPORATION INCENTIVE COMPENSATION RECOUPMENT POLICY. BY EXECUTION HEREOF, THE UNDERSIGNED ACKNOWLEDGES THAT HE HAS BEEN
PROVIDED WITH A COPY OF SUCH INCENTIVE COMPENSATION RECOUPMENT POLICY AND UNDERSTANDS THE TERMS AND CONDITIONS THEREOF. 

 IN
WITNESS WHEREOF, the parties have caused this Award to be executed as of the Award Date. 
 BROWN-FORMAN CORPORATION 

 

			
	By:	 	/s/ Lisa Steiner
		 	 Lisa Steiner
 Senior Vice
President,
 Chief Human Resources Officer

  

	
	Agreed and Accepted:
	
	/s/ Paul C. Varga
	Paul C. Varga

  
 Page 6 of 6EX-10.2

 EXHIBIT 10.2 
 FORM OF 
 RESTRICTED STOCK AGREEMENT 

(Employee – Performance Vesting) 
 This RESTRICTED STOCK AGREEMENT (this “Agreement”) is made and entered into as of the                  day of
                    , 20         (the “Grant Date”), by and between Graham Corporation, a
corporation organized and existing under the laws of the State of Delaware and having an office at 20 Florence Avenue, Batavia, New York 14020 (the “Company”) and
                    (the “RSA Holder”). 
 W I T N E S S E T H : 
 WHEREAS, by action of its Board of Directors (the “Board”), the Company has adopted the Amended and Restated 2000 Graham Corporation Incentive Plan to Increase Shareholder Value (the
“Plan”), pursuant to which Restricted Stock Awards (“RSAs”) with respect to shares of common stock of the Company (“Shares”) may be granted to the Company’s eligible officers and employees; and 

WHEREAS, pursuant to Section 4 of the Plan, a Compensation Committee (the “Committee”) has been appointed to select the
individuals to whom RSAs shall be granted and to prescribe the terms and conditions of such grants; and 
 WHEREAS, the
Committee has determined that the RSA Holder is eligible to be granted an RSA and desires to grant an RSA to the RSA Holder, and the RSA Holder desires to accept such grant, on the terms and conditions hereinafter set forth; 

NOW, THEREFORE, the Company and the RSA Holder hereby agree as follows: 

Section 1. Grant of RSA. As of the date set forth above, the Company hereby grants, and the RSA Holder hereby accepts the
Company’s grant of, an RSA of              Shares (the “Restricted Shares”), on the terms and conditions hereinafter set forth. 

Section 2. Restrictions and Vesting. 
 (a) Subject to the terms set forth in this Agreement, provided that the RSA Holder has remained a full-time employee of the Company through
                    , 20         , the last day of the Company’s
                 fiscal year (the “Employment Date”), the Payout Percentage of the number of Restricted Shares will vest on the date that the Compensation
Committee of the Board ratifies the Company’s performance with respect to the Relative EBITDA Percentage and Absolute Consolidated Revenue Percentage following the last day of the Company’s
                 fiscal year (the “Vesting Date”). The Payout Percentage shall be the sum of the Relative EBITDA Percentage and the Absolute Consolidated
Revenue Percentage. 
 (b) The Relative EBITDA Percentage shall be the Company’s EBITDA margin for the Company’s
                 fiscal year compared to the EBITDA margin of the Baird Industrial Company Composite for calendar year
                 as follows: 
 [Insert Table For
Individual Awards] 
 If the Relative Fiscal Year
                 EBITDA Margin is equal to or greater than the level to have some Relative EBITDA Percentage, but less than or equal to the maximum level, and the
Relative Fiscal Year                  EBITDA Margin 

 actually attained is not represented in the table set forth above, then the Relative EBITDA Percentage shall
be determined by straight-line interpolation from the amounts specified in such table immediately less than and greater than the Relative Fiscal Year                 
EBITDA Margin actually attained. 
 (c) The Absolute Consolidated Revenue Percentage shall be based on the Company’s
consolidated revenue for the Company’s                  fiscal year as follows: 
 [Insert Table For Individual Awards] 
 If the
                 Fiscal Year Consolidated Revenue is equal to or greater than the level to have some Absolute Consolidated Revenue Percentage, but less than or equal to
the maximum level, and the                  Fiscal Year Consolidated Revenue actually attained is not represented in the table set forth above, then the Absolute
Consolidated Revenue Percentage shall be determined by straight-line interpolation from the amounts specified in such table immediately less than and greater than the
                 Fiscal Year Consolidated Revenue actually attained. 
 (d) Upon the death or Disability of the RSA Holder prior to the Employment Date: 

(i) the Relative Fiscal Year                  EBITDA
Margin shall be deemed to have met performance at the Target level, and the Relative EBITDA Percentage shall be         %; 
 (ii) the                  Fiscal Year Consolidated Revenue shall be deemed to have met performance at the Target level, and
the Absolute Consolidated Revenue Percentage shall be         %; and 
 (iii) the number
of Restricted Shares that vest shall be equal to the number of outstanding Restricted Shares under this Agreement, multiplied by the Payout Percentage, multiplied by a fraction, the numerator of which shall be the number of days from the Grant Date
through the date of the RSA Holder’s death or Disability, over the number of days from the Grant Date through the last day of the Company’s                 
fiscal year. 
 (e) If there is an employment agreement (or other agreement providing for treatment of equity awards upon a
Change in Control of the Company) by and between the RSA Holder and the Company on the date of the RSA Holder’s termination of employment, then the terms of such agreement shall apply instead of the terms of this Section 2(e). Otherwise,
in the event of the involuntary termination of the RSA Holder’s employment by the Company other than for Cause within the 12-month period following a Change in Control, or the voluntary termination of the RSA Holder’s employment by the RSA
Holder for Good Reason within the 12-month period following a Change in Control, the Restricted Shares will become fully vested, with all applicable performance requirements, if any, being deemed to have been satisfied at the target level applicable
to such Shares. 
 For purposes of this Agreement, “Cause” shall have the equivalent meaning as the term
“Cause” or “for Cause” has in any employment agreement between the RSA Holder and the Company, or in the absence of such an agreement that contains such a defined term, shall mean the willful misconduct by the RSA
Holder in connection with the performance of the RSA Holder’s duties to the Company, or any other conduct on the part of the RSA Holder which has been materially injurious to the Company. 

For purposes of this Agreement, “Good Reason” shall have the equivalent meaning as the term “Good
Reason” or “Reasonable Determination” has in any employment agreement between the RSA Holder and the Company, or in the absence of such 

 an agreement that contains such a defined term, shall mean the occurrence of any one of the following events
without either the RSA Holder’s express prior written consent or substantial cure by the Company within 30 days after the RSA Holder gives written notice to the Company describing the event and requesting cure, provided RSA Holder has given
notice within 30 days after he or she became aware of any one or more of the following events constituting Good Reason: 
 (i) A
change in the nature or scope of the RSA Holder’s authority from that prior to a Change in Control, a reduction in the RSA Holder’s total compensation (including all and any base compensation, bonuses, incentive compensation and benefits
of any kind or nature whatsoever) from that prior to a Change in Control, or failure of the Company to make any increase in compensation to which the RSA Holder may be entitled under any employment agreement, or a change requiring the RSA Holder to
perform services other than in Batavia, New York, except for required travel on the Company’s business to an extent substantially consistent with the RSA Holder’s present business travel obligations; or 

(ii) subsequent to a Change in Control of the Company, and without the RSA Holder’s express written consent, the assignment to the
RSA Holder of any duties inconsistent with the RSA Holder’s positions, duties, responsibilities and status with the Company immediately prior to a Change in Control, or a change in the RSA Holder’s reporting responsibilities, titles, or
offices as in effect immediately prior to a Change in Control, or any removal of the RSA Holder from or any failure to re-elect the RSA Holder to any of such positions, except in connection with the termination of employment for Cause, death,
disability or retirement; or 
 (iii) subsequent to a Change in Control of the Company, a reduction by the Company in the RSA
Holder’s base salary as in effect on the date hereof or as the same may be increased from time to time, or failure of the Company to make an increase in compensation to which the RSA Holder may be entitled under any employment agreement; or

 (iv) subsequent to a Change in Control of the Company, a failure by the Company to continue any bonus plans in which the RSA
Holder is presently entitled to participate (the “Bonus Plans”) as the same may be modified from time to time but substantially in the forms currently in effect, or a failure by the Company to continue the RSA Holder as a participant in
the Bonus Plans on at least the same basis as the RSA Holder presently participates in accordance with the Bonus Plans; or 

(v) subsequent to a Change in Control of the Company, the failure by the Company to continue in effect (subject to such changes as may be
required by law from time to time) any benefit or compensation plan, stock ownership plan, stock purchase plan, stock option plan, life insurance plan, health-and-accident plan or disability plan in which the RSA Holder is participating at the time
of Change in Control of the Company (or plans providing him with substantially similar benefits), the taking of any action by the Company which would adversely affect the RSA Holder’s participation in or materially reduce his benefits under any
of such plans or deprive the RSA Holder of any material fringe benefit enjoyed at the time of the Change in Control, or the failure by the Company to provide the RSA Holder with the number of paid vacation days to which the RSA Holder is then
entitled in accordance with the Company’s normal vacation policy in effect on the date hereof; or 
 (vi) prior to a Change
in Control of the Company, the failure by the Company to obtain the assumption by any successor of any employment agreement between the Company and the RSA Holder, if assumption of such agreement is required by its terms. 

 (f) Except as otherwise provided by Section 2(d) or Section 2(e), or unless the
Committee determines otherwise, if the RSA Holder’s employment terminates before the Employment Date for any reason, the unvested Restricted Shares as of such date shall be forfeited and cancelled immediately. 

Section 3. Rights as a Stockholder. The RSA Holder will have the rights of a stockholder with respect to the Restricted
Shares, including, but not limited to, the right to receive such cash dividends, if any, as may be declared on such Shares from time to time and the right to vote (in person or by proxy) such Restricted Shares at any meeting of stockholders of the
Company. Notwithstanding the foregoing, the RSA Holder shall repay to the Company any dividends or other distributions paid to the RSA Holder on any Restricted Shares that do not become vested Shares under Section 2. 

Section 4. Restrictions on Transfer of Restricted Shares. The Restricted Shares, and the right to vote the Restricted Shares
and to receive dividends thereon, may not, except as otherwise provided in the Plan, be sold, assigned, transferred, pledged or encumbered in any way prior to the Vesting Date, whether by operation of law or otherwise, except by will or the laws of
descent and distribution. The RSA Holder agrees that until the Vesting Date, any certificate representing the Restricted Shares (or any portion thereof) will be held by the Company’s stock transfer agent or other representative of the Company
(the “RSA Agent”) until the applicable performance is satisfied and the Company’s provides written authorization to such RSA Agent. 
 Section 5. Registration and Delivery of Restricted Shares. The Company’s obligation to deliver Shares under this Agreement and/or authorize the RSA Agent to release Restricted Shares
shall, if the Committee so requests, be conditioned upon the receipt of a representation as to the investment intention of the RSA Holder to whom such Shares are to be delivered, in such form as the Committee shall determine to be reasonably
necessary or advisable to comply with the provisions of applicable federal, state or local law. It may be provided that any such representation shall become inoperative upon a registration of the Shares or upon the occurrence of any other event
eliminating the necessity of such representation. The Company shall not be required to deliver any Shares under this Agreement prior to (a) the admission of such Shares to listing on any stock exchange on which Shares may then be listed, or
(b) the completion of such registration or other qualification under any state or federal law, rule or regulations as the Committee shall determine to be necessary or advisable. 

Section 6. Adjustments in the Event of Reorganization. In the event of any merger, consolidation, or other business
reorganization in which the Company is the surviving entity, and in the event of any stock split, stock dividend or other event generally affecting the number of Shares held by each person who is then a shareholder of record, the number of
Restricted Shares shall be adjusted to account for such event. Such adjustment shall be effected by multiplying such number of Restricted Shares by an amount equal to the number of Shares that would be owned after such event by a person who,
immediately prior to such event, was the holder of record of one Share. 
 Section 7. No Right to Continued
Employment. Nothing in this Agreement nor any action of the Board or Committee with respect to this Agreement shall be held or construed to confer upon the RSA Holder any right to a continuation of employment by the Company or any of its
affiliates which employ the RSA Holder. The RSA Holder may be dismissed or otherwise dealt with as though this Agreement had not been entered into. 

 Section 8. Taxes. Where any person is entitled to receive Shares pursuant to the
RSA granted hereunder, the Employer shall have the right to require such person to pay to the Employer the amount of any tax which the Employer is required to withhold with respect to such Shares, or, in lieu thereof, to retain, or to sell without
notice, a sufficient number of Shares to cover the amount required to be withheld. 
 Section 9. No Assignment. The
RSA granted hereunder shall not be subject in any manner to anticipation, alienation or assignment, nor shall such RSA be liable for or subject to debts, contracts, liabilities, engagements or torts, nor shall it be transferable by the RSA Holder
other than by will or by the laws of descent and distribution. 
 Section 10. Notices. Any communication required or
permitted to be given under the Plan, including any notice, direction, designation, comment, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally or five
(5) days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such party at the address listed below, or at such other address as one such party may by written notice specify to the
other party: 
 (a) If to the Committee: 
 Graham Corporation 
 20 Florence Avenue 

Batavia, New York 14020 
 Attention: Chief Accounting Officer 
 (b) If to the RSA Holder, to the RSA
Holder’s then current residential address as set forth in the Company’s personnel records. 
 Section 11.
Successors and Assigns. This Agreement shall inure to the benefit of and shall be binding upon the Company and the RSA Holder and their respective heirs, successors and assigns. 

Section 12. Construction of Language. Whenever appropriate in the Agreement, words used in the singular may be read in the
plural, words used in the plural may be read in the singular, and words importing the masculine gender may be read as referring equally to the feminine or the neuter. Any reference to a section shall be a reference to a section of this Agreement,
unless the context clearly indicates otherwise. Capitalized terms not specifically defined herein shall have the meanings assigned to them under the Plan. 
 Section 13. Governing Law. This Agreement shall be construed, administered and enforced according to the laws of the State of New York without giving effect to the conflict of laws principles
thereof, except to the extent that such laws are preempted by the federal law. 
 Section 14. Amendment. This
Agreement may be amended, in whole or in part and in any manner not inconsistent with the provisions of the Plan, at any time and from time to time by written agreement between the Company and the RSA Holder. 

Section 15. Plan Provisions Control. This Agreement and the rights and obligations created hereunder shall be subject to all
of the terms and conditions of the Plan. In the event of any conflict between the provisions of the Plan and the provisions of this Agreement, the terms of the 
 Plan, which are incorporated herein by reference, shall control. By signing this Agreement, the RSA Holder acknowledges receipt of a copy of the Plan. 

 Section 16. Acceptance by RSA Holder. By executing this Agreement and returning
a fully executed copy hereof to the Committee at the address specified in section 10, the RSA Holder signifies his acceptance of the terms and conditions of this RSA. If a fully executed copy of this Agreement is not received by the Committee within
forty-five (45) days after the date when it is presented to the RSA Holder, the Committee may revoke the RSA granted, and thereby avoid all obligations, hereunder. 
 Section 17. Recoupment. This Agreement (and any Shares or dividends payable hereunder) shall be subject to recovery by the Company under any incentive compensation recoupment policy maintained
by the Company, as such policy may be amended from to time. In addition, notwithstanding any other provision of the Plan or this Agreement to the contrary, in order to comply with Section 10D of the Securities Exchange Act of 1934, as amended,
and any regulations promulgated, or national securities exchange listing conditions adopted, with respect thereto (collectively, the “Clawback Requirements”), if the Company is required to prepare an accounting restatement due to the
material noncompliance of the Company with any financial reporting requirements under the securities laws, then the RSA Holder shall return to the Company, or forfeit if not yet paid, the Shares under this Agreement received during the three-year
period preceding the date on which the Company is required to prepare the accounting restatement, based on the erroneous data, in excess of the number of shares that would have vested based on the accounting restatement, as determined by the
Committee, in accordance with the Clawback Requirements and any policy adopted by the Committee pursuant to the Clawback Requirements. 

Section 18. Golden Parachute Limitation. 
 (a) In the event that the independent auditors most recently selected by the Board (the “Auditors”) determine that any payment by the Company to or for the benefit of the RSA Holder would be
nondeductible by the Company for federal income tax purposes because of the provisions concerning “excess parachute payments” in Section 280G of the Code, then the total amount of all payments by the Company shall be reduced (but not
below zero) to the Reduced Amount. The “Reduced Amount” shall be the amount that maximizes the total amount of the payments without causing any payment to be nondeductible by the Company because of Section 280G of the Code.

 (b) If the Auditors determine that any payment by the Company would be nondeductible by the Company because of
Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), then the Company shall promptly give the RSA Holder notice to that effect and a copy of the detailed calculation thereof and of the Reduced Amount, and the
RSA Holder may then elect, in his or her sole discretion and in compliance with the requirements of Section 409A of the Code, which and how much of the payments shall be eliminated or reduced (as long as after such election the aggregate
present value of the payments equals the Reduced Amount) and shall advise the Company in writing of his or her election within ten days of receipt of notice. If no such election is made by the RSA Holder within such ten-day period, then the Company
may elect which and how much of the payments shall be eliminated or reduced (as long as after such election the aggregate present value of the payments equals the Reduced Amount) and shall notify the RSA Holder promptly of such election. All
determinations made by the Auditors shall be binding upon the Company and the RSA Holder and shall be made within 60 days of the date when a payment becomes payable. 
 (c) As a result of uncertainty in the application of Section 280G of the Code at the time of an initial determination by the Auditors hereunder, it is possible that payments will have been made by
the Company that should not have been made (an “Overpayment”) or that additional payments that will not have been made by the Company could have been made (an 

 “Underpayment”), consistent in each case with the calculation of the Reduced Amount hereunder. In
the event that the Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against the Company or the RSA Holder that the Auditors believe has a high probability of success, determine that an Overpayment has been made,
such Overpayment shall be treated for all purposes as a loan to the RSA Holder which he or she shall repay to the Company, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code; provided, however, that
no amount shall be payable by the RSA Holder to the Company if and to the extent that such payment would not reduce the amount subject to taxation under Section 4999 of the Code or to the extent that such loan would be prohibited under
Section 402 of the Sarbanes-Oxley Act of 2002. In the event that the Auditors determine that an Underpayment has occurred, such Underpayment shall promptly be paid or transferred by the Company to or for the benefit of the RSA Holder, together
with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code. 
 Section 19. Prior
Performance-Vesting Restricted Stock Awards. For the avoidance of doubt, the continuing employment requirement for the performance-vesting restricted stock awards granted to the RSA Holder on May 20, 2010, May 26, 2011 and
May 30, 2012 is the last day of the last fiscal year in the performance period applicable to each such award; provided, however, that the number of Restricted Shares that become vested under such performance-vesting restricted stock awards will
not be determinable until the date that the Company’s performance attainment with respect to the applicable performance goals under each such award is ratified by the Committee following the end of the performance period applicable to each such
award. 
 IN WITNESS WHEREOF, the RSA Holder has executed, and the Company has caused its duly authorized representative to
execute, this Agreement as of the date first above written. 
  

			
	GRAHAM CORPORATION
		
	By:	 	 
		 	James R. Lines
		 	President and Chief Executive Officer

  

	
	ATTEST:
	
	 
	Corporate Secretary

  

	
	RSA HOLDER
	
	  
	Name:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00219-of-00352.parquet"}]]