Document:

Document

Exhibit 10.2

Etsy, Inc.
Amended and Restated Compensation Program 
for Non-Employee Directors
Effective as of March 5, 2021
This program has been established in order to attract and retain non-employee directors who have the knowledge, skills and experience to serve as a member of the Board of Directors (the “Board”) of Etsy, Inc. (the “Company”).
All equity awards granted under this program shall be granted under the Company’s then-current equity incentive plan (or director equity incentive plan, if any).  Capitalized terms used but not defined will have the meaning set forth in the applicable equity incentive plan or equity award agreement.
A.    Continuing Directors
Annual Board Retainers and Additional Retainers
Each non-employee director will receive an Option and/or Restricted Stock Units (the “Annual Equity Award” and in each case, “Equity”) on the date of the regular annual meeting of stockholders (the “Annual Meeting”) unless he or she received a New Director Equity Award in the same calendar year as the regular annual meeting.  The fair value1 on the date of grant of each Annual Equity Award will equal the amount of the Annual Board Retainer, plus the amount of any applicable Additional Retainers (other than any Additional Retainer for the Board Chair).  
Each Annual Equity Award will vest in full on the date of the next Annual Meeting (the “Next Annual Meeting”), provided that the director has served continuously as a member of the Board during the vesting period, and will vest in full in the event that the Company is subject to a Change in Control or in the event of the director’s death.
If a director is not eligible to receive an Annual Equity Award, any applicable Additional Retainers (other than any Additional Retainer for the Board Chair) will be paid in the form of cash on the date of the Next Annual Meeting, provided that the director has served continuously as a member of the Board until the Next Annual Meeting.
Any Additional Retainer for the Board Chair will be paid in the form of an Option and/or Restricted Stock Units, with a fair value on the date of grant equal to the amount of such Additional Retainer for the Board Chair.  Such award will be granted on the date of the Annual Meeting and will vest in full on the date of the Next Annual Meeting, provided that the director has served continuously as a member of the Board during the vesting period, and will vest in full in the event that the Company is subject to a Change in Control or in the event of the director’s death.

1 “Fair value” of all equity awards described in this Compensation Program will be calculated in accordance with the Company’s Equity Grant Policy.
218517869 v12 

B.     New Directors
Each new, non-employee director who joins the Board will be granted Equity in the same form of Equity as the Annual Equity Award most recently granted to the Company’s continuing directors and with a fair value on the date of grant equal to the amount of the Annual Board Retainer, plus the amount of any applicable Additional Retainers (other than any Additional Retainer for the Board Chair) (the “New Director Equity Award”).  If such director’s appointment to the Board becomes effective after the date of the Annual Meeting, the director’s New Director Equity Award will be pro-rated based on the number of whole months that the director serves on the Board before the Next Annual Meeting.
Each New Director Equity Award will be granted on the first business day of the month following the month in which the director’s appointment to the Board becomes effective (or, if such day is not a trading day, on the following trading day) or, if the director’s appointment to the Board becomes effective during the month of, and prior to, the date of the Annual Meeting, then the New Director Equity Award will be granted on the date of the Annual Meeting.
Each New Director Equity Award will vest in full on the date of the Next Annual Meeting, provided that the director has served continuously as a member of the Board during the vesting period, and will vest in full in the event that the Company is subject to a Change in Control or in the event of the director’s death.
If a new director is eligible to receive an Additional Retainer for the Board Chair, it will be paid in the form of an Option and/or Restricted Stock Units, with a fair value on the date of grant equal to the amount of such Additional Retainer for the Board Chair.  If such director’s appointment to the Board becomes effective after the date of the Annual Meeting, such award will be pro-rated based on the number of whole months that the director serves on the Board before the Next Annual Meeting.  Such award will be granted on the same date that the director is granted his or her New Director Equity Award and will vest in full on the date of the Next Annual Meeting, provided that the director has served continuously as a member of the Board during the vesting period, and will vest in full in the event that the Company is subject to a Change in Control or in the event of the director’s death.
C.     Additional Catch-Up Retainers
If a director becomes the Board Chair, or a member or Chair of a Board committee, after the date of the Annual Meeting (for continuing directors) or the date the director’s appointment to the Board became effective (for new directors), then the director will be entitled to receive an additional amount (the “Additional Catch-Up Retainer”) equal to the excess of  the director’s Additional Retainers for the prior and new roles (the “Original Additional Retainer”) over the Additional Retainers that were actually paid to the director as of the date of the Annual meeting.  The Original Additional Retainer will be pro-rated based on the number of whole months that the director served in each additional role during the period from the Annual Meeting (for continuing directors) or the date the director’s appointment to the Board became effective (for new directors) until the Next Annual Meeting, 
The amount of any Additional Catch-Up Retainer attributable to any Additional Retainers (other than any Additional Retainer for the Board Chair) will be paid in the form of cash on the date of the Next Annual Meeting, provided that the director has served continuously as a member of the Board until the Next Annual Meeting.
218517869 v12 

If a director is eligible to receive a Catch-Up Retainer attributable to an Additional Retainer for the Board Chair, it will be paid in the form of an Option and/or Restricted Stock Units, with a fair value on the date of grant equal to such amount.  Such award will be granted on the first business day of the month following the month in which the director becomes the Board Chair (or, if such day is not a trading day, on the following trading day).  Such award will vest in full on the date of the Next Annual Meeting, provided that the director has served continuously as a member of the Board during the vesting period, and will vest in full in the event that the Company is subject to a Change in Control or in the event of the director’s death.
D.    Schedule of Fees
1.     Annual Board Retainer: $250,000 
2.     Additional Retainers: 
						
	Board Chair	$100,000
	Chair of the Audit Committee	$20,000
	Member (other than Chair) of the Audit Committee	$10,000
	Chair of the Compensation Committee	$16,000
	Member (other than Chair) of the Compensation Committee	$8,000
	Chair of the Nominating and Corporate Governance Committee	$10,000
	Member (other than Chair) of the Nominating and Corporate Governance Committee	$5,000
	Member of any other Committee constituted by the Board from time to time	$40,000 (unless otherwise determined by the Board or Compensation Committee)

E.     Expenses
The reasonable expenses incurred by non-employee directors in connection with attendance at Board or committee meetings or other Company-related activities will be reimbursed upon submission of appropriate documentation.
F.     Administration
This Program shall be administered by the Compensation Committee of the Board (the “Compensation Committee”), which shall have the power to interpret these provisions and approve changes from time to time as it deems appropriate.

    
218517869 v12d033121dex101

 

 

 

Exhibit 10.1 

1
 
 
 
January 1, 2021 
 

RETENTION 
GRANT 
AGREEMENT 
 
 
 
Employee 
Name:
 

 
ID Number: 
 

Payroll Country:
 

 
 

Number 
of Restricted Stock Units 
Granted: 
 
Grant Date:
 

Grant Price: 

 
Vesting Schedule:
 
This 
grant vests 
one-half of the award 
on the first anniversary 
of the Grant Date 
and 
the 
remainder 
on 
the 
second 
anniversary 
of 
the 
Grant 
Date, 
subject 
to 
the 
Employee’s 
continued 
employment through the applicable 
vesting date, 
or the Employee’s earlier termination by 
the 
Company 
without Cause 
or by the Employee for Good Reason 
(as those 
terms are defined in the Further Terms and 
Conditions below). 
 
 
Further Terms 
and Conditions 
 
1.
 
Type and Size of Grant
. 
Subject to the 
2014 Omnibus Stock 
and Performance 
Incentive 
Plan 
(the 
Plan) 
and 
this 
Agreement, 
the 
Company 
grants 
to 
the 
employee 
named 
above 
(the 
Employee) 
Restricted 
Stock Units, 
the number of which 
is set forth above. 
2.
 
Grant Date, Price, and Plan
. 
The Grant 
Date and 
the Grant Price are 
as set 
forth 
above 
. 
Awards 
are made 
under the Plan. 
This 
Award is made in lieu of a 
bonus. 
3.
 
Vesting, 
Restrictions, Forfeiture, 
and Lapse of 
Restrictions
. 
The Restricted Stock Units subject 
hereto may be 
canceled or forfeited as 
set forth herein. 
Except as 
otherwise noted 
in this Agreement 
, 
the 
following 
summary 
table 
describes restrictions 
and 
terms, 
forfeiture, 
and 
lapse of 
restrictions, 
subject to the more 
detailed provisions 
set forth below: 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 10.1 

2
 
Summary 
Table 
Summary of Termination 
Rules 
Status 
Termination 
Date 
Forfeiture or Lapsing 
of Restrictions 
Layoff 
Any date after 
Grant Date 
Restrictions lapse 
on 
Termination 
date 
Disability 
Any date after 
Grant Date 
Restrictions lapse 
on 
Termination 
date 
Death 
Any date after 
Grant Date
Restrictions lapse 
on 
Termination 
date 
Divestitures, 
outsourcing, 
and 
moves to joint ventures 
Any date after 
Grant Date
Canceled upon Termination, 
unless 
approved 
otherwise 
Without Cause 
Any date after 
Grant Date 
Restrictions lapse 
on 
Termination 
date 
Good Reason 
Any date after 
Grant Date 
Restrictions lapse 
on 
Termination 
date 
All other Terminations 
To the extent 
vested 
Restrictions lapse 
on 
vesting 
date, 
To the extent not 
vested 
Canceled upon Termination 
(a)
 
Vesting. 
The Restricted 
Stock Units granted 
under this Agreement 
shall vest as set forth in 
the 
Vesting 
Schedule above. 
All 
vesting shall 
be 
in 
whole 
shares, and 
fractions 
shall be 
rounded 
down to nearest 
whole share. 

(b)
 
Restrictions 
and Terms. 
(i)
 
The 
Award 
shall 
be 
held 
in 
escrow 
by 
the 
Company 
until 
the 
lapsing of 
restrictions 
placed upon 
the Award. 
The 
Employee shall not 
have the 
right to sell, transfer, assign, or 
otherwise 
dispose 
of 
Restricted 
Stock 
Units 
granted 
in 
the 
Award 
until 
the 
escrow is 
terminated. 
Except 
as 
set 
forth 
below, 
the 
Award 
shall 
be 
forfeited 
and 
the 
related 
Restricted 
Stock Units canceled 
upon the Employee’s Termination of Employment 
with 
the Company 
prior to vesting in 
accordance 
with paragraph (a) above. 
Restrictions shall 
lapse on the 
Restricted 
Stock Units as 
they become 
vested in accordance 
with paragraph 
(a) above. 
Restrictions 
shall lapse 
on the Restricted Stock 
Units granted 
in the Award 
on 
the day following the Employee’s Termination of Employment 
with the Company, if the 
Award 
has 
not 
been 
canceled 
prior 
to 
that 
day. 
Upon 
the 
lapsing of 
restrictions, 
the 
number of shares 
of unrestricted Stock equal 
to the number 
of shares 
of Restricted Stock 
Units 
for 
which 
the 
restrictions 
have 
so 
lapsed 
shall be 
registered 
in 
the 
Employee’s 
name, 
and 
the 
related 
shares 
of 
Restricted 
Stock 
Units 
shall 
be 
canceled; 
provided, 
however, 
that 
in 
places where 
it 
is determined 
by 
the 
Administrator that 
payout in the 
form of unrestricted Stock is 
prohibited by law, regulation, or decree, 
or where the 
cost of 
legal 
compliance to 
issue the 
unrestricted 
Stock 
would 
be 
unreasonably expensive, the 
Fair 
Market Value 
of such unrestricted Stock 
shall be paid in 
cash instead of settlement 
of 
the 
Award 
in 
unrestricted 
Stock. 
Cash payouts are only permitted 
where such legal 
restrictions exist. 
Settlement 
of the Award in unrestricted Stock 
or cash payout, 
if 
any, 
shall be 
made when 
the 
restrictions 
lapse, but in 
any event, shall be 
made no later 
than 
March 15 of the year 
following the year in 
which such 
restrictions lapse. 
(ii)
 
Restricted 
Stock Units do 
not have any voting rights 
or other rights generally 
associated 
with 
Stock 
and
 
are 
merely 
an 
obligation 
of 
the 
Company 
to 
make 
settlement 
in 
accordance 
with 
the 
terms 
and 
conditions 
applicable 
to 
such 
Restricted 
Stock 
Units. 

Restricted 
Stock Units shall accrue 
a dividend equivalent 
at such times 
as a cash dividend 
is 
paid 
on 
the 
Stock 
of 
the 
Company, 
which 
dividend 
equivalent shall 
be 
credited 
as 

 

 

 

 

 

 

 

Exhibit 10.1 

3
 
reinvested in 
additional Restricted 
Stock Units as 
of the date 
such dividends are 
payable, 
and 
such 
Restricted 
Stock 
Units 
shall 
be 
subject 
to 
these 
terms 
and 
conditions. 
The 
number 
of 
Restricted 
Stock 
Units 
acquired 
through 
this 
reinvestment 
of 
dividend 
equivalents shall 
be 
calculated using 
the 
Fair 
Market Value 
at the time 
of the dividend 
equivalent is 
accrued. 
Restricted Stock 
Units acquired 
from dividend equivalents 
shall be 
paid at the time and 
in the manner 
of settlement of 
the Restricted 
Stock Units as 
set forth 
in section 3(b)(i). 

(c)
 
Termination of Employment. 
(i)
 
General 
Rule 
for 
Termination. 
If, 
prior 
to 
the 
date on 
which 
in 
accordance with 
the 
schedule 
set 
forth 
in 
the 
Award, 
the 
Employee's 
employment 
with 
a 
Participating 
Company 
shall 
be 
terminated 
for 
any 
reason except 
death, 
Disability, 
or 
Layoff, 
any 
Restricted 
Stock Units remaining 
in escrow 
pursuant to such 
Award shall be canceled and 
all rights thereunder shall 
cease; provided that 
the Authorized Party may, in its 
or his sole 
discretion, 
determine 
that 
all 
or 
any 
portion 
of 
an 
Award 
shall not 
be 
canceled due to 
Termination of Employment. 
(ii)
 
Layoff. 
If, 
after 
the 
date 
the 
Award 
is 
granted, 
the 
Employee's employment 
with 
a 
Participating Company shall 
be terminated by 
reason of Layoff, the Employee 
shall retain 
all 
rights 
provided 
by 
the 
Award 
at 
the 
time 
of 
such 
Termination 
of E 
mployment. 
In 
such 
case, 
the 
restrictions 
on 
the 
Award 
shall lapse 
on 
the 
date of 
Termination 
of 
the 
Employee from the employ of the 
Company and 
its subsidiaries, 
and settlement shall 
be 
made in accordance 
with the settlement 
provisions above. 
(iii)
 
Disability
. 
 
If, 
after 
t
he 
date 
the 
Award 
is 
granted, 
the
 
Employee
 
shall 
terminate 
employment 
following 
Disability 
of the Employee 
, 
the Employee 
shall retain all rights 
provided by the 
Award at the time of such Termination of Employment. 
In such 
case, the 
restrictions on the 
Award shall lapse on the 
date of Termination of Employment from the 
employ of the 
Company and 
its subsidiaries, 
and settlement shall 
be made in accordance 
with the settlement 
provisions above. 
(iv)
 
Death. 
If, after the date an 
Award is granted, the Employee shall 
die while in 
the employ 
of a Participating Company
, 
or after Termination of Employment 
by reason 
of Disability, 
or 
Layoff (and 
prior 
to the cancellation of 
the Award), 
the executor or 
administrator of 
the estate of the 
Employee or the person 
or persons 
to whom the 
Award shall 
have 
been 
validly 
transferred 
by 
the 
executor 
or 
the 
administrator 
pursuant 
to will 
or the laws of 
descent and distribution 
shall have 
the right to settlement 
of the Award to the same 
extent 
the Employee would have, 
had the Employee 
not died. 
In such 
case, the 
restrictions 
on 
the 
Award 
shall 
lapse 
upon 
the 
determination 
of 
death 
by 
the 
Administrator, 
and 
settlement shall 
be made in accordance 
with the settlement 
provisions above. 
No transfer 
of 
an 
Award, 
or 
of 
the 
unrestricted 
Stock 
or 
other 
proceeds 
of 
an 
Award, 
by 
the 
Employee by will or by 
the laws 
of descent and 
distribution shall be 
effective to bind 
the 
Company unless 
the Administrator shall 
have been 
furnished with written notice 
thereof 
and a copy of 
the will and 
such other evidence 
as the Administrator may 
deem necessary 
to establish the 
validity of the transfer 
and the 
acceptance 
by the transferee or transferees 
of the terms 
and conditions 
of such Award. 
(v)
 
Transfers and 
Leaves. 
Transfer 
of 
employment between Participating 
Companies shall 
not constitute Termination of Employment for the purpose 
of any Award granted 
under 
the Program. 
Whether any 
leave of absence 
shall constitute 
Termination of Employment 
for 
the 
purposes of 
any 
Award 
granted 
under 
the 
Program 
shall be 
determined 
by the 
Administrator, 
in each case in accordance with applicable law and 
by application of 
the 
policies and 
procedures adopted 
by the Company in 
relation to such 
leave of absence. 
(vi)
 
Divestiture, 
Outsourcing, 
or 
Move 
to 
Joint 
Venture 
. 
If, 
after 
the 
date the 
Award 
is 
granted, the Employee ceases 
to be employed by 
Participating Company as 
a result 
of (a) 
the 
outsourcing 
of 
a 
function, 
(b) 
the 
sale or 
transfer 
of 
all 
or 
a 
portion 
of 
the equity 
interest 
of 
such 
Participating 
Company 
(removing 
it 
from 
the 
controlled 
group 
of 
companies 
of which the 
Company is a 
part), (c) the sale 
of all or substantially 
all 
of 
the 

 

 

 

Exhibit 10.1 

4
 
assets of such 
Participating Company to 
another employer outside 
of the controlled group 
of 
corporations 
(whether 
the 
Employee 
is offered 
employment or 
accepts employment 
with 
the 
other 
employer), 
(d) 
the 
Termination 
of 
the 
Employee 
by 
a 
Participating 
Company followed 
by 
employment 
within 
a 
reasonable time 
with 
a 
company or other 
entity in which 
the Company 
owns, directly or indirectly, at least a 
50% interest, prior 
to 
exercise 
of an Award, 
or (e) any other sale 
of assets 
determined by the 
Authorized 
Party 
to be considered a 
divestiture under this 
program, the Authorized Party may, in its or 
his 
sole discretion, determine that all 
or a portion of any 
such Award shall 
not 
be 
canceled. 

In such cases, 
the restrictions on the 
Award shall lapse on the 
date of Termination 
of 
the 
Employee from the employ of the 
Company and 
its subsidiaries, 
and settlement shall 
be 
made in accordance 
with the 
settlement provisions 
above. 
(vii)
 
Termination 
without 
Cause. 
If, 
after the 
date the Award 
is granted, the 
Company shall 
terminate 
employment 
of 
the 
Employee 
without 
Cause, 
the 
Employee 
shall retain 
all 
rights provided by the 
Award at the time of such 
Termination of Employment. 
In 
such 
case, the restrictions 
on the Award shall 
lapse on the 
date of Termination of Employment 
from 
the 
employ 
of 
the 
Company and 
its 
subsidiaries, and 
settlement shall be made in 
accordance 
with the settlement 
provisions above; 
provided, however, that the Employee 
shall not 
be entitled to the vesting 
for Termination without Cause 
described herein 
unless 
the 
Employee 
first 
executes a 
written 
release substantially 
in the form 
provided by the 
Company and, to 
the extent 
such release 
is revocable by its 
terms, only if the 
Employee 
does not 
revoke 
it, 
which 
such release must be executed and delivered 
to the Company 
within 30 days 
of the Employee’s Termination 
. 
(viii)
 
Termination 
with 
Good 
Reason. 
If, 
after the 
date the Award 
is granted, the 
Employee 
shall 
terminate 
employment 
for
 
Good 
Reason, 
the 
Employee
 
shall 
retain 
all 
rights 
provided by the 
Award at the time of such Termination of Employment. 
In such 
case, the 
restrictions on the 
Award shall lapse on the 
date of Termination of Employment from the 
employ of the 
Company and 
its subsidiaries, 
and settlement shall 
be made in accordance 
with the settlement 
provisions above; 
provided, however, that the Employee shall not 
be 
entitled 
to 
the 
vesting 
for 
Good 
Reason 
described 
herein 
unless 
the 
Employee 
first 
executes a 
written release 
substantially 
in the form provided by the Company 
and, to 
the 
extent 
such release 
is revocable 
by 
its 
terms, 
only 
if 
the 
Employee 
does not revoke it, 
which such release 
must be executed 
and delivered 
to the Company 
within 30 days of the 
Employee’s Termination.
 

(ix)
 
Change 
of Control. 
Upon a 
Change 
of Control, the following shall 
apply to any 
Award: 
(1)
 
Each Employee shall 
immediately become 
fully vested in 
such Award that is not 
assumed by, or substituted for, by an acquirer in 
connection with 
the 
Change 
of 
Control, and such 
Award shall not thereafter be forfeitable for any 
reason, except 
as set forth in Section 3(c). 
(2)
 
With 
regard 
to 
any 
other 
Award, 
each Employee 
shall become 
fully 
vested in 
such Award upon incurring a Severance 
following such Change 
of Control, 
and 
such Award shall not thereafter be 
forfeitable for any reason, except 
as set 
forth 
in Section 3(c). 
(3)
 
In the event 
of vesting of an Award pursuant to 
either Section 3(ix)(1) or Section 
3(ix)(2), 
all restrictions and 
other limitations 
applicable to 
any Restricted 
Stock 
granted in any 
Award shall lapse. 
With regard to such 
Restricted 
Stock, 
it 
shall 
become 
free 
of 
all 
restrictions 
and 
become transferable. 
With 
regard 
to 
such 
Restricted 
Stock 
Units, 
all 
restrictions 
and 
other 
limitations 
applicable to 
the 
Restricted 
Stock 
Units shall lapse 
and the Restricted 
Stock Units shall 
be 
settled 
in 
unrestricted 
Stock 
or 
cash at 
the 
same times 
and 
upon 
the 
same events as it 
would 
otherwise have 
been made 
in 
accordance with 
the 
settlement provisions 
above. 
(x)
 
Notwithstanding 
anything 
herein 
to 
the 
contrary, 
in 
the 
event that 
this 
Award 
or 
the 
dividend 
equivalents 
associated with 
this 
Award 
are 
includible 
in 
income 
pursuant 
to 

 

 

 

 

 

 

 

Exhibit 10.1 

5
 
section 
409A 
of 
the 
Internal 
Revenue 
Code, 
settlement 
of 
the 
Award 
or 
any 
other 
distribution 
hereunder 
due 
to 
S
e
paration 
from 
S
ervice 
with 
the 
Company 
and
 
its 
subsidiaries 
shall 
not 
be 
made 
to 
a 
“specified 
employee” 
(as 
that 
term 
is 
defined 
in 
section 409A(a)(2)(B)(i)) 
prior 
to six months after 
the specified employee’s 
Separation 
from Service from the Company and 
its subsidiaries 
(or, if earlier, 
the date 
of death of the 
specified employee). 
(d)
 
Detrimental Activities, 
Suspension 
of Award, 
and Required 
Recoupment. 
(i)
 
If the Authorized Party determines 
that, subsequent 
to the grant of any 
Award but prior to 
any Change of Control, the 
Employee has 
engaged or 
is engaging 
in any activity 
which, 
in the sole judgment 
of the Authorized Party, is or may 
be detrimental to 
the Company 
or 
a 
subsidiary, 
the 
Authorized 
Party 
may 
cancel 
all 
or 
part 
of 
the 
Restricted Stock 
or 
Restricted Stock 
Units held 
in escrow pursuant to 
the Award 
or Awards 
granted to that 
Employee. 
Upon any 
Change 
of Control, the Authorized Party 
may cancel 
all or part 
of 
the 
Restricted 
Stock 
or 
Restricted 
Stock 
Units 
held 
in 
escrow pursuant 
to 
the 
Award 
granted 
to 
the 
Employee 
only 
upon 
a 
determination 
by 
the 
Authorized 
Party 
that 
the 
Employee has 
given the Company 
Cause for such 
cancellation. 
(ii)
 
If 
the 
Authorized 
Party, 
in 
its 
or 
his 
sole 
discretion, 
determines 
that 
the 
lapsing 
of 
restrictions on Restricted 
Stock or Restricted 
Stock Units held 
in escrow 
pursuant 
to 
any 
Award 
has the 
possibility of 
violating 
any 
law, 
regulation, 
or 
decree pertaining 
to the 
Company, 
any of its 
subsidiaries, or the Employee, 
the Authorized Party 
may freeze or 
suspend the Employee’s right to settlement 
or payout of the 
Award until such time as the 
lapse of restrictions would 
no longer, in the sole 
discretion of the 
Authorized Party, 
have 
the possibility 
of violating such 
law, regulation, or decree. 
(iii)
 
Notwithstanding anything 
herein 
to 
the 
contrary, 
any 
Award 
is subject to forfeiture 
or 
recoupment, in whole or 
in part, under applicable 
law, including the Sarbanes-Oxley Act 
and the Dodd-Frank Act. 
4.
 
Assignment 
of Award upon Death
. 
Rights under 
the Plans 
and this 
Agreement cannot 
be assigned 
or transferred other than by 
(i) will or (ii) the laws 
of descent 
and distribution. 

5.
 
Tax 
Withholding
. 
In 
all 
cases the 
Employee 
will 
be 
responsible to 
pay all required 
withholding 
taxes associated 
with the Award. 
Should a withholding tax 
obligation 
arise with 
regard to the Award 
or the lapsing 
of restrictions on 
Restricted 
Stock Units granted 
in the Award, the withholding tax may 
be 
satisfied 
by 
withholding 
shares 
of 
Stock. 
The 
value 
of 
the 
shares of 
Stock 
withheld 
for 
this 
purpose 
shall 
be 
consistent 
with
 
applicable 
laws 
and 
regulations. 
W
hen 
necessary, 
lapsing 
of 
restrictions 
may 
be accelerated by the Authorized 
Party to 
the extent necessary to provide shares of 
Stock to satisfy 
any withholding tax obligation. 
This 
withholding tax obligation 
includes, but 
is 
not 
limited to, federal, state, 
and local 
taxes, including applicable 
non-U.S. taxes. 
6.
 
Shareholder 
Rights 
for 
Restricted 
Stock 
Units
. 
The 
Employee 
shall 
not 
have the 
rights 
of 
a 
shareholder until 
the 
Restricted Stock Unit has been canceled and ownership of 
shares of Stock has 
been transferred to 
the Employee. 
As described 
above, the Company 
may pay 
dividend equivalents 
with regard to Restricted 
Stock Units in 
certain circumstances. 
7.
 
Certain Adjustments
. 
In the 
event 
certain 
corporate 
transactions, 
recapitalizations, 
or stock 
splits 
occur 
while Restricted 
Stock 
or Restricted 
Stock 
Units 
are outstanding, 
the 
Grant 
Price 
and 
the 
number 
of 
shares 
of Restricted 
Stock 
Option 
Shares 
or Restricted 
Stock 
Units 
shall be 
correspondingly 
adjusted. 

8.
 
Relationship 
to 
the 
Plan
. 
In 
addition 
to 
the 
terms 
and 
conditions described 
in 
this 
Agreement, 
Awards 
are 
subject to 
all 
other 
applicable provisions 
of 
the Plan. 
The decisions of the Committee 
with 
respect 
to 
questions 
arising 
as 
to 
the 
interpretation 
of 
the 
Plan 
or 
this 
Agreement 
and 
as to 
findings of fact shall 
be final, conclusive, and 
binding. 
9.
 
No 
Employment 
Guarantee
. 
No 
provision 
of 
this 
Agreement 
shall 
confer 
any 
right 
upon 
the 
Employee to continued 
employment with any 
Participating Company. 

 

 

Exhibit 10.1 

6
 
10.
 
Governing 
Law
. 
This Agreement 
shall be governed by 
and construed and enforced in 
accordance 
with the laws of 
the State of 
Delaware. 
11.
 
Amendment
. 
Without 
the 
consent 
of 
the 
Employee, 
this 
Agreement 
may 
be 
amended 
or 
supplemented 
(i) to cure any 
ambiguity or to correct or 
supplement any 
provision herein which 
may 
be 
defective 
or 
inconsistent 
with 
any 
other 
provision 
herein, 
or 
(ii) 
to 
add 
to 
the 
covenants and 
agreements of 
the Company 
for the benefit of an 
Employee or to add 
to the rights 
of an Employee 
or 
to 
surrender 
any 
right 
or 
power 
reserved 
to 
or 
conferred 
upon 
the 
Company in 
this 
Agreement, 
provided, 
in 
each case, 
that 
such changes or 
corrections 
shall not 
adversely affect the rights 
of the 
Employee with respect 
to the grant 
of an Award evidenced 
hereby without the 
Employee’s 
consent, 
or (iii) to make such 
other changes 
as the Company, upon advice 
of counsel, determines 
are necessary 
or advisable 
because of the 
adoption or promulgation of, or change 
in or of the 
interpretation of, 
any 
law or governmental 
rule or regulation, including 
any applicable 
federal or state securities 
or tax laws. 

Exhibit 10.1 

7
 
DEFINITIONS 
Capitalized terms 
not defined below 
shall have the 
meanings set forth 
in the Plan. 
 
“Authorized 
Party”
 
means the person 
who is 
authorized to approve 
an Award, exercise discretion, or take 
action under the 
Administrative Procedure for the Restricted 
Stock Program and 
pursuant to the 
Program. 

With regard to Senior Officers, the Committee 
is the 
Authorized Party. 
With regard to other Employees, 
the Chief Executive 
Officer is the Authorized 
Party, 
although the Committee 
may act 
concurrently as 
the 
Authorized Party. 
“Award”
 
means the 
Restricted Stock 
Units granted 
to 
the 
Employee 
pursuant 
to 
the 
foregoing 
terms, 
conditions, and limitations. 
“Cause”
 
means “Cause”
 
as that term is 
defined in the 
Key Employee Change 
in Control Severance 
Plan 
of ConocoPhillips applied 
as if an 
Employee were a 
participant under such 
plan
.
 
“Change of Control”
 
has the 
meaning set forth in Attachment 
A to these 
Terms and Conditions. 
“Committee”
 
means 
the Compensation 
Committee of the 
Board of Directors 
of the Company. 
“Company”
 
means 
ConocoPhillips a 
Delaware corporation. 
“Disability”
 
means 
a disability for which the 
employee in 
question has 
been determined 
to be entitled 
to 
either (i) benefits under 
the applicable 
plan of long-term disability of the 
Company or its 
subsidiaries 
or 
(ii) 
disability 
benefits 
under 
the 
Social 
Security 
Act. 
In 
the 
absence of 
any 
such determination, 
the 
Authorized Party may make 
a determination that the 
employee has 
a Disability. 
“Fair Market 
Value”
 
means, as of a 
particular date, the mean 
between the 
highest and lowest 
sales 
price 
per 
share 
of 
such 
Stock 
on 
the 
consolidated 
transaction 
reporting 
system 
for 
the 
principal 
national 
securities 
exchange on which 
shares of Stock are 
listed on 
that date, or, if there shall 
have 
been 
no 
such 
sale so reported 
on that date, 
on the next 
preceding date 
on which such 
a sale was so reported, 
or, 
at 
the 
discretion of the 
Committee, the price 
prevailing on the 
exchange 
at a 
designated 
time. 
“Good 
Reason” 
means 
“Good Reason”
 
as that term is 
defined in the 
Key Employee Change in 
Control 
Severance Plan 
of ConocoPhillips applied 
as if an 
Employee were a 
participant under such 
plan
. 
“Grant 
Price”
 
means 
the 
Fair 
Market Value 
for 
one 
share of 
Stock 
as of 
the 
date of 
the 
grant 
of 
an 
Award. 
Grant price is 
not adjusted 
for any restrictions applicable 
to the Award. 
“Key Employee 
Change in Control 
Severance 
Plan of ConocoPhillips”
 
means the 
plan of that 
name (or 
a successor plan 
to the plan 
of that name) in 
effect on an 
applicable Change 
of Control. 
If no plan of that 
name (or successor 
plan to the 
plan of that 
name) is in effect on an 
applicable Change 
of Control, it 
shall 
mean instead the 
plan of that 
name in effect 
on the date of the 
Award. 
“Layoff”
 
means 
an 
applicable 
Termination 
of 
Employment 
due 
to 
layoff 
under 
the 
ConocoPhillips 
Severance Pay 
Plan, the ConocoPhillips Executive 
Severance Plan, or the 
ConocoPhillips 
Key Employee 
Change 
in Control Severance Plan, or layoff or redundancy 
under any similar 
layoff or redundancy 
plan 
which the 
Company or its subsidiaries 
may adopt from time 
to time. 
If all or any portion of 
the 
benefits 
under 
the 
redundancy 
or 
layoff 
plan 
are 
contingent 
on 
the 
employee’s 
signing 
a 
general 
release 
of 
liability, 
such Termination 
shall not 
be 
considered as 
a “Layoff” for 
purposes of this Award 
unless the 
employee executes 
and does not revoke 
a general release of liability, 
acceptable to the Company, 
under 
the 
terms 
of 
such layoff 
or 
redundancy plan. 
In 
order 
to 
be 
considered a 
layoff 
for 
purposes of 
this 
Award, the Termination of E 
mployment must also 
be considered 
a Separation from 
Service. 
“Participating 
Company”
 
includes 
ConocoPhillips 
and 
its 
100% 
owned 
subsidiaries, including 
both 
those directly 
owned and 
those owned through subsidiaries, 
whose 
participation has 
been approved 
by the 
Authorized Party. 

Exhibit 10.1 

8
 
“Restricted Stock 
Unit”
 
means a 
unit equal to 
one share of Stock 
(as determined 
by the Authorized 
Party) 
that is subject 
to forfeiture provisions or that has 
certain restrictions 
attached to 
the ownership 
thereof. 
“Senior Officer”
 
means the 
Chairman of the 
Board, the CEO, all 
other executive officers of the 
Company 
(determined 
in 
accordance 
with 
the 
Company’s 
custom and 
practice pursuant 
to 
section 16(b) 
of 
the 
Securities Exchange 
Act of 1934, as 
amended), all other employees 
of the Company 
who report 
directly 
to the CEO 
and whose salary 
grade is 23 or higher, and all 
other employees 
of the Company 
whose 
salary 
grade is 26 or higher. 
“Separation 
from 
Service”
 
means “separation from service” as that term 
is used in section 409A of 
the 
Internal Revenue 
Code. 
“Severance”
 
means “Severance” as that term is defined in the Key Employee Change in Control 
Severance 
Plan of ConocoPhillips applied as if an Employee were a participant under such 
plan 
and 
shall 
also 
incorporate 
the 
meaning 
of 
the 
term 
“Cause” 
contained 
in 
the 
definition 
of 
“Severance” 
in such plan but shall substitute the definition of “Good Reason” contained 
in 
this 
Inducement 
Grant Agreement for the definition of “Good Reason” contained in such plan. 
“Stock”
 
means 
shares of common stock 
of the Company, par value 
$.01. 
Stock may also 
be referred to as 
“Common Stock.” 
“Terminatio 
n” 
and 
“
Termination 
of 
Employment”
 
each 
mean 
cessation 
of 
employment 
with 
the 
Participating 
Companies, determined 
in 
accordance with 
the 
policies and practices of 
the Participating 
Company for whom 
the Employee was 
last performing services.
 

Exhibit 10.1 

9
 
Attachment A 
 
Change of Control 
 
The following definitions 
apply to the 
Change of 
Control provision 
in Section 10 
of the Plan. 
“Affiliate” shall have 
the meaning 
ascribed to such 
term in Rule 
12b-2 of the General 
Rules and Regulations 
under the Exchange 
Act, as 
in effect at the time of determination. 
“Associate” 
shall mean, with reference to 
any Person, (a) any corporation, 
firm, 
partnership, association, unincorporated 
organization or other 
entity 
(other than the Company 
or a 
subsidiary of the 
Company) of which 
such Person 
is an officer or general partner (or officer 
or general 
partner of a general 
partner) or is, directly or indirectly, the Beneficial 
Owner of 10% or 
more of any class 
of equity securities, 
(b) any trust or other estate 
in which such 
Person has a 
substantial beneficial interest 
or as to which 
such Person serves 
as trustee or in 
a similar fiduciary capacity 
and (c) any relative 
or 
spouse of such 
Person, or any relative of 
such spouse, 
who has the same 
home as such Person. 

“Beneficial Owner” 
shall mean, 
with reference to 
any securities, 
any Person 
if: 
(a)
 
such 
Person 
or 
any 
of 
such 
Person’s 
Affiliates 
and 
Associates, 
directly 
or 
indirectly, 
is 
the 
“beneficial 
owner” 
of 
(as 
determined 
pursuant 
to 
Rule 13d 
-3 
of 
the 
General 
Rules 
and 
Regulations 
under 
the 
Exchange 
Act, 
as 
in 
effect 
at 
the 
time 
of 
determination) 
such 
securities 
or 
otherwise 
has 
the 
right 
to 
vote 
or 
dispose 
of 
such 
securities; 
(b)
 
such 
Person 
or 
any 
of 
such 
Person’s 
Affiliates 
and 
Associates, 
directly 
or 
indirectly, 
has 
the 
right or 
obligation 
to 
acquire 
such 
securities 
(whether 
such 
right or 
obligation is exercisable 
or effective immediately or only 
after the passage of time or 
the 
occurrence 
of 
an 
event) 
pursuant 
to 
any 
agreement, 
arrangement 
or 
understanding 
(whether 
or 
not 
in 
writing) or 
upon 
the exercise 
of 
conversion 
rights, exchange 
rights, 
other rights, warrants or options, 
or otherwise; provided, however, that a Person shall not 
be 
deemed 
the 
Beneficial 
Owner 
of, 
or 
to 
“beneficially 
own,” 
(i) securities 
tendered 
pursuant 
to 
a 
tender 
or 
exchange 
offer 
made 
by 
such 
Person 
or any 
of 
such 
Person’s 
Affiliates 
or 
Associates 
until 
such 
tendered 
securities 
are 
accepted 
for 
purchase 
or 
exchange 
or (ii) securities issuable upon exercise of Exempt Rights; or 
(c)
 
such 
Person 
or 
any 
of 
such 
Person’s 
Affiliates 
or 
Associates 
(i) has 
any 
agreement, 
arrangement 
or 
understanding 
(whether 
or 
not 
in 
writing) 
with 
any 
other 
Person (or any Affiliate 
or Associate thereof) that beneficially owns such 
securities 
for 
the 
purpose 
of 
acquiring, 
holding, 
voting 
(except 
as 
set 
forth 
in 
the 
proviso 
to 
subsection 
(a) of this definition) or disposing of such securities or (ii) 
is 
a 
member 
of 
a 
group (as that term is used in Rule 13d 
-5(b) of the General Rules and Regulations 
under 
the Exchange Act) that includes 
any other Person that beneficially owns such securities; 
provided, 
however, that nothing in this definition shall cause a Person engaged in business as an 
underwriter 
of securities 
to be the Beneficial Owner of, or to “beneficially own,” any securities 
acquired 
through such Person’s 
participation in good faith in a firm commitment underwriting 
until the expiration of 
40 days after the date of such acquisition. 
For purposes hereof, “voting” a 
security shall include 
voting, granting a proxy, 
consenting, or making a request or demand 
relating to corporate 
action (including, without limitation, a demand for a shareholder list, to call 
a shareholder 
meeting or to inspect corporate books and records) or otherwise giving an 
authorization 
(within the meaning of section 14(a) of the Exchange Act) in respect of such 
security. 

Exhibit 10.1 

10
 
The terms “beneficially 
own” and 
“beneficially owning” 
shall have 
meanings that 
are 
correlative to this 
definition of the term “Beneficial 
Owner.” 
“Board” shall have 
the meaning 
set forth in the Plan. 
“Change of Control” shall 
mean any 
of the following occurring on 
or after the Grant 
Date: 
(a)
 
any Person (other 
than an Exempt Person) shall become the Beneficial Owner 
of 20% 
or more of the shares of Common Stock then outstanding or 20% or more 
of 
the 
combined 
voting power of the Voting 
Stock of the Company then outstanding; provided, 
however, 
that 
no 
Change 
of 
Control 
shall 
be 
deemed 
to 
occur 
for 
purposes 
of 
this 
subsection 
(a) 
if 
such 
Person 
shall become 
a Beneficial 
Owner 
of 
20% 
or more 
of 
the 
shares of 
Common Stock then outstanding or 20% or more of the combined voting power 
of 
the 
Voting 
Stock 
of 
the 
Company 
then 
outstanding 
solely 
as 
a 
result 
of 
(i) 
any 
acquisition 
directly from the Company or (ii) any acquisition 
by a Person 
pursuant 
to 
a 
transaction 
that complies with clauses (i), (ii), and (iii) 
of subsection 
(c) of this definition; 
(b)
 
individuals 
who, as of the Grant Date, constitute the Board (the 
“Incumbent 
Board”) 
cease 
for 
any 
reason 
to 
constitute 
at 
least 
a 
majority 
of 
the Board; 
provided, 
however, 
that 
any 
individual 
becoming 
a director 
subsequent 
to the 
Grant Date 
whose 
election, or nomination 
for election by the Company’s shareholders, was approved 
by 
a 
vote of at least a majority of the directors 
then comprising the Incumbent Board 
shall 
be 
considered 
as though such individual were a member of the Incumbent Board; provided, 
further, 
that there shall be excluded, for this purpose, any such individual 
whose 
initial 
assumption 
of office occurs as a result of any actual or threatened election 
contest 
with 
respect to the election or removal 
of directors or other actual or threatened solicitation 
of 
proxies or consents 
by or on behalf of a Person other than the Board; 
(c)
 
the 
Company 
shall 
consummate 
a 
reorganization, 
merger, 
statutory 
share 
exchange, 
consolidation, 
or 
similar 
transaction 
involving 
the 
Company 
or 
any 
of 
its 
subsidiaries 
or 
sale 
or 
other 
disposition 
of 
all 
or 
substantially 
all 
of 
the 
assets 
of 
the 
Company, 
or the acquisition of assets or securities of another entity by the 
Company 
or 
any of 
its subsidiaries (a “Business 
Combination”), in each case, unless, following 
such 
Business Combination, 
(i) 50% or more of the then outstanding shares of common 
stock 
of 
the 
corporation 
, 
or 
common 
equity 
securities 
of 
an entity 
other 
than 
a corporation, 
resulting 
from 
such 
Business 
Combination 
and 
the combined 
voting power 
of 
the then 
outstanding 
Voting 
Stock 
of 
such 
corporation 
or 
other 
entity 
are 
beneficially 
owned, 
directly 
or 
indirectly, 
by all 
or substantially 
all of 
the Persons 
who 
were the 
Beneficial 
Owners 
of 
the 
outstanding 
Common 
Stock 
immediately 
prior 
to 
such 
Business 
Combination 
in substantially the same proportions as their ownership, immediately prior 
to 
such 
Business 
Combination, 
of 
the 
outstanding 
Common 
Stock, 
(ii) no 
Person 
(excluding any 
Exempt Person or any Person beneficially owning, immediately 
prior 
to 
such Business 
Combination, directly or indirectly, 
20% or more of 
the 
Common 
Stock 
then outstanding 
or 20% or more of the combined voting power of the 
Voting 
Stock 
of 
the Company 
then outstanding) beneficially owns, directly or indirectly, 20% or more 
of 
the 
then 
outstanding 
shares 
of 
common 
stock 
of 
the 
cor 
poration, 
or 
common 
equity 
securities of 
an entity other than a corporation, 
resulting from such Business Combination 
or the combined 
voting power of the then outstanding Voting 
Stock of such corporation 
or other entity, 
and (iii) at least a majority of the members 
of the board of directors of the 
corporation, 
or 
the 
body 
which 
is 
most 
analogous 
to 
the 
board 
of 
directors 
of 
a 
corporation 
if 
not 
a 
corporation,
 
resulting 
from 
such 
Business 
Combination 
were 

Exhibit 10.1 

11
 
members 
of the Incumbent Board 
at the time of the initial agreement or initial action 
by 
the Board providing 
for such Business Combination; or 
(d)
 
the 
shareholders 
of 
the 
Company 
shall 
approve 
a 
complete 
liquidation 
or 
dissolution 
of the Company unless such liquidation or dissolution is approved as part of a 
transaction 
that complies with clauses (i), (ii), and (iii) 
of subsection 
(c) of this definition. 
“Common Stock” 
shall have 
the meaning set 
forth in the Plan. 
“Company” 
shall have the 
meaning set forth in the 
Plan. 
 
“Exchange Act” shall 
mean the 
Securities Exchange 
Act of 1934, as 
amended. 
“Exempt Person” shall 
mean any 
of the Company, any entity 
controlled by the 
Company, 
any employee 
benefit plan (or related 
trust) sponsored 
or maintained by 
the Company 
or any entity 
controlled by the 
Company, and any Person 
organized, appointed, or established 
by the Company 
for or 
pursuant to the 
terms of any 
such employee benefit 
plan. 
“Exempt Rights” 
shall mean 
any rights to purchase 
shares of Common 
Stock or other 
Voting 
Stock of the Company 
if at the 
time of the issuance 
thereof such 
rights are not 
separable 
from such 
Common Stock or other 
Voting 
Stock (
i.e.
, are 
not transferable otherwise 
than in connection 
with a 
transfer of the underlying Common 
Stock or other Voting Stock), except 
upon the occurrence 
of a 
contingency, whether such 
rights exist 
as of the Grant Date 
or are thereafter issued 
by the Company 
as a 
dividend on shares 
of Common Stock or 
other Voting Securities or otherwise. 
“Person” shall 
mean any individual, firm, corporation, partnership, 
association, trust, 
unincorporated organization, or other 
entity. 
“Voting Stock” shall mean, (i) with respect 
to a corporation, all securities 
of such 
corporation of any class 
or series that are 
entitled to vote 
generally in the 
election of, or to appoint by 
contract, directors of such 
corporation (excluding any class 
or series 
that would be 
entitled so 
to vote by 
reason of the 
occurrence of any 
contingency, so long as such contingency 
has not 
occurred) and (ii) with 
respect to an entity 
which is 
not a corporation, all securities 
of any class 
or series that are 
entitled to vote 
generally in the 
election of, or to appoint 
by contract, members 
of the body 
which is 
most analogous 
to 
the board of directors 
of a corporation.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}]]