Document:

ex_105244.htm

Exhibit 10.50

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the "Agreement") is made and entered into effective as of this ____ day of ________, 20__ (the "Effective Date") by and between [Oxford lmmunotec, Inc., a Delaware corporation with a usual place of business at 700 Nickerson Road, Suite 200, Marlborough, MA 01752][Oxford Immunotec Limited, a private company limited by shares formed under the Laws of England and Wales, with a registered address of 94C Innovation Drive, Milton Park, Abingdon, Oxfordshire OX14 4RZ] (the "Company") and _________________ (the "Employee").

 

WHEREAS, Employee wishes to be employed by the Company; 

 

WHEREAS, the Company wishes to retain the services of the Employee;

 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Employee and the Company, intending to be legally bound, hereby agree as follows:

 

	
			1. 

				
			Term of the Agreement.

			

 

This Agreement shall govern the terms and conditions of the Employee's employment with the Company from and after the Effective Date. The Employee's employment shall continue with the Company upon the terms and conditions set forth in this Agreement for the period beginning as of the Effective Date and terminating as provided in Section 4 (such period, the "Employment Period").

 

	
			2. 

				
			Position and Responsibilities.

			

 

Position. The Employee shall be employed by the Company in the position of [insert title]. The Employee shall be responsible for [insert brief job description]. Employee shall perform all duties and responsibilities as are normally related to such position in accordance with the standards in the industry. The Employee shall also perform all additional duties now or hereafter reasonably assigned to the Employee by [manager] of the Company. The Employee shall abide by all policies, procedures and practices applicable to employees of the Company or its affiliates, Oxford Immunotec [Inc.] [Limited] and Oxford Immunotec Global PLC (the "Group Companies'') (in each case, to the extent applicable to a [US-based] [UK-based] employee), as they may be amended from time to time. Without limiting the generality of the foregoing, the Employee acknowledges and agrees that as of the Effective Date s/he has signed and agrees to abide by the Company's Code of Conduct and the Confidentiality, Inventions Assignment, Non-Compete and Non-Solicitation Agreement dated as of the Effective Date (the "Restrictive Covenants Agreement"). The Employee will report to the [manager] of the Company, and the Employee's primary work location shall be [insert location]. [The Employee shall be required to travel significantly to Company offices and scientific meetings for performance of his duties, including undertaking international travel.]

 

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2.1     Other Activities. Except upon the prior written consent of the Company, the Employee will not, during the Employment Period, (i) accept any other employment or (ii) engage, directly or indirectly, in any other business activity (whether or not pursued for pecuniary advantage) that might interfere with the Employee's duties hereunder or create a conflict of interest with any of the Group Companies.

 

2.2     No Conflict. The Employee represents and warrants that his execution of this Agreement, employment with the Company, and the performance of the Employee's proposed duties under this Agreement, shall not violate any obligations the Employee may have to any other employer, person or entity, including any obligations with respect to proprietary or confidential information of any other person or entity.

 

	
			3. 

				
			Compensation, Benefits and Expenses.

			

 

3.1      Base Salary. In consideration of the services to be rendered under this Agreement, the Company shall pay the Employee a base salary at the rate of [insert salary] per annum ("Base Salary''). The Base Salary shall be paid in equal installments in accordance with the Company's regularly established payroll practice for executives. The Employee's Base Salary will be reviewed no less often than once per calendar year beginning in January [year] in accordance with the established procedures of the Company for reviewing salaries for similarly situated employees with the Group Companies.

 

3.2     Bonus. For each fiscal year completed during the Employment Period, the Employee shall be eligible to participate in the annual bonus plan maintained by the Company or Group Companies for its executives generally, as in effect from time to time (such plan, as so in effect from time to time, the "Bonus Plan"). The actual amount of any bonus payable to the Employee in respect of any fiscal year will be determined by the Board of Directors of the Group Companies (the "Board") or the Remuneration Committee thereof based on the achievement of performance objectives established by the Board or the Remuneration Committee thereof in accordance with the terms of the Bonus Plan and will be payable pursuant to the terms of the Bonus Plan. Bonus paid in the first year of employment will be prorated to reflect the date of hire.

 

3.3     Stock Options. The Employee shall be eligible to receive stock-based awards under the equity incentive plan or program maintained by the Group Companies for its executives generally, as in effect from time to time, in the discretion of the Board or the Remuneration Committee thereof. It is agreed that the Employee's initial stock-based awards shall be made effective as of the first date of employment (i.e., [date]), the awards consisting of options over ordinary shares of the Company with a value of [amount] and a grant of restricted share units with a value of [amount] as of the date of grant (the "Initial Awards"). The date of grant for the Initial Awards shall be [date] and the exercise price of the options shall be the closing price on the date of grant. The Initial Awards and all other stock-based awards which Employee may receive from time to time during the term of employment shall be subject to the terms of the Company's 2013 Share Incentive Plan, as amended. 

 

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3.4     Other Benefits. The Employee shall be eligible to participate in standard employee benefits offered by the Company from time to time in accordance with Company policies and plan terms. All such policies and plans are subject to amendment from time to time at the Company's sole discretion. The Employee will receive vacation and other paid time off in accordance with the Company's vacation, holiday and other policies, which may be modified by the Company from time to time.

 

3.5     Expenses. The Company will reimburse the Employee for reasonable business expenses incurred in the performance of his duties hereunder in accordance with the Company's expense reimbursement policies, which will include timely submission of expense reports and appropriate receipts.

 

	
			4. 

				
			At Will Employment, Termination and Severance.

			

 

4.1     At-Will Termination by the Company. The Employee's employment with the Company shall be "at-will" at all times. The Company may terminate the Employee's employment with the Company at any time, without advance notice, for any reason or no reason at all, notwithstanding anything to the contrary contained in or arising from any statements, policies or practices of the Company relating to the employment, discipline or termination of its employees. Upon such termination, the Employment Period shall end, and upon and after such termination, all obligations of the Company and the Employee under this Agreement shall cease, except as otherwise provided herein.

 

4.2     At-Will Termination by the Employee. The Employee's employment with the Company shall be "at-will" at all times. The Employee may terminate his employment with the Company at any time for any reason or no reason at all, upon one (1) month's advance written notice, notwithstanding anything to the contrary contained in or arising from any statements, policies or practices of the Company. During such notice period, the Employee shall continue to diligently perform all of his duties hereunder. The Company shall have the option, in its sole discretion, to make the Employee's termination effective at any time prior to the end of such notice period as long as the Company pays the Employee all compensation to which the Employee is entitled up through the last day of the one month notice period. Following such termination, the Employee shall cooperate reasonably with the Company in responding to requests for information and other transitional matters. Upon such termination, the Employment Period shall end, and upon and after such termination, all obligations of the Company and the Employee under this Agreement shall cease, except as otherwise provided herein.

 

4.3     Severance Payable. Except in situations where the employment of the Employee is terminated at any time (i) by the Company For Cause (as defined in Section 5.1 below), (ii) By Death or By Prolonged Absence (as defined in Sections 5.3 and 5.4 below) or (iii) by the Employee Without Good Reason (as defined in Section 5.2 below), the Employee will be eligible to receive severance. The amount of severance shall be [insert amount] of the Employee's then-current Base Salary, payable on a semi-monthly basis with the first payment being made within fifteen business days of the Company's receipt of the executed Release of Claims (defined below).

 

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4.4     Severance Conditions. The Company's obligation to make severance payments shall be conditioned upon (a) the Employee signing and returning to the Company (without revoking) a timely and effective general release and waiver in such form and covering such matters as the Company may in its reasonable discretion require, including without limitation releasing all Group Companies and their present and former directors, officers and employees from all claims related to Employee's employment or the termination thereof, by the deadline specified therein, which in all events shall be no later than the fiftieth (50th) calendar day following the date of termination (any such release submitted by such deadline, the "Release of Claims"), the form of which is attached hereto as Exhibit A; and (b) the Employee's compliance with all obligations contained in the Restrictive Covenants Agreement (or any similar agreement between the Employee and any of the Group Companies, whether in existence on the Effective Date or entered into thereafter). The Employee acknowledges and agrees that in the event of Employee's breach of the Restrictive Covenants Agreement the Company shall be entitled to repayment in full of any severance paid to Employee.

 

4.5     Severance Not Payable. The Employee shall not be entitled to any Severance if his employment is terminated For Cause, By Death, By Prolonged Absence or Without Good Reason (as those terms are defined in Section 5 below).

 

	
			5. 

				
			Definitions in Connection with Termination.

			

 

5.1     Termination by the Company "For Cause". For purposes of this Agreement, "For Cause" shall mean: (a) the Employee is convicted of a crime involving moral turpitude, dishonesty, or physical harm to any person, whether or not such conduct is undertaken in relation to any of the Group Companies or their business; (b) the Employee willfully engages in conduct that is in bad faith and materially injurious to any of the Group Companies, including but not limited to misappropriation of trade secrets, fraud or embezzlement relating to the property of any of the Group Companies or the Employee engaging in competition with any of the Group Companies; (c) the Employee commits a material breach of this Agreement or of the Restrictive Covenants Agreement (or any similar agreement which may be signed by the Employee in the future), which breach is not cured within thirty (30) days after written notice to the Employee from the Company; (d) the Employee willfully refuses to implement or follow a lawful policy or directive of the Group Companies, which breach is not cured within thirty (30) days after written notice to the Employee from the Company; or (e) the Employee engages in misfeasance or malfeasance demonstrated by a pattern or failure to perform job duties diligently and professionally. The Company may terminate the Employee's employment For Cause at any time, without any advance notice, subject to any applicable cure period. The Company shall pay the Employee all compensation to which he is entitled up through the date of termination, subject to any other rights or remedies of the Company under law; and thereafter all obligations of the Company under this Agreement shall cease.

 

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5.2     Termination by the Employee "With Good Reason" or "Without Good Reason''. The Employee's termination of his employment shall be "With Good Reason" if (A) the Employee provides written notice to the Company of the Good Reason within thirty (30) days of the event constituting Good Reason; (B) the Company fails to cure the Good Reason within thirty (30) days following receipt of such notice; and (C) the Employee terminates his employment for Good Reason within thirty (30) days following the expiration of the period to remedy if the Company fails to remedy the condition, provided, however, that in the event the Company provides the Employee with the notice described in Sections 5.l(c) or (d), the Employee may not seek to terminate his employment hereunder for Good Reason after receipt of such notice and prior to the date that is two (2) days following the expiration of the thirty (30) day cure period. For purposes of this Agreement, "Good Reason" shall mean any of the following events if effected by the Company without the consent of the Employee: (1) a change in the Employee's position with the Group Companies which materially reduces the Employee's level of responsibility or authority; (2) a reduction in the Employee's Base Salary or annual target bonus percentage which either (i) is larger on a percentage basis than a concurrent reduction in base salary or annual target bonus percentage of other senior executive officers of the Group Companies or (ii) in the aggregate reduces Employee's total potential cash compensation (i.e., Base Salary plus annual target bonus) by greater than 15%; (3) a relocation of the Employee's principal place of employment that results in an increase in the Employee's commute by more than forty (40) miles than Employee's commute as of the Effective Date; or (4) the Company's material breach of its obligations under this Agreement. "Without Good Reason" shall mean the Employee's termination of his employment under any circumstances that do not qualify as "With Good Reason" as set forth in this Section 5.2.

 

5.3     "By Death". The Employee's employment shall terminate, and the Employment Period shall end automatically, upon the Employee's death. The Company shall pay to the Employee's estate or beneficiaries, as appropriate, any compensation then due and owing. Thereafter, all obligations of the Company under this Agreement shall cease. Nothing contained in this Section 5.3 shall affect any entitlement of Employee's heirs or devisees to the benefits of any life insurance plan or other applicable benefits.

 

5.4     By Prolonged Absence". Subject to applicable law, this Agreement will terminate on the date the Employee is unable to perform his duties under this Agreement for 120 consecutive days or for 180 non-consecutive days in the aggregate during any 360 day period (a "Prolonged Absence"). The Employee shall be deemed to have had a Prolonged Absence on the last day of such 120 or 180 day period and the Employee's employment shall terminate, and the Employment Period shall end, on such date, such periods and such date to be determined in good faith by the Board. On termination By Prolonged Absence, the Company shall pay to the Employee all compensation to which the Employee is entitled up through the last day of the applicable 120 or 180 day period and thereafter all obligations of the Company under this Agreement shall cease. Nothing in this Section 5.4 shall affect the Employee's rights under any disability plan in which the Employee is a participant.

 

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			6. 

				
			Other Obligations

			

 

6.1     Return of Property. Upon termination of the Employee's employment for any reason, and upon the Company's request at any time prior to termination of the Employee's employment, the Employee must promptly return to the Company all property (including without limitation all equipment, software, tangible proprietary information, records, notes, contracts, computer-generated material, security pass, keys and fobs, customer and supplier lists, and any and all documents related in any way to the Group Companies' business, operations or plans), furnished to or created or prepared by the Employee incident to the Employee's employment. The ownership of all such property and documents will at all times remain vested in the Group Companies.

 

6.2     Resignation and Cooperation. Upon termination of the Employee's employment for any reason, the Employee will be deemed to have resigned from all offices, if any, then held with any one or more of the Group Companies. Following any termination of the Employee's employment, the Employee shall cooperate with the Group Companies in the winding up of pending work on behalf of any of the Group Companies and the orderly transfer of work to other employees. The Employee shall also reasonably cooperate with the Group Companies in the defense of any action brought by any third party against any of the Group Companies that relates to his employment with the Company or any of the Group Companies, and the Company shall promptly reimburse the Employee for any costs incurred in connection therein.

 

6.3     Survival. All obligations set forth in this Agreement which are of a continuing nature shall survive the termination of the Employee's employment and of this Agreement, and shall continue to be in full force and effect.

 

	
			7. 

				
			Taxes and Withholding.

			

 

7.1     Withholding. All amounts paid under this Agreement shall be paid less all applicable federal, state or city tax withholdings (if any) and any other withholdings required by law or regulation in any applicable jurisdiction or authorized by the Employee.

 

7.2     Timing of Payments and Section409A.

 

7.2.1     Notwithstanding anything to the contrary in this Agreement, if at the time of the Employee's termination of employment, the Employee is a "specified employee," as defined below, any and all amounts payable on account of such separation from service that constitute deferred compensation and would (but for this provision) be payable within six (6) months following the date of termination, shall instead be paid on the next business day following the expiration of such six (6) month period or, if earlier, upon the Employee's death; except (A) to the extent of amounts that do not constitute a deferral of compensation within the meaning of Treasury regulation Section 1.409A-l(b) (including without limitation by reason of the safe harbor set forth in Section l.409A- l(b)(9)(iii), as determined by the Company in its reasonable good faith discretion); (B) benefits that qualify as excepted welfare benefits pursuant to Treasury regulation Section 1.409A-l(a)(5); or (C) other amounts or benefits that are not subject to the requirements of Section 409A of the Internal Revenue Code of 1986 ("Section 409A").

 

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7.2.2     For purposes of this Agreement, all references to ''termination of employment" and correlative phrases shall be construed to require a "separation from service" (as defined in Section l .409A-1(h) of the Treasury regulations after giving effect to the presumptions contained therein), and the term "specified employee" means an individual determined by the Company to be a specified employee under Treasury regulation Section 1.409A-1(i).

 

7.2.3     Each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments under this Agreement is to be treated as a right to a series of separate payments.

 

7.2.4     Any reimbursement provided for under this Agreement that would constitute nonqualified deferred compensation subject to Section 409A shall be subject to the following additional rules: (i) no reimbursement of any such expense shall affect the Employee's right to reimbursement of any such expense in any other taxable year; (ii) reimbursement of the expense shall be made, if at all, promptly, but not later than the end of the calendar year following the calendar year in which the expense was incurred; and (iii) the right to reimbursement shall not be subject to liquidation or exchange for any other benefit.

 

7.2.5     In no event shall any Group Company have any liability, including any additional tax, interest or penalty that may be imposed on Employee, relating to the failure or alleged failure of any payment or benefit under this Agreement to comply with, or be exempt from, the requirements of Section 409A.

 

8.           Notices.

 

Any and all notices or communications permitted or required under this Agreement shall be in writing and shall be deemed to have been duly given if delivered; (i) by hand, (ii) e-mail, (iii) by a nationally recognized overnight courier service in the case of US delivery; or (iv) by US first class registered or certified mail, return receipt requested, in the case of US delivery, in each instance to the address specified by the party to receive delivery, as set forth below. The date of notice shall be deemed to be the earlier of (a) actual receipt of notice by any permitted means, or (b) five business days following dispatch by overnight delivery service or the US mail. Each party shall be obligated to notify the other in writing of any change in his or its address. Notice of change of address shall be effective only when done in accordance with this paragraph.

 

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If to the Company:      Oxford Immunotec, Inc.

700 Nickerson Road, Suite 200

Marlborough, MA 01752 

Attn.: [Name]

 

If to the Employee:      [Employee Name]

To the last known address on file with the Company

 

	
			9. 

				
			Assignment; Binding Effect.

			

 

9.1     Assignment. The performance of the Employee is personal hereunder and the Employee agrees that he shall have no right to assign, and he shall not assign or purport to assign, any rights or obligations under this Agreement. The Company may assign or transfer this Agreement in connection with a merger, consolidation, or a sale or transfer of all or substantially all of its assets to an affiliate or third-party. This Agreement may be assigned by the Company, and nothing in this Agreement shall prevent the consolidation, merger or sale of the Company or a sale of all or substantially all the assets of the Company or of the Group Companies.

 

9.2     Binding Effect. Subject to the foregoing restriction on assignment by the Employee, this Agreement shall inure to the benefit of and be binding upon each of the parties; the affiliates, officers, directors, agents, successors and assigns of the Company; and the heirs, devisees, spouse and legal representatives of the Employee.

 

	
			10. 

				
			Governing Law.

			

 

The provisions of this Agreement shall be governed by and interpreted under the laws of the [Commonwealth of Massachusetts] [United Kingdom], without regard to its conflict of laws principles.

 

	
			11. 

				
			Interpretation; Invalid Provisions.

			

 

11.1     This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against either party. Sections and section headings contained in this Agreement are for reference purposes only, and shall not affect in any manner the meaning or interpretation of this Agreement. Whenever the context requires, references to the singular shall include the plural and the plural the singular.

 

11.2     In the event that any of the provisions of this Agreement shall be held by a court or other tribunal of competent jurisdiction to be illegal, invalid, or unenforceable, such provisions shall be limited or eliminated only to the minimum extent necessary to preserve the validity of this Agreement. This Agreement shall otherwise remain in full force and effect.

 

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			12. 

				
			Counterparts.

			

 

This Agreement may be executed in one or more counterparts, each of which constitutes an original but all of which together constitute one document, and by facsimile transmission or by portable document format (pdf), which facsimile and pdf signatures shall be considered original executed counterparts. No counterpart shall be effective until each party has executed at least one counterpart.

 

13.          Entire Agreement; Amendments; Waivers.

 

13.1     Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties hereto, superseding any prior understandings, commitments or agreements, oral or written, with respect to the Employee's employment by the Company except for the Restrictive Covenants Agreement, the Offer Letter dated [date], and other standard employment policies applicable to all employees. In the event of any conflict between standard employment policies of the Company and this Agreement, this Agreement shall control. The Employee acknowledges that in entering into this Agreement he is not relying upon any prior written or oral agreement, assurance, promise or any other prior arrangement of any nature.

 

13.2     Company's Rights. Except as otherwise expressly set forth herein, the Company reserves the right to make reasonable changes to any of the terms and conditions of the Employee's employment. Any change to the Employee's duties, position or compensation following the execution of this Agreement will not affect the enforceability of this Agreement.

 

13.3     Amendment and Waiver. Except as set forth in Section 13.2 hereof, this Agreement may not be amended or provisions hereof waived except by a writing signed by the Employee and by a duly authorized representative of the Company other than the Employee. Failure to exercise any right under this Agreement shall not constitute a waiver of such right. Any waiver of any breach of this Agreement shall not operate as a waiver of any subsequent breaches. All rights and remedies specified for a party herein shall be cumulative and in addition to all other rights and remedies of the party hereunder or under applicable law.

 

 

 

 

[The remainder of this page is intentionally left blank]

 

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IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day

first above written.

 

 

     

	
			OXFORD IMMUNOTEC, [INC.][Limited]

				
			[EMPLOYEE]

			
	 	 
	 	 
	_________________________	____________________

 

10EX-10.2.1

 Exhibit 10.2.1 

AMENDED AND RESTATED 
 1998 MOODY’S
CORPORATION 
 NON-EMPLOYEE DIRECTORS’ STOCK INCENTIVE PLAN 

(Adopted September 8, 2000; Amended and Restated as of December 11, 2012, 

October 20, 2015, December 14, 2015 and December 18, 2017) 

1. Purpose of the Plan 
 The purpose of the Plan is to aid the
Company in attracting, retaining and compensating non-employee directors and to enable them to increase their ownership of Shares. The Plan will be beneficial to the Company and its stockholders since it will
allow non-employee directors of the Board to have a greater personal financial stake in the Company through the ownership of Shares, in addition to underscoring their common interest with stockholders in
increasing the value of the Shares on a long-term basis. 
 2. Definitions 

The following capitalized terms used in the Plan have the respective meanings set forth in this Section: 

(a)    Act: The Securities Exchange Act of 1934, as amended, or any successor thereto. 

(b)    Award: An Option, Share of Restricted Stock, RSU or Performance Share granted pursuant to the Plan. 

(c)    Beneficial Owner: As such term is defined in Rule 13d-3 under the Act (or any
successor rule thereto). 
 (d)    Board: The Board of Directors of the Company. 

(e)    Change in Control: The occurrence of a change in ownership of Moody’s Corporation, a change in the effective
control of Moody’s Corporation, or a change in the ownership of a substantial portion of the assets of Moody’s Corporation. For this purpose, a change in the ownership of Moody’s Corporation occurs on the date that any one person, or
more than one person acting as a group (as determined pursuant to the regulations under Section 409A), acquires ownership of stock of Moody’s Corporation that, together with stock held by such person or group, constitutes more than
50 percent of the total fair market value or total voting power of the stock of Moody’s Corporation. A change in effective control of Moody’s Corporation occurs on either of the following dates: (1) the date any one person, or
more than one person acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of Moody’s
Corporation possessing 50 percent or more of the total voting power of the stock of Moody’s Corporation, or (2) the date a majority of members of the Board is replaced during any 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. A change in the ownership of a substantial portion of the assets of Moody’s Corporation occurs
on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons)
assets from Moody’s Corporation that have a total gross fair market value (as determined pursuant to the regulations under Section 409A) equal to or more than 40 percent of the total gross fair market value of all of the assets of
Moody’s Corporation immediately before such acquisition or acquisitions. 
 (f)    Code: The Internal Revenue Code of
1986 and the regulations thereunder, as amended from time to time. 
 (g)    Committee: The Compensation & Human
Resources Committee of the Board, or any successor thereto or other committee designated by the Board to assume the obligations of the Committee hereunder. 

(h)    Company: Moody’s Corporation. 

(i)    Disability: Inability to continue to serve as a non-employee director due to a
medically determinable physical or mental impairment which constitutes a permanent and total disability, as determined by the Committee (excluding any member thereof whose own Disability is at issue in a given case) based upon such evidence as it
deems necessary and appropriate. 
 (j)    Effective Date: The date on which the Plan takes effect, as defined pursuant to
Section 15 of the Plan. 
 (k)    Fair Market Value: On a given date, the arithmetic mean of the high and low prices of
the Shares as reported on such date on the Composite Tape of the principal national securities exchange on which such Shares are listed or admitted to trading, or, if no Composite Tape exists for such national securities exchange on such date, then
on the principal national securities exchange on which such Shares are listed or admitted to trading, or, if the Shares are not listed or admitted on a national securities exchange, the arithmetic mean of the per Share closing bid price and per
Share closing asked price on such date as quoted on the National Association of Securities Dealers Automated Quotation System (or such market in which such prices are regularly quoted), or, if there is no market on which the Shares are regularly
quoted, the Fair Market Value shall be the value established by the Committee in good faith. If no sale of Shares shall have been reported on such Composite Tape or such national securities exchange on such date or quoted on the National Association
of Securities Dealers Automated Quotation System on such date, then the immediately preceding date on which sales of the Shares have been so reported or quoted shall be used. 

  

							
		 	MOODY’S  2017 10-K	 	 	125	 

 (l)    Option: A stock option granted pursuant to Section 6 of the Plan.

 (m)    Option Price: The purchase price per Share of an Option, as determined pursuant to Section 6(b) of the Plan.

 (n)    Participant: Any director of the Company who is not an employee of the Company or any Subsidiary of the Company as
of the date that an Award is granted. 
 (o)    Performance Period: The calendar year or such other period of at least 12
consecutive months as shall be designated by the Committee from time to time. 
 (p)    Performance Share: A periodic bonus
award, payable in unrestricted Shares, granted pursuant to Section 8(a) of the Plan. 
 (q)    Person: As such term is
used for purposes of Section 13(d) or 14(d) of the Act (or any successor section thereto). 
 (r)    Plan: The 1998
Moody’s Corporation Non-Employee Directors’ Stock Incentive Plan, as amended and restated. 

(s)    Restricted Stock: A Share of restricted stock granted pursuant to Section 7 of the Plan. 

(t)    Retirement: Termination of service with the Company after such Participant has attained age 70, regardless of the length
of such Participant’s service; or, with the prior written consent of the Committee (excluding any member thereof whose own Retirement is at issue in a given case), termination of service at an earlier age after the Participant has completed six
or more years of service with the Company. 
 (u)    RSU: A restricted stock unit granted to a Participant pursuant to
Section 9 pursuant to which Shares may be issued in the future. 
 (v)    Section 409A: Section 409A of the Code
and applicable guidance issued thereunder. 
 (w)    Service Period: The period of time designated by the Committee from time
to time during which services must be rendered and at the end of which Restricted Stock and RSU grants shall vest. 

(x)    Shares: Shares of common stock, par value $0.01 per share, of the Company. 

(y)    Subsidiary: A subsidiary corporation, as defined in Section 424(f) of the Code (or any successor section thereto).

 (z)    Termination of Service: A Participant’s “separation from service” with the Company as determined
pursuant to Section 409A. 
 3. Shares Subject to the Plan 

The total number of Shares which may be issued under the Plan is 1,700,000 (subject to adjustment in accordance with the provisions of Section 10
hereof). The Shares may consist, in whole or in part, of unissued Shares or treasury Shares. The issuance of Awards shall reduce the total number of Shares available under the Plan. Shares which are subject to Awards which terminate or lapse may be
granted again under the Plan. 
 4. Administration 
 The Plan
shall be administered by the Committee, which may delegate its duties and powers in whole or in part to any subcommittee thereof consisting solely of at least two “non-employee directors” within the
meaning of Rule 16b-3 under the Act (or any successor rule thereto); provided, however, that any action permitted to be taken by the Committee may be taken by the Board, in its discretion. The Committee is
authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan. The Committee may correct
any defect or omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems necessary or desirable. Any decision of the Committee in the interpretation and administration of the Plan, as described herein,
shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, but not limited to, Participants and their beneficiaries or successors). 

5. Eligibility/Annual Limitation on Grants 
 All Participants
shall be eligible to participate under this Plan. In no event shall the number of Shares subject to Awards granted to any Participant in a calendar year exceed the lesser of (a) 20,000 Shares and (b) Shares with a Fair Market Value of $400,000.

 6. Terms and Conditions of Options 
 Options granted under
the Plan shall be non-qualified stock options for federal income tax purposes, as evidenced by the related Option agreements, and shall be subject to the foregoing and the following terms and conditions and to
such other terms and conditions, not inconsistent therewith, as the Committee shall determine: 
 (a)    Grants. A
Participant may receive, on such dates as determined by the Committee in its sole discretion, grants consisting of such number of Options as determined by the Committee in its sole discretion. 

  

							
	126	 	MOODY’S  2017 10-K	 			

 (b)    Option Price. The Option Price per Share shall be determined by the
Committee, but shall not be less than 100% of the Fair Market Value of the Shares on the date an Option is granted. 

(c)    Exercisability. Options granted under the Plan shall be exercisable at such time and upon such terms and conditions as
may be determined by the Committee, but in no event shall an Option be exercisable more than ten years after the date it is granted. 

(d)    Exercise of Options. Except as otherwise provided in the Plan or in a related Option agreement, an Option may be
exercised for all, or from time to time any part, of the Shares for which it is then exercisable. For purposes of Section 6 of the Plan, the exercise date of an Option shall be the later of the date a notice of exercise is received by the
Company and, if applicable, the date payment is received by the Company pursuant to clauses (i), (ii) or (iii) in the following sentence. The purchase price for the Shares as to which an Option is exercised shall be paid to the Company in full
at the time of exercise at the election of the Participant (i) in cash, (ii) in Shares, having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such other requirements as may be imposed
by the Committee, (iii) partly in cash and partly in such Shares, or (iv) through the delivery of irrevocable instructions to a broker to deliver promptly to the Company an amount equal to the aggregate Option Price for the Shares being
purchased. No Participant shall have any rights to dividends or other rights of a stockholder with respect to Shares subject to an Option until the occurrence of the exercise date (determined as set forth above) and, if applicable, the satisfaction
of any other conditions imposed by the Committee pursuant to the Plan. 
 (e)    Exercisability Upon Termination of Service by
Death. Upon a Termination of Service by reason of death after the first anniversary of the date on which an Option is granted, the unexercised portion of such Option shall immediately vest in full and may thereafter be exercised during the
shorter of the remaining term of the Option or five years after the date of death. 
 (f)    Exercisability Upon Termination of
Service by Disability or Retirement. Upon a Termination of Service by reason of Disability or Retirement after the first anniversary of the date on which an Option is granted, the unexercised portion of such Option may thereafter be exercised
during the shorter of the remaining term of the Option or five years after the date of such Termination of Service; provided, however, that if a Participant dies within a period of five years after such Termination of Service, the unexercised
portion of the Option shall immediately vest in full and may thereafter be exercised, during the shorter of the remaining term of the Option or the period that is the longer of five years after the date of such Termination of Service or one year
after the date of death. 
 (g)    Effect of Other Termination of Service. Upon a Termination of Service by reason of
Disability or Retirement prior to the first anniversary of the date on which an Option is granted (as described above), then, a pro rata portion of such Option shall immediately vest in full and may be exercised thereafter, during the shorter of
(A) the remaining term of such Option or (B) five years after the date of such Termination of Service, for a prorated number of Shares (rounded down to the nearest whole number of Shares), equal to (i) the number of Shares subject to
such Option multiplied by (ii) a fraction the numerator of which is the number of days the Participant served on the Board subsequent to the date on which such Option was granted and the denominator of which is 365. The portion of such Option
which is not so exercisable shall terminate as of the date of Disability or Retirement. Upon a Termination of Service for any other reason prior to the first anniversary of the date on which an Option is granted, such Option shall thereupon
terminate. Upon a Termination of Service for any reason other than death, Disability or Retirement after the first anniversary of the date on which an Option is granted, the unexercised portion of such Option shall thereupon terminate. 

(h)    Nontransferability of Stock Options. Except as otherwise provided in this Section 6(h), an Option shall not be
transferable by the optionee otherwise than by will or by the laws of descent and distribution and during the lifetime of an optionee an Option shall be exercisable only by the optionee. An Option exercisable after the death of an optionee or a
transferee pursuant to the following sentence may be exercised by the legatees, personal representatives or distributees of the optionee or such transferee. The Committee may, in its discretion, authorize all or a portion of the Options previously
granted or to be granted to an optionee to be on terms which permit irrevocable transfer for no consideration by such optionee to any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, of the optionee, trusts for the exclusive benefit of these persons, and any other entity owned solely by these persons (“Eligible Transferees”),
provided that (x) the stock option agreement pursuant to which such Options are granted must be approved by the Committee, and must expressly provide for transferability in a manner consistent with this Section and (y) subsequent transfers
of transferred Options shall be prohibited except those in accordance with the first sentence of this Section 6(h). The Committee may, in its discretion, amend the definition of Eligible Transferees to conform to the coverage rules of Form S-8 under the Securities Act of 1933 or any comparable Form from time to time in effect. Following transfer, any such Options shall continue to be subject to the same terms and conditions as were applicable
immediately prior to transfer. The events of Termination of Service of Sections 6(e), 6(f) and 6(g) hereof shall continue to be applied with respect to the original optionee, following which the Options shall be exercisable by the transferee only to
the extent, and for the periods specified, in Sections 6(e), 6(f) and 6(g). The Committee may delegate to a committee consisting of employees of the Company the authority to authorize transfers, establish terms and conditions upon which transfers
may be made and establish classes of Options eligible to transfer Options, as well as to make other determinations with respect to Option transfers. 

  

							
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 7. Terms and Conditions of Restricted Stock 

Restricted Stock granted under the Plan shall be subject to the foregoing and the following terms and conditions and to such other terms and conditions,
not inconsistent therewith, as the Committee shall determine: 
 (a)    Grants. A Participant may receive, on such dates as
determined by the Committee in its sole discretion, grants consisting of such amounts of Restricted Stock as determined by the Committee in its sole discretion. 

(b)    Restrictions. Restricted Stock granted under the Plan may not be sold, transferred, pledged, assigned or otherwise
disposed of under any circumstances; provided, however, that the foregoing restrictions shall lapse at such time and upon such terms and conditions as may be specified by the Committee in the related Award agreement(s). 

(c)    Vesting. Any grant of Restricted Stock under the Plan shall be subject to a minimum
one-year vesting requirement. 
 (d)    Forfeiture of Grants. Except to the extent
otherwise specified by the Committee in a related Award agreement(s), all Shares of Restricted Stock as to which restrictions have not previously lapsed pursuant to Section 7(b) of the Plan shall be forfeited upon a Participant’s
Termination of Service for any reason (including, without limitation, by reason of death, Disability or Retirement). 

(e)    Other Provisions. During the period prior to the date on which the foregoing restrictions lapse, Shares of Restricted
Stock shall be registered in the Participant’s name and such Participant shall have voting rights and receive dividends with respect to such Restricted Stock. 

(f)    Authorization for Committee to Permit Deferral. Notwithstanding anything in this Section 7 to the contrary, a
Participant may, if and to the extent permitted by the Committee, elect to defer receipt of any Restricted Stock granted under the Plan; provided, however, that any such election must be made and become irrevocable not later than the close of the
calendar year next preceding the year in which the Service Period commences; and further provided, that any such deferral shall be effected in accordance with the requirements of Section 409A of the Code. Any and all Restricted Stock for which
a deferral election is made shall be contributed to a grantor “rabbi” trust established by the Company prior to the date on which the restrictions on such Restricted Stock lapse, which trust shall be administered by an independent trustee;
provided, however, that distributions of Restricted Stock by such a trust to a Participant following the Participant’s Termination of Service will satisfy the Company’s obligations to the Participant with respect to Restricted Stock
awarded under this Plan to the extent of such distributions. 
 8. Terms and Conditions of Performance Shares 

(a)    Establishment of Annual Performance Target Levels and Number of Performance Shares. Prior to the commencement of a given
Performance Period, the Committee shall establish organizational or individual performance criteria within the meaning of Section 409A relating to such Performance Period (“Performance Goals”). The Committee shall also establish the
number of Performance Shares that would be payable to Participants upon the attainment of various Performance Goals during such Performance Period. 

(b)    Payment in Unrestricted Shares. As soon as practicable following a given Performance Period, but in no event later than
30 days after the end of such Performance Period, Participants shall receive unrestricted Shares equal to the number of Performance Shares earned by such Participant during such Performance Period. A Participant who did not serve on the Board during
an entire Performance Period shall receive a prorated number of Shares (rounded down to the nearest whole number of Shares) based upon (i) the number of days during the Performance Period during which such Participant served on the Board and
(ii) the actual performance results. 
 (c)    Authorization for Committee to Permit Deferral. Notwithstanding
Section 8(b) of the Plan, a Participant may, if and to the extent permitted by the Committee, elect to defer payment of any unrestricted Shares payable as a result of any Performance Shares earned by such Participant; provided, however, that
any such election must be made and become irrevocable (i) on or before the date that is six months before the end of the Performance Period, provided that the Participant performs services continuously from the later of the beginning of the
Performance Period or the date the Performance Goals are established through the date an election is made pursuant to this Section 8(c), and (ii) in accordance with such terms and conditions as are established by the Committee in its sole
discretion. Any and all Shares earned pursuant to Section 8(b) and the receipt of which is deferred by election pursuant to this Section 8(c) shall be distributed in accordance with the requirements of Section 409A of the Code. 

(d)    Vesting. Any grant of Performance Shares under the Plan shall be subject to a minimum
one-year vesting requirement. 
 9. Terms and Conditions of Restricted Stock Units 

RSUs granted under the Plan shall be subject to the foregoing and the following terms and conditions and to such other terms and conditions, not
inconsistent therewith, as the Committee shall determine: 
 (a)    Grants. A Participant may receive, on such dates as determined
by the Committee in its sole discretion, grants consisting of such numbers of RSUs as determined by the Committee in its sole discretion. 

  

							
	128	 	MOODY’S  2017 10-K	 			

 (b)    Restrictions. RSUs granted under the Plan may not be sold, transferred, pledged,
assigned or otherwise disposed of under any circumstances; provided, however, that the foregoing restrictions shall lapse following the issuance of Shares in connection therewith at such time and upon such terms and conditions as may be specified by
the Committee in the related Award agreement(s). 
 (c)    Vesting. Any grant of RSUs under the Plan shall be subject to a minimum one-year vesting requirement. 
 (d)    Forfeiture of Grants. Except to the extent otherwise
specified by the Committee in a related Award agreement(s), all RSUs as to which restrictions have not previously lapsed pursuant to Section 9(b) of the Plan shall be forfeited upon a Participant’s Termination of Service for any reason
(including, without limitation, by reason of death, Disability or Retirement) and no Shares shall be issued in connection therewith. 

(e)    Other Provisions. Participants shall have no voting rights with respect to Shares underlying RSUs unless and until such
Shares are reflected as issued and outstanding shares on the Company’s stock ledger. Shares underlying RSUs shall be entitled to dividends or dividend equivalents only to the extent provided by the Committee. 

(f)    Authorization for Committee to Permit Deferral. Notwithstanding anything in this Section 9 to the contrary, a Participant
may, if and to the extent permitted by the Committee, elect to defer receipt of Shares underlying RSUs granted under the Plan; provided, however, that any such election must be made and become irrevocable not later than the close of the calendar
year next preceding the year in which the Service Period commences; and further provided, that any such deferral shall be effected in accordance with the requirements of Section 409A of the Code. 

10. Adjustments Upon Certain Events 
 Notwithstanding any other
provisions in the Plan to the contrary, the following provisions shall apply to all Awards granted under the Plan: 

(a)    Generally. In the event of any change in the outstanding Shares after the Effective Date by reason of any Share dividend
or split, reorganization, recapitalization, merger, consolidation, spin-off, combination or exchange of Shares or other corporate exchange or similar transaction, or any distribution to stockholders of Shares
other than regular cash dividends, the Committee shall adjust the following to the extent necessary to achieve an equitable result: (i) the number or kind of Shares or other securities issued or reserved for issuance pursuant to the Plan or
pursuant to outstanding Awards, (ii) the Option Price, and/or (iii) any other affected terms of such Awards. 

(b)    Change in Control. Upon the occurrence of a Change in Control, (i) all restrictions on Shares of Restricted Stock
shall lapse, (ii) each Participant shall receive the target number of Performance Shares for the Performance Period in which the Change in Control occurs (or, if no target number has been established for such Performance Period, the target
number for the immediately preceding Performance Period shall be used), (iii) all Stock Options shall vest and become exercisable, and (iv) all RSUs shall vest and Shares (or the cash Fair Market Value thereof) shall be issued in connection
therewith. 
 11. Successors and Assigns 
 The Plan shall be
binding on all successors and assigns of the Company and a Participant, including, without limitation, the estate of such Participant and the executor, administrator or trustee of such estate, or any receiver or trustee in bankruptcy or
representative of the Participant’s creditors. 
 12. Amendments or Termination 

The Committee may amend, alter or discontinue the Plan, but no amendment, alteration or discontinuation shall be made which would impair the rights of any
Participant under any Award theretofore granted without such Participant’s consent. 
 13. Nontransferability of Awards 

Except as provided in Section 6(h) of the Plan, an Award shall not be transferable or assignable by the Participant otherwise than by will or by the
laws of descent and distribution. During the lifetime of a Participant, an Award shall be exercisable only by such Participant. An Award exercisable after the death of a Participant may be exercised by the legatees, personal representatives or
distributees of the Participant. Notwithstanding anything to the contrary herein, the Committee, in its sole discretion, shall have the authority to waive this Section 13 (or any part thereof) to the extent that this Section 13 (or any
part thereof) is not required under the rules promulgated under any law, rule or regulation applicable to the Company. 
 14. Choice of Law 

The Plan shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed in the
State of Delaware. 
 15. Effectiveness of the Plan 
 The
amendment and restatement of the Plan shall be effective as of December 18, 2017. 

  

							
		 	MOODY’S  2017 10-K	 	 	129	 

 16. Section 409A 

The Plan is intended to comply with the provisions of Section 409A in order to avoid taxation of amounts deferred hereunder before such amounts are
distributed from the Plan, and the Plan will be interpreted accordingly. 

  

							
	130	 	MOODY’S  2017 10-K

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