Document:

EMPLOYMENT AGREEMENT BY AND BETWEEN STERLING AND EZRA A. ECKHARDT

 EXHIBIT 10.16 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (this “Agreement”) is
made effective as of August 27, 2008, by and between STERLING FINANCIAL CORPORATION (“Sterling”) and EZRA ECKHARDT (the “Executive”). 
 W I T N E S S E T H : 
 WHEREAS, the Executive is an Officer of Sterling’s
wholly-owned subsidiary Sterling Savings Bank (the “Bank”), and Sterling desires to retain the Executive and the Executive is willing to continue to serve in such capacities on the terms and conditions herein set forth; and 

WHEREAS, the parties desire to enter into this Agreement, which is intended to supersede any existing employment agreement between the
parties; 
 NOW THEREFORE, in consideration of the mutual covenants herein contained, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
 1.
Employment. Sterling agrees to continue to employ the Executive, and the Executive agrees to continue to be employed by Sterling, upon the terms and conditions hereinafter provided. 

2. Position and Duties. Sterling agrees to employ the Executive to serve as the Chief Administration Officer of the Bank, and the
Executive will have such powers and duties as are commensurate with such position and as may be conferred upon him or her by the Board of Directors of Sterling (the “Board”) or the Board of Directors of the Bank. Executive shall faithfully
perform such duties and shall do nothing inconsistent with his or her duties to Sterling and the Bank. Except for illness or incapacity and reasonable vacation periods as shall be consistent with Sterling and the Bank’s policies for senior
officers, the Executive shall devote all of his or her business time, attention, skill and efforts exclusively to the business and affairs of Sterling and its subsidiaries. 
 3. Compensation. For all services rendered by the Executive in any capacity required hereunder, including, without limitation, services as an officer, director, or member of any committee of
Sterling, or any subsidiary or division thereof, the Executive shall be compensated as follows: 
 (a) Base Salary. Sterling
shall pay the Executive a fixed minimum salary of $260,000 per annum (such amount or such higher annual amount as is paid from time to time 

  
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pursuant to the terms hereof being referred to as the “Base Salary”). The Base Salary shall be subject to such periodic review (which shall occur at least annually) and such periodic
increases as deemed appropriate in accordance with Sterling and the Bank’s customary procedures and practices regarding the salaries of senior officers. The Base Salary shall be payable in accordance with the customary payroll practices of
Sterling, but in no event less frequently than monthly. 
 (b) Other Benefits. The Executive shall be entitled to participate in
all compensation or employee benefit plans or programs, and to receive all benefits, perquisites and emoluments, for which any salaried employees of Sterling are eligible under any plan or program now or hereafter established and maintained by
Sterling for senior officers, to the fullest extent permissible under the general terms and provisions of such plans or programs and in accordance with the provisions thereof, including group hospitalization, health, dental care, life or other
insurance, tax-qualified pension, savings, thrift, 401(k) and profit-sharing plans, termination pay programs, sick-leave plans, travel or accident insurance, salary continuation plans, disability insurance, automobile allowance or automobile lease
plans, and executive contingent compensation plans, including, without limitation, stock option or incentive plan(s) then in effect. 
 4. Termination of Employment. 
 (a) Termination. Either Sterling or
Executive may terminate Executive’s employment at any time in such party’s sole discretion. Except as expressly provided in this Agreement, upon termination of employment Sterling shall have no liability to pay any further compensation or
any other benefit or sum whatsoever to Executive. 
 (b) In the event that the Executive’s employment hereunder terminates,
earned but unpaid Base Salary as of the date of Termination of Employment shall be payable in full. Except as provided herein for Termination Upon a Change in Control, no other payments shall be made, or benefits provided, by Sterling under this
Agreement except for vested stock options and other incentive awards held by the Executive pursuant to the terms of the grant(s) thereof, vested benefits payable under the terms of the nonqualified deferred compensation plans then in effect in which
Executive participates, and any other vested benefits that the Executive is entitled to receive under the terms of employee benefit programs maintained by Sterling or its subsidiaries for its employees. 

  
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 (c) Payments for Termination Upon a Change in Control. Within twenty days of the
Executive’s Termination Upon a Change in Control, Sterling shall pay to the Executive in a single payment in cash and/or provide to the Executive, as applicable, the following: 

(i) the Executive’s earned but unpaid Base Salary as of the date of Termination of Employment; 

(ii) the benefits, if any, to which the Executive is entitled as a former employee under the employee benefit programs and compensation
plans and programs maintained for the benefit of Sterling’s officers and employees; 
 (iii) an amount equal to two times
Executive’s Annual Compensation; and 
 (iv) Options and Other Incentive Awards. All stock options and other incentive
awards held by the Executive shall become fully vested and exercisable. 
 (d) Adjustment for Taxes. In the event that either
Sterling’s independent public accountants or the Internal Revenue Service determines that any payment, coverage, benefit or benefit acceleration provided to Executive, whether specifically provided for in this Agreement or otherwise, is subject
to the excise tax imposed by Section 4999 (or any successor provision) (“Section 4999”) of the Internal Revenue Code of 1986, as amended (the “Code”), Sterling, within 30 days thereafter, shall pay to Executive, in addition
to any other payment or benefit due and owing hereunder, an amount determined by multiplying the rate of excise tax then imposed by Section 4999 by the amount of the “excess parachute payment” (as defined in Section 280G of the
Code) received by Executive (determined without regard to any payments made to the Executive pursuant to this paragraph) and dividing the product so obtained by the amount obtained by subtracting the aggregate local, state and Federal income tax
rate applicable to the receipt by Executive of the “excess parachute payment” (taking into account the deductibility for Federal income tax purposes of the payment of state and local income taxes thereon) from the amount obtained by
subtracting from 1.00 the rate of excise tax then imposed by Section 4999 of the Code, it being Sterling’s intention that the Executive’s net after tax position be identical to that which would have obtained had Sections 280G and 4999
not been part of the Code. 
 (e) If the actual excise tax imposed by Section 4999 of the Code is less than the amount that
was taken into account in determining the adjustment for taxes under Section 4(d), Executive shall repay at the time that the amount of the reduced excise tax is finally determined the 

  
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portion of the adjustment for taxes under Section 4(d) attributable to that reduction (plus the portion attributable to the excise tax, FICA tax and federal, state and local income tax
imposed on the portion of the adjustment being repaid by Executive, to the extent the repayment results in a reduction in or refund of excise tax, FICA tax or federal, state or local income tax), plus interest on the amount of the repayment at the
rate provided in Section 1274(b)(2)(B) of the Code. If the actual excise tax imposed is more than the amount that was taken into account in determining the amount of the adjustment under Section 4(d), Sterling shall make an additional
payment in respect of such excess (plus interest at the rate provided in Section 1274(b)(2)(B) of the Code) at the time that the amount of the excess is finally determined. 

(f) In the event that, on or after the occurrence of a Change in Control, Sterling fails to make any payment or provide any benefit to
Executive arising out of or relating in any way to this Agreement or to the Executive’s employment by Sterling (collectively, “Employment Rights”), then Sterling shall pay to the Executive and reimburse the Executive for the
Executive’s full costs (including, without limitation, the fees and expenses of the Executive’s attorneys and court and related costs) of enforcing the Executive’s Employment Rights. In addition, if the enforceability of this
Agreement or the payment of any benefit to the Executive hereunder is disputed by Sterling on or after the occurrence of a Change in Control, then the Term of this Agreement shall be extended for the period of the dispute in the event of a final
judicial determination that the Executive is entitled to at least fifty percent (in dollar amount) of the benefits that Executive claimed from, and that were disputed by, Sterling. 

(g) Definitions. For purposes of this Agreement, the following terms have the following meanings: 

(i) Executive’s “Annual Compensation” shall include (A) the greater of: (1) the total of Executive’s Base
Salary and any target bonus for the calendar year in which the termination occurs (if established before the termination), or (2) Executive’s Base Salary and any actual bonus for the prior calendar year (annualized if Executive was not
employed by Sterling for the entire previous calendar year) or (3) Executive’s Base Salary and any actual bonus for the calendar year prior to the Change in Control (annualized if Executive was not employed by Sterling for the entire
previous calendar year); and (B) the amount of the contributions made or anticipated to have been made by Sterling on Executive’s behalf to Sterling’s benefit plans for the calendar year in

  
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which the termination occurs, including without limitation contributions to pension and welfare plans maintained by Sterling for its employees. Annual Compensation shall not include the value of
any stock options or restricted stock granted to Executive. 
 (ii) A “Change in Control” shall be deemed to have
occurred at such time as the occurrence of a “change in ownership,” a “change in effective control” or a “change in the ownership of a substantial portion of the assets” of a corporation, as determined in accordance
with this Section 4(g)(ii). 
 (A) A “change in ownership” of Sterling shall occur on the date on which any one
person, or more than one person acting as a group, acquires ownership of stock of Sterling that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of
Sterling, as determined in accordance with Treas. Reg. §1.409A-3(i)(5)(v). If a person or group is considered either to own more than 50% of the total fair market value or total voting power of the stock of Sterling, or to have effective
control of such corporation within the meaning of part (B) of this Section, and such person or group acquires additional stock of such corporation, the acquisition of additional stock by such person or group shall not be considered to cause a
“change in the ownership” of Sterling. 
 (B) A “change in effective control” of Sterling shall occur only
on either of the following dates: 
 (1) The date on which 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 Sterling possessing 30% or more of the total voting power of the stock of Sterling, as determined in
accordance with Treas. Reg. §1.409A-3(i)(5)(vi). If a person or group is considered to possess 30% or more of the total voting power of the stock of Sterling, and such person or group acquires additional stock of Sterling, the acquisition of
additional stock by such person or group shall not be considered to cause a “change in effective control” of Sterling, or 
 (2) The date on which a majority of the members of Sterling’s 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, as determined in accordance with Treas. Reg. §1.409A-3(i)(5)(vi). 

  
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 (3) A “change in the ownership of a substantial portion of the assets” of
Sterling shall occur on the date on which 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
Sterling that have a total gross fair market value equal to more than 40% of the total gross fair market value of all for the assets of Sterling immediately before such acquisition or acquisitions, as determined in accordance with Treas. Reg.
§1.409A-3(i)(5)(vii). A transfer of assets shall not be treated as a “change in the ownership of a substantial portion of the assets” when such transfer is made to an entity that is controlled by the shareholders of the transferor
corporation, as determined in accordance with Treas. Reg. §1.409A-3(i)(5)(vii)(B). 
 (iii) The term “Constructive
Discharge” means a termination of the Executive’s employment by the Executive following the occurrence of any of the following events: 
 (A) Inferior Duties. The assignment of duties by Sterling to Executive, without his or her express written consent, that (i) are inferior to Executive’s duties on the Effective Date in
any material respect or (ii) result in Executive having inconsequential authority or responsibility compared to the authority or responsibility he or she had on the Effective Date. 

(B) Base Compensation Reduction. A material reduction by Sterling of Executive’s Base Salary. 

(C) Relocation. Executive, without his or her written consent, is required by him or her employment to perform a substantial part
of his or her duties at one or more locations more than fifty miles distant from Spokane, Washington. 
 (D) Breach. A
material breach by Sterling of any provision of this Agreement. 
 If an event constituting Constructive Discharge has occurred
without the Executive’s consent, the Executive’s termination for Constructive Discharge must occur within two years of the first occurrence of such event. The Executive shall give notice to Sterling, in accordance with Section 8, of
the existence of an event constituting Constructive Discharge within 90 days of the initial occurrence of such event, and Sterling will have 60 days to cure or otherwise obtain Executive’s express written consent to the occurrence or
continuance of such event. If Executive’s 

  
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employment is terminated for Constructive Discharge, it will be treated as an involuntary separation from service under §409A. 

(iv) The term “Termination for Cause” means: 
 (A) the continued failure of Executive to substantially perform the Executive’s duties with Sterling or one of its subsidiaries (other than any such failure resulting from incapacity due to physical
or mental illness), after a written demand for substantial performance is delivered to the Executive by the Board, which specifically identifies the manner in which the Board believes that the Executive has not substantially performed the
Executive’s duties, or 
 (B) the willful engaging by the Executive in illegal conduct that is materially and demonstrably
injurious to Sterling or any of its subsidiaries, or 
 (C) conviction of a felony involving fraud, dishonesty or moral
turpitude, or a guilty or nolo contendere plea by Executive with respect thereto, or 
 (D) violation of the provisions of
Section 5 herein. 
 For purposes of this provision, no act or failure to act on the part of Executive shall be considered
“willful” unless it is done, or omitted to be done, by the Executive in bad faith and without reasonable belief that the Executive’s action or omission was in the best interest of Sterling or its subsidiaries. Any act or failure to
act, based upon authority given pursuant to a resolution duly adopted by the Board or the Board of Directors of the Bank or based upon the advice of counsel for Sterling shall be conclusively presumed to be done, or omitted to be done, by the
Executive in good faith and in the best interests of Sterling and its subsidiaries. The cessation of employment of the Executive shall not be deemed to be a Termination for Cause unless and until there shall have been delivered to the Executive a
copy of a resolution duly adopted by the affirmative vote of not less than two-thirds of the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice is provided to Executive and the
Executive is given an opportunity, together with counsel, to be heard before the Board), finding that, in the good faith opinion of the Board, the Executive is guilty of the conduct described in subparagraph (A), (B) or (D) above, and
specifying the particulars thereof in detail. 
 (v) “Termination of Employment” shall mean the termination of the
Executive’s actual employment with Sterling, which constitutes a separation from service as defined under §409A. 

  
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 (vi) “Termination Upon a Change in Control” shall mean a Termination of
Employment upon or within twenty-four months after a Change in Control by Sterling, or its successors, without Cause, or by Executive due to a Constructive Discharge, as described under Section 4(g)(iii) hereof. 

5. Other Duties of Executive During and After Term. 
 (a) Confidential Information. The Executive recognizes and acknowledges that all information pertaining to the affairs, business, clients, or customers of Sterling or any of its subsidiaries (any or all
of such entities being hereinafter referred to as the “Business”), as such information may exist from time to time, other than information that Sterling has previously made publicly available or which is in the public domain, is
confidential information and is a unique and valuable asset of the Business, access to and knowledge of which are essential to the performance of the Executive’s duties under this Agreement. The Executive shall not, except to the extent
reasonably necessary in the performance of his or her duties under this Agreement, divulge to any person, firm, association, corporation, or governmental agency, any information concerning the affairs, business, clients, or customers of the Business
(except such information as is required by law to be divulged to a government agency or pursuant to lawful process), or make use of any such information for his or her own purposes or for the benefit of any person, firm, association or corporation
(except the Business) and shall use his or her reasonable best efforts to prevent the disclosure of any such information by others. All records, memoranda, letters, books, papers, reports, accountings, experience or other data, and other records and
documents relating to the Business, whether made by the Executive or otherwise coming into his or her possession, are confidential information and are, shall be, and shall remain the property of the Business. No copies thereof shall be made which
are not retained by the Business, and the Executive agrees, on termination of his or her employment or on demand of Sterling, to deliver the same to Sterling. 
 (b) Non-Compete. For a period of one year following Executive’s Termination of Employment (the “Non-Compete Period”), the Executive shall not, without express prior written approval of
Sterling’s Board, directly or indirectly own or hold any proprietary interest in, or be employed by or receive remuneration from, any corporation, partnership, sole proprietorship or other entity engaged in competition with Sterling or any of
its subsidiaries (a “Competitor”), other than severance-type or retirement-type benefits from entities constituting prior employers of the 

  
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Executive. For purposes of this Section 5(b) and Section 5(c), (i) the term “proprietary interest” means legal or equitable ownership, whether through stockholdings or
otherwise, of greater than a 20% equity interest in a business, firm or entity, and (ii) an entity shall be considered to be “engaged in competition” if such entity is, or is a holding company for, a bank, savings and loan association
or other financial services business engaged in a business that competes with Sterling in the States of Washington, Oregon, Idaho, Montana, or California. Executive acknowledges the receipt and sufficiency of specific consideration for the
agreements in this Section 5. 
 (c) Non-Solicitation. For a period of two years following Executive’s Termination of
Employment (the “Non-Solicitation Period”), the Executive will not solicit any customer or client of Sterling or its subsidiaries for the account of any Competitor. The Executive also agrees not to act on behalf of any Competitor to
solicit employees of Sterling or its subsidiaries for new employment or otherwise interfere with the relationship between Sterling or its subsidiaries and their employees during the Non-Solicitation Period. In addition, if the Executive obtains
non-competitive employment during the Non-Solicitation Period, for such period the Executive agrees not to solicit employees of Sterling or its subsidiaries for new employment without the prior written consent of Sterling. 

(d) Remedies. Sterling’s obligation to make payments, deliver shares of stock or provide for any benefits under this Agreement
(except to the extent vested or exercisable prior to Executive’s Termination of Employment) shall cease upon a violation of the preceding provisions of this section. Executive acknowledges that there would be no adequate remedy at law or in
damages to compensate Sterling for any violation of this Section 5, and agrees that Sterling shall be entitled to injunctive relief requiring specific performance by Executive of this Section 5 without the necessity of proving actual
damages or the posting of a bond, and Executive consents to the entry thereof. 
 (e) Survival. The provisions of this
Section 5 shall: (a) survive the termination of this Agreement, and continue throughout the duration of the Executive’s employment with Sterling, except as amended or modified by written agreement of the parties; and (b) survive
the Executive’s Termination of Employment with Sterling. The running of the Non-Compete Period provided under Section 5(b) and the Non-Solicitation Period under Section 5(c) shall be tolled between the time any controversy with
respect to this Section 5 is filed with a court or arbitrator and the decision of the judge, jury or arbitrator on said controversy. 

  
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 (f) Modification of Terms. If any restriction in this Section 5 is finally adjudicated
by a court of competent jurisdiction to exceed the time, geographic, service or other limitations permitted by applicable law in any jurisdiction, such restriction may be modified and narrowed by a court to the maximum time, geographic, service or
other limitations permitted by applicable law so as to preserve and protect Sterling’s legitimate business interest, without negating or impairing any other restrictions or undertaking set forth in the Agreement. 

(g) Application. The provisions of Sections 5(b) and 5(c) shall be inapplicable if the Executive’s Termination of Employment is due
to: a Permanent Disability; a Without Cause Termination; a Constructive Discharge; or a Termination Upon a Change in Control. 

6. Withholding Taxes. Sterling may directly or indirectly withhold from any payments made under this Agreement all Federal, state,
city or other taxes as shall be required pursuant to any law or governmental regulation or ruling. 
 7. Consolidation,
Merger, or Sale of Assets. Nothing in this Agreement shall preclude Sterling from consolidating or merging into or with, or transferring all or substantially all of its assets to, another corporation that assumes this Agreement and all
obligations and undertakings of Sterling hereunder. Upon such a consolidation, merger or transfer of assets, the term “Sterling” as used herein shall mean such other corporation and this Agreement shall continue in full force and effect.

 8. Notices. All notices, requests, demands and other communications required or permitted hereunder shall be given in
writing and shall be deemed to have been duly given if delivered or mailed, postage prepaid, by same day or overnight mail as follows: 
  

	 	(a)	To Sterling: 

 111 North Wall
Street 
 Spokane, WA 99201 
 Attention: Chief Executive Officer 
 With a copy to: 

Witherspoon, Kelley, Davenport & Toole, P.S. 
 422 West Riverside, Suite 1100 
 Spokane, WA 99201-0390 

Attention: Andrew J. Schultheis, Esq. 

  
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	 	(b)	To the Executive: 

 At his or
her regular office and to his or her primary residence 
 or to such other address as either party shall from time-to-time specify in writing to
the other. 
 9. No Attachment. Except as required by law, no right to receive payments under this Agreement shall be
subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation, or to execution, attachment, levy or similar process, or assignment by operation of law, and any attempt, voluntary or involuntary, to
effect any such action shall be null, void and of no effect; provided, however, that nothing in this Section 9 shall preclude the assumption of such rights by executors, administrators or other legal representatives of the Executive or his or
her estate and their assigning any rights hereunder to the person or persons entitled thereto. 
 10. No Mitigation. The
Executive shall not be required to mitigate the amount of any payment or benefit provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Agreement be reduced by any
compensation earned by other employment or otherwise, except as provided herein. 
 11. Source of Payment. All payments
provided for under this Agreement shall be paid in cash from the general funds of Sterling or the Bank. To the extent that any person acquires a right to receive payments from Sterling hereunder, such right, without prejudice to rights that
employees may have, shall be no greater than the right of an unsecured creditor of Sterling. 
 12. Further Action.
Sterling and Executive shall perform all acts and execute all documents as may be reasonably necessary to effect performance of this Agreement by Sterling. 
 13. Severability. If any provision of this Agreement or application thereof to anyone or under any circumstances is finally adjudicated by a court of competent jurisdiction to be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect any other provision or application and shall not invalidate or render unenforceable such provision or application in any other jurisdiction. 

14. Contents of Agreement. This Agreement supersedes all prior agreements and sets forth the entire understanding among the
parties hereto with respect to the subject matter hereof and cannot be changed, modified, extended or terminated except upon written amendment approved by the parties hereto. 

  
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 15. Governing Law. The validity, interpretation, performance, and enforcement of this
Agreement shall be governed by the laws of the State of Washington without giving effect to that body of laws pertaining to conflict of laws and the Executive consents to the jurisdiction of the state and federal courts of Washington in any dispute
arising under this Agreement. 
 16. Representations. The Executive hereby represents and warrants that he or she has the
legal capacity to execute and perform this Agreement, that it is a valid and binding agreement against him or her according to its terms, and that its execution and performance by him or her does not and will not violate the terms of any existing
agreement or understanding to which the Executive is a party. In addition, the Executive represents and warrants that he or she knows of no reason why he or she is not physically capable of performing his or her obligations under this Agreement in
accordance with its terms. 
 17. Miscellaneous. All section headings are for convenience only. This Agreement may be
executed in any number of counterparts, each of which when executed shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument. It shall not be necessary in making proof of this Agreement or any
counterpart hereof to produce or account for any of the other counterparts. 
 18. Compliance with §409A. This
Agreement is intended to constitute an enforceable contract for the payment of compensation, severance and certain other benefits. The Agreement is not intended to constitute a “nonqualified deferred compensation plan” within the meaning
of §409A. Notwithstanding the foregoing, in the event this Agreement and/or any benefit paid to the Executive hereunder is deemed to be subject to §409A, this Agreement shall be interpreted and, as reasonably necessary in the discretion of
the Board, may be amended to bring this Agreement and/or any such benefit into compliance with §409A, without reducing the amounts of any benefits due to the Executive hereunder. 

[Signature Page Follows] 

  
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 IN WITNESS WHEREOF, and intending to be legally bound, Sterling has caused this Agreement to
be executed by its duly authorized representatives and the Executive has signed this Agreement, all as of the first date above written. 
  

			
	STERLING FINANCIAL CORPORATION
		
	BY:	 	 /s/ Robert B. Larrabee

		 	ROBERT B. LARRABEE
		 	Chairman, Personnel Committee

 ATTEST: 

 

			
	STERLING FINANCIAL CORPORATION
		
	BY:	 	 /s/ Daniel G. Byrne

		 	DANIEL G. BYRNE
		 	Executive Vice President, Finance and
		 	Chief Financial Officer

  

	
	 /s/ Ezra Eckhardt

	EZRA ECKHARDT

 [Signature Page to
Employment Agreement] 

  
 13The Progressive Corporation 2010 Incentive Plan

 Exhibit 4.1 
 THE PROGRESSIVE CORPORATION 
 2010 EQUITY INCENTIVE PLAN 

SECTION 1. Establishment; Definitions. 
 (a) The Progressive Corporation, an Ohio corporation (the “Company”), hereby establishes an incentive compensation plan for key employees, to be known as “The Progressive Corporation 2010
Equity Incentive Plan,” as set forth in this document. The Plan permits the grant of Restricted Stock Units, Restricted Stock, Stock Options, and Stock Appreciation Rights to key employees of the Company and its Subsidiaries and Affiliates. The
purpose of the Plan is to enable the Company to attract, retain, motivate and reward key employees of the Company and its Subsidiaries and Affiliates and strengthen the mutuality of interests between such key employees and the Company’s
shareholders by offering such key employees equity or equity-based incentives. 
 (b) For purposes of the Plan, the following
terms shall have the meanings set forth below: 
 “Affiliate” means any entity (other than the
Company and its Subsidiaries) that is designated by the Board as a participating employer under the Plan. 

“Award” means any award of Restricted Stock Units, Restricted Stock, Stock Options, or Stock Appreciation
Rights under the Plan. 
 “Award Agreement” means an agreement setting forth the terms and
conditions applicable to an Award granted to a Participant under the Plan. 
 “Award
Installment” means, (i) if an Award consists of multiple installments, each with a separate Vesting Date, Expiration Date and/or other unique term or condition, any one of such installments, or (ii) if the Award consists of a
single installment, then the entire Award. 
 “Board” means the Board of Directors of the
Company. 
 “Cause” means a felony conviction of a Participant or the failure of a Participant
to contest prosecution for a felony, or a Participant’s willful misconduct or dishonesty, any of which, in the judgment of the Committee, is harmful to the business or reputation of the Company or any Subsidiary or Affiliate; any material
violation of any of the provisions of a Code of Conduct, or any confidentiality agreement, non-solicitation agreement, or other agreement between the Participant and the Company. 

“Change in Control” means a change in the ownership of the Company, a change in effective control of the
Company, or a change in the ownership of a substantial portion of the Company’s assets, each as defined and in, and determined in accordance with, Section 409A of the Code. 

“Change in Control Price” means the Fair Market Value of the Stock on the New York Stock Exchange
Composite Index on the last full trading day immediately preceding the occurrence of the Change in Control. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto.

 “Code of Conduct” means the Company’s Code of Business Conduct and Ethics, Chief
Executive Officer/Senior Financial Officers Code of Ethics, or any other Company code or standards of conduct applicable to the Participant from time to time. 
 “Committee” means the Compensation Committee of the Board. 
 “Company” means The Progressive Corporation, an Ohio corporation, or any successor corporation. 

  
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 “Disqualification Date” means the earliest date as of which
the Participant engaged in any Disqualifying Activity, as determined by the Committee. 
 “Disqualifying
Activity” means any of the following acts or activities: 
 (i) directly or indirectly serving as a
principal, shareholder, partner, director, officer, employee or agent of, or as a consultant or advisor or in any other capacity to, any business or entity which competes with the Company or its Subsidiaries or Affiliates in any business or activity
then conducted by the Company or any of its Subsidiaries or Affiliates to an extent deemed material by the Committee, without the Company’s prior written consent; or 

(ii) any disclosure by the Participant, or any use by the Participant for his or her own benefit or for the benefit of any
other person or entity (other than the Company or its Subsidiaries or Affiliates), of any confidential information or trade secret of the Company or any of its Subsidiaries or Affiliates without the prior written consent of the Company; or

 (iii) any material violation of any of the provisions any Code of Conduct or any agreement between the
Participant and the Company, as determined by the Committee; or 
 (iv) making any other disclosure or taking any
other action which is determined by the Committee to be materially detrimental to the business, prospects or reputation of the Company or any of its Subsidiaries or Affiliates; or 

(v) the Participant fails, in any material respect, to perform his or her assigned responsibilities as an employee of the
Company or any of its Subsidiaries or Affiliates, as determined by the Committee, in its sole judgment, after consulting with the Chief Executive Officer. 
 The ownership of less than 2% of the outstanding voting securities of a publicly traded corporation which competes with the Company or any of its Subsidiaries or Affiliates shall not constitute a
Disqualifying Activity. 
 “Dividend Equivalent” means, with respect to an outstanding
Restricted Stock Unit, an amount equal to a cash dividend paid or property distributed in respect of one share of Stock. 
 “Eligible Persons” has the meaning assigned to it in Section 4. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Expiration Date” means the date upon which an Award, or any portion thereof, is scheduled to expire or terminate if not exercised or vested prior thereto, as determined by the Committee
and set forth in the related Award Agreement. 
 “Fair Market Value” means, as of any given
date, the mean between the highest and lowest quoted selling price of the Stock on such date on the New York Stock Exchange or, if no such sale of the Stock occurs on the New York Stock Exchange on such date, then such mean price on the next
succeeding day on which the Stock was traded on that Exchange. If the Stock is no longer traded on the New York Stock Exchange, then the Fair Market Value of the Stock shall be determined by the Committee in good faith. 

“Family Member” means a Participant’s child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships, a trust in which any of these persons (and/or the Participant) holds more than 50% of the
beneficial interest, a foundation in which any of these persons (and/or the Participant) controls the management of assets and any other entity in which any of these persons (and/or the Participant) owns more than 50% of the voting interests.

 “Good Reason” means, on or after the date of a Change in Control: 

  
 2 

 (i) any significant diminution or change in the individual’s duties,
position (including status, title and reporting requirements), authority, or responsibilities, without his or her consent; 
 (ii) a decrease, as compared with the 12 months immediately preceding the Change in Control, in any of the Participant’s salary, cash bonus opportunity, the value of annual time-based and
performance-based (if applicable) equity awards, the prompt reimbursement of appropriate business expenses as set forth in the Company’s policies immediately prior to the Change in Control, or allotted vacation time; 

(iii) requiring the Participant to be based at any office location more than 25 miles from the office at which he or she
was based immediately prior to the Change in Control; 
 (iv) denying the Participant the right to participate in
savings, retirement and welfare benefit plans on the same basis as is available to other employees, subject to legal requirements; or 
 (v) requiring the Participant to travel on business to a substantially greater extent than required during the 12 months immediately preceding the Change in Control. 

“Incentive Stock Option” means any Stock Option intended to be and designated as an “Incentive Stock
Option”, which satisfies the requirements of Section 422 of the Code or any successor section thereto. 

“Non-Employee Director” shall have the meaning set forth in Rule 16b-3(b)(3)(i) promulgated by the
Securities and Exchange Commission under the Exchange Act, or any successor definition adopted by the Commission. 
 “Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option. 
 “Option Exercise Price” means the price at which a share of Stock may be purchased by a Participant pursuant to the exercise of an Option, as determined by the Committee and set forth in
the related Option Award Agreement. 
 “Option Installment” means an Award Installment of Stock
Options. 
 “Option Term” means the period commencing on the grant date of a Stock Option and
terminating on the Expiration Date of such Option. 
 “Outside Director” shall have the meaning
set forth in Section 162(m) of the Code and the regulations promulgated thereunder. 

“Participant” means an Eligible Person who holds an outstanding Award granted under the Plan. 

“Performance-Based Award” means any Performance-Based Restricted Stock Award, Performance-Based
Restricted Stock Unit Award or other Award that will vest upon the Committee’s certification of the achievement of Performance Goals established by or under the direction of the Committee and set forth in the related Award Agreement, provided
all other conditions to vesting have been met. 
 “Performance-Based Restricted Stock” means an
Award of Restricted Stock, which will vest upon the Committee’s certification of the achievement of Performance Goals established by or under the direction of the Committee and set forth in the related Award Agreement, provided all other
conditions to vesting have been met. 
 “Performance-Based Restricted Stock Unit” means an Award
of a Restricted Stock Unit that will vest upon the Committee’s certification of the achievement of Performance Goals established by or under the direction of the Committee and set forth in the related Award Agreement, provided all other
conditions to vesting have been met. 
 “Performance Goals” means the performance goals selected
and established by the Committee with respect to any Performance-Based Award, which shall be based on objective criteria relating to one or more of the following measures: 

  
 3 

	 	(i)	Profitability: 

  

	 	•	 	 combined ratio 

  

	 	•	 	 target combined ratio 

  

	 	•	 	 weighted combined ratio 

  

	 	•	 	 variation in combined ratio from a targeted combined ratio 

 

	 	•	 	 cohort combined ratio (the expected lifetime combined ratio for a group of policies commencing during a specified time period)

  

	 	•	 	 return on equity, or 

  

	 	•	 	 return on revenue; 

  

	 	(ii)	Growth: 

  

	 	•	 	 policies in force 

  

	 	•	 	 vehicles insured 

  

	 	•	 	 drivers insured 

  

	 	•	 	 net earned premiums 

  

	 	•	 	 earned premium per policy or per vehicle 

  

	 	•	 	 earned car years 

  

	 	•	 	 physical damage earned car years, or 

  

	 	•	 	 net written premiums; and 

  

	 	(iii)	Other: 

  

	 	•	 	 net income 

  

	 	•	 	 net income per share, or 

  

	 	•	 	 value of a share of Stock. 

 Performance goals may be measured on a company-wide, subsidiary or business unit basis, or any combination thereof. Performance goals may reflect absolute entity performance or a relative comparison of
entity performance to the performance of a peer group of entities or other external measure. 

“Plan” means The Progressive Corporation 2010 Equity Incentive Plan, as amended from time to time.

 “Qualified Retirement” means any termination of a
Participant’s employment with the Company or its Subsidiaries or Affiliates for any reason (other than death or an involuntary termination for Cause) that (a) qualifies as a “separation from service” under Section 409A of
the Code, and (b) occurs on or after the first day of the calendar month in which both of the following conditions are scheduled to be satisfied: 
 (i) the Participant is 55 years of age or older; and 
 (ii) the
Participant has completed at least fifteen (15) years of service as an employee of the Company or its Subsidiaries or Affiliates; 
 provided, however, that on the Participant’s most recent performance evaluation (or, at or after a Change in Control, the Participant’s most recent performance evaluation preceding the Change in
Control), he or she was determined to have “met” expectations (or a higher level of performance) or to have satisfied such other evaluation criteria then employed by the Company and its subsidiaries that indicates an acceptable (or higher)
level of performance by the Participant for the period covered by such performance evaluation. 

“Qualified Retirement Date” means the date as of which a Participant’s employment with the Company
or its Subsidiaries or Affiliates terminates pursuant to a Qualified Retirement. 
 “Restricted
Stock” means an Award of shares of Stock that is made pursuant to Section 7 and is subject to restrictions. 
 “Restricted Stock Unit” or “Unit” means the contractual right awarded pursuant to Section 6 of the Plan to receive one share of Stock upon the expiration of a specified
time period or upon the satisfaction of specified Performance Goals, as determined by or under the direction of the Committee. 

  
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 “Restriction Period” means the period commencing on the
date of the Award and expiring on the date on which all restrictions thereon have lapsed and all conditions to vesting of such Award have been satisfied. 
 “Section 16 Participant” means a Participant under the Plan who is then subject to Section 16 of the Exchange Act. 

“Senior Management Group” means the Chief Executive Officer and other members of the executive management
team (i.e. the Chief Executive Officer’s Direct Reporting Group) determined, with respect to any Participant, on the date of the written notice of retirement given by such individual as provided in Section 10(c). 

“Stock” means the Common Shares, $1.00 par value per share, of the Company. 

“Stock Appreciation Right” means an Award of rights that is granted pursuant to Section 9.

 “Stock Option” or “Option” means any option to purchase shares of Stock that
is granted pursuant to Section 8. 
 “Subsidiary” means any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company if each of the corporations (other than the last corporation in the unbroken chain) owns stock possessing 50% or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain. 
 “Time-Based Award” means any Award that will
vest upon the lapse of a time period determined by or under the direction of the Committee and specified in the related Award Agreement, provided all other conditions to vesting have been met. 

“Time-Based Restricted Stock” means an Award of Restricted Stock that will vest upon the lapse of a time
period determined by or under the direction of the Committee and specified in the related Award Agreement, provided all other conditions to vesting have been met. 

“Time-Based Restricted Stock Unit” means an Award of a Restricted Stock Unit that will vest upon the
lapse of a time period determined by or under the direction of the Committee and specified in the related Award Agreement, provided all other conditions to vesting have been met. 

“Vesting Date” means the date on which all restrictions on an Award terminate and such Award vests,
whether by reason of lapse of time, the achievement of specified Performance Goals or both. 
 SECTION 2. Administration. 

(a) The Plan shall be administered by the Committee. The Committee shall consist of not less than three directors of the Company, all of
whom shall be Non-Employee Directors and Outside Directors. Committee members shall be appointed by the Board and shall serve on the Committee at the pleasure of the Board. The functions of the Committee specified in the Plan shall be exercised by
the Board if and to the extent that no Committee exists which has the authority to so administer the Plan. 
 (b) The Committee
shall have full power to interpret and administer the Plan and full authority to select the individuals to whom Awards will be granted and to determine the type and amount of Awards to be granted to each Participant, the consideration, if any, to be
paid for such Awards, the timing of such Awards, the terms and conditions of Awards granted under the Plan and the terms and conditions of the related Award Agreements which will be entered into with Participants. As to the selection of and grant of
Awards to Participants who are not Section 16 Participants, the Committee may delegate its responsibilities to members of the Company’s management consistent with applicable law. 

(c) The Committee shall have the authority to adopt, alter, change and repeal such rules, regulations, guidelines and practices governing
the Plan, from time to time, as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award issued under the Plan (and any Award Agreement relating thereto); to direct employees of the Company

  
 5 

 
or other advisors to prepare such materials or perform such analyses as the Committee deems necessary or appropriate; and otherwise to supervise the administration of the Plan. 

(d) Any interpretation and administration of the Plan by the Committee, and all actions and determinations of the Committee, shall be
final, binding and conclusive on the Company, its shareholders, Subsidiaries, Affiliates, all Participants in the Plan, their respective legal representatives, successors and assigns and all persons claiming under or through any of them. No member
of the Board or of the Committee shall incur any liability for any action taken or omitted, or any determination made, in good faith in connection with the Plan. 
 SECTION 3. Stock Subject to the Plan. 
 (a) Aggregate Stock Subject to
the Plan. Subject to adjustment as provided in Section 3(c) below, (i) the total number of shares of Stock reserved and available for Awards under the Plan is 18,000,000, and (ii) the total number of shares of Stock available (but
not reserved) for Awards of Incentive Stock Options is 1,000,000. Any Stock issued hereunder may consist, in whole or in part, of authorized and unissued shares or treasury shares. 

The actual or deemed reinvestment of dividends, other distributions or Dividend Equivalents in additional Stock, Restricted Stock or
Restricted Stock Units, as applicable, shall only be permissible if sufficient shares of Stock are available under this Section 3 for such reinvestment (taking into account the then outstanding and previously granted Awards, subject to Sections
3(b) and (c) below). 
 (b) Forfeiture or Termination of Awards or Stock. If any Stock subject to any Award granted
hereunder is forfeited or an Award otherwise terminates or expires without the issuance of Stock, the Stock that is subject to or reserved for such Award shall again be available for distribution in connection with future Awards under the Plan as
set forth in Section 3(a), unless the Participant who had been awarded such forfeited Stock or the expired or terminated Award has theretofor received dividends or other benefits of ownership with respect to such Stock. For purposes hereof, a
Participant shall not be deemed to have received a benefit of ownership with respect to such Stock or other Award by the exercise of voting rights or the accumulation of dividends or Dividend Equivalents which are not realized due to the forfeiture
of such Stock or the expiration, forfeiture or termination of the related Award without issuance of such Stock. 
 (c)
Adjustment. In the event of any merger, reorganization, consolidation, recapitalization (including, without limitation, extraordinary cash dividends), share dividend, share split, reverse share split, combination of shares or other change in
the corporate or capital structure of the Company affecting the Stock, such substitution or adjustment shall be made in the aggregate number of shares of Stock reserved for issuance under the Plan, in the maximum number of shares or Units that may
be subject to Awards granted to any Participant during any calendar year or other period, in the number and Option Exercise Price of shares subject to outstanding Options or Stock Appreciation Rights granted under the Plan, in the number of shares
subject to Restricted Stock Awards granted under the Plan, and in the number of Restricted Stock Units granted under the Plan, to prevent dilution or enlargement of rights. Notwithstanding the foregoing, the number of shares subject to any Award of
Restricted Stock, Stock Options or Stock Appreciation Rights shall always be a whole number, and any fractional shares shall be eliminated. 
 (d) Annual Award Limitation. No Participant may be granted Awards under the Plan with respect to an aggregate of more than 1,500,000 shares of Stock (subject to adjustment as provided in
Section 3(c) hereof) during any calendar year. 
 SECTION 4. Eligibility. 

Officers and other key employees of the Company and its Subsidiaries and Affiliates (but excluding members of the Committee and any other
person who serves only as a director) who are responsible for or contribute to the management, growth or profitability of the business of the Company or its Subsidiaries or Affiliates (“Eligible Persons”) are eligible to be granted Awards
under the Plan. 

  
 6 

 SECTION 5. Terms and Conditions Applicable to all Awards. 

(a) Grant. Subject to the terms and conditions of the Plan, Awards may be awarded to Eligible Persons at any time and from time to
time as shall be determined by the Committee. The Committee shall determine the individuals to whom, and the time or times at which, grants of Awards will be made, the nature of each Award, the number of shares of Stock, Restricted Stock Units or
other interests that are covered by or subject to such Award, the requirements for the vesting of such Award and any other restrictions applicable thereto, and the other terms and conditions of such Awards in addition to those set forth in
Section 5(b) and in the following Sections that apply to each specific type of Award. In the event of any inconsistency between this Section 5 and any of the following Sections that apply to a specific type of Award, the provisions of the
Section applying to that specific type of Award will control. 
 (b) Terms and Conditions. Awards made under the Plan
shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall deem desirable: 

(i) The purchase price for the Award, if any, shall be determined by the Committee at the time of grant. 

(ii) Awards must be accepted by executing the related Award Agreement, delivering an executed copy of such Award Agreement
to the Company and paying whatever price (if any) is required. A Participant who receives an Award shall not have any rights with respect to such Award unless and until such Participant has executed and delivered to the Company the applicable Award
Agreement, in the form approved from time to time by the Committee, and has otherwise complied with the applicable terms and conditions of such Award Agreement. In the Company’s discretion, the execution and delivery of such Award Agreement may
be accomplished electronically or by other legally acceptable means. 
 (iii) A Participant may be granted a
Time-Based Award or a Performance-Based Award, or a combination thereof. The Committee, in its sole discretion, may provide for the lapse of the restrictions and conditions to vesting in Award Installments, as set forth in the related Award
Agreement. The provisions of Awards need not be the same with respect to each Participant. 
 (iv)
Notwithstanding anything to the contrary contained herein, the Committee, in its sole discretion, may reduce the amount of, or eliminate in full, the amount of Stock, Units or other interests that are subject to any Performance-Based Award at, or at
any time prior to, the Committee’s certification of the vesting of such Award. The Committee, in its sole discretion, may treat individual Participants differently for these purposes. Any such determination by the Committee shall be final and
binding on each Participant who is affected thereby. Under no circumstances shall the Committee have discretion to increase the distribution to any Participant in excess of the number of shares of Stock, Units or other interests that would have been
awarded at vesting based on the Performance Goals and related formula and calculation approved by the Committee at the time of the applicable Award (except for adjustments under the circumstances described in Section 3(c)). 

(v) Subject to the provisions of this Plan and the related Award Agreement, during the Restriction Period, the Participant
who has received such Award shall not be permitted to sell, transfer, pledge, assign or otherwise encumber such Award or the Stock, Units or other interests which are subject to such Award , other than by will or by the laws of descent and
distribution, except that, if determined by the Committee at the time of grant and so provided in the applicable Award Agreement, a Participant may transfer the applicable Stock, Units or other interests during his or her lifetime to one or more of
his or her Family Members, provided that no consideration is paid for the transfer and that the transfer would not result in the loss of any exemption under Rule 16b-3 of the Exchange Act with respect to the applicable Award. In such event, the
transferee of the applicable Stock, Units or other interests will be subject to the Plan and to all restrictions, terms and conditions applicable to the Award (including, without limitation, the terms and conditions relating to vesting and
forfeiture) prior to their transfer, except that the Award and the applicable Stock, Units and other interests will not be further transferable by the transferee other than by will or by the laws of descent and distribution. 

(vi) Unless otherwise determined by the Committee at or after the time of granting any Award, and except as provided in
Section 10 hereof, if a Participant’s employment by the Company or any Subsidiary or Affiliate terminates for any reason other than death, all Awards held by such Participant that are unvested or subject

  
 7 

 
to restriction at the time of such termination shall thereupon be forfeited. Without limiting the foregoing, upon a termination of a Participant’s employment for Cause, all outstanding
Awards held by such Participant, whether then vested or unvested, shall automatically be terminated and forfeited. 
 (vii) Any Participant who is then eligible to participate in The Progressive Corporation Executive Deferred Compensation Plan or any other deferral plan hereafter adopted or maintained by the Company (in
each case, a “Deferral Plan”) may elect to defer each Award granted to him or her under this Plan, subject to and in accordance with the terms of the applicable Deferral Plan. 
 SECTION 6. Restricted Stock Units. 
 (a) Grant. Subject to the terms
and conditions of the Plan, Restricted Stock Units may be awarded to Eligible Persons at any time and from time to time as shall be determined by the Committee. 
 (b) Terms and Conditions. In addition to the terms and conditions set forth in Section 5, Restricted Stock Units awarded under the Plan shall be subject to the following terms and conditions
and shall contain such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall deem desirable: 
 (i) No instruments or certificates evidencing such Units will be issued, but record thereof will be maintained by the Company or its designee. 

(ii) Awards of Performance-Based Restricted Stock Units will vest and all restrictions thereon will terminate upon the
certification by the Committee of the achievement of the specified Performance Goals, provided all other conditions to vesting have been met. In the Committee’s discretion, such Awards of Performance-Based Restricted Stock Units may
(A) stipulate a number of Units that will vest only in their entirety upon the satisfaction of the specified Performance Goals, (B) stipulate a number of Units that will vest either in whole or in part, depending on the level of
achievement in comparison to the specified Performance Goals, pursuant to a formula, calculation or other objective mechanism approved by the Committee at the time of the Award, or (C) stipulate a target number of Units (the “Target”)
that may vest in part, in whole or up to a specified multiple of the Target, depending on the level of achievement in comparison to the specified Performance Goals pursuant to a formula, calculation or other objective mechanism approved by the
Committee at the time of the Award. In the case of any Award authorized under clause (C) of the previous sentence, a number of shares of Stock equal to the maximum possible distribution at vesting will be reserved by the Company until such time
as the applicable distribution or forfeiture event occurs. If Performance-Based Restricted Stock Units do not vest in whole or in part under the applicable Performance Goals, on or before the Expiration Date, such Units will be forfeited.

 (iii) The Participant shall not have the right to vote the shares of Stock represented by the Restricted Stock
Units prior to the vesting of such Units. 
 (iv) The Participant shall not have the right to receive any
dividends in respect of the shares of Stock represented by the Restricted Stock Units prior to the vesting of such Units. At the discretion of the Committee determined at the time of the Award, the Participant may be credited with Dividend
Equivalents during the Restriction Period. In such case, unless determined otherwise by the Committee at or after the time of the Award and subject to Section 3(a) of the Plan: 

(A) all Dividend Equivalents payable in respect of Restricted Stock Units shall be deemed reinvested on the date that the
applicable dividend or distribution is made to the Company’s shareholders, in that number of Units determined by dividing the value of the Dividend Equivalent by the Fair Market Value of a share of Stock on such date. The Units resulting from
the reinvestment of such Dividend Equivalents (1) shall be subject to the same terms and conditions as the Restricted Stock Units to which they relate, and (2) shall vest or be forfeited (if applicable), at the same time as the Restricted
Stock Units to which they relate; and 
 (B) with respect to Awards of Performance-Based Restricted Stock Units
described in Section 6(b)(ii)(B) and (C), Dividend Equivalents will be reinvested in Restricted Stock Units based on, as applicable, the number of Units comprising such Award or the Target number of Units stated in such

  
 8 

 
Award, and such reinvested Restricted Stock Units shall vest or be forfeited (to the extent applicable) in the same proportion as the underlying Units to which they relate. 

If Dividend Equivalents cannot be reinvested in Units due to the operation of Section 3(a), then the Committee, in its sole
discretion, may determine alternative mechanism(s) to credit the value of those Dividend Equivalents to the Participants (provided that in all events, such Dividend Equivalents shall vest or be forfeited (if applicable), at the same time as the
Restricted Stock Units to which they relate), or may discontinue the crediting of such Dividend Equivalents on a prospective basis only. 
 (v) If a Participant’s employment by the Company or any Subsidiary or Affiliate terminates by reason of death, then any Award of Restricted Stock Units held by such Participant at the time of death
shall thereafter vest and any restrictions lapse, at the time and to the extent such Award would have become vested and no longer subject to restriction within one year from the time of death had the Participant continued to fulfill all of the
conditions of the Award during such period; provided that (i) the determination of whether any such Award would have vested within one year from the Participant’s death shall be made without regard to whether the Participant could have
been eligible for a Qualified Retirement during such one year period, and (ii) if the vesting of such Award is conditioned on or subject to the achievement of specified Performance Goals, such Performance Goals are achieved prior to the earlier
of the expiration of such one year period or the Expiration Date of the Award. The balance of the Award, if any, shall be forfeited. 
 (vi) Upon the satisfaction of all conditions to vesting of, and the lapse of all other restrictions applicable to, all or part of an Award of Restricted Stock Units, as set forth in this Plan and the
applicable Award Agreement, (A) the Company shall distribute to the Participant one share of Stock in exchange for each such vested Restricted Stock Unit, and (B) the applicable Restricted Stock Units shall be cancelled, and the shares of
Stock so distributed shall not be subject to any further restrictions or limitations pursuant to this Plan. Unless determined otherwise by the Committee at any time prior to the applicable distribution, each fractional Restricted Stock Unit shall
vest and be settled in an equal fraction of a share of Stock. 
 SECTION 7. Restricted Stock. 

(a) Grant. Subject to the terms and conditions of the Plan, Restricted Stock may be awarded to Eligible Persons at any time and
from time to time as shall be determined by the Committee. 
 (b) Terms and Conditions. In addition to the terms and
conditions set forth in Section 5, Restricted Stock awarded under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the provisions of the Plan, as the
Committee shall deem desirable: 
 (i) The purchase price for shares of Restricted Stock shall be determined by
the Committee at the time of grant and may be equal to their par value or zero. 
 (ii) Each Participant
receiving a Restricted Stock Award shall be issued a stock certificate in respect of such shares of Restricted Stock. Such certificate shall be registered in the name of such Participant, and shall bear an appropriate legend referring to the terms,
conditions and restrictions applicable to such Award. The stock certificate evidencing such shares of Restricted Stock shall be delivered to and held in custody by the Company, or its designee, until the restrictions thereon shall have lapsed or any
conditions to the vesting of such Award have been satisfied. 
 Notwithstanding the foregoing, in the discretion
of the Company, any shares of Restricted Stock awarded to any Participant may be issued and held in book entry form. In such event, no stock certificates evidencing such shares will be issued and the applicable restrictions will be noted in the
records of the Company’s transfer agent and in the book entry system. 
 As a condition of any Restricted
Stock Award, the Participant shall deliver to the Company a stock power, endorsed in blank, relating to the Stock covered by such Award, or make such other arrangements with respect thereto as the Committee may require. 

  
 9 

 (iii) Except as provided otherwise in the Plan or the applicable Award
Agreement, the Participant shall have, with respect to the shares of Restricted Stock awarded, all of the rights of a shareholder of the Company, including the right to vote the Stock and the right to receive any dividends or other distributions.
Notwithstanding the foregoing, the Committee may determine, with respect to any Award of Restricted Stock, that cash dividends or other distributions declared thereon shall not be paid or distributed immediately, but shall be and remain subject to
all the terms and conditions regarding vesting, restrictions and forfeiture that apply to the shares of Restricted Stock to which such dividends or distributions relate. In each such instance, the Committee shall also determine at the time of the
Award all necessary or appropriate details concerning such dividends and distributions, including, without limitation, whether such dividends and distributions will earn interest prior to vesting and, if so, the applicable interest rate or rates, or
whether such dividends will be reinvested or deemed to be reinvested in additional Restricted Stock, Restricted Stock Units or other interests available to be awarded hereunder (subject to Section 3(a)), and how or when distribution thereof
shall be made upon vesting, provided that the accumulation or reinvestment of dividends or distributions, and the ultimate distribution thereof to the Participant hereunder shall, in all events, be subject to and done in compliance with
Section 409A of the Code, including, but not limited to, the requirement that any distribution to a “specified employee” payable on account of a “separation from service,” as such terms are defined under Section 409A of
the Code, may not occur until six months and one day following such separation from service. Stock dividends issued with respect to Restricted Stock shall be treated as additional shares of Restricted Stock that are subject to the same restrictions
and other terms and conditions that apply to the shares with respect to which such dividends are issued. 
 (iv)
If a Participant’s employment by the Company or any Subsidiary or Affiliate terminates by reason of death, then any Award of Restricted Stock held by such Participant at the time of death shall thereafter vest and any restrictions lapse, at the
time and to the extent such Award would have become vested and no longer subject to restriction within one year from the time of death had the Participant continued to fulfill all of the conditions of the Award during such period; provided that in
each case (i) the determination of whether any such Award would have vested within one year from the Participant’s death shall be made without regard to whether the Participant could have been eligible for a Qualified Retirement during
such one year period, and (ii) if the vesting of such Award is conditioned on or subject to the achievement of specified Performance Goals, such Performance Goals are achieved prior to the earlier of the expiration of such one year period or
the Expiration Date of the Award. The balance of the Award, if any, shall be forfeited. 
 SECTION 8. Stock Options. 

(a) Grant. Subject to the terms and conditions of the Plan, Stock Options may be granted to Eligible Persons at any time and from
time to time, as shall be determined by the Committee. Stock Options granted under the Plan may be either of two types, which shall be indicated in the related Award Agreement: Incentive Stock Options or Non-Qualified Stock Options. Subject to
Section 8(c) hereof, the Committee shall have the authority to grant to any Participant Incentive Stock Options, Non-Qualified Stock Options or a combination thereof. 
 (b) Terms and Conditions. In addition to the terms and conditions set forth in Section 5, Stock Options granted under the Plan shall be subject to the following terms and conditions and shall
contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable: 
 (i) The Option Exercise Price per share of Stock purchasable under a Non-Qualified Stock Option shall be determined by the Committee at the time of grant and shall not be less than 100% of the Fair Market
Value of the Stock on the date of grant. The Option Exercise Price per share of Stock purchasable under an Incentive Stock Option shall be determined by the Committee at the time of grant and shall be not less than 100% of the Fair Market Value of
the Stock at the date of grant (or 110% of the Fair Market Value of the Stock at the date of grant in the case of a Participant who at the date of grant owns shares possessing more than ten percent of the total combined voting power of all classes
of stock of the Company or its parent or subsidiary corporations (as determined under Section 424(d), (e) and (f) of the Code) (a “10% Participant”)). 

(ii) The Option Term shall be determined by the Committee at the time of grant and may not exceed ten years from the date
the Option is granted (or, with respect to Incentive Stock Options, five years in the case of a 10% Participant). 

  
 10 

 (iii) Stock Options shall be exercisable at such time or times and subject
to such terms and conditions (which may include, without limitation, the achievement of one or more Performance Goals) as shall be determined by the Committee at or after grant. If any Stock Option is exercisable only in installments or only after a
specified vesting date, the Committee may accelerate or waive, in whole or in part, such installment exercise provisions or vesting date, at any time at or after grant based on such factors as the Committee shall determine, in its sole discretion,
provided such action would not result in the loss of any exemption under Rule 16b-3 of the Exchange Act. 
 (iv)
Subject to whatever installment exercise provisions apply with respect to such Stock Option, and any other conditions to vesting, Stock Options may be exercised in whole or in part, at any time during the Option Term, by giving to the Company or its
designee written or other appropriate notice of exercise specifying the number of shares of Stock to be purchased. Such notice shall be accompanied by payment in full of the Option Exercise Price of the shares of Stock for which the Option is
exercised, in cash or by check or by such other instrument or arrangement as the Committee may approve at or after grant. Subject to the following sentence, unless otherwise determined by the Committee, in its sole discretion, at or after grant,
payment, in full or in part, of the option price of Incentive Stock Options and Non-Qualified Stock Options may be made in the form of unrestricted Stock which has been owned by the Participant for more than six (6) months. If so permitted, the
value of each such share surrendered or withheld shall be equal to the Fair Market Value of the Stock on the date the Option is exercised. 
 No Stock shall be issued pursuant to an exercise of an Option until full payment has been made therefor. A Participant shall not have rights to dividends or any other rights of a shareholder with respect
to any Stock subject to an Option unless and until the Participant has given written notice of exercise, has paid in full for such shares, has given, if requested, the representation described in Section 14(a) and such shares have been issued
to the Participant. 
 (v) Subject to Section 5(b)(iv), all Stock Options shall be exercisable, during the
Participant’s lifetime, only by the Participant or, subject to Sections 8(b)(iii) and 8(c) and the terms of the applicable Award Agreement, by the Participant’s authorized legal representative if the Participant is unable to exercise an
Option as a result of the Participant’s disability. 
 (vi) If a Participant’s employment by the
Company or any Subsidiary or Affiliate terminates by reason of death, then any Award of Stock Options held by such Participant may thereafter be exercised, to the extent such Option was exercisable at the time of death or would have become
exercisable within one year from the time of death had the Participant continued to fulfill all conditions of the Option during such period (or on such accelerated basis as the Committee may determine at or after grant), by the estate of the
Participant (acting through its fiduciary) for a period of one year (or such other period as the Committee may specify at or after grant) from the date of the Participant’s death; provided that in each case (i) the determination of whether
any such Award would have vested or become exercisable within one year from the Participant’s death shall be made without regard to whether the Participant could have been eligible for a Qualified Retirement during such one year period, and
(ii) if the vesting of such Award is conditioned on or subject to the achievement of specified Performance Goals, such Performance Goals are achieved prior to the earlier of the expiration of such one year period or the Expiration Date of the
Award. The balance of the Award, if any, shall be forfeited. 
 (vii) Unless otherwise determined by the
Committee at or after the time of granting any Stock Option, if a Participant’s employment by the Company or any Subsidiary or Affiliate terminates for any reason other than death, all Stock Options held by such Participant shall thereupon
immediately terminate, except that, as to any Option Installment otherwise exercisable at the time of termination, if the Participant’s employment terminates for any reason other than death or Cause, any such Stock Option may be exercised at
any time on or before the earlier of sixty (60) days after the date of such termination or the applicable Expiration Date. 

(c) Incentive Stock Options. Notwithstanding Section 4, only employees of the Company or a Subsidiary shall be eligible to
receive Incentive Stock Options. Notwithstanding Section 5(b)(v) and (vi), an Incentive Stock Option shall be exercisable by (i) a Participant’s authorized legal representative (if the Participant is unable to exercise the Incentive
Stock Option as a result of the Participant’s disability) only if, and to the extent, permitted by Section 422 of the Code and Section 16 of the Exchange Act and the rules and regulations promulgated thereunder and (ii) by the
Participant’s estate, in the case of death, or authorized legal representative, in the case of disability, no later than 10 years from the date the Incentive Stock 

  
 11 

 
Option was granted (or 5 years in the case of a 10% Participant) (in addition to any other restrictions or limitations which may apply). Anything in the Plan to the contrary notwithstanding, no
term or provision of the Plan relating to Incentive Stock Options shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be exercised, so as to disqualify the Plan under Section 422 of the Code,
or, without the consent of the Participant(s) affected, to disqualify any Incentive Stock Option under such Section 422 or any successor Section thereto. 
 (d) Buyout Provisions. The Company, based on such terms and conditions as may be approved by the Committee in its discretion, at any time may buy out, for a payment in cash, any Option previously
granted, based on such terms and conditions as the Committee shall establish and agree upon with the Participant, provided that no such transaction involving a Section 16 Participant shall be structured or effected in a manner that would
violate, or result in any liability on the part of the Participant under, Section 16 of the Exchange Act or the rules and regulations promulgated thereunder. 
 SECTION 9. Stock Appreciation Rights. 
 (a) Grant. Stock Appreciation
Rights may be granted alone, in addition to or in tandem with other Awards granted under the Plan or cash awards made outside of the Plan. In the case of an Award of Stock Appreciation Rights relating to an Award of Non-Qualified Stock Options, such
rights may be granted either at or after the time of the grant of the related Non-Qualified Stock Options. In the case of Incentive Stock Options, such rights may be granted in tandem with Incentive Stock Options only at the time of the grant of
such Incentive Stock Options and exercised only when the Fair Market Value of the Stock subject to the Option exceeds the option price of the Option. 
 Stock Appreciation Rights issued in tandem with Stock Options (“Tandem SARs”) shall terminate and no longer be exercisable upon the termination or exercise of the related Stock Option, subject
to such provisions as the Committee may specify at grant if a Stock Appreciation Right is granted with respect to less than the full number of shares of Stock subject to the related Stock Option. 

All Stock Appreciation Rights granted hereunder shall be exercised, subject to Section 9(b), in accordance with the procedures
established by the Committee for such purpose. Upon such exercise, the Participant shall be entitled to receive an amount determined in the manner prescribed in Section 9(b)(ii) and the applicable Award Agreement. 

(b) Terms and Conditions. In addition to the terms and conditions set forth in Section 5, Stock Appreciation Rights granted
under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall deem desirable: 

(i) Tandem SARs shall be exercisable only at such time or times and to the extent that the Stock Options to which they
relate shall be exercisable in accordance with the provisions of Section 8 and this Section 9, and Stock Appreciation Rights granted separately (“Freestanding SARs”) shall be exercisable as the Committee shall determine.

 (ii) Upon the exercise of a Stock Appreciation Right, a Participant shall be entitled to receive an amount in
cash or shares of Stock, as determined by the Committee at the time of grant, equal in value to the excess of the Fair Market Value of one share of Stock on the date of exercise of the Stock Appreciation Right over (A) the option price per
share specified in the related Stock Option in the case of Tandem SARs, which price shall be fixed no later than the date of grant of the Tandem SARs, or (B) the price per share specified in the related Award Agreement in the case of
Freestanding SARs, which price shall be fixed at the date of grant and shall be not less than the Fair Market Value of the Stock on the date of grant, multiplied by the number of shares of Stock in respect of which the Stock Appreciation Right shall
have been exercised. The Committee, in its sole discretion, shall have the right to determine the form of payment (i.e. cash, Stock or any combination thereof) and to approve any election by the Participant to receive cash, in whole or in part, upon
exercise of the Stock Appreciation Right. When payment is to be made in Stock, the number of shares of Stock to be paid shall be calculated on the basis of the Fair Market Value of the Stock on the date of exercise. Notwithstanding the foregoing,
the Committee may unilaterally limit the appreciation in value of any Stock Appreciation Right at any time prior to exercise. 
 (iii) Upon the exercise of a Tandem SAR, the related Stock Option must also be exercised at the same time. 

  
 12 

 (iv) In its sole discretion, the Committee may grant “Limited”
Stock Appreciation Rights under this Section 9; that is, Freestanding SARs that become exercisable only in the event of a Change in Control, subject to such terms and conditions as the Committee may specify at grant. Such Limited Stock
Appreciation Rights shall be settled solely in cash. 
 (v) Stock Appreciation Rights shall not be transferable
by the Participant other than by will or by the laws of descent and distribution, and all Stock Appreciation Rights shall be exercisable, during the Participant’s lifetime, only by the Participant or, subject to Section 9(b)(vi), by the
Participant’s authorized legal representative if the Participant is unable to exercise a Stock Appreciation Right as a result of the Participant’s disability. 

(vi) Unless varied by the Committee, Stock Appreciation Rights shall be subject to the terms and conditions specified for
Stock Options in Sections 8(b)(vi) and (vii), and 8(d), except that the terms and conditions applicable to any Stock Appreciation Right held by a Section 16 Participant shall not be varied in a manner that would cause the exercise or
cancellation of such Stock Appreciation Right to fail to qualify for any applicable exemption from Section 16(b) of the Exchange Act provided by Rule 16b-3 thereunder. 
 SECTION 10. Qualified Retirement. 
 If a Participant’s employment with
the Company (or any of its Subsidiaries or Affiliates) terminates due to a Qualified Retirement, the following provisions shall apply (subject in all cases to Section 10(d) hereof): 

(a) With respect to Stock Options and Stock Appreciation Rights, if and to the extent that any Option Installment or Stock Appreciation
Right is vested and is exercisable as of the Qualified Retirement Date, such Option Installment and Stock Appreciation Rights shall not terminate upon the termination of the Participant’s employment, but may be exercised by the Participant, in
whole or in part, at any time between the Qualified Retirement Date and the Expiration Date applicable thereto. As to any Option Installment or Stock Appreciation Right which vests upon a Qualified Retirement in accordance with either the
Subsections (b) or (c) below, such Stock Options or Stock Appreciation Rights shall be exercisable from and after such vesting date through and including the applicable Expiration Date. 

(b) With respect to all unvested Time-Based Awards held by the Participant on his or her Qualified Retirement Date, if and to the extent
that any Award Installment is not vested as of such Qualified Retirement Date, such Award Installment (A) shall remain in effect with respect to fifty percent (50%) of the Award Installment, which shall then vest and be free of applicable
restrictions on such Qualified Retirement Date, except that as to any Participant who is a “specified employee” as defined in Section 409A of the Code, any distribution or exercise of rights with respect to such Awards may not occur
until the date that is six (6) months plus one (1) day after Participant’s Qualified Retirement Date; and (B) shall terminate, effective as of the Qualified Retirement Date, with respect to the remaining fifty percent
(50%) of such Award Installment. 
 (c) With respect to all unvested Performance-Based Awards held by the Participant on
his or her Qualified Retirement Date, if and to the extent that any Award Installment is not vested as of the Qualified Retirement Date, such Award Installment (A) shall remain in effect with respect to fifty percent (50%) of the Award
Installment, which shall vest upon the achievement of the related Performance Goals (unless such Performance Goals are not achieved prior to the Expiration Date applicable to such Award Installment, in which event the Award Installment will
terminate, and such Award Installment will be forfeited, as of such Expiration Date), and (B) shall terminate, effective as of the Qualified Retirement Date, with respect to the remaining fifty percent (50%) of such Award Installment;
provided that, with respect to any member of the Company’s Senior Management Group, and any other Participant specified in writing by the Company’s Chief Executive Officer and Chief Human Resource Officer, if such individual has given the
Company written notice of his or her intended retirement date at least twelve months but not more than fourteen months prior to such date, and if such individual in fact terminates on such intended retirement date (or such later date as the Company
and such individual may agree, subject to such conditions as the Company may deem appropriate), upon any Qualified Retirement of such individual, no portion of any Performance-Based Awards held by such Participant on his or her Qualified Retirement
Date will terminate on such date, but such Awards will remain in effect in full and shall vest as of the date on which, and to the extent that, the applicable Performance Goals have been achieved (unless such Performance Goals are not achieved prior
to the Expiration Date applicable to such Award, in which event the Award will terminate and be forfeited, as of such Expiration Date). 

  
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 (d) If the Committee determines that the Participant is or has engaged in any Disqualifying
Activity, then: 
 (i) to the extent that a Stock Option or Stock Appreciation Right has vested and is
exercisable as of the date of such determination by the Committee: 
 (A) if the Disqualification Date for any
Disqualifying Activity occurred on or prior the date of such employee’s termination from the Company or any Subsidiary or Affiliate, or the Disqualification Date occurred after such termination and such activity is covered by any of clauses
(ii), (iii) (with respect to a material violation of any agreement between the Participant and the Company) or (iv) of the definition of Disqualifying Activity above, all such Stock Options and Stock Appreciation Rights shall terminate,
and all related shares of Stock shall be forfeited, as of such date, and 
 (B) if any such activity covered by
clause (i) of the definition of Disqualifying Activity and the related Disqualification Date occurs after the termination of the Participant’s employment, the Participant shall have the right to exercise such Option or Stock Appreciation
Right on or before the earlier of the Expiration Date applicable thereto or the date that is sixty (60) days after the date upon which the Company sends written notice to such Participant of the Committee’s determination hereunder; and

 (ii) to the extent that any Award Installment held by such Participant has not vested as of the date of such
determination by the Committee, the Award Installment shall terminate, and all related shares of Stock, Units, Stock Options or Stock Appreciation Rights shall be forfeited, as of such date. 
 Any determination by the Committee hereunder, which may act upon the recommendation of the Chief Executive Officer or other senior officer of the Company, that the Participant is or has engaged in any
Disqualifying Activity, and as to the Disqualification Date, shall be final and conclusive. 
 SECTION 11. Change In Control Provision.

 (a) Unless otherwise provided in the applicable Award Agreement, notwithstanding any other provision of this Plan to the
contrary, and subject to the provisions of subsection (b) below, upon a Change in Control of the Company, the following shall control: 
 (i) In the event that the Change in Control does not result in a liquidation or cancellation of or other change to the Company’s Stock, each Award then outstanding shall remain in effect after the
Change in Control on the terms and conditions set forth in the Plan and the applicable Award Agreement. 
 (ii)
In the event that the Change in Control results in a cash payment for each outstanding share of the Company’s Stock (a “Cash Payment”), then to the extent of such Cash Payment, as of the date of the Change in Control, each Award then
outstanding shall be fully vested, and any applicable restrictions, limitations or Performance Goals applicable to such Award shall terminate, and such Award shall be cashed out on the basis of such Cash Payment and paid to the Participant.

 (iii) In the event that a Change in Control results in the conversion or exchange of another publicly held
equity security for the Company’s Stock in a corporate transaction described in the regulations under Section 409A of the Code, such that the Company’s Stock is not the surviving security, then to the extent of such conversion or
exchange, as of the date of the Change in Control: 
 (A) each outstanding Time-Based Award shall be converted
into a new equity award based on the surviving security and the conversion or exchange rate applicable to shares of Stock in the underlying transaction, which new Award shall be equal in value to, in similar form as, and with equivalent terms,
conditions and restrictions, including vesting and forfeiture provisions, as that portion of the Award being so converted into the new equity award; and 
 (B) each outstanding Performance-Based Award shall be fully vested, and any applicable restrictions, limitations or Performance Goals applicable to such Award shall terminate, and the value thereof
(determined in accordance with clause (iv) immediately below) shall be cashed out and paid to the Participant on the basis of the Change in Control Price. 

  
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 (iv) If the circumstances described in subsection (ii) or
(iii) applies to Performance-Based Awards, the Committee shall value those Awards based on the number of shares of Stock or Units, or (if applicable) the Target number of such shares or Units, that are the subject of such Award and the Cash
Payment or the Change in Control Price, as applicable. 
 (b) Notwithstanding the provisions of subsection (a) above, if on
the date of or during the twenty-four (24)-month period following a Change in Control, either (a) the Company (or the surviving entity) terminates the Participant’s employment other than for Cause, or (b) the Participant terminates
his or her employment for Good Reason (as stated in a written notice to the Company (or the surviving entity), which must be provided within 30 days after the occurrence of the event(s) constituting such Good Reason, and must set forth such Good
Reason in reasonable detail and the expected date of termination, which shall be not more than 30 days after the date of such notice), and in either case, such termination qualifies as a “separation from service” under Section 409A of
the Code, then upon the occurrence of such termination: 
 (i) With respect to any Awards of Options or Stock
Appreciation Rights that were outstanding as of the date of such Change in Control, were not cashed out under section (a) above, and have not yet vested or been forfeited according to their respective terms as of the termination date, such
Awards shall be fully vested and exercisable and shall remain exercisable until earlier of the Expiration Date of such Option or Stock Appreciation Right or the date that is sixty (60) days after such termination of employment; and 

(ii) With respect to any Awards of Restricted Stock or Restricted Stock Units that were outstanding as of the date of such
Change in Control, were not cashed out under subsection (a) above, and have not yet vested or been forfeited according to their respective terms as of the termination date, such Awards shall be fully vested and free of all restrictions and
limitations, and, with respect to Restricted Stock Units, shall be settled as promptly as is practicable in accordance with the Plan and the applicable Award Agreement. 
 To the extent any such Award constitutes deferred compensation under Section 409A of the Code, the required distribution under this subsection (b) to any “specified employee” as
defined under Section 409A of the Code may not occur until six months and one day after such termination of employment. 
 SECTION 12.
Amendments and Termination. 
 (a) The Board, at any time, in its sole discretion, may amend, supplement, alter or
discontinue the Plan, but, except as otherwise expressly provided in the Plan, no such amendment, supplement, alteration or discontinuation shall be made which would impair the rights of a Participant under an Award theretofore granted, without the
Participant’s consent. The Company shall submit to the shareholders of the Company for their approval any amendments to the Plan which are required to be approved by shareholder by law or the rules and regulations of any governmental authority
or any stock exchange upon which the Stock is then traded. 
 (b) Subject to changes in law or other legal requirements that
would permit otherwise, the Plan may not be amended without the approval of the shareholders, to (i) increase the total number of shares of Stock that may be issued under the Plan or to any Participant during any calendar year (except for
adjustments pursuant to Section 3(c)), (ii) permit the granting of Stock Options or Stock Appreciation Rights with an exercise price lower than those specified in Section 8(b)(i) and 9(b)(ii) or permit the Committee to reduce the
exercise price of previously issued and outstanding Stock Options or Stock Appreciation Rights, (iii) modify the Plan’s eligibility requirements, (iv) change the Performance Goals as defined in Section 1(b), or (v) increase
the total number of shares of Stock that may be available for Awards of Incentive Stock Options under Section 3(a) (except for adjustments pursuant to Section 3(c)). Further, no Performance-Based Award may be amended if such amendment
would adversely affect the Award’s qualification as qualified performance-based compensation under Section 162(m) of the Code. 
 (c) The Committee, at any time, in its sole discretion, may amend the terms of any outstanding Award, but, except as otherwise expressly provided by the Plan, no such amendment shall be made which would:
(i) impair the rights of a Participant under an Award theretofore granted, without the Participant’s consent; (ii) in the case of any Award of a Stock Option or Stock Appreciation Right, reduce the exercise price relating to such
Award or, in any other case, reduce the purchase price (if any) of the Stock which is subject to an outstanding Award; (iii) make the applicable exemptions provided by Rule 16b-3 under the Exchange Act unavailable to any Section 16
Participant holding an Award without the Participant’s 

  
 15 

 
consent; or (iv) with respect to any Award which is subject to the restrictions on deferred compensation under Code Section 409A, result in a modification of the timing or form of
payment of such compensation pursuant to such Award except to the extent permitted by Code Section 409A and the regulations promulgated thereunder. 
 (d) Subject to the above provisions, the Board shall have all necessary authority to amend the Plan to take into account changes in applicable securities and tax laws and accounting rules, as well as
other developments. 
 SECTION 13. Unfunded Status of Plan. 
 The Plan is intended to constitute an “unfunded” plan for incentive compensation. With respect to any payments not yet made to a Participant by the Company, nothing contained herein shall give
any such Participant any rights that are greater than those of a general creditor of the Company. 
 SECTION 14. General Provisions.

 (a) The Committee may require each Participant acquiring Stock pursuant to an Award under the Plan to
represent to and agree with the Company in writing that the Participant is acquiring the Stock without a view to distribution thereof. Any certificates for such shares may include any legend that the Committee deems appropriate to reflect any
restrictions on transfer. 
 All shares of Stock or other securities issued under the Plan shall be subject to
such stop-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is then listed, and any
applicable federal or state securities laws, and the Committee may cause a legend or legends to be placed on any certificates for such shares to make appropriate reference to such restrictions or to cause such restrictions to be noted in the records
of the Company’s stock transfer agent and any applicable book entry system. 
 (b) Nothing contained in this
Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to shareholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases.

 (c) Neither the adoption of the Plan, nor its operation, nor any document describing, implementing or
referring to the Plan, or any part thereof, shall confer upon any Participant under the Plan any right to continue in the employ, or as a director, of the Company or any Subsidiary or Affiliate, or shall in any way affect the right and power of the
Company or any Subsidiary or Affiliate to terminate the employment, or service as a director, or change the job title, duties, authority, position or compensation of any Participant in the Plan at any time with or without assigning a reason
therefor, to the same extent as the Company or any Subsidiary or Affiliate might have done if the Plan had not been adopted. 
 (d) For purposes of this Plan, a transfer of a Participant between the Company and any of its Subsidiaries or Affiliates, or between such Subsidiaries or Affiliates, shall not be deemed a termination of
employment or adversely affect or enlarge the rights of any Participant under this Plan or with respect to any Award. 
 (e) No later than the date as of which an amount relating to any Award under the Plan first becomes taxable, the Participant shall pay to the Company, or make arrangements satisfactory to the Committee
regarding the payment of, at least the minimum federal, state and local taxes and other items of any kind required by law to be withheld with respect to such amount. Subject to the following sentence and such rules and procedures as the Committee
may determine from time to time, unless otherwise determined by the Committee, minimum tax withholding obligations may be settled with Stock, including, without limitation, unrestricted Stock previously owned by the Participant or that would
otherwise be distributed or purchased in connection with the Award that gives rise to the withholding requirement. Notwithstanding the foregoing, any election by a Section 16 Participant to settle such tax withholding obligation with Stock that
is previously owned by the Participant or part of such Award shall be subject to prior approval by the Committee, in its sole discretion. The obligations of the Company under the Plan shall be conditional on such payment or arrangements and the
Company and its Subsidiaries and Affiliates to the extent permitted by law shall have the right to deduct any such taxes from any payment of any kind 

  
 16 

 
otherwise due to the Participant. The Company may withhold or collect tax withholdings in excess of the minimum requirements at the Participant’s request, subject to such rules and
procedures as the Committee or the Company shall deem appropriate. 
 (f) The Plan, all Awards made and all
actions taken thereunder and any agreements relating thereto, shall be governed by and construed in accordance with the laws of the State of Ohio. 
 (g) In the event any Award is transferred or assigned pursuant to a court order, such transfer or assignment shall be without liability to the Company and the Company shall have the right to offset
against such Award any expenses (including attorneys’ fees) incurred by the Company in connection with such transfer or assignment. 
 (h) (i) If (A) a Performance-Based Award granted to any executive officer shall vest hereunder on the basis of the achievement of certain financial or operating results as specified by the Committee
(which includes, for purposes hereof, all of the Performance Goals that are available to the Committee under this Plan), (B) those financial or operating results were incorrect and were subsequently the subject of a restatement by the Company
within three (3) years after the date of vesting, and (C) the vesting event would not have occurred as to some or all of such shares if the actual financial or operating results had been known as of the date of vesting, then the Company
shall have the right of recoupment from the executive officer who received such shares of Stock upon such vesting or who elected to defer such shares at vesting. The Company will have this right of recoupment whether or not the executive officer in
question was at fault or responsible in any way in causing such restatement. In such circumstances, the Company, in its sole discretion, will have the right to adjust and amend the terms of all outstanding Stock Options as may be appropriate, and to
recover from each executive officer, and each such executive officer will refund to the Company promptly on demand, at the Company’s discretion, either (X) the number of shares of Stock that vested (or that were subject to Stock Options
that vested and were thereafter exercised), were distributed or were deferred (as applicable) upon or after such vesting based on the incorrect operating or financial results, (Y) the dollar equivalent of such number of Shares as of the date of
such vesting, without interest, or (Z) the value that was paid to or earned by the Participant, as applicable, at the time of vesting or upon the exercise of rights pursuant to any such vested Award, without interest. Such recovery, at the
Committee’s discretion, may be made by lump sum payment, installment payments, credits against unvested Awards made hereunder, credits against future bonus or other incentive payments or awards, or other appropriate mechanism. 

(ii) If any Participant engaged in fraud or other misconduct (as determined by the Committee or the Board, in their
respective sole discretion) resulting, in whole or in part, in a restatement of the financial or operating results used to determine the vesting of a Performance-Based Award hereunder, the Company will have the right to recoup from such Participant,
and the Participant will transfer or pay to the Company promptly upon demand, in the Company’s discretion, either (A) the number of shares of Stock that vested (or that were subject to Stock Options that vested and were thereafter
exercised), were distributed or were deferred (as applicable) upon or after such vesting based on the incorrect operating or financial results, (B) the dollar equivalent of such number of shares determined as of the date of such vesting, or
(C) the value that was paid to or earned by the Participant, as applicable, at the time of vesting or upon the exercise of rights pursuant to any such vested Award, and in the case of (B) and (C) plus interest at the rate of eight
percent (8%) per annum or, if lower, the highest rate permitted by law, calculated from such vesting date. The Company further shall have the right to terminate and cancel any and all Awards previously made to such Participant at any time
hereunder that are then unvested or, if applicable, that have vested but have not then been exercised, and to recover from such Participant the Company’s costs and expenses incurred in connection with recovering such Shares or funds from
Participant and enforcing its rights under this subsection (ii), including, without limitation, reasonable attorneys’ fees and court costs. There shall be no time limit on the Company’s right to recover such amounts under this subsection
(ii), except as otherwise provided by applicable law. 
 (iii) The rights contained in this subsection
(h) shall be in addition to, and shall not limit, any other rights or remedies that the Company may have under this Plan or under any applicable law or regulation. 

  
 17 

 (i) In the event that an Award granted pursuant to the Plan shall constitute
deferred compensation subject to Section 409A of the Code, the terms of the Plan as they apply to such Award shall be interpreted to comply with the requirements of Section 409A of the Code. 

SECTION 15. Shareholder Approval; Effective Date of Plan. 
 The Plan was adopted by the Board on January 29, 2010 and is subject to approval by the holders of the Company’s outstanding Stock, in accordance with applicable law. The Plan will become
effective on the date of such approval. 
 SECTION 16. Term of Plan. 
 No Award shall be granted pursuant to the Plan on or after January 31, 2020, but Awards granted prior to such date may extend beyond that date, subject to the terms hereof and the applicable Award
Agreement. 

  
 18

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