Document:

Second Amendment to Credit Agreement

 Exhibit 10.2 
 Execution Version 
 SECOND AMENDMENT TO CREDIT AGREEMENT 

THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of December 3, 2010 by and among EXCEL TRUST,
L.P. (the “Borrower”), EXCEL TRUST, INC. (the “Parent”), each of the Lenders party hereto (each a “Consenting Lender”), and WELLS FARGO BANK, as Administrative Agent (the “Administrative Agent”). 

WHEREAS, the Borrower, the Parent, the Lenders, the Administrative Agent and certain other parties have entered into that certain Credit
Agreement dated as of July 8, 2010, as amended by that certain First Amendment to Credit Agreement dated as of September 8, 2010 (as may be further amended, supplemented, restated or otherwise modified from time to time, and as in
effect immediately prior to the date hereof, the “Credit Agreement”); and 
 WHEREAS, the Borrower, the Parent, the
Lenders, and the Administrative Agent desire to amend the Credit Agreement on the terms and conditions contained herein. 
 NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby agree as follows: 
 Section 1. Specific Amendments to Credit Agreement. The parties hereto agree that the Credit Agreement is amended as follows: 

(a) The Credit Agreement is hereby amended by inserting the following new definitions into Section 1.1: 

“Follow-On Offering” means either one or more Equity Issuances of the Parent’s Equity Interests
(either common stock or Preferred Stock) that, in the aggregate, result in gross proceeds of not less than (a) if the Borrower or one of its Subsidiaries acquires the Gilroy Crossing shopping center located in Gilroy, California (“Gilroy
Crossing”) by December 31, 2011, $125,000,000 or (b) if the Borrower or one of its Subsidiaries does not acquire Gilroy Crossing by December 31, 2011, $75,000,000. 

“Follow-On Offering Event” means the earlier to occur (A) the Follow-On Offering and
(B) December 31, 2011. 
 “Second Amendment Date” means December 3, 2010.

 (b) The Credit Agreement is hereby further amended by restating the definitions of “Applicable Margin”
“Capitalization Rate” and “Maximum Loan Availability” set forth in Section 1.1 in their entireties as follows: 
 “ ‘Applicable Margin’ means the percentage rate set forth below corresponding to the ratio of Total Liabilities to Total Asset Value as determined in accordance with
Section 10.1.(b): 
  

							
	 Level
	 	 Ratio of Total
 Liabilities to Total
 Asset
Value
	  	 Applicable Margin

for LIBOR Loans
 and Base Rate Loans
	 
	 1
	 	Less than or equal to 0.40 to 1.00	  	 	2.75	% 
	 2
	 	Greater than 0.40 to 1.00 but less than or equal to 0.450 to 1.00	  	 	3.25	% 
	 3
	 	Greater than 0.450 to 1.00 but less than or equal to 0.50 to 1.00	  	 	3.50	% 
	 4
	 	Greater than 0.50 to 1.00 but less than or equal to 0.550 to 1.00	  	 	3.75	% 
	 5
	 	Greater than 0.550 to 1.00	  	 	4.00	% 

 The Applicable Margin for Loans shall be determined by the Administrative Agent from time to
time, based on the range which the ratio of Total Liabilities to Total Asset Value as set forth in the Compliance Certificate most recently delivered by the Borrower pursuant to Section 9.3. then falls in the table set forth above (each a
“Level”). Any adjustment to the Applicable Margin shall be effective as of the first day of the calendar month immediately following the month during which the Borrower delivers to the Administrative Agent the applicable Compliance
Certificate pursuant to Section 9.3. If the Borrower fails to deliver a Compliance Certificate pursuant to Section 9.3., the Applicable Margin shall equal the percentage corresponding to Level 5 until the first day of the calendar month
immediately following the month that the required Compliance Certificate is delivered. Notwithstanding the foregoing, for the period from the Effective Date through but excluding the date on which the Administrative Agent first determines the
Applicable Margin for Loans as set forth above, the Applicable Margin shall be determined based on Level 1. Thereafter, such Applicable Margin shall be adjusted from time to time as set forth in this definition. The provisions of this
definition shall be subject to Section 2.4.(c).” 
 “ ‘Capitalization Rate’
means: (a) 8.25% until the Follow-On Offering Event; (b) 8.75% on and at all times thereafter; or (c) such higher percentage to which the Capitalization Rate may be increased pursuant to Section 2.12.” 

“ ‘Maximum Loan Availability’ means, at any time, the least of: 

(a) the aggregate amount of the Revolving Commitments at such time; 

(b) (x) until the Follow-On Offering Event, 60% of the Borrowing Base Value of all Borrowing Base Properties at such
time, and (y) on, and at all times thereafter, 55% of the Borrowing Base Value of all Borrowing Base Properties at such time; and 

  
 - 2 -

 (c) an amount equal to (i) the Borrowing Base NOI of all Borrowing
Base Properties at such time (provided, that, to the extent the aggregate amount of rents attributable to leases of Borrowing Base Properties of a single tenant or a single group of affiliated tenants that are included in the calculation of
Borrowing Base NOI would exceed 10% of Borrowing Base NOI, such excess shall be excluded for purposes of this clause (i)) divided by (ii)(A) the Applicable Mortgage Constant times (B) 1.50.” 

(c) The Credit Agreement is hereby further amended by deleting the defined term “Liquidity Trigger Event” in its entirety from
Section 1.1. 
 (d) The Credit Agreement is hereby further amended by deleting the reference to Section 6.1(a)(xiii)
found in Section 4.2(a), and replacing it with a reference to Section 6.1(a)(xii). 
 (e) The Credit Agreement is
hereby further amended by deleting Section 9.4(v) in its entirety and replacing it with the following: 
 “(v)
[Intentionally Deleted]; and” 
 (f) The Credit Agreement is hereby further amended by deleting Sections 10.1(b),
(c) and (e), respectively, in their entireties and replacing them with the following: 
 “(b) Ratio
of Total Liabilities to Total Asset Value. The Parent shall not permit the ratio of (i) Total Liabilities to (ii) Total Asset Value to exceed: (x) 0.60 to 1.00 at any time until the Follow-On Offering Event; and (y) 0.550 to
1.00 on, and at any time thereafter.” 
 “(c) Ratio of Adjusted EBITDA to Fixed Charges. The
Parent shall not permit the ratio of (x) Adjusted EBITDA for any fiscal quarter to (y) Fixed Charges of the Parent and its Subsidiaries determined on a consolidated basis for such fiscal quarter, to be less than: (x) 1.50 to 1.00 as
of the end of each fiscal quarter ending prior to December 31, 2011; and (y) 1.750 to 1.00 as of the fiscal quarter ending December 31, 2011, and as of each fiscal quarter ending thereafter.” 

“(e) Ratio of Unsecured Indebtedness to Unencumbered Asset Value. The Parent shall not permit the ratio of
(i) Unsecured Indebtedness of the Parent and its Subsidiaries determined on a consolidated basis to (ii) Unencumbered Asset Value to be greater than: (x) 0.60 to 1.00 until the Follow-On Offering Event; and (y) 0.550 to 1.00 on,
and at any time thereafter.” 

  
 - 3 -

 (g) The Credit Agreement is hereby further amended by deleting the last sentence of
Section 10.1(g) in its entirety and substituting in its place the following: 
 “In addition to the foregoing
limitations, the aggregate value of all of the items subject to the limitations in the preceding clauses (ii) through (vii) shall not exceed: (x) 20% of Total Asset Value until the Follow-On Offering Event; and (y) 25.0% of Total
Asset Value on and at all times thereafter. For purposes of this subsection, if a Development Property is owned by an Unconsolidated Affiliate of the Parent, then the product of (A) the Parent’s Ownership Share in such Unconsolidated
Affiliate and (B) the amount of the Total Budgeted Costs for such Development Property shall be used in calculating such investment limitation. Notwithstanding anything to the contrary in this Section 10.1(g), until the Follow-On Offering
Event, the Parent shall not, and shall not permit any Loan Party or other Subsidiary to, make any Investments with respect to any Property that becomes a Development Property after the Second Amendment Date (whether with respect to Total Budgeted
Costs for Development Properties or otherwise), other than the Rockwall shopping center (Phase II) located in Rockwall, Texas, the Red Rock Commons shopping center located in St. George, Utah and the Dothan shopping mall located in Dothan,
Alabama.” 
 (g) The Credit Agreement is hereby further amended by deleting Section 10.1(h) in its entirety and
substituting in its place the following: 
 “(h) Floating Rate Indebtedness. The Parent shall not,
and shall not permit any Subsidiary to, incur, assume or suffer to exist Floating Rate Indebtedness (excluding Loans outstanding hereunder but including the Parent’s Ownership Share of the Floating Rate Indebtedness of its Unconsolidated
Affiliates) in an aggregate outstanding principal amount in excess of 35.0% of the aggregate amount of Indebtedness of the Parent and its Subsidiaries determined on a consolidated basis and the Parent’s Ownership Share of the Indebtedness of
its Unconsolidated Affiliates at any time.” 
 Section 2. Limited Waiver. Subject to the satisfaction of the
conditions set forth in Section 3 hereof, the Requisite Lenders hereby waive the Events of Default arising from the Borrower’s failure to timely comply with the requirements of Sections 4.2(a) and 8.14(a) of the Credit Agreement. The
Borrower acknowledges and agrees that the limited waiver contained in the foregoing sentence shall not be deemed to be or constitute a consent to any future action or inaction on the part of the Borrower, shall not waive or amend (or be deemed to be
or constitute a waiver of or amendment to) any other covenant, term or provision in the Credit Agreement or any other Loan Document, or shall not hinder, restrict or otherwise modify the rights and remedies of the Administrative Agent or the Lenders
following the occurrence of any Default or Event of Default (whether now existing or hereafter arising) under the Credit Agreement or any other Loan Document. 
 Section 3. Conditions Precedent. The effectiveness of this Amendment is subject to receipt by the Administrative Agent of each of the following, each in form and substance satisfactory to the
Administrative Agent: 
 (a) A counterpart of this Amendment duly executed by the Borrower, the Parent and the Requisite
Lenders; 
 (b) A Guarantor Acknowledgement substantially in the form of Exhibit A attached hereto, executed by each
Guarantor; 
 (c) Evidence that an amendment fee in the amount of 0.20% of each Consenting Lender’s Commitment has been
paid to the Administrative Agent for distribution to those Consenting Lenders for whom the Administrative Agent (or its counsel) shall have received an executed signature page to this Amendment from such Consenting Lender (without condition or
restriction) on or before 5:00 p.m. EDT on December 1, 2010; 

  
 - 4 -

 (d) Evidence that all fees and expenses payable to the Administrative Agent and/or Wells
Fargo Securities, LLC in connection with this Amendment have been paid; 
 (e) An Accession Agreement executed by each Property
Owner listed on Exhibit B attached hereto and all of the items that would have been required to be delivered to the Administrative Agent under Section 6.1(a)(iv) through (a)(viii) and (a)(xii) of the Credit Agreement had such Property Owner
been a Loan Party on the Effective Date; and 
 (f) Such other documents, instruments and agreements as the Administrative Agent
may reasonably request. 
 Section 4. Representations. Each of the Parent and the Borrower represents and warrants
to the Administrative Agent and the Lenders that: 
 (a) Authorization. Each of the Parent and the Borrower, as
applicable, has the right and power, and has taken all necessary action to authorize it, to execute and deliver this Amendment and to perform its obligations hereunder and under the Credit Agreement, as amended by this Amendment, in accordance with
their respective terms. This Amendment has been duly executed and delivered by a duly authorized officer of the Borrower and the Parent, as applicable, and each of this Amendment and the Credit Agreement, as amended by this Amendment, is a legal,
valid and binding obligation of the Borrower and the Parent, as applicable, enforceable against such Person in accordance with its respective terms except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar
laws affecting creditors rights generally and (ii) the availability of equitable remedies for the enforcement of certain obligations (other than the payment of principal) contained herein or therein and as may be limited by equitable principles
generally. 
 (b) Compliance with Laws, etc. The execution and delivery by the Borrower and the Parent, as applicable, of
this Amendment and the performance by the Borrower and the Parent, as applicable, of this Amendment and the Credit Agreement, as amended by this Amendment, in accordance with their respective terms, do not and will not, by the passage of time, the
giving of notice or otherwise: (i) require any Government Approvals or violate any Applicable Laws (including all Environmental Laws) relating to the Parent, the Borrower or any other Loan Party; (ii) conflict with, result in a breach of
or constitute a default under the organizational documents of the Parent, the Borrower or any other Loan Party, or any indenture, agreement or other instrument to which the Parent, the Borrower or any other Loan Party is a party or by which it or
any of its respective properties may be bound; or (iii) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by the Parent, the Borrower or any other Loan Party.

 (c) No Default. No Default or Event of Default has occurred and is continuing as of the date hereof (other than as
described in Section 2 herein) nor will exist immediately after giving effect to this Amendment. 
 Section 5.
Reaffirmation of Representations by Borrower and Parent. Each of the Parent and the Borrower hereby repeats and reaffirms all representations and warranties made by the Parent and the Borrower to the Administrative Agent and the Lenders in
the Credit Agreement and the other Loan Documents to which it is a party on and as of the date hereof with the same force and effect as if such representations and warranties were set forth in this Amendment in full. 

  
 - 5 -

 Section 6. Certain References. Each reference to the Credit Agreement in any of
the Loan Documents shall be deemed to be a reference to the Credit Agreement as amended by this Amendment. 
 Section 7.
Expenses. The Borrower shall reimburse the Administrative Agent upon demand for all costs and expenses (including reasonable attorneys’ fees) incurred by the Administrative Agent in connection with the preparation, negotiation and
execution of this Amendment and the other agreements and documents executed and delivered in connection herewith. 

Section 8. Benefits. This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors and assigns. 
 Section 9. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE. 
 Section 10. Effect. Except as expressly herein amended, the terms and conditions of the Credit Agreement and the other Loan Documents remain in full force and effect. The amendments contained
herein shall be deemed to have prospective application only, unless otherwise specifically stated herein. 
 Section 11.
Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding upon all parties, their successors and assigns. 

Section 12. Loan Documents. This Amendment and the executed Guarantor Acknowledgement substantially in the form attached
hereto as Exhibit A shall be deemed to be “Loan Documents” for all purposes under the Credit Agreement and the other Loan Documents. 
 Section 13. Definitions. All capitalized terms not otherwise defined herein are used herein with the respective definitions given them in the Credit Agreement. 

[Signatures on Next Page] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to Credit Agreement
to be executed as of the date first above written. 
  

					
	THE BORROWER:
	
	EXCEL TRUST, L.P.
		
	By:	 	Excel Trust, Inc., its sole general partner
		
	By:	 	 /s/ James Y. Nakagawa

		 	Name:	 	 James Y. Nakagawa

		 	Title:	 	 Chief Financial Officer

 

					
	THE PARENT:
	
	EXCEL TRUST, INC.
		
	By:	 	 /s/ S. Eric Ottesen

		 	Name:	 	 S. Eric Ottesen

		 	Title:	 	 Senior Vice President

[Signatures Continued on Next Page] 

  
 A-1

 [Signature Page to Second Amendment to 

Credit Agreement for Excel Trust, L.P.] 

 

					
	THE ADMINISTRATIVE AGENT AND THE LENDERS:
	
	 WELLS FARGO BANK, NATIONAL ASSOCIATION, Administrative Agent, as Issuing Bank, as Swingline
Lender and as a Lender

		
	By:	 	 /s/ Kelly A. Souza

		 	Name:	 	 Kelly A. Souza

		 	Title:	 	 Vice President

[Signatures Continued on Next Page] 

  
 - - 2 - -

 [Signature Page to Second Amendment to 

Credit Agreement for Excel Trust, L.P.] 

 

					
	KEYBANK, NATIONAL ASSOCIATION, as a Lender
		
	By:	 	 /s/ Nathan Weyer

		 	Name:	 	 Nathan Weyer

		 	Title:	 	 Vice President

[Signatures Continued on Next Page] 

  
 - - 3 - -

 [Signature Page to Second Amendment to 

Credit Agreement for Excel Trust, L.P.] 

 

					
	U.S. BANK NATIONAL ASSOCIATION, as a Lender
		
	By:	 	 /s/ Michael Paris

		 	Name:	 	 Michael Paris

		 	Title:	 	 Vice President

[Signatures Continued on Next Page] 

  
 - - 4 - -

 [Signature Page to Second Amendment to 

Credit Agreement for Excel Trust, L.P.] 

 

					
	PNC BANK, NATIONAL ASSOCIATION, as a Lender
		
	By:	 	 /s/ Darin Mortimer

		 	Name:	 	 Darin Mortimer

		 	Title:	 	 Assistant Vice President

[Signatures Continued on Next Page] 

  
 - - 5 - -

 [Signature Page to Second Amendment to 

Credit Agreement for Excel Trust, L.P.] 

 

					
	RAYMOND JAMES BANK, FSB, as a Lender
		
	By:	 	 /s/ James M. Armstrong

		 	Name:	 	 James M. Armstrong

		 	Title:	 	 Vice President

[Signatures Continued on Next Page] 

  
 - - 6 - -

 [Signature Page to Second Amendment to 

Credit Agreement for Excel Trust, L.P.] 

 

					
	UBS LOAN FINANCE LLC, as a Lender
		
	By:	 	 /s/ Irja R. Otsa

		 	Name:	 	 Irja R. Otsa

		 	Title:	 	 Associate Director

		
	By:	 	 /s/ Mary E. Evans

		 	Name:	 	 Mary E. Evans

		 	Title:	 	 Associate Director

  
 - - 7 - -

 EXHIBIT A 
 FORM OF GUARANTOR ACKNOWLEDGEMENT 
 THIS GUARANTOR ACKNOWLEDGEMENT dated as of
December     , 2010 (this “Acknowledgement”) executed by each of the undersigned (the “Guarantors”) in favor of Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative
Agent”) and each “Lender” a party to the Credit Agreement referred to below (the “Lenders”). 

WHEREAS, Excel Trust, L.P. (the “Borrower”), Excel Trust, Inc., the Lenders, the Administrative Agent and certain other parties
have entered into that certain Credit Agreement dated as of July 8, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); 

WHEREAS, each of the Guarantors is a party to that certain Guaranty dated as of July 8, 2010 (as amended, restated, supplemented or
otherwise modified from time to time, the “Guaranty”) pursuant to which they guarantied, among other things, the Borrower’s obligations under the Credit Agreement on the terms and conditions contained in the Guaranty; 

WHEREAS, the Borrower, the Administrative Agent and the Lenders are to enter into a Second Amendment to Credit Agreement dated as of the
date hereof (the “Amendment”), to amend the terms of the Credit Agreement on the terms and conditions contained therein; and 
 WHEREAS, it is a condition precedent to the effectiveness of the Amendment that the Guarantors execute and deliver this Acknowledgement. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto,
the parties hereto agree as follows: 
 Section 1. Reaffirmation. Each Guarantor hereby reaffirms its continuing
obligations to the Administrative Agent and the Lenders under the Guaranty and agrees that the transactions contemplated by the Amendment shall not in any way affect the validity and enforceability of the Guaranty, or reduce, impair or discharge the
obligations of such Guarantor thereunder. 
 Section 2. Governing Law. THIS ACKNOWLEDGEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE. 
 Section 3. Counterparts. This Acknowledgement may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding upon all parties, their
successors and assigns. 
 [Signatures on Next Page] 

  
 - - 8 - -

 IN WITNESS WHEREOF, each Guarantor has duly executed and delivered this Guarantor
Acknowledgement as of the date and year first written above. 
  

	
	THE GUARANTORS:
	
	EXCEL TRUST, INC.
	EXCEL BARBOURVILLE LLC
	EXCEL BECKLEY LLC
	EXCEL BRANDYWINE LLC
	EXCEL FOXWOOD LLC
	EXCEL JEWEL LLC
	EXCEL NEWPORT LLC
	EXCEL NORTH CORBIN LLC
	EXCEL PRINCETON LLC
	EXCEL ROCKWALL LLC
	EXCEL ROSEWICK LLC
	EXCEL SOUTH CORBIN LLC
	EXCEL VESTAVIA, LLC

  

					
	 By:
	 	  

		 	Name:	 	  

		 	Title:	 	  

  
 - -9 - -

 EXHIBIT B 
 LIST OF NEW PROPERTY OWNERS 
 Excel Barbourville LLC 

Excel Beckley LLC 
 Excel Brandywine LLC

 Excel Foxwood LLC 
 Excel Jewel LLC

 Excel Newport LLC 
 Excel North
Corbin LLC 
 Excel Princeton LLC 

Excel Rockwall LLC 
 Excel Rosewick LLC

 Excel South Corbin LLC 
 Excel
Vestavia, LLC 

  
 - - 10 - -H.B. Fuller Company Management Short-Term Incentive Plan

			
	
 

  
	  	 Exhibit 10.1

 
 Rewards - Compensation

Management Short-Term Incentive
 (STI) Plan
  

  

			
	 Purpose
	  	 The STI plan provides an annual performance-based cash bonus opportunity for eligible employees. This is intended to achieve a number
of goals including:
  

•   Emphasizing the Company’s commitment to competitive compensation
practices;
  

•   Driving a high performance culture;

 
 •   Assuring
accountability;
  

•   Focusing on results, not activity; and

 
 •   Reinforcing the
importance of measurable and aligned goals and objectives.

		
	 Eligibility
	  	 To participate in the STI Plan, an employee must:
  

•   Be a regular full-time or part-time employee of the Company in job grades 25 or higher.
Consultants and temporary agency employees performing services at Company facilities are not eligible to participate;
  

•   Not qualify as a participant in any other Company variable compensation program (such as
sales or unit performance bonus programs).
  
 To receive payment under the
STI Plan, the participant must:
  

•   Be actively employed as of fiscal year-end

		
	 Plan Design
	  	 The plan design is based on financial metrics. The metrics will vary based on position and will generally include the
following:
  

•   Operating Income*

 
 •   Net Working
Capital**
  

•   Organic Sales

 
 •   Earnings Per
Share
  

*       Operating Income used as a proxy for EBITDA

**     Net Working Capital used as a proxy for ROGI

 
 There will be 5 design standards, as follows:

 
 •   Region

 
 •   Region –
Operations or Sales Management
  

•   Corporate/Global

 
 •   Business Unit,
Country, Sub Region
  

•   Global Accounts, Industry, Program

  
  

Page 1 of 8 

			
	
 

  
	  	 Rewards - Compensation

Management Short-Term Incentive
 (STI) Plan
  

  

			
		 	 Participant’s plan design will be based on position. Details of the design are as
follows:
  

•   Region Standard

 
 •   Applies generally to
region roles, with the exception of sales and operations.

  

																	
	 	 	Metric & Weighting Per Metric	 
	 	 	EPS	 	 	Region Organic
Revenue	 	 	Region EBITDA
($) /
OI	 	 	ROGI / Net
Working Capital	 
	EC Member	 	 	30	% 	 	 	25	% 	 	 	35	% 	 	 	10	% 
	Standard	 	 	25	% 	 	 	30	% 	 	 	35	% 	 	 	10	% 

  

			
		 	 •   Region – Operations or Region Sales Management

 

																	
	 	 	Metric & Weighting Per Metric	 
	 	 	EPS	 	 	Operations Scorecard (for Ops roles);
Organic Revenue in area of responsibility
(ie Director Perf Pkg)	 	 	Region EBITDA
($) /
OI	 	 	Region ROGI / Net
Working Capital	 
	Standard	 	 	25	% 	 	 	30	% 	 	 	35	% 	 	 	10	% 

  

			
		 	 •   Corporate/Global

 
 •   Applies to corporate
functions such as Finance, HR, Legal, Marketing, Technology

  

																					
	 	 	Metric & Weighting Per Metric	 
	 	 	EPS	 	 	NA Composite	 	 	EU Composite	 	 	AP Composite	 	 	LA Composite	 
	Standard	 	 	30	% 	 	 	25	% 	 	 	20	% 	 	 	12.5	% 	 	 	12.5	% 

  

			
		 	 •   Region composite is the combination of Region Organic Revenue,
EBITDA/Operating Income, and ROGI/Net Working Capital results
  
 •   Business Unit, Country, Sub Region

  

																					
	 	 	Metric & Weighting Per Metric	 
	 	 	EPS	 	 	Region/Bus*
    Composite    	 	 	BU/Country/Sub Region
Organic
Revenue or
    Operations Scorecard    	 	 	BU/Country/Sub
Region EBITDA 
/ OI	 	 	BU/Country/Sub
Region ROGI /
Net
  Working Capital  	 
	Standard	 	 	15	% 	 	 	20	% 	 	 	25	% 	 	 	30	% 	 	 	10	% 

  

					
		 		 	 *  Applied as applicable per position. If not applied, Organic Revenue weighting
is 35% and EBITDA/OI is 40%. This design may apply to some Global Accts positions that cover select regions only.
  

		 	 •   Global Accounts, Global Industry, Global Program

 

																									
	 	 	Metric & Weighting Per Metric	 
	 	 	EPS	 	 	Global
Account,
Industry or Program
Sales	 	 	NA Composite	 	 	EU Composite	 	 	AP Composite	 	 	LA Composite	 
	Standard	 	 	15	% 	 	 	30	% 	 	 	20	% 	 	 	15	% 	 	 	10	% 	 	 	10	% 

  

			
		 	CEO Plan Design:

  

															
	Metric & Weighting Per Metric	 
	EPS 	 	 	HBF Organic Revenue	 	 	HBF EBITDA
($) / OI	 	 	HBF ROGI / 
Net
Working Capital	 
	 	30	% 	 	 	25	% 	 	 	35	% 	 	 	10	% 

  
  

Page 2 of 8 

			
	
 

  
	  	 Rewards - Compensation

Management Short-Term Incentive
 (STI) Plan
  

  

			
	Collaboration Teams	  	 Individuals who are on Collaboration Teams will be in one of the following plan designs, based on position.

 
 •   Region
Design

  

																			
	Metric & Weighting Per Metric	 
	EPS	 	 	Region Organic
Revenue	 	 	Region EBITDA
($) /
OI	 	 	Region ROGI/Net
  Working Capital  	 	 	Collaboration	 
	 	25	% 	 	 	20	% 	 	 	25	% 	 	 	10	% 	 	 	20	% 

  

			
		 	 •   Region – Operations or Region Sales Management

 

																			
	Metric & Weighting Per Metric	 
	EPS	 	 	Ops Scorecard or
Organic Rev in area
of responsibility	 	 	Region EBITDA
($) /
OI	 	 	Region ROGI/Net
  Working Capital  	 	 	Collaboration	 
	 	25	% 	 	 	20	% 	 	 	25	% 	 	 	10	% 	 	 	20	% 

  

			
		  	 •   Corporate/Global

 

																							
	EPS	 	 	NA Composite	 	 	EIMEA Composite	 	 	AP Composite	 	 	LA Composite	 	 	Collaboration	 
	 	30	% 	 	 	17	% 	 	 	13	% 	 	 	10	% 	 	 	10	% 	 	 	20	% 

  

			
		 	 •   Business Unit, Country, Sub Region

 

																							
	Metric & Weighting Per Metric	 
	EPS	 	 	Region/Bus*
    Composite    	 	 	BU/Country/Sub Region
Organic Revenue or
Operations Scorecard 
(for
Ops positions)	 	 	BU/Country/
  Sub Region  
EBITDA / OI	 	 	BU/Country/Sub
Region ROGI /Net
  Working Capital  	 	 	Collaboration	 
	 	15	% 	 	 	15	% 	 	 	15	% 	 	 	25	% 	 	 	10	% 	 	 	20	% 

	
	
	 *       Applied as applicable per position. If not applied, Organic Revenue weighting is 22%
and EBITDA/OI is 33%. This design may apply to some Global Accts positions that cover select regions only.

  

			
		 	 •   Global Accounts, Global Industry, Global Program

 

																											
	Metric & Weighting Per Metric	 
	EPS	 	 	Gl Account/Industry/
Program Sales	 	 	NA
Composite	 	 	EIMEA
Composite	 	 	AP
Composite	 	 	LA
Composite	 	 	Collaboration	 
	 	15	% 	 	 	20	% 	 	 	14	% 	 	 	11	% 	 	 	10	% 	 	 	10	% 	 	 	20	% 

  
  

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	  	 Rewards - Compensation

Management Short-Term Incentive
 (STI) Plan
  

  

			
		  	 Target
  

•   Each metric will have a target level of performance. Payout will be determined for each
metric based on performance relative to target. The target levels of performance will be established at the beginning of each fiscal year.
  

Threshold
  

•   Threshold performance levels will be established for each metric as follows:

 
 •   Sales, Organic
Revenue: 85% of target
  

•   Operating Income: 80% of target*

 
 •   Net Working Capital:
80% of target
  

•   EPS: 80% of target

 
 •   Operations Metrics:
80-90% of target, varies by metric
  

•   Payout at the threshold level of performance will be 50% of the target allocated to that
metric.
  
 Superior

 
 •   Superior performance
levels will be established for each metric as follows:
  
 •   Sales, Organic Revenue: 105% of target
  

•   Operating Income: 115% of target*

 
 •   Net Working Capital:
115% of target
  

•   EPS: 115% of target

 
 •   Operations Metrics:
110-120% of target, varies by metric
  
 •   Payout at the superior level of performance will be 150% of the target allocated to that metric.
  

*  Management reserves the right to adjust threshold/superior levels on an as-needed basis for small
operating income targets.
  
 See Appendix for payout schedule.

 
 Superior Stretch Goal – Executive Committee

 
 •   Additional superior
goals will be established for metrics for the EC members as follows:
  
 •   Organic Revenue: 110% of target
  

•   Operating Income: 125% of target

 
 •   Net Working Capital:
125% of target
  

•   EPS: 125% of target

 
 •   Payout at the
superior stretch goal will be 200% of the target allocated to that metric

		
	 Payment
	  	 Payment will be made in cash, subject to taxes and deductions as applicable.
 Payment will be made as close as possible to January 31 following the conclusion of the relevant Plan Year, but will be made no later than March
15th of the calendar year following the Plan
Year.

		
	Participant Status Changes	  	 If a participant begins employment with the company during the Plan Year, bonus potential will be pro-rated for the time the
participant was employed during the Plan Year.
  
 If a participant transfers
jobs and changes plan design standards, potential bonus will be pro-rated for the time spent in each job.

  
  

Page 4 of 8 

			
	
 

  
	  	 Rewards - Compensation

Management Short-Term Incentive
 (STI) Plan
  

  

			
	 Administration
	  	 Participants may direct questions about the STI Plan to their local management or human resources representatives.

 
 The Compensation Committee of the Board of Directors shall make a certification
decision with respect to performance of financial metrics and consider extraordinary circumstances that may have positively or negatively impacted the achievement of the objectives. The Board or management in their discretion, reserves the right at
any time to enhance, diminish or terminate all or any portion of any compensation plan or program, on a collective or individual basis.

		
	 Relevant Terms
	  	 Actively Employed - A full-time or part-time employee on the Company payroll. It excludes any employee who has been terminated
from employment with the Company – voluntarily or involuntarily – in advance of fiscal year-end.
  
 Company - H.B. Fuller Company and its wholly owned subsidiaries.
  
 Eligible Earnings – Base salary, excluding short-term and long-term disability payments. For mid-year promotions, annual salary is pro-rated based on salary before and after
promotion.
  
 Payment - The cash reward payable after conclusion of
the Plan Year.
  
 Plan Year – The relevant Company fiscal
year.
  
 Short Term Incentive (STI) Plan - The program described
herein. May also be referred to as “STIP” or “STI Plan”.

  
  

Page 5 of 8 

			
	
 

  
	  	 Rewards - Compensation

Management Short-Term Incentive
 (STI) Plan
  

  

 Appendix 

																					
	 	 	STIP Payment schedule for Organic
Revenue	 	 	 	 	 	STIP Payment Schedule for EPS,
EBITDA/Operating Income, ROGI/Net
Working Capital	 
	 	 	Metric
Performance	 	 	Payout (as % of
target)	 	 	 	 	 	Metric
Performance	 	 	Payout (as % 
of
target)	 
		 	 	105	% 	 	 	150.0	% 	 				 	 	115	% 	 	 	150.0	% 
		 	 	104	% 	 	 	140.0	% 	 				 	 	114	% 	 	 	146.7	% 
		 	 	103	% 	 	 	130.0	% 	 				 	 	113	% 	 	 	143.3	% 
		 	 	102	% 	 	 	120.0	% 	 				 	 	112	% 	 	 	140.0	% 
		 	 	101	% 	 	 	110.0	% 	 				 	 	111	% 	 	 	136.7	% 
		 	 	100	% 	 	 	100.0	% 	 				 	 	110	% 	 	 	133.3	% 
		 	 	99	% 	 	 	96.7	% 	 				 	 	109	% 	 	 	130.0	% 
		 	 	98	% 	 	 	93.3	% 	 				 	 	108	% 	 	 	126.7	% 
		 	 	97	% 	 	 	90.0	% 	 				 	 	107	% 	 	 	123.3	% 
		 	 	96	% 	 	 	86.7	% 	 				 	 	106	% 	 	 	120.0	% 
		 	 	95	% 	 	 	83.3	% 	 				 	 	105	% 	 	 	116.7	% 
		 	 	94	% 	 	 	80.0	% 	 				 	 	104	% 	 	 	113.3	% 
		 	 	93	% 	 	 	76.7	% 	 				 	 	103	% 	 	 	110.0	% 
		 	 	92	% 	 	 	73.3	% 	 				 	 	102	% 	 	 	106.7	% 
		 	 	91	% 	 	 	70.0	% 	 				 	 	101	% 	 	 	103.3	% 
		 	 	90	% 	 	 	66.7	% 	 				 	 	100	% 	 	 	100.0	% 
		 	 	89	% 	 	 	63.3	% 	 				 	 	99	% 	 	 	97.5	% 
		 	 	88	% 	 	 	60.0	% 	 				 	 	98	% 	 	 	95.0	% 
		 	 	87	% 	 	 	56.7	% 	 				 	 	97	% 	 	 	92.5	% 
		 	 	86	% 	 	 	53.3	% 	 				 	 	96	% 	 	 	90.0	% 
		 	 	85	% 	 	 	50.0	% 	 				 	 	95	% 	 	 	87.5	% 
		 				 				 				 	 	94	% 	 	 	85.0	% 
		 				 				 				 	 	93	% 	 	 	82.5	% 
		 				 				 				 	 	92	% 	 	 	80.0	% 
		 				 				 				 	 	91	% 	 	 	77.5	% 
		 				 				 				 	 	90	% 	 	 	75.0	% 
		 				 				 				 	 	89	% 	 	 	72.5	% 
		 				 				 				 	 	88	% 	 	 	70.0	% 
		 				 				 				 	 	87	% 	 	 	67.5	% 
		 				 				 				 	 	86	% 	 	 	65.0	% 
		 				 				 				 	 	85	% 	 	 	62.5	% 
		 				 				 				 	 	84	% 	 	 	60.0	% 
		 				 				 				 	 	83	% 	 	 	57.5	% 
		 				 				 				 	 	82	% 	 	 	55.0	% 
		 				 				 				 	 	81	% 	 	 	52.5	% 
		 				 				 				 	 	80	% 	 	 	50.0	% 

  

	 	•	 	 Payout is calculated for each incremental increase in performance (straight line interpolation). 

 

	 	•	 	 EC members have an additional stretch superior goal as follows: 

 

	 	•	 	 Organic Revenue: Payout is calculated at an additional 10% for each incremental increase in performance up to 110% of metric performance (straight line
interpolation). 

  

	 	•	 	 EPS, EBITDA/Operating Income, ROGI/Net Working Capital: Payout is calculated at an additional 5% for each incremental increase in performance up to
125% of metric performance (straight line interpolation). 

  
  

Page 6 of 8 

			
	
 

  
	  	 Rewards - Compensation

Management Short-Term Incentive
 (STI) Plan
  

  

 Calculation Guidelines 
  

	 	1.	Company EPS. As reported adjusted for STIP & UPB accruals (see below). 

 

	 	2.	Organic Revenue. The reported revenue is adjusted for the following: 

 

	 	a.	Currency impact compared to budgeted exchange rates for Europe and Asia Pacific regions. 

 

	 	3.	HBF Operating Income. The reported operating income is adjusted for the following: 

 

	 	a.	STIP & UPB accruals (see below). 

  

	 	b.	Currency impact compared to budgeted exchange rates for the Europe and Asia Pacific regions. 

 

	 	4.	Net Working Capital (NWC) as a percentage of Net Revenue. 

  

	 	a.	NWC includes net trade accounts receivable plus inventory minus trade accounts payable. 

 

	 	b.	NWC % for a quarter is determined by dividing NWC by the quarter’s annualized trade revenue. 

 

	 	c.	Annualized trade revenue is the trade revenue for the quarter multiplied by 4. 

 

	 	d.	The percentage is determined by dividing NWC by the annualized sales. 

  

	 	e.	The metric is determined by taking the average of the four quarters of the year. 

 

	 	f.	Inventory for a region is valued using the FIFO (first in, first out) method. 

 

	 	g.	Inventory for H.B. Fuller is valued using the LIFO (Last in, first out) method. 

 

	 	h.	Any increases in working capital or revenue from acquisitions during the year are excluded. 

 

	 	5.	Fully allocated regional operating income. 

  

	 	a.	Regional operating income targets include corporate governance allocation at budget. 

 

	 	b.	For evaluating performance against target, the actual corporate governance allocation is adjusted to reflect Corporate STIP and UPB accruals at target.

  

	 	c.	At the region level and one level below, corporate governance allocations will be included in determining targets and performance. Below these levels, the corporate
governance allocation is not to be included in determining targets or performance. 

  

	 	6.	Impact of STIP & UPB accruals. For income related metrics, performance is evaluated assuming the STIP and UPB accruals are at target.

  

	 	7.	North America. Basis of targets is US dollars. For purposes of determining performance against targets, there is to be no adjustment back to budgeted exchange
rates for Canada. 

  
  

Page 7 of 8 

			
	
 

  
	  	 Rewards - Compensation

Management Short-Term Incentive
 (STI) Plan
  

  

	 	8.	Europe. 

  

	 	a.	Revenue, operating income and NWC are in Euros. 

  

	 	b.	The actual corporate governance allocation will be converted to Euros at the budgeted exchange rate for determining performance against the operating income target.

  

	 	9.	Latin America. Basis of targets is the US dollar. For purposes of determining performance against targets, there is to be no adjustment back to budgeted exchange
rates for individual countries. 

  

	 	10.	Asia Pacific. For revenue and income metrics expressed in US dollars, the budgeted exchange rates will be used to assess performance. 

 

	 	11.	Region Composites. The region composite is the combined results of Organic Revenue, Operating Income, and Net Working Capital. Performance for each of these
metrics is assessed, and a payment percent is determined for each metric (per the Payment Schedule). These payment percents are applied, based on the metric weighting, to determine the overall payment percent for the composite.

  

	 	12.	In calculating the results, the following adjustments will be made: 

 

	 	a.	Individual legal settlements (payments or receipts) with a value (net of insurance) of $3 million or greater will not be included in metric calculations.

  

	 	b.	Any unbudgeted reorganization or restructuring-related items which cannot be offset by related benefits in the fiscal year will not be included in metric calculations.

  

	 	c.	Unbudgeted acquisitions and divestitures will be excluded from all actual and target metric calculations, as applicable. 

 

	 	d.	Any unbudgeted asset write-downs in excess of $2 million will not be included in metric calculations. 

  
  

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