Document:

Textron Inc. 2007 Long-Term Incentive Plan

 Exhibit 10.1 
 TEXTRON INC. 
 2007 LONG-TERM INCENTIVE PLAN 

(AMENDED AND RESTATED AS OF APRIL 28, 2010) 
 (Share numbers adjusted to reflect stock splits) 
 1. Purposes of the Plan

 The purposes of the Plan are to (a) promote the long-term success of the Company and its Subsidiaries and to increase
shareholder value by providing Eligible Individuals with incentives to contribute to the long-term growth and profitability of the Company and (b) assist the Company in attracting, retaining and motivating highly qualified individuals who are
in a position to make significant contributions to the Company and its Subsidiaries. 
 Upon the Effective Date, no further
Awards will be granted under the Prior Plan. 
 2. Definitions and Rules of Construction 

(a)    Definitions.    For purposes of the Plan, the following capitalized words shall have
the meanings set forth below: 
 “Affiliate” means any Parent or Subsidiary and any
person that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the Company. 
 “Award” means an Option, Restricted Stock, Restricted Stock Unit, Stock Appreciation Right, Performance Stock, Performance Share Unit or Other Award granted by the Committee
pursuant to the terms of the Plan. 
 “Award Document” means an agreement, certificate
or other type or form of document or documentation approved by the Committee that sets forth the terms and conditions of an Award. An Award Document may be in paper, electronic or other media, may be limited to a notation on the books and records of
the Company and, unless the Committee requires otherwise, need not be signed by a representative of the Company or a Participant. 
 “Beneficial Owner” and “Beneficially Owned” have the meaning set forth in Rule 13d-3 under the Exchange Act. 

“Board” means the Board of Directors of the Company, as constituted from time to time.

 “Change of Control” means: 

(i) Any “person” or “group” (within the meaning of Sections 13 (d) and 14 (d)(2) of the
Exchange Act other than the Company, any “person” who on the Effective Date was a director or officer of the Company, any trustee or other fiduciary holding Common Stock under an employee benefit plan of the Company or a Subsidiary, or any
corporation which is owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of Common Stock, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Act) of more than thirty percent (30%) of the then outstanding voting stock of the Company, or 
 (ii)
during any period of two consecutive years, individuals who at the beginning of such period constitute the Board and any new director whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of
at least two-thirds of the directors then still in office who either were directors at the beginning of the two-year period (or whose election or nomination was previously so approved) cease for any reason to constitute a majority of the Board, or

 (iii) the shareholders of the Company approve a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either 

  
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by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the
Company or such surviving entity outstanding immediately after such merger or consolidation, or 
 (iv) the
shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets. 

If an Award is subject to Section 409A of the Code, the payment or settlement of the Award shall accelerate upon a Change of Control
only if the event also constitutes a “change in ownership,” “change in effective control,” or “change in the ownership of a substantial portion of the Company’s assets” as defined under Section 409A of the
Code. Any adjustment to the Award that does not affect the Award’s status under Section 409A (including, but not limited to, accelerated vesting or adjustment of the amount of the Award) may occur upon a Change in Control as defined in the
Plan, regardless of whether the event also constitutes a change in control under Section 409A. Notwithstanding the foregoing, with respect to any Award granted after April 28, 2010, for purposes of clause (iii) and (iv) above a
“Change of Control” shall be deemed to occur only upon consummation (and not upon approval) of a transaction described in such clauses. 
 “Code” means the Internal Revenue Code of 1986, as amended, and the applicable rulings and regulations promulgated thereunder. 

“Committee” means the Organization and Compensation Committee of the Board, any successor
committee thereto or any other committee appointed from time to time by the Board to administer the Plan, which committee shall meet the requirements of Section 162(m) of the Code, Section 16(b) of the Exchange Act and the
applicable rules of the NYSE; provided, however, that, if any Committee member is found not to have met the qualification requirements of Section 162(m) of the Code and Section 16(b) of the Exchange Act, any
actions taken or Awards granted by the Committee shall not be invalidated by such failure to so qualify. 

“Common Stock” means the common stock of the Company, par value $0.125 per share, or such other
class of share or other securities as may be applicable under Section 13 of the Plan. 

“Company” means Textron Inc., a Delaware corporation, or any successor to all or substantially
all of the Company’s business that adopts the Plan. 
 “Early Retirement” means the
attainment of age 60, or age 55 with 10 years of service, or 20 years of service. 
 “Effective
Date” means April 25, 2007, the date on which the Plan was approved by the shareholders of the Company. 
 “Eligible Individuals” means the individuals described in Section 4(a) of the Plan who are eligible for Awards under the Plan. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder. 
 “Fair Market Value” means, with respect to a
share of Common Stock, the closing selling price of a share of Common Stock on the relevant date of determination as reported on the composite tape for securities listed on the NYSE, or such national securities exchange as may be designated by the
Committee. If there were no sales on the relevant date, the fair market value shall equal the closing share price on the most recent day preceding the relevant date during which a sale occurred. 

“Family Member” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former 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, and any person sharing the Participant’s household (other than a tenant or
employee). 
 “Incentive Stock Option” means an Option that is intended to comply with
the requirements of Section 422 of the Code or any successor provision thereto. 

  
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 “Non-Employee Director” means any member of the
Board who is not an officer or employee of the Company or any Subsidiary. 
 “Nonqualified Stock
Option” means an Option that is not intended to comply with the requirements of Section 422 of the Code or any successor provision thereto. 
 “NYSE” means the New York Stock Exchange. 

“Option” means an Incentive Stock Option or Nonqualified Stock Option granted pursuant to
Section 7 of the Plan. 
 “Other Award” means any form of Award other than an
Option, Restricted Stock, Restricted Stock Unit, Performance Stock, Performance Share Unit, or Stock Appreciation Right granted pursuant to Section 11 of the Plan. 

“Parent” means a corporation which owns or beneficially owns a majority of the outstanding voting
stock or voting power of the Company. Notwithstanding the above, with respect to an Incentive Stock Option, Parent shall have the same meaning as “parent corporation” set forth in Section 424(e) of the Code. 

“Participant” means an Eligible Individual who has been granted an Award under the Plan.

 “Performance Period” means the period established by the Committee and set forth in
the applicable Award Document over which Performance Targets are measured. 
 “Performance
Stock” means a Target Number of Shares granted pursuant to Section 10(b) of the Plan. 

“Performance Target” means the performance measures established by the Committee, from among the
performance criteria provided in Section 6(g), and set forth in the applicable Award Document. 

“Performance Share Unit” means a right to receive a Target Number of Shares or cash in the future
granted pursuant to Section 10(c) of the Plan. 
 “Permitted Transferees”
means (i) a Participant’s Family Member, (ii) one or more trusts in which Family Members have more than fifty percent of the beneficial interest, (iii) a foundation in which the Participant or Family Members control the
management of assets; or (iv) any other entity in which the Participants or Family Members own more than fifty percent of the voting interests. 
 “Plan” means this Textron Inc. 2007 Long-Term Incentive Plan, as amended or restated from time to time. 

“Plan Limit” means the maximum aggregate number of Shares that may be issued for all purposes
under the Plan as set forth in Section 5(a) of the Plan. 
 “Prior Plan” means
the 1999 Long-Term Incentive Plan, as amended and restated from time to time. 
 “Restricted
Stock” means one or more Shares granted pursuant to Section 8(b) of the Plan. 

“Restricted Stock Unit” means a right to receive one or more Shares (or cash, if applicable) in
the future granted pursuant to Section 8(c) of the Plan. 
 “Shares” means
shares of Common Stock, as may be adjusted pursuant to Section 13(b). 
 “Stock Appreciation
Right” means a right to receive all or some portion of the appreciation on Shares granted pursuant to Section 9 of the Plan. 
 “Subsidiary” means (i) a corporation or other entity with respect to which the Company, directly or indirectly, has the power, whether through the ownership of voting
securities, by contract or otherwise, to elect at least a majority of the members of such corporation’s board of directors or analogous governing body, or (ii) any other corporation or other entity in which the Company, directly or
indirectly, has an equity or similar interest greater than 50% and which the Committee designates as a Subsidiary for purposes of the Plan. For purposes of determining eligibility for the grant of

  
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Incentive Stock Options under the Plan, the term “Subsidiary” shall be defined in the manner required by Section 424(f) of the Code. 

“Substitute Award” means any Award granted upon assumption of, or in substitution or exchange
for, outstanding employee equity awards previously granted by a company or other entity acquired by the Company or with which the Company combines pursuant to the terms of an equity compensation plan that was approved by the shareholders of such
company or other entity. 
 “Target Number” means, if applicable, the target number of
Shares or cash value established by the Committee and set forth in the applicable Award Document. 

(b)    Rules of Construction.    The masculine pronoun shall be deemed to include the
feminine pronoun, and the singular form of a word shall be deemed to include the plural form, unless the context requires otherwise. Unless the text indicates otherwise, references to sections are to sections of the Plan. 

3. Administration 

(a)    Committee.    The Plan shall be administered by the Committee, which shall have full power
and authority, subject to the express provisions hereof, to: 
 (i) select the Participants from the Eligible
Individuals; 
 (ii) grant Awards in accordance with the Plan; 

(iii) determine the number of Shares subject to each Award or the cash amount payable in connection with an Award;

 (iv) determine the terms and conditions of each Award, including, without limitation, those related to term,
permissible methods of exercise, vesting, cancellation, payment, settlement, exercisability, Performance Periods, Performance Targets, and the effect, if any, of a Participant’s termination of employment with the Company or any of its
Subsidiaries or, subject to Section 6(d), a Change of Control of the Company; 
 (v) subject to Sections
6(g), 16 and 17(e) of the Plan, amend the terms and conditions of an Award after the granting thereof; 
 (vi) specify and approve the provisions of the Award Documents delivered to Participants in connection with their Awards; 

(vii) construe and interpret any Award Document delivered under the Plan; 

(viii) make factual determinations in connection with the administration or interpretation of the Plan; 

(ix) adopt, prescribe, amend, waive and rescind administrative regulations, rules and procedures relating to the
Plan; 
 (x) employ such legal counsel, independent auditors and consultants as it deems desirable for the
administration of the Plan and to rely upon any advice, opinion or computation received therefrom; 
 (xi) vary
the terms of Awards to Participants in non-US jurisdictions to take account of local tax and securities law and other regulatory requirements or to procure favorable tax treatment for Participants; 

(xii) correct any defects, supply any omission or reconcile any inconsistency in any Award Document or the Plan; and

 (xiii) make all other determinations and take any other action desirable or necessary to interpret, construe
or implement properly the provisions of the Plan or any Award Document. 
 (b)    Plan Construction
and Interpretation.    The Committee shall have full power and authority, subject to the express provisions hereof, to construe and interpret the Plan. 
 (c)    Determinations of Committee Final and Binding.    All determinations by the Committee in carrying out and administering the Plan and in construing and
interpreting the Plan shall be made in the 

  
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Committee’s sole discretion and shall be final, binding and conclusive for all purposes and upon all persons interested herein. 

(d)    Delegation of Authority.    To the extent not prohibited by applicable laws,
rules and regulations, the Committee may, from time to time, delegate some or all of its authority under the Plan to a subcommittee or subcommittees thereof or other persons or groups of persons as it deems necessary, appropriate or advisable
under such conditions or limitations as it may set at the time of such delegation or thereafter; provided, however, that the Committee may not delegate its authority (i) to make Awards to employees (A) who are subject on the
date of the Award to the reporting rules under Section 16(a) of the Exchange Act, (B) who are executive officers whose compensation may be subject to the limit on deductible compensation pursuant to Section 162(m) of
the Code, or (C) who are officers of the Company who are delegated authority by the Committee hereunder, or (ii) pursuant to Section 16 of the Plan. For purposes of the Plan, reference to the Committee shall be deemed to refer to any
subcommittee, subcommittees, or other persons or groups of persons to whom the Committee delegates authority pursuant to this Section 3(d). In addition, notwithstanding the foregoing, an independent Committee of the Board is required to approve
any grants under this plan to non-employee directors. 
 (e)    Liability of
Committee.    Subject to applicable laws, rules and regulations: (i) no member of the Board or Committee (or its delegates) shall be liable for any good faith action or determination made in connection with the
operation, administration or interpretation of the Plan and (ii) the members of the Board or the Committee (and its delegates) shall be entitled to indemnification and reimbursement in the manner provided in the Company’s Certificate of
Incorporation as it may be amended from time to time. In the performance of its responsibilities with respect to the Plan, the Committee shall be entitled to rely upon information and/or advice furnished by the Company’s officers or employees,
the Company’s accountants, the Company’s counsel and any other party the Committee deems necessary, and no member of the Committee shall be liable for any action taken or not taken in reliance upon any such information and/or advice.

 (f)    Action by the Board.    Anything in the Plan to the contrary
notwithstanding, subject to applicable laws, rules and regulations, any authority or responsibility that, under the terms of the Plan, may be exercised by the Committee may alternatively be exercised by the Board. 

4. Eligibility 

(a)    Eligible Individuals.    Awards may be granted to employees and Non-Employee
Directors of the Company or any of its Subsidiaries; provided, however, that only employees of the Company or a Parent or Subsidiary may be granted Incentive Stock Options. The Committee shall have the authority to select the persons
to whom Awards may be granted and to determine the type, number and terms of Awards to be granted to each such Participant. Under the Plan, references to “employment” or “employed” include service of Participants who are
Non-Employee Directors, except for purposes of determining eligibility to be granted Incentive Stock Options. 

(b)    Grants to Participants.    The Committee shall have no obligation to grant any
Eligible Individual an Award or to designate an Eligible Individual as a Participant solely by reason of such Eligible Individual having received a prior Award or having been previously designated as a Participant. The Committee may grant more than
one Award to a Participant and may designate an Eligible Individual as a Participant for overlapping periods of time. 
 5. Shares Subject to
the Plan 
 (a)    Plan Limit.    Subject to adjustment in accordance with
Section 13 of the Plan, the maximum aggregate number of Shares that may be issued for all purposes under the Plan shall be 12,000,000 plus any Shares that become available for issuance upon cancellation, forfeiture, or expiration of awards
granted under the Prior Plan without having been exercised or settled. Shares to be issued under the Plan may be authorized and unissued shares, issued shares that have been reacquired by the Company (in the open-market or in private transactions)
and that are being held in treasury, or a combination thereof. No more than 12,000,000 Shares may be issued pursuant to Incentive Stock Options. 

  
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 (b)    Rules Applicable to Determining Shares Available for
Issuance.    The number of Shares remaining available for issuance will be reduced by the number of Shares subject to outstanding Awards that are both denominated and intended to be settled in Shares and, for all other
awards, by the number of Shares actually delivered upon settlement or payment of the Award. For purposes of determining the number of Shares that remain available for issuance under the Plan, (i) the number of Shares that are tendered by a
Participant or withheld by the Company to pay the exercise price of an Award or to satisfy the Participant’s tax withholding obligations in connection with the exercise or settlement of an Award and (ii) all of the Shares covered by a
stock-settled Stock Appreciation Right to the extent exercised, will not be added back to the Plan Limit. In addition, for purposes of determining the number of Shares that remain available for issuance under the Plan, the number of Shares
corresponding to Awards that are both denominated and intended to be settled in Shares under the Plan that are forfeited or cancelled or otherwise expire for any reason without having been exercised or settled or that is settled through issuance of
consideration other than Shares (including, without limitation, cash) shall be added back to the Plan Limit and again be available for the grant of Awards; provided, however, that this provision shall not be applicable with respect to
(i) the cancellation of a Stock Appreciation Right granted in tandem with an Option upon the exercise of the Option or (ii) the cancellation of an Option granted in tandem with a Stock Appreciation Right upon the exercise of the Stock
Appreciation Right. 
 (c)    Special Limits.    Anything to the contrary in
Section 5(a) above notwithstanding, but subject to adjustment under Sections 5(b) and 13 of the Plan, the following special limits shall apply to Shares available for Awards under the Plan: 

(i) the maximum number of Shares that may be issued pursuant to awards of Restricted Stock, Restricted Stock Units,
Performance Stock, Performance Share Units and Other Awards that are payable in Shares granted under the Plan shall equal 3,000,000 Shares in the aggregate. 
 (ii) the maximum number of Shares that may be made subject to Options and Stock Appreciation Rights granted to any Eligible Individual in any calendar year shall equal 400,000 Shares, and if any
Option or Stock Appreciation Right is forfeited, cancelled or otherwise expires for any reason without having been exercised, the Shares subject to such Option or Stock Appreciation Right shall be included in the determination of the aggregate
number of Shares issued to such employee under the Plan. 
 (iii) the maximum amount of Awards (other than those
Awards set forth in Section 5(c)(ii)) that may be (1) awarded to any Eligible Individual in any calendar year (with respect to Awards settled in Shares) is 400,000 Shares measured as of the date of grant, or (2) paid to any Eligible
Individual in any calendar year (with respect to Awards settled in cash) is $15 million; and 
 (iv) A maximum of
five percent (5%) of the aggregate number of Shares available for issuance under the Plan may be issued as Restricted Stock, Restricted Stock Units, Performance Stock, or Performance Share Units, having no minimum vesting period as specified in
Sections 8(a) and 10(a). 
 (d) Any Shares underlying Substitute Awards shall not be counted against the number of Shares
remaining for issuance and shall not be subject to Section 5(c). 
 6. Awards in General 

(a)    Types of Awards.    Awards under the Plan may consist of Options, Restricted Stock,
Restricted Stock Units, Stock Appreciation Rights, Performance Stock, Performance Share Units and Other Awards. Any Award described in Sections 7 through 11 of the Plan may be granted singly or in combination or tandem with any other Award, as the
Committee may determine. Awards under the Plan may be made in combination with, in replacement of, or as alternatives to awards or rights under any other compensation or benefit plan of the Company, including the plan of any acquired entity.

 (b)    Terms Set Forth in Award Document.    The terms and conditions of each
Award shall be set forth in an Award Document in a form approved by the Committee for such Award, which Award Document shall contain terms and conditions not inconsistent with the Plan. Notwithstanding the foregoing, and subject to applicable laws,
the Committee may accelerate (i) the vesting or payment of any Award, (ii) the lapse of restrictions on any Award or (iii) the date on which any Award first becomes exercisable. The Committee shall exercise this discretion only in the
event of death, disability, Change of Control, 

  
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retirement, or termination without cause. If an Award is subject to Section 409A of the Code, or if an Award is intended to qualify as “performance-based compensation” for purposes
of Section 409A or Section 162(m) of the Code, the Committee shall have discretion to alter the terms of the Award only to the extent that the alteration would not cause the Award to fail to satisfy the requirements of Section 409A or
the “performance-based compensation” exemption under Section 162(m), respectively. The terms of Awards may vary among Participants, and the Plan does not impose upon the Committee any requirement to make Awards subject to uniform
terms. Accordingly, the terms of individual Award Documents may vary. 
 (c)    Termination of
Employment.    The Committee shall specify at or after the time of grant of an Award the provisions governing the disposition of an Award in the event of a Participant’s termination of employment with the Company or any
of its Subsidiaries. Subject to applicable laws, rules and regulations, in connection with a Participant’s termination of employment, the Committee shall have the discretion to accelerate the vesting, exercisability or settlement of,
eliminate the restrictions and conditions applicable to, alter the form of payment, or extend the post-termination exercise period of an outstanding Award. Such provisions may be specified in the applicable Award Document or determined at a
subsequent time. If an Award is subject to Section 409A of the Code, or if an Award is intended to qualify as “performance-based compensation” for purposes of Section 409A or Section 162(m) of the Code, the Committee shall
have discretion to alter the terms of the Award only to the extent that the alteration would not cause the Award to fail to satisfy the requirements of Section 409A or the “performance-based compensation” exemption under
Section 162(m), respectively. 
 (d)    Change of Control.    (i) The
Committee shall have full authority to determine the effect, if any, of a Change of Control of the Company or any Subsidiary on the vesting, exercisability, settlement, payment or lapse of restrictions applicable to an Award, which effect may be
specified in the applicable Award Document or determined at a subsequent time. Subject to applicable laws, rules and regulations, the Board or the Committee shall, at any time prior to, coincident with or after the effective time of a Change of
Control, take such actions as it may consider appropriate, including, without limitation: (A) providing for the acceleration of any vesting conditions relating to the exercise or settlement of an Award or that an Award shall terminate or expire
unless exercised or settled in full on or before a date fixed by the Committee; (B) making such adjustments to the Awards then outstanding as the Committee deems appropriate to reflect such Change of Control; (C) causing the Awards then
outstanding to be assumed, or new rights substituted therefor, by the surviving corporation in such Change of Control; or (D) permitting or requiring Participants to surrender outstanding Options and Stock Appreciation Rights in exchange for a
cash payment equal to the difference, if any, between the highest price paid for a Share in the Change of Control transaction and the Exercise Price of the Award. If an Award is subject to Section 409A of the Code, the Committee shall have
discretion to alter the terms of the Award only to the extent that the alteration would not cause the Award to fail to satisfy the requirements of Section 409A. In addition, except as otherwise specified in an Award Document (or a
Participant’s written employment agreement with the Company or any Subsidiary): 
 (1) any and all Options
and Stock Appreciation Rights outstanding as of the effective date of the Change of Control shall become immediately exercisable; 
 (2) any restrictions imposed on Restricted Stock and Restricted Stock Units outstanding as of the effective date of the Change of Control shall lapse; 

(3) the Performance Targets with respect to all Performance Share Units, Performance Stock and other performance-based
Awards granted pursuant to Sections 6(g) or 10 outstanding as of the effective date of the Change of Control shall be deemed to have been attained at the specified target level of performance; 

(4) the vesting of all Awards denominated in Shares outstanding as of the effective date of the Change of Control shall be
accelerated; and 
 (5) any Award that became earned or vested as a result of the Change in Control shall be paid
in full within 30 days after the vesting date (unless the payment would constitute an impermissible acceleration of a distribution that is subject to Section 409A of the Code, in which case the payment shall be made on the original distribution
date). 

  
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 (ii) Subject to applicable laws, rules and regulations, the Committee
may provide, in an Award Document or subsequent to the grant of an Award for the accelerated vesting, exercisability and/or the deemed attainment of a Performance Target with respect to an Award upon specified events similar to a Change of Control.

 (iii) Notwithstanding any other provision of the Plan or any Award Document, the provisions of this
Section 6(d) may not be terminated, amended, or modified upon or after a Change of Control in a manner that would adversely affect a Participant’s rights with respect to an outstanding Award without the prior written consent of the
Participant. Subject to Section 16, the Board, upon recommendation of the Committee, may terminate, amend or modify this Section 6(d) at any time and from time to time prior to a Change of Control. 

(e)    Dividends and Dividend Equivalents.    The Committee may provide
Participants with the right to receive dividends or payments equivalent to dividends or interest with respect to an outstanding Award, which payments can either be paid currently or deemed to have been reinvested in Shares, and can be made in
Shares, cash or a combination thereof, as the Committee shall determine; provided, however, that the terms of any payment or reinvestment of dividends (including the time and form in which reinvested dividends will be paid to the
Participant) must be specified in the Award Document when the Award is granted and must comply with all applicable laws, rules and regulations, including, without limitation, Section 409A of the Code. Dividends or dividend equivalents that
are paid currently with respect to any non-vested Award generally shall be paid at the same time as dividends are paid to the Company’s shareholders, and in no event later than 2 1/2 months after the end of the year in which the dividend record date
falls. Dividends or dividend equivalents that are reinvested with respect to any non-vested Award shall vest and be paid out at the same time and under the same conditions as the underlying Award. Notwithstanding the foregoing, no dividends or
dividend equivalents shall be paid with respect to Options or Stock Appreciation Rights. 

(f)    Rights of a Shareholder.    A Participant shall have no rights as a shareholder with
respect to Shares covered by an Award (including voting rights) until the date the Participant or his or her nominee becomes the holder of record of such Shares. No adjustment shall be made for dividends or other rights for which the record date is
prior to such date, except as provided in Section 13. 
 (g)    Performance-Based
Awards.    (i) The Committee may determine whether any Award (or portion of an Award) under the Plan is intended to be “performance-based compensation” as that term is used in Section 162(m) of the
Code. Any such Awards (or portions of Awards) designated to be “performance-based compensation” shall be conditioned on the achievement of one or more Performance Targets to the extent required by Section 162(m) of the Code and
will be subject to all other conditions and requirements of Section 162(m). The Performance Targets will consist of specified levels of one or more of the following performance criteria as the Committee deems appropriate: operating cash flows
from continuing operations, operating working capital, free cash flow, revenues, segment profit, corporate expenses, special charges, gain (loss) on sale of business, income from continuing operations, net income, EBITDA—earnings before
interest, taxes, depreciation and amortization, EBIT—earnings before interest and taxes, EPS—earnings per share, as adjusted EPS, ROA—return on assets, ROS—return on sales, ROE—return on equity, ROIC—return on invested
capital, WACC—weighted average cost of capital, total shareholder return, stock price appreciation, growth in managed assets, organic growth, cost performance, net cost reductions, inventory turns, selling and administrative expense as a
percentage of sales, days sales outstanding, ratio of income to fixed charges, segment profit margins, total profit margin, EVA—economic value added, intrinsic value and effective income tax rate, in each case determined in accordance with
generally accepted accounting principles (subject to modifications approved by the Committee) consistently applied on a business unit, divisional, subsidiary or consolidated basis or any combination thereof. The Performance Targets may be described
in terms of objectives that are related to the individual Participant or objectives that are Company-wide or related to a Subsidiary, division, department, region, function or business unit and may be measured on an absolute or cumulative basis or
on the basis of percentage of improvement over time, and may be measured in terms of Company performance (or performance of the applicable Subsidiary, division, department, region, function or business unit) or measured relative to selected peer
companies or a market index. In addition, for Awards or portions of Awards not intended to qualify as “performance-based compensation” under Section 162(m) of the Code, the Committee may establish Performance Targets based on
other criteria as it deems appropriate. 

  
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 (ii) The Participants will be designated, and the applicable Performance
Targets will be established, by the Committee within ninety (90) days following the commencement of the applicable Performance Period (or such earlier or later date permitted or required by Section 162(m) of the Code). Each
Participant will be assigned a Target Number payable if Performance Targets are achieved. Any payment of an Award granted with Performance Targets shall be conditioned on the written certification of the Committee in each case that the Performance
Targets and any other material conditions were satisfied. The Committee may determine, at the time of Award grant and to the extent permitted by Code Section 162(m) and the regulations and interpretive rulings thereunder, that if
performance exceeds the specified Performance Targets, the Award may be settled with payment greater than the Target Number, but in no event may such payment exceed the limits set forth in Section 5(c). Similarly, the Committee may establish a
payment that is below the Target Number but above a threshold level of payment if performance is below established Performance Targets. The Committee retains the right to reduce any Award notwithstanding the attainment of the Performance Targets.
Notwithstanding the above, for any Award or portion of an Award designated to be “performance-based compensation” under Section 162(m) of the Code, the Committee does not retain any right to increase any amount otherwise
determined under the provisions of the Plan and the Award. 

(h)    Deferrals.     All Awards that are subject to a substantial risk of forfeiture when
granted shall be paid to the Participant in a lump sum (in cash, Shares, or a combination of the two) no later than the end of the year in which the Award vests (or, if later, by the 15th day of the third calendar month after the Award vests),
unless the Participant has made a valid election under a deferred compensation plan sponsored by the Company to defer all or part of the Award. No deferral opportunity shall exist with respect to an Award unless explicitly permitted by the Committee
at the time of grant. No Option or Stock Appreciation Right shall include a right to defer gain upon exercise or any other deferral feature. 
 (i)    Repricing of Options and Stock Appreciation Rights.    Notwithstanding anything in the Plan to the contrary, except as may be specifically authorized
by the Company’s shareholders, at any time when the exercise price of a Option or Stock Appreciation Right is above the Fair Market Value of a Share, the Company shall not reduce the exercise price of such Option or Stock Appreciation Right and
shall not exchange such Option or Stock Appreciation Right for a new Award with a lower (or no) exercise price or for cash The foregoing shall not (i) prevent adjustments pursuant to Section 13 or (ii) apply to grants of Substitute
Awards. 
 (j) One-Time Option Exchange. Notwithstanding any other provision of the Plan to the contrary, upon approval of
the Company’s shareholders, the Committee may provide for, and the Company may implement, a one-time-only option exchange offer, pursuant to which certain outstanding Options could, at the election of the person holding such Options, be
tendered to the Company in exchange for the issuance of a lesser amount of Options with a lower exercise price, provided that such one-time-only option exchange offer is commenced within six months of the date of such shareholder approval.

 7. Terms and Conditions of Options 
 (a)    General.    The Committee, in its discretion, may grant Options to Eligible Individuals and shall determine whether such Options shall be Incentive
Stock Options or Nonqualified Stock Options. Each Option shall be evidenced by an Award Document that shall expressly identify the Option as an Incentive Stock Option or Nonqualified Stock Option, and be in such form and contain such provisions as
the Committee shall from time to time deem appropriate. 
 (b)    Exercise
Price.    The exercise price of an Option shall be fixed by the Committee at the time of grant or shall be determined by a method specified by the Committee at the time of grant. In no event shall the exercise price of an
Option be less than one hundred percent (100%) of the Fair Market Value of a Share on the date of grant; provided, however that the exercise price of a Substitute Award granted as an Option shall be determined in accordance with
Section 409A of the Code and, with respect to Incentive Stock Options, Section 424 of the Code and may be less than one hundred percent (100%) of the Fair Market Value. 

  
 9 

 (c)    Term.    An Option
shall be effective for such term as shall be determined by the Committee and as set forth in the Award Document relating to such Option, and the Committee may extend the term of an Option after the time of grant; provided, however,
that the term of an Option may in no event extend beyond the tenth (10th) anniversary of the date of grant of such Option. 

(d)    Exercise; Payment of Exercise Price.    Options shall be exercised by delivery of a
notice of exercise in a form approved by the Company. Subject to the provisions of the applicable Award Document, the exercise price of an Option may be paid (i) in cash or cash equivalents, (ii) by actual delivery or attestation to
ownership of freely transferable Shares already owned by the person exercising the Option, (iii) by a combination of cash and Shares equal in value to the exercise price, (iv) through net share settlement or similar procedure involving the
withholding of Shares subject to the Option with a value equal to the exercise price or (v) by such other means as the Committee may authorize. In accordance with the rules and procedures authorized by the Committee for this purpose, the
Option may also be exercised through a “cashless exercise” procedure authorized by the Committee from time to time that permits Participants to exercise Options by delivering irrevocable instructions to a broker to deliver promptly to the
Company the amount necessary to pay the exercise price and the amount of any required tax or other withholding obligations or such other procedures determined by the Company from time to time. 

(e)    Incentive Stock Options.    The exercise price per Share of an
Incentive Stock Option shall be fixed by the Committee at the time of grant or shall be determined by a method specified by the Committee at the time of grant, but in no event shall the exercise price of an Incentive Stock Option be less than one
hundred percent (100%) of the Fair Market Value of a Share on the date of grant. No Incentive Stock Option may be issued pursuant to the Plan to any individual who, at the time the Incentive Stock Option is granted, owns stock possessing more
than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries, unless (i) the exercise price determined as of the date of grant is at least one hundred ten percent
(110%) of the Fair Market Value on the date of grant of the Shares subject to such Incentive Stock Option and (ii) the Incentive Stock Option is not exercisable more than five (5) years from the date of grant thereof. No Participant
shall be granted any Incentive Stock Option which would result in such Participant receiving a grant of Incentive Stock Options that would have an aggregate Fair Market Value in excess of one hundred thousand dollars ($100,000), determined as of the
time of grant, that would be exercisable for the first time by such Participant during any calendar year. No Incentive Stock Option may be granted under the Plan after February 28, 2017, the tenth (10th) anniversary of the date on which the Plan was adopted by the
Board. The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code, or any successor provision thereto, as amended from time to time. 

8. Terms and Conditions of Restricted Stock and Restricted Stock Units 
 (a)    Minimum Vesting Provisions.    Restricted Stock or Restricted Stock Units settled in Shares that are granted without any other performance-based
qualification criteria other than the Participant’s continued service shall have a minimum period of restriction of three (3) years. Performance-based grants shall feature a minimum period of restriction of one (1) year. Awards of
Restricted Stock or Restricted Stock Units shall not be deemed to lack a minimum period of restriction solely because they vest before the end of the period in the event of the Participant’s death, disability or retirement, including Early
Retirement, or in the event of a Change of Control. 
 (b)    Restricted
Stock.    The Committee, in its discretion, may grant Restricted Stock to Eligible Individuals. An Award of Restricted Stock shall consist of one or more Shares granted to an Eligible Individual, and shall be subject to the
terms, conditions and restrictions set forth in the Plan and established by the Committee in connection with the Award and specified in the applicable Award Document. Restricted Stock may, among other things, be subject to restrictions on
transferability, vesting requirements or other specified circumstances under which it may be canceled. 

(c)    Restricted Stock Units.    The Committee, in its discretion, may grant Restricted
Stock Units to Eligible Individuals. A Restricted Stock Unit shall entitle a Participant to receive, subject to the terms, conditions and restrictions set forth in the Plan and the applicable Award Document, one or more Shares. Restricted Stock
Units may, among other things, be subject to restrictions on transferability, vesting 

  
 10 

 
requirements or other specified circumstances under which they may be canceled. If and when the cancellation provisions lapse, the Restricted Stock Units shall become Shares owned by the
applicable Participant or, at the sole discretion of the Committee, cash, or a combination of cash and Shares, with a value equal to the Fair Market Value of the Shares at the time of payment. 

9. Stock Appreciation Rights 
 (a)    General.    The Committee, in its discretion, may grant Stock Appreciation Rights to Eligible Individuals. A Stock Appreciation Right shall entitle a
Participant to receive, upon satisfaction of the conditions to payment specified in the applicable Award Document, an amount equal to the excess, if any, of the Fair Market Value on the exercise date of the number of Shares for which the Stock
Appreciation Right is exercised over the grant price for such Stock Appreciation Right specified in the applicable Award Document. The grant price per share of Shares covered by a Stock Appreciation Right shall be fixed by the Committee at the time
of grant or, alternatively, shall be determined by a method specified by the Committee at the time of grant, but in no event shall the grant price of a Stock Appreciation Right be less than one hundred percent (100%) of the Fair Market Value of
a Share on the date of grant; provided, however, that the grant price of a Substitute Award granted as a Stock Appreciation Rights shall be in accordance with Section 409A of the Code and may be less than one hundred percent
(100%) of the Fair Market Value. Payments to a Participant upon exercise of a Stock Appreciation Right may be made in cash or Shares, or a combination of cash and Shares having an aggregate Fair Market Value as of the date of exercise equal to
the excess, if any, of the Fair Market Value on the exercise date of the number of Shares for which the Stock Appreciation Right is exercised over the grant price for such Stock Appreciation Right. The term of a Stock Appreciation Right settled in
Shares shall not exceed ten (10) years. 
 (b)    Stock Appreciation Rights in Tandem with
Options.    A Stock Appreciation Right granted in tandem with an Option may be granted either at the same time as such Option or subsequent thereto. If granted in tandem with an Option, a Stock Appreciation Right shall cover
the same number of Shares as covered by the Option (or such lesser number of Shares as the Committee may determine) and shall be exercisable only at such time or times and to the extent the related Option shall be exercisable, and shall have the
same term as the related Option. The grant price of a Stock Appreciation Right granted in tandem with an Option shall equal the per-share exercise price of the Option to which it relates. Upon exercise of a Stock Appreciation Right granted in tandem
with an Option, the related Option shall be canceled automatically to the extent of the number of Shares covered by such exercise; conversely, if the related Option is exercised as to some or all of the Shares covered by the tandem grant, the tandem
Stock Appreciation Right shall be canceled automatically to the extent of the number of Shares covered by the Option exercise. 
 10. Terms
and Conditions of Performance Stock and Performance Share Units 
 (a)    Minimum Vesting
Provisions.    Performance Stock or Performance Share Units shall feature a minimum period of restriction of one (1) year. Awards of Performance Stock or Performance Share Units shall not be deemed to lack a minimum
period of restriction solely because they vest before the end of the period in the event of the Participant’s death, disability or retirement, including Early Retirement, or in the event of a Change of Control. 

(b)    Performance Stock.    The Committee may grant Performance Stock to Eligible
Individuals. An Award of Performance Stock shall consist of a Target Number of Shares granted to an Eligible Individual based on the achievement of Performance Targets over the applicable Performance Period, and shall be subject to the terms,
conditions and restrictions set forth in the Plan and established by the Committee in connection with the Award and specified in the applicable Award Document. 
 (c)    Performance Share Units.    The Committee, in its discretion, may grant Performance Share Units to Eligible Individuals. A Performance Share Unit
shall entitle a Participant to receive, subject to the terms, conditions and restrictions set forth in the Plan and established by the Committee in connection with the Award and specified in the applicable Award Document, a Target Number of Shares
or cash based upon the achievement of Performance Targets over the applicable Performance Period. At the sole discretion of the Committee, Performance Share Units shall be settled through the delivery of Shares or cash, or a combination of Shares
and cash. 

  
 11 

 11. Other Awards 
 The Committee shall have the authority to specify the terms and provisions of other forms of equity- or cash-based Awards not described above that the Committee determines to be consistent with the
purpose of the Plan and the interests of the Company, which Awards may provide for cash payments or settlement in Shares. To the extent that any such Awards which constitute “full value” awards are to be settled in Shares and are
performance-based, the minimum period of restriction shall be one (1) year. Awards which constitute “full value” awards and are to be settled in Shares that have no performance-based criteria other than the Participant’s
continued service shall have a minimum period of restriction of three (3) years. 
 12. Certain Restrictions 

(a)    Transfers.    No Award shall be transferable other than pursuant to a
beneficiary designation under Section 12(c), by last will and testament or by the laws of descent and distribution or, except in the case of an Incentive Stock Option, pursuant to a domestic relations order, as the case may be;
provided, however, that the Committee may, subject to applicable laws, rules and regulations and such terms and conditions as it shall specify, permit the transfer of an Award, other than an Incentive Stock Option, for no
consideration to a Permitted Transferee. Any Award transferred to a Permitted Transferee shall be further transferable only by last will and testament or the laws of descent and distribution or, for no consideration, to another Permitted Transferee
of the Participant. 
 (b)    Award Exercisable Only by Participant.    During the
lifetime of a Participant, an Award shall be exercisable only by the Participant or by a Permitted Transferee to whom such Award has been transferred in accordance with Section 12(a) above. The grant of an Award shall impose no obligation
on a Participant to exercise or settle the Award. 
 (c)    Beneficiary
Designation.    The beneficiary or beneficiaries of the Participant to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit shall be determined under
the Company’s Group Life Insurance Plan. A Participant may, from time to time, name any beneficiary or beneficiaries to receive any benefit in case of his or her death before he or she receives any or all of such benefit. Each such designation
shall revoke all prior designations by the same Participant, including the beneficiary designated under the Company’s Group Life Insurance Plan, and will be effective only when filed by the Participant in writing (in such form or manner as may
be prescribed by the Committee) with the Company during the Participant’s lifetime. In the absence of a valid designation under the Company’s Group Life Insurance Plan or otherwise, if no validly designated beneficiary survives the
Participant or if each surviving validly designated beneficiary is legally impaired or prohibited from receiving the benefits under an Award, the Participant’s beneficiary shall be the Participant’s estate. 

13. Recapitalization or Reorganization 
 (a)    Authority of the Company and Shareholders.    The existence of the Plan, the Award Documents and the Awards granted hereunder shall not affect or
restrict in any way the right or power of the Company or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or business, any merger or
consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Shares or the rights thereof or which are
convertible into or exchangeable for Shares, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or
otherwise. 
 (b)    Change in Capitalization.    Notwithstanding any provision of
the Plan or any Award Document, the number and kind of Shares authorized for issuance under Section 5 of the Plan, including the maximum number of Shares available under the special limits provided for in Section 5(c), shall be equitably
adjusted in the sole discretion of the Committee in the event of a stock split, reverse stock split, stock dividend, recapitalization, reorganization, partial or complete liquidation, reclassification, merger, consolidation, separation,
extraordinary cash dividend, split-up, spin-off, combination, exchange of Shares, warrants or rights offering to purchase Shares at a price substantially below Fair Market Value, or any other corporate event or distribution of stock or property of
the Company affecting the Shares in order to preserve, but not increase, the benefits or potential benefits intended to be made available under the Plan. In addition, upon the occurrence of any of the foregoing events, the number and kind of Shares
subject to any outstanding 

  
 12 

 
Award and the exercise price per Share (or the grant price per Share, as the case may be), if any, under any outstanding Award shall be equitably adjusted (including by payment of cash to a
Participant) in the sole discretion of the Committee in order to preserve the benefits or potential benefits intended to be made available to Participants. Such adjustments shall be made by the Committee. Unless otherwise determined by the
Committee, such adjusted Awards shall be subject to the same restrictions and vesting or settlement schedule to which the underlying Award is subject. 
 14. Term of the Plan 
 Unless earlier terminated
pursuant to Section 16, the Plan shall terminate on the tenth (10th) anniversary of the Effective Date, except with respect to Awards then outstanding. No Awards may be granted under the Plan after the tenth
(10th) anniversary of the Effective Date. No
Incentive Stock Option may be granted under the Plan after February 28, 2017, the tenth (10th) anniversary of the date on which the Plan was adopted by the Board. To the extent (but only to the extent) required by Section 162(m) of the Code, no Award that is intended to be
“performance-based compensation” under Section 162(m) shall be granted after the first shareholder meeting in 2012 unless the material terms of the performance goal for the Award have been disclosed to and reapproved by shareholders
before that date. 
 15. Effective Date 
 The Plan shall become effective on the Effective Date. 
 16. Amendment and Termination

 Subject to applicable laws, rules and regulations, the Board may at any time terminate or, from time to time, amend,
modify or suspend the Plan; provided, however, that no termination, amendment, modification or suspension (i) will be effective without the approval of the shareholders of the Company if such approval is required under applicable
laws, rules and regulations, including the rules of NYSE and (ii) shall materially and adversely alter or impair the rights of a Participant in any Award previously made under the Plan without the consent of the holder thereof.
Notwithstanding the foregoing, the Board shall have broad authority to amend the Plan or any Award under the Plan without the consent of a Participant to the extent it deems necessary or desirable (a) to comply with, take into account changes
in, or interpretations of, applicable tax laws, securities laws, employment laws, accounting rules and other applicable laws, rules and regulations, (b) to take into account unusual or nonrecurring events or market conditions
(including, without limitation, the events described in Section 13(b)), or (c) to take into account significant acquisitions or dispositions of assets or other property by the Company. For the avoidance of doubt, except for adjustments
pursuant to Section 13, no amendment or modification to the Plan will be effective without the approval of the shareholders of the Company if such amendment or modification would (i) increase benefits to Participants, (ii) increase
the number of Shares reserved for issuance under the Plan or (iii) modify the requirements for participation in the Plan. The Board may, to the extent permitted by applicable law, make a non-exclusive written delegation of its authority to
amend the Plan to the Committee or to one or more officers of the Company. The Board may, to the extent permitted by applicable law, authorize the Committee to make a further delegation of its authority to amend the Plan. 

17. Miscellaneous 

(a)    Tax Withholding.    The Company or a Subsidiary, as appropriate, may require any
individual entitled to receive a payment of an Award to remit to the Company, prior to payment, an amount sufficient to satisfy any applicable tax withholding requirements. In the case of an Award payable in Shares, the Company or a Subsidiary, as
appropriate, may permit or require a Participant to satisfy, in whole or in part, such obligation to remit taxes by the Company withholding Shares that would otherwise be received by such individual or repurchasing Shares that were issued to the
Participant to satisfy the (i) minimum statutory withholding rates within the United States, or (ii) in accordance with local tax jurisdictions outside the United States, as applicable, for any applicable tax withholding purposes, in
accordance with all applicable laws and pursuant to such rules as the Committee may establish from time to time. The Company or a Subsidiary, as appropriate, shall also have the right to deduct from all cash payments made to a Participant
(whether or not such payment is made in connection with an Award) any applicable taxes required to be withheld with respect to such payments. 
 (b)    No Right to Awards or Employment.    No person shall have any claim or right to receive Awards under the Plan. Neither the Plan, the grant of Awards
under the Plan nor any action taken or omitted to be 

  
 13 

 
taken under the Plan shall be deemed to create or confer on any Eligible Individual any right to be retained in the employ of the Company or any Subsidiary or other affiliate thereof, or to
interfere with or to limit in any way the right of the Company or any Subsidiary or other affiliate thereof to terminate the employment of such Eligible Individual at any time. No Award shall constitute salary or contractual compensation for the
year of grant, any later year or any other period of time. Payments received by a Participant under any Award made pursuant to the Plan shall not be included in, nor have any effect on, the determination of employment-related rights or benefits
under any other employee benefit plan or similar arrangement provided by the Company and the Subsidiaries, unless otherwise specifically provided for under the terms of such plan or arrangement or by the Committee. 

(c)    Securities Law Restrictions.    An Award may not be exercised or settled, and no
Shares may be issued in connection with an Award, unless the issuance of such Shares (i) has been registered under the Securities Act of 1933, as amended, (ii) has qualified under applicable state “blue sky” laws (or the Company
has determined that an exemption from registration and from qualification under such state “blue sky” laws is available) and (iii) complies with all applicable foreign securities laws. All certificates for Shares delivered under the
Plan shall be subject to such stock-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 exchange upon which the Shares are
then listed, and any applicable securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

(d)    Section 162(m) of the Code.    The Plan is intended to comply in all
respects with Section 162(m) of the Code; provided, however, that in the event the Committee determines that compliance with Section 162(m) of the Code is not desired with respect to a particular Award (or portion
of an Award), compliance with Section 162(m) of the Code will not be required. In addition, if any provision of this Plan would cause Awards or portions of Awards that are intended to constitute “qualified performance-based
compensation” under Section 162(m) of the Code, to fail to so qualify, that provision shall be severed from, and shall be deemed not to be a part of, the Plan, but the other provisions hereof shall remain in full force and effect.

 (e)    Section 409A of the Code.    Notwithstanding any contrary provision
in the Plan or an Award Document, if any provision of the Plan or an Award Document contravenes any regulations or guidance promulgated under Section 409A of the Code or would cause an Award to be subject to additional taxes, accelerated
taxation, interest and/or penalties under Section 409A of the Code, such provision of the Plan or Award Document may be modified by the Committee without the consent of the Participant in any manner the Committee deems reasonable or necessary.
In making such modifications the Committee shall attempt, but shall not be obligated, to maintain, to the maximum extent practicable, the original intent of the applicable provision without contravening the provisions of Section 409A of the
Code. Moreover, any discretionary authority that the Committee may have pursuant to the Plan shall not be applicable to an Award that is subject to Section 409A of the Code to the extent such discretionary authority would contravene
Section 409A of the Code or the guidance promulgated thereunder. 
 (f)    Awards to Individuals
Subject to Laws of a Jurisdiction Outside of the United States.    To the extent that Awards under the Plan are awarded to Eligible Individuals who are domiciled or reside outside of the United States or to persons who are
domiciled or reside in the United States but who are subject to the tax laws of a jurisdiction outside of the United States, the Committee may adjust the terms of the Awards granted hereunder to such person (i) to comply with the laws,
rules and regulations of such jurisdiction and (ii) to permit the grant of the Award not to be a taxable event to the Participant. The authority granted under the previous sentence shall include the discretion for the Committee to adopt,
on behalf of the Company, one or more sub-plans applicable to separate classes of Eligible Individuals who are subject to the laws of jurisdictions outside of the United States. 

  
 14 

 (g)    Satisfaction of
Obligations.    Subject to applicable law, the Company may apply any cash, Shares, securities or other consideration received upon exercise or settlement of an Award to any obligations a Participant owes to the Company and
the Subsidiaries in connection with the Plan or otherwise, including, without limitation, any tax obligations or obligations under a currency facility established in connection with the Plan. 

(h)    No Limitation on Corporate Actions.    Nothing contained in the Plan shall be
construed to prevent the Company or any Subsidiary from taking any corporate action, whether or not such action would have an adverse effect on any Awards made under the Plan. No Participant, beneficiary or other person shall have any claim against
the Company or any Subsidiary as a result of any such action. 
 (i)    Unfunded
Plan.    The Plan is intended to constitute an unfunded plan for incentive compensation. Prior to the issuance of Shares, cash or other form of payment in connection with an Award, nothing contained herein shall give
any Participant any rights that are greater than those of a general unsecured creditor of the Company. The Committee may, but is not obligated to, authorize the creation of trusts or other arrangements to meet the obligations created under the Plan
to deliver Shares with respect to awards hereunder. 
 (j)    Successors.    All
obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or
otherwise, of all or substantially all of the business and/or assets of the Company. 
 (k)    Application
of Funds.    The proceeds received by the Company from the sale of Shares pursuant to Awards will be used for general corporate purposes. 
 (l)    Award Document.    In the event of any conflict or inconsistency between the Plan and any Award Document, the Plan shall govern and the Award Document
shall be interpreted to minimize or eliminate any such conflict or inconsistency. 

(m)    Headings.    The headings of Sections herein are included solely for convenience of
reference and shall not affect the meaning of any of the provisions of the Plan. 

(n)    Severability.    If any provision of this Plan is held unenforceable, the remainder
of the Plan shall continue in full force and effect without regard to such unenforceable provision and shall be applied as though the unenforceable provision were not contained in the Plan. 

(o)    Expenses.    The costs and expenses of administering the Plan shall be borne by the
Company. 
 (p)    Jurisdiction, Venue and Governing Law.    Except as to matters
of federal law, the Plan and all actions taken thereunder shall be governed by and construed in accordance with the laws of the State of Rhode Island. Any dispute, controversy or claim arising out of or relating to the Plan or any award under the
Plan shall be brought only in a court of competent jurisdiction in the State of Rhode Island, and no other court, agency or tribunal shall have jurisdiction to resolve any such dispute, controversy or claim. 

(q) Compliance with Individual Tax Requirements. The Plan is intended, and shall be interpreted, to provide compensation that is
exempt from Section 409A , or that complies with the applicable requirements of Section 409A. The Company does not warrant that the Plan will comply with Section 409A of the Code with respect to any Participant or with respect to any
payment, however. In no event shall the Company; any Subsidiary; any director, officer, or employee of the Company or a Subsidiary; or any member of the Committee be liable for any additional tax, interest, or penalty incurred by a Participant as a
result of the Plan’s failure to satisfy the requirements of Section 409A of the Code, or as a result of the Plan’s failure to satisfy any other requirements of applicable tax laws. 

  
 15Exhibit 10.1

 Exhibit 10.1 
 Officer Separation Agreement 

 Contents 
  

 

							
			
	 Article 1.
	 	 Establishment, Term, and Purpose
	  	 	1	  
			
	 Article 2.
	 	 Definitions
	  	 	2	  
			
	 Article 3.
	 	 Severance Benefits
	  	 	5	  
			
	 Article 4
	 	 Notice of Termination; Resignation As Officer and Director
	  	 	7	  
			
	 Article 5.
	 	 Restrictive Covenants and Clawback
	  	 	7	  
			
	 Article 6.
	 	 Dispute Resolution and Notice
	  	 	10	  
			
	 Article 7.
	 	 Successors and Assignment
	  	 	11	  
			
	 Article 8.
	 	 Miscellaneous
	  	 	11	  
			
	 Exhibit A
	 	 General Release Agreement
	  	 	15	  

  
 i 

 Officer Separation Agreement 

THIS OFFICER SEPARATION AGREEMENT (“Agreement”) is made, entered into, and effective as of
                     (hereinafter referred to as the “Effective Date”), by and between,
                                        ,
a Michigan corporation, (hereinafter referred to as the “Employer”) and
                                        
(hereinafter referred to as the “Officer”). 
 WHEREAS, the Board of Directors of CMS Energy
Corporation, a Michigan corporation (hereinafter referred to as “CMS Energy Corporation”) has approved entering into severance agreements with certain officers as being necessary and advisable for the success of CMS Energy Corporation; and

 WHEREAS, the Officer is currently employed at
                                        ,
by the Employer in a key management position as
                                        
; 
 NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements of the
Officer and the Employer and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Officer and the Employer, intending to be legally bound, agree as follows: 

 

	Article 1.	Establishment, Term, and Purpose 

 This Agreement will commence on the Effective Date and shall continue in effect until December 31, 2012. However, at December 31, 2012, and if extended, at the end of each additional year
thereafter, the term of this Agreement shall be extended automatically for one (1) additional year, unless the Committee (as defined in Section 2.9 herein) delivers notice six (6) months prior to the end of such term, or extended
term, to the Officer, stating that the Agreement will not be extended. In such case, the Agreement will terminate at the end of the term, or extended term, then in progress. If the term of this Agreement is not extended, the Employer is not
obligated to pay any severance benefits under Section 3.2 herein for a Qualifying Termination that happens after the expiration of the term of this Agreement. Notwithstanding the above, the Officer acknowledges that this Agreement will expire
on the first of the month following his or her 65th
birthday to the extent that it is permitted under Section 631(c) of the Age Discrimination in Employment Act, and the Officer agrees to submit a resignation to the Committee not less than six (6) months prior to his or her 65th birthday to be effective the first of the month following the
Officer’s 65th birthday. In addition, notwithstanding
the above, any obligation of the Employer arising during the term of this Agreement shall survive the termination of this Agreement until paid in full, provided that the Officer has received a Notice of Termination under 2.18 herein. Notwithstanding
the forgoing, the obligations of the Officer under Article 5 herein shall continue in effect and survive the expiration of the term of this Agreement. 

  
 1 

	Article 2.	Definitions 

 Whenever used in this Agreement, the following terms shall have the meanings set forth below: 
  

	 	2.1	 “Affiliate” has the meaning set forth in Rule 12b-2 under of the Exchange Act. 

 

	 	2.2	 “Agreement” means this agreement, including the “whereas” clauses and Exhibit A. 

 

	 	2.3	 “Base Annual Salary” means the Officer’s full annual salary, whether or not any portion thereof is paid on a deferred basis,
at the Effective Date of Termination. It does not include any incentive compensation in any form, bonuses of any type or any other form of monetary or nonmonetary compensation other than salary. 

 

	 	2.4	 “Beneficiary” means the persons or Entities designated by the Officer pursuant to Section 8.5. 

 

	 	2.5	 “Benefit plan clawback provision” has the meaning set forth in Section 5.1(g) herein. 

 

	 	2.6	 “Board” means the Board of Directors of CMS Energy Corporation. 

 

	 	2.7	 “Cause” is determined solely by the Committee in the exercise of good faith and reasonable judgment, and means the occurrence of
any one or more of the following: 

  

	 	(a)	 The continued failure by the Officer to substantially perform his or her duties of employment (other than any such failure resulting from the
Officer’s Disability), after a demand for substantial performance is delivered to the Officer that identifies the manner in which the Committee believes that the Officer has not substantially performed his or her duties, and the Officer has
failed to remedy the situation within a reasonable period of time specified by the Committee which shall not be less than 30 days; or 

  

	 	(b)	 The Officer’s (i) indictment for a felony or (ii) a conviction for a misdemeanor involving fraud, embezzlement, theft,
misappropriation or failure to be truthful; or 

  

	 	(c)	 The Officer’s (i) gross negligence, (ii) failure or refusal, on request or demand by the Employer or any governmental authority, to
provide testimony to or cooperate with any governmental regulatory authority, or any other similar non-cooperation by the Officer, (iii) willful engaging in misconduct materially or demonstrably injurious to the business or reputation (by
adverse publicity or otherwise) of CMS Energy Corporation or its Affiliates, monetarily or otherwise, or (iv) violation of a material provision of the Employer’s code of conduct and code of ethics, including but not limited to violations
of the Employer’s policies relating to substance abuse and discrimination; or 

  
 2 

	 	(d)	 The Officer’s breach of the terms of Article 5 herein. 

However, for purposes of clause (c), no act or failure to act on the Officer’s part shall be considered
“willful” if done, or omitted to be done, by the Officer (i) in good faith and (ii) with reasonable belief that his or her action or omission was in the best interest of CMS Energy Corporation or its Affiliates. 

 

	 	2.8	 “Code” means the United States Internal Revenue Code of 1986, as amended, and any successors thereto. 

 

	 	2.9	 “Committee” means the Compensation and Human Resources Committee of the Board or any other committee appointed by the Board to
perform the functions of the Compensation and Human Resources Committee. The Committee is responsible for the administration of this Agreement and shall interpret and apply the provisions of this Agreement. Notwithstanding the above, the Committee
may obtain and rely upon advice from consultants, attorneys and advisors of its choice in making determinations concerning this Agreement. 

  

	 	2.10	 “Direct Competitor” has the meaning set forth in Section 5.1(a) herein. 

 

	 	2.11	 “Disability” means a determination by the insurer or third-party administrator under an individual and/or group disability policy
covering the Officer that the Officer is totally and permanently disabled as defined in the policy, or if there is no such coverage, then a disability that satisfies the requirements of total and permanent disability under Section 22(e) of the
Code. 

  

	 	2.12	 “Effective Date” means the date of this Agreement set forth in the first paragraph of this Agreement. 

 

	 	2.13	 “Effective Date of Termination” means the first day of any month following the date on which a Qualifying Termination occurs, as
provided under Section 2.21 herein, which triggers the payment of Severance Benefits hereunder. Such first day of such month shall be specified in the Notice of Termination If the Officer is otherwise eligible for retirement, he or she may
elect to retire on the Effective Date of Termination without waiving Severance Benefits to which he or she may be entitled pursuant to this Agreement. 

  

	 	2.14	 “Employer” means the corporation named in the first paragraph of this Agreement as the Employer. 

 

	 	2.15	 “Entity” means any corporation, partnership, limited liability company, joint venture, sole proprietorship or firm.

  

	 	2.16	 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended. 

  
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	 	2.17	 “Exempt Person” has the meaning set forth in Section 5.1(b) herein. 

 

	 	2.18	 “Notice of Termination” shall be provided for a Qualifying Termination and shall mean a notice which shall provide a specific date
(i) on which a Qualifying Termination will occur and (ii) designated as the Effective Date of Termination. 

  

	 	2.19	 “Officer” means the individual named in the first paragraph of this Agreement. 

 

	 	2.20	 “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and
14(d) thereof, including a “group” as provided in Section 13(d). 

  

	 	2.21	 “Qualifying Termination” means a termination (not involving death, Disability, Retirement or Cause), pursuant to a Notice of
Termination delivered to the Officer by the Employer or pursuant to a request that the Officer submit a resignation as an officer and employee (other than as provided for in Article 1 herein). 

 

	 	2.22	 “Release” means the signed release of claims and resignation of all positions as an officer or director of the Employer and
any company affiliated with Employer, which shall be substantially in the form attached hereto as Exhibit A. 

  

	 	2.23	 “Section 409A” means Section 409A of the Code and applicable Treasury Regulations, and their successors.

  

	 	2.24	 “SERP” means the retirement plan applicable to the Officer and entitled “Supplemental Executive Retirement Plan for the
Employees of CMS Energy/Consumers Energy Company” dated December 1, 2007, as amended or under the successor or replacement of such retirement plan if it is no longer in effect. [For Officers covered under the defined contribution
supplemental executive retirement plan, the following definition shall be used: “means the retirement plan applicable to the Officer and entitled “Defined Contribution Supplemental Executive Retirement Plan” dated December 1,
2007, as amended or under the successor or replacement of such retirement plan if it is then no longer in effect.]. 

  

	 	2.25	 “Severance Benefits” has the meaning set forth in Article 3 herein. 

  
 4 

	Article 3.	Severance Benefits 

  

	 	3.1	 Severance Benefits. 

  

	 	(a)	 Right to Severance Benefits. The Officer shall be entitled to receive from the Employer Severance Benefits, as described in Section 3.2
herein, if a Qualifying Termination of the Officer’s employment satisfying the definition contained in Section 2.21 has occurred. Benefits received by the Officer under the pension plan and SERP (or any replacement or successor plans
thereto) shall not be used as an offset to the level of Severance Benefits owed to the Officer. The Effective Date of Termination will be the date the Officer experiences a separation from service with the service recipient, as those terms are
defined under Section 409A. 

  

	 	(b)	 No Severance Benefits. The Officer shall not be entitled to receive Severance Benefits under this Agreement if the Officer’s employment
with the Employer ends for reasons other than a Qualifying Termination. 

  

	 	(c)	 Waiver and Release. The Officer shall sign and return to the Employer a Release to be eligible for payment of Severance Benefits under
Section 3.2 herein. Attached hereto as Exhibit A and incorporated by reference in this Agreement is the form of release the Officer shall sign and return to qualify for Severance Benefits under this Agreement. No payment will be made until the
seven (7) day right to revocation of the Release has elapsed. 

  

	 	(d)	 No Duplication of Severance Benefits. If the Officer receives Severance Benefits, any other severance benefits received by employees not
covered by this Agreement, if any, to which the Officer is entitled shall be reduced on a dollar-for-dollar basis with respect to Severance Benefits paid pursuant to this Agreement so that there is no duplication of severance benefits.

  

	 	3.2	 Description of Severance Benefits. In the event the Officer becomes entitled to receive Severance Benefits as provided in Section 3.1(a)
herein, the Employer (subject to Section 3.1(c)) shall provide the Officer with the following: 

  

	 	(a)	 A lump-sum amount paid within thirty (30) calendar days following the Effective Date of Termination equal to the sum of the Officer’s
unpaid salary, unreimbursed business expenses, and unreimbursed allowances owed to the Officer through and including the Effective Date of Termination. In the event the Officer is terminated following a performance year under the Officer Incentive
Compensation Plan but prior to the payment of a bonus for such year, the Officer will not forfeit such bonus but shall receive any payment when the same is paid to active employees. To the extent, if any, the Officer has elected to defer any bonus,
any payments due under this provision corresponding to the amount of the deferral shall be paid or deferred in accordance with the terms elected by the Officer with respect to said plan under which the bonus is deferred.

  
 5 

	 	(b)	 A lump-sum amount, paid within thirty (30) calendar days following return of the signed Release (but not prior to the lapse of the seven
(7) day revocation period), which shall be provided not more than fifteen (15) days after delivery to the Officer of a Notice of Termination, equal to [insert applicable amount based upon salary grade from the following: for E-3 through
E-7 1.50 times Base Annual Salary; for E-8 and above 1.75 times Base Annual Salary]. 

  

	 	(c)	 The Officer’s termination of employment pursuant to the Notice of Termination shall be treated as a resignation under the applicable bonus plan
and the Officer shall be entitled to consideration for a pro-rata bonus to the extent provided for in the bonus plan. 

  

	 	(d)	 Outstanding stock options and stock appreciation rights previously granted by the Committee to the Officer pursuant to Article VI of the plan
entitled “CMS Energy Corporation Performance Incentive Stock Plan,” dated December 3, 1999, as amended, or any replacement thereof, shall be treated in accordance with applicable provisions of the plan. Restricted Stock awarded to the
Officer shall be forfeited, except for the pro-rata portion of any such outstanding grant equal to a fraction, the numerator of which is the number of full and partial months of service from the date of grant to the termination date and the
denominator of which is the time duration of the award until vesting as of the grant date, expressed in months. Any shares that are not forfeited shall be paid out if subject only to a time based vesting requirement, and otherwise shall continue to
be subject to any applicable performance based vesting requirement and shall be paid out in the future in conformance therewith. 

  

	 	(e)	 If the Officer is a participant in the SERP, the Officer’s retirement benefits under the SERP will become fully vested as of the Effective Date
of Termination and shall not be subject to further vesting requirements or to any forfeiture provisions. 

  

	 	(f)	 For purposes of (1) the Officer’s retirement, (2) the SERP and (3) benefits not expressly discussed in clauses (a) through
(e) of this Section 3.2, but which are available to the general employee population or available only to officers and implemented with contracts with third parties, the benefit plan descriptions covering all employees and the retirement
plan and SERP plan descriptions and contracts with third parties covering officers in place at the time of the Effective Date of Termination control the Officer’s treatment under those plans and contracts. All rights of the Officer to
indemnification as an officer or an employee will be determined under any applicable indemnification policy in effect at the time the matter giving rise to the need for indemnification is alleged to have occurred. For any other benefits only
available to officers, if those benefits are not expressly discussed in clauses (a) through (e) of this Section 3.2, those benefits are terminated for the Officer as of the Effective Date of Termination. 

  
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	Article 4.	Notice of Termination; Resignation as Officer and Director 

  

	 	4.1	 Any Qualifying Termination of the Officer’s employment shall be communicated by a Notice of Termination which shall provide a specific
date (i) on which a Qualifying Termination has occurred or will occur, and (ii) that is designated as the Effective Date of Termination. 

  

	 	4.2	 On or before the Effective Date of Termination, the Officer shall submit to the Employer his or her written resignation as (i) an
officer of the Employer and of all Affiliates and (ii) a member of the board of directors of the Employer and of all Affiliates. 

  

	Article 5.	Restrictive Covenants and Clawback 

  

	 	5.1	 The following shall apply after any termination (including without limitation due to retirement, disability or resignation for any reason) of
the Officer’s employment: 

  

	 	(a)	 Noncompetition: During the term of employment and for a period of twelve (12) months after the date of the termination of the
Officer’s employment, the Officer shall not: (i) directly or indirectly, separately or acting or conspiring with any Person or Entity whether or not employed by CMS Energy Corporation or any of its Affiliates, engage in or prepare to
engage in or have a financial or other interest in any business which is a Direct Competitor (as defined below); or (ii) serve as an employee, agent, partner, member, shareholder, director or consultant, or in any other capacity whatsoever
participate, engage, or have a financial or other interest in, any business which is a Direct Competitor; provided, however, that notwithstanding anything to the contrary contained in this Agreement, the Officer may own up to two percent
(2%) of the outstanding shares of the capital stock of an Entity whose shares are registered under Section 12 of the Exchange Act. 

 A “Direct Competitor” means an Entity engaged in the business of (1)(a) selling electric power or natural gas at retail or wholesale within the State of Michigan, or (b) selling
electric power at wholesale within the market area in which an electric generating plant owned by an Affiliate of CMS Enterprises Company is located or (c) storing natural gas within the State of Michigan or (d) generating, transmitting or
distributing electricity or natural gas within the State of Michigan, or (2) developing an electric generating plant within the State of Michigan or a market area in which an electric generating plant owned by an Affiliate of CMS Enterprises
Company is located. A “Direct Competitor” also means any Entity that the Committee designates as a Direct Competitor, prior to the termination date specified in a Notice of Termination, that it believes, in good faith, is a competitor to
CMS Energy Corporation or its Affiliates. 

  
 7 

	 	(b)	 Confidentiality. The Employer has advised the Officer and the Officer acknowledges that it is the policy of CMS Energy Corporation and its
Affiliates to maintain as secret and confidential all Protected Information (as defined below), and that Protected Information has been and will be developed at substantial cost and effort to CMS Energy Corporation and its Affiliates. The Officer
shall not at any time, directly or indirectly, divulge, furnish, or make accessible to any person or Entity (other than as may be required in the regular course of the Officer’s employment), nor use in any manner, either during the term of
employment or after termination, for any reason, any Protected Information, or cause any such information of CMS Energy Corporation and its Affiliates to enter the public domain. 

“Protected Information” means trade secrets, confidential and proprietary business information of CMS Energy
Corporation and its Affiliates and any other information of CMS Energy Corporation and its Affiliates, including, but not limited to, customer lists (including potential customers), sources of supply, processes, plans, materials, pricing
information, internal memoranda, marketing plans, internal policies, and products and services which may be developed from time to time by CMS Energy Corporation and its Affiliates and their agents or employees, including the Officer; provided,
however, that information that is in the public domain (other than as a result of a breach of this Agreement), approved for release by CMS Energy Corporation or its Affiliates or lawfully obtained from third parties who are not bound by a
confidentiality agreement with CMS Energy Corporation or its Affiliates, is not Protected Information. Notwithstanding the foregoing, nothing in this subsection is to be construed as prohibiting the Officer from providing information to a state or
federal agency, legislative body or one of its committees or a court with jurisdiction when the Officer is legally required to do so, provided that promptly after being notified of such requirement the Officer notifies the Employer, or from
disclosing Protected Information to the Officer’s spouse, attorney and/or his or her personal tax and financial advisors as reasonably necessary or appropriate to advance the Officer’s tax, financial and other personal planning (each an
“Exempt Person”), provided, however, that any disclosure or use (beyond the specific purpose for which it was released to such Exempt Person) of Protected Information by an Exempt Person shall be deemed to be a breach of this
Section 5.1(b) by the Officer. 
  

	 	(c)	 Nonsolicitation. During the term of employment and for a period of twelve (12) months after the date of the termination of the
Officer’s employment, the Officer shall not: (i) employ or retain or solicit for employment or arrange to have any other person or Entity employ or retain or solicit for employment or otherwise participate in the employment or retention of
any person who (x) is an employee or consultant of CMS Energy Corporation or its Affiliates or (y) was an employee or consultant of CMS Energy Corporation or its Affiliates at any time during the twelve (12) month period immediately
preceding the date of the occurrence of the activity described in clause (i); or (ii) solicit suppliers or customers of CMS Energy Corporation or its Affiliates or induce any such person to terminate their relationship with them.

  
 8 

	 	(d)	 Cooperation. The Officer shall fully and unconditionally cooperate with CMS Energy Corporation and its Affiliates and their attorneys in
connection with any and all lawsuits, claims, investigations, or similar proceedings that have been or could be asserted at any time arising out of or related in any way to the Officer’s employment or activities on behalf of CMS Energy
Corporation and its Affiliates. 

  

	 	(e)	 Nondisparagement. The provisions of this Section 5.1(e) apply at all times following the termination of the Officer’s employment
for any reason: The Officer shall not disparage CMS Energy Corporation or its Affiliates or their officers and/or directors, or otherwise make comments harmful to their reputations. The Officer further shall not testify or act in any capacity as a
paid or unpaid expert witness, advisor or consultant or otherwise on behalf of any person, or Entity that has or may have any claim, demand, action, suit, cause of action, or judgment against CMS Energy Corporation or its Affiliates, or in any
regulatory agency proceeding in a manner adverse to their interests. The executive officers and directors of CMS Energy Corporation and its Affiliates shall not disparage the Officer or otherwise make comments harmful to the Officer’s
reputation. Notwithstanding the foregoing, nothing in this Section 5.1(e) prohibits the Officer or representatives of CMS Energy Corporation or its Affiliates from testifying truthfully under oath in any judicial, administrative or legislative
proceedings or in any arbitration, mediation or other similar proceedings where his or her testimony has been legally compelled or pursuant to Section 6.1 herein. 

 

	 	(f)	 Return of the Employer Property. The Officer agrees that upon termination of employment he or she shall return all property of the Employer
or any Affiliate now in his or her possession. 

  

	 	(g)	 Clawback Relating to Illegal Acts or Restatement of Corporation’s Financial Statements. If, due to a restatement of CMS Energy
Corporation’s or an Affiliate’s publicly disclosed financial statements or otherwise, the Officer is subject to an obligation to make a repayment to CMS Energy Corporation or an Affiliate pursuant to a clawback provision contained in a
SERP Plan, the PISP, a bonus plan or other benefit plan (a “benefit plan clawback provision”) of CMS Energy Corporation or its Affiliate, it shall be a precondition to the obligation of Employer to make any payment under this Agreement,
that the Officer fully repay to CMS Energy Corporation or its Affiliate any amounts owing under such benefit plan clawback provision. The payments under this Agreement are further subject to any provision of law which may require the Officer
to forfeit or repay any benefits provided hereunder that are based upon a bonus or incentive compensation, or equity compensation, in the event of a restatement of CMS Energy Corporation’s or an Affiliate’s publicly disclosed

  
 9 

	 	 
accounting statements or other illegal act, whether required by Section 304 of the Sarbanes-Oxley Act of 2002, federal securities law (including any rule or regulation promulgated by the
Securities and Exchange Commission), any state law, or any rule or regulation promulgated by the applicable listing exchange or system on which CMS Energy Corporation or an Affiliate lists its traded shares. To the degree any benefits hereunder are
not otherwise forfeitable pursuant to the preceding sentences of this Section 5.1(g), the Board or Committee may require the Officer to repay to Employer any amounts paid under this Agreement that are computed on the basis of an actual bonus
under a bonus plan applicable to the Officer, if the Board or Committee determines, on the basis of the clawback provisions in the bonus plan under which such bonus payments are made, that the Officer would have been required to make a repayment of
such bonus. The rights set forth in this Agreement concerning the right of CMS Energy Corporation, an Affiliate and/or Employer to a clawback are in addition to any other rights to recovery or damages available at law or equity and are not a
limitation of such rights. 

  

	 	(h)	 Enforcement. The parties to this Agreement acknowledge that the services of the Officer are unique and extraordinary and that a breach of any
provision of this Section 5.1 will cause irreparable harm to the Employer. Accordingly, the Officer agrees that notwithstanding the provisions of Section 6.1 herein, the Employer has the right to seek to enforce the noncompete and other
restrictive covenants contained in this Section 5.1 in a court of law or equity and the Officer hereby consents to the imposition of an injunction or a temporary restraining order or such other equitable relief as necessary to protect the
rights of the Employer under this Agreement. 

  

	Article 6.	Dispute Resolution and Notice 

  

	 	6.1	 Dispute Resolution. Any dispute or controversy between the Officer and the Employer arising under or in connection with this Agreement (other
than Article 5 of this Agreement) shall first be submitted in writing to the Committee for attempted resolution. If such submission does not result in mutually agreeable resolution within sixty (60) days thereof, such dispute or controversy
shall be settled by final and binding arbitration. Such arbitration shall be conducted before a single arbitrator selected by the parties to be conducted in Jackson, Michigan. The arbitration will be conducted in accordance with the rules of the
American Arbitration Association then in effect and be finished within ninety (90) days after the selection of the arbitrator, and if the Officer and the Employer are unable to agree within thirty (30) days on such a single arbitrator,
such Association shall select such arbitrator. The arbitrator shall not have authority to fashion a remedy that includes consequential, exemplary or punitive damages of any type whatsoever, and the arbitrator is hereby prohibited from awarding
injunctive relief of any kind, whether mandatory or prohibitory. Judgment may be entered on the award of the arbitrator in any court having competent jurisdiction. The Officer and the Employer shall share equally the cost of the arbitrator and of
conducting the arbitration proceeding, but each party shall bear the cost of its own legal counsel and experts and 

  
 10 

	 	 
other out-of-pocket expenditures. Notwithstanding the foregoing, the Officer and the Employer acknowledge that the enforcement of the Employer’s rights under Article 5 herein are unique and
agree that the Employer is not limited to the remedy of arbitration but may elect the remedy of its choice including filing suit in a court of law or equity and the Officer agrees that the Employer has the right to obtain an injunction and/or a
temporary restraining order to protect its rights. 

  

	 	6.2	 Notice. Any notices, requests, demands, or other communications provided for by this Agreement shall be in writing and sent by registered or
certified mail to the Officer at the address set forth beneath his or her signature on the last page of this Agreement or, to the Employer, at One Energy Plaza, Jackson, Michigan 49201, Attention: Corporate Secretary. Notices, requests, demands or
other communications may also be delivered by messenger, courier service or other electronic means and are sufficient if actually received by the party for whom it is intended. 

 

	Article 7.	Successors and Assignment 

  

	 	7.1	 Successors. Any successor (whether direct or indirect, by purchase, merger, reorganization, consolidation, acquisition of property or stock,
liquidation, or otherwise) to the business of CMS Energy Corporation or purchaser of all or substantially all of the assets of CMS Energy Corporation shall be required to expressly assume and agree to perform under this Agreement in the same manner
and to the same extent that the Employer would be required to perform if no such succession had taken place. This Agreement shall be binding upon any successor in accordance with the operation of law. 

 

	 	7.2	 Assignment by the Officer. This Agreement shall inure to the benefit of and be enforceable by the Officer’s personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees. If the Officer dies while any amount would still be payable to him or her hereunder had he or she continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Officer’s Beneficiary. If the Officer has not named a Beneficiary, then such amounts shall be paid to the Officer’s devisee, legatee, or other
designee, or if there is no such designee, to the Officer’s estate. 

  

	Article 8.	Miscellaneous 

  

	 	8.1	 Employment Status. The employment of the Officer by the Employer is “at will” and, subject to the Officer’s rights pursuant to
this Agreement or any separate written change in control agreement entered into by the Officer and CMS Energy Corporation/or the Employer, may be terminated by either the Officer or the Employer at any time, subject to applicable law. Further, the
Officer has no right to be an officer of CMS Energy Corporation or any of its Affiliates and serves as an officer entirely at the discretion of the Board. 

  
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	 	8.2	 Entire Agreement. This Agreement supersedes any prior agreements or understandings, oral or written, between the parties hereto, with respect
to the subject matter hereof, and this Agreement (including the “whereas” clauses and Exhibit A) constitutes the entire agreement of the parties with respect thereto. Without limiting the generality of the foregoing sentence, this
Agreement completely supersedes, cancels, voids and renders of no further force and effect any and all other employment agreements, and other similar agreements, communications, representations, promises, covenants and arrangements, whether oral or
written, between the Employer and the Officer and between the Officer and CMS Energy Corporation or any of its Affiliates that may have taken place or been executed prior to the Effective Date and which may address the subject matters contained
herein. Notwithstanding the above, this Agreement is supplemental to and does not replace any written separation agreement entered into between the parties that is contingent on a change in control, and if change in control benefits under the
separate agreement that are contingent on a change in control, as defined in the separate written change in control agreement, are paid or payable to the Officer, then this Agreement shall be void, null and of no effect, and no Severance Benefits
shall be paid hereunder. 

  

	 	8.3	 Severability. In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason,
the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect, and the parties shall negotiate in good faith to accomplish the purposes and amend this Agreement so as, to the extent possible under
the law, to carry out the original intent of the provision or portion determined to be invalid or unenforceable. 

  

	 	8.4	 Tax. The Employer may withhold from any benefits payable under this Agreement any authorized deductions and all federal, state, city, or
other taxes as may be required pursuant to any law or governmental regulation or ruling. Notwithstanding anything contained in this Agreement to the contrary, if the Executive is a “specified employee” (determined in accordance with
Section 409A and Treasury Regulation Section 1.409A-3(i)(2)) as of the Effective Date of Termination, and if any payment, benefit or entitlement provided for in this Agreement or otherwise both (i) constitutes a “deferral of
compensation” within the meaning of Section 409A and (ii) cannot be paid or provided in a manner otherwise provided herein or otherwise without subjecting the Executive to additional tax, interest and/or penalties under
Section 409A, then any such payment, benefit or entitlement that is payable during the first 6 months following the Effective Date of Termination shall be paid or provided to the Executive in a lump sum cash payment to be made on the earlier of
(x) the Executive’s death or (y) the first day that is more than six (6) months immediately following the Effective Date of Termination (or, if different, the date that qualifies as a “separation from service” (as such
term is used under Section 409A)). Each payment to be made under this Agreement shall be treated as a separate payment for purposes of Section 409A. Notwithstanding anything contained in this Agreement to the contrary, the Employer shall
have the unilateral right to amend this Agreement at any time for the sole purpose of complying with Section 409A. 

  
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	 	8.5	 Beneficiaries. The Officer may designate one (1) or more persons or Entities as the primary and/or contingent beneficiaries of any
amounts to be received under this Agreement. Such designation must be in the form of a signed writing on a form provided by the Employer. The Officer may make or change such designation at any time. 

 

	 	8.6	 Payment Obligation Absolute. Except as otherwise provided in this Agreement and as provided in the last sentence of this paragraph, the
Employer’s and CMS Energy Corporation’s obligations to make the payments and provide the benefits to the Officer specified herein shall be absolute and unconditional, and shall not be affected by any circumstances, including, without
limitation, any offset, counterclaim, defense, or other right which the Employer, CMS Energy Corporation or any of its Affiliates may have against the Officer or anyone else. Except as otherwise provided in this Agreement, all amounts payable by the
Employer hereunder shall be paid without notice or demand. Each and every payment made hereunder by the Employer shall be final, but subject to the provisions of the next sentence. If the Officer should seek to litigate this Agreement or the subject
matters addressed herein in a state or federal court, subject to the requirements of Section 409A, to the extent applicable, (i) the Officer at least ten (10) days prior to filing in court shall tender back to the Employer all cash
consideration paid to the Officer under this Agreement prior thereto and (ii) any payments then or thereafter due to the Officer under this Agreement shall be withheld until said litigation is finally resolved. 

The Officer shall not be obligated to seek other employment in mitigation of the amounts payable or arrangements made
under any provision of this Agreement, and the obtaining of any such other employment, provided such other employment is not a violation of the provisions of Article 5 herein, shall in no event effect any reduction of the Employer’s obligations
to make the payments and arrangements required to be made under this Agreement. 
  

	 	8.7	 Contractual Rights to Benefits. Subject to approval and ratification by the Committee, this Agreement establishes and vests in the Officer a
contractual right to the benefits to which he or she is entitled hereunder. However, nothing herein contained shall require or be deemed to require, or prohibit or be deemed to prohibit, the Employer to segregate, earmark, or otherwise set aside any
funds or other assets, in trust or otherwise, to provide for any payments to be made or required hereunder. 

  

	 	8.8	 Modification. Except as otherwise provided in this Agreement, this Agreement shall not be varied, altered, modified, canceled, changed, or in
any way amended except by mutual agreement of the parties in a written instrument executed by the parties hereto or their legal representatives, provided however, that the consent of the Employer shall only be given with the prior approval of the
Committee and no person acting on behalf of the Employer, or purporting to do so, shall have any authority to do so without such prior approval. 

  
 13 

	 	8.9	 Counterparts and Headings. This Agreement may be executed in one (1) or more counterparts, each of which shall be deemed to be an
original, but all of which together will constitute one and the same Agreement. Signatures transmitted via facsimile shall be regarded by the parties as original signatures. The headings of the various sections and subsections of this Agreement
shall not limit or affect the terms and provisions of the Agreement. 

  

	 	8.10	 Representation. Each of the Officer and the Employer represents and warrants that this Agreement is a legal, valid and binding agreement,
enforceable in accordance with its terms and does not conflict with any other agreement to which he, she or it is a party. The Officer acknowledges that he or she has had an opportunity to consult with his or her legal and financial advisors before
executing and delivering this Agreement, and has read and understands this Agreement. 

  

	 	8.11	 Applicable Law. This Agreement shall be governed and construed in accordance with the laws of the State of Michigan, without regard to its
conflicts of laws principles. 

 IN WITNESS WHEREOF, the parties have executed this Agreement
as of this      day of             , 200    . 

 

									
	 CMS ENERGY CORPORATION or Employer
	 		 	 OFFICER:

					
	 By:
	 	  
	 		 	 Signature:
	 	  

	 Its:
	 	  
	 		 	 Printed Name:
	 	  

					
		 		 		 	 Address:
	 	  

					
		 		 		 		 	  

  
 14 

 EXHIBIT A 
 GENERAL RELEASE AGREEMENT 
 This General Release Agreement
(“Agreement”), made as of the      day of             , 20    , pursuant to Michigan law, among
                                        
(the “Officer”), an individual, and                             , a Michigan corporation
(the “Employer”) is a general release of claims against the Employer, CMS Energy Corporation and all of their subsidiaries and affiliates (collectively the “CMS Companies”). 

WHEREAS, the Officer’s employment with the Employer [will end] [has ended] on
            , 20     and [he] [she] is eligible for the receipt of severance benefits under an Officer Separation Agreement (the “Separation
Agreement”), provided that the Officer first executes and delivers to the Employer a prescribed form of general release attached as Exhibit A to the Separation Agreement; 
 WHEREAS, terms used in this Agreement that are also used and defined in the Separation Agreement shall have the same definition in this Agreement if not separately and differently defined herein,
such terms being recognizable by initial caps; and 
 WHEREAS, this General Release Agreement satisfies the condition for
receipt of Severance Benefits under Article 3 of the Separation Agreement. 
 NOW THEREFORE, in consideration of the
covenants undertaken and the releases contained in this Agreement, the Officer and the Employer agree as follows: 
  

	1.	 MONETARY AND OTHER CONSIDERATION 

 In consideration for the releases and the other covenants in this Agreement, the Officer agrees and reaffirms that the only monetary and other consideration to which [he] [she] is entitled due to the
termination of employment is that provided to the Officer pursuant to the Separation Agreement, as set forth on Attachment A attached to this Agreement. 
  

	2.	 RETURN OF COMPANY PROPERTY 

 By signing this Agreement, the Officer represents and warrants that [he] [she] has returned to the Employer all of its property and all the property of any of the CMS Companies which the Officer had in
[his] [her] possession. 
  

	3.	 GENERAL RELEASE AND DISCHARGE BY OFFICER 

 In consideration of the payments and commitments made by the Employer to the Officer (described in Section 1 above), the Officer on [his] [her] own behalf, and [his] [her] descendants, ancestors,
dependents, heirs, executors, administrators, assigns, and successors, 

  
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and each of them, hereby covenants not to sue and fully releases and discharges the Employer, CMS Energy Corporation, and all of their subsidiaries and affiliates, past and present, and each of
them as well as its and their trustees, directors, officers, agents, attorneys, insurers, employees, stockholders, representatives, assigns, and successors, past and present, and each of them, hereinafter together and collectively referred to as
“Releasees,” with respect to and from any and all claims, wages, demands, rights, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments,
orders and liabilities of whatever kind or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which the Officer now owns or holds or has at any time on or prior to the
Effective Date of Termination owned or held as against said Releasees, arising out of or in any way connected with the Officer’s employment relationship with the Employer or the Releasees, or the Officer’s termination of employment or any
other transactions, occurrences, acts or omissions or any loss, damage or injury whatsoever, known or unknown, suspected or unsuspected, resulting from any act or omission by or on the part of said Releasees, or any of them, committed or omitted
prior to the date of this Agreement, including but not limited to, claims based on any express or implied contract of employment which may have been alleged to exist between the Employer, the Releasees and the Officer, or under the Age
Discrimination in Employment Act of 1967 (“ADEA”), 29 U.S.C. §621, et seq, as amended by the Older Workers Benefit Protection Act of 1990, Title VII of the Civil Rights Act of 1964, 42 U.S.C. §2000e, et seq, as amended, the
Civil Rights Act of 1991, P. L. 102-1 66, the Elliott-Larsen Civil Rights Act, MCLA §37.2101, et seq, the Rehabilitation Act of 1973, 29 U.S.C. §701, et seq, as amended, the Americans with Disabilities Act of 1990, 42 U.S.C.
§12206, et seq, as amended, or the Persons with Disabilities Civil Rights Act, MCLA §37.1101, et seq, as amended, or any other federal, state or local law, rule, regulation or ordinance, and claims for severance pay, sick leave, holiday
pay, and any other fringe benefit provided to the Officer by the Employer or Releasees except for those rights preserved by Section 3.2(f) of the Separation Agreement. Nothing in this Agreement is intended to, nor do the Officer and the
Employer, waive the right to enforce the Separation Agreement. 
  

	4.	 REVOCATION OF RELEASE BY OFFICER 

 The Officer specifically acknowledges for purposes of this Agreement that: (1) the Officer has been advised by the Employer to consult with an attorney prior to signing this Agreement; (2) the
Officer has been given [21] [45] days to consider the release; and (3) the Officer may revoke this Agreement within 7 days of signing this Agreement. In the event of such a revocation, the Officer will repay to Employer all funds already
received under the Separation Agreement and waive [his] [her] rights to receive any additional funds under the Separation Agreement. Such a revocation, to be effective, must be in writing and either (i) postmarked within 7 days of execution of
this Agreement and addressed to the attention of                     , CMS Energy Corporation, at One Energy Plaza, Jackson, Michigan 49201,
or (ii) hand delivered to                      within 7 days of execution of this Agreement. The Officer understands that if revocation
is made by mail, mailing by certified mail, return receipt requested, is recommended to show proof of mailing. IF THE OFFICER SIGNS THIS AGREEMENT PRIOR TO THE END OF THE [21] [45] DAY PERIOD, THE OFFICER CERTIFIES THAT THE OFFICER

  
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KNOWINGLY AND VOLUNTARILY DECIDED TO SIGN THE AGREEMENT AFTER CONSIDERING IT LESS THAN [21] [45] DAYS AND [HIS] [HER] DECISION TO DO SO WAS NOT INDUCED BY THE EMPLOYER THROUGH FRAUD,
MISREPRESENTATION OR A THREAT TO WITHDRAW OR ALTER THE OFFER THE SEVERANCE BENEFITS PAYABLE UNDER THE SEPARATION AGREEMENT PRIOR TO THE EXPIRATION OF THE [21] [45] DAY TIME PERIOD. 

THIS AGREEMENT AND THE RELEASE CONTAINED IN THIS AGREEMENT SHALL BECOME EFFECTIVE AND ENFORCEABLE ONLY AFTER THE REVOCATION PERIOD HAS
PASSED. 
  

	5.	 GOVERNING LAW AND SEVERABILITY OF INVALID PROVISIONS 

This Agreement will be governed by and construed in accordance with the laws of the State of Michigan, without regard to its conflicts of
law principles. In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and
effect, and the parties shall negotiate in good faith to accomplish the purposes and amend this Agreement so as, to the extent possible under the law, to carry out the original intent of the provision or portion determined to be invalid or
unenforceable. 
  

	6.	 FULL UNDERSTANDING AND VOLUNTARY ACCEPTANCE 

 In entering this Agreement, the Employer and the Officer represent that they have had the opportunity to consult with attorneys of their own choice, that the Employer and the Officer have read the terms
of this Agreement and that those terms are fully understood and voluntarily accepted by them. 
  

	7.	 DISPUTE RESOLUTION 

 The provisions of Article 6, Dispute Resolution and Notice, of the Separation Agreement, shall apply to and govern any dispute arising under this Agreement. 

 

	8.	 MODIFICATION 

 Except as otherwise provided in this Agreement, this Agreement shall not be varied, altered, modified, canceled, changed, or in any way amended except by mutual agreement of the parties in a written
instrument executed by the parties hereto or their legal representatives. 
  

	9.	 COUNTERPARTS AND HEADINGS 

 This Agreement may be executed in one (1) or more counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement. Signatures
transmitted via facsimile shall be regarded by the parties as original signatures. The headings of the various sections and subsections of this Agreement shall not limit or affect the terms and provisions of this Agreement. 

  
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 Signed this      day of
            , 20    . 
  

			
	  

	
	 [OFFICER’S NAME]

	
	  

	
	 [EMPLOYER’S NAME]

		
	 By:
	 	  

		
	 Its:
	 	  

  
 18 

 ATTACHMENT A 

  
 19

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