Document:

kop-ex1051_325.htm

Exhibit 10.51

KOPPERS HOLDINGS INC.

NOTICE OF GRANT OF STOCK OPTION

 

Notice is hereby given of the following option grant (the “Option”) to purchase shares of the Common Stock of Koppers Holdings Inc. (the “Corporation”):

Optionee:  Grant Date:  ________________

Exercise Price:  $________Number of Option Shares:________

Expiration Date:  ________________

			
	
Type of Option:
	
 
	
Incentive Stock Option

	
 
	
 
	
Non-Qualified Stock Option 

Vesting Schedule:  The Option shall become exercisable for 25% of the Option Shares upon Optionee’s completion of a consecutive twelve (12)-month period of Service ending on ________________.  The Option shall become exercisable for 25% of the Option Shares upon Optionee’s completion of a consecutive twelve (12)-month period of Service ending on ________________.  The Option shall become exercisable for 25% of the Option Shares upon Optionee’s completion of a consecutive twelve (12)-month period of Service ending on _______________.  The Option shall become exercisable for 25% of the Option Shares upon Optionee’s completion of a consecutive twelve (12)-month period of Service ending on ________________.  However, one or more Option Shares may be subject to accelerated vesting in accordance with Section 6 of the Stock Option Agreement. In no event shall the Option become exercisable for any additional Option Shares after Optionee’s cessation of Service. Only a whole number of Option Shares will become vested and exercisable as of any given date.  If the number of Option Shares that become vested and exercisable determined as of a date is a fractional number, the number vesting will be rounded down to the nearest whole number with any fractional portion carried forward.

Optionee understands and agrees that the Option is granted subject to and in accordance with the terms of the Koppers Holdings Inc. 2020 Long Term Incentive Plan (the “Plan”).  Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set forth in the Stock Option Agreement attached hereto as Exhibit A. Optionee hereby acknowledges the receipt of a copy of the official prospectus for the Plan in the form attached hereto as Exhibit B. A copy of the Plan is available upon request made to the Corporate Secretary at the Corporation’s principal offices.

Employment at Will.  Nothing in this Notice or in the attached Stock Option Agreement or in the Plan shall confer upon Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Affiliate employing or retaining Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s Service at any time for any reason, 

 

 

with or without cause, unless such rights have otherwise been limited pursuant to a separate agreement between the Corporation (or any Affiliate) and the Participant.

Definitions.  All capitalized terms in this Notice shall have the meaning assigned to them in this Notice or in the attached Stock Option Agreement.

DATED: _           _

		
	
KOPPERS HOLDINGS INC.

	
By:
	
 

	
 
	
 

	
Title:
	
 

	
 

Participant: _________________________

 

	
Signature:
	
  

	
 
	
 

	
Address:
	
 

	
 
	
 

 

 

ATTACHMENTS
Exhibit A - Stock Option Agreement
Exhibit B - Plan Prospectus

 

     Page  2

 

 

KOPPERS HOLDINGS INC.

STOCK OPTION AGREEMENT

RECITALS

	
A.
	
The Board has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board (or the board of directors of any Affiliate) and consultants who provide services to the Corporation (or any Affiliate).

	
B.
	
Optionee is to render valuable services to the Corporation (or an Affiliate), and this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in connection with the Corporation’s grant of an option to Optionee.

	
C.
	
The option granted by the Corporation pursuant to this Agreement is in consideration for the Optionee’s services to the Corporation and/or its Affiliates and acceptance of, and agreement to, the terms, conditions, and restrictions of the restrictive covenants set forth in Paragraph 11 of this Agreement. 

	
D.
	
Unless otherwise defined in this Agreement, all capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix.

NOW, THEREFORE, it is hereby agreed as follows:

1.Grant of Option.  The Corporation hereby grants to Optionee, as of the Grant Date, an option to purchase up to the number of Option Shares specified in the Grant Notice.  The Option Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at the Exercise Price.

2.Option Term.  This option shall have a maximum term of ten (10) years measured from the Grant Date and shall accordingly expire at the close of business on the Expiration Date, unless sooner terminated in accordance with Paragraph 5, 6 or 11.

3.Limited Transferability.  

(a)This option shall be neither transferable nor assignable by Optionee other than by will or the laws of inheritance following Optionee’s death and may be exercised, during Optionee’s lifetime, only by Optionee.  However, Optionee may designate one or more persons as the beneficiary or beneficiaries of this option, and this option shall, in accordance with such designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee’s death while holding this option.  Such beneficiary or beneficiaries shall take the transferred option subject to all the terms and conditions of this Agreement, including (without limitation) the limited time period during which this option may, pursuant to Paragraph 5, be exercised following Optionee’s death.

(b)If this option is designated a Non-Statutory Option in the Grant Notice, then this option may be assigned in whole or in part during Optionee’s lifetime to one or more of the Optionee’s Family Members or to a trust established for the exclusive benefit of Optionee and/or one or more such Family Members, to the extent such assignment is in connection with 

 

 

the Optionee’s estate plan or pursuant to a domestic relations order.  The assigned portion shall be exercisable only by the person or persons who acquire a proprietary interest in the option pursuant to such assignment.  The terms applicable to the assigned portion shall be the same as those in effect for this option immediately prior to such assignment.

4.Dates of Vesting.  This option shall become exercisable for the Option Shares in one or more installments in accordance with the Vesting Schedule set forth in the Grant Notice.  As the option becomes exercisable for such installments, those installments shall accumulate, and the option shall remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the option term under Paragraph 5, 6 or 11.

5.Cessation of Service.  The option term specified in Paragraph 2 shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable:

(a)Except as otherwise provided in subparagraphs (b), (c), (d), (e) and (h) of this Paragraph 5, should Optionee cease to remain in Service for any reason while this option is outstanding, then Optionee (or any person or persons to whom this option is transferred pursuant to a permitted transfer under Paragraph 3) shall have a ninety (90)-day period measured from the date of such cessation of Service during which to exercise this option, but in no event shall this option be exercisable at any time after the Expiration Date.

(b)Should Optionee cease to remain in Service due to Optionee’s voluntary resignation while this option is outstanding, then Optionee (or any person or persons to whom this option is transferred pursuant to a permitted transfer under Paragraph 3) shall have a thirty (30)-day period measured from the date of such cessation of Service during which to exercise this option, but in no event shall this option be exercisable at any time after the Expiration Date.

(c)Should Optionee die while this option is outstanding, then this option may be exercised by (i) the personal representative of Optionee’s estate or (ii) the person or persons to whom the option is transferred pursuant to Optionee’s will or the laws of inheritance following Optionee’s death or to whom the option is transferred during Optionee’s lifetime pursuant to a permitted transfer under Paragraph 3, as the case may be. However, if Optionee dies while holding this option and has an effective beneficiary designation in effect for this option at the time of his or her death, then the designated beneficiary or beneficiaries shall have the exclusive right to exercise this option following Optionee’s death.  Any such right to exercise this option shall lapse, and this option shall cease to be outstanding, upon the earlier of (i) the expiration of the twelve (12)-month period measured from the date of Optionee’s death or (ii) the Expiration Date.

(d)Should Optionee cease Service by reason of Permanent Disability while this option is outstanding, then Optionee (or any person or persons to whom this option is transferred pursuant to a permitted transfer under Paragraph 3) shall have a twelve (12)-month period measured from the date of such cessation of Service during which to exercise this option.  In no event shall this option be exercisable at any time after the Expiration Date.

(e)Should Optionee cease Service by reason of Retirement while this option is outstanding, then Optionee (or any person or persons to whom this option is transferred pursuant to a permitted transfer under Paragraph 3) shall have a three (3)-year period measured 

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from the date of Optionee’s Retirement during which to exercise this option.  In no event shall this option be exercisable at any time after the Expiration Date.

(f)The applicable period of post-Service exercisability in effect pursuant to the foregoing provisions of this Paragraph 5 shall automatically be extended by an additional period of time equal in duration to any interval within such post-Service exercise period during which the exercise of this option or the immediate sale of the Option Shares acquired under this option cannot be effected in compliance with applicable federal and state securities laws, but in no event shall such an extension result in the extension of this option beyond the Expiration Date.

(g) During the limited period of post-Service exercisability, this option may not be exercised in the aggregate for more than the number of Option Shares for which this option is, at the time of Optionee’s cessation of Service, vested and exercisable pursuant to the Vesting Schedule specified in the Grant Notice or the special vesting acceleration provisions of Paragraph 6.  This option shall not vest or become exercisable for any additional Option Shares, whether pursuant to the normal Vesting Schedule specified in the Grant Notice or the special vesting acceleration provisions of Paragraph 6, following the Optionee’s cessation of Service, except to the extent (if any) specifically authorized by the Plan Administrator pursuant to an express written agreement with the Optionee.  Upon the expiration of such limited exercise period or (if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding for any exercisable Option Shares for which the option has not otherwise been exercised.

(h)Should Optionee’s Service be terminated for Misconduct or should Optionee otherwise engage in any Misconduct while this option is outstanding, then this option shall terminate immediately and cease to remain outstanding.

6.Special Acceleration of Option.

(a)Should the Optionee’s Service terminate by reason of his or her Retirement, death or Permanent Disability prior to the final vesting date for the Option, then the Option shall immediately vest in the additional number of Option Shares (if any) equal to the number of Option Shares (if any) in which Optionee would have vested on the next applicable vesting date had the Optionee continued in Service through such next applicable vesting date, multiplied by a fraction, the numerator of which is the number of days of Service completed between the prior applicable vesting date (or the Grant Date, if applicable) and the termination of Participant’s Service, and the denominator of which is the total number of days from such prior applicable vesting date (or the Grant Date, if applicable) to such next applicable vesting date. .

(b)This option, to the extent outstanding at the time of a Change in Control but not otherwise fully exercisable, shall automatically accelerate so that this option shall, immediately prior to the effective date of such Change in Control, become exercisable for all of the Option Shares at the time subject to this option and may be exercised for any or all of those Option Shares as fully vested shares of Common Stock.  However, this option shall not become exercisable on such an accelerated basis, if and to the extent: (i) this option is to be assumed by the successor corporation (or parent thereof) or is otherwise to be continued in full force and effect pursuant to the terms of the Change in Control transaction or (ii) this option is to be replaced with a cash retention program of the successor corporation which preserves the spread existing at the time of the Change in Control on any Option Shares for which this option is not otherwise at that time exercisable (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise Price payable for such shares) and provides for subsequent payout of that spread in 

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accordance with the same Vesting Schedule for those Option Shares as set forth in the Grant Notice.

(c)Immediately following the Change in Control, this option shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) or otherwise continued in effect pursuant to the terms of the Change in Control transaction.

(d)If this option is assumed in connection with a Change in Control or otherwise continued in effect, then this option shall be appropriately adjusted, immediately after such Change in Control, to apply to the number and class of securities into which the shares of Common Stock subject to this option would have been converted in consummation of such Change in Control had those shares actually been outstanding at the time. Appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same.  To the extent the actual holders of the Corporation’s outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Change in Control, the successor corporation may, in connection with the assumption or continuation of this option, substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per share of Common Stock in such Change in Control, provided such common stock is readily tradable on an established U.S. securities exchange or market. 

(e)In the event the Optionee’s Service is involuntarily terminated for reasons other than Misconduct within twenty-four (24) months following a Change in Control transaction which does not result in the accelerated vesting of this option pursuant to the provisions of subparagraph (b) of this Paragraph 6, then the option (as assumed or continued in effect) shall automatically vest in full on an accelerated basis so that such option shall immediately become exercisable for all the Option Shares as fully-vested shares and may be exercised for any or all of those Option Shares as vested shares.  

(f)This Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

7.Adjustment in Option Shares and/or Exercise Price.  In the event that the Plan Administrator determines that any dividend or other distribution (other than regular cash dividends), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares or other securities of the Corporation, issuance of warrants or other rights to purchase shares or other securities of the Corporation, or other similar corporate transaction or event affects the Option Shares such that an adjustment is determined by the Plan Administrator to be appropriate in order to prevent dilution or enlargement of the benefits intended to be made available under this Agreement, then the Plan Administrator shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of shares (or other securities or property) subject to this Agreement, and (ii) the Exercise Price of the option, or, if the Plan Administrator deems it appropriate, make provision for a cash payment to the Optionee.

8.Stockholder Rights.  The holder of this option shall not have any stockholder rights with respect to the Option Shares until such person shall have exercised the option, paid the Exercise Price and become a holder of record of the purchased shares.

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9.Manner of Exercising Option.

(a)In order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or persons exercising the option) must take the following actions:

(i)Execute and deliver to the Corporation a Notice of Exercise for the Option Shares for which the option is exercised or comply with such other procedures as the Corporation may establish for notifying the Corporation of the exercise of this option for one or more Option Shares.

(ii)Pay the aggregate Exercise Price for the purchased shares in one or more of the following forms:

(A)cash or check made payable to the Corporation;

(B)shares of Common Stock valued at Fair Market Value on the Exercise Date and held by Optionee (or any other person or persons exercising the option) for any required period necessary to avoid a charge to the Corporation’s earnings for financial reporting purposes; or

(C)through a special sale and remittance procedure pursuant to which Optionee (or any other person or persons exercising the option) shall concurrently provide irrevocable instructions (i) to a brokerage firm (reasonably satisfactory to the Corporation for purposes of administering such procedure in accordance with the Corporation’s pre-clearance/pre-notification policies) to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable income and employment taxes required to be withheld by the Corporation by reason of such exercise and (ii) to the Corporation to deliver the certificates (which may be in electronic form) for the purchased shares directly to such brokerage firm on such settlement date in order to complete the sale.

Except to the extent the sale and remittance procedure is utilized in connection with the option exercise, payment of the Exercise Price must accompany the Notice of Exercise (or other notification procedure) delivered to the Corporation in connection with the option exercise.

(iii)Furnish to the Corporation appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option.

(iv)Make appropriate arrangements with the Corporation (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all applicable income and employment tax withholding requirements applicable to the option exercise.

(b)As soon as practical after the Exercise Date, the Corporation shall issue to or on behalf of Optionee (or any other person or persons exercising this option) a certificate (which may be in electronic form) for the purchased Option Shares, with the appropriate legends affixed thereto.

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(c)In no event may this option be exercised for any fractional shares.

10.Compliance with Laws and Regulations.

(a)The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Corporation and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any stock exchange on which the Common Stock may be listed for trading at the time of such exercise and issuance.

(b)The inability of the Corporation to obtain approval from any regulatory body having authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Corporation of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained.  The Corporation, however, shall use commercially reasonable efforts to obtain all such approvals.

11.Restrictive Covenants; Additional Conditions.

(a)As a condition of receiving this option, Optionee hereby acknowledges and agrees that during the period in which the Optionee provides Services to the Corporation or any Affiliate, and for the Restrictive Covenant Period following the date on which the Optionee ceases to provide Services to the Corporation or any Affiliate for any reason, the Optionee shall comply with the restrictive covenants set forth herein.  The restrictive covenants set forth herein shall not supersede and replace any other restrictions and obligations the Optionee may be subject to with the Corporation and its Affiliates and if there is a conflict between comparable restrictions the more restrictive provisions shall control, as reasonably determined by the Corporation.

(i)Optionee acknowledges that during the Optionee’s Service with the Corporation and its Affiliates, the Optionee will have access to, possess or help the Corporation develop valuable proprietary commercial and/or technical information, trade secrets and other confidential information belonging to the Corporation and its Affiliates and will be instrumental to the development and/or maintenance of goodwill with the Corporation’s and its Affiliates’ customers.  The Optionee acknowledges that such proprietary information, trade secrets, confidential information and goodwill are valuable assets of the Corporation and its Affiliates and the Corporation has a legitimate interest in protecting itself from disclosure or misappropriation of such information and from interference with its goodwill relationships with its customers.

(ii)Other than in the ordinary course or for the benefit of the business of the Corporation and its Affiliates, during the term of Optionee’s Service with the Corporation and its Affiliates and thereafter, Optionee shall not, directly or indirectly, divulge, furnish or make accessible to any other person, business, firm or corporation, or use in any way, any Confidential Information which the Optionee has acquired or become acquainted with or shall acquire or become acquainted with as a result of the Optionee’s Service with the Corporation or any Affiliate, whether developed by the Optionee, or by others. The Confidential Information is the property of the Corporation and/or Affiliate and Optionee acknowledges that the use, misappropriation or disclosure of the Confidential 

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Information would constitute a breach of trust, fiduciary duty and would cause irreparable injury to the Corporation and/or Affiliate. Furthermore, Optionee acknowledges that during the Optionee’s Service with the Corporation and any Affiliate, the Optionee may be exposed to the confidential information of customers and other third parties and the Optionee shall maintain the confidentiality of this information and shall only use it as necessary to carry out the work for the Corporation and any Affiliate consistent with restrictions placed upon such Confidential Information. Nothing contained herein shall restrict Optionee’s use of general knowledge acquired by the Optionee as part of the Optionee’s normal growth in the Optionee’s profession.

(iii)Optionee shall not, during the term of the Optionee’s Service with the Corporation and any Affiliate and for the Restrictive Covenant Period, render services as an officer, owner (other than having less than two (2%) percent ownership of a publicly traded corporation’s stock), director, consultant, employee, or other service provider, to, or on behalf of, a Competing Business, provided, however, this Paragraph 11(a)(iii) will not apply if the Optionee’s duties and responsibilities for any Competing Business do not involve the Optionee in the provision of any services that are similar to or competitive with the services Optionee provided to the Corporation or any Affiliate.  The Optionee acknowledges that the Corporation together with its Affiliate is engaged in business throughout the world and that the marketplace for the Corporation’s and its Affiliates’ products and services is worldwide, and thus the geographic area, length and scope of this noncompetition provision are reasonable and necessary to protect the legitimate business interests of the Corporation and any Affiliate. In the event a court of competent jurisdiction determines that one or more of the provisions of this Paragraph are so broad as to be unenforceable, then such provision shall be deemed to be reduced in scope or length, as the case may be, to the extent required to make such provisions enforceable.

(iv)Optionee shall disclose promptly and assign to the Corporation or the Affiliate all right, title and interest in any invention or idea, patentable or not, made or conceived by the Optionee during Service with the Corporation or the Affiliate, relating in any manner to the actual or anticipated business, research or development work of the Corporation or the Affiliate and shall do anything reasonably necessary to enable the Corporation or the Affiliate to secure a patent where appropriate in the United States and in foreign countries.

(v)Optionee shall not, directly or indirectly, solicit, for the purpose of offering or attempting to offer any service, product or other application which is the same as or similar to the services, products or other applications offered or in the process of being developed by the Corporation or any Affiliate within the last year prior to termination of the Optionee’s Service with the Corporation and any Affiliate, any of the Corporation’s or any Affiliate’s customers with whom the Optionee had contact, or about whom the Optionee obtained, or had access to, confidential information during the Optionee’s Service, for the Restrictive Covenant Period.  Optionee further agrees, for the Restrictive Covenant Period, that the Optionee shall not solicit or attempt to solicit any employee of, or consultant to, the Corporation or any Affiliate, which employee or consultant had 

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been rendering services to the Corporation or any Affiliate at any time within the six-month period immediately preceding the termination of the Optionee’s Service, to leave the employ of, or no longer render service to or for the benefit of, the Corporation or any Affiliate.

(vi)Optionee shall not make any Disparaging Statements about the Corporation or any Affiliate to any of the Corporation’s or any Affiliate’s past, present, or future customers, employees, clients, contractors, vendors, or to the media or to any other person either orally or by any other medium of communication, including internet communication.  As used herein, the term “Disparaging Statement” means any communication, oral or written, which would cause or tend to cause humiliation or embarrassment or to cause a recipient of such communication to question the business condition, integrity, product, service, quality, confidence, or good character of the Corporation or any Affiliate.

(b)Optionee acknowledges that a breach of any of the covenants contained in this Agreement may cause irreparable damage to the Corporation or Affiliate, the exact amount of which would be difficult to ascertain, and that the remedies at law for any such breach or threatened breach would be inadequate.  Accordingly, Optionee agrees that if the Optionee breaches or threatens to breach any of the covenants contained in this Agreement, in addition to any other remedy which may be available to the Corporation at law or in equity, the Corporation shall be entitled to (i) rescind any exercise of this option, in which case the Optionee shall pay to the Corporation, in cash or by returning to the Corporation the Option Shares covered by this option; and/or (ii) institute and prosecute proceedings in any court of competent jurisdiction for specific performance and injunctive relief to prevent the breach or any threatened breach thereof without bond or other security or a showing that monetary damages will not provide an adequate remedy.  Optionee agrees to disclose in advance the existence and terms of the restrictions and covenants contained in this Agreement to any employer or service recipient by whom the Optionee might be employed or retained during the period in which the covenants or restrictions apply. Optionee agrees that, in the event of a final determination of Optionee’s breach of any of the covenants contained in this Agreement, the restrictions in the relevant paragraph shall be extended for a period equal to the period that Optionee was in breach.  Optionee represents and acknowledges that the Optionee has been advised by the Corporation to consult Optionee’s own legal counsel with respect to this Agreement and Optionee has had full opportunity, prior to execution of this Agreement, to review thoroughly this Agreement with Optionee’s legal counsel.

(c)Upon exercise of this option, the Plan Administrator may require the Optionee to certify on a form acceptable to the Plan Administrator, that the Optionee is in compliance with the terms, conditions, and restrictions of the Plan and this Agreement.

(d)This option, and the right to receive and retain any Option Shares or cash payments covered by this option, shall be subject to rescission, cancellation or recoupment, in whole or part, if and to the extent so provided under any “clawback” or similar policy of the Corporation in effect on the Grant Date or that may be established thereafter, including any modification or amendment thereto, or as required by the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or other applicable law as may be in effect from time to time, and which may operate to create additional rights for the Corporation with respect to the option and recovery of amounts relating thereto.  By accepting this option under the Plan, the Optionee agrees and acknowledges that Optionee is obligated to 

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cooperate with, and provide any and all assistance necessary to, the Corporation to recover or cancel any option granted under the Plan subject to claw-back pursuant to such law or policy.  Such cooperation and assistance shall include, but is not limited to, executing, completing and submitting any documentation necessary to recover or cancel any options granted pursuant to this Agreement.

12.Successors and Assigns.  Except to the extent otherwise provided in this Agreement, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs and legatees of Optionee’s estate and any beneficiaries of this option designated by Optionee.

13.Notices.  Any notice required to be given or delivered to the Secretary of the Corporation under the terms of this Agreement shall be in writing and addressed to the Corporation at its principal corporate office at 436 Seventh Avenue, Pittsburgh, PA 15219.  Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address indicated below Optionee’s signature line on the Grant Notice.  All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified.

14.Construction.  This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan.  In the event of any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.  All decisions of the Plan Administrator with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option.

15.Governing Law.  The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the Commonwealth of Pennsylvania without resort to Pennsylvania’s conflict-of-laws rules.

16.Excess Shares.  If the Option Shares covered by this Agreement exceed, as of the Grant Date, the number of shares of Common Stock which may without stockholder approval be issued under the Plan, then this option shall be void with respect to those excess shares, unless stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock issuable under the Plan is obtained in accordance with the provisions of the Plan.  In no event shall the Option be exercisable with respect to any of the excess Option Shares unless and until such stockholder approval is obtained.

17.Additional Terms Applicable to an Incentive Option.  In the event this option is designated an Incentive Option in the Grant Notice, the following terms and conditions shall also apply to the grant:

(a)This option shall cease to qualify for favorable tax treatment as an Incentive Option if (and to the extent) this option is exercised for one or more Option Shares: (A) more than three (3) months after the date Optionee ceases to be an Employee of the Corporation, a Parent or a Subsidiary for any reason other than death or Permanent Disability or (B) more than twelve (12) months after the date Optionee ceases to be an Employee of the Corporation, a Parent or a Subsidiary by reason of Permanent Disability.

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(b)No installment under this option shall qualify for favorable tax treatment as an Incentive Option if (and to the extent) the aggregate Fair Market Value (determined at the Grant Date) of the Common Stock for which such installment first becomes exercisable hereunder would, when added to the aggregate value (determined as of the respective date or dates of grant) of the Common Stock or other securities for which this option or any other Incentive Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option plan of the Corporation or any Parent or Subsidiary) first become exercisable during the same calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate.  Should such One Hundred Thousand Dollar ($100,000) limitation be exceeded in any calendar year, this option shall nevertheless become exercisable for the excess shares in such calendar year as a Non-Statutory Option.

(c)Should the exercisability of this option be accelerated upon a Change in Control, then this option shall qualify for favorable tax treatment as an Incentive Option only to the extent the aggregate Fair Market Value (determined at the Grant Date) of the Common Stock for which this option first becomes exercisable in the calendar year in which the Change in Control transaction occurs does not, when added to the aggregate value (determined as of the respective date or dates of grant) of the Common Stock or other securities for which this option or one or more other Incentive Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option plan of the Corporation or any Parent or Subsidiary) first become exercisable during the same calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate.  Should the applicable One Hundred Thousand Dollar ($100,000) limitation be exceeded in the calendar year of such Change in Control, the option may nevertheless be exercised for the excess shares in such calendar year as a Non-Statutory Option.

(d)Should Optionee hold, in addition to this option, one or more other options to purchase Common Stock which become exercisable for the first time in the same calendar year as this option, then for purposes of the foregoing limitations on the exercisability of such options as Incentive Options, this option and each of those other options shall be deemed to become first exercisable in that calendar year, on the basis of the chronological order in which such options were granted, except to the extent otherwise provided under applicable law or regulation.

18.Survivability.  The terms of this Agreement survive the termination of Optionee’s employment with the Corporation for any reason.

19.Severability.  In the event that any provision of this Agreement is determined to be partially or wholly invalid, illegal or unenforceable in any jurisdiction, then such provision shall, as to such jurisdiction, be modified or restricted to the extent necessary to make such provision valid, binding and enforceable, or if such provision cannot be modified or restricted, then such provision shall, as to such jurisdiction, be deemed to be excised from this Agreement; provided, however, that the binding effect and enforceability of the remaining provisions of this Agreement, to the extent the economic benefits conferred upon the parties by virtue of this Agreement remain substantially unimpaired, shall not be affected or impaired in any manner, and any such invalidity, illegality or unenforceability with respect to such provisions shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

 

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APPENDIX

The following definitions shall be in effect under the Agreement:

A.Affiliate means any entity that, directly or through one or more intermediaries, is controlled by the Corporation, and any entity in which the Corporation has a significant equity interest as determined by the Plan Administrator.

B.Agreement shall mean this Stock Option Agreement.

C.Board shall mean the Corporation’s Board of Directors.

D.Change in Control of the Corporation shall have occurred in the event that: 

(i)a person, partnership, joint venture, corporation or other entity, or two or more of any of the foregoing acting as a “person” within the meaning of Sections 13(d)(3) of the 1934 Act, other than the Corporation, a majority-owned subsidiary of the Corporation or an employee benefit plan of the Corporation or such subsidiary (or such plan’s related trust), become(s) the “beneficial owner” (as defined in Rule 13d-3 under the Act) of fifty percent (50%) or more of the then outstanding voting stock of the Corporation; 

(ii)during any period of two consecutive years, individuals who at the beginning of such period constitute the Board (together with any new Board member whose election by the Corporation’s Board or whose nomination for election by the Corporation’s stockholders, was approved by a vote of at least two-thirds of the Board members then still in office who either were Board members at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board members then in office; 

(iii)all or substantially all of the business of the Corporation is disposed of pursuant to a merger, consolidation or other transaction in which the Corporation is not the surviving corporation or the Corporation combines with another company and is the surviving corporation (unless the Corporation’s stockholders immediately following such merger, consolidation, combination, or other transaction beneficially own, directly or indirectly, more than fifty percent (50%) of the aggregate voting stock or other ownership interests of (x) the entity or entities, if any, that succeed to the business of the Corporation or (y) the combined company);  

(iv)the closing of the sale of all or substantially all of the assets of the Corporation or a liquidation or dissolution of the Corporation; or

(v)the acquisition, directly or indirectly, by any person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the Act) of securities possessing more than twenty percent (20%) of the total combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s stockholders which the Board does not recommend such stockholders to accept.

E.Code shall mean the Internal Revenue Code of 1986, as amended.

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F.Common Stock shall mean shares of the Corporation’s common stock.

G.Competing Business shall mean: any person, corporation, partnership, joint venture, association or other entity engaged in the development or offering or attempting to offer any service, product, chemical formulation or other material which: (i) is a direct or indirect product of the extraction or distillation of coal tar; (ii) is utilized in the distillation, impregnation or treatment of materials with coal tar, petroleum pitch or their respective by-products or distillates; (iii) constitutes or is utilized in conjunction with railroad track joints, ties, mounting hardware, bridge timbers, bridge crossings or bridging assemblies; (iv) constitutes or is utilized in conjunction with utility poles (including components, inspection, treatment, maintenance and restoration thereof) or marine pilings; (v) is utilized for the preservation or recovery of wood materials or (vi) constitutes any product or service which was in the process of being developed by the Corporation or an Affiliate within the last year prior to termination of Optionee’s Service with the Corporation and any Affiliate.

H.Confidential Information shall mean any proprietary or confidential information of the Corporation or any Affiliate, including but not limited to any trade secrets, confidential or secret designs, technologies, content, processes, formulae, plans, manuals, devices, machines, know-how, methods, compositions, ideas, improvements, financial and marketing information, costs, pricing, sales, sales volume, methods and proposals, customer and prospective customer lists, identity of key personnel in the employ of customers and prospective customers, amount or kind of customer’s purchases from the Corporation or any Affiliate, system documentation, hardware, engineering and configuration information, computer programs, source and object codes (whether or not patented, patentable, copyrighted or copyrightable), related software development information, inventions or other confidential or proprietary information belonging to the Corporation or any Affiliate or directly or indirectly relating to the Corporation’s or Affiliate’s business and affairs.

I.Corporation shall mean Koppers Holdings Inc., a Pennsylvania corporation, and any successor corporation to all or substantially all of the assets or voting stock of Koppers Holdings Inc. which shall by appropriate action adopt the Plan. 

J.Disparaging Statements shall have the meaning set forth in Paragraph 11(a)(vi).

K.Employee shall mean an individual who is in the employ of the Corporation (or any Affiliate), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance.

L.Exercise Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 9 of the Agreement.

M.Exercise Price shall mean the exercise price per Option Share as specified in the Grant Notice.

N.Expiration Date shall mean the date on which the option expires as specified in the Grant Notice.

O.Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

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(i)If the Common Stock is at the time traded on the Nasdaq Global Market, then the Fair Market Value shall be the closing selling price per share of Common Stock at the close of regular hours trading (i.e., before after-hours trading begins) on the Nasdaq Global Market on the date in question, as such price is reported by the National Association of Securities Dealers for that particular Stock Exchange.  If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

(ii)If the Common Stock is at the time listed on any other Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock at the close of regular hours trading (i.e., before after-hours trading begins) on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange.  If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

P.Family Member shall mean any of the following members of the Optionee’s family: 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. 

Q.Grant Date shall mean the date of grant of the option as specified in the Grant Notice.

R.Grant Notice shall mean the Notice of Grant of Stock Option accompanying the Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby.

S.Incentive Option shall mean an option which satisfies the requirements of Code Section 422.

T.Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by Optionee, any unauthorized use or disclosure by Optionee of Confidential Information, or any other intentional misconduct by Optionee adversely affecting the business or affairs of the Corporation (or any Affiliate) in a material manner.  The foregoing definition shall not in any way preclude or restrict the right of the Corporation (or any Affiliate) to discharge or dismiss Optionee or any other person in the Service of the Corporation (or any Affiliate) for any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes of the Plan or this Agreement, to constitute grounds for termination for Misconduct.

U.Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422.

V.Notice of Exercise shall mean the notice of option exercise in the form prescribed by the Corporation.

W.Option Shares shall mean the number of shares of Common Stock subject to the option as specified in the Grant Notice.

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X.Optionee shall mean the person to whom the option is granted as specified in the Grant Notice.

Y.Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

Z.Permanent Disability shall mean the inability of Optionee to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which is expected to result in death or to be of continuous duration of twelve (12) months or more.

AA.Plan shall mean the Corporation’s 2020 Long Term Incentive Plan.

BB.Plan Administrator shall mean the committee(s) designated by the Board to administer the Plan. 

CC.Restrictive Covenant Period shall mean the two-year period following an Optionee’s termination of Service from the Corporation and/or any Affiliate for any reason.

DD.Retirement shall mean the Optionee’s voluntary termination from Service (i) on or after his attainment of age sixty-five (65), or (ii) on or after his attainment of age 55 with at least ten (10) years of service, or involuntary termination from Service with at least thirty (30) years of service other than in connection with a termination for Misconduct.  “Years of service” means the Optionee’s total number of years of “accumulated service” as such term is defined with respect to salaried employees under the Retirement Plan for Koppers Inc. (regardless of whether the Optionee is eligible to receive a benefit under such plan).

EE.  Service shall mean the Optionee’s performance of services for the Corporation (or any Affiliate, whether now existing or subsequently established) by a person in the capacity of an Employee, a non-employee member of the Board or a consultant.  However, the Optionee shall be deemed to cease Service immediately upon the occurrence of either of the following events: (i) the Optionee no longer performs services in any of the foregoing capacities for the Corporation or any Affiliate or (ii) the entity for which the Optionee is performing such services ceases to remain an Affiliate, even though the Optionee may subsequently continue to perform services for that entity.  Service shall not be deemed to cease during a period of military leave, sick leave or other personal leave approved by the Corporation or an Affiliate; provided, however, that should such leave of absence exceed three (3) months, then for purposes of determining the period within which the option may be exercised as an Incentive Stock Option under the federal tax laws (if the option is designated as such in the Grant Notice), the Optionee’s Service shall be deemed to cease on the first day immediately following the expiration of such three (3)-month period, unless the Optionee is provided, either by statute or by written contract, with the right to return to Service following such leave.  Except to the extent otherwise required by law or expressly authorized by the Plan Administrator or by the Corporation’s or an Affiliate’s written policy on leaves of absence, no Service credit shall be given for vesting purposes for any period the Optionee is on a leave of absence. 

FF. Stock Exchange shall mean the Nasdaq Global Market, the New York Stock Exchange or such other stock exchange on which the Common Stock is listed.

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GG. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

HH.Vesting Schedule shall mean the schedule set forth in the Grant Notice pursuant to which the option is to become exercisable for the Option Shares in one or more installments over the Optionee’s period of Service.

 

A-5Document

Exhibit 10.26

QUAD/GRAPHICS, INC. RETIREMENT AND RELEASE AGREEMENT

This Retirement and Release Agreement (“Agreement”) is entered into between Quad/Graphics, Inc. (“Quad/Graphics”), its parents, successors, predecessors, subsidiaries and former subsidiaries and any affiliated or related entities (collectively, the “Company”) and Thomas J. Frankowski (“Executive”).

1.Retirement Date; Vested Benefits.   Executive agrees to continue in employment with the Company until December 31, 2021 (the “Retirement Date”), upon which date Executive’s Company-provided salary will end.  Executive’s other benefits will be governed by the existing terms of the applicable benefit plans except as otherwise set forth in Section 2.  For the avoidance of doubt, Executive will receive his vested benefit under the Company’s Supplemental Executive Retirement Plan (“SERP”) in accordance with the terms of the SERP (including, for the avoidance of doubt, any applicable six-month delay) and his vested benefit under the Company’s tax-qualified retirement plan in accordance with the terms of such plan, will be eligible for participation in the Quad/Platinum Program in accordance with the Program’s terms if he elects to participate and will be eligible to elect to continue health coverage in accordance with the requirements of COBRA at Executive’s expense in accordance with the Company’s standard COBRA procedures. 

2.Benefits.  If Executive continues in employment in good standing with the Company until, and resigns as of, the Retirement Date, then, in exchange for Executive executing and not revoking this Agreement pursuant to Section 13(g) and complying with the terms of this Agreement, the Company will provide Executive with the following benefits to which Executive would not otherwise be entitled:

a.The cash long-term incentive plan awards then held by Executive shall be deemed earned in full at the target performance level.  The amount of such awards shall be paid on the Retirement Date.

b.The then-outstanding and unvested restricted stock awards held by Executive (including accrued but unpaid dividends related to such awards) shall be forfeited and canceled in exchange for a cash payment equal to the sum of (1) the product of the number of unvested shares subject to such awards multiplied by the 20-trading-day volume weighted average price per share of the Company’s class A common stock over the 20 trading days beginning on December 1, 2021 plus (2) the accrued but unpaid dividends relating to the forfeited and canceled awards as of the Retirement Date.  Such cash payment shall be made on the Retirement Date.

c.Executive’s annual bonus for fiscal year 2021 shall be paid in an amount based on actual performance as determined by the Compensation Committee of the Company’s Board of Directors.  This amount shall be paid by March 15, 2022 in accordance with the terms of the Company’s annual bonus program for 2021.

d.Executive shall receive a lump sum cash payment of $56,000 in consideration of Executive’s unused long term vacation bank.  Such amount shall be paid on the Retirement Date.

Executive acknowledges and agrees that (i) nothing in this Agreement, including Executive’s resignation in accordance with the terms of this Agreement, shall constitute a “Qualifying General Severance Termination” pursuant to the Employment Agreement, dated as of May 7, 2004, between Executive and the Company, as amended by Amendment No. 1., effective as of September 15, 2016 (the “Employment Agreement”); (ii) for the avoidance of doubt, Executive’s resignation shall not be deemed a retirement for purposes of any Company benefit plan or program except to the extent otherwise expressly provided herein; and (iii) any and all of the payments and benefits set forth herein shall be less appropriate tax withholding and other authorized and permitted deductions, in accordance with applicable law.
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3.Release.

a.In exchange for the consideration provided by the Company above and throughout this Agreement, Executive, on behalf of himself and his heirs, assigns, administrators, executors, beneficiaries, affiliates, insurers, representatives, and agents, completely releases and fully discharges the Company, its directors, officers, employees, fiduciaries, representatives, benefit plans, plan administrators, attorneys, insurers, and agents, past and present, individually and in their official capacities, and all persons acting by, through, under or in concert with any such person or entity (each a “Releasee”, and collectively, the “Releasees”) from and against all claims, liabilities, damages (including, but not limited to, compensatory, exemplary, and punitive damages), losses, expenses, back pay, front pay, loss of earnings, equitable relief, debts, reinstatement, and any and all other demands and causes of action of any sort, including attorneys’ fees, expenses, and costs (collectively, the “Claims”), whether known or unknown, that Executive may have against any Releasee.  Executive’s release and discharge of Claims is general and complete, and includes, but is not limited to, Claims arising from or relating in any way to: acts, circumstances, facts, transactions, omissions or other matters, occurring on or before the date  Executive executes this Agreement; Executive’s employment and the termination of Executive’s employment; wrongful discharge; the Employment Agreement, breach of contract; violation of public policy; torts; violation of any federal, state, local or foreign statute, law, constitution, regulation, or ordinance, including, but not limited to, Claims arising under the Age Discrimination in Employment Act of 1967, the Older Workers’ Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act, the Genetic Information Nondiscrimination Act, the Equal Pay Act, the Worker Adjustment and Retraining Notification Act, the Employee Retirement Income Security Act, and any other federal, state or local anti-discrimination law; and the covenants contained in Section 7 of this Agreement, including, but not limited to, that such covenants  are overly broad, unreasonable, or unenforceable.

b.This Agreement does not waive claims Executive may have to: (i) workers’ compensation benefits; (ii) government-provided unemployment benefits; (iii) vested rights subject to the terms of a benefit plan; (iv) claims for breach of this Agreement; (v) claims that may arise after the date Executive signs this Agreement; or (vi) any other right or claim that cannot be waived or released by private agreement.
   
c.Executive agrees that payment of the benefits described herein are contingent on Executive’s compliance with the other obligations in this Agreement, including, but not limited to, the covenants in Section 7.  Executive agrees that (i) he will repay to the Company in full all amounts received under this Agreement and (ii) the Company has the right to cease providing any further benefits under this Agreement if, in the case of both (i) and (ii), the Company determines Executive engaged in a material violation of his obligations in this Agreement.
 
d.Executive understands and acknowledges that nothing in this Agreement prohibits or restricts him from filing a charge or complaint with, communicating with, or participating in an investigation or testifying in a proceeding by, a federal or state government agency or entity, including, but not limited to, the Equal Employment Opportunity Commission, National Labor Relations Board, or Securities Exchange Commission.   Executive waives any and all rights to recover monetary damages or any other recovery in connection with any such investigation, proceeding, charge, complaint or lawsuit filed by Executive or by anyone else on behalf of Executive to the fullest extent permitted by law, except for any right Executive may have to receive a payment from a government agency for information provided to the government agency.

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4839-3395-1226.8

4.Covenant Not to Sue.
  
a.Executive represents that he has not assigned any Claim to any other person or entity.   Executive further represents that neither he nor any assignee or representative has a claim, complaint, or proceeding pending in any court, agency, commission or other forum relating, directly or indirectly, to Executive’s employment with the Company.
  
b.Notwithstanding Section 3(d), Executive agrees and covenants not to file any suit, complaint, claim, grievance or demand for arbitration against any of the Releasees in any court, administrative agency, commission or other forum.  Should Executive violate any provision in this Section 4, Executive agrees to indemnify and hold harmless Releasees, including, paying the applicable Releasee(s) for all reasonable attorney's fees, costs, and expenses incurred in connection with any suit, complaint, claim, grievance, or demand.

5.Return of Company Property and Submitting Final Expenses.
  
a.Executive represents that he has returned to the Company and not retained in his possession, custody, or control, any Confidential Information or Company equipment, materials, and documents, including, but not limited to, files, emails, correspondence, reports, customer lists, recordings, pictures, computers, phones, electronic devices, keys, identification and access cards; including the originals and any and all copies thereof, whether in hard copy, electronic, or any other form, and regardless of where or how stored.

b.Executive agrees that he must submit to the Company an accurate, documented expense report for all reimbursable expenses through the Retirement Date within forty-five (45) calendar days following the Retirement Date.  Executive agrees that expenses submitted after this forty-five (45)-day period will not be reimbursed.
  
6.Acknowledgement.   Executive acknowledges and represents that he: (a) received all wages, leave, and benefits to which he was entitled through the Retirement Date; and (b) reported to the Company all known violations of Company policy or any foreign, federal, state or local law, rule or regulations. 

7.Confidentiality and Noncompetition.  Executive acknowledges and agrees that continues to be bound by and subject to the Confidentiality and Noncompetition covenants in Section 9 of the Employment Agreement as well as the provisions of Section 10 of the Employment Agreement (which all shall survive the termination of the Employment Agreement), and that receiving the benefits described herein is contingent on his compliance with such covenants.

8.Confidentiality of this Agreement.  Executive agrees the terms of this Agreement are confidential and that, unless required by law, Executive will not disclose the existence of this Agreement or the terms of this Agreement, including, but not limited to, any amounts or benefits Executive receives in exchange for signing the Agreement, to anyone other than Executive’s legal counsel, professional financial or tax advisors, and Executive’s spouse.  Executive agrees that prior to any disclosure of this Agreement to legal counsel, professional financial or tax advisors, or his spouse, Executive shall immediately tell each such person he/she must keep the Agreement confidential as well.  Executive understands that he may disclose his obligations and covenants under Section 7 of this Agreement and Section 9 and 10 of the Employment Agreement to prospective employers as necessary to ensure Executive’s compliance with those provisions.

9.Cooperation.  Executive agrees to be available to answer questions from and provide assistance to the Company on matters about which he had knowledge.  Executive agrees to fully cooperate with the Company in any potential or pending litigation, proceeding, or investigation that may involve Executive or his knowledge, in any capacity, including, but not limited to, meeting at mutually convenient times with Company employees or the Company’s outside legal counsel; attending meetings, depositions and trial; and providing truthful and complete information.  Executive understands that nothing in this Agreement prohibits him from providing truthful and complete information in connection with Section 
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4839-3395-1226.8

3(d).  Executive shall resign from all positions held with the Company and its affiliates upon or, to the extent requested by the Company, prior to, the Retirement Date.

10.Non-Disparagement. Executive agrees not to condemn, ridicule, or disparage any Releasee, whether orally, in writing or otherwise, directly or by implication, in communication with any person, including, but not limited to, current, former, or prospective customers, employees, or vendors of the Company.  Executive understands that nothing in this Agreement prohibits him from providing truthful and complete information in connection with Section 3(d).

11.Waiver of Reemployment. Executive agrees not to seek reemployment or to work as a consultant or independent contractor for the Company and expressly waives any right to do so.   Executive agrees that if he applies for, obtains employment with, or obtains a contract or assignment to provide services to the Company, Executive will immediately withdraw from such application, employment, contract, or services, upon notification from the Company and that this Agreement is sufficient and appropriate legal grounds for denying or terminating such application, employment, contract, or services.  Executive agrees the Company, in its sole discretion, reserves the right to waive the restrictions in this Section 11.  

12.No Admission.  Executive agrees this Agreement is not, and is not to be construed as, an admission by the Company or any Releasee of any wrongdoing, liability or violation of any foreign, federal, state, or local law.  

13.Release of Claims Under the Age Discrimination in Employment Act.  Executive acknowledges and agrees that he:

a.has carefully read this Agreement, the Agreement is written in a manner that she clearly understands, and that she fully understands all of the provisions of this Agreement;
 
b.this Agreement releases and discharges, among other claims, all claims he may have arising under the Age Discrimination in Employment Act of 1967, Older Workers Benefits Protection Act, and any similar state or local law;

c.releases and discharges such claims only in exchange for consideration in addition to anything of value to which he is otherwise entitled;

d.understands that rights or claims he may have under the Age Discrimination in Employment Act of 1967 that may arise after the date this Agreement is executed are not waived.

e.has had the opportunity to consult with legal counsel of his choice regarding this Agreement and its effects prior to executing this Agreement;

f.has had a full twenty-one (21) days within which to consider this Agreement before executing it; and

g.understands that Executive has a full seven (7) days after the date of his signature below to revoke this Agreement and that this Agreement shall not become effective or enforceable until the revocation period has expired. Executive understands that to revoke this Release, he must give written notice to the Company and that, immediately upon giving such notice, Executive shall be required to repay to the Company in full all amounts received under this Agreement.  Such notice shall be deemed to have been duly given only when mailed by U.S. registered mail, return receipt requested and postage prepaid, to the attention of Jennifer J. Kent, Executive Vice President of Administration, General Counsel and Secretary, Quad/Graphics, Inc., N61 W23044 Harry’s Way, Sussex, WI 53089.

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4839-3395-1226.8

14.Governing Law and Exclusive Forum.  This Agreement shall be interpreted in accordance with the plain meaning of its terms and not strictly for or against Executive or any Releasee.  This Agreement shall be governed by the laws of Wisconsin, without regard to any state’s conflict-of-law provisions.  The Company and Executive agree to the exclusive jurisdiction of the state or federal courts of Wisconsin for any dispute arising from or relating in any way to this Agreement. 

15.Severability.  The provisions of this Agreement are severable. If any provision or portion of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, it will not affect the validity or unenforceability of any other provisions or portions of this Agreement, except if the release contained in Section 3 is found to be unenforceable or void as result of any proceedings or action by  Executive, the Company may, at its sole discretion, declare this Agreement null and void in its entirety and terminate any further benefits and payments to  Executive under this Agreement.

16.Waiver.  No waiver of the breach of any term of this Agreement shall be a waiver of any preceding or succeeding breach of this Agreement.

17.Capitalized Terms and Headings. Capitalized terms in this Agreement have the definitions provided in this Agreement.  The section headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

18.Copies.  A facsimile, copy, scan, or other machine-generated copy of this Agreement shall have the same force and effect as the original executed Agreement.

19.Entire Agreement. Executive agrees this Agreement contains the entire agreement between the parties on the subject herein and supersedes all prior discussions, negotiations, proposals and agreements, oral or written, except as otherwise provided in this Agreement or, for purposes of Section 7 herein, of the Employment Agreement.   Executive agrees that, in executing this Agreement, he does not rely on any representation, promise, or inducement made by the Company or any Releasee, with the exception of what is documented in this Agreement.

20.Execution Date.  Neither the Company nor Executive may execute this Agreement until the Retirement Date.  Execution of this Agreement prior to that date is void.  Provided that Executive does not revoke this Agreement pursuant to Section 13(g), this Agreement will be effective on the eighth day following Executive’s execution of this Agreement.
 
EACH PARTY’S SIGNATURE BELOW REPRESENTS THE PARTY HAS READ THIS AGREEMENT, FULLY UNDERSTANDS AND AGREES TO ALL THE TERMS AND CONDITIONS OF THE AGREEMENT, IS EXECUTING THE AGREEMENT OF THE PARTY’S OWN FREE WILL AND WITHOUT COERCION, THREATS, OR INTIMIDATION, AND THE PARTY KNOWINGLY AND VOLUNTARILY INTENDS TO BE LEGALLY BOUND TO THIS AGREEMENT. 
															
	QUAD/GRAPHICS, INC.		Thomas J. Frankowski
					
	By:	/s/ Jennifer Kent		
		Signature		
				
	Title:	Executive Vice President and General Counsel		/s/ Thomas J. Frankowski
				Signature
					
	Date:	12/27/2021		Date:	12/27/2021

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4839-3395-1226.8

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