Document:

Exhibit

KULICKE AND SOFFA INDUSTRIES, INC. 
2017 EQUITY PLAN 

TABLE OF CONTENTS  
	
					
	 
	 
	 
	 
	Page

	1.
	Purpose
	A-4

	2.
	Definitions
	A-4

	 
	 
	(a)
	“Award”
	A-4

	 
	 
	(b)
	“Award Agreement”
	A-4

	 
	 
	(c)
	“Board”
	A-4

	 
	 
	(d)
	“Cause”
	A-4

	 
	 
	(e)
	“Code”
	A-4

	 
	 
	(f)
	“Committee”
	A-4

	 
	 
	(g)
	“Company”
	A-4

	 
	 
	(h)
	“Disability”
	A-4

	 
	 
	(i)
	“Employee”
	A-4

	 
	 
	(j)
	“Exchange Act”
	A-4

	 
	 
	(k)
	“Fair Market Value”
	A-4

	 
	 
	(l)
	“ISO”
	A-4

	 
	 
	(m)
	“More-Than-10-Percent Shareholder”
	A-4

	 
	 
	(n)
	“Nonemployee Director”
	A-4

	 
	 
	(o)
	“NQSO”
	A-4

	 
	 
	(p)
	“Option”
	A-4

	 
	 
	(q)
	“Participant”
	A-4

	 
	 
	(r)
	“Performance Goals”
	A-5

	 
	 
	(s)
	“Plan”
	A-5

	 
	 
	(t)
	“Prior Plans”
	A-5

	 
	 
	(u)
	“PSUs”
	A-5

	 
	 
	(v)
	“Related Corporation”
	A-5

	 
	 
	(w)
	“Retirement”
	A-5

	 
	 
	(x)
	“Restricted Stock”
	A-5

	 
	 
	(y)
	“RSUs”
	A-5

	 
	 
	(z)
	“SARs”
	A-5

	 
	 
	(aa)
	“Securities Act”
	A-5

	 
	 
	(bb)
	“Shares”
	A-5

	 
	 
	(cc)
	“Short-Term Deferral Period”
	A-5

	 
	 
	(dd)
	“Stock Grants”
	A-5

	3.
	Administration
	A-5

	4.
	Effective Date and Term of Plan
	A-6

	 
	 
	(a)
	Effective Date
	A-6

	 
	 
	(b)
	Term of Plan
	A-6

	5.
	Shares Subject to the Plan
	A-6

	6.
	Eligibility
	A-7

	7.
	Types of Awards
	A-7

	 
	7.1
	PSUs
	 
	A-7

	 
	 
	(a)
	Grant
	A-7

	 
	 
	(b)
	Performance Period and Performance Goals
	A-7

	 
	 
	(c)
	Determination of Award Amount
	A-7

	 
	7.2
	Options
	 
	A-7

	 
	 
	(a)
	General
	A-7

	 
	 
	(b)
	ISOs
	A-7

	 
	 
	(c)
	$100,000 Limit
	A-7

	 
	 
	(d)
	Exercise Price
	A-7

	 
	 
	(e)
	Duration of Options
	A-8

	 
	 
	(f)
	Exercise of Options
	A-8

	 
	 
	(g)
	Payment Upon Exercise
	A-8

	 
	 
	(h)
	Limitation on Repricing
	A-8

	 
	7.3
	RSUs
	 
	A-8

 

TABLE OF CONTENTS 
(continued) 
	
					
	 
	 
	 
	 
	 

	 
	 
	 
	 
	Page

	 
	7.4
	Restricted Stock Awards
	A-8

	 
	 
	(a)
	Grant Requirements
	A-8

	 
	 
	(b)
	Shareholder Rights
	A-8

	 
	 
	(c)
	Restrictions
	A-9

	 
	 
	(d)
	Lapse of Restrictions
	A-9

	 
	 
	(e)
	Notice of Tax Election
	A-9

	 
	7.5
	SARs
	A-9

	 
	 
	(a)
	Nature of SARs
	A-9

	 
	 
	(b)
	Exercise of SARs
	A-9

	 
	7.6
	Stock Grants
	A-9

	 
	 
	(a)
	Quarterly Grants
	A-9

	 
	 
	(b)
	One-Time Grant
	A-9

	 
	 
	(c)
	Shareholder Rights
	A-9

	8.
	Events Affecting Outstanding Awards
	A-9

	 
	8.1
	Options and SARs
	A-9

	 
	 
	(a)
	Termination of Employment (Other Than by Death or Disability)
	A-9

	 
	 
	(b)
	Retirement
	A-10

	 
	 
	(c)
	Death or Disability
	A-10

	 
	8.2
	PSU Awards
	A-10

	 
	 
	(a)
	Termination of Employment (Other Than by Death, Disability or Retirement)
	A-10

	 
	 
	(b)
	Death, Disability or Retirement
	A-10

	 
	8.3
	Restricted Stock
	A-10

	 
	8.4
	RSU Awards
	A-10

	 
	8.5
	Capital Adjustments
	A-10

	 
	8.6
	Effect of Change in Control
	A-11

	 
	8.7
	Certain Corporate Transactions
	A-12

	9.
	Amendment or Termination of the Plan and Awards
	A-12

	 
	 
	(a)
	Amendment or Termination of Plan
	A-12

	 
	 
	(b)
	Manner of Shareholder Approval
	A-13

	 
	 
	(c)
	Amendment of Awards
	A-13

	10.
	Miscellaneous
	A-13

	 
	10.1
	Documentation of Awards
	A-13

	 
	10.2
	Rights as a Shareholder
	A-13

	 
	10.3
	Conditions on Delivery of Shares
	A-13

	 
	10.4
	Registration and Listing of Shares
	A-13

	 
	10.5
	Compliance with Rule 16b-3
	A-13

	 
	10.6
	Tax Withholding
	A-14

	 
	 
	(a)
	Obligation to Withhold
	A-14

	 
	 
	(b)
	Election to Withhold Shares
	A-14

	 
	10.7
	Transferability of Awards
	A-14

	 
	10.8
	Registration
	A-14

	 
	10.9
	Acquisitions
	A-14

	 
	10.10
	Employment and Board Membership Rights
	A-14

	 
	10.11
	Indemnification of Board and Committee
	A-14

	 
	10.12
	Application of Funds
	A-15

	 
	10.13
	Governing Law
	A-15

	 
	10.14
	Prohibition Against Cash Buyout of Awards Under the Plan
	A-15

	 
	10.15
	Clawback
	A-15

	Addendum:  2017 Israeli Addendum

	A-16

  

 

KULICKE AND SOFFA INDUSTRIES, INC. 
2017 EQUITY PLAN 
WHEREAS, Kulicke and Soffa Industries, Inc. (the “Company”) desires to have the ability to award certain equity-based incentives to certain of the officers and other employees of the Company and its affiliates and to its non-employee directors; 
NOW, THEREFORE, the Company hereby adopts the Kulicke and Soffa Industries, Inc. 2017 Equity Plan (the “Plan”) under the following terms and conditions: 
1. Purpose. The Plan is intended to provide a means whereby the Company may grant Awards to Employees of the Company and certain of its Related Corporations and to its Nonemployee Directors. Thereby, the Company expects to attract and retain such individuals and to motivate them to exercise their best efforts on behalf of the Company and any Related Corporation. 
2. Definitions. 
(a) “Award” shall mean ISOs, NQSOs, Restricted Stock, PSUs, RSU, SARs and/or Stock Grants awarded by the Committee to a Participant. 
(b) “Award Agreement” shall mean a written document evidencing the grant of an Award. 
(c) “Board” shall mean the Board of Directors of the Company. 
(d) “Cause” shall mean a termination of employment by reason of any dishonest or illegal act, or any willful refusal or failure to perform duties properly assigned to the Participant. 
(e) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
(f) “Committee” shall mean the Management Development and Compensation Committee of the Board, which shall consist solely of not fewer than two directors of the Company who shall be appointed by, and serve at the pleasure of, the Board (taking into consideration the rules under section 16(b) of the Exchange Act regarding non-employee directors, the requirements of Code section 162(m) regarding outside directors, and Rule 4200(a)(15) of the Marketplace Rules of the Nasdaq Stock Market, Inc. regarding independent directors.) 
(g) “Company” shall mean Kulicke and Soffa Industries, Inc., a Pennsylvania corporation. 
(h) “Disability” shall mean a Participant’s “permanent and total disability,” as defined in section 22(e)(3) of the Code. 
(i) “Employee” shall mean an employee of the Company or one of its Related Corporations. 
(j) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
(k) “Fair Market Value” shall mean the following, arrived at by a good faith determination of the Committee and shall be: 
(i) the quoted closing price, if there is a market for and there are sales of Shares on a registered securities exchange or in an over-the-counter market on the applicable date; or 
(ii) such other method of determining fair market value that complies with Code sections 422 and 409A and is adopted by the Committee. 
(l) “ISO” shall mean an Option which, at the time such Option is granted under the Plan, qualifies as an incentive stock option within the meaning of Code section 422 and is designated as an ISO in the applicable Award Agreement 
(m) “More-Than-10-Percent Shareholder” shall mean any person who at the time of grant owns, directly or indirectly, or is deemed to own by reason of the attribution rules of Code section 424(d), Shares possessing more than 10 percent of the total combined voting power of all classes of Shares of the Company or of a Related Corporation. 
 
(n) “Nonemployee Director” shall mean a director of the Company who is not an employee. 
(o) “NQSO” shall mean an Option that, at the time such Option is granted to a Participant, does not meet the definition of an ISO (whether or not it is designated as an ISO in the applicable Award Agreement) or is not designated as an ISO in the applicable Award Agreement. 
(p) “Option” is an Award of ISOs or NQSOs entitling the Participant on exercise thereof to purchase Shares at a specified exercise price for a specified period of time. 
(q) “Participant” shall mean an Employee or Nonemployee Director who has been granted an Award under the Plan. 

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(r) “Performance Goals” shall mean the goal or goals deemed by the Committee to be important to the success of the Company or any of its Related Corporations. The Committee shall establish the specific measures for each such goal at the time an Award of Performance Share Units is granted. In creating these measures, the Committee shall use one or more of the following business criteria which need not be uniform with respect to each Participant: return on invested capital, return on assets, return on net assets, asset turnover, return on equity, return on capital, market price appreciation of Shares, economic value added, total stockholder return, net income, pre-tax income, earnings per share, operating profit margin, net income margin, sales margin, cash flow, market share, inventory turnover, sales growth, net revenue per shipment, net revenue growth, capacity utilization, increase in customer base, environmental health and safety, diversity, and/or quality. The business criteria may apply to the individual, a division, or to the Company and one or more affiliates and may be weighted and expressed in absolute terms or relative to the performance of other companies or an index. The Committee shall determine the performance period and the Performance Goals and measures (and weighting thereof) applicable to such period not later than the earlier of (i) 90 days after the commencement of the performance period, or (ii) the expiration of 25% of the performance period. 
(s) “Plan” shall mean the Kulicke and Soffa Industries, Inc. 2017 Equity Plan, as set forth herein and as may be amended from time to time. 
(t) “Prior Plans” shall mean the following plans of Kulicke and Soffa Industries, Inc.: 1999 Nonqualified Employee Stock Option Plan; 2001 Employee Incentive Stock Option and Non-Qualified Stock Option Plan; 2006 Equity Plan; 2008 Equity Plan; and 2009 Equity Plan. 
(u) “PSUs” shall mean performance share units the vesting of which is based on the attainment of designated Performance Goals and that entitle the recipient to receive Shares (except as provided in section 8.6 regarding a Change in Control) without payment. 
(v) “Related Corporation” shall mean either a “subsidiary corporation” of the Company (if any), as defined in section 424(f) of the Code, or, unless otherwise determined by the Committee to comply with Section 409A of the Code, the “parent corporation” of the Company (if any), as defined in section 424(e) of the Code. 
(w) “Retirement” shall mean, for purposes of this Plan, an Employee’s retirement from the Company and all Related Corporations at or after attaining age 50 and completing at least three years of employment with the Company and its Related Corporations, provided the sum of the Employee’s age and years of employment with the Company and its Related Corporations equals or exceeds 60. 
(x) “Restricted Stock” shall mean Shares subject to restrictions (which constitute a substantial risk of forfeiture) determined by the Committee pursuant to Section 7.4. 
(y) “RSUs” shall mean restricted share units which entitle the Participant to receive Shares or the value of which is determined in whole or in part, or is otherwise based, on Shares as described in Section 7.3. 
(z) “SARs” shall mean stock appreciation rights entitling the Participant on exercise to receive an amount in Shares determined by reference to the appreciation in the value of Shares. 
(aa) “Securities Act” shall mean the Securities Act of 1933, as amended. 
(bb) “Shares” shall mean shares of common stock of the Company, no par value. 
  
(cc) “Short-Term Deferral Period” shall mean, with respect to an amount (including Shares) payable pursuant to a PSU Award, the period ending on the later of (1) the 15th day of the third month following the Participant’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture, or (2) the 15th day of the third month following the Company’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture; provided, however, that such period (measured from the last day of the period) shall be within one calendar year and shall not exceed 2 1/2 months. A Participant shall have no discretion over the payment date and shall have no right to interest as a result of payment on a date other than the first day of the Short-Term Deferral Period. 
(dd) “Stock Grants” shall mean an award of Shares to a Nonemployee Director. 
3. Administration. 
(a) The Plan shall be administered by the Committee. Each member of the Committee, while serving as such, shall be deemed to be acting in his or her capacity as a director of the Company. Acts approved by a majority of the members of the Committee at which a quorum is present, or acts without a meeting reduced to or approved in writing by a majority of the members of the Committee, shall be the valid acts of the Committee for purpose of this Plan. Any authority of the Committee (except for the authority described in subsection (b)(i)-(iv) and (vii) below which may only be exercised by the Committee or its delegate as described in subsection (ix)) may be delegated to a Plan administrator. 

A-5

(b) The Committee shall have the authority: 
(i) to select the Employees and Nonemployee Directors to be granted Awards under the Plan and to grant such Awards at such time or times as it may choose; 
(ii) establish performance metrics; 
(iii) to determine the type and size of each Award, including the number of Shares subject to the Award; 
(iv) to determine the terms and conditions of each Award, subject to the minimum vesting requirements set forth in the Plan, provided, however, that the Committee may award up to ten percent of the total Shares authorized under Section 5 (i.e., the sum of (x), (y), and (z) in Section 5(a)), as Restricted Stock and RSUs without minimum vesting requirements;  
(v) to amend an existing Award in whole or in part as described in Section 9(c) of the Plan (including the extension of the exercise period for any NQSO, provided the extension or any other amendment or modification does not subject the NQSO to Code section 409A), except that the Committee may not lower the exercise price of any Option; 
(vi) to adopt, amend and rescind rules and regulations for the administration of the Plan; 
(vii) to interpret the Plan (and any Award issued thereunder) and decide any questions and settle any controversies that may arise in connection with it; 
(viii) to adopt such modifications, amendments, procedures, sub-plans and the like, which may be inconsistent with the provisions of the Plan, as may be necessary to comply with the laws and regulations of other countries in which the Company and its Related Corporations operate in order to assure the viability of Awards granted under the Plan to individuals in such other countries; and 
(ix) to delegate to the Chief Executive Officer and/or to other senior officers of the Company its duties under the Plan pursuant to such conditions or limitations as the Committee may establish, except that only the Committee may make any awards or determinations regarding grants to employees who are subject to Section 16 of the Exchange Act. 
Such determinations and actions of the Committee, and all other determinations and actions of the Committee made or taken under authority granted by any provision of the Plan, shall be conclusive and shall bind all parties. Nothing in this subsection (b) shall be construed as limiting the power of the Committee to make the adjustments described in Sections 8.4 and 8.6. 
 
(c) Notwithstanding anything contained in the Plan to the contrary, to the extent the Committee has required upon grant that any PSU must qualify as “other performance based compensation” within the meaning of Code section 162(m)(4)(C), the Committee shall (i) specify and approve the specific terms of any Performance Goals with respect to such Awards in writing no later than the earlier of ninety (90) days from the commencement of the performance period and the expiration of 25% of the performance period to which the Performance Goal or Goals relate, and (ii) not be entitled to exercise any subsequent discretion otherwise authorized under the Plan (such as the right to authorize payout at a level above that dictated by the achievement of the relevant Performance Goals) with respect to such Award if the ability to exercise discretion (as opposed to the exercise of such discretion) would cause such Award to fail to qualify as other performance based compensation. 
4. Effective Date and Term of Plan. 
(a) Effective Date. The Plan was adopted by the Board on January 11, 2017, subject to the approval of the Shareholders of the Company pursuant to Section 9(b). The Plan became effective on March 14, 2017 (the date the Shareholders approved the Plan). 
(b) Term of Plan. Unless earlier terminated pursuant to Section 9(a), the Plan shall terminate at 11:59 p.m. (Eastern Time) on the day preceding the 10-year anniversary of the effective date. Termination of the Plan, however, shall not terminate or affect the continued existence of rights created under Awards issued hereunder, and outstanding on the date the Plan terminates, which by their terms extend beyond that date. 
5. Shares Subject to the Plan. 
(a) Subject to adjustment as provided in Section 8.5 herein, the total number of Share available for grant under the Plan shall be the sum of (x) 3,100,000, (y) the number of shares remaining available for issuance under Prior Plans, and (z) any Shares subject to awards currently outstanding under the Prior Plans which are terminated, cancelled, surrendered or forfeited and are re-issued at the discretion of the Committee under the Plan. The aggregate number of shares that may be delivered under the Plan with respect to ISOs is 3,100,000. Further, the maximum number of Shares with respect to 

A-6

which Awards may be granted to any Employee under the Plan may not exceed 500,000 Shares per fiscal year of the Company. 
(b) The limits described in subsection (a) shall be subject to the adjustment described in Section 8.5. Shares delivered under the Plan may be authorized but unissued Shares or reacquired Shares, and the Company may purchase Shares required for this purpose, from time to time, if it deems such purchase to be advisable. 
(c) If an Award expires, terminates for any reason whatever (including, without limitation, the surrender thereof), is cancelled, is forfeited or is settled in cash rather than Shares, the number of Shares (by which the aggregate number of Shares were reduced) with respect to such Award which expired, terminated, was cancelled, was forfeited or was settled in cash shall continue to be available for future Awards granted under the Plan. 
(d) Any shares subject to an SAR that are not delivered to a Participant upon settlement of the SAR shall revert to and again be available for future Awards granted under the Plan. 
6. Eligibility. All Employees of the Company or any Related Corporation shall be eligible to receive Awards under the Plan (including any directors of the Company who are also officers or employees). More than one Award may be granted to an Employee under the Plan. 
7. Types of Awards. 
7.1 PSUs. 
(a) Grant. The Committee, in its discretion, may grant PSUs to any Employee, conditioned upon the meeting of designated Performance Goals. The Committee shall determine the number of PSUs to be granted. 
(b) Performance Period and Performance Goals. When PSUs are granted, the Committee shall establish the performance period, which generally shall be a three-year period commencing with the first day of a fiscal year of the Company and in no event may be less than a one-year period, during which performance shall be measured, the Performance Goals, and such other conditions of the Award as the Committee deems appropriate. 
(c) Determination of Award Amount. At the end of each performance period, the Committee shall determine to what extent the Performance Goals and other conditions of the Award have been met and the number of Shares, if any, to be delivered with respect to the Award. For any Participant who is a “covered employee” within the meaning of Code section 162(m) and to the extent the Committee intends to comply with the requirements for performance-based Awards described generally under Code section 162(m), the Committee must certify, prior to vesting of any PSUs, that any applicable Performance Goals and/or other requirements have been satisfied, and that such amounts are consistent with the limits provided under Section 5. With respect to PSUs which the Committee has required upon grant to qualify as “other performance based compensation” under section 3(c), the Committee shall in no event have discretion to increase the extent to which such PSUs shall become payable beyond the extent to which the Performance Goals have been satisfied. Upon the vesting of a PSU in accordance with the terms of this Plan, Shares shall be delivered to the Participant during the Short-Term Deferral Period except as otherwise provided in this Plan or the Participant’s Award Agreement. 
7.2 Options. 
(a) General. The Committee may grant Options to purchase Shares under the Plan, and may determine the number of Shares to be covered by each Option, the exercise price of each Option and the conditions and limitations applicable to the exercise of each Option, including conditions relating to applicable federal or state securities laws, as it considers necessary or advisable. 
(b) ISOs. An Option that the Committee intends to be an ISO may only be granted to Employees of the Company or of any present or future Related Corporation, and shall be subject to and shall be construed consistently with the requirements of section 422 of the Code. The Company shall have no liability to a Participant, or to any other party, if an Option (or any part thereof) that is intended to be an ISO is not an ISO or for any action taken by the Committee pursuant to Section 9(c), including without limitation the conversion of an ISO to an NQSO. 
(c) $100,000 Limit. The aggregate Fair Market Value of the Shares with respect to which ISOs are exercisable for the first time by an Employee during any calendar year (counting ISOs under this Plan and under any other stock option plan of the Company or a Related Corporation) shall not exceed $100,000. If an Option intended as an ISO is granted to an Employee and the Option may not be treated in whole or in part as an ISO pursuant to the $100,000 limit, the Option shall be treated as an ISO to the extent it may be so treated under the limit and as an NQSO as to the remainder. For purposes of determining whether an ISO would cause the limit to be exceeded, ISOs shall be taken into account in the order granted. The annual limits set forth above for ISOs shall not apply to NQSOs. 
(d) Exercise Price. The Committee shall establish the exercise price of each Option and specify such exercise price in the applicable Award Agreement. The exercise price of an Option for a Share shall not be less than 100% (110% in the 

A-7

case of an ISO granted to a More-Than-10-Percent Shareholder) of the Fair Market Value of a Share on the date the Option is granted. 
(e) Duration of Options. Each ISO shall expire not later than 10 years from the date of grant (5 years in the case of an ISO granted to a More-Than-10-Percent Shareholder) and each NQSO shall expire not later than 10 years and 6 months from date of grant and shall otherwise be exercisable at such times and subject to such terms and conditions as the Committee may specify in the applicable Award Agreement. 
(f) Exercise of Options. Options shall become exercisable at such time, and on such conditions as the Committee may specify. Unless otherwise provided in an Award Agreement, one-third of each Option granted shall become exercisable on each of the first three anniversaries of the grant date. Options may be exercised by delivery to the Company of a written notice of exercise signed by the proper person or by any other form of notice (including electronic notice) approved by the Committee together with payment in full as specified in Section 7.2(g) for the number of Shares for which the Option is exercised (except that, in the case of an exercise arrangement approved by the Committee and described in subsection (g)(ii) below, payment may be made as soon as practicable after the exercise). Only full Shares shall be issued under the Plan, and any fractional Share that might otherwise be issuable upon exercise of an Option granted hereunder shall be forfeited. 
(g) Payment Upon Exercise. Shares purchased upon the exercise of an Option granted under the Plan shall be paid for as follows: 
(i) in cash or by check (acceptable to the Committee), bank draft, or money order payable to the order of the Company; 
(ii) except as the Committee may otherwise provide in an Award Agreement, by effecting a “cashless exercise” through a broker which entails (A) delivery of an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price and any required tax withholding, or (B) delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price and any required tax withholding; 
 
(iii) when the Shares are registered under the Exchange Act, by delivery of Shares owned by the Participant and valued at their Fair Market Value, provided (A) such method of payment is then permitted under applicable law, (B) such Shares, if acquired directly from the Company, were owned by the Participant for such minimum period of time, if any, as may be established by the Committee in its discretion, and (C) such Shares are not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements; or 
(iv) by any combination of the above permitted forms of payment. 
(h) Limitation on Repricing. Notwithstanding any provision of this Plan to the contrary (other than Sections 8.5 and 8.7), the option price of an outstanding Option shall not, without the prior approval of the Company’s Shareholders, be reduced whether through amendment, cancellation, replacement grants, or other similar means. 
7.3 RSUs. Awards that are valued, or are otherwise based, on Shares may be granted subject to service conditions. Each RSU that vests entitles the Participant to one Share, cash equal to the Fair Market Value of a Share on the date of vesting or a combination thereof as determined by the Committee and set forth in the Award Agreement. Subject to the provisions of the Plan, the Committee shall determine the conditions of each RSU Award, including any purchase price applicable thereto, provided, however, except as permitted in Section 3(b)(iv), RSUs shall vest over no less than a three year period. Unless otherwise provided in an Award Agreement, one-third of the RSUs granted shall vest on each of the first three anniversaries of the grant date. Except as otherwise provided in this Plan or in an Award Agreement, payment in Shares or cash (as applicable) shall be made upon the vesting of an RSU but in no event shall payment be made later than March 15 of the calendar year following the calendar year in which such RSU vests. 
7.4 Restricted Stock Awards. 
(a) Grant Requirements. Restricted Stock may be issued or transferred for no consideration. 
(b) Shareholder Rights. Each Participant who receives Restricted Stock shall have all of the rights of a shareholder with respect to such Restricted Stock, subject to the restrictions set forth in subsection (c), including the right to vote the Restricted Stock and receive dividends. Any Shares or other securities received by a Participant with respect to Restricted Stock in connection with a stock split or combination, share exchange or other recapitalization or as a stock dividend, shall have the same status and be subject to the same restrictions as such Restricted Stock. Any cash dividends attributable to shares of Restricted Stock shall be paid on the date the restrictions with respect to such shares lapse.  Cash dividends attributable to Restricted Stock that is forfeited shall also be forfeited Unless the Committee determines otherwise, certificates evidencing shares of Restricted Stock will remain in the possession of the Company or the 

A-8

Company’s Transfer Agent until such shares are free of all restrictions under the Plan and the Participant has satisfied any federal, state and local tax withholding obligations applicable to such shares. 
(c) Restrictions. Except as otherwise specifically provided in the Plan, Restricted Stock may not be sold, assigned, transferred, pledged, or otherwise encumbered or disposed of during the restricted period. 
(d) Lapse of Restrictions. The restrictions described in subsection (c) shall lapse at such time or times, and on such service-based conditions as the Committee may specify, provided, however, except as permitted in Section 3(b)(iv), Restricted Stock Shares shall vest over no less than a three year period. Unless otherwise provided in an Award Agreement, the restrictions shall lapse with respect to one-third of the Restricted Stock Shares on each of the three anniversaries of the grant date. Upon the lapse of all restrictions, the Shares shall cease to be Restricted Stock for purposes of the Plan. 
(e) Notice of Tax Election. Any Participant making an election under Code section 83(b) for the immediate recognition of income attributable to the award of Restricted Stock must provide a copy thereof to the Company within ten days of the filing of such election with the Internal Revenue Service. 
7.5 SARs. 
(a) Nature of SARs. An SAR entitles the Participant to receive, with respect to each Share as to which the SAR is exercised, the excess of the Share’s Fair Market Value on the date of exercise over its Fair Market Value on the date the SAR was granted. Such excess shall be paid in Shares. Only full Shares shall be issued under the Plan, and any fractional Share that might otherwise be issuable upon exercise of an SAR granted hereunder shall be forfeited. 
(b) Exercise of SARs. An SAR shall become exercisable in such installments, upon fulfillment of conditions (such as performance-based requirements), or on such dates as the Committee may specify in the Award Agreement. Unless otherwise provided in an Award Agreement, one-third of each SAR shall become exercisable on each of the first three anniversaries of the grant date. Any exercise of an SAR must be made by giving notice to the Company at its principal office in accordance with procedures established by the Committee. 
 
7.6 Stock Grants. 
(a) Quarterly Grants. A Stock Grant shall be made automatically to each Nonemployee Director on the first business day of each fiscal year quarter. The Shares subject to each quarterly Award shall be that number of full Shares having a Fair Market Value on the grant date equal to, or if not equal to, closest in value to without exceeding, $32,500. This $32,500 target will generally be reviewed annually by the Board. In conjunction with such review, the Board shall obtain a written report from its third party compensation consultant comparing the amount of cash and equity compensation provided to nonemployee directors in like industries. If the overall compensation provided to the Company’s Nonemployee Directors is not comparable on the basis of this report, the Board may increase the Award amount under this Plan in order to provide comparable overall compensation but in no event may such increase result in an award that exceeds one hundred and fifteen percent of the dollar amount in effect prior to such increase or may the aggregate number of Shares granted under the Plan exceed the number set forth in Section 5 above except as otherwise provided in Section 8.5 Any increase shall be effective on the next following April 1. The Board may also decrease the Award amount. Any increase immediately following such decrease may not result in an amount in excess of the greater of $32,500 or fifteen percent of the dollar amount in effect prior to such increase. 
(b) One-Time Grant. In addition to the quarterly grants to which a Nonemployee Director is entitled, as described in (a) above, upon his or her initial election to the Board, a Nonemployee Director shall receive a Stock Grant for the number of full Shares having a Fair Market Value on the date of his or her appointment to the Board equal to, or if not equal to, closest in value to without exceeding, $120,000 to vest in equal installments over a period of three years, one-third on each anniversary of the grant date. 
(c) Shareholder Rights. Each Nonemployee Director who receives a Stock Grant shall have all of the rights of a shareholder with respect to such Shares, including the right to vote the Shares and receive dividends and other distributions. 
8. Events Affecting Outstanding Awards. 
8.1 Options and SARs. 
(a) Termination of Employment (Other Than by Death or Disability). If a Participant ceases to be an employee of any of the Company and its Related Corporations for any reason other than death, Disability or Retirement, all Options and SARs held by the Participant that were not exercisable immediately prior to the Participant’s termination of employment shall terminate at that time. Any Options or SARs that were exercisable immediately prior to the termination of employment will continue to be exercisable for three months and shall thereupon terminate, unless the Award 

A-9

Agreement provides by its terms for immediate termination or for termination in less than three months in the event of termination of employment in specific circumstances. In no event, however, shall an Option or SAR remain exercisable beyond the latest date on which it could have been exercised without regard to this Section. For purposes of this subsection (a), a termination of employment shall not be deemed to have resulted by reason of a sick leave or other bona fide leave of absence approved for purposes of the Plan by the Committee. 
Notwithstanding the foregoing, if a Participant’s employment is terminated for Cause, all Options and SARs held by such Participant shall terminate concurrently with receipt by the Participant of oral or written notice that his or her employment has been terminated. 
(b) Retirement. If a Participant’s employment is terminated by reason of his or her Retirement, prior to the expiration date fixed for his or her Options or SARs, such Options and/or SARs shall fully vest on the date of the Participant’s Retirement and may be exercised by the Participant at any time prior to the earlier of: 
(i) The expiration date specified in such Option or SAR; or 
(ii) One year after the date of such Retirement. 
(c) Death or Disability. If a Participant dies or incurs a Disability, all Options and SARs held by the Participant immediately prior to death or Disability, as the case may be, shall fully vest on the date of the Participant’s death or Disability and may be exercised by the Participant or by the Participant’s legal representative (in the case of Disability), or by the Participant’s executor or administrator or by the person or persons to whom the Option or SAR is transferred by will or the laws of descent and distribution, at any time within the one-year period ending with the first anniversary of the Participant’s death or Disability (or such shorter or longer period as the Committee may determine, provided any extension does not subject the Option or SAR to Code section 409A), and shall thereupon terminate. In no event, however, shall an Option or SAR remain exercisable beyond the latest date on which it could have been exercised without regard to this Section. 
 
8.2 PSU Awards. 
(a) Termination of Employment (Other Than by Death, Disability or Retirement). A Participant becomes irrevocably entitled to PSU Awards based on achievement of Performance Goals and other conditions when the Performance Goals and other conditions have been met provided the Participant is employed on the last day of the performance period or, if later, when such conditions are met.  If a Participant ceases to be an employee of the Company and its Related Corporations for any reason except as provided in Section 8.2(b) with respect to death or Disability or Retirement, all PSU Awards to which the Participant was not irrevocably entitled prior to the termination of employment shall be forfeited and the Award canceled as of the date of such termination of employment, unless the Committee, in its sole discretion, provides that a Participant (involuntarily terminated without Cause) shall receive the prorated portion of any award amount that would otherwise have been received based on the Performance Goals attained at the end of the performance period.  Such PSU Awards shall be prorated based on the number of full months in the performance period prior to such termination of employment.  Unless otherwise provided in an Award Agreement, Shares attributable to such prorated award shall be delivered during the period from January 1 to March 15 following the end of the performance period.
(b) Death, Disability or Retirement. PSU Awards shall be prorated based on the number of full months in the performance period prior to Retirement, death or Disability. A Participant, or his beneficiary in the event of death, shall receive such prorated portion of any award amount that would otherwise have been received based on the Performance Goals attained at the end of the performance period. Unless otherwise provided in an Award Agreement, Shares attributable to such prorated award shall be delivered during the period from January 1 to March 15 following the end of the performance period. 
8.3 Restricted Stock. Unless otherwise provided in a Participant’s Award Agreement, if the Participant terminates employment for any reason, Restricted Stock must be forfeited to the Company. 
8.4 RSU Awards. Unless otherwise provided in a Participant’s Award Agreement, if the Participant terminates employment for any reason, unvested RSU Awards must be forfeited to the Company. 
8.5 Capital Adjustments. The maximum number of Shares that may be delivered under the Plan, and the maximum number of Shares with respect to which Awards may be granted to any Employee under the Plan, both as stated in Section 5, and the number of Shares issuable upon the exercise or vesting of outstanding Awards under the Plan (as well as the exercise price per Share under outstanding Options and the purchase price per Share, if any, under a RSU Award and the Fair Market Value of a share on the date an outstanding SAR was granted) shall be proportionately adjusted to reflect any increase or decrease in the number of issued Shares resulting from a subdivision (share-split), consolidation (reverse split), stock dividend, or similar change in the capitalization of the Company. In the event any such change in capitalization cannot be reflected in a 

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straight mathematical adjustment of the number of shares issuable upon the exercise or vesting of outstanding Awards (and a straight mathematical adjustment of the exercise price per Share under outstanding Options and the purchase price per Share, if any, under a RSU Award or the Fair Market Value on the date of grant of a SAR) the Committee shall make adjustments to reflect most nearly such straight mathematical adjustments. Such adjustments shall be made only as necessary to maintain the proportionate interest of Participants, and preserve, without exceeding, the value of Awards. For purposes of this Section 8.5, Restricted Stock shall be treated in the same manner as issued Shares not subject to restrictions. Notwithstanding the foregoing (i) no adjustment shall be made to an outstanding ISO if such adjustment would constitute modification under Code section 424(h) unless the Participant consents to such adjustment and (ii) no such adjustment shall be made to an outstanding Option or SAR if such adjustment would cause the Option or SAR to be subject to Code section 409A. 
8.6 Effect of Change in Control. Notwithstanding any other provision of this Plan, if with respect to a Change in Control the surviving or successor entity does not agree to assume the outstanding Awards, (i) all outstanding RSUs and Restricted Stock Awards shall become fully vested, (ii) all Option and SAR Awards shall become exercisable unless the Award Agreement evidencing the Award provides otherwise, and (iii) the performance requirements under any outstanding PSUs are waived and a Participant shall instead vest in his or her PSUs if he or she is employed on the last day of the performance period. A participant who is employed on the last day of the performance period will receive a cash payment with respect to his or her PSUs as if target performance had been attained and based on the value of Shares on the date of the Change in Control. Such payment shall be made during the period from January 1 to March 15 following the end of the performance period. If with respect to a Change in Control the surviving or successor entity does agree to assume the outstanding Awards and a Participant is involuntarily terminated without Cause prior to the twenty-four (24) month anniversary of the Change in Control, then as of the date of the Participant’s termination of employment (i) all outstanding RSUs and Restricted Stock Awards held by the Participant shall fully vest, (ii) all Option and SAR Awards granted to the Participant shall become exercisable unless the Award Agreement evidencing the Award provides otherwise, and (iii) PSU Awards shall be prorated based on the number of full months in the performance period prior to such termination of employment. A Participant shall receive such prorated portion of any award amount that would otherwise have been received based on the Performance Goals attained at the end of the performance period. Unless otherwise provided in an Award Agreement, Shares attributable to such prorated award shall be delivered during the period from January 1 to March 15 following the end of the performance period. Notwithstanding the foregoing, this Section 8.6 shall not increase the extent to which an Award is vested or exercisable if the Participant’s termination of service occurs prior to the Change in Control and provided that the Change in Control shall not accelerate the payment date of any Award that is subject to Code section 409A unless the Change in Control is a change in control event as defined in regulations under Code section 409A. 
 
(a) A “Change in Control” shall mean any of the following events: 
(i) any Person (except for the Company, any employee benefit plan of the Company or of any Affiliate, or any Person or entity organized, appointed or established by the Company for or pursuant to the terms of any such employee benefit plan), together with all Affiliates and Associates of such Person, shall become the Beneficial Owner in the aggregate of fifty percent (50%) or more of the shares of the Company then outstanding and entitled to vote generally in the election of directors; 
(ii) any Person, together with all Affiliates and Associates of such Person, purchases all or substantially all of the assets of the Company; 
(iii) during any twenty-four (24) month period, individuals who at the beginning of such period constituted the Board cease for any reason to constitute a majority thereof, unless the election, or the nomination for election by the Company’s shareholders, of at least seventy-five percent (75%) of the directors who were not directors at the beginning of such period was approved by a vote of at least a majority of the directors in office at the time of such election or nomination who were directors at the beginning of such period; or 
(iv) the Company consummates a merger, consolidation or share exchange (a “Corporate Event”), as a result of which the shareholders of the Company immediately before such Corporate Event shall not hold, directly or indirectly, immediately after such Corporate Event at least a majority of the combined voting power of the voting securities entitled to vote generally in the election of directors of the surviving or resulting corporation, in case of a merger or consolidation, or of the acquiring corporation, in case of the share exchange. 
(b) The capitalized terms used in (a) above shall have the following meanings: 
(i) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act. 
(ii) “Beneficial Owner” of any securities shall mean: 
(A) a Person or any of such Person’s Affiliates or Associates that, directly or indirectly, has the right to acquire such securities (whether such right is exercisable immediately or only after the passage of time) 

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pursuant to any agreement, arrangement or understanding (whether or not in writing) or upon the exercise of conversion rights, exchange rights, warrants or options, or otherwise; provided, however, that a Person shall not be deemed the “Beneficial Owner” of securities tendered pursuant to a tender or exchange offer made by such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for payment, purchase or exchange; 
(B) a Person or any of such Person’s Affiliates or Associates that, directly or indirectly, has the right to vote or dispose of or has “beneficial ownership” of such securities (as determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange Act), including, without limitation, pursuant to any agreement, arrangement or understanding (whether or not in writing); provided, however, that a Person shall not be deemed the “Beneficial Owner” of any security under this subsection (ii) as a result of an oral or written agreement, arrangement or understanding to vote such security if such agreement, arrangement or understanding (A) arises solely from a revocable proxy given in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable provisions of the General Rules and Regulations under the Exchange Act, and (B) is not then reportable by such Person on Schedule 13D or 13G under the Exchange Act (or any comparable successor report); or 
(C) a Person or any of such Person’s Affiliates or Associates that has any agreement, arrangement or understanding (whether or not in writing) with any other Person for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy described in the proviso to subsection (ii) above) or disposing of any voting securities of the Company, in which case such Person shall be the Beneficial Owner of all securities that are Beneficially Owned, directly or indirectly, by such other Person (or any Affiliate or Associate thereof) within the meaning of subsection (i) or (ii) above; 
 
provided, however, that nothing in this subsection (b) shall cause a Person engaged in business as an underwriter of securities to be the “Beneficial Owner” of any securities acquired through such Person’s participation in good faith in a firm commitment underwriting until expiration of forty (40) days after the date of such acquisition. 
(iii) “Person” shall mean any individual, firm, corporation, partnership or other entity. 
8.7 Certain Corporate Transactions. 
(a) In the event of a corporate transaction (as, for example, a merger, consolidation, acquisition of property or stock, separation, reorganization, or liquidation), each outstanding Award shall be assumed by the surviving or successor entity; provided, however, that in the event of a proposed corporate transaction, the Committee may terminate all or a portion of any outstanding Award, if it determines that such termination is in the best interests of the Company. If the Committee decides to terminate outstanding Options and SARs, the Committee shall give each Participant holding an Option or SAR to be terminated not less than ten (10) days’ notice prior to any such termination, and any Option or SAR that is to be so terminated shall become fully exercisable and may be exercised up to, and including the date immediately preceding such termination. Further, the Committee, in its discretion, may accelerate, in whole or in part, the vesting of any Options, SARs, Restricted Stock or RSUs to the extent such Award is not fully exercisable or vested pursuant to the Award Agreement or Section 8.6. 
The Committee also may, in its discretion, change the terms of any outstanding Award to reflect any such corporate transaction, provided that, in the case of ISOs, such change would not constitute a “modification” under section 424(h) of the Code unless the Participant consents to the change, and in the case of an Option or SAR, such change would not constitute a modification causing such Option or SAR to be subject to Code section 409A. 
(b) With respect to an outstanding Award held by a Participant who, following the corporate transaction, will be employed by or otherwise providing services to an entity which is a surviving or acquiring entity in such transaction or an affiliate of such an entity, the Committee may, in lieu of the action described in subsection (a) above, arrange to have such surviving or acquiring entity or affiliate grant to the Participant a replacement award which, in the judgment of the Committee, is substantially equivalent to the Award. 
9. Amendment or Termination of the Plan and Awards. 
(a) Amendment or Termination of Plan. The Board or the Committee, pursuant to a written resolution, may from time to time amend, suspend or terminate the Plan, except that, without the approval of the shareholders (given in the manner set forth in subsection (b) below) - 
(i) no amendment may be made that would - 
(A) change the class of employees eligible to participate in the Plan with respect to ISOs; 
(B) except as permitted under Section 8.5, increase the maximum number of Shares with respect to which ISOs may be granted under the Plan; or 

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(C) extend the duration of the Plan under Section 4(b) with respect to any ISOs granted hereunder; and 
(ii) no amendment may be made that would constitute a modification of the material terms of the “performance goal(s)” within the meaning of Treas. Reg. § 1.162-27(e)(4)(vi) or any successor thereto (to the extent compliance with section 162(m) of the Code is desired); and 
(iii) no amendment may be made for which shareholder approval is required under the rules of the exchange or market on which Shares are listed or traded. 
Notwithstanding the foregoing, no such amendment, suspension or termination of the Plan shall materially impair the rights of any Participant holding an outstanding Award without the consent of such Participant. 
(b) Manner of Shareholder Approval. The approval of shareholders must be effected by the affirmative votes of holders of at least a majority of the shares present, or represented, and entitled to vote at a duly held meeting of shareholders of the Company. 
 
(c) Amendment of Awards. The Committee, subject to the limitation on repricing Options as provided in Sections 3(b)(v) and 7.2(h) may amend, modify or terminate any outstanding Award, including but not limited to, substituting therefor another Award of the same or a different type and converting an ISO to an NQSO, provided that the Participant’s consent to such action shall be required except as provided in Section 8.7(a), as deemed necessary or desirable to avoid the additional tax under Code section 409A or as determined by the Committee that the action, taking into account any related action, would not materially and adversely affect the Participant. Notwithstanding the foregoing, the Committee may not amend or modify an Award to accelerate the vesting of any Option, SAR, PSU, RSU or Restricted Stock, except as provided under the terms of this Plan. Notwithstanding anything to the contrary set forth herein, without the consent of any Participant, the Committee may reduce the number of Shares or PSUs to be awarded upon attainment of Performance Goals at the end of the performance period. If pursuant to Section 3(c) the Committee has not required upon grant that a PSU must qualify as “other performance based compensation,” the Committee may increase the number of Shares to be awarded upon attainment of Performance Goals at the end of the performance period. 
10. Miscellaneous. 
10.1 Documentation of Awards. Awards shall be evidenced by such written documents (“Award Agreements”) as may be prescribed by the Committee from time to time. Such instruments may be in the form of agreements to be executed by both the Participant and the Company, or certificates, letters, or similar instruments, which need not be executed by the Participant but acceptance of which will evidence agreement to the terms thereof. 
10.2 Rights as a Shareholder. Except as specifically provided by the Plan or an Award Agreement, the receipt of an Award shall not give a Participant rights as a shareholder; instead, the Participant shall obtain such rights, subject to any limitations imposed by the Plan or the Award Agreement, upon the actual receipt of Shares. 
10.3 Conditions on Delivery of Shares. The Company shall not deliver any Shares pursuant to the Plan or remove restrictions from Shares previously delivered under the Plan (i) until all conditions of the Award have been satisfied or removed, (ii) until all applicable Federal and state laws and regulations have been complied with, and (iii) if the outstanding Shares are at the time of such delivery listed on any stock exchange, until the Shares to be delivered have been listed or authorized to be listed on such exchange. If an Award is exercised by the Participant’s legal representative, the Company will be under no obligation to deliver Shares pursuant to such exercise until the Company is satisfied as to the authority of such representative. 
10.4 Registration and Listing of Shares. If the Company shall deem it necessary to register under the Securities Act or any other applicable statute any Shares purchased under this Plan, or to qualify any such Shares for an exemption from any such statutes, the Company shall take such action at its own expense. If Shares are listed on any national securities exchange at the time any Shares are purchased hereunder, the Company shall make prompt application for the listing on such national securities exchange of such Shares, at its own expense. Purchases and grants of Shares hereunder shall be postponed as necessary pending any such action. 
10.5 Compliance with Rule 16b-3. All elections and transactions under this Plan by persons subject to Rule 16b-3, promulgated under section 16(b) of the Exchange Act, or any successor to such Rule, are intended to comply with at least one of the exemptive conditions under such Rule. The Committee shall establish such administrative guidelines to facilitate compliance with at least one such exemptive condition under Rule 16b-3 as the Committee may deem necessary or appropriate. Without limiting the generality of the foregoing, each Participant or his or her legal representative or beneficiary may also be required to give satisfactory assurance that such person is an eligible purchaser under applicable securities laws, and that the 

A-13

shares granted pursuant to the Award shall be for investment purposes and not with a view to distribution; certificates representing such shares may be legended accordingly. 
10.6 Tax Withholding. 
(a) Obligation to Withhold. The Company shall withhold from any cash payment made pursuant to an Award an amount sufficient to satisfy all Federal, state, and local withholding tax requirements, including the withholding tax requirements of any jurisdiction outside of the United States (the “Withholding Requirements”). In the case of PSUs, RSUs (pursuant to which Shares may be delivered) or Restricted Stock, the Committee may require that the Participant or other appropriate person remit to the Company an amount sufficient to satisfy the Withholding Requirements, or make other arrangements satisfactory to the Committee with regard to such Withholding Requirements, prior to the delivery or vesting of any Shares. 
(b) Election to Withhold Shares. The Committee, in its discretion, may permit or require the Participant to satisfy the withholding requirements, in whole or in part, by electing to have the Company withhold Shares (except with respect to Restricted Stock in which an election is made as described in Section 7.4(e)), or by returning previously acquired Shares to the Company; provided, however, that the Company may limit the number of Shares withheld to satisfy the Withholding Requirements to the extent necessary to avoid adverse accounting consequences. Shares shall be valued, for purposes of this subsection (b), at their Fair Market Value (determined as of the date an amount is includible in income by the Participant (the “Determination Date”), rather than the date of grant). If Shares acquired by the exercise of an ISO are used to satisfy the Withholding Requirements, such Shares must have been held by the Participant for a period of not less than the holding period described in Code section 422(a)(1) as of the Determination Date. The Committee shall adopt such withholding rules as it deems necessary to carry out the provisions of this Section. 
10.7 Transferability of Awards. No ISO may be transferred other than by will or by the laws of descent and distribution. No other Award may be transferred, except to the extent permitted in the applicable Award Agreement. During a Participant’s lifetime an Award requiring exercise may be exercised only by the Participant (or in the event of the Participant’s incapacity, by the person or persons legally appointed to act on the Participant’s behalf). 
10.8 Registration. If the Participant is married at the time Shares are delivered and if the Participant so requests at such time, the certificate or certificates for such Shares shall be registered in the name of the Participant and the Participant’s spouse, jointly, with right of survivorship. 
10.9 Acquisitions. Notwithstanding any other provision of this Plan, Awards may be granted hereunder in substitution for awards held by employees of other corporations who are about to, or have, become Employees as a result of a merger, consolidation, acquisition of assets, or similar transaction by the Company or a Related Corporation. The terms of the substitute Awards so granted may vary from the terms set forth in this Plan to such extent as the Committee may deem appropriate to conform, in whole or in part, to the provisions of the awards in substitution for which they are granted; provided, however, that no Option shall be granted for less than Fair Market Value as of the date of grant and no Award shall be granted which would be subject to Code section 409A. 
10.10 Employment and Board Membership Rights. Neither the adoption of the Plan nor the grant of Awards shall (i) confer on any person any right to continued employment by the Company or any of its Related Corporations or affect in any way the right of any of the foregoing to terminate an employment relationship at any time, or (ii) be deemed to give any individual any right to continue as a member of the Board or to be nominated for re-election to the Board or limit in any way the right of the shareholders or the Board to remove a director. 
10.11 Indemnification of Board and Committee. Without limiting any other rights of indemnification that they may have from the Company or any of its Related Corporations, the members of the Board and the members of the Committee shall be indemnified by the Company against all costs and expenses reasonably incurred by them in connection with any bona fide claim, action, suit or proceeding to which they or any of them may be a party by reason of any action taken or failure to act under, or in connection with, the Plan or any Award granted thereunder, in their capacity as a member of the Board or Committee and against all amounts paid by them in settlement thereof (provided such settlement is approved by legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except a judgment based upon a finding of willful misconduct or recklessness on their part. Upon the making or institution of any such claim, action, suit or proceeding, the Board or Committee member shall notify the Company in writing, giving the Company an opportunity, at its own expense, to handle and defend the same before such Board or Committee member undertakes to handle it on his or her own behalf. The provisions of this Section shall not give members of the Board or the Committee greater rights than they would have under the Company’s by-laws or Pennsylvania law. 

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10.12 Application of Funds. Any cash proceeds received by the Company from the sale of Shares pursuant to Awards granted under the Plan shall be added to the general funds of the Company. Any Shares received in payment for additional Shares upon exercise of an Option shall become treasury stock. 
10.13 Governing Law. The Plan shall be governed by the applicable Code provisions to the maximum extent possible. Otherwise, the laws of the Commonwealth of Pennsylvania (without reference to the principles of conflict of laws) shall govern the operation of, and the rights of Employees under, the Plan and Awards granted hereunder. The Awards under this Plan are intended to be exempt from, or if not exempt, to comply with, the requirements of Code section 409A and the Plan is to be construed and interpreted in accordance with Code section 409A to that end. 
10.14 Prohibition Against Cash Buyout of Awards Under the Plan.  Notwithstanding any provision of this Plan to the contrary (other than Sections 8.5 and 8.7), the Committee shall not modify any Option or SAR without stockholder approval if the effect of such modification would be to (i) reduce an option price of an Option or the grant price of an SAR; (ii) cancel an Option or SAR in exchange for other Awards under the Plan; (iii) cancel an Option or SAR in exchange for an Option or SAR with an option price or grant price, respectively, that is less than the option price or grant price of the cancelled Option or SAR, respectively; or (iv) cancel an Option or SAR in exchange for cash; and provided, further , that no such replacement shall deprive the Participant of any rights he or she may have pursuant to Section 8.7, which shall apply to the replacement Award to the same extent as to the replaced Award.
10.15 Clawback. Notwithstanding any other provisions in this Plan, any Award which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement).
IN WITNESS WHEREOF, Kulicke and Soffa Industries, Inc. has caused this Plan to be duly executed this                  day of                     , 2017. 

	
			
	KULICKE AND SOFFA INDUSTRIES, INC.

	By:
	 
	/s/ Fusen Chen

	 
	 
	Fusen Chen
President and Chief Executive Officer

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KULICKE AND SOFFA INDUSTRIES, INC.

2017 EQUITY PLAN 

2017 ISRAEL ADDENDUM

		
	1.
	Purpose of the Addendum:  This 2017 Israeli Addendum shall form an integral part of the 2017 Equity Plan and any amendments thereto (the “Plan”) of Kulicke and Soffa Industries, Inc. (the "Company"), and it shall apply only to Employees who are (i) deemed residents of the State of Israel for the purpose of Israeli tax laws; and (ii) employed by the Company or any of its Israeli Related Corporations.

This Addendum modifies the Plan so that it shall comply with the requirements of the Israel Tax Ordinance. 
The Plan and this Addendum are complimentary to each other and shall be read and deemed as one. Any requirements provided in this Addendum shall be in addition to the requirements provided in the Plan and the Grant Letter. In the event of a conflict, whether explicit or implied, between the provisions of the Plan and this Addendum, the latter shall govern and prevail.

		
	2.
	Definitions:  

		
	2.1.
	Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meaning in this Addendum. 

		
	2.2.
	For the purposes of this Addendum, the following terms shall have the meaning ascribed thereto as set forth below:

		
	(a)
	"Addendum" means this 2017 Israel Addendum, as amended from time to time.

		
	(b)
	"Additional Rights" means any distribution of rights, including an issuance of bonus shares, in connection with Section 102 Trustee Options (as defined below) and/or with the shares issued upon exercise of such Options. 

		
	(c)
	"Controlling Shareholder" shall have the same meaning ascribed to it in Section 32(9) of the Tax Ordinance (as defined below).

		
	(d)
	"Employee" shall have the same meaning ascribed to it in the Plan, provided however, that with regard to Section 102 Trustee Options and Section 102 Non-Trustee Options (as such terms are defined below) such person is not a Controlling Shareholder prior to and/or after the issuance of the Options.

		
	(e)
	"Lock-up Period" means the period during which the Section 102 Trustee Options granted to an Employee as well as any Additional Rights distributed in connection therewith are to be held by the Trustee on behalf of the Employee, in accordance with Section 102, and pursuant to the tax route which the Company elects. 

		
	(f)
	"Option" means ISOs or NQSOs (as defined in the Plan) entitling the Participant on exercise thereof to purchase Shares at a specified exercise price for a specified period of time.

		
	(g)
	"Section 3(i)" means Section 3(i) of the Tax Ordinance and the applicable rules or regulations thereto, all as amended from time to time.

		
	(h)
	"Section 3(i) Option" means an Option granted pursuant to Section 3(i).

		
	(i)
	"Section 102" means Section 102 of the Tax Ordinance, and any regulations, rules, orders or procedures promulgated thereunder, including the Income Tax Rules (Tax Relief for Issuance of Shares to Employees), 2003, all as amended from time to time.  

		
	(j)
	“Section 102 Trustee Option" means an Option or Shares intended to qualify under the provisions of Section 102(b) of the Tax Ordinance (including the Section 102(b) Route Election), as either:

		
	i.
	“Ordinary Income Option Through a Trustee” for the special tax treatment under Section 102(b)(1) and the “Ordinary Income Route”, or 

		
	ii.
	“Capital Gain Option Through a Trustee"” for the special tax treatment under Section 102(b)(2) and the “Capital Route”.

		
	(k)
	“Section 102(b) Route Election” means the right of the Company to choose either the “Capital Route” (as set under Section 102(b)(2)), or the “Ordinary Income Route” (as set under Section 102(b)(1)), but subject to the provisions of Section 102(g) of the Tax Ordinance, as further specified in Section 5 below. 

		
	(l)
	“Section 102 Non-Trustee Option” means an Option or Shares granted not through a trustee under the terms of Section 102(c) of the Tax Ordinance.

		
	(m)
	"Shares" means shares of common stock of the Company, no par value. Including Restricted Stock and RSU's except for RSU's which are represented by value.

		
	(n)
	“Tax Ordinance” means the Israeli Income Tax Ordinance (New Version), 1961, as amended.

A-16

		
	(o)
	"Trustee" means a person or an entity, appointed by the Committee and approved in accordance with the provisions of Section 102, to hold in trust on behalf of the Employees the granted Options as well as all Additional Rights granted in connection therewith, in accordance with the provisions of Section 102.   

		
	(p)
	"Trust Agreement" means a written agreement between the Company and the Trustee, which sets forth the terms and conditions of the trust and is in accordance with the provisions of Section 102.

		
	3.
	Administration:  Further to the authorities of the Committee, as detailed in Section 3 of the Plan, with regard to this Addendum, the Committee shall have full power and authority, at all times, to: (i) designate Options as Section 102 Trustee Option, Section 102 Non-Trustee Option or Section 3(i) Options, all of which shall be included in the definition of Option under the Plan; (ii) make a Section 102(b) Route Election (subject to the limitations set under Section 102(g)); and (iii) determine any other matter and execute any document which are necessary or desirable for, or incidental to, the administration of this Addendum and the grant of Options hereunder and the compliance with the laws and regulations of Israel in respect of the Plan, including without limitation the regulations under Section 102. 

		
	4.
	Eligibility:  Subject to the terms and conditions of the Plan, Section 102 Trustee Options and Section 102 Non-Trustee Options may be granted only to Employees of the Company or a Related Corporation, provided that such Related Corporation is an "employing company" within the meaning of Section 102(a) of the Tax Ordinance. Section 3(i) Options may be granted only to Employees who are Controlling Shareholders prior to and/or after the issuance of the Options.

		
	5.
	Section 102(b) Route Election:  No Section 102 Trustee Options may be granted under this Addendum to any eligible Employee, unless and until, the Company's election of the type of Section 102 Trustee Options, either as "Ordinary Income Options Through a Trustee" or as "Capital Gain Options Through a Trustee" and the selection is appropriately filed with the Income Tax Authorities before the first date of grant of Section 102 Trustee Options. Such Section 102(b) Route Election shall become effective beginning the first date of grant of a Section 102 Trustee Options under this Addendum and shall remain in effect until the end of the year following the year during which the Company first granted Section 102 Trustee Options The Section 102(b) Route Election shall obligate the Company to grant only the type of Section 102 Trustee Options it has elected, and shall apply to all Employees who were granted Section 102 Trustee Options during the period indicated herein, all in accordance with the provisions of Section 102(g) of the Tax Ordinance. For avoidance of doubt, it is clarified that the Company does not obligate itself to file a Section 102(b) Route Election, and in any case, such Section 102(b) Route Election shall be at the sole discretion of the Company. It is further clarified that such Section 102(b) Route Election shall not prevent the Company from granting Section 102 Non-Trustee Options simultaneously.  

		
	6.
	Trustee: 

		
	6.1.
	Section 102 Trustee Options, which shall be granted under the Addendum shall be issued to the Trustee who shall hold the same in trust for the benefit of the Employees at least for the Lock-up Period. Upon the expiration of the Lock-up Period and subject to any further period included in the Plan and/or in the Grant Letter, the Trustee may release Section 102 Trustee Options to Employee only after the Employee's full payment of his or her tax liability in connection therewith due pursuant to the Tax Ordinance. It is hereby clarified that Employees will only be entitled to exercise Options, provided the underlying shares are being sold concurrently upon said execution, all subject to the provisions of Section 6.2 below.  

		
	6.2.
	Notwithstanding the above, in the event an Employee shall elect to release the Section 102 Trustee Options prior to the expiration of the Lock-up Period, the sanctions under Section 102 shall apply to and shall be borne solely by the Employee.

		
	6.3.
	Any Additional Rights distributed to the Employees shall be deposited with and/or issued to the Trustee for the benefit of the Employees, and shall be held by the Trustee for the applicable Lock-up Period in accordance with the provisions of Section 102 and the elected tax route.

		
	6.4.
	Upon receipt of Options, the Employee will sign the Grant Letter, which shall be deemed as the Employee’s undertaking to exempt the Trustee from any liability in respect of any action or decision duly taken and bona fide executed in relation with the Plan, the Addendum and any Option or other rights received by the Employee in connection therewith. 

		
	6.5.
	The Trustee and the Employees shall comply with the Tax Ordinance, Section 102 and the provisions of the Trust Agreement.

		
	7.
	Issuance of Section 102 Trustee Options:  The Company may grant Section 102 Trustee Options only after the passage of thirty (30) days' following the delivery, to the appropriate Israeli Income Tax Authorities, of a request for approval of the Plan and the Addendum as well as the Trustee according to Section 102. Notwithstanding the above, if within ninety (90) days following the delivery of such request, the tax officer notifies the Company of its decision not to approve the Plan and/or the Addendum, the Options, which were intended to be granted as Section 102 Trustee Options, shall be deemed to be Section 102 Non-Trustee Options, unless otherwise was approved by the tax officer. 

		
	8.
	Fair Market Value:  Without derogating from the definition of Fair Market Value in the Plan and solely for the purpose of determining the tax liability with respect to the grant of Capital Gain Options Through a Trustee pursuant to Section 102, the Fair Marker Value of the Shares on the date of grant shall be equal to the average value of the Company’s Shares 

A-17

on the thirty (30) trading days preceding the date of grant, all in accordance with the provisions of Section 102(b)(3) of the Tax Ordinance. 
		
	9.
	Tax Consequences:  

		
	9.1.
	Any tax consequences arising from the grant or exercise of any Options or Shares or from the payment for Shares covered thereby or from any other event or act (of the Employee, the Company, a Related Corporation or the Trustee) hereunder, shall be borne solely by the Employee. The Company and/or any Related Corporation and/or the Trustee shall withhold taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes at source. The Company and/or the Trustee shall not be required to release any share certificate to the Employee until all required payments have been fully made. 

Furthermore, the Employee shall agree to indemnify the Company and/or any Related Corporation that employs the Employee and the Trustee and hold them harmless against and from any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold, or to have withheld, any such tax from any payment made to the Employee.
		
	9.2.
	In the event an Employee shall cease to be employed by the Company or a Related Corporation for any reason, the Employee shall be obligated upon the Company's, a Related Corporation's or the Trustee's first demand to provide the Company, the Related Corporation or  the Trustee with a security or guarantee, in the degree and manner satisfactory to them, to cover any future tax obligation resulting from the disposition of the Options and/or the shares acquired thereunder. 

		
	9.3.
	With regard to Section 102 Trustee Option, to the extent Section 102 and/or the Assessing Officer's approval require the Addendum to contain specified provisions in order to qualify such Options or Shares for preferential tax treatment, such provisions shall be deemed to be stated in this Addendum and to be an integral part hereof. 

		
	10.
	Continuance of Engagement: Nothing in the Plan or this Addendum shall be deemed to (i) create an employee-employer relationship between a recipient of an Option or Shares and the Company, or (ii) add to, supplement or otherwise alter any employment term or condition that may be in effect by contract or by law in respect of the relationship between the recipient of an Option or Shares and the direct employer of such recipient. Any grant under the Plan is voluntary on the part of the Company, and the Company explicitly denies and negates any continuing obligation, custom or practice in connection with the Plan or any grants made thereunder.  Any gain or benefit to a recipient of an Option or Shares shall not accrue or be deemed a benefit or entitlement under any employment term of such employee for any purpose, and it will not be regarded as part of the employee’s salary or social benefit, including, without limitation, for the purpose of severance payment.

		
	11.
	Non-Transferability: Notwithstanding anything in Section 10.7 of the Plan to the contrary, with regard to Section 102 Trustee Options, as long as such Options are held by the Trustee on behalf of the Employee, all rights of the Employee with respect thereto are personal and cannot be transferred, assigned, pledged or mortgaged, other than by will or by the laws of descent and distribution.

		
	12.
	Governing Tax Law:  This Addendum and all instruments issued thereunder or in connection therewith shall be governed by and construed and enforced in accordance with the tax laws of the state of Israel, without giving effect to the principles of conflict of laws.

		
	13.
	Effectiveness:  This Addendum shall be effective with respect to Options granted on or after its adoption by the Company. 

*    *    *

A-18Exhibit

Exhibit 10.1

RAVEN INDUSTRIES, INC.

AMENDED AND RESTATED  
EMPLOYMENT AGREEMENT

This Amended and Restated Employment Agreement (“Agreement”), effective as of March 29, 2017  (the “Effective Date”), is made by and between Raven Industries, Inc., a South Dakota corporation (the “Company”) and Daniel A. Rykhus (“Executive”).
Recitals
A.    Executive and the Company are parties to that certain Senior Executive Officer Employment Agreement dated February 1, 2009, which currently remains in effect (the “Prior Employment Agreement”), pursuant to which the Company provides certain benefits to Executive.
B.    Executive and the Company are parties to that certain Amended and Restated Change in Control Agreement dated as of March 28, 2016, which currently remains in effect (the “Change in Control Agreement”), pursuant to which the Company provides economic security for Executive after a specified change of control of the Company.
C.    Executive and the Company desire to alter, amend and restate each of the Prior Employment Agreement and the Change in Control Agreement into this Agreement, and Executive and the Company desire this Agreement to replace and supersede in its entirety each of the Prior Employment Agreement and the Change in Control Agreement.
D.    The severance compensation provisions of this Agreement are intended to comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the Treasury Regulations issued under Code Section 409A (the “409A Regulations”), and other guidance issued under Code Section 409A, to prevent premature income taxes and a 20% penalty from applying to any severance compensation benefits earned by Executive under this Agreement.
E.    The Company has entrusted and will continue to entrust Executive with certain “Confidential Information” (defined below) that is necessary for Executive to perform Executive’s work for the Company, and the Company has entrusted and will continue to entrust Executive with the goodwill of and relationships with certain “Company Customers” (defined below).  Executive agrees that, during employment and for a reasonable period of time after a “Termination of Employment” (defined below), the Company has the right through the restrictions in this Agreement on Executive’s competitive activities, all of which Executive agrees are reasonable, lawful, and enforceable restrictions, to protect its Confidential Information, “Inventions” (defined below), goodwill of and relationships with Company Customers, and investment in its workforce.  
NOW, THEREFORE, in consideration of the foregoing recitals, premises and mutual covenants herein contained, and intending to be legally bound hereby, Executive and the Company hereby agree as follows:

1

Exhibit 10.1

1.    Definitions.
1.1    “Accountants” means an accounting firm selected by the Company, which is reasonably acceptable to Executive and whose consent shall not be unreasonably withheld.

1.2    “Board” means the Board of Directors of the Company.

1.3    “Cause” shall mean any of the following circumstances:

(a)    Executive has committed willful misconduct that materially injures or causes a material loss to the Company and a material benefit to Executive or third parties, as for example, by embezzlement, appropriation of corporate opportunity, conversion of tangible or intangible corporate property or the making of agreements with third parties in which Executive or anyone related to or associated with Executive has a direct or indirect interest; or
(b)    The reasonable good faith determination by the Company that Executive has materially violated any or all of Section 9 (Confidential Information), Section 11 (Conflicting Employment), Section 13 (Solicitation of Employees), Section 14 (Solicitation of Company Customers) or Section 15 (Covenant Not to Compete), which violation, if it is capable of cure by Executive, has continued for at least 10 days after the Company gives Executive a written notice describing such violation; provided, however,

(c)    For the avoidance of ambiguity, the term “Cause” does not include a termination occasioned by Executive’s ill-advised good faith judgment or negligence in connection with the Company’s business.

1.4    “Change in Control” shall mean:

(a)    Any transaction or series of related transactions pursuant to which any person, entity or “group,” within the meaning of Section 13(d) or 14(d) of the ‘34 Act  becomes directly or indirectly the beneficial owner (within the meaning of Rule 13d-3 promulgated under the ‘34 Act) of 25% or more of the then outstanding shares of the Company’s common stock; or

(b)    Individuals who, as of the Effective Date, constitute the Board of Directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided, that any person becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Company, under Rule 14a-12(c) of Regulation 14A promulgated under the ‘34 Act) shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent Board; or

(c)    Approval by the shareholders of the Company of (A) a reorganization, merger or consolidation, in each case, with respect to which persons who were the shareholders of the Company immediately prior to such reorganization, merger or consolidation do not, immediately thereafter, own more than 50% of the combined voting power of the reorganized, merged or consolidated company's 

2

Exhibit 10.1

then outstanding voting securities entitled to vote generally in the election of directors of the reorganized, merged or consolidated company, or (B) a liquidation or dissolution of the Company or (C) the sale of all or substantially all of the assets of the Company. If Executive is employed by a Subsidiary, a sale of the assets, stock or business of the Subsidiary will not, in and of itself, be considered a “Change in Control” with respect to the Company.  

1.5    “CIC Protection Period” shall mean the two (2) year period after the date a Change in Control occurs. 

1.6    “Conflicting Organization” means any person or entity (regardless of its legal form), including Executive, that engages in, is actively planning to become engaged in, or desires to become engaged in (a) “Competitive Research” (defined below), and/or (b) researching, inventing, designing, manufacturing, developing, producing, marketing, promoting, selling, soliciting the sales of, supporting, providing, or servicing of a product or service that competes with or would compete with a “Company Product” (defined below).

1.7    “Company Customers” mean, during the 24-month period prior to the termination of Executive’s employment, any and all persons or entities (a) to whom or which the Company sold, solicited sales, supported, marketed, serviced, provided, or promoted Company Products, or (b) about whom or which Executive acquired Confidential Information or Trade Secrets.

1.8    “Company Product” means, during the 24-month period prior to the termination of Executive’s employment, any product or service that the Company researched, invented, designed, manufactured, developed, produced, marketed, promoted, sold, solicited sales of, supported, provided, or serviced in the course of its business.  A Company Product also means any product or service with respect to which Executive received, used, or learned Confidential Information or Trade Secrets.

1.9    “Competitive Research” means any research or development of any kind or nature conducted by anyone other than the Company, including without limitation theoretical and applied research, which is intended for, or may be useful in, any aspect of researching, inventing, designing, manufacturing, developing, producing, marketing, promoting, selling, soliciting sales of, supporting, providing, or servicing of products or services that compete or would compete with any Company Product.

1.10    “Confidential Information” means any and all proprietary information relating to the Company’s business (and that of its affiliated entities) that derives and provides the Company with independent economic value from not being generally known or available to a Conflicting Organization or others that would obtain economic value from its disclosure or use.  Here are the categories of materials that consist of or could consist of Confidential Information:  Lists, names, and other information pertaining to Company Customers (including information developed, stored, and maintained in the Company’s customer relationship management system); sales and marketing plans, methods, and strategies for growing the Company’s business; methods and plans for how the Company engages in its business including the design of its deliverables, processes and process development activities for Company Customers; prospect lists and information; price lists and information; development projects; graphic designs; product research and development; financial statements, information and projections; management systems and procedures; supplier lists; sales techniques; computer programs, software, and 

3

Exhibit 10.1

software specifications and information; results of any research and development, whether complete or in process; any other information that the Company identifies as Confidential Information; a Company Customer’s confidential information and trade secrets that it entrusts to the Company; and any and all originals and copies, pictures, facsimiles or other reproductions or recordings or any abstracts or summaries of the foregoing.  Failure to mark any of the Confidential Information as confidential or proprietary will not affect its status as Confidential Information.

1.11    “Constructive Termination” shall mean Executive’s voluntary Termination of Employment by reason of:

(a)    a material, adverse change of Executive’s responsibilities, authority, status, position, offices, titles or duties; provided, that (1) the fact that the Company is a subsidiary of an acquirer or a division of an acquirer, or (2) a change in Executive’s employment from a Subsidiary to the Company or another Subsidiary shall in either event not, in and of itself, be considered a material change to the Employee’s responsibilities, authority, status, position, offices, titles or duties and any appropriate change in title related to such events shall not, in and of itself, be considered a material change to Executive’s responsibilities, authority, status, position, offices, titles or duties;

(b)    a material adverse change in Executive’s annual compensation or benefits;

(c)    a requirement to relocate in excess of fifty (50) miles from Executive’s then current place of employment without Executive’s consent; or

(d)    the material breach by the Company of any provision of this Agreement or failure to fulfill any other material contractual duties owed to Executive.

For the purposes of this definition, Executive’s responsibilities, authority, status, position, offices, titles and duties are to be determined as of the Effective Date; provided, however, if such term is being used as it relates to the CIC Protection Period only, Executive’s responsibilities, authority, status, position, offices, titles and duties are to be determined as of the day immediately before a Change in Control.

Notwithstanding the provisions of Sections 1.11(a), (b), (c) or (d) above, no voluntary Termination of Employment by Executive will constitute a Constructive Termination unless Executive shall have provided written notice to the Company within 90 days after an occurrence described in paragraphs Sections 1.11(a), (b), (c) or (d) above. The notice will (A) describe Executive’s intention to voluntarily terminate Executive’s employment; (B) state a Date of Termination that is least 30 days after Executive’s delivery of the notice and (C) set forth in reasonable detail the conduct that Executive believes to be the basis for the Constructive Termination; and such Constructive Termination will take effect if the Company thereafter fails to correct such conduct (or commence action to correct such conduct and diligently pursue such correction to completion) within 30 days following the Company’s receipt of such notice.

1.12    “Covered Group” means Executive, his spouse and eligible dependents.

1.13    “Covered Payments” means the payments or benefits provided or to be provided by the 

4

Exhibit 10.1

Company or its affiliates to Executive or for Executive’s benefit pursuant to the terms of this Agreement or otherwise.

1.14    “Date of Termination” shall mean:

(a)    if Executive voluntarily terminates employment with the Company, the later of (i) a Date of Termination (if any) stated in Executive’s Notice of Termination, or (ii) the date on which Executive delivers the Notice of Termination to the Company; or

(b)    if Executive’s employment is terminated by the Company, the date on which the Company delivers a Notice of Termination to Executive.

1.15    “Excise Tax” means the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes.

1.16    “Inventions” means inventions, original works of authorship, developments, concepts, improvements or Trade Secrets, whether or not patentable or registrable under copyright or similar laws, which Executive may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period of time Executive is in the employ of the Company.

1.17    “Medical Plan” means any group hospital, medical or dental plan of the Company.

1.18    “Notice of Termination” means a written notice which shall indicate those specific Termination of Employment provisions in this Agreement that are being relied upon. Any Termination of Employment by the Company or Executive shall be communicated by a Notice of Termination.

1.19    “Parachute Payments” means parachute payments within the meaning of Section 280G of the Code.

1.20    “Prior Inventions” means inventions, original works of authorship, developments, improvements, and Trade Secrets which were made by Executive prior to Executive’s employment with the Company.

1.21    “Termination of Employment” means, solely for purposes of this Agreement, Executive’s “separation from service” from the Company, for any reason, voluntary or involuntary, other than Executive’s death; provided, that this definition shall be interpreted to comply with the 409A Regulations, including without limitation the provisions that define an employer by reference to certain affiliated employers.

1.22    “Senior Executive Officer Policy” means the Company’s Senior Executive Officer Policy attached here to as Schedule A and incorporated herein by reference.

1.23    “Short Term Incentive Plan” means the Company’s Short Term Incentive Plan in effect as of the Effective Date and all amendments, modifications, and successors thereto.

5

Exhibit 10.1

1.24    “Subsidiary of the Company” means any corporation as to which the Company owns a majority of the voting securities.

1.25    “Third Party Confidential Information” means the confidentiality of information disclosed by third parties to the Company or Executive.

1.26    “Trade Secrets” means trade secrets as defined by the South Dakota Uniform Trade Secrets Act.

1.27    “‘34 Act” means the Securities Exchange Act of 1934, as amended.

2.    Employment. Subject to the terms and provisions set forth in this Agreement, Executive shall continue in the employ of the Company in a senior executive capacity, with such duties, powers and authority as are assigned to Executive from time to time by the Board, and with access to the Company’s Confidential Information.

3.    Agreement Term. This Agreement shall commence on the Effective Date and shall continue in effect until terminated in accordance with Section 6; provided, however, that each party shall remain bound by the terms and provisions of this Agreement that survive the termination in accordance with Section 20.10. 

4.    Compensation.  As full compensation for Executive’s services under this Agreement, Executive shall receive compensation as determined by the Board, and Executive shall be eligible to receive the fringe benefits, as are provided generally to all senior executive officers of the Company, that are listed on the Senior Executive Officer Policy.  Subject to Section 20.1, the Company may change or terminate any fringe benefit provided by the Senior Executive Officer Policy from time to time while Executive is employed, so long as the change affects all senior executive officers. 
 
5.    Compensation and Fringe Benefits.  Without limiting the provisions of Sections 6.2 and 6.3 of this Agreement and subject to Section 5.1(d), Executive shall be entitled to receive the benefits under this Section 5 if, upon the Termination of Employment or death of Executive, Executive has either (a) attained age 65 or (b) the sum of Executive’s age (as of his nearest birthday) and years of service with the Company (to the nearest whole year) equals 80 or more.

5.1    Medical Benefits.  Executive shall be entitled, at the Company’s expense, to the following benefits in addition to any retirement benefits to which Executive may be entitled under any qualified or non-qualified retirement plan maintained by the Company:

(a)Until the later to die of Executive or his spouse, continuation of coverage under the Medical Plan for the Covered Group; provided, that if Executive and his spouse are divorced, the benefits for such spouse shall be discontinued; and further provided that if such spouse remarries after the death of Executive, such coverage shall continue for such spouse after the date of remarriage only if the spouse pays to the Company the group premium for such coverage.  Prior to a member of the Covered Group becoming eligible for Medicare, the benefits to which that member of the Covered Group is entitled shall be at least equal to the benefits to which that member of the Covered Group would have 

6

Exhibit 10.1

been entitled under the Medical Plan as if Executive had not separated from service.  Upon eligibility of a member of the Covered Group for Medicare, coverage provided by Medicare shall be primary and the Medical Plan shall provide additional benefits such that the total benefits (i.e., Medicare and the Medical Plan) are at least equal to the benefits that members of the Covered Group would have been entitled under the Medical Plan on the Termination of Employment or at the death of Executive.

(b)Until the death of the last to die of Executive or his spouse, payment of uninsured medical expenses (including, but not limited to any deductibles and coinsurance) for Executive, his spouse and his eligible dependents up to an annual limit of 10% of Executive’s highest annual compensation (salary and bonus) during any one of his last five calendar years of employment; provided, that if Executive and his spouse are divorced, or if such spouse remarries after the death of Executive, such coverage shall be discontinued for such spouse.  The medical expenses to be covered and the timing of payment of such medical expenses shall be based on the terms of the Raven Industries, Inc. Executive Supplemental Medical Plan as in effect on the Termination of Employment or at the death of Executive.  If such plan is not in effect on the Termination of Employment or at the death of Executive and has not been replaced by a similar plan, medical expenses reimbursed shall be those expenses that would be deductible under Section 213 of the Internal Revenue Code of 1986 as in effect at the date of this Agreement (without regard to any provisions making such expenses deductible only to the extent they exceed a percentage of adjusted gross income), and all such expenses shall be paid or reimbursed within 15 days after presentation of invoices.

(c)If for any reason after the date of Executive’s retirement, Executive is not permitted to participate in any of the plans or programs referred to in Section 5.1(a) or (b), or if any such plans or programs are amended to provide lesser benefits or are terminated, the Company, at its sole expense, shall arrange to provide Executive with benefits substantially similar to those to which Executive would otherwise have been entitled but for such amendment or termination. 

(d)If the Company, in good faith, determines that (i) Executive has violated any or all of Section 9 (Confidential Information), Section 11 (Conflicting Employment), Section 13 (Solicitation of Employees), Section 14 (Solicitation of Company Customers) or Section 15 (Covenant Not to Compete) of this Agreement, which violation, if it is capable of cure by Executive, has continued for at least 10 days after the Company gives Executive a written notice describing such violation or (ii) Executive, at any time while receiving the payments under this Section 5.1, is employed by or otherwise performs services in any other capacity for a Conflicting Organization in connection with or relating to Competitive Research or a product or service that competes with a Company Product, then in addition to any remedy the Company may be entitled at law or in equity, the Company may discontinue payments under this Section 5.1 upon written notice to Executive.

5.2    Tax Gross-Up.  To the extent that all or any of the payments under Section 5.1 made in a calendar year are subject to federal, state, or local income tax, the Company shall pay to Executive (or his spouse if Executive is deceased or his estate if he is not survived by a spouse) a Gross-Up Amount before April 15 of the following year.  The term “Gross-Up Amount” means an amount, after the payment of federal, state and local income tax on such amount, that is necessary to pay the federal, state and local income tax on the taxable payments for such calendar year. For purposes of determining the Gross-Up Amount, Executive shall be considered to pay federal, state and local income taxes at the highest marginal 

7

Exhibit 10.1

rate, net of the maximum reduction in federal income taxes that could be obtained from the deduction of state and local taxes. 

6.    Termination; Severance Payments.

6.1    At-Will Employment.  Executive and the Company agree that Executive’s employment is at-will and either Executive or the Company may terminate Executive’s employment at any time, for any reason or no reason, and no provision contained herein shall affect the Company’s ability to terminate Executive’s employment at any time, with or without “Cause” (defined above).  Nothing in this Agreement, the Company’s 2010 Stock Incentive Plan, or any other plan or program of compensation or benefits in which Executive participates at the Company guarantees continued employment or creates an expectation of continued employment; provided however, that each party shall remain bound by the terms and provisions of this Agreement that survive the termination in accordance with Section 20.10.

6.2    Severance Compensation upon Termination of Employment by Company without Cause or by Executive’s Constructive Termination.  If, at any time outside of the CIC Protection Period (which is provided for in Section 6.3 below), there occurs: (a) except in the case of Executive’s death, Executive’s Termination of Employment by the Company without Cause or (b) Executive’s Constructive Termination, then, subject to Executive continuing to fulfill his obligations under Sections 6.2(b), 6.5 and 12 hereof:

(a)    The Company shall pay Executive any earned and accrued but unpaid installment of base salary through the Date of Termination at the rate in effect at the time Notice of Termination is given and all other unpaid amounts to which Executive is entitled as of the Date of Termination under any compensation plan or program of the Company, including, without limitation, all accrued vacation time; such payments to be made in a lump sum on or before the fifth day following the Date of Termination;

(b)    In lieu of any further salary payments to Executive for periods subsequent to the Date of Termination, the Company shall pay to Executive an amount equal to the sum of (A) the product of (i) Executive’s annual base salary in effect as of the Date of Termination and the target payment for that full year under the Short Term Incentive Plan (ii) and the number 2;  plus (B) the target amount under the Short Term Incentive Plan on a prorated basis for the period of the Company’s then current fiscal year which Executive is employed by the Company prior to the Date of Termination; such payment to be made in a lump sum on or before the 60th calendar day following the Date of Termination; provided, that no such payment will be made unless Executive has entered into and delivered to the Company the separation agreement and general release described in Section 6.5 below, and any period during which Executive may revoke or rescind such release and covenant has expired before that 60th day; and provided further, that if, as of the Date of Termination: (x) any payment due under this Section 6.2 is reasonably deemed by the Company to be “deferred compensation” (as defined in the 409A Regulations), (y) any portion of the payment due under this Section 6.2 would exceed the sum of the applicable limited separation pay exclusions as determined pursuant to the 409A Regulations and (z) Executive is treated as a specified employee (as defined in the 409A Regulations), then payment of such excess amount shall be delayed until the six-month anniversary of the Date of Termination. If Executive continues to perform any services (as an employee or otherwise) for the Company or a Subsidiary of the Company after the Date of Termination, such six-month period shall be measured from the date of Executive's “separation 

8

Exhibit 10.1

from service” as defined pursuant to the 409A Regulations; and
(c)    Notwithstanding anything stated in any other agreement between the Company and Executive that may be construed to the contrary, the Company shall cause any unvested portion of Executive’s restricted stock units, performance awards and any other equity awards granted to Executive under the Company’s 2010 Stock Incentive Plan, as amended, to immediately vest in full to the extent not already vested.  Any performance awards will vest at the target level.

6.3    Severance Compensation upon a Change in Control and Termination of Employment.  If (a) a Change in Control of the Company shall have occurred while Executive is an employee of the Company and (b) during the CIC Protection Period there occurs: (i) except in the case of Executive’s death, Executive’s Termination of Employment by the Company without Cause, or (ii) Executive’s Constructive Termination, then, subject to Executive continuing to fulfill his obligations under Sections 6.3(b), 6.5 and 12 hereof:  

(a)    The Company shall pay Executive any earned and accrued but unpaid installment of base salary through the Date of Termination at the rate in effect at the time Notice of Termination is given and all other unpaid amounts to which Executive is entitled as of the Date of Termination under any compensation plan or program of the Company, including, without limitation, all accrued vacation time; such payments to be made in a lump sum on or before the fifth day following the Date of Termination;

(b)    In lieu of any further salary payments to Executive for periods subsequent to the Date of Termination, the Company shall pay to Executive an amount equal to the product of (A) the sum of (i) Executive’s annual base salary in effect as of the Date of Termination and (ii) the target amount under the Short Term Incentive Plan for the year in which such Date of Termination occurs and (B) the number 2.5; such payment to be made in a lump sum on or before the 45th calendar day following the Date of Termination; provided, that no such payment will be made unless Executive has executed and delivered to the Company the release and covenant described in Section 6.5 below, and any period during which Executive may revoke or rescind such release and covenant has expired before that 45th day; and provided further, that if, as of the Date of Termination: (x) any payment due under this Section 6.3 is reasonably deemed by the Company to be “deferred compensation” (as defined in the 409A Regulations), (y) any portion of the payment due under this Section 6.3 would exceed the sum of the applicable limited separation pay exclusions as determined pursuant to the 409A Regulations and (z) Executive is treated as a specified employee (as defined in the 409A Regulations), then payment of such excess amount shall be delayed until the six-month anniversary of the Date of Termination (or the date of Executive’s death, if earlier). If Executive continues to perform any services (as an employee or otherwise) for the Company or a Subsidiary of the Company after the Date of Termination, such six-month period shall be measured from the date of Executive’s “separation from service” as defined pursuant to the 409A Regulations;  

(c)    If a Change in Control of the Company shall have occurred while Executive is an employee of the Company and Executive dies during the CIC Protection Period while still an employee of the Company, the amount specified in Section 6.3(a) shall be paid by the Company to Executive’s estate; and such deceased Executive’s spouse and eligible dependents shall be entitled to all of the benefits specified in the Senior Executive Officer Policy as if such deceased Executive had delivered a Notice of Termination to the Company immediately prior to such death; 

9

Exhibit 10.1

        
(d)    In addition to the benefits provided for in Section 5 (and regardless if Executive is eligible to receive such benefits pursuant to terms and conditions of Section 5), Executive shall, effective on the Date of Termination, be deemed to be qualified and vested in all respects for the post-retirement benefits of the Senior Executive Officer Policy, regardless of whether Executive otherwise then satisfies the requirements for early retirement under the Senior Executive Officer Policy; provided, that the post-retirement benefits specified under this Section 6.3(d) shall (i) not become payable until Executive reaches age 65, unless such benefits are otherwise payable due to Executive’s eligibility for early retirement benefits under the terms of the Senior Executive Officer Policy as of the Date of Termination; and (ii) not be provided to the extent such benefits are provided to Executive by another employer at no cost to Executive; and

(e)    Notwithstanding anything stated in any other agreement between the Company and Executive that may be construed to the contrary, the Company shall cause any unvested portion of Executive’s restricted stock units, performance awards and any other equity awards granted to Executive under the Company’s 2010 Stock Incentive Plan, as amended, to immediately vest in full to the extent not already vested.  Any performance awards will vest at the target level.

6.4    Termination of Employment by the Company for Cause or by Executive’s Voluntary Termination or Death.  Upon Executive’s Termination of Employment by the Company for Cause or Executive’s voluntary Termination of Employment which does not constitute Constructive Termination, or if Executive dies outside of the CIC Protection Period but while still an employee of the Company, then the Company shall pay to Executive or Executive’s estate, in the case of Executive’s death, any earned and accrued but unpaid installment of base salary through the Date of Termination or Executive’s death at the rate in effect at the time Notice of Termination is given or at Executive’s death and all other unpaid amounts to which Executive is entitled as of the Date of Termination or Executive’s death under any compensation plan or program of the Company, including, without limitation, all accrued vacation time; such payments to be made in a lump sum on or before the fifth day following the date of the Date of Termination or Executive’s death.  Other than the compensation payments and/or benefits provided for in Section 5 or this Section 6.4, neither Executive nor Executive’s estate is entitled to any other compensation payments or benefits upon the Termination of Employment for the events described in this Section 6.4. 

6.5    Release Agreement.  The Company’s obligations to provide the payments and benefits in Section 6.2 or 6.3 are conditioned on Executive entering into a separation agreement and general release in the form attached as Exhibit A to this Agreement, with such changes as may be reasonably required to reflect changes in applicable law or circumstances subsequent to the date first above written; and the Company shall deliver such separation agreement and general release to Executive within 10 calendar days after the earlier of (i) the Date of Termination or (ii) the Company’s receipt of a Notice of Termination asserting a Constructive Termination.

10

Exhibit 10.1

7.    Limitation on Parachute Payments.

7.1    Limitation.  Notwithstanding anything stated in this Agreement, or any other plan, arrangement or agreement to the contrary (including without limitation the Company’s 2010 Stock Incentive Plan, as amended), if any of the Covered Payments constitute Parachute Payments and would, but for this Section 7 be subject to the Excise Tax, then the Covered Payments shall be payable either (i) in full or (ii) reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax, whichever of the foregoing (i) or (ii) results in Executive’s receipt on an after-tax basis of the greatest amount of benefits after taking into account the applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax).

7.2    Reduction.  The Covered Payments shall be reduced in a manner that maximizes Executive’s economic position.  In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where two economically equivalent amounts are subject to reduction by payable at different times, such amounts shall be reduced on a pro rata basis but not below zero.

7.3    Accountants.  Any determination required under this Section 7 shall be made in writing in good faith by the Accountants, which shall provide detailed supporting calculations to the Company and Executive as required by the Company or Executive.  The Company and Executive shall provide the Accountants with such information and documents as the Accountants may reasonably request in order to make a determination under this Section 7.  The Company shall be responsible for all fees and expenses of the Accountants.

7.4    Overpayment or Underpayment.  It is possible that after the determinations and selections made pursuant to this Section 7 Executive will receive Covered Payments that are in the aggregate more than the amount provided under this Section 7 (“Overpayment”) or less than the amount provided under this Section 7 (“Underpayment”).

7.4.1    In the event that: (A) the Accountants determine, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or Executive which the Accountants believe has a high probability of success, that an Overpayment has been made or (B) it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding that has been finally and conclusively resolved that an Overpayment has been made, then Executive shall pay any such Overpayment to the Company.

7.4.2    In the event that: (A) the Accountants, based upon controlling precedent or substantial authority, determine that an Underpayment has occurred or (B) a court of competent jurisdiction determines that an Underpayment has occurred, any such Underpayment will be paid promptly by the Company to or for the benefit of Executive.

8.    Policies and Procedures.  Executive agrees to comply with all policies and procedures of the Company for its employees.

11

Exhibit 10.1

9.    Confidential Information.  

9.1    Confidential Information.  Executive acknowledges that in the course of employment, Executive will learn of, have access to, and use the Company’s Confidential Information.  Executive recognizes that the Company’s business depends to a considerable extent on other information pertaining to new business opportunities, patent protection, Inventions, trademarks, copyrighted material, and Trade Secrets respecting formulas, processes, methods, plans, apparatus, products, improvements, and applications.  Executive also recognizes that the Company’s business depends to a considerable extent on information pertaining to Company Customers and prospective Company Customers, and the Company’s systems, policies, methods of operation, procedures, manuals; and pricing and other non-public information.  The Company shall retain ownership of all rights to all of its Confidential Information and other business information described herein.  Confidential Information shall not include any information that (i) is or becomes available to the public without a breach of this Agreement or right of the Company, or (ii) is lawfully obtained from a third party without breach of this Agreement or any other agreement, or (iii) if Executive is required by law to disclose Confidential Information in response to a valid order of a court or a government agency, Employee will promptly notify the Company and Executive will reasonably cooperate with the Company’s attempts to obtain a protective order.

The Company may have an obligation to third parties to maintain Third Party Confidential Information.  Executive agrees that all Third Party Confidential Information obtained by Executive during the course of employment, whether such information is communicated in written or verbal form, and whether such information is in recorded or unrecorded form and whether it is maintained solely at the Company’s offices or elsewhere or maintained by Executive solely or in combination with other information will be held in strict confidentiality. 

Executive shall not at any time or in any manner, either directly or indirectly, divulge or disclose the Company’s Confidential Information or Third Party Confidential Information to any other person or entity except as required by Executive’s duties to the Company, and Executive shall not use such Confidential Information or Third Party Confidential Information in competition with the Company or for the gain or benefit of Executive or any other person or company.  Executive shall not utilize or divulge any Confidential Information or Third Party Confidential Information to any other person or company, regardless of whether such knowledge or information is in recorded form or otherwise, absent the express written consent of an authorized representative of the Company. 

Following a Termination of Employment, Executive shall not remove or retain any document, copy of document, client or prospect files, or any other recording, in any type or form relating to any Confidential Information, other business information of the Company, or Third Party Confidential Information.  Upon a Termination of Employment, or sooner at the request of the Board, Executive shall turn over to the Company all notes, memoranda, drawings, documents, apparatus, product and material related to the employment, it being agreed that such items are the property of the Company. The obligations of Executive under this entire section shall survive the termination of this Agreement and Executive’s employment.

9.2    Former Employer Information.  Executive agrees that Executive will not, during Executive’s employment with the Company, improperly use or disclose any proprietary information or trade secrets of any former or concurrent employer or other person or entity with whom Executive has 

12

Exhibit 10.1

an agreement or duty to keep such information or Secrets confidential, if any, and that Executive will not bring onto the premises of the Company any proprietary information belonging to any such employer, person or entity unless consented to by such employer, person or entity. 
 
10.    Inventions.

10.1    Inventions Retained and Licensed. Executive has attached hereto, as Schedule B to this Agreement, a list describing the Prior Inventions, which belong to Executive, which relate to the Company’s proposed business, products or research and development, and which are not assigned to the Company hereunder; or, if no such list is attached, Executive represents that there are no such Prior Inventions.  If in the course of Executive’s employment with the Company, Executive incorporates into a Company product, process or machine a Prior Invention owned by Executive or in which Executive has an interest, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product, process or machine.

10.2    Assignment of Inventions. Executive agrees that Executive will promptly make full written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the Company, or its designee, all Executive’s right, title, and interest in and to any and all Inventions, including the copyright thereon.  Executive further acknowledge that all original works of authorship which are made by Executive (solely or jointly with others) within the scope of Executive’s employment and which are protectable by copyright are “works made for hire,” as that term is defined in the United States Copyright Act.

10.3    Maintenance of Records. Executive agrees to keep and maintain adequate and current records of all Inventions made by Executive (solely or jointly with others) during the term of Executive’s employment with the Company.  The records will be in the form of notes, sketches, drawings, and any other format that may be specified by the Company. The records will be available to and remain the sole property of the Company at all times.

10.4    Patent and Copyright Registrations.  Executive agrees to assist the Company, or its designee, at the Company’s expense, in every proper way to secure the Company’s rights in the Inventions and any copyrights, patents, trademarks or other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which the Company shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to the Company the sole and exclusive right, title and interest in and to such Inventions, and any copyrights, patents, trademarks or other intellectual property rights relating thereto.  Executive further agrees that Executive’s obligation to execute or cause to be executed, when it is in Executive’s power to do so, any such instrument or papers shall continue after the termination of this Agreement.  If the Company is unable because of Executive’s mental or physical incapacity or for any other reason to secure Executive’s signature to apply for or to pursue any application for any United States or foreign patents or copyright, trademark or other registrations covering Inventions assigned to the Company as above, then Executive hereby irrevocably designates and appoints Company and its duly authorized officers and agents as Executive’s agent and attorney in fact, to act for and in Executive’s behalf and 

13

Exhibit 10.1

stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent, or copyright, trademark or other registrations thereon with the same legal force and effect as if executed by Executive.

10.5    Intellectual Property Litigation or Prosecution.  Executive further agrees that Executive will appear and give evidence in any suits, arbitrators, interferences or other legal proceedings which arise in connection with matters covered or intended to be covered in this Section 10.  All expenses (including reimbursement for any loss of salary or wages from another employer if Executive is no longer employed by the Company) in connection with the matters covered or intended to be covered in this Section 10 shall be borne by the Company and any legal proceedings in connection with such matters shall be conducted by attorneys chosen by the Company.

11.    Conflicting Employment.  Executive agrees that, during the term of Executive’s employment with the Company, Executive will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of Executive’s employment, nor will Executive engage in any other activities that conflict with Executive’s obligations to the Company.  If there is any possibility of a conflict or perceived conflict, Executive understands that it is Executive’s obligation and duty to present the potential conflict to the Company and the Company can decide, in its discretion, whether a conflict exists.

12.    Returning Company Documents.  Executive agrees that, upon a Termination of Employment, or sooner at the request of the Board,  Executive will deliver to the Company (and will not keep in my possession or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items developed by Executive pursuant to Executive’s employment with the Company or otherwise belonging to the Company or that constitutes Confidential Information or Third Party Confidential Information.  Upon the termination of Executive’s employment, Executive agrees to sign and deliver to the Company the “Termination Certification” attached hereto as Exhibit B to this Agreement.  The Company’s obligations to provide the payments and benefits in Section 6.2 or 6.3 are conditioned on Executive, among other requirements, signing the Termination Certification.

13.    Solicitation of Employees.  Executive agrees that Executive shall not, for a period of two (2) years immediately following the Termination of Employment, either directly or indirectly, on Executive’s own behalf or in the service or on behalf of others, solicit, recruit or attempt to persuade any person to terminate such person’s employment with the Company, whether or not such person is a full-time employee or whether or not such employment is pursuant to a written agreement or is at-will.

14.    Solicitation of Company Customers.  Executive agrees that Executive shall not, for a period of two (2) years immediately following the Termination of Employment, directly or indirectly market, sell, or provide, or attempt to market, sell, or provide to any Company Customer any product or service of a Conflicting Organization that competes with any Company Product.

15.    Covenant Not to Compete.  Executive agrees that Executive shall not, for a period of two (2) years immediately following the Termination of Employment, be employed by or otherwise perform 

14

Exhibit 10.1

services in any other capacity for a Conflicting Organization in connection with or relating to Competitive Research or a product or service that competes with a Company Product.

16.    Enforcement.

16.1    Jurisdiction.  Executive agrees that any dispute or controversy arising out of or relating to any interpretation, construction, performance or breach of this Agreement or any other dispute between the parties shall be brought in the Circuit Court, Second Judicial Circuit, Minnehaha County, South Dakota.  Executive consents to the personal jurisdiction of such circuit court.

16.2    Remedies.  The restrictions in this Agreement are not greater than reasonably necessary to protect the Company’s legitimate interests; are reasonable in the sense that they are not injurious, harmful, or prejudicial to the public or public interest; and are not unduly harsh, burdensome, or oppressive on Executive because they are reasonable in time and area and do not restrict Executive’s right to pursue Executive’s livelihood.  Executive agrees that it would be impossible or inadequate to measure and calculate the Company’s damages from any breach of the covenants set forth in this Agreement, and that a breach of such covenants could cause irreparable injury to the Company. Accordingly, Executive agrees that if Executive breaches any of such covenants, the Company will have available, in addition to any other right or remedy available, the right to obtain an injunction from a court of competent jurisdiction restraining such breach or threatened breach and to specific performance of any such provision of this Agreement.  Executive further agrees that no bond or other security shall be required in obtaining such equitable relief and Executive hereby consents to the issuance of such injunction and to the ordering of specific performance. 
 
17.    Usage of Name.  Executive agree that Executive will provide, and that the Company may similarly provide, a copy of this Agreement to any business or enterprise (i) which Executive may directly or indirectly be employed by or own, manage, operate, finance, join, participate in the ownership, management, operation, financing, control or control of, or (ii) with which Executive may be connected with as an officer, director, employee, partner, principal, agent, representative, consultant or otherwise, or in connection with which Executive may use or permit Executive’s name to be used.

18.    Tolling Provision.  The parties agree that the duration of the restrictions in Sections 13, 14 and 15 shall be extended for a period equal to the duration of any breach of such covenants by Executive to the maximum extent permitted by applicable law.

19.    Successors.

19.1    Executive.  This Agreement shall inure to the benefit of and be enforceable by Executive’s personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If Executive should die while any amounts are still payable to Executive hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee or other designee or, if there be no such designee, to Executive’s estate.

19.2    The Company.  The Company will require any successor or assign (whether direct or 

15

Exhibit 10.1

indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to Executive, expressly, absolutely and unconditionally to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place.  As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor or assign to its business and/or assets as aforesaid which executes and delivers the agreement provided for in this Section 19.2 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law.  If at any time during the term of this Agreement Executive is employed by a Subsidiary of the Company, (1) “Company” as used in this Agreement shall in addition include such Subsidiary, (2) the Company agrees that it shall pay or shall cause such Subsidiary to pay any amounts owed to Executive pursuant to Sections 4, 5 and 6 hereof and (3) any transfer of Executive’s employment between the Subsidiary and the Company or another Subsidiary shall not, in and of itself, be deemed a Termination of Employment.

20.    Miscellaneous.

20.1    Modification to the Senior Executive Officer Policy.  After the Termination of Employment or death of Executive, so long as a member of the Covered Group (as defined herein) is receiving any fringe benefit on the Senior Executive Officer Policy hereunder, the Company may not change or terminate any fringe benefit on the Senior Executive Officer Policy in a manner that would reasonably be expected to adversely affect any member of the Covered Group’s interests without the prior written consent of Executive (or all members of the Covered Group, in the case of Executive’s death).

20.2    No Obligation to Mitigate Damages; No Effect on Other Contractual Rights. Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise, nor shall the amount of any payment provided for under this Agreement be reduced by any compensation earned by Executive as the result of employment by another employer after the Date of Termination. 

20.3    No Effect on Other Contractual Rights.  The provisions of this Agreement, and any payment provided for hereunder, shall not reduce any amounts otherwise payable, or in any way diminish Executive’s existing rights, including post-retirement benefits or any other rights which would accrue solely as a result of the passage of time, under any benefit plan, employment agreement or other contract, Company policy, plan or arrangement (except for the Prior Employment Agreement and the Change in Control Agreement, which are terminated pursuant to Section 20.9). 

20.4    Withholding.  The Company shall deduct, from any payment made under this Agreement, any Federal or state taxes required by law to be withheld from such payment.

20.5    Miscellaneous. No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by Executive and such officer of the Company as may be specifically designated by the Board.  No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel to enforce any provision hereof, except by a written instrument executed by the party charged with waiver or estoppel.  The Company’s 

16

Exhibit 10.1

delay, waiver, or failure to enforce any of the terms of this Agreement or any similar agreement with any other of its employees shall not constitute a waiver of its rights hereunder with respect to other violations of this Agreement or any other agreement.

20.6    Notices.  For purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or three days after mailing by United States registered mail, return receipt requested, postage prepaid, as follows:
To the Company:
Raven Industries, Inc.
205 East 6th Street
P.O. Box 5107
Sioux Falls, South Dakota 57117
Attention: President
If to Executive:
                
(Address currently on file with the Company)

or such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.
20.7    Severability.  Executive acknowledges that the provisions, restrictions and time limitations contained in Sections 9, 13, 14, 15 and 16 are reasonable and properly required for the adequate protection of the business of the Company.  If any provision of this Agreement is unreasonable or unenforceable under applicable law, the validity or enforceability of the remaining provisions shall not be affected.  To the extent any provision of this Agreement is judicially determined to be unenforceable or unreasonable in any respect, a court of competent jurisdiction may reform any such provision to make it reasonable and enforceable to the extent permitted by applicable law.  It is the desire of Executive and the Company that the provisions of this Agreement shall be interpreted, where possible, to sustain their legality and enforceability and protect the Company’s legally protectable business interests.

20.8    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

20.9    Entire Agreement.  This Agreement constitutes the entire agreement between the parties and supersedes the Prior Employment Agreement and the Change in Control Agreement and all other prior agreements and understandings between the parties with respect to the subject matter hereof; provided, that this Agreement shall not affect or reduce any benefit to which Executive shall be otherwise entitled under the Company’s 2010 Stock Incentive Plan, as amended, or any other plan, agreement or policy of or with the Company.  No modification of or amendment to this Agreement, nor any waiver of any rights under this agreement, will be effective unless in writing signed by the party to be charged.  Any subsequent change or changes in my duties, salary or compensation will to affect the validity or 

17

Exhibit 10.1

scope of this Agreement.

20.10    Survival.  Any Termination of Employment shall not affect the continuing operation and effect of Sections 5 through 20 hereof, which shall survive the Termination of Employment and continue in full force and effect with respect to the Company and Executive.  Sections 5 through 20 hereof shall also continue in force and effect if Executive’s duties, compensation, title, or location of work for the Company change after this Agreement becomes effective, and any such change will not terminate or invalidate this Agreement or affect or impair its validity and enforceability.

20.11    Fees and Expenses.  The Company shall pay all fees and expenses (including attorney’s fees) which Executive may incur as a result of the Company’s contesting the validity, enforceability or Executive’s interpretation of, or determinations under, this Agreement, regardless of whether the Company or Executive is successful in such contest.

[Signature Page Follows]

18

Exhibit 10.1

IN WITNESS WHEREOF, the parties have executed this Amended and Restated Employment Agreement as of the date and year first above written.

    	
	
	RAVEN INDUSTRIES, INC.

	By: /s/ STEPHANIE HERSETH SANDLIN

	Stephanie Herseth Sandlin, 
General Counsel and Vice President of Corporate Development 

      

	 

	EXECUTIVE:

	By: /s/ DANIEL A. RYKHUS 

	      Daniel A. Rykhus

19

Exhibit 10.1

Schedule A
	
			
	POLICIES AND PROCEDURES
DATE: 1 DECEMBER 2010 (revised 1 January 2016)
SUBJECT: SENIOR EXECUTIVE OFFICER BENEFITS
	 
	NO. RS-01A

In addition to all of the fringe benefits provided to salaried employees, Senior Executive Officers, Chief Executive Officer and (Chief Financial Officer, hired before 12/1/14) will have the following additional benefits: 
	
			
	1.
	 
	Supplemental health insurance benefits for the officer and his dependents up to 6.5% of the total current base salary.

	2.
	 
	The Chief Executive Officer will receive a social membership to the Minnehaha Country Club.

	3.
	 
	Health club membership or equivalent in home exercise equipment.

	4.
	 
	Inclusion in the Group Life Insurance and A.D. & D. policy at 2.0 times annualized base salary on February 1st each year. The group life insurance policy is updated annually on March 1st of each year, and the benefit will be limited to the maximum benefit offered by the current life insurance carrier.

	5.
	 
	Individual term policies may be required to reach the coverage levels in Number 5 above.

	 
	 
	Those policies are funded by the company for the period of time employed by the company. The officer will have the option to convert or continue at officer’s expense upon termination or retirement.

	6.
	 
	This section applies only to Senior Executive Officers elected before February 1, 2004. A second-to-die life policy will be provided to the Chief Financial Officer in the amount of $300,000. Premiums on this policy will be paid by the company until the policy is fully funded (the point where dividends of the policy are sufficient to pay the entire premium) provided that the officer is employed until “normal retirement” age or qualifies for “early retirement” in accordance with Raven policies and procedures.

	 
	 
	Upon the officer’s retirement at the normal retirement age or if qualifying for early retirement in accordance with Raven Policies and Procedures the second-to-die life policy will be paid up by Raven at the time of the officer’s retirement. The premium benefit for the paid up policy will be grossed up at the end of the calendar year.

	 
	 
	If the officer terminates employment before qualifying for either normal or early retirement the officer will have the option to continue the policy by paying the premiums or may exercise one of the conversion features available in the policy.

	7.
	 
	For Senior Executive Officers elected before February 1, 2004, long-term care insurance will be provided to the officer and officer’s spouse.

	8.
	 
	Full pay for sick leave up to a point where disability insurance coverage begins. Disability insurance is 60% of base salary non-integrated with Social Security. Provisions of the actual policy will govern the exact amount of payments.

	9.
	 
	Two additional weeks of paid vacation in addition to the regular established vacation policy.

	10.
	 
	Physical examinations provided by the company will be given on a biennial basis to age 60 on individuals who are asymptomatic, annually if symptomatic. Above age 60 examinations will be annually.

20

Exhibit 10.1

	
			
	11.
	 
	Officer’s annual base salary will be grossed up at the end of the calendar year to compensate for any additional payroll and income tax burden created by the treatment of the officer’s benefits under numbers 1, 4, 5, 6, 7, and 10, above, as additional income.

	12.
	 
	Senior Executive Officer Retirement & Benefits

	 
	 
	This section applies only to Senior Executive Officers retiring after February 1, 2010. Benefits to officers retiring before that date will be governed by the policy in effect at retirement.

	 
	 
	Full retirement benefits will be available to any senior executive officer who retires between the ages of 65 and 70, or who chooses early retirement. Early retirement is defined as the first day of any month after the officer’s years of service, plus attained age equals or exceeds the sum of 80, or any date between then and age 65.

	 
	 
	Those benefits are:

(A) Continued retiree group hospital, medical and dental coverage for the officer, spouse and eligible dependent child(ren), as defined by the insurance carrier’s policy, until the officer attains the eligibility age for Medicare (presently age 65) or is eligible for Medicare due to disability. Premiums will be at the same rate available to active Senior Executive Officers.
If said officer dies prior to Medicare eligibility, coverage will continue on the same basis for spouse and/or eligible dependent child(ren) as long as spouse does not remarry and dependent child(ren) meets insurance carrier’s eligibility requirements. 
When the officer becomes eligible for Medicare, the spouse is eligible for continued retiree group hospital, medical or dental coverage until the spouse becomes eligible for Medicare. Coverage for the spouse will terminate in the event the officer and spouse divorce or the spouse remarries after the death of the officer. Upon divorce or remarriage of spouse, the spouse would then be offered COBRA in compliance with Federal COBRA guidelines administered on a consecutive basis.
When the officer becomes eligible for Medicare, eligible dependent child(ren) are eligible for continued retiree group hospital, medical and dental coverage until the dependent no longer meets the definition of an eligible dependent as defined by the insurance carrier’s policy. Upon loss of dependent eligibility, COBRA will be offered in compliance with Federal COBRA guidelines administered on a consecutive basis. 
(B) Upon eligibility for Medicare by either the officer or spouse, the officer and spouse will be provided supplemental hospital, medical, and prescription drug coverage to Medicare which would result in the same coverage that is provided to the full-time active officers of the company. This coverage, as well as group dental coverage, will continue for the rest of the officer’s and spouse’s life or until the spouse divorces said officer or remarries after the death of the officer. In the event the spouse divorces or remarries after death of officer, supplemental coverage will cease being paid by Raven and will be the responsibility of the former spouse. 
In the event that eligible dependent child(ren) are eligible for Medicare, said dependent child(ren) will be provided supplemental hospital and medical coverage to Medicare which would result in the same coverage that is provided to the full-time active officers of the company. This coverage, as well as group dental coverage, will continue for the rest of the dependent’s life or as long as the dependent meets disability requirements. 

21

Exhibit 10.1

(C) In the event that a retired officer marries/remarries, retiree benefits are only offered to spouses enrolled in benefits at the time of the Officer’s retirement. 
(D) Upon retirement, supplemental health insurance benefits for the officer and his dependents will be provided annually for the rest of the officer’s and spouse’s lives at an amount of up to 10% of the officer’s highest total annual compensation (salary and bonus) during any one of the officer’s last 5 years of employment with the company. 
(E) For Senior Executive Officers elected before February 1, 2004, long-term care insurance will continue for the rest of the officer’s and spouse’s life. The spouse’s coverage will be discontinued in the event an officer’s spouse remarries after the death of an officer. 
(F) To the extent retirement benefits are included in taxable income, retired Senior Executive Officers will be grossed up at the end of the calendar year to compensate for additional income and payroll tax burden. 
  

22

Exhibit 10.1

Schedule B
LIST OF PRIOR INVENTIONS
AND ORIGINAL WORKS OF AUTHORSHIP

	
			
	Title
	Date
	Identifying Number
or Brief Description

	 
	 
	 

	 
	 
	 

23

Exhibit 10.1

Exhibit A
SEPARATION AGREEMENT AND GENERAL RELEASE

Definitions. All the words used in this Separation Agreement and General Release (“Agreement”) have their plain meaning in ordinary English. Specific terms used in this Agreement have the following meanings: 

1.    Words such as “I” and “me” include both me and anyone who has or obtains any legal rights or claims against “Raven” (defined below) and the “Company” (defined below), and each of them, through me. My name is ________ .

2.    “Raven” means Raven Industries, Inc.

3.    The “Company” means Raven, and Raven’s past and present parent, subsidiaries and affiliated entities, and all and each of the past and present Board of Directors, officials, managers, members, governors, agents, officers, directors, employees, shareholders, attorneys, committees, insurers, indemnitors, investors, successors and assigns of any and all of the foregoing entities.

Background. 
1.    My employment with Raven ended on ____________ (the “Separation Date”). I agree not to sign this Agreement prior to the end of my work day on the Separation Date.

2.    I have been paid all of my accrued and unused paid time off and all other wages, salary, and monies due and owing to me through the Separation Date.

3.    The purpose of this Agreement is to fully and finally release the Company from all of “My Claims” (as defined below) through my signing of this Agreement.

4.    In exchange for “My Promises” (defined below), Raven has promised to do the following for me (all and each are “Raven’s Promises”) as long as I sign this Agreement and do not exercise my rights to revoke or rescind as set forth below.

5.    I acknowledge and agree that I received this Agreement on the Separation Date and understand that I have 21 days from the Separation Date to decide whether to sign this Agreement. If I do not sign this Agreement within that timeframe, the offer contained within this Agreement will expire.

6.    I acknowledge and agree that I will not sign this Agreement prior to the end of work day on the Separation Date or this Agreement will be null and void.
 
7.    This Agreement is being entered into pursuant to that certain Amended and Restated Employment Agreement between Raven and me dated ____________ (the “Employment Agreement”).

24

Exhibit 10.1

Raven’s Promises.
1.    Severance Pay. Raven agrees to pay me the amounts and benefits specified in the Employment Agreement at the times specified therein, less any deductions Raven is required to make or believes in good faith it is required to make from that amount. 

My Claims. The claims I am releasing below (all and each are “My Claims”) include all of my rights to any relief of any kind from the Company through the date on which I sign this Agreement, to the fullest extent permitted by law, including but not limited to:

1.    All claims I have now, whether or not I know about or suspect the claims;

2.    All claims for attorney’s fees, costs, and disbursements;

3.    All rights and claims under the Age Discrimination in Employment Act (“ADEA”), Older Workers Benefit Protection Act (“OWBPA”), the South Dakota Human Relations Act (“SDHRA”), Americans with Disabilities Act (“ADA”), Title VII of the Civil Rights Act of 1964 (“Title VII”), Family and Medical Leave Act (“FMLA”), and any other federal, state, local law, rule, or regulation regarding discrimination and retaliation; 

4.    All claims arising out of my employment and my separation from employment with Raven including, but not limited to, breach of contract, wrongful termination, illegal termination, termination in violation of public policy, breach of an implied contract, breach of covenant of good faith and fair dealing, defamation, promissory estoppel, violation of state or federal leave laws, equal pay laws, invasion of privacy, fraud, retaliation, and intentional or negligent infliction of emotional distress; 

5.    All claims for any other alleged unlawful employment practices arising out of or relating to my employment or my separation from employment; and

6.    All claims for any other form of pay, compensation or remuneration that is not provided in this Agreement.

My Promises. 
1.    In exchange for Raven’s Promises (described above), I hereby fully and finally release to the maximum extent permitted by law all of “My Claims” (described above) against the Company, including for example rights and claims under the ADA, SDHRA, OWBPA, ADEA, FMLA, and Title VII. I will not bring any lawsuits against the Company except if necessary to enforce the provisions of this Agreement. The money and benefits that I will receive as set forth in this Agreement as Raven’s Promises are full and fair payment for the release of My Claims. The Company does not owe me anything in addition to what I will receive under this Agreement. The money and benefits that I am receiving under this Agreement as Raven’s Promises have a value that is greater than anything else to which I am entitled. Specifically excluded from my waiver and release of claims are claims or disputes that: (1) by law cannot be released in a private agreement (such as workers’ compensation claims); (2) arise after the effective date of this Agreement; or (3) relate to the obligations of the parties under this Agreement.

2.    In exchange for Raven’s Promises, I promise to successfully transition my work responsibilities. I will provide Raven with a list of any documents and return the work computers or other devices that 

25

Exhibit 10.1

require password(s) necessary to access such devices or documents. I will cooperate with Raven and use my best efforts to be available, on a reasonable basis, to answer questions that may arise to achieve a smooth transition after the Separation Date. I also agree to be available to and cooperate with Raven and its counsel in connection with any investigation, administrative proceeding or litigation relating to any matter, occurring during my employment, in which I was involved or of which I have knowledge. I understand and agree that such cooperation includes, but is not limited to, making myself available to Raven and/or its counsel upon reasonable notice for: interviews and factual investigations; appearing to give testimony without requiring service of a subpoena or other legal process; volunteering to Raven or its counsel pertinent information; and turning over all relevant documents which are or may come into my possession. 

Additional Agreements and Understandings.
1.    Non-Admission. Except for the Company’s obligations under the Employment Agreement, the Company does not admit that it is responsible or legally obligated to me, and in fact, the Company denies that it is responsible or legally obligated to me. I acknowledge that Raven’s Promises described in this Agreement is sufficient consideration to support enforcement of this Agreement.

2.    Benefit Plans. My and Raven’s rights and obligations in any benefit plan in which I participated during my employment are governed by the applicable plan documents. Further, I am not releasing any rights I may have to be indemnified by Raven for acts or omissions as an employee, officer and/or director of Raven pursuant to any insurance policy, statute, or corporate change or bylaw provision by entering into this Agreement.

3.    Filing. This Agreement does not prohibit me from filing an administrative complaint, or an administrative charge of discrimination with, or cooperating or participating in an investigation or proceeding conducted by, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, the Securities and Exchange Commission, or other federal or state regulatory or law enforcement agency (“Government Agencies”). If I filed or file such a charge or complaint, the payment and benefits described in this Agreement are in complete satisfaction of any and all claims in connection with such charge or complaint, and I am not entitled to any other monetary relief with respect to the claims released in this Agreement.  Provided, I understand that this Agreement does not limit my right to receive an award for information provided to any Government Agencies.

4.    Property. I have delivered to Raven any and all of its records and property in my possession or under my control, including without limitation manuals, books, passwords, blank forms, documents, letters, memoranda, notes, notebooks, passwords, reports, printouts, computer disks, flash drives or other digital storage media, source codes, data, tables or calculations and all copies thereof, documents that in whole or in part contain any trade secrets or confidential, proprietary or other secret information of Raven and all copies thereof. I have returned to Raven all equipment, laptop computers, iPads, iPhones, other cellular phones, BlackBerry devices, credit cards, security cards and keys, badges, and files and any other property belonging to Raven, including all copies of same, that were in my possession or control. I no longer possess or have within my control any of the aforementioned Raven property, information or belongings. I have not downloaded, diverted, or transferred in any manner any files or other data that are the property of Raven.

26

Exhibit 10.1

5.    Non-Disparagement. I will not intentionally disparage the Company, its products, services, systems, and other matters pertaining to its business. The prohibitions of this paragraph do not apply to my legally protected communications or communications with the Equal Employment Opportunity Commission, the National Labor Relations Board, or any other Government Agencies.

6.    Confidentiality. The terms and conditions of this Agreement are strictly confidential. I will not discuss or reveal the existence or the terms of this Agreement to any persons, entities, or organizations except as follows: (a) as required by law or court order; (b) by me to my immediate family; or (c) to my attorney, financial planner and accountant. I must ensure that any person or entity described in subsections (b) and (c), to whom such disclosures are made must, as a condition of such disclosure, agree to keep the terms of this Agreement strictly confidential. This confidentiality provision does not prohibit me from providing this Agreement to the Equal Employment Opportunity Commission, the National Labor Relations Board, or other Government Agencies. 

7.    Remuneration. I acknowledge and agree that I am not owed any remuneration or benefits from the Company other than the consideration identified within this Agreement including but not limited to wages, commissions, benefits, bonuses, vacation pay, sick pay, paid time off, stock, or any other incentives. 

8.    Tax Indemnification. I acknowledge that I have not relied on any tax advice provided by the Company and that, if necessary, I am responsible for properly reporting the payment and benefits received pursuant to this Agreement and paying any applicable taxes.

Rights to Counsel, Consider, Revoke, and Rescind. 

1.    I have been advised to consult with an attorney prior to executing the Agreement. Raven recommends that I consult with an attorney prior to signing this Agreement. I can freely choose to seek legal advice before signing this Agreement.

2.    I have twenty-one (21) days to consider this Agreement, including my waiver of rights and claims of age discrimination and retaliation under the ADEA and OWBPA, beginning the date on which I received this Agreement. If I signed this Agreement, then for a period of seven (7) days following the day on which I signed it, I will be entitled to revoke this Agreement, and this Agreement will not become effective or enforceable until after the revocation period has expired. My waiver of claims in this Agreement does not include any claims that may arise after the date that I sign this Agreement. 

3.    To revoke my waiver(s), I must put the revocation in writing and deliver it to Raven by hand via ________ or mail it within the 7-day period. If I deliver the revocation by mail, it must be postmarked within seven (7) calendar days after the date on which I signed this Agreement; addressed to Raven, c/o __________and sent by certified mail, return receipt requested. 

If I exercise my rights to revoke my waivers as provided above, this Agreement will be null and void. My employment will still end on the Separation Date, and I will not receive Raven’s Promises in this Agreement.

27

Exhibit 10.1

Agreement Freely Entered Into.
I represent that I have voluntarily, and free from duress or undue coercion, made My Promises in this Agreement. 

Severability.
If any provision of this Agreement is unenforceable under applicable law, the validity or enforceability of the remaining provisions will not be affected. To the extent any provision of this Agreement is judicially determined to be unenforceable, a court of competent jurisdiction may reform any such provision to make it enforceable. The provisions of this Agreement will, where possible, be interpreted to sustain their legality and enforceability.

Entire Agreement.
This Agreement, together with the Employment Agreement, are the final and complete agreements between Raven, the Company, and me with regard to the matters therein. Any modification of, or addition to, this Agreement must be in in writing and signed by the parties.

Successors and Assigns.
This Agreement will be binding upon and inure to the benefit of the successors and assigns of Raven, the Company, and me. I understand that I may not assign this Agreement.

Governing Law And Venue.
The parties agree that this Agreement shall be interpreted, construed, governed and enforced under and pursuant to the laws of the State of South Dakota. I irrevocably consent to the exclusive jurisdiction of courts in South Dakota for the purposes of any action arising out of or related to my employment, or any actions for temporary, preliminary, and permanent equitable relief.
 
Knowing and Voluntary Agreement.
I have read this Agreement carefully and understand all of its terms. I have had the opportunity to discuss this Agreement with my own attorney prior to signing it, and to make certain that I understand the meaning of the terms and conditions contained in this Agreement and fully understand the content and effect of this Agreement. In agreeing to sign this Agreement, I have not relied on any statements or explanations made by Raven, the Company, or all and each of their respective agents or attorneys except as set forth in this Agreement. I agree to abide by this Agreement.
	
		
	 

	 
	 

	 
	 

	 
	 

	Date___________________
	__________________________________________________

	 
	[EMPLOYEE NAME]

28

Exhibit 10.1

	
		
	 
	 

	Date___________________
	RAVEN INDUSTRIES, INC.

	 
	 

	 
	By _______________________________________

	 
	 

	 
	Its _______________________________________

	 
	 

REST OF PAGE INTENTIONALLY LEFT BLANK

29

Exhibit 10.1

Exhibit B
TERMINATION CERTIFICATION

This is to certify that I do not have in my possession, nor have I failed to return, any devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items belonging to Raven Industries, Inc., its subsidiaries, or any of their respective successors or assigns (together, the “Company”).

I further certify that I have complied and will continue to comply with all the terms of my Amended and Restated Employment Agreement with the Company (the “Employment Agreement”), including, without limitation, those pertaining to non-competition, non-solicitation, Confidential Information, and the reporting of any Inventions.

Without limiting the generality of the preceding paragraph, I will, in accordance with the Employment Agreement, preserve as confidential all Confidential Information (as defined in the Employment Agreement) and any Third Party Confidential Information (as defined in the Employment Agreement) that the Company has an obligation to maintain in confidence.

Dated:________________

___________________________
Signature

___________________________
Name of Employee (typed or printed)

30

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