Document:

wor-ex1080_962.htm

 

Exhibit 10.80

 

SUMMARY OF ANNUAL CASH INCENTIVE BONUS AWARDS, 

LONG-TERM PERFORMANCE AWARDS, STOCK OPTIONS AND RESTRICTED COMMON

SHARES GRANTED IN FISCAL 2020 FOR NAMED EXECUTIVE OFFICERS 

OF WORTHINGTON INDUSTRIES, INC.

 

Annual Cash Incentive Bonus Awards Granted In Fiscal 2020

 

The following table sets forth the annual cash incentive bonus awards granted to the following current executive officers of Worthington Industries, Inc. (the “Registrant”) who either are named executive officers of the Registrant for purposes of the disclosure included in the Registrant’s Proxy Statement for the 2018 Annual Meeting of Shareholders held on September 26, 2018 and/or will be named executive officers of the Registrant for purposes of the disclosure to be included in the Registrant’s Proxy Statement for the 2019 Annual Meeting of Shareholders to be held on September 25, 2019 (“NEOs”), which grants were made under the Worthington Industries, Inc. Annual Incentive Plan for Executives for the twelve-month performance period ending May 31, 2020: 

 

Annual Cash Incentive Bonus Awards Granted for Fiscal 2020

	
Name
	
Annual Cash Incentive Bonus Awards for Twelve-Month Performance Period Ending May 31, 2020 (1)

	
 
	
Threshold ($)
	
Target ($)
	
Maximum ($)

	
John P. McConnell
	
483,969
	
967,938
	
1,935,876

	
Joseph B. Hayek
	
198,275
	
396,550
	
793,100

	
B. Andrew Rose
	
386,250
	
772,500
	
1,545,000

	
Geoffrey G. Gilmore
	
339,900
	
679,800
	
1,359,600

	
Virgil L. Winland
	
245,864
	
437,091
	
874,182

	
Dale T. Brinkman
	
218,546
	
437,091
	
874,182

________________________

	
(1)
	
Payouts which can be earned under these annual cash incentive bonus awards are generally tied to achieving specified levels (threshold, target and maximum) of corporate economic value added (“EVA”) and earnings per share (“EPS”) for the twelve-month performance period with each performance measure carrying a 50% weighting. For all calculations, restructuring charges and non-recurring items are excluded and both Corporate EPS and the Steel Processing business unit business unit EOI results are to be adjusted to eliminate the impact of FIFO gains and losses.  If the performance level falls between threshold and target or between target and maximum, the award is linearly prorated.  If threshold levels are not reached for any performance measure, no annual cash incentive bonus will be paid.  Annual cash incentive bonus award payouts earned will be made within a reasonable time following the end of the performance period.  In the event of a change in control of the Company (followed by actual or constructive termination of an NEO’s employment during the performance period), the annual cash incentive bonus award would be considered to be earned at “target” and payable as of the date of termination of employment.

 

 

 

Long-Term Performance Awards, Option Awards and Restricted Common Share Awards Granted in Fiscal 2020

 

The following table sets forth the long-term performance awards (consisting of long-term cash performance awards and long-term performance share awards) for the three-fiscal-year period ending May 31, 2022 and the option awards and restricted common share awards granted to the NEOs in the fiscal year ending May 31, 2020 (“Fiscal 2020”).

Long-Term Performance Awards, Option Awards and 

Restricted Common Share Awards Granted in Fiscal 2020

	
Name

 
	
Long-Term Cash Performance Awards for Three-Fiscal-Year Period Ending 
May 31, 2022 (1)
	
Long-Term Performance Share Awards for Three-Fiscal-Year Period Ending 
May 31, 2022 (1)
	
Option Awards:

Number of Common Shares Underlying Options (2)
	
Exercise or Base Price of Option Awards
($/Share) (2)
	
Restricted Common
Share Awards

	
Threshold

($)
	
Target

($)
	
Maximum

($)
	
Threshold

(# of Common Shares)
	
Target

(# of Common Shares)
	
Maximum

(# of Common Shares)

	
John P. McConnell
	
500,000
	
1,000,000
	
2,000,000
	
7,500
	
15,000
	
30,000
	
27,000
	
38.91
	
22,500 (3)

	
Joseph B. Hayek
	
140,000
	
280,000
	
560,000
	
1,800
	
3,600
	
7,200
	
6,800
	
38.91
	
5,400 (3)

	
B. Andrew Rose
	
300,000
	
600,000
	
1,200,000
	
3,750
	
7,500
	
15,000
	
14,000
	
38.91
	
12,000 (3)

	
Geoffrey G. Gilmore
	
220,000
	
440,000
	
880,000
	
2,850
	
5,700
	
11,400
	
10,000
	
38.91
	
8,500 (3)

	
Virgil L. Winland
	
115,000
	
230,000
	
460,000
	
1,250
	
2,500
	
5,000
	
4,300
	
38.91
	
3,700 (3)

	
Dale T. Brinkman
	
100,000
	
200,000
	
400,000
	
1,250
	
2,500
	
5,000
	
4,300
	
38.91
	
3,700 (3)

	
(1)
	
These columns show the potential payouts under the long-term cash performance awards and the long-term performance share awards granted to the NEOs under the Worthington Industries, Inc. Amended and Restated 1997 Long-Term Incentive Plan (as amended, the “1997 LTIP”) for the three-fiscal-year performance period from June 1, 2019 to May 31, 2022.  Payouts of long-term cash performance awards and long-term performance share awards for Corporate executives are tied to achieving specified levels (threshold, target and maximum) of cumulative corporate EVA for the three-fiscal-year performance period and EPS growth over that performance period, with each performance measure carrying a 50% weighting.  In all calculations, restructuring charges and non-recurring items are excluded, and Corporate EPS and Steel Processing business unit EOI results are to be adjusted to eliminate the impact of FIFO gains or losses.  No awards are paid or distributed if none of the three-fiscal-year threshold financial measures are met.  If the performance levels fall between threshold and target or between target and maximum, the award is linearly prorated.

	
(2)
	
Effective June 27, 2019, under the Worthington Industries, Inc. 2010 Stock Option Plan, the NEOs were granted non-qualified stock options with respect to the number of common shares shown, with an exercise price equal to $38.91, the fair market value of the underlying common shares on the date of grant.  The options become exercisable over three years in increments of one-third per year on each anniversary of their grant date.

	
(3)
	
These annual time-vested restricted common share awards were granted effective June 27, 2019 under the 1997 LTIP and will generally cliff vest on the third anniversary of the grant date.ibm_Ex10_1

		
			Exhibit 10.1
		

		
			 
		

			
					
						 

					
						 

					
						 

					
					
						 

					
						 

				
	
					
						 

					
						 

					
						 

					
					
						International Business Machines Corporation ("IBM")

					
						Equity Award Agreement

				
	
					
						Plan

					
					
						[IBM 1999 Long-Term Performance Plan (the "Plan")]

					
						 

				
	
					
						Award Type

					
					
						[Stock Options, Restricted Stock, Restricted Stock Units, Cash-Settled Restricted Stock Units, SARs]

					
						 

				
	
					
						Purpose

					
					
						The purpose of this Award is to retain selected employees and executives.  You recognize that this Award represents a potentially significant benefit to you and is awarded for the purpose stated here.

					
						 

				
	
					
						Awarded to

					
						Home Country

					
						Global ID

					
					
						Sample

					
						United States (USA) [Employee ID]

					
						[Global ID]

				
	
					
						Award Agreement

					
					
						This Equity Award Agreement, together with the “Terms and Conditions of Your Equity Award: Effective July 15, 2019” (“Terms and Conditions”) document and the Plan [http://w3.ibm.com/hr/exec/comp/eq_prospectus.shtml] [https://w3cms.s3-api.us-geo.objectstorage.softlayer.net/inline-files/LTPP_1999_august_2007_prospectus.pdf], both of which are incorporated herein by reference, together constitute the entire agreement between you and IBM with respect to your Award.  This Equity Award Agreement shall be governed by the laws of the State of New York, without regard to conflicts or choice of law rules or principles.

					
						 

				
	
					
						Grant

					
					
						Date of Grant: [Month Date, Year]

					
						[Exercise Price:  $XX]

					
						Number of [Options/Units/Shares/SARs] Awarded: [XX]

					
						 

				
	
					
						Vesting 

					
					
						This Award vests as set forth below, subject to your continued employment with the Company as described in the Terms and Conditions document.

					
						 

					
						Options/Units/Shares/SARs                  Date

					
						        [number of shares]                         [month date year]

					
						        [number of shares]                         [month date year]

					
						        [            “              ]                         [          “                ]

					
						 

					
						Options expire, subject to the Terms and Conditions document, on:    [month date year]

					
						 

				
	
					
						Terms and Conditions of Your Equity Award

					
						 

					
						 

					
					
						Refer to the Terms and Conditions document [http://w3.ibm.com/hr/exec/comp/eq_prospectus.shtml] [attached] for an explanation of the terms and conditions applicable to your Award, including those relating to:

					
						 

					
						•    Cancellation and rescission of awards (also see below)

					
						•    Jurisdiction, governing law, expenses and taxes

					
						•    Non-solicitation of Company employees and clients, if applicable

					
						•    Treatment of your Award in the event of death or disability or leave of absence

					
						•    Treatment of your Award upon termination of employment, including retirement or for cause, (i) if you are on the performance team, or any successor team thereto, and (ii) under all other circumstances.

					
						 

					
						It is strongly recommended that you print the Terms and Conditions document for later reference.

					
						 

				

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						Page 1 of 2

					

					

						 

				

		

			 

		

		

		
			 
		

			
					
						Cancellation and Rescission

					
					
						You understand that IBM may cancel, modify, rescind, suspend, withhold or otherwise limit or restrict this Award in accordance with the terms of the Plan.  You understand that the Rescission Period that has been established for this Award is 12 months.  Refer to the Terms and Conditions document and the Plan for further details.

					
						 

				
	
					
						Data Privacy, Electronic Delivery

					
					
						By accepting this Award, you agree that data, including your personal data, necessary to administer this Award may be exchanged among IBM and its subsidiaries and affiliates as necessary, and with any vendor engaged by IBM to administer this Award, subject to the Terms and Conditions document; you also consent to receiving information and materials in connection with this Award or any subsequent awards under IBM's long-term performance plans, including without limitation any prospectuses and plan documents, by any means of electronic delivery available now and/or in the future (including without limitation by e-mail, by Web site access and/or by facsimile), such consent to remain in effect unless and until revoked in writing by you.

					
						 

				
	
					
						Extraordinary Compensation

					
					
						Your participation in the Plan is voluntary.  The value of this Award is an extraordinary item of income, is not part of your normal or expected compensation and shall not be considered in calculating any severance, redundancy, end of service payments, bonus, long-service awards, pension, retirement or other benefits or similar payments.  The Plan is discretionary in nature.  This Award is a one-time benefit that does not create any contractual or other right to receive additional awards or other benefits in the future.  Future grants, if any, are at the sole grace and discretion of IBM, including but not limited to, the timing of the grant, the number of units and vesting provisions.  This Equity Award Agreement is not part of your employment agreement, if any.

					
						 

				
	
					
						Accept Your Award

					
					
						This Award is considered valid when you accept it.  This Award will be cancelled unless you accept it by 11:59 p.m. Eastern time two business days prior to the first vesting date in the “Vesting” section of this Agreement. [By pressing the Accept button below to accept your Award, you acknowledge having received and read this Equity Award Agreement, the Terms and Conditions document and the Plan under which this Award was granted and] [To record your acceptance of the Award and your acknowledgment that you have received and read this Equity Award Agreement, the Terms and Conditions document and the Plan under which this Award was granted, you must electronically sign this Agreement via Docusign.  Further by accepting this Award] you agree (i) not to hedge the economic risk of this Award or any previously-granted outstanding awards, which includes entering into any derivative transaction on IBM securities (e.g., any short sale, put, swap, forward, option, collar, etc.), (ii) to comply with the terms of the Plan, this Equity Award Agreement and the Terms and Conditions document, including those provisions relating to cancellation and rescission of awards and jurisdiction and governing law, and (iii) that by your acceptance of this Award, all awards previously granted to you under the Plan or other IBM Long-Term Performance Plans are subject to jurisdiction, governing law, expenses, taxes and administration section of the Terms and Conditions document (unless you are, and have been for at least 30 days immediately preceding, a resident of or an employee in Massachusetts at the time of the termination of your employment with IBM, in which case the jurisdiction, governing law, expenses, taxes and administration terms of your previous awards shall apply).

					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

			

					

						 

					

					

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			IBM
		

		
			TERMS AND CONDITIONS OF YOUR EQUITY AWARD:
		

		
			EFFECTIVE JULY 15, 2019
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

		
			Terms and Conditions of Your Equity Award
		

		
			 
		

		
			Table of Contents
		

		
			 
		

			
					
						

					
					
						 

				
	
					
						Introduction

					
3
				
	
					
						How to Use This Document

					
3
				
	
					
						Definition of Terms

					
4
				
	
					
						Provisions that apply to all Award types and all countries

					
6
				
	
					
						Provisions that apply to all Award types but not all countries

					
8
				
	
					
						Provisions that apply to specific Award types for all countries

					
9
				
	
					
						a. Restricted Stock Units (“RSUs”) including Cash-Settled RSUs and Retention RSUs (“RRSUs”) 

					
9
				
	
					
						i. All RSUs

					
9
				
	
					
						ii. RSUs Other Than Cash-Settled RSUs and Cash-Settled RRSUs

					
11
				
	
					
						iii. Cash-Settled RSUs including Cash-Settled RRSUs

					
11
				
	
					
						b. Restricted Stock

					
11
				
	
					
						c. Stock Options (“Options”) and Stock Appreciation Rights (“SARs”) 

					
13
				
	
					
						i. All Option and SAR Awards

					
13
				
	
					
						ii. All SAR Awards

					
14
				
	
					
						d. Performance Share Units (“PSUs”) 

					
15
				
	
					
						Provisions that apply to specific countries

					
16
				
	
					
						a. Denmark

					
16
				
	
					
						b. Israel

					
16
				
	
					
						c. United States 

					
16
				

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			Terms and Conditions of Your Equity Award
		

		
			Introduction
		

		
			This document provides you with the terms and conditions of your Award that are in addition to the terms and conditions contained in your Equity Award Agreement for your specific Award. Also, your Award is subject to the terms and conditions in the governing plan document; the applicable document is indicated in your Equity Award Agreement and can be found at [http://w3.ibm.com/hr/exec/comp/eq_prospectus.shtml.
		

		
			As an Award recipient, you can see a personalized summary of all your outstanding equity grants in the “Personal statement” section of the IBM executive compensation web site (http://w3.ibm.com/hr/exec/comp). This site also contains other information about long-term incentive awards, including copies of the prospectus (the governing plan document).  If you have additional questions and you are based in the U.S., you can call the IBM Benefits Center at 866-937-0720, weekdays from 8:00 a.m. to 8:00 p.m. Eastern time (TTY available at 800-426-6537). Outside of the U.S. dial your country’s toll-free AT&T Direct® access number, and then enter 866-937-0720. In the U.S., call 800-331-1140 to obtain AT&T Direct access numbers. Access numbers are also available online at www.att.com/traveler or from your local operator][https://w3cms.s3-api.us-geo.objectstorage.softlayer.net/inline-files/LTPP_1999_august_2007_prospectus.pdf].
		

		
			 
		

		
			How to Use This Document
		

		
			Terms and conditions that apply to all awards in all countries can be found on page 6. Review these in addition to any award- or country-specific terms and conditions that may be listed. Once you have reviewed these general terms, check in your Equity Award Agreement for any award-specific and/or country-specific terms that apply to your Award.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			Terms and Conditions of Your Equity Award:
		

		
			 
		

		
			Definition of Terms
		

		
			The following are defined terms from the Long-Term Performance Plan, your Equity Award Agreement, or this Terms and Conditions document. These are provided for your information. In addition to this document, see the Plan prospectus and your Equity Award Agreement for more details.
		

		
			“Awards” -- The grant of any form of stock option, stock appreciation right, stock or cash award, whether granted singly, in combination or in tandem, to a Participant pursuant to such terms, conditions, performance requirements, limitations and restrictions as the Committee may establish in order to fulfill the objectives of the Plan.
		

		
			"Board" -- The Board of Directors of International Business Machines Corporation ("IBM").
		

		
			"Capital Stock" -- Authorized and issued or unissued Capital Stock of IBM, at such par value as may be established from time to time.
		

		
			“Committee” -- The committee designated by the Board to administer the Plan.
		

		
			"Company" -- IBM and its affiliates and subsidiaries including subsidiaries of subsidiaries and partnerships and other business ventures in which IBM has an equity interest.
		

		
			“Engage in or Associate with” includes, without limitation, engagement or association as a sole proprietor, owner, employer, director, partner, principal, joint venture, associate, employee, member, consultant, or contractor.  This also includes engagement or association as a shareholder or investor during the course of your employment with the Company, and includes beneficial ownership of five percent (5%) or more of any class of outstanding stock of a competitor of the Company following the termination of your employment with the Company.
		

		
			“Equity Award Agreement” -- The document provided to the Participant which provides the grant details.
		

		
			"Fair Market Value" -- The average of the high and low prices of Capital Stock on the New York Stock Exchange for the date in question, provided that, if no sales of Capital Stock were made on said exchange on that date, the average of the high and low prices of Capital Stock as reported for the most recent preceding day on which sales of Capital Stock were made on said exchange.
		

		
			"Participant" -- An individual to whom an Award has been made under the Plan. Awards may be made to any employee of, or any other individual providing services to, the Company. However, incentive stock options may be granted only to individuals who
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			are employed by IBM or by a subsidiary corporation (within the meaning of section 424(f) of the Code) of IBM, including a subsidiary that becomes such after the adoption of the Plan.
		

		
			“Performance Team” – For purposes of the Plan, the Performance Team refers to the team of IBM’s senior leaders who run IBM Business Units or geographies, including the chairman and CEO.  The CEO selects and invites these senior leaders to join the Performance Team.
		

		
			“Plan” -- Any IBM Long-Term Performance Plan.
		

		
			“Termination of Employment” -- For the purposes of determining when you cease to be an employee for the cancellation of any Award, a Participant will be deemed to be terminated if the Participant is no longer employed by IBM or a subsidiary corporation that employed the Participant when the Award was granted unless approved by a method designated by those administering the Plan.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			Terms and Conditions of Your Equity Award:
		

		
			 
		

		
			Provisions that apply to all Award types and all countries
		

		
			The following terms apply to all countries and for all Award types (Restricted Stock Units, Cash-Settled Restricted Stock Units, Restricted Stock, Stock Options, Stock Appreciation Rights and Performance Share Units).
		

		
			Cancellation and Rescission
		

		
			All determinations regarding enforcement, waiver or modification of the cancellation and rescission and other provisions of the Plan and your Equity Award Agreement (including the provisions relating to termination of employment, death and disability) shall be made in IBM’s sole discretion. Determinations made under your Equity Award Agreement and the Plan need not be uniform and may be made selectively among individuals, whether or not such individuals are similarly situated.
		

		
			You agree that the cancellation and rescission provisions of the Plan and your Equity Award Agreement are reasonable and agree not to challenge the reasonableness of such provisions, even where forfeiture of your Award is the penalty for violation.  Engaging in Detrimental Activity (as defined in the Plan) during employment or after your employment relationship has ended may result in cancellation or rescission of your Award.
		

		
			 
		

		
			The cancellation and rescission provisions of the Plan may be triggered by your acceptance of an offer to Engage in or Associate with any business which is or becomes competitive with the Company, or your engagement in competitive activities after your employment relationship with IBM has ended if: (i) on or prior to the grant date stated in your latest Equity Award Agreement you have entered into a Noncompetition Agreement with IBM; or (ii) the Award is a Retention Restricted Stock Unit award.  Notwithstanding the above, the cancellation and rescission provisions of the Plan will apply to all Awards if during your employment with IBM you engage in any Detrimental Activity, including competitive activities, described in Section 13(a) of the Plan.
		

		
			For the avoidance of doubt: (a) all other cancellation and rescission provisions of the Plan will apply to all Awards if after your employment relationship has ended with IBM but during the Rescission Period you engage in any  Detrimental Activity described in Section 13(a) (excluding Section 13(a)(i)) of the Plan; and (b) the cancellation and rescission provisions of the Plan will apply to all Awards if during your employment with IBM you engage in any Detrimental Activity, including competitive activities, described in Section 13(a) of the Plan.
		

		
			Jurisdiction, Governing Law, Expenses, Taxes and Administration
		

		
			Your Equity Award Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to its conflict of law rules. You agree that any action or proceeding with respect to your Equity Award Agreement shall 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			be brought exclusively in the state and federal courts sitting in New York County or, Westchester County, New York.  You agree to the personal jurisdiction thereof, and irrevocably waive any objection to the venue of such action, including any objection that the action has been brought in an inconvenient forum.
		

		
			If any court of competent jurisdiction finds any provision of your Equity Award Agreement, or portion thereof, to be unenforceable, that provision shall be enforced to the maximum extent permissible so as to effect the intent of the parties, and the remainder of your Equity Award Agreement shall continue in full force and effect.
		

		
			If you or the Company brings an action to enforce your Equity Award Agreement and the Company prevails, you will pay all costs and expenses incurred by the Company in connection with that action and in connection with collection, including reasonable attorneys’ fees.
		

		
			If the Company, in its sole discretion, determines that it has incurred or will incur any obligation to withhold taxes as a result of your Award, without limiting the Company’s rights under Section 9 of the Plan, the Company may withhold the number of shares that it determines is required to satisfy such liability and/or the Company may withhold amounts from other compensation to the extent required to satisfy such liability under federal, state, provincial, local, foreign or other tax laws. To the extent that such amounts are not withheld, the Company may require you to pay to the Company any amount demanded by the Company for the purpose of satisfying such liability.
		

		
			If the Company changes the vendor engaged to administer the Plan, you consent to moving all of the shares you have received under the Plan that is in an account with such vendor (including unvested and previously vested shares), to the new vendor that the Company engages to administer the Plan. Such consent will remain in effect unless and until revoked in writing by you.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			Terms and Conditions of Your Equity Award:
		

		
			 
		

		
			Provisions that apply to all Award types but not all countries
		

		
			The following provision applies to all Award types (Restricted Stock Units, Cash-Settled Restricted Stock Units, Restricted Stock, Stock Options, Stock Appreciation Rights and Performance Share Units) granted to all individuals in all countries except those with a home country of Latin America, specifically: Argentina, Bolivia, Brazil, Chile, Columbia, Costa Rica, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela.
		

		
			Non-Solicitation
		

		
			In consideration of your Award, you agree that during your employment with the Company and for two years following the termination of your employment for any reason, you will not directly or indirectly hire, solicit or make an offer to any employee of the Company to be employed or perform services outside of the Company. Also, you agree that during your employment with the Company and for one year following the termination of your employment for any reason, you will not directly or indirectly, solicit, for competitive business purposes, any customer of the Company with which you were involved as part of your job responsibilities during the last year of your employment with the Company. By accepting your Award, you acknowledge that the Company would suffer irreparable harm if you fail to comply with the foregoing, and that the Company would be entitled to any appropriate relief, including money damages, equitable relief and attorneys’ fees.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			Terms and Conditions of Your Equity Award:
		

		
			 
		

		
			Provisions that apply to specific Award types for all countries
		

		
			 
		

		
			a. Restricted Stock Units (“RSUs”) including Cash-Settled RSUs and Retention RSUs (“RRSUs”)
		

		
			All references in this document to RSUs include RRSUs, unless explicitly stated otherwise
		

		
			i. All RSUs
		

		
			Termination of Employment including Death, Disability and Leave of Absence
		

		
			Termination of Employment
		

		
			In the event you cease to be an employee (other than on account of death or are disabled as described in Section 12 of the Plan) prior to the Vesting Date(s) set in your Equity Award Agreement, all then unvested RSUs, including RRSUs, under your Award shall be canceled.
		

		
			However, your unvested and/or outstanding RSUs, but not RRSUs, will continue to vest upon the termination of employment if all of the following criteria are met:
		

			
	
			
				 ·
			

			
	
			
			You are on the Performance Team or any successor team thereto, at the time of termination of employment;

			
	
			
				 ·
			

			
	
			
			You have completed at least one year of active service since the award date of grant;

			
	
			
				 ·
			

			
	
			
			You have reached age 55 with 15 years of service at the time of termination of employment (age 60 with 15 years of service for the Chairman and CEO); and

			
	
			
				 ·
			

			
	
			
			Appropriate senior management, the Committee or the Board, as appropriate, do not exercise their discretion to cancel or otherwise limit the vesting of the RSUs.

		
			Death or Disability
		

		
			Upon your death all RSUs covered by this Agreement shall vest immediately and your Vesting Date shall be your date of death. If you are disabled as described in Section 12 of the Plan, your RSUs shall continue to vest according to the terms of your Award.
		

		
			Leave of Absence
		

		
			In the event of a management approved leave of absence, any unvested RSUs shall continue to vest as if you were an active employee of the Company, subject to the terms in this document and your Equity Award Agreement. If you return to active status, your unvested RSUs will continue to vest in accordance with the terms in this document and your Equity Award Agreement.
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			Dividend Equivalents
		

		
			IBM shall not pay dividend equivalents on cash-settled or stock-settled unvested RSU awards.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			Terms and Conditions of Your Equity Award:
		

		
			Provisions that apply to specific Award types for all countries
		

		
			ii. RSUs Other Than Cash-Settled RSUs and Cash-Settled RRSUs
		

		
			Settlement of Award
		

		
			Subject to Sections 12 and 13 of the Plan and the section "Termination of Employment including Death, Disability and Leave of Absence" above, upon the Vesting Date(s), or as soon thereafter as may be practicable but in no event later than March 15 of the following calendar year, IBM shall make a payment to Participant in shares of Capital Stock equal to the number of vested RSUs, subject to any applicable tax withholding requirements as described in Section 9 of the Plan, and the respective RSUs shall thereupon be canceled. RSUs are not shares of Capital Stock and do not convey any stockholder rights.
		

		
			 
		

		
			iii. Cash-Settled RSUs including Cash-Settled RRSUs
		

		
			Settlement of Award
		

		
			Subject to Sections 12 and 13 of the Plan and the section entitled "Termination of Employment including Death, Disability and Leave of Absence" above, upon the Vesting Date(s), or as soon thereafter as may be practicable but in no event later than March 15 of the following calendar year, the Company shall make a payment to Participant in cash equal to the Fair Market Value of the vested RSUs, subject to any applicable tax withholding requirements as described in Section 9 of the Plan, and the respective RSUs shall thereupon be canceled. Fair Market Value will be calculated in your home country currency at the exchange rate on the applicable Vesting Date using a commercially reasonable measure of exchange rate. RSUs are not shares of Capital Stock and do not convey any stockholder rights.
		

		
			 
		

		
			b. Restricted Stock
		

		
			Settlement of Award
		

		
			Subject to Sections 12 and 13 of the Plan and the paragraph entitled
		

		
			"Termination of Employment including Death, Disability or Leave of Absence" below, upon the Vesting Date(s), or as soon thereafter as may be practicable but in no event later than March 15 of the following calendar year, the shares of Restricted Stock awarded under your Equity Award Agreement will be deliverable to you, subject to any applicable tax withholding requirements as described in Section 9 of the Plan.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			Terms and Conditions of Your Equity Award:
		

		
			Provisions that apply to specific Award types for all countries
		

		
			Termination of Employment including Death, Disability and Leave of Absence
		

		
			Termination of Employment
		

		
			In the event you cease to be an employee (other than on account of death or are disabled as described in Section 12 of the Plan) prior to the Vesting Date(s) in your Equity Award Agreement, all then unvested shares of Restricted Stock under your Award shall be canceled (unless your Equity Award Agreement provides otherwise).
		

		
			Death or Disability
		

		
			Upon your death all unvested shares of Restricted Stock covered by your Equity Award Agreement shall vest immediately and your Vesting Date shall be your date of death. If you are disabled as described in Section 12 of the Plan, your unvested shares of Restricted Stock shall continue to vest according to the terms of your Equity Award Agreement.
		

		
			Leave of Absence
		

		
			In the event of a management approved leave of absence, any unvested shares of Restricted Stock shall continue to vest as if you were an active employee of the Company, subject to the terms in this document and your Equity Award Agreement. If you return to active status, your unvested shares of Restricted Stock will continue to vest in accordance with the terms in this document and your Equity Award Agreement.
		

		
			Dividends and Other Rights
		

		
			During the period that the Restricted Stock is held by IBM hereunder, such stock will remain on the books of IBM in your name, may be voted by you, and any applicable dividends shall be paid to you. Shares issued in stock splits or similar events which relate to Restricted Stock then held by IBM in your name shall be issued in your name but shall be held by IBM under the terms hereof.
		

		
			Transferability
		

		
			Shares of Restricted Stock awarded under your Equity Award Agreement cannot be sold, assigned, transferred, pledged or otherwise encumbered prior to the vesting of your Award as set forth in your Equity Award Agreement and any such sale, assignment, transfer, pledge or encumbrance, or any attempt thereof, shall be void.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			Terms and Conditions of Your Equity Award:
		

		
			Provisions that apply to specific Award types for all countries
		

		
			c. Stock Options (“Options”) and Stock Appreciation Rights (“SARs”)
		

		
			i. All Option and SAR Awards
		

		
			Termination of Employment including Death, Disability and Leave of Absence
		

		
			Termination of Employment
		

		
			In the event you cease to be an employee (other than on account of death or are disabled as described in Section 12 of the Plan):
		

			
	
			
				 ·
			

			
	
			
			Any Options or SARs that are not exercisable as of the date your employment terminates shall be canceled immediately (unless your Equity Award Agreement provides otherwise), and

			
	
			
				 ·
			

			
	
			
			Any Options or SARs that are exercisable as of the date your employment terminates (other than for cause) will remain exercisable for 90 days (not three months) after the date of termination, after which any unexercised Options or SARs are canceled; provided, however, if you are a banded executive when your employment with the Company terminates (other than for cause) after you have attained age 55 and completed at least 15 years of service with the Company at the time of termination, any Options or SARs that are exercisable as of the date your employment terminates shall remain exercisable for the full term as in your Equity Award Agreement (unless your Equity Award Agreement provides otherwise).

		
			Death or Disability
		

		
			In the event of your death, all Options or SARs shall become fully exercisable and remain exercisable for their full term.
		

		
			In the event you are disabled (as described in Section 12 of the Plan), any unvested Options or SARs shall continue to vest and be exercisable.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			Terms and Conditions of Your Equity Award:
		

		
			Provisions that apply to specific Award types for all countries
		

		
			Leave of Absence
		

		
			In the event of a management approved leave of absence, any unvested Options or SARs shall continue to vest and be exercisable as if you were an active employee of the Company, subject to the terms in this document and your Equity Award Agreement. If you return to active status, your Options or SARs will continue to vest and be exercisable in accordance with their terms. If you do not return to active status,
		

			
	
			
				 ·
			

			
	
			
			Your unvested Options or SARs will be canceled immediately; and

			
	
			
				 ·
			

			
	
			
			Your vested Options or SARs will be canceled on the later of the 91st day following your last day of active employment or the date of the termination of your leave of absence; provided, however, if you are a banded executive when your employment terminates (other than for cause) after you have attained age 55 and completed at least 15 years of service with the Company at the time of termination, any Options or SARs that are exercisable as of the date your employment terminates shall remain exercisable for the full term as in your Equity Award Agreement.

		
			Termination of Employment for Cause
		

		
			If your employment terminates for cause, all exercisable and not exercisable Options or SARs are canceled immediately.
		

		
			 
		

		
			ii. All SAR Awards
		

		
			Settlement of Award
		

		
			Upon exercise, the Company shall deliver an aggregate amount, in cash, equal to the excess of the Fair Market Value of a share of Capital Stock on the date of exercise over the Exercise Price set forth in your Equity Award Agreement multiplied by the number of SARs exercised, subject to any applicable tax withholding requirements as described in Section 9 of the Plan. The value of the Award will be calculated in your home country currency at the exchange rate on the date the Award becomes fully vested using a commercially reasonable measure of exchange rate.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			Terms and Conditions of Your Equity Award:
		

		
			Provisions that apply to specific Award types for all countries
		

		
			d. Performance Share Units (“PSUs”)
		

		
			Termination of Employment, including Death and Disability, and Leave of Absence
		

		
			Termination of Employment and Leave of Absence
		

		
			If you cease to be an active, full-time employee for any reason (other than on account of death or are disabled as described in Section 12 of the Plan) before the Date of Payout (in the case of a recipient in the United States, at year end of the applicable PSU Performance Period), all PSUs are canceled immediately provided, however, if you are a banded executive when you cease to be an active, full-time employee (other than for cause) after you have attained age 55, completed at least 15 years of service with the Company at such time, and completed at least one year of active service during the PSU Performance Period (as set forth in your Equity Award Agreement), the PSUs granted hereunder shall be paid out on the Date of Payout (as set forth in your Equity Award Agreement) based on IBM performance over the entire applicable Performance Period(s), in an amount that will be prorated for the number of months completed as an active executive during the PSU Performance Period, adjusted for the performance score.
		

		
			However, your unvested PSUs will continue to vest upon termination of employment or the time you cease to be an active, full-time employee if all of the following criteria are met:
		

			
	
			
				 o
			

			
	
			
			You are on the Performance Team, or any successor team thereto, at the time of termination of employment or the time you cease to be an active, full-time employee;

			
	
			
				 o
			

			
	
			
			You have completed at least one year of active service during the PSU Performance Period (as set forth in your Equity Award Agreement);

			
	
			
				 o
			

			
	
			
			You have reached age 55 with 15 years of service at the time of termination of employment or the time you cease to be an active, full-time employee (age 60 with 15 years of service for the Chairman and CEO);

			
	
			
				 o
			

			
	
			
			The Committee has certified that all performance conditions have been met; and

			
	
			
				 o
			

			
	
			
			Appropriate senior management, the Committee or the Board, as appropriate, do not exercise their discretion to cancel or otherwise limit the payout.

		
			Death or Disability
		

		
			Prior to the Date of Payout, (i) in the event of your death or (ii) if you are disabled (as described in Section 12 of the Plan), all PSUs shall continue to vest according to the terms of your Equity Award Agreement and the PSUs will be paid out at the end of the Performance Period based on IBM performance over the entire applicable Performance Period(s).
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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			Terms and Conditions of Your Equity Award:
		

		
			Provisions that apply to specific countries
		

		
			a. Denmark
		

		
			i. All Awards
		

		
			Non-Solicitation
		

		
			The following part of the above non-solicitation provision does not apply to those individuals with the home country of Denmark: “In consideration of your Award, you agree that during your employment with the Company and for two years following the termination of your employment for any reason, you will not directly or indirectly hire, solicit or make an offer to any employee of the Company to be employed or perform services outside of the Company.”
		

		
			 
		

		
			b. Israel
		

		
			 
		

		
			i. All Awards
		

		
			 
		

		
			Data Privacy
		

		
			In addition to the data privacy provisions in your Equity Award Agreement, you agree that data, including your personal data, necessary to administer this Award may be exchanged among IBM and its subsidiaries and affiliates as necessary (including transferring such data out of the country of origin both in and out of the EEA), and with any vendor engaged by IBM to administer this Award.
		

		
			 
		

		
			c. United States
		

		
			 
		

		
			i. All Awards
		

		
			 
		

		
			Nothing in the Plan prospectus, your Equity Award Agreement or this Document affects your rights, immunities, or obligations under any federal, state, or local law, including under the Defend Trade Secrets Act of 2016, as described in Company policies, or prohibits you from reporting possible violations of law or regulation to a government agency, as protected by law.
		

		
			 
		

		
			If you are, and have been for at least 30 days immediately preceding the termination of your employment with IBM, a resident of, or an employee in, the Commonwealth of Massachusetts at the time of the termination of your employment with IBM, cancellation and rescission provisions of the Plan will not apply if you engage in competitive activities after your employment relationship has ended with IBM. For the avoidance of doubt, cancellation and rescission provisions of the Plan will apply if you engage in (1) any Detrimental Activity prior to your employment relationship ending with IBM or (2) any Detrimental Activity described in Section 13(a) of the Plan other than engaging in competitive activities after your employment relationship has ended with IBM.
		

		
			 
		

		 

		

			 

		

			

					

						 

					

					

						 

				
	

					

						 

					

					

						 

				
	

					

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