Document:

ctbi8k2012execcompex10-11.htm

Exhibit 10.11

 

 

 

 

 

 

 

 

COMMUNITY TRUST BANCORP, INC.

 

2012 EXECUTIVE COMMITTEE

 

LONG-TERM INCENTIVE COMPENSATION PLAN

 

  

  

  

 

ARTICLE I

 

OBJECTIVES

 

Section 1.01

 

The 2012 Executive Committee Long-Term Incentive Compensation Plan is designed to reward members of the Executive Committee for Community Trust Bancorp, Inc.’s attainment of profitability on a long-term basis, and is adopted to achieve the following objectives:

 

	  	
(a)

	
Increase the profitability and growth of Community Trust Bancorp, Inc. in a manner which is consistent with other goals of Community Trust Bancorp, Inc., its stockholders and its employees;

	  	
(b)

	
Provide executive compensation which is competitive with other financial institutions;

	  	
(c)

	
Attract and retain personnel of outstanding ability and encourage excellence in the performance of individual responsibilities; and

	  	
(d)

	
Motivate and reward members of the Executive Committee for their contribution to the long-term success of Community Trust Bancorp, Inc.

 

 

ARTICLE II

 

DEFINITIONS

Section 2.01

As used herein, the following words and phrases shall have the meanings below unless the context clearly indicates otherwise:

 

	
(a)  

	
 “Annual Long-Term Incentive Plan” or “Plan” means the 2012 Executive Committee Long-Term Incentive Compensation Plan set forth in this document and all amendments thereto.

 

 

	
(b)  

	
“Board” means the Board of Directors of Community Trust Bancorp, Inc.

 

 

	
(c)  

	
“Change in Control” shall have the meaning specified in the Company’s 2006 Stock Ownership Incentive Plan.

 

 

	
(d)  

	
“Cumulative Net Income” shall mean Community Trust Bancorp, Inc’s cumulative net income for the three (3) years ending December 31, 2014, computed in accordance with generally accepted accounting principles and giving effect to the accrual for payment of all incentive compensation.

 

 

	
(e)  

	
“Company” means Community Trust Bancorp, Inc., and its subsidiaries.

 

 

	
(f)  

	
“Compensation Committee” means the Compensation Committee of the Board.

 

 

	
(g)  

	
“Disability” shall have the meaning specified in the Company’s 2006 Stock Ownership Incentive Plan.

 

 

	
(h)  

	
“Effective Date” means January 1, 2012, the date on which the Plan becomes effective.

 

 

	
(i)  

	
“Fiscal Year” means the accounting period adopted by the Company for federal income tax purposes.

 

 

	
(j)  

	
“Participant” means each member of the Executive Committee as of January 1, 2012.

 

 

	
(k)  

	
“Performance Goal” shall have the meaning set forth in Section 7.01 below.

 

 

	
(l)  

	
“Performance Period” means the three (3) Fiscal Years beginning on January 1, 2012.

 

 

	
(m)  

	
“Performance Unit” shall have the meaning specified in the Company’s 2006 Stock Ownership Incentive Plan, with each Performance Unit to have a potential value of $1.00.

 

 

	
(n)  

	
“Retirement” shall have the meaning specified in the Company’s 2006 Stock Ownership Incentive Plan.

 

 

	
(o)  

	
“Salary” or “Salaries” means the base salary in effect for each Participant as of the last pay period in December 2012.

 

 

ARTICLE III

 

ADMINISTRATION OF THE PLAN

 

 

Section 3.01

 

The Compensation Committee shall administer the Plan and employ such agents as may reasonably be required to administer the Plan.

 

Section 3.02

 

The Compensation Committee shall adopt such rules and regulations of general application as are beneficial for the administration of the Plan and shall make all discretionary decisions involving a Participant in the Plan.  The Compensation Committee shall also have the right to interpret the Plan, consistently with the applicable provisions of the 2006 Stock Ownership Incentive Plan, to determine the Effective Date, and to approve Participants in the Plan.

 

Section 3.03

 

A majority of the Compensation Committee shall constitute a quorum.  The acts of a majority of the members present at any meeting at which there is a quorum shall be valid acts.  Acts reduced to and approved in writing by a majority of the Compensation Committee shall also be valid acts.

 

Section 3.04

 

All incentive compensation payable under the Plan shall be paid from the general assets of the Company.  To the extent that any person acquires a right to receive payments under the Plan, such right shall be no greater than the right of any unsecured creditor of the Company.

 

Section 3.05

 

The Compensation Committee may authorize the Chairman of the Board, President and Chief Executive Officer of the Company to send a written notice of such Plan to each Participant, substantially in the form of Attachment A hereto, and to execute and deliver, on behalf of the Company, a Performance Unit Agreement granting Performance Units to the Participant consistent with the Plan.  No person shall have rights under the Plan until receiving and executing a Performance Unit Agreement, also executed by the Company, substantially in the form of Attachment B hereto.

 

Section 3.06

 

All costs and expenses involved in the administration of the Plan shall be paid by the Company.

 

Section 3.07

 

Any determination or action of the Compensation Committee or the Board shall be final, conclusive and binding on all Participants and their beneficiaries, heirs, personal representatives, executors and administrators.

 

Section 3.08

 

The Board of Directors, in its sole discretion, may amend, modify or terminate the Plan at any time.  Notwithstanding the foregoing, after the ninetieth (90th) day of the year, the Performance Goals specified in Section 7.01 of this Plan may not be amended in a manner which would increase the amount of compensation payable pursuant to Performance Units over the amount which would have been payable under the Performance Goals previously established for such year.

 

 

ARTICLE IV

 

PARTICIPANT ELIGIBILITY

 

Section 4.01

 

The Participants in the Plan will be the members of the Executive Committee of the Company as of January 1, 2012.

 

Section 4.02

 

Voluntary or involuntary termination of full-time employment of a Participant prior to the expiration of the Performance Period will result in such Participant forfeiting any payment for Performance Units for the Performance Period, except as provided in Sections 4.03 and 4.04 below.

 

Section 4.03

 

In the case of termination of employment by reason of death or Disability of a Participant prior to the expiration of the Performance Period, any then outstanding Performance Units of such Participant shall be payable in an amount equal to the amount payable under the Performance Unit at the Target Cumulative Net Income level (as set forth in Section 7.01 below) multiplied by a percentage equal to the percentage that would have been earned under the terms of the Performance Unit Agreement assuming that the rate at which the Performance Goal set forth in Section 7.01 below has been achieved, as of the date of such termination of employment, would have continued until the end of the Performance Period.

 

In the case of termination of employment by reason of Retirement of a Participant prior to the expiration of the Performance Period, Participant’s Performance Units shall be payable on a pro rata basis at the end of the Performance Period, as provided in Section 5.01 below, in an amount equal to: (a) the amount to which the Participant would have been entitled with respect to the Participant’s Performance Units if the Participant’s employment had continued to the end of the Performance Period; multiplied by (b) a fraction, the numerator of which is the number of full months the Participant is employed by the Company during the Performance Period, and the denominator of which is 36 (the number of months in the Performance Period).

 

Section 4.04

 

Upon a Change in Control, any then outstanding Performance Units shall become fully vested and payable as soon as reasonably practicable, but no later than seventy-four (74) days following the Change in Control, in an amount which is equal to the greater of (a) the amount payable under the Performance Unit at the Target Cumulative Net Income level (as set forth in Section 7.01 below) multiplied by a percentage equal to the percentage that would have been earned under the terms of the Performance Unit Agreement assuming that the rate at which the Performance Goal has been achieved as of the date of such Change in Control would have been continued until the end of the Performance Period; or (b) the amount payable under the Performance Unit at the Target Cumulative Net Income level (as set forth in Section 7.01 below) multiplied by the percentage of the Performance Period completed by the Participant at the time of the Change in Control.

 

Section 4.05

 

New employees of the Company and persons promoted during the Performance Period who were not eligible to participate in the Plan at the beginning of the Performance Period, but have become members of the Executive Committee, shall participate in the Plan so long as such eligibility came into existence no later than six (6) months after the beginning of the Performance Period.  If a person becomes eligible at a date later than six (6) months into the Performance Period, such person shall not be a Participant under the Plan.

 

 

ARTICLE V

 

PAYMENTS TO PARTICIPANTS

 

Section 5.01

 

The maximum payment that can be made pursuant to Performance Units granted to any one Participant in any calendar year is $250,000.  Subject to this limitation and such terms and conditions as the Compensation Committee may impose, Performance Units shall be payable: (a) within seventy-four (74) days following the end of the Performance Period during which the Participant attained at least the minimum acceptable level of achievement under the Performance Goal; or (b) in the event of a Change in Control, as soon as reasonably practicable following the Change in Control, but no later than seventy-four (74) days following the Change in Control.

 

Section 5.02

 

A Participant may elect to defer payment of all or part of his or her compensation under the Performance Units so long as the Participant requests such deferred payment under the terms of the Company’s Voluntary Deferred Compensation Plan; provided, however that such election to defer payment is subject to, and shall be made in accordance with, U. S. Treas. Reg. 1.409A-2(b)(1).

 

 

ARTICLE VI

 

DETERMINATION OF TARGET AWARD FUND FOR PERFORMANCE UNITS

 

Section 6.01

 

The target award fund shall be generated by a percentage of the Salary of the Chief Executive Officer and the other members of the Executive Committee, respectively.  The target award fund shall be computed as shown in Table I below; however, the target award may be changed by the Compensation Committee of the Board of Directors at any time during the Performance Period at their discretion; provided, however, that the target award as a percentage of Salary may not be increased after the ninetieth (90th) day of the 2012 calendar year.

 

 

TABLE I

 

TARGET AWARD FUND

 

 

	
PARTICIPANTS

	
SALARIES

	
TARGET AWARD EXPRESSED AS A % OF SALARY

	
TARGET AWARD FUND

	
Chief Executive Officer

	
$___________

	
X 20%

	
$___________

	
All Other Members of the Executive Committee

	
$___________

(aggregate Salaries)*

	
X 15%

	
$___________

*The aggregate Salaries may be increased to reflect the Salaries of any new members of the Executive Committee to the extent permitted under Section 4.05 above.

 

Section 6.02

 

The actual amount of payments under the Performance Units shall be calculated according to a schedule comparing Cumulative Net Income to the Performance Goals described in Section 7.01 below.  When performance meets established Performance Goals, the award fund will be adjusted according to the table shown in Section 7.01 below.

 

Section 6.03

 

Subject to Sections 4.03 and 4.04 above, there shall be a minimum acceptable performance beneath which no amounts may be paid under the Performance Units (sometimes referred to as the “threshold”) and a maximum performance above which there is no additional amount paid to avoid excessive payout in the event of windfall profits.  Such minimum and maximum may be amended when necessary at any time in the sole discretion of the Compensation Committee; provided, however, that the minimum may not be reduced and the maximum may not be increased after the ninetieth (90th) day of the 2012 calendar year.

 

 

ARTICLE VII

 

CALCULATION OF PERFORMANCE UNIT PAYMENTS

 

Section 7.01

 

The amount payable to the Participants under the Performance Units is determined based on Cumulative Net Income, as shown in Table II below:

 

 

TABLE II

 

2012 PERFORMANCE GOALS

 

	
CUMULATIVE NET INCOME

	
Award as a % of Target Award

	
Award as a % of Chief Executive Officer Salary

	
Award as a % of Salary of All Other Members of the Executive Committee

	
90% of Target Cumulative Net Income (Minimum)

	
25%

	
5%

	
3.75%

	
93.8% of Target Cumulative Net Income

	
50%

	
10%

	
7.50%

	
96.2% of Target Cumulative Net Income

	
75%

	
15%

	
11.25%

	
Target Cumulative Net Income (Per Schedule 1)

	
100%

	
20%

	
15%

	
103.8% of Target Cumulative Net Income

	
120%

	
24%

	
18%

	
107.7% of Target Cumulative Net Income

	
135%

	
27%

	
20.25%

	
111.5% of Target Cumulative Net Income (Maximum)

	
150%

	
30%

	
22.5%

 

 

ARTICLE VIII

 

MISCELLANEOUS PROVISIONS

 

Section 8.01

 

The Compensation Committee may elect to remove unusual, extraordinary or non-recurring items from the calculation of Cumulative Net Income.

 

Section 8.02

 

Payments pursuant to the Performance Units shall be subject to recoupment by the Company to the extent required by applicable laws and regulations.

 

Section 8.03

The Company shall not merge into or consolidate with another entity or sell substantially all of its assets to another entity unless such other entity shall become obligated to perform the terms and conditions hereof relating to any amounts earned under Performance Units but not yet paid to the Participant.

 

  

  

  

 

ATTACHMENT A

 

 

 

NOTICE OF PARTICIPATION

 

COMMUNITY TRUST BANCORP, INC.

 

2012 EXECUTIVE COMMITTEE LONG-TERM INCENTIVE COMPENSATION PLAN

 

 

_______________________________ is eligible to participate in the 2012 Executive Committee Long-Term Incentive Compensation Plan, subject to the execution of a Performance Unit Agreement by and between Community Trust Bancorp, Inc. and you, and the terms and conditions of such Plan and your Performance Unit Agreement.

 

 

 

 

COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS

 

 

By: _______________________________________________________

 

 

Dated: _____________________________________________________

 

 

  

  

  

ATTACHMENT B

 

 

COMMUNITY TRUST BANCORP, INC.

 

2012 EXECUTIVE COMMITTEE

 

PERFORMANCE UNIT AGREEMENT

 

 

 

This Performance Unit Agreement (“Agreement”) is made on _____________ ___, 2012, by and between Community Trust Bancorp, Inc. (“CTBI” or the “Company”) and _____________________, a member of the Company’s Executive Committee (“Participant”). The Company’s 2012 Executive Committee Long-Term Incentive Compensation Plan (the “2012 LTIP”) and the Company’s 2006 Stock Ownership Incentive Plan (“2006 Incentive Plan”) are deemed to be a part of this Agreement as if fully set forth herein.  A copy of the 2012 LTIP is annexed to this Agreement and a copy of the 2006 Incentive Plan is available upon request from the Company. Unless the context otherwise requires, all terms that are not defined in this Agreement but which are defined in the 2012 LTIP shall have the meaning given to them in the 2012 LTIP when used herein.

 

 

	
1.  

	
Grant.  Pursuant to the 2012 LTIP, the Company hereby grants Participant _________ Performance Units, each with a designated value of $1.00, with a potential maximum aggregate value equal to $__________________ (“Maximum Award”), subject to the satisfaction of the Performance Goals set forth in Section 3 below.  The Maximum Award represents 150% of the Participant’s Target Award, which is   ______ Performance Units with an aggregate value of  $_______________.

 

 

	
2.  

	
Non-Transferability.  The Performance Units may not be assigned, pledged or otherwise transferred other than by will or the laws of descent and distribution, except that upon a Participant’s death, the Participant’s rights to any payment under this Agreement may be transferred to a beneficiary designated in accordance with the terms of the 2006 Incentive Plan.

 

 

	
3.  

	
Performance Goals.  The Performance Units, and any payments to Participant thereunder, are subject to the satisfaction of the Performance Goals, based on the Company’s Cumulative Net Income (for the three years ending on December 31, 2014), as shown in the table below.  The Participant will “earn” a number of Performance Units based upon the extent to which the Compensation Committee determines at the end of the three-year period ending December 31, 2014 (“Performance Period”), that the Performance Goals have been met.  Subject to Sections 5 and 6 below, unless the minimum Target Cumulative Net Income is attained, no amount may be paid under the Performance Units, and all Performance Units will be deemed cancelled.  Maximum Target Cumulative Net Income represents the highest Performance Goal that may be attained, and no additional amounts will be paid in the event that the Company’s Cumulative Net Income exceeds the maximum Cumulative Net Income shown below.

 

PERFORMANCE GOALS

 

 

	
CUMULATIVE NET INCOME

	
Award under Performance Units as a % of Target Award

	
Award under Performance Units as a % of Chief Executive Officer Salary

	
Award as a % of Salary of All Other Members of the Executive Committee

	
90% of Target Cumulative Net Income (Minimum)

	
25%

	
5%

	
3.75%

	
93.8% of Target Cumulative Net Income

	
50%

	
10%

	
7.50%

	
96.2% of Target Cumulative Net Income

	
75%

	
15%

	
11.25%

	
Target Cumulative Net Income (Per Schedule 1)

	
100%

	
20%

	
15%

	
103.8% of Target Cumulative Net Income

	
120%

	
24%

	
18%

	
107.7% of Target Cumulative Net Income

	
135%

	
27%

	
20.25%

	
111.5% of Target Cumulative Net Income (Maximum)

	
150%

	
30%

	
22.5%

 

	
4.  

	
Termination of Employment.  Voluntary or involuntary termination of full-time employment of a Participant prior to the expiration of the Performance Period will result in such Participant forfeiting any payment for Performance Units for the Performance Period, except as provided in Sections 5 and 6 below.

 

 

	
5.  

	
Death, Disability or Retirement.  In the case of termination of employment by reason of death or Disability of a Participant prior to the expiration of the Performance Period, any then outstanding Performance Units of such Participant shall be earned and payable in an amount equal to the amount payable under the Performance Unit at the Target Cumulative Net Income level (as set forth in Section 3 above) multiplied by a percentage equal to the percentage that would have been earned under the terms of the Performance Unit Agreement assuming that the rate at which the Performance Goal set forth in Section 3 above has been achieved as of the date of such termination of employment would have continued until the end of the Performance Period. In the case of termination of employment by reason of Retirement of a Participant prior to the expiration of the Performance Period, Participant’s Performance Units shall be payable on a pro rata basis at the end of the Performance Period, as provided in Section 9 below, in the amount equal to: (a) the amount to which the Participant would have been entitled with respect to the Participant’s Performance Units if the Participant’s employment had continued to the end of the Performance Period; multiplied by (b) a fraction, the numerator of which is the number of full months the Participant is employed by the Company during the Performance Period, and the denominator of which is 36 (the number of months in the Performance Period).

 

 

	
6.  

	
Change in Control.  Upon a Change in Control, any then outstanding Performance Units shall become fully vested and payable as soon as reasonably practicable, but no later than seventy-four (74) days following the Change in Control, in an amount which is equal to the greater of (a) the amount payable under the Performance Unit at the Target Cumulative Net Income level (as set forth in Section 3 above) multiplied by a percentage equal to the percentage that would have been earned under the terms of the Performance Unit Agreement assuming that the rate at which the Performance Goal has been achieved as of the date of such Change in Control would have been continued until the end of the Performance Period; or (b) the amount payable under the Performance Unit at the Target Cumulative Net Income level (as set forth in Section 3 above) multiplied by the percentage of the Performance Period completed by the Participant at the time of the Change in Control.

 

 

	
7.  

	
Recoupment.   Payments pursuant to the Performance Units shall be subject to recoupment by the Company to the extent required by applicable laws and regulations.

 

 

	
8.  

	
Authority of the Compensation Committee and the Board.  The Compensation Committee will administer the 2012 LTIP. Any determination or action by the Company’s Compensation Committee or Board of Directors shall be final, conclusive and binding on all Participants and their beneficiaries, heirs, personal representatives, executors and administrators.  The Board of Directors, in its sole discretion, may amend, modify or terminate the 2012 LTIP Plan at any time. The Compensation Committee may change the target awards and may amend the minimum and maximum Performance Goals at any time during the Performance Period. Notwithstanding the foregoing, after the ninetieth (90th) day of the year: (a) the minimum Performance Goal may not be reduced and the maximum Performance Goal may not be increased; and (b) the Performance Goals may not otherwise be amended in a manner which would increase the amount of compensation payable pursuant to Performance Units over the amount which would have been payable under the Performance Goals previously established for the Performance Period.

 

 

	
9.  

	
Payments to Participants.  The maximum payment that can be made pursuant to Performance Units granted to any one Participant in any calendar year is $250,000.  Subject to this limitation and such terms and conditions as the Compensation Committee may impose, Performance Units shall be payable: (a) within seventy-four (74) days following the end of the Performance Period during which at least the minimum Performance Goal was attained; or (b) in the event of a Change in Control, as soon as reasonably practicable following the Change in Control, but no later than seventy-four (74) days following the Change in Control.

 

 

	
10.  

	
Withholding.  A Participant shall remit to the Company an amount sufficient to satisfy Federal, state and local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to the grant of, and payments made under, the Performance Units.. If Participant fails to do so, the Company is authorized to withhold from any cash or stock compensation then or thereafter payable to Participant, any tax required to be withheld.

 

 

	
11.  

	
Deferral.  A Participant may elect to defer payment of all or part of his or her compensation under the Performance Units so long as the Participant requests such deferred payment under the terms of the Company’s Voluntary Deferred Compensation Plan; provided, however, that: (a) any such election must be made at least 12 months before the date on which payment is scheduled to be made to the Participant; (b) any such election may not take effect until at least 12 months after the date of election; and (c) any payment under the Performance Units that is subject to deferral must be deferred for a period of at least five years from the date the payment would have otherwise been made to the Participant under the 2012 LTIP.

 

	
12.  

	
Governing Law.  This Agreement shall be governed by, and construed in accordance with the laws of the Commonwealth of Kentucky without regard to its conflict of laws rules.

 

IN WITNESS WHEREOF, this Agreement has been duly executed by the Company and the Participant.

 

 

 

COMMUNITY TRUST BANCORP, INC.

 

 

By: ________________________________

 

Title: _______________________________

 

 

PARTICIPANT

 

 

___________________________________

 

___________________________________

 

            (Printed name)ADBE EX 10.13

EXHIBIT 10.13

ADOBE SYSTEMS INCORPORATED
AMMEDED 1994 PERFORMANCE AND RESTRICTED STOCK PLAN
RESTRICTED STOCK UNIT GRANT NOTICE
(STANDARD U.S.)
Adobe Systems Incorporated (the “Company”), pursuant to its Amended 1994 Performance and Restricted Stock Plan (the “Plan”), hereby awards to Participant the Restricted Stock Unit Award (the “Award”) covering the number of Restricted Stock Units set forth below.  This Award is subject to all of the terms and conditions as set forth herein and in the Restricted Stock Unit Award Agreement (the “Award Agreement”) and the Plan, each of which are attached hereto and incorporated herein in their entirety.  Unless otherwise defined herein, capitalized terms shall have the meanings set forth in the Plan or the Program, as applicable.
	
		
	Participant:
	%%FIRST_NAME%-% %%LAST_NAME%-%

	Date of Grant:
	%%OPTION_DATE,'Month DD, YYYY'%-%

	Vesting Commencement Date:
	%%VEST_BASE_DATE,'Month DD, YYYY%-%

	Number of Restricted Stock Units:
	%%TOTAL_SHARES_GRANTED%-%

	Payment for Stock:
	Participant's services to the Company (to the greatest extent permitted by applicable law)

Vesting Schedule:  This Award shall vest as to twenty-five percent of the Restricted Stock Units on the first anniversary of the Vesting Commencement Date and the remaining seventy-five percent of the Restricted Stock Units shall vest twenty-five percent annually on each anniversary of the Vesting Commencement Date thereafter, so that the Restricted Stock Units are fully vested on the fourth anniversary of the Vesting Commencement Date; provided, however, that the Participant's service has not terminated prior to each such vesting date.   
Delivery Schedule:  Except as otherwise provided in Section 5 of the Award Agreement, the Company shall deliver on each vesting date one share of Stock for each Restricted Stock Unit that vests on such date, less any shares to be withheld pursuant to Section 11 of the Award Agreement.
Additional Terms/Acknowledgements:  The Participant acknowledges receipt of, and understands and agrees to, this Grant Notice, the Award Agreement, and the Plan.  Participant further acknowledges that as of the Date of Grant, this Grant Notice, the Award Agreement, and the Plan set forth the entire understanding between Participant and the Company regarding the Award and supersede all prior oral and written agreements on that subject with the exception of any applicable change of control plan approved by the Company's Board of Directors or a committee thereof and/or an individual written retention agreement or severance provision in effect on the Date of Grant between the Company, or a subsidiary of the Company, and the Participant.
ADOBE SYSTEMS INCORPORATED:
    
By:    ________________________________           
Shantanu Narayen    
Title:  Chief Executive Officer

ADOBE SYSTEMS INCORPORATED
AMMEDED 1994 PERFORMANCE AND RESTRICTED STOCK PLAN
 RESTRICTED STOCK UNIT AWARD AGREEMENT

(STANDARD U.S.)

Pursuant to the Grant Notice (“Grant Notice”) and this Award Agreement (“Award Agreement”), Adobe Systems Incorporated (the “Company”) has awarded you, pursuant to its Amended 1994 Performance and Restricted Stock Plan (the “Plan”), a Restricted Stock Unit Award for that number of Restricted Stock Units as indicated in the Grant Notice. Unless otherwise defined herein or the Grant Notice, capitalized terms shall have the meanings set forth in the Plan. Subject to adjustment and the terms and conditions as provided herein and in the Plan, each Restricted Stock Unit shall represent the right to receive one (1) share of Stock. 

The details of your Award, in addition to those set forth in the Grant Notice, are as follows. 

		
	1.
	NUMBER OF STOCK UNITS AND SHARES OF STOCK. 

(a)The number of Restricted Stock Units subject to your Award and the number of shares of Stock deliverable with respect to such Restricted Stock Units will be adjusted from time to time for capitalization adjustments as described in the Plan. You shall receive no benefit or adjustment to your Award with respect to any cash dividend or other distribution that does not result in a capitalization adjustment pursuant to the Plan; provided, however, that this sentence shall not apply with respect to any shares of Stock that are subject to your Award after such shares have been delivered to you. 

(b)Any additional Restricted Stock Units, shares of Stock, cash or other property that become subject to the Award pursuant to this Section 1 shall be subject, in a manner determined by the Board, to the same forfeiture restrictions, restrictions on transferability, and time and manner of delivery as applicable to the other Restricted Stock Units and shares of Stock covered by your Award. 

(c)Notwithstanding the provisions of this Section 1, no fractional Restricted Stock Units or rights for fractional shares of Stock shall be created pursuant to this Section 1. The Board shall, in its discretion, determine an equivalent benefit for any fractional Restricted Stock Units or fractional shares that might be created by the adjustments referred to in this Section 1. 

2.PAYMENT BY YOU. Except as otherwise provided in the Grant Notice, this Award has been granted in consideration of your services to the Company (or any other Participating Company, as applicable). Subject to Section 11 below, and except as otherwise provided in the Grant Notice, you will not be required to make any payment to the Company (other than your past and future services with the Company (or any other Participating Company, as applicable)) with respect to your receipt of the Award, the vesting of the Restricted Stock Units, or the delivery of the shares of Stock underlying the Restricted Stock Units. 

3.VESTING. 

(a)The Restricted Stock Units shall vest, if at all, as provided in the Vesting Schedule set forth in your Grant Notice, this Award Agreement, and the Plan, provided that vesting shall cease upon the termination of your service, except as otherwise set forth herein. 

(b)If your service with the Company terminates because of your death or Disability, then you will be given credit for an additional twelve (12) months of continuous service; provided, however, that in no event shall such applicable vesting exceed 100% vesting of your Award. For purposes of this provision, (i) your service shall be deemed to have terminated on account of death if your death occurs within three (3) months after your termination of Service, and (ii) “Disability” shall mean your permanent and total disability within the meaning of Section 22(e)(3) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), and any applicable regulations promulgated thereunder to the extent not inconsistent with the regulations under Section 409A of the Code.

(c)The determination that your service was terminated shall be made by the Company (or any Participating Company, as applicable) in its sole discretion. Any such determination by the Company (or any Participating Company, as applicable) for the purposes of this Award Agreement shall have no effect upon any determination of the rights or obligations of you or the Company (or any Participating Company, as applicable) for any other purpose. 

4.DISTRIBUTION OF SHARES OF STOCK. Subject to the provisions of this Award Agreement (including Sections 5 and 11 below) and the Plan, the Company shall deliver to you on the applicable vesting date one (1) share of Stock for each Restricted Stock Unit that vests on such date. Absent a proper deferral election pursuant to Section 5 below, this Award is intended to be exempt from Code Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(4) and will be construed in accordance therewith to the greatest extent permitted under applicable law, with vested shares issued hereunder not later than the 15th day of the third month following the end of the tax year (the Company's or the Participant's, whichever is later) in which such shares are no longer subject to a substantial risk of forfeiture.  To the extent this Award is not so exempt and must comply with Code Section 409A, and absent a proper deferral election, vested shares will be issued not later than December 31st of the year of vesting, or, if later, the 15th day of the third calendar month after the applicable vesting date.

5.DEFERRAL ELECTION. If permitted by the Company to do so, you may elect to defer receipt of the shares of Stock that would otherwise be issued pursuant to the vesting of your Award in accordance with the terms and conditions, including the applicable eligibility requirements, of the Company's Deferred Compensation Plan. The Board (or an appropriate committee thereof) will, in its sole discretion, establish the rules and procedures for such deferrals. 

6.SECURITIES LAW COMPLIANCE. The grant of your Award and the issuance of any shares of Stock thereunder shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities. You may not be issued any shares of Stock if such issuance would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed. In addition, you may not be issued any shares of Stock unless (i) a registration statement under the Securities Act shall at the time of issuance be in effect with respect to the shares or (ii) in the opinion of legal counsel to the Company, the shares may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. YOU ARE CAUTIONED THAT THE SHARES MAY NOT BE ISSUED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company's legal counsel to be necessary to the lawful issuance and sale of any shares of Stock shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to the issuance of any shares of Stock pursuant to this Award, the Company may require you to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. 

7.RESTRICTIVE LEGENDS. The shares of Stock issued pursuant to this Award shall be endorsed with appropriate legends, if any, determined by the Company. 

8.TRANSFER RESTRICTIONS. Prior to the time that shares of Stock have been delivered to you pursuant to this Award, you may not transfer, pledge, sell or otherwise dispose of such shares. For example, you may not use shares that may be issued in respect of your Restricted Stock Units as security for a loan, nor may you transfer, pledge, sell or otherwise dispose of such shares. This restriction on transfer will lapse upon delivery to you of shares in respect of your vested Restricted Stock Units. Your Award is not transferable, except by will or by the laws of descent and distribution, unless otherwise required by applicable law. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party who, in the event of your death, shall thereafter be entitled to receive any distribution of Stock pursuant to this Award Agreement. 

9.AWARD NOT A SERVICE CONTRACT. Your Award is not an employment or service contract, and nothing in your Award shall be deemed to create in any way whatsoever any obligation on your part to continue in the service of the Company or the Participating Company Group, or on the part of the Company or Participating Company Group to continue such service. In addition, nothing in your Award shall obligate the Company or the Participating Company Group, their respective stockholders, boards of directors, Officers or Employees to continue any relationship that you might have as an Employee, Director or Consultant for the Company or the Participating Company Group.

10.UNSECURED OBLIGATION. Your Award is unfunded, and even as to any Restricted Stock Units that vest, you shall be considered an unsecured creditor of the Company with respect to the Company's obligation, if any, to issue Stock pursuant to this Award Agreement. You shall not have voting or any other rights as a stockholder of the Company with respect to the Stock acquired pursuant to this Award Agreement until such Stock is issued to you pursuant to this Award Agreement. Upon such issuance, you will obtain full voting and other rights as a stockholder of the Company with respect to the Stock so issued. Nothing contained in this Award Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between you and the Company or any other person. 

11.WITHHOLDING OBLIGATIONS.  Regardless of any action taken by the Company or the Participating Company Group with respect to any or all income, employment, social insurance, or payroll taxes, payment on account or other tax-related withholdings or payments (“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company and Participating Company Group (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of your Award, the subsequent sale of shares acquired pursuant to this Award, or the receipt of any dividends and (ii) do not commit to structure the terms of the grant or any other aspect of your Award to reduce or eliminate your liability for Tax-Related Items. At the time you vest in this Award, at the time you receive a distribution of shares of Stock pursuant to this Award, or at any other time as reasonably requested by the Company or the Participating Company Group, you shall pay or make adequate arrangements satisfactory to the Participating Company Group to satisfy all withholding obligations of the Participating Company Group. In this regard, at the time you vest in and/or receive a distribution of shares of Stock pursuant to this Award, or at any other time as reasonably requested by the Company or the Participating Company Group, you hereby authorize the withholding of that number of whole vested shares otherwise deliverable to you pursuant to this Award Agreement having a fair market value not in excess of the amount of the Tax-Related Items determined by the applicable minimum statutory rates. In no event may shares of Stock shall be withheld with a value exceeding the minimum amount of tax required to be withheld by law. Finally, you shall pay to the Company or Participating Company Group (as applicable) any amount of the Tax-Related Items that the Company or the Participating Company Group may be required to withhold as a result of your participation in the Plan that cannot be satisfied by the means previously described. You expressly acknowledge and agree that the Company may withhold from any compensation paid to you by the Company in partial or full satisfaction of the withholdings contemplated by this Section 11. The Company and the Participating Company Group shall have no obligation to deliver shares of Stock until you have satisfied the obligations in connection with the Tax-Related Items as described in this section. 

12.NATURE OF AWARD. In accepting your Award, you acknowledge that: 

(a)the Plan is established voluntarily by the Company; it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Award Agreement; 

(b)the grant of your Award is voluntary and occasional and does not create any contractual or other right to receive future grants of awards, or benefits in lieu of awards, even if awards have been granted repeatedly in the past; 

(c)all decisions with respect to future Awards under the Plan, if any, will be at the sole discretion of the Committee; 

(d)your participation in the Plan shall not create a right to further employment with the Company or the Participating Company Group and shall not interfere with any ability of the Company or the Participating Company Group to terminate your employment relationship at any time with or without cause; 

(e)you are voluntarily participating in the Plan; 

(f)this Award is not part of normal or expected compensation or salary for any purpose, including, but not limited to, calculating any severance, resignation, termination, redundancy, end-of-service payments, bonuses, long-service awards, pension or retirement benefits or similar payments; 

(g)in the event that you are not an employee of the Company, your Award will not be interpreted to form an employment contract or relationship with the Company; and furthermore, your Award will not be interpreted to form an employment contract with the other members of the Participating Company Group; 

(h)the future value of the shares of Stock subject to your Award is unknown and cannot be predicted with certainty; and 

(i)no claim or entitlement to compensation or damages arises from termination of your Award or diminution in value of your Award or shares of Stock issued pursuant to your Award resulting from termination of your service with the Company or the Participating Company Group (for any reason whether or not in breach of applicable labor laws), and you irrevocably release the Company and the Participating Company Group from any such claim that may arise. If, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen then, by executing the Grant Notice, you shall be deemed irrevocably to have waived your entitlement to pursue such a claim. 

13.DELIVERY OF DOCUMENTS AND NOTICES. Any document relating to participating in the Plan or Program and/or notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Award Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery, electronic delivery, or upon deposit in the U.S. Post Office or foreign postal service, by registered or certified mail, with postage and fees prepaid, addressed to the other party at the e-mail address, if any, provided for you by the Company or a Participating Company or at such other address as such party may designate in writing from time to time to the other party. 

(a)Description of Electronic Delivery. The Plan and Program documents, which may include but do not necessarily include the Plan prospectus, Grant Notice, Award Agreement and U.S. financial reports of the Company, may be delivered to you electronically. Such means of delivery may include but do not necessarily include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other delivery determined at the Committee's discretion. 

(b)Consent to Electronic Delivery. You acknowledge that you have read Section 13 of this Award Agreement and consent to the electronic delivery of the Plan and Program documents, as described in this Section 13. You acknowledge that you may receive from the Company a paper copy of any documents delivered electronically at no cost if you contact the Company by telephone, through a postal service or electronic mail at equity@adobe.com. You further acknowledge that you will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, you understand that you must provide the Company or any designated third party with a paper copy of any documents delivered electronically if electronic delivery fails. Also, you understand that your consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if you have provided an electronic mail address), at any time by notifying the Company of such revised or revoked consent by telephone, postal service or electronic mail at equity@adobe.com. Finally, you understand that you are not required to consent to electronic delivery. 

14.DATA PRIVACY CONSENT. You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this document by and among the members of the Participating Company Group for the exclusive purpose of implementing, administering and managing your participation in the Plan and Program. 

You understand that the Company and the Participating Company Group hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of Stock or directorships held in the Company, details of all awards or any other entitlement to shares of Stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the purpose of implementing, administering and managing the Plan and Program (“Data”). You understand that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan or Program, that these recipients may be located in your country or elsewhere, and that the recipient's country may have different data privacy laws and protections than your country. You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting your local human resources representative. You authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom you may elect to deposit any shares of Stock pursuant to this Award. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human resources representative. You understand, however, that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative. 

15.HEADINGS. The headings of the Sections in this Award Agreement are inserted for convenience only and shall not be deemed to constitute a part of this Award Agreement or to affect the meaning of this Award Agreement. 

		
	16.
	MISCELLANEOUS. 

(a)The rights and obligations of the Company under your Award shall be transferable to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Company's successors and assigns. 

(b)You agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to carry out the purposes or intent of your Award. 

(c)You acknowledge and agree that you have reviewed your Award in its entirety, have had an opportunity to obtain the advice of counsel prior to executing and accepting your Award and fully understand all provisions of your Award. 

17.GOVERNING PLAN DOCUMENT. Your Award is subject to all the provisions of the Plan, which are hereby made a part of your Award, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of your Award and those of the Plan, the provisions of the Plan shall control. 

18.APPLICABLE LAW AND VENUE.  This Award Agreement shall be governed by the laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed entirely within the State of California.  For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties as evidenced by this Award Agreement, the parties herby submit to and consent to the jurisdiction of the State of California and agree that such litigation shall be conducted only in the courts of Santa Clara County, California, or the federal courts of the United States for the Northern District of California, and no other courts, where this Award Agreement is made and/or performed.

19.APPLICATION OF SECTION 409A.  Absent a proper deferral election, it is intended that all of the benefits and payments provided under this Award satisfy, to the greatest extent possible, the exemptions from the application of Code Section 409A provided under Treasury Regulations Section 1.409A 1(b)(4), and this Award will be construed to the greatest extent possible as consistent with those provisions.  To the extent not so exempt, this Award and the payments and benefits to be provided hereunder are intended to, and will be construed and implemented so as to, comply in all respects with the applicable provisions of Code Section 409A, and any provisions calling for payments on a termination of employment or other service shall be read to mean a “separation from service” (as defined under Treasury Regulation Section 1.409-1(h) without reference to alternative definitions thereunder).  For purposes of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A 2(b)(2)(iii)), any right to receive any installment payments under this Award shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment.  Notwithstanding any other provision of this Award, to the extent that (i) one or more of the payments or benefits received or to be received by you upon “separation from service” pursuant to this Plan would constitute deferred compensation subject to the requirements of Code Section 409A, and (ii) you are a “specified employee” within the meaning of Code Section 409A at the time of separation from service, then to the extent delayed commencement of any portion of such payments or benefits is required in order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments and benefits shall not be provided to you prior to the earliest of (i) the expiration of the six-month period measured from the date of separation from service, (ii) the date of your death or (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation on you.  Upon the first business day following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments and benefits deferred pursuant to this paragraph shall be paid in a lump sum to you, and any remaining payments and benefits due shall be paid as otherwise provided herein.

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