Document:

flxn-ex1015_139.htm

 

		
	
 
	
Exhibit 10.15

 

Flexion Therapeutics

10 Mall Road, Suite 301, Burlington MA  01803

www.flexiontherapeutics.com

info@flexiontherapeutics.com

781.305.7777

 

 

 

 

 

As of January 10, 2019

 

Christina Willwerth

[Address]

 

 

Dear Christina:

 

We are pleased to offer you continued employment with Flexion Therapeutics, Inc. (the "Company"), as Chief Strategy Officer, reporting to Michael Clayman. This letter agreement (the “Agreement”) replaces and supersedes the offer letter between you and the Company dated August 28, 2013.

 

Compensation: Your compensation package includes the following:

 

	
 
	
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Salary. A base salary at the rate of $15,000 on a bi-weekly basis (which equates to $390,000 on an annualized basis and is retroactive to January 1, 2019), less payroll deductions and all required withholdings and payable in accordance with the Company's standard payroll practices as may be modified from time to time. As an exempt salaried employee you are not eligible for overtime pay. You are eligible for performance reviews on a periodic basis, and may be eligible for annual salary increases as long as you remain employed by Flexion.

 

	
 
	
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Bonus. Effective with the annual bonus payable in connection with the 2019 calendar year, a discretionary target performance bonus of forty percent (40%) of your base salary (which bonuses, if any, are calculated annually, and subject to approval by the Board of Directors of the Company (the "Board")). Among other eligibility factors for such a discretionary bonus to be determined by the Board, you must be employed in good standing at the time that bonuses are paid out in order to be eligible for such a bonus.  Bonuses are paid on or before March 15th of the calendar year following the applicable “bonus” year.

 

	
 
	
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Change of Control Severance Benefits. You are eligible for benefits under the Company’s Change in Control Severance Benefit Plan (the “CIC Plan”) and Participation Agreement (the “Participation Agreement”), which is included with this Agreement.  

 

Benefits:  You will be eligible to participate on the same basis as similarly situated employees in the Company's benefit plans in effect from time to time during your employment.  All matters of eligibility for coverage or employee benefits under any benefit plan shall be determined in accordance with the provisions of such plan. For a more detailed understanding of the Company’s benefits and the eligibility requirements, please consult the policies and summary plan descriptions for the programs which will be 

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made available to you.  Please note that the Company reserves the right to change, alter, or terminate any benefit plan in its sole discretion.  

 

At-Will Employment; Certain Conditions of Employment:  Your employment with the Company is “at will,” which means that the Company may modify the terms of employment at any time, and either you or the Company may terminate your employment at any time for any or no reason, with or without prior notice.  Along these same lines, please note that nothing in this Agreement is a promise or guarantee of employment for any specific period of time or for continued employment. 

 

In addition to the above, by signing this Agreement you are representing that you have full authority to accept this position and perform the duties of the position without conflict with any other obligations, and that you are not involved in any situation that might create, or appear to create, a conflict of interest with respect to your loyalty to or duties for the Company. You specifically warrant that you are not subject to an employment agreement or restrictive covenant preventing full performance of your duties to the Company. 

 

You further acknowledge that the Board has determined that you will be performing significant policy-making functions for the Company and shall therefore be regarded as a Section 16 officer of the Company pursuant to Section 16(a) of the Securities Exchange Act (“Section 16 Officer”).  For so long as the Board continues to regard you as a Section 16 Officer, you acknowledge your obligation to make certain periodic filings with the SEC, including but not limited to, the “Initial Statement of Beneficial Ownership of Securities” on Form 3 and the “Statement of Changes of Beneficial Ownership of Securities” on SEC Form 4.  You represent and warrant that you will timely comply with all obligations relating to your role as a Section 16 Officer.  

 

Severance Eligibility: Subject to the other provisions of this Agreement, upon termination of your employment, the Company shall pay your base salary and accrued and unused vacation benefits earned through the date of termination at the rate in effect at the time of termination, less standard deductions and withholdings (the “Accrued Obligations”).  In addition, you will be eligible for the following severance benefits if your employment is terminated under the circumstances described below.

 

If the Company terminates your employment without Cause (as defined below) or if you terminate your employment for Good Reason (as defined below) and provided such termination constitutes a “Separation from Service” (as defined under U.S. Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder) and such termination is not as a result of your death or Disability, then in addition to the Accrued Obligations, you will be eligible to receive the following benefits: 

 (i)         You shall continue to receive your then-current base salary (ignoring any decrease that forms the basis for your termination for Good Reason, if applicable), less standard deductions and withholdings, for fifteen (15) months following the date of termination (the “Severance Period”).

(ii)         If you are eligible for and timely elect to continue your health insurance coverage under the Company’s group health plans under the Consolidated Omnibus Budget Reconciliation Act of 1985 or the state equivalent (“COBRA”), the Company will pay the COBRA premiums for you and your eligible dependents until the earlier of (A) the end of the Severance Period, (B) the expiration of your eligibility for the continuation coverage under COBRA or (C) such time as you become employed by another employer or self-employed through which you are eligible for health insurance (thereafter, you will be responsible for all COBRA premium payments, if any) (such period from your termination date through the earliest of (A) through (C), the “COBRA Payment Period”). For purposes of this Section, references to 

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COBRA premiums shall not include any amounts payable by you under an Internal Revenue Code Section 125 health care reimbursement plan. Notwithstanding the foregoing, if the Company determines, in its sole discretion, that the Company cannot provide the COBRA premiums without potentially incurring financial costs or penalties under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof pay you a taxable cash amount, which payment shall be made regardless of whether you elect health care continuation coverage (the “Health Care Benefit Payment”). The Health Care Benefit Payment shall be paid in monthly installments on the same schedule that the COBRA premiums would otherwise have been paid to you and shall be equal to the amount that the Company would have otherwise paid for COBRA premiums (which amount shall be calculated based on your COBRA premium for the first month of coverage), and shall be paid until the earlier of (i) expiration of the COBRA Payment Period or (ii) the date you voluntarily enroll in a health insurance plan offered by another employer or entity.

(iii)        If your termination occurs within one (1) month prior to or twelve (12) months following a Change in Control, you shall be eligible to receive the payments and benefits as described in the Company’s Change in Control Severance Benefit Plan (the “CIC Plan”) and the Participation Agreement thereunder (the “Participation Agreement”) attached thereto.  If as a result of your termination or resignation you become entitled to severance benefits under the CIC Plan and you are also entitled to severance benefits described under Sections (i) and (ii) of the “Severance Eligibility” section of this Agreement above, the severance benefits under the CIC Plan shall be provided in lieu of the severance benefits you are entitled to under Sections (i) and (ii) of the “Severance Eligibility” section of this Agreement described above.  

Severance benefits under this Agreement are expressly conditioned upon (a) your delivery to the Company of a signed release and waiver of claims in such form as may be specified by the Company (the “Release”) within the applicable deadline set forth therein, and permitting the Release to become effective in accordance with its terms no later than the Release Deadline (as defined in the Section 409A Section below); and (b) your fully complying with your obligations under your Proprietary Information, Inventions, Non-Solicitation, and Non-Competition Agreement dated August 4, 2017 which remains in full force and effect.

For the avoidance of doubt, you shall not be eligible for severance and continued benefits (other than the Accrued Obligations) if you resign without Good Reason, are terminated by the Company for Cause, or are terminated due to your death or Disability.

Definitions: For purposes of this Agreement, the following terms shall have the following meanings set forth in the CIC Plan: Cause, Good Reason, and Change in Control.

Section 409A: Notwithstanding anything in this Agreement to the contrary, the following provisions apply to the extent severance benefits provided herein are subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”). Severance benefits shall not commence until you have a Separation from Service. Each installment of severance benefits is a separate “payment” for purposes of Treasury Regulations Section 1.409A-2(b)(2)(i), and the severance benefits are intended to satisfy the exemptions from application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). However, if such exemptions are not available and you are, upon Separation from Service, a “specified employee” for purposes of Section 409A, then, solely to the extent necessary to avoid adverse personal tax consequences under Section 409A, the timing of the severance benefits payments shall be delayed until the earlier of (i) six (6) months and one day after your Separation from Service, or (ii) your death. You shall receive severance benefits only if you execute and 

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return to the Company the Release within the applicable time period set forth therein and permit such Release to become effective in accordance with its terms, which date may not be later than sixty (60) days following the date of your Separation from Service (such latest permitted date, the “Release Deadline”). If the severance benefits are not covered by one or more exemptions from the application of Section 409A and the Release could become effective in the calendar year following the calendar year in which your Separation from Service occurs, the Release will not be deemed effective any earlier than the Release Deadline. None of the severance benefits will be paid or otherwise delivered prior to the effective date of the Release. Except to the minimum extent that payments must be delayed because you are a “specified employee” or until the effectiveness of the Release, all amounts will be paid as soon as practicable in accordance with the schedule provided herein and in accordance with the Company’s normal payroll practices.  All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred by you during the time periods described in this Agreement. All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year. Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.  The benefits under this Agreement are intended to qualify for an exemption from application of Section 409A or comply with its requirements to the extent necessary to avoid adverse personal tax consequences under Section 409A, and any ambiguities herein shall be interpreted accordingly.

Compliance with Rules, etc.:  You will comply at all times with (i) all Company policies, rules and procedures as they may be established, stated and/or modified from time to time at the Company’s sole discretion, (ii) the terms of that certain Proprietary Information, Inventions, Non-Solicitation, and Non-Competition Agreement that you signed with the Company on August 4, 2017 and which remains in full force and effect, and (iii) all laws and regulations applicable to the Company’s business and your performance of your duties for the Company.  

General:  By signing this Agreement, you acknowledge that the terms described in this letter, together with the Equity Documents and Proprietary Information Agreement attached hereto, set forth the entire offer to you and understanding between you and the Company and supersedes any prior representations or agreements, whether written or oral pertaining to the subject matter herein.  You further acknowledge that there are no terms, conditions, representations, warranties or covenants other than those contained herein. No term or provision of this letter may be amended waived, released, discharged or modified except in writing, signed by you and an authorized officer of the Company, except that the Company may, in its sole discretion, adjust salaries, incentive compensation, stock plans, benefits, job titles, locations, duties, responsibilities, and reporting relationships.

 

We look forward to your continued contributions to the Flexion team.  

 

Sincerely,

/s/ Michael Clayman

Michael Clayman

Chief Executive Officer

 

 

ACCEPTED AND AGREED TO:

 

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Name: /s/ Christina Willwerth Date:  January 14, 2019

Christina Willwerth

       

 

Attachments:Change in Control Severance Benefit Plan Participation Agreement 

5EX-10.42

 EXHIBIT 10.42 

DOMINION ENERGY, INC. 

2019 PERFORMANCE GRANT PLAN 

1.    Purpose. The purpose of the 2019 Performance Grant Plan (the “Plan”) is to set forth
the terms of 2019 Performance Grants (“Performance Grants”) awarded by Dominion Energy, Inc., a Virginia corporation (the “Company”). This Plan contains the performance goals for the awards, the performance criteria, the target
and maximum amounts payable, and other applicable terms and conditions. Capitalized terms not otherwise defined herein shall have the meanings given them in the Company’s 2014 Incentive Compensation Plan, as amended. 

2.    Definitions. 

a.    Beneficiary. Means the individual, individuals, entity, entities or the estate of a
Participant entitled to receive the amounts payable under a Performance Grant, if any, upon the Participant’s death. 

b.    Cause. For purposes of this Plan, the term “Cause” will have the meaning assigned to
that term under a Participant’s Employment Continuity Agreement with the Company, as such Agreement may be amended from time to time. 

c.    Committee. Means the Compensation, Governance and Nominating Committee of the board of
directors of the Company (or any successor board committee designated by the board of directors of the Company to administer this Plan). 

d.    Company Pension Plan. Means the applicable pension plan of the Company or its subsidiaries, if
any, in which the Participant is eligible to participate as of the Date of Grant, which may include either the Dominion Energy Pension Plan or the SCANA Corporation Retirement Plan or any successor thereto, but excluding the cash balance portion of
any such plan. 
 e.    Date of Grant. February 1, 2019. 

f.    Disability or Disabled. Means a “disability” as defined under Treasury Regulation Section 1.409A-3(i)(4). The Committee will determine whether or not a Disability exists and its determination will be conclusive and binding on the Participant. 

g.    Participant. An officer of the Company or a Dominion Company who receives a Performance Grant
on the Date of Grant. 
 h.    Performance Period. The
36-month period beginning on January 1, 2019 and ending on December 31, 2021. 

i.    Retire or Retirement. For purposes of this Plan, the term Retire or Retirement means a
voluntary termination of employment on a date when the Participant is eligible for early or normal retirement benefits under the terms of the Company Pension Plan, or would be eligible if any crediting of deemed additional years of age or service
applicable to the Participant under a supplemental retirement plan of the Company was applied under the Company Pension Plan, as in effect at the time of the determination, or, 

  
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for a Participant who is not eligible to participate in a Company Pension Plan, a voluntary termination of employment on or after age 55, unless (in each case) the Company’s Chief Executive
Officer in his sole discretion (or, if the Participant is the Company’s Chief Executive Officer, the Committee in its sole discretion) determines that the Participant’s retirement is detrimental to the Company. 

j.    Target Amount. The dollar amount designated in the written notice to the Participant
communicating the Performance Grant. 
 3.    Performance Grants. A Participant will receive a written
notice of the amount designated as the Participant’s Target Amount for the Performance Grant payable under the terms of this Plan. The actual payout may be from 0% to 200% of the Target Amount, depending on the achievement of the performance
goals. 
 4.    Performance Achievement and Time of Payment. Upon the completion of the Performance
Period, the Committee will determine the final performance goal achievement of each of the performance criteria described in Section 6. The Company will then calculate the final amount of each Participant’s Performance Grant based on such
performance goal achievement. Except as provided in Sections 7(b) or 8, the Committee will determine the time of payout of the Performance Grants, provided that in no event will payment be made later than March 15, 2022. Performance Grants
shall be paid in cash. 
 5.    Forfeiture. Except as provided in Sections 7 and 8, a Participant’s
right to payout of a Performance Grant will be forfeited if the Participant’s employment with the Company or a Dominion Company terminates for any reason before the end of the Performance Period. 

6.    Performance Goals. Payout of Performance Grants will be based on the performance goal achievement of
the performance criteria described in this Section 6 and further defined in Exhibit A. 

a.    TSR Performance. Total Shareholder Return (TSR) Performance will determine fifty percent (50%)
of the Target Amount (“TSR Percentage”). Relative TSR Performance and Absolute TSR Performance are each defined in Exhibit A. The percentage of the TSR Percentage that will be paid out, if any, is based on the following table: 

 

					
	 Relative
 TSR Performance

Percentile Ranking
	  	Percentage Payout
of TSR Percentage	 
	 85th or above
	  	 	200	% 
	 50th
	  	 	100	% 
	 25th
	  	 	50	% 
	 Below 25th
	  	 	0	% 

 To the extent that the Company’s Relative TSR Performance ranks in a percentile between
the 25th and 85th percentile in the table above, then the TSR Percentage payout will be interpolated between the corresponding TSR Percentage
payout set forth above. No payment of the TSR Percentage will be made if the Relative TSR Performance is below the 25th percentile, except that a payment of 25% of the TSR Percentage will be made
if the Company’s Relative TSR Performance is below the 25th percentile but its Absolute 

  
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TSR Performance is at least 9%. In addition to the foregoing payments, and regardless of the Company’s Relative TSR Performance, either (but not both) of the following may be earned:
(i) an additional payment of 25% of the TSR Percentage will be made if the Company’s Absolute TSR Performance is at least 10% but less than 15%, and/or if the Company’s Price-Earnings Ratio (as defined in Exhibit A) is at or above the
50th percentile and below the top third of the group of companies (inclusive of the Company) used to measure Relative TSR Performance in accordance with Exhibit A hereto, or (ii) an
additional payment of 50% of the TSR Percentage will be made if the Company’s Absolute TSR Performance is at least 15%, and/or if the Company’s Price-Earnings Ratio is at or above the top third of the group of companies (inclusive of the
Company) used to measure Relative TSR Performance in accordance with Exhibit A hereto (in either case, the “Performance Adder”). The Committee may reduce or eliminate payment of the Performance Adder in its sole discretion. 

The aggregate payments under this Section 6(a) may not exceed 250% of the TSR Percentage. In addition, the overall
percentage payment under the entire Performance Grant may not exceed 200% of the Target Amount. 

b.    ROIC Performance. Return on Invested Capital Performance (“ROIC Performance”) will
determine fifty percent (50%) of the Target Amount (“ROIC Percentage”). ROIC Performance is defined in Exhibit A. The percentage of the ROIC Percentage that will be paid out, if any, is based on the following table: 

 

					
	 ROIC Performance
	  	Percentage Payout
of ROIC Percentage	 
	 7.41% and above
	  	 	200	% 
	 7.13%
	  	 	100	% 
	 6.81%
	  	 	50	% 
	 Below 6.81%
	  	 	0	% 

  

	 	•	 	 To the extent that the Company’s ROIC Performance is greater than 6.81% and less than 7.13%, the ROIC
Percentage payout will be interpolated between the applicable Percentage Payout of ROIC Percentage range set forth above. 

  

	 	•	 	 To the extent that the Company’s ROIC Performance is greater than 7.13% and less than 7.41%, the ROIC
Percentage payout will be interpolated between the applicable Percentage Payout of ROIC Percentage range set forth above. 

7.     Retirement, Involuntary Termination without Cause, Death or Disability. 

a.    Retirement or Involuntary Termination without Cause. Except as provided in Section 8, if
a Participant Retires during the Performance Period or if a Participant’s employment is involuntarily terminated by the Company or a Dominion Company without Cause during the Performance Period, and in either case the Participant would have
been eligible for a payment if the Participant had remained employed until the end of the Performance Period, the Participant will receive a pro-rated payout of the Participant’s Performance Grant equal
to the payment the Participant would have received had the Participant remained employed until the end of the Performance Period multiplied by a fraction, the numerator of which is the number of whole months from February 1, 2019 to the first
day of the month coinciding with or immediately following the date of the Participant’s retirement or termination of employment, and the denominator of which is 

  
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thirty-five (35). Payment will be made after the end of the Performance Period at the time provided in Section 4 based on the performance goal achievement approved by the Committee. If the
Participant Retires, however, no payment will be made if the Company’s Chief Executive Officer in his sole discretion (or, if the Participant is the Company’s Chief Executive Officer, the Committee in its sole discretion) determines that
the Participant’s Retirement is detrimental to the Company. 
 b.    Death or Disability. If,
while employed by the Company or a Dominion Company, a Participant dies or becomes Disabled during the Performance Period, the Participant or, in the event of the Participant’s death, the Participant’s Beneficiary will receive a lump sum
cash payment equal to the product of (i) and (ii) where: 
  

	 	(i)	 is the amount that would be paid based on the predicted performance used for determining the compensation cost
recognized by the Company for the Participant’s Performance Grant for the latest financial statement filed with the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q immediately prior to the event; and 

  

	 	(ii)	 is a fraction, the numerator of which is the number of whole months from February 1, 2019 to the first day
of the calendar month coinciding with or immediately following the date of the Participant’s death or Disability, and the denominator of which is thirty-five (35). 

Payment under this Section 7(b) will be made as soon as administratively feasible (and in any event within sixty (60) days)
after the date of the Participant’s death or Disability, and the Participant shall not have the right to any further payment under this Agreement. In the event of the Participant’s death, payment will be made to the Participant’s
designated Beneficiary. 
 8.    Qualifying Change of Control. Upon a Qualifying Change of Control prior
to the end of the Performance Period, provided the Participant has remained continuously employed with the Company or a Dominion Company from the Date of Grant to the date of the Qualifying Change of Control, the Participant will receive a lump sum
cash payment equal to the greater of (i) the Target Amount or (ii) the total payout that would be made at the end of the Performance Period if the predicted performance used for determining the compensation cost recognized by the Company
for the Participant’s Performance Grant for the latest financial statement filed with the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q
immediately prior to the Qualifying Change of Control was the actual performance for the Performance Period (in either case, the “COC Payout Amount”). Payment will be made on or as soon as administratively feasible following the Qualifying
Change of Control date and in no event later than sixty (60) days following the Qualifying Change of Control date. If a Qualifying Change of Control occurs prior to the end of the Performance Period and after a Participant has Retired or been
involuntarily terminated without Cause pursuant to Section 7(a) above, then the Participant will receive a pro-rated payout of the Participant’s Performance Grant, equal to the COC Payout Amount
multiplied by the fraction set forth in Section 7(a) above, with payment occurring in a cash lump sum on or as soon as administratively feasible (but in any event within sixty (60) days) after the Qualifying Change of Control date.
Following any payment under this Section 8, the Participant shall not have the right to any further payment under this Agreement. 

  
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 9.    Termination for Cause. Notwithstanding any provision
of this Plan to the contrary, if the Participant’s employment with the Company or a Dominion Company is terminated for Cause (as defined by the Employment Continuity Agreement between the Participant and the Company), the Participant will
forfeit all rights to his or her Performance Grant. 
 10.    Clawback of Award Payment. 

a.    Restatement of Financial Statements. If the Company’s financial statements are required
to be restated at any time within a two (2) year period following the end of the Performance Period as a result of fraud or intentional misconduct, the Committee may, in its discretion, based on the facts and circumstances surrounding the
restatement, direct the Company to recover all or a portion of the Performance Grant payout from the Participant if the Participant’s conduct directly caused or partially caused the need for the restatement. 

b.    Fraudulent or Intentional Misconduct. If the Company determines that the Participant has
engaged in fraudulent or intentional misconduct related to or materially affecting the Company’s business operations or the Participant’s duties at the Company, the Committee may, in its discretion, based on the facts and circumstances
surrounding the misconduct, direct the Company to withhold payment, or if payment has been made, to recover all or a portion of the Performance Grant payout from the Participant. 

c.    Recovery of Payout. The Company reserves the right to recover a Performance Grant payout
pursuant to this Section 10 by (i) seeking repayment from the Participant; (ii) reducing the amount that would otherwise be payable to the Participant under another Company benefit plan or compensation program to the extent permitted
by applicable law; (iii) withholding future annual and long-term incentive awards or salary increases; or (iv) taking any combination of these actions. 

d.    No Limitation on Remedies. The Company’s right to recover a Performance Grant payout
pursuant to this Section 10 shall be in addition to, and not in lieu of, actions the Company may take to remedy or discipline a Participant’s misconduct including, but not limited to, termination of employment or initiation of a legal
action for breach of fiduciary duty. 
 e.    Subject to Future Rulemaking. The Performance Grant
payout is subject to any claw back policies the Company may adopt in order to conform to the requirements of Section 954 of the Dodd-Frank Wall Street Reform Act and Consumer Protection Act and resulting rules issued by the Securities and
Exchange Commission or national securities exchanges thereunder and that the Company determines should apply to this Performance Grant Plan. 

11.    Miscellaneous. 

a.    Nontransferability. Except as provided in Section 7(b), a Performance Grant is not
transferable and is subject to a substantial risk of forfeiture until the end of the Performance Period. 

  
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 b.    No Right to Continued Employment. A
Performance Grant does not confer upon a Participant any right with respect to continuance of employment by the Company, nor will it interfere in any way with the right of the Company to terminate a Participant’s employment at any time. 

c.    Tax Withholding. The Company will withhold Applicable Withholding Taxes from the payout of
Performance Grants. 
 d.    Performance Goal Adjustments. The Committee may at any time, in its
sole discretion, remove or revise any performance goals or other performance objectives for this 2019 Performance Grant Plan. The Committee retains the authority to exercise negative discretion to reduce payments under this Plan as it deems
appropriate. 
 e.    Governing Law. This Plan shall be governed by the laws of the Commonwealth
of Virginia, without regard to its choice of law provisions. 
 f.    Binding Effect. This Plan
will be binding upon and inure to the benefit of the legatees, distributes, and personal representatives of Participants and any successors of the Company. 

g.    Section 409A. This Plan and the Performance Grants hereunder are intended to comply with
Section 409A of the Internal Revenue Code of 1986, as amended (“Code Section 409A”), and shall be interpreted to the maximum extent possible in accordance with such intent. To the extent necessary to comply with Code
Section 409A, no payment will be made earlier than six months after a Participant’s termination of employment other than for death if the Performance Grant is subject to Code Section 409A and the Participant is a “specified
employee” (within the meaning of Code Section 409A(a)(2)(B)(i)). 

h.    Administration. The Plan shall be administered by the Committee, which shall have all of the
applicable powers and authority set forth in Section 19 of the Company’s 2014 Incentive Compensation Plan with respect to this Plan and the Performance Grants awarded hereunder, the terms of which are incorporated by reference herein. 

i.    Termination and Amendment. The Committee may amend the Plan and Performance Grants awarded
hereunder, provided that, except as otherwise provided herein, no termination or amendment of the Plan or any Performance Grants under the Plan shall materially adversely affect a Participant’s rights with respect to any outstanding Performance
Grant without that Participant’s consent. Notwithstanding the foregoing, the Committee may amend the Plan and Performance Grants awarded hereunder without having to obtain the consent of any affected Participant as it deems necessary or
appropriate to ensure compliance with applicable laws or to cause Performance Grants to avoid adverse tax consequences under the Code and regulations thereunder. 

j.    Notice. All notices and other communications required or permitted to be given under this Plan
shall be in writing and shall be deemed to have been duly given if delivered personally or mailed first class, postage prepaid, as follows: (a) if to the Company—at the principal business address of the Company to the attention of the

  
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Corporate Secretary of the Company; and (b) if to any Participant—at the last address of the Participant known to the sender at the time the notice or other communication is sent. 

k.    Interpretation. Unless otherwise specifically provided under the terms of any such plan or
program, settlements of awards received by participants under the Plan shall not be deemed a part of a participant’s regular, recurring compensation for purposes of calculating payments or benefits from any benefit plan or severance program of
the Company or a Dominion Company or any severance pay law of any country. Nothing contained in the Plan will be deemed in any way to limit or restrict the Company or any Dominion Company from making any award or payment to any person under any
other plan, arrangement or understanding, whether now existing or hereafter in effect. 

l.    Beneficiary Matters. A Participant may designate a Beneficiary to receive benefits due under a
Performance Grant, if any, upon the Participant’s death. Designation of a Beneficiary shall be made by execution of a form approved or accepted by the Committee. In the absence of a valid Beneficiary designation, a Participant’s surviving
spouse, if any, and if none, the Participant’s estate, shall be the Beneficiary. A Participant may change a prior Beneficiary designation by a subsequent execution of a new Beneficiary designation form. The change in Beneficiary will be
effective upon receipt by the Committee. Any payment made to a Beneficiary under this Plan in good faith shall fully discharge the Company and the Dominion Companies from all further obligations with respect to that payment. If the Committee has any
doubt as to the proper Beneficiary to receive a payment under this Plan, the Committee shall have the right to withhold such payment until the matter is fully adjudicated. In making any payment to or for the benefit of any minor or an incompetent
Participant or Beneficiary, the administrator, in its sole and absolute discretion, may make a distribution to a legal or natural guardian or other relative of a minor or court-appointed representative of such incompetent. Alternatively, it may make
a payment to any adult with whom the minor or incompetent temporarily or permanently resides. The receipt by a guardian, representative, relative or other person shall be a complete discharge of the Company and the Dominion Companies’
obligations under the Plan. The Company shall have no responsibility to see to the proper application of any payment so made. The Plan shall be binding on all successors and assigns of a Participant, including, without limitation, the estate of such
participant and the executor, administrator or trustee of such estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors. 

m.    Unfunded Plan. Unless otherwise determined by the Committee, the Plan shall be unfunded and
shall not create (or be construed to create) a trust or a separate fund or funds. The Plan shall not establish any fiduciary relationship between the Company and any Participant or other person. To the extent any person holds any rights by virtue of
a Performance Grant granted under the Plan, such rights (unless otherwise determined by the Committee) shall be no greater than the rights of an unsecured general creditor of the Company. 

  
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 EXHIBIT A 

DOMINION ENERGY, INC. 

2019 PERFORMANCE GRANT PLAN 

PERFORMANCE CRITERIA 

Total Shareholder Return 
 Relative TSR
Performance will be measured based on where the Company’s total shareholder return during the Performance Period ranks in relation to the total shareholder returns of the companies that are members of the Company’s compensation peer group
as of the Date of Grant as set forth below (the “Comparison Companies”): 
  

							
		 	Ameren Corporation	  	Exelon Corporation	  	
		 	American Electric Power Company	  	FirstEnergy Corporation	  	
		 	CenterPoint Energy	  	NextEra Energy	  	
		 	Consolidated Edison Company	  	PG&E Corporation	  	
		 	DTE Energy Company	  	PPL Corporation	  	
		 	Duke Energy Corporation	  	Public Service Enterprise Group	  	
		 	Edison International	  	Southern Company	  	
		 	Entergy Corporation	  	Xcel Energy	  	
		 	 Eversource Energy
	  		  	

 The Comparison Companies shall be adjusted during the Performance Period as follows: 

 

	 	(i)	 In the event of a merger, acquisition or business combination transaction of a Comparison Company with or by
another Comparison Company, effective upon the public announcement of the transaction, the surviving entity shall remain a Comparison Company and the non-surviving entity shall cease to be a Comparison Company
(provided that, if the proposed transaction is subsequently terminated before the Relative TSR Performance is calculated, then the non-surviving company shall be retroactively reinstated as a Comparison
Company); 

  

	 	(ii)	 If it is publicly announced that a Comparison Company will be acquired by another company that is not a
Comparison Company, or in the event a “going private transaction” is publicly announced where the Comparison Company will not be the surviving entity or will otherwise no longer be publicly traded, the company shall cease to be a
Comparison Company as of the date such announcement is made (provided that, if the proposed transaction is subsequently terminated before the Relative TSR Performance is calculated, then the company shall be retroactively reinstated as a Comparison
Company); 

  

	 	(iii)	 In the event of a spinoff, divestiture, or sale of a substantial portion of assets of a Comparison Company, the
Comparison Company shall no longer be a Comparison Company if the company’s reported revenue (in its GAAP accounts) for the four most recently reported quarters ending on or before the last day of the Performance Period falls below 40% of
Dominion Energy’s reported revenue for the last year of the Performance Period; and 

  
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	 	(iv)	 In the event of a bankruptcy of a Comparison Company, such company shall remain a Comparison Company and its
stock price will continue to be tracked for purposes of Relative TSR Performance. If the company liquidates, it will remain a Comparison Company and its stock price will be reduced to zero for the remaining Performance Period. 

Total shareholder return consists of the difference between the value of a share of common stock at the beginning and end of the Performance Period, plus the
value of gross dividends paid as if reinvested in stock and other appropriate adjustments for such events as stock splits. For purposes of TSR Performance, the total shareholder return of the Company and the Comparison Companies will be calculated
using Bloomberg1. As soon as practicable after the completion of the Performance Period, the total shareholder returns of the Comparison Companies will be calculated and ranked from highest to
lowest by the Committee. The Company’s total shareholder return will then be ranked in terms of which percentile it would have placed in among the Comparison Companies. 

Absolute TSR Performance will be the Company’s total shareholder return on an average annual basis for the Performance Period. 

Price-Earnings Ratio 
 Price-Earnings
Ratio performance will be measured based on where the Company’s Price-Earnings Ratio ranks in relation to the Price-Earnings Ratios of the Comparison Companies. For purposes of Price-Earnings Ratio performance, the relative Price-Earnings Ratio
performance of the Company and the Comparison Companies will be determined using such method as the Committee shall determine. As soon as practicable after the completion of the Performance Period, the Price-Earnings Ratios of the Comparison
Companies will be determined and ranked from highest to lowest by the Committee, using three methods: 
  

	 	•	 	 First, using closing stock prices on the final day of the Performance Period divided by the operating earnings
per share (“Operating EPS”) for the Company and the Comparison Companies over the most recently completed four-quarter period. If required based on the availability of data, the four quarters ended September 302 of the final year of the Performance Period can be utilized for estimating relative Price-Earnings Ratio performance. 

 

	 	•	 	 Second, using closing stock prices on the final day of the Performance Period divided by the estimated Operating
EPS for the Company and the Comparison Companies for the final year of the Performance Period3. 

  

	 	•	 	 Third, using closing stock prices on the final day of the Performance Period divided by the estimated Operating
EPS for the Company and the Comparison Companies for the following calendar year4. 

  

 

	1 	 Specifically, using the function “CUST-TRR-RETURN-PER” or successor functions as defined by Bloomberg. 

	2 	 The source of quarterly operating earnings per share shall the companies’ quarterly earnings release
statements. 

	3 	 The forward-looking P/E multiple shall be sourced from Bloomberg. Specifically, the closing stock price using
the function “PX_LAST”, and the EPS using the function “EEPS_CURR_YR”, or successor functions as defined by Bloomberg. 

	4 	 The forward-looking P/E multiple shall be sourced from Bloomberg. Specifically, the closing stock price using
the function “PX_LAST”, and the EPS using the function “EEPS_NXT_YR” or successor functions as defined by Bloomberg. 

  
 ii 

 For each method, the Company’s Price-Earnings Ratio will then be ranked in terms of which percentile it
placed in among the Comparison Companies for the Committee’s determination. The Committee will, in its sole discretion, select which of the three methods to use to calculate final payouts under the Performance Grants. 

Return on Invested Capital 
 Return on
Invested Capital (ROIC) 
 The following terms are used to calculate ROIC for purposes of the 2019 Performance Grant: 

ROIC means Total Return divided by Average Invested Capital. Performance will be calculated for the three successive fiscal years within the
Performance Period, added together and then divided by three to arrive at an annual average ROIC for the Performance Period. 
 Total Return means
Operating Earnings plus After-tax Interest & Related Charges, determined for each of the three successive fiscal years within the Performance Period. 

Operating Earnings means operating earnings as disclosed on the Company’s earnings report furnished on Form
8-K for the applicable fiscal year. 
 Average Invested Capital means the Average Balances for
Long & Short-term Debt plus Preferred Equity plus Common Shareholders’ Equity. The Average Balances for a year are calculated by performing the calculation at the end of each quarter during the fiscal year (including in the fiscal
year’s opening balance sheet) and then averaging those amounts over five quarters. Long and short-term debt shall be as reported in the Company’s consolidated balance sheet prepared under GAAP, net of cash and cash equivalents. 

Average Invested Capital will be calculated by excluding (i) accumulated other comprehensive income/(loss) from Common Shareholders’ Equity
(as shown on the Company’s financial statements); (ii) impacts from changes in accounting principles that were not prescribed as of the Date of Grant; and (iii) the effects of incremental impacts from
non-operating gains or losses during the Performance Period, as disclosed on the Company’s earnings report furnished on Form 8-K, that were not included in the
projection on which the original ROIC calculation was based at the time of the grant.

  
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