Document:

Document

ARLO TECHNOLOGIES, INC.

2018 EQUITY INCENTIVE PLAN

NOTICE OF GRANT OF 
SERVICE AND PERFORMANCE-BASED RESTRICTED STOCK UNITS
Unless otherwise defined herein, the terms defined in the Arlo Technologies, Inc. (the “Company”) 2018 Equity Incentive Plan (the “Plan”) will have the same defined meanings in this Notice of Grant of Service and Performance-Based Restricted Stock Units (the “Notice of Grant”) and in the Terms and Conditions of the Restricted Stock Units, attached hereto as Exhibit A (together, the “Agreement”).
1.  General:  You (“Participant”) have been granted the following award (“Award”) of Restricted Stock Units (sometimes referred to as “RSUs”), subject to the terms and conditions of the Plan, this Notice of Grant and the Agreement, as follows:
						
	Date of Grant	July 28, 2021
	Vesting Commencement Date	Date of Grant
	Number of RSUs Subject to Award
Performance Period End Date
	757,600
July 28, 2025

		

2. General Vesting Schedule: In order for any Restricted Stock Units subject to the Award to vest and be earned, each of (i) the service vesting requirement specified in Section 2(a) below (the “Service Vesting Requirement”) and (ii) the Company performance goals specified in Section 2(b) below (the “Performance Goals”) must be satisfied. Provided Participant accepts the Restricted Stock Units, the Restricted Stock Units will vest as provided herein.
(a)  General Service Vesting Requirement.  The Service Vesting Requirement will be satisfied in installments as follows: 1/16th of the Award will have the Service Vesting Requirement satisfied following the completion of each three-month period of continuous service following the Vesting Commencement Date (the “Vesting Date”) such that the Service Vesting Requirement is fully satisfied on the day prior to the fourth anniversary of the Vesting Commencement Date (i.e., the Performance Period End Date), in each case subject to the Participant’s continued status as a Service Provider through such Vesting Date (the “Service Vesting Schedule”). For the avoidance of doubt, once Participant’s continued status as a Service Provider ends, no additional Restricted Stock Units will be deemed to have the Service Vesting Requirement satisfied with respect to such Restricted Stock Units. However, and notwithstanding the foregoing, the Service Vesting Requirement (but not the Performance Goals) may be satisfied on an accelerated basis pursuant to Section 15(d)(ii) or pursuant to the terms of the Participant’s Change in Control and Severance Agreement with the Company.
(b)  Performance Goals.  The vested number of Restricted Stock Units subject to the Award, subject to satisfaction of the Service Vesting Requirement, will be determined by reference to the Company’s Stock Price (as defined below), as determined by the Board, as indicated in the chart below. To the extent a Stock Price is not achieved on or prior to the Performance Period End Date, any then-unvested Restricted Stock Units shall expire and be of no further force and effect, effective as of the date that is 45 calendar days following the Performance Period End Date (such date, the “Expiration Date”).
     

									
		Stock Price Per Share1	RSUs Vesting
	Tranche 1	$7.57	151,520
	Tranche 2	$8.69	151,520
	Tranche 3	$9.97	151,520
	Tranche 4	$11.44	151,520
	Tranche 5	$13.20	151,520

“Stock Price Per Share” means the average of the daily closing prices per share of the Company’s common stock, as reported on the New York Stock Exchange, for any 30 consecutive trading days prior to the Performance Period End Date, as confirmed by the Company’s finance team for purposes of the Award, which such determination shall be binding on the Participant and which such determination must be made in any event on or prior to the Expiration Date. 
Notwithstanding the foregoing, if a Change in Control (as defined below) occurs prior to the Performance Period End Date, achievement of the Performance Goals will instead be determined by reference to the value per share payable to the Company’s stockholders in connection with such Change in Control.  In determining such attainment of the Performance Goals and the number of RSUs eligible to vest, the Board may apply rounding, in its discretion, for administrative convenience.  In all cases, the Board’s determination of the number of RSUs eligible to vest is final and binding on Participant.  Any RSUs for which the Performance Goals have not been satisfied as of immediately prior to the closing of such Change in Control shall be cancelled and of no further force or effect, notwithstanding anything in the Plan or in the Participant’s Change in Control and Severance Agreement with the Company to the contrary.
“Change in Control” shall have the meaning assigned to such term in the Plan that is also a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company as described in Code Section 409A(a)(2)(A)(iv).
3.  General
(a) With respect to the Award, the terms of the Award as set forth in this Agreement supersede any individually negotiated agreement Participant may have with Company or an Affiliate (including but not limited to Participant’s Change in Control and Severance Agreement) and any generally applicable severance or change-in-control plan, policy, or practice, whether written or unwritten, of the Company or an Affiliate that would otherwise apply to the Award (“Separate Agreement”).  As a condition to accepting this Award, Participant acknowledges that this Award is not subject to the terms of any Separate Agreement and is governed solely by this Agreement and the Plan.
(b)  If Participant does not accept the Restricted Stock Units prior to the date that is sixty days following the Date of Grant, all Restricted Stock Units may be forfeited in their entirety, in the Administrator’s sole discretion, and neither Participant nor the Company (or its Affiliates) shall have any rights or obligations under the Plan, the Agreement or this Notice of Grant or any right to any equivalent amounts or payments in lieu of the Restricted Stock Units.

1 Stock Price Per Share shall be automatically adjusted to reflect any stock splits, reverse splits or similar changes in capital structure.
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(c)  By Participant’s acceptance of the Restricted Stock Units and/or the underlying shares of common stock of the Company (“Shares”) corresponding thereto, Participant and the Company agree that this Award is granted under and governed by the terms and conditions of the Plan and the Agreement, all of which are made a part of this document.

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	Accepted by:	
		
	GRANTEE	ARLO TECHNOLOGIES, INC.
		
	 /s/ Matthew McRae                           	 /s/ Brian Busse                                     
	Signature	By
		
	 Matthew McRae                                	 General Counsel                                  
	Print Name	Its
		
	 9/9/2021                                             	
	Date Accepted	Address:
2200 Faraday Ave., Suite #150
Carlsbad, California 92008

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EXHIBIT A

TERMS AND CONDITIONS OF THE RESTRICTED STOCK UNITS
1.Grant.  The Company hereby grants to Participant named in the Notice of Grant the number of Restricted Stock Units set forth in the Notice of Grant, subject to these Terms and Conditions of the Restricted Stock Units (together, the “Agreement”), the Notice of Grant, and the Plan, which are incorporated herein by reference.  Subject to Section 20 of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of the Plan will prevail.
2.Company’s Obligation to Pay.
(a)General.  Subject to Section 2(c), each Restricted Stock Unit represents the right to receive a Share on the date it vests, including to the limited extent permitted under Section 7(b) for satisfying any withholding obligation for income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to Participant’s participation in the Plan and legally applicable to Participant (“Tax-Related Items”).  Unless and until the Restricted Stock Units will have vested, Participant will have no right to payment of any such Restricted Stock Units or the underlying Shares.  Prior to actual payment of any vested Restricted Stock Units, such Restricted Stock Unit will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.
(b)Timing of Settlement - General.  To the extent the Restricted Stock Units are exempt from application of Section 409A, any Restricted Stock Units that vest in accordance with Sections 3 or 4 will be settled (or in the event of Participant’s death, to their estate) in whole Shares, subject to Participant satisfying any applicable Tax-Related Items withholding obligations as set forth in Section 7.  Subject to the provisions of Section 2(c), such vested Restricted Stock Units will be settled in Shares as soon as practicable after vesting, but in each such case by the fifteenth (15th) day of the third (3rd) month of the calendar year following the calendar year in which the Restricted Stock Units vest.
(c)Timing of Settlement - Section 409A (for U.S. Taxpayers only).
(i)Settlement if Deferred Compensation under Section 409A.  To the extent and if the Restricted Stock Units are considered to be “deferred compensation” within the meaning of Section 409A (as defined in Section 2(c)(iii) hereof), then except as necessary to satisfy any Tax-Related Items withholding obligations as set forth in Section 7, the vested Restricted Stock Units will be settled as soon as practicable and in all cases within the sixty (60) day period following the earliest of: 
(A) the dates provided in the Service Vesting Schedule, or
(B) Participant’s death, Disability, or “separation from service,” in each case within the meaning of Section 409A and in each case where such permitted Section 409A payment event occurs after the earlier of: (1) a Change in Control that is also a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company as described in Code Section 409A(a)(2)(A)(iv), or (2) April 30, 2021.
Additionally, the Company reserves the right to elect to provide for earlier settlement of vested Restricted Stock Units in connection with a Change in Control that is also a change in the 
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ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company as described in Code Section 409A(a)(2)(A)(iv) pursuant to the exemption permitted under Treasury Regulation 1.409A-3(j)(ix)(B).
(ii)Specified Employee Under Section 409A.  Notwithstanding anything in the Plan or this Agreement to the contrary, if (A) the Restricted Stock Units are considered deferred compensation subject to Section 409A, (B) the Restricted Stock Units will be settled upon a “separation from service” within the meaning of Section 409A, as determined by the Company in accordance with Section 409A, and (C) Participant is a “specified employee” within the meaning of Section 409A at the time of such separation from service, then the settlement of such Restricted Stock Units will not be made until the earlier of (x) the date six (6) months and one (1) day following the date of Participant’s separation from service and (y) Participant’s death, to the extent necessary to avoid a prohibited acceleration under Section 409A.
(iii)Section 409A.  For purposes of this Agreement, “Section 409A” means Section 409A of the Code and the final Treasury Regulations and U.S. Internal Revenue Service guidance thereunder, as each may be amended from time to time.  It is the intent of this Agreement to comply with the requirements of Section 409A so that none of the Restricted Stock Units provided under this Agreement or Shares payable thereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply.  The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify this Agreement as may be necessary to ensure that all vesting or payouts provided under this Agreement are made in a manner that complies with Section 409A or to mitigate any additional tax, interest and/or penalties or other adverse tax consequences that may apply under Section 409A if compliance is not practical; provided, however, that nothing in this Section 2(c)(iii) creates an obligation on the part of the Company to modify the terms of this Agreement or the Plan, and the Company makes no representation that the terms of Restricted Stock Units will comply with Section 409A or that the Restricted Stock Units will not be subject to taxes, interest and penalties or other adverse tax consequences under Section 409A.  In no event whatsoever shall the Company or any of its Affiliates be liable to any party for any additional tax, interest or penalties that may be imposed on Participant or any other person by Section 409A or any damages for failing to comply with Section 409A.
3.Vesting Schedule.  Subject to Section 4 and the terms of the Plan, the Restricted Stock Units awarded by this Agreement will vest only in accordance with the provisions set forth in the Notice of Grant.  
4.Administrator’s Discretion.  The Administrator, in its discretion, may accelerate the vesting of some or all of the unvested Restricted Stock Units at any time prior to the Expiration Date, subject to the terms of the Plan.  If so accelerated, such Restricted Stock Units shall be considered as having vested as of the date specified by the Administrator.
5.Termination as Service Provider.  
(a)If Participant ceases to be a Service Provider during the Performance Period for any reason during other than as described in Section 3 of the Notice of Grant, any unvested Restricted Stock Units shall be forfeited immediately upon termination at no cost to the Company and Participant will have no further rights to Shares or otherwise under this Agreement.
(b)For purposes of the Restricted Stock Units, Participant will cease to be a Service Provider as of the date Participant is no longer actively employed by or providing services to the 
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Company or one of its Affiliates (regardless of the reason for such termination and whether or not later to be found invalid or in breach of applicable employment laws in the jurisdiction where Participant is a Service Provider or the terms of Participant’s service agreement, if any); and unless otherwise expressly provided in this Agreement or determined by the Administrator, Participant’s right to vest in the Restricted Stock Units under the Plan, if any, will terminate as of such date and will not be extended by any notice period (e.g., Participant’s period of service would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where Participant is a Service Provider or Participant’s employment or service agreement, if any); the Administrator shall have the exclusive discretion to determine when Participant is no longer actively employed or providing services for purposes of the Restricted Stock Unit grant (including whether Participant may still be considered to be providing services while on a leave of absence).
6.Settlement after Death.  Any distribution or delivery to be made to Participant under this Agreement will, if Participant is then deceased, be made to Participant’s designated beneficiary, or if no beneficiary survives Participant, the administrator or executor of Participant’s estate.  Any such transferee must furnish the Company with (a) written notice of status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.
Notwithstanding the foregoing, the Administrator may restrict Participants outside the United States from designating a beneficiary who shall be entitled to receive the amounts payable with respect to the Restricted Stock Units, if any, due under the Plan upon Participant’s death.
7.Tax Withholding.
(a)Responsibility for Taxes.  Participant acknowledges that, regardless of any action taken by the Company or, if different, Participant’s employer (the “Employer”), the ultimate liability for all Tax-Related Items is and remains Participant’s responsibility and may exceed the amount, if any, actually withheld by the Company or the Employer.  Participant further acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Restricted Stock Units, including, but not limited to, the grant, vesting or settlement of the Restricted Stock Units, the subsequent sale of Shares acquired pursuant to such settlement and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Restricted Stock Units to reduce or eliminate Participant’s liability for Tax-Related Items or achieve any particular tax result.  Further, if Participant is subject to Tax-Related Items in more than one jurisdiction between the Date of Grant and the date of any relevant taxable or tax withholding event, as applicable, Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
Prior to any relevant taxable or tax withholding event, as applicable, Participant agrees to make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items.  In this regard, Participant authorizes the Company or its agents, at their discretion, to satisfy any withholding obligations with regard to all Tax-Related Items by one or a combination of the following:
(i)withholding from Participant’s wages or other cash compensation payable to Participant by the Company or the Employer;
(ii)requiring Participant to tender a cash payment to the Company or the Employer;
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(iii)withholding from proceeds of the sale of Shares to be issued upon vesting of the Restricted Stock Units either through a voluntary sale or through a mandatory sale arranged by the Company (on Participant’s behalf pursuant to this authorization without further consent); 
(iv)withholding Shares from those Shares to be issued or otherwise issuable to Participant upon vesting of the Restricted Stock Units; and
(v)any other method acceptable to the Company and permitted under the Plan and Applicable Laws.
Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding rates or other applicable withholding rates, including up to the maximum applicable rate for Participant’s jurisdiction(s), in which case Participant may receive a refund of any over-withheld amount in cash and will have no entitlement to the Share equivalent.  If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, Participant is deemed to have been issued the full number of Shares subject to the vested Restricted Stock Units, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items.
The Company may refuse to issue or deliver the shares or the proceeds of the sale of Shares if Participant fails to comply with Participant’s obligations in connection with the Tax-Related Items.
(b)Tax Withholding Arising Prior to Settlement.  A portion of the Restricted Stock Units automatically and with no exercise of discretion by the Committee shall fully vest in an amount necessary to satisfy any Tax-Related Items withholding obligation that may arise prior to settlement of the Shares underlying the Restricted Stock Units (for example, upon Participant becoming Retirement eligible prior to vesting date and payment).  Accordingly, the Company will have the right (but not the obligation) to withhold from Participant those Shares or to sell shares on Participant’s behalf that vest pursuant to the preceding sentence to satisfy any Tax-Related Items withholding obligation.  Further, if Participant is a U.S. taxpayer and a portion of the Shares subject to the Restricted Stock Units will be withheld to satisfy any Tax-Related Items withholding liability prior to settlement of Restricted Stock Units with respect to any portion of the Restricted Stock Unit considered deferred compensation subject to Section 409A, then the number of Shares withheld or sold on Participant’s behalf shall not exceed an amount equal in value to the Tax-Related Items withholding liability.
8.Rights as Stockholder.  Neither Participant nor any person claiming under or through Participant will have any of the rights or privileges of a stockholder of the Company in respect of any Shares deliverable hereunder unless and until such Shares will have been deposited into Participant’s brokerage account with the Company’s designated broker.  After such Shares are deposited, Participant will have all the rights of a stockholder of the Company with respect to voting such Shares and receipt of dividends and distributions on such Shares.
9.No Guarantee of Continued Service.  PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF THE RESTRICTED STOCK UNITS PURSUANT TO THE BASE VESTING SCHEDULE IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY OR THE EMPLOYER AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE RESTRICTED STOCK UNITS OR ACQUIRING SHARES HEREUNDER.  PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREUNDER AND SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR 
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IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE RIGHT OF THE COMPANY OR THE EMPLOYER TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.
10.Nature of Grant.  In accepting the Restricted Stock Units, Participant acknowledges, understands and agrees 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, to the extent permitted by the Plan;
(b)the grant of the Restricted Stock Units is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been granted in the past;
(c)all decisions with respect to future Restricted Stock Unit or other grants, if any, will be at the sole discretion of the Company;
(d)the Restricted Stock Unit grant and Participant’s participation in the Plan shall not create a right to continued service with the Employer, the Company or any Affiliate or be interpreted as forming a service contract with the Employer, the Company or any Affiliate;
(e)Participant is voluntarily participating in the Plan;
(f)the grant of Restricted Stock Units and the Shares subject to the Restricted Stock Units, and the income from and value of same, are not intended to replace any pension rights or compensation;
(g)the Restricted Stock Units and the Shares subject to the Restricted Stock Unit, and the income from and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, holiday pay, pension or retirement or welfare benefits or similar payments;
(h)unless otherwise agreed with the Company, the Restricted Stock Units and the Shares subject to the Restricted Stock Units, and the income from and value of same, are not granted as consideration for, or in connection with, the service Participant may provide as a director of an Affiliate;
(i)the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty;
(j)no claim or entitlement to compensation or damages shall arise from forfeiture of the Restricted Stock Units resulting from Participant’s termination as a Service Provider (for any reason whatsoever whether or not later found to be invalid or in breach of applicable laws in the jurisdiction where Participant is employed or the terms of Participant’s service agreement, if any); and
(k)the following provisions apply only if Participant is providing services outside the United States:
(i)the Restricted Stock Units and the Shares subject to the Restricted Stock Units are not part of normal or expected compensation or salary for any purpose; and
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(ii)Participant acknowledges and agrees that neither the Company, the Employer nor any Affiliate shall be liable for any foreign exchange rate fluctuation between Participant’s local currency and the United States Dollar that may affect the value of the Restricted Stock Units or of any amounts due to Participant pursuant to the settlement of the Restricted Stock Units or the subsequent sale of any Shares acquired upon settlement.
11.No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding Participant’s participation in the Plan, or Participant’s acquisition or sale of the underlying Shares.  Participant should consult with Participant’s own personal tax, legal and financial advisors regarding participation in the Plan before taking any action related to the Plan.
12.Data Privacy Information and Consent.  By accepting the Restricted Stock Units and indicating consent via the Company’s acceptance procedure, Participant is declaring that Participant agrees with the data processing practices described herein and consents to the collection, processing and use of Data (as defined below) by the Company and the transfer of Data to the recipients mentioned herein, including recipients located in countries which do not adduce an adequate level of protection from a European (or other non-U.S.) data protection law perspective, for the purposes described herein.
(a)Data Collection and Usage.  The Company and the Employer may collect, process and use certain personal information about Participant, including, but not limited to, Participant’s name, home address and telephone number, email address, date of birth, social insurance number, passport or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all Restricted Stock Units or any other entitlement to Shares or equivalent benefits awarded, canceled, exercised, vested, unvested or outstanding in Participant’s favor (“Data”), for the purposes of implementing, administering and managing the Plan.  The legal basis, where required, for the processing of Data is Participant’s consent.
(b)Stock Plan Administration Service Providers.  The Company transfers Data to E*Trade Financial Services, Merrill Lynch, and their affiliated companies, independent service providers based in the United States which are assisting the Company with the implementation, administration and management of the Plan.  The Company may select a different service provider or additional service providers and share Data with such other provider serving in a similar manner.  Participant may be asked to agree on separate terms and data processing practices with the service provider, with such agreement being a condition to the ability to participate in the Plan. 
(c)International Data Transfers. The Company and its service providers are based in the United States. Participant’s country or jurisdiction may have different data privacy laws and protections than the United States.  For example, the European Commission has issued a limited adequacy finding with respect to the United States that applies only to the extent companies register for the EU-U.S. Privacy Shield program.  The Company's legal basis, where required, for the transfer of Data is Participant’s consent.
(d)Data Retention.  The Company will hold and use the Data only as long as is necessary to implement, administer and manage Participant’s participation in the Plan, or as required to comply with legal or regulatory obligations, including under tax and security laws.
(e)Voluntariness and Consequences of Consent Denial or Withdrawal.  Participation in the Plan is voluntary and Participant is providing the consents herein on a purely voluntary basis.  If Participant does not consent, or if Participant later seeks to revoke Participant’s 
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consent, Participant’s salary from or employment and career with the Employer will not be affected; the only consequence of refusing or withdrawing Participant’s consent is that the Company would not be able to grant these Restricted Stock Units or other equity awards to Participant or administer or maintain such awards.  
(f)Data Subject Rights.  Participant may have a number of rights under data privacy laws in Participant's jurisdiction.  Depending on where Participant is based, such rights may include the right to (i) request access or copies of Data the Company processes, (ii) request rectification of incorrect Data, (iii) delete Data, (iv) restrict processing of Data, (v) portability of Data, (vi) lodge complaints with competent authorities in Participant’s jurisdiction, and/or (vii) receive a list with the names and addresses of any potential recipients of Data. To receive clarification regarding these rights or to exercise these rights, Participant can contact Participant’s local human resources representative.
(g)Alternate Basis and Additional Consents.  Finally, Participant understands that the Company may rely on a different basis for the processing or transfer of Data in the future and/or request that Participant provide another data privacy consent.  If applicable, Participant agrees that upon request of the Company or the Employer, Participant will provide an executed acknowledgement or data privacy consent form (or any other agreements or consents) that the Company and/or the Employer may deem necessary to obtain from Participant for the purpose of administering Participant’s participation in the Plan in compliance with the data privacy laws in Participant’s country, either now or in the future.  Participant understands and agrees that Participant will not be able to participate in the Plan if Participant fails to provide any such consent or agreement requested by the Company and/or the Employer.
13.Address for Notices.  Any notice to be given to the Company under the terms of this Agreement will be addressed to the Company, in care of its Stock Plan Administrator at Arlo Technologies, Inc., 2200 Faraday Ave., Suite 150, Carlsbad CA 92008, U.S.A., or at such other address as the Company may hereafter designate in writing.
14.Grant is Not Transferable.  Except to the limited extent provided in Section 6, this grant and the rights and privileges conferred hereby will not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and will not be subject to sale under execution, attachment or similar process.  Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this grant, or any right or privilege conferred hereby, or upon any attempted sale under any execution, attachment or similar process, this grant and the rights and privileges conferred hereby immediately will become null and void.
15.Binding Agreement.  Subject to the limitation on the transferability of this grant contained herein, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.
16.Additional Conditions to Issuance of Stock.  If at any time the Company will determine, in its discretion, that the listing, registration or qualification of the Shares upon any securities exchange or under any local, state, federal or non-U.S. law, or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to Participant (or his estate), such issuance will not occur unless and until such listing, registration, qualification, consent or approval will have been effected or obtained free of any conditions not acceptable to the Company.  Where the Company determines that the delivery of the payment of any Shares will violate securities laws or other Applicable Laws, the Company will defer delivery until the earliest date at which the Company reasonably anticipates that the delivery of Shares will no longer cause such violation.  The Company will 
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make all reasonable efforts to meet the requirements of any such local, state or federal law or securities exchange and to obtain any such consent or approval of any such governmental authority.
17.Plan Governs.  This Agreement is subject to all terms and provisions of the Plan.  In the event of a conflict between one or more provisions of this Agreement and one or more provisions of the Plan, the provisions of the Plan will govern.
18.Committee’s Authority.  The Committee will have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any Restricted Stock Units have vested).  All actions taken and all interpretations and determinations made by the Committee in good faith will be final and binding upon Participant, the Company and all other interested persons.  No member of the Committee will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement.
19.Electronic Delivery and Acceptance.  The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through any on-line or electronic system established and maintained by the Company or another third party designated by the Company.
20.Captions.  Captions provided herein are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
21.Agreement Severable.  In the event that any provision in this Agreement will be held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement.
22.Language.  Participant acknowledges that Participant is sufficiently proficient in English, or has consulted with an advisor who is sufficiently proficient in English, so as to allow Participant to understand the terms and conditions of this Agreement.  Furthermore, if Participant has received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.
23.Modifications to the Agreement.  This Agreement constitutes the entire understanding of the parties on the subjects covered.  Participant expressly warrants that Participant is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein.  Notwithstanding anything to the contrary in the Plan or this Agreement, the Company reserves the right to impose other requirements on Participant’s participation in the Plan, on the Restricted Stock Units and on any Shares acquired under the Plan, including, but not limited to, any other requirements as may be necessary to comply with Section 409A or to otherwise avoid imposition of any additional tax or income recognition under Section 409A, and to require Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
24.Amendment, Suspension or Termination of the Plan.  By accepting this Award, Participant expressly warrants that Participant has received an Award of Restricted Stock Units under the Plan, and has received, read and understood a description of the Plan.  Participant understands that the Plan is discretionary in nature and may be amended, suspended or terminated by the Company at any time.
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25.Forfeiture Events.  The Restricted Stock Units are subject to the Company’s Clawback Policy, as it may be amended from time to time.  
26.Governing Law; Venue.  This Agreement shall be governed by the laws of the State of California, without giving effect to the conflict of law principles thereof.  For purposes of litigating any dispute that arises under this grant of Restricted Stock Units or this Agreement, the parties hereby submit to and consent to the jurisdiction of the State of California, and agree that such litigation shall be conducted in the courts of Santa Clara County, California, or the U.S. federal courts for the United States for the Northern District of California, and no other courts, where this grant of Restricted Stock Units is made and/or to be performed.
27.Waiver.  Participant acknowledges that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by Participant or any other Service Provider.
28.Insider Trading Restrictions/Market Abuse Laws.  Participant acknowledges that Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions including, but not limited to, the United States and Participant’s country of residence, which may affect Participant’s ability to acquire or sell Shares or rights to Shares (e.g., Restricted Stock Units) under the Plan during such time as Participant is considered to have “inside information” regarding the Company (as defined by the laws in the applicable jurisdictions).  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable insider trading policy of the Company.  Participant is responsible for complying with any applicable restrictions and should consult with Participant’s own personal legal advisor on this matter.
29.Foreign Asset/Account Reporting Requirements; Exchange Controls.  Depending on Participant’s country, Participant may be subject to foreign asset/account, exchange control and/or tax reporting requirements as a result of the vesting of the Restricted Stock Units, the acquisition, holding and/or transfer of Shares or cash resulting from participation in the Plan and/or the opening and maintaining of a brokerage or bank account in connection with the Plan.  Participant may be required to report such assets, accounts, account balances and values, and/or related transactions to the applicable authorities in Participant’s country.  Participant may also be required to repatriate sale proceeds or other funds received as a result of Participant’s participation in the Plan to Participant’s country through a designated bank or broker and/or within a certain time after receipt.  Participant acknowledges that Participant is responsible for ensuring compliance with any applicable foreign asset/account, exchange control and tax reporting and other requirements.  Participant further understands that Participant should consult Participant’s personal tax and legal advisors, as applicable, on these matters.

A-13Document

Exhibit 10.2

FEDERAL HOME LOAN BANK OF INDIANAPOLIS
2005 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(Amended and Restated Generally Effective as of August 1, 2021)

Krieg DeVault LLP
One Indiana Square, Suite 2800
Indianapolis, IN 46204-2079
www.kriegdevault.com

ADOPTION OF
FEDERAL HOME LOAN BANK OF INDIANAPOLIS 
2005 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Pursuant to resolutions adopted by the Board of Directors of the Federal Home Loan Bank of Indianapolis (the “Bank”), the undersigned officers of the Bank hereby adopt the Federal Home Loan Bank of Indianapolis 2005 Supplemental Executive Retirement Plan, amended and restated generally effective as of August 1, 2021, on behalf of the Bank, in the form attached hereto.

Dated this 28th day of October, 2021.

FEDERAL HOME LOAN BANK OF INDIANAPOLIS

By:/s/ Gregory L. Teare
Gregory L. Teare, Executive Vice President-Chief Financial Officer

By:/s/ Kania D. Lottie
Kania D. Lottie, Senior Vice President-Chief Human Resources and Diversity, Equity, & Inclusion Officer

ATTEST:

By:/s/ Steven E. Doan
     Steven E. Doan, Vice President-Member Research
     and Strategies Director

2

FEDERAL HOME LOAN BANK OF INDIANAPOLIS
2005 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

TABLE OF CONTENTS

                                                                                                                                            
									
			PAGE
	ARTICLE 1	INTRODUCTION	5
			
	Section 1.1	Purpose	5
	Section 1.2	Effective Date; Plan Year	5
	Section 1.3	Administration	5
	Section 1.4	Supplements	5
	Section 1.5	Definitions	5
			
	ARTICLE II	ELIGIBILITY AND PARTICIPATION	6
			
	Section 2.1	Eligibility	6
	Section 2.2	Participation	6
			
	ARTICLE III	BENEFITS	7
			
	Section 3.1	Amount of Benefit	7
	Section 3.2	Death Benefit	8
	Section 3.3	Military Service	8
	Section 3.4	Long Term Incentive Plan Awards	8
	Section 3.5	Effect of Reduced Benefits under Retirement Plan	8
			
	ARTICLE IV	BENEFIT PAYMENTS	8
			
	Section 4.1	Time of Payment of Benefits	8
	Section 4.2	Method of Payment	9
	Section 4.3	Method of Payment Elections	9
	Section 4.4	Disability and Death	9
	Section 4.5	Acceleration of Time of Payment	10
			
	ARTICLE V	PLAN ADMINISTRATION	11
			
	Section 5.1	Appointment of the Committee	11
	Section 5.2	Powers and Responsibilities of the Committee	12
	Section 5.3	Liabilities	12
	Section 5.4	Income and Employment Tax Withholding	12
	Section 5.5	Disclosure to Participant Upon Termination of Employment	12
	Section 5.6	Expenses	12
			

3

									
	ARTICLE VI	BENEFITS CLAIMS	13
			
	ARTICLE VII 	FUNDING AND TRANSFERS	13
			
	Section 7.1	Unfunded Status	13
			
	ARTICLE VIII	AMENDMENT AND TERMINATION OF THE PLAN	13
			
	Section 8.1	Amendment of the Plan	13
	Section 8.2	Termination of the Plan	13
			
	ARTICLE IX	MISCELLANEOUS	13
			
	Section 9.1	Governing Law	13
	Section 9.2	Headings and Gender	13
	Section 9.3	Spendthrift Clause	13
	Section 9.4	Counterparts	13
	Section 9.5	No Enlargement of Employment Rights	14
	Section 9.6	Limitations on Liability	14
	Section 9.7	Incapacity of Participant or Beneficiary	14
	Section 9.8	Evidence	14
	Section 9.9	Action b Bank	14
	Section 9.10	Severability	14
	Section 9.11	Information to be Furnished by a Participant	14
	Section 9.12	Attorneys' Fees	14
	Section 9.13	Binding on Successors	14
			
	SUPPLEMENTAL A	CLAIMS AND REVIEW PROCEDURES	15

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ARTICLE I

INTRODUCTION

Section 1.1  Purpose.  The purpose of the Federal Home Loan Bank of Indianapolis 2005 Supplemental Executive Retirement Plan (the “Plan”) is to provide certain management or highly compensated employees of the Federal Home Loan Bank of Indianapolis (the “Bank”), supplemental retirement benefits to help recompense the employees for benefits reduced under the qualified retirement plan sponsored by the Bank due to benefit limits imposed under Sections 401(a)(17) and 415 of the Internal Revenue Code of 1986, as amended (the “Code”).  It is the intention of the Bank that the Plan constitute a deferred compensation arrangement that complies with Code Section 409A. Consequently, the Plan will be administered and its provisions interpreted consistently with that intention.

Section 1.2  Effective Date; Plan Year.  The “Effective Date” of the Plan as amended and restated is August 1, 2021.  The “Plan Year” is the 12-month period beginning on each January 1 and ending on the next following December 31.

Section 1.3  Administration.    The Plan will be administered by an administrative committee (“Committee”) appointed by the Bank’s Board of Directors (“Board”), which initially will be the Human Resources Committee of the Board.  The Committee, from time to time, may adopt any rules and procedures it deems necessary or desirable for the proper and efficient administration of the Plan that are consistent with the terms of the Plan.  Any notice or document required to be given or filed with the Committee will be properly given or filed if delivered to or mailed, by registered mail, postage paid, to the Corporate Secretary of the Board of Directors, Federal Home Loan Bank of Indianapolis, 8250 Woodfield Crossing Blvd., Suite 400, Indianapolis, Indiana 46240.

Section 1.4  Supplements.  The provisions of the Plan may be modified by supplements to the Plan.  The terms and provisions of each supplement are a part of the Plan and supersede any other provisions of the Plan to the extent necessary to eliminate any inconsistencies between the supplement and any other Plan provisions.

Section 1.5  Definitions.  The following terms are defined in the Plan in the following Sections:

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	Term	Plan Section
		
	Acceleration Event	4.5
	Adverse Benefit Determination	A-3
	Bank	1.1
	Benefit Claim	A-1
	Board	1.3
	Claimant	A-1
	Code	1.1
	Committee	1.3
	Disabled	4.4(b)
	Effective Date	1.2
	FICA	4.5(b)
	Frozen SERP	3.1(c)
	Frozen SETP	3.1(a)
	Participant	2.1
	Participant Benefit	3.1
	Plan	1.1
	Plan Year	1.2
	Retirement Allowance	3.1
	Retirement Plan	2.1
	Salary	3.1
	Separation from Service	4.1
	Termination of Employment	4.1
	Trust	6.1
	2005 SETP	3.1(a)

ARTICLE II

ELIGIBILITY AND PARTICIPATION

Section 2.1  Eligibility.  Any employee of the Bank who is a member of the Federal Home Loan Bank of Indianapolis Retirement Plan as documented by the Regulations Governing the Comprehensive Retirement Program of the Financial Institutions Retirement Fund (“Retirement Plan”) or who is not a member of the Retirement Plan because the employee has not yet met the Retirement Plan’s service requirements, is eligible to become a “Participant” in the Plan, provided the employee is designated as a Participant by the Committee or the Bank in writing.  Any employee of the Bank who is a member of the Retirement Plan or who is not a member of the Retirement Plan because the employee has not yet met the Retirement Plan service requirements and who is an officer with a title of Vice President or a higher officer level, is automatically eligible to become a “Participant” in the Plan without the need for designation by the Board.

Section 2.2  Participation.  A designated employee or otherwise eligible employee will become a Participant as of the later of the Effective Date, the date specified by the Board or the date the employee satisfies the automatic eligibility provisions described in Section 2.1.  A Participant may be removed as an active Participant by the Board effective as of any date, so that the Participant will not be entitled to accrue additional benefits under Article III on or after that date.

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ARTICLE III

BENEFITS

Section 3.1  Amount of Benefit.  The amount, if any, of the benefit payable to or on account of a Participant pursuant to the Plan (“Participant Benefit”) will equal the excess of (a) less (b) less (c), the result of which will be actuarially adjusted by the factor in (d), where:

(a)is the Participant’s Retirement Allowance (as defined by the Retirement Plan) that would otherwise be payable to or on account of the Participant under the Retirement Plan calculated as of the first day of the month coincident with or next following the Participant’s date of termination on the basis of the lump sum form of payment (as defined by the Retirement Plan), determined as if the provisions of the Retirement Plan were administered without regard to the limitations imposed by Code Sections 401(a)(17) and 415 and, in the case of an employee whom the Board authorized to become a Participant prior to meeting the eligibility service requirement of the Retirement Plan, without regard to the eligibility service requirement of the Retirement Plan (for purposes of determining the Retirement Allowance under this subsection (a), any salary deferrals made by or on account of the Participant under the Federal Home Loan Bank of Indianapolis Supplemental Executive Thrift Plan (“2005 SETP”) or the Federal Home Loan Bank of Indianapolis 2016 Supplemental Executive Thrift Plan, as amended (“2016 SETP”) are to be included as salary); provided, however, that the formula and actuarial factors shall be adjusted so that for purposes of calculating the Participant’s lump sum benefit:

(i)the applicable interest rate shall be the minimum present value segment rates in effect for plan years beginning in May, 2021, which for clarity were 0.61, 2.84, and 3.54, regardless of any subsequent changes; and

(ii)the applicable mortality table shall be the table in effect as of June 30, 2021, regardless of any subsequent changes; and

(b)is the Participant’s Retirement Allowance (as defined by the Retirement Plan) that is or would be payable to or on account of the Participant under the Retirement Plan calculated as of the first day of the month coincident with or next following the Participant’s date of termination on the basis of the lump sum form of payment (as defined by the Retirement Plan); and

(c)is the Participant’s accrued benefit under the Federal Home Loan Bank of Indianapolis Supplemental Executive Retirement Plan (“Frozen SERP”) that would have been payable to or on account of the Participant under the Frozen SERP calculated as if the Participant had terminated employment on December 31, 2004 and collected the Frozen SERP on the basis of the lump sum form of payment at the earliest date allowable under the Retirement Plan discounted back to December 31, 2004 using the actuarial equivalence factors for lump sum payments (as defined by the Retirement Plan) and increased with such interest only to the date of termination.  In no event will the amount of the Frozen SERP determined in this section exceed the amount that would be payable under the terms of the 2005 SERP as of the date of termination without regard to the Frozen SERP.

(d)The net result of calculating (a) less (b) less (c), above, is a lump sum amount that will be adjusted to an actuarial equivalent benefit payable in the form of payment elected by the Participant pursuant to Section 4.3 of this Plan (using the actuarial equivalence factors as defined in the Retirement Plan, as modified by subsection 3.1(a) above, for purposes of calculating a lump sum).

Notwithstanding the above, in the case of an employee who becomes a Participant on or after January 1, 2008, and whose Benefit Service under the Retirement Plan includes service earned while the Participant was not an employee of the Bank, the amount, if any, of the Participant Benefit payable under this Plan will equal the net amount resulting from the calculation of (a) less (b) less (c) above multiplied by the Participant’s years and months of Benefit Service (as defined in the Retirement Plan) with the Bank divided by his years and months of Benefit Service under the Retirement Plan, adjusted as provided in (d) above.  
7

There will be no adjustment made to a Participant’s Vesting Service (as defined in the Retirement Plan) for purposes of this Plan.

Section 3.2  Death Benefit.  In the event of the death of a Participant prior to age 65, the Participant Benefit will equal the excess of (a) less (b) less (c), adjusted for the factors in (d), as determined by the Committee, where:

(a)is the death benefit (as defined by the Retirement Plan) that would otherwise be payable to the Participant’s Beneficiary under the Retirement Plan if the provisions of the Retirement Plan were administered without regard to the limitations imposed by Code Sections 401(a)(17) and 415 (for purposes of determining the Participant Benefit under this subsection (a), any salary deferrals made by or on account of the Participant under the Frozen SETP, 2005 or 2016 SETP are to be included as salary); provided, however, that the formula and actuarial factors shall be adjusted so that for purposes of calculating the Participant’s lump sum benefit:

(i)the applicable interest rate shall be the yield on 30-year Treasury Constant Maturities as of July 13, 2021, which for clarity was 2.04%, regardless of any subsequent changes; and

(ii)the applicable mortality table shall be the table in effect as of June 30, 2021, regardless of any subsequent changes; and

(b)is the death benefit that is payable to the Participant’s Beneficiary under the Retirement Plan; and

(c)is the Participant’s accrued death benefit under the Frozen SERP.

(d)The result of calculating (a) less (b) less (c), above, will be adjusted by applying the actuarial factors provided by the Retirement Plan, as modified by subsection 3.2(a) above, to convert the result to the lump sum form of benefit.

Notwithstanding the above, in the case of an employee who becomes a Participant on or after January 1, 2008, and whose Benefit Service under the Retirement Plan includes service earned while the Participant was not an employee of the Bank, the amount, if any, of the Participant Benefit payable under this Plan will equal the net amount resulting from the calculation of (a) less (b) less (c) above multiplied by the Participant’s years and months of Benefit Service (as defined in the Retirement Plan) with the Bank divided by his years and months of Benefit Service under the Retirement Plan, adjusted as provided in (d) above.  There will be no adjustment made to a Participant’s Vesting Service (as defined in the Retirement Plan) for purposes of this Plan.

Section 3.3  Military Service.  Not withstanding any provision of this Plan to the contrary, contributions and benefits with respect to qualified military service will be provided in accordance with Code Section 414(u).

Section 3.4  Long Term Incentive Plan Awards.  Any compensation received by a Participant as payment of an award under the Federal Home Loan Bank of Indianapolis Incentive Plan, or of a Deferred Award as defined in Section 3.3(b) of the Federal Home Loan Bank of Indianapolis Incentive Plan, or any similar deferred or long-term award under any subsequent long term incentive plan sponsored by the Bank shall not be considered when determining the Participant Benefit under the Plan.

Section 3.5  Effect of Reduced Benefits Under Retirement Plan.  A Participant Benefit under this Plan shall be determined by reference to the terms of the Retirement Plan applicable to the particular Participant, even if the terms of the Retirement Plan may be different as applied to other Plan Participants.

ARTICLE IV

BENEFIT PAYMENTS

Section 4.1  Time of Payment of Benefits.  Except as provided in Section 4.5, a Participant will receive or will begin to receive payment of his Participant Benefit within 120 days following the date of the Participant’s Separation from Service.  “Separation from Service” means the date on which the Participant dies, retires or 
8

otherwise experiences a Termination of Employment with the Bank.  Provided, however, a Separation from Service does not occur if the Participant is on military leave, sick leave, or other “bona fide leave of absence” if the period of such leave does not exceed six months, or if the leave is for a longer period, so long as the individual’s right to reemployment with the Bank is provided either by statute or by contract.  For purposes of this subsection, a leave of absence constitutes a “bona fide leave of absence” only if there is a reasonable expectation that the Participant will return to perform services for the Bank.  If the period of leave exceeds six months and the Participant’s right to reemployment is not provided either by statute or contract, there will be a Separation from Service on the first date immediately following such six-month period.  Notwithstanding the foregoing, where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to result in death or last for a continuous period of not less than six months, where such impairment cause the Participant to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a 29-month period of absence may be substituted for such six-month period.  An Employee will incur a “Termination of Employment” when a termination of employment is incurred under Treasury Regulation §1.409A-1(h)(ii).

Section 4.2  Method of Payment.  Except as provided in Sections 4.5 and 4.6, the Participant Benefit will be distributed in cash in one of the following methods effectively elected by the Participant:

(a)A single lump sum payment;

(b)Annual installment payments over a period of 2 to 20 years; or

(c)A combination of the methods specified in subsections (a) and (b).

However, if the Participant Benefit is less than $10,000, then the entire benefit will be paid in a single lump sum payment regardless of any Participant election to the contrary.

Section 4.3  Method of Payment Elections.

(a)Initial Election.  A Participant may elect the manner in which his Plan benefit will be paid to him under Section 4.2 in accordance with the terms and conditions of this Section.  To make an election, a Participant must file an election with the Committee (on a form or forms prescribed by the Committee).  To be effective, the election under this Section must be filed with the Committee no later the time the Participant first begins to accrue a benefit under the Plan (or under any other plan required to be aggregated with this Plan pursuant to the requirements of Code Section 409A).  If no election is made or if the election is not timely or properly made, distribution will be made in the form of a single lump sum payment.

(b)Change of Method of Payment Election.  An election as to the manner of payment may not be changed after the payment has been made or payments have commenced.  Prior to that time, a Participant may change his election by filing a new election form with the Committee; provided, however, that: (i) the new election will not take effect until at least 12 months after the date the new election is filed; (ii) the single lump sum payment or the commencement of installment payments with respect to which such election is made must be deferred for a period of not less than five years from the date such payment would otherwise have been made; and (iii) the new election is filed at least 12 months prior to the date of the first scheduled payment under the Plan.

Section 4.4  Disability and Death.  In the event a Participant Separates from Service due to the Participant’s Disability or if the Participant dies or becomes Disabled before he has received his entire Plan benefit, the unpaid balance will be paid to the Participant, or in the event of his death, to his designated beneficiary or beneficiaries, in a single lump sum within 120 days following a determination by the Committee that the Participant is Disabled, or within 120 days following the Participant’s death.

(a)Beneficiary Designations.  A Participant may designate a beneficiary or beneficiaries to receive any amount payable under this Section as a result of his death.  A Participant may change his designation of beneficiaries at any time by filing with the Committee a written notice of the change on a form approved by the Committee.  Each beneficiary designation filed with the Committee will cancel all previously filed beneficiary designations.  If no designation is in effect on the 
9

Participant’s death, or if the designated beneficiary does not survive the Participant, his beneficiary will be his surviving spouse, if any, and then his estate.

(b)Disability.  A person is “Disabled” for purposes of the Plan if the Participant in question is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.  A Participant who, by reason of any medically determinable physical or mental impairment that can be expected to result in death or last for a continuous period of not less than 12 months, is receiving income replacement benefits for a period of not less than three months under an accident and health plan sponsored by an Employer will be deemed to be Disabled.  The Committee will be the sole and final judge of whether a Participant is Disabled for purposes of this Plan, after consideration of any evidence it may require, including the reports of any physician or physicians it may designate.

Section 4.5  Acceleration of Time of Payment.  Except as provided in this Section, the time or schedule of payment of a Participant Benefit provided in Sections 4.1 through 4.4 may not be accelerated.  The time or schedule of payment of a Participant Benefit may be accelerated in the following circumstances, each of which is an “Acceleration Event,” to a time that is no later than 120 days following the Committee’s determination that one of the Acceleration Events has occurred, and payment will be made in the form of a single lump sum:

(a)Domestic Relations Order.  The time or schedule of a payment of a Participant’s Benefit may be accelerated to make a payment to an individual other than the Participant as may be necessary to fulfill a domestic relations order (as defined in Code Section 414(p)(1)(B)).

(b)Income Inclusion Under Code Section 409A.  The time or schedule of payment of a Participant Benefit under the Plan may be accelerated to pay the income tax, interest and penalties imposed if the Plan fails to meet the requirements of Code Section 409A and related regulations; provided, however, such payment will not exceed the amount required to be included in income as a result of the failure to comply with the requirements of Code Section 409A and related regulations.

(c)Payment of Employment Taxes.  The time or schedule of a payment of a Participant’s Benefit may be accelerated to pay the Federal Insurance Contribution Act (“FICA”) tax imposed under Code Sections 3101, 3121(a) and 3121(v)(2) on compensation deferred under the Plan.  Additionally, the time or schedule of a payment of a Participant’s Benefit may be accelerated under the Plan to pay the income tax at source on wages imposed under Code Section 3401 or the corresponding withholding provisions of state, local or foreign tax laws as a result of payment of the FICA amount, and to pay the additional income tax at source on wages attributable to the pyramiding section 3401 wages and taxes.  However, the total payment under this paragraph will not exceed the aggregate of the FICA amount and the related income tax withholding on such FICA amount.

(d)Plan Termination.  The time or schedule of payment or commencement of payments from a Participant’s Benefit may be accelerated when the Plan is terminated in accordance with one of the following and the Participant’s Benefit is calculated as if the Participant Separated from Service on the date of the Plan termination:

(i)The Company terminates the Plan within 12 months of a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that the amounts deferred under the Plan are included in the Participants’ gross incomes in the latest of the following years (or, if earlier, the taxable year in which the amount is constructively received).

A.The calendar year in which the Plan termination and liquidation occurs;

B.The first calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or

C.The first calendar year in which the payment is administratively practicable.
10

(ii)The Company’s irrevocable action to terminate and liquidate the Plan within the 30 days preceding or the 12 months following a change in control (as defined in Treasury Regulation 1.409A-3(i)(5)).  For purposes of this subsection, the Plan may be terminated only if all agreements, methods, programs, and other arrangements sponsored by the Employer immediately after the time of the change in control with respect to which deferrals of compensation are treated as having been deferred under a single plan under Treasury Regulation 1.409A-1(c)(2) are terminated and liquidated with respect to each Participant that experienced the change in control, so that under the terms of the termination and liquidation all such Participants are required to receive all amounts of compensation deferred under the Plan and other arrangements within 12 months of the date the Company irrevocably takes all necessary action to terminate and liquidate the Plan and other arrangements.

(iii)The Company’s termination and liquidation of the Plan, provided that: 

A.The termination and liquidation does not occur proximate to a downturn in the financial health of the Company;

B.The Company terminates and liquidates all agreements, programs, and other arrangements that would be aggregated under Treasury Regulation §1.409A-1(c) if the Participant had deferrals of compensation under all of the agreements, methods, programs, and other arrangements that are terminated and liquidated; 

C.No payments in liquidation of the Plan are made within 12 months of the date the Company takes all necessary action to irrevocably terminate and liquidate the plan other than payments that would be payable under the terms of the Plan if the action to terminate and liquidate the Plan had not occurred;

D.All payments are made within 24 months of the date the Company takes all necessary action to irrevocably terminate and liquidate the Plan; and

E.The Company does not adopt a new plan or arrangement that would be aggregated with any terminated and liquidated plan or arrangement under Treasury Regulation §1.409A-1(c) if the same Participant participated in both plans or arrangements, at any time within three years following the date the Company takes all necessary action to irrevocably terminate and liquidate the Plan.

(iv)Limited Cashouts.  The Plan may terminated and liquidate a Participant’s interest under the Plan up to the Code Section 402(g)(1)(B) limit prior to the time provided in Sections 4.1 and 4.2, provided that the Company comply with the requirements of Treasury Regulation. §1.409A-3(j)(4)(v).

(v)Such other events and conditions as the Internal Revenue Service may prescribe in generally applicable guidance published in the Internal Revenue Bulletin.

ARTICLE V

PLAN ADMINISTRATION

Section 5.1  Appointment of the Committee.  The Committee, or a duly authorized officer of the Bank empowered by the Committee to act on its behalf under subsection 5.2(e), will be responsible for administering the Plan, and the Committee will be charged with the full power and the responsibility for administering the Plan in all its details; provided that the power to determine eligibility pursuant to Article II is reserved to the Board. 

11

Section 5.2  Powers and Responsibilities of the Committee.  

(a)The Committee will have all powers necessary to administer the Plan, including the power to construe and interpret the Plan documents; to decide all questions relating to an individual’s eligibility to participate in the Plan; to determine the amount, manner and timing of any distribution of benefits or withdrawal under the Plan; to resolve any claim for benefits in accordance with Article VI and Supplement A, and to appoint or employ advisors, including legal counsel, to render advice with respect to any of the Committee’s responsibilities under the Plan.  Any construction, interpretation, or application of the Plan by the Committee will be final, conclusive and binding.

(b)Records and Reports.  The Committee will be responsible for maintaining sufficient records to determine each Participant’s eligibility to participate in the Plan, and for purposes of determining the amount of contributions that may be made on behalf of the Participant under the Plan.

(c)Rules and Decisions.  The Committee may adopt such rules as it deems necessary, desirable, or appropriate in the administration of the Plan.  All rules and decisions of the Committee will be applied uniformly and consistently to all Participants in similar circumstances.  When making a determination or calculation, the Committee will be entitled to rely upon information furnished by a Participant or beneficiary, the Bank or the legal counsel of the Bank.

(d)Application for Benefits.  The Committee may require a Participant or beneficiary to complete and file with it an application for a benefit, and to furnish all pertinent information requested by it.  The Committee may rely upon all such information so furnished to it, including the Participant’s or beneficiary’s current mailing address.

(e)Delegation.  The Committee may authorize one or more officers of the Bank to perform administrative responsibilities on its behalf under the Plan.  Any such duly authorized officer will have all powers necessary to carry out the administrative duties delegated to such officer by the Committee.

Section 5.3  Liabilities.  The individual members of the Committee will, in accordance with the Bank’s by-laws, be indemnified and held harmless by the Bank with respect to any alleged breach of responsibilities performed or to be performed hereunder.

Section 5.4  Income and Employment Tax Withholding.  The Bank will be responsible for withholding from the Participant’s compensation, from the contribution to the Plan, or from the distribution of the Participant’s benefit under the Plan, of all applicable federal, state, city and local taxes.

Section 5.5  Disclosure to Participant Upon Termination of Employment.  Within 90 days of a Participant’s Separation from Service or a termination of the Plan, the Bank will provide the Participant a comprehensive statement setting forth the value of the Participant Benefit and the date and manner in which such benefit will be paid out to the Participant.  On written request of a Participant, within 90 days of receipt of such disclosure, the Bank will engage an independent actuary, acceptable to the Bank and the Participant, at the Bank’s expense, to review the initial calculation of the Participant’s benefit.  If the independent actuary’s benefit calculation differs from the initial calculation by 5% or more, either the Bank or the Participant may demand, within 90 days of receipt in writing of the result of the independent actuary’s benefit calculation, that the first two actuaries select a third actuary, who is independent of the first two actuaries, the Bank and the Participant, to review the benefit calculations and present a written determination of the Participant Benefit, which shall be final, subject to the claims procedure in Supplement A.  Selection of the third actuary will be completed within 60 days of a written request by the Bank or the Participant to the first two actuaries, the third actuary will complete its calculation of the Participant Benefit within 60 days of its engagement for that purpose.  If a Participant requests review of the calculation of his benefit pursuant to the terms of this Section, payment of the Participant Benefit will not be made or commence until the final benefit calculation is received from the third actuary.

Section 5.6  Expenses.  The expenses incurred for the administration and maintenance of the Plan will be paid by the Bank. 

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ARTICLE VI

BENEFIT CLAIMS

While a Participant or beneficiary need not file a claim to receive his benefit under the Plan, if he wishes to do so, a claim must be made in writing and filed with the Committee.  If a claim is denied, the Committee will furnish the claimant with written notice of its decision.  A claimant may request a review of the denial of a claim for benefits by filing a written request with the Committee.  The Committee will afford the claimant a full and fair review of such request.  The claim and claim review process will be conducted in accordance with the provisions of Supplement A. 

ARTICLE VII

FUNDING AND TRANSFERS

Section 7.1  Unfunded Status.  All benefits accrued under the Plan on behalf of a Participant will be credited to an irrevocable “rabbi trust” (the “Trust”) to provide for the benefits created by the Plan.  The Trust will be maintained in such a fashion that the Plan at all times for purposes of ERISA and the Code will be unfunded and will constitute a mere promise by the Bank to make Plan benefit payments in the future.  Any and all rights created under this Plan will be unsecured contractual rights against the Bank.  The Bank’s annual contribution to the Trust will be an amount equal to the accumulated benefit obligation calculated in accordance with Financial Accounting Standard No. 87 and disclosed on the Bank’s financial statements.

ARTICLE VIII

AMENDMENT AND TERMINATION OF THE PLAN

Section 8.1  Amendment of the Plan.  The Bank may amend the Plan at any time in its sole discretion.  Notwithstanding the foregoing, the Bank may not amend the Plan to reduce a Participant’s accrued benefit (without consent) as determined on the day preceding the effective date of the amendment or to otherwise retroactively impair or adversely affect the rights of a Participant or beneficiary.

Section 8.2  Termination of the Plan.  The Bank may terminate the Plan at any time in its sole discretion.  Absent an amendment to the contrary, Plan benefits that had accrued prior to the termination will be paid at the times and in the manner provided for by the Plan at the time of the termination.

ARTICLE IX

MISCELLANEOUS

Section 9.1  Governing Law.  The Plan will be construed, regulated and administered according to the laws of the State of Indiana, without reference to that state’s choice of law principles, except in those areas preempted by the laws of the United States of America in which case the federal laws will control.

Section 9.2  Headings and Gender.  The headings and subheadings in the Plan have been inserted for convenience of reference only and will not affect the construction of the Plan provisions.  In any necessary construction, the masculine will include the feminine and the singular the plural, and vice versa.

Section 9.3  Spendthrift Clause.  No benefit or interest available under the Plan will be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment by creditors of a Participant or a Participant’s beneficiary, either voluntarily or involuntarily.  

Section 9.4  Counterparts.  This Plan may be executed in any number of counterparts, each one constituting but one and the same instrument, and may be sufficiently evidenced by any one counterpart.

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Section 9.5  No Enlargement of Employment Rights.  Nothing contained in the Plan may be construed as a contract of employment between the Bank and any person, nor may the Plan be deemed to give any person the right to be retained in the employ of the Bank or limit the right of the Bank to employ or discharge any person with or without cause.

Section 9.6  Limitations on Liability.  Notwithstanding any other provision of the Plan, neither the Bank nor any individual acting as an employee or agent of a Bank will be liable to a Participant or any beneficiary for any claim, loss, liability or expense incurred in connection with the Plan, except when the same has been affirmatively determined by a court order or by the affirmative and binding determination of an arbitrator, to be due to the gross negligence or willful misconduct of that person.

Section 9.7  Incapacity of Participant or Beneficiary.  If any person entitled to receive a distribution under the Plan is physically or mentally incapable of personally receiving and giving a valid receipt for any payment due (unless a prior claim for the distribution has been made by a duly qualified guardian or other legal representative), then, unless and until a claim for the distribution has been made by a duly appointed guardian or other legal representative of the person, the Committee may provide for the distribution to be made to any other individual or institution then contributing toward or providing for the care and maintenance of the person.  Any payment made for the benefit of the person under this Section will be a payment for the account of such person and a complete discharge of any liability of the Bank and the Plan.

Section 9.8  Evidence.  Evidence required of anyone under the Plan may be by certificate, affidavit, document or other information which the person relying on the evidence considers pertinent and reliable, and signed, made or presented by the proper party or parties.

Section 9.9  Action by Bank.  Any action required of or permitted by the Bank under the Plan will be by resolution of the Bank’s Board of Directors or by a person or persons authorized by resolution of the Board of Directors.

Section 9.10  Severability.  In the event any provisions of the Plan are held to be illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and endorsed as if the illegal or invalid provisions had never been contained in the Plan.

Section 9.11  Information to be Furnished by a Participant.  A Participant, or any other person entitled to benefits under the Plan, must furnish the Committee with any and all documents, evidence, data or other information the Committee considers necessary or desirable for the purpose of administering the Plan.  Benefit payments under the Plan are conditioned on a Participant (or other person who is entitled to benefits) furnishing full, true and complete data, evidence or other information to the Committee, and on the prompt execution of any document reasonably related to the administration of the Plan requested by the Committee.

Section 9.12  Attorneys' Fees.  If any action is commenced to enforce the provisions of the Plan, payment of attorneys’ fees will be governed by the terms set forth in the mandatory “Agreement to Arbitrate” entered into between the Bank and the Participant.

Section 9.13  Binding on Successors.  The Plan will be binding upon and inure to the benefit of the Bank and its successors and assigns, and the successors, assigns, designees and estates of a Participant.  The Plan will also be binding upon and inure to the benefit of any successor organization succeeding to substantially all of the assets and business of the Bank, but nothing in the Plan will preclude the Bank from merging or consolidating into or with, or transferring all or substantially all of its assets to, another organization which assumes the Plan and all obligations of the Bank hereunder.  The Bank agrees that it will make appropriate provision for the preservation of a Participant’s rights under the Plan in any agreement or plan which it may enter into to effect any merger, consolidation, reorganization or transfer of assets.  Upon such a merger, consolidation, reorganization, or transfer of assets and assumption of Plan obligations of the Bank, the term “Bank” will refer to such other organization and the Plan will continue in full force and effect.

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SUPPLEMENT A

CLAIMS AND REVIEW PROCEDURES

Section A-1  Procedures Governing the Filing of Benefit Claims.  All Benefit Claims must be filed on the appropriate claim forms available from the Committee and in accordance with the procedures established by the Committee for claim purposes.  A “Benefit Claim” means a request for a Plan benefit or benefits, made by a Claimant or by an authorized representative of a Claimant, that complies with the Plan’s procedures for making benefit claims.  “Claimant” means a Participant, a surviving spouse of a Participant, a beneficiary, or an alternate payee under a domestic relations order, who is claiming entitlement to the payment of any benefit under the Plan.

Section A-2  Notification of Benefit Determinations.  The Committee will notify a Claimant, in accordance with Section A-3 below, of the Plan’s benefit determination within a reasonable period of time after receipt of a Benefit Claim, but not later than 90 days after receipt of the Benefit Claim by the Plan.  If special circumstances require an extension of time for processing the Benefit Claim, the Committee will notify the Claimant of the extension prior to the termination of the initial period described above.  The notice will indicate the special circumstances requiring the extension of time and the date by which the Plan expects to make the benefit determination.  In no event will the extension exceed a period of 90 days from the end of the initial period.

Section A-3  Manner and Content of Notification of Benefit Determinations.  All notices given by the Committee under the Plan will be given to a Claimant, or to his authorized representative, in a manner that satisfies the standards of 29 CFR 2520.104b-1(b) as appropriate with respect to the particular material required to be furnished or made available to that individual.  The Committee may provide a Claimant with either a written or an electronic notice of the Plan’s benefit determination.  Any electronic notification will comply with the standards imposed by 29 CFR 2520.104b-1(c)(1)(i), (ii), (iii) and (iv).  In the case of an Adverse Benefit Determination, the notice will set forth, in a manner calculated to be understood by the Claimant:

(a)The specific reasons for the adverse determination;

(b)Reference to the specific Plan provisions (including any internal rules, guidelines, protocols, criteria, etc.) on which the determination is based;

(c)A description of any additional material or information necessary for the Claimant to complete the claim and an explanation of why such material or information is necessary; and

(d)A description of the Plan’s review procedures and the time limits applicable to such procedures.

The term “Adverse Benefit Determination” means a denial, reduction, or termination of, or a failure to provide or make payment (in whole or in part) for, any benefit claimed to be payable under the Plan.

Section A-4  Appeal of Adverse Benefit Determinations.  A Claimant who receives an Adverse Benefit Determination and desires a review of that determination must file, or his authorized representative must file on his behalf, a written request for a review of the Adverse Benefit Determination, not later than 60 days after receiving the determination.  The written request for a review must be filed with the Committee.  Upon receiving the written request for review, the Committee will advise the Claimant, or his authorized representative, in writing that:

(a)The Claimant, or his authorized representative, may submit written comments, documents, records, and any other information relating to the claim for benefits; and

(b)The Claimant will be provided, upon request of the Claimant or his authorized representative, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant’s Benefit Claim, without regard to whether those documents, records, and information were considered or relied upon in making the Adverse  Benefit Determination that is the subject of the appeal.
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Section A-5  Benefit Determination on Review.  All appeals by a Claimant of an Adverse Benefit Determination will receive a full and fair review by an appropriate named fiduciary of the Plan. 

Section A-6  Notification of Benefit Determination on Review.  The Committee will notify a Claimant, in accordance with Section A-7, of the Plan’s benefit determination on review within a reasonable period of time, but not later than 60 days after the Plan’s receipt of the Claimant’s request for review of an Adverse Benefit Determination.  If, however, special circumstances require an extension of time for processing the review by the named fiduciary, the Claimant will be notified, prior to the termination of the initial 60 day period, of the special circumstances requiring the extension and the date by which the Plan expects to render the Plan’s benefit determination on review, which will not be later than 120 days after receipt of a request for review. 

Section A-7  Manner and Content of Notification of Benefit Determination on Review.  The Committee will provide a Claimant with notification of its benefit determination on review in a method described in Section A-3.  In the case of an Adverse Benefit Determination on review, the notification must set forth, in a manner calculated to be understood by the Claimant:

(a)The specific reasons for the adverse determination on review; 

(b)Reference to the specific Plan provisions (including any internal rules, guidelines, protocols, criteria, etc.) on which the benefit determination on review is based; and

(c)A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the Claimant’s Benefit Claim, without regard to whether those records were considered or relied upon in making the Adverse Benefit Determination on review, including any reports, and the identities, of any experts whose advice was obtained.

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