Document:

Document

CREDIT ACCEPTANCE CORPORATION
NONQUALIFIED STOCK OPTION AGREEMENT
Credit Acceptance Corporation (the “Company”) hereby grants you, First Name Last Name (“Optionee”), a Nonqualified Stock Option Award (the “Option”) under the Credit Acceptance Corporation Amended and Restated Incentive Compensation Plan, as amended (the “Plan”). The terms and conditions of the Option are set forth below.
GRANT DATE: [Grant Date]
NUMBER OF NONQUALIFIED STOCK OPTIONS: [Number of Options]
EXERCISE PRICE: $[[●] per share]
THIS AGREEMENT, effective as of the Grant Date above, represents the grant of Nonqualified Stock Options by the Company to the Optionee named above, pursuant to the provisions of the Plan and this Agreement. All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein. The parties hereto agree as follows:
1.Option Price.  The exercise price of the Option granted hereunder shall be as set forth above.
2.Vesting.
(a)The Option shall become vested and exercisable in substantially equal installments over a four year period, subject to the continued employment of the Optionee with the Company or one of its Affiliates through each vesting date, as applicable, as follows:
(i)On the first anniversary of the Grant Date:      [●] shares;
(ii)On the second anniversary of the Grant Date: [●] shares;
(iii)On the third anniversary of the Grant Date:      [●] shares;
(iv)On the fourth anniversary of the Grant Date:     [●] shares.
3.Option Exercise.
(a)To the extent not previously exercised, vested installments shall accumulate and the Optionee may exercise them thereafter in whole or in part.  Any provision of this Agreement to the contrary notwithstanding, the Option shall expire and no longer be exercisable after the date which is the sixth (6th) anniversary of the Grant Date (the “Expiration Date”).

(b)The Option shall be exercisable in accordance with the process and procedures established by the Company and communicated to the Optionee.  If no such procedures are communicated, the Option shall be exercisable by a written notice in the form attached hereto which shall:
(i)state the election to exercise the Option, the number of shares of Common Stock with respect to which it is being exercised by the Optionee;
(ii)be signed by the person or persons entitled to exercise the Option, and if the Option is being exercised by a person or persons other than the Optionee, be accompanied by (i) proof satisfactory to the Company’s legal counsel of the right of such person or persons to exercise the Option and (ii) evidence that such person or persons other than the Optionee have agreed to be bound by all of the terms and conditions of the Option to the same extent as the Optionee; and
(iii)be in writing and delivered to the General Counsel of the Company pursuant to the Notice provision set forth in Section 9(c) of this Agreement.
(c)Payment of the full exercise price of any shares of Common Stock with respect to which the Option is being exercised shall accompany the exercise of the Option.  Payment shall be made in accordance with the process and procedures established by the Company and communicated to the Optionee which may include, if the Company so approves, payment (i) in cash or by certified check, bank draft or money order; (ii) by tendering to the Company shares of Common Stock then owned by the Optionee, duly endorsed for transfer or with duly executed stock power attached, which shares shall be valued at their Fair Market Value as of the date of such exercise and payment or (iii) by delivery of irrevocable instructions to a broker designated by the Company to deliver to the Company a sufficient amount of cash to pay the exercise price and any applicable income and employment withholding taxes (“Cashless Exercise”). At the election of the Optionee, payment may also be made, in accordance with the process and procedures  established by the Company and communicated to the Optionee, by withholding shares of Common Stock otherwise deliverable upon exercise of an Option, which shares shall be valued at their Fair Market Value as of the date of such exercise and payment (“Net Exercise”).
4.Termination of Employment.
(a)Termination Prior to Option Becoming Vested and Exercisable.  If, prior to the date that the Option shall first become exercisable the Optionee’s employment shall be terminated, with or without cause, or by the death, Disability, retirement or other voluntary cessation of employment of the Optionee, the Optionee’s right to vest in the Option shall terminate and all rights hereunder shall cease. 
4

(b)Termination After Option Becomes Vested and Exercisable.  If, on or after the date that the Option shall first become exercisable, the Optionee’s employment shall be terminated for any reason, the Optionee shall have the right, prior to the earlier of (i) the Expiration Date and (ii) six (6) months after such termination of employment, to exercise the Option to the extent that it was vested and exercisable and is unexercised on the date of such termination of employment, subject to any other limitation on the exercise of the Option in effect at the date of exercise.  
Notwithstanding the foregoing, the Committee may, but shall not be required to, determine in its sole discretion that any portion of the Option held by an Optionee whose termination of employment from the Company is by reason of retirement (as determined by the Committee in its sole discretion) that has become vested and is unexercised prior to the retirement of the Optionee shall remain exercisable by the Optionee until the earlier of (i) the Expiration Date and (ii) two (2) years after such termination of employment, subject to any other limitation on exercise in effect at the date of exercise.
5.Withholding.  The Optionee consents to withholding from this compensation of all applicable payroll and income taxes with respect to the Option.  If the Optionee is no longer employed by the Company at the time any applicable taxes with respect to the Option are due and must be remitted by the Company, the Optionee agrees to pay applicable taxes to the Company, and the Company may delay issuance of a certificate or recording the ownership of the Common Stock on the books of the Company until proper payment of such taxes has been made by the Optionee.  If the Company so approves, the Optionee may satisfy his obligations under this Section 5 by (i) tendering previously-acquired shares of Common Stock or having shares of Common Stock withheld from the shares of Common Stock to be received upon exercise, provided that the shares have an aggregate Fair Market Value on the date of exercise of the Option sufficient to satisfy in whole or in part the applicable withholding taxes; or (ii) utilizing the Cashless Exercise procedure described in Section 3(d).  In addition, at the election of the Optionee, the Optionee may satisfy his obligations under this Section by utilizing the Net Exercise procedure described in Section 3(d).
6.Rights as Shareholder.  The Optionee shall not be, nor have any of the rights or privileges of, a stockholder of the Company, including, without limitation, voting rights and rights to dividends, in respect of any shares of Common Stock purchasable upon the exercise of any part of the Option unless and until such shares of Common Stock shall have been issued by the Company and held of record by such Optionee (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  No adjustment shall be made for dividends or other rights with respect to such shares of Common Stock for which the record date is prior to the date such shares of Common Stock are issued.  The Company shall not be required to make any book entries evidencing shares of Common Stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of the conditions set forth in Section 7.05 of the Plan.
4

7.Non-transferability.  Options may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.  No transfer of an Option shall be effective to bind the Company unless the Company shall have been furnished with written notice thereof and a copy of the will or such evidence as the Company may deem necessary to establish the validity of the transfer and the acceptance by the transferee of the terms and conditions of this Agreement and the Plan.
8.Administration.  This Agreement and the rights of the Optionee hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Optionee.  Any inconsistency between the Agreement and the Plan shall be resolved in favor of the Plan.
9.Miscellaneous.
(a)Change in Control.  In the event of a Change in Control:
(i)With respect to each outstanding Option that is assumed or substituted in connection with a Change in Control, in the event that an Optionee’s employment is terminated by the Company or any Affiliate thereof during the twenty-four (24) month period following such Change of Control, such Option shall become fully vested and exercisable.
(ii)With respect to each outstanding Option that is not assumed or substituted in connection with a Change in Control, immediately upon the occurrence of the Change of Control, such Option shall become fully vested and exercisable.
(iii)For purposes of this Section 9(a), an Option shall be considered assumed or substituted for if, following the Change in Control, the Option is of comparable value and remains subject to the same terms and conditions that were applicable to the Option immediately prior to the Change in Control except that, if the Option related to shares of Common Stock, the Option instead confers the right to receive common stock of the acquiring or ultimate parent entity.
(iv)Notwithstanding any other provision of this Agreement or the Plan, in the event of a Change in Control, the Committee may, in its discretion, provide that each Option shall, immediately upon the occurrence of a Change in Control, be cancelled in exchange for a payment in cash or securities in an amount equal to (i) the excess of the consideration paid per share of Common Stock in the Change in Control over the exercise or purchase price (if any) per share of the Common Stock subject to the 
4

Option multiplied by (ii) the number of shares of Common Stock granted under the Option.
(b)Adjustments.  If the Committee shall determine that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property),  recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other corporate transaction or event affects the Common Stock such that an adjustment is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of shares of Common Stock which thereafter may be made the subject of the Options, (ii) the number and type of shares of Common Stock subject to outstanding Options, and (iii) the exercise price with respect to any Option, or, if deemed appropriate, cancel outstanding Options and make provision for a cash payment to the holders thereof.
(c)Notices.  Any written notice required or permitted under this Agreement shall be deemed given when delivered personally, as appropriate either to the Optionee or to the General Counsel of the Company, delivered electronically, or when deposited in a United States Post Office as registered mail, postage prepaid, addressed as appropriate either to the Optionee at his or her address as he or she may designate in writing to the Company, or to the Attention: General Counsel, Credit Acceptance Corporation, at its headquarters office or such other address as the Company may designate in writing to the Optionee.
(d)Failure to Enforce Not a Waiver.  The failure of the Company to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.
(e)Governing Law.  All questions concerning the construction, validity and interpretation of this Agreement shall be governed by and construed according to the laws of the State of Michigan.
(f)Provision of Plan.  The Options provided for herein and granted pursuant to the Plan, and said Options and this Agreement are in all respects governed by the Plan and subject to all of the terms and provisions thereof, whether such terms and provisions are incorporated in this Agreement, solely by reference or expressly cited herein. If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement.
(g)Section 16 Compliance.  Notwithstanding any other provision of the Plan or this Agreement, if the Optionee is subject to Section 16 of the Exchange Act, then the 
4

Plan, the Option and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule.  To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.
(h)Code Section 409A.  The Option is intended to be exempt from the requirements of Section 409A of the Code and this Agreement shall be interpreted in accordance with such intent, Section 409A of the Code and Treasury Regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the awards are granted.  Notwithstanding any provision of the Plan or the Agreement to the contrary, in the event that the Committee determines that any award is subject to and may or does not comply with Section 409A of the Code, the Company may adopt such amendments to the award (without the Optionee’s consent) or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines are necessary or appropriate to (i) exempt the award from the application of Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to award, or (ii) comply with the requirements of Section 409A of the Code.

4

IN WITNESS WHEREOF, the Company, by its duly authorized officer, and the Optionee have executed this Agreement effective as of the date and year first above written.
CREDIT ACCEPTANCE CORPORATION
By:             
Its:             
OPTIONEE: [FirstName] [Middle] [Last Name]
            
(Signature)

7mtw-ex1021_269.htm

Exhibit 10.21

Addendum to the MANITOWOC COMPANY, INC.
OMNIBUS INCENTIVE PLAN and RESTRICTED STOCK UNIT AWARD AGREEMENT for Restricted Stock Units and Performance Shares Awards made to Participants in France

 

 

 

This Addendum applies to Restricted Stock Units and/or Performance Shares granted to French Participants as of 2020.

 

The Plan and the Agreement are restated as follows:

 

 

Part I: French Addendum to the 2013 Omnibus Incentive Plan

 

	
 
	
1.
	
Purpose

 

	
 
	
1.1
	
Purpose

 

The Manitowoc Company Inc. 2013 Omnibus Incentive Plan (the “Plan”) was adopted by the Board of Manitowoc (the “Company”) on February 26, 2013 and approved by the shareholders of the Company on May 7, 2013 for the benefit of officers, employees and directors of the Company and its Affiliates, including its French subsidiary(ies).  

 

Section 15 of the Plan authorizes the Board or the Committee to approve supplements to, or amendments, restatements or alternative version of the Plan. Therefore, the Board has approved this Addendum which sets out the terms and conditions governing Qualified Free Shares made under the Manitowoc Company 2013 Omnibus Incentive Plan to eligible Participants, tax residents in France, or otherwise selected by the Board for participation under this Addendum.

 

This Addendum contains the term of “Qualified Free Shares Awards” which exclusively refer to the award of Restricted Stock Units and/or Performance Shares, paid in Shares, granted in accordance with Section 8 of the Plan as amended and restated in the Addendum. For the avoidance of doubt these rules have been set in order to comply with the meaning of:

 

	
 
	
•
	
Articles L 225-197-1 to L 225-197-6 of the French Commercial Code for legal purposes;

	
 
	
•
	
Article 80 quaterdecies of the French General Tax Code for tax purposes in its drafting resulting from Article 61 of the Law n° 2016-1917 dated December 29, 2016 for finance for 2017;

	
 
	
•
	
Articles L. 242-1 6° and L.137-13 of the French Social Security Code for social security purposes.

 

Consequently, the terms “Qualified Free Shares”, “Qualified Free Shares Awards” and “Award” herein shall be construed and interpreted accordingly.

 

The present French Addendum is not applicable to awards paid in cash, and to awards of and/or Restricted Stock, Performance Units, Stock-Options or Stock Appreciation Rights. Consequently, dispositions of the Plan applicable to these are not applicable to Awards made further to the present Addendum. 

 

The adoption of this Addendum and corresponding modifications of the Plan comes within the spirit of section 15. The provisions of the Addendum shall not modify the number of Restricted Stock Units and/or Performance Shares initially awarded. 

 

 

 

 

The Plan administration and related transfers of shares shall be managed by any transfer agent and plan administrator duly authorized by the Board. 

 

For purposes of any Restricted Stock Units and/or Performance Shares granted under the Addendum, the terms of the Plan should be deemed implemented by reference to this Schedule. If no specific provision of this Schedule applies, the terms of the Award Agreement apply.

 

	
 
	
1.2
	
Definitions

 

	
 
	
(a)
	
In Section 19(b) of the Plan, the definition of “Affiliate” is amended as follows:

 

“Affiliate” means the following for the purpose of determining the company in which Eligible participant may be retained for the award of Restricted Stock Units and/or Performance Shares:

	
 
	
-
	
Those companies in which the Company holds, directly or indirectly, at least 10% (ten) of the voting rights or equity;

	
 
	
-
	
Those companies which hold, directly or indirectly, at least 10% (ten) of the voting rights or equity in the Company;

	
 
	
-
	
Those companies of which at least 50% (fifty) of the equity or voting rights are held, directly or indirectly, by a company which itself holds, directly or indirectly, at least 50% (fifty) of the equity of the Company.

 

 

	
 
	
(b)
	
Section 19(t) of the Plan, the definition of “Performance Shares” is amended as follows:

 

Performance Shares are subject to (i) a risk of forfeiture during the Vesting Period for Performance Shares as described in Section 8.2 (ii) of this Addendum and, if applicable, (ii) restrictions on transfer during the Share Sale Restriction Period, if any, as described in Section 8.3 of this Addendum, as determined by the Committee.

 

 

	
 
	
(c)
	
Section 19(y) of the Plan, the definition of “Restricted Stock Units” is amended as follows:

 

“Restricted Stock Units”, referring to additional incentive awards granted under the Restricted Stock Unit Award Agreement means a conditional right to receive Shares that are subject to (i) a risk of forfeiture during the Vesting Period for Restricted Stock Units, as described in Section 8.2 (i) of this Addendum, and (ii) restrictions on transfer during the Share Sale Restriction Period, as described in Section 8.3 of this Addendum, as determined by the Committee.

 

	
 
	
2.
	
Administration 

 

	
 
	
2.1
	
Section 2 “Administration” of the Plan is completed as follows:

 

Notwithstanding the above, no modification can be made to this Addendum which is disadvantageous to the Participants or which is in contradiction to the French Commercial Code and French Tax Code provisions, unless the modification is the result of a new law or regulation or any other obligatory disposition or ruling applied to the Company or any other Affiliated Company, having legal, fiscal or social implications. 

 

The terms of this Addendum shall be interpreted in accordance with the relevant provisions set forth by French tax and social laws, as well as the regulations issued by the French tax and social administrations. 

 

	
 
	
3.
	
Eligibility

 

	
 
	
3.1
	
Section 3 of the Plan « Eligibility » is completed as follows: 

 

Notwithstanding the above, Participants who are eligible to be granted Qualified Free Shares shall consist exclusively of employees with a valid employment contract (“contrat de travail”) at Grant Date, and/or Corporate Officers with or without an employment contract, such as listed below, of the Company or of the French Affiliate(s):

 

 

 

 

 

	
 
	
-
	
“Président du Conseil d’Administration” (Chairman of the Board);

	
 
	
-
	
“Directeur Général” (Managing Director) ;

	
 
	
-
	
“Directeurs Généraux Délégués“ (Delegated Managing Directors) ;

	
 
	
-
	
Members of the “Directoire” (Executive Directors);

	
 
	
-
	
“Gérant” of a “Société par Actions” (“Manager of a Joint Stock Company”);

	
 
	
-
	
“Président" (if a private individual) of a “Société par Actions Simplifiée”.

 

For the avoidance of doubt, officers and Directors of the Company, or of French Affiliate(s), are eligible Participants if they have a valid employment contract with one of these entities, or if they are one of the Corporate Officers listed above. No Qualified Free Shares can be granted under this Addendum to non-employee members of the “Conseil d’Administration” (the Board), consultants and advisors.

 

An Award may not be made to employees and/or Corporate Officers holding more that 10% of the issued share capital in the Company or who, after having received Shares under an Award granted hereunder, would hold more than 10% of the issued share capital in the Company. 

 

 

	
 
	
4.
	
Type of Awards; Assistance to Participants

 

The present Addendum does not amend this Section.

 

 

	
 
	
5.
	
Shares Reserved under this Plan

 

	
 
	
5.1
	
Section 5 (a) “Plan Reserve” is completed as follows:

 

Shares of the Company to be delivered under the Plan may be market repurchased shares (already existing shares) or newly issued shares.

 

For awards granted over already existing shares, corresponding shares shall be repurchased by the Company at least one day before the applicable Vesting Date. 

Shares acquired by the Participant as a result of the vesting of the Award shall be registered in the name of the Participant or be identifiable. They will be registered in the Company’s books in an individual account via the transfer agent. The Participants shall have the voting and dividends rights attached to the shares as of the date he/she becomes the holder of record of such common stock. 

 

 

	
 
	
5.2
	
Section 5 (d) of the Plan “Participant Limitations” is completed as follows:

 

Notwithstanding the provisions of the Plan, the total number of Shares that may be granted to the Participants under this Addendum shall not exceed 10% of the granting Company’s share capital at Grant Date. The unvested Awards and the Shares no longer subject to the Share Sale Restriction Period shall not be taken into account in order to determine the threshold of 10% of the granting Company’s share capital at Grant Date. 

 

 

	
 
	
6.
	
Options

 

Section 6 of the Plan does not apply to Awards made under this Addendum.

 

 

	
 
	
7.
	
Stock Appreciations Rights

 

Section 7 of the Plan does not apply to Awards made under this Addendum.

 

 

	
 
	
8.
	
Performance and Stock Awards

 

 

 

 

	
 
		

 

	
 
	
8.1
	
Section 8 (a) of the Plan is amended as follows: 

 

Qualified Free Shares Awards, to be granted under the present Addendum, shall exclusively be settled in Shares. 

 

Notwithstanding any provisions to the contrary, the Participant to whom is granted a Qualified Free Share Award shall have no shareholder rights, including the right to vote or to receive dividends, until the Qualified Frees Share Award is duly vested and the legal ownership of shares is transferred to the Participant. 

 

Once transferred, the Shares are subject to a Share Sale Restriction (please refer to Section 8.3 of the Addendum).

 

Restricted Stock Units and/or Performance Shares may be granted to eligible Participants, listed in Section 3 of the Addendum, selected by the Committee.

 

 

	
 
	
8.2
	
A new Section 8 (d) “Vesting Period” is added to the Plan rules:

 

Notwithstanding any other provision of the Plan to the contrary, the Participant shall only be entitled to receive payment of:

	
 
	
(i)
	
the Restricted Stock Units, once vested, upon Vesting Date, which shall occur:

	
 
	
o
	
up to one third (1/3rd) on the first (1st) anniversary of the Grant Date, 

	
 
	
o
	
up to one third (1/3rd) on the second (2nd) anniversary of the Grant Date and,

	
 
	
o
	
up to one third (1/3rd) on the third (3rd) anniversary of the Grant Date,

(the “Vesting Period for Restricted Stock Units”).

 

	
 
	
(ii)
	
the Performance Shares, once vested, upon Vesting Date, which shall occur on the third (3rd) anniversary of the Grant Date subject to the achievement of Performance Goals.

(the “Vesting Period for Performance Shares”).

 

The Vesting Period for Restricted Stock Units and the Vesting Period for Performance Shares are together referred to as the “Vesting Period”.

 

The Committee reserves the right to modify the Vesting Period in accordance with and to conform with, any amendments to the French Tax Code and/or provisions of the French Commercial Code governing Qualifying Free Share Awards. 

 

While different vesting schedule might be defined in the Award Agreement none of these schedules may have the effect to enable vesting prior vesting completion of the first anniversary of Award Date. 

 

By exception, in case of Participant’s death, the personal representative determined in accordance with the laws of descent and distribution shall be entitled to request the acquisition of the unvested Restricted Stock Units and/or Performance Shares within (6) months following this event. 

 

The Board of Directors has also revolved in his capacity of authorizing these awards that no specific rules would apply for Disability corresponding to the (second) 2nd or (third) 3rd categories of Article L.341-4 of the French Social Security Code1.

 

Therefore, in case of disability, the Section 13 of the Plan shall prevail.  

 

 

	
	 

	
1 
	
 For information purposes, please note that :

	
-
	
Second category stands for a disabled person unable to perform any professional activity;

	
-
	
Third category stands for a disabled person unable to perform any professional activity and requiring third party assistance in order to perform everyday life tasks.

 

 

 

 

 

	
 
	
8.3
	
A new Section 8 (e) “Share Sale Restriction imposed on Shares transferred to Participants” is added to the Plan rules:

 

As of the Vesting Date, Shares acquired pursuant to the Award after the Vesting Period for Restricted Stock Units on the first (1st) anniversary of the Grant Date (and before the second (2nd) anniversary of the Grant Date) shall be subject to a minimum of one (1) year share sale restriction commencing from the Vesting Date (the “Share Sale Restriction Period”), during which the Shares may not be sold other than in the circumstances set out at paragraphs (ii) and (iii) below. The Vesting Period and the Share Sale Restriction Period shall not be less than two (2) years in total for each Award of Shares. If applicable, the Share Sale Restriction Period will be indicated on the Award Agreement.

 

If the Participant leaves the employment of the Company, or any Affiliate(s), at any time after the Vesting Date, the Shares acquired shall not be freely transferable before the expiration of the Share Sale Restriction Period, if applicable.

 

	
 
	
(i)
	
In addition to the above Share Sale Restriction Period and notwithstanding any provision of the Plan to the contrary, the Shares shall not be sold during the following periods:

 

Notwithstanding any provision of the Plan to the contrary, the Shares shall not be sold during the following periods:

 

	
 
	
•
	
1° Within 30 calendar days prior to the announcement of an interim financial report or annual financial report that the Company shall make public;

 

	
 
	
•
	
2° by the members of the board of directors, supervisory board or executive committee or by the General Manager or Deputy General Manager or by a salaried employee having knowledge of a privileged information within the meaning of Article 7 of the EU Regulation n° 596/2014. 

 

	
 
	
•
	
Any other period resulting from any rule which prevent insider trading provided for by the Security and Exchange Commission (SEC) notably blackout periods, or the “Autorité des Marchés Financiers” (AMF), or any relevant securities law.

 

	
 
	
(ii)
	
In case of Participant’s death

 

Notwithstanding any provision of the Plan and the present Addendum to the contrary, in the event of the Participant’s death, the heirs shall not be subject to the Share Sale Restriction Period, the shares being transferable upon the Participant’s death.

 

	
 
	
(iii)
	
In case of Participant’s Disability of second (2nd) or third (3rd) category

 

By exception, if the Participant ceases his employment within the Company or any Affiliate(s) due to his Disability of second (2nd) or third (3rd) category within the meaning of Article L.341-4 of the French Social Security Code2, the Share Sale Restriction Period as defined in the herein Section shall be accelerated and deemed to have lapsed. The Participant shall dispose immediately of the Shares. Such dispositions shall not constitute a disqualified provision. 

 

For the avoidance of doubt, in any other case of disability, the Section 13 of the Plan shall prevail.  

 

 

	
 
	
8.4
	
A new Section 8 (f) “Restrictions for Corporate Officers” is added to the Plan rules:

 

Upon Grant Date, the Committee may either decide that Corporate Officers shall not sell Shares acquired through a Qualified Free Share Award prior to their removal from office (“révocation en qualité de mandataire social”) or determine the number of Shares which have to be held by Corporate Officers until their removal from office (“révocation en qualité de mandataire social”). The renewal of mandate does not constitute a “removal from office”. A removal from office must be valid pursuant to French laws and regulation. 

 

These restrictions are not applicable to Officers of any French Corporate Affiliates. In the reverse, these restrictions are applicable to the corporate officers of the issuing parent Company.

 

 

	
 
	
8.5
	
A new Section 8 (g) “Lack of consideration” is added to the Plan rules:

 

The Restricted Stock Units and Performance Shares granted under the Addendum are made at no cost for the Participant. No purchase price shall be determined by the Committee on the date such Award is made. 

 

	
 
	
9.
	
Annual Incentive Awards

 

Section 9 of the Plan does not apply to Awards made under this Addendum.

 

 

	
 
	
10.
	
Long-Term Incentive Awards

 

Section 10 of the Plan does not apply to Awards made under this Addendum.

 

 

	
 
	
11.
	
Dividends Equivalents Units

 

Section 11 of the Plan does not apply to Awards made under this Addendum.

 

 

	
 
	
12.
	
Other Stock-Based Awards

 

Section 12 of the Plan does not apply to Awards made under this Addendum.

 

 

	
 
	
13.
	
Effect of Termination on Awards

 

	
 
	
13.1
	
Section 13 (b) of the Plan “Death, Disability or Retirement of Participant” is completed as follows:

 

In case of death or disability of the Participant, all unvested Restricted Stock Units and/or Performance Shares vests immediately.

 

	
 
	
•
	
Death: his/her heirs may request, within a period of time not exceeding six (6) months from the date of death, the ownership of the unvested Qualified Free Shares. The Qualified Free Share Award is deemed to vest upon the ownership request date.

 

 

	
 
	
14.
	
Restrictions on Transfer, Encumbrance and Disposition

 

	
 
	
14.1
	
Section 14 of the Plan “Restrictions on Transfer, Encumbrance and Disposition” is amended as follows:

 

The Qualified Free Shares Awards granted under the Plan shall not be transferable during the Participant’s lifetime except in case of Participant’s death. In case of Participant’s death, the Qualified Free Shares Awards may be transferred and acquired by Participant’s legal heirs in accordance with provisions of Section 8 of the Addendum.

 

 

	
	 

	
2 
	
 For information purposes, please note that :

 

	
-
	
Second category stands for a disabled person unable to perform any professional activity;

	
-
	
Third category stands for a disabled person unable to perform any professional activity and requiring third party assistance in order to perform everyday life tasks.

 

 

 

 

	
 
	
15.
	
Termination and Amendment of Plan, Amendment, Modification or Cancellation of Awards

 

The present Addendum does not amend this Section.

 

 

	
 
	
16.
	
Taxes

 

	
 
	
16.1
	
Section 10 of the Plan “Taxes” is amended as follows:

 

Notwithstanding any provision to the contrary, in particular in Section 5 (b) of the Plan, no Shares may be used prior to the lapse of the Share Sale Restriction (if applicable) to satisfy any social security or tax withholding due for Awards granted further to the present Addendum.

 

The Company or its Affiliates shall have the right to require payment from a Participant to cover any applicable withholding or other employment taxes due with respect to Awards granted hereunder or shall have the right to deduct any applicable withholding or other employment taxes due from other compensation income paid to the Participant. 

 

The employer is responsible for withholding employees’ social security charges in the event that they are due. However, the Participants remain responsible for bearing them.

 

 

	
 
	
17.
	
Adjustment Provisions; Change of Control

 

	
 
	
17.1
	
Section 17 (a) of the Plan “Adjustments of Shares” is completed as follows:

 

Upon deciding to proceed to such adjustment, the Committee shall take all the necessary steps to determine the impact of such adjustment on the income tax and social security treatment of Awards made to French Participants and whenever possible, to maintain the tax neutrality of the operation on the treatment of the Award. The Committee shall accordingly inform the Participant concerned.

 

	
 
	
17.2
	
Section 17 (c) of the Plan is completed as follows: 

 

Upon occurrence of a Change of Control, the disposition of the Plan rules shall apply to French participants. The Committee, upon discretionary decision, may authorize the acceleration of the Vesting Date (referred to at Section 8.2 of this Addendum) and/or the cancellation of the Share Sale Restriction (referred to at Section 8.3 of this Addendum).

 

When however, a tax favorable treatment may be available further to French legislation (article 
80 bis of the French Tax Code) the Committee, upon discretionary decision, may give the choice to French Participants, but has no obligation to.

 

When the Company decides to exchange shares with no cash consideration, pursuant to applicable French legal and tax rules and notably, article L.225-197-1 § III of the French Commercial Code (as amended), then the dispositions of the Plan as well as the periods of Vesting and Share Sale Restriction if applicable will remain applicable to shares or rights received in exchange. 

 

 

	
 
	
18.
	
Miscellaneous

 

	
 
	
18.1
	
Section 18 (a) of the Plan “Other Terms and Conditions” is completed as follows:

 

Notwithstanding the above, the Participant shall not be entitled to any dividend attached to Shares by reference to a record date preceding the Vesting Date, or accumulated between the Grant Date and the Vesting Date.

 

 

Part II: French Addendum to the Restricted Stock Unit Award Agreement

 

 

 

 

 

The Compensation Committee of the Board of Directors of the Company (“The Committee”) has authorized the grant of additional incentive Restricted Stock Units to French employees pursuant to the Plan and the French Addendum of the Plan but subject to certain restrictions.   

 

This French Addendum to the Restricted Stock Unit Award Agreement shall be read in line with the terms and conditions of the Plan and the French Addendum of the Plan.

 

	
 
	
1.
	
Award of Restricted Stock Unit

 

The present Addendum does not amend this Section.

 

	
 
	
2.
	
Restricted Stock Unit

 

The present Addendum does not amend this Section.

 

	
 
	
3.
	
Settlement of Restricted Stock Unit

 

	
 
	
3.1
	
Section 3 of the Award Agreement is completed as follows: 

 

No fractional share of Stock shall be paid in cash to employees in France.

 

	
 
	
4.
	
No Rights as a Shareholder

 

The present Addendum does not amend this Section.

 

	
 
	
5.
	
Transferability

 

	
 
	
5.1
	
Section 5 of the Award Agreement “Transferability” is completed as follows:

 

The Restricted Stock Units granted to French Participants on the first (1st) anniversary of the Grant Date shall be subject to a Share Sale Restriction of one (1) year as from the Vesting Date as provided in Section 8.3 of the French Addendum to the Plan. The Vesting Period and the Share Sale Restriction Period shall not be less than two (2) years in total for each Award of Shares.

	
 
	
6.
	
Recoupment or Claw Back

 

 The present Addendum does not amend this Section.

 

	
 
	
7.
	
Withholding tax 

 

	
 
	
7.1
	
Section 7 (a) of the Award Agreement “Withholding of Tax” is completed as follows:

 

Restricted Stock Units granted to French Participants cannot be settled in cash.

 

	
 
	
8.
	
Interpretation

 

The present Addendum does not amend this Section.

 

	
 
	
9.
	
Successors and Assigns

 

The present Addendum does not amend this Section.

 

	
 
	
10.
	
Amendment or Modification

 

The present Addendum does not amend this Section.

 

 

 

 

 

	
 
	
11.
	
Governing Law

 

The present Addendum does not amend this Section.

 

	
 
	
12.
	
Counterparts

 

The present Addendum does not amend this Section.

 

	
 
	
13.
	
Unfunded Promise to Pay

 

The present Addendum does not amend this Section.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00321-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00321-of-00352.parquet"}]]