Document:

Exhibit

Exhibit 10.2

CONSTELLATION BRANDS
NON-QUALIFIED SAVINGS PLAN

Table of Contents
	
			
	 
	 
	Page

	Article I DEFINITIONS
	2

	1.1
	Account
	2

	1.2
	Affiliate
	2

	1.3
	Aggregated Plan
	2

	1.4
	Annual Bonus
	2

	1.5
	Annual Enrollment Materials.
	2

	1.6
	Beneficiary
	2

	1.7
	Benefit Benchmarks
	2

	1.8
	Board
	2

	1.9
	Change in Control Event
	2

	1.10
	Class Year Account
	3

	1.11
	Code
	3

	1.12
	Compensation
	3

	1.13
	Compensation Deferral Agreement
	3

	1.14
	Compensation Deferrals
	4

	1.15
	Disability
	4

	1.16
	Discretionary Credits
	4

	1.17
	Distributable Event
	4

	1.18
	Domestic Partner
	4

	1.19
	Effective Date
	4

	1.20
	Eligible Individual
	4

	1.21
	ERISA
	4

	1.22
	Income Inclusion Under Code Section 409A
	5

	1.23
	Interim Distribution Date
	5

	1.24
	Investment Credits and Debits
	5

	1.25
	Matching Credits
	5

	1.26
	Normal Retirement Age
	5

	1.27
	Participant
	5

	1.28
	Permitted Holder
	5

	1.29
	Plan
	5

	1.30
	Plan Guide
	5

	1.31
	Plan Administrator
	5

	1.32
	Plan Sponsor
	6

	1.33
	Qualified Plan
	6

	1.34
	Regular Salary
	6

	1.35
	Separation from Service
	6

	1.36
	Specified Employee
	6

	1.37
	Spouse
	7

	1.38
	Taxable Year
	7

	1.39
	Trust
	7

	1.40
	Trustee
	7

	1.41
	Unforeseeable Emergency
	7

	1.42
	Valuation Date
	7

	
			
	Article II ELIGIBILITY AND PARTICIPATION
	7

	2.1
	Eligibility
	7

	2.2
	Participation
	7

	2.3
	Compensation Deferral Agreement
	7

	2.4
	Matching Credits
	8

	2.5
	Discretionary Credits
	8

	2.6
	Establishing a Reserve for Plan Liabilities
	9

	Article III PARTICIPANT ACCOUNTS AND REPORTS
	9

	3.1
	Establishment of Accounts
	9

	3.2
	Account Maintenance
	9

	3.3
	Investment Credits and Debits
	9

	3.4
	Participant Statements
	10

	Article IV WITHHOLDING OF TAXES
	11

	4.1
	Withholding from Compensation
	11

	4.2
	Withholding from Benefit Distributions
	11

	Article V VESTING
	11

	5.1
	Vesting
	11

	Article VI PAYMENTS
	11

	6.1
	Benefits
	11

	6.2
	Timing of Distribution Elections
	12

	6.3
	Separation from Service Payment
	13

	6.4
	Interim Distribution Date Payments
	13

	6.5
	Death Benefit
	14

	6.6
	Disability Benefit
	14

	6.7
	Payment upon Change in Control Event
	14

	6.8
	Unforeseeable Emergency Distribution
	15

	6.9
	Payment upon Income Inclusion Under Section 409A
	15

	6.10
	Beneficiary Designation
	15

	6.11
	Claims Procedure
	16

	Article VII CANCELLATION OF DEFERRALS
	20

	7.1
	Unforeseeable Emergency
	20

	Article VIII PLAN ADMINISTRATION
	21

	8.1
	Appointment
	21

	8.2
	Duties of Plan Administrator
	21

	8.3
	Plan Sponsor
	21

	8.4
	Administrative Fees and Expenses
	22

	8.5
	Plan Administration and Interpretation
	22

	8.6
	Powers, Duties, Procedures
	22

	8.7
	Information
	22

	8.8
	Indemnification of Plan Administrator
	22

	
			
	8.9
	Plan Administration Following a Change in Control Event
	22

	Article IX TRUST FUND
	23

	9.1
	Trust
	23

	9.2
	Unfunded Plan
	23

	9.3
	Assignment and Alienation
	23

	Article X AMENDMENT AND PLAN TERMINATION
	23

	10.1
	Amendment
	23

	10.2
	Plan Termination
	24

	10.3
	Effect of Payment
	24

	Article XI MISCELLANEOUS
	24

	11.1
	Total Agreement
	24

	11.2
	Employment Rights
	24

	11.3
	Non-Assignability
	24

	11.4
	Binding Agreement
	24

	11.5
	Furnishing Information
	25

	11.6
	Compliance with Code Section 409A
	25

	11.7
	Insurance
	25

	11.8
	Governing Law
	25

	11.9
	Headings and Subheadings
	25

PREAMBLE

Constellation Brands, Inc. hereby establishes the Constellation Brands Non-Qualified Savings Plan, set forth herein, which is an unfunded non-qualified deferred compensation plan for a select group of management and/or highly compensated employees.  Under the terms of the Plan, Eligible Individuals may elect to defer receipt of a portion of their Compensation to a later Taxable Year.
Participants shall have no right, either directly or indirectly, to anticipate, sell, assign or otherwise transfer any benefit accrued under the Plan.  In addition, no Participant shall have any interest in any assets set aside as a source of funds to satisfy benefit obligations under the Plan.  Participants shall have the status of general unsecured creditors of the Plan Sponsor, and the Plan shall constitute an unsecured promise by the Plan Sponsor to make benefit payments in the future.
The Plan is intended to be “a plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees” within the meaning of ERISA Sections 201(2) and 301 (a)(3), is intended to comply with the requirements of Code Section 409A and the regulations and binding guidance issued thereunder to avoid adverse tax consequences, and shall be interpreted and administered to the extent possible in a manner consistent with that intent.

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ARTICLE I

DEFINITIONS

		
	1.1
	Account.  The bookkeeping account or accounts established for each Participant to record his or her benefit under the Plan.

		
	1.2
	Affiliate.  Any corporation or business entity that would be considered a single employer with the Plan Sponsor pursuant to Code Sections 414(b) or 414(c).

		
	1.3
	Aggregated Plan.  A nonqualified deferred compensation plan that is required to be aggregated and treated with the Plan as a single plan under Code Section 409A.

		
	1.4
	Annual Bonus.  The cash compensation paid to a Participant under the Plan Sponsor’s annual bonus program, including amounts excludible from gross income that are contributed by the Participant on a pre-tax basis to a salary reduction retirement or welfare plan (including amounts contributed to this Plan).

		
	1.5
	Annual Enrollment Materials.  For any Taxable Year, the Plan Guide, Compensation Deferral Agreement, and any other forms, documents, or other materials concerning the terms of the Plan.

		
	1.6
	Beneficiary.  An individual, individuals, trust or other entity designated by the Participant to receive his or her benefit in the event of the Participant’s death.  If more than one Beneficiary survives the Participant, the Participant’s benefit shall be divided equally among all such Beneficiaries, unless otherwise provided in the Beneficiary Designation form.  Nothing herein shall prevent the Participant from designating primary and contingent Beneficiaries.

		
	1.7
	Benefit Benchmarks.  Hypothetical investment funds or benchmarks made available to Participants by the Plan Administrator for purposes of valuing benefits under the Plan.

		
	1.8
	Board.  The Board of Directors of the Plan Sponsor.

		
	1.9
	Change in Control Event.  A Change in Control Event is a “Change in Control” under the definition set forth below, provided that such event is also “a change in control event” within the meaning of Code Section 409A. 

“Change in Control” means
		
	(a)
	the consummation of:

		
	(i)
	any consolidation or merger of the Plan Sponsor in which the Plan Sponsor is not the continuing or surviving corporation or pursuant to which any shares of Class A Stock or Class 1 Stock of the Plan Sponsor are to be converted into cash, securities or other property, provided that the consolidation or merger is not with a corporation which was a direct or

2

indirect wholly‐owned subsidiary of the Plan Sponsor or one of its Affiliates immediately before the consolidation or merger; or

		
	(ii)
	any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Plan Sponsor; or

		
	(b)
	the consummation of a complete liquidation or dissolution of the Plan Sponsor; or

		
	(c)
	any person (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) other than any of the Permitted Holders becoming the beneficial owner (within the meaning of Rule 13d‐3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of 35% or more of the voting control of the Plan Sponsor’s then outstanding common stock, provided that such person shall not be a wholly‐owned subsidiary of the Plan Sponsor immediately before it becomes such 35% beneficial owner of voting control; or

		
	(d)
	individuals who constitute the Incumbent Board cease for any reason to constitute at least a majority of the Plan Sponsor’s Board of Directors (for this purpose “Incumbent Board” means at any time those persons who are then members of the Board of Directors of the Plan Sponsor and who either (i) are members of the Plan Sponsor’s Board of Directors on the date hereof, or (ii) have been elected, or have been nominated for election by the Plan Sponsor’s stockholders, by the affirmative vote of at least two-thirds of the directors comprising the Incumbent Board at the time of such election or nomination (either by a specific vote or by approval of the proxy statement of the Plan Sponsor in which such person is named as a nominee for director without objection to such nomination)).

		
	1.10
	Class Year Account.  The balance credited to a Participant’s or Beneficiary’s Account for a Taxable Year, including: (a) the Participant’s Compensation Deferrals relating to Regular Salary paid for services performed during the Taxable Year; (b) Compensation Deferrals relating to the Annual Bonus paid for services performed for the Plan Sponsor’s fiscal year commencing during the Taxable Year: (c) Matching Credits and Discretionary Credits, if any, with respect to amounts earned for such Taxable Year even if paid in a subsequent year (i.e., the Annual Bonus); and (d) Investment Debits and Credits allocable to the Class Year Account (as determined by the Plan Sponsor, in its discretion).

		
	1.11
	Code.  The Internal Revenue Code of 1986, as amended from time to time.  Reference to any section or subsection of the Code includes reference to any comparable or succeeding provisions of any legislation which amends, supplements or replaces such section or subsection.

		
	1.12
	Compensation.  A Participant’s Regular Salary and Annual Bonus and excluding all other forms of compensation, including, without limitation, amounts paid under this Plan.

		
	1.13
	Compensation Deferral Agreement.  The written or electronic deferral agreement in such form and subject to such terms as specified by the Plan Administrator.  Such agreement is

3

between an Eligible Individual and the Plan Sponsor to defer Eligible Individual’s receipt of Compensation.  Such agreement shall state the deferral amount or percentage of Compensation to be withheld from the Eligible Individual’s Compensation, and the form and timing of the Participant’s deferral elections.

		
	1.14
	Compensation Deferrals.  That portion of a Participant’s Compensation which is deferred under the terms of this Plan.

		
	1.15
	Disability.  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, and for which the Participant is receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the Participant’s Plan Sponsor; provided that such condition also satisfies the requirements of a disability under Code Section 409A. 

		
	1.16
	Discretionary Credits.  Amounts described in Section 2.5.

		
	1.17
	Distributable Event.  The events entitling a Participant or Beneficiary to a payment of benefits under the Plan, which shall be: Separation from Service; death; Disability; the occurrence of an Interim Distribution Date; the occurrence of an Unforeseeable Emergency; the occurrence of a Change in Control Event; and Income Inclusion Under Code Section 409A.

		
	1.18
	Domestic Partner.  An individual who satisfies that requirements for being treated as a Participant’s domestic partner under the Plan Sponsor’s corporate policies.  The Plan Administrator in its sole discretion shall determine whether an individual meets the requirements of a Domestic Partner and shall have the right to request documentary proof of the existence of a Domestic Partner relationship, which proof may include, but is not limited to, a joint checking account, a joint mortgage or lease, driver’s licenses showing the same address, the registration of a domestic partnership or civil union in states that recognize such relationships or such other proof as the Plan Administrator may determine.

		
	1.19
	Effective Date.  The date as of which the Plan becomes effective, which generally is January 1, 2019, provided that the terms of the Plan shall apply to Taxable Years commencing on and after January 1, 2019, and shall apply to Regular Salary earned for Taxable Years beginning on or after January 1, 2019 and Annual Bonuses earned for fiscal years of the Plan Sponsor beginning on or after March 1, 2019.

		
	1.20
	Eligible Individual.  Unless otherwise specified by the Plan Administrator, including in the Annual Enrollment Materials for a particular Taxable Year, an employee of the Plan Sponsor who: (i) holds a position of Vice President or higher; and (ii) is paid at a salary grade of 21 or higher.  Only those individuals who are part of a select group of management and/or highly compensated individuals, as determined by the Plan Sponsor in its sole discretion, may be designated as Eligible Individuals under the Plan.

		
	1.21
	ERISA.  The Employee Retirement Income Security Act of 1974, as amended.  Reference to any section or subsection of ERISA includes reference to any comparable or

4

succeeding provisions of any legislation which amends, supplements or replaces such section or subsection.

		
	1.22
	Income Inclusion Under Code Section 409A.  Shall have the meaning set forth in Section 6.9.

		
	1.23
	Interim Distribution Date.  April 1st of the year specified by the Participant in the Participant’s Compensation Deferral Agreement as the year of payment for an in-service distribution date; provided that such year is at least three years after the first day of the Taxable Year in which the services giving rise to the Compensation Deferrals, Matching and/or Discretionary Credits subject to the Interim Distribution Date are to be performed. 

		
	1.24
	Investment Credits and Debits.  Bookkeeping adjustments to Participants’ Accounts to reflect the hypothetical interest, earnings, appreciation, losses and depreciation that would be accrued or realized if assets equal to the value of such Accounts were invested in accordance with such Participants’ Benefit Benchmarks.

		
	1.25
	Matching Credits.  Credits described in Section 2.4.

		
	1.26
	Normal Retirement Age.  The date the Participant attains at least age 60 with at least 5 years of service with the Plan Sponsor.

		
	1.27
	Participant.  An Eligible Individual who is currently deferring a portion of his or her Compensation under this Plan, or who is currently eligible for Matching Credits or Discretionary Credits, or an Eligible Individual or former Eligible Individual who is entitled to the payment of benefits under the Plan.

		
	1.28
	Permitted Holder.  (a) Marilyn Sands, her descendants (whether by blood or adoption), her descendants’ spouses, her siblings, the descendants of her siblings (whether by blood or adoption), Hudson Ansley, Lindsay Caleo, William Caleo, Courtney Winslow, or Andrew Stern, or the estate of any of the foregoing individuals, or The Sands Family Foundation, Inc., (b) rusts which are for the benefit of any combination of the individuals and foundation described in clause (a), or any trust for the benefit of any such trust, or (c) partnerships, limited liability companies or any other entities which are controlled by any combination of the individuals described in clause (a) or the estate of any such individuals, The Sands Family Foundation, Inc., a trust referred to in the foregoing clause (b), or an entity that satisfies the conditions of this clause (c).

		
	1.29
	Plan.  The Constellation Brands Non-Qualified Savings Plan established by the Plan Sponsor as set forth herein, which may be amended from time to time.

		
	1.30
	Plan Guide.  For any Taxable Year, the plan guide concerning the terms of Compensation Deferrals, and, if applicable, any Matching Credits or Discretionary Credits.

		
	1.31
	Plan Administrator.  The Human Resources Committee of the Board, or such other committee appointed by the Board of the Plan Sponsor to administer the Plan as provided herein.  For avoidance of doubt, in no event shall a Participant who is a member of such

5

committee be permitted to make decisions regarding his or her benefits under this Plan; rather, such decisions shall be made by the other members of any committee appointed to act as the Plan Administrator.  If a Change in Control Event occurs with respect to the Plan Sponsor, the existing Plan Administrator shall be removed, and a new Plan Administrator shall be appointed as provided in Section 8.9.

		
	1.32
	Plan Sponsor.  Constellation Brands, Inc., including any successor to such corporation or business that assumes the obligations of such corporation or business.  Solely for purposes of identifying Eligible Individuals, the term Plan Sponsor shall include an entity that is an Affiliate of the Plan Sponsor, and is designated as a Participating Affiliate on Exhibit A attached hereto.  Only Constellation Brands, Inc. shall have the power to amend this Plan, appoint the Plan Administrator, or exercise any of the powers described in Section 8.3 hereof.

		
	1.33
	Qualified Plan.  The Constellation Brands, Inc. 401(k) and Profit Sharing Plan.

		
	1.34
	Regular Salary.  The Participant’s base salary paid by the Plan Sponsor, including amounts excludible from gross income that are contributed by the Participant on a pre-tax basis to a salary reduction retirement or welfare plan (including amounts contributed to this Plan).

		
	1.35
	Separation from Service.  A Participant shall have a Separation from Service under the circumstances described below; provided that such separation also qualifies as “separation from service” within the meaning of Code Section 409A.

A Participant who is a common law employee has a Separation from Service if the Participant voluntarily or involuntarily terminates employment with the Plan Sponsor and all Affiliates.  A termination of employment occurs if the facts and circumstances indicate that the Plan Sponsor and the Participant reasonably anticipate that no further services will be performed after a certain date or that the level of bona fide services the Participant will perform after such date (whether as an employee or an independent contractor) will decrease to no more than 20 percent of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services if the Participant has been providing services for less than 36 months).  Notwithstanding the foregoing, the employment relationship is treated as continuing while the Participant is on military leave, sick leave or other bona fide leave of absence if the period of leave does not exceed 6 months, or if longer, provided the Participant retains the right to reemployment with the Plan Sponsor or an Affiliate under an applicable statute or contract.
		
	1.36
	Specified Employee.  A key employee (as defined in Code Section 416(i) without regard to paragraph (5) thereof) of a Plan Sponsor or its Affiliates.  A Participant is a key employee if the Participant meets the requirements of Code Section 416(i)(1)(A)(i), (ii) or (iii) (applied in accordance with the regulations thereunder and disregarding Code Section 416(i)(5)) at any time during the 12-month period ending each December 31.  If a Participant is a key employee at any time during the 12-month period ending on such December 31, the Participant is treated as a Specified Employee for the 12-month period

6

beginning on the following April 1.  Specified Employees shall be determined consistent with the requirements of Code Section 409A.

		
	1.37
	Spouse.  The individual to whom a Participant is married, or was married in the case of a deceased Participant who was married at the time of his or her death.

		
	1.38
	Taxable Year.  The 12-consecutive-month period beginning each January 1 and ending each December 31.

		
	1.39
	Trust.  The agreement, if any, between the Plan Sponsor and the Trustee under which assets may be delivered by the Plan Sponsor to the Trustee to offset liabilities assumed by the Plan Sponsor under the Plan.  Any assets held under the terms of the Trust shall be the exclusive property of the Plan Sponsor and shall be subject to the creditor claims of the Plan Sponsor with respect to whom such Trust has been established.  Participants shall have no right, secured or unsecured, to any assets held under the terms of the Trust.

		
	1.40
	Trustee.  The institution named by the Plan Sponsor in the Trust agreement, if any, and any corporation which succeeds the Trustee by merger or by acquisition of assets or operation of law.

		
	1.41
	Unforeseeable Emergency.  A severe financial hardship to the Participant resulting from an illness or accident of the Participant or the Participant’s Spouse, Beneficiary or dependent (as defined in Code Section 152 without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B)), loss of the Participant’s property due to casualty or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  An Unforeseeable Emergency shall be determined consistent with the requirements of Code Section 409A.

		
	1.42
	Valuation Date.  The date on which Participant Accounts under the Plan are valued.  The Valuation Date shall be each business day of the Taxable Year on which the New York Stock Exchange and, if a Trust has been established in connection with the Plan, the Trustee are open for business.

ARTICLE II

ELIGIBILITY AND PARTICIPATION

		
	2.1
	Eligibility.  Eligible Individuals, as designated by the Plan Sponsor, may participate in the Plan.  Generally, Eligible Individuals may commence participating in the Plan for Taxable Years commencing after they become Eligible Individuals.  

		
	2.2
	Participation.  An Eligible Individual’s participation in the Plan is subject to the Plan Administrator providing written notification to such Eligible Individual of his or her eligibility to participate in the Plan.

		
	2.3
	Compensation Deferral Agreement.  In order to defer Compensation under the Plan for a given Taxable Year, an Eligible Individual must enter into a Compensation Deferral 

7

Agreement with the Plan Sponsor authorizing the deferral of a portion of the Participant’s Compensation for such Taxable Year.

Upon receipt of a properly completed and executed Compensation Deferral Agreement, the Plan Administrator shall notify the Plan Sponsor to withhold that portion of the Participant’s Compensation specified in the Agreement.  In no event will the Participant be permitted to defer more than 75% of the Participant’s Regular Salary or 100% of the Participant’s Annual Bonus.
Subject to Section 7.1, the Compensation Deferral Agreement shall remain in effect for the duration of the Taxable Year to which it relates.  The Compensation Deferral Agreement shall not remain in effect for subsequent Taxable Years.  Rather, Participants must make new elections for each year.
A Compensation Deferral Agreement must be completed and returned to the Plan Sponsor prior to the first day of the Taxable Year in which services are performed for the Compensation deferred and shall be irrevocable except as otherwise provided hereunder.
		
	2.4
	Matching Credits.  Subject to the requirements of Code Section 409A, the Plan Sponsor may credit the Account of a Participant with Matching Credits.  For each Taxable Year, the Matching Credit will be equal to the difference between (a) the matching contribution that would have been credited to the Participant’s account under the Qualified Plan for the applicable year if the Participant’s contributions to the Qualified Plan had included Compensation Deferrals made by the Participant under this Plan for such year but otherwise subject to the applicable limitations of the Qualified Plan such as the maximum compensation limitation of Code Section 401(a)(17) and the maximum annual addition limitation of Code Section 415, and (b) the matching contribution actually credited to the Participant’s account under the Qualified Plan for the year.  The Matching Credit will generally be made in the first quarter of the year following the year to which the Matching Credit relates; provided that such Credit will be made as soon as administratively practicable after the Participant’s Separation from Service, death or Disability if such date is sooner.  Notwithstanding the forgoing, a Participant will receive a Matching Credit under this Plan for a Taxable Year only if the Participant has made the maximum salary reduction contributions permitted under the Qualified Plan during the applicable year.

		
	2.5
	Discretionary Credits.  Subject to the requirements of Code Section 409A, the Plan Sponsor may credit the Account of a Participant with Discretionary Credits.  For each Taxable Year, the Discretionary Credit will be equal to the difference between (a) the Safe Harbor Employer Basic Contributions, as defined under the Qualified Plan, that would have been credited to the Participant’s account under the Qualified Plan for the applicable year if (i) the Participant’s compensation included Compensation Deferrals made by the Participant under this Plan for such year; and (ii) the contribution under the Qualified Plan was calculated without regard to Code limitations, including the maximum compensation limitation of Code Section 401(a)(17) and/or the maximum annual addition limitation of Code Section 415, and (b) the Safe Harbor Employer Basic Contributions actually credited to the Participant’s account under the Qualified Plan for the year.

8

This Discretionary Credit will generally be made in the first quarter of the year following the year to which the Discretionary Credit relates; provided that such Credit will be made as soon as administratively practicable after the Participant’s Separation from Service, death or Disability if such date is sooner.

		
	2.6
	Establishing a Reserve for Plan Liabilities.  The Plan Sponsor may, but is not required to, establish one or more Trusts to which the Plan Sponsor may transfer such assets as the Plan Sponsor determines in its sole discretion to assist in meeting its obligations under the Plan.  Any such assets shall be the property of the Plan Sponsor and remain subject to the claims of the Plan Sponsor’s creditors, to the extent provided under any Trust established with respect to such Plan Sponsor.  The Trustee shall have no duty to determine whether the amounts forwarded by the Plan Sponsor are the correct amount or that they have been transmitted in a timely manner.

ARTICLE III

PARTICIPANT ACCOUNTS AND REPORTS

		
	3.1
	Establishment of Accounts.  The Plan Administrator shall establish and maintain individual recordkeeping Accounts, Class Year Accounts and subaccounts, as applicable, on behalf of each Participant for purposes of determining each Participant’s benefits under the Plan.  A Participant’s Account does not represent the Participant’s ownership of, or any ownership interest in, any assets which may be set aside to satisfy the Plan Sponsor’s obligations under the Plan.

		
	3.2
	Account Maintenance.  As of each Valuation Date, the Plan Administrator shall credit each Participant’s Accounts with the following:

		
	(a)
	An amount equal to any Compensation Deferrals made by the Participant since the last Valuation Date;

		
	(b)
	An amount equal to any Matching Credits and/or Discretionary Credits, and any forfeitures, if applicable, since the last Valuation Date; and

		
	(c)
	An amount equal to deemed Investment Credits under Section 3.3 since the last Valuation Date.

As of each Valuation Date, the Plan Administrator shall debit each Participant’s Accounts with the following:
		
	(d)
	An amount equal to any distributions from the Plan to the Participant or Beneficiary since the last Valuation Date; and

		
	(e)
	An amount equal to deemed Investment Debits under Section 3.3 below since the last Valuation Date.

		
	3.3
	Investment Credits and Debits.  The Accounts of Participants shall be adjusted for Investment Credits and Debits in accordance with this Section 3.3.

9

Participants shall have the right to specify one or more Benefit Benchmarks in which their Compensation Deferrals, Matching Credits and Discretionary Credits shall be deemed to be invested.  The Benefit Benchmarks shall be utilized solely for purposes of adjusting their Accounts in accordance with procedures adopted by the Plan Administrator.  The Plan Administrator shall provide the Participant with a list of the available Benefit Benchmarks.  From time to time, in the sole discretion of the Plan Administrator, the Benefit Benchmarks available within the Plan may be revised.  All Benefit Benchmark selections must be denominated in whole percentages unless the Plan Administrator determines that lower increments are acceptable.  A Participant may make changes in the manner in which future Compensation Deferrals, Matching Credits and/or Discretionary Credits are deemed to be invested among the various Benefit Benchmarks available under the Plan in accordance with procedures established by the Plan Administrator.  A Participant may re-direct the manner in which earlier Compensation Deferrals, Matching Credits and/or Discretionary Credits, as well as any appreciation (or depreciation), are deemed to be invested among the Benefit Benchmarks available under the Plan in accordance with procedures established by the Plan Administrator.
As of each Valuation Date, the Plan Administrator shall adjust the Accounts of each Participant for interest, earnings or appreciation (less losses and depreciation) with respect to the then balance of the Participant’s Account equal to the actual results of the Participant’s deemed Benefit Benchmark elections.
All notional acquisitions and dispositions of Benefit Benchmarks which occur within a Participant’s Account, pursuant to the terms of the Plan, shall be deemed to occur at such times as the Plan Administrator shall determine to be administratively feasible in its sole discretion, and the Participant’s Account shall be adjusted accordingly.  Accordingly, if a distribution or reallocation must occur pursuant to the terms of the Plan and all or some portion of the Account must be valued in connection with such distribution or reallocation (to reflect Investment Credits and Debits), the Plan Administrator may in its sole discretion, unless otherwise provided for in the Plan, select a date or dates which shall be used for valuation purposes.
Notwithstanding anything to the contrary, any Investment Credits or Debits made to any Participant’s Account following a Plan Termination or a Change in Control Event shall be made in a manner no less favorable to Participants than the practices and procedures employed under the Plan, or as otherwise in effect, as of the date of the Plan Termination or the Change in Control Event.
Notwithstanding the Participant’s deemed Benefit Benchmark elections under the Plan, the Plan Sponsor shall be under no obligation to actually invest any amounts in such manner, or in any manner, and such Benefit Benchmark elections shall be used solely to determine the amounts by which the Participant’s Account shall be adjusted under this Article III.
		
	3.4
	Participant Statements.  The Plan Administrator shall provide each Participant with a statement showing the credits to and debits from his or her Account since the last statement date.  Such statement shall be provided to Participants as soon as

10

administratively feasible following the end of each Taxable Year and on such other dates as agreed to by the Plan Sponsor and the party maintaining the Participant’s Account records.

ARTICLE IV

WITHHOLDING OF TAXES

		
	4.1
	Withholding from Compensation.  For any Taxable Year in which Compensation Deferrals, Matching Credits and/or Discretionary Credits are made to or vested within the Plan (as applicable), the Plan Sponsor shall withhold the Participant’s share of income, FICA and other employment taxes from the portion of the Participant’s Compensation not deferred.  If deemed appropriate by the Plan Sponsor, all or any portion of a benefit under the Plan may be distributed in certain instances where necessary to facilitate compliance with applicable withholding requirements to the extent such distribution would not result in adverse tax consequences under Code Section 409A.  The amount of any such distribution shall not exceed the amount necessary to comply with applicable withholding requirements.

		
	4.2
	Withholding from Benefit Distributions.  The Plan Sponsor (or the Trustee of the Trust, as applicable) shall withhold from any payments made to a Participant under this Plan all federal, state and local income, employment and other taxes required to be withheld by the Plan Sponsor, in connection with such payments, in amounts and in a manner to be determined in the sole discretion of the Plan Sponsor.

ARTICLE V

VESTING

		
	5.1
	Vesting.  A Participant shall be immediately vested in (i.e., shall have a non-forfeitable right to) all Compensation Deferrals. Unless otherwise set forth in the Annual Enrollment Materials for a Taxable Year, a Participant shall also be immediately vested in all Matching Credits and Discretionary Credits credited to his or her Account, including any Investment Credits or Debits associated therewith.

ARTICLE VI

PAYMENTS

		
	6.1
	Benefits.  Except as otherwise provided under the Plan, a Participant’s or Beneficiary’s benefit payable under the Plan shall be the value of the Participant’s Class Year Accounts at the time a Distributable Event occurs with respect to such Participant or Beneficiary.  In no event will a Participant’s right to a benefit under this Plan give such Participant a secured right or claim on any assets set aside by the Plan Sponsor to meet its obligations under the Plan.  All payments from the Plan shall be subject to applicable tax withholding and shall commence (or be fully paid, in the event a lump sum form of distribution was

11

selected) no later than ninety (90) days after the occurrence of the Distributable Event, except as otherwise provided herein.  

		
	6.2
	Timing of Distribution Elections.

		
	(a)
	Initial Elections.  The Participant shall elect the form and timing of payment for each Class Year Account at the time the Participant submits (or is required to submit, in accordance with Section 2.3) his or her Compensation Deferral Agreement for the Taxable Year for which the Class Year Account is established.  Such elections must be made consistent with the forms, rules and procedures specified by the Plan Administrator, as well as the requirements of Code Section 409A.

At the time specified above, the Participant may elect for each of his or her Class Year Accounts to receive a benefit in the form of a lump sum distribution or annual installment payments over a period of five (5) or ten (10) years commencing as of the earlier of:
		
	(i)
	The Interim Distribution Date specified by the Participant; or

		
	(ii)
	The Participation’s Separation from Service.

Notwithstanding the Participant’s election, in the event of the Participant’s Separation from Service prior to the Participant’s Normal Retirement Age, death, or Disability, or the occurrence of a Change in Control Event, all amounts credited to each Participant’s Account shall be paid to the Participant in a lump sum within ninety (90) days after occurrence of such Distributable Events. Additionally, as noted below, special distribution payments may also be made in the event of an Unforeseeable Emergency or as a consequence of an Income Inclusion Under Section 409A.
		
	(b)
	Subsequent Changes in Time and Form of Payment.  Subject to the requirements of Code Section 409A, a Participant may elect to change the time or form of payment of amounts distributable upon a Separation from Service or elect to change the time of payment of amounts distributable upon an Interim Distribution Date, provided, however, that any such election shall be effective only if:

		
	(i)
	the election does not accelerate the time or schedule of any payment within the meaning of Code Section 409A;

		
	(ii)
	the election does not take effect until at least twelve 12 months after the date on which the election is made;

		
	(iii)
	the first payment with respect to which such election is made is deferred for a period of 5 years from the date such payment would otherwise have been made; and

12

		
	(iv)
	for a change to a payment made upon an Interim Distribution Date, such election is made at least 12 months before such Interim Distribution Date.

The Plan Administrator shall have sole and absolute discretion to decide whether such a request shall be approved but may approve no more than one such request for any Participant with respect to any Class Year Account.
		
	(c)
	Failures to Elect.  If a Participant fails to properly elect the form or time of distribution for his or her Class Year Account, or cannot make a timely election under Code Section 409A, the Participant shall be deemed to have elected to receive his or her Class Year Account in a single lump sum commencing on his or her Separation from Service.

		
	6.3
	Separation from Service Payment.  In the event of a Participant’s Separation from Service, the Participant’s Class Year Account shall be paid in the form of a cash lump sum or, if elected by the Participant and the Separation from Service occurs after the Participant’s Normal Retirement Age, in annual cash payments (over a period of five (5) or ten (10) years) as elected for the Class Year Account.  For purposes of Code Section 409A, installment payments shall be treated as a single payment.  If applicable, the initial installment shall be based on the value of the Participant’s Class Year Account, measured on the date of his or her Separation from Service, and shall be equal to 1/n (where ‘n’ is equal to the total number of annual benefit payments not yet distributed).  Subsequent installment payments shall be computed in a consistent fashion, with the measurement date being the anniversary of the original measurement date and subsequent installment payments being made within 90 days of such anniversary date.  Election of the form of the Separation from Service payment with respect to a Class Year Account must be provided to the Plan Administrator at the time required by Section 6.2 of this Plan.  The Participant’s election of a Separation from Service payment form is irrevocable, except as provided in Section 6.2(b)

In the event a Participant incurs a Separation from Service before the Participant’s Normal Retirement Age, all of the Participant’s Class Year Accounts shall be paid in the form of a lump sum payment within ninety (90) days after the Separation from Service, notwithstanding any election that the Participant has made.
Notwithstanding the foregoing, a distribution resulting from a Separation from Service by a Participant who is a Specified Employee on the date of Separation from Service shall be made within the ninety (90) days following the date that is 6 months after the Separation from Service or, if earlier, within the ninety (90) days following the death of the Specified Employee.  The first payment made following the 6-month period described in the preceding sentence shall include all payments that otherwise would have been made after Separation from Service but for the delay required by this paragraph.
		
	6.4
	Interim Distribution Date Payments.  A Participant may make an election, at the time required by Section 6.2, to have his or her Class Year Account to which the election relates paid to him or her at an Interim Distribution Date designated by the Participant.  Such Class Year Account shall be payable in a single cash lump sum payment or in

13

annual installments of five (5) or ten (10) years, as elected by the Participant.  Payments shall commence within ninety (90) days after the applicable Interim Distribution Date as designated by the Participant.  If applicable, the initial installment shall be based on the value of the Participant’s Class Year Account, measured on the date of his or her designated Interim Distribution Date, and shall be equal to 1/n (where ‘n’ is equal to the total number of annual benefit payments not yet distributed).  Subsequent installment payments shall be computed in a consistent fashion, with the measurement date being the anniversary of the original measurement date and subsequent installment payments being made within ninety (90) days of such anniversary date.  Election of the form of the Interim Distribution Date payment must be provided to the Plan Administrator at the time required by Section 6.2 of this Plan. The Participant’s election of an Interim Distribution Date form is irrevocable, except as provided in Section 6.2(b).

For an election to commence distributions at an Interim Distribution Date, such elected Interim Distribution Date must occur before the Participant incurs a Separation from Service, death, or Disability or the occurrence of a Change in Control Event.  Additionally, in the event a Participant incurs a Separation from Service before the Participant’s Normal Retirement Age and after the commencement of an Interim Distribution Date, all of the Participant’s Class Year Accounts that have commenced payment shall be paid in the form of a lump sum payment within ninety (90) days after the Separation from Service.
		
	6.5
	Death Benefit.  In the event of the Participant’s death, whether before or after the Participant has otherwise incurred a Distributable Event or commenced receiving payments from the Plan, the Participant’s Beneficiary shall receive the balance of the Participant’s Account in a single lump-sum cash payment as soon as practicable following the Participant’s death, but in no event later than December 31st of the calendar year following the calendar year in which death occurs.

		
	6.6
	Disability Benefit.  In the event that a Participant incurs a Disability, whether before or after the Participant has otherwise incurred a Distributable Event or commenced receiving payments from the Plan, the Participant shall receive the balance of the Participant’s Account in a single lump-sum cash payment within ninety (90) days of the Disability. The Plan Administrator shall have complete discretion to determine whether the circumstances of the Participant constitute a Disability and the time at which such Disability occurs consistent with the terms of the Plan.

		
	6.7
	Payment upon Change in Control Event.  Notwithstanding any provision or election to the contrary, in the event of a Change in Control Event, all amounts credited to each Participant’s Account shall be paid to the Participant in a lump sum within ninety (90) days after the Change in Control Event.

Subject to the requirements of Code Section 409A, in the event that a Participant is an employee of an Affiliate, other than the Plan Sponsor, and the Affiliate has a Change of Control Event, all amounts credited to such Participant’s Account shall be paid to the Participant in a lump sum within ninety (90) days after the Change in Control Event.

14

Notwithstanding the preceding sentence, such distribution shall only occur if neither the Plan Sponsor nor an entity that is an Affiliate after such transaction employs the Participant after such transaction.  For this purpose, an Affiliate shall be deemed to have a Change of Control Event with respect to any event that would be a Change of Control Event within the meaning of Section 1.8(a) or (c), if the term “Plan Sponsor” were replaced with the term “Affiliate” each time it is used therein.

		
	6.8
	Unforeseeable Emergency Distribution.  If a Participant has an Unforeseeable Emergency, as defined herein, the Plan Administrator may pay to the Participant that portion of his or her Account which the Plan Administrator determines is reasonably necessary to satisfy the emergency to the extent permissible under Code Section 409A.  The amounts distributed to the Participant as a result of an Unforeseeable Emergency may not exceed the amounts reasonably necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise, by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship) or by cancellation of Compensation Deferrals pursuant to Section 7.1.  A Participant requesting an Unforeseeable Emergency Distribution shall apply for the payment in writing on a form approved by the Plan Administrator and shall provide such additional information as the Plan Administrator may require.  The Plan Administrator shall have complete discretion to determine whether the financial hardship of the Participant constitutes an Unforeseeable Emergency under the Plan.  If, subject to the sole discretion of the Plan Administrator, the request for a withdrawal is approved, the distribution shall be made within ninety (90) days after the date of approval by the Plan Administrator.

		
	6.9
	Payment upon Income Inclusion Under Section 409A.  To the extent permitted under Code Section 409A, if the Plan Administrator determines at any time that the Plan fails to meet the requirements of Code Section 409A with respect to a Participant, the Plan Administrator shall distribute to the Participant the amount from the Participant’s Account that is required to be included in income as a result of such failure.  Such payment shall be made in a single lump-sum payment upon such determination.

		
	6.10
	Beneficiary Designation.   Unless otherwise set forth in the Annual Enrollment Materials for a particular Taxable Year, a Participant shall have the right to designate a Beneficiary and to amend or revoke such designation at any time in writing.  Such designation, amendment or revocation shall be effective upon receipt by and acknowledgment from the Plan Administrator.  If the Beneficiary is a minor or incompetent, benefits may be paid to a legal guardian, trustee, or other proper representative of the Beneficiary, and such payment shall completely discharge the Plan Sponsor and the Plan of all further obligations hereunder.

If no Beneficiary designation is made, if the Beneficiary designation is held invalid, or if no Beneficiary survives the Participant, and benefits are determined to be payable following the Participant’s death, the Plan Administrator shall direct that payment of

15

benefits be made to the person or persons in the first of the below categories in which there is a survivor.  The categories of successor beneficiaries, in order, are as follows:
		
	(a)
	Participant’s Spouse;

		
	(b)
	Participant’s Domestic Partner; and

		
	(c)
	Participant’s estate.

		
	6.11
	Claims Procedure.  All claims for benefits under the Plan, and all questions regarding the operation of the Plan, shall be submitted to the Plan Administrator in writing.  The Plan Administrator has complete discretion and authority to interpret and construe any provision of the Plan, and its decisions regarding claims for benefits hereunder are final and binding.

		
	(a)
	Presentation of Claim.  Any Participant, Beneficiary or person claiming benefits under the Plan (such Participant, Beneficiary or other person being referred to below as a “Claimant”) may deliver to the Plan Administrator a written claim for a determination with respect to benefits distributable to such Claimant from the Plan.  The claim must state with particularity the determination desired by the Claimant.

Any claim by a Participant that a payment made under the Plan is less than the amount to which the Participant is entitled must be made in writing pursuant to the foregoing provisions of this Section within 180 days after the date of such payment.  Notwithstanding any other provision of the Plan, including the provisions of Section 5.1, a Participant shall forfeit all rights to any amounts claimed if the Participant fails to make claim as provided in the preceding sentence.
		
	(b)
	Notification of Decision.  The Plan Administrator shall consider a Claimant’s claim within a reasonable time, and shall notify the Claimant in writing:

		
	(i)
	that the Claimant’s requested determination has been made, and that the claim has been allowed in full; or

		
	(ii)
	that the Plan Administrator has reached a conclusion contrary, in whole or in part, to the Claimant’s requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant:

		
	(1)
	the specific reason(s) for the denial of the claim, or any part of it;

		
	(2)
	specific reference(s) to pertinent provisions of the Plan upon which such denial was based;

		
	(3)
	a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary;

16

		
	(4)
	a description of the claim review procedure set forth in Section 6.11(c) below, including information regarding any applicable time limits and a statement regarding the Claimant’s right to bring an action under ERISA Section 502(a) following an adverse determination on review; 

		
	(5)
	if the decision involved the Disability of the Participant, either the specific internal rules, guidelines, protocols, standards, or other similar criteria of the Plan relied upon during the claim or, alternatively, a statement that such criteria of the Plan do not exist;

		
	(6)
	if the decision involved the Disability of the Participant, a discussion of the decision, including an explanation of the basis for disagreeing with or not following (i) the views of a health care professional who treated the Claimant, (ii) the views of medical or vocational experts whose advice was obtained on behalf of the Plan (without regard to whether such advice was relied upon for the decision), and (iii) a determination by the Social Security Administration;

		
	(7)
	if the decision involved the Disability of the Participant and was based on a medical necessity, experimental treatment or similar exclusion/limit, an explanation of the scientific or clinical judgment for the decision (applying the terms of the Plan to Claimant’s medical circumstances) or a statement that Claimant can request a copy of such explanation, free of charge, upon request; and

		
	(8)
	if the decision involved the Disability of the Participant, a statement that the Claimant may request access to, and copies of, all relevant documents, free of charge.

The Plan Administrator will notify the Claimant of an adverse decision within ninety (90) days after the date the claim was received, unless the Plan Administrator determines there are special circumstances that require an extension of time in which to make a decision.  If an extension of time is needed, the Plan Administrator shall notify the Claimant of the extension before the expiration of the original 90-day period.  The notice will include a description of the special circumstances requiring an extension of time and an estimate of the date it expects a decision to be made.  The extension shall not exceed an additional 90-day period.
If the adverse decision relates to a claim involving the Disability of the Participant, the Plan Administrator will notify the Claimant of an adverse decision within forty-five (45) days after the date the claim was received, unless the Plan Administrator determines that matters beyond its control require an extension of time in which to make a decision.  If an extension of time is needed, the Plan

17

 Administrator shall notify the Claimant of the extension before the expiration of the original 45-day period.  The notice will include a description of the circumstances necessitating the extension and an estimate of the date it expects a decision to be made.  The extension shall not exceed an additional 30-day period unless, within the 30-day period the Plan Administrator again determines that more time is needed due to matters beyond its control, in which case notice of the need for not more than an additional thirty (30) days is provided to the Claimant before the first 30-day period expires.  The notice will include a description of the circumstances requiring the extension and an estimate of the date it expects a decision to be made.  Any extension notice will include information regarding the standards on which a determination of Disability will be made, the outstanding issues which prevent a decision from being made, and any additional information which is needed in order to reach a decision.  The Claimant will have forty-five (45) days to supply any additional information.
If the Plan Administrator notifies the Claimant of the need for an extension of time to make a decision regarding his or her claim in accordance with this Section 6.11(b), and the extension is needed due to the Claimant’s failure to provide information necessary to decide the claim, the period of time in which the Plan Administrator must make a decision does not include the time between the date the notice of the extension was sent to the Claimant and the date the Claimant responds to the request for additional information.
		
	(c)
	Review of a Denied Claim.  Within sixty (60) days after receiving a notice from the Plan Administrator that a claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly authorized representative) may file with the Plan Administrator a written request for a review of the denial of the claim.  During the 60-day review period, the Claimant (or the Claimant’s duly authorized representative):

		
	(i)
	may review relevant documents;

		
	(ii)
	may submit written comments or other documents relating to the claim;

		
	(iii)
	may request access to and copies of all relevant documents, free of charge;

		
	(iv)
	may request a hearing, which the Plan Administrator, in its sole discretion, may grant.

The Plan Administrator will consider all documents and other information submitted by the Claimant in reviewing its previous decision, including documents not available to or considered by it during its initial determination.
If the appeal relates to a determination of the Plan Administrator involving the Disability of the Participant, the Claimant will have one-hundred-eighty (180) days following receipt of a denial to file a written request for review.  In such event, no deference shall be given to the initial benefit determination, and the review shall be conducted by an appropriate fiduciary who is someone other than

18

the individual who made the initial determination or a subordinate of such individual.  If the initial determination was based in whole or in part on a medical judgment, the reviewer shall consult with an appropriately trained and experienced health care professional, and shall disclose the identity of any experts who provided advice with regard to the initial decision.  The health care professional whose advice is sought during the appeal process will not be an individual who was consulted during the initial determination, nor a subordinate of such an individual.  If the review includes new or additional evidence or rationale considered, relied upon, or generated by the Plan or reviewer, the reviewer shall provide the Claimant with such evidence or rationale, free of charge, sufficiently in advance of issuing a decision on review to allow Claimant time to respond prior to such date.
		
	(d)
	Decision on Review.  The Plan Administrator shall render its decision on review promptly, and not later than sixty (60) days after the filing of a written request for review of the denial, unless a hearing is held or other special circumstances require additional time, in which case the Plan Administrator’s decision must be rendered within one-hundred-twenty (120) days after such date.  If an extension of time is needed, the Plan Administrator shall notify the Claimant of the extension before the expiration of the original 60-day period.  The notice will include a description of the circumstances requiring the extension and an estimate of the date it expects a decision to be made.  Such decision must be written in a manner calculated to be understood by the Claimant, and if the decision on review is adverse it must contain:

		
	(i)
	specific reasons for the decision;

		
	(ii)
	specific reference(s) to the pertinent Plan provisions upon which the decision was based;

		
	(iii)
	a statement that the Claimant may receive, upon request and free of charge, access to and copies of relevant documents and information;

		
	(iv)
	a statement describing any voluntary appeal procedures under the Plan and the Claimant’s right to bring an action under ERISA Section 502(a) (and if the decision involved the Disability of the Participant, a description of any applicable contractual limitation period that applies to the Claimant’s right to bring an action, including the calendar date on which such contractual limitation period expires);

		
	(v)
	if the decision involved the Disability of the Participant, either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in denying the claim on appeal or, alternatively, a statement that such criteria of the Plan does not exist;

		
	(vi)
	if the decision involved the Disability of the Participant, a statement that the Claimant and the Plan may have other voluntary alternative dispute 

19

resolution options, such as mediation, and that the Claimant may find out what options are available by contacting the local U.S. Department of Labor Office and the state insurance regulatory agency;

		
	(vii)
	if the decision involved the Disability of the Participant, a discussion of the decision, including an explanation of the basis for disagreeing with or not following (i) the views of a health care professional who treated the Claimant, (ii) the views of medical or vocational experts whose advice was obtained on behalf of the Plan (without regard to whether such advice was relied upon for the decision), and (iii) a determination by the Social Security Administration;

		
	(viii)
	if the decision involved the Disability of the Participant and was based on a medical necessity, experimental treatment or similar exclusion/limit, an explanation of the scientific or clinical judgment for the decision (applying the terms of the Plan to Claimant’s medical circumstances) or a statement that Claimant can request a copy of such explanation, free of charge, upon request; and

		
	(ix)
	such other matters as the Plan Administrator deems relevant.

If the appeal involves the Disability of the Participant, the decision of the Plan Administrator will be made within forty-five (45) days after the filing of the written request for review, unless special circumstances require additional time, in which case the Plan Administrator’s decision will be made within ninety (90) days after the date the request was filed.  If an extension of time is needed, the Plan Administrator shall notify the Claimant of the extension before the expiration of the original 45-day period.  The notice will include a description of the circumstances requiring the extension and an estimate of the date it expects a decision to be made.
If the Plan Administrator notifies the Claimant of the need for an extension of time to make a decision regarding his or her appeal in accordance with this Section 6.11(d), and the extension is needed due to the Claimant’s failure to provide information necessary to decide the appeal, the period of time in which the Plan Administrator must make a decision does not include the time between the date the notice of the extension was sent to the Claimant and the date the Claimant responds to the request for additional information.

ARTICLE VII

CANCELLATION OF DEFERRALS

		
	7.1
	Unforeseeable Emergency.  If a Participant has an Unforeseeable Emergency, as defined herein, the Plan Administrator may cancel all future Compensation Deferrals pertaining to Compensation not yet earned and required to be made pursuant to the Participant’s current Compensation Deferral Agreement if reasonably necessary to satisfy the

20

Participant’s financial hardship subject to the standards and requirements for an Unforeseeable Emergency Distribution set forth in Section 6.8.  If a Participant receives a hardship distribution from a qualified plan of the Plan Sponsor pursuant to Code Section 401(k)(2)(B)(IV), the Plan Administrator shall cancel all future Compensation Deferrals pertaining to Compensation not yet earned and required to be made pursuant to the Participant’s current Compensation Deferral Agreement, and the Participant will be prohibited from making Compensation Deferrals under the Plan for at least six (6) months after receipt of the hardship distribution or such longer period as may be prescribed by the qualified plan.  The Participant’s eligibility for Matching Credits and/or Discretionary Credits shall be similarly canceled, and the Participant shall be eligible to defer Compensation again at a later time only as provided under Article II.

ARTICLE VIII

PLAN ADMINISTRATION

		
	8.1
	Appointment.  The Plan Administrator shall serve at the pleasure of the Plan Sponsor, who shall have the right to remove the Plan Administrator at any time upon thirty (30) days’ written notice.  The Plan Administrator shall have the right to resign upon thirty (30) days’ written notice to the Plan Sponsor.

		
	8.2
	Duties of Plan Administrator.  The Plan Administrator shall be responsible to perform all administrative functions of the Plan.  These duties include but are not limited to:

		
	(a)
	Communicating with Participants in connection with their rights and benefits under the Plan;

		
	(b)
	Reviewing Benefit Benchmark elections received from Participants;

		
	(c)
	Arranging for the payment of taxes (including income tax withholding), expenses and benefit payments to Participants under the Plan;

		
	(d)
	Filing any returns and reports due with respect to the Plan;

		
	(e)
	Interpreting and construing Plan provisions and settling claims for Plan benefits; and

		
	(f)
	Serving as the Plan’s designated representative for the service of notices, reports, claims or legal process.

		
	8.3
	Plan Sponsor.  The Plan Sponsor has sole responsibility for the establishment and maintenance of the Plan.  The Plan Sponsor shall have the power and authority to appoint the Plan Administrator, Trustee and any other professionals as may be required for the administration of the Plan.  The Plan Sponsor shall also have the right to remove any individual or party appointed to perform administrative, investment, fiduciary or other functions under the Plan.  The Plan Sponsor may delegate any of its powers to the Plan Administrator, Board member or a committee of the Board.

21

		
	8.4
	Administrative Fees and Expenses.  All reasonable costs, charges and expenses incurred by the Plan Administrator or the Trustee in connection with the administration of the Plan or the Trust shall be paid by the Plan Sponsor.  If not so paid, such costs, charges and expenses shall be charged to the Trust, if any, established in connection with the Plan.  The Trustee shall be specifically authorized to charge its fees and expenses directly to the Trust.  If the Trust has insufficient liquid assets to cover the applicable fees, the Trustee shall have the right to liquidate assets held in the Trust to pay any fees or expenses due.

		
	8.5
	Plan Administration and Interpretation.  The Plan Administrator shall have complete discretionary control and authority to determine the rights and benefits and all claims, demands and actions arising out of the provisions of the Plan or any Participant, Beneficiary, deceased Participant, or other person having or claiming to have any interest under the Plan.  The Plan Administrator shall have complete discretion to interpret the Plan and to decide all matters under the Plan.  Such interpretation and decision shall be final, conclusive, and binding on all Participants and any person claiming under or through any Participant.  Any individual serving as Plan Administrator who is a Participant will not vote or act on any matter relating solely to himself or herself.  When making a determination or calculation, the Plan Administrator shall be entitled to rely on information furnished by a Participant, a Beneficiary, the Plan Sponsor, or other party.  The Plan Administrator shall have the responsibility for complying with any reporting and disclosure requirements of ERISA.

		
	8.6
	Powers, Duties, Procedures.  The Plan Administrator may adopt such rules, may act in accordance with such procedures, may appoint such officers or agents, may delegate such powers and duties, may receive such reimbursements, and shall follow such claims and appeal procedures with respect to the Plan as it may establish, each consistently with the terms of the Plan.

		
	8.7
	Information.  To enable the Plan Administrator to perform its functions, the Plan Sponsor shall supply full and timely information to the Plan Administrator on all matters relating to the Compensation of Participants, their employment, retirement, death, Separation from Service, and such other pertinent facts as the Plan Administrator may require.

		
	8.8
	Indemnification of Plan Administrator.  The Plan Sponsor agrees to indemnify and to defend to the fullest extent permitted by law any officer(s), employee(s) or Board members who serve as Plan Administrator (including any such individual who formerly served as Plan Administrator) against all liabilities, damages, costs and expenses (including reasonable attorneys’ fees and amounts paid in settlement of any claims approved by the Plan Sponsor) occasioned by any act or omission to act in connection with the Plan, if such act or omission is in good faith.

		
	8.9
	Plan Administration Following a Change in Control Event.  Notwithstanding anything to the contrary in this Article VIII or elsewhere in the Plan or Trust, upon a Change in Control Event with respect to the Plan Sponsor the individual serving as Chief Executive Officer of such Plan Sponsor immediately prior to such Change in Control Event shall have the right to appoint an individual, third party or committee to serve as Plan

22

Administrator.  Such appointment shall be made in writing and copies thereof shall be delivered to the Board, to the existing Plan Administrator, to the Trustee, and to all Plan Participants.  The Trustee and all other service providers shall be entitled to rely fully on instructions received from the successor Plan Administrator and shall be indemnified to the fullest extent permitted by law for acting in accordance with the proper instructions of the successor Plan Administrator.

ARTICLE IX

TRUST FUND

		
	9.1
	Trust.  The Plan Sponsor may establish a Trust for the purpose of accumulating assets which may, but need not be used, by the Plan Sponsor to satisfy some or all of its financial obligations to provide benefits to Participants under this Plan.  Any trust created under this Section 9.1 shall be domiciled in the United States of America, and no assets of the Plan shall be held or transferred outside the United States.  All assets held in the Trust shall remain the exclusive property of the Plan Sponsor and shall be available to pay creditor claims of the Plan Sponsor in the event of insolvency, to the extent provided under any Trust established with respect to such Plan Sponsor.  The assets held in Trust shall be administered in accordance with the terms of the separate Trust Agreement between the Trustee and the Plan Sponsor.

		
	9.2
	Unfunded Plan.  In no event will the assets accumulated by the Plan Sponsor in the Trust be construed as creating a funded Plan under the applicable provisions of ERISA or the Code, or under the provisions of any other applicable statute or regulation.  Any funds set aside by the Plan Sponsor in Trust shall be administered in accordance with the terms of the Trust.

		
	9.3
	Assignment and Alienation.  No Participant or Beneficiary of a deceased Participant shall have the right to anticipate, assign, transfer, sell, mortgage, pledge or hypothecate any benefit under this Plan.  The Plan Administrator shall not recognize any attempt by a third party to attach, garnish or levy upon any benefit under the Plan except as may be required by law.

ARTICLE X

AMENDMENT AND PLAN TERMINATION

		
	10.1
	Amendment.  The Plan Sponsor shall have the right to amend this Plan without the consent of any Participant or Beneficiary hereunder, provided that no such amendment shall have the effect of reducing any of the vested benefits to which a Participant or Beneficiary has accrued a right as of the effective date of the amendment.  Notwithstanding the foregoing, the Plan Sponsor shall have the right to amend this Plan in any manner whatsoever without the consent of any Participant or Beneficiary to comply with the requirements of Code Section 409A and any binding guidance thereunder to avoid adverse tax consequences even if such amendment has the effect of reducing a vested benefit or existing right of a Participant or Beneficiary hereunder.

23

		
	10.2
	Plan Termination.  Subject to the requirements of Code Section 409A, the Plan Sponsor may terminate or discontinue the Plan in whole or in part at any time.  No further Discretionary Credits or Matching Credits shall be made following Plan Termination, and no further Compensation Deferrals shall be permitted after the Taxable Year in which the Plan Termination occurs, except that the Plan Sponsor shall be responsible to pay any benefit attributable to vested amounts credited to the Participant’s Account as of the effective date of termination (following any adjustments to such Accounts in accordance with Article III hereof).  If the Plan is terminated in accordance with this Section 10.2, the Plan Administrator shall make distribution of the Participant’s vested benefit upon the occurrence of a Distributable Event with respect to a Participant.  A Participant’s vested benefit shall be adjusted to reflect Investment Credits and Debits for all Valuation Dates between Plan Termination and the occurrence of a Participant’s Distributable Event.

		
	10.3
	Effect of Payment.  The full payment of the balance of a Participant’s vested Account under the provisions of the Plan shall completely discharge all obligations to a Participant and his designated Beneficiaries under this Plan and each of the Participant’s Compensation Deferral Agreements shall terminate.

ARTICLE XI

MISCELLANEOUS

		
	11.1
	Total Agreement.  This Plan document, the Annual Enrollment Materials, Beneficiary designation, and other administration forms shall constitute the total agreement or contract between the Plan Sponsor and the Participant regarding the Plan.  No oral statement regarding the Plan may be relied upon by a Participant or Beneficiary.  The Plan Sponsor or Plan Administrator shall have the right to establish such procedures as are necessary for the administration or operation of the Plan or Trust, and such procedures shall also be considered a part of the Plan unless clearly contrary to the express provisions thereof.

		
	11.2
	Employment Rights.  Neither the establishment of this Plan nor any modification thereof, nor the creation of any Trust or Account, nor the payment of any benefits, shall be construed as giving a Participant or other person a right to employment with the Plan Sponsor or any Affiliate or any other legal or equitable right against the Plan Sponsor of any Affiliate except as provided in the Plan.  In no event shall the terms of employment of any Eligible Individual be modified or in any way be affected by the Plan.

		
	11.3
	Non-Assignability.  None of the benefits, payments, proceeds or claims of any Participant or Beneficiary shall be subject to attachment or garnishment or other legal process by any creditor of such Participant or Beneficiary, nor shall any Participant or Beneficiary have the right to alienate, commute, pledge, encumber or assign any of the benefits or payments or proceeds which he or she may expect to receive, contingently or otherwise under the Plan.

		
	11.4
	Binding Agreement.  Any action with respect to the Plan taken by the Plan Administrator or the Plan Sponsor or the Trustee or any action authorized by or taken at the direction of 

24

the Plan Administrator, the Plan Sponsor or other authorized party shall be conclusive upon all Participants and Beneficiaries entitled to benefits under the Plan.

		
	11.5
	Furnishing Information.  A Participant or Beneficiary will cooperate with the Plan Administrator or any representative thereof by furnishing any and all information requested by the Plan Administrator and take such other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits hereunder, including but not limited to taking such physical examinations as the Plan Administrator may deem necessary.

		
	11.6
	Compliance with Code Section 409A.  Notwithstanding any provision of the Plan to the contrary, all provisions of the Plan will be interpreted and applied to comply with the requirements of Code Section 409A and any regulations and applicable binding guidance so as to avoid adverse tax consequences.  No provision of the Plan, however, is intended or shall be interpreted to create any right with respect to the tax treatment of the amounts paid or payable hereunder, and neither the Plan Sponsor nor any Affiliate shall under any circumstances have any liability to a Participant or Beneficiary for any taxes, penalties or interest due on amounts paid or payable under the Plan, including taxes, penalties or interest imposed under Code Section 409A.

		
	11.7
	Insurance.  The Plan Sponsors, on their own behalf or on behalf of the trustee of the Trust, and, in their sole discretion, may apply for and procure insurance on the life of the Participant, in such amounts and in such forms as they may choose.  The Plan Sponsors or the trustee of the Trust, as the case may be, shall be the sole owner and beneficiary of any such insurance.  The Participant shall have no interest whatsoever in any such policy or policies, and at the request of the Plan Sponsor shall submit to medical examinations and supply such information and execute such documents as may be required by the insurance company or companies to which the Plan Sponsor have applied for insurance.

		
	11.8
	Governing Law.  Construction, validity and administration of this Plan shall be governed by applicable Federal law and the law of the state of New York without regard to the conflict of law provisions of such state law.  If any provision shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective.

		
	11.9
	Headings and Subheadings.  Headings and subheadings in this Plan are inserted for convenience only and are not to be considered in the interpretation of the provisions hereof.

	
			
	Date: October 3, 2018
	CONSTELLATION BRANDS, INC.

	 
	 

	 
	By:
	/s/Jeffrey Viviano

	 
	Name:
	Jeffrey Viviano

	 
	Title:
	Vice President, Compensation and Benefits

25

Exhibit A

Participating Affiliates

Constellation Brands, Inc.
Constellation Brands U.S. Operations, Inc.
Constellation Leasing, LLC
Constellation Marketing Services, Inc.
Crown Imports, LLC
Franciscan Vineyards, Inc.
High West Distillery, LLC
High West Saloon, LLC
Home Brew Mart, Inc.

26Exhibit

Exhibit 10.1

RETIREMENT AGREEMENT AND GENERAL RELEASE
This Retirement Agreement and General Release (“Agreement”) is entered into by and between Newpark Resources, Inc. (“Company”) and Mark Airola (“Executive”) on October 2, 2018, but effective as of the Retirement Date (as defined below).
WHEREAS, the Company and the Executive are parties to that certain Employment Agreement dated September 18, 2006, as amended from time to time (the “Employment Agreement”), pursuant to which Executive also agreed to be bound by the terms and conditions of Appendix A and Appendix B to the Employment Agreement, including, among other things, post-employment confidentiality, non-competition, employee non-solicitation and customer non-solicitation obligations (collectively, the “Restrictive Covenants”);
WHEREAS, Executive has elected to retire from his employment with the Company, and the Company authorized a succession plan whereby Executive transitioned into an advisory role to the Company as of the Transition Date (as defined below), and Executive will fully and finally retire and separate from his employment with the Company as of the Retirement Date (as defined below); and
WHEREAS, the Company has agreed to provide Executive with the Retirement Benefits (as defined below) subject to the terms, covenants and conditions of this Agreement, and Executive desires to have the opportunity to receive the Retirement Benefits.
AGREEMENT TERMS
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the parties, the Company and Executive, intending to be legally bound, hereby incorporate the recitals above herein and agree as follows:
1.Definitions.  The following terms shall have the stated meaning, whenever used in this Agreement:
1.1.    “Company Group” shall mean the group consisting of the Company (including successors and assigns) and the direct and indirect subsidiaries and affiliated Persons (as defined below) of the Company.  As used herein, a Person is affiliated with another Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such Person.  The term “control” (including, with correlative meaning, the terms “controlling,” “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.
1.2.    “Confidential Information” means any materials or information (whether in written, printed, graphic, video, audio, electronically stored, disk or other format) which (a) is not generally known to the public or within the industry; (b) was acquired or learned by Executive as a result of and during Executive’s employment relationship with a member of the Company Group; and (c) relates to the business of the Company Group or its customers, including, by way of example, strategies, methods, books, records, and documents; recipes, technical information concerning products, equipment, services, and processes; procurement procedures and pricing techniques; the names of and other information concerning customers and those being solicited to be customers, investors, and business relations (such as contact name, service provided, pricing for that customer, type and amount of product used, credit and financial data, and/or 

other information relating to the Company Group’s relationship with that customer); pricing strategies and price curves; positions, plans, and strategies for expansion or acquisitions; budgets; customer lists; research; financial and sales data; raw materials purchasing or trading methodologies and terms; evaluations, opinions, and interpretations of information and data; marketing and merchandising techniques; grids and maps; electronic databases; models; specifications; computer programs; internal business records; contracts benefiting or obligating the Company Group; bids or proposals submitted to any third party; technologies and methods; manufacturing processes and know-how; training methods and training processes; organizational structure; labor or employee relations or agreements; payment amounts or rates paid to consultants or other service providers; and other such confidential or proprietary information.  Information need not qualify as a trade secret to be protected as Confidential Information under this Agreement, and the authorized and controlled disclosure of Confidential Information to authorized parties by the Company Group in the pursuit of its business will not cause the information to lose its protected status under this Agreement.
1.3.    “Person” means any individual, partnership, firm, corporation, institution, limited liability company or any other legal entity.
1.4.    “Retirement Date” means September 30, 2018, the last date of Executive’s employment relationship with the Company.
1.5.    “Transition Date” means September 1, 2018.
1.6.    Interpretation of “Including/Or/Law.”  Unless expressed otherwise in this Agreement, the term “including” means “including without limitation,” the use of the word “or” is not exclusive, and the term “law” includes any (a) law of any jurisdiction (federal, state, local or other jurisdiction), (b) statutory or common law or (c) applicable regulations or other legal obligations. 
2.    Retirement. The Parties mutually agree to terminate the Employment Agreement and Executive will fully and finally retire from his employment with the Company, in each case, effective as of the Retirement Date.  As of the Retirement Date, Executive is no longer authorized to act on behalf of or to represent the Company Group, or to incur any expenses, obligations or liabilities on behalf of the Company Group.  
2.1.    Final Paycheck. Executive acknowledges and agrees that, following the Retirement Date and within the time period required by law, the Company shall pay Executive a final paycheck (“Final Paycheck”), which will include Executive’s regular salary and all other compensation of any kind owed for all time worked through and including the Retirement Date. Accrued, unused vacation or paid time off will be paid in the Final Paycheck if provided for under the applicable vacation or paid time off policy in place at the time of the Retirement Date.  
2.2.    Expense Reimbursement. Executive agrees that within ten (10) business days after the Retirement Date, Executive will submit in a form consistent with Company policies Executive’s final documented expense reimbursement statement reflecting all business expenses Executive has incurred as an employee of the Company, but that have not yet been reimbursed, through the Retirement Date, if any. The Company will reimburse Executive for these expenses pursuant to its usual business practices. Executive acknowledges and agrees that if Executive fails to timely submit an expenses reimbursement statement, as outlined in this Section 2.2, Executive forfeits his right, if any, to reimbursement for such business expenses.

2

2.3.    Post-Retirement Consultancy and Cooperation. The Company and Executive agree that certain matters in which Executive has been involved during Executive’s employment may need Executive’s cooperation with the Company in the future. Accordingly, for a period of three (3) months after the Retirement Date, to the extent reasonably requested by the Company, Executive shall be available and willing to provide consulting services to the Company in connection with matters arising out of Executive’s service to the Company; provided that such consulting services shall be performed at mutually agreed upon and convenient times, so as to minimize disruption of Executive’s other activities. The Company shall reimburse Executive for reasonable out-of-pocket expenses, including travel expenses and any attorneys’ fees, incurred by Executive in connection with such consulting services, and the Company shall compensate Executive for such consulting services at an hourly rate of $300 per hour.  Following the Retirement Date, Executive further agrees to provide truthful testimony and information and to otherwise reasonably cooperate with the Company Group in connection with any and all existing, potential or future claims, litigation or investigations brought by or against the Company Group or any of its past or present affiliates, agents, officers, directors, fiduciaries, or employees, whether administrative, civil or criminal in nature, with respect to such matters as were within Executive’s knowledge while employed by any member of the Company Group.  The Executive agrees, unless precluded by law, to promptly inform the Company if the Executive is asked to assist in any investigation (whether governmental or otherwise) of the Company Group, regardless of whether a lawsuit has been filed against any member of the Company Group with respect to such investigation.
3.    Consideration. 
3.1.    Retirement Benefits. Conditioned upon Executive’s compliance with all terms of this Agreement, the Company shall provide Executive with the consideration described in this Section 3.1 (collectively, the “Retirement Benefits”). Executive acknowledges and agrees that the Retirement Benefits are good, valuable and sufficient consideration to support the agreements contained herein.  Executive further acknowledges and agrees that the Retirement Benefits provided for in Section 3.1 supersede and replace any severance benefits that may otherwise be payable under the Employment Agreement, if any.
3.1.1.    Annual Cash Incentive Plan Super-Over Achievement Award Payment. Pursuant to that certain Newpark Resources, Inc. 2010 Annual Cash Incentive Plan (the “2010 ACIP”), and as a result of Executive’s separation from employment qualifying as a Normal Retirement (as defined in the 2010 ACIP), the Company shall pay to the Executive a cash payment in the amount of Two Hundred and Forty Six Thousand and Four Hundred and Sixty Three Dollars and No Cents ($243,463.00), less applicable deductions and withholdings (the “Super-OA Award Payment”), payable in a single lump sum on the first regularly scheduled payday that occurs at least ten (10) business days after the date the Company receives a copy of the this Agreement signed by Executive.   
3.1.2.    Annual Cash Incentive Plan Prorated Award Payment. Pursuant to the 2010 ACIP, and as a result of Executive’s separation from employment qualifying as a Normal Retirement (as defined in the 2010 ACIP), Executive shall remain eligible to receive a prorated portion of the Award Payment (as defined in the 2010 ACIP) for the current Plan Year (as defined in the 2010 ACIP) (the “Prorated Award Payment”), subject in all respects to the terms and conditions of the 2010 ACIP which are incorporated herein by reference.  The Prorated Award Payment, if earned, will be paid to Executive at the same time as all other Award Payments are made to other 2010 ACIP Executives.
3.1.3.    Time-Vested Stock Options. All unvested stock options that have been awarded to Executive at least six (6) months before the Retirement Date, other than any one-time, special and/or 

3

retention-based award (“Options”), shall continue to become exercisable after the Retirement Date pursuant to the original vesting schedule, subject in all respects to the terms and conditions of any applicable grant agreement, the Newpark Resources, Inc. 2006 Equity Incentive Plan, as amended (the “2006 Plan”) and the Newpark Resources, Inc. 2015 Employee Equity Incentive Plan, as amended (the “2015 Plan” and together with the 2006 Plan, as applicable, the “Equity Plan”) (except for any continued employment requirement) and, in addition to the otherwise applicable post-termination exercise period, all stock options that have been awarded to Executive that remain outstanding as of the Retirement Date, regardless of when awarded to Executive, shall remain exercisable until the earlier of (a) two (2) years from the Retirement Date or (b) the expiration date designated in the applicable option agreement. For the avoidance of doubt, nothing in this Agreement shall be treated as permitting delivery of any Options to Executive prior to the date such Options would have been delivered pursuant to the terms of the applicable equity grant agreement or the Equity Plan if Executive had remained employed by the Company following the Retirement Date.
3.1.4.    Time-Vested Restricted Stock Awards or Units.  The restrictions applicable to any unvested restricted stock awards and/or restricted stock units that have been awarded to Executive at least six (6) months before the Retirement Date, other than any one-time, special and/or retention-based awards (collectively, the “Restricted Stock”), shall continue to lapse pursuant to the original vesting schedule, subject in all respects to the terms and conditions of any applicable equity award agreement and the Equity Plan (except any continued employment requirement).  For the avoidance of doubt, nothing in this Agreement shall be treated as permitting delivery of any shares of Company stock to Executive prior to the date such shares would have been delivered pursuant to the terms of the applicable equity award agreement or the Equity Plan if Executive had remained employed by the Company following the Retirement Date.  
3.1.5.    Performance-Based Restricted Stock Units.  Executive shall remain eligible to receive a prorated payment in shares for any performance-based restricted stock units awarded to Executive, other than any one-time, special and/or retention-based award, provided that at least six (6) months of the applicable performance period have elapsed prior to the Retirement Date (the “Prorated RSU Payment”) and subject in all respects to the terms and conditions of any equity award agreement and the Equity Plan (except any continued employment requirement).  The Prorated RSU Payment, if earned, will be paid to Executive at the same time as all other participants in the applicable plan.
3.1.6.    Time-Based Cash Awards.  The restrictions applicable to any unvested cash awards that have been awarded to Executive at least six (6) months prior to the Retirement Date, other than one-time, special and/or retention-based award (“Cash Awards”), shall continue to lapse pursuant to the original vesting schedule, subject in all respects to the terms and conditions of any applicable equity award agreement and plan document (except any continued employment requirement).  For the avoidance of doubt, nothing in this Agreement shall be treated as permitting payment to be made with respect to any Cash Awards to Executive prior to the date such payment would have been made pursuant to the terms of the applicable equity award agreement and the Equity Plan if Executive had remained employed by the Company following the Retirement Date.
3.1.7.    Performance-Based Cash Awards.  Executive shall remain eligible to receive a prorated cash payment for any performance-based cash award awarded to Executive, other than any one-time, special and/or retention-based award, provided that at least six (6) months of the applicable performance period have elapsed prior to the Retirement Date (the “Prorated CA Payment”) and subject 

4

in all respects to the terms and conditions of any equity award agreement and the Equity Plan (except any continued employment requirement).  The Prorated CA Payment, if earned, will be paid to Executive at the same time as all other participants in the Equity Plan.
3.2.    Compliance with Post-Retirement Obligations.  Strict compliance with and satisfaction of terms of this Agreement, including the agreements, covenants, conditions and other terms set forth in Section 4 through Section 6 of this Agreement (collectively, the “Post-Retirement Obligations”) is a specific condition to Executive’s receipt of the Retirement Benefits provided under this Agreement, with such compliance and satisfaction determined by the Company in its sole discretion.  Violating any of the Post-Retirement Obligations at any time shall result in (a) automatic termination of the Super-OA Award Payment, if not yet paid, or forfeiture of the Super-OA Award Payment already paid (less One Thousand Dollars and No Cents ($1,000.00), which Executive shall retain as consideration for Executive’s release of claims in Section 4 of this Agreement); (b) forfeiture of the right to receive payment of the Prorated Award Payment, if not yet paid; (c) termination of the extended exercise period for any Options that were vested as of the Retirement Date, which shall remain exercisable for the post-employment termination period provided in the applicable award agreement; (d) forfeiture of all unexercised Options that vested after the Retirement Date, which will become immediately unexercisable; (e) forfeiture and surrender of any unvested Restricted Stock; (f) forfeiture of the right to receive payment of the Prorated RSU Payment, if not yet paid; (g) forfeiture and surrender of any unvested Cash Awards; and (h) forfeiture of the right to receive payment of the Prorated CA Payment.
3.3.    This Agreement is subject to the terms and conditions of the 2010 ACIP and Equity Plan and any applicable award agreements issued thereunder.
4.    Release.  Executive’s “Release” includes all of the terms of this Section 4.
4.1.    Executive, on behalf of Executive, Executive’s heirs and assigns, irrevocably and unconditionally releases, waives, and forever discharges each member of the Company Group and each of their respective present and former affiliates, agents, employees, officers, directors, attorneys, stockholders, plan fiduciaries and benefit plans, and any successors and assigns of the foregoing (collectively, the “Releasees”), from any and all claims, demands, actions, causes of action, costs, fees, and all liabilities whatsoever, whether known or unknown, fixed or contingent, which Executive has, had, or may have against Releasees relating to or arising out of Executive’s employment with the Company, or any other matter that arises through the date that this Agreement is signed by the Executive (“Released Claims”).  
4.2.    Executive understands that the Released Claims include, to the extent permitted by applicable law, claims at law or equity or sounding in contract (express or implied) or tort, claims (including claims for monetary damages) arising under any federal, state, or local laws, of any jurisdiction, that prohibit age, sex, race, national origin, color, disability, religion, veteran or any other form of discrimination, harassment, or retaliation (including the Age Discrimination in Employment Act, the Americans with Disabilities Act, Title VII of the 1964 Civil Rights Act, the Civil Rights Act of 1991, 42 U.S.C. § 1981, or the Rehabilitation Act), under the Family and Medical Leave Act, the Employee Retirement Income Security Act, any other claim under any law related to Executive’s employment with the Company, and any other matter arising between Executive and the Company Group through the date that this Agreement is signed by Executive.

5

4.3.    The Released Claims also include any claims against the Company Group relating to any alleged entitlement to any form of compensation or benefit, including payment of personal time off, annual or periodic incentives, bonuses, restricted stock awards, restricted stock units, stock options and any other financial recovery against any Releasees.  Further, the terms and provisions of this Agreement shall, to the extent permitted by applicable law, extend and apply to all unknown, unsuspected or unanticipated injuries or damages.  
4.4.    Nothing in this Agreement shall be construed as an attempt to waive any right or claim which: is not waivable as a matter of law, involves the Retirement Benefits provided under this Agreement, arises after the date this Agreement is executed by Executive, involves Executive’s legal indemnification rights (if any exist) for acts or omissions covered by such rights, involves unemployment compensation benefits if Executive is otherwise qualified for such benefits under applicable law, or involves any pending workers’ compensation claim (however Executive represents and acknowledges that he has no unfiled workers’ compensation claim or unreported injury). 
4.5.    Release of Age Discrimination Claims.  Executive acknowledges the following:  
4.5.1.    This Agreement is written in a manner calculated to be understood by Executive, and Executive in fact understands the terms, conditions and effect of this Agreement.  
4.5.2.    This Agreement refers to rights or claims arising under the Age Discrimination in Employment Act and the Older Workers’ Benefit Protection Act.  
4.5.3.    Executive does not waive rights or claims that may arise after the date this Agreement is executed by Executive.
4.5.4.    Executive is waiving rights or claims in exchange for consideration which is in addition to anything of value to which Executive is already entitled.
4.5.5.    Executive is advised to consult with an attorney prior to executing the Agreement.
4.5.6.    Executive has been given this Agreement to consider on September 26, 2018.  Executive has twenty-one (21) days to consider this Agreement and decide whether to accept it (the “Consideration Period”).  Executive must accept this Agreement on or after the Retirement Date, but not later than the last day of the Consideration Period.  Executive does not have to wait until the end of the Consideration Period to accept this Agreement, but Executive acknowledges that any decision to sign this Agreement before the Consideration Period expired was made voluntarily, and not because of any fraud or coercion or improper conduct by the Company Group.  
4.5.7.    Executive is given a period of seven (7) calendar days following the date Executive signs the Agreement to elect to revoke this Agreement (“Revocation Period”).  If revoked, (a) this Agreement will be revoked in full and void ab initio, as if it had never been entered into; (b) Executive will forfeit any right to receive the Super-OA Award Payment, (c) Executive will forfeit any right to receive payment of the Prorated Award Payment, if not yet paid; (d) the extended exercise period for any Options that were vested as of the Retirement Date will be terminated and any such vested Options shall remain exercisable for the post-employment termination period provided in the applicable award agreement; (e) Executive will forfeit any unexercised Options that vested after the Retirement Date, and such unexercised Options will become immediately unexercisable; (f) Executive will forfeit and surrender 

6

any unvested Restricted Stock; (g) Executive will forfeit the right to receive payment of the Prorated RSU Payment, if not yet paid; (h) Executive will forfeit and surrender any unvested Cash Awards; and (i) Executive will forfeit the right to receive payment of the Prorated CA Payment.
4.5.8.    Executive fully understands all of the terms of this Agreement and knowingly and voluntarily enters into this Agreement.  
4.5.9.    Notice of acceptance or revocation of this Agreement should be made by Executive as specified in Section 6.2 (“Notices” Section) below.
4.6.    Protected Agency Disclosures/Participation.  Executive understands and agrees that nothing in this Agreement shall be construed to prohibit Executive from making disclosures to, filing a charge or complaint with, or participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission (“EEOC”), the Securities and Exchange Commission (“SEC”) or any other federal, state or local governmental agency or commission.  This Agreement does not impose any condition precedent (such as prior notice to the Company Group), any penalty, or any other restriction or limitation adversely affecting Executive’s rights regarding any governmental agency disclosure, report, claim or investigation.  Further, Executive may disclose his wages, hours, or other terms and conditions of employment in the exercise of any rights provided by the National Labor Relations Act.  Notwithstanding the foregoing, Executive agrees to waive Executive’s right to recover monetary damages or other personal relief in any charge, complaint, or lawsuit that Executive has filed or might file or which might be filed on Executive’s behalf.  The Company and Executive further understand and agree that nothing in this Agreement limits Executive’s right to receive an award for information provided to the SEC or under any of its programs.
4.7.    No Waiver.  Executive understands and agrees that this Agreement shall not in any way be construed as an admission by any of the Releasees or by Executive of any unlawful or wrongful acts whatsoever against the other, or any other Person, and Executive specifically disclaims any liability to or wrongful acts against any of the Releasees, or any other Person, including those relating to or involving, directly or indirectly, Executive’s employment by the Company Group.  
Executive acknowledges that Executive has read this Section 4 carefully. 
5.    Additional Representations and Agreements Regarding Post-Retirement Obligations.
5.1.    Executive agrees that his obligations stated in this Agreement, including each of the Post-Retirement Obligations, are in addition to any obligations under applicable law or any agreement in effect before or after the Retirement Date, including the Restrictive Covenants, any other pre-existing non-compete, non-solicitation, confidentiality or release of liability obligations or agreements for the benefit of any member of the Company Group to which Executive may be a party (collectively, “Other Obligations”), and Executive hereby expressly ratifies such Other Obligations as reasonable, necessary and enforceable and, as a condition to receiving the Retirement Benefits, Executive agrees to continue to comply with and perform such Other Obligations for the applicable duration of each such obligation.  
5.2.    Executive acknowledges that money damages would not be sufficient remedy for any breach of this Agreement by Executive, including breach of any of the Post-Retirement Obligations, and the Company Group shall be entitled to enforce such provisions by specific performance and injunctive or other equitable relief as remedies for such breach or any threatened breach.  Such remedies shall not 

7

be deemed the exclusive remedies for such breach, but shall be in addition to all remedies available at law or in equity to the Company Group, including the recovery of damages from Executive and Executive’s agents involved in such breach, all remedies related to the Retirement Benefits covered by the “Compliance with Post-Retirement Obligations” Section of this Agreement, forfeiture and/or repayment of the Super-OA Award Payment, and all remedies available to the Company Group pursuant to other agreements with Executive or under any applicable law. 
5.3.    It is expressly understood and agreed that the Company Group and Executive consider each of the restrictions and obligations contained or referenced in this Agreement to be reasonable and necessary to protect the business of the Company Group.  Nevertheless, if any of the aforesaid restrictions are found by a court having jurisdiction to be unreasonable, or overly broad as to geographic area or time, or otherwise unenforceable, the parties intend for the restrictions therein set forth to be modified by such court so as to be reasonable and enforceable and, as so modified by such court, to be fully enforced.
5.4.    Protected Disclosures.  Notwithstanding the obligations stated in this Agreement, neither this Agreement nor any other agreement or policy of the Company Group shall prohibit Executive from making the following protected statements or disclosures: (a) disclosures of trade secrets made in confidence to a federal, state, or local government official, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law, or (b) disclosures of trade secrets made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal or per court order, or (c) disclosures of trade secrets by a plaintiff to his attorney in a lawsuit for retaliation for reporting a suspected violation of law and use of the trade secret information in the court proceeding, if any document containing the trade secrets is filed under seal and does not disclose the trade secrets, except pursuant to court order, or (d) other actions protected as whistleblower activity under applicable law, or (e) as stated above in Section 4.6 (“Protected Agency Disclosures/ Participation” Section).  Executive is not required to notify the Company Group of these allowed reports or disclosures.    
5.5.    Non-Disparagement. Executive agrees that Executive shall not at any time make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning the Company Group or their businesses, business practices, or any of their employees, officers or directors. This Section 5.5 does not apply to or in any way restrict or impede Executive from any communications with government agencies as stated above in Section 4.6 (“Protected Agency Disclosures/ Participation” Section), or complying with any applicable law or court order, or exercising whistleblower or other protected non-waivable legal rights.
Executive acknowledges that Executive has read this Section 5 carefully.
6.    Miscellaneous.  This Agreement shall be subject to the following additional terms and conditions: 
6.1.    Severability.  Should a court declare or determine that any provision of this Agreement is unmodifiable and illegal or invalid, the validity of the remaining parts, terms or provisions of this Agreement will not be affected and any illegal or invalid part, term, or provision, will not be deemed to be a part of this Agreement.
6.2.    Notices.  The Company Group and Executive may deliver any notice required by the terms of this Agreement in writing or by electronic means.  Any such notice shall be deemed effective upon personal delivery, receipt (including with respect to electronic communications), or upon deposit with the U.S. Postal Service, by registered or certified mail, with postage and fees prepaid.  The notice shall 

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be addressed to Vice President of Human Resources, Newpark Resources, Inc. 9320 Lakeside Boulevard, Suite 100, The Woodlands, Texas 77381, Attention: Legal Department, and to Executive at the address that he most recently provided to the Company.
6.3.    Entire Agreement.  Executive represents and acknowledges that in executing this Agreement, Executive did not rely, and has not relied, on any oral or written representations, agreements, or communications by any of the Releasees, except as expressly contained in this Agreement.  This Agreement, the Supplemental Release, the Other Obligations, the Program, and any applicable equity award or plan documents constitute the entire contract between the parties hereto with regard to the subject matter hereof.  They supersede all other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof; provided, however, that this Agreement does not replace or supersede or modify any existing obligation, including any Other Obligation, under applicable law or agreement regarding confidentiality, fiduciary duties, non-competition, or non-solicitation.  Further, the provisions of the 2010 ACIP and Equity Plan and any applicable equity award and/or plan documents shall continue to apply.  
6.4.    Exclusive Dispute Resolution Procedure. In the event either party contends the other has not complied with any provision of this Agreement, or asserts any claims under ERISA, prior to seeking arbitration as provided for below, the party claiming a violation of this Agreement, shall advise the other party, in writing, of the specifics of the claim, including the specific provision alleged to have been violated, as well as provide the other party with any supporting documentation the party desires to produce at that time.  If the Company is disputing amounts that Executive contends are due to him, the Company shall provide a complete statement of the amount it is disputing, the reason it is disputing it, and supporting documentation upon request by Executive.  The parties will thereafter meet and attempt to resolve their differences in a period not to exceed thirty (30) days, unless the parties agree in writing to mutually extend the time for one additional thirty (30) day period.  Following such attempts to resolve any such dispute, either party may require arbitration of the other.  In order to do so, the request must be timely made, in writing, and delivered to the other party (Executive or the Vice President of Human Resources) in the manner outlined in Section 6.2 (“Notices” Section) within thirty (30) days following the end of the resolution period (or any valid extension thereof) referenced herein above.  
The parties hereto agree that any controversy or claim arising out of or relating to this Agreement, or any dispute arising out of the interpretation or application of this Agreement, which the parties hereto are unable to resolve as provided for above, shall be finally resolved and settled exclusively by arbitration in the city where the headquarters for the Company are then located or such other location as the parties may agree, by a single arbitrator in accordance with the substantive laws of the State of Texas to the extent not preempted by ERISA, which shall govern all applicable benefits issues, in keeping with the above required procedure.  If the parties cannot agree upon an arbitrator, then each party shall choose its own independent representative, and those independent representatives shall choose the single arbitrator within thirty (30) days of the date of the selection of the first independent representative.  The cost and expenses of the arbitrator in any such action shall be borne equally by the parties.  
The legal expenses of each party shall initially be borne by each party.  However, the arbitrator may determine how such legal expenses may ultimately be allocated between the parties and may elect to entitle the prevailing party in the arbitration to a reasonable sum for attorneys’ fees and costs incurred by such party to be paid by the non-prevailing party.  The arbitrator’s decision, judgment, and award (including the allocation of attorneys’ fees) shall be final, binding and conclusive upon the parties and may be entered 

9

in the highest court, state or federal, having jurisdiction.  The arbitrator to which any such dispute shall be submitted in accordance with the provision of this Section 6.4 shall only have jurisdiction and authority to interpret, apply, or determine compliance with the provisions of this Agreement, but shall not have jurisdiction or authority to add to, subtract from, or alter in any way the provisions of this Agreement.  The Parties understand that their mutual obligations to arbitrate under this Section 6.4 survive any termination of this Agreement.   Notwithstanding anything to the contrary in this Section 6.4, either party may commence in a court of competent jurisdiction any action to obtain injunctive relief.
6.5.    Governing Law/Venue.  This Agreement and the Program shall be governed by, and construed in accordance with, the laws of the State of Texas, United States of America.  The venue for any and all disputes arising out of or in connection with this Agreement shall be Harris County, Texas, United States of America, and the courts sitting exclusively in Harris County, Texas, United States of America shall have exclusive jurisdiction to adjudicate such disputes, except as provided in Section 6.4. 
6.6.    No Waiver.  No failure by either Party at any time to give notice of any breach by the other Party of, or to require compliance with, any condition or provision of this Agreement shall (a) be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time or (b) preclude insistence upon strict compliance in the future.
6.7.    Administration.  Any determination by Company and its counsel in connection with any question or issue arising under this Agreement shall be conclusive and binding on Executive and all other persons having an interest hereunder. 
6.8.    Alienation of Interest Forbidden.  The interest of Executive under this Agreement or the benefits conveyed to Executive herein, may not be sold, transferred, assigned, or encumbered in any manner, either voluntarily or involuntarily, and any attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be null and void; neither shall the benefits to Executive hereunder be liable for or subject to the debts, contracts, liabilities, engagements or torts of Executive, nor shall they be an asset in bankruptcy or subject to garnishment, attachment or other legal or equitable proceedings.
6.9.    Successors and Assigns.  The Company’s obligations under this Agreement shall be binding upon the Company and its successors and assigns.  The obligations of Executive under the Release are binding upon Executive, Executive’s executors, administrators, heirs, successors, representatives and assignees.  The rights and other obligations of Executive under this Agreement are personal in nature and may not be assigned.  The benefits of Executive’s obligations under this Agreement shall inure to the benefit of every member of the Company Group and their respective successors and assigns, and Executive consents to the assignment of this Agreement by the Company, or by any member of the Company Group, as may be applicable.   
6.10.    Code Section 409A.  This Agreement is intended to comply with the provisions of Section 409A of the United States Internal Revenue Code and the rules and regulations promulgated thereunder (collectively, “Code Section 409A”), and this Agreement and the Program shall, to the extent practicable, be construed in accordance therewith.  To the extent there is any ambiguity in this Agreement as to its compliance with Code Section 409A, this Agreement shall be read to conform with the requirements of Code Section 409A, and the Company may, in its sole discretion, amend or replace this Agreement to cause this Agreement to comply with Code Section 409A.  Neither the Company nor Executive shall have the right to accelerate or defer the delivery of any consideration provided under this Agreement except 

10

to the extent specifically permitted or required by Code Section 409A.  Terms defined in this Agreement and the Program shall have the meanings given such terms under Code Section 409A if and to the extent required to comply with Code Section 409A.  In any event, the Company makes no representations or warranty and shall have no liability to Executive or any other person if any provisions of or payments under this Agreement are determined to constitute deferred compensation subject to Code Section 409A but not to satisfy the conditions of that section. In the event a payment under this Agreement is made within six (6) months following the date of Executive’s separation from service (within the meaning of Code Section 409A), the following additional payment timing rule shall apply: (a) if Executive is determined by the Company to be a “specified employee” (within the meaning of Code Section 409A, determined using the identification methodology selected by the Company from time to time), and (b) the Company shall make a good faith determination that an amount payable to Executive hereunder constitutes deferred compensation (within the meaning of Code Section 409A) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Code Section 409A in order to avoid taxes or penalties under Code Section 409A, then nothing in this Agreement shall require the Company to pay or authorize payment of such amount on the otherwise scheduled payment date pursuant to this Agreement but the Company shall instead pay it or authorize payment without interest, on the first business day after such six-month period, or if earlier, upon the Executive’s death.
6.11.    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument.
6.12.    Titles and Headings.  Titles and headings of sections of this Agreement are for convenience only and shall not affect the construction of any provision of this Agreement.

[signature page follows]

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IN WITNESS WHEREOF, the Company and Executive have executed this Agreement effective as of the Retirement Date.
	
					
	 
	NEWPARK RESOURCES, INC.:
	 
	 
	EXECUTIVE:

	 
	 
	 
	 
	 

	By:
	/s/ E. Chipman Earle
	 
	Signature:
	/s/ Mark J. Airola

	Name:
	E. Chipman Earle
	 
	Printed Name:
	Mark Airola

	Title:
	VP, General Counsel & CAO
	 
	Date:
	10/2/2018

	Date:
	10/2/2018
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

[Signature Page to “Retirement, Agreement and General Release”]

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