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INTEGER HOLDINGS CORPORATION
2021 OMNIBUS INCENTIVE PLAN
RSU AGREEMENT FOR NON-EMPLOYEE DIRECTORS

The Participant has been granted an Award (the “Award”) of Restricted Stock Units (“RSUs”) pursuant to the Integer Holdings Corporation 2021 Omnibus Incentive Plan (as it may be amended from time to time, the “Plan”), and this RSU Agreement (this “Agreement”), dated as indicated in Appendix A (the “Grant Date”).  Except as otherwise indicated, any capitalized term used but not defined herein shall have the meaning set forth in the Plan. 
1.Issuance of Shares.  Each RSU shall represent the right to receive one Share upon the vesting of such RSU, as determined in accordance with and subject to the terms of this Agreement and the Plan.  The number of RSUs is set forth in Appendix A.
2.Vesting Dates.  Subject to Section 3, the Award shall vest on the dates set forth in Appendix A.
3.Termination of Service; Change in Control.  In the event of a Termination of Service or Change in Control, the RSUs will be treated in accordance with Section 12 of the Plan.  Notwithstanding any contrary provision of this Agreement, the balance of the RSUs that have not vested pursuant to Section 2 or this Section 3 will be automatically forfeited as of the date that the Participant’s services as a Director terminate for any reason.
4.Voting Rights.  The Participant shall have no voting rights or any other rights as a shareholder of the Company with respect to the RSUs unless and until the Participant becomes the record owner of the Shares underlying the RSUs.
5.Dividend Equivalents.  If a dividend is declared on Shares during the period commencing on the Grant Date and ending on the date on which the Shares underlying the RSUs are distributed to the Participant pursuant to this Agreement, the Participant shall be eligible to receive an amount equal to the dividend that the Participant would have received had the Shares underlying the RSUs been held by the Participant as of the record date for such dividend (a “Dividend Equivalent”).  Such Dividend Equivalent will be subject to the same vesting conditions as the original RSU granted under this Agreement.  Each Dividend Equivalent will be settled in cash as soon as reasonably practicable (and in no event later than 60 days) after the applicable Vesting Date of the corresponding RSUs.  For clarity, no Dividend Equivalent will be paid with respect to any RSUs that are forfeited.
6.Distribution of Shares.  Subject to the provisions of this Agreement, upon the vesting of any of the RSUs, the Company shall deliver to the Participant, as soon as reasonably practicable (and in no event later than 60 days) after the applicable Vesting Date, one Share for each such RSU.  Upon the delivery of Shares, such Shares shall be fully assignable, alienable, saleable and transferrable by the Participant; provided that any such assignment, alienation, sale, transfer or other alienation with respect to such Shares shall be in accordance with applicable securities laws and any applicable Company policy.
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7.Responsibility for Taxes.  The Participant acknowledges that, regardless of any action taken by the Company, the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to the Participant’s participation in the Plan and legally applicable to the Participant (“Tax-Related Items”) is and remains the Participant’s responsibility and may exceed the amount actually withheld by the Company.  The Participant further acknowledges that the Company (i) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including, but not limited to, the grant, vesting or settlement of the Award, the subsequent sale of Shares acquired upon settlement of the Award and the receipt of any dividends and/or Dividend Equivalents; and (ii) does not commit to and is under no obligation to structure the terms of the grant or any aspect of the Award to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result. 
8.Cancellation/Clawback.  The Participant hereby acknowledges and agrees that the Participant and the Award are subject to the terms and conditions of Section 18 (Cancellation or “Clawback” of Awards) of the Plan.
9.Provisions of Plan Control.  This Agreement is subject to all the terms, conditions and provisions of the Plan, including the amendment provisions thereof, and to such rules, regulations and interpretations relating to the Plan as may be adopted by the Committee and as may be in effect from time to time.  The Plan is incorporated herein by reference.  If and to the extent that this Agreement conflicts or is inconsistent with the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly.
10.Notices.  Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given when delivered personally or by courier, or sent by certified or registered mail, postage prepaid, return receipt requested, duly addressed to the party concerned at the address indicated below or to such changed address as such party may subsequently by similar process give notice of:
If to the Company:
Integer Holdings Corporation
Corporate Secretary, Integer Holdings Corporation
5830 Granite Parkway, Suite 1150, Plano, Texas 75024
Attention: General Counsel

If to the Participant, to the address of the Participant on file with the Company.
11.No Right to Continued Service.  The grant of the Award shall not be construed as giving the Participant the right to be retained in the employ of, or to continue to provide services to, the Company or any Affiliate.
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12.No Right to Future Awards.  Any Award granted under the Plan shall be a one-time Award that does not constitute a promise of future grants.  The Company, in its sole discretion, maintains the right to make available future grants under the Plan.
13.Transfer of RSUs.  Except as may be permitted by the Committee, neither the Award nor any right under the Award shall be assignable, alienable, saleable or transferable by the Participant other than (a) by will or pursuant to the laws of descent and distribution or (b) by order of any court of competent jurisdiction, including with respect to any domestic relations order or divorce decree.  This provision shall not apply to any portion of the Award that has been fully settled and shall not preclude forfeiture of any portion of the Award in accordance with the terms herein.
14.Entire Agreement.  This Agreement, the Plan and any other agreements, schedules, exhibits and other documents referred to herein or therein constitute the entire agreement and understanding between the parties in respect of the subject matter hereof and supersede all prior and contemporaneous arrangements, agreements and understandings, both oral and written, whether in term sheets, presentations or otherwise, between the parties with respect to the subject matter hereof.
15.Severability.  If any provision of this Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or this Agreement under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of this Agreement, such provision shall be stricken as to such jurisdiction, and the remainder of this Agreement shall remain in full force and effect.
16.Amendment; Waiver.  No amendment or modification of any provision of this Agreement that has a material adverse effect on the Participant shall be effective unless signed in writing by or on behalf of the Company and the Participant; provided that the Company may amend or modify this Agreement without the Participant’s consent in accordance with the provisions of the Plan or as otherwise set forth in this Agreement.  No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different nature.  Any amendment or modification of or to any provision of this Agreement, or any waiver of any provision of this Agreement, shall be effective only in the specific instance and for the specific purpose for which such amendment, modification or waiver is made or given.
17.Assignment.  Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by the Participant.
18.Successors and Assigns; No Third-Party Beneficiaries.  This Agreement shall inure to the benefit of and be binding upon the Company and the Participant and their respective heirs, successors, legal representatives and permitted assigns.  Nothing in this Agreement, express or implied, is intended to confer on any Person other than the Company and the 
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Participant, and their respective heirs, successors, legal representatives and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.
19.Dispute Resolution.  All controversies and claims arising out of or relating to this Agreement, or the breach hereof, shall be settled by the Company’s mandatory dispute resolution procedures, if any, as may be in effect from time to time with respect to matters arising out of or relating to the Participant’s employment with the Company.
20.Governing Law; Venue.  All matters arising out of or relating to this Agreement and the transactions contemplated hereby, including its validity, interpretation, construction, performance and enforcement, shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect to its principles of conflict of laws.  For purposes of any action, lawsuit or other proceedings brought to enforce this Agreement, relating to it, or arising from it, the parties hereby submit to and consent to the sole and exclusive venue of the courts of Collin County, Texas, or the federal courts for the United States for the Eastern District of Texas, and no other courts.
21.Imposition of other Requirements and Participant Undertaking.  The Company reserves the right to impose other requirements on the Participant’s participation in the Plan, on the Award and on any Shares to be issued upon settlement of the Award, to the extent the Company determines it is necessary or advisable for legal or administrative reasons.  The Participant agrees to take whatever additional action and execute whatever additional documents the Company may deem necessary or advisable to accomplish the foregoing or to carry out or give effect to any of the obligations or restrictions imposed on either the Participant or the RSU pursuant to this Agreement. 
22.References.  References herein to rights and obligations of the Participant shall apply, where appropriate, to the Participant’s legal representative or estate without regard to whether specific reference to such legal representative or estate is contained in a particular provision of this Agreement.
Acceptance, Acknowledgment and Receipt    

By accepting the Award Agreement, I, the Participant, hereby: 

•acknowledge and confirm my consent to receive electronically the Award Agreement, the Plan and any other Plan documents or other related communications that the Company wishes or is required to deliver;

•acknowledge that a copy of the Plan and the related Plan documents were made available to me; 

•agree that the electronic acceptance of the Award Agreement constitutes a legally binding acceptance of the Award Agreement, and that the electronic acceptance of the Award Agreement shall have the same force and effect as if the Award Agreement was physically signed.
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Appendix A
PARTICIPANT:        [Dynamic]

Except as otherwise indicated, any capitalized term used but not defined herein shall have the meaning set forth in the Integer Holdings Corporation 2021 Omnibus Incentive Plan (as it may be amended from time to time, the “Plan”).

The Participant has been granted an Award of RSUs under the Plan, subject to the terms and conditions of the Plan and the Agreement.
 
Date of Grant:         [Dynamic]

Grant Number:         [Dynamic]

Number of RSUs:         [Dynamic]

Vesting 
Commencement Date:    [Dynamic]
 
Vesting Schedule:          [Dynamic]

A-1Document

    

Integer.net
2595 Dallas Parkway, Suite 310
Dallas, TX 75034

Kirk Thor
Executive Vice President & Chief Human Resources Officer

April 10, 2019

Joel Becker

Dear Joel:

On behalf of Integer Holdings Corporation ("Integer" or the "Company"), I am pleased to present you with this offer for the position of President of our Cardiac Rhythm Management & Neuromodulation product category, reporting directly to the Company's President & Chief Executive Officer.  In that role, you will be a member of the Company's Executive Leadership Team. Your primary place of employment will be the Company's offices in Plano, Texas. "Effective Date" as used in this letter will be the agreed upon employment start date.

You agree to the best of your ability and experience that you will, at all times, loyally and conscientiously perform all of the duties and obligations required of the position, and abide fully with the Company's Code of Ethics.

During the term of your employment, you further agree that you will devote all of your business time and attention to the business of the Company and that you will not, directly or indirectly, engage or participate in any personal, business, charitable or other enterprise that is competitive in any manner with the business of the Company, whether or not such activity is for compensation.

Compensation 

Through compensation, benefits and annual and long-term incentive programs, Integer provides its Executives with significant opportunities on a reward for performance basis.  The objective of these programs is to recognize and reward individual and Company performance.  

Base Salary:  As of the Effective Date, your base salary will be $400,000 per annum, earned and payable bi-weekly at a rate of $15,384.62.  The Company will, in good faith, review your performance and salary on an annual basis beginning in 2020, and will consider appropriate increases in your salary based on your performance and the successful achievement of agreed upon objectives.  The Company’s performance year is consistent with its fiscal year.

Incentive Awards:  As a member of the Executive Leadership Team, you are directly awarded for your individual performance and impact on the Company’s short- and long-term success.

Beginning on the Effective Date, you will be eligible to participate in the Company’s Short-Term Incentive (STI) plan.  The STI plan provides an award reflecting your grade level and your contributions.  Your 2019 STI incentive will be 60% of your base salary, or $240,000, at target, pro-rated based on the Effective Date.  Depending on the performance results achieved, you can earn up to 200% of the total target bonus.

Beginning in 2020, you will be eligible to participate in the Company’s Long-Term Incentive (LTI) Plan.  Under the LTI plan, you have the opportunity for equity awards at significant levels.  It is intended to reward performance that drives Integer in the achievement of its strategic and operating goals.  Your 2020 LTI incentive will be $460,000 at target.  

Special Equity Grant:  We also are pleased to provide you with an equity grant having an aggregate value of $325,000 consisting of Restricted Stock Units,  of which one-third of the equity grant will be time-based ("Time-Based RSUs"), one-third of the equity grant will be performance-based using cumulative organic sales growth ("Financial PSUs"), and one-third of the equity grant will be performance-based using relative total shareholder return ("TSR PSUs").  The Time-Based RSUs will vest in three equal annual installments beginning on the first anniversary of the Effective Date. The Financial PSUs will vest dependent upon Integer's achievement of the cumulative organic sales growth target during the three-year performance period commencing with the 2019 fiscal year.  The TSR PSUs will vest dependent upon Integer's relative total shareholder return versus Integer's peer group during the three-year performance period commencing with the 2019 fiscal year. These awards will be documented through separate award agreements, which will be subject to approval by the Compensation & Organization Committee of the Board of Directors as soon as practicable.
Sign-On Cash Bonus:  Upon the Effective Date, you will be eligible for an $80,000 cash award that will be paid to you along with your base salary in the first payroll after the Effective Date.

Your annual merit increase, STI, and LTI awards will be granted in conjunction with the Company’s annual performance review process, which generally concludes within 3 months of the end of the Company’s fiscal year.  The STI and LTI awards are determined each year by the Board of Directors based on an individual’s role and performance.  Your participation in both the STI and LTI plan is subject to the terms of the plans which the Company modifies from time to time in its discretion. 

Other Benefits

You will be entitled to participate in the programs from time-to-time generally offered to Associates of the Company, which currently include medical, dental and vision coverage, a 401(k) plan, and other programs described in the attached benefit summary.  You also will be entitled to participate in the additional programs offered to other Executive Officers of the Company.  Those current benefits currently include the following:

Life Insurance:  At the Company’s expense and subject to you meeting the underwriters’ insurability standards, term life insurance with a total face value of $1,000,000, with the death beneficiary designated by you.

Disability:  Participation in the Executive long-term disability program currently providing a benefit equal to 60% of base salary and short-term incentive (short-term incentive is calculated using the average of payments from the last two years), subject to a monthly maximum payment of $18,000.

Executive Physical Examination:  Consistent with our interest in you maintaining your personal health, eligibility for the key management Physical Examination Program. 

Financial Planning Assistance:  This benefit provides reimbursement of certain expenses incurred in connection with your personal financial and estate planning.  The maximum reimbursable amount is $5,000 in the first year of eligibility, and $2,500 per year thereafter.
 
Director and Officer Liability and Fiduciary Insurance:  You will be covered by the Company’s Director and Officer Liability Insurance policies.  In addition, you will be covered by the Company’s fiduciary liability insurance for any service related to employee benefit plans.  

Homeowner Relocation:  You will be eligible to participate in the Company’s homeowner’s relocation program, as described in the enclosed policy and summary.  You will have until December 31, 2020 to relocate to the Company’s headquarter location in Plano, Texas.

All plans, policies and programs described in this section are subject to change at any time at the sole discretion of the Company.  

Reimbursement of Expenses

You will be reimbursed for reasonable expenses that you may incur on behalf of and at the request of the Company in the performance of your responsibilities and duties, with the expectation that you will exercise reasonable and prudent expense control practices that are subject to audit by a designated representative of the Compensation and Organization Committee. Given that you may be required to attend evening events and/or dinners, the Company will reimburse you for related business travel, hotel and meal expenses.  

Change of Control

If your employment is terminated following a Change of Control, as defined under the Change of Control Agreement to be entered into between you and the Company, the form of which is enclosed, the Company will provide you with the payments and benefits to which you are entitled under the terms of the Change of Control Agreement.

At-Will Employment
In accepting this new position with the Company, you certify that you understand and accept that your employment will be on an at-will basis, and that except as expressly set forth herein neither you nor any Company representative has entered into a contract regarding the terms or the duration of your employment.  As an at-will employee, you will be free to terminate your employment with the Company at any time, with or without cause or advance notice.  Likewise, the Company will have the right to terminate your employment at any time, with or without cause or advance notice. 

Termination of Employment

If at any time during your employment the Company terminates your employment for any reason other than Cause,you will be entitled to receive a severance benefit, payable in a single lump sum cash payment, that is equal to the sum of one year of your current base salary at the time of your termination of employment and the amount the Company reasonably anticipates it would otherwise have contributed to the Company's medical plan on your behalf for the 12 months following the date of termination, less applicable tax withholdings. As a condition of receipt of the severance benefit, you will be required to execute a Separation Agreement and Release satisfactory to the Company in its reasonable discretion within 45 days after the date of termination of your employment and not thereafter revoke the Separation Agreement and Release as permitted therein. If you timely provide an effective Separation Agreement and Release to the Company, the severance benefit will be paid
on the 60th day following your termination of employment. Notwithstanding the foregoing, no severance benefit will be paid under this paragraph if a severance benefit is payable under the Change of Control Agreement.

If your employment is terminated for Cause (as hereinafter defined),you will not be eligible for the continuation of pay or benefits with the exception of accrued benefits. "Cause" means a material breach of this letter, gross negligence or willful misconduct in the performance of your duties, dishonesty to the Company, or the commission of a felony that results in a conviction of law.

Code Section 409A Compliance

It is intended that all terms and payments under this letter comply with and be administered in accordance with Section 409A of the Internal Revenue Code (the “Code”) so as not to subject you to payment of interest or any additional tax under Code Section 409A.  All terms of this letter that are undefined or ambiguous will be interpreted in a manner that is consistent with Code Section 409A if necessary to comply with Code Section 409A.  If payment or provision of any amount or benefit under this letter at the time specified would subject such amount or benefit to any additional tax under Code Section 409A, the payment or provision of such amount or benefit will be postponed, if possible, to the earliest commencement date on which the payment or provision of such amount or benefit could be made without incurring such additional tax.  The Company will, to the extent reasonably possible, amend this letter in order to comply with Code Section 409A and avoid the imposition of any interest or additional tax under Code Section 409A; provided, however, that no amendment is required if such amendment would change the amount payable by the Company under this letter. 

Notwithstanding any other provision of the letter, if it is determined that you are a Specified Employee and that any amount or benefit payable under this letter (a) is subject to Code Section 409A and (b) is payable solely because you have incurred a separation from service, then the amount or benefit will not be paid (or begin to be paid) prior to the date that is six months after the date of your separation from service (or, if earlier, your date of death).  Payment of any amount or benefit to which you would otherwise be entitled during the first six months following the date of your separation from service will be accumulated and paid on the day that is six months after the date of your separation from service.  For purposes of this letter, a “Specified Employee” is an individual who is determined to be a “specified employee” within the meaning of Code Section 409A.

Any reimbursement of expenses or in-kind benefits provided under this letter subject to, and not exempt from, Code Section 409A will be subject to the following additional rules: (i) any reimbursement of eligible expenses will be paid on or before the last day of the calendar year following the calendar year in which the expenses were incurred; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during any calendar year will not affect the amount of expenses eligible for reimbursement, or in-kind benefits to be provided, during any other calendar year; and (iii) the right to reimbursement or in-kind benefits will not be subject to liquidation or exchange for another benefit.

Status of Offer

This offer is contingent upon (1) the receipt of a negative result on your drug test, (2) the receipt of satisfactory results of a pre-employment background verification check, and (3) the acceptance of the Company’s Inventions, Non-Disclosure, Non-Competition and Non-Solicitation Agreement.  The federal government requires all employers to verify an employee’s eligibility to work in the United States.  Please bring documentation with you on your first day of employment to prove your work eligibility status.

Acceptance

By accepting the offer presented in this letter, you represent that you are not currently bound by any contractual provisions (including a non-compete clause or other similar restriction, signed or agreed to with respect to your employment by any present or former employer) that prevents, hinders or limits your ability to work for the Company or any of its subsidiaries in the manner set forth in this letter.

To the extent that you have any confidential or proprietary information of any former employer, you acknowledge that you will keep all such information confidential and will not disclose or make available, directly or indirectly, at any time, any such information to the Company or any of its subsidiaries, managers or employees.  

To confirm your acceptance of this position, please sign this letter on the line below and return to my attention via email at kirk.thor@integer.net. 

Joel, we are looking forward to having you join Integer as a member of the Executive Leadership Team.   

Sincerely,
												
				
	/s/ Kirk Thor
			
	Kirk Thor			
	Executive Vice President & Chief Human Resources Officer	

Understood, agreed and accepted:
												
				
	/s/ Joel Becker
		April 18, 2019
	
	Joel Becker		Date	

Enclosures:  
•Change of Control Agreement 
•Officer Indemnification Agreement
•Inventions, Non-Disclosure, Non-Competition and Non-Solicitation Agreement
•Integer Relocation Policy – Homeowner

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