Document:

Exhibit 10.1

 

PROTECTIVE LIFE CORPORATION

LONG-TERM INCENTIVE PLAN

(Originally effective January 1, 2018)

(Amended and Restated as of November 6, 2018)

 

1.                                      Purpose.  The purpose of the Protective Life Corporation Long-Term Incentive Plan is to further the long-term growth in profitability of Protective Life Corporation by offering long-term incentives to those key executives, officers and employees who will be largely responsible for such growth.

 

2.                                      Definitions.

 

“Award” shall mean any grant or award made under the Plan.

 

“Award Agreement” shall mean any agreement, letter and/or other provisions document that evidences and/or governs an Award.

 

“Award Period” shall mean the period of calendar years fixed by the Committee with respect to all Performance Unit Awards with the same Date of Grant (but no more than five years) commencing with each Date of Grant, except that the Award Period for a recently hired employee or an employee with a new position or title may be for such lesser period as determined by the Committee.

 

“Board” shall mean the Board of Directors of the Company.

 

“Cause” shall mean (i) a conviction or plea of nolo contendere to a felony; (ii) an act or acts of extreme dishonesty or gross misconduct; or (iii) a violation of the Company’s Code of Business Conduct.

 

“Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations thereunder.

 

“Code Section 409A” shall mean Section 409A of the Code and any regulations, authorities, rulings, or guidance issued thereunder.

 

“Committee” shall mean the Compensation and Management Succession Committee of the Board (or such other committee of the Board as the Board shall designate from time to time) or any subcommittee thereof.

 

“Company” shall mean Protective Life Corporation, a Delaware corporation.

 

“Company Change in Control” shall mean, subject to Code Section 409A, as applicable, the occurrence of one or more of the following: (i) any one person or more than one person acting as a group (as provided in Code Section 409A) other than Parent or any of its affiliates (such person or group, an “Acquiring Person”) acquires beneficial ownership of the Company’s stock (within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended) that, together with stock previously held by the Acquiring Person, constitutes more than 50% of the total fair market value or more than 50% of the total voting power of the Company, or (ii) an Acquiring Person acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Acquiring Person) assets from the Company that have a total gross fair market value equal to or more than 80% of the total gross fair market value of the Company’s assets immediately before such acquisition or acquisitions.

 

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“Company Change in Control Book Value Per Unit” shall mean (i) the PL Tangible Book Value, determined as of the date on which the Company Change in Control occurs, divided by (ii) the Total PL Units as of the date on which the Company Change in Control occurs.

 

“Date of Grant” shall mean (i) with respect to a Performance Unit Award, as of January 1 of the year in which such Award is made and (ii) with respect to a Restricted Unit Award or Parent-Based Award, the date of grant set forth in the Award Agreement associated with such Award.

 

“Disability” shall mean that the Participant (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of at least 12 months, (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of at least 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the Company, or (iii) has been determined to be totally disabled by the Social Security Administration.

 

“Early Retirement” shall mean retirement at or after the time at which the Participant obtains eligibility for early retirement, but before Normal Retirement age, under the terms of the Pension Plan.

 

“Early Vesting” shall mean “Early Vesting” as defined in the respective Award Agreement, as applicable.

 

“Eligible Employee” shall mean any person (including any officer) employed by the Company or any Subsidiary.

 

“Employment” shall mean continuous and regular salaried employment with the Company or a Subsidiary, which shall include (unless the Committee shall otherwise determine) any period of vacation, any approved leave of absence and any salary continuation or severance pay period and, at the discretion of the Committee, may include service with any former Subsidiary of the Company.

 

“Final Parent Stock Value” shall mean the average of the closing prices of a share of common stock of the Parent as reported on the Tokyo Stock Exchange for each trading day in the December immediately preceding the payment of a Parent-Based Award (or, if applicable, as specified under Section 8(c), as of the date of a Company Change in Control or a Parent Change in Control), unless the Committee otherwise determines in any Award Agreement.

 

“Initial Parent Stock Value” shall mean the average of the closing prices of a share of common stock of the Parent as reported on the Tokyo Stock Exchange for each trading day in the month immediately preceding the month containing the Date of Grant of any Parent-Based Award, unless the Committee otherwise determines in any Award Agreement.

 

“Initial Value” shall mean the initial dollar value assigned to a Participant’s Parent-Based Awards, as specified in such Participant’s Award Agreement.

 

“Interim Period” shall mean a period of calendar years chosen by the Committee commencing with any Date of Grant, which period is less than the Award Period commencing on the Date of Grant.

 

“Merger” means the merger of another subsidiary of the Parent with and into the Company as of February 1, 2015.

 

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“Normal Retirement” shall mean retirement at or after the earliest age at which the Participant may retire and receive a retirement benefit without an actuarial reduction for early commencement of benefits under the terms of the Pension Plan.

 

“Parent” shall mean Dai-ichi Life Holdings, Inc., or any successor thereto.

 

“Parent-Based Award” shall mean a cash-denominated Award granted under Section 7 based on the value of the common stock of the Parent over the life of the Award.

 

“Parent Change in Control” shall mean the occurrence of any one person or more than one person acting as a group acquiring beneficial ownership of Parent’s common stock that, together with stock previously held by such person or group, constitutes more than 50% of the total fair market value or more than 50% of the total voting power of Parent.

 

“Parent Stock Percentage” shall mean the percentage derived from dividing the Final Parent Stock Value by the Initial Parent Stock Value.

 

“Participant” shall mean an Eligible Employee who is selected by the Committee to receive an Award under the Plan.

 

“Pension Plan” shall mean the qualified Protective Life Corporation Pension Plan.

 

“Performance Unit” shall mean any Award granted under Section 5 which becomes vested and nonforfeitable upon the attainment, in whole or in part, of performance objectives determined by the Committee.

 

“PL Tangible Book Value” as of any date shall mean the Company’s consolidated GAAP book value of equity less accumulated other comprehensive income, less goodwill created by the Merger (net of impairments), less other intangible assets created by the Merger (net of deferred taxes, accumulated amortization, and impairment), less any cumulative effect adjustments from new accounting pronouncements, plus all dividends paid in excess of planned amounts during the performance period, plus any lost income (determined based on the 30 year treasury rate) on dividends in excess of planned amounts (plus any management fee paid to the Parent).

 

“PL Tangible Book Value Per Unit” as of any date shall mean the quotient of (i) PL Tangible Book Value as of the date of the most recently reported quarterly balance sheet last preceding the date of determination, as specified below in various circumstances, divided by (ii) the Total PL Units as of the date of determination.

 

“Plan” shall mean this Protective Life Corporation Long-Term Incentive Plan as set forth herein and as may be amended from time to time.

 

“Regular Vesting Schedule” shall mean “Regular Vesting Schedule” as defined in the respective Award Agreement, as applicable.

 

“Restricted Unit” shall mean any Award granted under Section 6 which becomes vested and nonforfeitable, in whole or in part, upon the satisfaction of such conditions as shall be determined by the Committee.

 

“Specified Employee” shall mean, subject to any Specified Employee Policy of the Company, with respect to April 1 of each calendar year (beginning April 1, 2005) and for the 12-month period

 

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thereafter, any person who met the definition of a “key employee” of the Company under Code Section 416(i) (without regard to Code Section 416(i)(5)) at any time during the preceding calendar year, all as provided in Code Section 409A.

 

“Subsidiary” shall mean any corporation of which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined voting power of all classes of stock of such corporation and any other business organization, regardless of form, in which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined equity interests in such organization.

 

“Termination of Employment” shall mean a Participant’s “separation from service” with the Company and the Subsidiaries and affiliates by which the Participant is employed, as defined in Code Section 409A (which definition does not include a termination of employment due to death).

 

“Total PL Units” shall be the number of units equal to (i) the number of units determined by dividing (x) PL Tangible Book Value as of the most recently reported quarterly balance sheet preceding the Date of Grant by (y) $100; plus (ii) the number of units determined by dividing (A) the dollar amount or value of any capital contribution made to the Company directly or indirectly by the Parent during the Award period by (B) the PL Tangible Book Value Per Unit determined as of the date of the most recently reported quarterly balance sheet preceding the date the capital contribution is made.

 

3.                                      Administration of the Plan.

 

The Plan shall be administered by the Committee which, subject to the provisions of the Plan, shall have the authority to select the Eligible Employees who are to participate in the Plan, to determine the Awards to be made to each Participant, and to determine the conditions subject to which Awards will become payable under the Plan. Notwithstanding anything else contained herein to the contrary, the Committee may delegate any and all of its duties and responsibilities (including the selection of Eligible Employees to be Participants under Section 4 hereof) in respect of all Participants other than the Executive Chairman, President and Chief Executive Officer and all members of the Company’s Performance and Accountability Committee to a committee of officers comprised of the President and Chief Executive Officer, and any two or more of his or her direct reports, as determined from time to time in his or her sole discretion.

 

The Committee shall have full power to administer and interpret the Plan and to adopt such rules and regulations consistent with the terms of the Plan as the Committee deems necessary or advisable in order to carry out the provisions of the Plan.  Except as otherwise provided in the Plan, the Committee’s interpretation and construction of the Plan and the Award Agreements and its determination of any conditions applicable to Awards or the granting of Awards to specific Participants shall be conclusive and binding on all Participants.

 

In connection with its determination as to the extent to which any Performance Unit Award has been earned or the payment of any such Award, the Committee has full discretion to adjust the calculation of any performance objective or criteria applicable to such Award, including, without limitation, PL Tangible Book Value, in order to recognize special or nonrecurring situations or circumstances for the Company or any other Subsidiary, corporation or entity (including, without limitation, changes in accounting principles) for the applicable Award Period or any portion thereof.  Additionally, in connection with its grant of any Award of Restricted Units, or its determination as to the extent to which any such Award has been earned or the payment of any such Award, the Committee has full discretion to adjust the definition and calculation of PL Tangible Book Value in order to recognize special or nonrecurring situations or circumstances for the Company.

 

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The Committee may employ such legal counsel, consultants and agents (including counsel or agents who are employees of the Company or a Subsidiary) as it may deem desirable for the administration of the Plan and may rely upon any opinion received from any such counsel, consultant or agent and any computation received from any such consultant or agent.  All expenses incurred in the administration of the Plan, including, without limitation, for the engagement of any counsel, consultant or agent, shall be paid by the Company.  No member or former member of the Board or the Committee shall be liable for any act, omission, interpretation, construction or determination made in connection with the Plan other than as a result of such individual’s willful misconduct.

 

The Plan shall be unfunded.  Benefits under the Plan shall be paid from the general assets of the Company.

 

4.                                      Participation.  Participants in the Plan shall be selected by the Committee from those Eligible Employees who, in the judgment of the Committee, have a substantial opportunity to influence the long-term profitability of the Company.

 

5.                                      Performance Units.

 

(a)                                 Grant of Performance Units.

 

(i)                                     After appropriate approval of the Plan, and thereafter from time to time, the Committee shall select Eligible Employees to receive Performance Unit Awards in any year as of the Date of Grant. Any Eligible Employee may be granted more than one Performance Unit Award under the Plan. An Award of Performance Units hereunder shall not be made unless such Award is in compliance with all applicable law.

 

(ii)                                  Payment of a Performance Unit Award to any Participant shall be made in accordance with this Section 5 and shall be subject to such conditions for payment as the Committee may prescribe in an Award Agreement or otherwise.  The Committee may prescribe different conditions for different Participants.  The performance objectives with respect to such Award shall be related to at least one of the following criteria, which may be determined solely by reference to the performance of the Company or a division or Subsidiary or based on comparative performance relative to other companies: (i) pre-tax and/or after-tax adjusted operating income, operating earnings, net income, operating income, book value, embedded value or economic value added of the Company or a Subsidiary, division or business unit (including measures on a per share basis) or the accumulated earnings of any of the foregoing, (ii) return on equity, assets or invested capital, (iii) assets, sales or revenues, or growth in assets, sales or revenues, of the Company or a Subsidiary, division or business unit, (iv) efficiency or expense management (such as unit cost), (v) risk management or third-party ratings, (vi) capital adequacy (including risk-based capital), (vii) investment returns or asset quality, (viii) premium income or earned premium, (ix) value of new business or sales, (x) negotiation or completion of acquisitions, financings or similar transactions, (xi) customer service metrics, and (xii) such other reasonable criteria as the Committee may determine.  Except to the extent otherwise expressly provided herein, the Committee may, at any time and from time to time, change the performance objectives applicable with respect to any Performance Units to reflect such factors, including, without limitation, changes in a Participant’s duties or responsibilities or changes in business objectives (e.g., from corporate to Subsidiary or division performance or vice versa), as the Committee shall deem necessary or appropriate.  In making any such adjustment, the Committee shall adjust the number of Performance Units or take other appropriate actions to prevent any enlargement or diminution of the Participant’s rights related to service rendered and performance attained prior to the effective date of such adjustment.

 

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(iii)                               Each Performance Unit Award shall be made in writing and shall set forth the terms and conditions set by the Committee for payment of such Award including, without limitation, the length of the Award Period and whether there will be an Interim Period with respect to the Award and, if so, the length of the Interim Period.  Except as provided in the immediately following sentence, no Performance Unit Award may become payable based on a performance period of less than 12 months.  The limitations in the immediately preceding sentence shall not apply (1) in the event of a Participant’s (x) death, (y) Disability, or (z) Early Retirement or Normal Retirement, or (2) in the event of a Company Change in Control.

 

(b)                                 Payment of Performance Unit Awards.  Each Participant who is granted a Performance Unit Award shall be entitled to payment of the Award as of the close of the Award Period applicable to such Award, but only if and after the Committee has determined that the conditions for payment of the Award set by the Committee have been satisfied.  At the time of grant of each Performance Unit Award, the Committee shall decide whether there will be an Interim Period.  If the Committee determines that there shall be an Interim Period for the Award to any Participant, each such Participant granted a Performance Unit Award with an Interim Period shall be entitled to partial payment on account thereof as of the close of the Interim Period, but only if and after the Committee has determined that the conditions for partial payment of the Award set by the Committee have been satisfied.  Performance Units paid to a Participant for an Interim Period may be retained by the Participant and shall not be repaid to the Company, notwithstanding that based on the conditions set for payment at the end of the Award Period such Participant would not have been entitled to payment of some or any of the Award.  Any Performance Units paid to a Participant for the Interim Period during an Award Period shall be deducted from the Performance Units to which such Participant is entitled at the end of the Award Period.

 

As soon as practicable, but not later than 60 days, after the end of the Award Period, the Committee will determine the extent to which any Performance Unit Award has been earned. Unless otherwise directed by the Committee, the Company shall make payment of Performance Unit Awards as soon as reasonably practicable after the Committee determines that payment has been earned, but not later than the March 15 following the end of the Award Period. Unless otherwise directed by the Committee, all payments of Performance Unit Awards to Participants shall be made in cash. There shall be deducted from all Performance Unit Award payments all taxes to be withheld with respect to such Awards.

 

Unless otherwise set forth in an Award Agreement, for payment of each Performance Unit Award, the value of each earned Performance Unit shall equal the PL Tangible Book Value Per Unit determined as of the date of the most recently reported quarterly balance sheet preceding the date payment is made.

 

(c)                                  Termination.

 

(i)                                     Termination Due to Death, Disability or Retirement.  Unless the Committee determines to provide for treatment that is more favorable to a Participant on such terms and conditions as the Committee may determine, if a Participant experiences a Termination of Employment by reason of Disability, Early Retirement or Normal Retirement, or upon a Participant’s death, such Participant (or, as applicable, such Participant’s legal representative or beneficiary) will receive a payment with respect to a pro-rata portion of such Participant’s Performance Units, determined based on a fraction, the numerator of which is such Participant’s period of employment during the Award Period and the denominator of which is the total number of days in the Award Period. The amount in respect of such Participant’s pro-rated Performance Units will be determined by applying the performance achieved through the end of the Award Period against the performance schedules set forth in the Award Agreement. The remaining portion of such Participant’s Performance Units (i.e., the excess over the pro-rated portion) shall be

 

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forfeited as of the date of such Participant’s Termination of Employment by reason of Disability, Early Retirement or Normal Retirement or the date of such Participant’s death, as applicable.

 

(ii)                                  Special Termination.  If a Participant experiences a Termination of Employment by reason of (1) the divestiture of a business segment or a significant portion of the assets of the Company, or (2) a significant reduction by the Company in its salaried work force, the determination of whether, to what extent, and on what conditions any payment shall be made with respect to any unvested portion of such Participant’s Performance Unit Award shall be at the discretion of the Committee. Any portion of such Participant’s Performance Units which the Committee determines is not eligible for payment under this Section 5(c)(ii) shall be forfeited as of the date of such Participant’s Termination of Employment.

 

(iii)                               Other Termination.  Unless the Committee determines to provide for treatment that is more favorable to a Participant on such terms and conditions as the Committee may determine, if a Participant experiences a Termination of Employment for any reason not set forth in Sections 5(c)(i) or (ii), any unvested portion of such Participant’s Performance Unit Award shall be forfeited as of the date of such Participant’s Termination of Employment.

 

(iv)                              Termination for Cause. Unless the Committee determines to provide for treatment that is more favorable to a Participant on such terms and conditions as the Committee may determine, if a Participant experiences a Termination of Employment for Cause prior to the date such Participant’s Performance Units are paid pursuant to Section 5(b), all of such Participant’s vested and unvested Performance Units will be forfeited.

 

6.                                      Restricted Units.

 

(a)                                 Grant of Restricted Units.  The Committee may grant Awards of Restricted Units to Participants at such times and in such amounts, and subject to such other terms and conditions not inconsistent with the Plan, as it shall determine.  Except as provided in the immediately following sentence, no Award of Restricted Units may become vested more rapidly than (i) ratably over a period of 36 months of service, if such Award would vest upon the passage of time and the continued performance of services or (ii) based on a performance period of 12 months, if such Award would vest upon the achievement of specified performance conditions.  The limitations in the immediately preceding sentence shall not apply (i) in the event of a Participant’s (1) death, (2) Disability, or (3) Early Retirement or Normal Retirement, or (ii) in the event of a Company Change in Control.  Each grant of Restricted Units shall be evidenced by an Award Agreement.

 

(b)                                 Payment of Restricted Units.

 

(i)                                     Restricted Units that become vested in accordance with the Regular Vesting Schedule shall be settled in cash following (but not later than the March 15 immediately following) the date as of which such Restricted Units become vested based on PL Tangible Book Value Per Unit determined as of the date of the most recently reported quarterly balance sheet preceding the date payment is made.

 

(ii)                                  Any Restricted Units that become vested by reason of Early Vesting shall nonetheless be settled in cash following (but not later than the March 15 immediately following) the date as of which such Restricted Units would have become vested (but for such Early Vesting) if you had remained in the Company’s employment through each of the applicable dates in the Regular Vesting Schedule, based on PL Tangible Book Value Per Unit determined as of the date of the most recently reported quarterly balance sheet preceding the date payment is made.

 

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(c)                                  Termination.

 

(i)                                     Termination Due to Death, Disability or Normal Retirement. If a Participant experiences a Termination of Employment due to Disability or Normal Retirement or upon a Participant’s death, such Participant’s Restricted Units will immediately vest in full.

 

(ii)                                  Early Retirement.  Unless the Committee determines to provide for treatment that is more favorable to a Participant on such terms and conditions as the Committee may determine, if a Participant experiences a Termination of Employment due to Early Retirement, a pro-rated portion of such Participant’s Restricted Units, as more particularly set forth in the Participant’s Award Agreement, will immediately vest. Any Restricted Units that do not vest upon Early Retirement pursuant to the preceding sentence will be forfeited.

 

(iii)                               Special Termination. If a Participant experiences a Termination of Employment by reason of (1) the divestiture of a business segment or a significant portion of the assets of the Company, or (2) a significant reduction by the Company in its salaried work force, the determination of whether, to what extent, and on what conditions any payment shall be made with respect to any unvested portion of such Participant’s Restricted Unit Award shall be at the discretion of the Committee. Any portion of such Participant’s Restricted Units which the Committee determines is not eligible for payment under this Section 6(c)(iii) shall be forfeited as of the date of such Participant’s Termination of Employment.

 

(iv)                              Other Termination. Unless the Committee determines to provide for treatment that is more favorable to a Participant on such terms and conditions as the Committee may determine, if a Participant experiences a Termination of Employment for any reason not set forth in Sections 6(c)(i), (ii) or (iii), any unvested portion of such Participant’s Restricted Unit Award shall be forfeited as of the date of such Participant’s Termination of Employment.

 

(v)                                 Termination for Cause. Unless the Committee determines to provide for treatment that is more favorable to a Participant on such terms and conditions as the Committee may determine, if a Participant experiences a Termination of Employment for Cause prior to the date such Participant’s Restricted Units are paid pursuant to Section 6(b), all of such Participant’s vested and unvested Restricted Units will be forfeited.

 

7.                                      Parent-Based Awards.

 

(a)                                 Grant of Parent-Based Awards.  The Committee may grant Parent-Based Awards to Participants at such times and in such amounts, and subject to such other terms and conditions not inconsistent with the Plan, as it shall determine.  Except as provided in the immediately following sentence, no Parent-Based Award may become vested more rapidly than 36 months from the Date of Grant, if such Award would vest upon the passage of time and the continued performance of services.  The limitations in the immediately preceding sentence shall not apply (i) in the event of a Participant’s (1) death, (2) Disability, or (3) Early Retirement or Normal Retirement, or (ii) in the event of a Company Change in Control.  Each grant of a Parent-Based Award shall be evidenced by an Award Agreement.

 

(b)                                 Payment of Parent-Based Award.

 

(i)                                     Any Parent-Based Award that becomes vested in accordance with the Regular Vesting Schedule shall be settled in cash following (but not later than the March 15 immediately

 

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following) the date as of which such Parent-Based Award becomes vested.  Such amount payable shall be calculated in accordance with Section 7(b)(iii) below.

 

(ii)                                  Any Parent-Based Award that becomes vested by reason of Early Vesting shall nonetheless settled in cash following (but not later than the March 15 immediately following) the date as of which such Parent-Based Award would have become vested (but for such Early Vesting) if the Participant had remained in the Company’s Employment through the applicable date specified in the Regular Vesting Schedule.  Such amount payable shall be calculated in accordance with Section 7(b)(iii) below.

 

(iii)                               The aggregate amount payable in respect of any vested Parent-Based Award under Section 7(b)(i) or (ii) shall be equal to the percentage of such Parent-Based Award that has become vested multiplied by the product of the Initial Value and Parent Stock Percentage.

 

(c)                                  Termination.

 

(i)                                     Termination Due to Death, Disability or  Normal Retirement. If a Participant experiences a Termination of Employment due to Disability or Normal Retirement or upon a Participant’s death, such Participant’s Parent-Based Award will immediately vest in full.

 

(ii)                                  Early Retirement.  Unless the Committee determines to provide for treatment that is more favorable to a Participant on such terms and conditions as the Committee may determine, if a Participant experiences a Termination of Employment due to Early Retirement, a pro-rated portion of such Participant’s Parent-Based Award, as more particularly set forth in the Participant’s Award Agreement, will immediately vest. Any portion of a Participant’s Parent-Based Award that does not vest upon Early Retirement pursuant to the preceding sentence will be forfeited.

 

(iii)                               Special Termination. If a Participant experiences a Termination of Employment by reason of (1) the divestiture of a business segment or a significant portion of the assets of the Company, or (2) a significant reduction by the Company in its salaried work force, the determination of whether, to what extent, and on what conditions any payment shall be made with respect to any unvested portion of such Participant’s Parent-Based Award shall be at the discretion of the Committee. Any portion of such Participant’s Parent-Based Award which the Committee determines is not eligible for payment under this Section 7(c)(iii) shall be forfeited as of the date of such Participant’s Termination of Employment.

 

(iv)                              Other Termination. Unless the Committee determines to provide for treatment that is more favorable to a Participant on such terms and conditions as the Committee may determine, if a Participant experiences a Termination of Employment for any reason not set forth in Sections 7(c)(i), (ii) or (iii), any unvested portion of such Participant’s Parent-Based Award shall be forfeited as of the date of such Participant’s Termination of Employment.

 

(v)                                 Termination for Cause. Unless the Committee determines to provide for treatment that is more favorable to a Participant on such terms and conditions as the Committee may determine, if a Participant experiences a Termination of Employment for Cause prior to the date such Participant’s Parent-Based Award is paid pursuant to Section 7(b), all vested and unvested portions of such Participant’s Parent-Based Award will be forfeited.

 

(d)                                 Adjustments in Respect of Parent Common Stock. If prior to the last vesting date of a Participant’s Regular Vesting Schedule, there shall occur a change in the Parent’s common stock as a result of a stock dividend, extraordinary cash dividend, recapitalization, reorganization, merger,

 

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consolidation, split-up, spin-off, combination, exchange of shares, warrants or rights offering to purchase such common stock at a price substantially below fair market value, or other similar event such that an adjustment is required to preserve, or to prevent enlargement of, the benefits or potential benefits made available under this Plan, then the Committee or the Board shall adjust the Final Parent Stock Value so that it is equal to the value of such number of whole or fractional shares of Parent common stock or other property (including other securities or cash) as a Parent shareholder immediately prior to such event held or was entitled to receive in respect of one share of Parent common stock immediately after such an event. Any determination by the Committee or the Board as to the value of any property other than Parent common stock shall be final, binding and conclusive on all parties.

 

8.                                      Change in Control.

 

(a)                                 Performance Units.  In the event of a Company Change in Control, the Award Period shall be deemed to have ended on the date of the Company Change in Control and the Participant shall be deemed to have earned the greater of (i) 100% of the Performance Units, or (ii) the percentage of Performance Units with respect to such Participant’s Award based upon performance through the date of the Company Change in Control (instead of over the duration of the Award Period). Each Performance Unit so earned shall be paid within 45 days following the date on which the Company Change in Control occurs, based on the Company Change in Control Book Value Per Unit, if available within 10 days before such payment date; or, if the Company Change in Control Book Value Per Unit is not then available, then 90% of the value of each Performance Unit, based on the PL Tangible Book Value Per Unit determined as of the most recently reported quarterly balance sheet preceding such Company Change in Control, shall be paid within 45 days of the Company Change in Control, followed by an additional payment in respect of each such Performance Unit within 75 days of such Company Change in Control equal to the excess, if any, of (i) the Change in Control Book Value Per Unit over (ii) 90% of the PL Tangible Book Value Per Unit determined as of the most recently reported quarterly balance sheet preceding such Company Change in Control.

 

(b)                                 Restricted Units.  In the event of a Company Change in Control, all Restricted Units will immediately vest and shall be settled in cash within 45 days following the date on which the Company Change in Control occurs, based on the Company Change in Control Book Value Per Unit, if available within 10 days before such payment date; or, if the Company Change in Control Book Value Per Unit is not then available, then 90% of the value of each Restricted Unit based on the PL Tangible Book Value Per Unit determined as of the most recently reported quarterly balance sheet preceding such Company Change in Control, shall be paid within 45 days of the Company Change in Control, followed by an additional payment within 75 days of such Company Change in Control equal to the excess, if any, of (i) the Change in Control Book Value Per Unit over (ii) 90% of the PL Tangible Book Value Per Unit determined as of the most recently reported quarterly balance sheet preceding such Company Change in Control.

 

(c)                                  Parent-Based Awards.

 

(i)                                     In the event of a Company Change in Control, all Parent-Based Awards will immediately vest and shall be settled in cash, based on the Parent Stock Percentage, but the Final Parent Stock Value shall be determined based on the average of the closing prices of the Parent common stock on all trading days during the 30-calendar day period ended on the date on which the Company Change in Control occurs.  Payment of the amount so determined will be paid within 60 days following the date on which the Company Change in Control occurs.

 

(ii)                                  In the event of a Parent Change in Control that results in the common stock of Parent no longer being actively traded on a public securities exchange, all Parent-Based Awards shall be

 

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converted to Restricted Units as of the date of the Parent Change in Control.  Such conversion to Restricted Units shall be effected in the manner described below.  First, the dollar value of the Parent-Based Awards shall be determined as of the Parent Change in Control, with the Final Parent Stock Value used to determine the Parent Stock Percentage determined using the average of the closing prices of the Parent common stock on all trading days during the 30-calendar day period ended on the date on which the Parent Change in Control occurs.  The resulting dollar value of the Parent-Based Awards shall then be converted into Restricted Units by dividing such dollar value by the PL Tangible Book Value Per Unit determined as of the most recently reported quarterly balance sheet preceding the Parent Change in Control.  Notwithstanding the foregoing, all terms and provisions of the Parent-Based Award Agreement shall otherwise be maintained, including, but not limited to, the vesting schedule and payment timing provisions of such agreement.

 

9.                                      General Provisions.

 

(a)                                 Withholding.  The Company will withhold an amount in cash (whether under the Plan or otherwise) sufficient to satisfy any applicable federal, state, and/or local tax withholding obligations in respect of Awards under the Plan.

 

(b)                                 Section 409A Compliance.  To the extent that any Award constitutes “deferred compensation” under Section 409A of the Code, such Award is intended in good faith to comply with Code Section 409A.  The payment of any Award made hereunder that is subject to Code Section 409A may not be accelerated or delayed, except as specifically allowed under Code Section 409A.  Any Plan provision to the contrary notwithstanding (and subject to any Company Specified Employee Policy), to the extent required by Code Section 409A, payments to be made to a Specified Employee upon a Termination of Employment may not be made before the date that is 6 months after the date of the Termination of Employment (or, if earlier, the date of death of the Specified Employee).  To the extent an Award under this Plan is subject to Code Section 409A, the “specified time or fixed schedule” under Treasury Regulation Sections 1.409A-3(a)(4) and 1.409A-3(i)(1) shall be the date on which payment is triggered to be settled in cash (but not later than the March 15 immediately following).

 

(c)                                  Awards.  Each Award hereunder shall be evidenced in writing.  The written agreement shall be delivered to the Participant and shall incorporate the terms of the Plan by reference and specify the terms and conditions thereof and any rules applicable thereto.

 

(d)                                 Cancellation of Performance Units.  The Committee may cancel Performance Units granted to a Participant, provided the Participant has consented thereto in writing. In the event of any such cancellation, all rights of the former holder of such cancelled Performance Units in respect to such cancelled Performance Units shall immediately terminate.

 

(e)                                  No Assignment of Interest.  Unless the Committee shall permit (on such terms and conditions as it shall establish) an Award to be transferred to a member of the Participant’s immediate family or to a trust or similar arrangement for the benefit of such immediate family members (collectively, the “Permitted Transferees”), an Award or interest of any Participant in the Plan shall not be assignable, either by voluntary assignment or by operation of law, and any assignment of such interest, whether voluntary or by operation of law, shall render the Award void, except that cash payable under the Plan shall be transferable by testamentary will or by the laws of descent and distribution.  All rights with respect to Awards granted to a Participant under the Plan shall be exercisable during the Participant’s lifetime only by such Participant, or, if applicable, the Permitted Transferees.

 

(f)                                   Designation of Beneficiary.  Each Participant may designate a beneficiary or beneficiaries (which beneficiary may be an entity other than a natural person) to receive any payments

 

11

 

which may be made following the Participant’s death.  Such designation may be changed or canceled at any time without the consent of any such beneficiary.  Any such designation, change or cancellation must be made in a form or manner approved by the Committee and shall not be effective until received by the Committee.  If no beneficiary has been named, or the designated beneficiary or beneficiaries shall have predeceased the Participant, the beneficiary shall be the Participant’s spouse or, if no spouse survives the Participant, the Participant’s estate.  If a Participant designates more than one beneficiary, the rights of such beneficiaries shall be payable in equal shares, unless the Participant has designated otherwise.

 

(g)                                  Employment Rights.  An Award made under the Plan shall not confer any right on the Participant to continue in the employ of the Company or any Subsidiary or limit in any way the right of the Participant’s employer to terminate his or her Employment at any time.

 

(h)                                 Expenses. The expenses of administering the Plan shall be borne by the Company.

 

(i)                                     No Rights to Awards.  No Participant or Eligible Employee shall have any claim to be granted any Award under the Plan, and there is no obligation of uniformity of treatment of Participants and Eligible Employees.

 

(j)                                    Construction of the Plan. The validity, construction, interpretation, administration and effect of the Plan and of its rules and regulations, and rights relating to the Plan, shall be determined solely in accordance with the laws of the State of Delaware.

 

(k)                                 Effective Date.  The Plan was originally effective as of January 1, 2018.

 

(l)                                     Amendment of Plan.  The Board may amend, suspend or terminate the Plan or any portion thereof at any time, provided that no amendment shall be made without shareholder approval if such amendment would (i) change the definition of Performance Unit; or (ii) remove the administration of the Plan from the Committee. Without the written consent of an affected Participant, no termination, suspension or modification of the Plan shall adversely affect any right of such Participant under the terms of an Award granted before the date of such termination, suspension or modification.

 

(m)                             Amendment of Awards.  The Committee shall have the authority to amend any Award to include any provision which, at the time of such amendment, is authorized under the terms of the Plan; provided, however, that no outstanding Award may be revoked or altered in a manner unfavorable to the Participant without the written consent of the Participant; provided, further, that the exercise by the Committee of its authority under the third paragraph of Section 3 shall not constitute an amendment of an Award.

 

(n)                                 Compliance with Legal Requirements.  The Plan, the grant and exercise of Awards hereunder, and the other obligations of the Company under the Plan, shall be subject to all applicable federal and state laws, rules, and regulations, and to such approvals by any regulatory or governmental agency as may be required.  The Company, in its discretion, may postpone the exercise of Awards or any other action under the Plan to permit the Company, with reasonable diligence, to complete such required action under any federal or state law, rule, or regulation.  Any postponement of the settlement of any Award under this Section 9(n) shall not extend the term of such Award, and the Company, its officers and employees, the Board and the Committee shall have no obligation or liability to a Participant with respect to any Award because of any actions taken pursuant to the provisions of this Section 9(n).

 

(signature page follow)

 

12

 

IN WITNESS WHEREOF, Protective Life Corporation has executed this document as of the     day of           , 2018.

 

	
 
    	
PROTECTIVE LIFE   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Richard J. Bielen,   President and Chief Executive Officer
    

 

[Signature Page to Protective Life Corporation Long-Term Incentive Plan]EX-10.1

 Exhibit 10.1 

EXECUTION 

CONSENT AGREEMENT 

Consent Agreement (the “Consent”), dated as of November 11, 2018, by and among BLACK BOX CORPORATION, a Delaware
corporation (the “Borrower”), each of the Guarantors listed on the signature pages hereto, each of the Lenders listed on the signature pages hereto (the “Consenting Lenders”) and PNC BANK, NATIONAL
ASSOCIATION (“PNC”), in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). 

W I T N E S S E T H: 

WHEREAS, the Borrower, the Guarantors, the Lenders party thereto and the Administrative Agent have entered into that certain Credit
Agreement, dated May 9, 2016 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, including, without limitation, by the Amendment and Joinder Agreement dated August 9, 2017, and by the Second
Amendment to Credit Agreement, dated June 29, 2018, the “Credit Agreement”);  
 WHEREAS, (i) as of
the date hereof, the Consenting Lenders constitute all of the Lenders under the Credit Agreement and collectively own and control, in the aggregate, 100% of the Obligations, including, without limitation, the aggregate principal amount of the
outstanding Revolving Credit Loans, Term Loans and LIFO Loans and (ii) pursuant to the Credit Agreement, the Issuing Lender issued letters of credit, as identified on Exhibit A hereto (collectively, the “Letters of
Credit”); 
 WHEREAS, the Borrower is in the process of pursuing various restructuring alternatives, including, without
limitation, a sale of the Borrower pursuant to the Agreement and Plan of Merger dated as of the date hereof (the “Merger Agreement”) by and among AGC Networks PTE LTD., BBX Main Inc., BBX Inc. and Host Merger Sub Inc. (collectively,
and individually, as the context may require, the “Purchaser”) and the Borrower subject to the Borrower paying the Consideration (as hereinafter defined) to satisfy the outstanding Obligations under the Credit Agreement (the
foregoing transaction being referred to herein as the “Restructuring Transaction”); 
 WHEREAS, the parties hereto
have discussed, simultaneously with the consummation of the Restructuring Transaction, the discharge and pay off of the Obligations (other than Surviving Contingent Obligations (as hereinafter defined)) of the Loan Parties under the Loan Documents
through payment of the Consideration (as hereinafter defined), subject to the terms and conditions set forth herein; 
 WHEREAS, in
connection with the payment of the Consideration (as hereinafter defined), the Borrower has requested, and the Consenting Lenders have agreed, upon and subject to the terms and conditions set forth herein, that the Administrative Agent has the
authority to and shall execute the Payoff Letter (as defined herein); and 
 WHEREAS, the Loan Parties are entering into this Consent
with the understanding and agreement that, except as specifically provided herein, none of the Administrative Agent’s nor any Consenting Lender’s rights or remedies as set forth in the Credit Agreement or any other Loan Document is being
amended, waived or modified by the terms of this Consent. 

 NOW, THEREFORE, in consideration of the premises contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows: 

1. Definitions. 
 (a) All
capitalized terms used herein that are defined in the Credit Agreement shall have the same meaning as set forth in the Credit Agreement unless the context clearly indicates otherwise. 

(b) The term “Consent Milestones” means: 

(i) at least 2 days prior to the Restructuring Date, the Borrower shall have terminated all agreements in respect of any Other Lender Provided
Financial Service Products consisting of purchase cards or ACH transactions and any Lender Provided Foreign Currency Hedges (the “Terminated Cash Management Agreements”); and 

(ii) not less than five (5) Business Days prior to the Restructuring Date, the Loan Parties and the Purchaser (including any and all
providers of funds to be used to effectuate the Restructuring Transaction) shall have complied with all requests from the Administrative Agent made in connection with the satisfaction or, to the extent applicable, waiver of the Administrative
Agent’s or any Consenting Lender’s established policies and procedures to ensure compliance with anti-money laundering laws of the United States and to otherwise detect and report suspicious transactions to the extent requested at least
ten (10) Business Days prior to the Restructuring Date. 
 (c) The term “Consent Termination Event” means the
occurrence of any of the following events unless waived in writing by the Administrative Agent in its sole discretion: 
 (i) the existence
of an Event of Default under the Credit Agreement (other than any Event of Default arising solely due to a Change of Control occurring as a result of the Restructuring Transaction) or any of the other Loan Documents that has not been waived in
writing and the delivery of a written notice by the Administrative Agent to the Borrower that the Administrative Agent has terminated this Consent; 

(ii) the failure of Borrower or any other Loan Party to timely comply with the Consent Milestones or any other terms of this Consent and the
delivery of a written notice by the Administrative Agent to the Borrower that the Administrative Agent has terminated this Consent; 
 (iii)
the failure by the Loan Parties to promptly, but in the time periods outlined in the Merger Agreement, take such steps as are necessary to consummate the Restructuring Transaction, including, without limitation, the filing of a
Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the Offer, in form and substance reasonably satisfactory to the Administrative Agent, with the Securities and Exchange Commission and the
filing of the Declaration (as defined in the Merger Agreement) with CFIUS (as defined in the Merger Agreement); 

  
 - 2 - 

 (iv) the amendment or modification of the Merger Agreement after the date hereof, without
the written consent of the Administrative Agent, in a manner that is materially adverse to the Administrative Agent or Consenting Lenders, which for purposes of this clause shall include any amendment or modification that would result in an increase
to the Offer Price (as defined in the Merger Agreement as in effect on the date hereof); 
 (v) the material amendment or modification of
the form of disclosure delivered to the Administrative Agent in accordance with Section 4(d) (except for any modification required by law (including, without limitation, modifications made at the request of the Securities and Exchange
Commission) or court order) hereof and the delivery of a written notice by the Administrative Agent to the Borrower that the Administrative Agent has terminated this Consent; 

(vi) failure to satisfy the Minimum Condition (as defined in the Merger Agreement) prior to the Expiration Time (as defined in the Merger
Agreement); and 
 (vii) the termination of the Merger Agreement by any party thereto. 

2. Consent. 
 (a) The
Administrative Agent and each Consenting Lender for itself hereby agrees in connection with the Restructuring Transaction, subject to the provisions of this Consent, to accept: (i) the payment by wire transfer in immediately available funds on
the date of the consummation of the Restructuring Transaction (such date, the “Restructuring Date”) of an amount equal to the amount set forth on Schedule 1 attached hereto (the “Cash Consideration”),
(ii) the return to the Administrative Agent or Issuing Lender, as applicable, of the Letters of Credit, undrawn, for cancellation (or alternative arrangements in respect of such Letters of Credit shall have been provided for, as determined by
the Issuing Lender in its sole discretion); provided, however, that if the Letters of Credit are drawn, such drawn amount(s) shall be paid in full in cash in accordance with the terms of the Loan Documents, but to the extent such amounts remain
unpaid as of the Restructuring Date, such amounts shall be deemed to represent Revolving Credit Loans and shall be added to the Cash Consideration and paid in accordance with clause (i) above, (iii) a release and agreement not to sue from
the Loan Parties in the form set forth in Section 14 hereof and (iv) a release from, and an agreement not to sue by, the Purchaser and its Affiliates, in each case, substantially in the form set forth in Section 14 hereof (clauses
(i)-(iv) collectively referred to herein as the “Consideration”), as satisfaction of the Borrower’s and each other Loan Parties’ liability for all of the Obligations (other than contingent indemnification obligations that
by the express terms of the Loan Documents survive the termination of the Commitments and payment of the Loans (the “Surviving Contingent Obligations”)) owing under any and all of the Loan Documents (the “Loan Document
Obligations”)), so long as the Termination Date (as defined below) has not occurred, time being of the essence. 
 (b) The
Administrative Agent and each Consenting Lender for itself hereby agrees that acceptance of the Consideration as provided herein shall constitute satisfaction of the Obligations (other than Surviving Contingent Obligations) outstanding under the
Loan Documents as of the Restructuring Date. For the avoidance of doubt, the Obligations do not include (i) any equipment leases or equipment financing, other loans and/or extensions of credit made or advanced

  
 - 3 - 

 
by any Consenting Lender or its Affiliates in favor of any Loan Party (including, without limitation, all amounts owing to Wells Fargo Commercial Distribution Finance, LLC) not included in the
definition of Obligations and (ii) the indebtedness, obligations and liabilities of the Borrower or any Loan Party to the Administrative Agent under which the Administrative Agent or any Affiliate of the Administrative Agent provides cash
management and treasury management services and products under any cash management agreements other than the Terminated Cash Management Agreements, including without limitation, controlled disbursement accounts or services, lockboxes, automated
clearinghouse transactions, overdrafts, credit cards, purchasing cards and interstate depository network services to the Borrower or any such Loan Party (the “Cash Management Liabilities”). 

3. Deemed Payment of Loan Document Obligations. Upon the Restructuring Date and the receipt by the Administrative Agent of the
Consideration, (a) the Borrower and each other Loan Party shall be deemed to have satisfied in full the Loan Document Obligations, (b) all assets of each Loan Party subject to Liens (other than the Liens of PNC in its capacity as a cash
management bank on deposit accounts securing the Cash Management Liabilities and, for the avoidance of doubt, PNC, in its capacity as a cash management bank, shall retain all rights under Law (including, without limitation, all chargeback and setoff
rights) with respect to any Cash Management Liabilities remaining after the Restructuring Date) granted under or pursuant to the Loan Documents, including without limitation pursuant to the Security Agreement, the Patent, Trademark and Copyright
Security Agreement, the Pledge Agreement or with respect to any real property mortgages or other liens, shall be deemed to have been automatically released from any and all Liens of the Administrative Agent and the Consenting Lenders, and
(c) each Guarantor shall be released from any guarantee obligations under the Guaranties and any other Loan Documents. The Administrative Agent shall promptly deliver to the Borrower a payoff letter evidencing the above and otherwise in
customary form and consistent with this Consent (the “Payoff Letter”), which, for the sake of clarity, shall (x) be reflective of payment of the Consideration as satisfaction of the Obligations, and (y) provide that the
Loan Parties (or their designees) shall be authorized to file all Termination Documents (as hereinafter defined) upon confirmation by Administrative Agent of satisfaction or waiver of the applicable conditions set forth in the Payoff Letter. In
addition, at the Borrower’s sole cost and expense (which obligation of the Borrower shall, to the extent applicable, be independent of the Consideration), the Administrative Agent shall promptly execute and deliver to the Borrower and each
other Loan Party such documents and lien and collateral releases reasonably requested by the Borrower as are necessary to release the Administrative Agent’s, Consenting Lenders’ and each other Secured Party’s security from the liens
of the Security Agreement and the other Loan Documents, including, without limitation, UCC termination statements, terminations of intellectual property security interests, terminations of control agreements and releases or discharges of any
mortgages, deeds of trust or equivalent recordings of Liens on real property of the Loan Parties (in each case, in customary form provided to the Administrative Agent, collectively, the “Termination Documents”), and the
Administrative Agent shall promptly deliver the original certificates and any transfer powers with respect thereto and any promissory note or other instrument (including any appropriate lost note affidavit) or security physically held by the
Administrative Agent as part of the Collateral. The Administrative Agent shall cause (a) drafts of the Payoff Letter to be delivered reasonably in advance of the Restructuring Date and (b) to the extent in agreed upon form copies of the
Payoff Letter and the Termination Documents (other than any possessory Collateral, which shall be delivered to counsel for the Loan Parties promptly following consummation of the Restructuring Transaction) to be delivered to counsel to the Loan
Parties, to be held in escrow, prior to the Restructuring Date, subject to the terms and conditions of the Payoff Letter. 

  
 - 4 - 

 4. Effectiveness. This Consent shall become effective on the date (such date, the
“Effective Date”) that the Administrative Agent has received: 
 (a) this Consent, duly executed by the Borrower, the
Guarantors party hereto, the Consenting Lenders and the Administrative Agent; 
 (b) a final sources and uses with respect to the
Restructuring Transaction, in form and substance (including sufficient detail) reasonably satisfactory to the Administration Agent (it being understood that the Administrative Agent, by the execution of this Consent, hereby acknowledges that it has
received such final sources and uses in form and substance (including sufficient detail) satisfactory to it); 
 (c) a copy of the executed
Merger Agreement, in form and substance satisfactory to the Administrative Agent (it being understood that the Administrative Agent, by the execution of this Consent, hereby acknowledges that it has received such executed Merger Agreement and such
executed Merger Agreement is satisfactory to the Administrative Agent); 
 (d) a form of disclosure describing the Restructuring Transaction,
reasonably acceptable to the Administrative Agent, to be set forth in the Form 8-K, Schedule 14D-9 and Schedule TO; and 

(e) payment for all fees, costs and expenses of the Administrative Agent, Issuing Lender and Consenting Lenders that are required to be
reimbursed under the Credit Agreement and the other Loan Documents within one (1) Business Day following delivery of an invoice or invoices for services rendered and costs incurred through the Effective Date. 

The Administrative Agent shall provide written notice to the Borrower of the occurrence of the Effective Date. 

5. Confirmation of Indebtedness. The Borrower confirms and acknowledges that as of the date hereof, the Borrower is indebted to the
Administrative Agent and Consenting Lenders for the Loans, including the LIFO Loans, and Letter of Credit Obligations under the Credit Agreement, plus all fees, costs and expenses incurred to date in connection with the Credit Agreement and
the other Loan Documents, all without any deduction, defense, setoff, claim or counterclaim, of any nature. 
 6. Loan Party
Representations and Warranties. 
 Each Loan Party hereby represents and warrants to the Consenting Lenders and the Administrative Agent
that (i) such Loan Party has the legal power and authority to execute and deliver this Consent, (ii) the officers of such Loan Party executing this Consent have been duly authorized to execute and deliver the same and bind such Loan Party
with respect to the provisions hereof, (iii) the execution and delivery hereof by such Loan Party and the performance and observance by such Loan Party of the provisions hereof and all documents executed or to be

  
 - 5 - 

 
executed herewith or therewith, do not violate or conflict with the organizational agreements of such Loan Party or any Law applicable to such Loan Party or result in a breach of any provision of
or constitute a default under any other agreement, instrument or document binding upon or enforceable against such Loan Party, (iv) this Consent and the documents executed or to be executed by such Loan Party in connection herewith constitute
valid and binding obligations of such Loan Party, enforceable in accordance with their respective terms, except to the extent enforceability of any such document may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the enforceability of creditors’ rights generally or limiting the right of specific performance, (v) it has carefully read and fully understands all of the terms and conditions of this Consent, (vi) it has consulted
with, or has had a full and fair opportunity to consult with, an attorney of its choosing regarding the terms and conditions of this Consent and (vii) it is freely, voluntarily, knowingly and intelligently entering into this Consent. 

7. Administrative Agent and Consenting Lender Representations and Warranties and Covenants. 

(a) The Administrative Agent and each Consenting Lender hereby represents and warrants on a several and not joint basis for itself and not any
other person or entity that (i) it has the legal power and authority to execute and deliver this Consent, (ii) the officers of the Administrative Agent or such Consenting Lender, as applicable, executing this Consent have been duly
authorized to execute and deliver the same and bind the Administrative Agent or such Consenting Lender, as applicable, with respect to the provisions hereof, (iii) the execution and delivery hereof by it and the performance and observance by it
of the provisions hereof and all documents executed or to be executed herewith or therewith, do not violate or conflict with its organizational agreements or any Law applicable to it or result in a breach of any provision of or constitute a default
under any other agreement, instrument or document binding upon or enforceable against it, (iv) this Consent and the documents executed or to be executed by it in connection herewith constitute its valid and binding obligations, enforceable in
accordance with their respective terms, except to the extent enforceability of any such document may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforceability of creditors’ rights
generally or limiting the right of specific performance, (v) it has carefully read and fully understands all of the terms and conditions of this Consent, (vi) it has consulted with, or has had a full and fair opportunity to consult with,
an attorney of its choosing regarding the terms and conditions of this Consent, (vii) it is freely, voluntarily, knowingly and intelligently entering into this Consent, and (viii) as of the date of the execution and delivery of this
Consent, it has not assigned, participated or otherwise transferred any amount owing under or any of its rights under any of the Loan Documents to any other Person. 

(b) The Administrative Agent and each Consenting Lender hereby covenants and agrees on a several and not joint basis for itself and not any
other person or entity that it will not assign, convey, sell, participate or otherwise transfer any interest in any of the Loans or Loan Documents (including in or to any of the Obligations arising under or otherwise relating to the Loan Documents)
prior to the Termination Date without having simultaneously obtained and delivered to the Borrower the agreement of its transferee, assignee or participant to be bound by the terms of this agreement, except solely in the event that any regulatory or
other governmental authority with jurisdiction over the Administrative Agent or such Consenting Lender, as applicable, encourages such assignment, conveyance, sale, participation, or other transfer (any

  
 - 6 - 

 
such directed transfer, a “Regulatory-Encouraged Transfer”); provided, however, that any Regulatory-Encouraged Transfer shall remain subject to the provisions of this Consent (to
the extent that this Consent previously has not been terminated pursuant to its terms), and any assignee, transferee or participant, as a condition of the effectiveness of any such Regulatory-Encouraged Transfer, shall be required to so acknowledge
in writing concurrently with the effectiveness thereof. For the avoidance of doubt, any transfer accomplished through a receivership or other insolvency proceeding conducted or initiated by any regulatory body shall not be subject to the terms of
this paragraph. 
 8. Termination Date. This Consent shall be null and void (except for the provisions of Sections 6 through 9 and 11
through 14) upon the earliest to occur of (a) the institution by the Borrower of a Relief Proceeding, (b) the occurrence of a Consent Termination Event that has not been waived in writing by the Administrative Agent in its sole
discretion and (c) December 31, 2018 (unless extended by the Administrative Agent in its sole discretion, provided such date shall not be extended beyond January 17, 2019 without the consent of the Administrative Agent and Required
Lenders) (such earlier date, the “Termination Date”). If this Consent shall be null and void pursuant to the foregoing sentence, each of the parties hereto in all respects shall be returned to the respective positions each occupied
prior to the execution of this Consent (except for the provisions of Sections 6 through 9 and 11 through 14), all as if this Consent had never been executed and delivered and, for avoidance of doubt, the entire amount of the Obligations shall be
owing by Borrower in accordance with the terms of the Loan Documents without giving any effect to Section 2 of this Consent. 
 9.
Fees and Expenses. The Borrower acknowledges and agrees that the Borrower is, subject to Schedule I hereto, liable for all reasonable invoiced out-of-pocket
costs and expenses (including attorneys’ fees and financial advisor and consultant fees) incurred by or on behalf of the Administrative Agent in connection with the documentation, preparation, negotiation and administration of this Consent and
the Loan Documents, and any amendment, modification or supplement to the Credit Agreement or to the other Loan Documents. 
 10. UCC
Waivers. Each Loan Party waives and renounces all rights which are waivable under Article 9 of the Uniform Commercial Code as such rights relate to Borrower’s and/or Guarantors’ relationship with the Administrative Agent and/or the
Consenting Lenders, whether such rights are waivable before or after default, including, without limitation, those rights with respect to compulsory disposition of collateral (U.C.C. §§9-610, 9-615 and 9-620), any right of redemption under U.C.C. §9-623, and any right to notice relating to disposition of collateral under
U.C.C. §9-611. 
 11. Effect of Consent. This Consent shall not constitute a novation of
the Credit Agreement or any of the Loan Documents. Except as expressly set forth herein, this Consent (i) shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Consenting
Lenders or the Administrative Agent under the Credit Agreement or any other Loan Document, and (ii) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Loan Document. Except as modified by this Consent, each and every term, condition, obligation, covenant and agreement contained in the Credit Agreement or any other Loan Document is hereby ratified and reaffirmed in all
respects and shall continue in full 

  
 - 7 - 

 
force and effect. Each Loan Party reaffirms its Obligations, including obligations (whether direct, as a guarantor or otherwise), liabilities and indebtedness, under the Loan Documents to which
it is party and its grant and the validity of the Liens granted by it in the Collateral under the applicable Loan Documents, and all financing statements and all other recordings and filings previously made, recorded or filed are intended to and do
secure all of its Obligations and perfect all Liens granted by it in the Collateral, in each case to the extent provided in such Loan Documents, with all such Liens continuing in full force and effect after giving effect to this Consent subject to
the terms herein. This Consent shall, subject to Section 8 hereof, constitute a Loan Document for purposes of the Credit Agreement. Each of the Loan Parties hereby consents to this Consent and confirms that all Obligations of such Loan Party
under the Loan Documents to which such Loan Party is a party shall continue to apply to the Credit Agreement in accordance with the terms hereof. 

12. Counterparts; Integration. This Consent may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Consent by telecopy or
e-mail shall be effective as delivery of a manually executed counterpart of this Consent. This Consent constitutes the entire agreement among the parties relating to the subject matter hereof and supersedes
any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. 
 13. Governing Law:
Submission to Jurisdiction: Waiver of Venue; Service of Process; Waiver of Jury Trial. The provisions set forth in Section 10.11 of the Credit Agreement are hereby incorporated mutatis mutandis with all references to the
“Agreement” therein being deemed references to this Consent. 
 14. Release. 

(a) In consideration of, among other things, Administrative Agent’s and the Consenting Lenders’ execution and delivery of this
Consent, the Borrower and each other Loan Party, on behalf of itself and its agents, representatives, officers, directors, advisors, employees, subsidiaries, affiliates, predecessors, successors and assigns (collectively,
“Releasors”), hereby forever agrees and covenants not to sue or prosecute against any Releasee (as hereinafter defined) and hereby forever waives, releases and discharges, to the fullest extent permitted by Law, each Releasee
from any and all claims (including, without limitation, crossclaims, counterclaims, rights of set-off and recoupment), liabilities, actions, causes of action, suits, debts, accounts, interests, liens,
promises, warranties, damages and consequential damages, losses, demands, agreements, bonds, bills, specialties, covenants, controversies, variances, trespasses, judgments, executions, costs, expenses or claims whatsoever, that such Releasor now has
or hereafter may have, of whatsoever nature and kind, whether known or unknown, whether now existing or hereafter arising, whether arising at law or in equity (collectively, the “Claims”), against any or all of the
Administrative Agent and the Consenting Lenders in any capacity and their respective affiliates, subsidiaries, shareholders and “controlling persons” (within the meaning of the federal securities laws), and their respective successors and
assigns and each and all of the officers, directors, employees, agents, attorneys, advisors, appraisers, equity holders, members, partners, Subsidiaries, Affiliates, parents, professionals, accountants, investment bankers, consultants and other
representatives of each of the foregoing (collectively, the “Releasees”), based in whole or in 

  
 - 8 - 

 
part on facts, whether or not now known, existing on or before the Effective Date, that relate to, arise out of or otherwise are in connection with: (i) any or all of the Credit Agreement,
this Consent or any other Loan Document or transactions contemplated thereby or any actions or omissions in connection therewith, or (ii) any aspect of the dealings or relationships between or among the Borrower and the other Loan Parties, on
the one hand, and any or all of the Administrative Agent and the Consenting Lenders, on the other hand, relating to any or all of the documents, transactions, actions or omissions referenced in clause (i) hereof. The receipt by the
Borrower or any other Loan Party of any Loans or other financial accommodations made by the Administrative Agent or any Consenting Lender after the date hereof shall constitute a ratification, adoption, and confirmation by such party of the
foregoing general release of all Claims against the Releasees that are based in whole or in part on facts, whether or not now known or unknown, existing on or prior to the Effective Date. In entering into this Agreement, the Borrower and each
other Loan Party consulted with, and has been represented by, legal counsel and expressly disclaims any reliance on any representations, acts or omissions by any of the Releasees and hereby agrees and acknowledges that the validity and effectiveness
of the releases set forth above do not depend in any way on any such representations, acts and/or omissions or the accuracy, completeness or validity thereof. The provisions of this Section 14 shall survive the termination of this Consent,
the Credit Agreement, the other Loan Documents and Payment In Full. 
 (b) The Borrower and each other Loan Party hereby agrees that the
Releasees shall each be an Indemnitee and entitled to the benefits of Section 10.3.2 of the Credit Agreement, including, without limitation, with respect to any Claims arising from or in connection with the negotiation, preparation, execution,
delivery, performance, administration and enforcement of this Consent or any other document executed and/or delivered in connection therewith. 

(c) The Borrower and each other Loan Party, on behalf of itself and its successors, assigns, and other legal representatives, hereby
absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Releasee that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee, and will not assert in any proceeding any
counterclaim or crossclaim against any Releasee, in each case on the basis of any Claim released, remised and discharged by the Borrower or any other Loan Party pursuant to Section 14(a) hereof. If the Borrower, any other Loan Party or any
of its successors, assigns or other legal representatives violates the foregoing covenant, the Borrower and each other Loan Party, each for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other
damages as any Releasee may sustain as a result of such violation, all attorneys’ fees and costs incurred by any Releasee as a result of such violation. 

(d) It is the intention of the Borrower and each other Loan Party in providing the release above that the same shall be effective as a bar to
each and every claim, demand and cause of action specified, and in furtherance of this intention it waives and relinquishes all rights and benefits under Section 1542 of the Civil Code of the State of California (or any comparable provision of
any other applicable Law), which provides: 
 “A general release does not extend to claims which the creditor does not know or suspect
to exist in his favor at the time of executing the release, which if known by him might have materially affected his settlement with the debtor.” 

  
 - 9 - 

 Borrower and each other Loan Party acknowledges that it may hereafter discover facts different from or in
addition to those now known or believed to be true with respect to such claims, demands, or causes of action and agree that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional
facts. Borrower and each other Loan Party understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other
proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release. 
 15. Amendments. This
Consent shall not be amended, modified, supplemented or waived, except in a writing signed by each of the parties hereto. If amended, modified, supplemented or waived as permitted by this Section 15, the term “Consent” shall
thereafter be read so as to give effect to any such amendment, modification, supplement or waiver. This Consent shall inure solely to the benefit of the Administrative Agent, each Consenting Lender, the Loan Parties and, in each case, their
respective successors and assigns, and no other Person shall have any rights herein as a third party beneficiary or otherwise. 
 16.
Consenting Lenders’ Obligations Several. Neither the Administrative Agent nor any Consenting Lender shall be liable for any action taken or not taken by another Consenting Lender in contravention of this Consent. 

[INTENTIONALLY LEFT BLANK] 

  
 - 10 - 

 IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto, have
caused this Consent to be duly executed by their duly authorized officers on the date first written above as a document under seal. 
  

			
	BORROWER:
	
	Black Box Corporation, a Delaware corporation
		
	By:	 	 /s/ David J. Russo
                                [SEAL]

		 	David J. Russo
		 	Chief Financial Officer and Treasurer

 [SIGNATURE PAGE TO CONSENT AGREEMENT – BLACK BOX CORPORATION] 

 
			
	 GUARANTORS:
  

ACS Communications, Inc., a Texas corporation

ACS Dataline, LP, a Texas limited partnership

ACS Dataline of the Northwest, Inc., an Oregon corporation

ACS Investors, LLC, a Delaware limited liability company

BB Technologies, Inc., a Delaware corporation

BBOX Holdings Puebla LLC, a Delaware limited liability company

Black Box Corporation of Pennsylvania, a Delaware corporation

Black Box Network Services, Inc.—Government Solutions, a Tennessee corporation

Black Box Services Company, a Delaware corporation

Black Box Ventures Holding Company, a Delaware corporation

Delaney Telecom, Inc., a Pennsylvania corporation

NextiraOne, LLC, a Delaware limited liability company

NextiraOne New York, LLC, a Delaware limited liability company

Norstan Communications, Inc., a Minnesota corporation

Scottel Voice & Data, Inc., a California corporation

Vibes Technologies, Inc., a Minnesota corporation

		
	By:	 	 /s/ Ronald Basso
                                    [SEAL]

		 	Ronald Basso, in his capacity as one of more
		 	of the following: President, Vice President,
		 	Treasurer and/or Secretary

 [SIGNATURE PAGE TO CONSENT AGREEMENT – BLACK BOX CORPORATION] 

 
			
	PNC BANK, NATIONAL ASSOCIATION, as a Lender and as Administrative Agent
		
	By:	 	 /s/ Christopher B. Gribble
                [SEAL]

	 Name:
	 	 Christopher B. Gribble

	 Title:
	 	 Senior Vice President

 [SIGNATURE PAGE TO CONSENT AGREEMENT – BLACK BOX CORPORATION] 

 
			
	BANK OF AMERICA, N.A., as a Lender
		
	By:	 	 /s/ Michael J. Hammond
                    [SEAL]

	Name:	 	Michael J. Hammond
	Title:	 	SVP

 [SIGNATURE PAGE TO CONSENT AGREEMENT – BLACK BOX CORPORATION] 

 
			
	U.S. BANK NATIONAL ASSOCIATION, as a Lender
		
	By:	 	 /s/ Mike Warren
                                [SEAL]

	Name:	 	Mike Warren
	Title:	 	Sr. VP

 [SIGNATURE PAGE TO CONSENT AGREEMENT – BLACK BOX CORPORATION] 

 
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender
		
	By:	 	 /s/ Jeanette A. Griffin
                        [SEAL]

	Name:	 	Jeanette A. Griffin
	Title:	 	Senior Vice President

 [SIGNATURE PAGE TO CONSENT AGREEMENT – BLACK BOX CORPORATION] 

 
			
	THE HUNTINGTON NATIONAL BANK, as a Lender
		
	By:	 	 /s/ Norman M.
Solomon                    [SEAL]

	Name:	 	Norman M. Solomon
	Title:	 	Vice President

 [SIGNATURE PAGE TO CONSENT AGREEMENT – BLACK BOX CORPORATION] 

 
			
	KEYBANK NATIONAL ASSOCIATION, as a Lender
		
	By:	 	 /s/ Don D. Mishlien
                            [SEAL]

	Name:	 	Don D. Mishlien
	Title:	 	SVP

 [SIGNATURE PAGE TO CONSENT AGREEMENT – BLACK BOX CORPORATION] 

 
			
	FIRST COMMONWEALTH BANK, as a Lender
		
	By:	 	 /s/ H. Clayton Soles
                            [SEAL]

	Name:	 	H. Clayton Soles
	Title:	 	Vice President

 [SIGNATURE PAGE TO CONSENT AGREEMENT – BLACK BOX CORPORATION] 

 EXHIBIT A 

(Letters of Credit) 
  

	1.	 Letter of Credit
No. 18125644-00-000 (with an issue date of May 4, 2016, as amended on March 23, 2018) in the current face amount of $5,825,000 for the benefit of The
Travelers Indemnity Company, as may be further amended from time to time. 

  

	2.	 Letter of Credit
No. 18129532-00-000 (with an issue date of March 15, 2018) in the amount of $4,000,000 for the benefit of Wells Fargo Commercial Distribution Finance, LLC, as
may be amended from time to time. 

 SCHEDULE 1 

(Cash Consideration) 
 An amount equal to the sum
of: (A) $79,539,528.39 on account of the Revolving Credit Loans outstanding as of the Restructuring Date, minus the amount of any Revolving Loans (other than, to the extent applicable, reimbursed draws with respect to drawn Letters of
Credit) repaid between the date hereof and the Restructuring Date, plus any additional Revolving Loans advanced after the date hereof, plus (B) any unreimbursed drawings on Letters of Credit and any fees and costs associated such
drawings, plus (C) the aggregate principal amount of the LIFO Loans outstanding on the Restructuring Date, plus (D) the aggregate amount of any interest owing under the Credit Agreement on the Revolving Credit Loans, Term
Loans and any LIFO Loans through the Restructuring Date, plus (E) the aggregate amount of the Obligations associated with any Lender Provided Interest Rate Hedges, Lender Provided Foreign Currency Hedges and any other Lender Provided
Financial Service Product outstanding on the Restructuring Date, plus (F) the amount of all outstanding fees, costs and expenses owing to the Administrative Agent and/or the Consenting Lenders under the Loan Documents on the
Restructuring Date, including, without limitation, all attorneys’ fees, consulting fees and other professional fees (such attorneys’ fees, consulting fees and other professional fees, collectively, the “Professional Fees”)
to the extent invoiced as of the Restructuring Date; provided, that, so long as (i) no Consent Termination Event has occurred, (ii) no litigation has been threatened or commenced involving in any way the Restructuring Transaction or
otherwise related to the Loan Documents and (iii) the Borrower does not seek any restructuring or alternative transaction other than the Restructuring Transaction with the Purchaser pursuant to the Merger Agreement, such Professional Fees shall
not exceed $1,500,000 for the period commencing on the Effective Date through and including January 17, 2019.

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