Document:

lksd-ex1021_505.htm

Exhibit 10.21

 

 

 

LSC Communications US, LLC.

Participation Agreement

February 20, 2018

George Zengo

LSC Communications

200 Connecticut Avenue #4G

Norwalk, CT  06854

 

 

	
Re:
	
Notice of Participation in the Key Employee Severance Plan

Dear George:

LSC Communications, Inc. (the “Company”) is pleased to inform you that you have been selected as a participant in the Company’s LSC Communications US, LLC Key Employee Severance Plan (the “Severance Plan”), which is operated as a sub-plan under the LSC Separation Pay Plan. Capitalized terms that are used in this Participation Agreement but that are not defined herein shall have the meanings set forth in the Severance Plan.

Severance Plan Benefits

Under Section 5(a) of the Severance Plan, in the event you incur a Qualifying Termination, which for purposes of the Severance Plan includes a termination of your employment by the Company without Cause (unless otherwise set forth in this Participation Agreement, then so long as you fulfill the Severance Plan’s requirements (e.g., executing a Separation Agreement and General Release), then you would be entitled to the following benefits:

	
 
	
•
	
Salary continuation for 12 months;

	
 
	
•
	
Payment of 100% of your target annual bonus;

	
 
	
•
	
A lump-sum payment which will represent the current difference between your monthly medical insurance cost immediately prior to the applicable Qualifying Termination and the monthly cost for COBRA for 12 months and may be used for any purpose, including to offset the cost of electing COBRA coverage; and

	
 
	
•
	
Six months of outplacement assistance from a provider selected by the Company.

The salary continuation and target bonus payments amounts set forth above will be paid as provided in the Severance Plan beginning approximately 60 days following your Qualifying Termination and ending on the first anniversary of the Qualifying Termination.

 

LSC COMMUNICATIONS

lsccom.com | 773.272.9202 | 191 N. Wacker Drive, Suite 1400, Chicago, IL 60606

 

 

Under Section 5(b) of the Severance Plan, in the event that your Qualifying Termination or a termination of your employment for Good Reason (as defined below) occurs within two years following the date of a Change in Control of the Company, then so long as you fulfill the Severance Plan’s requirements (e.g., executing a Separation Agreement and General Release), then you would be entitled to the following benefits:

 

	
 
	
•
	
Salary continuation for 18 months;

	
 
	
•
	
Payment of 150% of your target annual bonus;

	
 
	
•
	
A lump-sum payment which will represent the current difference between your monthly medical insurance cost immediately prior to the applicable Qualifying Termination and the monthly cost for COBRA for 18 months and may be used for any purpose, including to offset the cost of electing COBRA coverage; and

	
 
	
•
	
Six months of outplacement assistance from a provider selected by the Company.

The salary continuation and target bonus payments amounts set forth above will be paid as provided in the Severance Plan beginning approximately 60 days following your Qualifying Termination and ending on the 18th month anniversary of the Qualifying Termination.

Notwithstanding anything in the Severance Plan to the contrary (including Section 4(d) thereof) and regardless of whether a Qualifying Termination occurs before, on or after a Change in Control, the Separation Agreement and General Release shall not include any non-competition or non-solicitation covenants.  The only restrictive covenants you are required to comply with as a condition to receiving severance benefits under the Severance Plan are set forth below in Annex A to this Participation Agreement.  

Restrictive Covenants

By signing below, you acknowledge and agree to comply with the restrictive covenants set forth on Annex A to this Participation Agreement and incorporated herein by reference.

Additional Terms

	
 
	
a.
	
Resignations.  Upon termination of your employment for any reason, you shall resign from such offices and directorships, if any, of the Company that you may hold from time to time.

	
 
	
b.
	
Indemnification. Your rights of indemnification under the Company’s organizational documents, any plan or agreement at law or otherwise and your rights thereunder to director’s and officer’s liability insurance coverage for, in both cases, actions as an officer of the Company shall survive your termination of employment.

2

 

LSC COMMUNICATIONS

lsccom.com | 773.272.9202 | 191 N. Wacker Drive, Suite 1400, Chicago, IL 60606

 

 

For purposes of the Severance Plan and this Participation Agreement, “Good Reason” means, without your express written consent, the occurrence of any of the following events:

	
 
	
i.
	
A material reduction by the Company in your rate of annual base salary or annual target bonus opportunity as the same may be increased from time to time; or 

	
 
	
ii.
	
Any requirement of the Company that your office be more than seventy-five (75) miles from Norwalk, CT.

 

Notwithstanding the foregoing, a Good Reason event shall not be deemed to have occurred if the Company cures such action, failure or breach within ten (10) days after receipt of notice thereof given by you. Your right to terminate employment for Good Reason shall not be affected by your incapacities due to mental or physical illness and your continued employment shall not constitute consent to, or a waiver of rights with respect to, any event or condition constituting Good Reason, provided, however, that you must provide notice of termination of employment within ninety (90) days following the initial existence of the event constituting Good Reason or such event shall not constitute Good Reason under the Severance Plan or this Participation Agreement.

Administrative Provisions

Your eligibility to receive the benefits described above, and the timing of your receipt of those benefits, is in all cases subject to the terms of the Severance Plan, a copy of which can be obtained by contacting the Company’s Chief Human Resources Officer.

Please note, your participation in the Severance Plan is subject to your execution of this Participation Agreement and the letter from the Company, dated as of February 20, 2018 to which this Participation Agreement is appended. Until you sign such letter and this Participation Agreement below where indicated and return it to Scott Bigelow, you will not be eligible for the benefits described above in this notice even if a Qualifying Termination were to otherwise occur. If you fail to sign and return such letter and this Participation Agreement by March 6, 2018 then you will lose the opportunity to participate in the Severance Plan.

We thank you for your continued services to the Company.

	

	
Sincerely,

/s/ R. Scott Bigelow______________________

R. Scott Bigelow, Chief Human Resources Officer

 

By signing below, you agree to be bound by the terms of this Participation Agreement and the Severance Plan.

/s/ George B. Zengo________

Participant

Date: March 1, 2018

 

3

 

LSC COMMUNICATIONS

lsccom.com | 773.272.9202 | 191 N. Wacker Drive, Suite 1400, Chicago, IL 60606

 

 

Annex A

Restrictive Covenants

You and the Company recognize that, due to the nature of your employment and relationship with the Company, you will have access to and develop confidential business information, proprietary information, and trade secrets relating to the business and operations of the Company and its affiliates. You acknowledge that such information is valuable to the business of the Company and its affiliates, and that disclosure to, or use for the benefit of, any person or entity other than the Company or its affiliates, would cause substantial damage to the Company. You further acknowledge that your duties for the Company include the opportunity to develop and maintain relationships with the Company’s customers, employees, representatives and agents on behalf of the Company and that access to and development of those close relationships with the Company’s customers render your services special, unique and extraordinary. As a result of your position and customer contacts, you recognize that you will gain valuable information about (i) the Company’s relationship with its customers, their buying habits, special needs, and purchasing policies, (ii) the Company’s pricing policies, purchasing policies, profit structures, and margin needs, (iii) the skills, capabilities and other employment-related information relating to Company employees, and (iv) other matters of which you would not otherwise know and that is not otherwise readily available. You recognize that the good will and relationships described herein are assets and extremely valuable to the Company, and that loss of or damage to those relationships would destroy or diminish the value of the Company. In consideration of the covenants and agreements of the Company herein contained, the payments to be made by the Company pursuant to the Severance Plan and this Participation Agreement, you agree as follows:

	
 
	
1.
	
Noncompetition and Non-solicitation of Customers and Employees

	
 
	
a.
	
Non-competition. You agree that, from the date of your termination of employment for any reason, including a termination initiated by the Company with or without Cause, and for 12 months thereafter, you will not, directly or indirectly, either as an employee, employer, consultant, agent, principal, partner, stockholder, corporate officer, director or in any other individual or representative capacity, worldwide, engage in any business which is competitive with the business of the Company. You may, however, own stock or the rights to own stock in a company covered by this paragraph that is publicly owned and regularly traded on any national exchange or in the over-the-counter market, so long as your holdings of stock or rights to own stock do not exceed the lesser of (i) 1% of the capital stock entitled to vote in the election of directors or (ii) the combined value of the stock or rights to acquire stock does not exceed your gross annual earnings from the Company.

b.Non-solicitation of Customers. You agree that you shall not, while employed by the Company and for a period of 12 months from the date of your termination of employment for any reason, including your termination initiated by the Company with or without Cause, directly or indirectly, either on your own behalf or on behalf of any other person, firm or entity, solicit or provide services that are the same as or similar to the services the Company provided or offered while you were employed by the Company to any customer or prospective customer of the Company (i) with whom you had direct contact during the last two years of your employment with the Company or 

 

 

about whom you learned confidential information as a result of your employment with the Company, or (ii) with whom any person over whom you had supervisory authority at any time had direct contact during the last two years of your employment with the Company or about whom such person learned confidential information as a result of his or her employment with the Company.  

c.Non-solicitation of Employees. You shall not, while employed by the Company and for a period of two years following your termination of employment for any reason, including your termination of employment initiated by the Company with or without Cause, either directly or indirectly solicit, induce or encourage any individual who was a Company employee at the time of, or within six months prior to, your termination of employment, to terminate their employment with the Company or accept employment with any entity, including but not limited to a competitor, supplier or customer of the Company, nor shall you cooperate with any others in doing or attempting to do so. As used herein, the term "solicit, induce or encourage" includes, but is not limited to, (i) initiating communications with a Company employee relating to possible employment, (ii) offering bonuses or other compensation to encourage a Company employee to terminate his or her employment with the Company and accept employment with any entity, including but not limited to a competitor, supplier or customer of the Company, or (iii) referring Company employees to personnel or agents employed by any entity, including but not limited to competitors, suppliers or customers of the Company.

	
 
	
2.
	
Confidential Information. 

	
 
	
a.
	
Definition of Confidential Information.  Employee agrees that the confidentiality obligations set forth in the Company’s policies shall continue in full force and effect from and after the date hereof.  In addition, Employee acknowledges that his position with the Company created a relationship of high trust and confidence with respect to Confidential Information owned by the Company, its customers or suppliers that may have been learned or developed by Employee while employed by the Company. For purposes of this Agreement, “Confidential Information” means all information that meets one or more of the following three conditions: (i) it has not been made available generally to the public either by  the Company or by a third party with  the Company’s consent, (ii) it is useful or of value to  the Company’s current or anticipated business or research and development activities or those of a customer or supplier of the Company, or (iii) it either has been identified as confidential to Employee by the Company  (orally or in writing) or it has been maintained as confidential from outside parties and is recognized as intended for internal disclosure only. Confidential Information includes, but is not limited to, “Trade Secrets” to the full extent of the definition of that term under Delaware law. It does not include “general skills, knowledge and experience” as those terms are defined under Delaware law.

 

	
 
	
b.
	
Examples of Confidential Information.  Confidential Information includes, but is not limited to: computer programs, unpatented inventions, discoveries or improvements; marketing, manufacturing, organizational, research and development, and business plans; proposed benefit designs; vendor lists, 

 

 

	
 
		
relationship information and pricing; company policies; sales forecasts; personnel information (including the identity of  Company employees, their responsibilities, competence, abilities, and compensation); medical information about employees; pricing and nonpublic financial information; lists of current and prospective customers and information on customers or their employees; information concerning planned or pending acquisitions or divestitures; and information concerning purchases of major equipment or property.

 

	
 
	
c.
	
General Skills, Knowledge and Experience.  Employee may take and use the general skills, knowledge and experience that Employee has learned or developed in Employee’s position or positions with the Company.

 

	
 
	
d.
	
Confidentiality Obligations.  Employee will not (i) disclose, directly or indirectly, any Confidential Information to anyone outside of the Company or to any employees of the Company not authorized to receive such information or (ii) use any Confidential Information other than as may be necessary to perform Employee’s obligations under this Separation Agreement. In no event will Employee disclose any Confidential Information to, or use any Confidential Information for the benefit of any other person or entity, including without limitation any current or future competitor, supplier or customer of the Company, or any future employer of Employee. 

 

	
 
	
e.
	
Duration. With respect to Trade Secrets, Employee’s obligations under subparagraph (d) shall continue indefinitely or until such Trade Secret information has been made available generally to the public either by the Company or by a third party with the Company’s consent or is otherwise not considered a Trade Secret under Delaware law. With respect to Confidential Information that is not a Trade Secret (hereinafter referred to as “Proprietary Information”), Employee’s obligations under subparagraph (d) shall continue in duration until the first to occur of the following: (a) the expiration of 60 months after the Separation Date or (b) the Proprietary Information has been made available generally to the public either by the Company or by a third party with the Company’s consent. 

 

	
 
	
3.
	
Obligation upon Subsequent Employment. If you accept employment with any future employer during the time period that you are entitled to receive salary continuation (regardless of whether you actually receive severance benefits during that period), you will deliver a copy of this Annex A to such employer and advise such employer concerning the existence of your obligations under this Participation Agreement.

	
 
	
4.
	
Company’s Right to Injunctive Relief. By execution of this Participation Agreement, you acknowledge and agree that the Company would be damaged irreparably if any provision under this Annex A were breached by you and money damages would be an inadequate remedy for any such nonperformance or breach. Accordingly, the Company and its successors or permitted assigns in order to protect its interests, shall pursue, in addition to other rights and remedies existing in its favor, an injunction or injunctions to prevent any breach or threatened breach of any of such provisions and to enforce such provisions specifically (without posting a bond or other security). With respect to such enforcement, 

 

 

	
 
		
the prevailing party in such litigation shall be entitled to recover from the other party any and all attorneys’ fees, costs and expenses incurred by or on behalf of that party in enforcing or attempting to enforce any provision under this Annex A or any other rights under this Participation Agreement.Exhibit 101

		
			Exhibit 10.1
		

		
			VULCAN MATERIALS COMPANY
		

		
			PERFORMANCE SHARE UNIT AWARD AGREEMENT
		

		
			Granted under the 2016 Omnibus Long-Term Incentive Plan
		

		
			Terms and Conditions
		

		
			﻿
		

		
			Grant Date: XXXX XX, XXXX
		

		
			﻿
		

		
			﻿
		

			
	
			
				 1.
			

			
	
			
			Definitions. In addition to other terms defined herein, the following terms will have the meanings as follows, and terms not defined in the Agreement have the meanings given in the Plan:

			
	
			
				 (a)
			

			
	
			
			"Administrator" means the Compensation Committee of the Board of Directors (the “Board”) or the Board.

			
	
			
				 (b)
			

			
	
			
			“Agreement” means this Performance Share Unit Award Agreement.

			
	
			
				 (c)
			

			
	
			
			"Award Period" means the three-year period shown in Section 3 of this Agreement, except that in the event of the Participant’s death, the Award Period will be the period covered by the Agreement ending on December 31st of the calendar year in which the death occurred.

			
	
			
				 (d)
			

			
	
			
			“Company” means Vulcan Materials Company, a New Jersey corporation, or its successors.

			
	
			
				 (e)
			

			
	
			
			"Disability” means Permanent and Total Disability whereby the Participant is entitled to long-term disability benefits under the applicable long-term disability plan of the Company or an Affiliate, or, to the extent the Participant is not eligible to participate in any Company-sponsored plan, under the guidelines of the Social Security Administration, or as otherwise defined in the Plan. 

			
	
			
				 (f)
			

			
	
			
			“Fair Market Value or “FMV” means the closing stock price per Share as reported on the principal stock exchange on which such Shares are listed on the last trading date before the Payment Date (or other applicable date), or as otherwise provided in the Plan. 

			
	
			
				 (g)
			

			
	
			
			"Grant Date" means the grant date of the  PSUs awarded herein.

			
	
			
				 (h)
			

			
	
			
			"Participant" means the employee of the Company or its Subsidiaries or other Affiliates granted the PSUs under this Agreement.

			
	
			
				 (i)
			

			
	
			
			"Performance Share Unit" or “PSU” means a Performance Unit Award denominated in Shares in which each Performance Share Unit represents the contingent right to earn one share of Common Stock. PSUs do not have voting rights.

			
	
			
				 (j)
			

			
	
			
			“Plan” means the Vulcan Materials Company 2016 Omnibus Long-Term Incentive Plan, as amended.

			
	
			
				 (k)
			

			
	
			
			“Payment Date” means the date on which payment of Shares is made in Vulcan Common Stock under this Agreement.

			
	
			
				 (l)
			

			
	
			
			“Share" means a share of Common Stock, par value $1.00 per share, of the Company.

			
	
			
				 (m)
			

			
	
			
			“Vesting Date” or “Vesting Dates” has the meaning given in Section 2(c) herein.

			
	
			
				 2.
			

			
	
			
			Grant and Vesting of PSUs

			
	
			
				 (a)
			

			
	
			
			Grant. The Participant is awarded the number of PSUs identified through the electronic, on-line grant acceptance process, subject to the terms and conditions of the Plan and this Agreement.  The Participant’s on-line acceptance of the Agreement constitutes his or her agreement to the Agreement’s terms, including but not limited to the restrictive covenants in Sections 4(a) and 5 herein. Depending on the Company’s performance as set forth in Section 3, the Participant may earn zero percent (0%) to two hundred percent (200%) of the PSUs awarded.

		 

 

		

			 

		

			
	
			
				 (b)
			

			
	
			
			Dividend Equivalents. The Participant shall be entitled to receive dividend equivalents for each PSU that vests, if any, pursuant to this Agreement, or the Plan. If the Company declares a regular cash dividend during the Performance Period, the Participant shall accrue dividend equivalents on each unvested PSU. For purposes of the foregoing sentence only, if the PSUs are subject to accelerated vesting pursuant to the Plan, the “Performance Period” shall be deemed to have ended as of the date of the event which serves as the basis for such accelerated vesting. Any accrued dividend equivalents relating to the Participant’s unvested PSUs shall be payable in cash at the time the underlying Shares vest and are issued to the Participant in accordance with Section 3, less applicable withholding taxes pursuant to Section 3(d). If the PSUs are forfeited, any accrued dividend equivalents will also be forfeited.

		
			﻿
		

			
	
			
				 (c)
			

			
	
			
			Vesting.  The PSUs will become vested, to the extent earned, on December 31, XXXX at the end of the Award Period; provided, however, that the Participant’s employment or service continues from the Grant Date until the vesting date, and except as otherwise provided in Section  4.

			
	
			
				 3.
			

			
	
			
			Payment of Performance Share Awards

			
	
			
				 (a)
			

			
	
			
			Award Period and Percentage of Awards Payable. The Award Period for this award begins on January 1, XXXX and ends on December 31, XXXX. Utilizing the performance Share Unit Award Payment Tables below, Table A and Table B, the Administrator establishes the Total Percentage of Awards Payable (“Total Percentage”) for the Award Period. The Total Percentage is based 50% on the Company’s 3-year average Total Shareholder Return (“TSR”) relative to S&P 500 Index as comprised on January 1 of the year of grant (“TSR Percentage”).  The calculation of TSR uses the 20-trading-day average (12/1 thru 12/31) at the beginning and end of each period and an average of the annual TSR periods. The remaining 50% is based on the annual average growth rate of Cash Gross Profit per ton (“CGP/ton”) during the Award Period (“CGP Percentage”).

		
			﻿
		

			
					
						PSU Payment Table

					
					
						 

					
					
						PSU Payment Table

				
	
					
						TABLE A

					
					
						 

					
					
						TABLE B

				
	
					
						3-Year Average Total Shareholder Return Percentile Rank Relative to S&P 500 Index

					
					
						% of Performance Share Units Payable

					
					
						 

					
					
						CGP/Ton

					
						Annual

					
						Growth

					
					
						% of Performance Share Units Payable

				
	
					
						75th or Greater

					
						(Maximum)

					
					
						100

					
					
						 

					
					
						9.5% or Greater

					
						(Maximum)

					
					
						100

				
	
					
						50th (Target)

					
					
						50

					
					
						 

					
					
						4.5% (Target)

					
					
						50

				
	
					
						25th (Threshold)

					
					
						12.5

					
					
						 

					
					
						0.5% (Threshold)

					
					
						12.5

				
	
					
						Less than 25th

					
					
						0

					
					
						 

					
					
						Less than 0.5%

					
					
						0

				

		
			﻿
		

			
	
			
				 (b)
			

			
	
			
			PSUs Payable. The number of Shares payable is the sum of the number of PSUs  awarded multiplied by the TSR Percentage payable plus the number of PSUs awarded multiplied by the CGP Percentage payable.  For performance levels falling between the values as shown above, the Percentages will be determined by interpolation. Payment will be made in Shares.

			
	
			
				 (c)
			

			
	
			
			The Value of the Stock Issued as Payment for PSUs Earned. The FMV will be used to determine the basis of the Shares payable.

		 

		

			Exhibit 10.1 Page 2

		

		

			 

		

 

		

			 

		

			
	
			
				 (d)
			

			
	
			
			Withholding.  The Company will withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory amount (or such other amount as may be determined by the Administrator in accordance with the Plan) for federal, state, local and employment taxes which could be withheld on the transaction with respect to any taxable event arising as a result of this Agreement, or as otherwise provided in the Plan.  

			
	
			
				 (e)
			

			
	
			
			Timing of Payment.  Payment will be made to a Participant between January 1 and March 15 of the calendar year after the calendar year in which the Award Period, as defined in Section 1(c), ends.

			
	
			
				 (f)
			

			
	
			
			Administrator Discretion.  The Administrator has full authority and discretion with respect to the PSUs and this Agreement to the extent provided in the Plan. In addition, without limiting the effect of the foregoing, (i) the Administrator may exercise its discretion to reduce or eliminate payments if the Award Period average TSR is less than the 25th percentile and the CGP/ton is less than 0.5%, and (ii) the Administrator has sole discretion to establish the Comparison Group to be used in evaluating the performance of the Company in accordance with Section 3(a), and may change the Comparison Group from time to time.

			
	
			
				 4.
			

			
	
			
			Termination of Employment; Change of Control.

			
	
			
				 (a)
			

			
	
			
			Termination at age 55 and above.

			
	
			
				 (i)
			

			
	
			
			If a Participant terminates from employment at age 55-61 other than for Cause (for these purposes, “Early Retirement”), the PSUs will become non-forfeitable in accordance with Table B and will be paid to the extent earned in accordance with Section  3.  The Participant may be required to execute a reasonable non-competition covenant (except where not applicable due to some state laws) with the Company restricting the Participant from competing with the Company in a specified territory for a specified period of time. If such covenant is required by the Company and is not executed by the Participant, or if the Participant violates the covenant, unvested PSUs will be forfeited and vested PSUs not yet paid as of the Termination Date will be paid to the extent earned in accordance with Section 3.

			
					
						TABLE B

				
	
					
						If Participant age 55-61 terminates:

					
					
						The percentage of PSUs

					
						that will become non-forfeitable is:

				
	
					
						On or After 1/1/20XX

					
					
						34% of the award

				
	
					
						On or After 1/1/20XX

					
					
						67% of the award

				
	
					
						On or After 1/1/20XX

					
					
						100% of the award

				

		
			﻿
		

			
	
			
				 (ii)
			

			
	
			
			If a Participant terminates from employment at age 62 or later other than for Cause (for these purposes, “Retirement”), the PSUs which have been held by the Participant until 1/1/20XX will be deemed to be non-forfeitable and will be paid to the extent earned in accordance with Section 3. The Participant may be required to execute a reasonable non-competition covenant (except where not applicable due to some state laws) with the Company restricting the Participant from competing with the Company in a specified territory for a specified period of time. If such covenant is required by the Company and is not executed by the Participant, or if the Participant violates the covenant, unvested PSUs will be forfeited and vested PSUs not yet paid as of the Termination Date will be paid to the extent earned in accordance with Section 3.

			
	
			
				 (b)
			

			
	
			
			Disability. Upon the Participant’s termination of employment due to Disability, the PSUs granted under this Agreement will become non-forfeitable. All non-forfeitable PSUs will be paid to the extent earned in accordance with Section 3.

			
	
			
				 (c)
			

			
	
			
			Death.  Upon the death of the Participant, the PSUs granted under this Agreement will become non-forfeitable. All non-forfeitable PSUs will be paid to the Participant's beneficiary or estate to the greater of the extent earned in accordance with Section  3 or target.

		 

		

			Exhibit 10.1 Page 3

		

		

			 

		

 

		

			 

		

			
	
			
				 (d)
			

			
	
			
			Other Termination.  Upon voluntary or involuntary termination for reasons other than Early Retirement, Retirement, death, Disability or Cause, unvested PSUs will be forfeited and vested PSUs not yet paid as of the Participant’s Termination Date will be paid to the extent earned in accordance with Section 3.

			
	
			
				 (e)
			

			
	
			
			Termination for Cause.  If a Participant’s employment is terminated for Cause, the PSUs will immediately be forfeited, even with respect to vested PSUs which were otherwise non-forfeitable but not yet paid.  The Administrator will have complete discretion to determine the basis of a Participant’s termination, including but not limited to whether a Participant has been terminated for Cause. The Administrator's determination will be final and binding on all persons for purposes of the Plan and this Agreement.

			
	
			
				 (f)
			

			
	
			
			Change in Control of the Company. In the event a Change of Control occurs, and subject to Plan terms, the PSUs  will be deemed earned and vested as follows:

			
	
			
				 (i)
			

			
	
			
			To the extent that the successor or surviving company in the Change of Control event does not assume or substitute for the PSUs (or in which the Company is the ultimate parent corporation and does not continue the PSUs) on substantially similar terms or with substantially equivalent economic benefits (as determined by the Administrator prior to the Change of Control) as Awards outstanding under the Plan immediately prior to the Change of Control event, the PSUs  will be deemed immediately earned at the greater of actual performance or target performance.

			
	
			
				 (ii)
			

			
	
			
			Further, in the event that the PSUs are substituted, assumed or continued as provided in Section 4(f)(i) herein, then (except as otherwise provided in Section 4(f)(iii) below), the PSUs will nonetheless become fully vested and earned at the greater of actual performance or target performance if the Participant’s employment is terminated by the Company not for Cause or by the Participant for Good Reason within six months before (in which case vesting will not occur until the effective date of the Change of Control) or two years (or such other period after a Change of Control as may be stated in the Participant’s employment, change in control, consulting or other similar agreement, plan, or policy, if applicable) after the effective date of a Change of Control (in which case the PSUs  will be deemed immediately vested as of the Participant’s Termination Date).

			
	
			
				 (iii)
			

			
	
			
			Notwithstanding Section 4(f)(ii), in the event that the PSUs are substituted, assumed or continued as provided in Section 4(f)(i) herein, in lieu of applying the provisions of Section 4(f)(ii), the Administrator (as constituted prior to the Change of Control) may, in its sole discretion, determine that the PSUs will be deemed earned at the greater of actual performance or target performance as of the time of the Change of Control and, following the Change of Control, the PSUs will convert to a service-based Award for the remainder of the Award Period, subject to accelerated vesting in the event of the Participant’s termination by the Company not for Cause or for Good Reason as provided in Section 4(f)(ii) above. 

			
	
			
				 (iv)
			

			
	
			
			In the event that the PSUs are substituted, assumed or continued as provided in Section 4(f)(i) herein, the Participant will also be entitled to receive, with respect to each Share subject to the PSUs that becomes earned and vested following the effective date of the Change of Control pursuant to Section 2(c), Section 3 or Section 4, a value restoration payment with respect to such Share (a “Value Restoration Payment”), provided that the Value Restoration Payment will only be payable if the Participant remains in continuous employment with the Company or its successor or an Affiliate of the Company or its successor through the applicable vesting date. The Value Restoration Payment will be equal to the difference between the Fair Market Value of the surviving entity’s common stock (or equivalent security) on the effective date of the Change of Control and, if less, the Fair Market Value of the surviving entity’s common stock (or equivalent security) on the date of vesting (including the date of any accelerated vesting pursuant to this Section 4). Any such Value Restoration Payment will be paid to the Participant in cash at the same time Shares are payable pursuant to the PSUs as provided in Section 3.

		 

		

			Exhibit 10.1 Page 4

		

		

			 

		

 

		

			 

		

			
	
			
				 5.
			

			
	
			
			Non-Solicitation. In consideration for this Agreement and notwithstanding any other provision in this Agreement, the Participant agrees to comply with the non-solicitation covenants set forth below (except where not applicable due to some state laws):

			
	
			
				 (a)
			

			
	
			
			Non-Solicitation of Customers. The Participant acknowledges that while employed by or in service to the Company, the Participant will occupy a position of trust and confidence and will acquire confidential information about the Company, its Subsidiaries and other Affiliates, and their clients and customers that is not disclosed by the Company or any of its Subsidiaries or other Affiliates in the ordinary course of business, including trade secrets, data, formulae, information concerning customers and other information which is of value to the Company because it is not generally known. The Participant agrees that during the period of employment with or service to the Company and for a period of two years after the Participant’s Termination Date, regardless of the reason for termination, the Participant will not, either individually or as an officer, director, stockholder, member, partner, agent, consultant or principal of another business firm, directly or indirectly solicit any customer of the Company or of its Subsidiaries or other Affiliates.

			
	
			
				 (b)
			

			
	
			
			Non-Solicitation of Employees.  The Participant recognizes that while employed by or in service to the Company, the Participant will possess confidential information about other employees of the Company and its Subsidiaries or other Affiliates relating to their education, experience, skills, abilities, compensation and benefits, and inter-personal relationships with suppliers to and customers of the Company and its Subsidiaries or other Affiliates.  The Participant recognizes that this information is not generally known, is of substantial value to the Company and its Subsidiaries or other Affiliates in developing their respective businesses and in securing and retaining customers, and will be acquired by the Participant because of the Participant’s business position with the Company. The Participant agrees that during the period of employment with or service to the Company and for two years after the Participant’s Termination Date, regardless of the reason for termination, the Participant will not, directly or indirectly, solicit or recruit any employee of the Company or any of its Subsidiaries or other Affiliates for the purpose of being employed by the Participant or by any business, individual, partnership, firm, corporation or other entity on whose behalf the Participant is acting as an agent, representative or employee and that the Participant will not convey any such confidential information or trade secrets about other employees of the Company or any of its Subsidiaries or other Affiliates to any other person except within the scope of the Participant’s duties as an employee of or service provider to the Company.

			
	
			
				 (c)
			

			
	
			
			Remedies.  If the Participant violates either of the covenants in Section 5(a) or Section 5(b), the PSUs will be forfeited and the Participant’s rights under this Agreement will terminate. In addition, if any dispute arises concerning the violation by the Participant of the covenants described in this section, in addition to any other rights or remedies of this Company, an injunction may be issued restraining such violation pending the determination of such controversy, and no bond or other security will be required in connection therewith. Further, the Company will be entitled to seek appropriate legal relief, including money damages, equitable relief, and attorneys’ fees.

			
	
			
				 6.
			

			
	
			
			Additional Provisions.

			
	
			
				 (a)
			

			
	
			
			No Right to Continued Employment or Service; No Right to Further Awards.  Nothing in the Plan or the Agreement gives the Participant any right to continue in the employment or service of the Company or an Affiliate or interferes with the right of the Company or an Affiliate to terminate the Participant’s employment or service at any time. Except as otherwise provided in the Plan or this Agreement, all rights of the Participant with respect to the unvested portion of the PSUs (if any) will terminate on the Participant’s Termination Date. The grant of the PSUs does not create any obligation to grant further awards.

			
	
			
				 (b)
			

			
	
			
			Tax Consequences. The Participant acknowledges that the Company has made no warranties or representations to the Participant with respect to the tax consequences related to the transactions contemplated by this Agreement, and the Participant is in no manner relying on the Company or its representatives for an assessment of such tax consequences. The Participant acknowledges that there may be adverse tax consequences upon the grant or vesting of the PSUs and/or the acquisition or disposition of the Shares or other benefits subject to the PSUs and that he or she has been advised that he or she should consult with his or her own attorney, accountant and/or tax advisor regarding the decision to enter into this Agreement and the consequences thereof. The 
		

		 

		

			Exhibit 10.1 Page 5

		

		

			 

		

 

		

			 

		

			Participant also acknowledges that the Company has no responsibility to take or refrain from taking any actions in order to achieve a certain tax result for the Participant.

			
	
			
				 (c)
			

			
	
			
			PSUs Subject to Plan.  By entering into this Agreement, the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan and Plan prospectus. The Participant acknowledges and agrees that the Agreement and the Participant’s rights are subject to the Plan. The terms and provisions of the Plan are incorporated herein by reference. In the event of a conflict between any term or provision in the Agreement and a term or provision of the Plan, the Plan terms will govern, unless the Administrator determines otherwise.

			
	
			
				 (d)
			

			
	
			
			Amendment; Waiver; Superseding Effect.  This Agreement may be modified or amended as provided in the Plan. The waiver by the Company of a breach of any provision of this Agreement by the Participant will not operate or be construed as a waiver of any subsequent breach by the Participant. The Agreement supersedes any statements, representations or agreements of the Company with respect to the grant of the PSUs or any related rights, and the Participant waives any rights or claims related to any such statements, representations or agreements.

			
	
			
				 (e)
			

			
	
			
			Recoupment and Forfeiture.  As a condition to receiving the PSUs, the Participant agrees that he or she will abide by the Company’s Director and Executive Stock Ownership and Equity Retention Guidelines and Clawback Policy and/or other policies adopted by the Company or an Affiliate, each as in effect from time to time and to the extent applicable to the Participant. Further, the Participant will be subject to such compensation recovery, recoupment, forfeiture or other similar provisions as may apply under Applicable Law.

		 

		

			Exhibit 10.1 Page 6

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