Document:

Exhibit

Exhibit 10.1

MAXWELL TECHNOLOGIES, INC.  
INCENTIVE BONUS PLAN
		
	ARTICLE 1.
	BACKGROUND AND PURPOSE 

1.1    Effective Date.  This Plan became effective beginning in Fiscal Year 2016 upon its adoption by the Committee, and is not subject to approval by the Company’s stockholders.  
1.2    Purpose of the Plan.  The Plan is intended to provide Participants with the possibility of earning annual incentive bonuses and similar awards in the event the Company achieves specified financial and strategic performance.  
		
	ARTICLE 2.
	DEFINITIONS 

The following words and phrases shall have the following meanings, unless a different meaning is plainly required by the context: 
2.1    “Actual Award” means, as to any Performance Period, the actual award amount (if any) payable to a Participant for the Performance Period.  Each Actual Award is determined by the Payout Formula for the Performance Period, subject to the Administrator’s authority under Section 3.6 to increase, eliminate or reduce the award otherwise indicated by the Payout Formula. 
2.2    “Administrator” means the Committee or such other entity, group, or individual delegated authority to administer the Plan in accordance with Section 5.1 of the Plan.  
2.3    “Affiliate” means any corporation or other entity (including, without limitation, partnerships and joint ventures) controlled by the Company. 
2.4    “Base Salary” means, as to any Performance Period, the Participant’s regular earned salary during the Performance Period.  Base Salary shall be calculated before both (a) deductions for taxes or benefits and (b) any deferrals of compensation pursuant to Company-sponsored plans or Affiliate-sponsored plans. 
2.5    “Board” means the Company’s Board of Directors. 
2.6    “Code” means the Internal Revenue Code of 1986, as amended.
2.7    “Committee” means the Compensation Committee of the Board. 
2.8    “Company” means Maxwell Technologies, Inc., a Delaware corporation.  
2.9    “Disability” means a permanent disability determined in accordance with a policy established by the Administrator. 
2.10    “Employee” means any employee of the Company or an Affiliate, whether such employee is so employed when the Plan is adopted or becomes so employed after the adoption of the Plan. 
2.11    “Fiscal Year” means the fiscal year of the Company. 

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2.12    “Participant” means, as to any Performance Period, an Employee who has been selected for participation in the Plan for that Performance Period pursuant to Section 3.1.  
2.13    “Payout Formula” means, as to any Performance Period, the formula or payout matrix established by the Administrator pursuant to Section 3.5 in order to determine the Actual Awards (if any) to be paid to Participants.  The formula or matrix may differ from Performance Period to Performance Period and from Participant to Participant. 
2.14    “Performance Period” means a Fiscal Year, or any longer or shorter period determined by the Administrator. 
2.15    “Performance Goals” means the goal(s) or combined goal(s) determined by the Administrator to be applicable to a Participant for a Target Award for a Performance Period.  The possible performance measures that might be used as a Performance Goal are set forth in Section 3.3 below.  Depending on the performance criteria used, a Performance Goal may be expressed in terms of overall Company performance or the performance of a business unit, division, Subsidiary, Affiliate or an individual. A Performance Goal may be measured either in absolute terms or relative to the performance of one or more comparable companies or one or more relevant indices.  The Administrator may adjust the results under any performance criterion to exclude any of the following events that occurs during a Performance Period: (a) asset write-downs, (b) litigation, claims, judgments or settlements, (c) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported results, (d) accruals for reorganization and restructuring programs, (e) extraordinary, unusual or non-recurring items, (f) exchange rate effects for non-U.S. dollar denominated net sales and operating earnings, or (g) statutory adjustments to corporate tax rates; provided, however, that if an award is intended to qualify as “performance-based compensation” within the meaning of Code Section 162(m), such adjustment(s) shall only be made to the extent consistent with Code Section 162(m)
2.16    “Plan” means this Maxwell Technologies, Inc. Incentive Bonus Plan. 
2.17    “Shares” means shares of the Company’s common stock. 
2.18    “Stock Plan” means the Maxwell Technologies, Inc. 2013 Omnibus Equity Incentive Plan, as amended from time to time, or any successor plan intended for such purposes that is subsequently adopted by the Company and, if required by applicable law, approved by the Company’s stockholders.
2.19    “Target Award” means the target award amount payable under the Plan to a Participant for the Performance Period, generally expressed either as a percentage of his or her Base Salary earned during the Performance Period, or as a specific dollar amount or by reference to a number of Shares, as determined by the Administrator in accordance with Section 3.4. 
2.20    “Termination of Employment” means a cessation of the employee-employer relationship between an Employee and the Company or an Affiliate for any reason, including (without limitation) a termination by resignation, discharge, death, Disability, retirement or the disaffiliation of an Affiliate, but (unless otherwise determined by the Administrator) excluding a transfer from the Company to an Affiliate or between Affiliates. 
		
	ARTICLE 3.
	SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS 

3.1    Selection of Participants.  The Administrator, in its sole discretion, shall select the Employees who shall be Participants for any Performance Period.  The Administrator also may designate as Participants one or more individuals (by name or position) who are expected to become Employees during a Performance Period.  Participation in the Plan is in the sole discretion of the Administrator and shall be determined Performance Period by Performance Period.  Accordingly, an Employee who is a Participant for a given Performance Period is in no way assured of being selected for participation in any subsequent Performance Period.

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3.2    Determination of Performance Period.  The Administrator, in its sole discretion, shall establish whether a Performance Period shall be a Fiscal Year or such longer or shorter period of time.  The Performance Period may differ from Participant to Participant and from award to award.
3.3    Determination of Performance Goals.  The Administrator shall establish the Performance Goals for each Participant for the Performance Period, and the Administrator (or its designee) shall communicate the applicable Performance Goals to each Participant. The Performance Goals of any award intended to qualify as “performance-based compensation” within the meaning of Code Section 162(m) must be selected from the list of performance criteria set forth in the Stock Plan.  Awards not intended to so comply may relate to such other performance metrics as the Administrator shall determine and specify to apply to an award. The Performance Goals may differ from Participant to Participant and from award to award.  
3.4    Determination of Target Awards.  The Administrator shall establish a Target Award for each Participant for each Performance Period, and the Administrator (or its designee) shall communicate the applicable Target Award to each Participant.  
3.5    Determination of Payout Formula or Formulae.  The Administrator will establish a Payout Formula or Formulae for purposes of determining the Actual Award (if any) payable to each Participant.  Each Payout Formula may (a) be based on a comparison of actual performance to the Performance Goals, (b) provide for the payment of a Participant’s Target Award if the Performance Goals for the Performance Period are achieved at the predetermined level and (c) provide for the payment of an Actual Award greater than or less than the Participant’s Target Award, depending upon the extent to which actual performance exceeds or falls below the Performance Goals, subject to the limitations in Sections 3.7 and 3.8. 
3.6    Determination of Actual Awards.  After the end of each Performance Period, the Administrator will determine the extent to which the Performance Goals applicable to each Participant for the Performance Period were achieved or exceeded.  The Actual Award for each Participant will be determined by applying the Payout Formula to the level of actual performance that has been determined by the Administrator; provided that notwithstanding anything to the contrary in this Plan, the Administrator may (a) reduce or eliminate the Actual Award that otherwise would be payable under the Payout Formula; (b) subject to Section 3.8, increase the Actual Award; or (c) determine whether or not any Participant will receive an Actual Award in the event that the Participant incurs a Termination of Employment before such Actual Award is to be paid pursuant to Section 4.2.  If a Participant’s Actual Award is reduced or eliminated, no other Participant’s Actual Award shall be increased as a result.  The Administrator has the absolute discretion to reduce or eliminate payment of an Actual Award if in the Administrator’s judgment corporate performance, financial condition, individual performance, general economic conditions, or other similar factors make such reduction or elimination appropriate. 
3.7    Maximum Actual Awards.  Subject to Section 3.8, the Administrator may establish the maximum amount or value of the Actual Award paid to any Participant for any Performance Period.
3.8    Code Section 162(m).  Notwithstanding anything to the contrary contained herein, awards granted under the Plan that are intended to qualify as “performance-based compensation” within the meaning of Code Section 162(m) are subject to certain terms and conditions specified in the Stock Plan, including without limitation an annual maximum amount that may be paid with respect to such awards to any individual Participant, and such awards shall not be subject to any discretionary action of the Administrator otherwise authorized under this Plan if such action would cause the award not to so qualify.
		
	ARTICLE 4.
	PAYMENT OF AWARDS 

4.1    Right to Receive Payment.  A Participant shall have no right to receive an Actual Award unless the Participant is employed by the Company or an Affiliate on the date of payment, unless otherwise determined by the Administrator.  

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4.2    Unfunded Plan.  Each Actual Award that may become payable under the Plan shall be paid solely from the general assets of the Company or the Affiliate that employs the Participant (as the case may be), as determined by the Company.  No amounts awarded or accrued under the Plan shall be funded, set aside or otherwise segregated prior to payment.  The obligation to pay Actual Awards under the Plan shall at all times be an unfunded and unsecured obligation of the Company.  Participants shall have the status of general creditors of the Company or the Affiliate that employs the Participant. 
4.3    Timing of Payment.  Subject to Sections 3.7 and 4.6, payment of each Actual Award shall be made as soon as administratively practicable after the end of the applicable Performance Period, but in no event after two and one-half months following the calendar year in which the right to receive payment of the Actual Award by a Participant ceases to be a “substantial risk of forfeiture” within the meaning of Treasury Regulation Section 1.409A-1(d).  
4.4    Form of Payment.  Each Actual Award shall be paid in cash (or its equivalent) or Shares in a single lump sum, except as otherwise determined by the Administrator.   If an Actual Award is paid in whole or in part in Shares, such Shares shall be granted under the Stock Plan.  
4.5    Payment in the Event of Death.  If a Participant dies before receiving an Actual Award that was scheduled to be paid before his or her death for a prior Performance Period, then the Actual Award shall be paid to the Participant’s designated beneficiary or, if no beneficiary has been designated, to the administrator or representative of his or her estate, subject to applicable law.  Any beneficiary designation or revocation of a prior designation shall be effective only if it is in writing, signed by the Participant and received by the Company prior to the Participant’s death, subject to applicable law.
4.6    Suspension or Termination of Awards.  The Administrator may with respect to any one or more Performance Periods establish terms and conditions for the suspension of the payment or for the non-payment of any Actual Award in the event of misconduct of a Participant.  In the absence of the establishment of such terms and conditions, the following terms shall apply:  If at any time (including after the conclusion of a Performance Period) the Administrator reasonably believes that a Participant has committed an act of misconduct as described in this Section 4.6, the Administrator may suspend the payment of an Actual Award, pending a determination of whether an act of misconduct has been committed.  If the Administrator determines that a Participant has committed an act of embezzlement, fraud or breach of fiduciary duty, or if a Participant makes an unauthorized disclosure of any trade secret or confidential information of the Company or any of its Affiliates, or induces any customer to breach a contract with the Company or any of its Affiliates, neither the Participant nor his or her estate shall be entitled to receive payment of any Actual Award. Any determination by the Administrator with respect to the foregoing shall be final, conclusive and binding on all interested parties. 
4.7    Recoupment Policy.  All awards granted under the Plan shall be subject to any Company recoupment or clawback policy, as in effect from time to time, including any such policy required by Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  
		
	ARTICLE 5.
	ADMINISTRATION 

5.1    Administrator Authority.  The Plan shall be administered by the Administrator, subject to Section 5.3, and with respect to any Company executive officer the Committee shall act as Administrator.  The Administrator shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including (without limitation) the power to (a) determine which Employees shall be granted awards, (b) prescribe the terms and conditions of the awards, (c) interpret the Plan, (d) adopt such procedures and sub-plans as are necessary or appropriate, (e) adopt rules for the administration, interpretation and application of the Plan and (f) interpret, amend or revoke any such rules. 

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5.2    Decisions Binding.  All determinations and decisions made by the Administrator, the Board or any delegate of the Administrator pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons and shall be given the maximum deference permitted by law. 
5.3    Delegation by the Administrator.  The Administrator, on such terms and conditions as it may provide, may delegate all or part of its authority and powers under the Plan to one or more directors and/or employees of the Company, except that the Committee may not delegate its authority and powers under the Plan with respect to Company executive officers. 
		
	ARTICLE 6.
	GENERAL PROVISIONS 

6.1    Tax Withholding.  The Company or an Affiliate, as applicable, shall withhold all required taxes from an Actual Award, including any federal, state, local or other taxes, or otherwise require as a condition to grant and/or payment of any award that the Participant satisfy any applicable withholding obligations in a manner designed to comport with applicable law, Company practice and the terms of this Plan and, if applicable, the Stock Plan. 
6.2    Application of Section 409A.  The provisions of this Plan are intended to be exempt from the requirements of Code Section 409A so that none of the payments to be provided under this Plan will be subject to the additional tax imposed under Code Section 409A, and any ambiguities herein will be interpreted to be so exempt.  In no event will the Administrator reimburse Participants for any taxes that may be imposed as result of Code Section 409A.  
6.3    No Effect on Employment.  Neither the Plan nor any Target Award shall confer upon a Participant any right with respect to continuing the Participant’s employment with the Company or an Affiliate.   Nothing in the Plan shall interfere with or limit in any way the right of the Company or an Affiliate, as applicable, to terminate any Participant’s employment or service at any time, with or without cause.  The Company and its Affiliates expressly reserve the right, which may be exercised at any time and without regard to when during or after a Performance Period such exercise occurs, to terminate any individual’s employment with or without cause, and to treat him or her without regard to the effect that such treatment might have upon him or her as a Participant. 
6.4    Participation; No Effect on Other Benefits.  No Employee shall have the right to be selected to receive an award under the Plan, or, having been so selected, to be selected to receive a future award.   Except as expressly set forth in a Participant’s employment agreement with the Company or an Affiliate, any Actual Awards under the Plan shall not be considered for the purpose of calculating any other benefits to which such Participant may be entitled, including (a) any termination, severance, redundancy or end-of-service payments, (b) other bonuses or long-service awards, (c) overtime premiums, (d) pension or retirement benefits or (e) future Base Salary or any other payment to be made by the Company to such Participant.  All Participants expressly acknowledge that there is no obligation on the part of the Company to continue the Plan. Any Actual Awards granted under the Plan are not intended to be compensation of a continuing or recurring nature, or part of a Participant’s normal or expected compensation. 
6.5    Successors.  All obligations of the Company and any Affiliate under the Plan, with respect to awards granted hereunder, shall be binding on any successor to the Company and/or such Affiliate, whether the existence of such successor is the result of a merger, consolidation, direct or indirect purchase of all or substantially all of the business or assets of the Company or such Affiliate, or any similar transaction. 
6.6    Nontransferability of Awards.  No award granted under the Plan shall be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution or to the limited extent provided in Section 4.5.  All rights with respect to an award granted to a Participant shall be available during his or her lifetime only to the Participant. 
		
	ARTICLE 7.
	DURATION, AMENDMENT AND TERMINATION 

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7.1    Duration of the Plan.  The Plan shall remain in effect until terminated pursuant to Section 7.2.
7.2    Amendment, Suspension or Termination.  The Board or the Administrator may amend, suspend or terminate the Plan, or any part thereof, at any time and for any reason.  No award may be granted during any period of suspension or after termination of the Plan. 
		
	ARTICLE 8.
	LEGAL CONSTRUCTION 

8.1    Severability.  In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
8.2    Applicable Law.  The granting of awards under the Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities markets as may be required. The Plan shall be governed by, and construed in accordance with, the laws of the State of California (excluding its choice-of-law provisions).
8.3    Captions.  Captions are provided herein for convenience only and shall not serve as a basis for interpretation or construction of the Plan. 

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ATTACHMENT A TO
MAXWELL TECHNOLOGIES, INC. 
INCENTIVE BONUS PLAN

TARGET BONUSES
	
		
	Name
	Target Bonus ($$ amount or % of Base Salary)

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

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© 2016 Maxwell Technologies, Inc. – All rights reserved.Exhibit

Exhibit 10.2
MARKET STOCK UNITS  

MAXWELL TECHNOLOGIES, INC. 
2013 OMNIBUS EQUITY INCENTIVE PLAN 
NOTICE OF MARKET STOCK UNIT AWARD
You have been granted Market Stock Units (“MSUs”) representing shares of common stock of Maxwell Technologies, Inc. (the “Company”) on the following terms:
	
		
	Name of Recipient:
	xxxx

	Grant Date:
	xxxx

	Grant Number:
	xxxx

	Target Number of MSUs:
	xxxx (the “Target MSUs”)

	Maximum Number of MSUs:
	xxxx (the “Maximum MSUs”)

 
You and the Company agree that the MSUs are granted under and governed by the terms and conditions of the Maxwell Technologies, Inc. 2013 Omnibus Equity Incentive Plan (the “Plan”) and the Market Stock Unit Agreement (the “Agreement”), both of which have been made available to you and are made a part of this document. For purposes of the Plan, MSUs are Stock Units with vesting determined by reference to the relative performance of the Company’s stock price compared with the Nasdaq Composite Index. 
By signing below or accepting the Agreement by an electronic means as set forth in the Notice section thereof, you agree to all of the terms and conditions described above, the Agreement, and the Plan.  

 
    
 
Name of Recipient

    

Exhibit 10.2
MARKET STOCK UNITS  

MAXWELL TECHNOLOGIES, INC. 
2013 OMNIBUS EQUITY INCENTIVE PLAN:
MARKET STOCK UNIT AGREEMENT
	
		
	Grant of MSUs
	Subject to all of the terms and conditions set forth in the Notice of Market Stock Unit Award (the “Grant Notice”), this Agreement and the Plan, the Company has granted to you this award of MSUs, under which you are eligible to earn up to the Maximum MSUs (as set forth in the Grant Notice) upon satisfaction of specified stock price-related performance objectives. Defined terms are set forth in the section entitled Definitions below. 

	Vesting
	Provided that your service as an Employee continues through the end of the First Performance Period, you will vest in the number of MSUs subject to the First Tranche (the “First Year Vested MSUs”) equal to the product of (i) the number of MSUs subject to the First Tranche, multiplied by (ii) the lesser of (A) the Payout Percentage, or (B) 200%.  
Provided that your service as an Employee continues through the end of the Second Performance Period, you will vest in the number of MSUs subject to the Second Tranche (the “Second Year Vested MSUs”) equal to the product of (i) the number of MSUs subject to the Second Tranche, multiplied by (ii) the lesser of (A) the Payout Percentage, or (B) 200%.  
Provided that your service as an Employee continues through the end of the Third Performance Period, you will vest in a number of MSUs equal to the excess, if any, of (i) the product of (A) the number of MSUs subject to the Target MSUs, multiplied by (B) the lesser of (x) the Payout Percentage, and (y) 200%, over (ii) the sum of the First Year Vested MSUs and Second Year Vested MSUs. 
You may not vest in more than the Maximum MSUs under this award.  

    

	
		
	Determination of Vesting
	Provided your service as an Employee continues through the end of each Performance Period, you may vest in the MSUs as described herein. Note that you will not receive cash or Common Share consideration in respect of your vested MSUs until they are settled in accordance with the Settlement of MSUs section below.  
Except as otherwise provided herein, no MSUs will vest unless and until (i) your service as an Employee continues through the end of each applicable Performance Period, and (ii) vesting has been certified by the Committee. The determination of vesting during each Performance Period is determined following the completion of each applicable Performance Period. The MSUs subject to this award shall in all events terminate and cease to remain outstanding after March 15th of the year following the end of the Third Performance Period.

	Vesting Acceleration
	Except as otherwise provided herein, no additional MSUs shall vest after your service as an Employee terminates. 
If your service as an Employee terminates prior to the end of the Third Performance Period as a result of your death or Disability, up to a maximum of 100% of the Target MSUs under this award will vest on your last day of employment.  
If you are serving as an Employee on the effective date of a Change in Control that occurs on or prior to the end of the Third Performance Period or an Involuntary Termination occurs within 30 days prior to the effective date of such a Change in Control, up to a maximum of 100% of the Target MSUs under this award will vest immediately as of the effective date of such a Change in Control.
The occurrence of your death, Disability, Involuntary Termination within 30 days prior to the effective date of a Change in Control, or a Change in Control shall not result in the cumulative vesting of more than 100% of the Target MSUs under this award. To the extent that 100% or more of the Target MSUs have already vested at the time of your death, Disability, Involuntary Termination within 30 days prior to the effective date of a Change in Control, or a Change in Control, no additional Target MSUs will vest as a result of your death, Disability, Involuntary Termination within 30 days prior to the effective date of a Change in Control, or a Change in Control. 

	Forfeiture
	Except as otherwise provided herein or pursuant to a written agreement between you and the Company, if your service as an Employee terminates for any reason, your Non-Vested MSUs will be forfeited to the extent they have not vested before your termination date and do not vest as a result of the termination of your service. Accordingly, any such Non-Vested MSUs will be cancelled and forfeited immediately. You will receive no payment for MSUs that are cancelled. The Company determines when your service as an Employee terminates for this purpose.

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	Service-Based Vesting Conditions
	For purposes of this Agreement, your service as an Employee will be considered terminated as of the date you are no longer actively providing services to the Company or any Parent, Subsidiary, or Affiliate (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are providing services or the terms of your service agreement, if any), and unless otherwise expressly provided in this Agreement or determined by the Company, you right to vest in the MSUs under the Plan, if any, will terminate as of such date and will not be extended by any notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where you are providing services or the terms of your service agreement, if any. The Administrator shall have the exclusive discretion to determine when you are no longer actively providing services for purposes of your MSUs (including whether you may still be considered to be providing services while on a leave of absence).
Note that you will not receive cash or Common Share consideration in respect of your vested MSUs until they are settled in accordance with the Settlement of MSUs section below.

	Settlement of MSUs
	The MSUs will be settled on the first Permissible Trading Day that occurs on or after the day when the MSUs vest, but shall be settled no later than the March 15th of the calendar year following the calendar year in which the MSUs vest. At the time of settlement, you will receive one Common Share for each vested MSU. However, the Company retains the discretion to substitute an equivalent amount of cash for each underlying Common Share determined on the basis of the Fair Market Value of the Common Shares at the time an MSU vests.

	Section 409A
	This section applies only if the Company determines that you are a “specified employee” within the meaning of Section 409A(2)(B)(i) of the Code at the time of your “separation from service” as defined in Treas. Reg. §1.409A-1(h) and your MSUs are settled as a result of your “separation from service.” If this section applies, then any MSUs that otherwise would have been settled during the first six months following your separation from service will instead be settled during the seventh month following your separation from service, unless the Company determines that the settlement of those MSUs is exempt from Section 409A of the Code.

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	Responsibility for  
Taxes
	You acknowledge that, regardless of any action taken by the Company or, if different, the Parent, Subsidiary, or Affiliate to whom you provide services as an Employee (the “Employer”), the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you (“Tax-Related Items”) is and remains your responsibility and may exceed the amount actually withheld by the Company or the Employer. You further acknowledge that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the MSUs, including, but not limited to, the grant, vesting or settlement of the MSUs, the subsequent sale of the Common Shares acquired pursuant to such settlement and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the MSUs to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. Further, if you are subject to Tax-Related Items in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, as applicable, you acknowledge that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

	Withholding Taxes
	You must make arrangements satisfactory to the Company for the payment of any withholding taxes that are due as a result of the vesting or settlement of MSUs. At its discretion, the Company may satisfy applicable withholding obligations by any one or more of the following means (a) causing you to tender a cash payment or surrender other Common Shares that you previously acquired, (b) taking payment from the proceeds of the sale of Common Shares through a Company-approved broker, (c) withholding Common Shares that otherwise would be issued to you when the MSUs are settled, provided that no Common Shares are withheld with a value exceeding the minimum amount of tax required to be withheld by law, or (d) withholding cash from other compensation payable to you. If you are a Company officer subject to Section 16 of the Exchange Act, then your tax withholding obligations in connection with the MSUs will be satisfied pursuant to clause (c) of the preceding sentence only if approved in advance by the Committee. The fair market value of the Common Shares, determined as of the date when taxes otherwise would have been withheld in cash, will be applied to withholding taxes.

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	Non-U.S. Tax-Related Items
	If you are subject to taxes outside the United States, prior to any relevant taxable or tax withholding event, as applicable, you agree to make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items. 
In this regard, you authorize and direct the Company and a brokerage firm determined acceptable to the Company for such purpose to sell on your behalf a number of whole Common Shares from the shares that are issuable upon settlement of the MSUs as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy the Company’s or the Employer’s withholding obligation for Tax-Related Items. Such Common Shares will be sold on the date on which the withholding obligation for Tax-Related Items arises or as soon thereafter as practicable. You acknowledge and agree that the Company is under no obligation to arrange for such sale at any particular price, that you are responsible for all fees and other costs of sale, and that you are hereby agreeing to indemnify and hold the Company harmless from any losses, costs, damages or expenses relating to any such sale and that the proceeds of any such sale may not be sufficient to satisfy the Company’s or the Employer’s withholding obligation for Tax-Related Items. In the event that such proceeds are not sufficient, you agree to pay to the Company or the Employer, as applicable, as soon as practicable, including through additional payroll withholding, the amount of any such shortfall. To the extent the proceeds of such sale exceed the Company’s or the Employer’s withholding obligation for Tax-Related Items, the Company or the Employer, as applicable, agrees to pay such excess in cash to you through payroll as soon as practicable.

	 
	In the event that the Company determines, in its sole discretion, not to satisfy any withholding obligation for Tax-Related Items through the process described above, it will instead satisfy your obligation by one or a combination of the following: 
•    Withholding Common Shares that would otherwise be issued to you when the MSUs are settled equal in value to the Tax-Related Items. If the Company satisfies any withholding obligation for Tax-Related Items by withholding a number of Common Shares as described above, you are deemed to have been issued the full number of Common Shares subject to the MSUs.
•    Withholding the amount of any Tax-Related Items from your wages or other cash compensation paid to you by the Company.
•    Any other means approved by the Company.

	 
	Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding rates or other applicable withholding rates, including maximum applicable rates, in which case you will receive a refund of any over-withheld amount in cash and will have no entitlement to the common stock equivalent.

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	You agree to pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of your participation in the Plan that cannot be satisfied by the means previously described. If cash is to be distributed pursuant to the MSUs instead of shares, the Company will withhold from the cash delivered to you an amount necessary to satisfy any withholding obligation for Tax-Related Items.

	 
	The Company may refuse to issue or deliver Common Shares or the proceeds from the sale of such Common Shares if you fail to comply with your obligations in connection with the Tax-Related Items.

	Nature of MSUs
	No payment is required for the MSUs that you are receiving. Your MSUs are mere bookkeeping entries and represent the Company’s unfunded and unsecured promise to issue Common Shares or distribute cash to you on a future date. As a holder of MSUs, you have no rights other than the rights of a general creditor of the Company.

	No Voting or Dividends Rights
	Your MSUs carry neither voting rights nor rights to cash dividends. You have no rights as a stockholder of the Company unless and until your MSUs are settled by issuing Common Shares.

	Adjustments
	In the event any change is made to the Common Shares because of any recapitalization, stock dividend, stock split, combination of shares, exchange of shares, spin-off transaction or other change in corporate structure effected without the Company’s receipt of consideration, equitable adjustments will be made to the Target MSUs, Maximum MSUs, First Year Vested MSUs, Second Year Vested MSUs, Beginning Company Stock Price Average, and Ending Company Stock Price Average to prevent the dilution or enlargement of benefits under this award. 
In addition, the Administrator may adjust Payout Percentage and Company Stock Price Performance to reflect any extraordinary, unusual, or non-recurring items in order to prevent the dilution or enlargement of benefits under this Agreement. Such adjustments shall be final, binding, and conclusive on all interested parties.

	Retention Rights
	Your MSUs and this Agreement do not give you the right to be retained by the Company, a Parent, Subsidiary, or Affiliate in any capacity. The Employer, Company and its Parents, Subsidiaries, and Affiliates reserve the right to terminate your service as an Employee at any time, with or without cause, subject to applicable laws and any written employment agreements.

	MSUs Not Transferable
	Except as otherwise provided below, you may not sell, transfer, assign, pledge or otherwise dispose of any MSUs.

	Beneficiary Designation
	You may dispose of your MSUs in a written beneficiary designation. A beneficiary designation must be filed with the Company on the proper form. It will be recognized only if it has been received at the Company’s headquarters before your death. If you file no beneficiary designation or if none of your designated beneficiaries survives you, then your estate will receive the proceeds from any vested MSUs that you hold at the time of your death.

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	Nature of Grant
	In accepting the MSUs, you acknowledge, understand and agree that:
•    The Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;
•    The grant of the MSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of MSUs, or benefits in lieu of MSUs, even if MSUs have been granted in the past; 
•    All decisions with respect to future MSUs or other grants, if any, will be at the sole discretion of the Company; 
•    You are voluntarily participating in the Plan; 
•    The MSUs and the Common Shares subject to the MSUs are not intended to replace any pension rights or compensation;
•    The MSUs and the Common Shares subject to the MSUs, and the income and value of same, are not part of normal or expected compensation for purposes, including, without limitation, of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments; 
•    The future value of the underlying Common Shares is unknown, indeterminable and cannot be predicted with certainty; 
•    No claim or entitlement to compensation or damages shall arise from forfeiture of the MSUs resulting from the termination of your service as an Employee (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are providing services or the terms of your service agreement, if any), and in consideration of the grant of the MSUs to which you are otherwise not entitled, you irrevocably agree never to institute any claim against the Company, any Parent, Subsidiary, or Affiliate, including the Employer, waive your ability, if any, to bring any such claim, and release the Company, any Parent, Subsidiary, or Affiliate, including the Employer, from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, you shall be deemed irrevocably to have agreed not to pursue such claim and agree to execute any and all documents necessary to request dismissal or withdrawal of such claim;

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	•    Unless otherwise provided in the Plan or by the Company in its discretion, the MSUs and the benefits evidenced by this Agreement do not create any entitlement to have the MSUs or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the shares of the Company; and 
Neither the Employer, the Company nor any Parent, Subsidiary, or Affiliate shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the MSUs or of any amounts due to you pursuant to the settlement of the MSUs or the subsequent sale of any Common Shares acquired upon settlement.

	Data Privacy
	You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this Agreement and any other MSU grant materials by and among, as applicable, the Employer, the Company and any Parent, Subsidiary, or Affiliate for the exclusive purpose of implementing, administering and managing your participation in the Plan.

	 
	You understand that the Company and the Employer may hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all MSUs or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.

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	You understand that Data will be transferred to a stock plan service provider as may be selected by the Company (the “Online Service Provider”), which is assisting the Company with the implementation, administration and management of the Plan. You understand that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than your country. You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting your local human resources representative. You authorize the Company, Online Service Provider, and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing your participation in the Plan. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human resources representative. Further, you understand that you are providing the consents herein on a purely voluntary basis. If you do not consent, or if you later seek to revoke your consent, your service as an Employee and career with the Employer will not be adversely affected; the only adverse consequence of refusing or withdrawing your consent is that the Company would not be able to grant you MSUs or other equity awards or administer or maintain such awards. Therefore, you understand that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative.

	Restrictions on Resale
	You agree not to sell any Common Shares issued under the MSUs at a time when applicable laws, Company policies (including, without limitation, the Company’s Insider Trading Policy including any Addenda thereto) or an agreement between the Company and its underwriters prohibit a sale. This restriction will apply as long as your service as an Employee continues and for such period of time after the termination of your service as an Employee as the Company may specify.

	Regulatory Requirements
	Notwithstanding any other provision of this Agreement, the obligation of the Company to issue Common Shares hereunder shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be required. The Company reserves the right to restrict, in whole or in part, the delivery of Common Shares pursuant to this Agreement prior to the satisfaction of all legal requirements relating to the issuance of such Common Shares, to their registration, qualification or listing or to an exemption from registration, qualification or listing. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed necessary by the Company’s counsel to be necessary to the lawful issuance and sale of any Common Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Common Shares as to which such requisite authority will not have been obtained.

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	Other Conditions and Restrictions
	Any Common Shares issued hereunder shall be subject to such conditions and restrictions imposed either by applicable law or by Company policy, as adopted from time to time, designed to ensure compliance with applicable law or laws with which the Company determines in its sole discretion to comply including in order to maintain any statutory, regulatory or tax advantage, including any Company recoupment or clawback policy in effect from time to time.

	Notice
	Any notices provided for under this Agreement or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. Notwithstanding the foregoing, the Company may, in its sole discretion, decide to deliver any documents related to participation in the Plan and this award (including, without limitation, prospectuses required by the Securities and Exchange Commission) and all other documents that the Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements) by electronic means or to request your consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an online or electronic system established and maintained by the Company or another third party designated by the Company. If the Company posts these documents on such an online or electronic system, it will notify you by email.

	Governing Law
	The provisions of Section 2.7 of the Plan apply to this award.

	Language
	If you have received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version, including defined words therein, is different than the English version, the English version will control.

	Amendment
	This Agreement may be amended only by written consent of the Company and you, unless the amendment is not to the detriment of your rights under this Agreement.

	The Plan and Other Agreements
	The text of the Plan is incorporated into this Agreement by reference.  Additional provisions regarding definitions of capitalized terms used herein and not defined in this Agreement can be found in the Plan.  
The Plan, this Agreement and the Grant Notice constitute the entire understanding between you and the Company regarding the MSUs. Any prior agreements, commitments or negotiations concerning the MSUs are superseded.  However, if you and the Company have entered into a written agreement relating to the vesting of the MSUs, then such written agreement will govern the vesting of the MSUs.  

	Severability
	If one or more of the provisions of this Agreement are held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby and the invalid, illegal or unenforceable provision will be deemed null and void; however, to the extent permissible by law, any provisions that could be deemed null and void will first be construed, interpreted or revised retroactively to permit this Agreement to be construed so as to foster the intent of this Agreement and the Plan.

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	Imposition of Other Requirements
	The Company reserves the right to impose other requirements on your participation in this Agreement, on the MSUs and on any Common Shares acquired under this Agreement, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

	Waiver
	You acknowledge that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement.

	No Advice Regarding Grant
	The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in this Agreement, or your acquisition or sale of underlying Common Shares. You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in this Agreement before taking any action related to this Agreement.

	Insider Trading Restrictions/ Market Abuse Laws
	You acknowledge that, depending on the country in which you reside and/or are providing services to the Company, you may be subject to insider trading restrictions and/or market abuse laws, which may affect your ability to acquire or sell shares or rights to shares under this Agreement during such times as you are considered to have “inside information” regarding the Company (as defined by the laws in your country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. You acknowledge that it is your responsibility to comply with any applicable restrictions, and you are advised to speak to your personal advisor on this matter.

	Definitions
	“Beginning Company Stock Price Average” means the average closing price of a Common Share as reported on the primary market for the Common Shares during the three month period immediately prior to the First Performance Period.

	 
	“Beginning Nasdaq Index Stock Price Average” means the average closing price of the Nasdaq Composite Index during the three month period immediately prior to the First Performance Period.

	 
	“Cause” means any of the following:
•    Your unauthorized use or disclosure of the Company’s confidential information or trade secrets; 
•    Your breach of any agreement between you and the Company; 
•    Your material failure to comply with the Company’s written policies or rules; your conviction of, or your plea of “guilty” or “no contest” to, a felony under the laws of your local jurisdiction; 
•    Your gross negligence or willful misconduct;
•    Your continuing failure to perform assigned duties after receiving written notification of the failure from the Company; or 
Your failure to cooperate in good faith with a governmental or internal investigation of the Company or its directors, officers or employees, if the Company has requested your cooperation.

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	“Change in Control” means: 
•    any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the total voting power represented by the Company’s then-outstanding voting securities; 
•    the consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; 
•    the consummation of a merger or consolidation of the Company with or into any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) more than 50% of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or
•    individuals who are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board over a period of 12 months; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of this Agreement, be considered as a member of the Incumbent Board.

	 
	A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. In addition, if a Change in Control constitutes a payment event with respect to this Agreement and this Agreement provides for a deferral of compensation and is subject to Section 409A of the Code, then notwithstanding anything to the contrary in this Agreement, such transaction must also constitute a “change in control event” as defined in Treas. Reg. §1.409A-3(i)(5) to the extent required by Section 409A of the Code.

	 
	“Company Stock Price Performance” means the quotient obtained by dividing (i) the Ending Company Stock Price Average minus the Beginning Company Stock Price Average, by (ii) the Beginning Company Stock Price Average. 

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	“Disability” means your inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, as determined by the Committee on the basis of such medical evidence as the Committee deems warranted under the circumstances, including a requirement that you submit medical evidence or undergo a medical examination by a doctor selected by the Company as deemed necessary to make a determination hereunder.

	 
	“Ending Company Stock Price Average” means the average closing price of a Common Share as reported on the primary market for the Common Shares during the three month period immediately prior to the end date of a Performance Period applicable to a Tranche for which the Payout Percentage is being determined.

	 
	“Ending Nasdaq Index Stock Price Average” means the average closing price of the Nasdaq Composite Index during the three month period immediately prior to the end date of a Performance Period applicable to a Tranche for which the Payout Percentage is being determined.

	 
	“First Performance Period” means the period from January 1, 2016 to December 31, 2016.  

	 
	“First Tranche” means one-sixth of the Target MSUs.  

	 
	“Involuntary Termination” means either a (a) Termination Without Cause, or (b) Resignation for Good Reason.

	 
	“Nasdaq Index Performance” means the quotient obtained by dividing (i) the Ending Nasdaq Index Stock Price Average minus the Beginning Nasdaq Index Stock Price Average, by (ii) the Beginning Nasdaq Index Stock Price Average.

	 
	“Non-Vested MSUs” means any portion of the MSUs subject to this Agreement that has not yet become vested in accordance with the Vesting of MSUs section above.

	 
	“Payout Percentage” means 100%, (i) plus the percentage by which the Company Stock Price Performance exceeds the Nasdaq Index Performance, multiplied by two (2), if the Company Stock Price Performance exceeds the Nasdaq Index Performance determined as of the last day of the Performance Period; or (ii) minus the percentage by which the Nasdaq Index Performance exceeds the Company Stock Price Performance, multiplied by three (3), if the Nasdaq Index Performance exceeds the Company Stock Price Performance determined as of the last day of the Performance Period. The Payout Percentage shall be determined as of the last day of each Performance Period, and shall not be less than 0% or exceed 200%.

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	“Performance Period” means, with respect to each Tranche, (i) the Performance Period for the First Tranche is the First Performance Period; (ii) the Performance Period for the Second Tranche is the Second Performance Period; and (iii) the Performance Period for the Third Tranche is the Third Performance Period. Notwithstanding the foregoing, if a Change in Control occurs during a Performance Period, the effective date of such Change in Control will become the last day of such Performance Period, and the Performance Period will terminate immediately thereafter. 

	 
	“Permissible Trading Day” means a day that satisfies each of the following requirements:
•    The Nasdaq Global Stock Market is open for trading on that day;
•    You are permitted to sell Common Shares of the Company on that day without incurring liability under Section 16 of the Exchange Act;
•    Either (a) a day on which you are not in possession of material non-public information that would make it illegal for you to sell Common Shares on that day under Rule 10b-5 of the Securities and Exchange Commission, or (b) the day that you have specified to sell Common Shares to be issued under this Agreement pursuant to a trading plan approved by the Company’s Corporate Counsel & Chief Compliance Officer, under Rule 10b5-1 of the Securities and Exchange Commission;
•    Under the Company’s written Insider Trading Policy (and any Addenda thereto), you are permitted to sell Common Shares on that day; and
•    You are not prohibited from selling Common Shares on that day by a written agreement between you and the Company or a third party.

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	“Resignation for Good Reason” means your resignation within 180 days after one of the following conditions initially has come into existence without your express written consent:
•    A change in your position with the Company that materially reduces your level of authority or responsibility, relative to your authority or responsibilities as in effect immediately prior to such reduction, or the assignment to you of such reduced authority and responsibilities; 
•    A reduction in your base salary or target bonus by more than 10%; or
•    A relocation to a facility or a location more than 50 miles from your then-present work location that increases your one-way commute.
A Resignation for Good Reason will not be deemed to have occurred unless (a) you give the Company written notice of the condition within 90 days after the condition initially comes into existence, (b) the Company fails to remedy the condition within 30 days after receiving your written notice, and (c) you terminate employment within 180 days from the date the condition initially comes into existence.

	 
	“Second Performance Period” means the period from January 1, 2016 to December 31, 2017.  

	 
	“Second Tranche” means one-sixth of the Target MSUs.

	 
	“Termination Without Cause” means your involuntary discharge by the Company for reasons other than Cause, provided that you are willing and able to continue performing services within the meaning of Treas. Reg. §1.409A-1(n)(1).

	 
	“Third Performance Period” means the period from January 1, 2016 to December 31, 2018.  

	 
	“Third Tranche” means a number of MSUs up to the remaining number of Target MSUs that have not yet vested under this Agreement.

	 
	“Tranche” means any of the First Tranche, Second Tranche, or Third Tranche. 

BY YOUR ACCEPTANCE OF THIS GRANT, YOU AGREE TO ALL OF THE 
TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN.

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