Document:

Material contracts-Federated Annual Incentive Plan

 Exhibit 10.1 
  
 FEDERATED INVESTORS, INC. 
  
 ANNUAL INCENTIVE PLAN 
  
 Approved by Shareholders April 24, 2002 
 Amended as of May 13, 2002 
 Amended as of July 23, 2002 
 Amended as of February 5, 2004 
  
 ARTICLE I - GENERAL PROVISIONS 
  
 1.1    Purpose 
  
 The
purpose of the Federated Investors, Inc. Annual Incentive Plan (the “Plan”) is to advance the success of Federated Investors, Inc. and to thereby increase shareholder value by promoting the attainment of significant business objectives by
the Company and basing a portion of the annual compensation of selected officers on the attainment of such objectives. The Plan is designed to: (i) further align the interests of Participants with the interests of the Company’s shareholders,
(ii) reward Participants for creating shareholder value as measured by objectively determinable performance goals, and (iii) assist in the attraction and retention of employees vital to the Company’s long-term success. 
  
 1.2    Definitions 
  
 For the purpose of the Plan, the following terms shall have the meanings
indicated: 
  

	(a)	“Board” means the Board of Directors of the Company. 

  

	(b)	“Code” means the Internal Revenue Code of 1986, as amended, including any successor law thereto. 

  

	(c)	“Company,” means Federated Investors, Inc. and, solely for purposes of determining (i) eligibility for participation in the Plan, (ii) employment, and (iii) the
calculation of any performance goal, shall include any corporation, partnership, or other organization of which controls, directly or indirectly, not less than 50 percent of the total combined voting power of all classes of stock or other equity
interests or which is otherwise consolidated into the Company’s audited financial statements. For purposes of this Plan, the term “Company” shall also include any successor to Federated Investors, Inc. 

  

	(d)	“Committee” means the Compensation Committee of the Board (or any successor committee of the Board performing a similar function or the whole Board if the Board performs
such functions) or, with respect to any particular function under the Plan identified by the Committee or the Board, any subcommittee of the whole Committee established by the whole Committee or the Board in order to comply with the definition of
outside director under Section 162(m) of the Code. 

	(e)	“Common Stock” means the Company’s Class B Common Stock, no par value per share. 

  

	(f)	“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

  

	(g)	“Fair Market Value” means, on any date, the closing sale price of one share of Common Stock, as reported on the New York Stock Exchange or any national securities exchange
on which the Common Stock is then listed or on the NASDAQ Stock Market’s National Market (“NNM”) if the Common Stock is then quoted thereon, as published in the Wall Street Journal or another newspaper of general circulation, as of
such date or, if there were no sales reported as of such date, as of the last date preceding such date as of which a sale was reported. In the event that the Common Stock is not listed for trading on a national securities exchange or authorized for
quotation on NNM, Fair Market Value shall be the closing bid price as reported by the NASDAQ Stock Market or The NASDAQ SmallCap Market (if applicable), or if no such prices shall have been so reported for such date, on the next preceding date for
which such prices were so reported. In the event that the Common Stock is not listed on the New York Stock Exchange, a national securities exchange or NNM, and is not listed for quotation on The NASDAQ Stock Market or The NASDAQ SmallCap Market,
Fair Market Value shall be determined in good faith by the Committee in its sole discretion, and for this purpose the Committee shall be entitled to rely on the opinion of a qualified appraisal firm with respect to such Fair Market Value, but the
Committee shall in no event be obligated to obtain such an opinion in order to determine Fair Market Value. 

  

	(h)	“Participant” means any person who has satisfied the eligibility requirements set forth in Section 1.4 and to whom an award has been made under the Plan.

  

	(i)	“Operating Profits” means for the applicable Performance Period, the Company’s total revenue less distributions to minority interests and less total expenses
(excluding amortization of intangible assets, impairment losses and debt expenses, including, without limitation, interest and loan fees) as reflected in the Company’s audited or unaudited financial statements as filed with the Securities and
Exchange Commission. 

  

	(j)	“Performance Measures” means the criteria upon which awards will be based and, unless otherwise determined by the Committee, shall be any one or more of the following
measures: (i) revenues; (ii) operating income; (iii) net income; (iv) earnings per share; (v) operating expenses; (vi) assets under management; (vii) product sales or market share; (viii) the performance of the Common Stock; (ix) the investment
performance of Company products; (x) Operating Profits; (xi) identification of business opportunities and (xii) project completion. 

  

	(k)	“Performance Period” means, in relation to any award, the calendar year, or any other period, for which performance is being calculated, with each such period constituting
a separate Performance Period. 

  

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	(l)	“Performance Threshold” means, in relation to any Performance Period, the minimum level of performance that must be achieved with respect to a Performance Measure in order
for an award to become payable pursuant to this Plan. 

  

	(m)	“Plan Pool” means, in relation to each calendar year, the amount, if any, that is available for distribution pursuant to the Plan with respect to such year which amount
shall be a percentage of Operating Profits that shall not exceed 7.5% of the Operating Profits for such year. 

  

	(n)	“Target Award” means that percentage of the Plan Pool which the Committee sets as the maximum amount to be awarded to a Participant under the Plan for such Performance
Period. 

  
 1.3    Administration

  
 The Plan shall be administered by the Committee. Subject
to the terms of the Plan, the Committee shall, among other things, determine eligibility for participation in the Plan, make awards under the Plan, establish the terms and conditions of such awards (including the Performance Measure(s) to be
utilized) and determine whether the Performance Measures and Performance Thresholds for any award has been achieved. A majority of the Committee shall constitute a quorum, and the acts of a majority of the members present at any meeting at which a
quorum is present, or acts approved in writing by a majority of the Committee, shall be deemed the acts of the Committee. Subject to the provisions of the Plan and to directions by the Board, the Committee is authorized to interpret the Plan, to
adopt administrative rules, regulations, and guidelines for the Plan, and to impose such terms, conditions, and restrictions on awards as it deems appropriate. The Committee may, with respect to Participants who are not subject to Section 162(m) of
the Code, delegate such of its powers and authority under the Plan to the Company’s Chairman, President or Chief Executive Officer as it deems appropriate. In the event of such delegation, all references to the Committee in this Plan shall be
deemed references to such officers as it relates to those aspects of the Plan that have been delegated. 
  
 1.4    Eligibility and Participation 
  
 Participation in the Plan shall be limited to officers, who may also be members of the Board who are determined by the Committee to be eligible for
participation in the Plan and unless otherwise determined by the Committee, the Chairman of the Board, the Chief Executive Officer and any executive who is a member of the Board or is designated as a member of the Chief Executive Officer’s
senior staff shall be eligible to participate in the Plan. 
  
 ARTICLE II - AWARD TERMS 
  
 2.1    Granting of Awards 
  
 The Committee may, in its discretion, from time to time make awards to persons eligible for participation in the Plan pursuant to which the Participant will earn compensation in the event that the Company achieves the Performance Thresholds
established by the Committee. 
  

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 2.2    Establishment of Performance Thresholds 
  
 Each award shall be conditioned upon the Company’s achievement of one
or more Performance Thresholds with respect to the Performance Measure(s) established by the Committee no later than ninety (90) days after the beginning of the applicable Performance Period, provided that for a Performance Period of less than one
year, the Performance Measure must be established prior to the lapse of 25% of the Performance Period. The Committee, in its discretion, may establish Performance Thresholds for the Company as a whole or for only the business unit of the Company in
which a given Participant is involved, or a combination thereof. In addition to establishing a minimum performance level below which no compensation shall be payable pursuant to an award, the Committee, in its discretion, may create a performance
schedule under which an amount less than the Target Award may be paid so long as the Performance Threshold has been exceeded. The Committee may adjust the Performance Thresholds and measurements to reflect significant unforeseen events and other
factors; provided, however, that the Committee may not make any such adjustment with respect to any award to an individual who is then a “covered employee” as such term is defined in Regulation 1.162-27(c)(2) promulgated under Section
162(m) of the Code, or any successor provision (“Section 162(m)”), if such adjustment would cause compensation pursuant to such award to cease to be performance-based compensation under Section 162(m). 
  
 2.3    Other Award Terms 
  
 The Committee may, in its sole discretion, establish one or more additional
restrictions or conditions that must be satisfied as a condition precedent to the payment of all or a portion of any awards. Such additional restrictions or conditions need not be performance-based and may include, among other things, the receipt by
a Participant of a specified annual performance rating, the continued employment by the Participant and/or the achievement of specified performance goals by the Company, a business unit or the Participant. Furthermore, the Committee may, in its
discretion, reduce the amount of any award to a Participant if it concludes that such reduction is appropriate based upon (i) evaluations of such Participant’s performance, (ii) comparisons with compensation received by executive officers of
other companies in the Company’s industry, (iii) the Company’s financial results and conditions and (iv) such other business factors deemed relevant by the Committee. In addition, the Committee may establish a minimum Bonus Pool that must
be available as a condition precedent to any distribution pursuant to Section 2.5 hereof. 
  
 2.4    Certification of Achievement of Bonus Pool Performance Thresholds 
  
 The Committee shall, prior to any payment under the Plan, certify in writing the extent, if any, that the Performance Threshold(s) and any other material
terms have been achieved and the amount, if any, of the Bonus Pool. For purposes of this provision, and for so long as the Code permits, the approved minutes of the Committee meeting in which the certification is made shall be treated as written
certification. 
  

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 2.5    Distribution of Awards 
  
 Awards under the Plan shall be paid in cash as soon as practicable after financial statements for the Performance Period
have been prepared and the Committee has certified (i) the amount, if any, of the Bonus Pool, and (ii) that the Performance Threshold(s) has been achieved. Notwithstanding the foregoing, the Committee may, in it sole discretion: (i) elect to pay all
or a portion of the award in one or more equal installments over such period as may be established by the Committee; (ii) defer the payment of all or a portion of the award under such terms, conditions or restrictions as may be established or
imposed by the Committee; (iii) permit a Participant to elect to receive, in lieu of receiving cash, all or a portion of the total award value in the form of Common Stock, restricted Common Stock, non-qualified stock options to purchase Common
Stock, or such other stock-based award as maybe authorized by the Committee; and (iv) satisfy the payment of all or a portion of the total award value in the form of Common Stock, restricted Common Stock, non-qualified stock options to purchase
Common Stock, or such other stock-based award as may be authorized by the Committee. Any stock-based award granted as payment of an award shall be granted pursuant to the Federated Investors, Inc. Stock Incentive Plan or any successor thereto
;provided, however, that any non-qualified stock option to purchase Common Stock shall have an exercise price equal to the Fair Market Value of the Common Stock on the date of grant. The number of stock options to be granted shall be determined by
the Committee and shall be based upon the value of the options as determined under the Black-Scholes option-pricing model or such other option valuation model or calculation that the Committee, in its sole discretion, shall determine is appropriate.
The number of any other stock-based awards to be granted shall be determined by such methods or procedures as the Committee, in its sole discretion, shall determine is appropriate. 
  
 2.6    Termination of Employment 
  
 Unless otherwise determined by the Committee, a Participant must be actively employed by the Company on the date his or her
award (or any portion thereof) is to be paid (“the Payment Date”) in order to be entitled to payment of any award (or portion thereof). 
  
 2.7    Maximum Amount Available for Awards 
  
 The maximum amount payable pursuant to the Plan to the Company’s Chief Executive Officer for any Performance Period shall be 24% of the Plan Pool.
The maximum amount payable pursuant to the Plan to any other Participant shall be 19% of the Plan Pool. 
  
 ARTICLE III - OTHER PROVISIONS 
  
 3.1    Withholding Taxes 
  
 Whenever the Company is required to satisfy income or employment tax withholding requirements with respect to an award under the Plan , the Company shall have the right to withhold from the payment of any such award,
or require the Participant to remit to the Company prior to or contemporaneous with the payment of any such award, an amount sufficient to satisfy any applicable governmental withholding tax requirements related thereto. 
  

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 3.2    Adjustments 
  
 Awards may be adjusted by the Committee in the manner and to the extent it determines to be appropriate to reflect stock
dividends, stock splits, recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, reclassifications or other relevant changes in capitalization occurring after the date of the award; provided, however, that the Committee
may not make any such adjustment with respect to any award to an individual who is then a “covered employee” as such term is defined in Regulation 1.162-27(c)(2) promulgated under Section 162(m) of the Code, or any successor provision
(“Section 162(m)”), if such adjustment would cause compensation pursuant to such award to cease to be performance-based compensation under Section 162(m). 
  
 3.3    No Right to Employment 
  
 Nothing contained in the Plan or in any Award shall confer upon any Participant any right with respect to continued
employment with the Company or its subsidiaries, nor interfere in any way with the right of the Company or its subsidiaries to at any time reassign the Participant to a different job, change the compensation of the Participant or terminate the
Participant’s employment for any reason. 
  
 3.4    Nontransferability 
  
 A Participant’s rights under the Plan, including the right to amounts payable may not be assigned, pledged, or otherwise transferred except, in the event of a Participant’s death, to the Participant’s designated beneficiary
or, in the absence of such a designation, by will or by the laws of descent and distribution. 
  
 3.5    Unfunded Plan 
  
 Unless otherwise determined by the Committee, the Plan shall be unfunded and shall not create (or be construed to create) a trust or separate funds. With respect to any payment not yet made to a Participant, nothing
contained herein shall give any Participant any rights that are greater than those of a general creditor of the Company. 
  
 3.6    Foreign Jurisdictions 
  
 The Committee shall have the authority to adopt, amend, or terminate such arrangements, not inconsistent with the intent of the Plan, as it may deem
necessary or desirable to make available tax or other benefits of the laws of foreign countries in order to promote achievement of the purposes of the Plan. 
  

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 3.7    Other Compensation Plans 
  
 Nothing contained in this Plan shall prevent the Company from adopting other or additional compensation arrangements for
employees of the Company. 
  
 ARTICLE IV - AMENDMENT AND
TERMINATION 
  
 The Board of Directors may modify, amend, or
terminate the Plan at any time except that, no modification, amendment, or termination of the Plan shall adversely affect the rights of a Participant under an award previously made to such Participant without the consent of such Participant.

  
 ARTICLE V - EFFECTIVE DATE 
  
 The Plan shall become effective immediately upon the approval and adoption
thereof by Board, but is subject to the further approval and adoption by the holders of the Class A Common Stock of the Company. 
  

 - 7 -Material contracts-Federated Stock Incentive Plan

 Exhibit 10.2 
  
 FEDERATED INVESTORS, INC. 
  
 STOCK INCENTIVE PLAN 
 (Adopted as of February
20, 1998) 
 (Amended as of August 26,1998) 
 (Amended as of August 31, 1998) 
 (Amended as of January 26, 1999) 
 (Amended as of May 17, 1999) 
 (Amended as of July 20, 1999) 
 (Amended as of January 29, 2002) 
 (Approved by
Shareholders April 24, 2002) 
 (Amended as of February 5, 2004) 
 (Amended as of April 19, 2004) 
  
 1.    Purpose 
  
 The purpose of the Federated Investors, Inc. Stock Incentive Plan (the “Plan”) is to: 
  

	 	(a)	Facilitate the assumption by Federated Investors, Inc., as the surviving corporation of a merger with its parent corporation, Federated Investors, of certain stock incentive awards
previously made by Federated Investors to its employees; and 

  

	 	(b)	Continue to promote the long-term growth and performance of Federated Investors, Inc. and its affiliates and to attract and retain outstanding individuals by awarding directors,
executive officers and key employees stock options, stock appreciation rights, performance awards, restricted stock and/or other stock-based awards. 

  
 2.    Definitions 
  
 The following definitions are applicable to the Plan: 
  
 “Award” means the grant of Options, SARs, Performance Awards, Restricted Stock or other stock-based award
under the Plan. 
  
 “Board” means the Board of
Directors of the Company. 
  
 “Board Committee”
means the committee of the Board appointed in accordance with Section 4 to administer the Plan. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Commission” means the Securities and Exchange Commission. 

 “Common Stock” means the Class B Common Stock of the Company, no par value per share.

  
 “Company” means Federated Investors, Inc., a
Pennsylvania corporation, and its successors and assigns. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Fair Market Value” means, on any date, the closing sale price of one share of Common Stock, as reported on the New York Stock Exchange
or any national securities exchange on which the Common Stock is then listed or on The NASDAQ Stock Market’s National Market (“NNM”) if the Common Stock is then quoted thereon, as published in the Wall Street Journal or another
newspaper of general circulation, as of such date or, if there were no sales reported as of such date, as of the last date preceding such date as of which a sale was reported. In the event that the Common Stock is not listed for trading on a
national securities exchange or authorized for quotation on NNM, Fair Market Value shall be the closing bid price as reported by The NASDAQ Stock Market or The NASDAQ SmallCap Market (if applicable), or if no such prices shall have been so reported
for such date, on the next preceding date for which such prices were so reported. In the event that the Common Stock is not listed on the New York Stock Exchange, a national securities exchange or NNM, and is not listed for quotation on The NASDAQ
Stock Market or The NASDAQ SmallCap Market, Fair Market Value shall be determined in good faith by the Board Committee in its sole discretion, and for this purpose the Board Committee shall be entitled to rely on the opinion of a qualified appraisal
firm with respect to such Fair Market Value, but the Board Committee shall in no event be obligated to obtain such an opinion in order to determine Fair Market Value. 
  
 “Grant Date” means the date on which the grant of an Option under Section 5.1 hereof or a SAR under Section
6.1 hereof becomes effective pursuant to the terms of the Stock Option Agreement or Stock Appreciation Rights Agreement, as the case may be, relating thereto. 
  

“Incentive Stock Option” means an option to purchase shares of Common Stock designated as an incentive stock option and which complies
with Section 422 of the Code. 
  
 “Non-Statutory Stock
Option” means an option to purchase shares of Common Stock which is not an Incentive Stock Option. 
  
 “Offering” means the initial public offering of Class B Common Stock by United States and international underwriters. 
  
 “Option” means any option to purchase shares of Common Stock
granted under Sections 5.1 or 10.1 hereof. 
  
 “Option
Price” means the purchase price of each share of Common Stock under an Option. 
  

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 “Outside Director” means a member of the Board who is not an employee of the Company or
any Subsidiary. 
  
 “Participant” means any
salaried employee of the Company and its affiliates designated by the Board Committee to receive an Award under the Plan. 
  
 “Performance Award” means an Award of shares of Common Stock granted under Section 7. 
  
 “Performance Period” means the period of time established by
the Board Committee for achievement of certain objectives under Section 7.1 hereof. 
  
 “Restriction Period” means the period of time specified in a Performance Share Award Agreement or a Restricted Stock Award Agreement, as the case may be, between the Participant and the Company during
which the following conditions remain in effect: (i) certain restrictions on the sale or other disposition of shares of Common Stock awarded under the Plan, and (ii) subject to the terms of the applicable agreement, a requirement of continued
employment of the Participant in order to prevent forfeiture of the Award. 
  
 “Stock Appreciation Rights” or “SARs” means the right to receive a cash payment from the Company equal to the excess of the Fair Market Value of a stated number of shares of Common
Stock at the exercise date over a fixed price for such shares. 
  
 “Subsidiary” means any corporation, business trust or partnership (other than the Company) in an unbroken chain of corporations, business trusts or partnerships beginning with the Company if each of the corporations,
business trusts or partnerships (other than the last corporation, business trust or partnership in the chain) owns stock, beneficial interests or partnership interests possessing 50% or more of the total combined voting power of all classes of stock
in one of the other corporations, business trusts or partnerships in the chain. 
  
 “Ten Percent Holder” means a person who owns (within the meaning of Section 424(d) of the Code) more than ten percent of the voting power of all classes of stock of the Company or of its parent
corporation or Subsidiary. 
  
 3.    Shares Subject to Plan

  
 3.1 Shares Reserved under the Plan. Subject to
adjustment as provided in Section 3.2, the number of shares of Common Stock cumulatively available under the Plan shall equal 20,250,000 shares. All of such authorized shares of Common Stock shall be available for the grant of Incentive Stock
Options under the Plan. No Participant shall receive Awards in respect of more than 900,000 shares of Common Stock in any fiscal year of the Company. In addition, the aggregate Fair Market Value (determined on the Grant Date) of Common Stock with
respect to which Incentive Stock Options granted a Participant become exercisable for the first time in any single calendar year shall not exceed $100,000. Any Common Stock issued by the Company through the assumption or substitution of outstanding
grants from an acquired corporation or entity shall not reduce the shares 
  

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 available for grants under the Plan. Shares of Common Stock to be issued pursuant to the Plan may be authorized and
unissued shares, treasury shares, or any combination thereof. Subject to Section 6.2 hereof, if any shares of Common Stock subject to an Award hereunder are forfeited or any such Award otherwise terminates without the issuance of such shares of
Common Stock to a Participant, or if any shares of Common Stock are surrendered by a Participant in full or partial payment of the Option Price of an Option, such shares, to the extent of any such forfeiture, termination or surrender, shall again be
available for grant under the Plan. 
  
 3.2 Adjustments.
The aggregate number of shares of Common Stock which may be awarded under the Plan and the terms of outstanding Awards shall be adjusted by the Board Committee to reflect a change in the capitalization of the Company, including but not limited to, a
stock dividend or split, recapitalization, reorganization, merger, consolidation, combination, exchange of shares, spin-off, spin-out or other distribution of assets to shareholders; provided that the number and price of shares subject
to outstanding Options granted to Outside Directors pursuant to Section 10 hereof and the number of shares subject to future Options to be granted pursuant to Section 10 shall be subject to adjustment only as set forth in Section 10 hereof.

  
 3.3 Merger With Federated Investors. Notwithstanding
the foregoing, the Company’s merger with Federated Investors and assumption of its outstanding stock incentive awards will not result in any adjustment to the number of shares available under the Plan and will reduce the number of shares
available under this Plan accordingly. For purposes of this Plan, after the merger all such stock incentive awards shall be treated as Awards under this Plan, except that any Grant Date, Performance Period or Restricted Period shall relate back to
the date on which the awards were made by Federated Investors. 
  
 4.    Administration of Plan 
  
 4.1 Administration by the Board Committee. The Plan shall be administered as follows. 
  

	 	(a)	Prior to an Offering, the Plan shall be administered by either the full Board or by the Board Committee if one is established by the Board. Prior to an Offering, any member of the
Board may serve on the Board Committee. 

  

	 	(b)	After an Offering, the Plan shall be administered by the Board Committee, which shall consist of no fewer than two members of the Board who are (i) ”Non-Employee
Directors” for purposes of Rule 16b-3 of the Commission under the Exchange Act and (ii) to the extent required to ensure that awards under the Plan are exempt for purposes of Section 162(m) of the Code, “outside directors” for
purposes of Section 162(m); provided, however, that the Board Committee may delegate some or all of its authority and responsibility under the Plan with respect to Awards to Participants who are not subject to Section 16 of the
Exchange Act to the Chief Executive Officer of the Company. In the event 

  

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	 	    	that, after an Offering, the Board does not have two members who qualify as “Non-Employee Directors” for purposes of Rule 16b-3, the Plan shall be administered by the full
Board. 

  

	 	(c)	The Board Committee shall have authority to interpret the Plan, to establish, amend, and rescind any rules and regulations relating to the Plan, to prescribe the form of any
agreement or instrument executed in connection herewith, and to make all other determinations necessary or advisable for the administration of the Plan. All such interpretations, rules, regulations and determinations shall be conclusive and binding
on all persons and for all purposes. In addition, the Board Committee shall have authority, without amending the Plan, to grant Awards hereunder to Participants who are foreign nationals or employed outside the United States or both, on terms and
conditions different from those specified herein as may, in the sole judgment and discretion of the Board Committee, be necessary or desirable to further the purpose of the Plan. 

  

	 	(d)	Notwithstanding the foregoing, the Board Committee shall not have any discretion with respect to Options granted to Outside Directors pursuant to Section 10 hereof. In the event
that the Board does not establish a Board Committee for any reason, any reference in this Plan to the Board Committee shall be deemed to refer to the full Board. 

  
 4.2 Designation of Participants. Participants shall be selected, from time to time, by the Board Committee, from
those executive officers and key employees of the Company and its affiliates who, in the opinion of the Board Committee, have the capacity to contribute materially to the continued growth and successful performance of the Company. Outside Directors
shall be Participants only in accordance with Section 10. 
  
 5.    Stock Options 
  
 5.1
Grants. Options may be granted, from time to time, to such Participants as may be selected by the Board Committee on such terms, not inconsistent with this Plan, as the Board Committee shall determine. The Option Price shall be determined by
the Board Committee effective on the Grant Date; provided, however, that (i) in the case of Incentive Stock Options granted to a Participant who on the Grant Date is not a Ten Percent Holder, such price shall not be less than one
hundred percent (100%) of the Fair Market Value of a share of Common Stock on the Grant Date, (ii) in the case of an Incentive Stock Option granted to a Participant who on the Grant Date is a Ten Percent Holder, such price shall be not less than one
hundred and ten percent (110%) of the Fair Market Value of a share of Common Stock on the Grant Date, and (iii) in the case of Non-Statutory Stock Options, such price shall be not less than eighty-five percent (85%) of the Fair Market Value of a
share of Common Stock on the Grant Date. The number of shares of Common Stock subject to each Option granted to each Participant, the terms of each Option, and any other terms and conditions of an Option granted hereunder shall be determined by the
Board Committee, in its sole discretion, effective on the Grant Date; provided, however, that no Incentive Stock Option shall be exercisable any later than ten (10) years from the Grant Date. Each Option 
  

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 shall be evidenced by a Stock Option Agreement between the Participant and the Company which shall specify the type of
Option granted, the Option Price, the term of the Option, the number of shares of Common Stock to which the Option pertains, the conditions upon which the Option becomes exercisable and such other terms and conditions as the Board Committee shall
determine. 
  
 5.2 Payment of Option Price. No shares of
Common Stock shall be issued upon exercise of an Option until full payment of the Option Price therefor by the Participant. Upon exercise, the Option Price may be paid in cash, and, subject to approval by the Board Committee, in shares of Common
Stock having a Fair Market Value equal to the Option Price, or in any combination thereof, or in any other manner approved by the Board Committee. 
  
 5.3 Rights as Shareholders. Participants shall not have any of the rights of a shareholder with respect to any shares subject to an Option until
such shares have been issued upon the proper exercise of such Option. 
  
 5.4 Transferability of Options. Options granted under the Plan may not be sold, transferred, pledged, assigned, hypothecated or otherwise disposed of except by will or by the laws of descent and distribution;
provided, however, that, if authorized in the applicable Award agreement, a Participant may make one or more gifts of Options granted hereunder to members of the Participant’s immediate family
or trusts or partnerships for the benefit of such family members. All Options granted to a Participant under the Plan shall be exercisable during the lifetime of such Participant only by such Participant, his agent, guardian or attorney-in-fact;
provided, however, that all Options transferred in a manner consistent with the terms of an Award agreement may be exercised by the transferee. 
  
 5.5 Termination of Employment. If a Participant ceases to be an employee of either the Company or of any of its affiliates, the Options granted
hereunder shall be exercisable in accordance with the Stock Option Agreement between the Participant and the Company. 
  
 5.6 Designation of Incentive Stock Options. Except as otherwise expressly provided in the Plan, the Board Committee may, at the time of the grant
of an Option, designate such Option as an Incentive Stock Option under Section 422 of the Code. 
  
 5.7 Certain Incentive Stock Option Terms. In the case of any grant of an Incentive Stock Option, whenever possible, each provision in the Plan and
in any related agreement shall be interpreted in such a manner as to entitle the Option holder to the tax treatment afforded by Section 422 of the Code, and if any provision of this Plan or such agreement shall be held not to comply with
requirements necessary to entitle such Option to such tax treatment, then (i) such provision shall be deemed to have contained from the outset such language as shall be necessary to entitle the Option to the tax treatment afforded under Section 422
of the Code, and (ii) all other provisions of this Plan and the agreement relating to such Option shall remain in full force and effect. If any agreement covering an Option designated by the Board Committee to be an Incentive Stock Option under this
Plan shall not explicitly include any terms required to entitle such Incentive 
  

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 Stock Option to the tax treatment afforded by Section 422 of the Code, all such terms shall be deemed implicit in the
designation of such Option and the Option shall be deemed to have been granted subject to all such terms. 
  
 6.    Stock Appreciation Rights 
  
 6.1 Grants. Stock Appreciation Rights may be granted, from time to time, to such salaried employees of the Company and its affiliates as may be selected by the Board Committee. SARs may be granted at the
discretion of the Board Committee either (i) in connection with an Option or (ii) independent of an Option. The price from which appreciation shall be computed shall be established by the Board Committee at the Grant Date; provided,
however, that such price shall not be less than one-hundred percent (100%) of the Fair Market Value of the number of shares of Common Stock subject of the grant on the Grant Date. In the event the SAR is granted in connection with an
Option, the fixed price from which appreciation shall be computed shall be the Option Price. Each grant of a SAR shall be evidenced by a Stock Appreciation Rights Agreement between the Participant and the Company which shall specify the type of SAR
granted, the number of SARs, the conditions upon which the SARs vest and such other terms and conditions as the Board Committee shall determine. 
  
 6.2 Exercise of SARs. SARs may be exercised upon such terms and conditions as the Board Committee shall determine; provided,
however, that SARs granted in connection with Options may be exercised only to the extent the related Options are then exercisable. Notwithstanding Section 3.1 hereof, upon exercise of a SAR granted in connection with an Option as to
all or some of the shares subject of such Award, the related Option shall be automatically canceled to the extent of the number of shares subject of the exercise, and such shares shall no longer be available for grant hereunder. Conversely, if the
related Option is exercised as to some or all of the shares subject of such Award, the related SAR shall automatically be canceled to the extent of the number of shares of the exercise, and such shares shall no longer be available for grant
hereunder. 
  
 6.3 Payment of Exercise. Upon exercise of a
SAR, the holder shall be paid in cash the excess of the Fair Market Value of the number of shares subject of the exercise over the fixed price, which in the case of a SAR granted in connection with an Option shall be the Option Price for such,
shares. 
  
 6.4 Rights of Shareholders. Participants shall
not have any of the rights of a shareholder with respect to any Options granted in connection with a SAR until shares have been issued upon the proper exercise of an Option. 
  
 6.5 Transferability of SARs. SARs granted under the Plan may not be sold, transferred, pledged, assigned,
hypothecated or otherwise disposed of except by will or by the laws of descent and distribution. All SARs granted to a Participant under the Plan shall be exercisable during the lifetime of such Participant only by such Participant, his agent,
guardian, or attorney-in-fact. 
  

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 6.6 Termination of Employment. If a Participant ceases to be an employee of either the Company or
of any of its affiliates, SARs granted hereunder shall be exercisable in accordance with the Stock Appreciation Rights Agreement between the Participant and the Company. 
  
 7.    Performance Awards 
  
 7.1 Awards. Awards of shares of Common Stock may be made, from time to time, to such Participants as may be selected
by the Board Committee. Such shares shall be delivered to the Participant only upon (i) achievement of such corporate, sector, division, individual or any other objectives or criteria during the Performance Period as shall be established by the
Board Committee and (ii) the expiration of the Restriction Period. Except as provided in the Performance Share Award Agreement between the Participant and the Company, shares subject to such Awards under this Section 7.1 shall be released to the
Participant only after the expiration of the relevant Restriction Period. Each Award under this Section 7.1 shall be evidenced by a Performance Share Award Agreement between the Participant and the Company which shall specify the applicable
performance objectives, the Performance Period, the Restriction Period, any forfeiture conditions and such other terms and conditions as the Board Committee shall determine. 
  
 7.2 Stock Certificates. Upon an Award of shares of Common Stock under Section 7.1 of the Plan, the Company shall
issue a certificate registered in the name of the Participant bearing the following legend and any other legend required by any federal or state securities laws or by the Delaware Business Trust Act: 
  
 “The sale or other transfer of the shares of stock
represented by this certificate is subject to certain restrictions set forth in the Federated Investors, Inc. Stock Incentive Plan, administrative rules adopted pursuant to such Plan and a Performance Share Award Agreement between the registered
owner and Federated Investors, Inc. A copy of the Plan, such rules and such Agreement may be obtained from the Secretary of Federated Investors, Inc.” 
  
 Unless otherwise provided in the Performance Share Award Agreement between the Participant and the Company, such certificates shall be retained by the Company until the
expiration of the Restriction Period. Upon the expiration of the Restriction Period, the Company shall (i) cause the removal of the legend from the certificates for such shares as to which a Participant is entitled in accordance with the Performance
Share Award Agreement between the Participant and the Company and (ii) release such shares to the custody of the Participant. 
  
 7.3 Rights as Shareholders. Subject to the provisions of the Performance Share Award Agreement between the Participant and the Company, during the
Performance Period, dividends and other distributions paid with respect to all shares awarded thereto under Section 7.1 hereof shall, in the discretion of the Board Committee, either be paid to Participants or held in escrow by the Company and paid
to Participants only at such time 
  

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 and to such extent as the related Performance Award is earned. During the period between the completion of the
Performance Period and the expiration of the Restriction Period, Participants shall be entitled to receive dividends and other distributions only as to the number of shares determined in accordance with the Performance Share Award Agreement between
the Participant and the Company. 
  
 7.4 Transferability of
Shares. Certificates evidencing the shares of Common Stock awarded under the Plan shall not be sold, exchanged, assigned, transferred, pledged, hypothecated or otherwise disposed of until the expiration of the Restriction Period. 
  
 7.5 Termination of Employment. If a Participant ceases to be an
employee of either the Company or of one of its affiliates, the number of shares subject of the Award, if any, to which the Participant shall be entitled shall be determined in accordance with the Performance Share Award Agreement between the
Participant and the Company. 
  
 7.6 Transfer of
Employment. If a Participant transfers employment from one business unit of the Company or any of its affiliates to another business unit during a Performance Period, such Participant shall be eligible to receive such number of shares of Common
Stock as the Board Committee may determine based upon such factors as the Board Committee in its sole discretion may deem appropriate. 
  
 8.    Restricted Stock Awards 
  
 8.1 Awards. Awards of shares of Common Stock subject to such restrictions as to vesting and otherwise as the Board Committee shall determine, may
be made, from time to time, to Participants as may be selected by the Board Committee. The Board Committee may in its sole discretion at the time of the Award or at any time thereafter provide for the early vesting of such Award prior to the
expiration of the Restriction Period. Each Award under this Section 8.1 shall be evidenced by a Restricted Stock Award Agreement between the Participant and the Company which shall specify the vesting schedule, any rights of acceleration, any
forfeiture conditions, and such other terms and conditions as the Board Committee shall determine. 
  
 8.2 Stock Certificates. Upon an Award of shares of Common Stock under Section 8.1 of the Plan, the Company shall issue a certificate registered in
the name of the Participant bearing the following legend and any other legend required by any federal or state securities laws or by the Delaware Business Trust Act. 
  
 “The sale or other transfer of the shares of stock represented by this certificate is subject to certain restrictions
set forth in the Federated Investors, Inc. Stock Incentive Plan, administrative rules adopted pursuant to such Plan and a Restricted Stock Award Agreement between the registered owner and Federated Investors, Inc. A copy of the Plan, such rules and
such agreement may be obtained form the Secretary of Federated Investors, Inc.” 
  

 - 9 - 

 Unless otherwise provided in the Restricted Stock Award Agreement between the Participant and the Company, such
certificates shall be retained in custody by the Company until the expiration of the Restriction Period. Upon the expiration of the Restriction Period, the Company shall (i) cause the removal of the legend from the certificates for such shares as to
which a Participant is entitled in accordance with the Restricted Stock Award Agreement between the Participant and the Company and (ii) release such shares to the custody of the Participant. 
  
 8.3 Rights as Shareholders. During the Restriction Period,
Participants shall be entitled to receive dividends and other distributions paid with respect to all shares awarded thereto under Section 8.1 hereof. 
  
 8.4 Transferability of Shares. Certificates evidencing the shares of Common Stock awarded under the Plan shall not be sold, exchanged, assigned,
transferred, pledged, hypothecated or otherwise disposed of until the expiration of the Restriction Period. 
  
 8.5 Termination of Employment. If a Participant ceases to be an employee of either the Company or of any of its affiliates, the number of shares
subject of the Award, if any, to which the Participant shall be entitled shall be determined in accordance with the Restricted Stock Award Agreement between the Participant and the Company. All remaining shares as to which restrictions apply at the
date of termination of employment shall be forfeited subject to such exceptions, if any, authorized by the Board Committee. 
  
 9.    Other Stock-Based Awards 
  
 Awards of shares of Common Stock and other awards that are valued in whole or in part by reference to, or are otherwise based on, Common Stock, may be
made, from time to time, to salaried employees of the Company and its affiliates as may be selected by the Board Committee. Such Awards may be made alone or in addition to or in connection with any other Award hereunder. The Board Committee may in
its sole discretion determine the terms and conditions, if any, of any such Award. Each such Award shall be evidenced by an agreement between the Participant and the Company which shall specify the number of shares of Common Stock subject of the
Award, any consideration therefor, any vesting or performance requirements and such other terms and conditions as the Board Committee shall determine. 
  
 10.    Outside Directors’ Options 
  
 10.1 Initial Grants. Effective on the dates set forth below, each category of Outside Director of the Company described below shall be
automatically granted an Option to purchase 7,500 shares of Common Stock: 
  

	 	(i)	for any Outside Director serving on the Board at the effective date of the Offering, the effective date of the Offering; 

  

 - 10 - 

	 	(ii)	for any Outside Director elected by the shareholders of the Company subsequent to the effective time of the Offering, the date of such Outside Director’s initial election to
the Board; and 

  

	 	(iii)	for any Outside Director appointed by the Board subsequent to the effective time of the Offering, the date such Outside Director’s appointment to the Board becomes effective.

  
 All such Options shall be Non-Statutory Stock Options. The
Option Price for all Options granted pursuant to this Section 10 shall be the greater of (a) $12.67 per share or (b) one hundred percent (100%) of the Fair Market Value per share of Common Stock on the date of grant. 
  
 10.2 Annual Grants. Effective on the date of each Annual Meeting of
the shareholders of the Company that occurs after the Offering, each Outside Director who will be continuing as a director after such Annual Meeting, but not including any Outside Director who is first elected at such Annual Meeting, shall
automatically be granted an Option to purchase 3,000 shares of Common Stock. All such Options shall be Non-Statutory Stock Options. The Option price shall be one-hundred percent (100%) of the Fair Market Value per share of Common Stock on the date
of the grant. 
  
 10.3 Exercise of Options. Three thousand
(3,000) of the initial Options granted pursuant to Section 10.1 shall vest in an Outside Director on the first anniversary of such grant and two thousand, two hundred and fifty (2,250) of the initial Options shall vest on each subsequent anniversary
of such grant until such Options are fully vested at the end of three years. All Options granted pursuant to Section 10.2 shall vest immediately. All vested Options shall be immediately exercisable and may be exercised by the Outside Director for a
period of ten (10) years from the date of grant; provided, however, that in the event of the death or disability of an Outside Director, the Options shall be exercisable only within the twelve (12) months next succeeding the date of death or
disability and only if and to the extent that the Outside Director was entitled to exercise the Options at the date of the Outside Director’s death or disability, as the case may be. If an Outside Director’s service with the Corporation
terminates due to retirement all vested Options may be exercised by the Outside Director for a period of ten (10) years from the date of grant; provided, however, that in the event of the death of a retired Outside Director, the Options shall be
exercisable only within the twelve (12) months next succeeding the date of death. If an Outside Director’s service with the Company terminates for any reason other than retirement, death or disability, the Options shall be exercisable for
thirty (30) days after the date of such termination and only if and to the extent the Outside director was entitled to exercise the Options at the date of such termination. In the case of death, such Options shall be exercisable only by the executor
or administrator of the Outside Director’s estate or by the person or persons to whom the Outside Director’s rights under the Options shall pass by the Outside Director’s will or the laws of descent and distribution. Notwithstanding
the foregoing, in no event shall any Option be exercisable more than ten (10) years after the date of grant. 
  

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 10.4 Payment of Option price. An Option granted to an Outside Director shall be exercisable only
upon payment to the Company of the Option price. Payment for the shares shall be in United States dollars, payable in cash or by check. 
  
 10.5 Adjustments. In case there shall be a merger, reorganization, consolidation, recapitalization, stock dividend or other change in corporate
structure such that the shares of Common Stock are changed into or become exchangeable for a larger or smaller number of shares, thereafter the number of shares subject to outstanding Options granted to Outside Directors and the number of shares
subject to Options to be granted to Outside Directors pursuant to the provisions of this Section 10 shall be increased or decreased, as the case may be, in direct proportion to the increase or decrease in the number of shares of Common Stock by
reason of such change in corporate structure, provided that the number of shares shall always be a whole number, and the purchase price per share of any outstanding Options shall, in the case of an increase in the number of shares, be
proportionately reduced, and in the case of a decrease in the number of shares, shall be proportionately increased. 
  
 11.    Amendment or Termination of Plan 
  
 The Board may amend, suspend or terminate the Plan or any part thereof from time to time, provided that no change may be made which would impair the
rights of a Participant to whom shares of Common Stock have theretofore been awarded without the consent of said Participant. 
  
 12.    Miscellaneous 
  
 12.1 Rights of Employees. Nothing in the Plan shall interfere with or limit in any way the right of the Company or any affiliate to terminate any
Participant’s employment at any time, nor confer upon any Participant any right to continued employment with the Company or any affiliate. 
  
 12.2 Tax Withholding. The Company shall have the authority to withhold, or to require a Participant to remit to the Company, prior to issuance or
delivery of any shares or cash hereunder, an amount sufficient to satisfy federal, state and a local tax withholding requirements associated with any Award. In addition, the Company may, in its sole discretion, permit a Participant to satisfy any
tax withholding requirements, in whole or in part, by (i) delivering to the Company shares of Common Stock held by such Participant having a Fair Market Value equal to the amount of the tax; (ii) directing the Company to retain shares of Common
stock otherwise issuable to the Participant under the Plan; or (iii) any other method approved by the Board Committee. 
  
 12.3 Status of Awards. Awards hereunder shall not be deemed compensation for purposes of computing benefits under any retirement plan of the
Company or affiliate and shall not affect any benefits under any other benefit plan now or hereafter in effect under which the availability or amount of benefits is related to the level of compensation. 
  
 12.4 Waiver of Restrictions. The Board Committee may, in its sole
discretion, based on such factors as the Board Committee may deem appropriate, waive in whole or in part, any remaining restrictions or vesting requirements in connection with any Award hereunder. 
  

 - 12 - 

 12.5 Adjustment of Awards. Subject to Section 11, the Board Committee shall be authorized to make
adjustments in performance award criteria or in the terms and conditions of other Awards (except Options granted pursuant to Section 10 hereof) in recognition of unusual or nonrecurring events affecting the Company or its financial statements or
changes in applicable laws, regulations or accounting principles; provided however, that no such adjustment shall impair the rights of any Participant without his consent. The Board Committee may also make Awards hereunder in
replacement of, or as alternatives to, Awards previously granted to Participants, including without limitation, previously granted Options having higher Option Prices and grants or rights under any other plan of the Company or of any acquired
entity. The Board Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry it into effect. In the event the Company shall assume
outstanding employee benefit awards or the right or obligation to make future such awards in connection with the acquisition of another corporation or business entity, the Board Committee may, in its discretion, make such adjustments in the terms of
Awards under the Plan as it shall deem appropriate. Notwithstanding the above, only the full Board (and not the Board Committee) shall have the right to make any adjustments in the terms or conditions of Options granted pursuant to Section 10.

  
 12.6 Consideration for Awards. Except as otherwise
required in any applicable agreement or by the terms of the Plan, Participants under the Plan shall not be required to make any payment or provide consideration for an Award other than the rendering of services. 
  
 12.7 Special Forfeiture Rule. Notwithstanding any other provision of
this Plan to the contrary, the Board Committee shall be authorized to impose additional forfeiture restrictions with respect to Awards granted under the Plan, other than Awards pursuant to Section 10 hereof, including, without limitation, provisions
for forfeiture in the event the Participant shall engage in competition with the Company or in any other circumstance the Board Committee may determine. 
  
 12.8 Effective Date and Term of Plan. The Plan shall be effective as of the date it is approved by the Board, subject to the approval thereof by
the shareholders of the Company. Unless terminated under the provisions of Section 11 hereof, the Plan shall continue in effect indefinitely; provided, however, that no Incentive Stock Options shall be granted after the tenth
anniversary of the effective date of the Plan. 
  
 12.9
Compliance with Section 162(m). It is the Company’s intent that compensation payable pursuant to Awards (other than Awards of Restricted Stock which vest based solely on continued employment) to “covered employees” as such term
is defined in Regulation 1.162-27(c)(2) promulgated under Section 162(m) of the Code, or any successor provision (“Section 162(m)”), qualify as “performance-based compensation” as defined in Regulation 1.162-27(e) under Section
162(m). If any provision of this Plan or an Award is later found to make compensation intended to be 
  

 - 13 - 

 performance-based compensation ineligible for such treatment, the provision shall be deemed null and void, unless
otherwise determined by a committee of the Board comprised solely of “outside directors” as such term is defined under Regulation 1.162-27(e)(3) under Section 162(m). 
  
 12.10 Transferability of Awards. Notwithstanding anything to the contrary contained in this Plan, any Award may be
transferred to a “family member” as defined in and pursuant to the terms and conditions set forth in Section A.1.a.5 of the General Instructions to Form S-8 promulgated under the Securities Act of 1933, as amended, as such provision may be
amended from time to time, on such terms and conditions as may be determined by the Committee. 
  
 Stock numbers adjusted for stock splits as of April 19, 2004 
  

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