Document:

ex10_61.htm

    Exhibit
10.61

    Adobe
Systems Incorporated

    Amended
and Restated 2003 Equity Incentive Plan

     

    Restricted
Stock Unit Grant Notice

     

    (Director)

     

    Adobe
Systems Incorporated (the “Company”),
pursuant to its Amended and Restated 2003 Equity Incentive Plan (the “Plan”),
hereby awards to Participant the Restricted Stock Unit Award (the “Award”)
covering the number of Restricted Stock Units set forth below.  This
Award is subject to all of the terms and conditions as set forth herein and in
the Restricted Stock Unit Award Agreement (the “Award
Agreement”) and the Plan, each of which are attached hereto and
incorporated herein in their entirety.  Unless otherwise defined
herein, capitalized terms shall have the meanings set forth in the Plan or the
Program, as applicable.

     

    
      	
              Participant:

            	
              %%FIRST_NAME%-%
      %%LAST_NAME%-%

            	 

    

    
      	
              Date
      of Grant:

            	
              %%OPTION_DATE,’Month
      DD, YYYY’%-%

            	 

    

    
      	
              Vesting
      Commencement Date:

            	
              %%VEST_BASE_DATE,’Month
      DD, YYYY%-%

            	 

    

    
      	
              Number
      of Restricted Stock Units:

            	
              %%TOTAL_SHARES_GRANTED%-%

            	 

    

    
      	
              Payment
      for Stock:

            	
              Participant’s services
      to the Company (to the greatest extent permitted by applicable
      law)

            	 

    

    

     

    Vesting
Schedule:  This Award shall vest as to twenty-five percent of
the Restricted Stock Units on the first (1st)
anniversary of the Vesting Commencement Date and the remaining seventy-five
percent of the Restricted Stock Units shall vest annually on each anniversary of
the Vesting Commencement Date thereafter, so that the Restricted Stock Units are
fully vested on the fourth anniversary of  the Vesting Commencement
Date; provided,
however, that the Participant’s Service has not terminated prior to each
such vesting date.

     

    In the
event of a Change of Control, any unvested portions of this Award shall become
immediately vested in full as of immediately prior to the effective date of the
Change of Control, subject to the consummation of the Change of
Control.

     

    Delivery
Schedule:  Except as otherwise provided in Section 5 of the
Award Agreement, the Company shall deliver on each vesting date one share of
Stock for each Restricted Stock Unit that vests on such date, less any shares to
be withheld pursuant to Section 11 of the Award Agreement.

     

    Additional
Terms/Acknowledgements:  The undersigned Participant
acknowledges receipt of, and understands and agrees to, this Grant Notice, the
Award Agreement, and the Plan.  Participant further acknowledges that
as of the Date of Grant, this Grant Notice, the Award Agreement, and the Plan
set forth the entire understanding between Participant and the Company regarding
the Award and supersede all prior oral and written agreements on that
subject.

    

    
      	
              ADOBE
      SYSTEMS INCORPORATED:

               

               

            
	
              By:_______________

            
	
              Shantanu
      Narayen

            
	
              Title:Chief
      Executive Officer

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Adobe
Systems Incorporated

    Amended
and Restated 2003 Equity Incentive Plan

    Restricted
Stock Unit Award Agreement

    

    (Director)

     

    Pursuant
to the Grant Notice (“Grant
Notice”) and this Award Agreement (“Award
Agreement”), Adobe Systems Incorporated (the “Company”)
has awarded you, pursuant to its Amended and Restated 2003 Equity Incentive Plan
(the “Plan”), a
Restricted Stock Unit Award for that number of Restricted Stock Units as
indicated in the Grant Notice. Unless otherwise defined herein or the Grant
Notice, capitalized terms shall have the meanings set forth in the Plan. Subject
to adjustment and the terms and conditions as provided herein and in the Plan,
each Restricted Stock Unit shall represent the right to receive one (1) share of
Stock.

    

    The
details of your Award, in addition to those set forth in the Grant Notice, are
as follows.

    

    
      	
              1.  

            	
              Number
      of Stock Units and Shares of Stock.

            

    

    

    
      	
              (a)  

            	
              The
      number of Restricted Stock Units subject to your Award and the number of
      shares of Stock deliverable with respect to such Restricted Stock Units
      will be adjusted from time to time for capitalization adjustments as
      described in the Plan. You shall receive no benefit or adjustment to your
      Award with respect to any cash dividend or other distribution that does
      not result in a capitalization adjustment pursuant to the Plan; provided, however, that
      this sentence shall not apply with respect to any shares of Stock that are
      subject to your Award after such shares have been delivered to
      you.

            

    

    

    
      	
              (b)  

            	
              Any
      additional Restricted Stock Units, shares of Stock, cash or other property
      that become subject to the Award pursuant to this Section 1 shall be
      subject, in a manner determined by the Board, to the same forfeiture
      restrictions, restrictions on transferability, and time and manner of
      delivery as applicable to the other Restricted Stock Units and shares of
      Stock covered by your Award.

            

    

    

    
      	
              (c)  

            	
              Notwithstanding
      the provisions of this Section 1, no fractional Restricted Stock Units or
      rights for fractional shares of Stock shall be created pursuant to this
      Section 1. The Board shall, in its discretion, determine an equivalent
      benefit for any fractional Restricted Stock Units or fractional shares
      that might be created by the adjustments referred to in this Section
      1.

            

    

    

    
      	
              2.  

            	
              Payment
      by You. Except as otherwise provided in the Grant Notice, this
      Award has been granted in consideration of your services to the Company
      (or any other Participating Company, as applicable). Subject to Section 11
      below, and except as otherwise provided in the Grant Notice, you will not
      be required to make any payment to the Company (other than your past and
      future services with the Company (or any other Participating Company, as
      applicable)) with respect to your receipt of the Award, the vesting of the
      Restricted Stock Units, or the delivery of the shares of Stock underlying
      the Restricted Stock Units.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
              3.  

            	
              Vesting.

            

    

    

    
      	
              (a)  

            	
              The
      Restricted Stock Units shall vest, if at all, as provided in the Vesting
      Schedule set forth in your Grant Notice and the Plan, provided that
      vesting shall cease upon the termination of your
  Service.

            

    

    

    
      	
              (b)  

            	
              The
      determination that your Service was terminated shall be made by the
      Company (or any Participating Company, as applicable) in its sole
      discretion. Any such determination by the Company (or any Participating
      Company, as applicable) for the purposes of this Award Agreement shall
      have no effect upon any determination of the rights or obligations of you
      or the Company (or any Participating Company, as applicable) for any other
      purpose.

            

    

    

    
      	
              4.  

            	
              Distribution
      of Shares of Stock. Subject to the provisions of this Award
      Agreement (including Sections 5 and 11 below) and the Plan, the Company
      shall deliver to you on the applicable vesting date one (1) share of Stock
      for each Restricted Stock Unit that vests on such
  date.

            

    

    

    
      	
              5.  

            	
              Deferral
      Election.
      If permitted by the Company to do so, you may elect to defer
      receipt of the shares of Stock that would otherwise be issued pursuant to
      the vesting of your Award in accordance with the terms and conditions,
      including the applicable eligibility requirements, of the Company's
      Deferred Compensation Plan. The Board (or an appropriate committee
      thereof) will, in its sole discretion, establish the rules and procedures
      for such deferrals.

            

    

    

    
      	
              6.  

            	
              Securities
      Law Compliance. The grant of your Award and the issuance of any
      shares of Stock thereunder shall be subject to compliance with all
      applicable requirements of federal, state or foreign law with respect to
      such securities. You may not be issued any shares of Stock if such
      issuance would constitute a violation of any applicable federal, state or
      foreign securities laws or other law or regulations or the requirements of
      any stock exchange or market system upon which the Stock may then be
      listed. In addition, you may not be issued any shares of Stock unless (i)
      a registration statement under the Securities Act shall at the time of
      issuance be in effect with respect to the shares or (ii) in the opinion of
      legal counsel to the Company, the shares may be issued in accordance with
      the terms of an applicable exemption from the registration requirements of
      the Securities Act. YOU ARE CAUTIONED THAT THE SHARES MAY NOT BE ISSUED
      UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. The inability of the
      Company to obtain from any regulatory body having jurisdiction the
      authority, if any, deemed by the Company’s legal counsel to be necessary
      to the lawful issuance and sale of any shares of Stock shall relieve the
      Company of any liability in respect of the failure to issue or sell such
      shares as to which such requisite authority shall not have been obtained.
      As a condition to the issuance of any shares of Stock pursuant to this
      Award, the Company may require you to satisfy any qualifications that may
      be necessary or appropriate, to evidence compliance with any applicable
      law or regulation and to make any representation or warranty with respect
      thereto as may be requested by the
Company.

            

    

    

    
      	
              7.  

            	
              Restrictive
      Legends.
      The shares of Stock issued pursuant to this Award shall be endorsed
      with appropriate legends, if any, determined by the
    Company.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
              8.  

            	
              Transfer
      Restrictions. Prior to the time
      that shares of Stock have been delivered to you pursuant to this Award,
      you may not transfer, pledge, sell or otherwise dispose of such shares.
      For example, you may not use shares that may be issued in respect of your
      Restricted Stock Units as security for a loan, nor may you transfer,
      pledge, sell or otherwise dispose of such shares. This restriction on
      transfer will lapse upon delivery to you of shares in respect of your
      vested Restricted Stock Units. Your Award is not transferable, except by
      will or by the laws of descent and distribution, unless otherwise required
      by applicable law. Notwithstanding the foregoing, by delivering written
      notice to the Company, in a form satisfactory to the Company, you may
      designate a third party who, in the event of your death, shall thereafter
      be entitled to receive any distribution of Stock pursuant to this Award
      Agreement.

            

    

    

    
      	
              9.  

            	
              Award
      Not a Service Contract. Your Award is not an employment or service
      contract, and nothing in your Award shall be deemed to create in any way
      whatsoever any obligation on your part to continue in the service of the
      Company or the Participating Company Group, or on the part of the Company
      or Participating Company Group to continue such service. In addition,
      nothing in your Award shall obligate the Company or the Participating
      Company Group, their respective stockholders, boards of directors,
      Officers or Employees to continue any relationship that you might have as
      an Employee, Director or Consultant for the Company or the Participating
      Company Group.

            

    

    

    
      	
              10.  

            	
              Unsecured
      Obligation. Your Award is unfunded, and even as to any Restricted
      Stock Units that vest, you shall be considered an unsecured creditor of
      the Company with respect to the Company’s obligation, if any, to issue
      Stock pursuant to this Award Agreement. You shall not have voting or any
      other rights as a stockholder of the Company with respect to the Stock
      acquired pursuant to this Award Agreement until such Stock is issued to
      you pursuant to this Award Agreement. Upon such issuance, you will obtain
      full voting and other rights as a stockholder of the Company with respect
      to the Stock so issued. Nothing contained in this Award Agreement, and no
      action taken pursuant to its provisions, shall create or be construed to
      create a trust of any kind or a fiduciary relationship between you and the
      Company or any other person.

            

    

    

    
      	
              11.  

            	
              Withholding
      Obligations.  Regardless of any
      action taken by the Company or the Participating Company Group with
      respect to any or all income, employment, social insurance, or payroll
      taxes, payment on account or other tax-related withholding (“Tax-Related
      Items”),
      you acknowledge that the ultimate liability for all Tax-Related Items
      legally due by you is and remains your responsibility and that the Company
      and Participating Company Group (i) make no representations or
      undertakings regarding the treatment of any Tax-Related Items in
      connection with any aspect of your Award, the subsequent sale of shares
      acquired pursuant to this Award, or the receipt of any dividends and (ii)
      do not commit to structure the terms of the grant or any other aspect of
      your Award to reduce or eliminate your liability for Tax-Related Items. At
      the time you vest in this Award, at the time you receive a distribution of
      shares of Stock pursuant to this Award, or at any other time as reasonably
      requested by the Company or the Participating Company Group, you shall pay
      or make adequate arrangements satisfactory to the Participating Company
      Group to satisfy all withholding obligations of the Participating Company
      Group. In this regard, at the time you vest in and/or receive a
      distribution of shares of Stock pursuant to this Award, or at any other
      time as reasonably requested by the Company or the Participating Company
      Group, you hereby authorize the withholding of that number of whole vested
      shares otherwise deliverable to you pursuant to this Award Agreement
      having a fair market value not in excess of the amount of the
      Tax-

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Related
Items determined by the applicable minimum statutory rates. In no event may
shares of Stock shall be withheld with a value exceeding the minimum amount of
tax required to be withheld by law. Finally, you shall pay to the Company or
Participating Company Group (as applicable) any amount of the Tax-Related Items
that the Company or the Participating Company Group may be required to withhold
as a result of your participation in the Plan that cannot be satisfied by the
means previously described. You expressly acknowledge and agree that the Company
may withhold from any compensation paid to you by the Company in partial or full
satisfaction of the withholdings contemplated by this Section 11. The Company
and the Participating Company Group shall have no obligation to deliver shares
of Stock until you have satisfied the obligations in connection with the
Tax-Related Items as described in this section.

    

    
      	
              12.  

            	
              Nature
      of Award. In accepting your Award, you acknowledge
      that:

            

    

    

    
      	
              (a)  

            	
              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, unless otherwise provided in the Plan and this Award
      Agreement;

            

    

    

    
      	
              (b)  

            	
              the
      grant of your Award is voluntary and occasional and does not create any
      contractual or other right to receive future grants of awards, or benefits
      in lieu of awards, even if awards have been granted repeatedly in the
      past;

            

    

    

    
      	
              (c)  

            	
              all
      decisions with respect to future Awards under the Plan, if any, will be at
      the sole discretion of the
Committee;

            

    

    

    
      	
              (d)  

            	
              your
      participation in the Plan shall not create a right to further employment
      or service with the Company or the Participating Company Group and shall
      not interfere with any ability of the Company or the Participating Company
      Group to terminate your employment or service relationship at any time
      with or without cause;

            

    

    

    
      	
              (e)  

            	
              you
      are voluntarily participating in the
Plan;

            

    

    

    
      	
              (f)  

            	
              this
      Award is not part of normal or expected compensation or salary for any
      purpose, including, but not limited to, calculating any severance,
      resignation, termination, redundancy, end-of-service payments, bonuses,
      long-service awards, pension or retirement benefits or similar
      payments;

            

    

    

    
      	
              (g)  

            	
              in
      the event that you are not an employee of the Company, your Award will not
      be interpreted to form an employment contract or relationship with the
      Company; and furthermore, your Award will not be interpreted to form an
      employment contract with the other members of the Participating Company
      Group;

            

    

    

    
      	
              (h)  

            	
              the
      future value of the shares of Stock subject to your Award is unknown and
      cannot be predicted with certainty;
and

            

    

    

    
      	
              (i)  

            	
              no
      claim or entitlement to compensation or damages arises from termination of
      your Award or diminution in value of your Award or shares of Stock issued
      pursuant to your Award resulting from termination of your Service with the
      Company or the Participating Company Group (for any reason whether or not
      in

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    breach of
applicable labor laws), and you irrevocably release the Company and the
Participating Company Group from any such claim that may arise. If,
notwithstanding the foregoing, any such claim is found by a court of competent
jurisdiction to have arisen then, by executing the Grant Notice, you shall be
deemed irrevocably to have waived your entitlement to pursue such a
claim.

    

    
      	
              13.  

            	
              Delivery
      of Documents and Notices. Any document
      relating to participating in the Plan or Program and/or notice required or
      permitted hereunder shall be given in writing and shall be deemed
      effectively given (except to the extent that this Award Agreement provides
      for effectiveness only upon actual receipt of such notice) upon personal
      delivery, electronic delivery, or upon deposit in the U.S. Post Office or
      foreign postal service, by registered or certified mail, with postage and
      fees prepaid, addressed to the other party at the e-mail address, if any,
      provided for you by the Company or a Participating Company or at such
      other address as such party may designate in writing from time to time to
      the other party.

            

    

    

    
      	
              (a)  

            	
              Description of Electronic
      Delivery.
      The Plan and Program documents, which may include but do not
      necessarily include the Plan prospectus, Grant Notice, Award Agreement and
      U.S. financial reports of the Company, may be delivered to you
      electronically. Such means of delivery may include but do not necessarily
      include the delivery of a link to a Company intranet or the internet site
      of a third party involved in administering the Plan, the delivery of the
      document via e-mail or such other delivery determined at the Committee’s
      discretion.

            

    

    

    
      	
              (b)  

            	
              Consent to Electronic Delivery.
      You acknowledge that you have read Section 13 of this Award
      Agreement and consent to the electronic delivery of the Plan and Program
      documents, as described in this Section 13. You acknowledge that you may
      receive from the Company a paper copy of any documents delivered
      electronically at no cost if you contact the Company by telephone, through
      a postal service or electronic mail at equity@adobe.com. You further
      acknowledge that you will be provided with a paper copy of any documents
      delivered electronically if electronic delivery fails; similarly, you
      understand that you must provide the Company or any designated third party
      with a paper copy of any documents delivered electronically if electronic
      delivery fails. Also, you understand that your consent may be revoked or
      changed, including any change in the electronic mail address to which
      documents are delivered (if you have provided an electronic mail address),
      at any time by notifying the Company of such revised or revoked consent by
      telephone, postal service or electronic mail at equity@adobe.com. Finally,
      you understand that you are not required to consent to electronic
      delivery.

            

    

    

    
      	
              14.  

            	
              Data
      Privacy Consent. 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 document by and
      among the members of the Participating Company Group for the exclusive
      purpose of implementing, administering and managing your participation in
      the Plan and Program.

            

    

    

    You
understand that the Company and the Participating Company Group 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

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    held
in the Company, details of all awards or any other entitlement to shares of
Stock awarded, canceled, exercised, vested, unvested or outstanding in your
favor, for the purpose of implementing, administering and managing the Plan and
Program (“Data”). You understand that Data may be transferred to any third
parties assisting in the implementation, administration and management of the
Plan or Program, that these recipients may be located in your country or
elsewhere, and that the recipient’s country 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
recipients to receive, possess, use, retain and transfer the Data, in electronic
or other form, for the purposes of implementing, administering and managing your
participation in the Plan, including any requisite transfer of such Data as may
be required to a broker or other third party with whom you may elect to deposit
any shares of Stock pursuant to this Award. 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. You understand, however, 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.

    

    
      	
              15.  

            	
              Headings. The headings of
      the Sections in this Award Agreement are inserted for convenience only and
      shall not be deemed to constitute a part of this Award Agreement or to
      affect the meaning of this Award
Agreement.

            

    

    

    
      	
              16.  

            	
              Miscellaneous.

            

    

    

    
      	
              (a)  

            	
              The
      rights and obligations of the Company under your Award shall be
      transferable to any one or more persons or entities, and all covenants and
      agreements hereunder shall inure to the benefit of, and be enforceable by
      the Company’s successors and
assigns.

            

    

    

    
      	
              (b)  

            	
              You
      agree upon request to execute any further documents or instruments
      necessary or desirable in the sole determination of the Company to carry
      out the purposes or intent of your
Award.

            

    

    

    
      	
              (c)  

            	
              You
      acknowledge and agree that you have reviewed your Award in its entirety,
      have had an opportunity to obtain the advice of counsel prior to executing
      and accepting your Award and fully understand all provisions of your
      Award.

            

    

    

    
      	
              17.  

            	
              Governing
      Plan Document. Your Award is subject to all the provisions of the
      Plan, which are hereby made a part of your Award, and is further subject
      to all interpretations, amendments, rules and regulations which may from
      time to time be promulgated and adopted pursuant to the Plan. In the event
      of any conflict between the provisions of your Award and those of the
      Plan, the provisions of the Plan shall
control.

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
              18.  

            	
              Applicable
      Law and Venue.  This Award Agreement shall be governed by
      the laws of the State of California as such laws are applied to agreements
      between California residents entered into and to be performed entirely
      within the State of California.  For purposes of litigating any
      dispute that arises directly or indirectly from the relationship of the
      parties as evidenced by this Award Agreement, the parties herby submit to
      and consent to the jurisdiction of the State of California and agree that
      such litigation shall be conducted only in the courts of Santa Clara
      County, California, or the federal courts of the United States for the
      Northern District of California, and no other courts, where this Award
      Agreement is made and/or performed.

            

    

    

    
      
         

      

      
         8exhibitrhs.htm

    Exhibit
10.1

     

    CHANGE IN CONTROL
AGREEMENT

     

    

     

    This
Change in Control Agreement (the “Agreement”) between Robert H. Schottenstein
(the “Employee”) and M/I Homes, Inc. (the “Company”) is effective July 3, 2008
(the “Effective Date”).

    

    WHEREAS, the Employee
currently is employed by the Company, and serves as the Company’s Chairman,
Chief Executive Officer and President and the Employee is willing to continue to
serve in such capacity for the Company; and

     

    WHEREAS, the Company desires
to provide additional payments and benefits to the Employee,  but only
in the event of a Change in Control of the Company and a termination of the
Employee’s employment as hereinafter provided;

     

    NOW, THEREFORE, in
consideration of the mutual promises and agreements hereinafter set forth, the
Company and the Employee agree as follows:

     

    

     

    1.00           DEFINITIONS

     

    When used
in this Agreement, the following terms will have the meanings given to them in
this section unless another meaning is expressly provided elsewhere in this
Agreement.  When applying these definitions, the form of any term or
word will include any of its other forms and the word “including” will mean
“including, without limitation.”

     

    1.01           Board.  The board of
directors of the Company.

     

    1.02           Cause.  [1] Any act of fraud,
intentional misrepresentation, embezzlement or misappropriation or conversion of
the assets or business opportunities of the Company by the Employee, [2] conviction of the
Employee of a felony, or [3] the Employee’s [a] willful refusal to
substantially perform assigned duties (other than any refusal resulting from
incapacity due to physical or mental illness or in the event that the assigned
duties include any activities that are unlawful or would violate acceptable
accounting, securities or other specifically defined business principles), [b] willful engagement in
gross misconduct materially injurious to the Company or [c] breach of any
material term of this Agreement.  However, Cause will not arise [i] solely because the
Employee is absent from active employment during periods of vacation, consistent
with the Company’s applicable vacation policy, or other period of absence
initiated by the Employee and approved by the Company or [ii] due to any event
that constitutes Good Reason.

     

    1.03           Change in Control.  [1]
The acquisition by any person, or more than one person acting as a group,
of the ownership of stock of the Company that, together with the stock held by
such person or group, constitutes more than fifty (50) percent of the total fair
market value or total voting power of the stock of the Company; [2] the acquisition by any
person, or more than one person acting as a group, within any twelve (12) month
period, of the ownership of the stock of the Company possessing thirty (30)
percent or more of the total voting power of the stock of the Company; [3] the date a majority of the
members of the Board is replaced during any twelve (12) month period by
directors whose appointment or election is not endorsed by a majority of the
members of the Board prior to the date of the appointment or election; or [4] the acquisition by any
person, or more than one person acting as a group, within any twelve (12) month
period, of assets from the Company that have a total gross fair market value
equal to or more than forty (40) percent of the total gross fair market value of
all of the assets of the Company immediately before such acquisition or
acquisitions.  The definition of “Change in Control” in this Section
1.03 shall be interpreted in a manner that is consistent with the definition of
“change in control event” under Code §409A and the Treasury Regulations
promulgated thereunder.

     

    1.04           Code.  The Internal
Revenue Code of 1986, as amended, or any successor statute.

     

    1.05           Company.  M/I Homes,
Inc. or any successor to its business or assets.

     

    1.06           Date of
Termination.  The date of the Employee's
Termination.

     

    1.07           Effective
Period.  Except as otherwise provided in this Agreement, the
twenty-four (24) consecutive calendar months beginning after a Change in Control
occurring during the Term.

     

    1.08           Exchange Act.  The
Securities Exchange Act of 1934, as amended, or any successor
statute.

     

    1.09           Good Reason.  The
occurrence of any of the following events during the Effective Period to which
the Employee has not consented in writing:

     

    [1]           Any
breach of this Agreement of any nature whatsoever by or on behalf of the
Company;

     

    [2]           A
reduction in the Employee’s title, duties or responsibilities, as compared to
either [a] the
Employee’s title, duties or responsibilities immediately before the Change in
Control or [b] any
enhanced or increased title, duties or responsibilities assigned to the Employee
after the Change in Control;

     

    [3]           The
permanent assignment to the Employee of duties that are inconsistent with [a] the Employee’s office
immediately before the Change in Control, or [b] any more senior
office to which the Employee is promoted after the Change in
Control;

     

    [4]           The
Company [a] reduces the
Employee’s base salary, [b] reduces the annual cash
bonus that the Employee is eligible to receive or changes the manner in which
such annual cash bonus is calculated, or [c] materially reduces the
aggregate value of the Employee's other annual compensation and/or fringe
benefits;

     

    [5]           A
requirement that the Employee relocate to a principal office or worksite (or
accept indefinite assignment) to a location more than thirty (30) miles from
[a] the principal
office or worksite to which the Employee was assigned immediately before the
Change in Control, or [b] any location to which
the Employee agreed, in writing, to be assigned after the Change in Control;
or

     

    [6]           The
Company attempts to amend or terminate this Agreement without regard to the
procedures described in Section 3.01 or 3.02.

     

    1.10           Notice of
Payment.  The written notice by which the Company apprises the
Employee of [1] the
amount of any payment due under this Agreement, [2] the reason that
amount is payable and [3] the basis on which
that payment was calculated.

     

    1.11           Notice of
Termination.  A written notice that describes in reasonable
detail the facts and circumstances claimed to provide a basis for
Termination.

     

    1.12           Parties.  The
Company and the Employee.

     

    1.13           Term.  The period
beginning on the Effective Date and ending as of the applicable date described
in Section 3.02.

     

    1.14           Termination.  Termination
of the employee-employer relationship between the Employee and the Company and
any person with whom the Company would be considered a single employer under
Code §§414(b) and (c); provided that such termination constitutes a “separation
from service” as defined in Treasury Regulation §1.409A-1(h).

     

    2.00           CHANGE
IN CONTROL PAYMENTS

     

    2.01           Calculation of Change in Control
Payments.  If a Change in Control occurs and, either [1] during the Effective
Period or within six (6) months prior to the Change in Control, the Company
provides the Employee with a Notice of Termination stating that it is
Terminating the Employee’s employment without Cause, or [2]  during the
Effective Period, the Employee provides the Company with a Notice of Termination
stating that the Employee is Terminating his employment for Good Reason, then
the Company will:

     

    [a]           Continue
to pay the Employee’s compensation and other benefits through the Date of
Termination and also will pay the Employee the value of any unused vacation days
determined under the Company’s personnel policy.  The amounts
attributable to unused vacation will be paid no later than thirty (30) days
after the Employee’s Date of Termination (or, in the case in which employment is
Terminated within six (6) months prior to the Change in Control, within thirty
(30) days after the Change in Control).

     

    [b]           Continue
coverage for the Employee and his dependents, at no cost to either the Employee
or his dependents, in all programs subject to the benefit provisions of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) for the period
beginning on the Employee’s Date of Termination (or, in the case in which
employment is Terminated within six (6) months prior to the Change in Control,
the date of the Change in Control) and ending on the earlier of [i] the date the Employee
and his dependents acquire replacement coverage or [ii] the second
anniversary of the Employee's Date of Termination (or, in the case in which
employment is Terminated within six (6) months prior to the Change in Control,
the second anniversary of the Change in Control).  In the event the
Employee's or his dependents' participation in the Company's plans is not
permitted, then the Company will provide, through insurance or otherwise, at no
after-tax cost to the Employee or his dependents, the benefits to which the
Employee or his dependents would be entitled under such plans (such benefits,
collectively, the "Medical Benefits").  Any Medical Benefits to be
paid or provided under this Section 2.01[2][b] after completion of the time
period described in Treasury Regulation §1.409A-1(b)(9)(v)(B) shall be subject
to the following:  [A] the amount of expenses
eligible for reimbursement, or benefits provided, during any taxable year of the
Employee may not affect the expenses eligible for reimbursement, or benefits to
be provided, to the Employee in any other taxable year; [B] reimbursement of any
eligible expense must be made on or before the last day of the Employee's
taxable year following the taxable year in which the expense is incurred; and
[C] the right to
reimbursement or benefits is not subject to liquidation or exchange for another
benefit.  In addition, any tax gross-up payment due to the Employee
under this subsection shall be made by the end of the Employee's taxable year
next following the Employee's taxable year in which the Employee remits the
related taxes.

     

    [c]           Pay
the Employee a lump sum equal to the amount described in this
subsection.  This payment will be made no more than sixty (60) days
after the Employee’s Date of Termination (or, in the case in which employment is
Terminated within six (6) months prior to the Change in Control, within sixty
(60) days after the Change in Control).  The amount payable under this
subsection will be the sum of:

     

    [i]           two
hundred ninety-nine (299) percent of the Employee’s base salary in effect at the
Employee’s Date of Termination (or, if greater, the Employee's base salary in
effect immediately prior to any event described in Section 1.09[4][a]);
plus

     

    [ii]           two
hundred ninety-nine (299) percent of the average annual bonus earned by the
Employee during the five (5) fiscal years of the Company immediately preceding
the Employee's Date of Termination; plus

     

    [iii]           a
pro-rated amount of the annual bonus (if any) which the Employee is eligible to
receive with respect to the fiscal year in which the Date of Termination occurs
calculated based on [A]
the Company's and/or the Employee's achievement (as applicable) of the
performance goals applicable to the Employee's bonus for such fiscal year
assuming that such fiscal year ended on the last day of the month immediately
preceding the Date of Termination (with the applicable performance goals
adjusted on a pro-rata basis to account for the partial fiscal year) and [B] the number of full calendar
months that have elapsed in the fiscal year in which the Date of Termination
occurs.  Such amount shall be calculated by the Compensation Committee
of the Board in good faith and, subject to Section 4.01, shall be final and
binding on the parties.

     

    [d]           Provide any other benefits
(including change in control benefits) to which the Employee is entitled under
any other plan, program or agreement with the Company or any of its
affiliates.  Such benefits shall be provided in accordance with the
terms of the applicable plan, program or agreement.

     

    [e]           If
appropriate, pay the additional amount described in Section 2.02.

     

    2.02           Effect
of Code §280G.

     

    [1]           If
the sum of the payments and benefits described in Section 2.01 (collectively,
the “Payments”) constitute “excess parachute payments” as defined in Code §280G,
the Company will either:

     

    [a]            Pay
the Employee an additional amount (the “Gross-Up Payment”) such that the net
amount retained by the Employee, after deduction of any excise tax under
Code §4999 (the “Excise Tax”) and any federal, state and local income and
employment taxes and Excise Tax upon the Gross-Up Payment, shall be equal to the
Payments to the Employee; provided, however, that this Section 2.02[1][a] shall
apply only if the sum of the Payments that constitute amounts described in Code
§280G(b)(2)(A)(i) is equal to or greater than one-hundred and ten (110) percent
of the limitation described in Code §280G(b)(2)(A)(ii) (the "280G Limit");
or

     

    [b]            Reduce
the Payments to the minimum extent necessary to avoid the imposition of the
Excise Tax or loss of deduction under Code §280G; provided, however, that
this Section 2.02[1][b] shall apply only if the sum of the Payments that
constitute amounts described in Code §280G(b)(2)(A)(i) is less than one-hundred
and ten (110) percent of the 280G Limit.  Any reduction under this
Section 2.02[1][b] shall be made in compliance with
Code §409A.

     

    [2]           Subject
to the provisions of Section 2.02[3], all determinations under this Section
2.02, including whether a Gross-Up Payment is required and the amount of the
Gross-Up Payment, shall be made by a certified public accounting firm which was,
immediately before the Change in Control, the Company’s certified public
accounting firm, or such other nationally recognized certified public accounting
firm as may be designated by the Employee (the “Accounting
Firm”).  The Accounting Firm shall provide detailed supporting
calculations to both the Company and the Employee within ten (10) business days
after receipt of notice from the Company or the Employee that there has been a
Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change in Control, the Employee may
appoint another nationally recognized accounting firm to make the determination
required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder).  All fees and expenses of the Accounting
Firm shall be borne solely by the Company. Any determination by the Accounting
Firm shall be final and binding on the Company and the
Employee.  Notwithstanding the foregoing, as a result of uncertainty
in applying Code §4999, it is possible that the Company will not have made the
aggregate Gross-Up Payment that it should have made hereunder (an
“Underpayment”).  If the Company exhausts its remedies pursuant to
Section 2.02[3] and the Employee thereafter is required to pay any Excise Tax,
the Accounting Firm shall determine the amount of the Underpayment, inform the
Company and the Employee of the Underpayment in writing, and, within five (5)
days of receiving such written notice, the Company shall pay the amount of such
Underpayment to the Employee.

    

    [3]           The
Employee shall notify the Company in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by the Company of
the Gross-Up Payment.  Such notification shall be given as soon as
practicable but not later than five (5) business days after the Employee is
informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is required to be
paid.  The Employee shall not pay such claim before the expiration of
thirty (30) days following the date on which he gives such notice to the Company
(or such shorter period ending on the date that any payment of taxes with
respect to such claim is due).  If the Company notifies the Employee
in writing before the expiration of such thirty (30) day period (or such shorter
period ending on the date that any payment of taxes with respect to such claim
is due) that it desires to contest such claim, the Employee shall [a] give the Company any
information reasonably requested by the Company relating to such claim, [b] take such action in
connection with contesting such claim as the Company shall reasonably request in
writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney selected by the
Company, [c] cooperate
with the Company in good faith in order effectively to contest such claim, and
[d] permit the Company
to participate in any proceedings relating to such claim; provided that the
Company shall pay directly all costs and expenses (including additional interest
and penalties) incurred in connection with such contest and shall indemnify and
hold the Employee harmless, on an after-tax basis, for any tax, including
interest and penalties, imposed as a result of such representation and payment
of costs and expenses.  Without limitation on the foregoing provisions
of this Section 2.02[3], the Company shall control all proceedings in connection
with such contest and may, at its sole option, either direct the Employee to pay
the tax claimed and sue for a refund or to contest the claim in any permissible
manner, and the Employee agrees to prosecute such contest to a determination
before any appropriate administrative tribunal or court, as the Company shall
determine; provided, that if the Company directs the Employee to pay such claim
and sue for a refund, the Company shall advance the amount of such payment to
the Employee, on an interest-free basis, and shall indemnify and hold the
Employee harmless, on an after-tax basis, from any tax, including interest or
penalties, imposed with respect to such advance.  The Company’s
control of the contest shall be limited to issues with respect to which a
Gross-Up Payment would be payable hereunder, and the Employee shall be entitled
to settle or contest any other issue. 

    

    [4]           If,
after the Employee receives an advance by the Company pursuant to Section
2.02[3], the Employee becomes entitled to receive a refund claimed pursuant to
such Section 2.02[3], the Employee shall (subject to the Company’s compliance
with the requirements of such Section 2.02[3]) promptly pay to the Company the
amount of such refund (together with any interest thereon, after taxes
applicable thereto). If, after the Employee receives an advance by the Company
pursuant to Section 2.02[3], a determination is made that the Employee shall not
be entitled to any refund claimed pursuant to such Section 2.02[3], and the
Company does not notify the Employee in writing of its intent to contest such
denial of refund before the expiration of thirty (30) days after such
determination, the Employee shall not be required to repay such advance, and the
amount of such advance shall offset, to the extent thereof, the amount of the
required Gross-Up Payment. 

    

    [5]           Notwithstanding
anything in this Section 2.02 to the contrary, any Gross-Up Payment or other tax
gross-up payment under this Section 2.02 shall be made by the end of the
Employee's taxable year next following the Employee's taxable year in which the
Employee remits the related taxes.

     

    2.03           Conditions
Affecting Payments.

     

    [1]           Except
as expressly provided in this Agreement, the Employee’s right to receive the
Payments will not decrease the amount of, or otherwise adversely affect, any
other benefits payable to the Employee under any other plan, agreement or
arrangement between the Employee and the Company.

     

    [2]           The
Employee is not required to mitigate the amount of any Payment by seeking other
employment or otherwise, nor, except as provided in Section  2.02[2], will
the amount of any Payment be reduced by any compensation or benefits the
Employee earns, or is entitled to receive, in any capacity after Termination or
by reason of the Employee’s receipt of or right to receive any retirement or
other benefits attributable to employment with the Company on or after
Termination.

     

    [3]           Notwithstanding
any provision contained herein, the amount of any Payment will be reduced by
amounts the Company is required to withhold in payment (or in anticipation of
payment) of any income, wage or employment taxes imposed on the
Payment.

     

    [4]           Notwithstanding
any provision contained herein, if, on the Date of Termination, the Employee is
a “specified employee,” within the meaning of Code §409A and the Treasury
Regulations promulgated thereunder and as determined under the Company’s policy
for determining specified employees, and the payment or provision of amounts and
benefits under this Agreement is required to be delayed pursuant to Treasury
Regulation §1.409A-3(i)(2), then the payment or provision of such amounts and
benefits shall not be made (or commence to be made) until the first business day
of the seventh month following the Date of Termination (or, if earlier, the
Employee’s death).  The first payment that can be made shall include
the cumulative amount of any amounts or benefits that could not be paid or
provided during such postponement period.

     

    3.00           AMENDMENT
AND TERMINATION

     

    3.01           Amendment.  This
Agreement may be amended at any time by a written agreement executed by each of
the Parties.

     

    3.02           Termination.  This
Agreement will terminate on the earliest of the following to occur:

     

    [1]           The
Employee’s employment with the Company is Terminated and a Change in Control
does not occur within six (6) months after such Termination;

     

    [2]           The
Parties mutually agree, in writing, to terminate this Agreement, whether or not
it is replaced with a similar agreement; or

     

    [3]           All
Payments due under this Agreement have been fully paid.

     

    

     

    4.00           DISPUTE
RESOLUTION

     

    4.01           Arbitration.  Any
[1] disagreement
concerning the calculation of any payment due under this Agreement, [2] breach of any term of
this Agreement or [3] other dispute or
controversy arising out of or relating to this Agreement, including the basis on
which the Employee is Terminated, will be resolved by arbitration in accordance
with the rules of the American Arbitration Association.  The award of
the arbitrator will be final, conclusive and nonappealable and judgment upon the
award rendered by the arbitrator may be entered in any court having competent
jurisdiction.  The arbitrator must be an arbitrator qualified to serve
in accordance with the rules of the American Arbitration Association and one who
is approved by the Company and the Employee.  If the Employee and the
Company fail to agree on an arbitrator, each must designate a person qualified
to serve as an arbitrator in accordance with the rules of the American
Arbitration Association and these persons will select the arbitrator from among
those persons qualified to serve in accordance with the rules of the American
Arbitration Association.  Any arbitration relating to this Agreement
will be held in the city in which the Employee’s last principal place of
employment with the Company before the Employee’s Date of Termination is or was
located or another place the Parties mutually select immediately before the
arbitration.

     

    4.02           Costs.  The Company will bear all
reasonable costs associated with any dispute arising under this Agreement,
including reasonable accounting and legal fees incurred by the Employee through
any proceeding described in Section 4.01.  Any such costs incurred by
the Employee shall be paid by the Company within sixty (60) days of the date on
which the Employee provides the Company with a written invoice for such costs
and any other evidence of such costs that the Company shall reasonably
request.  Notwithstanding the foregoing, for purposes of this Section
4.02, [1] any costs being reimbursed must relate
to a claim brought within eighteen (18) months following the Date of Termination
(or, in the case in which employment is Terminated within six (6) months prior
to a Change in Control, within eighteen (18) months following the Change in
Control), [2] the costs eligible for
reimbursement during any taxable year of the Employee may not affect the costs
eligible for reimbursement in any other taxable year, [3] reimbursements must be
made on or before the last day of the Employee’s taxable year following the
taxable year in which the cost was incurred, and [4] the right to reimbursement
for such costs is not subject to liquidation or exchange for another
benefit.

     

    4.03           Payment During Dispute Resolution
Period.  If otherwise due, the Company may not defer payment of
any amount that is not being contested under Section 4.01.

     

    5.00           MISCELLANEOUS

     

    5.01           Assignment.  Except
as otherwise provided in this Section 5.01, this Agreement shall inure to the
benefit of and be binding upon the Parties and their respective heirs,
representatives, successors and assigns.  This Agreement shall not be
assignable by the Employee, and shall be assignable by the Company only to any
corporation or other entity resulting from the reorganization, merger or
consolidation of the Company with any other corporation or entity or any
corporation or entity to which the Company may sell all or substantially all of
its assets, and this Agreement must be so assigned by the Company to, and
accepted as binding by such other corporation or entity in connection with any
such reorganization, merger, consolidation or sale.

     

    5.02           Notices.  All
notices and other communications provided for in this Agreement must be written
and will be deemed to have been given when deposited with a reputable overnight
delivery service or in United States registered mail, return receipt requested,
postage prepaid, to the Parties at the following addresses or at such other
address as a Party may specify by notice to the other:

    To the Company:

    M/I Homes, Inc.

    3 Easton Oval

    Columbus, Ohio 43219

    Attn:  General
Counsel

    

    To the Employee:

    Robert H. Schottenstein

    At the last address on
file

    with the Company

     

    5.03           Complete
Agreement.  No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter of this
Agreement have been made by either Party that are not set forth expressly in
this Agreement.

     

    5.04           Applicable Law.  The
validity, interpretation, construction and performance of this Agreement will be
governed by the laws of the State of Ohio.

     

    5.05           Validity.  The
invalidity or unenforceability of any provisions of this Agreement will not
affect the validity or enforceability of any other provisions of this Agreement,
which will remain in full force and effect.

     

    5.06           Section 409A of the
Code.  It is intended that this Agreement comply with Code
§409A and the Treasury Regulations promulgated thereunder, and this Agreement
will be interpreted, administered and operated accordingly.  Nothing
herein shall be construed as an entitlement to or guarantee of any particular
tax treatment to the Employee.  Furthermore, the Company may
accelerate the time or schedule of a Payment to the Employee at any time the
Agreement fails to meet the requirements of Code §409A and the Treasury
Regulations promulgated thereunder.  Such Payment may not exceed the
amount required to be included in income as a result of the failure to comply
with the requirements of Code §409A and the Treasury Regulations promulgated
thereunder.

     

    IN WITNESS WHEREOF, the
Parties hereto have executed this Agreement to be effective as of the date and
year first above written.

    

     

    
      	
              M/I
      HOMES, Inc.

            
	 
      	 
      
	 
      	 
      
	
              By:

            	
              /s/J.
      Thomas Mason

            
	
              Title:

            	Executive Vice President, General Counsel
    
	 
      	and
      Secretary  
	 
      	 
      
	
              EMPLOYEE

            
	 
      	 
      
	
              /s/Robert
      H. Schottenstein

            
	
              Robert
      H. Schottenstein

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