Document:

Exhibit

[Letterhead of The Spectranetics Corporation]
December 24, 2016

Dear Scott:

We are pleased to offer you the General Manager - Vascular Intervention position with the Spectranetics Corporation (the “Company,” “we,” or “us”) as a regular, full-time, exempt employee.  Our goal is to attract, retain, and develop the best talent on the planet, and we are looking forward to your contributions in this role.  The following outlines the terms of our employment offer to you:

	
			
	Position:
	 
	General Manager - Vascular Intervention

	 
	 
	 

	Start Date:
	 
	January 15, 2017

	 
	 
	 

	Reporting to:
	 
	Scott Drake, Chief Executive Officer

	 
	 
	 

	Compensation:
	 
	You will be an exempt employee.  Your gross bi-weekly salary will be $13,461.54 or $350,000.00 annually. 

	 
	 
	 

	Annual Bonus:
	 
	You will be eligible to participate in the Company Performance Based Bonus Plan.  This bonus plan is based upon corporate goals established by the Company’s Board of Directors.  At 100% to plan, this bonus plan will provide an opportunity to earn 50% of your base salary in variable incentive compensation. Actual incentive payout may range from 0% - 200% of the target based on performance to goals and prorated based on your Start Date.

	 
	 
	 

	Sign-On Bonus:
	 
	You will receive a one-time, taxable sign-on bonus of $140,000.00 to be paid as soon as administratively possible following your Start Date. 

	 
	 
	 

	Equity Grant:
	 
	Subject to the approval of the Compensation Committee of the Board of Directors, you will receive a total equity grant value of $700,000.00 USD (based on Black Sholes Valuation). As detailed below, a portion of this grant will be issued in the form of Incentive Stock options, a portion in the form of Restricted Stock Units and a portion in the form of Performance Share Units. All of your rights and interests to the grants are defined specifically in the 2016 Incentive Award Plan.     

	 
	 
	 

	 
	 
	You will receive an Incentive Stock Option grant valued at approximately $100,000.00 that will vest over four years. The grant price of these options will be the fair market value of Spectranetics common stock on the last business day of the month of your hire date. The grant price, along with award value, will be used to determine the specific number of Incentive Stock Options awarded.

	 
	 
	 

	 
	 
	You will receive a Restricted Stock Unit grant valued at approximately $400,000.00 that will vest over four years. The grant price of these options will be the fair market value of Spectranetics common stock on the last business day of the month of your hire. The grant price, along with award value, will be used to determine the specific number of Restricted Stock Units awarded.

	 
	 
	 

	 
	 
	You will receive a Performance Stock Unit grant valued at approximately $200,000.00 that will vest based on established performance metrics, subject to the approval of the Compensation Committee of the Board of Directors. The strike price of these shares is the fair market value of Spectranetics common stock on the last business day of the month of your hire date. The strike price, along with award value, will be used to determine the specific number of Performance Stock Units awarded.

	 
	 
	 

	Severance Agreement:
	 
	Following six months of employment and subject to your execution of the Severance Agreement and the conditions outlined in the Agreement, Spectranetics will provide you with: (a) an amount equal to 100% of your annual base pay as in effect as of the date of the separation, and (b) Twelve (12) months of COBRA premiums.

	 
	 
	 

	
			
	Benefits:
	 
	You will be eligible to participate in our medical/dental/vision/401(k) benefits program the first of the month following date of hire. You will also be eligible for the SPNC Flexible Time Off Program. The following additional benefits have a 60-90-day waiting period: Company Paid Group Life and AD&D, Short Term and Long Term Disability, Voluntary Life Insurance. You will receive more in-depth information in your orientation packet.

	 
	 
	 

	At-will Employment:
	 
	Your employment with the Company is on an at-will basis and can be terminated at any time, with or without cause, and with or without advance notice, at the option of either the Company or yourself.  Although the terms of your employment outlined above apply at the present time, the Company may modify any term or condition of your employment including compensation, benefits or duties. Neither the terms of this offer letter, nor any other writings or statements of the Company, create either an express or implied contract of employment with the Company. This understanding can only be modified, if at all, in writing signed by an Executive Officer of the Company.

	 
	 
	 

	Confidentiality & Non-Compete Agreement:
	 
	In the event that you may have entered into an agreement with a prior employer that contains provisions regarding trade secrets, confidentiality, non-compete or the like, we offer no opinion or advice with respect to the meaning or enforceability of any such agreement and encourages you to seek independent legal counsel, if you deem that appropriate. Spectranetics does, however, expect you to honor the terms of any enforceable agreement you may have signed with any prior employer.

	 
	 
	 

	Employment Terms:
	 
	This employment offer is also subject to your compliance with the following requirements:
1) Execute and return the Spectranetics Corporation Agreement for Protection of Trade Secrets and Confidential Information, a copy of which is enclosed.
2) Complete the Employment Eligibility Verification Form (Form I-9): All employees are required to prove their eligibility to work in the United States as required by the U.S. Immigration Law. Upon your acceptance of this offer, you will need to fill out an I-9 form and provide proof of identity.
3) Execute and return your signed agreement to comply with Spectranetics Code of Business Conduct, a copy of which is enclosed.

This offer is contingent upon the satisfactory results of your reference/criminal/education, employment verification and background check. You will also be required to pass a pre-employment drug screening.  If you decide to accept this offer, please return a signed copy of your acceptance, as soon as possible to Human Resources. You may email the signed copy to me at robert.fuchs@spnc.com.

Again, Scott, we are very pleased to offer you this position and are excited about you becoming a member of our team and believe this will be a mutually rewarding experience in a personal and professional way. If you have any questions or concerns, please feel free to contact Scott or me.

Sincerely,
The Spectranetics Corporation

	
	
	By:  /s/ Rob Fuchs

	Rob Fuchs

	Senior Vice President, Global Human Resources

ACCEPTED:
	
					
	/s/ Scott Hutton
	 
	December 26, 2016
	 
	January 23, 2017

	Scott Hutton
	 
	Date
	 
	Start DateExhibit

2017 - 2019
Executive Performance Plan
Terms and Conditions

Awards: The Performance Shares will be earned on the Vesting Date (as defined below) only to the extent that the performance goal thresholds for the Performance Period are exceeded, with any unearned Performance Shares being forfeited without notice on the Vesting Date. The performance measures are 2019 Operating Margin and Total Shareholder Return (TSR) relative to Index Group over a three year period as described in the 2017-2019 Executive Performance Plan Overview (the “Overview”).

Grant Date:  February 17, 2017

Performance Period: The Company’s 2017-2019 fiscal years.

Vesting: Performance Shares are earned and vest on the Board meeting that occurs closest to the third anniversary of the grant date, which Board meeting shall occur in the same calendar year as the third anniversary of the grant date, provided the recipient remains continuously employed from the grant through such date (the “Vesting Date”), except as otherwise provided herein.  

Upon the death, Disability or Retirement of a Participant prior to the Vesting Date, Performance Shares will continue to vest and the Participant will be eligible for a prorated award upon vesting.  In such cases, the factor for proration will be calculated by dividing the total number of days in the Performance Period by the number of days the Participant was actively employed (including weekends, holidays and vacation during the period of active employment) during the Performance Period.f For example, if a Participant is actively employed during the entire year of the first fiscal year of the Performance Period, but retires on the first day of the second fiscal year of the Performance Period, the pro-ration factor will be 33% calculated by dividing days actively employed (365) by the total number of days in the Performance Period (1,095).  Participants will forfeit, without further notice and effective as of their date of termination any unvested Performance Shares if their employment terminates prior to the Vesting Date for any reason other than death, Disability or Retirement.  

This Executive Performance Plan (“EPP”) award will be void and will have no force and effect  if the Participant is terminated, retired, on long-term disability, on a severance leave of absence or otherwise not an active employee on the date of grant.  Notwithstanding the preceding sentence, an employee who initially becomes eligible for this 2017-2019 Executive Performance Plan after the grant date and during the first year of the Performance Period may receive a prorated EPP award for the Performance Period upon vesting.  In such cases the factor for proration will be the same as the factor used for proration for a Participant for whom death, Disability or Retirement occurs during the Performance Period. 

Change in Control: Notwithstanding the above, in the event of a Change in Control, all Performance Shares will fully vest immediately as of the Change in Control and will be considered fully earned and will be payable at target promptly as practicable following the Change in Control if the awards have not been assumed or replaced by a Substitute Award, as defined below.  The Compensation and Talent Management Committee of the Board of Directors of Kellogg Company (the “Committee”) may adjust the Performance Shares earned to the extent the 2019 Operating Margin and TSR relative to Index Group 

performance at that date exceeds the target specified in the Overview, but in no case will the Performance Shares earned be less than the target.

An award will qualify as a Substitute Award (“Substitute Award”) if it is assumed by any successor corporation, affiliate thereof, person or other entity, or replaced with awards that, solely in the discretionary judgment of the  Committee preserves the existing value of the outstanding Performance Shares at the time of the Change in Control and provide vesting, payout terms, performance goals and performance period, as applicable, that are at least as favorable to Participants as vesting, payout terms, performance goals and performance period applicable to the Performance Shares (including the terms and conditions that would apply in the event of a subsequent Change in Control). 

If and to the extent that Performance Shares are assumed by the successor corporation (or affiliate, person or other entity thereto) or are replaced with Substitute Awards, then all such Substitute Awards shall remain outstanding and be governed by their respective terms and the provisions of the applicable plan.  

If the Performance Shares are assumed or replaced with a Substitute Award and the Participant’s employment with the Company is thereafter terminated by (i) the Company or successor, as the case may be, for any reason other than cause; or (ii) a Participant eligible to participate in the Kellogg Company Change of Control Severance Policy for Key Executives, for Good Reason (as defined in that Policy), in each case, within the two-year period commencing on the date of the Change in Control, all Substitute Awards for that Participant will fully vest immediately as of the date of the Participant’s termination and will be considered fully earned and will be payable at target promptly as practicable following the termination of employment.  

Administration: As soon as administratively possible after the Vesting Date, or the Change in Control, whichever is applicable, but in any event within the same calendar year as the Vesting Date or the Change in Control, the number of net shares of the Company’s common stock earned will be deposited into a Merrill Lynch account.  After the shares of Common Stock are deposited following the Vesting Date, Participants can contact Merrill Lynch at 1-866-866-4050 or 1-609-818-8669 (outside of the U.S., Canada or Puerto Rico), or the Merrill Lynch Grand Rapids Office at 1-877-884-4371 or 1-616-774-4252 (outside the U.S., Canada or Puerto Rico) for customer service.

Dividends: Dividends are not paid on Performance Shares until after they are vested and shares of the Company’s Common Stock are deposited in a Merrill Lynch account for the Participant (net of taxes).  As soon as administratively possible after that occurs, dividends will be paid prospectively on all such shares of the Company’s Common Stock if and when declared by the Board of Directors.

Voting: Performance Shares are not entitled to any voting rights until after they are vested and shares of the Company’s Common Stock are deposited in a Merrill Lynch account for the Participant (net of taxes).  As soon as administratively possible after that occurs, the Participant will be entitled to voting rights on such shares of the Company’s Common Stock.

Taxes:  Prior to the delivery of any shares of Company Common Stock in settlement of Performance Shares, the Company shall have the power and right to deduct or withhold or require the Participant to remit to the Company an amount sufficient to satisfy any federal, state, local, or foreign taxes of any kind which the Company in its sole discretion deems necessary to be withheld or remitted to comply with any applicable law, rule, or regulation.  Participants will be deemed to have elected to pay the withholding taxes owed by allowing the Company to withhold shares on the Vesting Date (and delivering to the Participant the net shares of the Company’s common stock) having a Fair Market Value equal to the amount sufficient to satisfy the Company’s statutory withholding obligations.  The Participant is 

responsible for paying Participant’s taxes that result from the granting or vesting of the Performance Shares.  Taxes include, but are not limited to, Federal taxes, social insurance or FICA taxes, state and local taxes, and any other tax, if applicable.

Communication: Target awards will be communicated to Participants during the salary planning communication in late February and early March 2017, when other pay decisions such as market and performance adjustment, bonus and stock option award are communicated. Participants will receive confirmation of the actual number of Performance Shares earned during the first quarter of the 2020 calendar year.  

Registration: Upon the depositing of the shares of the Company’s Common Stock in the Merrill Lynch account, the shares of the Company’s Common Stock will be registered in the Participant’s name.  Participants can change the registration of the shares by calling Merrill Lynch.

Disposition at Vesting: After the shares of the Company’s Common Stock are deposited in the Merrill Lynch account in the Participant’s name, the Participant can leave the shares with Merrill Lynch, ask Merrill Lynch to sell the shares, have a certificate issued to the Participant or have the shares electronically transferred to another broker.

Benefits: Income from the EPP will not be included in earnings for the purposes of determining benefits, including pension, S&I, disability, life insurance and other survivor benefits.

Insiders: After the Performance Shares vest and the net shares of Company Common Stock are deposited in the Participant’s Merrill Lynch account, any Participant who is an insider cannot dispose of the shares of Common Stock without prior approval of the Legal Department. 

Clawback:  If at any time (including after the vesting date but prior to payment) the Committee, including any person authorized pursuant to Section 3.2 of the 2013 Long-Term Incentive Plan (the “Plan”) (any such person, an “Authorized Officer”), reasonably believes that a Participant has committed an act of misconduct as described in this paragraph , the Committee or an Authorized Officer may suspend the Participant’s right to participate in the Executive Performance Plan pending a determination of whether an act of misconduct has been committed.  If the Committee or an Authorized Officer determines that a Participant has engaged in any activity that is contrary or harmful to the interest of the Company or any of its subsidiaries, including, but not limited to, (i) conduct relating to the Participant’s employment for which either criminal or civil penalties against the Participant may be sought, (ii) breaching the Participant’s fiduciary duty or deliberately disregarding any of the Company’s (or any of its subsidiaries’) policies or code of conduct, (iii) violating the Company’s insider trading policy, (iv) accepting employment with or serving as a consultant, advisor, or in any other capacity to an entity or person that is in competition with or acting against the interests of the Company or any of its subsidiaries, (v) directly or indirectly soliciting, hiring, or otherwise encouraging any present, former, or future employee of the Company or any of its subsidiaries to leave the Company or any of its subsidiaries, (vi) disclosing or misusing any confidential information or material concerning the Company or any of its subsidiaries, or (vii) participating in a hostile takeover attempt of the Company, then the grant of Performance Shares under the Plan and all rights thereunder shall terminate immediately without notice effective the date on which the Participant performs such act of misconduct, unless terminated sooner by operation of another term or condition of  this document  or the Plan.  In addition, if the Committee determines that a Participant engaged in an act of fraud or intentional misconduct during the Participant’s employment that caused the Company to restate all or a portion of the Company’s financial statements (“Misconduct”), the Participant may be required to repay to the Company, in cash and upon demand, any payment in shares under the EPP made during the plan year of the misstatement.  The return of EPP payment is in addition to 

and separate from any other relief available to the Company due to the Participant’s Misconduct.  For any Participant who is an executive officer for purposes of Section 16 of the Exchange Act, the determination of the Committee shall be subject to the approval of the Board of Directors.

The rights contained in this paragraph  shall be in addition to, and shall not limit, any other rights or remedies that the Company may have under law or in equity, including, without limitation, (i) any right that the Company may have under any other Company recoupment policy or other agreement or arrangement with a Participant, or (ii) any right or obligation that the Company may have regarding the clawback of “incentive-based compensation” under Section 10D of the Securities Exchange Act of 1934, as amended (as determined by the applicable rules and regulations promulgated thereunder from time to time by the U.S. Securities and Exchange Commission).
Other Plan Provisions: The 2017-2019 EPP was adopted under the Plan and is subject to all the provisions of the Plan, including those related to the ability of the Board of Directors to amend the Plan, the EPP or any awards thereunder.  Nothing in this summary, the Overview, or the Plan shall confer upon the Participant any right of continued employment.  Capitalized terms not defined herein shall have the meaning given such term in the Plan. 

These terms and conditions are subject to the provisions of the Kellogg Company 2013 Long Term Incentive Plan document and any additional terms and conditions as determined by the Committee.

Date: February 2017

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