Document:

ivtformofperformancersua

             PERFORMANCE-BASED RESTRICTED STOCK UNIT AGREEMENT          This  Restricted  Stock  Unit  Agreement  (this  “Agreement”),  dated  as  of <GRANT_DT> (the  “Grant  Date”),  is  made  by  and  between  InvenTrust  Properties  Corp.,  a  Maryland  corporation  (the  “Company”),  and  <PARTC_NAME> (the “Participant”).         WHEREAS,  the  Company  maintains  the InvenTrust  Properties  Corp.  2015  Incentive  Award  Plan (as  amended from time to time, the “Plan”);          WHEREAS, the Company wishes to carry out the Plan (the terms of which are hereby incorporated by  reference and made a part of this Agreement);          WHEREAS, Section 9.4 of the Plan provides for the issuance of Restricted Stock Units (“RSUs”);          WHEREAS, Section 9.2 of the Plan provides for the issuance of Dividend Equivalent awards; and          WHEREAS, the Administrator has determined that it would be to the advantage and in the best interest  of  the  Company  to  issue  the  RSUs  and  Dividend  Equivalents  provided  for  herein  to  the  Participant  as  an  inducement  to  enter  into  or  remain  in  the  service  of  the  Company  and  its  Subsidiaries,  and  as  an  additional  incentive during such service, and has advised the Company thereof.         NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and  valuable  consideration,  the  receipt  of  which  is  hereby  acknowledged,  the  parties  hereto  do  hereby  agree  as  follows:         1.    Issuance of Award of RSUs.  Pursuant to the Plan, in consideration of the Participant’s agreement  to provide services to the Company and its Subsidiaries, the Company hereby issues to the Participant an award of  <RSUS_GRANTED>1 RSUs.  Each RSU that vests (and ceases to be subject to the Restrictions) shall represent  the right to receive payment, in accordance with this Agreement, of one share of the Company’s common stock,  par value $0.001 per share (the “Common Stock”).  Unless and until an RSU vests, the Participant will have no  right to payment in respect of any such RSU.  Prior to actual payment in respect of any vested RSU, such RSU  will  represent an  unsecured  obligation of  the  Company,  payable  (if at  all)  only  from  the  general  assets  of  the  Company.         2.    Dividend  Equivalents.   Each  RSU  granted  hereunder  is  hereby  granted  in  tandem  with  a  corresponding Dividend  Equivalent, which Dividend Equivalent shall remain outstanding from the  Grant Date  until the earlier of the payment or forfeiture of the RSU to which it corresponds.  With respect to each dividend  for which the record date occurs on or after the commencement of the Performance Period and on or prior to the  earlier to occur of the payment or forfeiture of the RSU underlying such Dividend Equivalent, each outstanding  Dividend Equivalent shall entitle the Participant to receive payments equal to dividends paid, if any, on the Shares  underlying  the  RSU  to  which  such  Dividend  Equivalent  relates,  to  the  extent  that  such  RSU  becomes a  Performance Vested RSU, payable in the same form and amounts as dividends paid to each holder of a Share.   Each such payment shall be made no later than sixty (60) days following the applicable dividend payment date,  provided that no such payments shall be made prior to the date on which the RSU becomes a Performance Vested  RSU, and any Dividend Equivalent payments that would have been made prior to such date had the RSU been a  Performance Vested RSU shall be paid in a single lump sum no later than twenty (20) days following the date on  which the RSU becomes a Performance Vested RSU.  Notwithstanding the foregoing, Dividend Equivalents shall  not entitle the Participant to any payments relating to dividends for which the record date occurs after the payment                                                        1 Note to Draft:  The number of RSUs granted will be the maximum number that will vest if maximum        performance is achieved.                                            1  

 

of the Performance Vested RSU underlying such Dividend Equivalent, and the Participant shall not be entitled to  any Dividend Equivalent payments with respect to any RSU that does not become a Performance Vested RSU.   Dividend  Equivalents  and  any  amounts that  may  become  distributable  in  respect  thereof  shall  be  treated  separately from the RSUs and the rights arising in connection therewith for purposes of the designation of time  and form of payments required by Section 409A of the Code.         3.    Definitions.  For  purposes  of  this  Agreement,  the  following  terms  shall  have  the  meanings  set  forth below.  All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such  terms in the Plan.               (a)   “2019  Compensation  Presentation”  means  that  certain presentation  titled  “2019  Employee  Compensation  Matters” and  dated  as  of May  8,  2019,  which  was  provided  to  the  Compensation  Committee of the Board in connection with its meeting held on such date.                (b)   “AFFO Performance Vesting Percentage” means the percentage determined as set forth  on Exhibit  A attached  hereto,  which  is  a  function  of  the  Company AFFO per  Share during  the  Performance  Period.                            (c)   “AFFO RSUs”  means  the  number  of RSUs designated  as AFFO RSUs on Exhibit  A  attached hereto.                            (d)   “AFFO Vested RSUs” means the product of (i) the total number of AFFO RSUs, and (iii)  the applicable AFFO Performance Vesting Percentage.                            (e)   “Cause” means “Cause” as defined in the Participant’s applicable employment or similar  agreement  with  the  Company  if  such  an  agreement exists  and  contains  a  definition  of  Cause,  or,  if  no  such  agreement exists or such agreement does not contain a definition of Cause, then Cause means (i) the willful fraud  or  material  dishonesty  of  the  Participant  in connection  with  the  performance  of  the Participant’s  duties  to  the  Company or any Subsidiary; (ii) the deliberate or intentional failure by the Participant to substantially perform the  Participant’s duties to the Company or any Subsidiary (other than the Participant’s failure resulting from his or  her  incapacity  due  to  physical  or  mental  illness)  after  a  written  notice  is  delivered  to  the  Participant  by  the  Company, which demand specifically identifies the manner in which the Company believes the Participant has  not  substantially  performed  his  or  her  duties;  (iii)  willful  misconduct  by  the  Participant  that  is  materially  detrimental  to  the  reputation,  goodwill  or  business  operations  of  the  Company  or  any  Subsidiary;  (iv)  willful  disclosure of the Company’s or any Subsidiary’s confidential information or trade secrets; (v) a material breach of  the  terms  of  this  Agreement  or  the  Plan;  or  (vi)  the  conviction  of,  or  plea  of  nolo  contendere  to  a  charge  of  commission of a felony or crime of moral turpitude by the Participant.  For purposes of this definition, no act or  failure to act will be considered “willful,” unless it is done or omitted to be done, by the Participant in bad faith or  without reasonable belief that the Participant’s action or omission was in the best interests of the Company or any  Subsidiary.              (f)   “Company  AFFO per  Share”  means  the  Company’s “AFFO”  per  Share  during  the  Performance Period, as defined and calculated in accordance with the 2019 Compensation Presentation.                            (g)   “Company Same-Property  NOI  Growth” means  the average annual  growth  rate,  expressed as a percentage (rounded to the nearest tenth of a percent (0.1%)), in the Company’s “Same Property  NOI” during  the  Performance  Period, as  defined and  calculated  in  accordance  with  the  2019  Compensation  Presentation.                            (h)   “Disability”  means  a disability that qualifies or, had the  Participant been a participant,  would  qualify  the  Participant  to  receive  long-term  disability  payments  under  the  Company’s  group  long-term  disability insurance plan or program, as it may be amended from time to time.                                             2  

 

                    (i)   “Good  Reason”  means  “Good  Reason”  as  defined  in  the  Participant’s  applicable  employment  or similar agreement  with  the  Company  if  such  an  agreement  exists  and  contains  a  definition  of  Good Reason, or, if no such agreement exists or such agreement does not contain a definition of Good Reason,  then Good Reason means the occurrence of any of the following events or conditions without the Participant’s  written consent:                       (i)   a material diminution in the Participant’s authority, duties or responsibilities;                     (ii)  a material diminution in the Participant’s base salary, target annual bonus level,                          [or  target  annual  equity-based  compensation  opportunity,]2 in  each  case,  as  in                          effect on the date of this Agreement and as may be increased from time to time;                          and                      (iii) the  Participant  being  required  to  relocate  his  or  her  principal  place  of                          employment  with  the  Company  or  a  Subsidiary  (as  applicable)  more  than  50                          miles  from  his  or  her  principal  place  of  employment  immediately  prior  to  the                          occurrence of the event constituting Good Reason.                     A  termination  of  employment  by  the  Participant  shall  not  be  deemed  to  be  for  Good  Reason unless (A) the Participant gives the Company written notice describing the event or events which are the  basis for such termination within sixty (60) days after the event or events occur, (B) such grounds for termination  (if susceptible to correction) are not corrected by the Company within thirty (30) days of the Company’s receipt  of such notice (“Correction Period”), and (C) the Participant terminates his or her employment no later than thirty  (30) days following the Correction Period.               (j)   “NAREIT Shopping Center Index” means the NAREIT Shopping Centers Index, or, in  the event such index is discontinued, a comparable index selected by the Administrator in good faith.                      (k)   “Performance Period” means the period set forth on Exhibit A attached hereto.                      (l)   “Performance  Vested  RSUs”  means  (i)  the  AFFO  Vested  RSUs,  plus  (ii)  the  Same- Property NOI Growth Vested RSUs.                      (m)   “Qualifying  Termination” means  a  Termination  of  Service  by  reason  of  (i)  the  Participant’s death, (ii) a termination by the Company or any Subsidiary due to the Participant’s Disability, or (iii)  a termination by the Company or any Subsidiary other than for Cause or by the Participant for Good Reason.                       (n)   “Restrictions” means the exposure to forfeiture set forth in Sections 5(a) and 6(a).                      (o)   “Same-Property NOI Growth Performance Vesting Percentage” means the percentage  determined as set forth on Exhibit A attached hereto, which is a function of the Shopping Center Index Relative  Performance during the Performance Period.                            (p)   “Same-Property NOI Growth RSUs” means the number of RSUs designated as Same- Property NOI Growth RSUs on Exhibit A attached hereto.                                                                       2 Target LTI to be included for SVPs and above.                                            3  

 

            (q)   “Same-Property NOI Growth Vested RSUs” means the product of (i) the total number of  Same-Property  NOI  Growth  RSUs  and  (ii)  the  applicable  Same-Property  NOI  Growth  Performance  Vesting  Percentage.                      (r)   “Service  Provider”  means  an  Employee,  Consultant  or  member  of the  Board,  as  applicable.                      (s)   “Shopping  Center  Index Relative  Performance” means  the  Company Same-Property  NOI  Growth compared  to  the Shopping  Center  Index  Same-Property NOI  Growth,  expressed  as  a  percentile  ranking against the members of the NAREIT Shopping Center Index.                            (t)   “Shopping Center Index Same-Property NOI Growth” means the average annual growth  rate,  expressed  as  a  percentage  (rounded  to  the  nearest  tenth  of  a  percent  (0.1%)), in  the  same-property  net  operating income of each of the members of the NAREIT Shopping Center Index during the Performance Period,  as reported by NAREIT.                      (u)   “Unvested RSU” means any RSU that has not become vested pursuant to Section 5 or 6  hereof and remains subject to the Restrictions.                4.    RSUs and Dividend Equivalents Subject to the Plan; Ownership and Transfer Restrictions.                (a)   The RSUs and Dividend Equivalents are subject to the terms, definitions and provisions  of the Plan, which is incorporated herein by reference, including, without limitation, the restrictions on transfer set  forth in Section 9.3 of the Plan and the REIT restrictions set forth in Section 11.7 of the Plan.               (b)   Without  limiting  the  foregoing,  the  RSUs  and  Common  Stock  issuable  with  respect  thereto shall be subject to the restrictions on ownership and transfer set forth in the charter of the Company, as  amended and supplemented from time to time.         5.    Vesting.               (a)   Performance Vesting.  As soon as reasonably practicable (but in no event more than 45  days) following the completion of the Performance Period, the Administrator shall determine the Company AFFO  per Share, Company Same-Property NOI Growth, the Shopping Center Index Same-Property NOI Growth, the  Shopping  Center  Index Relative  Performance,  the AFFO Performance  Vesting  Percentage,  the Same-Property  NOI Growth Performance Vesting Percentage and the number of RSUs granted hereby that have become AFFO  Vested RSUs, Same-Property NOI Growth Vested RSUs and Performance Vested RSUs, in each case as of the  completion of the Performance Period.  Subject to Sections 5(b), 6(b) and 6(c) below, upon such determination by  the  Administrator,  the  Restrictions  set  forth  in  Section  6(a) below applicable  to  any  outstanding  Performance  Vested RSUs (if  any)  shall  lapse  and  such  Performance  Vested RSUs shall  become  vested,  subject  to the  Participant’s continued status as a Service Provider through such vesting date.  Any RSUs granted hereby which  do not satisfy the requirements to become Performance Vested RSUs as of the completion of the Performance  Period  will  automatically  be  cancelled  and  forfeited  without  payment  of  any  consideration  therefor,  and  the  Participant shall have no further right to or interest in such RSUs.               (b)   Change in Control.  Notwithstanding the foregoing, in the event that a Change in Control  occurs prior to the completion of the Performance Period and the Participant has not incurred a Termination of  Service prior to such Change in Control, the Restrictions shall lapse with respect to a number of RSUs equal to  the  number  of  RSUs  which  would  be  Performance  Vested  RSUs  (if  any) assuming  the  completion  of  the  Performance Period as of (i) the date of the Change in Control, with respect to the determination of the AFFO  Vested RSUs, or (ii) the last day of the Company’s most recently completed fiscal quarter preceding the date of                                             4  

 

the Change in Control, with respect to the determination of the Same-Property NOI Growth Vested RSUs (such  number of RSUs, the “CIC RSUs”), and such RSUs shall, immediately prior to such Change in Control, become  vested  and  shall be  deemed  to be  Performance  Vested RSUs.  For  purposes  of determining the  AFFO Vested  RSUs in accordance with the preceding sentence, the AFFO Performance Vesting Percentage shall be determined  using  pro-rated  threshold,  target  and  maximum  level  goals  based  on  the  number  of  days  elapsed  during  the  Performance  Period  prior  to  the  date  of  the  Change  in  Control.  Any  RSUs  that  do  not  become  vested  in  accordance with the this Section 5(b) will automatically be cancelled and forfeited as of the date of the Change in  Control  without  payment  of  any  consideration  therefor,  and  the  Participant  shall  have  no  further  right  to  or  interest in such RSUs.         6.    Effect of Termination of Service.               (a)   Termination  of  Service.  Subject  to  Sections  6(b) and  (c) below,  in  the  event  of  the  Participant’s  Termination  of  Service  for  any  reason,  any  and  all  Unvested RSUs as  of  the  date  of  such  Termination of Service will automatically and without further action be cancelled and forfeited without payment  of any consideration therefor, and the Participant shall have no further right to or interest in such Unvested RSUs.   Except  as  set  forth  in  Sections  6(b)  and  (c)  below,  no RSUs which  have  not  vested  as  of  the  date  of  the  Participant’s Termination of Service shall thereafter become vested.               (b)   Qualifying Termination Prior to Completion of Performance Period.  In the event that the  Participant incurs a Qualifying Termination prior to the completion of the Performance Period, the RSUs granted  hereby shall remain outstanding and eligible to become Performance Vested RSUs in accordance with Section  5(a)  above.  In  such  event,  following  the  completion  of  the  Performance  Period,  the  Restrictions  set  forth  in  Section 5(a) above shall lapse with respect to a number of RSUs equal to the product of (x) the number of RSUs  that become Performance Vested RSUs in accordance with Section 5(a) above (if any) as of the completion of the  Performance Period, and (y) a fraction, the numerator of which is the number of days elapsed from the first day of  the  Performance  Period  through  and  including  the  date  of the  Participant’s Qualifying  Termination,  and  the  denominator of which is the number of days in the completed Performance Period, and such RSUs shall become  vested and shall be deemed to be Performance Vested RSUs.  Any RSUs that do not become vested in accordance  with the preceding sentence will automatically be cancelled and forfeited as of the completion of the Performance  Period without payment of any consideration therefor, and the Participant shall have no further right or interest in  or with respect to such RSUs.               (c)   Qualifying Termination Following Completion of Performance Period.  In the event that  the Participant incurs a Qualifying Termination following the completion of the Performance Period but prior to  the  date  on  which  vested  RSUs  are  paid,  the  RSUs  granted  hereby  shall  remain  outstanding  and  eligible  to  become Performance Vested RSUs in accordance with Section 5(a) above.  Any RSUs that do not become vested  in accordance with the preceding sentence will automatically be cancelled and forfeited without payment of any  consideration therefor, and the Participant shall have no further right or interest in or with respect to such RSUs.         7.    Payment.  Payments in respect of any RSUs that vest in accordance herewith shall be made to the  Participant (or in the event of the Participant’s death, to his or her estate) in whole Shares, and any fractional  Share will be rounded (or paid in cash) as determined by the Company; provided, however, that in no event shall  the aggregate number of RSUs that vest or become payable hereunder exceed the total number of RSUs set forth  in  Section  1  of  this  Agreement.   The  Company  shall  make  such  payments  as  soon  as  practicable  after  the  applicable vesting date, but in any event within twenty (20) days after such vesting date, provided that, in the  event of vesting upon a  Change  in Control under Section 5(b) above, such payment shall be  made or deemed  made immediately preceding and effective upon the occurrence of such Change in Control.         8.    Determinations by Administrator.  Notwithstanding anything contained herein, all determinations,  interpretations and assumptions relating to the vesting of the RSUs (including, without limitation, determinations,                                             5  

 

interpretations and assumptions with respect to Company AFFO per Share, Company Same-Property NOI Growth  and Shopping Center Index Same-Property NOI Growth) shall be made by the Administrator and shall be applied  consistently  and  uniformly  to  all  similar  Awards  granted  under  the  Plan.   In  making  such  determinations,  the  Administrator may  employ  attorneys,  consultants,  accountants,  appraisers,  brokers,  or  other  persons,  and  the  Administrator, the Board, the Company and its officers and directors shall be entitled to rely upon the advice,  opinions or valuations of any such persons.  All actions taken and all interpretations and determinations made by  the Administrator in  good  faith  and  absent  manifest  error  shall  be  final  and  binding  upon  the Participant,  the  Company and all other interested persons.  In addition, the Administrator, in its discretion, may adjust or modify  the  methodology  for  calculations  relating  to  the  vesting  of  the RSUs (including,  without  limitation,  the  methodology  for  calculating Company  AFFO  per  Share, Company Same-Property NOI  Growth and Shopping  Center  Index Same-Property NOI Growth),  other  than  the AFFO Performance  Vesting  Percentage and  Same- Property NOI Growth Performance Vesting Percentage, as necessary or desirable to account for events which, in  the discretion of the Administrator, are not considered indicative of Company performance, which may include  events such as the issuance of new Common Stock, stock repurchases, stock splits, issuances and/or exercises of  stock grants or stock options, and similar events, all in order to properly reflect the Company’s intent with respect  to  the  performance  objectives  underlying  the RSUs or  to  prevent  dilution  or  enlargement  of  the  benefits  or  potential benefits intended to be made available with respect to the RSUs.         9.    Restrictions on New RSUs or Shares.  In the event that the RSUs or the Shares underlying the  RSUs are changed into or exchanged for a different number or kind of securities of the Company or of another  corporation or other entity by reason of merger, consolidation, recapitalization, reclassification, stock split, stock  dividend  or  combination  of  shares,  such  new  or  additional  or  different  securities  which  are  issued  upon  conversion of or in exchange or substitution for RSUs or the Shares underlying the RSUs which are then subject  to  vesting  shall  be  subject  to  the  same  vesting  conditions  as  such  RSUs  or  Shares,  as  applicable,  unless  the  Administrator provides for the vesting of the RSUs or the Shares underlying the RSUs, as applicable.         10.   Conditions to Issuance of Shares.  Shares issued as payment for the RSUs will be issued out of  the  Company’s  authorized  but  unissued  Shares.   Upon  issuance,  such  Shares  shall  be  fully  paid  and  nonassessable.  The Shares issued pursuant to this Agreement shall be held in book-entry form and no certificates  shall be issued therefor.  In addition to the other requirements set forth herein, the Shares issued as payment for  the RSUs shall be issued only upon the fulfillment of all of the following conditions:               (a)   In the event that the Common Stock is listed on an established securities exchange, the  admission of such Shares to listing on such exchange;               (b)   The completion of any registration or other qualification of such shares under any state or  federal  law  or  under  rulings  or  regulations  of  the  Securities  and  Exchange  Commission  or  of  any  other  governmental  regulatory  body,  which  the  Administrator  shall,  in  its  absolute  discretion,  deem  necessary  or  advisable;               (c)   The obtaining of any approval or other clearance from any state or federal governmental  agency which the Administrator shall, in its absolute discretion, determine to be necessary or advisable;               (d)   The lapse of such reasonable period of time as the Administrator may from time to time  establish for reasons of administrative convenience; and               (e)   The  receipt  by  the  Company  of  full  payment  for  any  applicable  withholding  or  other  employment  tax  or  required  payments  with  respect  to  any  such  Shares  to  the  Company  with  respect  to  the  issuance or vesting of such Shares.                                             6  

 

      In  the  event  that  the  Company  delays  a  distribution  or  payment  in  settlement  of  RSUs  because  it  reasonably determines that the issuance of Shares in settlement of RSUs will violate federal securities laws or  other  applicable  law,  such  distribution  or  payment  shall  be  made  at  the  earliest  date  at  which  the  Company  reasonably determines that the making of such distribution or payment will not cause such violation, as required  by Treasury Regulation Section 1.409A-2(b)(7)(ii).  The Company shall not delay any payment if such delay will  result in a violation of Section 409A of the Code.         11.   Rights  as  Stockholder.   Neither  the  Participant  nor  any  person  claiming  under  or  through  the  Participant will have any of the rights or privileges of a stockholder of the Company in respect of any Shares  deliverable hereunder unless and until such Shares will have been issued, recorded on the records of the Company  or its transfer agents or registrars, and delivered to the Participant or any person claiming under or through the  Participant.         12.   Tax  Withholding.  The  Company  or  any  Subsidiary  shall  have  the  authority  and  the  right  to  deduct or withhold, or require the Participant to remit to such entity, an amount sufficient to satisfy federal, state,  local and foreign taxes (including the Participant’s FICA obligation) required by law to be withheld with respect  to the issuance, vesting or payment of the RSUs and the Dividend Equivalents.  The Administrator may in its  discretion  and  in  satisfaction  of  the  foregoing  requirement  or  in  satisfaction  of  such  additional  withholding  obligations  as  the  Participant  may  have  elected,  allow the  Participant  to  elect  to  have  the  Company  or  the  Subsidiary (as applicable) withhold Shares otherwise issuable under such award (or allow the return of Shares)  having a Fair Market Value equal to the sums to be withheld.  Notwithstanding any other provision of the Plan or  this Agreement, the number of Shares which may be withheld with respect to the issuance, vesting or payment of  the  RSUs  in  order  to  satisfy  the  Participant’s  income  and  payroll  tax  liabilities  with  respect  to  the  issuance,  vesting or payment of the RSUs and the Dividend Equivalents shall be limited to the number of shares which have  a fair market value on the date of withholding no greater than the aggregate amount of such liabilities based on the  maximum  statutory  withholding  rates  in  the  Participant’s  applicable  jurisdictions  for  federal,  state,  local  and  foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income.                13.   Remedies.  The Participant shall be liable to the Company for all costs and damages, including  incidental  and  consequential  damages,  resulting  from  a  disposition  of  the  RSUs  which  is  in  violation  of  the  provisions of this Agreement.  Without limiting the generality of the foregoing, the Participant agrees that the  Company  shall  be  entitled  to  obtain  specific  performance  of  the  obligations  of  the  Participant  under  this  Agreement and immediate injunctive relief in the event any action or proceeding is brought in equity to enforce  the same.  The Participant will not urge as a defense that there is an adequate remedy at law.                14.   Restrictions on Public Sale by the Participant.  To the extent not inconsistent with applicable law,  the Participant agrees not to effect any sale or distribution of the RSUs or the Shares underlying the RSUs or any  similar  security  of  the  Company,  or  any  securities  convertible  into  or  exchangeable  or  exercisable  for  such  securities, including a sale pursuant to Rule 144 under the Securities Act, during the fourteen (14) days prior to,  and during the up to 90 day period beginning on, the date of the pricing of any public or private debt or equity  securities offering by the Company (except as part of such offering), if and to the extent requested in writing by  the  Company  in  the  case  of  a  non-underwritten  public  or  private offering  or  if  and  to the  extent  requested  in  writing by the managing underwriter or underwriters (or initial purchaser or initial purchasers, as the case may be)  and consented to by the Company, which consent may be given or withheld in the Company’s sole and absolute  discretion, in the case of an underwritten public or private offering (such agreement to be in the form of a lock-up  agreement  provided  by  the  Company,  managing  underwriter  or  underwriters,  or  initial  purchaser  or  initial  purchasers, as the case may be).                15.   Conformity to Securities Laws.  The Participant acknowledges that the Plan and this Agreement  are intended to conform to the extent necessary with all provisions of all applicable federal and state laws, rules  and regulations (including, but not limited to the Securities Act and the Exchange Act and any and all regulations                                             7  

 

and rules promulgated by the Securities and Exchange Commission thereunder, including without limitation the  applicable  exemptive  conditions  of  Rule  16b-3  of  the  Exchange  Act)  and  to  such  approvals  by  any  listing,  regulatory or other governmental authority as may, in the opinion of counsel for the Company, be necessary or  advisable  in  connection  therewith.   Notwithstanding  anything  herein  to  the  contrary,  the  Plan  shall  be  administered, and the RSUs are granted, only in such a manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law, the Plan, this Agreement and the RSUs shall be deemed amended to  the extent necessary to conform to such laws, rules and regulations.                16.   Code Section 409A.  To the extent applicable, this Agreement shall be interpreted in accordance  with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued  thereunder, including  without  limitation  any  such  regulations  or  other  guidance  that  may  be  issued  after  the  effective date of this Agreement.  Notwithstanding any provision of this Agreement to the contrary, in the event  that following the effective date of this Agreement, the Company determines that the RSUs may be subject to  Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury  guidance as may be issued after the effective date of this Agreement ), the Company may adopt such amendments  to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with  retroactive effect ), or take any other actions, that the Company determines are necessary or appropriate to (a)  exempt  the RSUs  from  Section  409A  of  the  Code  and/or  preserve  the  intended  tax  treatment  of  the  benefits  provided with respect to the RSUs, or (b) comply with the requirements of Section 409A of the Code and related  Department of Treasury guidance; provided, however, that this Section 16 shall not create any obligation on the  part of the Company or any Subsidiary to adopt any such amendment, policy or procedure or take any such other  action.  For purposes of Section 409A of the Code, any right to a series of payments pursuant to this Agreement  shall be treated as a right to a series of separate payments.                17.   No Right to Continued Service.  Nothing in this Agreement shall confer upon the Participant any  right to continue as a Service Provider of the Company or any Subsidiary, or shall interfere with or restrict in any  way the rights of the Company or any Subsidiary, which rights are hereby expressly reserved, to discharge the  Participant at any time for any reason whatsoever, with or without cause.                18.   Miscellaneous.                      (a)   Incorporation of the Plan.  This Agreement is made under and subject to and governed by  all  of  the  terms  and  conditions  of  the  Plan.   In  the  event  of  any  discrepancy  or  inconsistency  between  this  Agreement  and  the  Plan,  the  terms  and  conditions  of  the  Plan shall  control.   By  signing  this  Agreement,  the  Participant confirms that he or she has received access to a copy of the Plan and has had an opportunity to review  the contents thereof.                            (b)   Clawback.  This award, the RSUs and the Shares issuable with respect to the RSUs shall  be subject to any clawback or recoupment policy currently in effect or as may be adopted by the Company, as  may be amended from time to time.                      (c)   Successors  and  Assigns.   Subject  to  the  limitations  set  forth  in  this  Agreement,  this  Agreement shall  be  binding  upon,  and  inure  to  the  benefit  of,  the  executors,  administrators,  heirs,  legal  representatives, successors and assigns of the parties hereto, including, without limitation, any business entity that  succeeds to the business of the Company.                            (d)   Entire Agreement; Amendments and Waivers.  This Agreement, together with the Plan,  constitutes the entire agreement among the parties pertaining to the subject matter hereof and supersedes all prior  agreements, understandings, negotiations and discussions, whether oral or written, of the parties.  In the event that  the  provisions  of such  other  agreement  conflict  or are  inconsistent  with  the  provisions  of  this  Agreement,  the  provisions of this Agreement shall control.  Except as set forth in Section 16 above, this Agreement may not be                                            8  

 

amended except in an instrument in writing signed on behalf of each of the parties hereto and approved by the  Administrator.  No amendment, supplement, modification or waiver of this Agreement shall be binding unless  executed in writing by the party to be bound thereby.  No waiver of any of the provisions of this Agreement shall  be  deemed  or  shall  constitute  a  waiver  of  any  other  provision  hereof  (whether  or  not  similar),  nor  shall  such  waiver constitute a continuing waiver unless otherwise expressly provided.                            (e)   Severability.  If for any reason one or more of the provisions contained in this Agreement  or in any other instrument referred to herein shall, for any reason, be held to be invalid, illegal or unenforceable in  any respect, then to the maximum extent permitted by law, such invalidity, illegality or unenforceability shall not  affect any other provision of this Agreement or any other such instrument.                      (f)   Titles.  The titles, captions or headings of the Sections herein are inserted for convenience  of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.                      (g)   Counterparts.  This Agreement may be executed in any number of counterparts, any of  which may be executed and transmitted by facsimile (including, without limitation, transfer by .pdf), and each of  which  shall  be  deemed  to  be  an  original,  but  all  of  which  together  shall  be  deemed  to  be  one  and  the  same  instrument.                            (h)   Governing Law.  This Agreement shall be governed by and construed in accordance with  the laws of the State of Maryland applicable to contracts entered into and wholly to be performed within the State  of Maryland by Maryland residents, without regard to any otherwise governing principles of conflicts of law that  would choose the law of any state other than the State of Maryland.                      (i)   Notices.  Any  notice  to  be  given  by  the  Participant  under  the  terms  of  this  Agreement  shall  be  addressed to  the  Legal  Department  of the  Company  at  the  Company’s  address  set forth in Exhibit  A  attached hereto.  Any notice to be given to the Participant shall be addressed to him or her at the Participant’s then  current address on the books and records of the Company.  By a notice given pursuant to this Section 18(i), either  party  may  hereafter  designate  a  different  address  for  notices  to  be  given  to  him  or  her.   Any  notice  which  is  required  to  be  given  to  the  Participant  shall,  if  the  Participant  is  then  deceased,  be  given  to  the  Participant’s  personal  representative  if  such  representative  has  previously  informed  the  Company  of  his  or  her  status  and  address by written notice under this Section 18(i) (and the Company shall be entitled to rely on any such notice  provided to it that it in good faith believes to be true and correct, with no duty of inquiry).  Any notice required or  permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or  upon deposit in the United States mail by certified mail, with postage and fees prepaid, addressed as set forth  above or upon confirmation of delivery by a nationally recognized overnight delivery service.                                                                                      9  

 

IN  WITNESS  WHEREOF,  the  parties  have  executed  this  Agreement  as  of  the  day  and  year  first  above  written.                                                 INVENTRUST PROPERTIES CORP.,                                           a Maryland corporation                                                                                                                                                                        By: __________________________________                                          Name:                                           Title:                                                                                                                                The  Participant  hereby  accepts  and  agrees  to  be                                          bound  by  all  of  the  terms  and  conditions  of  this                                          Agreement.                                                                                    ____________________________                                          <PARTC_NAME>                                           10  

 

                                      Exhibit A                                 Definitions and Notice Address   Definitions    Capitalized terms not defined herein shall have the meanings set forth in the Performance-Based Restricted Stock  Unit Agreement to which this Exhibit is attached.    “AFFO RSUs” means [_______] RSUs.3    “AFFO Performance  Vesting  Percentage”  means  a  function  of  the  Company  AFFO  per  Share  during  the  Performance Period, and shall be determined as set forth below:                                                                    AFFO                                                                Performance                                         Company AFFO per         Vesting                                               Share             Percentage                                                  < $0.369              0%            “Threshold Level”                     > $0.369             25%            “Target Level”                        > $0.410             50%            “Maximum Level”                       >$0.451             100%    In  the  event  that  the  Company  AFFO  per  Share falls  between  the  Threshold  Level  and  the  Target  Level,  the  AFFO Performance Vesting Percentage shall be determined using straight line linear interpolation between the  Threshold Level and Target Level AFFO Performance Vesting Percentages specified above; and in the event that  the Company AFFO per Share falls between the Target Level and the Maximum Level, the AFFO Performance  Vesting  Percentage  shall  be  determined  using  straight  line  linear  interpolation  between  the  Target  Level  and  Maximum Level AFFO Performance Vesting Percentages specified above.    “Performance Period” means the period commencing on January 1, 2019 and ending on December 31, 2021.    “Same-Property NOI Growth RSUs” means [_______] RSUs.4    “Same-Property NOI Growth Performance Vesting Percentage” means a function of the Shopping Center Index  Relative Performance during the Performance Period, and shall be determined as set forth below:                                                                    Same-                                                                Property                                                                NOI Growth                                           Shopping Center      Performance                                            Index Relative        Vesting                                            Performance          Percentage                                             < 25th Percentile          0%            “Threshold Level”                > 25th Percentile         25%            “Target Level”                   > 50th Percentile         50%            “Maximum Level”                  >85th Percentile         100%                                                        3 Note to Draft:  AFFO RSUs will represent 50% of total performance-based RSUs granted.  4 Note to Draft:  Same-Property NOI Growth RSUs will represent 50% of total performance-based RSUs granted.                                         Exhibit A  

 

  In  the  event  that  the  Shopping  Center  Index  Relative  Performance  falls  between  the  Threshold  Level and  the  Target Level, the Same-Property NOI Growth Performance Vesting Percentage shall be determined using straight  line linear interpolation between the Threshold Level and Target Level Same-Property NOI Growth Performance  Vesting Percentages specified above; and in the event that the Shopping Center Index Relative Performance falls  between  the  Target  Level  and  the  Maximum  Level,  the  Same-Property  NOI  Growth  Performance  Vesting  Percentage shall be determined using straight line linear interpolation between the Target Level and Maximum  Level Same-Property NOI Growth Performance Vesting Percentages specified above.    Company Address           3025 Highland Parkway        Suite 350        Downers Grove, Illinois 60515                                          Exhibit AExhibit

Exhibit 10.1

PERFORMANCE-BASED RESTRICTED STOCK UNIT AGREEMENT
FOR EMPLOYEES UNDER THE
CIRCOR INTERNATIONAL, INC.
2014 STOCK OPTION AND INCENTIVE PLAN

Name of Awardee: Participant Name
Awardee Solium Number:  XXXX
Target Number of Performance Based Restricted Stock Units:   XXXX (the “Target Performance Based Award”)
Award Date: March 4, 2019

Pursuant to the CIRCOR International, Inc. 2014 Stock Option and Incentive Plan (the “Plan”), CIRCOR International, Inc. (the “Company”) hereby grants to the Awardee named above, who is an officer, director or employee of the Company or any of its Subsidiaries, an award (the “Award”) of Performance Based Restricted Stock Units (“RSUs”) subject to the terms and conditions set forth in this Performance-Based Restricted Stock Unit Agreement (the “Award Agreement”) and in the Plan.  Except as specifically provided below, an RSU shall only be settled for Stock (as defined below) if it has been earned under paragraph 1 and has become vested as provided in either paragraph 2 or paragraph 4 below.

1.    Earned RSUs.

(a)    Subject to paragraph 1(d) below, one third of the Target Number of Performance Based RSUs may be earned during the 2019 fiscal year (“Tranche 1”), the twenty-four month period beginning on January 1, 2019 (“Tranche 2”) and the thirty-six month period beginning on January 1, 2019 (“Tranche 3”) (each, a “Tranche” and collective, the “Tranches”).

(b)    The number of RSUs earned during each Tranche shall be based fifty percent on the Company’s Adjusted Free Cash Flow (“Adjusted FCF”) and Adjusted Operating Margin (“Adjusted OM” or “AOM”) for the period of time corresponding to that Tranche.

(i)    “Free Cash Flow” or “FCF” with respect to a fiscal year is calculated by adding the Company’s cash provided by operating activities less capital expenditures for that year.

(ii)    “Operating Margin” or “OM” with respect to a fiscal year is calculated by dividing the Company’s income from operations by the Company’s net sales for that year, where income from operations and net sales are each as set forth in the audited consolidated financial statements of the Company.

The Committee shall determine in its discretion Adjusted FCF and AOM based on FCF and OM, respectively after adjusting for events not considered in determining the initial performance targets. Such adjustments, include but are not limited to, restructuring and restructuring related charges; goodwill impairment charges, changes in the law or in accounting standards; the impact of significant acquisitions and divestitures of businesses; and other non-recurring financial statement impacts to net earnings from continuing operations, fixed assets and/or working capital disclosed in the Company’s audited consolidated financial statements, and notes thereto, in order to keep the financial statements from being misleading.

(c)    Subject to paragraph 4 below, the percentage of RSUs earned with respect to a Tranche based on Adjusted FCF and AOM shall be determined pursuant to the chart set forth in Exhibit A to this Award Agreement.  For purposes of this paragraph 1(c), the “Performance Goals” for the Award shall be Adjusted FCF and AOM.

(d)    Unearned RSUs for a Tranche due to not attaining performance at Threshold for a Performance Goal as set forth on Exhibit A (the “Below Threshold RSUs”) may be partially earned in the next following Tranche.  The number of Below Threshold RSUs earned based on performance during the 

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next following Tranche shall be calculated based on the earned percentage for that Performance Goal earned during such next following Tranche, but in no event at more than 100% of Target as set forth in Exhibit A for that Performance Goal.  In addition, in the event that there are Below Threshold RSUs allocable to Tranche 1 and Tranche 2 with respect to a Performance Goal, such RSUs may be earned based on performance during Tranche 3, with the number of such Below Threshold RSUs being calculated based on the earned percentage for that Performance Goal during Tranche 3, but in no event at more than 100% of Target as set forth in Exhibit A for that Performance Goal.

2.    Vesting Schedule.  Unless otherwise set forth in this Award Agreement, Tranche 1 shall vest on the last day of the 2019 fiscal year, Tranche 2 shall vest on December 31, 2020 and Tranche 3 shall vest on December 31, 2021, in each case assuming the Awardee is employed on the relevant vesting date.  RSUs vesting under this paragraph 2 shall be settled within sixty (60) days of the applicable vesting date.  In the event of a Change in Control prior to the end of a Tranche, there shall be immediate vesting of that number of RSUs equaling the greater of (i) the portion of the Target Performance Based Award attributable to that Tranche and (ii) that amount that is determined by applying paragraph 1 above except that the period of time with respect to any such uncompleted Tranche shall be deemed to consist of those fiscal years or portions of fiscal years that have been completed most recently prior to the Change in Control.  If a Change in Control occurs following the end of the last Tranche, there shall be immediate vesting of that number of earned RSUs determined in accordance with paragraph 1 above.  RSUs that vested under this paragraph 2 shall be deemed to be earned under this Award Agreement, and shall be distributed as soon as reasonably practicable after a Change in Control  except as provided under paragraph 6 below.

3.    Deferral of Award.

a)    Subject to paragraph 2 above (regarding vesting in connection with a Change in Control), each vested RSU entitles Awardee to receive one share of the Company’s Common Stock (the “Stock”) on the later of (i) the date on which  such RSU becomes vested under this Agreement or (ii) the end of the deferral period specified by Awardee.  Any deferral period must be expressed as a number of whole years, not less than four (4), beginning on the Award Date.  Such deferral election shall be made within 30 days of the Award Date.  This deferral period will apply only to deferral elections made on the specific Deferral Election Form.  In addition, any such deferral must apply to receipt of all shares of Stock underlying the entire vested Award that are eligible to be deferred under this paragraph 3; for example, a deferral period of seven (7) years would result in Awardee receiving shares of Stock underlying the entire vested Award seven (7) years from the Award Date regardless of the fact that the Earned RSUs may have vested at differing times.  If no deferral period is specified on the Deferral Election Form, Stock will be issued as soon as practicable (but not later than sixty (60) days) after vesting of the RSUs.

b)    Shares of Stock underlying the RSUs shall be issued and delivered to Awardee in accordance with paragraph (a) and upon compliance to the satisfaction of the Committee with all requirements under applicable laws or regulations in connection with such issuance and with the requirements hereof and of the Plan, but in no event later than the end of the calendar year in which the Awardee earned a vested right to payment.  The determination of the Committee as to such compliance shall be final and binding on Awardee.

c)    Until such time as shares of Stock have been issued to Awardee pursuant to paragraph 4 b) above, and except as set forth in paragraph d) below regarding dividends and dividend equivalents, Awardee shall not have any rights as a holder of the shares of Stock underlying this Award including but not limited to voting rights.

d)    Until such time as RSUs have vested pursuant to the terms hereof, dividend equivalents shall be accrued with respect to each share of Stock underlying the RSUs such that, upon vesting of such RSUs, all dividend equivalents so accrued (without interest) with respect to Earned RSUs shall be paid in cash to Awardee.  In addition, with respect to RSUs which have vested but have not been converted into shares of Stock pursuant to a valid deferral election by Awardee, dividends on the shares of Stock underlying such RSUs shall be paid in cash to Awardee upon declaration of such dividends as if Awardee were the owner of the underlying shares of Stock. Notwithstanding the foregoing, no dividends or dividend equivalents shall be accrued or paid for RSUs that are not earned under paragraph 1 above.

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4.    Termination of Employment or Other Business Relationship.  If the Awardee's employment or other business relationship with the Company or a Subsidiary (as defined in the Plan) is terminated for any reason except as otherwise set forth in this paragraph 4, Awardee’s right in any RSUs that are not vested, whether or not earned under paragraph 1 above, shall automatically terminate upon the effective date of such termination of employment or other business relationship with the Company and its Subsidiaries and such RSUs shall be cancelled as provided within the terms of the Plan and shall be of no further force and effect. 

a)Termination Due to Death. If the Awardee’s employment terminates by reason of the Awardee’s death, (excluding death by suicide), the outstanding Target Number of Performance-Based RSUs with respect to any Tranche that is not completed within 60 days of such termination of employment shall be deemed earned and vested as of the Awardee’s date of death and the Company, within 60 days following the effective date of such termination shall issue all outstanding shares of Stock with respect to such RSUs to Awardee’s designated beneficiary or, if there is no designated beneficiary, the Awardee’s estate executor.   In the event, however, that within such 60 day period, a Tranche has been completed, then the number of Performance-Based RSUs to be settled with an issuance of Stock shall be based on the actual results for such Tranche as calculated in accordance with paragraph 1 and such distribution shall be made as soon as reasonably practicable after the end of such Tranche.

b)Termination Due to Disability. If the Awardee’s employment terminates by reason of the Awardee’s qualified disability, (an individual shall be considered disabled if such individual qualifies for receipt of long-term disability benefits under the long-term disability plan then in effect for the Company’s employees), the outstanding Target Number of Performance-Based RSUs with respect to any Tranche that is not completed within 60 days of such termination of employment shall be deemed earned and vested as of the date of such qualifying disability and the Company, within 60  days following the effective date of such termination, shall issue all outstanding shares of Stock with respect to such RSUs to Awardee or, if applicable, the Awardee’s guardian.  In the event, however, that within such 60 day period, a Tranche has been completed, then the number of Performance-Based RSUs to be settled with the issuance of Stock shall be based on the actual results for such Tranche as calculated in accordance with paragraph 1 and such distribution shall be made as soon as reasonably practicable after the end of such Tranche.

c)Termination Due to Retirement. If the Awardee’s employment is terminated by reason of Retirement, Awardee will be entitled to that number of earned RSUs Awardee would have achieved under paragraph 1 with respect to each Tranche but for such Retirement, multiplied by a fraction (but not greater than 1) that is equal to the number of completed fiscal months that the Awardee was employed by the Company after the Award Date divided by the number of months in such Tranche.  The shares underlying such RSUs will be distributed as contemplated under paragraph 2 above as if the Awardee remained employed with the Company; provided, however, that Stock shall not be issued with respect to any vested RSUs for which valid deferral elections have been made until the deferral dates set forth in such deferral elections.  For purposes of this Agreement, “Retirement” means that the Awardee has voluntarily terminated employment with the Company and its Subsidiaries after having completed at least five years of service (as determined under the Company’s 401(k) plan) and attained at least fifty-five (55) years of age and, prior to such employment termination, the Awardee has: (i) given the Company’s Chief Human Relations Officer (“CHRO”) or the Awardee’s immediate supervisor at least three months’ prior written notice (or such shorter period of time approved in writing by the CHRO or your immediate supervisor) of the intended retirement date and (ii) completed transition duties and responsibilities as determined by the CHRO and/or the Awardee’s immediate supervisor during the notice period in a satisfactory manner, as reasonably determined by either of them.

d)Termination for Cause. If the Awardee’s employment terminates for Cause (as defined below), all unvested RSUs shall terminate immediately and be of no further force and effect.  For purposes hereof, unless otherwise provided in an employment agreement between 

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the Company and the Awardee, a termination of employment for “Cause” shall mean, the occurrence of one or more of the following: (i) the Awardee is convicted of, pleads guilty to, or confesses to any felony or any act of fraud, misappropriation or embezzlement which has an immediate and materially adverse effect on the Company or any Subsidiary, as determined by the Administrator (as defined by the Plan) in good faith in its sole discretion; (ii) the Awardee engages in a fraudulent act to the material damage or prejudice of the Company or any Subsidiary or in conduct or activities materially damaging to the property, business or reputation of the Company or any Subsidiary, all as determined by the Administrator in good faith in its sole discretion; (iii) any material act or omission by the Awardee involving malfeasance or negligence in the performance of the Awardee’ s duties to the Company or any Subsidiary to the material detriment of the Company or any Subsidiary, as determined by the Administrator in good faith in its sole discretion, which has not been corrected by the Awardee within thirty (30) days after written notice from the Company of any such act or omission; (iv) failure by the Awardee to comply in any material respect with any written policies or directives of the Company as determined by the Administrator in good faith in its sole discretion, which has not been corrected by the Awardee within ten (10) days after written notice from the Company of such failure; or (v) material breach by the Awardee of any non-competition, non-solicitation, confidentiality or similar agreements between the Awardee and the Company as determined by the Administrator in good faith in its sole discretion.

e)Termination without Cause. If the Awardee’s employment is terminated by the Company without Cause and unless otherwise determined by the Administrator, any portion of this Award that is not vested by time of such termination shall terminate immediately and be of no further force and effect.  

f) Termination of Employment by Awardee. If the Awardee terminates his or her employment, this Award shall terminate immediately upon notice by the Awardee of such termination and be of no further force and effect. 

g)Discretionary Vesting Acceleration.  The Administrator, in its absolute discretion, may accelerate the vesting of the balance, or some lesser portion of the balance, of the unvested RSUs at any time; provided that, the time or schedule of any amount to be settled pursuant to the terms of this Award Agreement that provides for the deferral of compensation under Section 409A, may not be accelerated except as otherwise permitted under Section 409A.  If so accelerated, such RSUs shall be considered as having vested as of the date specified by the Administrator.

h)Miscellaneous. The Administrator’s determination of the reason for termination of the Awardee’s employment shall be conclusive and binding on the Awardee and his or her representatives or legatees.
    
5.     Clawback Provision.  Anything in this Award Agreement to the contrary notwithstanding, the Awardee hereby acknowledges and agrees that any compensation payable under this Award Agreement is subject to any clawback policy of the Company currently in effect or adopted in the future providing for the recovery of erroneously awarded incentive compensation in the event the Company is required to prepare an accounting restatement (“Restatement”) due to the material noncompliance of the Company with any financial reporting requirements under the securities laws, and the Awardee hereby agrees to repay the Company to the extent required by such clawback policy of the Company.  Unless otherwise determined by the Company, in the event that any such Restatement with respect to a period of time within a Tranche becomes necessary, the amount of the Award shall be reduced as required under the Company’s clawback policy as in effect from time to time and the Awardee shall be obligated to return to the Company (at Awardee’s option) either (i) that number of shares of stock issued on account of such RSUs that would not have been earned after giving effect to such Restatement, or (ii) cash equaling the number of such shares times the closing price of the Company’s common stock on the date immediately preceding the date such shares vested.

6.     Section 409A.  

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a)    RSUs under this Award that are not subject to a valid deferral election are generally intended to be exempt from Section 409A of the Code as short-term deferrals and, accordingly, the terms of this Award Agreement shall be construed to preserve such exemption.  To the extent that RSUs granted under this Award Agreement are subject to the requirements of Section 409A, this Award Agreement shall be interpreted and administered in accordance with the intent that the Awardee not be subject to tax under Section 409A.  Neither the Company nor any of its affiliates, shall be liable to any Awardee (or any other individual claiming a benefit through the Awardee) for any tax, interest, or penalties the Awardee might owe as a result of participation in the Plan, and the Company and its affiliates shall have no obligation to indemnify or otherwise protect the Awardee from the obligation to pay any taxes pursuant to Section 409A of the Code.

b)    Anything in this Award Agreement to the contrary notwithstanding, (i) if at the time of the Awardee’s “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the Company determines that the Awardee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Awardee becomes entitled to under this Award Agreement would be considered deferred compensation subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after the Awardee’s separation from service, or (B) the Awardee’s death, (ii) no amount shall be paid immediately upon a Change in Control unless it also qualifies as either a “change in the effective control of a corporation”, a “change in the ownership of a corporation” or a “change in the ownership of a substantial portion of a corporation’s assets” under Treas. Reg. § 1.409A-3(i)(5)(v), and each Tranche of RSUs granted hereunder shall be treated as a separate payment for purposes of Section 409A of the Code.

7.    Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Award shall be subject to and governed by all the terms and conditions of the Plan.  Capitalized terms in this Award Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.

8.    Transferability. This Award Agreement is personal to Awardee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution.  This Award is available, during Awardee's lifetime, only to Awardee, and thereafter, only to Awardee's designated beneficiary or estate.

9.    Tax Withholding.  For CIRCOR employees, the Company is authorized to satisfy the minimum tax withholding obligation by withholding from shares of Stock to be issued a number of shares of Stock with an aggregate Fair Market Value that would satisfy the minimum required tax withholding amount due or such higher amount as may be permitted by the directors from time to time.  For CIRCOR directors, the gross number of shares will be distributed and the director will be required to make necessary tax payments.

10.    Non-Compete/Non-Solicitation Agreement.  Awardee is receiving the Award provided for herein in part because the Company has determined that Awardee is a key contributor to the continued success of the Company.  As such, Awardee is privy to certain proprietary information which the Company considers to be competition sensitive.  The Company, therefore, would be materially harmed were Awardee to leave the Company and perform services on behalf of a competitor or if the Awardee were to solicit (i) customers to do business with a competitor of the Company or (ii) employees of the Company to leave the Company.  Accordingly, in consideration of Awardee’s receipt of the Award, Awardee covenants and agrees that, for a period of two (2) years following the termination of Awardee’s affiliation with the Company (whether as an employee or non-employee director), Awardee shall not, anywhere in the world, own, manage, operate, join, control, promote, invest or participate in or be connected with in any capacity (either as an employee, employer, trustee, consultant, agent, principal, partner, corporate officer, director, creditor, owner or shareholder or in any other individual or representative capacity) with any business individual, partnership, firm, corporation or other entity which is engaged wholly or partly in the design, manufacture, development, distribution, marketing or sales of any products which compete with the Company’s then current lines of 

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business for which Awardee, during the two year period immediately preceding termination of affiliation with the Company, had managerial responsibility or otherwise provided regular services.  Awardee agrees that this provision is reasonable in view of the relevant market for the Company’s products and services and that any breach hereof would result in continuing and irreparable harm to the Company.  The foregoing, however, shall not prevent Awardee from making passive investments in a competitive enterprise whose shares are publicly traded if such investment constitutes less than five percent (5%) of such enterprise’s outstanding capital stock. In addition, Awardee, for a period of two years following the termination of Awardee’s affiliation with the Company shall not directly or indirectly (1) induce, solicit, request or advise any Customers (as defined below) to patronize any business which competes with any business of the Company for which Awardee either (a) has had any management responsibility, (b) has otherwise provided regular services during his affiliation with Company, or (c) has had access to confidential or proprietary information; or (2) entice, solicit, request or advise any employee of the Company to leave the Company’s employment or to otherwise accept employment (or other affiliation) with any person, firm or business with which Awardee has an employment or consulting relationship.  As used above, “Customers” mean all customers of any such business of the Company.  Notwithstanding the provisions of this paragraph 10, if Awardee is an employee or resident of a state in which non-compete provisions of the type set forth in this paragraph 10 are not enforceable, then the non-compete provisions of this paragraph 10 shall not apply; the non-solicitation provisions of this paragraph 10, however, shall continue to apply.  In addition, in the event that a court of competent jurisdiction determines that any of the restrictions set forth in this paragraph 10 are impermissible in scope and/or duration, Awardee and the Company intend that such court shall revise such scope and/or duration as the court deems reasonable rather than invalidating any such restrictions.
 
11.    Effect of Other Agreements.  If Awardee is a party to any other agreement with the Company and any provisions set forth in such employment agreement conflict with the provisions set forth in this Performance-Based Restricted Stock Unit Award Agreement, the provisions set forth in such employment agreement shall override such conflicting provisions set forth herein.

12.    Miscellaneous.

(a)    Notice hereunder shall be given to the Company at its principal place of business, and shall be given to Awardee at the address set forth below, or in either case at such other address as one party may subsequently furnish to the other party in writing. 

(b)    This Award does not confer upon Awardee any rights with respect to continuance of employment by the Company or any Subsidiary.

(c)    Pursuant to Section 14 of the Plan, the Committee may at any time amend or cancel any outstanding portion of this Award, but no such action may be taken which adversely affects Awardee's rights under this Award Agreement without Awardee's consent.

                            

CIRCOR INTERNATIONAL, INC.
                                

By:

                                                               Scott Buckhout

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Title:   President and CEO    

The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned.
Date:    

Name:    Awardee
 

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