Document:

Exhibit

        

Exhibit 10.35
EXHIBIT A
XCEL ENERGY INC.
2015 OMNIBUS INCENTIVE PLAN
AWARD AGREEMENT TERMS AND CONDITIONS
These Award Agreement Terms and Conditions (“Terms and Conditions”) comprise part of an Award Agreement evidencing an Award of Restricted Stock Units and/or an Award of Performance Share Units (collectively, “Units”) granted under the Xcel Energy Inc. 2015 Omnibus Incentive Plan (the “Plan”).   
1.    Granting of Award.  The Company has granted to you, subject to the terms and conditions in this Award Agreement and the Plan, an Award of the number of Restricted Stock Units and/or an Award of the number of Performance Share Units as specified in the Notice of Grant to which these Terms and Conditions are attached.  The grant of such Award(s) is effective as of the applicable Grant Date set forth in the Notice of Grant.  As used in these Terms and Conditions, the term “Award” refers to each Award described in the Notice of Grant, and includes additional Units credited with respect to that Award upon the deemed reinvestment of Dividend Equivalents, if any, that are credited in accordance with the Notice of Grant.  
2.    Nature of Units and Shareholder Rights.  The Units subject to the Award(s) will be credited to an account in your name maintained by the Company.  This account shall be unfunded and maintained for bookkeeping purposes only, with the Units simply representing an unfunded and unsecured obligation of the Company.  The Units subject to the Award(s) may not be sold, assigned, transferred, pledged or otherwise encumbered by you, and do not entitle you to any rights as a shareholder of the Company.
3.    Termination of Service.  
(a)    Upon your Termination of Service due to death during any Period of Restriction or Performance Period, as applicable, your unvested Award(s) (at target levels, if applicable), including any credited Dividend Equivalent Units, shall immediately vest one hundred percent (100%) and shall be paid as soon as administratively feasible in accordance with Section 5(b) hereof.
(b)    Upon your Termination of Service due to Disability during any Period of Restriction or Performance Period, as applicable, your unvested Award(s) (at target levels, if applicable), together with any credited dividend equivalent units, shall immediately vest one hundred percent (100%) and shall be paid to you (or your personal representative) as soon as administratively feasible in cash, shares or a combination thereof as provided in Section 5(a) hereof.
(c)    Except as may otherwise be provided in the Notice of Grant, upon a Termination of service due to your Retirement (as defined in the Notice of Grant or, if not defined there, as defined in any retirement plan of Xcel Energy in which you participate):
(i)any unvested Performance Share Unit Award will continue to be eligible to vest on the applicable Vesting Date in accordance with the terms of the applicable Performance Goal Annex if your Retirement occurs after the expiration of the applicable Performance Period but before the applicable Vesting Date; and 

(ii)any unvested Restricted Stock Unit Award shall be forfeited on the date of your Retirement.

(d)    Upon your Termination of Service prior to the Vesting Date of an Award under any circumstances other than those set forth in Sections 3(a), (b) and (c) above, such unvested Award shall be forfeited on the date of such termination.  
4.    Vesting of Awards. 
(a)    Subject to Section 3 above, a Performance Share Unit Award shall vest only if, and to the extent, any one or more of the performance goals set forth in the Performance Goal Annex have been achieved during the applicable Performance Period and such performance is certified in writing by the Committee.  If, and to the extent that, any one or more of the performance goals have not been achieved during the applicable Performance Period, your rights to the portion of the Award tied to such unachieved performance goal shall be immediately and irrevocably forfeited as of the last day of such Performance Period (unless previously forfeited pursuant to Section 3 above).  The Committee shall determine, in its sole discretion, and certify in accordance with the requirements of Section 162(m) of the Code, whether and to what extent the performance goals have been satisfied as soon practicable after the completion of the applicable Performance Period (the date on which the Committee certifies the satisfaction of the performance goals set forth on the attached Performance Goal Annex shall be the “Vesting Date” for the applicable Performance Share Unit Award).  
(b)    Subject to Section 3 above, a Restricted Stock Unit Award shall vest only if, and to the extent that, any one or more of the vesting conditions set forth in the Notice of Grant or, if applicable, in a Vesting Conditions Annex have been satisfied during the applicable Period of Restriction or Performance Period.  If, and to the extent that, any one or more of the vesting conditions have not been satisfied during the applicable Period of Restriction or Performance Period, your rights to any portion of the Award tied to such unachieved vesting condition shall be immediately and irrevocably forfeited as of the applicable Vesting Date (unless previously forfeited pursuant to Section 3 above).  
5.    Payment of Vested Awards.
(a)    Timing of payment.  Unless and to the extent you have made an effective election to defer the settlement of the Award as provided in Section 5(c) below, as soon as administratively feasible following the Vesting Date, but in no event later than March 15th of the year following the calendar year in which the Performance Period or Period of Restriction, as applicable, expires, the Company shall cause to be paid to you in settlement of each Unit (including any credited Dividend Equivalent Units) comprising a vested Award, one Share or cash in an amount equal to the Fair Market Value as of the Vesting Date of one such Share (or a combination of cash and Shares with respect to the entire Award), the form of such payment to be as determined by the Committee or, in connection with a Performance Share Unit Award, according to your election made to the extent permitted and within the parameters determined by the Committee and set forth in the applicable Performance Goal Annex.  Payments shall be made in a lump sum.
(b)    Payment upon Death.  In the event of your death, amounts that otherwise would have become payable to you in accordance with Section 3(b) of these Terms and Conditions will be paid in cash, Shares or a combination thereof, to your designated beneficiary (if such beneficiary has been designated in writing in accordance with the Plan, and such writing has been delivered to the Company’s Executive Compensation department), or if no beneficiary is designated, in accordance with Article 19 of the Plan.
(c)    Deferral Election.  If you are determined by the Committee in its sole discretion to be eligible, you may elect to defer to a later date the settlement of Awards that would otherwise occur as provided in Section 5(a), provided that any such election and deferral shall comply with the requirements of Section 409A of the Code. 

6.    Changes in Capitalization of the Company.  If there is any equity restructuring or other change in the Company’s corporate capitalization as described in Section 4.4(a) of the Plan, the Committee shall determine the appropriate adjustment, if any, to each Award as provided in Section 4.4 of the Plan.
7.    Change in Control.  Notwithstanding anything herein to the contrary, in the event of a Change in Control, the Award(s) specified in the Notice of Grant shall be dealt with as provided in Article 17 of the Plan.  If the vesting of an Award is subject, in whole or in part, to the satisfaction of a performance condition, that Award shall be subject to Section 17(c) of the Plan and applicable performance conditions shall be deemed to have been satisfied as if target performance had been achieved in connection with the Change in Control. 
8.    Recoupment; Cancellation. 
(a)Xcel Energy may recover any cash or shares awarded under this Agreement, or proceeds from the sale of such shares, at any time, to the extent required by any rule of the SEC or any listing standard of the securities exchange upon which Xcel Energy’s stock is listed, including any rule or listing standard requiring recovery of incentive compensation in connection with an accounting restatement due to material noncompliance of Xcel Energy with any financial reporting requirement under the securities laws, which recovery shall be subject to the terms of any policy of Xcel Energy implementing such rule or listing standard. In addition, Xcel Energy may recover cash or shares awarded under these Terms and Conditions or the Agreement, or proceeds from the sale of such shares, from you if your are terminated from Xcel Energy for fraud or misconduct.
(b)Xcel Energy may recover any cash or shares awarded under this Agreement, or proceeds from the sale of such shares, for a period of 3 years following the Vesting Date of the Award or of a previously settled Award from you if you are employed by Xcel Energy at the time that the Committee, in its sole discretion, determines that (i) one or more Performance Goals used for determining the achievement of the Award or previously paid Award was miscalculated, (ii) if calculated correctly, there would have been a lower payment, and (iii) such overpayment is sufficiently material as to warrant recoupment.  Xcel Energy may effectuate this provision by cancelling all or any part of this Award that has not been settled (and Shares delivered) including any associated dividend equivalent units.    
(c)Xcel Energy may cancel all or any part of this Award that has not been settled (and Shares delivered) including any associated dividend equivalent units, if at any time subsequent to the grant date the Committee determines, in its sole discretion, that you engaged in fraud or misconduct that resulted in, or was reasonably likely to result in, a material adverse impact (whether financial, operational or reputational) to Xcel Energy or your business area or functional area. 
This Section 8 applies to any and all outstanding Awards granted under this Plan or the Prior Plan (“Prior Awards”), and the Award Agreements evidencing all such Prior Awards have been amended to include such provisions and remedies contained in this Section 8 of this Agreement, which are in addition to and do not supersede any other remedies contained or referenced in the Award Agreements for such Prior Awards.
9.    Withholding.  Xcel Energy may require you to remit to it, or may withhold from the settlement of an Award or from your other compensation, an amount sufficient to satisfy any applicable federal, state or local tax, employment, FICA or other mandated withholding requirements in regard to the Award(s) in the year or years the Award(s) become taxable to you.  You may elect in accordance with the Plan to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares otherwise payable in settlement of an Award at the rate the Committee determines satisfies applicable withholding requirements of the Code. For this purpose, Awards will be valued using the Fair 

Market Value of a Share as of the applicable withholding date.  If no election is made, you will be deemed to have elected Shares to be withheld. 

10.    Plan Incorporated by Reference; Electronic Delivery.  The Award(s) specified in the Notice of Grant and this Award Agreement are subject in all respects to the terms and conditions of the Plan, which is controlling, and which shall be deemed incorporated into this Award Agreement.  The Company, or a third party designated by the Company, may deliver to you by electronic means any documents related to your participation in the Plan.  You acknowledge receipt of a copy of the Plan. 

11.    No Right to Employment.  Nothing in this Award Agreement shall limit the right of Xcel Energy to terminate your employment or other service with Xcel Energy as provided in Section 20.1 of the Plan.

12.    Restrictions on Transfer of Award.  The Award may not be sold, assigned, transferred, pledged or otherwise encumbered by you prior to the Vesting Date.

13.    Section 409A of the Code.  Notwithstanding anything to the contrary in this Award Agreement, with respect to any Award specified in the Notice of Grant that constitutes a deferral of compensation subject to Code Section 409A:

(i)    If any amount is payable under such Award upon a Termination of Service, a Termination of Service will be deemed to have occurred only at such time as you have experienced a “separation from service” as such term is defined for purposes of Code Section 409A.

(ii)    If any amount shall be payable with respect to such Award as a result of your “separation from service” at such time as you are a “specified employee” within the meaning of Code Section 409A, then no payment shall be made, except as permitted under Code Section 409A, prior to the first business day after the earlier of (i) the date that is six months after your separation from service or (ii) your death.  

(iii)    If any amount shall be payable with respect to such Award as a result of a Change in Control, a Change in Control shall be deemed to have occurred only after giving effect to the final sentence of Section 2.8 of the Plan.

14.    Participant Acceptance.  You shall signify acceptance of this Award Agreement, including, if applicable to you, that you will abide by the Xcel Energy Stock Ownership Policy, by signing in the space provided in the Award Agreement and returning a signed copy to the Company, or if available, by providing an electronic signature, within the time frames specified by the Company’s Executive Compensation department.

15.    Mandatory Binding Arbitration.  You agree that any and all disputes related to the Award(s) including but not limited to, eligibility, vesting, distribution and payment, withholding, targets, effect of termination of employment or rights related to an amendment or termination of the Plan, will be subject to mandatory binding arbitration in Minneapolis, Minnesota before the American Arbitration Association.  You agree that you will be responsible for bearing your share of the costs to arbitrate.

16.    Severability.  Any provision of this Award Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

17.    Securities Law Matters.  The Company shall not be required to deliver any Shares until the requirements of any federal or state securities or other laws, rules or regulations (including the rules of any securities exchange), as may be determined by the Company to be applicable, are satisfied. 

18.    Headings.  Headings are given to sections and subsections of these Terms and Conditions and other portions of the Award Agreement solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way material or relevant to the construction or interpretation of this Award Agreement or any provision thereof.

19.    Definitions.

		
	(a)
	The term “Committee” shall also include those persons to whom authority has been delegated under the Plan.Exhibit

Exhibit 10.36

STOCK PROGRAM
FOR NONEMPLOYEE DIRECTORS OF
XCEL ENERGY INC.

(As Amended and Restated Effective December 12, 2017)

ARTICLE I

PURPOSE, DEFINITIONS AND GENERAL PROVISIONS

1.1.    Purpose. The purposes of this Program are: (a) to enable a portion of the compensation of each Nonemployee Director of Xcel Energy Inc. to be tied to the performance of the common stock of the Company; and (b) to permit each such Nonemployee Director to defer receipt of all or a portion of his/her retainer, board or committee meeting fees.

The Company intends the Program to be compliant with Section 409A of the Internal Revenue Code and the regulations and other guidance issued thereunder. This Program is considered a “subplan” of the Xcel Energy Inc. 2015 Omnibus Incentive Plan (the “Plan”) as such term is used in the Plan, and a successor plan to the Stock Equivalent Plan for Non- Employee Directors of Xcel Energy Inc. (the “Predecessor Plan”). The terms and conditions of the Program shall be considered part of an Award Agreement under the Plan with respect to any Program Award to any Nonemployee Director. Except as otherwise provided, any capitalized term used herein shall have the same meaning as given the term by the Plan.

		
	1.2.
	Definitions.

		
	(a)
	"Award" for purposes of the Program shall mean a Deferral Award or an Equity Award.

		
	(b)
	"Award Date" shall mean with respect to an Equity Award, the Grant Date of such an Award as specified in or pursuant to an action by the Board, and shall mean with respect to a Deferral Award the date the Compensation subject to the Deferral Award would otherwise have been paid to the Nonemployee Director as specified in or pursuant to an action by the Board.

		
	(c)
	"Beneficiary" shall mean the last person or persons (including, without limitation, the trustees of any testamentary or inter vivos trust) designated in writing by a Participant, on a form approved by and filed with the Company, to receive payments under the Plan after the death of such Participant, or, in the absence of any such designation or in the event that such designated persons or person shall predecease such Participant, or shall not be in existence or shall otherwise be unable to receive such payments, the person or persons designated under such Participant's last will and testament or, in the absence of such designation, to the Participant's estate. Any Beneficiary designation may be changed from time to time by like notice similarly delivered.

		
	(d)
	"Compensation" shall mean payments of cash which a Nonemployee Director receives or is entitled to receive from the Company for services as a member of its Board. Such payments may include directors' retainers, including annual retainers and retainers for committee, chair or lead director service, board

meeting   fees   and   committee   meeting   fees,   but   shall   exclude   direct reimbursement of expenses.

		
	(e)
	"Deferral Award" shall mean an Award of Stock Equivalents made pursuant to a deferral election described in Section 1.4 hereof.

		
	(f)
	"Equity Award" shall mean an Award of Stock or Stock Equivalents made pursuant to an election described in Section 1.3 hereof.

		
	(g)
	“Effective Date” shall mean the date this Program as amended becomes effective, as provided in Section 3.9.

		
	(h)
	"Participant" shall mean any Nonemployee Director who receives an Award.

		
	(i)
	“Plan” shall mean the Xcel Energy Inc. 2015 Omnibus Incentive Plan, as from time to time amended and in effect.

		
	(j)
	"Program" shall mean this Stock Program for Non-Employee Directors of the Company, as from time to time amended and in effect.

		
	(k)
	"Stock Account" shall mean the  bookkeeping  account  to  which  Stock Equivalent Awards are credited in the name of a Participant as described in Section 2.2 of this Program.

		
	(l)
	"Stock Equivalents" shall mean the units, representing a like number of Shares, that are credited to a Nonemployee Director's Stock Account under Article II of this Plan.

		
	(m)
	"Xcel Energy Stock" shall mean the common stock of the Company, par value $2.50 per share. Each share of Xcel Energy Stock is referred to as a “Share.”

1.3.    Equity Awards. Subject to Section 16.3 of the Plan, the Board may make Equity Awards to Participants from time to time in such amount and number as the Board shall determine in its sole discretion. If such an award is made by the Board, then a Participant may elect to receive the award in the form of Xcel Energy Stock, Stock Equivalents or some combination of the two. Prior to the beginning of a calendar year in which an Equity Award is to be granted, each Participant eligible to receive an Equity Award must elect what portion of such award will be granted to the Participant in shares of Xcel Energy Stock and what portion of such award will be granted to the Participant in Stock Equivalents. Notwithstanding the preceding sentence, in the case of an individual who becomes a Nonemployee Director after the first day of a calendar year, a deferral election must be made within 30 days of the date such individual becomes a Nonemployee Director, and shall be effective only as to any Equity Award received in connection with such director’s election to the board of directors, subject to such terms and conditions as may be further described herein. Such election shall be made on a form approved by and filed with the Company and shall continue in effect until the Nonemployee Director's “separation from service” (as the term is defined for purposes of Section 409A of the Code) as a member of the Board (a “Termination of Service”) or, if the Nonemployee Director provides the Company with earlier written notice to change the election, the end of the calendar year in which such written notice is received by the Company. In the absence of a deferral election, Equity Awards shall be paid as shares of common stock for any given year.

1.4.    Deferral Awards. In accordance with this Section, a Nonemployee Director may elect to receive Deferral Awards in lieu of all or a portion of his/her Compensation by filing with the Company an election in writing on a form approved by the Company. Unless the Committee specifies a greater amount, Deferral Awards shall be made in a dollar amount equal to the amount of Compensation  the Nonemployee Director has elected to defer and  shall be converted into Stock Equivalents and credited to a Participant's Stock Account as provided in Section 2.2. A deferral election with respect to Compensation for a calendar year must be made prior to the beginning of that calendar year. Notwithstanding the preceding sentence, in the case of an individual who becomes a Nonemployee Director after the first day of a calendar year, a deferral election must be made within 30 days of the date such individual becomes a Nonemployee Director, and shall be effective only as to Compensation for services performed after the date the election is made. A deferral election shall continue in effect until the Nonemployee Director's Termination of Service or, if the Nonemployee Director provides the Company with earlier written notice to discontinue or change the deferral election, the end of the calendar year in which such written notice is received by the Company. In the absence of a deferral election, the Compensation shall be paid in cash for any given year.
ARTICLE II 
TREATMENT OF AWARDS
2.1    Stock Accounts.  The Company shall establish on its books a Stock Account in the name of each Participant to reflect the Company's liability to each Participant who has received an Award of Stock Equivalents. To this Stock Account shall be credited each Deferral Award and the portion of an Equity Award granted in the form of Stock Equivalents, plus other items as described hereafter. A Participant's Stock Account may be divided into two or more subaccounts as the Board determines necessary or desirable for the administration of the Program. Payments to a Participant or Beneficiary upon settlement of Stock Equivalents following Termination of Service shall be debited to the Stock Account. In addition, debits and credits to the Stock Account shall be made in the manner provided hereafter. Despite the maintenance of such Stock Account for each Participant, the Company's obligation to make distributions under the Program shall be made from the Company's general assets and property. The Company may, in its sole discretion, establish a separate fund or account to make payment to a Participant or Beneficiary hereunder. Whether the Company, in its sole discretion, does establish such a fund or account, no Participant or Beneficiary or any person shall have, under any circumstances, any interest whatever in any particular property or assets of the Company by virtue of this Program or of the Plan.

		
	2.2
	Crediting of Awards.

(a)An Award in the form of Stock Equivalents (whether from a Deferral Award or the portion of an Equity Award granted in the form of Stock Equivalents) shall be credited to a Participant's Stock Account as of the applicable Award Date. If such an Award is originally expressed in dollars, it shall be converted into a number of Stock Equivalents by dividing the dollar amount of such Award by the Fair Market Value of a Share on the applicable Award Date, calculated to three decimal places.  The resulting number of Stock Equivalents shall be credited to the Participant's Stock Account as of the applicable Award Date.

(b)The Shares subject to the portion of an Equity Award granted in the form of Xcel Energy Stock shall be issued to a Participant as soon as administratively practicable following the applicable Award Date.  Delivery of the Shares may occur by electronic delivery of such

Shares to a brokerage account designated by the Participant, or book-entry registration of such Shares in the Participant’s name with the Company’s transfer agent.

		
	2.3
	Crediting of Dividend Equivalents/Capitalization Adjustments.

(a)    On each date on which a dividend in cash or property (other than a stock dividend) is distributed by the Company on issued and outstanding Shares, the Stock Account of a Participant shall be credited, subject to Section 2.3(b), with additional Stock Equivalents as follows: (i) the dollar amount of the fair market value of the cash or property so distributed per issued and outstanding Share shall be multiplied by the number of Stock Equivalents (including fractions) in the Participant's Stock Account on the record date for such distribution; (ii) this dollar amount shall then be converted into Stock Equivalents equal to the number of Shares, calculated to three decimal places, that could be purchased on the payment date for such distribution by dividing such dollar amount by a price per share equal to the Fair Market Value on such payment date.

(b)    If an equity restructuring (within the meaning of FASB Topic 718) affecting the Shares such as stock split or stock dividend occurs, the Board shall, in accordance with Section 4.4 of the  Plan, appropriately adjust the  number  of Stock  Equivalents in each Participant’s Stock Account to prevent dilution or enlargement of Participants’ rights under the Program. The Board may make similar adjustments in connection with other changes in the Company’s corporate capitalization as provided in Section 4.4 of the Plan.

2.4    Change in Ownership. If the Company shall be a party or subject to any consolidation, merger, share exchange or other transaction which, in any case, constitutes either a “change in the ownership” of the Company or a “change in the ownership of a substantial portion of the assets” of the Company within the meaning of Section 409A of the Code (a “Change in Ownership”), then in connection with such transaction either (i) the acquiring, surviving or successor corporation (or its direct or indirect parent corporation) shall continue the Program in accordance with Section 22.21 of the Plan and the Stock Equivalents in each Participant's Stock Account on the day immediately preceding the effective date of such transaction shall be converted into an appropriate number of stock equivalents of such other entity, or (ii) the Board shall terminate the Program and the entire remaining balance in each Participant's Stock Account shall be paid in a single distribution to the Participant in Shares, cash or a combination of both within the time periods permitted by and otherwise in accordance with the requirements of Section 409A of the Code. For purposes of any cash payment made pursuant to this Section 2.4, the value of a Stock Equivalent shall be computed as the greater of (a) the Fair Market Value on or nearest the date on which the Change in Ownership is deemed to occur, or (b) the highest per Share amount actually paid in connection with the Change in Control.

		
	2.5
	Time of Payment of Awards.

(a)Except as provided in Section 2.7, any Awards involving the grant of Stock Equivalents shall not be payable to a Participant prior to the Participant's Termination of Service.

(b)Upon a Termination of Service, except as provided in subsection (c) below, the balance of a Participant's Stock Account shall be paid in the manner selected by the Participant, which may either be in the form of a lump sum or in substantially equal annual installments payable over a period that may range between 2 and 10 years. Such lump sum payment shall be made, or such installment payments shall commence, between January 1st 

and March 31st of the year following Termination of Service, with subsequent installment payments made during the same time period each year. The number of Shares and cash in lieu of any fractional Stock Equivalent to be distributed shall be calculated as set forth in Section 2.6. A Participant may only make one distribution election, and once made, such election shall be irrevocable. Any distribution election must be made at the earlier of (i) the time the Participant makes his or her initial deferral election under section 1.4, or (ii) prior to  the beginning of the calendar year for which the Participant first receives an Equity Award denominated in Stock Equivalents. The distribution election must be made in writing on a form approved by the Company.

(c)Notwithstanding any election made by a Participant, in the event of a Participant's death prior to payment  in full of a Participant's Stock Account, the entire remaining balance in the Participant's Stock Account shall be paid in a single distribution to the Participant's Beneficiary within 90 days after the Participant’s death (and in no event shall the Beneficiary directly or indirectly be permitted to designate the year of payment).

2.6    Form of Payment. Except as otherwise provided in the Program, Awards shall be payable to a Participant only as a distribution of whole Shares equal to the number of whole Stock Equivalents credited to the Participant's Stock Account to be distributed, and cash for any fractional Stock Equivalent to be distributed. In converting a fractional Stock Equivalent in a Participant's Stock Account into cash for payment purposes, such conversion shall be based on the Fair Market Value of a Share on the distribution date.

2.7    Acceleration of Payments. In the event of a Participant's Disability, the Board shall accelerate the payment of such Participant's Stock Account balance in a lump sum to such Participant within 90 days following the Participant’s Disability.

ARTICLE III
OTHER PROVISIONS
3.1    Amendment or Termination.  The Board may amend or terminate this Program at any time; provided, however, that no amendment or termination shall adversely affect any prior Awards or rights under this Program. Any termination of this Program shall comply in all respects to  the requirements  of Section 409A of the Code  and the  regulations issued thereunder to the extent applicable.

3.2    Expenses. The expenses of administering the  Program shall be borne by the Company, and shall not be charged against any Participant's Awards.

3.3    No Trust. No action by the Company or the Board under this Program shall be construed as creating a trust, escrow or other secured or segregated fund or other fiduciary relationship of any kind in favor of any Participant, Beneficiary, or any other persons otherwise entitled to Awards. The status of the Participant and Beneficiary with respect to any liabilities assumed by the Company hereunder shall be solely those of unsecured creditors of the Company. Any asset acquired or held by the Company in connection with liabilities assumed by it hereunder, shall not be deemed to be held under any trust, escrow or other secured or segregated fund or other fiduciary relationship of any kind for the benefit of the Participant or Beneficiary or to be security for the performance of the obligations of the Company, but shall be, and remain, a general, unpledged, unrestricted asset of the Company at all times subject to the claims of general creditors of the Company.

3.4.    No Impact on Directorship. This Program shall not be construed to confer any right on the part of a Participant to be or remain a Director or to receive any, or any particular rate of, Compensation.

3.5.    Administration. The Board shall administer this Program in accordance with Article 3 of the Plan.

3.6.    Shareholder Rights. A Participant shall not be deemed for any purpose to be or have rights as a shareholder of the Company as a result of the crediting of Stock Equivalents to the Participant’s Stock Account, until and unless the Participant becomes the record holder of the underlying Shares as provided in Section 20.3 of the Plan.

3.7.    Securities Laws. Distribution of Shares to a Participant upon distribution of his/her Stock Account shall be subject to compliance with applicable laws and stock exchange rules as provided in Article 22 of the Plan.

3.8    Relationship to the Plan. This Program has been adopted pursuant to the Plan, and the Program and all Awards hereunder are subject to the terms of the Plan. If there is any conflict or inconsistency between the terms of the Program and the terms of the Plan, the terms of the Plan shall control.

3.9    Effective Date. This Program was originally effective as of May 20, 2015 upon approval of the Plan by the shareholders of the Company at the 2015 annual meeting of shareholders of the Company, and amended with such amendment effective as of December 12, 2017.

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