Document:

Master Reimbursement Agreement

 Exhibit 10.1 

Insurance Letters of Credit – Master Agreement 

Form 3/CEP 
 AGREEMENT DATED

 BETWEEN: 
  

	(1)	AXIS Specialty Limited (“ASL”), a company incorporated in Bermuda with company number 31259, AXIS Re Limited, a company incorporated in Dublin with company
number 353220, AXIS Specialty Europe Limited, a company incorporated in Dublin with company number 353402, AXIS Insurance Company, a company incorporated in Illinois with company number 39-1338397, AXIS Surplus Insurance Company, a company
incorporated in Illinois with company number 63-0941128, AXIS Specialty Insurance Company, a company incorporated in Connecticut with company number 56-2295242 and AXIS Reinsurance Company, a company incorporated in New York with company number
51-0434766 (“the Companies”; each, a “Company”); 

 AND 

 

	(2)	CITIBANK EUROPE PLC (“CEP”) whose offices and registered address are at 1 North Wall Quay, I.F.S.C., Dublin 1, Ireland. 

PREAMBLE 
 Subject to the
Companies’ satisfaction of the terms and conditions contained in this Agreement, CEP agrees to establish letters of credit or similar or equivalent acceptable instruments (each a “Credit” and collectively the “Credits”) on
behalf of the Companies in favour of beneficiaries located in the United States of America or elsewhere (the “Beneficiary” or “Beneficiaries” as relevant). In furtherance of this Agreement, the parties have separately agreed the
contractual or security arrangements that will apply in respect of each Company’s obligations under or pursuant to this Agreement. For the avoidance of doubt, in the event of any inconsistency between the terms of this Agreement and the terms
of the Committed Facility Letter dated on or about the date of this Agreement (the “Committed Facility Letter”), the terms of the Committed Facility Letter shall prevail. 

1. AGREEMENT  
 It
is agreed between us in relation to each Credit that:- 
  

	 	1.1	 In order to establish a Credit, the Company requesting it is required to submit an application form to CEP (“the Application Form”) see
Schedule Two. The Application Form must (a) be in such form as CEP is willing to accept for this purpose; Application Forms may, subject to CEP’s agreement, be received via any electronic system(s) or transmission arrangement(s);
(b) be completed by or on behalf of the relevant Company in accordance with the terms of such Company’s banking mandate(s) or other authorities lodged with CEP or in accordance with

	 	
arrangement(s) made with CEP from time to time; (c) specify the currency in which such Credit is issued (it being understood that Credits may be requested, and shall be issued, in any Agreed
Currency, Agreed Currency means, at any time, (a) Pounds Sterling, (b) Euro, (c) Australian Dollars, (d) Canadian Dollars, (e) Japanese Yen, (f) Swiss Francs, (g) Brazilian Reais, (h) Singapore Dollars and
(i) any other Foreign Currency agreed to by CEP in its discretion.); and (d) indicate therein the name of the Beneficiary and the amount and term of the Credit required. Upon receipt of an Application Form that satisfies the above
criteria, CEP shall establish on behalf of such Company an irrevocable clean sight Credit (or such other form of Credit as may be required by the Application Form relating thereto) available, in whole or in part, by the Beneficiary’s sight
draft (such Company hereby agreeing that CEP may accept as a valid “sight draft” any written or electronic demand or other request for payment under the Credit, even if such demand or other request is not in the form of a negotiable
instrument) on CEP or otherwise as may be required by the terms of the Credit; provided, however, that: 

  

	 	(i)	the opening of any Credit hereunder shall, subject to the Committed Facility Letter, in every instance, be at CEP’s option and nothing herein shall be construed as
obliging CEP to open any Credit; 

  

	 	(ii)	prior to the establishment of any Credit or in order to maintain a Credit ASL undertakes as follows: 

 

	 	(a)	forthwith at CEP’s request (In accordance with the terms of the Pledge Agreement entered into between the parties), to deposit, at an Approved Bank, in an account
or accounts in ASL’s name, cash or securities or a combination of cash and securities of such amount and in such combination as CEP may require (a “Deposit”). “Approved Bank” for the purposes of this Clause 1.1(ii)(a) shall
mean one or more of the following:- (i) Citibank, N.A. at their branch at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB; (ii) Bank of New York Mellon (iii) a bank approved by CEP; or, (iv) such other Citigroup
branch or approved bank as CEP may designate and notify to ASL; and 

  

	 	(b)	should a Deposit have been requested, to execute CEP’s standard form charge documentation in relation to the accounts opened pursuant to Clause 1.1
(ii) (a) above. 

 Notwithstanding the foregoing, it is understood and agreed that the terms of the
Pledge Agreement shall govern the type and amount of any deposit required to be made with regard to the Facility established pursuant to the Committed Facility Letter. 
  

	 	1.2	Each Company undertakes to reimburse CEP the amount of any and all drawings (including, for the avoidance of doubt, drawings presented electronically) under each Credit
issued on its behalf on the Business Day following notice by CEP to such Company of the drawing; 

  

	 	1.3	Each Company undertakes to indemnify CEP, within five Business Days after receipt of an invoice, for and against all actions, proceedings, losses, damages, charges,
costs, expenses, claims and demands which CEP may incur, pay or sustain in connection with each Credit and/or this Agreement, howsoever arising (unless resulting from CEP’s or any of its affiliates’ own gross negligence or wilful
misconduct); 

  

	 	1.4	Each Company undertakes to pay CEP such fees and/or commissions of such amount(s), at such times and/or at such rate(s) as have been agreed in a facility fee letter
between CEP and the Company as payable in connection with each Credit; 

  

	 	1.5	Each Company hereby irrevocably authorises CEP to make any payments and comply with any demands which may be claimed from or made upon CEP in connection with any Credit
without any reference to, or further authority from, such Company. Each Company hereby agrees that it shall not be incumbent upon CEP to enquire or take notice of whether or not any such payments or demands claimed from or made upon CEP in
connection with each Credit are properly made or whether any dispute exists between such Company and the Beneficiary thereof. Each Company further agrees that any payment CEP makes in accordance with the terms and conditions of each Credit shall be
binding upon such Company and shall be accepted by such Company as conclusive evidence that CEP was liable to make such payment or comply with such demand. 

  

 2 

 2. REPRESENTATIONS AND WARRANTIES 

 

	 	2.1	Each Company represents and warrants to CEP and undertakes to ensure that:- 

 

	 	(i)	it has and will at all times have the necessary power to enable it to enter into and perform the obligations expressed to be assumed by it under this Agreement;

  

	 	(ii)	the Agreement constitutes its legal, valid, binding and enforceable obligation effective in accordance with its terms; and 

 

	 	(iii)	all necessary authorisations to enable or entitle it to enter into this Agreement have been obtained and are in full force and effect and will remain in such force and
effect at all times during the subsistence of this Agreement; 

  

	 	2.2	Each Company represents and warrants to CEP that on the date of this Agreement and on each day when a Credit is issued:- 

 

	 	(i)	it is not unable to pay its debts as they fall due; 

  

	 	(ii)	it has not been deemed or declared to be unable to pay its debts under any applicable law; 

 

	 	(iii)	it has not suspended making payments on any of its material debts; 

  

	 	(iv)	it has not, by reason of actual or anticipated financial difficulties, commenced negotiations with any of its creditors with a view to rescheduling any of its material
indebtedness; 

  

	 	(v)	the value of its assets is not less than its liabilities (taking into account contingent and prospective liabilities); 

 

	 	(vi)	no moratorium has been declared in respect of any of its material indebtedness; and 

 

	 	(vii)	no analogous or similar event or concept to those set out in this Clause 2.2 has occurred or is the case under the laws of any jurisdiction. 

3. EXTENSION/TERMINATION 
  

									
	3.1	  		  	(a)	  		  	Any Credit established hereunder may, if requested by a Company on the relevant Application Form and subject to CEP’s consent, bear a clause to the effect that it will
automatically be extended for successive periods of one year (or such other period as may be stated in the relevant Application Form) UNLESS the Beneficiary has received from the bank or institution issuing the Credit (the “Issuing
Bank”) by registered mail (or other appropriate receipted delivery) notification of intention not to renew such Credit at least 30 days (or such other period as may be stated in the relevant Application Form) prior to the end of the original
term or, as the case may be, of a period of extension (the “Notice Period”).
					
		  		  	(b)	  		  	The Issuing Bank shall be under no obligation to such Company to send the Beneficiary such notification (and without such notification to the Beneficiary the Credit will be
automatically extended as provided above) UNLESS such Company shall have sent notification to CEP by registered mail (or other means acceptable to CEP) of its election not to renew such Credit at least 30 days prior to the commencement of the
Notice Period.
					
		  		  	(c)	  		  	CEP reserves the right, at its sole option and discretion, to give or procure the giving at any time to the Beneficiary of notification of intention not to renew any Credit. If CEP
exercises such said right, it will give such Company notice in writing thereof as soon as is reasonably possible.

  

 3 

 4. UCC/ISP 

CEP may, at its sole option, arrange for the issuance of any Credit as being subject to either (i) the Uniform Customs and Practice
for Documentary Credits (2007 Revision) ICC Publication No. 600 (“the UCP”) or (ii) the International Chamber of Commerce Publication No. 590 - the International Standby Practices 1998 (the “ISP”), (or any
subsequent version of either); provided however that CEP may agree such modifications thereof as may be required by any regulatory or other authority having jurisdiction as to the acceptability of the Credit in question. 

5. PREVIOUS AGREEMENTS 
  

	 	5.1	Unless otherwise agreed between the parties in writing, the previous agreement(s) (if any) entered into between them (other than those at any time governed by a
“Master Agreement – London Market Letter of Credit Scheme” or substantially equivalent agreement) governing Credits established by CEP on any Company’s behalf in favour of Beneficiaries shall, on due execution by the parties of
this Agreement, cease to apply to all such Credits, which Credits shall henceforth be governed by this Agreement. 

  

	 	5.2	For the avoidance of doubt any letter or letters of credit or similar or equivalent instrument or instruments (the “Existing Credit(s)”) which has or have
been established or opened pursuant to the terms of any previous agreement(s) entered into between any Company and Citibank, N.A. governing the Existing Credits (including any security arrangements that apply in respect of any obligation under or
pursuant to such previous agreement(s)) (the “Existing Agreement(s)”) shall continue in force until cancelled. The Existing Agreement(s) shall continue to apply to the Existing Credit(s) until all the Existing Credit(s) have been
cancelled. Each Company undertakes, on CEP’s request, to take all reasonable steps to procure that any cancelled Existing Credit(s) are destroyed or returned to CEP. 

6. CREDIT CHOICE OF LAW 

If, at a Company’s request, a Credit expressly chooses a state or country law other than New York, U.S.A. or English law, or is
silent with respect to the UCP, the ISP or a governing law, CEP shall not be liable for any payment, cost, expense or loss resulting from any action or inaction it takes provided such action or inaction is justified under UCP, ISP, New York law,
English law or the law governing the Credit. 
 7. BRANCHES/CORRESPONDENT BANKS 

 

	 	7.1	Each Company acknowledges that CEP may carry out any of its obligations or exercise any of its rights under this Agreement through any of its offices or branches,
wheresoever situated. 

  

	 	7.2	Each Company further understands that CEP reserves the right to issue any Credit through any third party correspondent of its choice, subject to the consent of such
Company (not to be unreasonably withheld) and/or to have any Credit confirmed by Citibank, N.A. In such circumstances, CEP will be required to guarantee reimbursement to such correspondent and/or Citibank, N.A. of any payments which such
correspondent and/or Citibank, N.A. may make under the Credit in question and such guarantee (howsoever described) shall be treated mutatis mutandis as a Credit for the purpose of this Agreement. 

8. INCREASES ETC/REINSTATEMENTS 

The provisions of the foregoing Clauses shall be equally applicable to any increase, extension, renewal, partial renewal, modification or
amendment of, or substitute instrument for, any Credit to which they apply. If for any reason any amount paid under any Credit is repaid, in whole or in part, by 

 

 4 

 
the Beneficiary thereof, CEP may, in its sole discretion, treat (or procure the treatment of) such repayment as a reinstatement of an amount (equal to such repayment) under such Credit. The value
date CEP applies to any such reinstatement shall not be earlier than the date of such repayment and CEP shall not be liable for losses of any nature which any Company may suffer or incur and/or which may arise from any inadvertent or erroneous
drawing. 
 9. NOTICES 
  

	 	9.1	Any notice or demand to be served on a Company by CEP hereunder may be served: 

 

	 	(a)	on any of such Company’s officers personally; 

  

	 	(b)	by letter addressed to such Company or to the Treasurer of Axis Capital Holdings Limited and left at the Company’s registered office or at any one of its principal
places of business; 

  

	 	(c)	by posting the same by letter addressed in any such manner as aforesaid to such registered office or principal place of business; 

 

	 	(d)	by telex or facsimile addressed in any such manner as aforesaid to any then published telex or facsimile number of such Company; or 

 

	 	(e)	(other than in the case of ASL) on ASL by any of the methods mentioned above. 

Each Company (other than ASL) appoints ASL to act as its agent for the purpose of giving and receiving notices, demands and other
communications under this Agreement. If the Bank validly serves a notice, demand or other communication on ASL, that notice, demand or other communication will be deemed to have been validly served on each and every Company, even if ASL fails to
pass it on to each and every Company. 
  

	 	9.2	Unless otherwise stated, any notice or demand to be served on CEP by a Company hereunder must be served either at CEP’s address as stated above (or such other
address as CEP may notify us of from time to time) or by facsimile to such number as CEP may notify us of from time to time. If the Bank receives any notice, demand or other communication from ASL, unless the communication expressly states
otherwise, the Bank is entitled to assume that ASL has sent that communication for itself and as agent of the other Companies and that the other Companies agree with it. 

 

	 	9.3	Any notice or demand:- 

  

	 	(a)	sent by post to any address in the Republic of Ireland or the United Kingdom shall be deemed to have been served on the Company at 10am. (London time) on the first
Business Day after the date of posting (in the case of an address in the Republic of Ireland) and on the second Business Day after posting (in the case of an address in the United Kingdom) or, in the case of an address outside the Republic of
Ireland or the United Kingdom (or a notice or demand to CEP), shall be deemed to have been served on the relevant party at 10am. (London time) on the third Business Day after and exclusive of the date of posting; ; or 

 

	 	(b)	sent by telex or facsimile shall be deemed to have been served on the relevant party when dispatched. 

If the Bank sends a notice or demand by post it shall also send it by facsimile or email. 

 

	 	9.4	In proving service by post it shall be sufficient to show that the letter containing the notice or demand was properly addressed and posted and such proof of service
shall be effective notwithstanding that the letter was in fact not delivered or was returned undelivered. 

  

	 	9.5	In this Clause 9, “Business Day” shall be construed as a reference to a day (other than a Saturday or a Sunday) on which banks are generally open in London.

  

 5 

 10. ASSIGNMENT/NOVATION 

 

	 	10.1	CEP, with the prior written approval of ASL, not to be unreasonably withheld, may assign the whole or any part of the rights under, or the benefit of, this Agreement or
(b) (subject to Clauses 10.2 to 10.5) to novate its rights and obligations under this Agreement. The words “CEP” and “CEP’s” wherever used in Clauses 10.2 to 10.5 shall be deemed to include CEP’s permitted
assignees and novatees and other successors, whether immediate or derivative, who shall be entitled to enforce and proceed upon this Agreement in the same manner as if named herein. CEP shall be entitled to impart any information concerning such
Company to any such permitted assignee, novatee or other successor or any participant or proposed assignee, novatee, successor or participant. 

  

	 	10.2	The person who is for the time being liable to perform CEP’s obligations under this Agreement (a “Transferring Bank”) shall be entitled to novate at any
time, upon service of a notice on the Company in the form attached as Schedule One to this Agreement (a “Novation Notice”), any or all of its rights and obligations under, and the benefit of, this Agreement to any Permitted Transferee.
With effect from the date on which a Novation Notice is executed by the Transferring Bank and the Permitted Transferee and served on such Company (the “Novation Date”), the provisions of Clause 10.3 shall have effect (but not otherwise).

  

	 	10.3	With effect from (and subject to the occurrence of) the Novation Date: 

  

	 	10.3.1	the Permitted Transferee shall be bound by the terms of this Agreement (as novated) in every way as if the Permitted Transferee was and had been a party hereto in place
of the Transferring Bank and the Permitted Transferee shall undertake and perform and discharge all of CEP’s obligations and liabilities under this Agreement (as novated) whether the same fell or fall to be performed or arose or arise on,
before or after the Novation Date; 

  

	 	10.3.2	the Companies shall release and discharge the Transferring Bank from further performance of its obligations arising in favour of any of them on and after the Novation
Date under this Agreement and all claims and demands whatsoever in respect thereof against the Transferring Bank, and the Companies shall accept the liability of the Permitted Transferee in respect of such obligations in place of the liability of
the Transferring Bank; 

  

	 	10.3.3	the Transferring Bank shall release and discharge each Company from further performance of its obligations arising in favour of the Transferring Bank on and after the
Novation Date under this Agreement and all claims and demands whatsoever in respect thereof by the Transferring Bank; and 

  

	 	10.3.4	such Company shall be bound by the terms of this Agreement (as novated) in every way, and it shall undertake and perform and discharge in favour of the Permitted
Transferee each of its obligations whether the same fell or fall to be performed or arose or arise on, before or after the Novation Date and expressed to be owed to CEP. 

 

	 	10.4	Without prejudice to the automatic novation of the Transferring Bank’s rights and obligations pursuant to Clause 10.3, each Company (other than ASL) appoints
ASL as its agent to sign and return and ASL undertakes to sign and return on behalf of itself and each other Company promptly each acknowledgement of the Novation Notice from time to time delivered to it promptly following receipt of the same from
the Transferring Bank. 

  

	 	10.5	For the purposes of this Clause 10 a “Permitted Transferee” shall mean any holding company, subsidiary or affiliate of Citigroup Inc.

 11. SET-OFF 
  

	 	11.1	Each Company hereby irrevocably authorises CEP to debit and credit, on such Company’s behalf, any account or accounts which are held in such Company’s name
with Citibank, N.A. 

  

 6 

	 	11.2	Each Company hereby agrees that Citibank N.A. shall be entitled to rely on and action any credit or debit made by CEP in accordance with Clause 11.1.

 12. GOVERNING LAW/JURISDICTION 

This Agreement shall be governed by English law and, for CEP’s benefit, each Company hereby irrevocably submits to the jurisdiction
of the English Courts in respect of any dispute which may arise from or in connection with this Agreement. The terms of this Agreement may not be waived, modified or amended unless such waiver, modification or amendment is in writing and signed by
CEP nor may any Company assign any of its rights hereunder without CEP’s prior written consent. Clauses 15.2 and 15.3 of the Committed Facility Letter apply also to this Agreement. 

13. MISCELLANEOUS PROVISIONS 
  

	 	13.1	Subject to this Clause and to Clause 11.2 a person who is not a party to this Agreement has no rights under the Contracts (Rights of Third Parties) Act 1999 (the
“Third Parties Act”) to enforce any terms of this Agreement. 

  

	 	13.2	Citibank, N.A. may enforce the terms of Clause 11.2 subject to, and in accordance with, this Clause 13.2 and Clause 12 and the provisions of the Third Parties Act.

  

	 	13.3	The parties to this Agreement do not require the consent of Citibank, N.A. to rescind or vary this Agreement at any time. 

 

	 	13.4	If Citibank, N.A. brings proceedings to enforce the terms of Clause 11.2, the relevant Company shall only have available to it by way of defence, set-off or
counterclaim a matter that would have been available by way of defence, set-off or counterclaim if Citibank, N.A. had been party to this Agreement. 

  

	 	13.5	Citibank, N.A. may not take proceedings to enforce Clause 11.2 unless and until it gives notice in writing to the relevant Company in any manner as is permitted by
Clause 9, agreeing irrevocably to the provisions of Clause 12. 

  

 7 

 EXECUTED THIS DAY ABOVE WRITTEN BY: 

 

							
	For and on behalf of	    	Date:	 	May 14, 2010
	AXIS Specialty Limited	    		 	
	(as Applicant)	    		 	
			
	 /s/ Jose Osset
	    		 	
	Name:	 	Jose Osset	    		 	
	Title:	 	SVP & Treasurer	    		 	
			
	For and on behalf of	    	Date:	 	May 14, 2010
	AXIS Re Limited	    		 	
	(as Applicant)	    		 	
			
	 /s/ Tim Hennessy
	    		 	
	Name:	 	Tim Hennessy	    		 	
	Title:	 	EVP, General Manager & Finance Director	    		 	
			
	For and on behalf of	    	Date:	 	May 14, 2010
	AXIS Specialty Europe Limited	    		 	
	(as Applicant)	    		 	
			
	 /s/ Tim Hennessy
	    		 	
	Name:	 	Tim Hennessy	    		 	
	Title:	 	EVP, General Manager & Finance Director	    		 	
			
	For and on behalf of	    	Date:	 	May 14, 2010
	AXIS Insurance Company	    		 	
	(as Applicant)	    		 	
			
	 /s/ Andrew M. Weissert
	    		 	
	Name:	 	Andrew M. Weissert	    		 	
	Title:	 	SVP	    		 	
			
	For and on behalf of	    	Date:	 	May 14, 2010
	AXIS Surplus Insurance Company	    		 	
	(as Applicant)	    		 	
			
	 /s/ Andrew M. Weissert
	    		 	
	Name:	 	Andrew M. Weissert	    		 	
	Title:	 	SVP	    		 	
			
	For and on behalf of	    	Date:	 	May 14, 2010
	AXIS Specialty Insurance Company	    		 	
	(as Applicant)	    		 	
			
	 /s/ Andrew M. Weissert
	    		 	
	Name:	 	Andrew M. Weissert	    		 	
	Title:	 	SVP	    		 	
			
	For and on behalf of	    	Date:	 	May 14, 2010
	AXIS Reinsurance Company	    		 	
	(as Applicant)	    		 	
			
	 /s/ Andrew M. Weissert
	    		 	
	Name:	 	Andrew M. Weissert	    		 	
	Title:	 	SVP	    		 	

  

 8 

	
	AND
	
	  

	CITIGROUP EUROPE PLC
	
	 /s/ Peadar MacCanna, Director

	(Signature(s))
	
	Dated: May 14, 2010                    

 

 9 

 SCHEDULE ONE 

Form of Novation Notice for Clause 10 
  

					
	To:	 	[            ]	  	
			
	Dear Sirs	 		  	Date:

 Insurance Letters of Credit – Master
Agreement (Form 3/CIFS) dated [            ] and made between Citibank Europe plc and [            ] (the “Agreement”)

 We refer to Clause 10 of the Agreement. We hereby notify you that we wish to exercise our option to novate under Clause 10 thereof so
that with effect from today’s date the rights, liabilities and obligations of [name of Transferring Bank] shall be novated to [name of Permitted Transferee] in the manner set out in Clause 10 thereof. 

The relevant address for the purposes of Clauses 3.1 and 9 is as follows: 

[insert new address] 
  

	
	Yours faithfully
	
	                             
               
	for and on behalf of
	[TRANSFERRING BANK]
	
	                             
               
	for and on behalf of
	[PERMITTED TRANSFEREE]

 [NAME OF COUNTERPARTY]:

  

	(1)	acknowledges receipt of the Novation Notice; and 

  

	(2)	agrees that with effect from the date of the Novation Notice the rights, liabilities and obligations
of [            ] are novated to [            ] in the manner set out in Clause 10 of the Agreement.

  

	
	
                        
                    

	 for and on behalf of

	[NAME OF COUNTERPARTY]

  

 10 

 SCHEDULE TWO 

Letter of Credit Application Form 

 

 

 Page 1 of 2 

FORM 4 (TO BE USED FOR NON-SCHEME LOC OPENINGS AND INCREASES ONLY) 

HEADER DETAILS: 

ILOC No.: ILOC Type: 

For openings leave blank (Choose from dropdown box) 

Effective date: Expiry date: 

(DD/MM/YYYY) New / to be changed to (DD/MM/YYYY) 

Advising period: Other advising period: (Choose from dropdown box) 

Evergreen clause: YES Other information: NO 

BENEFICIARY DETAILS: 

Full Company Name: 

Street Address: 

City / Post Code: State / Country: 

For attention of: 

US INTERMEDIARY DETAILS: (to be completed if the Credit is to be sent to a party different to the addressee shown above)

 Full Company Name: 

Street Address: 

City / Post Code: State / Country: 

For attention of: 

TRANSACTION DETAILS: 

Transaction Type: Currency: 

(Choose from dropdown box) 

Previous ILOC amount:(A) 

Opening / Increase ILOC amount: (B) 

New ILOC amount: (C) 

(Complete boxes A, B and C when amending a credit. Complete only box C in case of a new credit) 

SIGNATURES 

Authorised Signatories only must sign form (as per Current Mandate/General Communications Indemnity and Master
Reimbursement Agreement lodged with Citibank). If signatures below do not appear on the mandate Citibank has on file, form will be rejected and transaction will not be processed. 

SIGNED FOR AND ON BEHALF OF THE COMPANY (PLEASE TYPE IN FULL COMPANY NAME) 

TYPE FULL NAME AND SURNAME SIGNATURE TYPE DATE (DD/MM/YYYY) 

TYPE FULL NAME AND SURNAME SIGNATURE TYPE DATE (DD/MM/YYYY) 

 

 11 

 

 

 Page 2 of 2 

ACCOUNT DETAILS: 

LOC a/c no.: 5 

Customer a/c no.: 8 

Mendes & Mount: YES 

NO 

WORDING DETAILS: 

Liquidator Wording: Comments: 

(Choose from dropdown box) 

Domicile: 

UCP version: 500 600 

Multi-beneficiary Indicator: YES NO (If yes is chosen, fill in multi-beneficiary details below) 

Multi-beneficiary details: 

1st Beneficiary name: Percentage: 

2nd Beneficiary name: Percentage: 

3rd Beneficiary name: Percentage: 

Multi-beneficiary Wording: 

(Choose from dropdown box) 

Option A: Designate an agent to act on behalf of the beneficiaries listed: 

CONTENT OF LC: 

Beneficiary: [NAME OF AGENT] for and on behalf of: “A”, “B”,. 

“All presentations, consents and instructions received from, and any action taken by, [NAME OF AGENT] shall bind each
of the above-named beneficiaries. Only [NAME OF AGENT] and no other beneficiary named above, shall present documents hereunder for payment or provide any other consent or instruction hereunder.” 

Option B: “A” or “B” (means either one or the other, but not both, is the beneficiary; only one or the
other can draw and either one, alone, can accept amendments or consent to revoke the credit): 
 CONTENT OF LC:

 Beneficiary: “A” or “B” 

“Any one of the above-named parties shall constitute the Beneficiary with respect to any presentation, amendment, or
consent to revoke. The above-named parties may not act simultaneously. Presentations, amendments and consents will be given effect in the order in which they are received.” 

Option C: “A” and/or “B” (means either one can act and bind both, or both can act simultaneously; if
both draw simultaneously, payment must be made either to a joint account or to an account(s) of one or more of the beneficiaries that are drawing; an acceptance of an amendment or consent to revoke by either one binds both): 

CONTENT OF LC: 

Beneficiary: “A” and/or “B” 

“Any drawing hereunder or other action taken in connection herewith by one or more of the Beneficiaries shall bind
all the Beneficiaries. Presentations, amendments and consents will be given effect in the order in which they are received. [Optional Clause: Payment under any presentation made to more than one named beneficiary shall be made pro-rata to the
presenting parties.]” 
 ORIGINAL FORM TO BE SENT TO: 

ILOC DEPARTMENT, CITIBANK EUROPE PLC, 1 NORTH WALL QUAY, BLOCK A, 2ND FLOOR, DUBLIN 1, REPUBLIC OF IRELAND. IF YOU HAVE
ANY QUERIES WHILE FILLING IN THIS FORM, PLEASE CONTACT ILOC CUSTOMER SERVICES AT +353 1 622 55 70 OR BY E-MAIL AT ILOC.CSU@CITI.COM 

PLEASE NOTE THAT INCOMPLETE FORMS WILL BE RETURNED UNPROCESSED. 

 

 12ON Semiconductor Corporation Amended and Restated Stock Incentive Plan

 Exhibit 4.1 

ON SEMICONDUCTOR CORPORATION 

AMENDED AND RESTATED 

STOCK INCENTIVE PLAN 

EFFECTIVE DATE: MARCH 23, 2010 

APPROVED BY SHAREHOLDERS: MAY 18, 2010 

EXPIRATION DATE: MARCH 23, 2020 

 TABLE OF CONTENTS 

 

					
	 	    	 	  	Page
	ARTICLE 1 ESTABLISHMENT, PURPOSE, EFFECTIVE DATE, AND EXPIRATION DATE	  	1
			
	 1.1
	    	Establishment	  	1
			
	 1.2
	    	Purpose	  	1
			
	 1.3
	    	Effective Date	  	1
			
	 1.4
	    	Expiration Date	  	1
		
	ARTICLE 2 DEFINITIONS	  	2
			
	 2.1
	    	Definitions	  	2
			
	 2.2
	    	Gender and Number	  	8
		
	ARTICLE 3 ELIGIBILITY AND PARTICIPATION	  	8
			
	 3.1
	    	Eligibility	  	8
			
	 3.2
	    	Actual Participation	  	9
		
	ARTICLE 4 ADMINISTRATION	  	9
			
	 4.1
	    	Administration by the Committee	  	9
			
	 4.2
	    	Authority of the Committee	  	9
			
	 4.3
	    	Award Agreement	  	10
			
	 4.4
	    	Decisions Binding	  	10
		
	ARTICLE 5 STOCK SUBJECT TO THE PLAN	  	10
			
	 5.1
	    	Number of Shares	  	10
			
	 5.2
	    	Availability of Stock for Grant	  	10
			
	 5.3
	    	Adjustment in Capitalization	  	11
			
	 5.4
	    	Annual Limitation on Number of Shares Subject to Options or SARs to a Covered Employee	  	11
		
	ARTICLE 6 STOCK OPTIONS	  	11
			
	 6.1
	    	Grant of Options	  	11
			
	 6.2
	    	Incentive Stock Options	  	12
		
	ARTICLE 7 RESTRICTED STOCK UNITS AND RESTRICTED STOCK	  	13
			
	 7.1
	    	Grant of Restricted Stock Units and Restricted Stock	  	13
			
	 7.2
	    	Restricted Stock Units	  	13
			
	 7.3
	    	Grant of Restricted Stock	  	14
			
	 7.4
	    	Restricted Period and Vesting Conditions	  	14

  

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 TABLE OF CONTENTS 

(continued) 
  

					
	 	    	 	  	Page
	 ARTICLE 8 PERFORMANCE SHARES, PERFORMANCE SHARE UNITS AND PERFORMANCE CASH AWARDS
	  	14
			
	 8.1
	    	Grant of Performance Shares or Performance Share Units	  	14
			
	 8.2
	    	Goals for Performance Shares or Performance Share Units	  	15
			
	 8.3
	    	Form and Timing of Payment	  	15
			
	 8.4
	    	Performance Cash Awards	  	15
			
	 8.5
	    	Vesting Conditions for Performance Shares and Performance Share Units	  	15
		
	 ARTICLE 9 STOCK APPRECIATION RIGHTS
	  	16
			
	 9.1
	    	Grant of Stock Appreciation Rights	  	16
			
	 9.2
	    	Exercisability of SARs	  	16
			
	 9.3
	    	Exercise of SARs	  	16
			
	 9.4
	    	Form and Timing of Payment	  	16
		
	 ARTICLE 10 STOCK GRANT AWARDS
	  	16
		
	 ARTICLE 11 PERFORMANCE COMPENSATION AWARDS
	  	17
			
	 11.1
	    	Grant of Performance Compensation Awards	  	17
			
	 11.2
	    	Applicability	  	17
			
	 11.3
	    	Committee Discretion with Respect to Performance Compensation Awards	  	17
			
	 11.4
	    	Establishment of Performance Goals	  	17
			
	 11.5
	    	Performance Evaluation; Adjustment of Goals	  	18
			
	 11.6
	    	Adjustment of Performance Compensation Awards	  	18
			
	 11.7
	    	Payment of Performance Compensation Awards	  	18
			
	 11.8
	    	Certification by Committee	  	19
			
	 11.9
	    	Maximum Award Payable	  	19
		
	 ARTICLE 12 CHANGE IN CONTROL
	  	19
		
	 ARTICLE 13 NON-TRANSFERABILITY
	  	19
			
	 13.1
	    	General	  	19
			
	 13.2
	    	Beneficiary Designation	  	19
			
	 13.3
	    	Stock Certificates	  	20
		
	 ARTICLE 14 COMPANY DISCRETION
	  	20
			
	 14.1
	    	Employment	  	20

  

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 TABLE OF CONTENTS 

(continued) 
  

					
	 	    	 	  	Page
	 14.2
	    	Participant	  	20
			
	 14.3
	    	No Rights to Awards	  	20
		
	ARTICLE 15 SUBSTITUTION OF AWARDS	  	20
		
	ARTICLE 16 AMENDMENT, MODIFICATION, AND TERMINATION	  	21
		
	ARTICLE 17 TAX WITHHOLDING	  	21
			
	 17.1
	    	Tax Withholding	  	21
			
	 17.2
	    	Form of Payment	  	21
			
	 17.3
	    	Tax upon Disposition of Shares Subject to Section 422 Restrictions	  	22
		
	ARTICLE 18 INDEMNIFICATION	  	22
		
	ARTICLE 19 REQUIREMENTS OF LAW	  	22
			
	 19.1
	    	Requirements of Law	  	22
			
	 19.2
	    	Governing Law	  	23
			
	 19.3
	    	Section 409A of the Code	  	23
			
	 19.4
	    	Securities Law Compliance	  	24
			
	 19.5
	    	Restrictions	  	24
		
	ARTICLE 20 GENERAL PROVISIONS	  	24
			
	 20.1
	    	Funding	  	24
			
	 20.2
	    	No Shareholders Rights	  	24
			
	 20.3
	    	Titles and Headings	  	24
			
	 20.4
	    	Successors and Assigns	  	24
			
	 20.5
	    	Survival of Provisions	  	25

  

 -iii- 

 ON SEMICONDUCTOR CORPORATION 

AMENDED AND RESTATED 

STOCK INCENTIVE PLAN 

EFFECTIVE DATE: MARCH 23, 2010 

APPROVED BY SHAREHOLDERS: MAY 18, 2010 

EXPIRATION DATE: MARCH 23, 2020 

ARTICLE 1 

ESTABLISHMENT, PURPOSE, EFFECTIVE DATE, AND EXPIRATION DATE 

1.1 Establishment. Subject to the approval of its shareholders, ON Semiconductor Corporation, a Delaware corporation (the
“Company”), hereby amends, restates and extends the term of the ON Semiconductor Corporation 2000 Stock Incentive Plan by the adoption of the ON Semiconductor Corporation Amended and Restated Stock Incentive Plan (the “Plan”), as
set forth in this document. The terms and provisions of the Plan document, as in effect prior to the adoption of this amended and restated Plan document (which will sometimes be referred to below as the “2000 Plan”), will continue to
govern prior awards until all stock awards granted prior to the adoption of this amended and restated Plan document have been exercised, forfeited, canceled, expired or otherwise terminated in accordance with the terms of such grants. The Plan
permits the grant of Options, Restricted Stock Units, Restricted Stock, Performance Shares, Performance Share Units, Performance Cash Awards, Stock Appreciation Rights and Stock Grant Awards. The Plan also permits the grant of awards that qualify
for the “performance-based compensation” exception to the limitations on the deduction of compensation imposed by Section 162(m) of the Code. 

1.2 Purpose. The purpose of the Plan is to promote the success and enhance the long-term growth of the Company by linking
the personal interests of the employees, officers and Non-Employee Directors of, and Consultants to, the Company and any Affiliate to those of the Company’s shareholders and by providing those individuals with an incentive for outstanding
performance to generate superior returns for Company shareholders. The Plan is further intended to provide flexibility to the Company and any Affiliate in their ability to attract, retain and motivate individuals upon whose judgment, interest and
special effort the successful conduct of the Company’s and Affiliate’s operation is largely dependent. 
 1.3
Effective Date. The Plan is effective as of the date it is approved by the Company’s Board of Directors (the “Effective Date”), but is subject to approval by the Company’s shareholders at its 2010 Annual Meeting.
Any Awards granted prior to such shareholder approval shall be expressly conditioned upon such shareholder approval of the Plan. 

1.4 Expiration Date. The Plan will expire on, and no Award may be granted under the Plan after, the tenth
(10) anniversary of the Effective Date unless the shareholders of the Company approve an extension of the Plan. Any Awards that are outstanding on the tenth anniversary of the Effective Date (or such later expiration date as approved by the
Company’s shareholders) shall remain in force according to the terms of the Plan and the Award Agreement. 
  

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 ARTICLE 2 

DEFINITIONS 

2.1 Definitions. When a word or phrase appears in this Plan document with the initial letter capitalized, and the word or
phrase does not commence a sentence, the word or phrase will generally be given the meaning ascribed to it in this Section 2.1 unless a clearly different meaning is required by the context. The following words and phrases will have the
following meanings: 
 (a) “Affiliate” means any subsidiary or parent of the Company that is: (i) a member
of a “controlled group of corporations” (within the meaning of Section 414(b) of the Code as modified by Section 415(h) of the Code) that includes the Company as a member of the group; and (ii) a member of a group of trades
or businesses under common control (within the meaning of Section 414(c) of the Code as modified by Section 415(h) of the Code) that includes the Company as a member of the group. In applying Section 1563(a)(1), (2) and
(3) of the Code for purposes of determining the members of a controlled group of corporations under Section 414(b) of the Code, the language “at least 50 percent” shall be used instead of “at least 80 percent” each
place it appears in Section 1563(a)(1), (2) and (3) and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining the members of a group of trades or businesses (whether or not incorporated) that are under
common control for purposes of Section 414(c) of the Code, the language “at least 50 percent” shall be used instead of “at least 80 percent” each place it appears in Treasury Regulation Section 1.414(c)-2. 

(b) “Annual Meeting” or “Annual Meeting Date” means the dates established for the annual meetings of
the Company’s shareholders pursuant to the Company’s Bylaws. 
 (c) “Award” means any Option,
Restricted Stock Unit, Restricted Stock, Performance Share, Performance Share Unit, Performance Cash, Stock Appreciation Right or Stock Grant Award granted pursuant to the Plan. 

(d) “Award Agreement” means any written agreement or other document evidencing an Award. 

(e) “Board” means the Board of Directors of the Company, as constituted from time to time. 

(f) “Cause” means (except as otherwise provided in an Award Agreement) if the Committee, in its reasonable and good
faith discretion, determines that the Participant (i) has failed to substantially perform his duties (other than as a result of Disability), after the Board or the executive to which the Participant reports delivers to the Participant a written
demand for substantial performance that specifically identifies the manner in which the Participant has not substantially performed his duties; (ii) has engaged in willful misconduct or gross negligence that is materially injurious to the
Company or an Affiliate; (iii) has breached his duty of loyalty to the Company or an Affiliate; (iv) has without prior authorization removed from the premises of the Company or an Affiliate a document (of any media or form) relating to the
Company or an Affiliate or the customers of the Company or an Affiliate; or (v) has committed a felony or a 
  

 -2- 

 
serious crime involving moral turpitude. Any rights the Company or any of its Affiliates may have hereunder in respect of the events giving rise to Cause shall be in addition to the rights the
Company or any of its Affiliates may have under any other agreement with the Participant or at law or in equity. If, subsequent to a Participant’s termination of employment or services, it is discovered that such Participant’s employment
or services could have been terminated for Cause, the Participant’s employment or services shall, at the election of the Committee, in its sole discretion, be deemed to have been terminated for Cause retroactively to the date the events giving
rise to Cause occurred. 
 (g) “Chief Executive Officer” or “CEO” means the Chief Executive
Officer of the Company. 
 (h) “Change in Control” means, except as otherwise provided in any Award Agreement,
any one or more of the following events: (i) any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of assets of the Company that have a gross fair market value of 85% or more of the total gross
fair market value of all of the assets of the Company immediately prior to the transaction (or the first transaction in a series of related transactions) to any Person or group of related persons for purposes of Section 13(d) of the Exchange
Act (a “Group”), together with any affiliates thereof; (ii) the consummation of any plan or proposal for the liquidation or dissolution of the Company; (iii) any Person or Group shall become the beneficial owner, directly or
indirectly, of shares representing more than 25% of the aggregate voting power of the issued and outstanding stock entitled to vote in the election of directors (the “Voting Stock”) of the Company and such Person or Group has the power and
authority to vote such shares; (iv) the actual replacement of a majority of the Board over a two-year period from the individual directors who constituted the Board at the beginning of such period, and such replacement shall not have been
approved by a vote of at least a majority of the Board then still in office who either were members of such Board at the beginning of such period or whose election as a member of such Board was previously so approved; (v) any Person or Group
shall have acquired shares of Voting Stock of the Company such that such Person or Group has the power and authority to elect a majority of the members of the Board of Directors of the Company; or (vi) the consummation of a merger or
consolidation of the Company with another entity in which holders of the Stock immediately prior to the consummation of the transaction hold, directly or indirectly, immediately following the consummation of the transaction, 50% or less of the
common equity interest in the surviving corporation in such transaction. For purposes of the above definition, the term Person shall be defined as set forth Sections 13(d) and 14(d) of the Exchange Act. 

The Award Agreement for any Award subject to the requirements of Section 409A of the Code may prescribe a different definition of
the term “Change in Control” that will apply for purposes of that Award Agreement that complies with the requirements of Section 409A of the Code. 

(i) “Code” means the Internal Revenue Code of 1986, as amended. All references to the Code shall be interpreted to
include a reference to any applicable regulations, rulings or other official guidance promulgated pursuant to such section of the Code. 
  

 -3- 

 (j) “Committee” means the Compensation Committee or any such committee as
may be designated by the Board to administer the Plan, provided that at all times the membership of such committee shall not be less than three (3) members of the Board. Each Committee member (or member of any applicable subcommittee of the
Committee) must be: (i) a “non-employee director” (as defined in Rule 16b-3 under the Exchange Act) if required to meet the conditions of exemption for the Awards under the Plan from Section 16(b) of the Exchange Act; and
(ii) an “outside director” as defined in Section 162(m) of the Code and the regulations issued thereunder. 

(k) “Company” means ON Semiconductor Corporation, or any successor as provided in Section 21.4. 

(l) “Consultant” means a consultant or adviser who provides services to the Company or an Affiliate as an independent
contractor and not as an Employee; provided however that a Consultant may become a Participant in this Plan only if allowed under the definition of an employee benefit plan in Rule 405 promulgated under the Securities Act of 1933, as amended,
or other rules provided for registration on Form S-8 from time to time. 
 (m) “Covered Employee” means an
Employee who is, or could be, a “covered employee” as defined by Section 162(m) of the Code. 
 (n)
“Disability” means, except as otherwise provided in an Award Agreement, the inability of a Participant to engage in any substantially gainful activity by reason of any medically determinable physical or mental impairment that can be
expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. The permanence and degree of impairment shall be supported by medical evidence. Any determination of
Disability pursuant to this Plan is not an admission by the Company or an Affiliate that a Participant is disabled under federal or state law. 

(o) “Effective Date” means the date on which the Board approved the Plan as described in Section 1.3. 

(p) “Employee” means a common-law employee of the Company or an Affiliate. 

(q) “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. All references to a section of ERISA
shall be interpreted to include a reference to any applicable regulations, rulings or other official guidance promulgated pursuant to such section of ERISA. 

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

(s) “Fair Market Value” means the closing price of one share of Stock as reported on the NASDAQ or any exchange on which
the Stock is traded on the date such value is determined. If the Stock is not traded on such date, the fair market value is the closing price on the first immediately preceding business day on which the Stock was so traded. 

 

 -4- 

 (t) “Grant Date” means, as determined by the Committee, the latest to occur
of (i) the date as of which the Committee approves an Award, (ii) the date on which an Award to a prospective Employee, officer, Non-Employee Director or Consultant first becomes effective pursuant to Section 3.1, or (iii) such
other date as may be specified by the Committee in the Award Agreement. 
 (u) “Incentive Stock Option” means
an Option that is intended to meet the requirements of Section 422 of the Code or any successor provision thereto. 
 (v)
“Non-Employee Director” means a member of the Board of Directors of the Company or any Affiliate who is not an employee of the Company or any Affiliate. 

(w) “Non-Qualified Stock Option” means an Option that is not intended to be an Incentive Stock Option. 

(x) “Option” means the right to purchase Stock at a stated price for a specified period of time. An Option may either be
an Incentive Stock Option or a Non-Qualified Stock Option. 
 (y) “Participant” means an individual who, as an
Employee, officer or Non-Employee Director of, or Consultant to, the Company or any Affiliate, has been granted an Award under the Plan. 

(z) “Performance Compensation Award” means an Award granted to select Covered Employees pursuant to Article 7, 8 or
10 that is subject to the terms and conditions set forth in Article 11. All Performance Compensation Awards are intended to qualify as “performance-based compensation” exempt from the deduction limitations imposed by
Section 162(m) of the Code. 
 (aa) “Performance Cash Award” means an Award evidencing the right to
receive a payment in cash as determined by the Committee. 
 (bb) “Performance Criteria” means the criteria
that the Committee selects for purposes of establishing the Performance Goal or Performance Goals for a Participant for a Performance Period. The Performance Criteria that will be used to establish Performance Goals are limited to the following:

 (i) Earnings, Revenue and Cash Flow Metrics: Earnings before interest (income or expense), taxes, depreciation
and amortization (“EBITDA”); earnings before interest (income or expense) and taxes (“EBIT”); pre- or after-tax net income; revenue (gross or net); revenue from new products (gross or net); revenue growth; invoiced revenue;
collected revenue; operating income (gross or net); net operating income after taxes (“NOPAT”); operating margin; cash flow; net cash flow; operating cash flow; gross margin; return on net assets; return on shareholders’ equity;
return on investment or assets; return on capital; shareholder returns; gross or net profit margin; and earnings per share (diluted and fully diluted). 
  

 -5- 

 (ii) Stock Price Metrics: Stock price; Stock price growth; movement and
average selling price of Stock; shares of Stock repurchased; dividends; total shareholder return (“TSR”); and economic value added. 

(iii) Debt Related Metrics: Debt coverage ratios; total debt; principle payments on debt; total long-term debt; current
liabilities; accounts payable; current accrued liabilities; net current borrowings; interest expense; and credit rating. 

(iv) Equity Related Metrics: Retained earnings; total preferred equity; total common equity; market capitalization;
enterprise value; and total equity. 
 (v) Expense Metrics: Direct material costs; direct and indirect labor
costs; direct and indirect manufacturing costs; costs of goods sold; sales, general and administrative expenses; operating and non-operating expenses; cash and non-cash expenses; tax expenses; and total expenses. 

(vi) Asset Utilization Metrics: Cash; excess cash; accounts receivable; cash conversion cycle; work in process inventory;
finished goods inventory; current assets; working capital; total capital; fixed assets; total assets; standard hours; plant utilization; purchase price variance; and manufacturing overhead variance. 

(vii) Customer Metrics: Average selling prices; selling prices; market share; customer satisfaction; customer service and
care; on time delivery; brand awareness and perception; order fill rate; strategic positioning programs; warranty rates; return rates; new product releases and development; dealer performance; channel performance; dealer size; channel size; and
channel inventory. 
 (viii) Employee Based Metrics: Headcount; diversity; employee satisfaction; employee
turnover; employee productivity; employee performance; standard hours; and overtime hours. 
 (ix) Manufacturing
Metrics: Unit costs; cycle time; yield; and product quality. 
 (x) New Product Introduction Metrics:
Time to market; number of new products introduced; and return on investment on new products. 
 (xi) Project-Related
Metrics: Completion of major projects. 
 The Performance Criteria that will be used to establish Performance Goals with respect to any
Award other than a Performance Compensation Award that is subject to Article 11 will be set forth in the applicable Award Agreement and will include, but are not limited to, the above-listed Performance Criteria. Any of the Performance Criteria
may be measured either in absolute terms or as compared to any incremental increase or as compared to results of a peer group, indices, or any other basket of companies. Financial Performance Criteria may, but need not, be calculated in accordance
with generally accepted accounting principles (“GAAP”) or any successor method to GAAP, including International Financial Reporting Standards. The Committee shall, within the time prescribed by Section 162(m) of the Code, define in an
objective fashion the manner of calculating the Performance Criteria it selects to use in connection with any Performance Compensation Award for such Performance Period for such Participant. 

 

 -6- 

 (cc) “Performance Goals” means the goal or goals established in writing by
the Committee for a Performance Period based on the Performance Criteria. Depending on the Performance Criteria used to establish Performance Goals, the Performance Goals may be expressed in terms of overall Company performance, or the performance
of a division, Affiliate, or an individual. The Performance Goals may be stated in terms of absolute levels or relative to another company or companies or to an index or indices. 

(dd) “Performance Period” means one or more periods of time, which may be of varying and overlapping durations, as the
Committee may select, over which the attainment of one or more Performance Goals will be measured. 
 (ee) “Performance
Share” means a right granted to a Participant to receive a payment in the form of Stock, the payment of which is contingent upon achieving certain performance goals established by the Committee. 

(ff) “Performance Share Unit” means a right granted to a Participant to receive a payment in the form of Stock, cash, or
a combination thereof, the payment of which is contingent upon achieving certain performance goals established by the Committee. 

(gg) “Plan” means the ON Semiconductor Corporation Amended and Restated Stock Incentive Plan. 

(hh) “Restricted Period” means the period during which Restricted Stock or Restricted Stock Units are subject to
restrictions pursuant to the relevant provisions of the Plan. 
 (ii) “Restricted Stock” means Stock granted to
a Participant pursuant to Article 7 that is subject to certain restrictions and to the risk of forfeiture. 
 (jj)
“Restricted Stock Unit” means the right granted to a Participant pursuant to Article 7 to receive cash or Stock in the future, the payment of which is subject to certain restrictions and to the risk of forfeiture. 

(kk) “Separation from Service” means either: (i) the termination of a Participant’s employment with the
Company and all Affiliates due to death, retirement or other reasons; or (ii) a permanent reduction in the level of bona fide services the Participant provides to the Company and all Affiliates to an amount that is 20% or less of the average
level of bona fide services the Participant provided to the Company and all Affiliates in the immediately preceding 36 months, with the level of bona fide service calculated in accordance with Treasury Regulation Section 1.409A-1(h)(1)(ii).

 Solely for purposes of determining whether a Participant has a “Separation from Service,” a Participant’s
employment relationship is treated as continuing while the Participant is on military leave, sick leave, or other bona fide leave of absence (if the period of such leave does not exceed six months, or if longer, so long as the Participant’s
right to reemployment with the Company or an Affiliate is provided either by statute or contract). If the Participant’s period of 

 

 -7- 

 
leave exceeds six months and the Participant’s right to reemployment is not provided either by statute or by contract, the employment relationship is deemed to terminate on the first day
immediately following the expiration of such six-month period. Whether a Termination of Employment has occurred will be determined based on all of the facts and circumstances and in accordance with regulations issued by the United States Treasury
Department pursuant to Section 409A of the Code. 
 In the case of a Non-Employee Director, Separation from Service means
that such Director has ceased to be a member of the Board. 
 (ll) “Specified Employee” means certain officers
and highly compensated Employees of the Company as defined in Treasury Regulation Section 1.409A-1(i). The identification date for determining whether any Employee is a Specified Employee during any calendar year shall be the September 1
preceding the commencement of such calendar year. 
 (mm) “Stock” means the common stock of the Company.

 (nn) “Stock Appreciation Right” or “SAR” means the right to receive a payment equal to the
excess of the Fair Market Value of one share of Stock on the date of exercise of the SAR over the grant price of the SAR as determined pursuant to Article 9 and the applicable Award Agreement. 

(oo) “Stock Grant Award” means the grant of Stock to a Participant. 

(pp) “Termination of Employment” means, in the context of an Award that is subject to the requirements of
Section 409A of the Code, a “Separation from Service.” In the case of any other Award, “Termination of Employment” will be given its natural meaning. 

2.2 Gender and Number. Except when otherwise indicated by the context, words in the masculine gender when used in this Plan
document will include the feminine gender, the singular includes the plural, and the plural includes the singular. 
 ARTICLE
3 
 ELIGIBILITY AND PARTICIPATION 

3.1 Eligibility. 

(a) General. Awards may be made to individuals who on the Grant Date of the Award are Employees, officers, or Non-Employee
Directors of or Consultants to the Company or an Affiliate. Awards also may be made to prospective Employees, officers, Non-Employee Directors of, and Consultants to, the Company or an Affiliate in connection with written offers of an employment,
consulting or advisory relationship with the Company or an Affiliate. No portion of any Award granted to a prospective Employee, officer, Non-Employee Director or Consultant will vest, become exercisable, be issued or become effective prior to the
date on which such individual begins providing services to the Company or any Affiliate. 
  

 -8- 

 (b) Foreign Participants. The Committee may establish additional terms,
conditions, rules or procedures as the Committee deems necessary or advisable to accommodate the rules or laws of applicable non-U.S. jurisdictions, allow for tax-preferred treatment of Awards or otherwise provide for the participation by
Participants who reside outside of the U.S. Moreover, the Committee may approve such sub-plans, supplements to, or amendments, restatements, or alternative versions of the Plan as it may consider necessary or appropriate for such purposes without
thereby affecting the terms of the Plan as in effect for any other purpose; provided, however, that no such sub-plans, supplements, amendments, restatements, or alternative versions shall increase the share limitations contained in Section 5.1
of the Plan. 
 3.2 Actual Participation. Subject to the provisions of the Plan, the Committee may,
from time to time, select from among all eligible individuals, those to whom Awards will be granted and will determine the nature and amount of each Award. 

ARTICLE 4 

ADMINISTRATION 

4.1 Administration by the Committee. 

(a) General. The Committee shall be responsible for the administration of the Plan. The Committee, by majority action
thereof, is authorized to interpret the Plan, to prescribe, amend, and rescind rules and regulations relating to the Plan, to provide for conditions and assurances deemed necessary or advisable to protect the interests of the Company, and to make
all other determinations necessary for the administration of the Plan, but only to the extent not contrary to the express provisions of the Plan. Determinations, interpretations, or other actions made or taken by the Committee in good faith pursuant
to the provisions of the Plan shall be final, binding and conclusive for all purposes of the Plan. 
 (b) Delegation to
CEO. Notwithstanding the above, pursuant to specific written delegation promulgated from time to time by the Committee, which delegation shall be consistent with applicable provisions of Delaware Law, and subject to such restrictions and
limitations deemed appropriate by the Committee, the CEO shall have the authority to grant Awards, subject to terms and conditions set forth in the Award Agreement, to individuals to expedite the hiring process and retain talented Employees;
provided, however, that such individuals will not upon hire or as existing Employees be (i) Covered Employees, or (ii) subject to Section 16 of the Exchange Act. 

4.2 Authority of the Committee. The Committee shall have the authority, in its sole discretion, without limitation, to
determine: (i) the Participants who are entitled to receive Awards under the Plan; (ii) the types of Awards; (iii) the times when Awards shall be granted; (iv) the number of Awards; (v) the purchase price or exercise price,
if any; (vi) the period(s) during which such Awards shall be exercisable (whether in whole or in part); (vii) the restrictions applicable to Awards; (viii) the form of each Award Agreement, which need not be the same for each
Participant, (ix) the other terms and provisions of any Award (which need not be identical); and (x) the schedule for lapse of forfeiture restrictions or restrictions on exercisability of an Award and accelerations or waivers thereof,
based in each case on such considerations as the Committee in its sole discretion determines. The Committee shall have the authority to modify existing Awards, subject to Article 17 of this Plan. Notwithstanding the foregoing, the Committee
will not have the authority to accelerate the vesting or waive the forfeiture of any Performance Compensation Award other than as provided in an Award Agreement. 

 

 -9- 

 4.3 Award Agreement. Each Award shall be evidenced by an Award Agreement that
shall specify the type of Award granted and such other provisions and restrictions applicable to such Award as the Committee, in its discretion, shall determine. 

4.4 Decisions Binding. The Committee shall have the authority to interpret the Plan and subject to the provisions of the
Plan, any Award Agreement, and all decisions and determinations by the Committee with respect to the Plan are final, binding and conclusive on all parties. No member of the Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any Award granted under the Plan. 
 ARTICLE 5 

STOCK SUBJECT TO THE PLAN 

5.1 Number of Shares. Subject to Section 5.2 and Section 5.3, the total number of shares of Stock subject to all
Awards under the Plan shall be twenty six million one hundred thousand (26,100,000), plus the number of shares of Stock subject to Awards that were previously granted pursuant to the 2000 Plan that again become available for the grant of an Award
pursuant to Section 5.2 after February 17, 2010. Any shares of Stock that may be issued in connection with Awards other than Options and SARs shall be counted against the shares available for grant pursuant to the previous sentence as 1.58
shares for every one share that may be issued in connection with such Award. Any shares of Stock that may be issued in connection with the exercise of an Option or SAR shall be counted against the shares of Stock available for grant as one share.
The maximum number of shares of Stock that may be issued as Incentive Stock Options under the Plan shall be six million (6,000,000). The shares to be delivered under the Plan may consist, in whole or in part, of authorized but unissued Stock or
shares purchased on the open market or treasury Stock not reserved for any other purpose. As of February 17, 2010, thirty million seven hundred forty thousand one hundred sixty two (30,740,162) shares of Stock were available for the
granting of Awards pursuant to the 2000 Plan. The difference between such number and the basic award pool of twenty six million one hundred thousand (26,100,000) specified in the first sentence of this Section 5.1 shall be cancelled and no
longer available for the granting of Awards pursuant to the Plan. 
 5.2 Availability of Stock for Grant. Subject
to the express provisions of the Plan, if any Option or SAR Award granted under the Plan or the 2000 Plan terminates, expires, lapses for any reason, or is paid in cash, any Stock subject to such Award will again be Stock available for the grant of
an Award. Similarly, subject to the express provisions of the Plan, if any Award other than an Option or SAR Award granted under the Plan or the 2000 Plan terminates, expires, lapses for any reason, or is paid in cash, the number of shares of Stock
equal to 1.58 times the number of shares of Stock subject to such Award will again be Stock available for grant of an Award. To the maximum extent permitted by applicable law and any securities exchange or NASDAQ rule, shares of Stock subject to any
Award made pursuant to Article 15 shall not be counted against shares of Stock available for grant pursuant to this Plan. The exercise of a stock-settled SAR or broker-assisted “cashless” exercise of an Option (or a portion thereof)
will reduce the number of shares of Stock available for issuance pursuant to Section 5.1 by the entire number 
  

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of shares of Stock subject to that SAR or Option (or applicable portion thereof), even though a smaller number of shares of Stock will be issued upon such an exercise. Also, shares of Stock
tendered to pay the exercise price of an Option or tendered or withheld to satisfy a tax withholding obligation arising in connection with an Option, SAR or any other Award will not become available for grant or sale under the Plan. 

5.3 Adjustment in Capitalization. In the event of any change in the outstanding shares of Stock by reason of a Stock
dividend or split, recapitalization, merger, consolidation, combination, exchange of shares, or other similar corporate change, the aggregate number of shares of Stock available under the Plan and subject to each outstanding Award, and its stated
exercise price or the basis upon which the Award is measured, shall be adjusted appropriately by the Committee, whose determination shall be conclusive; provided, however, that fractional shares shall be rounded to the nearest whole share. Moreover,
in the event of such transaction or event, the Committee, in its discretion, may provide in substitution for any or all outstanding awards under the Plan such alternative consideration (including cash) as it, in good faith, may determine to be
equitable under the circumstances and may require in connection therewith the surrender of all Awards so replaced. Any adjustment to an Incentive Stock Option shall be made consistent with the requirements of Section 424 of the Code. Further,
with respect to any Option or Stock Appreciation Right that otherwise satisfies the requirements of the stock rights exception to Section 409A of the Code, any adjustment pursuant to this Section 5.3 shall be made consistent with the
requirements of the final regulations promulgated pursuant to Section 409A of the Code. 
 5.4 Annual Limitation on
Number of Shares Subject to Options or SARs to a Covered Employee. Notwithstanding any provision in this Plan document to the contrary, and subject to adjustment upon the occurrence of any of the events indicated in Section 5.3, the
maximum number of shares of Stock that may be granted pursuant to one or more Options or SARs to any one Participant, who is a Covered Employee, during any Company fiscal year shall be two million five hundred thousand (2,500,000). 

ARTICLE 6 

STOCK OPTIONS 

6.1 Grant of Options. Subject to the provisions of Article 5 and this Article 6, the Committee, at any time and from
time to time, may grant Options to such Participants and in such amounts as it shall determine. 
 (a) Exercise
Price. No Option shall be granted at an exercise price that is less than the Fair Market Value of one share of Stock on the Grant Date. 

(b) Time and Conditions of Exercise. The Committee shall determine the time or times at which an Option may be exercised in
whole or in part provided that the term of any Option granted under the Plan shall not exceed seven (7) years. The Committee shall also determine the performance or other conditions, if any, that must be satisfied before all or part of an
Option may be exercised. Unless otherwise provided in the Award Agreement, an Option will lapse immediately if a Participant’s employment or services is terminated for Cause. 

 

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 (c) Payment. The Committee shall determine the methods by which the exercise
price of an Option may be paid, the form of payment, including, without limitation, cash, promissory note, shares of Stock held for longer than six months (through actual tender or by attestation), any net-issuance arrangement or other property
acceptable to the Committee (including broker-assisted “cashless exercise” arrangements), and the methods by which shares of Stock shall be delivered or deemed to be delivered to Participants. 

(d) Evidence of Grant. All Options shall be evidenced by a written Award Agreement. The Award Agreement shall reflect the
Committee’s determinations regarding the exercise price, time and conditions of exercise, and forms of payment for the Option and such additional provisions as may be specified by the Committee. 

(e) No Repricing of Options. The Committee shall not reprice any Options previously granted under the Plan. 

6.2 Incentive Stock Options. Incentive Stock Options shall be granted only to Participants who are Employees and the terms
of any Incentive Stock Options granted pursuant to the Plan must comply with the following additional provisions of this Section 6.2: 

(a) Exercise Price. Subject to Section 6.2(e), the exercise price per share of Stock shall be set by the Committee,
provided that the exercise price for any Incentive Stock Option may not be less than the Fair Market Value of one share of Stock on the Grant Date. 

(b) Exercise. In no event may any Incentive Stock Option be exercisable for more than seven (7) years from the date of
its grant. 
 (c) Lapse of Option. An Incentive Stock Option shall lapse in the following circumstances:

 (i) The Incentive Stock Option shall lapse seven (7) years from the date it is granted, unless an earlier time is set
in the Award Agreement. 
 (ii) The Incentive Stock Option shall lapse upon termination for Cause or for any other reason,
other than the Participant’s death or Disability, unless otherwise provided in the Award Agreement. 
 (iii) If the
Participant has a Termination of Employment on account of Disability or death before the Option lapses pursuant to paragraph (i) or (ii) above, the Incentive Stock Option shall lapse, unless it is previously exercised, on the earlier of
(a) the scheduled expiration date of the Option; or (b) 12 months after the date of the Participant’s Termination of Employment on account of Disability or death. Upon the Participant’s Disability or death, any Incentive Stock
Options exercisable at the Participant’s Disability or death may be exercised by the Participant’s legal representative or representatives, by the person or persons entitled to do so pursuant to the Participant’s last will and
testament in the case of death, or, if the Participant fails to make testamentary disposition of such Incentive Stock Option or dies intestate, by the person or persons entitled to receive the Incentive Stock Option pursuant to the applicable laws
of descent and distribution. 
  

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 (d) Individual Dollar Limitation. The aggregate Fair Market Value (determined
as of the time an Award is made) of all shares of Stock with respect to which Incentive Stock Options are first exercisable by a Participant in any calendar year may not exceed $100,000.00 or such other limitation as may be imposed by
Section 422(d) of the Code, or any successor provision. To the extent that Incentive Stock Options are first exercisable by a Participant in excess of such limitation, the excess shall be considered Non-Qualified Stock Options. 

(e) Ten Percent Owners. An Incentive Stock Option may be granted to any individual who, at the Grant Date, owns stock
possessing more than ten percent of the total combined voting power of all classes of Stock of the Company only if such Option is granted at a price that is not less than 110% of Fair Market Value on the Grant Date and the Option is exercisable for
no more than five years from the Grant Date. 
 (f) Expiration of Incentive Stock Options. No Award of an
Incentive Stock Option may be made pursuant to this Plan after the tenth (10) anniversary of the Effective Date, unless the shareholders of the Company vote to approve an extension of the Plan. 

(g) Right to Exercise. Except as provided in Section 6.2(c)(iii), during a Participant’s lifetime, an Incentive
Stock Option may be exercised only by the Participant. 
 ARTICLE 7 

RESTRICTED STOCK UNITS AND RESTRICTED STOCK 

7.1 Grant of Restricted Stock Units and Restricted Stock. Subject to the provisions of Article 5 and this
Article 7, the Committee, at any time and from time to time, may grant Restricted Stock Units or Restricted Stock to such Participants and in such amounts as it shall determine. 

7.2 Restricted Stock Units. 

(a) Voting Rights. During the Restricted Period, Participants holding the Restricted Stock Units granted hereunder shall
have no voting rights with respect to the shares subject to such Restricted Stock Units prior to the issuance of such shares pursuant to the Plan. 

(b) Form and Timing of Payment. Payment for any vested Restricted Stock Units issued pursuant to this
Article 7 shall be made in one lump sum payment of shares of Stock, cash or a combination thereof, equal to the Fair Market Value (determined as of a specified date) of the number of shares of Stock equal to the number of vested Restricted
Stock Units with respect to which the payment is made. The payment shall be made to the Participant on or before March 15 of the calendar year following the calendar year in which the Restricted Stock Units vest in accordance with the
“short-term deferral” exception to Section 409A as set forth in Treasury Regulation Section 1.409A-1(b)(4). 
  

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 7.3 Grant of Restricted Stock. 

(a) Issuance and Restrictions. Restricted Stock shall be subject to such restrictions on transferability and other
restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Stock). These restrictions may lapse separately or in combination at such times and pursuant to such circumstances, as the Committee
determines at the time of the grant of the Award or thereafter. 
 (b) Forfeiture. Subject to Section 7.4(b),
upon Termination of Employment or the failure to satisfy one or more Performance Criteria during the applicable Restricted Period, any remaining shares under the Restricted Stock Awards that are subject to the restrictions set forth in the Award
shall be forfeited. 
 (c) Certificates for Restricted Stock. Restricted Stock granted pursuant to the Plan may be
evidenced in such manner as the Committee shall determine. If certificates representing shares of Restricted Stock are registered in the name of the Participant, the certificates must bear an appropriate legend referring to the terms, conditions,
and restrictions applicable to such Restricted Stock, and the Company may, in its discretion, retain physical possession of the certificate until such time as all applicable restrictions lapse. 

7.4 Restricted Period and Vesting Conditions. 

(a) Restricted Period. Except as set forth in Sections 7.4(b) and 7.4(c), the Restricted Period for any Restricted Stock or
Restricted Stock Units with respect to which the restrictions lapse solely based on the passage of time shall not be less than three (3) years and the Restricted Period for any Restricted Stock or Restricted Stock Units with respect to which
the restrictions lapse based on the satisfaction of Performance Criteria shall not be less than one (1) year. In either case, incremental amounts of the Restricted Stock or Restricted Stock Units may be released from restriction during the
Restricted Period in accordance with the provisions of the Award Agreement. 
 (b) Modification of Restrictions.
The Committee, in its discretion, may provide in the Award Agreement for any Restricted Stock or Restricted Stock Unit Award that restrictions or forfeiture conditions relating to the Restricted Stock or the Restricted Stock Units will be waived in
whole or in part in the event of a Termination of Employment due to death, Disability, retirement or the occurrence of a Change in Control. 

(c) De Minimis Exception. The sum of the shares of Stock subject to any (i) Restricted Stock or Restricted Stock Unit
Award that does not comply with the requirements of Section 7.4(a); (ii) Performance Share or Performance Share Unit Award that does not comply with the requirements of Section 8.5(a); and (iii) Stock Grant Award may not exceed
ten percent (10%) of the total number of shares of Stock subject to all Awards under the Plan, as set forth in Section 5.1. 

ARTICLE 8 

PERFORMANCE SHARES, PERFORMANCE SHARE UNITS AND PERFORMANCE CASH AWARDS 

8.1 Grant of Performance Shares or Performance Share Units. Subject to the provisions of Article 5 and this
Article 8, Performance Shares or Performance Share Units may be granted to Participants at any time and from time to time as shall be determined by the Committee. The Committee shall have complete discretion in determining the number of
Performance Shares or Performance Share Units granted to each Participant. 
  

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 8.2 Goals for Performance Shares or Performance Share Units. The Committee
shall set Performance Goals for a particular Performance Period in its discretion which, depending on the extent to which the goals are met, will determine the ultimate value of the Performance Share or Performance Share Units to the Participant.

 8.3 Form and Timing of Payment. Payment for vested Performance Shares shall be made in Stock. Payments for
vested Performance Share Units shall be made in cash, Stock or a combination thereof as determined by the Committee. All payments for Performance Shares and Performance Share Units shall be made in one lump sum. As a general rule, payment for
Performance Shares or Performance Share Units shall be made on or before March 15 of the calendar year following the calendar year in which the right to the payment of the Performance Shares or Performance Share Units arises in accordance with
the “short-term deferral” exception to Section 409A as set forth in Treasury Regulation Section 1.409A-1(b)(4). 

8.4 Performance Cash Awards. Subject to the Provisions of Article 5 and this Article 8, Performance Cash Awards
may be granted to Participants at any time and from time to time as determined by the Committee. A Performance Cash Award grants a Participant the right to receive an amount of cash depending on the satisfaction of one or more Performance Goals for
a particular Performance Period, as determined by the Committee. The Committee shall have complete discretion to determine the amount of any Performance Cash Award granted to a Participant. Payment for Performance Cash Awards shall be made on or
before March 15 of the calendar year following the calendar year in which the right to the payment of the Performance Cash Award arises in accordance with the “short-term deferral” exception to Section 409A as set forth in
Treasury Regulation Section 1.409A-1(b)(4). 
 8.5 Vesting Conditions for Performance Shares and Performance Share
Units. 
 (a) Vesting Period. Except as set forth in Sections 8.5(b) and 8.5(c), no Performance Shares or
Performance Share Units may fully vest during the one (1) year period following the Grant Date for such Performance Shares or Performance Share Units; provided, however, that the Performance Shares or Performance Share Units may vest in
increments during such one (1) year period in accordance with the provisions of the Award Agreement. 
 (b)
Modification of Restrictions. The Committee, in its discretion, may provide in the Award Agreement for any Performance Share or Performance Share Unit Award that such Performance Shares or Performance Share Units will vest in whole or
in part in the event of a Termination of Employment due to death, Disability, retirement or the occurrence of a Change in Control. 

(c) De Minimis Exception. The sum of the shares of Stock subject to any (i) Performance Share or Performance Share
Unit Award that does not comply with the requirements of Section 8.5(a); (ii) Restricted Stock or Restricted Stock Unit Award that does not comply with the requirements of Section 7.4(a); and (iii) Stock Grant Award may not
exceed ten percent (10%) of the total number of shares of Stock subject to all Awards under the Plan, as set forth in Section 5.1. 
  

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 ARTICLE 9 

STOCK APPRECIATION RIGHTS 

9.1 Grant of Stock Appreciation Rights. Subject to the provisions of Article 5 and this Article 9, Stock
Appreciation Rights (“SARs”) may be granted to Participants at any time and from time to time as shall be determined by the Committee. SARs may be granted in connection with the grant of an Option, in which case the exercise of SARs will
result in the surrender of the right to purchase the shares under the Option as to which the SARs were exercised. When SARs are granted in connection with the grant of an Incentive Stock Option, the SARs shall have such terms and conditions as shall
be required by Section 422 of the Code. Alternatively, SARs may be granted independently of Options. 
 9.2
Exercisability of SARs. SARs granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which need not be the same for all Participants;
provided, however, that no SAR shall be exercisable later than seven (7) years from the Grant Date. 
 9.3 Exercise
of SARs. Upon exercise of the SAR or at a fixed date after all or part of the SAR becomes exercisable, the Participant shall be entitled to receive payment of an amount determined by multiplying (a) the difference, if any, of the Fair
Market Value of a share of Stock on the date of exercise over the price of the SAR fixed by the Committee at the Grant Date, which shall not be less than the Fair Market Value of a share of Stock at the Grant Date, by (b) the number of shares
with respect to which the SAR is exercised. 
 9.4 Form and Timing of Payment. Payment for SARs shall be made in
Stock and shall be payable at the time specified in the Award Agreement for such SARs. 
 ARTICLE 10 

STOCK GRANT AWARDS 

Subject to the provisions of Article 5 and this Article 10, Stock Grant Awards may be granted to Participants at any time and
from time to time as shall be determined by the Committee. A Stock Grant Award grants a Participant the right to receive (or purchase at such price as determined by the Committee) shares of Stock free of any vesting restrictions. The purchase price,
if any, for a Stock Grant Award shall be payable in cash or other form of consideration acceptable to the Committee. A Stock Grant Award may be granted or sold as described in the preceding sentence in respect of past services or other valid
consideration, or in lieu of any cash compensation due to such Participant. All Stock Grant Awards will be evidenced by a written Award Agreement. The sum of the shares of Stock subject to any (i) Stock Grant Award; (ii) Restricted Stock
or Restricted Stock Unit Award that does not comply with the requirements of Section 7.4(a); and (iii) Performance Share or Performance Share Unit Award that does not comply with the requirements of Section 8.5(a) may not exceed ten
percent (10%) of the total number of shares of Stock subject to all Awards under the Plan, as set forth in Section 5.1. 
  

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 ARTICLE 11 

PERFORMANCE COMPENSATION AWARDS 

11.1 Grant of Performance Compensation Awards. Options granted to Covered Employees pursuant to Article 6 and SARs
granted to Covered Employees pursuant to Article 9 should, by their terms, qualify for the “performance-based compensation” exception to the deduction limitations of Section 162(m) of the Code. The Committee, in the exercise of
its complete discretion, also may choose to qualify some or all of the Restricted Stock Units or Restricted Stock Awards granted to Covered Employees pursuant to Article 7 and/or some or all of the Performance Shares, Performance Share Units or
Performance Cash Awards granted to Covered Employees pursuant to Article 8 and/or some or all of the Stock Grant Awards granted to Covered Employees pursuant to Article 10 for the “performance-based compensation” exception to the
deduction limitations of Section 162(m) of the Code. If the Committee, in its discretion, decides that a particular Award to a Covered Employee should qualify as “performance-based compensation,” the Committee will grant a Performance
Compensation Award to the Covered Employee and the provisions of this Article 11 shall control over any contrary provision contained in Articles 7, 8 or 10. If the Committee concludes that a particular Award to a Covered Employee should
not be qualified as “performance-based compensation,” the Committee may grant the Award without satisfying the requirements of Section 162(m) of the Code and the provisions of this Article 11 shall not apply. 

11.2 Applicability. This Article 11 shall apply only to Awards to those Covered Employees selected by the Committee to
receive Performance Compensation Awards. The designation of a Covered Employee as a Participant for any Performance Period shall not in any manner entitle the Participant to receive a Performance Compensation Award for such Performance Period.
Moreover, designation of a Covered Employee as a Participant for a particular Performance Period shall not require designation of such Covered Employee as a Participant for any subsequent Performance Period. 

11.3 Committee Discretion with Respect to Performance Compensation Awards. With regard to a particular Performance Period,
the Committee shall have full discretion to select the length of the Performance Period, the type of Performance Compensation Awards to be issued, the kind and/or level of the Performance Goal or Goals and whether the Performance Goal or Goals apply
to the Company, an Affiliate, or any division or business unit thereof or the Participant or any group of Participants. 
 11.4
Establishment of Performance Goals. The Performance Goals for any Performance Compensation Award granted pursuant to this Article 11 shall be established by the Committee in writing not later than ninety (90) days after the
commencement of the Performance Period for such Award; provided that (a) the outcome must be substantially uncertain at the time the Committee establishes the Performance Goals; and (b) in no event will the Committee establish the
Performance Goals for any Performance Compensation Award after twenty-five percent (25%) of the Performance Period for such Award has elapsed. 
  

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 11.5 Performance Evaluation; Adjustment of Goals. At the time that a
Performance Compensation Award is first issued, the Committee, in the Award Agreement or in another written document, may specify whether performance will be evaluated including or excluding the effect of any of the following events that occur
during the Performance Period: 
 (a) Judgments entered or settlements reached in litigation; 

(b) The write down of assets; 

(c) The impact of any reorganization or restructuring; 

(d) The impact of changes in tax laws, accounting principles, regulatory actions or other laws affecting reported results; 

(e) Extraordinary non-recurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s
discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to shareholders or Annual Report on Form 10-K, as the case may be, for the applicable year; 

(f) The impact of any mergers, acquisitions, spin-offs or other divestitures; and 

(g) Foreign exchange gains and losses. 

The inclusion or exclusion of these items shall be expressed in a form that satisfies the requirements of Section 162(m) of the
Code. The Committee, in its discretion, also may, within the time prescribed by Section 162(m) of the Code, adjust or modify the calculation of Performance Goals for such Performance Period in order to prevent the dilution or enlargement of the
rights of Participants: (i) in the event of, or in anticipation of, any unusual or extraordinary corporate item, transaction, event, or development; or (ii) in recognition of, or in anticipation of, any other unusual or nonrecurring events
affecting the Company, or the financial statements of the Company, or in response to, or in anticipation of, changes in applicable laws, regulations, accounting principles, or business conditions. 

11.6 Adjustment of Performance Compensation Awards. The Committee shall have the sole discretion to adjust
the determinations of the degree of attainment of the preestablished Performance Goals. Notwithstanding any provision herein to the contrary, the Committee may not make any adjustment or take any other action with respect to any Performance
Compensation Award that will increase the amount payable under any such Award. The Committee shall retain the sole discretion to adjust Performance Compensation Awards downward or to otherwise reduce the amount payable with respect to any
Performance Compensation Award. 
 11.7 Payment of Performance Compensation Awards. Unless otherwise provided in
the relevant Award Agreement, a Participant must be an Employee of the Company or an Affiliate on the day a Performance Compensation Award for such Performance Period is paid to the Participant. Furthermore, a Participant shall be eligible to
receive payment pursuant to a Performance Compensation Award for a Performance Period only if the Performance Goals for such Performance Period are achieved. 
  

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 11.8 Certification by Committee. Notwithstanding any provisions
to the contrary, the payment of a Performance Compensation Award shall not occur until the Committee certifies, in writing, that the pre-established Performance Goals and any other material terms and conditions precedent to such payment have been
satisfied. 
 11.9 Maximum Award Payable. The maximum Performance Compensation Award payable to any one
Participant for a Performance Period is two million five hundred thousand (2,500,000) shares of Stock. In addition, the maximum amount of cash payable under a Performance Compensation Award to any one Participant for a Performance Period is the
dollar amount determined by multiplying two million five hundred thousand (2,500,000) by the Fair Market Value of one share of Stock as of the first day of the Performance Period. 

ARTICLE 12 

CHANGE IN CONTROL 

If a Change of Control occurs, the Board shall have the authority and discretion, but shall not have any obligation, to provide that all
or part of outstanding Options, Stock Appreciation Rights, and other Awards shall become fully exercisable and all or part of the restrictions on outstanding Awards shall lapse. To the extent that this provision causes Incentive Stock Options to
exceed the dollar limitation set forth in Section 6.2(d), the excess Options shall be deemed to be Non-Qualified Stock Options. Upon, or in anticipation of, such an event, the Committee may cause every Award outstanding hereunder to terminate
at a specific time in the future and shall give each Participant the right to exercise Awards during a period of time as the Committee, in its sole and absolute discretion, shall determine. The acceleration of vesting of any Performance Compensation
Awards shall be done in compliance with Section 162(m) of the Code. 
 ARTICLE 13 

NON-TRANSFERABILITY 

13.1 General. The Committee may, in its sole discretion, determine the right of a Participant to transfer any Award granted
under the Plan. Unless otherwise determined by the Committee, no Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution or
pursuant to a domestic relations order (that would otherwise qualify as a qualified domestic relations order as defined in the Code or Title I of ERISA but for the fact that the order pertains to an Award) in favor of a spouse or, if
applicable, until the termination of any Restricted Period or Performance Period as determined by the Committee. 
 13.2
Beneficiary Designation. Notwithstanding Section 13.1, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to
any Award upon the Participant’s death. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to the
Participant, except to the extent the Plan and Award Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If no beneficiary has been designated or survives the Participant, payment shall
be made to the person entitled thereto pursuant to the Participant’s will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time provided the change or
revocation is provided to the Committee. 
  

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 13.3 Stock Certificates. Notwithstanding anything herein to the contrary, the
Company shall not be required to issue or deliver any certificates evidencing shares of Stock pursuant to the exercise of any Award, unless and until the Committee has determined, with advice of counsel, that the issuance and delivery of such
certificates is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange or quotation system on which the shares of Stock are listed, quoted or traded. All Stock
certificates delivered pursuant to the Plan are subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with federal, state, or foreign jurisdiction securities or other laws, rules and
regulations and the rules of any exchange or automated quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate to reference restrictions applicable to the Stock. In addition to the
terms and conditions provided herein, the Board may require that a Participant make such reasonable covenants, agreements, and representations as the Board, in its discretion, deems advisable in order to comply with any such laws, regulations, or
requirements. 
 ARTICLE 14 

COMPANY DISCRETION 

14.1 Employment. Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate any
Participant’s employment or service at any time, nor confer upon any Participant any right to continue in the employ or service of the Company. 

14.2 Participant. No Employee shall have a right to be selected as a Participant, or, having been so selected, to be
selected again as a Participant. 
 14.3 No Rights to Awards. No Participant, Employee, or other person shall have
any claim to be granted any Award pursuant to the Plan, and neither the Company nor the Committee is obligated to treat Participants, Employees, and other persons uniformly. 

ARTICLE 15 

SUBSTITUTION OF AWARDS 

To the maximum extent permitted by applicable law and any securities exchange or NASDAQ rule, any Award may be granted under this Plan in
substitution for awards held by any individual who is an employee of another corporation who becomes an Employee of the Company as the result of a merger, consolidation or reorganization of the corporation with the Company, or the acquisition by the
Company of the assets of the corporation, or the acquisition by the Company of stock of the corporation as the result of which such corporation becomes an Affiliate or a subsidiary of the Company. The terms and conditions of the Awards so granted
may be set forth in a notice of conversion or in such other form as the Committee deems appropriate and may vary from the terms and conditions set forth in this Plan to such extent as the Committee at the time of granting the Award may deem
appropriate to conform, in whole or in part, to the provisions of the Award in substitution for which they are granted. However, in the event that the Award for which a substitute Award is being granted is an Incentive Stock

  

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Option, no variation shall adversely affect the status of any substitute Award as an Incentive Stock Option under the Code. In addition, in the event that the award for which a substitute Award
is being granted is a Non-Qualified Stock Option or a Stock Appreciation Right that otherwise satisfies the requirements of the “stock rights exception” to Section 409A of the Code, no variation shall adversely affect the status of
any substitute Award under the stock rights exception to Section 409A of the Code. 
 ARTICLE 16 

AMENDMENT, MODIFICATION, AND TERMINATION 

The Board may at any time, and from time to time, terminate, amend or modify the Plan; provided however, that any such action of the
Board shall be subject to approval of the shareholders to the extent required by law, regulation or any rule of any exchange or automated quotation system on which shares of Stock are listed, quoted or traded. Notwithstanding the above, to the
extent permitted by law, the Board may delegate to the Committee or the CEO the authority to approve non-substantive amendments to the Plan. No amendment, modification, or termination of the Plan or any Award under the Plan shall in any manner
adversely affect any Award theretofore granted under the Plan without the consent of the holder thereof (unless such change is required to cause the benefits under the Plan (i) to qualify as performance-based compensation within the meaning of
Section 162(m) of the Code and applicable interpretive authority thereunder or (ii) to comply with the provisions of Section 409A of the Code). Except as provided in Section 5.3, neither the Board, the CEO nor the Committee may,
without the approval of the shareholders, (a) reduce the purchase price or exercise price of any outstanding Award, including any Option or SAR; (b) increase the number of shares available under the Plan (other than any adjustment as
provided in Section 5.3); (c) grant Options with an exercise price that is below Fair Market Value on the Grant Date; (d) reprice previously granted Options or SARs; or (e) cancel any Option or SAR in exchange for cash or any
other Award or in exchange for any Option or SAR with an exercise price that is less than the exercise price of the original Option or SAR. Additional rules relating to amendments to the Plan or any Award Agreement to assure compliance with
Section 409A of the Code are set forth in Section 19.3. 
 ARTICLE 17 

TAX WITHHOLDING 

17.1 Tax Withholding. The Company shall have the power to withhold, or require a Participant to remit to the Company, an
amount sufficient to satisfy federal, state, and local withholding tax requirements on any Award under the Plan. To the extent that alternative methods of withholding are available under applicable tax laws, the Company shall have the power to
choose among such methods. 
 17.2 Form of Payment. To the extent permissible under applicable tax, securities,
and other laws, the Company may, in its sole discretion, permit the Participant to satisfy a tax withholding requirement by (a) using already owned shares that have been held by the Participant for at least six (6) months; (b) a
broker-assisted “cashless” transaction; (c) directing the Company to apply shares of Stock to which the Participant is entitled pursuant to the Award (including, for this purpose, the filing of an election under Section 83(b) of
the Code), to satisfy the required minimum statutory withholding amount; or (d) personal check or other cash equivalent acceptable to the Company. 
  

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 17.3 Tax upon Disposition of Shares Subject to Section 422 Restrictions.
In the event that a Participant shall dispose of, whether by sale, exchange, gift, the use of a qualified domestic relations order in favor of a spouse (that would otherwise qualify as a qualified domestic relations order as defined in the Code or
Title I of ERISA but for the fact that the order pertains to an Award), any shares of Stock of the Company that are deemed to have been purchased by the Participant pursuant to an Incentive Stock Option and that the Participant acquired within
two (2) years of the Grant Date of the related Option or within one (1) year after the acquisition of such shares of Stock, the Participant will notify the secretary of the Company of such disposition no later than fifteen (15) days
following the date of the disposition. Such notification shall include the date or dates of the disposition, the number of shares of Stock of which the Participant disposed, and the consideration received, if any, for such shares of Stock. If the
Company so requests, the Participant shall forward to the secretary of the Company any amount requested by the Company for the purpose of satisfying its liability, if any, to withhold federal, state or local income or earnings tax or any other
applicable tax or assessment (plus interest or penalties thereon, if any, caused by delay in making such payment) incurred by reason of such disposition. 

ARTICLE 18 

INDEMNIFICATION 

Each person who is or shall have been a member of the Committee or of the Board or the CEO shall be indemnified and held harmless by the
Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him in connection with or resulting from any claim, action, suit, or proceeding to which he may be a party or in which he may be
involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him in settlement thereof, with the Company’s approval, or paid by him in satisfaction of any judgment in any such action,
suit, or proceeding against him, provided he shall give the Company an opportunity, at its own expense, to handle and defend the same before he undertakes to handle and defend it on his own behalf. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such person may be entitled under the Company’s articles of incorporation, bylaws, resolution or agreement, as a matter of law, or otherwise, or any power that the Company may have to
indemnify him or hold him harmless. 
 ARTICLE 19 

REQUIREMENTS OF LAW 

19.1 Requirements of Law. The granting of Awards and the issuance of shares and/or cash under the Plan shall be subject to
all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. The Company shall be under no obligation to register pursuant to the Securities Act of 1933, as
amended, any of the shares of Stock issued pursuant to the Plan. If the shares of Stock issued pursuant to the Plan may, in certain circumstances, be exempt from registration pursuant to the Securities Act of 1933, as amended, the Company may
restrict the transfer of such shares in such manner as it deems advisable to ensure the availability of any such exemption. 
  

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 19.2 Governing Law. The Plan and all agreements into which the Company and any
Participant enter pursuant to the Plan shall be construed in accordance with and governed by the laws of the State of Delaware. The Plan is an unfunded performance-based bonus plan for a select group of management or highly compensated employees and
is not intended to be subject to ERISA. 
 19.3 Section 409A of the Code. 

(a) General Compliance. Some of the Awards that may be granted pursuant to the Plan (including, but not necessarily limited
to, Restricted Stock Unit Awards, Performance Share Awards, Performance Share Unit Awards, Performance Cash Awards and Stock Grant Awards) may be considered to be “non-qualified deferred compensation” subject to Section 409A of the
Code. If an Award is subject to Section 409A of the Code, the Company intends (but cannot and does not guarantee) that the Award Agreement and this Plan comply fully with and meet all of the requirements of Section 409A of the Code or an
exception thereto and the Award Agreement shall include such provisions, in addition to the provisions of this Plan, as may be necessary to assure compliance with Section 409A of the Code or an exception thereto. An Award subject to
Section 409A of the Code also shall be administered in good faith compliance with the provisions of Section 409A of the Code as well as applicable guidance issued by the Internal Revenue Service and the Department of Treasury. To the
extent necessary to comply with Section 409A of the Code, any Award that is subject to Section 409A of the Code may be modified, replaced or terminated in the discretion of the Committee. Notwithstanding any provision of this Plan or any
Award Agreement to the contrary, in the event that the Committee determines that any Award is or may become subject to Section 409A of the Code, the Company may adopt such amendments to the Plan and the related Award Agreements, without the
consent of the Participant, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effective dates), or take any other action that the Committee determines to be necessary or appropriate to either
comply with Section 409A of the Code or to exclude or exempt the Plan or any Award from the requirements of Section 409A of the Code. 

(b) Delay for Specified Employees. If, at the time of a Participant’s Separation from Service, the Company has any
Stock which is publicly traded on an established securities market or otherwise, and if the Participant is considered to be a Specified Employee, to the extent any payment for any Award is subject to the requirements of Section 409A of the Code
and is payable upon the Participant’s Separation from Service, such payment shall not commence prior to the first business day following the date which is six (6) months after the Participant’s Separation from Service (or if earlier
than the end of the six (6) month period, the date of the Participant’s death). Any amounts that would have been distributed during such six (6) month period will be distributed on the day following the expiration of the six
(6) month period. 
  

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 (c) Prohibition on Acceleration or Deferral. Under no circumstances may the
time or schedule of any payment for any Award that is subject to the requirements of Section 409A of the Code be accelerated or subject to further deferral except as otherwise permitted or required pursuant to regulations and other guidance
issued pursuant to Section 409A of the Code. If the Company fails to make any payment pursuant to the payment provisions applicable to an Award that is subject to Section 409A of the Code, either intentionally or unintentionally, within
the time period specified in such provisions, but the payment is made within the same calendar year, such payment will be treated as made within the time period specified in the provisions. In addition, in the event of a dispute with respect to any
payment, such payment may be delayed in accordance with the regulations and other guidance issued pursuant to Section 409A of the Code. 

19.4 Securities Law Compliance. With respect to any Participant who is, on the relevant date, obligated to file reports
pursuant to Section 16 of the Exchange Act, transactions pursuant to this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors pursuant to the Exchange Act. Notwithstanding any other provision of the Plan,
the Committee may impose such conditions on the exercise of any Award as may be required to satisfy the requirements of Rule 16b-3 or its successors pursuant to the Exchange Act. To the extent any provision of the Plan or action by the Committee
fails to so comply, it shall be void to the extent permitted by law and voidable as deemed advisable by the Committee. 
 19.5
Restrictions. Subject to Sections 7.4 and 8.5, the Committee shall impose such restrictions on any Awards under the Plan as it may deem advisable, including without limitation, restrictions under applicable federal securities law,
under the requirements of NASDAQ or any other exchange or automated quotation system upon which the Stock is then listed, quoted or traded and under any blue sky or state securities laws applicable to such Awards. 

ARTICLE 20 

GENERAL PROVISIONS 

20.1 Funding. The Company shall not be required to segregate any of its assets to ensure the payment of any Award under the
Plan. Neither the Participant nor any other persons shall have any interest in any fund or in any specific asset or assets of the Company or any other entity by reason of any Award, except to the extent expressly provided hereunder or in an Award
Agreement. The interests of each Participant hereunder are unsecured and as such Participants and their beneficiaries shall be considered to be general creditors of the Company. 

20.2 No Shareholders Rights. No Award gives the Participant any of the rights of a shareholder of the Company unless and
until shares of Stock are in fact issued to such person in connection with such Award. 
 20.3 Titles and
Headings. The titles and headings of the Articles in the Plan are for convenience of reference only and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 

20.4 Successors and Assigns. The Plan shall be binding upon and inure to the benefit of the successors and permitted
assigns of the Company, including without limitation, whether by way of merger, consolidation, operation of law, assignment, purchase, or other acquisition of substantially all of the assets or business of the Company, and any and all such
successors and assigns shall absolutely and unconditionally assume all of the Company’s obligations under the Plan. 
  

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 20.5 Survival of Provisions. The rights, remedies, agreements, obligations and
covenants contained in or made pursuant to this Plan, any agreement and any notices or agreements made in connection with this Plan shall survive the execution and delivery of such notices and agreements and the delivery and receipt of such shares
of Stock if required by Section 13.3, shall remain in full force and effect. 
  

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