Document:

exhibit1017supplementexe

                                                                                        ENTERPRISE BANK SUPPLEMENTAL EXECUTIVE RETIREMENT AND DEFERRED                                COMPENSATION PLAN      WHEREAS, Enterprise Bank and Trust Company (the “Company”) desires to establish an unfunded plan  maintained for the purpose of providing deferred compensation for a select group of management or highly  compensated employees within the meaning of the United States Code of Federal Regulations Section  2520.104-23 and Sections 201(2), 301(a)(3) and 401(a)(1) of  the Employee Retirement Income Security  Act of 1974 (“ERISA”);    NOW,  THEREFORE,     effective January  1,  2018,  the Enterprise  Bank  Supplemental  Executive  Retirement and Deferred Compensation Plan (the “Plan”) is hereby established as follows:      SECTION 1.  PURPOSE OF PLAN    The Plan is unfunded and is maintained for the purpose of providing deferred compensation to a select  group of management and highly compensated employees of the Company within the meaning of the  United  States  Code  of  Federal  Regulations  Section  2520.104-23  and  Sections  201(2),  301(a)(3)  and  401(a)(1) of ERISA.  The Plan will be administered in accordance with such purpose and in accordance  with the provisions of Section 409A of the Code.      SECTION 2.  DEFINITIONS    2.1   “Administrator” means  the  Board  or  the  committee  or  subcommittee  appointed  pursuant  to        Section 16.1.    2.2   “Beneficiary” means the person or entity determined to be a Participant’s beneficiary pursuant to        Section 14.    2.3   “Board” means the board of directors of the Company.    2.4   “Change in Control” means a “change in ownership” of the Company, a “change in effective        control” of the Company, or a “change in ownership of a substantial portion of the assets” of the        Company (within the meaning of Section 409A of the Code).    2.5   “Code” means the Internal Revenue Code of 1986, as amended from time to time.    2.6   “Company”  means Enterprise  Bank  and  Trust  Company, and  any  subsidiaries  or  affiliated        business entities which are treated as one employer with Enterprise Bank and Trust Company in        accordance with the Treasury Regulation Section 1.409A-1(g) and which adopt this Plan with the        consent of Enterprise Bank and Trust Company.  Enterprise Bank and Trust Company shall have        the  sole  authority  to  administer,  interpret,  amend,  suspend  or  terminate  the  Plan,  as  the        “Company”.      2.7   “Compensation” means the base salary paid to, and any annual incentive compensation earned        by, a Participant for the Plan Year.  Notwithstanding the foregoing, for purposes of Section 7                                             1  

 

      “Compensation” means the base salary paid to a Participant for a Plan Year.    2.8   “Disability” means a condition in which the Participant:          (a)   is determined to be totally disabled by the Social Security Administration; or                (b)   is  determined  to  be  disabled  by  the  insurer  under  the  Company’s  insured long-term              disability plan, provided the definition of long-term disability under such plan satisfies a              definition of disability under Treasury Regulation Section 1.409A-3(i)(4).    2.9   “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time        to time.    2.10  “Normal Retirement Age” means age 62.    2.11  “Participant” means  an  employee  of  the  Company  who  is  eligible  to  participate  in  the  Plan        pursuant to Section 3.    2.12  “Plan” means  the Enterprise  Bank  Supplemental  Executive  Retirement  and  Deferred        Compensation Plan, as set forth herein and as amended from time to time.    2.13  “Plan Year” means the calendar year.    2.14  “Section  409A  of  the  Code”  means  Section  409A  of the  Internal  Revenue  Code  of  1986  as        amended and the related Treasury Regulations.       SECTION 3.  ELIGIBLE EMPLOYEES    The Board  of  Directors shall  determine  which  management  employees  and  other  employees  of  the  Company shall be eligible to participate in the Plan from time to time, the eligibility waiting period and  such other conditions as may be applicable from time to time.  Plan eligibility shall be communicated to  employees who shall elect in writing to participate in the Plan and acknowledge and agree to the terms of  the Plan.       SECTION 4.  ELECTION TO DEFER COMPENSATION    The provisions of this Section 4 shall apply on and after January 1, 2020.  The first Plan Year for which a  Participant may elect to defer from Compensation under this Section 4 shall be the Plan Year beginning  January 1, 2020.      A Participant may elect to defer a specified percentage of his Compensation (from one percent (1%) to  fifty percent (50%) of base salary, and from one percent (1%) to one hundred percent (100%) of any  annual incentive) for a Plan Year by filing an election with the Administrator (pursuant to Section 5) on  or prior to such date that the Administrator may specify (but no later than the last day of the preceding  Plan Year).  A separate election may be made with respect to any annual incentive to be earned for the  Plan Year.  Any election so made shall not be binding for any following Plan Year, and thus a new election  must be filed for any following Plan Year on such date that the Administrator may specify (but no later                                             2  

 

than the last day of the preceding Plan Year).  Provided, however, that, subject to the provisions of Section  409A of the Code, a Participant who first becomes eligible to participate in the Plan after the beginning  of a Plan Year shall be entitled to make a deferral election (with respect to Compensation earned after the  date of the election) within thirty (30) days of becoming eligible.    In  addition,  each  Participant  may  elect  to  establish  one  or  more  separate  “in-service  withdrawal  account(s)”, to which shall be credited such portion of his deferrals as the Participant may designate, and  subject to the provisions of Section 11, which shall be distributed as of a date selected by the Participant  on the election form used to make his deferral election for the applicable year.    Notwithstanding  the  foregoing,  if  a  Participant  receives  a  hardship  distribution  under  the Company’s  401(k) plan and such plan requires cancellation of the Participant’s deferral election under the Plan, the  Participant’s deferral election under the Plan shall be cancelled for the balance of the Plan Year in which  such distribution is received.  In such case, the Participant may reelect to commence deferrals as of the  next Plan Year as provided above.      SECTION 5. MANNER OF ELECTION    Any election made by a Participant pursuant to this Plan shall be made in accordance with rules and  procedures prescribed by the Administrator.      SECTION 6.  ACCOUNTS     If a Participant elects to establish one or more “in-service withdrawal account(s)” under Section 4, such  account(s)  shall  be  established  and  maintained  on  the  Company’s  books  and  shall  record  (a)  any  Compensation deferred by the Participant under the Plan which the Participant has elected to be credited  to the applicable account, and (b) the allocation of any hypothetical investment experience.      There shall be established for each Participant who receives an allocation under Section 7 for the 2018  Plan Year a separate retirement account which shall record (a) any Company contributions made on his  behalf  under  the  Plan for  the  2018  Plan  Year, and  (b)  the  allocation  of  any  hypothetical  investment  experience.  When referring to  only such account  hereunder, such account  shall be referred to  as  the  Participant’s “2018 Retirement Account”.    There shall also be established for each Participant a separate “retirement account” which shall record (a)  any Compensation deferred by the Participant under the Plan which the Participant has not elected to be  credited to an “in-service withdrawal account”, and any Company contributions made on his behalf under  the  Plan for  Plan  Years  beginning  after  2018, and  (b)  the  allocation  of  any  hypothetical  investment  experience.  When referring to  only such account  hereunder, such account  shall be referred to  as  the  Participant’s “Company Retirement Account”.        SECTION 7.  COMPANY CONTRIBUTIONS    For any Plan Year, the Company may elect to credit to the retirement account(s) of each Participant, or  any Participant designated by the Board or its delegee, an amount equal to a specified percentage of such  Participant’s Compensation, a flat dollar amount and/or an amount equal to a specified percentage of any                                             3  

 

Compensation deferred under Section 4.  Any such credit shall be made entirely at the discretion of the  Board and the amount of any such credit may be different for different Participants.      SECTION 8.  ADJUSTMENTS TO ACCOUNTS    Each Participant’s account(s) shall be reduced by the amount of any distributions to the Participant from  the  applicable account,  by  any  federal,  state  and/or  local  tax  withholding  and  any  social  security  withholding tax as may be required by law, and by any applicable administrative expenses.  Pursuant to  procedures established by the Administrator, each Participant’s account(s) shall be adjusted as of each  business day the New York Stock Exchange is open to reflect the earnings or losses of any hypothetical  investment media as may be designated by the Administrator and, if applicable, elected by the Participant.      SECTION 9.  INVESTMENT OF ACCOUNTS    For purposes of determining the amount of earnings and appreciation and losses and depreciation to be  credited  to  a  Participant’s  account(s),  each  Participant’s  account(s)  shall  be  deemed  invested  in  the  investment options (designated by the Administrator as available under the Plan) as the Participant may  elect, from time to time, in accordance with such rules and procedures as the Administrator may establish.   However, no provision of the Plan shall require the Company to actually invest any amounts in any fund  or in any other investment vehicle.  As a condition of Participation in the Plan, the Participants agree to  indemnify  and  hold  harmless  the Company from  any  losses  or  damages  of  any  kind  relating  to  the  investments used to measure the earnings or losses on amounts credited to Participants’ accounts.  Any  adjustment made to a Participant’s account(s) for earnings and appreciation and losses and depreciation  shall be made as of the date such amount is credited to the Participant’s account(s).        SECTION 10.  VESTED STATUS    Subject to the provisions of Section 21, if a Participant “separates from service” with the Company (within  the meaning of Section 409A of the Code) for any reason on or after his Normal Retirement Age, or prior  to that date as a result of the Participant’s Disability or death, such Participant shall have a nonforfeitable  (vested) right to the fair market value of the Participant’s account(s).  If a Participant separates from  service prior to his Normal Retirement Age for any other reason other than his death or Disability, such  Participant shall be entitled to receive the vested value of his account(s).  For this purpose, each Participant  shall at all times have a nonforfeitable (vested) right to his account(s) derived from any Compensation  deferred  pursuant  to  Section  4.  However,  with  respect  to  any  Company  contributions  made  on  the  Participant’s behalf pursuant to Section 7, the Participant shall have a nonforfeitable (vested) right to a  percentage of the fair market value of such portion of his retirement account(s) as follows:                      Years of Participation        Vested Percentage                      Less than 4 years                 0%                  4 years but less than 6 years         50%                       6 or more years                 100%    For this purpose, a Participant shall be credited with a Year of Participation for each 12-month period of  employment with the Company as measured from his initial date of eligibility under the Plan as specified                                             4  

 

in writing to the Participant.  A Year of Participation shall be credited only if the Participant remains  employed by the Company at the conclusion of the 12-month period regardless of the hours worked during  the 12-month period.       Notwithstanding  the  foregoing,  a  Participant’s  accounts(s)  shall  become  one  hundred  percent  (100%)  vested upon a Change in Control while in the employ of the Company.    The nonvested portion of a Participant’s retirement account(s) shall be forfeited as soon as practicable  after distribution of the portion of his vested retirement account(s) attributable to Company contributions  commences.  Forfeitures under this Section 10 or any other section of the Plan shall be used to pay Plan  administrative expenses and/or reduce Company contributions under the Plan.      SECTION 11.  TIME AND MANNER OF DISTRIBUTION    Subject to Sections 13 and 21, and regardless of whether or not the Participant is a “specified employee”  as such term is defined in Section 409A(a)(2)(B) of the Code, distribution of the portion of a Participant’s  vested “retirement account(s)” (within the meaning of Section 6) attributable to Company contributions  made under Section 7 shall be made or commence as of the first January 1 or July 1 following the six- month anniversary of the later of the date the Participant “separates from service” with the Company  (within the meaning of Section 409A of the Code) and the date the Participant attains age fifty-five (55)  (the “Company Contribution Distribution Commencement Date”).      Subject to Sections 13 and 21, and regardless of whether or not the Participant is a “specified employee”  as such term is defined in Section 409A(a)(2)(B) of the Code, distribution of the portion of a Participant’s  vested Company Retirement Account (within the meaning of Section 6) attributable to elective deferrals  made under Section 4 shall be made or commence as of the first January 1 or July 1 following the six- month anniversary of the date the Participant “separates from service” with the Company (within the  meaning of Section 409A of the Code) (the “Participant Deferral Distribution Commencement Date”).      Provided, however, that in any case payment may be delayed under any of the circumstances permitted  under  said  Section  409A.   Provided,  further,  that,  if  any  amounts  credited to  a  Participant’s  vested  account(s) become subject to tax under Section 409A of the Code, such amount(s) shall be immediately  distributed to the Participant.    With respect to the vested portion of a Participant’s 2018 Retirement Account, distribution shall be made  in the form of monthly installments over a period of sixty (60) months.  The amount of each installment  shall be equal the balance of the Participant’s vested 2018 Retirement Account immediately prior to the  installment payment date divided by the number of installments remaining to be paid.  The first installment  shall be made on the Participant’s Company Contribution Distribution Commencement Date, with each  subsequent installment being made on the one (1) month anniversary of the prior payment.      With respect to the vested portion of a Participant’s Company Retirement Account, the Participant shall  elect, on the election form used to make his initial election and separately for the portion of such account  attributable to Company contributions made under Section 7 and the portion of such account attributable  to Participant elective deferrals made under Section 4, either of the following modes of distribution for  such account:         (a) a single lump sum payment; or                                             5  

 

       (b) monthly installments over a period of either sixty (60) months or one hundred and twenty (120)           months,  the  amount  of  each  installment  to  equal  the  balance  of  the  Participant’s  vested           Company Retirement Account attributable to Company contributions made under Section 7 or           Participant elective deferrals made under Section 4, as applicable, immediately prior to the           installment divided by the number of installments remaining to be paid.  With respect to the           portion  of  the  Participant’s  vested Company  Retirement Account  applicable  to  Company           contributions made under  Section  7,  the  first  installment  shall  be  made on  the Company           Contribution Distribution Commencement Date, with each subsequent installment being made           on the one (1) month anniversary of the prior payment.  With respect to the portion of the           Participant’s vested Company Retirement Account applicable to elective deferrals made under           Section  4,  the  first  installment  shall  be  made on  the  Participant  Deferral  Distribution           Commencement Date, with each subsequent  installment being made on the one (1) month           anniversary of the prior payment.    Notwithstanding  the  foregoing  provisions  of  this  Section, if  a  Participant fails  to  make  a  distribution  election for the portion of his vested Company Retirement Account attributable to Company contributions  made under Section 7 and/or the portion of such account attributable to Participant elective deferrals made  under Section 4, such portion of his vested Company Retirement Account shall be paid under the sixty  (60) month installment method under (b) above.    A Participant may subsequently elect to change the mode of distribution for the portion of his Company  Retirement  Account attributable  to  elective  deferrals  made  under  Section  4,  subject  to  the  following  conditions: (i) any such election may not take effect until twelve (12) months after the date on which the  election is made; (ii) payment with respect to such election must be deferred for a period of at least five  (5) years from the date on which payment would otherwise have been made or commence; and (iii) if the  subsequent election relates to a payment that was scheduled to be made on a specified date, the subsequent  election must be made at least twelve (12) months prior to the date the first amount was scheduled to be  paid.    Notwithstanding the foregoing provisions of this Section, if a Participant’s vested retirement account(s)  attributable to any Company contributions made under Section 7 for Plan Years beginning on or after  January  1,  2018  is  $150,000  or  less  as  of  the  Participant’s Company  Contribution  Distribution  Commencement Date, such portion of the Participant’s vested retirement account(s) shall be distributed  in a single lump-sum payment on such date.  In addition, if a Participant’s vested retirement account(s)  attributable to any elective deferrals made under Section 4 is $150,000 or less as of the Participant’s  Participant Deferral Distribution Commencement Date (or such later date as required due to a change in  mode of distribution), such portion of the Participant’s vested retirement account(s) shall be distributed in  a single lump-sum payment on such date.      Notwithstanding the foregoing provisions of this Section, if a Participant’s vested retirement accounts(s)  attributable to Company contributions made under Section 7 is $150,000 or less as of any installment  payment  date applicable to  such  contributions, such  portion  of  the  Participant’s  vested  retirement  accounts(s) shall be distributed in a single lump-sum payment.  Moreover, if a Participant’s Company  Retirement Account attributable to the Participant’s elective deferrals made under Section 4 is $150,000  or  less  as  of  any  installment  payment  date  applicable  to  such contributions,  such  portion  of  the  Participant’s Company Retirement Account shall be distributed in a single lump-sum payment.      Any “in-service” withdrawal account(s) established for a Participant under Section 6 shall be distributed                                             6  

 

in a lump-sum cash payment, as of the date(s) previously designated by the Participant, which date shall  be at least three (3) years after the end of the Plan Year for which the deferral election was made by the  Participant.  Provided, however, that a Participant may subsequently elect to delay the date on which  distribution of an in-service withdrawal account is to be made, subject to the following conditions: (i) the  subsequent election must be made at least twelve (12) months prior to the date the in-service withdrawal  account was scheduled to be paid, and (ii) payment must be deferred for a period of at least five (5) years  from the date on which payment was initially to have been made. Provided, further, that if a Participant  separates from service prior to the scheduled payment date of any in-service withdrawal account(s), such  accounts(s) shall be distributed to the Participant at the same time and in the same manner as the portion  of the Participant’s vested Company Retirement Account attributable to elective deferrals made under  Section 4.    Payment shall be treated as made upon the date specified under the Plan if payment is made on such date  or a later date within the same taxable year of the Participant or, if later, by the 15th day of the third  calendar month following the date specified under the Plan, provided the Participant is not permitted,  directly or indirectly, to designate the taxable year of the payment.      SECTION 12.  DEATH BENEFIT    In the event of the death of a Participant while in the employ of the Company, vesting in the Participant’s  account(s) shall be one hundred percent (100%), if not otherwise one hundred percent (100%) vested  under  Section  10,  with  the  fair  market  value  of  the  Participant’s  account(s)  being  distributed  to  the  Participant’s Beneficiary, in a single lump sum payment, as of the first January 1 or July 1 following the  six-month anniversary of the Participant’s death.    In the event a Participant dies after distribution has commenced under the Plan or while not in the employ  of the Company, the vested balance of the Participant’s  account(s), if any, shall be distributed to  the  Participant’s Beneficiary, in a single lump sum payment, as of the first January 1 or July 1 following the  six-month anniversary of the Participant’s death.    Payment shall be treated as made upon the date specified under the Plan if payment is made at such date  or a later date within the same taxable year of the Beneficiary or, if later, by the 15th day of the third  calendar month following the date specified under the Plan and if the Beneficiary is not permitted, directly  or indirectly, to designate the taxable year of the payment.      SECTION 13.  DISABILITY BENEFIT    Notwithstanding Section 11 and subject to Section 21, in the event of the Participant’s Disability prior to  the later of the date the Participant “separates from service” with the Company (within the meaning of  Section  409A  of  the  Code) and  the  date  the  Participant  attains  age  fifty-five  (55),  distribution  of  a  Participant’s vested “retirement account(s)” (within the meaning of Section 6) and “in-service withdrawal  accounts (within the meaning of Section 6) shall be made or commence (to the extent not already paid or  in pay status) as of the first January 1 or July 1 following the six-month anniversary of the date of the  Participant’s Disability and shall be paid in the form otherwise payable under Section 11.      In the event a Participant incurs a Disability while in the employ of the Company, the Participant shall be  fully vested in his “retirement account(s)”.                                             7  

 

  Payment shall be treated as made upon the date specified under the Plan if payment is made at such date  or a later date within the same taxable year of the Participant or, if later, by the 15th day of the third  calendar month following the date specified under the Plan and if the Participant is not permitted, directly  or indirectly, to designate the taxable year of the payment.      SECTION 14.  BENEFICIARY DESIGNATION    A Participant may designate the person or persons to whom the Participant’s account(s) under the Plan  shall  be  paid  in  the  event  of  the  Participant’s  death,  by  filing  a  designation  of  beneficiary   with  the  Administrator.  Each designation will revoke all prior designations by the Participant, and shall be made  on the form, or in the manner, prescribed by the Plan Administrator, and shall be effective only when filed  with the Plan Administrator during the Participant’s lifetime.  A Participant’s designation of a Beneficiary  will not be revoked or changed automatically by any future marriage or divorce.  Should the Participant  wish to change the designated Beneficiary in the event of a future marriage or divorce, the Participant will  have  to  do  so  by  means  of  filing  a  new beneficiary  designation with  the  Plan  Administrator. If  no  Beneficiary  is  designated,  or  no  Beneficiary  survives  the  Participant,  payment  shall  be  made  to  the  Participant’s  surviving  spouse,  or  if  none,  to  the  Participant’s  estate.   If  a  Beneficiary  survives  the  Participant but dies before the balance payable to the Beneficiary has been distributed, any remaining  balance shall be paid to the Beneficiary’s estate.      SECTION 15.  DOMESTIC RELATIONS ORDERS    If a domestic relations order issued by any court of proper authority directs assignment of all or any portion  of  a  Participant’s  vested  account(s)  to  the  Participant’s  spouse  or  former  spouse  as  part  of  a  divorce  settlement, the portion so assigned shall be distributed, in a lump-sum, to the spouse or former spouse  within ninety (90) days following the date on which the order was received by the Administrator or, if  later, following the close of the Plan Year in which the order clearly specifies the amount to be assigned  and any other terms necessary to comply with such order and with the provisions of  Section 409A of the  Code.      SECTION 16.  PLAN ADMINISTRATION    16.1  Administration.  The Plan shall be administered by the Board or, in the discretion of the Board, a  committee or subcommittee of the Board (the “Committee”), appointed by the Board and composed of at  least two members of the Board.  All references in the Plan to the Administrator shall be understood to  refer to the Committee or the Board, whoever shall administer the Plan. In the administration of this Plan,  the Administrator may delegate to Company employees certain aspects of the management and operational  responsibilities of the Plan as it sees fit.     Where the Committee serves as Administrator, in the event that a vacancy on the Committee occurs on  account of the resignation of a member or the removal of a member by vote of the Board, a successor  member shall be appointed by vote of the Board.  The Administrator shall select one of its members as  Chairman and shall hold meetings at such times and places as it may determine.  A majority shall constitute  a quorum, and acts of the Administrator at which a quorum is present, or acts reduced to or approved in  writing by all its members, shall be the valid acts of the Administrator.                                             8  

 

  The Administrator shall have the sole authority to interpret and construe any provision of the Plan, to  determine eligibility and benefits under the Plan, to prescribe, amend and rescind rules and regulations  relating to the Plan, to adopt such forms as it may deem appropriate for the administration of 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 or advisable for the administration of the Plan,  but only to the extent not contrary to the express provisions of the Plan or the provisions of Section 409A  of the Code and the regulations and rulings promulgated thereunder.  The Administrator or its delegates  shall be responsible for the day-to-day administration of the Plan.  Determinations, interpretations or other  actions made or taken by the Administrator under the Plan shall be final and binding for all purposes and  upon all persons.    The Company shall indemnify, hold harmless and defend the Administrator and/or the Board (and its  delegates) from any liability which the Administrator and/or the Board (or it delegates) may incur in  connection with the performance of its duties in connection with this Plan, so long as the Administrator  and/or the Board (or such delegate) was acting in good faith and within what the Administrator and/or the  Board (or such delegate) reasonably understood to be the scope of its duties.    16.2  Review Procedure.            (a)   Pursuant to procedures established by the Administrator, claims for benefits under the Plan              made by a Participant or Beneficiary (the "claimant") must be submitted in writing to the              Administrator.  Approved claims shall be processed, and instructions issued to the Trustee              or custodian authorizing payment as claimed.                If a claim is denied in whole or in part, the Administrator shall notify the claimant within              ninety (90) days after receipt of the claim (or within one hundred eighty (180) days if              special circumstances require an extension of time for processing the claim), and provided              written notice indicating the special circumstances and the date by which a final decision              is expected to be rendered is given to the claimant within the initial ninety (90) day period.               If notification is not given in such period, the claim shall be considered denied as of the              last day of such period and the claimant may request a review of the claim.                The  notice  of  the  denial  of  the  claim  shall  be  written  in  a  manner  calculated  to  be              understood by the claimant and shall set forth the following:                (i)   the specific reason or reasons for the denial of the claim;                (ii)  the specific references to the pertinent Plan provisions on which the denial is based;                (iii) a  description  of  any  additional  material  or  information  necessary  to  perfect  the                    claim, and an explanation of why such material or information is necessary; and                (iv)  a  statement  that  any  appeal  of the  denial  must  be  made  by  giving  to  the                    Administrator, within sixty (60) days after receipt of the denial of the claim, written                    notice of such appeal, such notice to include a full description of the pertinent issues                    and basis of the claim.                                                           9  

 

            (v)   a statement about the claimant’s right to bring civil action under Section 502(a)                    under ERISA if the claim is denied on review.          (b)   Upon denial of a claim in whole or part, the claimant (or his duly authorized representative)              shall have the right to submit a written request to the Administrator for a full and fair review              of the denied claim, to be permitted to review documents pertinent to the denial (free of              charge), and to submit issues and comments in writing.  Any appeal of the denial must be              given to the Administrator within the period of time prescribed under (a)(iv) above.  If the              claimant  (or  his  duly  authorized  representative)  fails  to  appeal  the  denial  to  the              Administrator within the prescribed time, the Administrator’s adverse determination shall              be final, binding and conclusive.                      The  Administrator  may  hold  a  hearing  or  otherwise  ascertain  such  facts  as  it  deems              necessary  and  shall  render  a  decision  which  shall  be  binding  upon  both  parties.   The              Administrator shall advise the claimant of the results of the review within sixty (60) days              after receipt of the written request for the review, unless special circumstances require an              extension of time for processing, in which case a decision shall be rendered as soon as              possible but not later than one hundred twenty (120) days after receipt of the request for              review.   If  such  extension  of  time  is  required,  written  notice  of  the  extension  shall  be              furnished to the claimant prior to the commencement of the extension.                              The decision of the review shall be written in a manner calculated to be understood by the              claimant and shall set forth the following:                            (A)   the specific reason or reasons for the denial of the claim;                            (B)   the specific references to the pertinent Plan provisions on which the denial is based;                            (C)   the claimant’s right to receive free of charge, reasonable access to and copies of, all                    Plan documents, records, and other information relevant to the claim; and                            (D)   a statement about the claimant’s right to bring a civil action under Section 502(a)                    of ERISA.                      The decision of the Administrator shall be final, binding and conclusive.      SECTION 17.  FUNDING    17.1  Plan Unfunded.  The Plan is unfunded for tax purposes and for purposes of Title I of ERISA.   Accordingly,  the  obligation  of  the  Company  to  make payments  under  the  Plan  constitutes  solely  an  unsecured (but legally enforceable) promise of the Company to make such payments,  and no person,  including any Participant or Beneficiary shall have any lien, prior claim or other security interest in any  property of the Company as a result of this Plan.  Any amounts payable under the Plan shall be paid out  of the general assets of the Company and each Participant and Beneficiary shall be deemed to be a general  unsecured creditor of the Company.    17.2  Rabbi Trust.  The Company may create a grantor trust to pay its obligations hereunder (a so-called  rabbi trust), the assets of which shall be, for all purposes, the assets of the Company.  In the event the                                             10  

 

trustee of such trust is unable or unwilling to make payments directly to Participants and Beneficiaries  and  such  trustee  remits  payments  to  the  Company  for  delivery  to  Participants  and  Beneficiaries,  the  Company  shall  promptly  remit  such  amount,  less  applicable  income  and  other  taxes  required  to  be  withheld, to the Participant or Beneficiary.      SECTION 18.  AMENDMENT    The Company, by resolution of the Board, shall have the right to amend, suspend or terminate the Plan at  any time subject to the provisions of Section 409A of the Code; provided, however, that no such action  shall, without the Participant’s consent, impair the Participant’s right with respect to any existing account  under the Plan.  The termination of the Plan, with respect to some or all of the Participants, and any  resulting distribution of the account balances of such affected Participants, shall be made in accordance  with  the  provisions  of  Section  409A  of  the  Code  and  shall  not  constitute  the  impairment  of  such  Participant’s rights hereunder.      SECTION 19.  TERMINATION OF THE PLAN    The Company, by resolution of the Board, and subject to the provisions of Section 409A of the Code, may  elect to terminate and liquidate the Plan, provided that: (i) the termination and liquidation does not occur  proximate  to  a  downturn  in  the  financial  health  of  the  Company;  (ii)  the  Company  terminates  and  liquidates all agreements, methods, programs, and other arrangements sponsored by the Company that  would  be  aggregated  with  any  terminated  and  liquidated  agreements,  methods,  programs,  and  other  arrangements under Section 409A of the Code, if the same employee had deferrals of compensation under  all  of  the  agreements,  methods,  programs  and  other  arrangements  that  are  terminated  and  liquidated;  (iii) no payments in liquidation of the Plan are made within twelve (12) months of the date the Company  takes all necessary action to irrevocably terminate and liquidate the Plan other than payments that would  be payable under the terms of the Plan if the action to terminate and liquidate the Plan had not occurred;  (iv) all payments are made within twenty-four (24) months of the date the Company takes all necessary  action to irrevocably terminate and liquidate the Plan; and (v) the Company does not adopt a new plan  that would be aggregated with the terminated Plan under Section 409A of the Code if the same employee  participated in both plans, at any time within three (3) years following the date the Company takes all  necessary action to irrevocably terminate and liquidate the Plan.  For the avoidance of doubt, nothing in  this Section 18 shall prevent the Company, by resolution of the Board, and subject to the provisions of  Section 409A of the Code, from electing to terminate the Plan in connection with a Change in Control.  If  such an election is made, the distribution of Plan accounts shall be governed by the provisions of Section  409A of the Code.      SECTION 20.  NO ASSIGNMENT    Subject to Section 15, a Participant’s right to the amount credited to his account under the Plan shall not  be  subject  in  any  manner  to  anticipation,  alienation,  sale,  transfer,  assignment,  pledge,  encumbrance,  attachment or garnishment by creditors of the Participant or the Participant’s Beneficiary.  The Company  shall not merge or consolidate into or with another Company or reorganize, or sell substantially all of its  assets  to  another company, institution,  or  person  unless  such  succeeding  or  continuing company,  institution, or person agrees to assume and discharge the obligations of the Company under this Plan.   Upon the occurrence of such event, the term “Company” as used in this Plan shall be deemed to refer to                                             11  

 

the successor or survivor Company, firm, or person.       SECTION 21. TERMINATION FOR CAUSE AND EMPLOYMENT CONTRACT PROVISIONS    Notwithstanding anything to the contrary herein contained, in the event a Participant’s employment with  the  Company  is  terminated  “for  cause”,  no  benefits  (other  than  those  attributable  to  the Participant’s  deferrals  under Section  4) shall be due or payable under the Plan, and  such Participant’s “retirement  account(s)” (within the meaning of Section 6) (less such Participant’s interest attributable to deferrals  under Section 4) shall be forfeited. For this purpose, termination “for cause” shall mean the definition of  “for cause” or such similar term in the Participant’s employment agreement with the Company that is  effective as of the date the Company commences the process of terminating the Participant’s employment.   In the event the Participant does not have an employment agreement, termination “for cause” shall mean  a termination resulting from (i) a conviction of robbery, extortion, embezzlement, fraud, grand larceny,  burglary, perjury, income tax evasion, misapplication of Company funds, false statements in violation of  18 U.S.C. Sec. 1001, and any other felony that is punishable by a term of imprisonment of more than one  year, or (ii) any breach of the Participant’s duty of loyalty to the Company, any acts of omission in the  performance of his duties not in good faith or which involve intentional misconduct or a knowing violation  of law, or any transaction in the performance of his duties from which the Participant derived an improper  personal benefit.  Any bank regulatory limitations and claw back provisions contained in a Participant’s  employment agreement shall be applicable to all benefits (other than those attributable to the Participant’s  deferrals under Section 4) payable under the Plan and all such employment agreement provisions are  incorporated herein.                                          SECTION 22.  COMPANY-OWNED LIFE INSURANCE (“COLI”)    22.1  Company Owns All Rights.  In the event that, in its discretion, the Company purchases  a life  insurance policy or policies insuring the life of any Participant to allow the Company to informally finance  and/or recover, in whole or in part, the cost of providing the benefits hereunder, neither the Participant nor  any Beneficiary shall have any rights whatsoever therein.  The Company shall be the sole owner and  beneficiary of any such policy or policies and shall possess and may exercise all incidents of ownership  therein, except in the event of the establishment of and transfer of said policy or policies to a trust by the  Company as described in Section 17.2 hereof.    22.2  Participant Cooperation.  If the Company decides to purchase a life insurance policy or policies  on any Participant, the Company shall so notify such Participant.  Such Participant shall consent to being  insured for the benefit of the Company and shall take whatever actions may be necessary to enable the  Company  to  timely  apply  for  and  acquire  such  life  insurance  and  to  fulfill  the  requirements  of  the  insurance carrier relative to the issuance thereof as a condition of eligibility to participate in the Plan.      SECTION 23.  SUCCESSORS AND ASSIGNS    The provisions of this Plan shall be binding upon and inure to the benefit of the Company, its successors  and assigns, and the Participant, his Beneficiaries, heirs, legal representatives and assigns.                                               12  

 

  SECTION 24.  NO CONTRACT OF EMPLOYMENT    Nothing contained herein shall be construed as a contract of employment between a Participant and the  Company, or as a right of the Participant to continue in employment with the Company, or as a limitation  of the right of the Company to discharge the Participant at any time, with or without cause.      SECTION 25.  ENFORCEABILITY    If any term or condition of the Plan shall be invalid or unenforceable to any extent or in any application,  then the remainder of the Plan, and such term or condition except to such extent or in such application,  shall not be affected thereby, and each and every term and condition of the Plan shall be valid and enforced  to the fullest extent and in the broadest application permitted by law.      SECTION 26.  CONSTRUCTION    Wherever appropriate, the use of the masculine gender shall be extended to include the feminine and/or  neuter, and the singular form of word extended to include the plural, or vice versa.       SECTION 27.  GOVERNING LAW    This Plan shall be interpreted in a manner consistent with  Section 409A of the Code and construed in  accordance  with  the  provisions  of  ERISA,  where  applicable,  and  otherwise  by  the  laws  of  the  Commonwealth of Massachusetts, without regard to the conflict of law provisions of any jurisdiction.  The  intent of the Company is that payments and benefits under this Agreement comply with or be exempt from  Section 409A of the Code and the Company acting through the Committee as provided herein shall have  complete discretion to interpret and construe this Plan and any associated documents in any manner that  establishes an exemption from (or compliance with) the requirements of Section 409A of the Code.  If for  any  reason,  such  as  imprecision  in  drafting  any  provision  of  this Plan does  not  accurately  reflect  its  intended  establishment  of  an  exemption  from  (or  compliance  with)  Section  409A of  the  Code,  as  demonstrated by consistent interpretations or other evidence of intent, such provision shall be considered  ambiguous  as  to  its  exemption  from  (or  compliance  with)  Section  409A of  the  Code and  shall  be  interpreted by Company in a manner consistent with such intent, as determined in the discretion of the  Company.  If any payment fails to meet the requirements of Section 409A of the Code, the Company shall  have no liability for any tax, penalty or interest imposed on the Participant by Section 409A of the Code,  and the Participant shall have no recourse against the Company for payment of any such tax, penalty or  interest.       SECTION 28.  ENTIRE AGREEMENT     This Plan constitutes the complete understanding between the Company and all Participants regarding the  provision of deferred compensation and all prior representations and agreements having been merged into  this Plan.                                                 13  

 

                          IN WITNESS WHEREOF, the Company, by  its  duly authorized officer, has  caused this  Plan to  be  executed as of the ____ day of _______________, 2018.                                     ENTERPRISE BANK AND TRUST COMPANY                                     By:  _____________________________________                                      Authorized Officer                                               14Exhibit

Exhibit 10.17

PHILLIPS EDISON & COMPANY, INC. 
AMENDED EXECUTIVE SEVERANCE AND CHANGE IN CONTROL PLAN
		
	1.
	PURPOSE OF THE PLAN

The purpose of this Executive Severance and Change in Control Plan (this “Plan”) is to encourage certain management-level employees of Phillips Edison & Company, Inc. (the “Company”) and its subsidiaries to remain employed by providing severance protections in the event the Company terminates their employment under the circumstances described in this Plan.
		
	2.
	Definitions

For purposes of this Plan, the following terms will have the following meanings:
(a)“Accrued Rights” means the Participant’s earned but unpaid annual base salary, accrued but unused vacation (to the extent the Company’s and its subsidiaries’ policies permit or require payment) and any unreimbursed business expenses properly incurred pursuant to the Company’s and its subsidiaries’ policies through the Participant’s Termination Date.

(b)“Affiliate” means any individual or entity in any form that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with the Company.  For this purpose “control,” “controlled by” and “under common control” means possession, directly or indirectly of the power to direct or cause the direction of management or policies (whether through ownership of securities or other ownership interests, by contract or otherwise).

(c)“Annual Cash Performance Bonus” means the cash bonus, if any, paid to the Participant pursuant to the Company’s or an Affiliate’s annual cash performance bonus plan for periods following the Closing Date, and for periods prior to the Closing Date pursuant to PELP’s annual cash performance bonus plan.

(d)“Average Cash Performance Bonus” means the average of the Annual Cash Performance Bonuses paid to the Participant for the three (3) most recent years; provided, that, if the Participant was not eligible to receive an Annual Cash Performance Bonus for at least three (3) years prior to his or her termination of employment, then (i) if the Participant was eligible to receive an Annual Cash Performance Bonus for only two (2) years prior to his or her termination of employment, the average Annual Cash Performance Bonuses for the prior two (2) years (including prior to the Closing Date); (ii) if the Participant was eligible to receive an Annual Cash Performance Bonus for only one (1) year prior to his or her termination of employment, the Annual Cash Performance Bonus paid for such year (including any such portion of the year prior to the Closing Date); and (iii) if the Participant has not been employed long enough to be eligible to receive an Annual Cash Performance Bonus, then the Participant’s target Annual Cash Performance Bonus for the year in which the Termination Date occurs.

(e)“Base Salary” means the Participant’s annual base salary as in effect immediately prior to such Participant’s Termination Date (excluding the effect of any reduction that constitutes Good Reason).

(f)“Board” means the Board of Directors of the Company. 

(g)“Cause” means the occurrence of any one (or more) of the following:

i.the Participant’s commission of any fraud, misappropriation or gross and willful misconduct which causes demonstrable injury to the Company or a subsidiary or Affiliate;

ii.the Participant’s act of dishonesty resulting or intended to result, directly or indirectly, in gain or personal enrichment at the expense of the Company or a subsidiary or Affiliate;

iii.the Participant’s willful and repeated failure to follow specific directives of the Board or the Chief Executive Officer to act or refrain from acting, which directives are consistent with the Participant’s position and title; or

iv.the Participant’s conviction of, or a plea of nolo contendere with respect to, a felony or a crime involving moral turpitude.

(h)“Change in Control” means following the Closing Date the first to occur of any of the following:

i.any “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act, other than the Company or an Affiliate or a Company employee benefit plan, including any trustee of such plan acting as trustee, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing forty percent (40%) or more of the combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of directors; 

ii.a merger, reverse merger or other business combination or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation other than an Affiliate of the Company, except for a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger, reverse merger, business combination or consolidation;

iii.the Incumbent Directors cease for any reason to be a majority of the members of the Board; or

iv.a person (or group), other than an Affiliate, acquires (or has acquired, during a 12 month period), assets that have a total gross fair market value of fifty percent (50%) or more of the total gross fair market value of all assets of the Company immediately prior to such acquisition.
Notwithstanding the foregoing, any transaction involving Phillips Edison Grocery Center REIT III, Inc. or any vehicle managed or sponsored by Phillips Edison & Company Ltd. will not be a Change in Control.
(i)“Change in Control Date” means the date on which a Change in Control occurs. 

(j)“CiC Severance Multiple” means 2.5x for the Tier 1 Participant and 2.0x for the Tier 2 Participants.

(k)“CiC Severance Period” means thirty (30) months for the Tier 1 Participant and twenty-four (24) months for the Tier 2 Participants.

(l)“Closing Date” will have the meaning set forth in the Contribution Agreement. 

(m)“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

(n)“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto, and the regulations promulgated thereunder, as in effect from time to time. 

(o)“Committee” means the committee designated by the Board and charged with administering this Plan, or if no committee is so designated, the full Board.

(p)“Contribution Agreement” means that certain Contribution Agreement by and among the Company, Phillips Edison Grocery Center Operating Partnership I, L.P. and the other parties thereto, dated as of May 18, 2017, as amended.

(q)“Disability” means:

i.the Participant’s absence from employment with the Company and its Affiliates due to his or her inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for at least twelve (12) continuous months; or 

ii.the Participant is receiving income replacement benefits for at least three (3) months under an accident and health plan because of the Participant’s medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for at least twelve (12) continuous months.

(r)“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor statute thereto, and the regulations promulgated thereunder as in effect from time to time. 

(s)“Excise Tax” means the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such tax. 

(t)“Good Reason” means the occurrence of any of the following events or circumstances without the Participant’s express prior written consent:

i.a material diminution in the Participant’s targeted total annual compensation (i.e., sum of Base Salary, Annual Cash Performance Bonus opportunity at target and targeted LTI Award grant date fair value); 

ii.a material diminution in the Participant’s authority, duties or responsibilities;
 
iii.a material diminution in the authority, duties or responsibilities of the supervisor to whom the Participant is required to report; 

iv.a material diminution in the budget over which the Participant retains authority; or

v.any other action or inaction that constitutes a material breach by the Company of the terms of any employment agreement to which the Participant may be a party.  

Notwithstanding the foregoing, Good Reason will not exist unless (I) the Participant provides written notice of his or her intent to terminate for Good Reason no later than thirty (30) days after the event or condition purportedly giving rise to Good Reason first occurs and (II) the Company fails to cure such event or condition within thirty (30) days of receiving such notice.  If the Participant has Good Reason to terminate, then he or she must terminate his or her employment within twelve (12) months of the event or condition giving rise to Good Reason.
(u)“Incumbent Director” means each member of the Board on the Closing Date together with any director(s) elected or appointed after the Closing Date whose election or nomination for election to the Board was approved by a vote of at least a majority (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director without objection to such nomination) of the directors then still in office who either were directors at the Closing Date or whose election or nomination for election was previously so approved.  No individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board will be an Incumbent Director. 

(v)“LTI Awards” means:

i.any awards granted under the Phillips Edison Grocery Center REIT I, Inc. Phantom Share Plan; 

ii.any other equity-based awards, including OP Units (as defined in the Contribution Agreement) which vest over time; or 

iii.performance based cash awards that vest over time but are not the Annual Cash Performance Bonus.

(w)“Participation Agreement” is an agreement between an executive of the Company and the Company pursuant to which the Committee names the executive as a Participant in this Plan.

(x)“Payment” means any payment, benefit or distribution that the Company, any of its Affiliates or any trust established by the Company or its Affiliates, makes to or for the benefit of a Participant, whether paid, payable, distributed, distributable or provided pursuant to this Plan or otherwise, including any payment, benefit or other right that constitutes a “parachute payment” within the meaning of Section 280G. 

(y)“PELP” means Phillips Edison Limited Partnership, a Delaware limited partnership.

(z)“Protection Period” means the period commencing on the Change in Control Date and ending on the second anniversary of such Change in Control Date.
 
(aa)“Section 280G” means Section 280G of the Code. 

(ab)“Section 409A” means Section 409A of the Code. 

(ac)“Severance Multiple” means 2.0x for the Tier 1 Participant and 1.5x for the Tier 2 Participants.

(ad)“Severance Period” means twenty-four (24) months for Tier 1 Participant and eighteen (18) months for the Tier 2 Participants.

(ae) “Tier 1 Participant” means an individual who is, at the relevant time, the Chief Executive Officer of the Company.

(af)“Tier 2 Participant” means an individual who is, at the relevant time, a Participant who is not the Chief Executive Officer of the Company.

(ag)“Termination Date” means the date on which the termination of a Participant’s employment, in accordance with the terms of this Plan, is effective.

3.Eligibility

An executive of the Company will be eligible for participation in this Plan and considered a “Participant” only if, on his or her Termination Date, the Committee has designated him or her as a Participant and he or she has executed a Participation Agreement.  A listing of Participants as of the effective date of this Plan is contained in Appendix A to this Plan.  The Committee may revise the listing of Participants from time to time in its sole discretion.
		
	4.
	Regular Severance upon a Qualifying Termination

Subject to Section 7, if outside of the Protection Period either (x) the Company and its Affiliates terminate the Participant’s employment not for Cause, or (y) the Participant resigns for Good Reason, then, in addition to his or her Accrued Rights, the Participant will be entitled to the payments and benefits described in Sections 4(a), (b) and (c), below (collectively, the “Severance Benefits”) payable or beginning within 10 days following the expiration of the Release Period:
(a)Cash Severance Pay.  The Company will pay the Participant in a lump sum an amount equal to the product of (i) the Participant’s Severance Multiple and (ii) the sum of (A) the Participant’s Base Salary and (B) the Participant’s Average Cash Performance Bonus.

(b)Benefits Continuation.  If the Participant elects to receive group health insurance coverage under COBRA following the Termination Date, then the Company will provide such coverage for the Severance Period, subject to applicable law; provided, that the Participant will continue to pay the same amount of monthly premium as in effect for the Company’s other executives; provided, further, that if the Participant becomes employed with another employer during the Severance Period and is eligible to receive group health insurance coverage under such employer’s plans, the Company’s obligations under this Section 4(b) will be reduced to the extent comparable coverage is actually provided to the Participant and the Participant’s covered dependents, and the Participant will report any such coverage to the Company.  Notwithstanding the foregoing, if the Company is unable to continue to cover the Participant under its group health plans or the continuation of such coverage would result in adverse tax consequences for the Participant or the Company or would result in the imposition of fines or penalties on 

the Company, then the Company will pay to the Participant an amount equal to the difference between the full monthly COBRA premium payment and the current monthly premium the Participant would have paid as an active employee in substantially equal monthly installments over the Severance Period or the remaining portion thereof (which payments will be taxable compensation to the Participant).  

		
	(c)
	LTI Awards.

i.The Participant’s unvested time-based LTI Awards that would have otherwise vested over the Severance Period will vest on the Termination Date and be paid in full within 10 days after the expiration of the Release Period; and

ii.The Participant will remain eligible to vest and be paid on a pro-rata portion of performance-based LTI Awards based on actual performance at the end of the performance period, with pro-ration based on the period of time elapsed between the beginning of the performance period and the Termination Date as a percentage of the full performance period. 

		
	5.
	Change in Control Severance upon a Qualifying Termination

Subject to Section 7, if during the Protection Period either (x) the Company and its Affiliates terminate the Participant’s employment not for Cause or (y) the Participant resigns for Good Reason, then, in addition to his or her Accrued Rights, the Participant will be entitled to the payments and benefits described in Sections 5(a), (b) and (c) below (collectively, and together with benefit in Section 6 below, the “CiC Severance Benefits”) payable or beginning within 10 days following the expiration of the Release Period:
(a)Cash Severance Pay.  The Company will pay the Participant in a lump sum an amount equal to the product of (i) the Participant’s CiC Severance Multiple and (ii) the sum of (A) the Participant’s Base Salary and (B) the Participant’s Average Cash Performance Bonus.

(b)Benefits Continuation.  If the Participant elects to receive group health insurance coverage under COBRA following the Termination Date, then the Company will provide such coverage for the CiC Severance Period, subject to applicable law; provided, that the Participant will continue to pay the same amount of monthly premium as in effect for the Company’s other executives; provided, further, that if the Participant becomes employed with another employer during the CiC Severance Period and is eligible to receive group health insurance coverage under such employer’s plans, the Company’s obligations under this Section 5(b) will be reduced to the extent comparable coverage is actually provided to the Participant and the Participant’s covered dependents, and the Participant will report any such coverage to the Company.  Notwithstanding the foregoing, if the Company is unable to continue to cover the Participant under its group health plans or the continuation of such coverage would result in adverse tax consequences for the Participant or the Company or would result in the imposition of fines or penalties on the Company, then the Company will pay to the Participant an amount equal to the difference between the full monthly COBRA premium payment and the current monthly premium the Participant would have paid as an active employee in substantially equal monthly installments over the CiC Severance Period or the remaining portion thereof (which payments will be taxable compensation to the Participant).

(c)LTI Awards. The Participant’s unvested LTI Awards (including unvested time-based LTI Awards and earned but unvested performance-based LTI Awards) will vest as of the Termination Date and be paid in full within 10 days after the expiration of the Release Period.

		
	6.
	CHANGE IN CONTROL - PERFORMANCE-BASED LTI AWARDS

Upon the Change in Control Date, the Committee will determine the number of performance-based LTI Awards that will be considered to be earned under such LTI Awards based upon the Company’s performance by pro rating the performance targets for the shortened performance period and then measuring such pro-rated targets against actual performance of the Company through the Change in Control Date.  Any such earned performance-based LTI Awards will then be converted into time-based LTI Awards that will vest and be paid based on continued service through the end of the performance period that was applicable to such LTI Award prior to the Change in Control Date, subject to acceleration as provided in Section 5(c) above.
		
	7.
	Release of Claims; Compliance with Restrictive Covenants  

In order for the Participant to receive the Severance Benefits under Section 4 or the CiC Severance Benefits under Sections 5 and 6, the Participant must execute and deliver the Release Agreement attached to his or her Participation Agreement and such release must be effective and irrevocable on or before the 60th day following the Participant’s Termination Date (the “Release Period”).  The payment of Severance Benefits or CiC Severance Benefits, as applicable, is also contingent upon the Participant’s continued compliance with any restrictive covenants set forth in the Participant’s Participation Agreement.
		
	8.
	Non-Severance Terminations

(a)Termination Due to Death or Disability.  Subject to the execution and non-revocation of a Release Agreement, if the Participant dies or if the Company and its Affiliates terminate a Participant’s employment due to Disability, the Participant (or in the case of death his or her legal heirs), in addition to the Accrued Rights, will be entitled to the following benefits:

i.Pro-rata portion of the participant’s Annual Cash Performance Bonus for the year of termination if the Committee determines that performance is achieved;

ii.Accelerated vesting and payment of the unvested time-based LTI Awards that would have otherwise vested and be paid during the Severance Period; and

iii.The Participant will remain eligible to vest and be paid on a pro‐rata portion of performance-based LTI Awards based on actual performance at the end of the performance period, with pro-ration based on the period of time elapsed between the beginning of the performance period and the Termination Date as a percentage of the full performance period.

Any such Release Agreement will be executed and become irrevocable: (A) by the Participant or his or her legal representative in the case of Disability within the Release Period, and (B) by the Participant’s legal heirs in the case of death within such time as prescribed by the Company, but not later than March 1 of the calendar year following the calendar year of the Participant’s death.  Payment of the benefits under this Section 8(a) will commence as soon as practicable following the effective date of the Release Agreement.
(b)Termination for Cause or without Good Reason.  If the Company and its Affiliates terminate the Participant’s employment for Cause or the Participant terminates his or her employment without Good Reason, the Participant will be entitled only to the Accrued Rights and not to any other 

compensation or benefits from the Company or any of its Affiliates under this Plan and all unvested LTI Awards will be cancelled for no consideration.

		
	9.
	Tax Matters

(a)Withholding.  The Company and its subsidiaries will deduct and withhold from any amounts payable under this Plan such Federal, state, local, foreign or other taxes as are required to be withheld pursuant to any applicable law or regulation.

(b)Effect of Sections 280G and 4999 of the Code.  Anything in this Plan to the contrary notwithstanding, in the event that any Payment to or in respect of a Participant would be subject to the Excise Tax, then the Company will reduce the Payments, but not below zero and only to the extent that such reduction in the Payments would result in the Participant retaining a larger amount on an after-tax basis (including all Federal, state, local and other income taxes and the Excise Tax) than if the Participant received the entire amount of such Payments.  The Company will reduce or eliminate the Payments in the following order: (i) the portion of the Payments that is attributable to any accelerated vesting of LTI Awards to purchase equity with a per share exercise price that is greater than the fair market value of the equity on the Change in Control Date, (ii) cash payments that do not constitute deferred compensation (within the meaning of Section 409A), (iii) acceleration of vesting in other LTI Awards and (iv) welfare or in-kind benefits, in each case in reverse order beginning with payments or benefits that are to be paid the farthest in time from the Determination (as defined below).  Within thirty (30) business days after the later of the Participant’s Termination Date or the Change in Control Date and at the Company’s expense, the Company’s accounting, consulting or tax firm (the “Accounting Firm”) will make the determination of whether the Company will reduce the Payments as provided in this Section 9(b) and the amount of such reduction (the “Determination”).  The Accounting Firm will provide detailed supporting calculations and documentation to the Company and the Participant of such Determination.  Such Determination will be binding, final and conclusive upon the Participant.

(c)Section 409A of the Code.

i.General.  The amounts payable under this Plan are intended to be exempt from Section 409A.  Notwithstanding the foregoing, to the extent applicable, this Plan will be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A.
  
ii.Separation from Service under Section 409A.  Notwithstanding anything herein to the contrary, with respect to any amounts payable under this Plan that the Company determines constitute “nonqualified deferred compensation” within the meaning of Section 409A: (A) such termination or other similar payments and benefits hereunder will be payable to a Participant only if such Participant’s termination of employment constitutes a “separation from service” within the meaning of Section 1.409A-1(h) of the Department of Treasury Regulations; (B) if the Company deems a Participant at the time of his or her separation from service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, then to the extent delayed commencement of any portion of any termination or other similar payments and benefits to which such Participant may be entitled under this Plan (after taking into account all exclusions applicable to such payments or benefits under Section 409A) is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of such payments and benefits will not be provided to such Participant prior to the earlier of (x) the expiration of the six-month period measured from the date of the Participant’s “separation from service” with the Company and (y) the date of such Participant’s death; provided, that upon the earlier of such dates, the Company will pay in a lump sum to each Participant all 

payments and benefits deferred pursuant to this Section 9(c)(ii), and any remaining payments and benefits due hereunder will be provided as otherwise specified herein; and (C) the Company will make the determination of whether a Participant is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of such Participant’s separation from service in accordance with the terms of Section 409A (including, without limitation, Section 1.409A-1(i) of the Department of Treasury Regulations and any successor provision thereto).

		
	10.
	Miscellaneous

(a)Duration; Termination; Amendment; Modification.  This Plan will become effective on the date it is adopted by the Board and will continue, subject to amendment, until the Board terminates it.  The Board may terminate or amend the Plan except that (i) the Board must provide six (6) months’ prior written notice to affected Participants for any termination of the Plan or amendment that would materially and adversely affect the rights of such Participants, (ii) no termination or amendment will materially and adversely affect the rights of any Participant whose employment terminated prior to the date of such amendment or termination, and (iii) a Participant’s right to receive payments or benefits with respect to a termination occurring in connection with or within twelve (12) months following a Change in Control will not be adversely affected by an amendment or termination of the Plan that is made within six (6) months before or twelve (12) months after the Change in Control Date.  A Participant who is removed from participation in the Plan will no longer be subject to any post-employment non-compete or non-solicitation covenants.

(b)No Waiver.  The failure of the Company or a Participant to insist upon strict adherence to any term of this Plan on any occasion will not be considered a waiver of the Company’s or such Participant’s rights or deprive the Company or such Participant of the right thereafter to insist upon strict adherence to that term or any other term of this Plan.  No failure or delay by any Participant in exercising any right or power hereunder will operate as a waiver thereof, nor will any single or partial exercise of any such right or power, or any abandonment of any steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power.
 
(c)Severability.  If any term or provision of this Plan is invalid, illegal or incapable of being enforced by any applicable law or public policy, all other conditions and provisions of this Plan will nonetheless remain in full force and effect. 

(d)Survival.  The provisions of this Plan will survive and remain binding and enforceable, notwithstanding the expiration or termination of the Protection Period or this Plan, the termination of a Participant’s employment with the Company and its subsidiaries for any reason or any settlement of the financial rights and obligations arising from a Participant’s participation hereunder, to the extent necessary to preserve the intended benefits of such provisions. 

(e)Disputes.

i.Except as otherwise specifically provided herein, all disputes, controversies and claims arising between the Company and any Participant concerning the subject matter of this Plan will be settled by arbitration in accordance with the rules and procedures of the Judicial Arbitration and Mediation Services (“JAMS”) in effect at the time that the arbitration begins, to the extent not inconsistent with this Plan.  The location of the arbitration will be Cincinnati, Ohio or such other place as the parties to the dispute may mutually agree.  In rendering any award or ruling, the arbitrator or arbitrators will determine the rights and obligations of the parties according to the substantive 

and procedural laws of the State of Ohio.  The arbitration will be conducted by an arbitrator selected in accordance with the aforesaid arbitration procedures.  Any arbitration pursuant to this Section 10(e) will be final and binding on the parties, and judgment upon any award rendered in such arbitration may be entered in any court, Federal or state, having jurisdiction.  The parties to any dispute will each pay their own costs and expenses (including arbitration fees and attorneys’ fees) incurred in connection with arbitration proceedings and the fees of the arbitrator will be paid in equal amounts by the parties.  Nothing in this Section 10(e) will preclude the Company or any Participant from seeking temporary injunctive relief from any Federal or state court located within Cincinnati, Ohio in connection with or as a supplement to an arbitration hereunder.

ii.Without limiting the generality of Section 10(e)(i), to the extent permitted by applicable law, by participating in this Plan, each Participant irrevocably waives any and all rights to trial by jury in any legal proceeding arising out of or relating to this Plan, including any right to assert claims as a plaintiff or class member in any purported class or representative proceeding.

iii.Notwithstanding the foregoing, the Company may seek injunctive relief to enforce the restrictive covenants set forth in the Participation Agreements.

(f)No Mitigation or Offset; Enforcement of this Plan.  The Company’s obligation to make the payments provided for in this Plan and otherwise to perform its obligations hereunder will not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action that the Company may have against any Participant or others.  In no event will any Participant be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Participant under any of the provisions of this Plan and, except as otherwise expressly provided for in this Plan, such amounts will not be reduced whether or not the Participant obtains other employment. 

(g)Relation to Other Plans.  Nothing in this Plan will prevent or limit a Participant’s continuing or future participation in any plan, practice, policy or program provided by the Company or any Affiliate thereof for which the Participant may qualify, nor will anything in this Plan limit or otherwise affect any rights the Participant may have under any contract or agreement with the Company or any Affiliate thereof.  Vested benefits and other amounts a Participant is otherwise entitled to receive under any incentive compensation (including any equity award agreement), deferred compensation, retirement, pension or other plan, practice, policy or program of, or any contract or agreement with, the Company or any Affiliate thereof will be payable in accordance with the terms of each such plan, practice, policy, program, contract or agreement, as the case may be.  Notwithstanding the foregoing provisions of this Section 10(g), the amounts payable under this Plan to a Participant will be paid in lieu of any cash or non-cash severance benefits that such Participant is otherwise eligible to receive under any other severance plan, practice, policy or program of the Company or any Affiliate thereof or under any employment or offer letter or agreement with the Company or any Affiliate thereof. This Plan supersedes all prior or contemporaneous negotiations, commitments, agreements and writings with respect to the subject matter hereof.

(h)Successors.  This Plan will bind any successor (a “Successor”) to all or substantially all of the business or assets of the Company (whether direct or indirect, by purchase, merger, consolidation or otherwise), in the same manner and to the same extent that the Company would have been obligated under this Plan if no such succession had taken place.  In the case of any transaction in which a Successor would not, pursuant to the foregoing provision or by operation of law, be bound by this Plan, the Company will require such Successor expressly and unconditionally to assume and agree to perform the Company’s obligations under this Plan, in the same manner and to the same extent that the Company 

would have been required to perform such obligations if no such succession had taken place.  The term “Company”, as used in this Plan, will mean the Company as hereinbefore defined and any Successor and any assignee to such business or assets that by reason hereof becomes bound by this Plan. 

(i)Governing Law.  This Plan will be deemed to be made in the state of Ohio and the validity, interpretation, construction and performance of this Plan in all respects will be governed by the laws of the state of Ohio without regard to its principles of conflicts of law. 

(j)Headings and References.  The headings of this Plan are inserted for convenience only and neither constitutes a part of this Plan nor affects in any way the meaning or interpretation of this Plan.  When a reference in this Plan is made to a Section, such reference will be to a Section of this Plan unless otherwise indicated. 

(k)Construction.  For purposes of this Plan, the words “include” and “including”, and variations thereof, will not be deemed to be terms of limitation but rather will be deemed to be followed by the words “without limitation”.  The term “or” is not exclusive.  The word “extent” in the phrase “to the extent” will mean the degree to which a subject or other thing extends, and such phrase will not mean simply “if”. 

(l)Notices.  All notices or other communications required or permitted by this Plan will be made in writing and all such notices or communications will be deemed to have been duly given when delivered or (unless otherwise specified) mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed as follows:

		
	If to the Company:
	Phillips Edison & Company, Inc.

11501 Northlake Drive
Cincinnati, Ohio 45249
Attention: General Counsel
		
	If to the Participant:
	The Participant’s address as most recently supplied to the Company and set forth in the Company’s records

or to such other address as any party may have furnished to the other in writing in accordance herewith, except that notices of change of address will be effective only upon receipt.
Adopted by the Board of Directors of Phillips Edison & Company, Inc. as of March 12, 2019

    

APPENDIX A
PARTICIPANTS
(as of March 12, 2019)

Jeffrey Edison
Robert Myers
Devin Murphy
R. Mark Addy
Tanya Brady

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