Document:

a10105formofstiperforman

1  _____[fiscal year] STI COMPANY PERFORMANCE-BASED CASH AWARD     THIS _____ STI COMPANY PERFORMANCE-BASED CASH AWARD (this “Agreement”) is  made and entered into as of the _____ day of _____, 20__ (the “Grant Date”) by and between the employee named  in the Award Certificate attached hereto (the “Employee”) and PFSweb, Inc., a Delaware corporation (the  “Company”), and is issued under and pursuant to the PFSweb, Inc., 2020 Stock and Incentive Plan, as the same  may be amended from time to time (the “Plan;” terms defined in the Plan having the same meaning when used  herein, except as otherwise defined herein).  NOW, THEREFORE, intending to be legally bound, and for good and valuable consideration, the  sufficiency of which is hereby acknowledged, the Company and the Employee hereby agree as follows:  1. Definitions.  The following terms (not otherwise defined herein), when used in this Agreement,  shall have the following meanings, unless the context clearly requires otherwise (such definitions to be equally  applicable to both the singular and plural of the defined terms):   “Bonus Target” shall mean the corresponding Bonus Target(s) as set forth in the individual Award  Certificate issued by the Company to the Employee.   “Change in Control” shall mean the (i) upon the merger or consolidation of the Company with,  or the sale of all or substantially all of the assets of the Company to, any other corporation or other entity, in each  case, unless, following such merger, consolidation or sale (A) the voting securities of the Company outstanding  immediately prior thereto continue to represent (either by remaining outstanding or by being converted into voting  securities of the surviving or purchasing entity (the “Surviving Entity”)) more than fifty percent (50%) of the  combined voting power of the voting securities of the Company or the Surviving Entity outstanding immediately  after such merger, consolidation or sale; and (B) at least a majority of the members of the board of directors of the  Surviving Entity were Incumbent Directors at the time of the execution of the initial agreement, or of the action  of the Board, providing for such merger, consolidation or sale; or (ii) sale of an operating business segment of the  Company for which the Employee is designated or allocated to perform services or is otherwise employed under.   “ERISA” shall mean the Employee Retirement Income Security Act of 1986, as amended.   “Fiscal Year” shall mean the 12-consecutive-month period beginning on January 1 and ending on  December 31, so that, by way of example, Fiscal Year 2022 shall mean the 12-consecutive-month period  beginning on January 1, 2022 and ending on December 31, 2022.   “Fiscal Year Date” shall mean December 31, 20__.   “Severance Period” shall mean the period following the termination of the Employee’s  employment by the Company during which the employee is entitled to continue to receive his or her base  compensation pursuant to a written severance agreement.  2. Performance-Based Cash Award.  The amount of the Performance-Based Cash Award payable  to the Employee hereunder shall be determined based upon the achievement of the Bonus Target as set forth in  the Award Certificate issued to the Employee hereunder.   3. Determination of Target Achievement.  The Committee, in its sole and absolute discretion,  shall determine when, whether, and if so, the extent to which, the Bonus Target has been achieved.  Such  determination, which shall be final and binding on all parties, shall be certified in writing as soon as  administratively practicable in Fiscal Year 20__.  4. Vesting of Performance-Based Cash Award; Forfeiture.  The Employee shall have no vested  right in the Performance-Based Cash Award unless the Committee certifies that the Bonus Target has been  achieved. Such achievement, as evidenced by such certification by the Committee, shall be construed by all parties  

 

2  as a condition related to the purpose of the compensation for purposes of Section 409A of the Code.  Provided  that such certification is made, and that the Employee is employed by the Company as of the Fiscal Year Date,  vesting shall occur as of the day following the Fiscal Year Date.  If, prior to the Fiscal Year Date, the Employee  voluntarily leaves employment with the Company other than for Good Reason or is terminated by the Company  for Cause, the Employee shall forfeit the entirety of the Performance-Based Cash Award otherwise payable  hereunder.  5. Adjustment of Performance-Based Cash Award.  If the Employee’s employment by the  Company is terminated between the Grant Date and the Fiscal Year Date without Cause or as the result of the  Grantee’s death or Disability, or if the Employee’s employment by the Company is terminated by the Employee  for Good Reason, the Employee shall be entitled to payment of a portion of the Performance-Based Cash Award  equal to the amount of the Performance-Based Cash Award which the Employee would have received hereunder,  if any, subject to and based upon the achievement of the Bonus Target, multiplied by a fraction, the numerator of  which is the number of days in Fiscal Year 20__ in which the Employee is employed by the Company and the  denominator of which is 365. Solely for purposes of the preceding sentence, the Employee shall be deemed  employed by the Company during any applicable Severance Period (but, in no event, beyond the Fiscal Year  Date). If the Committee determines that the occurrence of one or more events following the Grant Date has or will  cause the achievement of the Bonus Target to no longer be an appropriate measure of performance or achievement,  the Committee reserves the right, in its sole discretion, to make one or more further adjustments to the terms hereof  to reflect such event(s).  In addition, in the event of a Change in Control prior to the Fiscal Year Date, (i) the  achievement of the Bonus Target shall be determined based upon an adjusted Bonus Target equal to the  corresponding Bonus Target amounts set forth in the Company budget through the end of the full calendar month  preceding the effective date of the Change in Control, and (ii) subject to, and based upon, the achievement of the  aforesaid adjusted Bonus Target, the Employee shall be entitled to issuance of  the Performance-Based Cash  Award in full as though such Change of Control occurred on the Fiscal Year Date.  6. Payment of Performance-Based Cash Award.  Payment of the Performance-Based Cash  Award shall be made in a single lump sum in cash, less all applicable withholdings, as soon as practicable  following the certification by the Committee set forth in Section 4 above.  In no event shall payment of the  Performance-Based Cash Award be made later than the last day of Fiscal Year 20__.    7. Provisions of Plan.   Except as provided herein, the provisions of this Agreement shall be subject  to the provisions of the Plan, which are hereby incorporated herein by reference and made part hereof.  The  Employee acknowledges and agrees that he or she has been provided with and has read the Plan and understands  the provisions thereof.  In the event of any conflict between the terms of the Plan and the terms of this Agreement,  the terms of the Plan shall take precedence, other than for such provisions of the Plan which, by their terms, are  subject to the provisions of an Award Certificate.  8. No ERISA Plan.  Neither this Agreement nor the award of the Performance-Based Cash Award  hereunder shall be construed by any party as being subject to any provisions of ERISA, and shall not be so subject.   Without in any way limiting the generality of the foregoing, the Performance-Based Cash Award awarded  hereunder shall constitute a mere unfunded promise to pay by the Company and a bonus program within the  meaning of Department of Labor Regulation Section 2510.3-2(c) promulgated under ERISA.  9. Notices.  Any notice required to be delivered to the Company under this Agreement shall be in  writing and addressed to the Secretary of the Company at the Company’s principal corporate offices.  Any notice  required to be delivered to the Employee under this Agreement shall be in writing and addressed to the Employee  at the Employee’s address as shown in the records of the Company.  Either party may designate another address  in writing (or by such other method approved by the Company) from time to time.  10. Parachute Payments and Parachute Awards.  If the Employee is a “disqualified individual,”  as defined in paragraph (c) of Code Section 280G, then, notwithstanding any other provision of this Agreement  or of any other agreement, contract, or understanding heretofore entered into by the Employee and the Company  

 

3  (an “Other Agreement”), except an agreement, contract, or understanding that expressly addresses Code Section  280G or Code Section 4999 (a “280G Agreement”), and notwithstanding any formal or informal plan or other  arrangement for the direct or indirect provision of compensation to the Employee (or an employee group of which  the Employee is a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit  to or for the Employee (a “Benefit Arrangement”), if any of the payments or benefits provided or to be provided  by the Company or its affiliates to the Employee or for the Employee’s benefit pursuant to the terms of this  Agreement, all Other Agreements and all Benefit Arrangements ("Covered Payments") constitute parachute  payments ("Parachute Payments") within the meaning of Code Section 280G and would, but for this Section, be  subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any  similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the  "Excise Tax"), then prior to making the Covered Payments, a calculation shall be made comparing (i) the Net  Benefit (as defined below) to the Employee of the Covered Payments after payment of the Excise Tax to (ii) the  Net Benefit to the Employee if the Covered Payments are limited to the extent necessary to avoid being subject to  the Excise Tax. Only if the amount calculated under (i) above is less than the amount under (ii) above will the  Covered Payments be reduced to the minimum extent necessary to ensure that no portion of the Covered Payments  is subject to the Excise Tax (that amount, the "Reduced Amount"). "Net Benefit" shall mean the present value of  the Covered Payments net of all federal, state, local, foreign income, employment and excise taxes. Any such  reduction shall be made in accordance with Section 409A of the Code and the following: (i) the Covered Payments  which do not constitute nonqualified deferred compensation subject to Section 409A of the Code shall be reduced  first; and (ii) the Covered Payments shall be reduced in a manner that maximizes the Employee's economic  position. In applying this principle, the reduction shall be made in a manner consistent with the requirements of  Section 409A of the Code, and where two economically equivalent amounts are subject to reduction but payable  at different times, such amounts shall be reduced on a pro rata basis but not below zero. The foregoing shall not  be interpreted so as to restrict, reduce, amend or modify any of the existing terms and provisions of any 280G  Agreement to which the Employee and the Company may be a party and any payment hereunder shall be entitled  to the benefits thereof.  11. Severability.  If any provision of this Agreement is determined by a court of competent  jurisdiction to be unenforceable, such determination shall not affect the remaining provisions of this Agreement,  which shall be enforced to the maximum extent permitted under applicable law.  12. Modification.  Subject to the provisions of the Plan, this Agreement may be modified only in  writing pursuant to an agreement by and between the Company and the Employee.  13. Headings.  The headings contained herein are for convenience of reference only and shall not be  construed by any party as having any substantive significance.  14. Clawback. Notwithstanding any other provisions in this Agreement, this Award is subject to  recovery under any current or future law, government regulation or stock exchange listing requirement, and is  subject to such deductions and clawback as may be required to be made pursuant to such law, government  regulation or stock exchange listing requirement (or any policy adopted by the Company at any time pursuant to  any such law, government regulation or stock exchange listing requirement).   15. Execution and Counterparts.  This Agreement shall be deemed effective as of the Grant Date  upon the delivery to the Employee of the Award Certificate hereto (or information contained therein), by electronic  or other means of transmission, and such effectiveness shall not require any counterpart signature of the Employee.    16. Section 409A of the Code.  If the Employee is deemed a "specified employee" within the  meaning of Section 409A of the Code, as determined by the Committee, at a time when the Employee becomes  eligible for settlement hereunder upon his/her "separation from service" within the meaning of Section 409A of  the Code, then to the extent necessary to prevent any accelerated or additional tax under Section 409A of the  Code, such settlement will be delayed until the earlier of: (i) the date that is six months following the Employee's  separation from service and (ii) the Employee's death.   It is the intent that this Performance Cash Award shall  

 

4  comply with the requirements of Section 409A, and any ambiguities herein will be interpreted to so comply. The  Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to  unilaterally amend or modify this Agreement as may be necessary to ensure that all vesting or payouts provided  under this Agreement are made in a manner that complies with Section 409A or to mitigate any additional tax,  interest and/or penalties or other adverse tax consequences that may apply under Section 409A if compliance is  not practical; provided, however, that nothing in this paragraph creates an obligation on the part of the Company  to modify the terms of this Agreement or the Plan, and the Company makes no representation that the terms of  this Performance Cash Award Agreement will comply with Section 409A or that payments under this Performance  Cash Award Agreement will not be subject to taxes, interest and penalties or other adverse tax consequences under  Section 409A. In no event shall the Company or any of its Subsidiaries be liable to any party for any additional  tax, interest or penalties that may be imposed on the Employee by Section 409A or any damages for failing to  comply with Section 409A.      *****a10106formofsticompanype

  1  7416281.5  ____[fiscal year] STI COMPANY PERFORMANCE-BASED SHARE AWARD     THIS _____STI COMPANY PERFORMANCE-BASED SHARE AWARD (this  “Agreement”) is made and entered into as of the ____ day of ______, 20__ (the “Grant Date”) by and  between the employee named on the Award Certificate attached hereto (the “Employee”) and PFSweb,  Inc., a Delaware corporation (the “Company”), and is issued under and pursuant to the PFSweb, Inc. 2020  Stock and Incentive Plan, as the same may be amended from time to time (the “Plan;” terms defined in  the Plan having the same meaning when used herein, except as otherwise defined herein).  NOW, THEREFORE, intending to be legally bound, and for good and valuable consideration,  the sufficiency of which is hereby acknowledged, the Company and the Employee hereby agree as  follows:  1. Definitions.  The following terms (not otherwise defined herein), when used in this  Agreement, shall have the following meanings, unless the context clearly requires otherwise (such  definitions to be equally applicable to both the singular and plural of the defined terms):   “Bonus Target” shall mean the corresponding Bonus Target(s) as set forth in the  individual Award Certificate issued by the Company to the Employee.   “Change in Control” shall mean the (i) upon the merger or consolidation of the Company  with, or the sale of all or substantially all of the assets of the Company to, any other corporation or other  entity, in each case, unless, following such merger, consolidation or sale (A) the voting securities of the  Company outstanding immediately prior thereto continue to represent (either by remaining outstanding or  by being converted into voting securities of the surviving or purchasing entity (the “Surviving Entity”))  more than fifty percent (50%) of the combined voting power of the voting securities of the Company or  the Surviving Entity outstanding immediately after such merger, consolidation or sale; and (B) at least a  majority of the members of the board of directors of the Surviving Entity were Incumbent Directors at the  time of the execution of the initial agreement, or of the action of the Board, providing for such merger,  consolidation or sale; or (ii) sale of an operating business segment of the Company for which the  Employee is designated or allocated to perform services or is otherwise employed under.   “ERISA” shall mean the Employee Retirement Income Security Act of 1986, as  amended.   “Fiscal Year” shall mean the 12-consecutive-month period beginning on January 1 and  ending on December 31, so that, by way of example, Fiscal Year 2022 shall mean the 12-consecutive- month period beginning on January 1, 2022 and ending on December 31, 2022.   “Fiscal Year Date” shall mean December 31, 20__.   “Severance Period” shall mean the period following the termination of the Employee’s  employment by the Company during which the employee is entitled to continue to receive his or her base  compensation pursuant to a written severance agreement.  2. Performance-Based Share Award.  The number of Shares of the Performance-Based  Share Award issuable to the Employee hereunder shall be determined based upon the achievement of the  Bonus Target, as set forth in the Award Certificate issued to the Employee hereunder.   3. Determination of Target Achievement.  The Committee, in its sole and absolute  discretion, shall determine when, whether, and if so, the extent to which, the Bonus Target has been  

 

  2  7416281.5  achieved.  Such determination, which shall be final and binding on all parties, shall be certified in writing  as soon as administratively practicable in Fiscal Year 20__.  4. Vesting of Performance-Based Share Award; Forfeiture.  The Employee shall have  no vested right in the Performance-Based Share Award unless the Committee certifies that the Bonus  Target has been achieved.  Such achievement, as evidenced by such certification by the Committee, shall  be construed by all parties as a condition related to the purpose of the compensation for purposes of  Section 409A of the Code.  Provided that such certification is made, and that the Employee is employed  by the Company as of the Fiscal Year Date, vesting shall occur as of the day following the Fiscal Year  Date.  If, prior to the Fiscal Year Date, the Employee voluntarily leaves employment with the Company  other than for Good Reason or is terminated by the Company for Cause, the Employee shall forfeit the  entirety of the Performance-Based Share Award otherwise issuable hereunder.   5. Adjustment of Performance-Based Share Award.   If the Employee’s employment by  the Company is terminated between the Grant Date and the Fiscal Year Date without Cause or as the  result of the Employee’s death or Disability, or if the Employee’s employment by the Company is  terminated by the Employee for Good Reason, the Employee shall be entitled to issuance of a portion of  the Performance-Based Share Award equal to the amount of the Performance-Based Share Award which  the Employee would have received hereunder, if any, subject to and based upon the achievement of the  Bonus Target, multiplied by a fraction, the numerator of which is the number of days in Fiscal Year 20__  in which the Employee is employed by the Company and the denominator of which is 365. Solely for  purposes of the preceding sentence, the Employee shall be deemed employed by the Company during any  applicable Severance Period (but, in no event, beyond the Fiscal Year Date).  If the Committee determines  that the occurrence of one or more events following the Grant Date has or may cause the achievement of  the Bonus Target to no longer be an appropriate measure of performance or achievement, the Committee  reserves the right, in its sole discretion, to make one or more further adjustments to the terms hereof to  reflect such event(s). In addition, in the event of a Change in Control prior to the Fiscal Year Date, (i) the  achievement of the Bonus Target shall be determined based upon an adjusted Bonus Target equal to the  corresponding Bonus Target amounts set forth in the Company budget through the end of the full calendar  month preceding the effective date of the Change in Control, and (ii) subject to, and based upon, the  achievement of the aforesaid adjusted Bonus Target, the Employee shall be entitled to issuance of the  Performance-Based Share Award in full as though such Change of Control occurred on the Fiscal Year  Date.   6. Issuance of Performance-Based Share Award and Payment of Dividend Equivalent.   Issuance of the Performance-Based Share Award shall be made as soon as practicable following the  certification by the Committee set forth in Section 4 above by the issuance of one or more stock  certificates in the name of the Employee or by using a book entry account with the Company's transfer  agent. In the event that the Company declares a dividend or distribution, whether in cash or other  property, with a record date after the Grant Date and prior to the effective date of the aforesaid issuance of  the Performance-Based Share Award, the Company shall pay to the Employee that amount of cash or  other property which the Employee would have received had the Employee been the record holder of the  shares of Stock actually issued hereunder on such record date. In no event shall issuance of the  Performance-Based Share Award, or payment of the aforesaid Dividend Equivalent, be made later than  the last day of Fiscal Year 20__; provided, however, any shares of Stock to be issued pursuant to the last  sentence of Section 5 above shall be issued no later than such time as may be necessary or required in  order for the Employee to be deemed the lawful owner and holder of record of such shares of Stock as of  the effective date and time of the Change in Control.  7. Provisions of Plan.     

 

  3  7416281.5   (a) Adjustments. If any change is made to the outstanding Stock or the capital  structure of the Company, the shares of Stock to be issued hereunder shall be adjusted or terminated in  any manner as contemplated by Article 15 of the Plan.   (b) Tax Liability and Withholding. The Employee shall be required to pay to the  Company, and the Company shall have the right to deduct from the shares of Stock to be issued upon the  vesting of the Performance Based Share Award, the amount of any required withholding taxes in respect  of the shares of Stock to be issued upon the vesting of the Performance Based Share Award and to take all  such other action as the Company deems necessary to satisfy all obligations for the payment of such  withholding taxes.   (c) Except as provided herein, the provisions of this Agreement shall be subject to  the provisions of the Plan, which are hereby incorporated herein by reference and made part hereof.  The  Employee acknowledges and agrees that he or she has been provided with and has read the Plan and  understands the provisions thereof.  In the event of any conflict between the terms of the Plan and the  terms of this Agreement, the terms of the Plan shall take precedence, other than for such provisions of the  Plan which, by their terms, are subject to the provisions of an Award Certificate.  8. No ERISA Plan.  Neither this Agreement nor the award of the Performance-Based Share  Award hereunder shall be construed by any party as being subject to any provisions of ERISA, and shall  not be so subject.  Without in any way limiting the generality of the foregoing, the Performance-Based  Share Award awarded hereunder shall constitute a mere unfunded promise to pay by the Company and a  bonus program within the meaning of Department of Labor Regulation Section 2510.3-2(c) promulgated  under ERISA.  9. No Rights as a Shareholder. Subject to any exceptions set forth in this Agreement or the  Plan, prior to the vesting of the Performance Shares hereunder, the Shares or the rights relating thereto  may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the  Employee. Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or encumber the  Shares or the rights relating thereto during such period shall be wholly ineffective and, if any such attempt  is made, the Shares will be forfeited by the Employee and all of the Employee's rights to such Shares shall  immediately terminate without any payment or consideration by the Company.  Except as set forth herein,  the Employee shall have no rights in, to or under the Shares of Stock to be issued upon the vesting of the  Performance Share Award unless and until the vesting conditions set forth herein are satisfied and, until  such date, shall have no rights of a shareholder of the Company including, without limitation, no right to  vote such Shares and no right to receive any dividends or other distributions paid with respect to such  Shares.  10. Notices.  Any notice required to be delivered to the Company under this Agreement shall  be in writing and addressed to the Secretary of the Company at the Company’s principal corporate  offices.  Any notice required to be delivered to the Employee under this Agreement shall be in writing  and addressed to the Employee at the Employee’s address as shown in the records of the Company.   Either party may designate another address in writing (or by such other method approved by the  Company) from time to time.  11. Parachute Payments and Parachute Awards.  If the Employee is a “disqualified  individual,” as defined in paragraph (c) of Code Section 280G, then, notwithstanding any other provision  of this Agreement or of any other agreement, contract, or understanding heretofore entered into by the  Employee and the Company (an “Other Agreement”), except an agreement, contract, or understanding  that expressly addresses Code Section 280G or Code Section 4999 (a “280G Agreement”), and  notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of  

 

  4  7416281.5  compensation to the Employee (or an employee group of which the Employee is a member), whether or  not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Employee (a  “Benefit Arrangement”), if any of the payments or benefits provided or to be provided by the Company or  its affiliates to the Employee or for the Employee’s benefit pursuant to the terms of this Agreement, all  Other Agreements and all Benefit Arrangements ("Covered Payments") constitute parachute payments  ("Parachute Payments") within the meaning of Code Section 280G and would, but for this Section, be  subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or  any similar tax imposed by state or local law or any interest or penalties with respect to such taxes  (collectively, the "Excise Tax"), then prior to making the Covered Payments, a calculation shall be made  comparing (i) the Net Benefit (as defined below) to the Employee of the Covered Payments after payment  of the Excise Tax to (ii) the Net Benefit to the Employee if the Covered Payments are limited to the extent  necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (i) above is less  than the amount under (ii) above will the Covered Payments be reduced to the minimum extent necessary  to ensure that no portion of the Covered Payments is subject to the Excise Tax (that amount, the "Reduced  Amount"). "Net Benefit" shall mean the present value of the Covered Payments net of all federal, state,  local, foreign income, employment and excise taxes. Any such reduction shall be made in accordance  with Section 409A of the Code and the following: (i) the Covered Payments which do not constitute  nonqualified deferred compensation subject to Section 409A of the Code shall be reduced first; and (ii)  the Covered Payments shall be reduced in a manner that maximizes the Employee's economic position. In  applying this principle, the reduction shall be made in a manner consistent with the requirements of  Section 409A of the Code, and where two economically equivalent amounts are subject to reduction but  payable at different times, such amounts shall be reduced on a pro rata basis but not below zero. The  foregoing shall not be interpreted so as to restrict, reduce, amend or modify any of the existing terms and  provisions of any 280G Agreement to which the Employee and the Company may be a party and any  payment hereunder shall be entitled to the benefits thereof.  12. Severability.  If any provision of this Agreement is determined by a court of competent  jurisdiction to be unenforceable, such determination shall not affect the remaining provisions of this  Agreement, which shall be enforced to the maximum extent permitted under applicable law.  13. Modification.  Subject to the provisions of the Plan, this Agreement may be modified  only in writing pursuant to an agreement by and between the Company and the Employee.  14. Headings.  The headings contained herein are for convenience of reference only and  shall not be construed by any party as having any substantive significance.  15. Clawback. Notwithstanding any other provisions in this Agreement, this Award is  subject to recovery under any current or future law, government regulation or stock exchange listing  requirement, and is subject to such deductions and clawback as may be required to be made pursuant to  such law, government regulation or stock exchange listing requirement (or any policy adopted by the  Company at any time pursuant to any such law, government regulation or stock exchange listing  requirement).  16. Execution and Effective Date.  This Agreement shall be deemed effective as of the  Grant Date upon the delivery to the Employee of the Award Certificate hereto (or information contained  therein), by electronic or other means of transmission, and such effectiveness shall not require any  counterpart signature of the Employee.    17. Section 409A of the Code.  If the Employee is deemed a "specified employee" within the  meaning of Section 409A of the Code, as determined by the Committee, at a time when the Employee  becomes eligible for settlement of the Performance Shares upon his/her "separation from service" within  

 

  5  7416281.5  the meaning of Section 409A of the Code, then to the extent necessary to prevent any accelerated or  additional tax under Section 409A of the Code, such settlement will be delayed until the earlier of: (i) the  date that is six months following the Employee's separation from service and (ii) the Employee's death.    It is the intent that this Performance Share Award shall comply with the requirements of Section 409A,  and any ambiguities herein will be interpreted to so comply. The Company reserves the right, to the  extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify  this Agreement as may be necessary to ensure that all vesting or payouts provided under this Agreement  are made in a manner that complies with Section 409A or to mitigate any additional tax, interest and/or  penalties or other adverse tax consequences that may apply under Section 409A if compliance is not  practical; provided, however, that nothing in this paragraph creates an obligation on the part of the  Company to modify the terms of this Agreement or the Plan, and the Company makes no representation  that the terms of this Performance Share Award Agreement will comply with Section 409A or that  payments under this Performance Share Award Agreement will not be subject to taxes, interest and  penalties or other adverse tax consequences under Section 409A. In no event shall the Company or any of  its Subsidiaries be liable to any party for any additional tax, interest or penalties that may be imposed on  the Employee by Section 409A or any damages for failing to comply with Section 409A.    *****

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