Document:

Exhibit

Exhibit 10.11

SPROUT SOCIAL, INC.
NOTICE OF GRANT OF RESTRICTED STOCK AWARD
Sprout Social, Inc. (the “Company”) has granted to the Participant a Restricted Stock Award (the “Award”) pursuant to the Sprout Social, Inc. 2016 Stock Plan (the “Plan”), as follows:
	
				
	Participant:
	Justyn Howard
	 

	 
	 
	 

	Date of Grant:
	June 9, 2019
	 

	 
	 
	 
	 

	Number of Shares:
	434,436
	 
	 

	 
	 
	 
	 

	 
	The shares of Stock subject to the Award shall be vested in full as of the Date of Grant.

By their signatures below, the Company and the Participant agree that the Award is governed by this Grant Notice and by the provisions of the Plan and the Restricted Stock Award Agreement, both of which are made a part of this document.  The Participant acknowledges receipt of copies of the Plan and the Restricted Stock Award Agreement, represents that the Participant has read and is familiar with their provisions, and hereby accepts the Award subject to all of their terms and conditions.
	
					
	SPROUT SOCIAL, INC.
	 
	PARTICIPANT:

	 
	 
	 

	By:
	 /s/ Joseph Del Preto
	 
	Justyn Howard

	Name: Joe Del Preto
	 
	Signature

	Its: Chief Financial Officer
	 
	/s/ Justyn Howard

	 
	 
	Date

	Address:
	131 S. Dearborn St.
	 
	June 10, 2019

	 
	 
	Suite 700
	 
	Address

	 
	 
	Chicago, IL 60603
	 
	131 S. Dearborn St., Suite 700, Chicago, IL 60603

ATTACHMENTS:    2016 Stock Plan, as amended to the Date of Grant, and Restricted Stock Award Agreement

THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.
SPROUT SOCIAL, INC.
RESTRICTED STOCK AWARD AGREEMENT
Sprout Social, Inc. has granted to the Participant named in the Notice of Grant of Restricted Stock Award (the “Grant Notice”) to which this Restricted Stock Award Agreement (the “Agreement”) is attached a Restricted Stock Award (the “Award”) subject to the terms and conditions set forth in the Grant Notice and this Agreement.  The Award has been granted as  “Restricted Stock Bonus” pursuant to and shall in all respects be subject to the terms and conditions of the Sprout Social, Inc. 2016 Stock Plan (the “Plan”), as amended to the Date of Grant, the provisions of which are incorporated herein by reference.  By signing the Grant Notice, the Participant: (a) acknowledges receipt of and represents that the Participant has read and is familiar with the Grant Notice, this Agreement and the Plan, (b) accepts the Award subject to all of the terms and conditions of the Grant Notice, this Agreement and the Plan and (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any questions arising under the Grant Notice, this Agreement or the Plan.
1.DEFINITIONS AND CONSTRUCTION.
1.1    Definitions.  Capitalized terms shall have the meanings assigned to such terms in the Grant Notice or the Plan, unless otherwise defined herein.
1.2    Construction.  Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.
2.ADMINISTRATION.
All questions of interpretation concerning the Grant Notice, this Agreement, the Plan or any other form of agreement or other document employed by the Company in the administration of the Plan or the Award shall be determined by the Board.  All such determinations by the Board shall be final, binding and conclusive upon all persons having an interest in the Award, unless fraudulent or made in bad faith.  Any and all actions, decisions and determinations taken or made by the Board in the exercise of its discretion pursuant to the Plan or the Award or other agreement thereunder (other than determining questions of interpretation pursuant to the preceding sentence) shall be final, binding and conclusive upon all persons having an interest in the Award.  Any Officer shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, 

or election which is the responsibility of or which is allocated to the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation, or election.
3.THE AWARD.
3.1    Grant of Restricted Stock Award.  On the Date of Grant, the Participant shall acquire, subject to the provisions of this Agreement, the Number of Shares set forth in the Grant Notice, which shares of Stock shall not be subject to any restriction on transfer other than any such restriction as may be required by Section 3.4, Section 4 or the Company’s Trading Compliance Policy.  As provided in the Grant Notice, the Award shall be vested in full on the Date of Grant.  
3.2    No Monetary Payment Required.  The Participant is not required to make any monetary payment, other than applicable tax withholding in accordance with Section 4, as a condition to receiving the shares of Stock pursuant to the Award, the consideration for which shall be past services actually rendered or future services to be rendered to a Participating Company or for its benefit.  
3.3    Beneficial Ownership of Shares; Certificate Registration.  The Participant hereby authorizes the Company, in its sole discretion, to deposit any or all shares acquired by the Participant pursuant to the Award with the Company’s transfer agent, including any successor transfer agent, to be held in book entry form, or to deposit such shares for the benefit of the Participant with any broker with which the Participant has an account relationship of which the Company has notice.  Except as provided by the foregoing, a certificate for the shares acquired by the Participant shall be registered in the name of the Participant, or, if applicable, in the names of the heirs of the Participant.
3.4    Restrictions on Grant of the Award and Issuance of Shares.  The grant of the Award and issuance of shares of Stock pursuant to the Award shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities.  No shares of Stock may be issued hereunder if the issuance of such shares would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed.  The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance of any shares subject to the Award shall relieve the Company of any liability in respect of the failure to issue such shares as to which such requisite authority shall not have been obtained.  As a condition to the Award, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company.
3.5    Fractional Shares.  The Company shall not be required to issue fractional shares pursuant to the Award.

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4.TAX WITHHOLDING.
4.1    In General.  At the time the Grant Notice is executed, or at any time thereafter as requested by a Participating Company, the Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy the federal, state, local and foreign tax (including any social insurance) withholding obligations of the Participating Company, if any, which arise in connection with the Award or the issuance of shares of Stock thereunder.  The Company shall have no obligation to deliver shares of Stock until the tax withholding obligations of the Participating Company have been satisfied by the Participant.
4.2    Assignment of Sale Proceeds.  Subject to compliance with applicable law and the Company’s Trading Compliance Policy, the Company hereby authorizes the Participant to satisfy the Participating Company’s tax withholding obligations in accordance with procedures established by the Company providing for delivery by the Participant to the Company or a broker approved by the Company of properly executed instructions, in a form approved by the Company, providing for the assignment to the Company of the proceeds of a sale with respect to some or all of the shares being issued pursuant to the Award.
4.3    Withholding in Shares.  Upon request by the Participant, the Company shall permit the Participant to satisfy all or any portion of a Participating Company’s tax withholding obligations by deducting from the shares of Stock otherwise deliverable to the Participant pursuant to the Award a number of whole shares having a fair market value, as determined by the Company as of the date on which the tax withholding obligations arise, not in excess of the amount of such tax withholding obligations determined by the applicable minimum statutory withholding rates.
5.RIGHT OF FIRST REFUSAL.
5.1    Grant of Right of First Refusal.  Except as provided in Section 5.7, in the event the Participant, the Participant’s legal representative, or other holder of shares acquired pursuant to the Award proposes to sell, exchange, transfer, pledge, or otherwise dispose of any such shares (the “Transfer Shares”) to any person or entity, including, without limitation, any stockholder of a Participating Company, the Company shall have the right to repurchase the Transfer Shares under the terms and subject to the conditions set forth in this Section (the “Right of First Refusal”).
5.2    Notice of Proposed Transfer.  Prior to any proposed transfer of the Transfer Shares, the Participant shall deliver written notice (the “Transfer Notice”) to the Company describing fully the proposed transfer, including the number of Transfer Shares, the name and address of the proposed transferee (the “Proposed Transferee”) and, if the transfer is voluntary, the proposed transfer price, and containing such information necessary to show the bona fide nature of the proposed transfer.  In the event of a bona fide gift or involuntary transfer, the proposed transfer price shall be deemed to be the Fair Market Value of the Transfer Shares, as determined by the Board in good faith.  If the Participant proposes to transfer any Transfer Shares to more than one Proposed Transferee, the Participant shall provide a separate Transfer Notice for the proposed transfer to each Proposed Transferee.  The Transfer Notice shall be signed by both the Participant 

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and the Proposed Transferee and must constitute a binding commitment of the Participant and the Proposed Transferee for the transfer of the Transfer Shares to the Proposed Transferee subject only to the Right of First Refusal.
5.3    Bona Fide Transfer.  If the Company determines that the information provided by the Participant in the Transfer Notice is insufficient to establish the bona fide nature of a proposed voluntary transfer, the Company shall give the Participant written notice of the Participant’s failure to comply with the procedure described in this Section 5, and the Participant shall have no right to transfer the Transfer Shares without first complying with the procedure described in this Section 5.  The Participant shall not be permitted to transfer the Transfer Shares if the proposed transfer is not bona fide.
5.4    Exercise of Right of First Refusal.  If the Company determines the proposed transfer to be bona fide, the Company shall have the right to purchase all, but not less than all, of the Transfer Shares (except as the Company and the Participant otherwise agree) at the purchase price and on the terms set forth in the Transfer Notice by delivery to the Participant of a notice of exercise of the Right of First Refusal within thirty (30) days after the date the Transfer Notice is delivered to the Company.  The Company’s exercise or failure to exercise the Right of First Refusal with respect to any proposed transfer described in a Transfer Notice shall not affect the Company’s right to exercise the Right of First Refusal with respect to any proposed transfer described in any other Transfer Notice, whether or not such other Transfer Notice is issued by the Participant or issued by a person other than the Participant with respect to a proposed transfer to the same Proposed Transferee.  If the Company exercises the Right of First Refusal, the Company and the Participant shall thereupon consummate the sale of the Transfer Shares to the Company on the terms set forth in the Transfer Notice within sixty (60) days after the date the Transfer Notice is delivered to the Company (unless a longer period is offered by the Proposed Transferee); provided, however, that in the event the Transfer Notice provides for the payment for the Transfer Shares other than in cash, the Company shall have the option of paying for the Transfer Shares by the present value cash equivalent of the consideration described in the Transfer Notice as reasonably determined by the Company.  For purposes of the foregoing, cancellation of any indebtedness of the Participant to any Participating Company shall be treated as payment to the Participant in cash to the extent of the unpaid principal and any accrued interest canceled.  Notwithstanding anything contained in this Section to the contrary, the period during which the Company may exercise the Right of First Refusal and consummate the purchase of the Transfer Shares from the Participant shall terminate no sooner than the completion of a period of eight (8) months following the date on which the Participant acquired the Transfer Shares.
5.5    Failure to Exercise Right of First Refusal.  If the Company fails to exercise the Right of First Refusal in full (or to such lesser extent as the Company and the Participant otherwise agree) within the period specified in Section 5.4, the Participant may conclude a transfer to the Proposed Transferee of the Transfer Shares on the terms and conditions described in the Transfer Notice, provided such transfer occurs not later than ninety (90) days following delivery to the Company of the Transfer Notice or, if applicable, following the end of the period described in the last sentence of Section 5.4.  The Company shall have the right to demand further assurances from the Participant and the Proposed Transferee (in a form satisfactory to the Company) that the 

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transfer of the Transfer Shares was actually carried out on the terms and conditions described in the Transfer Notice.  No Transfer Shares shall be transferred on the books of the Company until the Company has received such assurances, if so demanded, and has approved the proposed transfer as bona fide.  Any proposed transfer on terms and conditions different from those described in the Transfer Notice, as well as any subsequent proposed transfer by the Participant, shall again be subject to the Right of First Refusal and shall require compliance by the Participant with the procedure described in this Section.
5.6    Transferees of Transfer Shares.  All transferees of the Transfer Shares or any interest therein, other than the Company, shall be required as a condition of such transfer to agree in writing (in a form satisfactory to the Company) that such transferee shall receive and hold such Transfer Shares or interest therein subject to all of the terms and conditions of this Agreement, including this Section 5 providing for the Right of First Refusal with respect to any subsequent transfer.  Any sale or transfer of any Shares shall be void unless the provisions of this Section are met.
5.7    Transfers Not Subject to Right of First Refusal.  The Right of First Refusal shall not apply to any transfer or exchange of the Shares if such transfer or exchange is in connection with an Ownership Change Event.  If the consideration received pursuant to such transfer or exchange consists of stock of a Participating Company, such consideration shall remain subject to the Right of First Refusal unless the provisions of Section 5.9 result in a termination of the Right of First Refusal.
5.8    Assignment of Right of First Refusal.  The Company shall have the right to assign the Right of First Refusal at any time, whether or not there has been an attempted transfer, to one or more persons as may be selected by the Company.
5.9    Early Termination of Right of First Refusal.  The other provisions of this Agreement notwithstanding, the Right of First Refusal shall terminate and be of no further force and effect upon the existence of a public market for the class of shares subject to the Right of First Refusal.  A “public market” shall be deemed to exist if (i) such stock is listed on a national securities exchange (as that term is used in the Exchange Act) or (ii) such stock is traded on the over‐the‐counter market and prices therefor are published daily on business days in a recognized financial journal.
6.RIGHTS AS A STOCKHOLDER, DIRECTOR, EMPLOYEE OR CONSULTANT.
The Participant shall have all rights as a stockholder with respect to the shares issued pursuant to the Award from and after the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date the shares are issued.  If the Participant is an Employee, the Participant understands and acknowledges that, except as otherwise provided in a separate, written employment agreement between a Participating Company and the Participant, the Participant’s employment is “at will” and is for no specified term.  Nothing in this Agreement shall confer upon the Participant any right to continue in the Service of a Participating Company or interfere in any way with any right of the Participating Company Group to terminate the Participant’s Service at any time.

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7.LEGENDS.
The Company may at any time place legends referencing the Right of First Refusal and any applicable federal, state or foreign securities law restrictions on all certificates representing shares of stock issued pursuant to this Agreement.  The Participant shall, at the request of the Company, promptly present to the Company any and all certificates representing shares acquired pursuant to this Award in the possession of the Participant in order to carry out the provisions of this Section.  Unless otherwise specified by the Company, legends placed on such certificates may include, but shall not be limited to, the following:
7.1    “THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 OR RULE 701 UNDER THE ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.”
7.2    “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND REPURCHASE OPTIONS IN FAVOR OF THE CORPORATION OR ITS ASSIGNEE SET FORTH IN AN AGREEMENT BETWEEN THE CORPORATION AND THE REGISTERED HOLDER, OR SUCH HOLDER’S PREDECESSOR IN INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THIS CORPORATION.”
8.TAX MATTERS.
8.1    Section 409A.  This Award is not intended to constitute “nonqualified deferred compensation” within the meaning of Section 409A.  However, notwithstanding any other provision of the Plan, the Grant Notice or this Agreement, if at any time the Company determines that this Award may be subject to Section 409A, the Company shall have the right in its sole discretion (without any obligation to do so or to indemnify the Participant or any other Person for failure to do so) to adopt such amendments to the Plan, the Grant Notice or this Agreement, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as may be determined by the Company, in its discretion, to be necessary or appropriate to comply with the Section 409A Regulations without prior notice to or consent of the Participant.  The Participant hereby releases and holds harmless the Company, its directors, officers and stockholders from any and all claims that may arise from or relate to any tax liability, penalties, interest, costs, fees or other liability incurred by the Participant in connection with the Award, including as a result of the application of Section 409A.  
8.2    Advice of Independent Tax Advisor.  The Company has not obtained a tax ruling or other confirmation from the Internal Revenue Service with regard to the application of Section 409A to the Award, and the Company does not represent or warrant that this Agreement 

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will avoid adverse tax consequences to the Participant, including as a result of the application of Section 409A to the Award.  The Participant hereby acknowledges that he or she has been advised to seek the advice of his or her own independent tax advisor prior to entering into this Agreement and is not relying upon any representations of the Company or any of its agents as to the effect of or the advisability of entering into this Agreement.
9.LOCK-UP AGREEMENT.
The Participant hereby agrees that in the event of any underwritten public offering of stock, including an initial public offering of stock, made by the Company pursuant to an effective registration statement filed under the Securities Act, the Participant shall not offer, sell, contract to sell, pledge, hypothecate, grant any option to purchase or make any short sale of, or otherwise dispose of any shares of stock of the Company or any rights to acquire stock of the Company for such period of time from and after the effective date of such registration statement as may be established by the underwriter for such public offering; provided, however, that such period of time shall not exceed one hundred eighty (180) days from the effective date of the registration statement to be filed in connection with such public offering; provided, further, however, that such one hundred eighty (180) day period may be extended for an additional period, not to exceed twenty (20) days, upon the request of the Company or the underwriter to accommodate regulatory restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including but not limited to, the restrictions contained in NASD Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto).  The foregoing limitation shall not apply to shares registered in the public offering under the Securities Act.  The Participant hereby agrees to enter into any agreement reasonably required by the underwriters to implement the foregoing within a reasonable timeframe if so requested by the Company.
10.RESTRICTIONS ON TRANSFER OF SHARES.
At any time prior to the existence of a public market for the Stock, the Board may prohibit the Participant and any transferee of such Participant from selling, transferring, assigning, pledging, or otherwise disposing of or encumbering any shares acquired pursuant to the Award (each, a “Transfer”) without the prior written consent of the Board.  The Board may withhold consent for any reason, including without limitation any Transfer (i) to any individual or entity identified by the Company as a potential competitor or considered by the Company to be unfriendly, or (ii) if such Transfer increases the risk of the Company having a class of security held of record by such number of persons as would require the Company to register any class of securities under the Exchange Act; or (iii) if such Transfer would result in the loss of any federal or state securities law exemption relied upon by the Company in connection with the initial issuance of such shares or the issuance of any other securities; or (iv) if such Transfer is facilitated in any manner by any public posting, message board, trading portal, Internet site, or similar method of communication, including without limitation any trading portal or Internet site intended to facilitate secondary transfers of securities; or (v) if such Transfer is to be effected in a brokered transaction; or (vi) if such Transfer would be of less than all of the shares of Stock then held by the stockholder and its affiliates or is to be made to more than a single transferee.  No shares acquired pursuant to this Award may be sold, exchanged, transferred (including, without limitation, any transfer to a nominee 

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or agent of the Participant), assigned, pledged, hypothecated or otherwise disposed of, including by operation of law in any manner which violates any of the provisions of this Agreement, and any such attempted disposition shall be void.  The Company shall not be required (a) to transfer on its books any shares which will have been transferred in violation of any of the provisions set forth in this Agreement or (b) to treat as owner of such shares or to accord the right to vote as such owner or to pay dividends to any transferee to whom such shares will have been so transferred.
11.MISCELLANEOUS PROVISIONS.
11.1    Termination or Amendment.  The Board may terminate or amend the Plan or this Agreement at any time; provided, however, that no such termination or amendment may have a materially adverse effect on the Participant’s rights under this Agreement without the consent of the Participant unless such termination or amendment is necessary to comply with applicable law or government regulation, including, but not limited to, Section 409A.  No amendment or addition to this Agreement shall be effective unless in writing.
11.2    Further Instruments.  The parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.
11.3    Binding Effect.  This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the Participant and the Participant’s heirs, executors, administrators, successors and assigns.
11.4    Delivery of Documents and Notices.  Any document relating to participation in the Plan or any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address, if any, provided for the Participant by a Participating Company, or upon deposit in the U.S. Post Office or foreign postal service, by registered or certified mail, or with a nationally recognized overnight courier service, with postage and fees prepaid, addressed to the other party at the address of such party set forth in the Grant Notice or at such other address as such party may designate in writing from time to time to the other party.
(a)    Description of Electronic Delivery.  The Plan documents, which may include but do not necessarily include: the Plan, the Grant Notice, this Agreement, the Plan Prospectus, and any reports of the Company provided generally to the Company’s stockholders, may be delivered to the Participant electronically.  In addition, if permitted by the Company, the Participant may deliver electronically the Grant Notice to the Company or to such third party involved in administering the Plan as the Company may designate from time to time.  Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet or the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other means of electronic delivery specified by the Company.
(b)    Consent to Electronic Delivery.  The Participant acknowledges that the Participant has read Section 11.4(a) of this Agreement and consents to the electronic delivery 

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of the Plan documents and, if permitted by the Company, the delivery of the Grant Notice, as described in Section 11.4(a).  The Participant acknowledges that he or she may receive from the Company a paper copy of any documents delivered electronically at no cost to the Participant by contacting the Company by telephone or in writing.  The Participant further acknowledges that the Participant will be provided with a paper copy of any documents if the attempted electronic delivery of such documents fails.  Similarly, the Participant understands that the Participant must provide the Company or any designated third party administrator with a paper copy of any documents if the attempted electronic delivery of such documents fails.  The Participant may revoke his or her consent to the electronic delivery of documents described in Section 11.4(a) or may change the electronic mail address to which such documents are to be delivered (if Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail.  Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents described in Section 11.4(a).
11.5    Integrated Agreement.  The Grant Notice, this Agreement and the Plan shall constitute the entire understanding and agreement of the Participant and the Participating Company Group with respect to the subject matter contained herein or therein and supersede any prior agreements, understandings, restrictions, representations, or warranties among the Participant and the Participating Company Group with respect to such subject matter.  To the extent contemplated herein or therein, the provisions of the Grant Notice, this Agreement and the Plan shall survive the issuance of shares pursuant to the Award and shall remain in full force and effect.
11.6    Applicable Law.  This Agreement shall be governed by the laws of the State of Delaware as such laws are applied to agreements between Delaware residents entered into and to be performed entirely within the State of Delaware.
11.7    Counterparts.  The Grant Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

9Exhibit 10.1

 

RESTRICTED STOCK UNIT AGREEMENT

under the

Hexcel Corporation 2013 Incentive Stock Plan

(as amended and approved in May 2019)

 

This Restricted Stock Unit Agreement (the “Agreement”),
is entered into as of the Grant Date, by and between Hexcel Corporation, a Delaware corporation (the “Company”), and
the Grantee. When the Grantee is a resident of France, this Agreement may be supplemented by specific terms and conditions that
will aim at making its provisions compliant with French free shares plan rules.

 

The Company maintains the Hexcel Corporation 2013
Incentive Stock Plan (the “Plan”). The Compensation Committee (the “Committee”) of the Board of Directors
of the Company (the “Board”) has determined that the Grantee shall be granted Restricted Stock Units (“RSUs”)
upon the terms and subject to the conditions hereinafter contained. Capitalized terms used but not defined herein shall have
the meanings assigned to them in the Plan.

 

1.        Notice
of Grant; Acceptance of Agreement. Pursuant to the Plan and subject to the terms and conditions set forth herein and therein,
the Corporation hereby grants to the Grantee the number of RSUs indicated on the Notice of Grant attached hereto as Annex A,
which Notice of Grant is incorporated by reference herein. Grantee will be deemed to accept the terms and conditions of this Agreement
by clicking the “Accept” button on the Award Acceptance screen with regard to the RSUs.

 

2.        Incorporation
of Plan. The Plan is incorporated by reference and made a part of this Agreement, and this Agreement shall be subject to the
terms of the Plan, as the Plan may be amended from time to time. The RSUs granted herein constitute an Award within the meaning
of the Plan.

 

3.        Terms
of Restricted Stock Units. The grant of RSUs provided in Section 1 hereof shall be subject to the following terms, conditions
and restrictions:

 

(a)       Each
RSU (the “Restricted Units”) shall convert into one share of the Company’s common stock, $.01 par value per share
(the “Common Stock”). The Grantee shall not possess any incidents of ownership (including, without limitation, dividend
and voting rights) in shares of the Common Stock in respect of the RSUs until such RSUs have vested and converted into shares of
Common Stock (hereinafter “RSU Shares”).

 

(b)       Except
as provided in this Section 3(b), the Restricted Units and any interest therein may not be sold, assigned, transferred, pledged,
hypothecated or otherwise disposed of, except by will or the laws of descent and distribution. Any attempt to transfer Restricted
Units in contravention of this Section is void ab initio. Restricted Units shall not be subject to execution, attachment or other
process. Notwithstanding the foregoing and subject to applicable law, the Grantee shall be permitted to transfer Restricted Units
to members of his or her immediate family (i.e., children, grandchildren or spouse), trusts for the benefit of such family members,
and partnerships or other entities whose only partners or equity owners are such family members; provided, however, that no consideration
can be paid for the transfer of the Restricted Units and the transferee of the Restricted Units must agree to be subject to all
conditions

    	 

    	

    

applicable to the Restricted Units (including all of the terms and
conditions of this Agreement) prior to transfer.

 

(c)        Forfeiture
of Restricted Units and RSU Shares on Certain Conditions. Grantee hereby acknowledges that the Hexcel Group has given or will
give Grantee access to certain confidential, proprietary or trade secret information, which the Hexcel Group considers extremely
valuable and which provides the Hexcel Group with a competitive advantage in the markets in which the Hexcel Group develops or
sells its products. The Grantee further acknowledges that the use of such information by Grantee other than in furtherance of Grantee’s
job responsibilities with the Hexcel Group would be extremely detrimental to the Hexcel Group and would cause immediate and irreparable
harm to the Hexcel Group. In exchange for access to such confidential, proprietary or trade secret information, Grantee hereby
agrees as follows:

 

(i)       Notwithstanding
anything to the contrary contained in this Agreement, should the Grantee breach the “Protective Condition” (as defined
in Section 3(c)(ii)), then (A) any Restricted Units, to the extent not previously converted into RSU Shares and distributed to
the Grantee, shall immediately be forfeited upon such breach, (B) the Grantee shall immediately deliver to the Company the number
of RSU Shares previously distributed to the Grantee during the 180-day period prior to the termination of the Grantee’s employment
with any member of the Hexcel Group and (C) if any RSU Shares were sold during the 180-day period immediately prior to such termination
of employment in an arms’ length transaction or disposed of in any other manner, the Grantee shall immediately deliver to
the Company all proceeds of such arms’ length sales and if disposed of otherwise than in arms’ length sale, the Fair
Market Value of such RSU Shares determined at the time of disposition. The RSU Shares and proceeds to be delivered under clauses
(B) and (C) may be reduced to reflect the Grantee’s liability for taxes payable on such RSU Shares and/or proceeds.

 

(ii)       “Protective
Condition” shall mean that (A) the Grantee complies with all terms and provisions of any obligation of confidentiality contained
in a written agreement with any member of the Hexcel Group signed by the Grantee, or otherwise imposed on Grantee by applicable
law, and (B) during the time Grantee is employed by any member of the Hexcel Group and for a period of one year following the termination
of the Grantee’s employment with any member of the Hexcel Group, the Grantee does not (1) engage, in any capacity, directly
or indirectly, including but not limited to as employee, agent, consultant, manager, executive, owner or stockholder (except as
a passive investor holding less than a 5% equity interest in any enterprise), in any business enterprise then engaged in competition
with the business conducted by the Hexcel Group anywhere in the world; provided, however, that the Grantee may be employed by a
competitor of the Hexcel Group within such one year period so long as the duties and responsibilities of Grantee’s position
with such competitor do not involve the same or substantially similar duties and responsibilities as those performed by the Grantee
for any member of the Hexcel Group in a business segment of the new employer which competes with the business segment(s) with which
the Grantee worked or had supervisory authority over while employed by any member of the Hexcel Group during the twelve (12) months
immediately preceding the date on which the Grantee’s employment terminates, (2) employ or attempt to employ, solicit or
attempt to solicit, or negotiate or arrange the employment or engagement with Grantee or any other Person, of any Person who was
at the date of termination of the Grantee’s employment, or within twelve (12) months prior to that date had been, a member
of the senior management of any member of the Hexcel Group with whom the Grantee worked closely or was an employee with whom the
Grantee worked closely or had supervisory authority over during the twelve months immediately preceding the date on which the Grantee’s
employment

    	2

    	

    

terminates or (3) disparage any member of the Hexcel Group, any of
its respective current or former directors, officers or employees or any of its respective products.

 

(iii)       In
the event Section 3(c)(i) or Section 3(c)(ii) is unenforceable in the jurisdiction in which the Grantee is employed on the date
hereof, such section nevertheless shall be enforceable to the full extent permitted by the laws of any jurisdiction in which the
Company shall have the ability to seek remedies against the Grantee arising from any activity prohibited by this Section 3(c).

 

(iv)       Notwithstanding any other provision
in the Plan or this Agreement to the contrary, whenever the Company may be entitled or required by law, Company policy or the requirements
of an exchange on which the Company’s shares are listed for trading, to cause an Award to be forfeited or to recoup compensation
received by the Grantee pursuant to the Plan, including recovery of shares distributed or the proceeds of shares sold or transferred,
the Grantee shall accept such forfeiture and comply with any Company request or demand for recoupment of compensation received.

 

4.        Vesting
and Conversion of Restricted Units. Subject to Section 5, the Restricted Units shall vest and be converted into an equivalent
number of RSU Shares that will be immediately distributed to the Grantee at the rate of 50% of the Restricted Units on the third
anniversary of the Grant Date and 33 1/3% of the remaining 50% of the Restricted Units on each of the fourth, fifth, and sixth
anniversaries of the Grant Date.

 

5.        Termination
of Employment; Change of Control.

 

(a)       For
purposes of the grant hereunder, any transfer of employment by the Grantee within the Hexcel Group or any other change in employment
that does not constitute a “separation from service” within the meaning of Section 1.409A-1(h) of the Treasury Regulations
(or any successor provision), shall not be considered a termination of employment by the applicable member of the Hexcel Group.
Any change in employment that does constitute a “separation from service” within the meaning of Section 1.409A-1(h)
of the Treasury Regulations (or any successor provision) shall be considered a termination of employment.

 

(b)       If
the Grantee’s employment with a member of the Hexcel Group terminates due to death or Disability (as defined in the last
Section hereof), all Restricted Units shall immediately vest, be converted into RSU Shares and be distributed to the Grantee within
30 days of the date of such termination. Subject to Sections 5(d) and 5(e), if the Grantee’s employment with a member
of the Hexcel Group terminates due to involuntary separation other than for Cause (as defined in the last Section hereof), all
Restricted Units shall continue to vest (and be converted into an equivalent number of RSU Shares that will be distributed to the
Grantee) in accordance with Section 4 above. If, following Grantee’s involuntary separation other than for Cause, the Grantee
dies prior to the sixth anniversary of the Grant Date, then all Restricted Units shall immediately vest, be converted into RSU
Shares and be distributed to the Grantee’s personal representative within 30 days of the date of such death.

 

(c)       Subject
to Sections 5(d) and 5(e), if the Grantee’s employment with a member of the Hexcel Group terminates for any reason other
than due to death, Disability or involuntary separation other than for Cause, the Grantee shall forfeit all unvested Restricted
Units.

 

(d)       Notwithstanding
any other provision contained herein or in the Plan, in the event Grantee’s employment with a member of the Hexcel Group
is terminated without Cause or is

    	3

    	

    

terminated by the Grantee for Good Reason (as defined in the last
Section hereof) (i) during the period of a Potential Change in Control (as defined in the last Section hereof), (ii) before a Change
in Control at the request of a Person (as defined in the last Section hereof) who, directly or indirectly, takes any action designed
to cause a Change in Control (as defined in the last Section hereof), or (iii) upon or within two years following a Change
in Control, then all Restricted Units shall immediately vest. In the event of a termination under this subsection (d) that occurs
prior to a Change in Control, the vested Restricted Units shall be converted into RSU Shares and be distributed to the Grantee
within 30 days of the closing of the Change in Control. In the event of a termination under this subsection (d) that occurs on
or after a Change in Control, the vested Restricted Units shall be converted into RSU Shares and be distributed to the Grantee
within 30 days of the Grantee’s termination date, subject to Section 9(e) below.

 

(e)       Notwithstanding
any other provision contained herein or in the Plan, in the event this Agreement is terminated within twelve months of a complete
liquidation or dissolution of the Company that is taxed under Section 331 of the Internal Revenue Code (the “Code”),
and provided Grantee has been continuously employed with the Hexcel Group from the Grant Date through the date of such event or
has terminated employment prior to the date of such event due to involuntary separation other than for Cause, then all Restricted
Units shall immediately vest, be converted into RSU Shares and be distributed to the Grantee within 30 days of the date of such
event or (in the event of a complete liquidation or dissolution of the Company) as soon as administratively practicable thereafter.

 

6.        Issuance
of Shares. Any RSU Shares to be issued to the Grantee under this Agreement may be issued in either certificated form, or in
uncertificated form (via the Direct Registration System or otherwise).

 

7.        Taxes. Upon
the conversion into RSU Shares of some or all of the Restricted Units, absent a notification by the Grantee to the Company which
is received by the Company at least three business days prior to the date of such conversion to the effect that the Grantee will
pay to the Company or its Affiliate by check or wire transfer any income tax, social insurance, social security, payroll tax, national
insurance contributions, social contributions, other contributions, payment on account obligations or other amounts (“Withholding
Taxes”) the Company reasonably determines it or its Affiliate is required to withhold under applicable tax laws with respect
to the Restricted Units which are the subject of such conversion, the Company will reduce the number of RSU Shares to be distributed
to the Grantee in connection with such conversion by a number of RSU Shares the Fair Market Value on the date of such conversion
of which is equal to the total amount of Withholding Taxes; provided, however, that, even in the absence of such
notification from the Grantee, the Committee shall retain the discretion at all times to require the Grantee to pay to the Company
or its Affiliate by check or wire transfer the Withholding Taxes. In the event the Grantee elects to pay to the Company or its
Affiliate the Withholding Taxes with respect to the conversion of some or all of the Restricted Units by check or wire transfer,
the Company’s obligation to deliver RSU Shares shall be subject to the payment in available funds by the Grantee of all Withholding
Taxes with respect to the Restricted Units which are the subject of such conversion. The Company or its Affiliate shall, to the
extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Grantee any federal, state,
local or other taxes required to be withheld with respect to such payment.

 

8.        No
Guarantee of Employment. Nothing set forth herein or in the Plan shall confer upon the Grantee any right of continued
employment for any period by the Hexcel Group, or shall interfere in any way with the right of the Hexcel Group to terminate such
employment.

    	4

    	

    

9.        Section
409A

 

(a)       It
is intended that this Agreement comply in all respects with the requirements of Sections 409A of the Code and applicable Treasury
Regulations and other generally applicable guidance issued thereunder (collectively, the “Applicable Regulations”),
and this Agreement shall be interpreted for all purposes in accordance with this intent.

 

(b)       Notwithstanding
any term or provision of this Agreement (including any term or provision of the Plan incorporated in this Agreement by reference),
the parties hereto agree that, from time to time, the Company may, without prior notice to or consent of the Grantee, amend this
Agreement to the extent determined by the Company, in the exercise of its discretion in good faith, to be necessary or advisable
to prevent the inclusion in the Grantee’s gross income pursuant to the Applicable Regulations of any compensation intended
to be deferred hereunder. The Company shall notify the Grantee as soon as reasonably practicable of any such amendment affecting
the Grantee.

 

(c)       In
the event that the RSU Shares issuable or amounts payable under this Agreement are subject to any taxes, penalties or interest
under the Applicable Regulations, the Grantee shall be solely liable for the payment of any such taxes, penalties or interest.

 

(d)       Except
as otherwise specifically provided herein, the time for distribution of the RSU Shares as provided in Sections 4, 5(b) and 5(d)
shall not be accelerated or delayed for any reason, unless to the extent necessary to comply with or permitted under the Applicable
Regulations.

 

(e)       Notwithstanding
any term or provision of this Agreement to the contrary, if the Grantee is a specified employee (as defined in Section 409A(a)(2)(B)(i)
of the Code) as of the date of his or her termination of employment, then any RSU Shares issuable or amounts payable to the Grantee
under this Agreement on account of his or her termination of employment shall be issued or paid to the Grantee upon the later of
(i) the date such RSU Shares or amounts would otherwise be issuable or payable to the Grantee under this Agreement without regard
to this Section 9(e) and (ii) the date which is six months following the date of the Grantee’s termination of employment.
The preceding sentence shall not apply in the event Grantee’s termination of employment is due to his or her death. If the
Grantee should terminate employment for a reason other than his or her death but subsequently die during the six-month period described
in subclause (ii) of the first sentence above, such six-month period shall be deemed to end on the date of the Grantee’s
death.

 

10.       Notices. Any
notice required or permitted under this Agreement shall be deemed given when delivered personally, or when deposited in a United
States Post Office, postage prepaid, addressed, as appropriate, to the Grantee at the last address specified in Grantee’s
employment records, or such other address as the Grantee may designate in writing to the Company, Attention: Corporate Secretary,
or such other address as the Company may designate in writing to the Grantee.

 

11.       Failure
to Enforce Not a Waiver. The failure of either party hereto to enforce at any time any provision of this Agreement shall
in no way be construed to be a waiver of such provision or of any other provision hereof.

    	5

    	

    

12.       Governing
Law/Jurisdiction/Resolution of Disputes. This Agreement shall be governed by and construed according to the laws of the
State of Delaware, USA, without regard to the conflicts of laws provisions thereof. Any disputes arising under or in connection
with this Agreement shall be resolved by binding arbitration before three arbitrators constituting an Employment Dispute Tribunal,
to be held in the state of Connecticut, USA in accordance with the commercial rules and procedures of the American Arbitration
Association. Judgment upon the award rendered by the arbitrator shall be final and subject to appeal only to the extent permitted
by law. Each party shall bear such party’s own expenses incurred in connection with any arbitration. Anything to the
contrary notwithstanding, each party hereto has the right to proceed with a court action for injunctive relief or relief from violations
of law not within the jurisdiction of an arbitrator.

 

13.       Miscellaneous. This
Agreement cannot be changed or terminated orally. This Agreement and the Plan contain the entire agreement between the parties
relating to the subject matter hereof. This Agreement inures to the benefit of, and is binding upon, the Company and its successors-in-interest
and its assigns, and the Grantee, the Grantee’s heirs, executors, administrators and legal representatives. The section headings
herein are intended for reference only and shall not affect the interpretation hereof.

 

14.       Severability.
The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable,
in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

 

15.       Definitions. For
purposes of this Agreement:

 

(a)       “Affiliate”
of any Person shall mean any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled
by, or is under common Control with, such first Person. The term “Control” shall have the meaning specified in
Rule 12b-2 under the Exchange Act;

 

(b)       “Cause”
shall have the meaning set forth on Annex B;

 

(c)       “Change
in Control” shall have the meaning set forth on Annex B;

 

(d)       “Disability”
shall have the meaning set forth on Annex B;

 

(e)       “Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended;

 

(g)       “Good
Reason” shall have the meaning set forth on Annex B;

 

(h)       “Hexcel
Group” shall mean the Company and its Affiliates;

 

(i)       
“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d)
and 14(d) of the Exchange Act and shall include “persons acting as a group” within the meaning of Section 1.409A-3(i)(5)(v)(B)
of the Treasury Regulations (or any successor provision); and

 

(j)       “Potential
Change in Control” shall have the meaning set forth on Annex B.

    	6

    	

    

Annex A

 

NOTICE
OF GRANT

RESTRICTED STOCK UNIT AGREEMENT

HEXCEL CORPORATION 2013 INCENTIVE STOCK
PLAN

(as amended and approved in May 2019)

 

The following employee of
Hexcel Corporation, a Delaware corporation, or a Subsidiary, has been granted Restricted Stock Units in accordance with the terms
of this Notice of Grant and the Restricted Stock Unit Agreement to which this Notice of Grant is attached.

 

The terms below shall have
the meanings ascribed to them below when used in the Restricted Stock Unit Agreement.

 

	Grantee	Thierry Merlot
	Grant Date	October 24, 2019
	Aggregate Number of RSUs Granted	15,000

 

IN WITNESS WHEREOF,
the parties hereby agree to the terms of this Notice of Grant and the Restricted Stock Unit Agreement to which this Notice of Grant
is attached and execute this Notice of Grant and Restricted Stock Unit Agreement as of the Grant Date.

 

	/s/ Thierry Merlot	 	HEXCEL CORPORATION	 
	Grantee	 	 	 	 
	 	 	 	 	 
	 	 	By:	/s/ Gail E. Lehman       	 
	 	 	 	 	 
	 	 	Gail E. Lehman	 
	 	 	Executive Vice President	 

    	7

    	

    

Annex B

 

Definitions

	 	 	 
		1.	“Cause”
                                         shall mean:

 

(i)     the willful and continued failure by the Grantee
to substantially perform his duties or discharge his responsibilities to the Company, or to follow the reasonable requests of his
supervisor to undertake actions falling within the scope of such duties and responsibilities; or

 

(ii)     any
fraudulent or intentional misconduct by the Grantee that causes or might reasonably be expected to cause material reputational,
financial or other harm to the Company, or any improper or grossly negligent failure by the Grantee, including in a supervisory
capacity, to identify, escalate, monitor or manage, in a timely manner and as reasonably expected, risks that cause or might reasonably
be expected to cause material reputational, financial or other harm to the Company; or

 

(iii)     any conduct that violates the covenants set forth
in Section 3(c) hereof or restrictive covenants in any other written agreement between the Grantee and the Company, or violates
requirements of the Company embodied in its employee policies adopted from time to time including, but not limited to, policies
directed to ethical business conduct, insider trading, anti-corruption, harassment, and other policies proscribing or prohibiting
conduct as an employee of the Company; or

 

(iv)     the Grantee becomes subject to a suspension or
debarment proceeding, or related investigations, conducted in connection with any actual or suspected violations of any United
States Government procurement laws or regulations, or is for any other reason ineligible to participate in the discussion, negotiation
and entering into of contracts with respect to United States government procurement, or fails to obtain or maintain any professional
license reasonably required for the Grantee lawfully to perform her duties and responsibilities.

 

No act, or failure to act, on the Grantee’s
part shall be considered “willful” unless done, or omitted to be done, not in good faith and without reasonable belief
that the action or omission was in the best interest of the Company. The Grantee shall not be deemed to have been terminated for
Cause without delivery to the Grantee of a written notice of termination from the Chief Executive Officer specifying the grounds
for Cause.

 

		2.	“Change
                                         in Control” shall mean the first to occur of the following events:

 

(i) any person (as defined
in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as modified and used in
Sections 13(d) and 14(d) of the Exchange Act) (a “Person”) is or becomes the Beneficial Owner (within the meaning of
Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of more than 50% of either (A) the combined fair market
value of the then outstanding stock of the Company (the “Total Fair Market Value”) or (B) the combined voting power
of the then outstanding securities entitled to vote generally in the election of directors of the Company (the “Total Voting
Power”); excluding, however, the following: (I) any acquisition by the Company or any of its affiliates, (II) any

    	8

    	

    

 acquisition
by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its affiliates, (III) any Person
who becomes such a Beneficial Owner in connection with a transaction described in the exclusion within paragraph (4) below and
(IV) any acquisition of additional stock or securities by a Person who owns more than 50% of the Total Fair Market Value or Total
Voting Power of the Company immediately prior to such acquisition; or

 

(ii) any Person is
or becomes the Beneficial Owner, directly or indirectly, of securities of the Company that, together with any securities acquired
directly or indirectly by such Person within the immediately preceding twelve-consecutive month period, represent 40% or more
of the Total Voting Power of the Company; excluding, however, any acquisition described in sub-clauses (I) through (IV) of subsection
(1) above; or

 

(iii) a change in the composition
of the Board such that the individuals who, as of the original effective date of this Agreement, constitute the Board (such individuals
shall be hereinafter referred to as the “Incumbent Directors”) cease for any reason to constitute at least a majority
of the Board; provided, however, for purposes of this definition, that any individual who becomes a director subsequent to such
effective date, whose election, or nomination for election by the Company’s stockholders, was made or approved by a vote
of at least a majority of the Incumbent Directors (or directors whose election or nomination for election was previously so approved)
shall be considered an Incumbent Director; but, provided, further, that any such individual whose initial assumption of office
occurs as a result of either an actual or threatened election contest or other actual or threatened solicitation of proxies or
consents by or on behalf of a person or legal entity other than the Board shall not be considered an Incumbent Director; provided
finally, however, that, as of any time, any member of the Board who has been a director for at least twelve consecutive months
immediately prior to such time shall be considered an Incumbent Director for purposes of this definition, other than for the purpose
of the first proviso of this definition; or

 

(iv) there is consummated
a merger or consolidation of the Company or any direct or indirect subsidiary of the Company or a sale or other disposition of
all or substantially all of the assets of the Company (“Corporate Transaction”); excluding, however, such a Corporate
Transaction (A) pursuant to which all or substantially all of the individuals and entities who are the Beneficial Owners, respectively,
of the outstanding Common Stock of the Company and Total Voting Power immediately prior to such Corporate Transaction will Beneficially
Own, directly or indirectly, more than 50%, respectively, of the outstanding common stock and the combined voting power of the then
outstanding securities entitled to vote generally in the election of directors of the company resulting from such Corporate Transaction
(including, without limitation, a company which as a result of such transaction owns the Company or all or substantially all of
the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their
ownership immediately prior to such Corporate Transaction of the Outstanding Common Stock and Total Voting Power, as the case
may be, and (B) immediately following which the individuals who comprise the Board immediately prior thereto constitute at least
a majority of the board of directors of the company resulting from such Corporate Transaction (including, without limitation,
a company which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either
directly or through one or more subsidiaries); provided, however, that notwithstanding anything to the contrary in subsections
(1) through (4) above, an event which does not constitute a change in the ownership of the Company, a change in the effective
control of the Company, or a change in the ownership of a substantial portion of the assets of the Company, each as defined in
Section 1.409A-3(i)(5)

    	9

    	

    

 of the Treasury Regulations (or any successor provision), shall not be considered a Change in Control for
purposes of this Agreement.

 

		3.	“Disability”
                                         shall mean:

 

Disability
as determined under the Company’s then-existing long-term disability compensation programs.

 

		4.	“Good
                                         Reason” shall mean:

 

A termination by the Grantee after
a reduction of more than 10% in the Grantee’s annual Total Direct Compensation (“TDC”) as in effect on the date
hereof or as his TDC may be increased from time to time hereafter (except for across-the-board reductions in TDC affecting all
similarly situated officers of the Company which reductions shall not count toward the 10%). TDC means the sum of the Grantee’s
annual base salary, annual target award under MICP, and the grant date value of an annual equity award under the Company’s
Incentive Stock Plan, as may be amended hereafter (the determination of grant date value shall be conclusively determined by the
Compensation Committee for grants to the Grantee and all similarly situated officers of the Company). The Grantee shall be deemed
to have waived any assertion of Good Reason unless the Grantee shall have delivered a written notice of termination to the Company,
and specifying the reasons therefor, within 20 days after the effective date of such reduction. The Company shall have 10 days
from the receipt of such notice to rescind or reverse the effect of such reduction and, upon doing so, both the grounds for Good
Reason and the Grantee’s notice of termination automatically shall be deemed void with retroactive effect.

 

		5.	“Potential
                                         Change in Control” shall mean:

 

A Potential
Change in Control shall exist during the period commencing at the time the Company enters into any agreement or arrangement which,
if consummated, would result in a Change in Control and ending at the time such agreement or arrangement either (i) results in
a Change in Control or (ii) terminates, expires or otherwise becomes of no further force or effect.

    	10

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