Document:

Exhibit

EXHIBIT 10.11

GCP APPLIED TECHNOLOGIES INC. 
EXECUTIVE ANNUAL INCENTIVE COMPENSATION PLAN
GCP Applied Technologies Inc., a Delaware corporation (the “Company”), hereby establishes and adopts the following Executive Annual Incentive Compensation Plan (the “Plan”) to provide incentive awards, including incentive awards that are intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code (as defined below) and the regulations and rulings promulgated thereunder.
1.PURPOSE OF THE PLAN
The purpose of the Plan is to promote the attainment of the Company’s performance goals by providing incentive compensation for certain designated key executives of the Company and its Subsidiaries.
2.    DEFINITIONS
2.1.    “Award” shall mean any amount granted to a Participant under the Plan.
2.2.    “Board” shall mean the Board of Directors of the Company.
2.3.    “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, any successor thereto and the regulations promulgated thereunder.
2.4.    “Committee” shall mean the Compensation Committee of the Board.  For purposes of satisfying the requirements of Section 162(m) of the Code, the Committee is intended to consist solely of two or more “outside directors” as such term is defined in Section 162(m) of the Code.
2.5.    “Participant” shall have the meaning set forth in Section 3.1.
2.6.    “Performance Criteria” shall mean one or more of the following:  basic or diluted earnings per share of Company common stock; Adjusted Earnings Per Share (as defined below); Company common stock price earnings ratio; total stockholder return; relative total stock return measured against a set peer group; sales (including total sales, net sales and gross sales) of the Company or one (or more) of its operating activities; revenue, operating income, net income of the Company or one (or more) of its operating activities (in each case, either before or after taxes); Company earnings and/or net income before interest and taxes (EBIT); Adjusted EBIT (as defined below); Adjusted EBIT Return On Invested Capital (as defined below); Company earnings and/or net income before interest, taxes, depreciation and amortization (EBITDA); Adjusted EBITDA (as defined below); operating or other expense of the Company or one (or more) of its operating activities; gross, operating or cash flow margin of the Company or one (or more) of its operating activities; Segment Gross Margin (as defined below); return on investment (determined with reference to one or more categories of income or cash flow and one or more categories of assets, capital or equity, including return on net assets, return on sales, return on equity and return on invested capital); total cash flow, net cash flow, or free cash flow, each as 

    

EXHIBIT 10.11

provided by the Company or by one (or more) of its operating activities, investing activities, financing activities or any combination thereof; Adjusted Free Cash Flow (as defined below); economic profit; gross margins and costs; market or industry share; days on hand of inventory; days sales outstanding; days payables outstanding; working capital; or objectively determined measures for:  productivity increases, efficiency, new product releases, customer satisfaction, diversity, safety performance, or employee engagement, satisfaction or turnover.  For purposes of establishing any of the foregoing Performance Criteria, each of the following capitalized terms shall have the following meaning:
“Adjusted EBIT” shall mean net income adjusted for:  interest income and expense; income taxes restructuring and repositioning expenses and related asset impairments; pension costs other than service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits; specified income and expense items related to divested businesses, product lines, and specified other investments; and gains and losses on sales of businesses, product lines and specified other investments.
“Adjusted EBITDA” shall mean Adjusted EBIT adjusted for depreciation and amortization.
“Adjusted Earnings Per Share” shall mean diluted earnings per share of Company common stock adjusted for restructuring expenses and asset impairments, pension costs (other than service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits), specified income and expense items related to divested businesses, product lines, and specified other investments, gains and losses on sales of businesses, product lines and specified other investments, and certain discrete tax items.
“Adjusted EBIT Return On Invested Capital” shall mean Adjusted EBIT (on a trailing four quarters basis) divided by the sum of net working capital, properties and equipment and specified other assets and liabilities.
“Segment Gross Margin” shall mean gross margin adjusted for pension-related costs included in cost of goods sold.
“Adjusted Free Cash Flow” shall mean net cash provided by or used for operating activities minus capital expenditures, cash paid for restructuring and repositioning, accelerated payments under defined benefit pension arrangements, and expenditures for legacy items.
All items to be specified under the definitions listed above shall be so specified by the Committee at the same time the Performance Goals are established for a Performance Period.
2.7.    “Performance Goal” shall mean the level of performance established by the Committee as the performance standard for Performance Criteria.  Performance Goals may vary from Performance Period to Performance Period and from Participant to Participant and may be established on a stand-alone basis, in tandem or in the alternative.

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EXHIBIT 10.11

2.8.    “Performance Period” shall mean the Company’s fiscal year or a portion of such fiscal year that the Committee, in its sole discretion, may establish.
2.9.    “Subsidiary” shall mean a corporation, partnership, limited liability company or other form of business association of which shares of common stock or other ownership interests (i) having more than 50% of the voting power regularly entitled to vote for directors (or equivalent management rights) or (ii) regularly entitled to receive more than 50% of the dividends (or their equivalents) paid on the common stock (or other ownership interests), are owned, directly or indirectly, by the Company.  References to the “Company” herein shall be deemed to include references to Subsidiaries where appropriate.
3.    ELIGIBILITY AND ADMINISTRATION
3.1.    Eligibility.  The individuals eligible to participate in the Plan shall be the Company’s Chief Executive Officer and any other executive of the Company or a Subsidiary who is selected by the Committee to participate in the Plan (each, a “Participant”).
3.2.    Administration.
(a)    The Plan shall be administered by the Committee.  The Committee shall have full power and authority, subject to the provisions of the Plan and subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be adopted by the Board, to:
(i)    select the Participants to whom Awards may from time to time be granted hereunder;
(ii)    determine the terms and conditions, not inconsistent with the provisions of the Plan, of each Award; 
(iii)    determine the time when Awards will be granted and paid and the Performance Period to which they relate;
(iv)    determine the Performance Goals for Awards for each Participant in respect of each Performance Period based on the Performance Criteria and certify whether the Performance Goals and other material terms of the Award were met prior to the payment of an Award and the calculation of the amount of the Award, if any, payable to each Participant in respect of each Performance Period;
(v)    interpret and administer the Plan and any instrument or agreement entered into in connection with the Plan;
(vi)    correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent that the Committee shall deem desirable to carry it into effect;

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EXHIBIT 10.11

(vii)    establish such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and
(viii)    make any other determination and take any other action that the Committee deems necessary or desirable for administration of the Plan.
(b)    Decisions of the Committee shall be final, conclusive and binding on all persons or entities, including the Company, any Subsidiary, any Participant and any person claiming any benefit or right under an Award or under the Plan.
(c)    To the extent not inconsistent with applicable law or the rules and regulations of the New York Stock Exchange (or such other principal securities market on which the Company’s securities are listed or qualified for trading), including the applicable provisions of Section 162(m) of the Code, the Committee may delegate to one or more officers of the Company or a committee of officers the authority to take actions on its behalf pursuant to the Plan.
4.    AWARDS
4.1.    Performance Period; Participant Designation; Performance Goals; Notification.
(d)    Not later than the earlier of (i) 90 days after the commencement of each Performance Period or (ii) the expiration of 25% of the Performance Period, and while the outcome of the Performance Goals is substantially uncertain, the Committee shall, in writing, designate:
(A)    one or more Performance Periods,
(B)    the Participants for each Performance Period, and
(C)    the Performance Goals for determining the Award for each Participant for each Performance Period, based on attainment of specified levels of one or any combination of the Performance Criteria.
Notwithstanding the foregoing, within such time period, the Committee may also provide for an adjustment to reflect (or for the exclusion of) extraordinary items, acquisitions, divestitures, asset impairment, capital expenditures, unusual or non-recurring items, cost and expenses related to restructuring and/or repositioning cost and expenditures related to legacy environmental matters, material tax law changes and/or assessments and the cumulative effect of tax or accounting changes.
(e)    Notwithstanding any other provision of this Plan, no exclusion or adjustment to a Performance Goal shall be made if the effect of such exclusion or adjustment would be to cause the Award to fail to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, if the Award was intended to so qualify.

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EXHIBIT 10.11

(f)    Designation of any individual as a Participant for any Performance Period shall not require designation of such individual as a Participant in any other Performance Period, and designation of one individual as a Participant shall not require designation of any other individual as a Participant for such Performance Period or for any other Performance Period.
(g)    If a person becomes eligible to participate in the Plan after the Committee has made its initial designation of Participants for a Performance Period, such individual may become a Participant if so designated by the Committee; provided that the Award applicable to such individual shall be adjusted to the extent necessary to meet the “performance-based compensation” exception under Section 162(m) of the Code to the extent intended to so qualify.
(h)    The Performance Goals designated by the Committee may be expressed with respect to the Company’s performance or the performance of one or more Subsidiaries, divisions, business segments or business units of the Company, and may be expressed in terms of dollars, rates of growth, absolute levels or percentages or ratios expressing relationships between two or more of the Performance Criteria, period-to-period changes, relative to business plans or budgets, or relative to one or more other companies or one or more indices.  Performance Goals may be calculated for a year or a portion of a year.  Such Performance Goals shall otherwise comply with the requirements of the “performance-based compensation” exception under Section 162(m) of the Code for Awards intended to so qualify.
(i)    As soon as practicable after they have approved the items set forth in Section 4.1(a) above, the Committee will:
(i)    notify each individual who has been selected to participate in the Plan that he or she is a Participant for such Performance Period; and
(ii)    communicate in writing to each Participant the applicable Performance Criteria and Performance Goals for determining Awards for such Performance Period.
4.2.    Certification.  At such time as it shall determine appropriate following the conclusion of each Performance Period and prior to payment of any Award, the Committee shall certify, in writing, whether the Performance Goals and other material terms of the Award were met and the amount, if any, of the Award for each Participant for such Performance Period.
4.3.    Payment of Awards.
(a)    The amount of the Award actually paid to a Participant may, in the sole discretion of the Committee, be less than the amount otherwise payable to the Participant based on attainment of the Performance Goals for the Performance Period as determined in accordance with Section 4.1.  The Committee may not waive the achievement of the applicable Performance Goals for any award intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, except in the case of the death or disability of the Participant or as described in Section 4.6 in the event of a “Change in Control of the Company” (as defined therein).  The Committee may establish factors to take into consideration 

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in implementing its discretion to reduce the amount of an Award, including, but not limited to, individual performance and/or one or more of the Performance Criteria.  In no event may the Committee increase the amount of the Award otherwise payable to the Participant based on attainment of the Performance Goals for the Performance Period.
(b)    The actual amount of the Award determined by the Committee for a Performance Period shall be paid in cash.  Payment to each Participant shall be made no later than the fifteenth day of the third month following the end of the fiscal year of the Company in which the applicable Performance Period ends, unless payment is deferred pursuant to a plan or arrangement satisfying the requirements of Section 409A of the Code (“Section 409A”).
4.4.    Changes in Employment.
(a)    If (i) a person becomes a Participant during a Performance Period as specified in Section 4.1, or (ii) a Participant (A) dies, retires (within the meaning of a Company retirement plan) or becomes disabled or (B) is terminated by the Company due to a reduction in force, job elimination, divestment of the Participant’s employing unit or other termination not for “cause” (as determined by the Committee), in each case, prior to the end of a Performance Period (provided the Participant has more than three months of service during such Performance Period), then the Participant may be deemed to have participated for the entire Performance Period and the Award, payable to such a Participant may be proportionately reduced based on the period of actual employment during the applicable Performance Period.  Notwithstanding the forgoing, as specified in Section 4.3(a), the Committee may waive the achievement of the Performance Goals for a Performance Period for purposes of payment of an Award, in the case of death or disability of the Participant, or in the case of a “Change in Control of the Company,” but only in such cases.
(b)    Except as otherwise specifically provided in this Section 4.4, if the Participant’s employment with the Company is terminated prior to the end of a Performance Period for any other reason, the Participant will not be entitled to any Award for such Performance Period unless otherwise determined by the Committee or unless otherwise required by law and in no event unless the Performance Goals and other material terms of the Award are certified in writing by the Committee as having been met.
(c)    Notwithstanding the foregoing provisions of this Section 4.4, the Committee may provide that a Participant shall not be paid an Award for a specific Performance Period, even if the Participant is employed at the end of that Performance Period, if the Participant separates from service before the date payments of Awards are made to other Participants for that Performance Period.
4.5.    Transfers and Changes in Responsibilities.  If a Participant’s responsibilities materially diminish to a level, or the Participant is transferred during a Performance Period to a position, that is not deemed by the Committee as eligible to participate in the Plan, the Company may, as determined by the Committee, terminate the Participant’s participation in this Plan.  In the event of such termination, the Participant would be eligible for a prorated Award based on the number of months in such Performance Period prior to such termination.  Such Award would be 

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paid only after the end of such Performance Period and only if the Performance Goals and other material terms of the Award are certified in writing by the Committee as having been met.
4.6.    Change in Control.
(a)    In connection with any “Change in Control of the Company” (within the meaning of the “Executive CIC Agreement” as defined below), which occurs during a Performance Period, the Committee will take all such actions hereunder as it may determine to be necessary or appropriate in connection with Awards for such Performance Period to treat Participants equitably, including, without limitation, the modification or waiver of applicable Performance Goals, Performance Criteria, Performance Periods, or Awards, notwithstanding the terms of any initial award.
(b)    “Executive CIC Agreement” shall mean the executive severance agreement between each of the elected officers of the Company, as amended from time to time, which generally provides post-employment payments and benefits to these officers upon a change in control of the Company.
4.7.    Maximum Award.  The maximum value of Award payable under the Plan granted to any Participant for any Performance Period is $3,000,000, adjusted pro rata for a Performance Period shorter than 12 months.
5.    MISCELLANEOUS
5.1.    Amendment and Termination of the Plan.  The Board or the Committee may, from time to time, alter, amend, suspend or terminate the Plan as it shall deem advisable, subject to any requirement for stockholder approval imposed by applicable law, including Section 162(m) of the Code, or by the New York Stock Exchange (or such other principal securities market on which the Company’s securities are listed or qualified for trading).  No amendments to, or termination of, the Plan shall in any way impair the rights of a Participant under any Award previously granted without such Participant’s consent.
5.2.    Section 162(m) of the Code.  To the extent an Award is intended to constitute “performance-based compensation” thereunder, the provisions of this Plan shall be administered and interpreted in accordance with Section 162(m) of the Code.
5.3.    Tax Withholding.  The Company or any Subsidiary shall have the right to make all payments or distributions pursuant to the Plan to a Participant, net of any applicable federal, state and local taxes required to be paid or withheld.  The Company or a Subsidiary shall have the right to withhold from wages, Awards or other amounts otherwise payable to such Participant any such taxes as may be required by law, or to otherwise require the Participant to pay or provide for the payment of any such taxes in a manner satisfactory to the Company or such Subsidiary.  If the Participant shall fail to make such tax payments as are required, the Company or a Subsidiary shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to such Participant or to take such other action as may be necessary to satisfy such tax obligations.

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EXHIBIT 10.11

5.4.    Right of Discharge Reserved; Claims to Awards.  Nothing in this Plan shall provide any Participant a right to receive any Award or payment under the Plan with respect to a Performance Period.  Nothing in the Plan nor the grant of an Award hereunder shall confer upon any Participant the right to continue in the employment of the Company or a Subsidiary or affect any right that the Company or a Subsidiary may have to terminate the employment of (or to demote or to exclude from future Awards under the Plan) any such Participant at any time for any reason.  Except as specifically provided herein or in any agreement or other instrument entered or adopted into in connection with this Plan, the Company shall not be liable for the loss of existing or potential profit from any Award granted in the event of the termination of employment of any Participant.
5.5.    Other Plans.  Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases.
5.6.    Severability.  If any provision of the Plan shall be held unlawful or otherwise invalid or unenforceable in whole or in part by a court of competent jurisdiction, such provision shall (a) be deemed limited to the extent that such court of competent jurisdiction deems it lawful, valid and/or enforceable and as so limited shall remain in full force and effect, and (b) not affect any other provision of the Plan or part thereof, each of which shall remain in full force and effect.  If the making of any payment or the provision of any other benefit required under the Plan shall be held unlawful or otherwise invalid or unenforceable by a court of competent jurisdiction, such unlawfulness, invalidity or unenforceability shall not prevent any other payment or benefit from being made or provided under the Plan, and if the making of any payment in full or the provision of any other benefit required under the Plan in full would be unlawful or otherwise invalid or unenforceable, then such unlawfulness, invalidity or unenforceability shall not prevent such payment or benefit from being made or provided in part, to the extent that it would not be unlawful, invalid or unenforceable, and the maximum payment or benefit that would not be unlawful, invalid or unenforceable shall be made or provided under the Plan.
5.7.    Clawback.  All awards shall be subject to recovery by the Company in such circumstances as may be prescribed by the Committee at any time or from time to time, if the Committee deems such recovery to be necessary to ensure compliance with any rules, regulations or listing standards adopted by the Securities and Exchange Commission or the New York Stock Exchange to implement Section 10D of the Securities and Exchange Act, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
5.8.    Section 409A.  The Company intends that the Plan and each Award granted hereunder shall comply with, or be exempt from, Section 409A and that the Plan shall be interpreted, operated and administered accordingly.  If any provision of the Plan contravenes any regulations or guidance promulgated under Section 409A, or would cause any Award to be subject to taxes, interest or penalties under Section 409A, the Company may, in its sole discretion, modify the Plan to (a) comply with, or avoid being subject to, Section 409A, (b) avoid 

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the imposition of taxes, interest and penalties under Section 409A, and/or (c) maintain, to the maximum extent practicable, the original intent of the applicable provision without violating the provisions of Section 409A.  The Company is not obligated to modify the Plan and there is no guarantee that any payments will be exempt from taxes, interest and penalties under Section 409A.  Notwithstanding anything herein to the contrary, in no event shall the Company be liable for the payment of, or gross up in connection with, any taxes, interest and or penalties owed by the Participant pursuant to Section 409A.
5.9.    Unfunded Status of the Plan.  The Plan is intended to constitute an “unfunded” plan for incentive compensation.  With respect to any payments not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company.
5.10.    Governing Law.  The Plan and all determinations made and actions taken thereunder, to the extent not otherwise governed by the Code or the laws of the United States, shall be governed by the laws of the State of Delaware without reference to principles of conflict of laws that might result in the application of the laws of another jurisdiction, and shall be construed accordingly.
5.11.    Effective Date of Plan.  The Plan shall be effective as of January 1, 2016.

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EXHIBIT 10.17

GCP APPLIED TECHNOLOGIES INC. 
RESTRICTED STOCK UNIT AWARD AGREEMENT
THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”), dated as of the Grant Date as set forth on the Restricted Stock Unit Award Grant Certificate pursuant to which this Agreement is attached, is entered into by and between GCP Applied Technologies Inc., a Delaware corporation (the “Company”), and the employee of the Company identified on the Restricted Stock Unit Award Grant Certificate pursuant to which this Agreement is attached (the “Participant”).  All capitalized terms used herein shall have the same meaning as in the GCP Applied Technologies Inc. 2016 Stock Incentive Plan (the “Plan”), except as otherwise expressly provided herein.
WHEREAS, the Plan provides for grants of Stock Awards, including restricted stock units, each of which constitutes a right to receive one share of Common Stock (“RSUs”); and
WHEREAS, the Committee has decided to make a grant to the Participant of the number of RSUs set forth on the Restricted Stock Unit Award Grant Certificate pursuant to which this Agreement is attached, to promote the best interests of the Company and its stockholders, on the terms and conditions set forth in this Agreement, conditioned on the Participant’s execution of this Agreement.
NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants, and agreements contained herein, the parties hereto agree as follows:
		
	1.
	Restricted Stock Unit Grant.  The Company hereby grants to the Participant the number of RSUs set forth on the Restricted Stock Unit Award Grant Certificate pursuant to which this Agreement is attached, subject to the terms and conditions of this Agreement and the Plan, in addition to such other restrictions, if any, as may be imposed by law.

		
	2.
	Vesting and Forfeiture.

		
	(a)
	Service Vesting.  Except as otherwise set forth in this Agreement, the RSUs shall vest in three (3) equal installments on each of the first three anniversaries of the Grant Date (each, a “Vesting Date”), in each case, subject to the Participant’s continued employment with the Company and its affiliates through the applicable Vesting Date.

		
	(b)
	Termination of Employment.  If the Participant incurs a termination of employment, any then outstanding and unvested RSUs shall be automatically and immediately forfeited for no consideration.

		
	(c)
	Change in Control.  Upon the occurrence of a Change in Control, all then-outstanding and unvested RSUs shall vest in full immediately prior to the consummation thereof, except, to the extent that another Stock Award which satisfies the requirements of this Section 2(c) (any award meeting such requirements, a “Replacement Award”) is provided to the Participant pursuant to 

Section 9 of the Plan to replace such Award (any award intended to be replaced by a Replacement Award, a “Replaced Award”).  The requirements of a Replacement Award are as follows: the Replacement Award (i) is of the same type as the Replaced Award and relates to publicly traded equity securities of the Company or the entity surviving the Company following the Change in Control; (ii) has a value equal to the value of the Replaced Award as of the date of the Change in Control, as determined by the Committee in its sole discretion consistent with Section 9 of the Plan; and (iii) contains terms relating to vesting that are substantially identical to those of the Replaced Award, and its other terms and conditions are not less favorable to the Participant than the terms and conditions of the Replaced Award (including the provisions that would apply in the event of a subsequent Change in Control) as of the date of the Change in Control.  Without limiting the generality of the foregoing, a Replacement Award may take the form of a continuation of the applicable Replaced Award if the requirements of the preceding sentence are satisfied.  If a Replacement Award is granted, the Replaced Award shall not vest upon the Change in Control.  The determination whether the conditions of this Section 2(c) are satisfied shall be made by the Committee, as constituted immediately before the Change in Control, in its sole discretion.
		
	3.
	Nontransferability.  The RSUs shall not be sold, transferred, pledged, assigned, or otherwise encumbered or disposed of, except as may permitted under the Plan.

		
	4.
	Settlement.  Subject to the provisions of Section 2(c) and Section 6, the Company shall issue one share of Common Stock to the Participant for each RSU that becomes vested hereunder within thirty (30) calendar days following the applicable vesting date set forth in Section 2.

		
	5.
	No Voting Rights; Dividend Equivalents.  Until such time as the RSUs have been settled pursuant to Section 4 and the underlying shares of Common Stock have been delivered to the Participant, and the Participant has become the holder of such shares, the Participant shall have no rights as a stockholder, including, without limitation, any right to dividends or other distributions or any right to vote.  Notwithstanding the foregoing, each RSU shall entitle the Participant to dividend equivalents pursuant to Section 5(b) of the Plan with respect to ordinary cash dividends that would otherwise be paid on the shares of Common Stock underlying such RSU during the period from the Grant Date to the date such share are delivered in accordance with Section 4.  Any such dividend equivalents shall be subject to the same vesting conditions applicable to the underlying RSU with respect to which they accrue, and shall, if the underlying RSU vests, be paid no later than thirty (30) calendar days following the applicable vesting date set forth in Section 2.

		
	6.
	Certain Tax Matters.  The Participant expressly acknowledges that the award or vesting of the shares of Common Stock acquired hereunder, and the payment of dividends with respect to the RSUs, may give rise to “wages” subject to income and other tax withholding.  Unless otherwise determined by the Committee prior to any vesting date, the Company, agrees that (a) the minimum tax withholding required by law in respect of 

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any such wages may be satisfied by the Participant surrendering to the Company a portion of the shares of Common Stock that are issued or transferred to the Participant upon the settlement of the RSUs, and (b) the shares of Common Stock so surrendered by the Participant shall be credited against any such withholding obligation at the Fair Market Value of such shares of Common Stock on the date of such surrender (and the amount equal to the Fair Market Value of such shares of Common Stock shall be remitted to the appropriate tax authorities) (the foregoing process pursuant to which such withholding tax obligations may be satisfied, a “Net Settlement”).  If the Committee determines not to permit the Net Settlement, the Participant expressly acknowledges and agrees that the Participant shall be solely responsible for the timely satisfaction, in cash, of such withholding tax obligations, and that the Company shall be under no obligation to deliver any shares of Common Stock otherwise due hereunder if the Participant does not timely satisfy such tax obligations.
		
	7.
	Plan Governs.  The RSUs are granted pursuant to the terms of the Plan, which are incorporated herein by reference (the terms of which shall have the same effect as if set forth herein in full, including without limitation the terms of Section 9 of the Plan), and the RSUs shall, except as otherwise expressly provided herein, be governed by the terms of the Plan.  In the event of a conflict between the provisions of this Agreement and the terms of the Plan, the terms of the Plan shall control.  The Participant hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all the terms and provisions thereof.  Each of the Participant and the Company acknowledges that this Agreement (together with the Plan) constitutes the entire agreement and supersedes all other agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof.

		
	8.
	Nature of Grant.  In accepting the RSUs, the Participant acknowledges, understands and agrees that: 

		
	(a)
	the Plan is established voluntarily by the Company, it is discretionary in nature, and may be amended, suspended or terminated by the Company at any time; 

		
	(b)
	the grant of the RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of RSUs, or benefits in lieu of RSUs, even if RSUs have been granted repeatedly in the past;

		
	(c)
	all decisions with respect to future RSU grants, if any, will be at the sole discretion of the Company;

		
	(d)
	the Participant is voluntarily participating in the Plan; 

		
	(e)
	the grant of the RSUs and the Participant’s participation in the Plan shall not create a right to employment or service or be interpreted as forming an employment or service contract with the Company or any Subsidiary and shall not interfere with the ability of the Company or any Subsidiary, as applicable, to terminate the Participant’s employment or service relationship (if any);

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	(f)
	the RSUs and any shares of Common Stock subject to the RSUs are not intended to replace any pension rights or compensation;

		
	(g)
	the RSUs and any shares of Common Stock subject to the RSUs, and the income and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, holiday pay, pension or retirement or welfare benefits or similar mandatory payments; 

		
	(h)
	the future value of the shares of Common Stock subject to the RSUs is unknown and cannot be predicted with certainty; 

		
	(i)
	if the Participant acquires shares of Common Stock upon settlement of the RSUs, the value of such Common Stock may increase or decrease;

		
	(j)
	no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs resulting from the Participant’s termination of employment by the Company or any Subsidiary (for any reason whatsoever and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or providing services or the terms of the Participant’s employment agreement or service contract, if any) and in consideration of the grant of the RSUs to which the Participant is otherwise not entitled, the Participant irrevocably agrees never to institute any claim against the Company or any Subsidiary, waives his or her ability, if any, to bring any such claim, and releases the Company and any Subsidiary from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, the Participant shall be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claims; 

		
	(k)
	in the event of the Participant’s termination of employment (whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or providing services or the terms of the Participant’s employment agreement or service contract, if any), unless otherwise provided by this Agreement or determined by the Company the Participant’s right to vest in the RSUs, if any, will terminate effective as of the date that the Participant is no longer actively providing services and will not be extended by any notice period (e.g., active service would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where the Participant is employed or providing services or the terms of the Participant’s employment agreement or service contract, if any); the Committee shall have the exclusive discretion to determine when the Participant is no longer actively providing services for purposes of the RSUs; and

		
	(l)
	neither the Company nor any Subsidiary will be liable for any foreign exchange rate fluctuation between the Participant’s local currency and the United States 

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Dollar that may affect the value of the RSUs or any amounts due to the Participant pursuant to the settlement of the RSUs or the subsequent sale of any shares of Common Stock acquired under the Plan.
		
	9.
	Insider Trading Restrictions/Market Abuse Laws.  The Participant acknowledges that he or she is subject to any applicable Company insider trading policy.  In addition, depending on his or her country of residence, the Participant may be subject to additional insider trading restrictions and/or market abuse laws, which may affect his or her ability to acquire or sell shares of Common Stock or rights to shares of Common Stock (e.g., Options) under the Plan during such times as the Participant is considered to have “inside information” regarding the Company (as defined by the laws in the Participant's country).  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy.  The Participant acknowledges that it is the Participant’s responsibility to comply with any applicable Company insider trading policy and any additional restrictions that may apply due to local insider trading restrictions or market abuse laws.  The Participant is advised to speak to his or her personal legal advisor regarding any applicable local insider trading restrictions or market abuse laws.

		
	10.
	Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the Plan or this Agreement, if the Participant is subject to Section 16 of the Exchange Act, the Plan, the RSU and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule.  To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

		
	11.
	Data Privacy.  The Participant hereby voluntarily consents to the collection, use and transfer, in electronic or other form, of the Participant’s personal data as described in this Agreement and any other RSU grant materials by and among, as applicable, the Company and its Subsidiaries for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan.  The Participant understands that the Company and any Subsidiary may hold certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all RSUs or any other entitlement to shares of stock awarded, canceled, vested, unvested or outstanding in the Participant’s favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).  The Participant understands that Data will be transferred to E*TRADE Corporate Financial Services, Inc. and or its affiliates or such other stock plan service provider as may be selected by the Company in the future (the “Plan Service Provider”), which is assisting the Company with the implementation, administration and management of the Plan.  The Participant understands that the recipients of Data may be located in the United States or elsewhere, 

5

and that the recipient’s country may have different data privacy laws and protections than the Participant’s country.  The Participant authorizes the Company, the Plan Service Provider and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer Data, in electronic or other form, for the purpose of implementing, administering and managing his or her participation in the Plan including any requisite transfer of such Data as may be required to a broker or other third party until which the Participant may elect to deposit any shares of Common Stock received upon settlement of the RSUs.  The Participant understands that he or she may request a list with the names and addresses of any potential recipients of Data by contacting the Participant’s regional human resources (“MyHR”) representative.  The Participant understands that Data will be held only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan.  The Participant understands that he or she may, at any time, request access to Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her MyHR representative.  Further, the Participant understands that the Participant is providing the consents herein on a purely voluntary basis.  If the Participant does not consent, or if the Participant later seeks to revoke his or her consent, the Participant’s employment status or service with the Company and any Subsidiary will not be adversely affected; the only consequence of refusing or withdrawing consent is that the Company would not be able to grant RSUs or other equity awards to the Participant or administer or maintain such awards.  Therefore, the Participant understands that refusing or withdrawing his or her consent may affect the Participant’s ability to participate in the Plan.  For more information on the consequences of the Participant’s refusal to consent or withdrawal of consent, the Participant understands that he or she may contact his or her MyHR representative.
		
	12.
	Successors and Assignment.  This Agreement (and the RSUs granted hereunder) is personal to the Participant and, without the prior written consent of the Company, shall not be assignable by the Participant other than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by the Participant’s legal representatives.  This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

		
	13.
	Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

		
	14.
	No Waiver.  The Participant’s or the Company’s failure to insist upon strict compliance with any provision of, or to assert any right under, this Agreement shall not be deemed to be a waiver of such provision or right or of any other provision of or right under this Agreement.

		
	15.
	Section 409A of the Code.  It is intended that the RSUs granted pursuant to this Agreement and the provisions of this Agreement be exempt from or comply with Section 409A of the Code, and all provisions of this Agreement shall be construed and 

6

interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code.
		
	16.
	Unfunded Plan.  The RSUs are unfunded and the Participant shall be considered an unsecured creditor of the Company with respect to the Company’s obligations, if any, to issue shares of Common Stock pursuant to this Agreement (including, without limitation, as to any RSUs that vest).  Nothing contained in this Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between the Participant and the Company or any other person.

		
	17.
	Governing Law; Captions.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law thereof.  The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

		
	18.
	Electronic Delivery and Participation.  The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

		
	19.
	Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  The parties hereto confirm that any facsimile copy of another party’s executed counterpart of this Agreement (or its signature page thereof) shall be deemed to be an executed original thereof.

*    *    *    *    *    *
Accepted and agreed by the Participant as of the date acknowledged through E*Trade.

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