Document:

FOURTH AMENDMENT

TO

PATRIOT TRANSPORTATION HOLDING, INC.

2014 EQUITY INCENTIVE PLAN

 

WHEREAS, Patriot Transportation
Holding, Inc. (the “Company”) maintains the Patriot Transportation Holding, Inc. 2014 Equity Incentive Plan (the “Plan”);
and

 

WHEREAS, the Company issued
an extraordinary dividend to its shareholders of $3.75 per share, which was paid on November 15, 2021 to shareholders of record as of
the close of business on November 8, 2021(the “Dividend”); and

 

WHEREAS, Section 11 of
the Plan provides that the Board of Directors of the Company (the “Board”) will adjust Awards granted under the Plan
and the maximum number of shares of Common Stock subject to the Plan set forth in Section 4 of the Plan in the event of any extraordinary
dividend, stock split, extraordinary corporate transaction or other relevant change in capitalization to the extent necessary to preserve
the economic intent of such Awards; and

 

WHEREAS, in connection
with the Dividend, the Board made adjustments to certain Awards made under the Plan, as required under Section 11;

 

WHEREAS, in connection
with the foregoing, the Board desires to amend Section 4 of the Plan to authorize an additional 371,097 shares of Common Stock to be available
for the grant of Awards under the Plan;

 

NOW, THEREFORE, the Plan
is hereby amended effective as of December 2, 2021 (the “Effective Date”), as follows:

 

		1.	Section 4.1 of the Plan is hereby replaced in its entirety by the following:

 

		4.1	Subject to adjustment in accordance with Section 11, a total of 1,312,048 shares
of Common Stock shall be available for the grant of Awards under the Plan; provided that, no more than 50,000 shares of Common
Stock may be granted as Incentive Stock Options. During the terms of the Awards, the Company shall keep available at all times the number
of shares of Common Stock required to satisfy such Awards.

 

 

		2.	Except as specifically amended herein, the terms of the Plan shall continue
in full force and effect.

 

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IN WITNESS WHEREOF, the
Company has caused this Fourth Amendment to be executed by a duly authorized officer, effective as of the Effective Date.

 

 

PATRIOT TRANSPORTATION HOLDING, INC.

By: /s/ Robert E. Sandlin

Robert E. Sandlin

President & Chief Executive Officera10212-executiveomnibusp

 1  " = "1" "Tor#: 10357618.2" "" Tor#: 10357618.2  ITC HOLDINGS CORP.    EXECUTIVE OMNIBUS PLAN  Effective as of February 4, 2020  Amended as of November 11, 2021      PREAMBLE AND DEFINITIONS   Title  The plan herein, as amended or restated from time to time, shall be called the  “Executive Omnibus Plan” and is referred to herein as the “Plan”.   Purpose of the Plan  The purpose of the Plan is to (i) promote a greater alignment of interests between  Participants and Fortis, (ii) foster the growth and success of the business of the Company and  Fortis in accordance with the vision of both the Company and Fortis, (iii) ensure that Participants  are focused on both the Company’s and Fortis’ business objectives, and (iv) assist in the attraction,  retention and motivation of Participants.   Defined Terms  In the Plan, the following terms have the respective meanings set out below and  grammatical variations of such terms shall have corresponding meanings:  “Affiliate” means an entity that directly, or indirectly through one or more intermediaries,  controls or is controlled by, or is under common control with, the Person specified.  “Agreement” means the written document that sets forth the terms of a Participant’s  Award. With respect to Incentive Awards, the written document need not be signed by the  Company or the Participant.   “Applicable Law” means any applicable provision of law, domestic or foreign, including  the Code, as the same may be amended, supplemented or replaced from time to time,  together with all regulations, rules, policy statements, rulings, notices, orders or other  instruments promulgated thereunder and any applicable rules or policies of any stock  exchange.  “Award” means any form of Unit or Incentive Award granted under the Plan.  “Board” means the Board of Directors of the Company.  “Business Day” means any day, other than a Saturday, Sunday or statutory or civic  holiday in the State of Michigan.  

 

2  “Cause” means (a) if the Employee is a party to a written employment agreement with the  Company or a Subsidiary, “Cause” as defined in such agreement, as in effect from time to  time, and (b) in all other cases, (i) Participant’s continued failure substantially to perform  Participant’s duties to the Company or its Affiliates (other than as a result of total or partial  incapacity due to physical or mental illness) for a period of 10 days following written notice  by the Company to Participant of such failure, (ii) dishonesty in the performance of  Participant’s duties hereunder, (iii) Participant’s conviction of, or plea of nolo contendere  to a crime constituting (x) a felony under the laws of the United States or any state thereof,  or (y) a misdemeanor involving moral turpitude, (iv) Participant’s willful malfeasance or  willful misconduct in connection with Participant’s duties hereunder or any act or omission  which is injurious to the financial condition or business reputation of the Company or its  Affiliates, or (v) Participant’s breach of any non-compete or confidentiality obligations to  the Company or its Affiliates.  “Change of Control” means the occurrence of any one or more of the following events:   (a) the acquisition of ownership, directly or indirectly, beneficially or of record,  by any Person or combination of Persons acting jointly or in concert with  each other, of Voting Securities representing more than 50% of the  aggregate ordinary voting power represented by the issued and outstanding  Voting Securities;    (b) the sale or disposition in a single transaction or a series of related transactions  of more than 50% of the common shares of the Company to a Person not an  Affiliate of Fortis at the time of such sale or disposition and who does not  become an Affiliate of Fortis as a result of such transaction or series of  related transactions;  (c) the sale, lease, exchange or other disposition, in a single transaction or a  series of related transactions, of assets, rights or properties of (i) Fortis  and/or any of its subsidiaries which have an aggregate book value greater  than 50% of the book value of the assets, rights and properties of Fortis and  its subsidiaries on a consolidated basis or (ii) the Company which  constitute all or substantially all of the assets, rights or properties of the  Company, to any other Person or entity, other than a disposition to Fortis  or any wholly owned subsidiary of Fortis;  (d) a resolution is adopted by the Board or the Fortis Board to wind-up,  dissolve or liquidate the Company or Fortis;  (e) as a result of or in connection with: (i) a contested election of directors of  the Fortis Board; or (ii) a consolidation, merger, amalgamation,  arrangement or other reorganization or acquisition involving Fortis or any  of its Affiliates and another corporation or other entity, the nominees  named in the most recent management information circular of Fortis for  election to the Fortis Board shall not constitute a majority of the Fortis  Board; or  

 

3  (f) the Fortis Board or the Board adopts a resolution to the effect that a Change  of Control as defined herein has occurred or is imminent.   “Change of Control Redemption Date” means the Trading Day that is immediately prior  to the effective date of the consummation of the event(s) resulting in the Change of Control.  “Code” means the United States Internal Revenue Code of 1986, as amended.  “Committee” means the Company’s Governance and Human Resources Committee or  other committee of Directors designated by the Board from time to time to administer the  Plan and consisting of not less than three members of the Board.  “Common Shares” means the common shares of Fortis.  “Company” means ITC Holdings Corp., and any successor corporation whether by  amalgamation, merger or otherwise.  “Director” means a director of the Company who is not an Employee.  “Disability” means total and permanent disability, as defined in the Company’s long-term  disability benefits program, as in effect from time to time; provided, however, that for  purposes of a Code Section 409A distribution event, “disability” shall be defined under  Code Section 409A and the regulations thereunder.  “Employee” means an employee of the Company, Fortis, or any of their Affiliates.  “Fortis” means Fortis Inc. and any successor corporation whether by amalgamation,  merger or otherwise.  “Fortis Board” means the board of directors of Fortis.  “Good Reason” means the occurrence, after a Change of Control, of any of the following  events without the Participant's written consent:   (a) a reduction in the base salary of the Participant other than a general  reduction that affects all similarly situated executives in substantially the  same proportions;  (b) a reduction in the Participant’s target short term incentive or long term  incentive opportunity, other than a general reduction that affects all  similarly situated executives in substantially the same manner;  (c) any failure by the Company or a Subsidiary thereof, as applicable, to  comply with any material terms of the Participant's employment as in effect  immediately prior to such Change of Control, other than an inadvertent  failure not occurring in bad faith and which is remedied by the Company  or such Subsidiary promptly after receipt of written notice thereof given by  the Participant;   

 

4  (d) any material adverse change in the Participant’s duties, responsibilities,  authority, title, status or reporting structure as in effect immediately prior  to the Change of Control;  (e) the discontinuation or amendment of any equity incentive plan, short term  incentive plan, employee benefit plan or other material fringe benefit or  perquisite, if such discontinuation or amendment results in less favourable  treatment of the Participant, in the aggregate (unless minor or  insignificant), taking into consideration any related amendment or  replacement plan, benefit or perquisite, as applicable; or   (f) the Company a Subsidiary thereof, as applicable, requiring the Participant  to be based at any office or location other than (i) within 30 miles of the  Participant's office or location immediately prior to the Change of Control  or (ii) at any other office or location previously agreed to in writing by the  Participant;  “Grant Date” means January 1st of the year in which the Committee authorizes an Award,  or such later or earlier date as shall be designated by the Committee and set forth in the  Applicable Agreement.  “Incentive Award” means an Award granted pursuant to Section 4.2 of the Plan.  “Involuntary Termination Without Cause” means the termination of a Participant’s  Service other than due to the Participant’s death, Disability, Retirement, voluntary  resignation or for Cause.   “Involuntary Employment Action” as to a Participant means: (a) an Involuntary  Termination Without Cause, or (b) termination of Service by the Participant for Good  Reason;   “Involuntary Redemption Date” means the Trading Day that is immediately prior to the  effective date of an Involuntary Employment Action;  “Market Price” at any date in respect of the Common Shares means the volume weighted  average trading price of the Common Shares determined by dividing the aggregate total  value of the Common Shares traded on the TSX during the five Trading Days immediately  preceding such date by the aggregate total volume of the Common Shares traded on the  TSX during such five Trading Days (or, if such Common Shares are not then listed and  posted for trading on the TSX, on such stock exchange on which such Common Shares are  listed for trading as may be selected for such purpose by the Committee). In the event that  such Common Shares are not listed and posted for trading on any stock exchange, the  Market Price shall be the fair market value of such Common Shares as determined by the  Committee in its sole discretion acting in good faith.   “Participant” means any (i) Employee with a title of Vice President or higher to whom an  Award has been granted in accordance with the terms set out herein and (ii) any individual  to whom an Award has been granted upon the condition that such individual becomes an  

 

5  Employee with a title of Vice President or higher, provided that any such Award shall be  deemed granted and outstanding only on the date that the individual becomes an Employee  with a title of Vice President or higher.  “Payment Criteria”, in respect of any Performance-Based Unit or Incentive Award,  means the performance criteria set out in the Agreement in respect of such Unit or Award  that must be satisfied as a condition to payment.  “Payment Criteria Period”, in respect of any Performance-Based Unit or Incentive  Award, means the period during which performance is to be measured for purposes of  such Unit or Award.  “Payment Date” means, unless otherwise specified herein (a) with respect to  Performance-Based Units or Incentive Awards, the last day of the Payment Criteria  Period, and (b) with respect to Service-Based Units, the Vesting Date as determined in  accordance with the Participant’s Agreement.   “Payout Amount” means, with respect to each Award, the amount payable on the  Payment Date, determined in accordance with Section 4.3 or 5.1.  “Payout Percentage”, in respect of any Performance-Based Unit or Incentive Award,  means the percentage of the target amount of the Unit or Award determined by the  Committee to have been earned for purposes of the calculation of the Payout Amount in  accordance with Section 5.1.  “Peer Group” means the group of North American regulated public utilities determined  from time to time by the Fortis Board (or a committee thereof) in accordance with its  guidelines and used for purposes of executive compensation decisions by Fortis and its  Affiliates.   “Performance-Based Unit” means a Unit with respect to which the Payout Amount is  determined in accordance with Section 5.1(a).  “Person” includes any individual, corporation, partnership, firm, joint venture, syndicate,  association, trust, government, governmental agency and any other form of entity or  organization.  “Restatement” means a material restatement of financial results of the Company and its  consolidated subsidiaries.  “Restatement Period” means the financial periods of the Company covered by a  Restatement.  “Retirement” means the retirement of a Participant from Service with the Company or a  Subsidiary upon or after completing 10 years of Service after attaining the age of 45 if the  Participant has provided the Company with at least 90 days’ written notice of such  retirement.  

 

6  “Service” means the Participant’s period of service as an Employee with the Company,  Fortis, or any of their Affiliates.  “Service-Based Unit” means a Unit with respect to which the Payout Amount is  determined in accordance with Section 5.1(b).  “Separation from Service” means a termination of Service in such a manner as to  constitute a “separation from service” as defined under Code Section 409A.  “Specified Employee” means a “specified employee” as determined by the Company in  accordance with Code Section 409A.  “Subsidiary” means a corporation or other entity that would be deemed a subsidiary of  the Company pursuant to Code Section 424(f).   “Termination Date” has the meaning ascribed thereto in Section 6.1.  “Trading Day” means any date on which the TSX is open for the trading of the Common  Shares (or, if such Common Shares are not then listed and posted for trading on the TSX, on  such stock exchange on which such Common Shares are listed and posted for trading as may  be selected for such purpose by the Committee).   “TSX” means the Toronto Stock Exchange or any successor thereto.   “Unit” means a notional unit evidenced by an entry on the books of the Company or its agent,  which represents the right of a Participant, subject to the provisions herein, to receive an  amount equal to the Market Price of a Common Share on the applicable Payment Date. Units  granted under the Plan shall consist of Service-Based Units and/or Performance-Based Units.  “Unit Account” means the account maintained for a Participant on the books of the  Company or its agent into which Units will be credited in accordance with Article IV  hereof.  “Vest”, “Vested” or “Vesting” means the extent to which the payment conditions of an  Award granted hereunder have been satisfied in accordance with the Plan and the terms of  any respective Agreement pursuant to which such Award was granted or issued.   “Vesting Date” means the date on which a Service-Based Unit Vests in accordance with  the terms and conditions of the Plan and the related Agreement.  “Voting Securities” means the Common Shares and any other shares entitled to vote for the  election of directors of Fortis and shall include any security, whether or not issued by Fortis,  which are not shares entitled to vote for the election of directors of Fortis but are convertible  into or exchangeable for shares which are entitled to vote for the election of directors of  Fortis including any options or rights to purchase such shares or securities.    INTERPRETATION  

 

7   Governing Law  The Plan shall be interpreted and enforced in accordance with the laws of the State  of Michigan, without regard to the conflict of law principles thereof. The participation of a  Participant in the Plan shall be construed as acceptance of the terms and conditions of the Plan by  such Participant and as the Participant’s agreement to be bound thereby.   Severability   If any provision of the Plan is determined by a court of competent jurisdiction to  be invalid, illegal or unenforceable in any respect, all other provisions of this Plan shall  nevertheless remain in full force and effect so long as the economic or legal substance of the  transactions contemplated hereby is not affected in any manner materially adverse to any party  hereto.   References  The division of this Plan into articles and sections and the insertion of headings are  for convenience of reference only and shall not affect the construction or interpretation of this  Plan.  Words importing the singular number only shall include the plural and vice versa and words  importing the use of any gender shall include all genders. Use of the term “including” shall in  each case be construed to mean “including without limitation.”   Fractional Units   Fractional Units are permitted under the Plan.   Code Section 409A   (a) It is intended that each Award granted under this Plan shall be exempt from  or comply with the requirements of Code Section 409A. This Plan shall be construed,  administered, and governed in a manner that effects such intent, and the Committee shall not take  any action that would be inconsistent with such intent. Without limiting the foregoing, no Award  shall be deferred, accelerated, extended, paid out, settled, adjusted, substituted, exchanged or  modified in a manner that would cause the Award to fail to satisfy the conditions of an applicable  exemption from the requirements of Code Section 409A or otherwise would subject the Participant  to additional tax imposed under Code Section 409A. Although the Company will use good faith  efforts to avoid the imposition of taxation, interest and penalties under Code Section 409A, the tax  treatment of the benefits provided under this Plan is not warranted or guaranteed. Neither the  Company, its Subsidiaries nor their respective directors, officers, employees or advisers shall be  held liable for any taxes, interest, penalties or other monetary amounts owed by a Participant (or  any other individual claiming a benefit through the Participant) as a result of this Plan.  (b) To the extent required to comply with Code Section 409A, references in this  Plan to a termination or cessation of employment or like terms shall mean a Separation from  Service.  

 

8  (c) Notwithstanding anything in the Plan to the contrary, if at the time of a  Participant’s Separation from Service, the Participant is considered to be a Specified Employee, to  the extent any Award is subject to the requirements of Code Section 409A and is payable upon the  Participant’s Separation from Service, such payment shall not commence prior to the first Business  Day following the date which is six months after the Participant’s Separation from Service (or if  earlier than the end of the six month period, the date of the Participant’s death). For the avoidance  of doubt, the provisions of this Section 2.5(c) shall not apply to any payment that becomes due on  a Payment Date that occurs prior to the Participant’s Separation from Service, any payment that  becomes due as a result of the Participant’s death, or any payment with respect to an Award that  qualifies for an exception to the requirements of Code Section 409A.  (d) Notwithstanding the definition of “Good Reason” in Section 1.3 of the Plan,  a Participant shall not be considered to have terminated his or her employment for Good Reason  unless the termination qualifies for the safe harbor provided in Section 1.409A-1(n)(2)(ii) of the  Treasury Regulations.     ESTABLISHMENT OF THE PLAN   Establishment  The Company is establishing the Plan for Participants which shall be effective as  of January 1, 2020.   No Additional Rights  Nothing herein contained shall be deemed to give any Person the right to be  retained as an Employee or to otherwise be retained in the service of the Company or a Subsidiary.  Units are not Common Shares and will not entitle a Participant to any shareholder rights, including  voting rights, dividend entitlement or rights on liquidation, dissolution or winding-up of Fortis.    AWARDS   Grant of Units  (a) The Committee may at any time and from time to time grant Unit Awards  in accordance with the terms and conditions hereof to individuals eligible to be Participants. The  terms of a Participant’s Unit Award shall be set forth in the Participant’s Agreement.  In connection  with the grant of Units, the Committee shall establish a target award opportunity level for each  Participant (e.g., expressed as a percentage of the Participant’s base salary or otherwise as  determined by the Committee). The number of Units granted hereunder shall be determined by  multiplying (i) the amount of the target award opportunity level of a Participant as determined by  the Committee, expressed in U.S. dollars by (ii) the exchange rate as determined in accordance  with Section 9.2 and then dividing the product by (iii) the Market Price of the Common Shares on  the Grant Date.  

 

9  (b) Unless otherwise determined by the Committee in the applicable  Agreement, and subject to Sections 4.3, 6.1 and 6.2, the Vesting Date for Service-Based Units  shall be the third anniversary of the Grant Date. The Committee may, prior to the Vesting Date  designated at the time of grant, designate an earlier date for Vesting of all or any portion of Service- Based Units then outstanding and granted to a Participant under the Plan, in which event such  unvested Service-Based Units shall be deemed to be Vested Service-Based Units on such earlier  date.  (c) No certificates shall be issued with respect to Units. All Units granted  hereunder shall be reflected in the Unit Account of the Participant.  (d) Subject to the provisions of the Plan, a Unit shall be redeemed as of its  Payment Date.  (e) Each Participant’s Unit Account shall be credited with additional Units  equal to the “dividend equivalent” when a cash dividend is paid on Common Shares. Such  “dividend equivalent” shall be equal to a fraction where the numerator is the product of (a) the  number of Units in such Participant’s Unit Account on the date that dividends are paid, including  Units previously credited as “dividend equivalents,” multiplied by (b) the dividend paid per  Common Share, and the denominator of which is the Market Price of one Common Share  calculated on the date that dividends are paid. Any additional Units credited to a Participant’s Unit  Account as a “dividend equivalent” shall have a Payment Date or Vesting Date, as applicable,  which is the same as the Payment Date or Vesting Date, as applicable, for the Units in respect of  which such additional Units are credited.  Notwithstanding the foregoing, the Committee shall  have discretion to modify the terms and timing of payment relating to dividend equivalents or to  determine that any Unit Award is not entitled to dividend equivalents, in each case as set forth in  the applicable Agreement.   Grant of Incentive Awards  (a) The Committee, in its discretion, may grant cash-based Incentive Awards  to such Participants as it may designate from time to time. The terms of each Incentive Award  shall be set forth in an Agreement authorized by the Committee. Each Agreement shall specify  such terms and conditions as the Committee shall determine.   (b) The determination of Incentive Awards for a given year or years may be  based upon the attainment of specified levels of Company or Subsidiary performance as measured  by pre-established, objective Payment Criteria determined at the discretion of the Committee.   (c) The Committee shall (i) determine the Payment Criteria Period, (ii)  determine Payment Criteria and target levels, and (iii) determine the level of Incentive Award to  be paid to each selected Participant upon the achievement of Payment Criteria, each of which shall  be set forth in the related Agreement. The amount of an Incentive Award to be paid upon the  attainment of Payment Criteria shall equal a percentage of a Participant’s base salary for the fiscal  year, a fixed dollar amount, or such other formula, as determined by the Committee and set forth  in the related Agreement.  The Committee generally shall make the foregoing determinations while  the outcome of the Payment Criteria is uncertain.   

 

10  (d) Incentive Awards shall not be denominated in Units and shall only be paid  in cash.    Adjustments and Change of Control.   (a) In the event of any stock dividend, stock split, combination or exchange of  shares, merger, consolidation, spin-off or other distribution (other than normal cash dividends) of  Fortis’ assets to the shareholders, or any other change affecting the Common Shares, such  proportionate adjustments, if any, as the Committee in its sole discretion may deem appropriate to  reflect such change shall be made with respect to the number of Units outstanding under the Plan.  In the event Fortis or the Company is not the surviving entity in a merger, consolidation or  amalgamation with another entity or in the event of a liquidation, reorganization and in the absence  of any surviving entity’s assumption of outstanding awards made under the Plan, the Committee  may, subject to Section 4.3(b), provide for appropriate settlements of Units.  (b) the event of a Change of Control, the Committee may provide for  appropriate settlements of Units or Incentive Awards or for the successor or continuing entity to  either assume outstanding Units and Incentive Awards or substitute the Units and Incentive  Awards with new awards (such assumed or substituted Units and Incentive Awards, "Replacement  Awards") on terms determined by the Committee in its sole discretion to be substantially  equivalent to the terms of the Units and Incentive Awards, as applicable, held immediately prior  to such Change of Control ("Replaced Awards"); provided that any Replacement Awards must: (i)  have economic value substantially equivalent to the value of the Replaced Awards (determined at  the time of the Change of Control), (ii) except in the case of Incentive Awards, relate to publicly  traded equity securities, (iii) in the case of Participants who are U.S. taxpayers, comply with the  requirements of Section 409A, and (iv) contain other terms and conditions which are, in the  aggregate, no less favorable to the Participant than the Replaced Awards, but including terms and  conditions that provide that if there is an Involuntary Employment Action in respect of a  Participant within 24 months following the Change of Control, any conditions on the Participant’s  rights under, or any restrictions on vesting applicable to, such Replacement Awards held by such  Participant shall be waived or shall lapse, as the case may be, and any performance-based  restrictions shall be deemed to have been achieved at the greater of: (A) target level performance,  and (B) the actual performance level achieved had the Payment Criteria Period ended on the  Involuntary Redemption Date, to the extent reasonably determinable by the plan administrator in  its sole discretion. The determination of whether the conditions in the preceding sentence have  been satisfied will be made by the Committee, as constituted immediately prior to the Change of  Control, in its sole discretion.  (c) Where Units and Incentive Awards are settled and not replaced or  substituted with Replacement Awards pursuant to Section 4.3(b), such Units and Incentive Awards  shall become redeemable on the Change of Control Redemption Date, whereupon:  (i) all unvested Service-Based Units shall be deemed to be Vested Units  on the Change of Control Redemption Date and the Market Price of such Service- Based Units redeemed pursuant to this Section  4.3(c) shall be calculated as of the  Change of Control Redemption Date; and  

 

11  (ii) the Payout Amount for all Performance-Based Units and  Performance Awards redeemed pursuant to this Section 4.3(c) shall be the product  of (x) the higher of (A) 100% of the target number of Performance-Based Units in  the Award or (B) the actual Payout Percentage based on the Committee’s assessment  of performance of the Payment Criteria from the beginning of the Payment Criteria  Period for the Award through the date of the Change of Control, multiplied by (y) a  fraction, the numerator of which is the number of days elapsed in the Payment  Criteria Period for the Award through the date on which the Change of Control  occurred and the denominator of which is the total number of days in the Payment  Criteria Period for the Award.  (d) Subject to Section 7.5:  (i) where Awards are settled in accordance with Section 4.3(c), the  Company shall pay the Payout Amount payable in respect of all such Awards as  soon as practicable upon the consummation of the transaction(s) resulting in the  Change of Control, but in any event not later than 10 Business Days following the  consummation of the transaction(s) resulting in the Change of Control; and  (ii) where Awards are settled in connection with an Involuntary  Employment Action in respect of a Participant within 24 months following the  Change of Control, the Company shall pay the Payout Amount payable in respect  of all Awards of such Participant no later than 10 Business Days following the  effective date of the Involuntary Employment Action,   except, in each case, to the extent that later payment is required to comply with Section 409A of  the Code.  (e) Notwithstanding Sections 4.3(c) and 4.3(d)(i), but only to the extent  required to comply with Code Section 409A, the Payout Amount payable in respect of a Unit shall  become payable under Section 4.3(c) and 4.3(d)(i) only if the event(s) resulting in the Change of  Control would constitute a “change in the ownership”, a “change in the effective control” or a  “change in the ownership of a substantial portion of the assets” of Fortis or the Company,  determined in accordance with Code Section 409A. Any Payout Amount not paid upon a Change  of Control as a result of this Section 4.3(e) shall be payable at the time such Payout Amount would  otherwise be payable under this Plan, disregarding the occurrence of the Change of Control.   Committee Discretion.  Subject to the terms and conditions of the Plan, the  Committee shall determine the terms and conditions of any Awards in addition to those set forth  herein at the time of grant or from time to time following the Grant Date, including any additional  conditions with respect to the payment of Awards, which do not conflict with the Plan. The  Committee may, subsequent to the Grant Date, waive any such term or condition or determine that  it has been satisfied.     PAYMENT   Calculation of Payout Amount  

 

12  (a) For any Award of Performance-Based Units, subject to the discretion of the  Committee as described in Section 7.1, upon the completion of the applicable Payment Criteria  Period, the Committee shall, as soon as reasonably practicable thereafter make an assessment of  the Payment Criteria in accordance with the applicable Agreement and Section 4.1 for the purpose  of determining the Payout Percentage and Payout Amount with respect to such Award. The Payout  Amount for such Award shall be equal to the following:  A x B x C where:   A is that aggregate number of Performance-Based Units in the Participant’s Unit  Account on the Payment Date relating to such Award, determined by adding: (i) the  Performance-Based Units granted pursuant to Section 4.1 on the Grant Date for such  Award; (ii) the Performance-Based Units (if any) granted as “dividend equivalents”  in respect of the Performance-Based Units that are subject to the Award; and (iii)  the Performance-Based Units (if any) granted in connection with an adjustment or  reorganization to any of the Performance-Based Units that are subject to the Award;  B is the Payout Percentage; and  C is the Market Price of the Common Shares on the Payment Date.  (b) For any Award of Service-Based Units, upon the Payment Date, the  Committee shall determine the applicable Payout Amount for such Award, which shall be equal  to the following:  A x B where:  A is that aggregate number of Vested Service-Based Units in the Participant’s  Unit Account on the Payment Date, determined by adding: (i) the Vested  Service-Based Units granted pursuant to Section 4.1 on the Grant Date for such  Award; (ii) the Vested Service-Based Units (if any) granted as “dividend  equivalents” pursuant to Section 4.1 in respect of the Service-Based Units that  are subject to the Award; and (iii) the Vested Service-Based Units (if any)  granted in connection with an adjustment or reorganization to any of the  Service-Based Units that are subject to the Award; and  B is the Market Price of the Common Shares on the Payment Date.  (c) For Incentive Awards, subject to the discretion of the Committee as  described in Section 7.1, upon the completion of a Payment Criteria Period the Committee shall,  as soon as reasonably practicable thereafter make an assessment of the Payment Criteria for the  purpose of determining the Payout Percentage and Payout Amount. The Payout Percentage and  Payout Amount for each Participant shall be determined in accordance with the applicable  Agreement and Section 4.2.   Payment of Payout Amount  

 

13  Following determination by the Committee of the Payout Amount in accordance  with Section 5.1, subject to Section 2.5 and Article VI hereof, the Company shall as soon as  practicable pay to the Participant a lump sum cash payment in U.S. dollars equal to the  Participant’s Payout Amount, net of any applicable taxes and other amounts withheld in  accordance with Section 7.5, and subject to the following: (a) For Performance-Based Units  and Incentive Awards, such payment shall be made prior to the March 15 of the year following  the end of the year in which the Payment Criteria Period ends; or (b) for Service-Based Units,  such payment shall be made within 30 Business Days after the applicable Payment Date.   Reduction of Unit Account  Immediately after the payment contemplated in Section 5.2, the number of Units  outstanding in the Participant’s Unit Account shall be reduced by (a) the number of Units so paid  out and (b) if the payment was in respect of Performance-Based Units, the number of  Performance-Based Units cancelled as a result of the failure, in full or in part, to satisfy the  Payment Criteria by the Payment Date.    TERMINATION OF SERVICE   Termination for Cause, Involuntary Termination Without Cause or by  Voluntary Resignation  Unless otherwise provided in the applicable Agreement, on the date (the  “Termination Date”) that a Participant ceases to be an Employee by virtue of being terminated  for Cause, Involuntary Termination Without Cause or voluntary resignation other than for Good  Reason, all Awards granted to a Participant with respect to which the Payment Date has not yet  occurred shall be cancelled and the number of Units in the Participant’s account shall be deemed  to be zero. Following the Termination Date, such Participant shall have no rights with respect to  such cancelled Awards or to any further benefits under the Plan except for any Payout Amount  due and payable in respect of Awards for which the Payment Date occurred prior to the  Termination Date.   Death, Disability or Retirement of a Participant; Certain Terminations  under Employment Agreement  Unless otherwise provided in the applicable Agreement, if a Participant ceases  to be an Employee prior to a Payment Date as a result of death, Disability or Retirement:  (a) in the case of termination as a result of death, Disability or Retirement , (i)  the Performance-Based Units and Incentive Awards of such Participant will, subject to Section  6.2(b), remain outstanding until paid or cancelled in accordance with Section 4.3 or Article V, as  applicable; and (ii) the Service-Based Units of such Participant will, subject to Section 6.2(b),  become Vested Service-Based Units and shall be redeemed on the date of the death or Retirement  of the Participant or on the date on which the Participant’s Service is terminated due to Disability;  (b)   

 

14  (i) if Service is terminated due to death, Disability or Retirement and  the Participant has been in the Service of the Company or its Affiliates for less than 15 years on  the Termination Date, the Participant’s Awards shall be deemed to have Vested and the amount  otherwise payable in respect of such Awards shall be prorated to reflect the actual period between  the Grant Date and the date the Participant ceased Service as follows: (a) one-third of the Units  shall be deemed to have Vested if termination occurred on or after the one-year anniversary of the  Grant Date and before the two-year anniversary of the Grant Date, and (b) two-thirds of the Units  shall be deemed to have Vested if termination occurred on or after the two-year anniversary of the  Grant Date and before the three-year anniversary of the Grant Date; and will be paid in accordance  with Section 4.3 or Article V, as applicable; and  (ii) if Service is terminated due to death, Disability or Retirement and  the Participant has been in the Service of the Company or its Affiliates for 15 years or more on the  Termination Date, then the amount otherwise payable in respect of such Awards shall be  determined as if the Participant continued to be an Employee on the Payment Date of each Unit in  such Participant’s Unit Account and will be paid in accordance with Section 4.3 or Article V, as  applicable;   subject to the discretion of the Committee to determine that special circumstances exist that  reasonably justify an adjustment to the amount which would otherwise be paid to a Participant  pursuant to this Section 6.2(b); and  (c) in the case of the death of a Participant, the Participant’s designated  beneficiary or estate will be entitled to receive payment, if any, in respect of the Awards of the  Participant.    ADMINISTRATION   Administration   (a) The Plan shall be administered by the Committee. Among other  things, the Committee shall have full and complete authority to interpret the Plan, establish, amend  and rescind any rules and regulations relating to the Plan, and make any other determinations that  it deems necessary or desirable for the administration of the Plan. The Committee may correct any  defect or supply any omission or reconcile any inconsistency in the Plan or any Agreement in the  manner and to the extent the Committee deems necessary or desirable. Any decisions of the  Committee relating to the interpretation and administration of the Plan, as described herein, shall  lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties  concerned and their beneficiaries, legal representatives and successors, as applicable, and the  shareholders of Fortis.  No member of the Committee shall be liable for any action or determination  made in good faith with respect to the Plan or any Award hereunder.  (b) In addition to any other powers set forth in the Plan, but subject to  Code Section 409A and the provisions of the Plan, the Committee shall have the full and final  power and authority, in its discretion to:   

 

15  (i) amend, modify, or cancel any Award, or to waive any  restrictions or conditions applicable to any Award;   (ii) accelerate, continue, or defer the exercisability or Vesting of  any Award or any shares acquired pursuant thereto;   (iii)  authorize, in conjunction with any applicable deferred  compensation plan of the Company, that the receipt of cash subject to any  Award under this Plan may be deferred under the terms and conditions of  such deferred compensation plan; and   (iv)  determine the terms and conditions of Awards granted to  Participants and whether such terms and conditions have been satisfied.  No amendment, modification, or cancellation of an outstanding Award or Agreement shall in any  manner materially and adversely affect any then outstanding Award under the Plan without the  consent of the Participant holding such Award, except as set forth in any Agreement relating to  the Award, as set forth in Sections 2.2 or 4.3, or to bring the Plan and/or an Award into  compliance with the requirements of Code Section 409A or to qualify for an exemption under  Code Section 409A.  (c) In exercising its authority under Section 7.1, the Committee shall  from time to time ensure it is informed as to the terms and conditions of any similar plans of Fortis  and Fortis’ other subsidiaries in order that it may consider such terms in exercising such authority.   Unfunded Obligation  Unless otherwise determined by the Committee, the Plan will be an unfunded  obligation of the Company and the Company’s obligations hereunder shall constitute general,  unsecured obligations, payable solely out of its general assets, and no Participant or other Person  shall have any right to any specific assets of the Company. The Company shall not segregate any  assets for the purpose of funding its obligations with respect to the Awards granted hereunder and  shall not be deemed to be a trustee of any amounts to be distributed or paid pursuant to the Plan. No  liability or obligation of the Company under the Plan shall be deemed to be secured by any pledge  of, or encumbrance on, any property or assets of the Company. To the extent any individual holds  rights under the Plan, such rights (unless otherwise determined by the Committee) shall be no  greater than the rights of an unsecured general creditor of the Company.   Amendment, Suspension and Termination  The Plan may be amended, suspended or terminated at any time by the Board, in  whole or in part, except as to rights already accrued hereunder unless the affected Participant  consents to any such change in writing; provided, however, that an amendment, suspension or  termination the effect of which is not adverse to such Participant shall not require such  Participant’s consent. If the Plan is terminated, prior awards shall, at the discretion of the  Committee, either (a) subject to Section 2.5, become immediately payable in accordance with  Section 4.3 or Article V, as applicable, or (b) remain outstanding and in effect in accordance with  their applicable terms and conditions.   

 

16   Cost of Administration  The Company will be responsible for all costs relating to the administration of the  Plan.   Withholding Taxes  The Company shall withhold from any payment to or for the benefit of a Participant  any amount required to comply with Applicable Law relating to the withholding of tax or the  making of any other source deductions, including on the amount, if any, included in income of a  Participant and may adopt and apply such rules and regulations as in its opinion will ensure that the  Company will be able to so comply. To the extent that the Company is required under Applicable  Law to withhold tax at any time other than upon payment of Awards pursuant to this Plan (for  example, if payment is deferred pursuant to Section 7.6 hereof), then the Company shall have the  right in its sole discretion to (a) require the Participant to pay or provide for payment of the  required tax withholding, or (b) deduct the required tax withholding from any amount of salary,  bonus, incentive compensation or other payment otherwise payable in cash to the Participant.   Deferral  Notwithstanding anything contained herein to the contrary, but subject to Code  Section 409A, Participants may elect to defer receipt of payment of the Awards in accordance  with the terms, and subject to the conditions, of the Company’s Executive Deferred Compensation  Plan (and any similar or successor plan that may be in effect from time to time).    RECOUPMENT   Clawback of Payout Amounts and Units  In the event of a Restatement, the Committee will review in respect of the  Restatement Period all amounts paid or payable to the Company’s executive officers pursuant to  this Plan and all such amounts shall be subject to recoupment pursuant to the Company’s  Recoupment Policy, as in effect from time to time.    MISCELLANEOUS   No Assignment  An Award is personal to the Participant and is non-assignable. No Award granted  hereunder shall be pledged, hypothecated, charged, transferred, assigned or otherwise encumbered  or disposed of by the Participant, whether voluntarily or by operation of law, otherwise than by  testate succession or the laws of descent and distribution, and any attempt to do so will be null and  void. During the lifetime of the Participant, an Award shall be redeemable only by the Participant  and, upon the death of a Participant, the Person to whom the rights shall have passed by testate  succession or by the laws of descent and distribution may receive payment of any Awards in  accordance with the terms hereof.  

 

17   Currency  (a) The value of the Units as determined in Section 4.1 with respect to  an Award shall be calculated in U.S. dollars, which then shall be converted to Canadian dollars  using the exchange rate published by the Bank of Canada on the Business Day prior to the Grant  Date or such other available published exchange rate chosen by the Human Resources Committee  of the Fortis Board.  (b) The Payout Amounts shall be calculated in Canadian dollars, which  then shall be converted to U.S. dollars using the exchange rate set forth in Section 9.2(a).   Successors and Assigns  The Plan shall be binding on all successors and assigns of the Company and a  Participant, including the estate of such Participant and the executor, administrator or trustee of  such estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors.  IN WITNESS WHEREOF, the Company caused this Plan to be executed by its  duly authorized officer as of November 11, 2021.   ITC HOLDINGS CORP.   By:  Linda H. Apsey   Its:  President and Chief Executive Officer

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