Document:

Terms and Conditions of the

 

 

Nokia Restricted Share Plan 2016

 

 

Approved by the Board of Directors on

 

10 February 2016

 

 

 

 

 

 

 

  

  

  

   

  

 

TERMS AND CONDITIONS OF THE NOKIA RESTRICTED SHARE PLAN 2016

 

	
1

	
PURPOSE AND SCOPE OF THE PLAN

 

	
1.1

	
The purpose of the Nokia Restricted Share Plan 2016 is to recruit, retain, reward and motivate selected high potential employees with functional mastery and other employees deemed critical to Nokia’s future success. This Plan is also intended to promote share ownership of these key employees. To accomplish these objectives the Company may grant eligible Nokia employees Restricted Shares under this Plan.

	
1.2

	
The Plan may result in a grant of a maximum of 1,350,000 Restricted Shares. The Board determines the general guidelines under the Plan and approves the grants to eligible employees within its authority. Grants of Restricted Shares under these Terms & Conditions may be made between February 10, 2016 and December 31, 2016, inclusive.

	
2

	
DEFINITIONS

 

Board: Board of Directors of the Company.

 

Company: Nokia Corporation.

 

Grant Amount: The number of Restricted Shares granted to a Participant.

 

Nokia: The Company together with its subsidiaries.

 

Participant: Employee of Nokia who has received a grant of Restricted Shares under the Plan.

 

Plan: Restricted Share Plan 2016 of the Company.

 

Restricted Share/Shares:  Each Restricted Share represents a right to receive one Share or its cash equivalent upon settlement subject to the fulfillment of these Terms & Conditions and provided that no other restriction related to these Terms & Conditions is applicable.

   

  

  

  

   

 

Restriction Period: Period after which Shares shall be settled to the Participant. The Restricted Shares shall be settled in three Tranches, each with its own Restriction Period. The Restriction Period for all Tranches shall start on the date the Restricted Shares were granted to the Participant and end:

 

	
  

	
 -

	
no less than 12 months following the grant date in respect of 1/3 of the Grant Amount (referred to as Tranche 1), rounded down to the nearest whole Share;

 

	
  

	
 -

	
no less than 24 months following the grant date in respect of 1/3 of the Grant Amount (referred to as Tranche 2), rounded down to the nearest whole Share; and

 

	
  

	
 -

	
no less than 36 months following the grant date in respect of the remaining Grant Amount not settled as part of Tranche 1 and Tranche 2 (referred to as Tranche 3).

 

A Restriction Period shall refer to one of the three Tranches referred to above and Restriction Periods shall refer to all three Tranches combined.

 

Settlement Date(s): A banking day in Helsinki, Finland falling as soon as practicable after the end of the Restriction Period(s), as determined by the Company.

 

Share/Shares: The Company’s ordinary shares. The terms and conditions applicable to Shares shall apply to their cash equivalent used for settlement, as applicable.

 

Terms & Conditions: The terms and conditions of this Plan.

 

Tranche: One of the three groups that the Restricted Shares have been divided into, each with its own Restriction Period.

 

  

  

  

   

 

 

	
3

	
GRANT OF RESTRICTED SHARES

 

	
3.1

	
At grant, each Participant is offered a Grant Amount of Restricted Shares. The Company will notify each Participant of the grant.

 

	
3.2

	
As a precondition for a valid grant, the Participant must be employed by Nokia at the time of the grant. The Participant may be required to give the Company such authorizations and consents, as the Company deems necessary in order to administer the Plan.

 

	
4

	
RESTRICTION PERIODS

 

	
4.1

	
The applicable number of Shares shall be settled to the Participant after the end of each Restriction Period. The end of the Restriction Period for each of the three Tranches shall be specified to the Participant in the grant communication.

 

	
4.2

	
During the Restriction Period(s), the Participant does not have any legal ownership or any other rights relating to the Shares.

 

	
5

	
SETTLEMENT

 

	
5.1

	
On each Settlement Date, the Company will complete the settlement by transferring the number of Shares applicable to the Tranche in question, or their cash equivalent, to the Participant’s book-entry, brokerage or other bank account, as applicable, provided that the Participant has complied with these Terms & Conditions and performed all necessary actions to enable the Company to instruct the settlement. If the Participant has not performed all necessary actions to enable the Company to instruct

 

	
5.2

	
the settlement, the Company may, in its sole discretion, sell the Shares on behalf of the Participant and remit the proceeds to the Participant.

 

	
5.3

	
The Company may, in its sole discretion, use for the settlement of Restricted Shares one or more of the following: newly issued Shares, the Company’s own existing Shares (treasury Shares), Shares purchased from the open market, or, in lieu of Shares, cash.

 

	
5.4

	
The Participants shall not be entitled to any dividend or have any voting rights or any other shareholder rights until and unless the Shares have been transferred to the Participant and, where new Shares issued by the Company are used for settlement, until the Shares have been entered in the Trade Register.

  

  

  

   

 

 

	
6

	
CHANGES IN EMPLOYMENT

 

	
6.1

	
If the employment of the Participant with Nokia terminates prior to the end of the Restriction Period(s) by the reason of retirement, permanent disability (as defined by the Company in its sole discretion), or death, the Participant retains the right to the remaining settlement and Restriction Period(s) will continue as scheduled.

 

	
  

	
6.1.1

	
In the case of death of the Participant prior to the end of the remaining Restriction Period(s), unless the Company determines otherwise in its sole discretion, the Restricted Shares will be settled prior to the end of the remaining Restriction Period(s). The number of settled Restricted Shares shall be the Grant Amount less the number of Restricted Shares potentially already settled under the Restricted Share Grant. If made, such special settlement will constitute full and final settlement of that Restricted Share grant.

 

 

 

  

  

  

   

 

 

	
6.2

	
If the employment of the Participant with Nokia terminates prior to the end of any of the remaining Restriction Periods, by any other reason than those mentioned above, then unless the Board determines otherwise in its sole discretion, the Company shall redeem the remaining Restricted Shares from the Participant without consideration and the Participant shall not be entitled to any settlement under the Plan. For the avoidance of doubt, this will only apply to the part of the Grant Amount for which the Restriction Period(s) have not yet ended at the date of termination of employment.

 

	
6.3

	
In cases of voluntary and/or statutory leave of absence of the Participant, the Company has the right to defer the end of the Restriction Period(s) or prorate the remaining settlement.

 

	
7

	
BREACH OF THE TERMS AND CONDITIONS

 

	
7.1

	
The Participant shall comply with these Terms & Conditions, as well as any instructions given by the Company regarding the Plan from time to time. If the Participant breaches these Terms & Conditions and/or any instructions given by the Company, the Company may in its discretion at any time prior to settlement rescind the grant of Restricted Shares.

 

	
8

	
TERMS OF EMPLOYMENT

 

	
8.1

	
The grant or settlement of Restricted Shares does not constitute a term or a condition of the Participant’s employment contract with Nokia under applicable local laws and the rights and obligations arising from a Participant’s employment with Nokia are separate from, and are not affected by, the Participant’s participation in the Plan. The Restricted Shares, Shares or their cash equivalent under the Plan do not form a part of the Participant’s salary or benefit of any kind.

 

	
8.2

	
The grant or settlement of Restricted Shares do not create any right for that Participant to be offered participation in the Plan in future or to be granted any additional Restricted Shares on any particular terms, including the number of Restricted Shares.

 

	
8.3

	
By participating in the Plan, a Participant waives all rights to compensation for any loss in relation to the Plan, including:

 

	
  

	
8.3.1

	
any loss or reduction of any rights or expectations under the Plan in any circumstances or for any reason;

   

  

  

  

    

 

 

	
  

	
8.3.2

	
any exercise of a discretion or a decision taken in relation to any Restricted Shares, and/or to the Plan, or any failure to exercise a discretion or take a decision; and

 

	 	
8.3.3

	
the operation, suspension, termination or amendment of the Plan.

 

	
9

	
TAXES AND OTHER OBLIGATIONS

 

	
9.1

	
The Participants are personally responsible for all taxes and social security charges associated with the Restricted Share grants and Shares delivered upon settlement. This includes responsibility for any and all tax liabilities in multiple countries, if the Participant has resided in more than one country during the Restriction Period(s). The Participants are advised to consult their own financial and tax advisers (at their own expense) before accepting the grant in order to verify their tax position.

 

	
9.2

	
The Participants are personally responsible for any potential charges debited by any plan administrator, broker or financial institution in connection with the settlement of the Restricted Shares or any subsequent transactions related to the Shares.

 

	
9.3

	
Pursuant to applicable laws, the Company is or may be required, or may deem it appropriate, to withhold taxes, social security charges or fulfill employment related or other obligations upon the grant or settlement of Restricted Shares, or when Shares are disposed of by the Participants. The Company shall have the right to determine how such collection, withholding or other measures will be arranged or carried out, including but not limited to a settlement of a net amount remaining after the completion of such measures or a potential sale of the Shares on behalf of the Participants for the completion of such measures.

 

	
10

	
VALIDITY OF THESE TERMS AND CONDITIONS AND AMENDMENTS

 

	
10.1

	
These Terms & Conditions shall become valid and effective upon the approval by the Board.

 

	
10.2

	
The Board may, in its absolute discretion, at any time amend, modify or terminate these Terms & Conditions.

 

	
10.3

	
Action taken by the Board in rule 10.2 may also, as in each case determined by the Board, affect the Restricted Share grants that are then outstanding, but not settled.

 

	
11

	
ADMINISTRATION

 

	
11.1

	
The Plan shall be administered by the Company. The Company has the authority to interpret these Terms & Conditions, approve such other rules and procedures and take such other measures, as it deems necessary or appropriate to benefit the administration of the Plan, including, but not limited to, taking action to take account of a change in legislation or to maintain favourable tax, exchange control or regulatory treatment for Participants or for Nokia. Such action may also affect the Restricted Share grants that are then outstanding, but not settled.

   

  

  

  

   

	
11.2

	
The Company has the right to determine the practical manner of administration and settlement of the Restricted Shares, including but not limited to the acquisition, issuance, sale, and transfer of the Shares or their cash equivalent to the Participant. Furthermore, the Company has the right to require from the Participant the submission of such information or contribution that is necessary for the administration and settlement of the Restricted Share grants.

 

	
12

	
RIGHTS OF PARTICIPANTS IN CORPORATE EVENTS

 

	
12.1

	
Should the Annual General Meeting of the Company, in accordance with the proposal of the Board, decide, prior to the settlement of the Restricted Shares, to distribute a special dividend constituting a deviation from the customary dividend policy of the Company:

 

	
  

	
12.1.1

	
the Board may determine, in its sole discretion, if and how the Participants will be compensated for the special dividend;

 

	
  

	
12.1.2

	
such a distribution of a special dividend can include, but is not limited to, a distribution of assets from reserves of unrestricted equity or distribution of share capital to the shareholders; and

 

	
  

	
12.1.3

	
the Board will specify in any proposal for the dividend whether the dividend, or a part of it, shall be considered a special dividend.

 

	
12.2

	
Should the Company, prior to any settlement(s) of the Restricted Shares, issue new shares, stock options or other special rights to all shareholders, the Board will, in its sole discretion, decide what the rights of the Participants will be in such cases.

 

	
12.3

	
The Company’s decision to cancel existing shares held by the Company prior to any settlement(s) of the Restricted Shares will not affect the settlement(s) of Restricted Shares nor the number of Restricted Shares outstanding, but not settled.

  

  

  

   

 

 

	
12.4

	
Should the Company, during the Restriction Period(s), be placed into liquidation:

 

	
  

	
12.4.1

	
the Board may determine, in its sole discretion, whether any Restricted Shares may be settled, giving consideration as to whether the settled amount should be determined by subtracting the number of Restricted Shares potentially already settled under the Restricted Share Grant from the Grant Amount. Any settlement will be within such period as resolved by the Board; and

 

	
  

	
12.4.2

	
notwithstanding any other provisions in these Terms & Conditions, should the Company, prior to any settlement(s) of the Restricted Shares, be deregistered from the Trade Register, the Participants shall not have any right to settlement(s).

 

	
12.5

	
Should the Company during the Restriction Period(s) resolve to merge with another existing company or merge with a company to be established, or should the Company resolve to be demerged:

 

	
  

	
12.5.1

	
the Board may determine, in its sole discretion, whether any Restricted Shares may be settled prior to the merger or demerger, giving consideration as to whether the settled amount should be determined by subtracting the number of Restricted Shares potentially already settled under the Restricted Share Grant from the Grant Amount. Any settlement will be within such period as resolved by the Board;

 

	
  

	
12.5.2

	
the Board may determine, in is sole discretion, whether any number of Restricted Shares should be converted into similar equity rights issued by the other company. In such circumstances, the Board shall determine the terms and the period in which any Restricted Shares may be converted; and

 

	
  

	
12.5.3

	
notwithstanding any other provisions in these Terms & Conditions, following the closing of the merger or demerger, the Participants shall have no right to any settlement(s) under this Plan. The same also applies to a merger, in which the Company takes part, and whereby the Company registers itself as a European Company (Societas Europae) in another member state in the European Economic Area or, if the Company after registering itself into a European Company registers a transfer of its domicile into another member state.

   

  

  

  

   

   

   

	
12.6

	
the Company, prior to the settlement(s) of the Restricted Shares, make a resolution to acquire its own shares through a tender offer to all the shareholders, the Company shall make an equal offer to the Participants in respect of Restricted Shares outstanding, but not settled. If the Company acquires or redeems its own shares in any other manner, or if the Company acquires stock options or other special rights entitling to shares, no measures will need to be taken in relation to this Plan, unless the Board, in its sole discretion, determines otherwise.

 

	
12.7

	
Should, during the Restriction Period(s), a tender offer regarding all shares and stock options issued by the Company be made or should a shareholder under the Articles of Association of the Company or the Finnish Securities Markets Act have the obligation to redeem the shares from the Company’s other shareholders, or to redeem the stock options, or should a shareholder have under the Finnish Companies Act the right and obligation to redeem the shares from the Company’s other shareholders:

 

	
  

	
12.7.1

	
the Board may determine, in its sole discretion, whether any Restricted Shares may be settled prior to the tender offer or the offer to redeem the shares, giving consideration as to whether the settled amount should be determined by subtracting the number of Restricted Shares potentially already settled under the Restricted Share Grant from the Grant Amount.

 

	
12.8

	
Should a shareholder under the Finnish Limited Liability Companies Act have the right to redeem the shares from the Company’s other shareholders, the Board may determine, in its sole discretion, during the Restriction Period(s), whether any Restricted Shares may be settled prior to the redemption, after which the Participants’ obligation to transfer all of their shares will be subject to the Finnish Companies Act.

 

	
12.9

	
The Board may, however, in any of the situations resolved in this rule 12 determine in its sole discretion, to provide the Participants with an opportunity to convert their remaining Restricted Shares into equity-based incentives issued by another company on such terms and within such period prior to the completion of the tender offer or redemption, as resolved by the Board.

   

  

  

  

   

   

   

	
12.10

	
Should the shares of the Company during the Restriction Period(s) be delisted, with the effect that the shares are no longer listed on any recognised stock exchange, nor subject to any other public trading:

 

	
  

	
12.10.1

	
the Board, may determine, in its sole discretion, whether any Restricted Shares may be settled as a result of the delisting, giving consideration as to whether the settled amount should be determined by subtracting the number of Restricted Shares potentially already settled under the Restricted Share Grant from the Grant Amount. Any settlement will be within such period as resolved by the Board; and

 

	
  

	
12.10.2

	
the Board may determine whether any other amendments to these Terms & Conditions are required as a result of the delisting.

 

	
13

	
THE RECOUPMENT OF EQUITY IN THE EVENT OF CERTAIN RESTATEMENTS

 

	
13.1

	
Under the Nokia policy on the clawback of incentive compensation (“Clawback Policy”), as amended from time to time, in the event that recoupment is triggered under the Clawback Policy, the Board of Directors may, in its sole discretion and at any time, resolve to recover or require reimbursement of all or a portion of incentive compensation, which is defined in the Clawback Policy and includes any Restricted Shares granted under the Plan and awarded to the employees covered by the Clawback Policy.

 

	
13.2

	
The covered employees and the events triggering recoupment are defined in the Clawback Policy.

 

	
14

	
GOVERNING LAW

 

	
14.1

	
These Terms & Conditions are governed by Finnish laws.

 

	
14.2

	
Disputes arising out of these Terms & Conditions shall be settled by arbitration in Helsinki, Finland, in accordance with the Arbitration Rules of the Finnish Central Chamber of Commerce.

   

  

  

  

   

   

   

	
15

	
PROCESSING OF PERSONAL DATA

 

	
15.1

	
The Company has the right to transfer globally within Nokia and/or to an agent of Nokia any of the personal data required for the administration of the Plan and the settlement of the Restricted Share grants.

 

	
15.2

	
The personal data may be administered and processed by the Company or its authorized agent in the future.

 

	
15.3

	
The Participant is entitled to request access to data referring to the Participant’s person, held by the Company or its agent, and to request amendment or deletion of such data in accordance with applicable laws, statutes or regulations. In order to exercise these rights, the Participant must contact Nokia Legal & Compliance, in Espoo, Finland.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

  

  

    

SUPPLEMENT TO THE GRANT OF RESTRICTED SHARES UNDER THE NOKIA

RESTRICTED SHARE PLAN 2016 IN THE USA

 

Amendments to the Nokia Restricted Share Plan 2016

 

For purposes of Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), the Nokia Restricted Share Plan 2016 (“Plan”) is amended, effective as of April 1, 2016, by adding the following “Code Section 409A Schedule” to the Plan. This Plan, as amended by this Code Section 409A Schedule, is intended to comply with Section 409A of the Code.

 

“Code Section 409A Schedule”

 

Notwithstanding anything in the terms and conditions of the Plan (“Plan Rules”) to the contrary, effective as of March 31, 2016, the Plan Rules are amended as set forth in this Code Section 409A Schedule in order to avoid adverse or unintended tax consequences under Section 409A of the Code, and the applicable rules and regulations thereunder to Participants who are (or who may become) US taxpayers (the “US Participants”).  The provisions of this Code Section 409A Schedule shall apply to grants to all US Participants and shall supersede the other Plan Rules to the extent necessary to eliminate inconsistencies between this Code Section 409A Schedule and such other Plan Rules.

 

1.  In no event shall a Settlement Date occur later than the last banking day of the calendar year in which the applicable Restriction Period ends, or if later, the 15th day of the third month after the month in which the applicable Restriction Period ends.

 

2.   In cases of voluntary and/or statutory leave of absence of the US Participant, the length of which exceeds the threshold determined for the relevant type of leave in the applicable human resources policy at the time of the leave, Nokia will prorate and settle the US Participant’s Restricted Shares after the end of each applicable Restriction Period on the each applicable Settlement Date.

 

3.  If a US Participant’s employment with Nokia terminates prior to the end of a Restriction Period by reason of retirement or permanent disability, the US Participant will retain the right to settlement of the applicable number of Restricted Shares on each Settlement Date.  If a US Participant’s employment terminates due to death, Nokia will settle the remaining unsettled Restricted Shares prior to the end of the remaining Restriction Periods in the second month of the calendar quarter following the date of the US Participant’s death.

 

4. Notwithstanding the above, Nokia will not settle the Restricted Shares of a US Participant who is a “specified employee” under Section 409A of the Code earlier than the first business day following the date that is six months following the specified employee’s “separation from service” under Section 409A of the Code (including, without limitation by reason of retirement, permanent disability or death) or, if earlier, the date of death of the specified employee.

 

5.  The following provisions amend Section 12 of the Plan Rules, which is attached as Appendix C to the Legal Document for the Nokia Restricted Share Plan 2016:

 

	
  

	
a)

	
Should Nokia distribute a special dividend constituting a deviation from Nokia’s customary dividend policy as contemplated by Section 12.1 of the Plan Rules, to the extent that US Participants receive the dividend, the dividend will be paid to US Participants after the end of the applicable Restriction Period on the applicable Settlement Date.

     

  

  

  

     

	
  

	
b)

	
In the event that during a Restriction Period Nokia is liquidated as contemplated by Section 12.4 of the Plan Rules, Nokia will settle the US Participant’s remaining unsettled Restricted Shares prior to the end of the calendar year that includes the applicable Settlement Date pertaining to those unsettled shares.

 

	
  

	
c)

	
With respect to the transactions contemplated by Sections 12.5 and 12.7 of the Plan Rules, if during a Restriction Period Nokia experiences a change in the ownership or effective control of a corporation, or a change in the ownership of a substantial portion of the assets of the corporation, that constitutes a change-in-control event under Section 1.409A-3(i)(5) of the U.S. Income Tax Regulations, or any successor provision (a “409A Change in Control Event”), Nokia will either (i) convert the remaining unsettled Restricted Shares into similar equity or equity-based cash rights issued by the surviving corporation or its parent within 30 days of the 409A Change in Control Event or (ii) settle the US Participant’s remaining unsettled Restricted Shares within 30 days prior to the 409A Change in Control Event.  If during a Restriction Period Nokia engages in a transaction as contemplated by Section 12.5 or 12.7 of the Plan Rules that does not constitute a 409A Change in Control Event, the remaining unsettled Restricted Shares shall be settled in accordance with their terms.

 

	
  

	
d)

	
If prior to the settlement of any portion of the Restricted Shares Nokia makes a resolution to acquire its own Shares through a tender offer to all the shareholders under Section 12.6 of the Plan Rules, Nokia will exchange the US Participant’s remaining unsettled Restricted Shares for a right to receive a cash payment to be paid out after the end of each applicable Restriction Period on the applicable Settlement Date pertaining to those unsettled shares.

 

	
  

	
e)

	
In the event that during a Restriction Period Nokia is delisted so that its shares are no longer listed on any recognized stock exchange or subject to public trading, as contemplated by Section 12.10 of the Plan Rules, Nokia will exchange the US Participant’s remaining unsettled Restricted Shares for a right to receive a cash payment to be paid out after the end of each applicable Restriction Period on each applicable Settlement Date pertaining to those unsettled shares.

 

6.  If any Plan Rule or grant document contravenes any regulations or guidance promulgated under Section 409A of the Code or could cause any granted Restricted Shares to be subject to taxes, interest or penalties under Section 409A of the Code, Nokia may, in its sole discretion and without the US Participant’s consent, modify the Plan Rules or grant documents to: (i) comply with, or avoid being subject to, Section 409A of the Code, (ii) avoid the incurrence of additional taxes, interest or penalties under Section 409A of the Code, and (iii) maintain, to the maximum extent practicable, the original intent of the applicable Plan Rule or provision without contravening the provisions of Section 409A of the Code.

 

*  *  *  *  *

 

Except as set forth herein, the Nokia Restricted Share Plan 2016 remains in full force and effect.Exhibit

Exhibit 10.1
THIRD AMENDMENT TO THE
INSPERITY, INC. 2012 INCENTIVE PLAN

The Insperity, Inc. 2012 Incentive Plan (the “Plan”), shall be, and hereby is, amended in the following respects, effective as of, and only for awards granted on or after, March 29, 2016:
I.
Section 2 is hereby amended by amending and restating clause (b) of the definition of “Change in Control” to state as follows:
	
	
	“(b) the date the individuals who constitute the Board as of March 1, 2016 (the “Incumbent Board”), cease for any reason to constitute at least a majority of the members of the Board, provided that any person becoming a director subsequent to March 1, 2016, whose appointment, election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the disinterested, non-management directors shall be, for purposes of this Plan, considered as though such person were a member of the Incumbent Board; or”

II.
Except as modified herein, the Plan shall remain in full force and effect.
IN WITNESS WHEREOF, this Amendment to the Plan is adopted as of the date set forth above. 
INSPERITY, INC.

By:     /s/ Paul J. Sarvadi        
Name:    Paul J. Sarvadi
Title:    Chairman of the Board
and Chief Executive Officer

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