Document:

Document

DCP Services, LLC
Executive Severance Plan
and
Summary Plan Description

Table of Contents
									
	INTRODUCTION		1

			
	ARTICLE 1. DEFINITIONS		2

	1.1	Active Employee
	2

	1.2	Administrator
	2

	1.3	Affiliate
	2

	1.4	Base Pay
	2

	1.5	Cause
	2

	1.6	COBRA
	2

	1.7	Code
	2

	1.8	Creditable Leave of Absence
	3

	1.9	Effective Date
	3

	1.10	Eligible Employee	3

	1.11	Employee
	3

	1.12	Employer
	3

	1.13	Employment
	3

	1.14	Employment Classification(s)
	3

	1.15	ERISA
	4

	1.16	Family and Medical Leave
	4

	1.17	Furlough
	4

	1.18	Hour of Service
	4

	1.19	Military Leave
	4

	1.20	Plan
	4

	1.21	Plan Sponsor
	4

	1.22	Plan Year
	4

	1.23	Release
	4

	1.24	Service Date
	4

	1.25	Severance Pay
	4

	1.26	Sick Leave
	4

	1.27	STD Leave
	4

	1.28	Subsidy Period
	4

	1.29	Termination Date
	5

	1.30	Weekly Pay
	5

	1.31	Year of Service
	5

			
	ARTICLE 2. ELIGIBILITY		6

	2.1	Eligibility Requirements for Severance Pay
	6

	2.2	Ineligible Terminations
	6

			
	ARTICLE 3. SEVERANCE BENEFITS		7

1

									
	3.1	Severance Pay
	7

	3.2	Timing and Form of Payment
	7

	3.3	Outplacement Assistance
	7

	3.4	Subsidized COBRA Coverage
	7

			
	ARTICLE 4. CONDITIONS FOR RECEIPT OF SEVERANCE PAY
		9

	4.1	Execution of Release
	9

	4.2	Confidentiality and Non-Disclosure Agreement
	9

	4.3	Additional Conditions
	9

	4.4	Offset for Money Owed to the Employer
	9

	4.5	Other Benefits
	9

	4.6	Payments to Estate
	9

	4.7	Coordination with Short-Term Incentive Plan
	9

	4.8	Coordination with Long-Term Incentive Plan
	10

	4.9	Repayment of Benefit
	10

			
	ARTICLE 5. ADMINISTRATION		11

	5.1	Administration and Interpretation of the Plan
	11

	5.2	Information
	12

	5.3	Fiduciary Provisions
	12

	5.4	Indemnification
	12

	5.5	Expenses of Administration
	12

	5.6	Accounts and Records
	12

	5.7	Notification of Employees
	12

	5.8	Claims Procedure
	12

			
	ARTICLE 6. GENERAL PROVISIONS		15

	6.1	Entire Understanding
	15

	6.2	Payments from the Plan
	15

	6.3	Rights Against Employer
	15

	6.4	Amendment; Termination
	15

	6.5	Severability
	15

	6.6	Non-Assignable
	15

	6.7	Governing Law
	15

	6.8	Forum and Waiver of Trial by Jury
	15

	6.9	Code Section 409A
	16

			
	RIGHTS OF PLAN PARTICIPANTS		17

			
	GENERAL PLAN INFORMATION		19

			
	SCHEDULE A		A-1

			

2

									
	SCHEDULE B		B-1

			
	SCHEDULE C		C-1

			
	SCHEDULE D		D-1

3

INTRODUCTION
DCP Services, LLC Executive Severance Plan (the “Plan”) is sponsored by DCP Services, LLC (the “Plan Sponsor”) for the purpose of providing severance benefits to certain employees of the Employer.  Participation in the Plan is limited to those Employees who are involuntarily terminated, through no fault of their own, or whose employment is terminated through an Employer-initiated separation as further set forth herein.  This Plan does not apply to any other persons, including those who voluntarily terminate employment.
This Plan was originally effective as of January 1, 2015.  This amended and restated Plan is effective as of February 19, 2020 (the “Effective Date”), and will remain in effect, unaltered, unless formally amended or terminated in writing by the Plan Sponsor.  No employee, supervisor, or manager of the Employer has any authority to alter, amend or make exceptions to this Plan.  This Plan is not a contract of employment, and does not entitle any person to any term or length of employment.  The Plan is specifically intended to be an unfunded “welfare benefit plan” as that term is defined in the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and is not a pension benefit plan.  Only those Employees who actually receive benefits under the terms of the Plan are deemed to be “participants” of the Plan for purposes of the terms provided herein, but any Employees who would be eligible to receive benefits under the terms of the Plan if the payment events were triggered are considered “participants” for purposes of ERISA rights.  

                    
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ARTICLE 1.
DEFINITIONS
1.1Active Employee means an Employee who is performing the regular duties of his or her position with the Employer or who is on a Creditable Leave of Absence.
1.2Administrator means the Plan Sponsor unless the Plan Sponsor appoints an administrator in accordance with Section 5.1.
1.3Affiliate means, with respect to any person, any other person that directly or indirectly through one or more intermediaries’ controls, is controlled by or is under common control with, the person in question.  As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contract or otherwise, and includes Enbridge, Inc. (and any successor in interest) so long as it owns a fifty percent (50%) interest in the Plan Sponsor, and also Phillips 66 (and any successor in interest) so long as it owns a fifty percent (50%) interest in the Plan Sponsor.
1.4Base Pay means the annual amount of compensation regularly paid to an Employee, (excluding overtime, bonuses, differentials, allowances, incentive pay, commissions and any other supplemental remuneration to the Employee) as determined on the Termination Date.
1.5Cause means—
(a)the Employee’s willful or repeated refusal to obey written directions of the Employer (so long as such directions do not involve illegal acts); 
(b)acts of substance abuse by the Employee that are injurious to the Employer; 
(c)fraud or dishonesty by the Employee that is injurious to the Employer;
(d)the Employee being charged with any felony crime (whether in connection with the Employer’s affairs or otherwise);
(e)any misrepresentation by the Employee of a fact, or omission of a material fact, concerning his or her professional qualifications or experience, the termination of any prior employment, or any litigation or proceedings commenced against or by the Employee involving actual or alleged illegal behavior, whether made in the Employee’s resume or in other written materials; or
(f)violation of any Employer policy applicable to Employee.
1.6COBRA means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and related regulations.
1.7Code means the Internal Revenue Code of 1986, as amended, and related regulations.  
1.8Creditable Leave of Absence means a period of absence from Employment because of Family and Medical Leave, Military Leave, Sick Leave, STD Leave, or Furlough and excludes all other leaves of absence, including personal leaves of absence.
                    
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1.9Effective Date means February 19, 2020.
1.10Eligible Employee means an Employee who—
(a)is employed as an Active Employee on a full-time or part-time basis with an Employment Classification of Director (or equivalent) or higher; 
(b)does not have a written employment or termination agreement in effect on the applicable Termination Date that waives participation in the Plan or otherwise provides for severance benefits; and
(c)has satisfied the requirements of Section 2.1.
1.11Employee means any individual who performs services for the Employer and receives compensation for such services other than any individual who—
(a)is classified by the Employer as a temporary employee;
(b)is classified by the Employer as an agent, consultant, independent contractor or self-employed individual regardless of whether such person is later determined to have an employer-employee relationship with the Employer; or
(c)provides services to the Employer under a written contract between the Employer and a temporary help firm, employee leasing agency, technical services firm, outsourcing company, professional employer organization or similar entity, regardless of whether such person is later determined to have an employer-employee relationship with the Employer.
1.12Employer means the Plan Sponsor and its Affiliates other than: 
(a)Enbridge, Inc. (and any successor in interest); 
(b)Phillips 66 (and any successor in interest); and 
(c)Any other entity specifically excluded from participation under the Plan by the Plan Sponsor.
1.13Employment means an individual’s service as an Employee with the Employer that begins on the Employee’s Service Date and ends on the Employee’s Termination Date.  Periods during which an Employee is on a Creditable Leave of Absence will be treated as periods of continuous Employment.  
1.14Employment Classification(s) means the classification of such Employee determined by the Administrator and as listed in Section 3.1 on such Employee’s Termination Date.
1.15ERISA means the Employee Retirement Income Security Act of 1974, as amended, and related regulations.
1.16Family and Medical Leave means a leave of absence taken pursuant to the Family and Medical Leave Act of 1993, as amended, and related regulations.
                    
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1.17Furlough means paid or unpaid leave taken as required by the Employer due to lack of work.
1.18Hour of Service means each hour for which an Employee is paid or entitled to payment from the Employer for the performance of duties.
1.19Military Leave means leave taken pursuant to the Employer’s military leave policy.
1.20Plan means the DCP Services, LLC Executive Severance Plan.
1.21Plan Sponsor means DCP Services, LLC.
1.22Plan Year means the 12-consecutive-month period beginning each January 1 and ending each December 31.
1.23Release means the separation agreement and general release prepared by and acceptable to the Employer.  The Release, in consideration of the benefits provided under the Plan, is intended to legally bind the Employee and the Employer regarding the termination of the Employee’s Employment with the Employer, require repayment of benefits under the Plan under certain rehire circumstances and, among other things, provide for a full release and waiver by the Employee of all possible claims against the Employer and its Affiliates and all directors, officers, employees, agents, and representatives of the Employer and its Affiliates, including, but not limited to, claims arising out of the Employee’s Employment with, and termination of Employment by, the Employer.
1.24Service Date means the base date used by the Employer to determine the Employee’s service anniversary under the service award program, determined in the sole discretion of the Employer.
1.25Severance Pay means the benefit payable to an Eligible Employee under this Plan, calculated under Section 3.1.
1.26Sick Leave means leave taken for which the Employee receives benefits under the sick leave policy of the Employer.
1.27STD Leave means leave taken for which the Employee receives benefits under the short-term disability salary continuation policy of the Employer.
1.28Subsidy Period means, for each Employee, the closest number of whole months that corresponds to the period of Base Pay or Weekly Pay, as applicable, received as Severance Pay under Section 3.1.  In determining the closest number of whole months for Severance Pay expressed in Weekly Pay, the number of weeks of Weekly Pay will be converted to months by dividing the total number of weeks of Weekly Pay by four and one-third (4-1/3) and rounding to the closest whole month. 
1.29Termination Date means the last date on which an Employee performs an Hour of Service.
1.30Weekly Pay means the amount of the Employee’s Base Pay divided by 52.
1.31Year of Service means a one-year period, beginning on an Employee’s Service Date and each anniversary of such Service Date thereafter, during which period the Employee is engaged in continuous Employment.  Fractional or partial Years of Service will be disregarded, and no period of time will count towards more than one Year of Service.  
                    
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ARTICLE 2. 
ELIGIBILITY
2.1.Eligibility Requirements for Severance Pay.  An Eligible Employee becomes a participant under the Plan if such Employee meets each of the following requirements:
(a)the Employee is notified that his or her Employment with the Employer is subsequently terminated, and such Employee is specifically notified that such termination is eligible for Severance Pay if all requirements under this Section 2.1 are satisfied;
(b)the Employee is an Active Employee as of the date of notification and continues to work productively for the Employer, to the extent required, as determined in the sole discretion of the Employer, until the Employer determines that the Employee’s services are no longer necessary;
(c)the Employee’s Termination Date is on or after the Effective Date of this Plan;
(d)the Employee executes a Release, as provided in Section 4.1 within the prescribed period; and
(e)the Employee is not subsequently employed by the Employer or an Affiliate within 30 days following the Employee’s Termination Date.
2.2.Ineligible Terminations.  An Employee who is otherwise eligible for any benefits under this Plan will not receive such benefits if the Employee, as determined by the Employer in its absolute discretion —
(a)unilaterally and voluntarily resigns;
(b)is terminated for Cause; or
(c)leaves the Employer’s employment for any reason (including death, disability, disappearance or presumed death) before the requirements of Section 2.1 are satisfied.

                    
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ARTICLE 3.
SEVERANCE BENEFITS
3.1.Severance Pay.  An Eligible Employee who complies with the terms of this Plan, becomes a participant in the Plan pursuant to Section 2.1, and signs, delivers, complies with and does not timely revoke the Release will be eligible to receive Severance Pay, less applicable taxes and withholding, in the amount set forth under subparagraphs (a) through (d) below based upon such Employee’s Employment Classification:
(a)Chief Executive Officer.  An Eligible Employee with an Employment Classification of Chief Executive Officer will be paid Severance Pay in accordance with Schedule A.
(b)Executive Committee.  An Eligible Employee with an Employment Classification of Executive Committee will be paid Severance Pay in accordance with Schedule B.
(c)Vice President.  An Eligible Employee with an Employment Classification of Vice President will be paid Severance Pay in accordance with Schedule C.
(d)Director.  An Eligible Employee with an Employment Classification of Director will be paid Severance Pay in accordance with Schedule D.
3.2.Timing and Form of Payment.  If all conditions for receipt of Severance Pay are satisfied, payment of an Eligible Employee’s Severance Pay will be made in a single cash lump sum payment as soon as administratively feasible following the end of any applicable Release rescission period, provided that, payment will be made within 74 days of the Employee’s Termination Date.  The Employer will withhold any amounts required by the federal, state, or local law.
3.3.Outplacement Assistance.  The Employer may, in its discretion, offer an Eligible Employee who satisfies all the conditions for receipt of Severance Pay outplacement counseling assistance selected by the Employer.  Such program may vary by Eligible Employee as determined by the Employer.  In no event will outplacement services be provided in excess of 12 months to an Eligible Employee.  An Eligible Employee may be provided outplacement counseling assistance upon notification of termination of employment, but the provision of such outplacement assistance does not entitle an Eligible Employee to continue such services under this Section 3.3, if such Employee does not satisfy all conditions for receipt of Severance Pay.
3.4.Subsidized COBRA Coverage.  If all conditions for receipt of Severance Pay are satisfied and if an Eligible Severance Employee elects continuation coverage under COBRA, the Employer will contribute an amount towards COBRA coverage such that the cost of Employee’s health coverage following the Termination Date will be the same as the cost of such Employee’s health coverage in place immediately prior to the Termination Date.   The Employer will provide such amount on a monthly basis until the end of the Subsidy Period or, if earlier, the first to occur of the following: (1) such Employee becomes eligible to receive group health insurance from another employer’s group health plan or spouse’s employer plan, (2) such Employee’s COBRA coverage is terminated for any reason (including by reason of the Employee becoming entitled to Medicare) regardless of whether coverage is continued by a separate qualified beneficiary, or (3) the expiration of the applicable maximum COBRA period for the Employee (generally, the maximum COBRA period is 18 months but in cases of disability may be extended to 29 months).  If such Employee is determined by the Employer to be a “highly compensated individual” under 
                    
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Code Section 105(h), such contributions by the Employer will be made on an after-tax basis and will be grossed up for applicable tax withholding.  The determination of any gross-up required by this Section 3.4 will be calculated and determined in the Employer’s sole discretion.  To the extent COBRA coverage premium payments have been made on behalf of an Eligible Employee before all conditions for receipt of Severance Pay have been satisfied and such conditions are not thereafter satisfied, such Employee will reimburse Employer for any amounts paid by Employer for COBRA coverage.
                    
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ARTICLE 4.
CONDITIONS FOR RECEIPT OF SEVERANCE PAY
4.1.Execution of Release.  In consideration for and as a pre-condition of receiving Severance Pay and benefits described under Sections 3.1, 3.3, and 3.4, an Employee must execute a Release in a form provided by the Employer.  The Release must be voluntarily executed by the Employee, and the Employee must not revoke such Release within any applicable revocation period that may be required by law from time to time.  The Release must be executed by the Employee within forty-five (45) days, or such shorter period provided by the Release, following the Employee’s Termination Date.   
4.2.Confidentiality and Non-Disclosure Agreement.  In consideration for and as a pre-condition of receiving Severance Pay and benefits described under Sections 3.1, 3.3, and 3.4, the Employer may require (either as part of the Release or otherwise) an Employee to execute a confidentiality and non-disclosure agreement in a form approved by the Employer.  A confidentiality and non-disclosure agreement, if any, must be voluntarily executed by the Employee within forty-five (45) days, or such shorter period provided by such agreement, following the Employee’s Termination Date.  If an Employee executed a similar agreement on the date the Employee was hired or at any time during Employment, by accepting Severance Pay under this Plan, such Employee agrees that the previously executed confidentiality and/or non-disclosure agreement will survive the Employee’s termination of employment with the Employer.
4.3.Additional Conditions.  The Employer may also require an Eligible Employee, as conditions precedent to receiving Severance Pay and any other benefits under the Plan, to satisfy any working or scheduling conditions required by the Employer.
4.4.Offset for Money Owed to the Employer.  An Employee’s benefit under this Plan will be reduced by any amount that the Employee owes to the Employer on his or her Termination Date, and by accepting and executing the Release, Employee consents to such offset.
4.5.Other Benefits.  The benefits of an Employee under any other Employer benefit plan or program are governed solely by the terms of those plans and programs and will neither be affected by nor affect payments under this Plan.
4.6.Payments to Estate.  If an Eligible Employee who has become a participant in the Plan pursuant to Section 2.1 dies before receiving the applicable Severance Pay benefit to which he or she is entitled under the Plan, the benefit will be paid to the Employee’s estate.  If such Employee has not executed a Release before death, the Employee’s estate will not be entitled to any Severance Pay.  Notwithstanding the foregoing, the Employer may, in its discretion, waive conditions for receipt of the benefit, including the requirement for a Release.
4.7.Coordination with Short-Term Incentive Plan.  Notwithstanding Section 4.5, if an Eligible Employee has satisfied all conditions for receipt of Severance Pay, a termination of such Employee’s Employment will be considered a qualifying layoff under the DCP Services, LLC Short-Term Incentive Plan (effective January 1, 2012) (“STIP”) and any successor plans (provided such Employee is a participant in such plan as of the Termination Date).  Unless provided otherwise in the applicable Release, a pro-rata portion of any payment under the STIP that would otherwise be forfeited due to termination of employment will be paid as a result of a qualifying layoff provided that such payment is otherwise due under the terms of the STIP (e.g., performance goals have been met).  Any pro-rata portion payable will be determined by 
                    
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multiplying eligible base and overtime pay received in the year by the STIP target and performance factors.  Any such pro-rata payment due will be made at the same time and in the same manner as other payments made under the STIP.    
4.8.Coordination with Long-Term Incentive Plan.  Notwithstanding Section 4.5, if an Eligible Employee has satisfied all conditions for receipt of Severance Pay, a termination of such Employee’s Employment will be considered a layoff (if applicable) under the DCP Midstream, LP 2016 Long-Term Incentive Plan (effective April 28, 2016), the DCP Services, LLC Long-Term Incentive Plan (effective January 1, 2008), the DCP Midstream, LP 2012 Long-Term Incentive Plan (effective February 15, 2012), and any successor plans, or, if applicable, any similar plans (provided such Employee is a participant in such plans as of the Termination Date).
4.9.Repayment of Benefit.  
(a)Benefit Calculated by Reference to Weekly Pay. If an Employee received Severance Pay under the Plan calculated by reference to Weekly Pay and is reemployed by the Employer during the period beginning on the Employee’s Termination Date and equaling the number of weeks associated with the number of weeks of Weekly Pay used to calculate such Employee’s Severance Pay, the Employee must repay the portion of Severance Pay relating to the number of full weeks of such period that have not expired as of the date of such Employee’s reemployment.  For example, if an Employee has a Termination Date of March 1, is entitled to Severance Pay equal to 10 weeks of Weekly Pay and is reemployed on March 10, then the Employee is required to repay 80% of the Severance Pay received.  The terms of such repayment will be set in the Employer’s sole discretion.
(b)Benefit Calculated by Reference to Base Pay.  If an Employee received Severance Pay under the Plan calculated by reference to Base Pay and is reemployed by the Employer during the period beginning on the Employee’s Termination Date and equaling the number of months associated with the number of months of Base Pay used to calculate such Employee’s Severance Pay, the Employee must repay the portion of Severance Pay relating to the number of full months of such period that have not expired as of the date of such Employee’s reemployment.  For example, if an Employee has a Termination Date of March 1, is entitled to Severance Pay equal to one and one-half (1-1/2) times Base Pay, and is reemployed on November 10, then the Employee is required to repay 50% of the Severance Pay received.  The terms of such repayment will be set in the Employer’s sole discretion.

                    
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ARTICLE 5.
ADMINISTRATION
5.1Administration and Interpretation of the Plan.  The Plan Sponsor is the Administrator unless the Plan Sponsor appoints an individual or a committee as Administrator in writing.  If the Plan Sponsor appoints a committee to serve as the Administrator, the committee must consist of not less than three members.  Any member of the committee may resign at any time by giving notice to the Plan Sponsor.  Any resignation will take effect at the date of receipt of such notice (or at any later date specified in the notice) and will be deemed to occur upon termination of the member’s employment.  No member of the committee may receive any compensation for his or her services as a member of the committee.  A majority of the members of the committee will constitute a quorum for the transaction of business.  All resolutions or other actions taken by the committee will require the written approval or affirmative vote of a majority of the members of the committee.  The Plan Sponsor is entitled to remove the Administrator or committee member at any time, with or without cause.  The Administrator has all powers necessary or convenient to administer the Plan, including, in addition to such other powers as the law may provide, the following:
(a)all powers to administer the Plan, within its discretion, including but not limited to the power to establish rules and procedures for the purpose of administration of this Plan;
(b)total and complete discretion to interpret the Plan and to determine all questions arising in the administration, interpretation and application of the Plan, including the power to construe and interpret the Plan; to decide all questions relating to an individual’s eligibility for benefits and the amounts thereof; to make such adjustments which it deems necessary or desirable to correct any arithmetical or accounting errors; to determine the amount, form and timing of any distribution to be made hereunder;
(c)to increase the amount of benefits that would otherwise be provided under the Plan as it deems desirable and to subject such additional benefit to the requirements and conditions described herein;  
(d)to correct any defect, supply any omission or reconcile any inconsistency in such manner and to such extent as the Administrator deems necessary to carry out the purposes of this Plan;
(e)exclusive fact finder discretionary authority to decide all facts relevant to the determination of eligibility for benefits; discretion to make factual determinations as well as decisions and determinations relating to the amount and manner of the distribution of benefits; and in making such decisions, be entitled to, but need not rely upon, information supplied by an Employee or representative thereof; and
(f)the power to appoint such agents, attorneys, accountants, and consultants and any other person required for proper administration of the Plan.
The decisions of the Administrator are conclusive and binding upon all persons having or claiming to have any right or interest in or under the Plan, and no such decision may be modified under judicial review unless such decision is proven to be arbitrary or capricious.
                    
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5.2Information.  The Administrator may require that each Employee supply any information and execute any documents necessary under this Plan.
5.3Fiduciary Provisions.  The Administrator is a “named fiduciary” under the Plan.  Any person or group of persons may serve in more than one fiduciary capacity with respect to the Plan.  All fiduciaries under the Plan must discharge their duties with respect to the Plan solely in the interests of the Employees and their beneficiaries and with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of alike character and with like aims.  No fiduciary under the Plan will be liable for an act or omission of another person in carrying out any fiduciary responsibility where such fiduciary responsibility is allocated to such other person by or pursuant to the Plan.
5.4Indemnification.  The Employer will, to the fullest extent permitted by law, indemnify each director, officer, or employee of the Employer (including the heirs, executors, administrators, and other personal representatives of such person) and the Administrator against expenses (including attorneys’ fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by a person covered under this indemnification clause in connection with any threatened, pending, or actual suit, action, or proceeding (whether civil, criminal, administrative, or investigative in nature, or otherwise) in which the person may be involved by reason of the fact that the person is or was serving the Plan in any capacity at the request of the Employer.
5.5Expenses of Administration.  Any expense incurred by the Employer or the Administrator relative to the administration of the Plan will be paid by the Employer.
5.6Accounts and Records.  The Administrator will maintain records concerning the eligibility of Employees and itemize and separately identify the benefits distributed under the Plan.
5.7Notification of Employees.  The Administrator will communicate in writing to all Employees (whom could become a participant under the Plan pursuant to Section 2.1) a summary of the terms and conditions of the Plan, which in the Administrator’s discretion, may be a copy of the Plan.
5.8Claims Procedure.
(a)Filing a Claim for Benefits.  If an Employee or former Employee believes that the Employer is obligated under the terms of the Plan to pay a benefit, the Employee or former Employee (hereinafter referred to as the “claimant”) must deliver a written request to the Administrator, or such person or office as the Administrator designates for the processing of claims.  Upon receipt of such request, the Administrator may require the claimant to complete such forms and provide such additional information as may be reasonably necessary to establish the claimant’s right to benefits under the Plan.  A claim is deemed filed upon receipt by the Administrator.
(b)Notification to Claimant of Decision.  The Administrator will furnish to the claimant a notice of the decision within 90 days after receipt of the claim.  If special circumstances require more than 90 days to process the claim, this period may be extended for up to an additional 90 days by giving written notice to the claimant before the end of the initial 90-day period stating the special circumstances requiring the extension and the date by which a final decision is expected.  Failure to provide a notice of decision within the time 
                    
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specified will constitute a denial of the claim, and the claimant will be entitled to require a review of the denial under the review procedures.
The notice to be provided to every claimant who is denied a claim for benefits must be in writing and must set forth, in a manner calculated to be understood by the claimant, the following:
(1)the specific reason or reasons for the denial;
(2)specific reference to pertinent Plan provisions on which the denial is based;
(3)a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and
(4)an explanation of the Plan’s claims review procedure describing the steps to be taken by a claimant who wishes to submit his or her claim for review, including a statement of the claimant’s right to bring a civil action pursuant to ERISA Section 502.
(c)Review Procedure.  The purpose of the review procedure is to provide a procedure by which an Employee or former Employee claiming benefits may have a reasonable opportunity to appeal a denial of a claim to the Administrator for a full and fair review as required by ERISA Section 503.  To accomplish that purpose, the claimant or his or her duly authorized representative may request a review upon written application to the Administrator, review pertinent Plan documents and submit issues and comments in writing.  A claimant (or his or her duly authorized representative) must request a review by filing a written application for review with the Administrator at any time within 60 days after receipt by the claimant of written notice of the denial of his or her claim.
The decision on review will be made by the Administrator, who may in his, her, or its discretion hold a hearing on the denied claim.  The Administrator will make its decision promptly, which will ordinarily be not later than 60 days after the Plan’s receipt of the request for review, unless special circumstances (such as the need to hold a hearing) require an extension of time for processing.  In that case a decision will be rendered as soon as possible, but not later than 120 days after receipt of the request for review.  If an extension of time is required due to special circumstances, written notice of the extension will be furnished to the claimant prior to the time the extension commences.  The decision on review must be in writing and must include specific reasons for the decision (written in a manner calculated to be understood by the claimant), as well as specific references to the pertinent Plan provisions on which the decision is based.

                    
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ARTICLE 6. 
GENERAL PROVISIONS
6.1Entire Understanding.  This Plan constitutes the entire commitment of the Employer with respect to Eligible Employees and the matters set forth in this Plan and supersedes any and all separation or severance plans and programs with respect to such Employees which may have been maintained previously by the Employer.  Further, the Plan supersedes any and all negotiations, representations, warranties or agreements between the Employer and such Employees, unless an Employee has an employment agreement with the Employer governing the terms of such Employee’s termination of employment that is in effect on the date of his or her termination.
6.2Payments from the Plan.  Payments from the Plan will be paid out of the general assets of the Employer at the time payments are required.  The Employer is not required to set aside amounts in advance of the date payments are required.
6.3Rights Against Employer.  Neither the establishment of the Plan, nor any modification of the Plan, nor any distributions from the Plan may be construed as giving to any current or former Employee or beneficiary any legal or equitable rights against the Employer, its shareholders, directors, or officers, as such, or as giving any person the right to be retained in the employ of the Employer.
6.4Amendment; Termination.  The Plan Sponsor reserves the right to amend, modify or terminate this Plan at any time for any reason, which may result in the termination or modification of coverage or benefits under this Plan.  Any such amendment or termination must be set forth in writing.  
6.5Severability.  A determination that any provision of this Plan is prohibited by law or unenforceable will not affect the validity or enforceability of any other provision of this Plan.
6.6Non-Assignable.  Benefits payable under this Plan are not subject to the claims of any creditor of any Employee.  Except as provided in Section 4.6, an Eligible Employee has no rights under this Plan to alienate, pledge, encumber or assign any benefit to which such Employee may become entitled.  
6.7Governing Law.  To the extent not pre-empted by federal law, this Plan will be governed in all respects by the laws of the State of Colorado without giving effect to its conflicts or choice of law rules.  
6.8Forum and Waiver of Trial by Jury.  Any legal suit, action or proceeding arising out of or relating to this Plan shall be instituted in the federal courts of the United States of America or the courts of the State of Colorado in each case located in the City of Denver and County of Denver, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.  The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  Each party acknowledges and agrees that any controversy which may arise out of or relate to this Plan is likely to involve complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Plan.
                    
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6.9Code Section 409A.  All benefits provided under this Plan are intended to be exempt from Code Section 409A; however, to the extent Code Section 409A applies, the Plan will be interpreted to comply to the maximum extent permitted.  Notwithstanding, the Plan Sponsor makes no representation that this Plan complies with Code Section 409A and has no liability to Participants for any failure to comply with Code Section 409A. For purposes of Code Section 409A, all benefits hereunder are designated as separate payments.  
* * *

                    
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Rights of Plan Participants
ERISA provides that all plan participants will be entitled to the following:
Receive Information About Your Plan and Benefits.
•Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as worksites, all Plan documents governing the Plan and a copy of the latest annual report (Form 5500 Series) if required to be filed by the Plan with the U.S. Department of Labor (available at the Public Disclosure Room of the Employee Benefit Security Administration). 
•Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan and copies of the latest annual report (Form 5500 Series) and an updated summary plan description.  The Plan Administrator may make a reasonable charge for the copies. 
•Receive automatically, claims procedures, to the extent such procedures are changed after distribution of this Plan document.
Prudent Actions by Plan Fiduciaries.  In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan.  The people who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries.  No one, including the Employer, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA.
Enforce Your Rights.  If your claim for a benefit under this Plan is denied or ignored, in whole or in part, you have the right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.  Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request a copy of Plan documents and do not receive them within 30 days, you may file suit in a federal court.  In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.  If it should happen that you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court.  The court will decide who should pay court costs and legal fees.  If you are successful, the court may order the person sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds the claim is frivolous.
Assistance with Your Questions.  If you have any questions about the Plan, you should contact the Plan Administrator.  If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefit Security Administration, U.S. Department of Labor, listed in the telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefit Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.  You may also obtain certain publications about rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefit Security Administration.

                    
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Adopted effective as of February 19, 2020.
DCP SERVICES, LLC
Plan Sponsor
									
	By:		/s/ Brent Backes
	Title:		Group Vice President and General Counsel
	Date:		February 19, 2020

                    
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General Plan Information
						
	Employer and Plan Sponsor	DCP Services, LLC
Attn: Group Vice President and 
Chief Human Resources Officer
Plan Sponsor, Severance Plan
370 17th Street, Suite 2500
Denver, Colorado 80202
(303) 605-1844

	Plan Sponsor’s Employer Identification Number (“EIN”)	30-0870571
	Plan Name	DCP Services, LLC Executive Severance Plan is a component program under the DCP Services, LLC Welfare Plan
	Plan Identification Number	506
	Plan Structure	The Plan is an unfunded welfare benefit plan providing severance benefits.
	Type of Funding	Benefits are paid from the general assets of the Employer.
	Plan Year	January 1 – December 31
	Plan Administrator	DCP Services, LLC
Attn: Group Vice President and 
Chief Human Resources Officer
Plan Administrator, Severance Plan
370 17th Street, Suite 2500
Denver, Colorado 80202
(303) 605-1844

	THE PLAN ADMINISTRATOR IS RESPONSIBLE FOR PROVIDING YOU WITH INFORMATION REGARDING YOUR RIGHTS AND BENEFITS UNDER THE PLAN, FILING VARIOUS REPORTS AND FORMS WITH THE DEPARTMENT OF LABOR AND THE INTERNAL REVENUE SERVICE AND MAKING ALL DISCRETIONARY DETERMINATIONS UNDER THE PLAN. 	
	Agent for Service of Legal Process	DCP Services, LLC
Attn: General Counsel
Agent for Service of Legal Process, Severance Plan
370 17th Street, Suite 2500
Denver, Colorado 80202
(303) 605-1730

                    
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SCHEDULE A 
Severance Pay for Chief Executive Officer
			
	

The Chief Executive Officer (“CEO”) is eligible for Severance Pay in an amount equal to two (2) times Base Pay. Additionally, any payment due to the CEO under the STIP and Section 4.7 will not be reduced in a pro-rata manner as described under Section 4.7.

                    
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Schedule A          2/19/2020   A- 1
Prepared by Holland & Hart LLP

SCHEDULE B
Severance Pay for Executive Committee
			
	

A member of the Executive Committee is eligible for Severance Pay in an amount equal to one and one-half (1.5) times Base Pay.  Additionally, any pro-rata payment due under the STIP and Section 4.7 that would be reduced in the pro-rata manner described under Section 4.7 to below one-half of the amount otherwise payable under the STIP will instead be reduced to one-half of the amount otherwise payable under the STIP.

                    
DCP Services, LLC Executive Severance Plan and Summary Plan Description
Schedule B          2/19/2020   B- 1
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SCHEDULE C
Severance Pay for Vice Presidents
			
	

A Vice President is eligible for Severance Pay in an amount equal to one (1) times Base Pay.

                    
DCP Services, LLC Executive Severance Plan and Summary Plan Description
Schedule C          2/19/2020   C- 1
Prepared by Holland & Hart LLP

SCHEDULE D
Severance Pay for Directors
			
	

A Director is eligible for Severance Pay in an amount equal to eight weeks of Weekly Pay plus an additional two weeks of Weekly Pay for each Year of Service completed by such Employee; however, the total number of weeks of Weekly Pay under this calculation will not exceed 39 weeks.

                    
DCP Services, LLC Executive Severance Plan and Summary Plan Description
Schedule D          2/19/2020   D- 1
Prepared by Holland & Hart LLPExhibit

EX 10.1

DIEBOLD NIXDORF, INCORPORATED 
2017 EQUITY AND PERFORMANCE INCENTIVE PLAN 
AMENDED MAY 1, 2020 
ARTICLE I 
ESTABLISHMENT AND PURPOSE 
1.1    Purpose. The purpose of this Equity and Performance Incentive Plan (this “Plan”) is to attract and retain directors, officers and employees for Diebold Nixdorf, Incorporated (the “Company”) and its Subsidiaries and to provide to such persons incentives and rewards for performance. 
1.2    Participation. Persons eligible to participate in this Plan include Employees and Directors. Subject to the provisions of this Plan, the Committee may from time to time select those Employees and Directors to whom Awards shall be granted and shall determine the nature and amount of those Awards. No Employee or Director shall have the right to be granted an Award. 
1.3    Duration of the Plan. This Plan shall become effective on the date that it is approved by the Company’s shareholders (the “Effective Date”) and shall remain in effect, subject to the right of the Board to terminate this Plan at any time pursuant to Section 15.1, until all Shares subject to it have been purchased or acquired. However, in no event shall any Award be granted under this Plan on or after the tenth (10th) anniversary of the Effective Date. 
ARTICLE II 
DEFINITIONS 
As used in this Plan, 
2.1    “Annual Meeting” means the annual meeting of shareholders of the Company. 
2.2    “Award” means any right granted under this Plan, including an Option, a Stock Appreciation Right, a Restricted Share award, a Restricted Stock Unit award, a Performance Share or a Performance Unit award, or an Other Share-Based award. 
2.3    “Award Agreement” means an agreement, certificate, resolution or other type or form of writing or other evidence approved by the Committee which sets forth the terms and conditions of an individual Award granted under this Plan which may, in the discretion of the Company, be transmitted electronically to the Participant. Each Award Agreement shall be subject to the terms and conditions of this Plan. 
2.4    “Board” means the Board of Directors of the Company. 
2.5    “Business Combination” has the meaning provided in Section 2.6(c) of this Plan. 
2.6    “Change in Control” means the occurrence of any of the following: 
(a)    The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty percent (30%) or more of either: (A) the then-outstanding shares of common stock of the Company (the “Company Common Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of Directors (“Voting Stock”); provided, however, that for purposes of this subsection (a), the following acquisitions shall not constitute a Change in Control: (1) any acquisition directly from the Company, (2) any acquisition by the Company, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, or (4) any acquisition by any Person pursuant to a transaction which complies with clauses (A), (B) and (C) of subsection (c) of this Section 2.6; or 
(b)    Individuals who, as of the date hereof, constitute the Board (as modified by this subsection (b), the “Incumbent Board”), cease for any reason (other than death or disability) to constitute at least a majority of the Board; provided, however, that any individual becoming a Director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the Directors then comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for Director, without objection to such nomination) shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or 
(c)    Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Company Common Stock and Voting Stock immediately prior to such Business Combination beneficially own, directly or indirectly, more than fifty percent (50%) of, respectively, the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially 

EX 10.1

all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions relative to each other as their ownership, immediately prior to such Business Combination, of the Company Common Stock and Voting Stock, as the case may be, (B) no Person (excluding any entity resulting from such Business Combination or any employee benefit plan (or related trust) sponsored or maintained by the Company or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, thirty percent (30%) or more of, respectively, the then-outstanding shares of common stock of the entity resulting from such Business Combination, or the combined voting power of the then-outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board providing for such Business Combination; or 
(d)    Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
A “Change in Control” will be deemed to occur (i) with respect to a Change in Control pursuant to subsection (a) above, on the date that any Person becomes the beneficial owner of thirty percent (30%) or more of either the Company Common Stock or Voting Stock, (ii) with respect to a Change in Control pursuant to subsection (b) above, on the date the members of the Incumbent Board first cease for any reason (other than death or disability) to constitute at least a majority of the Board, (iii) with respect to a Change in Control pursuant to subsection (c) above, on the date the applicable transaction closes and (iv) with respect to a Change in Control pursuant to subsection (d) above, on the date of the shareholder approval. Notwithstanding the foregoing provisions, a “Change in Control” shall not be deemed to have occurred for purposes of this Plan solely because of a change in control of any Subsidiary by which the Participant may be employed. 
2.7    “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
2.8    “Committee” has the meaning provided in Section 14.1 of this Plan. 
2.9    “Common Shares” means shares of common stock, $1.25 par value per share, of the Company or any security into which such Common Shares may be changed by reason of any transaction or event of the type referred to in Article XI of this Plan. 
2.10    “Company Common Stock” has the meaning provided in Section 2.6(a) of this Plan. 
2.11    “Date of Grant” means the date on which the Committee adopts a resolution, or takes other appropriate action, expressly granting an Award to a Participant that specifies the key terms and conditions of the Award or, if a later date is set forth in such resolution, then such later date as is set forth therein. 
2.12    “Designated Subsidiary” means a Subsidiary that is (i) not a corporation or (ii) a corporation in which at the time the Company owns or controls, directly or indirectly, less than eighty percent (80%) of the total combined voting power represented by all classes of stock issued by such corporation. 
2.13    “Detrimental Activity” means any of the following: 
(a)    Engaging in any activity, as an employee, principal, agent or consultant for another entity, and in a capacity, that directly competes with the Company or any Subsidiary in any actual product, service, or business activity (or in any product, service, or business activity which was under active development while the Participant was employed by the Company if such development is 
being actively pursued by the Company during the one (1) year period following the termination of the Participant’s employment by the Company or a Subsidiary) for which the Participant has had any direct responsibility and direct involvement during the last two (2) years of his or her employment with the Company or a Subsidiary, in any territory in which the Company or a Subsidiary manufactures, sells, markets, services, or installs such product or service or engages in such business activity. 
(b)    Soliciting any Employee to terminate his or her employment with the Company or a Subsidiary. 
(c)    The disclosure to anyone outside of the Company or a Subsidiary, or the use in other than the Company or a Subsidiary’s business, without prior written authorization from the Company, of any confidential, proprietary or trade secret information or material relating to the business of the Company and its Subsidiaries, acquired by the Participant during his or her employment with the Company or its Subsidiaries or while acting as a consultant for the Company or its Subsidiaries thereafter; provided, however, that nothing in this Plan limits a Participant’s ability to file a charge or complaint or to communicate, including by providing documents or other information without notice to the Company, with the Securities and Exchange Commission or any other governmental agency or commission (“Government Agency”) or limits a Participant’s right to receive an award for information provided to any Government Agency. 
(d)    The failure or refusal to disclose promptly and to assign to the Company upon request all right, title and interest in any invention or idea, patentable or not, made or conceived by the Participant during the Participant’s employment by the Company or any Subsidiary, relating in any manner to the actual or anticipated business, research or development work of the Company or any Subsidiary or the failure or refusal to do anything reasonably necessary to enable the Company or any Subsidiary to secure a patent where appropriate in the United States and in other countries. 
(e)    Activity that results in “termination for cause,” as such term is defined in the applicable Award Agreement. 
2.14    “Director” means a director of the Company. 

EX 10.1

2.15    “Disability” means totally and permanently disabled as from time to time defined under the long-term disability plan of the Company or a Subsidiary applicable to the Participant, or, in the case where there is no applicable plan, permanent and total disability as defined in Section 22(e)(3) of the Code (or any successor provision); provided, however, that to the extent an amount payable under this Plan which constitutes deferred compensation subject to Section 409A of the Code would become payable upon Disability, “Disability” for purposes of such payment shall not be deemed to have occurred unless the disability also satisfies the requirements of treasury regulation 1.409A-3. 
2.16    “EBIT” has the meaning provided in Section 2.24(c) of this Plan. 
2.17    “EBITDA” has the meaning provided in Section 2.24(c) of this Plan. 
2.18    “Effective Date” has the meaning provided in Section 1.3 of this Plan. 
2.19    “Employee” means an employee of the Company or any of its Subsidiaries, including an employee who is an officer or a Director. 
2.20    “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, as such law, rules and regulations may be amended from time to time. 
2.21    “Exercise Price” means, with respect to an Option or Stock Appreciation Right, the price at which a Common Share may be purchased upon exercise thereof. 
2.22    “Fair Market Value” means, as of any particular date, the closing price of a Common Share as reported for that date on the New York Stock Exchange or, if the Common Shares are not then listed on the New York Stock Exchange, on any other national securities exchange on which the Common Shares are listed, or if there are no sales on such date, on the next preceding trading day during which a sale occurred. If there is no regular public trading market for the Common Shares, then the Fair Market Value shall be the fair market value as determined in good faith by the Board. 
2.23    “Free Standing Rights” has the meaning provided in Section 5.1 of this Plan. 
2.24    “Government Agency” has the meaning provided in Section 2.13(c) of this Plan. 
 
2.25    “Incentive Stock Option” means an Option intended to qualify as an incentive stock option under Section 422 of the Code or any successor provision. 
2.26    “Incumbent Board” has the meaning provided in Section 2.6(b) of this Plan. 
2.27    “Management Goals” means, for a Performance Period, the one or more goals established by the Committee, which, for any Award shall be based only upon the Management Objectives. 
(a)    The Committee may provide that any evaluation of Management Goals shall include or exclude any of the following items: (i) asset write-downs; (ii) litigation or claim judgments or settlements; (iii) the effect of changes in tax laws, accounting principles, regulations, or other laws or regulations affecting reported results; (iv) any reorganization and restructuring programs; (v) acquisitions or divestitures; (vi) unusual, nonrecurring or extraordinary items identified in the Company’s audited financial statements, including footnotes, or in management’s discussion and analysis in the Company’s annual report; (vii) foreign exchange gains and losses; (viii) change in the Company’s fiscal year; and (ix) any other specific unusual or nonrecurring events, or objectively determinable category thereof. 
(b)    If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company, or the manner in which it conducts its business, or other events or circumstances render the Management Goals unsuitable, the Committee may in its discretion modify such Management Goals or the related minimum acceptable level of achievement, in whole or in part, as the Committee deems appropriate and equitable. 
2.28    “Management Objectives” means the measurable performance objective or objectives selected by the Committee for purposes of establishing the Management Goal(s) for a Performance Period with respect to any Award under this Plan. The Management Objectives that will be used to establish the Management Goals shall be based on the attainment of specific levels of performance of the Company, a Subsidiary, division, business unit, operational unit, department, region or function within the Company or Subsidiary in which the Participant is employed. The Management Objectives applicable to any Award shall be limited to one or more, or a combination, of the following: 
(a)    Sales, including (i) net sales, (ii) unit sales volume, and (iii) aggregate product price; 
(b)    Share price, including (i) market price per share, and (ii) share price appreciation; 
(c)    Earnings, including (i) earnings per share, reflecting dilution of shares, (ii) gross or pre-tax profits, (iii) post-tax profits, (iv) operating profit, (v) earnings net of or including dividends, (vi) earnings net of or including the after-tax cost of capital, (vii) earnings before (or after) interest and taxes (“EBIT”), (viii) earnings per share from continuing operations, diluted or basic, (ix) earnings before (or after) interest, taxes, depreciation and amortization (“EBITDA”), (x) pre-tax operating earnings after interest and before incentives, service fees and extraordinary or special items, (xi) operating earnings, (xii) growth in earnings or growth in earnings per share, and (xiii) total earnings; 

EX 10.1

(d)    Return on equity, including (i) return on equity, (ii) return on invested capital, (iii) return or net return on assets, (iv) return on net assets, (v) return on gross sales, (vi) return on investment, (vii) return on capital, (viii) return on invested capital, (ix) return on committed capital, (x) financial return ratios, (xi) value of assets, and (xii) change in assets; 
(e)    Cash flow(s), including (i) operating cash flow, (ii) net cash flow, (iii) free cash flow, and (iv) cash flow on investment; 
(f)    Revenue, including (i) gross or net revenue, and (ii) changes in annual revenues; 
(g)    Margins, including (i) adjusted pre-tax margin, and (ii) operating margins; 
(h)    Income, including (i) net income, and (ii) consolidated net income; 
(i)    Economic value added; 
(j)    Costs, including (i) operating or administrative expenses, (ii) operating expenses as a percentage of revenue, (iii) expense or cost levels, (iv) reduction of losses, loss ratios or expense ratios, (v) reduction in fixed costs, (vi) expense reduction levels, (vii) operating cost management, and (viii) cost of capital; 
(k)    Financial ratings, including (i) credit rating, (ii) capital expenditures, (iii) debt, (iv) debt reduction, (v) working capital, (vi) average invested capital, and (vii) attainment of balance sheet or income statement objectives; 
 
(l)    Market or category share, including (i) market share, (ii) volume, (iii) unit sales volume, and (iv) market share or market penetration with respect to specific designated products or product groups and/or specific geographic areas; 
(m)    Shareholder return, including (i) total shareholder return, (ii) shareholder return based on growth measures or the attainment of a specified share price for a specified period of time, and (iii) dividends; and 
(n)    Objective nonfinancial performance criteria measuring either (i) regulatory compliance, (ii) productivity and productivity improvements, (iii) inventory turnover, average inventory turnover or inventory controls, (iv) net asset turnover, (v) customer satisfaction based on specified objective goals or company-sponsored customer surveys, (vi) employee satisfaction based on specified objective goals or company-sponsored employee surveys, (vii) objective employee diversity goals, (viii) employee turnover, (ix) specified objective environmental goals, (x) specified objective social goals, (xi) specified objective goals in corporate ethics and integrity, (xii) specified objective safety goals, (xiii) specified objective business expansion goals or goals relating to acquisitions or divestitures, (xiv) day sales outstanding, and (xv) succession plan development and implementation. 
Any one or more of the Management Objectives may be used on an absolute, relative or comparative basis to measure the performance, as the Committee may deem appropriate, or as compared to the performance of another company or a group of comparable companies, or published or special index that the Committee, in its sole discretion, deems appropriate, including various stock market indices. 
2.29    “Non-Employee Director” means a Director who is a “non-employee director” within the meaning of Rule 16b-3. 
2.30    “Non-qualified Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option. 
2.31    “Option” means an Incentive Stock Option or a Non-qualified Stock Option granted pursuant to Article IV of this Plan. 
2.32    “Other Share-Based Award” means an Award granted pursuant to Article IX, which is payable in, valued in whole or in part by reference to, or otherwise based on or related to Common Shares, excluding any Option, Stock Appreciation Right, Restricted Share, Restricted Stock Unit, Performance Share or Performance Unit. 
2.33    “Participant” means an Employee or Director who has been granted an Award under this Plan. 
2.34    “Performance Period” means the one (1) or more periods of time (which shall not be less than one fiscal quarter in duration) as the Committee may select, over which the attainment of one or more Management Goals will be measured for purposes of determining a Participant’s right to and the payment of an Award subject to such Performance Period. 
2.35    “Performance Share” means a bookkeeping entry that records the equivalent of one (1) Common Share awarded pursuant to Article VIII of this Plan. 
2.36    “Performance Unit” means a bookkeeping entry that records a unit equivalent to $1.25 awarded pursuant to Article VIII of this Plan. 
2.37    “Person” has the meaning provided in Section 2.6(a) of this Plan. 
2.38    “Related Rights” has the meaning provided in Section 5.1 of this Plan. 
2.39    “Restricted Period” has the meaning provided in Section 6.1 of this Plan. 
2.40    “Restricted Shares” means Common Shares granted or sold pursuant to Article VI of this Plan. 

EX 10.1

2.41    “Restricted Stock Unit” means a bookkeeping entry that records the equivalent of one Common Share awarded pursuant to Article VII of this Plan. 
2.42    “Rule l6b-3” means Rule 16b-3 promulgated under the Exchange Act (or any successor rule to Rule 16b-3) as is in effect and may be amended from time to time. 
2.43    “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder, as such law, rules and regulations may be amended from time to time. 
2.44    “Stock Appreciation Right” means a right granted pursuant to Article V of this Plan. 
 
2.45    “Subsidiary” means a corporation, company or other entity (i) more than fifty percent (50%) of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares or securities (as may be the case in a partnership, joint venture or unincorporated association), but more than fifty percent (50%) of whose ownership interests representing the right generally to make decisions for such other entity is, now or hereafter, owned or controlled, directly or indirectly, by the Company except that for purposes of determining whether any person may be a Participant for purposes of a grant of Incentive Stock Options, “Subsidiary” means any corporation which is a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
2.46    “Ten Percent Shareholder” means an employee of the Company, or of a parent or subsidiary corporation within the meaning of Section 424 of the Code, who owns (or is deemed to own pursuant to Section 424(d) of the Code) more than ten percent (10%) of the total combined voting power of all classes of voting stock of the Company, the Company’s parent (if any) or any Subsidiary. 
2.47    “Voting Stock” means at any time, the then-outstanding securities entitled to vote generally in the election of Directors. 
ARTICLE III 
SHARES SUBJECT TO THE PLAN 
3.1    Number of Shares. Subject to adjustment as provided in Article XI of this Plan, the number of Common Shares that may be issued or transferred under this Plan shall not exceed in the aggregate 11,001,117 shares. Such shares may be shares of original issuance or treasury shares or a combination of the foregoing. 
(a)    Common Shares covered by an Award granted under this Plan will not be counted as used unless and until they are actually issued or transferred. 
(b)    If any Award is forfeited, expires, terminates, otherwise lapses or is settled for cash, in whole or in part, without the delivery of Common Shares, then the Common Shares covered by such forfeited, expired, terminated, lapsed or cash-settled Award shall again be available for grant under this Plan. In the event that withholding tax liabilities arising from an Award other than an Option or Stock Appreciation Right are satisfied by the tendering of Common Shares (either actually or by attestation) or by the withholding of Common Shares by the Company, the Common Shares so tendered or withheld shall be added to the Common Shares available for Awards under this Plan. For the avoidance of doubt, the following will not again become available for issuance under this Plan: (i) any Common Shares withheld in respect of taxes upon settlement of an Option or Stock Appreciation Right, (ii) any Common Shares tendered or withheld to pay an Exercise Price, (iii) any Common Shares subject to a Stock Appreciation Right that are not issued in connection with its stock settlement on exercise thereof, and (iv) any Common Shares reacquired by the Company on the open market or otherwise using cash proceeds. 
3.2    Share Limits. Notwithstanding anything in this Article III or elsewhere in this Plan to the contrary, and subject to adjustments as provided in Article XI of this Plan, the limits specified below shall apply to any grants of the following types of Awards: 
(a)    Incentive Stock Options. Notwithstanding any designation of an Option as an Incentive Stock Option in an Award Agreement, to the extent the aggregate Fair Market Value of the Common Shares with respect to which the Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under all plans) exceeds one hundred thousand dollars ($100,000), the portion of the Options falling within such limit shall be Incentive Stock Options and the excess Options shall be treated as Non-qualified Stock Options. For these purposes, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Common Shares shall be determined as of the time the Option was granted. Incentive Stock Options covering no more than 11,001,117 Common Shares may be granted under this Plan. 
(b)    Non-Employee Director Limit. The aggregate dollar value of Awards granted to any non-Employee Director in any calendar year shall not exceed Seven Hundred and Fifty Thousand Dollars ($750,000). The value of the Awards shall be determined based on the Fair Market Value of each Award on the Date of Grant. 
3.3    Minimum Vesting Requirements. Notwithstanding any provision of this Plan to the contrary, on and after the Effective Date, the Committee shall not award more than five percent (5%) of the aggregate number of Common Shares that become available for grant under this Plan as of the Effective Date pursuant to Awards that are solely subject to vesting conditions or performance periods that are less than one (1) year following the Date of Grant of the applicable Award, subject, in each case, to the Committee’s authority under this Plan to vest Awards earlier, as the Committee deems appropriate, upon the occurrence of a Change in Control, in the event of a Participant’s termination of employment or service or otherwise as permitted by this Plan. 

EX 10.1

ARTICLE IV 
OPTIONS 
4.1    Grant of Options. Subject to the limits of Sections 3.2 and 3.3 and the other terms and conditions of this Plan, the Committee may, from time to time and upon such terms and conditions as it may determine, grant Options to purchase Common Shares to Participants. Options granted under this Plan may be (i) Incentive Stock Options, (ii) Non-qualified Stock Options, or (iii) combinations of the foregoing. Incentive Stock Options may only be granted to Participants who meet the definition of “employees” under Section 3401(c) of the Code. Options granted under this Plan may not provide for any dividends or dividend equivalents thereon. Each such grant may utilize any or all of the authorizations, and shall be subject to all of the requirements, contained in the following provisions. 
4.2    Award Agreement. Each Option shall be evidenced by an Award Agreement that shall specify the number of Common Shares covered by the Option, the Exercise Price of the Option, the term of the Option, whether the Option is intended to be an Incentive Stock Option, any conditions to the exercise of the Option, and such other terms and conditions as the Committee, in its discretion, determines and as are consistent with this Plan. 
4.3    Exercise Price. Each grant shall specify an Exercise Price per share, which shall not be less than one hundred percent (100%) of the Fair Market Value on the Date of Grant; provided, however, that a Ten Percent Shareholder shall not be granted an Incentive Stock Option unless the Exercise Price per share is at least one hundred ten percent (110%) of the Fair Market Value on the Date of Grant and the Incentive Stock Option is not exercisable after expiration of five (5) years from the Date of Grant. 
4.4    Exercise and Form of Consideration. To the extent exercisable, Options granted under this Plan shall be exercised by delivery of a written notice to the Company setting forth the number of Common Shares with respect to which the Option is being exercised, accompanied by full payment of the applicable Exercise Price. The Committee shall determine the acceptable form of consideration for the Exercise Price, including the method of payment, and for an Incentive Stock Option that determination shall be made at the time of grant. Consideration may consist of: (a) cash; (b) checks; (c) Common Shares, provided that such Common Shares have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price and provided that accepting the Common Shares does not result in any adverse accounting consequences to the Company; (d) consideration received by the Company under a broker-assisted (or other) cashless exercise program implemented by the Company in connection with this Plan; (e) by net exercise; (f) other consideration and method of payment to the extent permitted by applicable law and approved by the Committee; or (g) any combination of the foregoing methods. 
4.5    Related Rights. The exercise of an Option shall result in the cancellation on a share-for-share basis of any Related Rights authorized under Article V of this Plan. 
4.6    Minimum Vesting Requirements. Subject to the exceptions stated in Section 3.3, no Award under this Article IV shall vest sooner than twelve (12) months from the Date of Grant. 
4.7    Maximum Term. No Option shall be exercisable more than 10 years from the Date of Grant. 
ARTICLE V 
STOCK APPRECIATION RIGHTS 
5.1    Grant of Stock Appreciation Rights. Subject to the limits of Sections 3.2 and 3.3 and the other terms and conditions of this Plan, the Committee may, from time to time and upon such terms and conditions as it may determine, grant Stock Appreciation Rights alone (“Free Standing Rights”) or in tandem with an Option granted under this Plan (“Related Rights”). Any Related Right that relates to a Non-qualified Stock Option may be granted at the same time the Option is granted or at any time thereafter but before the exercise or expiration of the Option. Any Related Right that relates to an Incentive Stock Option must be granted at the same time the Incentive Stock Option is granted. Stock Appreciation Rights granted under this Plan may not provide for any dividends or dividend equivalents thereon. Each such grant may utilize any or all of the authorizations, and shall be subject to all of the requirements, contained in the following provisions. 
 
5.2    Award Agreement. Each Stock Appreciation Right shall be evidenced by an Award Agreement that shall describe such Stock Appreciation Right, the Exercise Price of the Stock Appreciation Right, the term of the Stock Appreciation Right, any conditions to the exercise of such Stock Appreciation Right, identify any related Option, and such other terms and conditions as the Committee, in its discretion, determines and as are consistent with this Plan. 
5.3    Exercise Price. Each grant shall specify an Exercise Price for a Free Standing Right, which shall not be less than one hundred percent (100%) of the Fair Market Value on the Date of Grant. A Related Right shall have the same Exercise Price as the related Option, and shall be exercisable only to the same extent as the related Option. 
5.4    Exercise and Form of Consideration. To the extent exercisable, Stock Appreciate Rights granted under this Plan shall be exercised by delivery of a written notice to the Company setting forth the number of Common Shares with respect to which the Stock Appreciation Right is being exercised, accompanied by full payment of the applicable Exercise Price. The Committee shall determine the acceptable form of consideration for the Exercise Price, including the method of payment. Consideration may consist of: (a) cash; (b) checks; (c) Common Shares, provided that such Common Shares have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price and provided that accepting the Common Shares does not result in any adverse accounting 

EX 10.1

consequences to the Company; (d) consideration received by the Company under a broker-assisted (or other) cashless exercise program implemented by the Company in connection with this Plan; (e) by net exercise; (f) other consideration and method of payment to the extent permitted by applicable law and approved by the Committee; or (g) any combination of the foregoing methods. 
5.5    Payment. Upon exercise of a Stock Appreciation Right, the Participant shall be entitled to receive from the Company an amount equal to the number of Common Shares subject to the Stock Appreciation Right that is being exercised multiplied by the excess of the (i) Fair Market Value of a Common Share on the date the Award is exercised, over (ii) the Exercise Price specified in the Stock Appreciation Right or related Option. The grant shall specify whether the amount payable by the Company on exercise of the Stock Appreciation Right shall be paid in cash, in Common Shares or in any combination thereof and may either grant to the Participant or retain in the Committee the right to elect among those alternatives. Any grant may specify that the amount payable on exercise of a Stock Appreciation Right may not exceed a maximum specified by the Committee at the Date of Grant. 
5.6    Minimum Vesting Requirements. Subject to the exceptions stated in Section 3.3, no Award under this Article V shall vest sooner than twelve (12) months from the Date of Grant. 
5.7    Maximum Term. No Stock Appreciation Right shall be exercisable more than ten (10) years from the Date of Grant. 
ARTICLE VI 
RESTRICTED SHARES 
6.1    Grant of Restricted Shares. Subject to the limits of Sections 3.2 and 3.3 and the other terms and conditions of this Plan, the Committee may, from time to time and upon such terms and conditions as it may determine, grant Restricted Shares to Participants. Each such grant shall provide that during the period for which substantial risk of forfeiture is to continue (the “Restricted Period”), the transferability of the Restricted Shares shall be prohibited or restricted in the manner and to the extent prescribed by the Committee at the Date of Grant (which restrictions may include, without limitation, rights of repurchase or first refusal in the Company or provisions subjecting the Restricted Shares to continuing substantial risk of forfeiture in the hands of any transferee). Each such grant may utilize any or all of the authorizations, and shall be subject to all of the requirements, contained in the following provisions. 
6.2    Award Agreement. Each grant of Restricted Shares shall be evidenced by an Award Agreement that shall specify the number of Restricted Shares subject to the Award, the Restricted Period, any other conditions or restrictions on the Award, and such other terms and conditions as the Committee, in its discretion, determines and as are consistent with this Plan. 
6.3    Rights. Each such grant shall constitute an immediate transfer of the ownership of Common Shares to the Participant in consideration of the performance of services, and unless otherwise determined by the Committee, entitling such Participant to voting, dividend and other ownership rights, subject to the substantial risk of forfeiture and the Restricted Period. 
6.4    Certificates. Unless otherwise directed by the Committee, all certificates representing Restricted Shares shall be held in custody by the Company until all restrictions thereon shall have lapsed, together with a stock power executed by the Participant in whose name such certificates are registered, endorsed in blank and covering such Restricted Shares. 
 
6.5    Minimum Vesting Requirements. Subject to the exceptions stated in Section 3.3, no Award under this Article VI shall vest sooner than twelve (12) months from the Date of Grant. 
ARTICLE VII 
RESTRICTED STOCK UNITS 
7.1    Grant of Restricted Stock Units. Subject to the limits of Sections 3.2 and 3.3 and the other terms and conditions of this Plan, the Committee may, from time to time and upon such terms and conditions as it may determine, grant Restricted Stock Units to Participants. Each Restricted Stock Unit represents one (1) Common Share. Each such grant may utilize any or all of the authorizations, and shall be subject to all of the requirements, contained in the following provisions. 
7.2    Award Agreement. Each grant of Restricted Stock Units shall be evidenced by an Award Agreement that shall specify the number of Restricted Stock Units subject to the Award, the Restricted Period, any other conditions or restrictions on the Award, and such other terms and conditions as the Committee, in its discretion, determines and as are consistent with this Plan. 
7.3    Rights. No Common Shares shall be issued at the time a Restricted Stock Unit is granted, and a Participant shall have no voting rights with respect thereto. Restricted Stock Units shall be subject to forfeiture until the expiration of the Restricted Period and satisfaction of any applicable conditions, including vesting time periods or performance requirements, to the extent provided in the applicable Award Agreement. 
7.4    Dividend Equivalents. At the discretion of the Committee, each Restricted Stock Unit may be credited with dividend equivalents or other equivalent distributions. Dividend equivalents or other equivalent distributions shall be paid on a current basis unless the Award Agreement requires otherwise; provided, however dividend equivalents or other equivalent distributions on Restricted Stock Units that are subject to performance requirements, including Management Goals, shall be deferred until and paid contingent upon the level of achievement of the applicable performance or Management Goals at the end of the related Performance Period. 

EX 10.1

7.5    Payment. Each grant shall specify the time and manner of payment of Restricted Stock Units. Any grant may specify that the amount payable with respect thereto may be paid by the Company in cash, in Common Shares or in any combination thereof and may either grant to the Participant or retain in the Committee the right to elect among those alternatives. 
7.6    Minimum Vesting Requirements. Subject to the exceptions stated in Section 3.3, no Award under this Article VII shall vest sooner than twelve (12) months from the Date of Grant. 
ARTICLE VIII 
PERFORMANCE UNITS AND PERFORMANCE SHARES 
8.1    Grant of Performance Shares and Performance Units. Subject to the limits of Sections 3.2 and 3.3 and the other terms and conditions of this Plan, the Committee may, from time to time and upon such terms and conditions as it may determine, grant Performance Shares and Performance Units to Participants that will become payable upon achievement of specified performance goals, which may include Management Goals. Each such grant may utilize any or all of the authorizations, and shall be subject to all of the requirements, contained in the following provisions. 
8.2    Award Agreement. Each grant of Performance Shares or Performance Units shall be evidenced by an Award Agreement that shall specify the number of Performance Shares or Performance Units subject to the Award, the performance objectives (which may include Management Goals), the Performance Period applicable to the Award, any other conditions or restrictions on the Award, and such other terms and conditions as the Committee, in its discretion, determines and as are consistent with this Plan. 
8.3    Performance Objectives. Any grant of Performance Shares or Performance Units shall specify the performance objectives, which may include Management Goals, which, if achieved, will result in payment or early payment of the Award. Each grant may specify a minimum acceptable level of achievement of the performance objectives and shall set forth a formula for determining the number of Performance Shares or Performance Units that will be earned if performance is at or above the minimum level, but falls short of full achievement of the specified performance objectives. Before the Performance Shares or Performance Units shall be earned and paid, the Committee must determine the level of achievement of the performance objectives. 
 
8.4    Dividends and Dividend Equivalents. The Committee may, at the Date of Grant of Performance Shares or Performance Units, provide for the payment of dividends or dividend equivalents to the Participant thereof either in cash or in additional Common Shares, subject in all cases to deferral and payment on a contingent basis based on the Participant’s earning of the Performance Shares or Performance Units with respect to which such dividend equivalents are paid. 
8.5    Payment. Each grant shall specify the time and manner of payment of Performance Shares or Performance Units which have been earned. Any grant may specify that the amount payable with respect thereto may be paid by the Company in cash, in Common Shares or in any combination thereof and may either grant to the Participant or retain in the Committee the right to elect among those alternatives. 
8.6    Minimum Vesting Requirements. Subject to the exceptions stated in Section 3.3, no Award under this Article VIII shall have a Performance Period of less than twelve (12) months from the Date of Grant. 
ARTICLE IX 
OTHER SHARE-BASED AWARDS 
9.1    Grant of Other Share-Based Awards. Subject to the limits of Sections 3.2 and 3.3 and the other terms and conditions of this Plan, the Committee may, from time to time and upon such terms and conditions as it may determine, grant Other Share-Based Awards not otherwise described by the terms of this Plan to Participants. Such Awards may involve the transfer of actual Common Shares to Participants and may include Awards designed to comply with or take advantage of applicable local laws of jurisdictions other than the United States. Each Other Share-Based Award will be expressed in terms of Common Shares or units based on Common Shares. Each such grant may utilize any or all of the authorizations, and shall be subject to all of the requirements, contained in the following provisions. 
9.2    Award Agreement. Each grant of an Other Share-Based Award shall be evidenced by an Award Agreement that will specify the number of Common Shares or units covered by the Award, any conditions related to the Award, and such other terms and conditions as the Committee, in its discretion, determines and as are consistent with this Plan. 
9.3    Payment. Payment, if any, with respect to an Other Share-Based Award, will be made in accordance with the terms of the Award, in cash, in Common Shares or a combination of both as determined by the Committee. 
9.4    Minimum Vesting Requirements. Subject to the exceptions stated in Section 3.3, no Award under this Article IX shall vest sooner than twelve (12) months from the Date of Grant. 

EX 10.1

ARTICLE X 
TRANSFERABILITY 
10.1    Transfer Limits. Except as otherwise determined by the Committee, no Options, Stock Appreciation Right or other derivative security granted under this Plan shall be transferable by a Participant other than by will or the laws of descent and distribution, except (in the case of a Participant who is not a Director or officer of the Company) to a fully revocable trust of which the holder is treated as the owner for federal income tax purposes, and in no event will any such Award granted under this Plan be transferred for value. Except as otherwise determined by the Committee, Options and Stock Appreciation Rights shall be exercisable during the Participant’s lifetime only by him or her or by his or her guardian or legal representative. Notwithstanding the foregoing, the Committee in its sole discretion may provide for transferability of Options and Stock Appreciation Rights under this Plan so long as such provisions will not disqualify the exemption for other awards under Rule 16b-3 and so long as such transfer is not to a third-party entity, including financial institutions. 
10.2    Further Restrictions. The Committee may specify at the Date of Grant that part or all of the Common Shares that are (i) to be issued or transferred by the Company upon the exercise of Options or Stock Appreciation Rights or upon payment under any grant of Performance Shares, Performance Units, Restricted Stock Units or Other Share-Based Awards or (ii) no longer subject to the substantial risk of forfeiture and restrictions on transfer referred to in Article VI of this Plan, shall be subject to further restrictions on transfer. 
 
ARTICLE XI 
ADJUSTMENTS 
The Committee shall make or provide for such adjustments in the numbers of Common Shares covered by outstanding Awards granted hereunder, in the prices per share applicable to such Options and Stock Appreciation Rights and in the kind of shares covered thereby, as the Board, in its sole discretion, exercised in good faith, may determine is equitably required to prevent dilution or enlargement of the rights of Participants that otherwise would result from (a) any stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, or (b) any merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets, issuance of rights or warrants to purchase securities, or (c) any other corporate transaction or event having an effect similar to any of the foregoing. Moreover, in the event of any such transaction or event, the Committee, in its discretion, may provide in substitution for any or all outstanding Awards under this Plan such alternative consideration as it, in good faith, may determine to be equitable in the circumstances and may require in connection therewith the surrender of all Awards so replaced. In addition, for each Option or Stock Appreciation Right with an Exercise Price greater than the consideration offered in connection with any such transaction or event or Change in Control, the Committee may in its sole discretion elect to cancel such Option or Stock Appreciation Right without any payment to the person holding such Option or Stock Appreciation Right. The Committee may also make or provide for such adjustments in the numbers of shares specified in Section 3.2 of this Plan as the Committee in its sole discretion, exercised in good faith, may determine is appropriate to reflect any transaction or event described in this Article XI. 
ARTICLE XII 
TAX WITHHOLDING 
To the extent that the Company is required to withhold federal, state, local or foreign taxes in connection with any payment made or benefit realized by a Participant or other person under this Plan, and the amounts available to the Company for such withholding are insufficient, it shall be a condition to the receipt of such payment or the realization of such benefit that the Participant or such other person make arrangements satisfactory to the Company for payment of the balance of such taxes required to be withheld, which arrangements (in the discretion of the Committee) may include relinquishment of a portion of such benefit. Participants shall also make such arrangements as the Company may require for the payment of any withholding tax obligations that may arise in connection with the disposition of shares acquired upon the exercise of Options. In no event, however, shall the Company accept Common Shares for payment of taxes in excess of required tax withholding rates (or, after the Company’s adoption of ASU 2016-09, Compensation-Stock Compensation (Topic 718) dated March, 2016, in excess of maximum applicable tax rates), except that, in the discretion of the Committee, a Participant or such other person may surrender Common Shares owned for more than six (6) months to satisfy any tax obligations resulting from any such transaction. 
ARTICLE XIII 
SUBSIDIARIES AND NON-US JURISDICTIONS 
13.1    Participation by Employees of Designated Subsidiaries. As a condition to the effectiveness of any grant or Award to be made hereunder to a Participant who is an employee of a Designated Subsidiary, whether or not such Participant is also employed by the Company or another Subsidiary, the Committee may require such Designated Subsidiary to agree to transfer to such employee (when, as and if provided for under this Plan and any applicable agreement entered into with any such employee pursuant to this Plan) the Common Shares that would otherwise be delivered by the Company, upon receipt by such Designated Subsidiary of any consideration then otherwise payable by such Participant to the Company. Any such award shall be evidenced by an agreement between the Participant and the Designated Subsidiary, in lieu of the Company, on terms consistent with this Plan and approved by the Committee and such Designated Subsidiary. All such Common Shares so delivered by or to a Designated Subsidiary shall 

EX 10.1

be treated as if they had been delivered by or to the Company for purposes of Article III of this Plan, and all references to the Company in this Plan shall be deemed to refer to such Designated Subsidiary, except for purposes of the definition of “Board” and “Committee” and except in other cases where the context otherwise requires. 
13.2    Employees Outside the US. In order to facilitate the making of any grant or combination of grants under this Plan, the Committee may provide for such special terms for Awards to Participants who are foreign nationals or who are employed by the Company or any Subsidiary outside of the United States of America as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. Moreover, the Committee may approve such supplements to or amendments, restatements or alternative versions of this Plan as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of this Plan as in effect for any other purpose, and the Secretary or other appropriate officer of the Company may certify any such document as having been approved and adopted in the same manner as this Plan. No such special terms, supplements, amendments or restatements, however, shall include any provisions that are inconsistent with the terms of this Plan as then in effect unless this Plan could have been amended to eliminate such inconsistency without further approval by the shareholders of the Company. 
ARTICLE XIV 
ADMINISTRATION 
14.1    Delegation to Committee. The Board hereby delegates authority to administer this Plan to the Compensation Committee of the Board (or its successor(s)), or any other committee of the Board hereafter designated by the Board to administer this Plan, and the term “Committee” shall apply to any persons to whom such power is delegated. The Committee described in this Section 14.1 may from time to time delegate all or any part of its authority under this Plan to a subcommittee thereof (to the extent of any such delegation, references in this Plan to the Committee will be deemed to be references to such subcommittee). A majority of the Committee (or subcommittee thereof) shall constitute a quorum, and the action of the members of the Committee (or subcommittee thereof) present at any meeting at which a quorum is present, or acts unanimously approved in writing, shall be the acts of the Committee (or subcommittee thereof). 
14.2    Committee Requirements. Except as otherwise determined by the Board, the Committee shall consist solely of two (2) or more Non-Employee Directors. The Board shall have discretion to determine whether it intends to comply with the exemption requirements of Section 16b-3 of the Code. However, if the Board intends to satisfy such exemption requirements, with respect to any insider subject to Section 16 of the Exchange Act, the Committee shall be a compensation committee of the Board that at all times consists solely of two (2) or more Non-Employee Directors. Within the scope of that authority, the Board or the Committee may delegate to a committee of one (1) or more members of the Board who are not Non-Employee Directors the authority to grant Awards to eligible persons who are not then subject to Section 16 of the Exchange Act. Nothing herein shall create an inference that an Award is not validly granted under this Plan in the event Awards are granted under this Plan by a Committee that does not at all times consist solely of two (2) or more Non-Employee Directors. 
14.3    Interpretation. The interpretation and construction by the Committee of any provision of this Plan or of any Award Agreement and any determination by the Committee pursuant to any provision of this Plan or of any such Award Agreement, notification or document shall be final and conclusive. No member of the Board or the Committee shall be liable for any such action or determination made in good faith. 
14.4    Company’s Rights Upon Occurrence of Detrimental Activity. Any Award Agreement may provide (whether or not such would result in additional tax to a Participant under Section 409A of the Code) that if a Participant, either during employment by the Company or a Subsidiary or within a specified period after termination of such employment, shall engage in any Detrimental Activity, and the Board shall so find, forthwith upon notice of such finding, the Participant shall, unless otherwise provided in the Award Agreement: 
(a)    Return to the Company, in exchange for payment by the Company of any amount actually paid therefor by the Participant, all Common Shares that the Participant has not disposed of that were offered pursuant to this Plan within a specified period prior to the date of the commencement of such Detrimental Activity, and 
(b)    With respect to any Common Shares so acquired that the Participant has disposed of, pay to the Company in cash the difference between: (i) any amount actually paid therefor by the Participant pursuant to this Plan, and (ii) the Fair Market Value of the Common Shares on the date of such acquisition. 
To the extent that such amounts are not paid to the Company, the Company may set off the amounts so payable to it against any amounts (but only to the extent that such amount would not be considered “nonqualified deferred compensation” within the meaning of Section 409A of the Code) that may be owing from time to time by the Company or a Subsidiary to the Participant, whether as wages, deferred compensation or vacation pay or in the form of any other benefit or for any other reason. 
14.5    Clawback. Notwithstanding any other provisions in this Plan, any Award which is subject to recovery under any law, government regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant to any of the 
foregoing) will be subject to such deductions and clawback as may be required or permitted to be made pursuant to such law, government regulation, stock exchange listing requirement or policy (or pursuant to any other policy adopted by the Company at the direction of the Board, including the Company’s current clawback policy). 

EX 10.1

14.6    Compliance with Section 409A of the Code. To the extent applicable, it is intended that this Plan and any grants made hereunder comply with the provisions of Section 409A of the Code. This Plan and any grants made hereunder shall be administered in a manner consistent with this intent. 
14.7    Fractional Shares. The Company shall not be required to issue any fractional Common Shares pursuant to this Plan. The Committee may provide for the elimination of fractions or for the settlement of fractions in cash. 
ARTICLE XV 
AMENDMENT AND TERMINATION 
15.1    Amendment or Termination Authority. The Company, by action of the Board (or its designee), may at any time and from time to time amend or terminate this Plan in whole or in part. Any amendment which must be approved by the shareholders of the Company in order to comply with applicable law or the rules of any national securities exchange upon which the Common Shares are traded or quoted shall not be effective unless and until such approval has been obtained. Presentation of this Plan or any amendment thereof for shareholder approval shall not be construed to limit the Company’s authority to offer similar or dissimilar benefits in plans that do not require shareholder approval. Any amendment or termination of this Plan shall not impair in any material way the rights or obligations of any Participant under any Award that is outstanding as of the effective date of the amendment or termination without the written consent of the Participant. The Committee shall maintain its right to exercise its authority under this Plan with respect to any outstanding Awards at the effective date of termination. 
15.2    Deferrals. Except with respect to Options and Stock Appreciation Rights, the Committee may permit Participants to elect to defer the issuance of Common Shares or the settlement of awards in cash under this Plan pursuant to such rules, procedures or programs as it may establish for purposes of this Plan and which are intended to comply with the requirements of Section 409A of the Code. The Committee also may provide that deferred settlements include the payment or crediting of dividend equivalents or interest on the deferral amounts. 
15.3    Conditions. The Committee may condition the grant of any Award or combination of Awards authorized under this Plan on the surrender or deferral by the Participant of his or her right to receive a cash bonus or other compensation otherwise payable by the Company or a Subsidiary to the Participant. 
15.4    Special Circumstances. If permitted by Section 409A of the Code in case of termination of employment by reason of death, Disability or normal or early retirement, or in the case of hardship or other special circumstances, of a Participant who holds Options or Stock Appreciation Rights not immediately exercisable in full, or any Restricted Shares or Restricted Stock Units as to which the substantial risk of forfeiture or the prohibition or restriction on transfer has not lapsed, or any Performance Shares or Performance Units which have not been fully earned, or Other Share-Based Awards subject to restrictions or conditions, the Committee may, in its sole discretion, accelerate the time at which such Options or Stock Appreciation Rights may be exercised, or the time at which such substantial risk of forfeiture or prohibition or restriction on transfer will lapse for Restricted Shares or Restricted Units, or the time at which such Performance Shares or Performance Units will be deemed to have been fully earned, or the time when such restrictions or conditions will terminate with respect to Other or Share-Based Awards, or may waive any other limitation or requirement under any such Award. 
15.5    Change in Exercise Price Prohibited. Except in connection with a corporate transaction or event described in Article XI of this Plan, the terms of outstanding Awards may not be amended to reduce the Exercise Price of outstanding Options or Stock Appreciation Rights, or cancel outstanding Options or Stock Appreciation Rights in exchange for cash, other awards or Options or Stock Appreciation Rights with an Exercise Price that is less than the Exercise Price of the original Option Stock Appreciation Right, as applicable, without shareholder approval. 
15.6    No Right to Continued Employment. This Plan shall not confer upon any Participant any right with respect to continuance of employment or other service with the Company or any Subsidiary, nor shall it interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate such Participant’s employment or other service at any time. Prior to exercise of any Option, and prior to exercise, payment or delivery pursuant to any other Award, the Participant may be required, at the 
Company’s request, to certify in a manner reasonably acceptable to the Company that the Participant has not engaged in, and has no present intention to engage in the future in, any Detrimental Activity. 
15.7    Incentive Stock Options. To the extent that any provision of this Plan would prevent any Option that was intended to qualify as an Incentive Stock Option from qualifying as such, that provision shall be null and void with respect to such Option. Such provision, however, shall remain in effect for other Options and there shall be no further effect on any provision of this Plan. 
ARTICLE XVI 
GOVERNING LAW 
This Plan and all Awards granted and actions taken thereunder shall be governed by and construed in accordance with the internal substantive laws of the State of Ohio, without regard to conflicts of law principles thereof.

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