Document:

Document

Exhibit 4.13

AMENDMENT NO. 4 dated as of February 25, 2022 (this “Amendment”), to the SECOND AMENDED AND RESTATED CREDIT AGREEMENT dated as of January 5, 2018 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used and not defined herein shall have the meanings assigned to such terms in the Credit Agreement), among ITRON, INC., a Washington corporation (the “Company”), the FOREIGN BORROWERS and GUARANTORS party thereto, the LENDERS and ISSUING LENDERS party thereto and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Wells Fargo”), as Administrative Agent (in such capacity, the “Administrative Agent”).
WHEREAS, pursuant to the Credit Agreement, the Lenders and the Issuing Lenders have agreed to extend credit to the Borrower on the terms and subject to the conditions set forth therein; and
WHEREAS, the Company has requested that certain provisions of the Credit Agreement be amended as set forth herein; and
WHEREAS, the undersigned Lenders are willing to amend such provisions of the Credit Agreement, in each case on the terms and subject to the conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and subject to the conditions set forth herein, the parties hereto hereby agree as follows:
SECTION 1.  Rules of Interpretation.  The rules of interpretation set forth in Section 1.2 of the Credit Agreement are hereby incorporated by reference herein, mutatis mutandis.
SECTION 2.  Amendments to the Credit Agreement.  
(a)  Section 1.1 of the Credit Agreement is hereby amended by restating clause (b)(v) of the definition of “Consolidated EBITDA” to read in its entirety as follows:
(v)  (A) non-recurring cash expenses related to acquisitions and restructurings for such period not to exceed 10.0% of Consolidated EBITDA for such four (4) consecutive fiscal quarter period, and, with respect to restructurings (other than the Restructure and the addbacks permitted by clause (B) below), not to exceed $100,000,000 in the aggregate during the term of this Agreement (with respect to all such four (4) fiscal quarter periods ending after the Restatement Effective Date), and 

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(B) non-recurring cash expenses related to restructurings to the extent incurred during the fiscal quarter of the Company ended December 31, 2021, in an amount not to exceed $60,000,000;
(b)  Section 6.13 of the Credit Agreement is hereby amended by replacing the table in paragraph (a) of such Section with the following table:
						
	Date of Fiscal Quarter End	Total Net Leverage Ratio
	March 31, 2018 through June 30, 2019	4.75 to 1.00
	September 30, 2019 through June 30, 2020	4.50 to 1.00
	September 30, 2020	4.25 to 1.00
	December 31, 2020 through March 31, 2021	4.75 to 1.00
	June 30, 2021 through December 31, 2021	4.50 to 1.00
	March 31, 2022 through September 30, 2022	4.75 to 1.00
	December 31, 2022	4.50 to 1.00
	March 31, 2023 through the Maturity Date	4.00 to 1.00

SECTION 3.  Representations and Warranties.  Each of the Credit Parties represents and warrants to the Administrative Agent and to each of the Lenders and Issuing Lenders that:
(a)  The execution, delivery and performance by the Credit Parties of this Amendment, and the consummation of the transactions contemplated hereby, (i) are within each of the Credit Party’s company powers, (ii) require no consent or approval of (including any exchange control approval) or action by or in respect of, or registration or filing with, any Governmental Authority, agency or official, except such as have been obtained or made and are in full force and effect, (iii) do not contravene, or constitute a default under, any provision of applicable law, regulation or order of any Governmental Authority or the organizational documents of any Credit Party or of any judgment, injunction, order or decree binding upon any Credit Party, (iv) do not result in the creation or imposition of any Lien on any asset of a Credit Party except Liens in favor of 

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the Administrative Agent and/or the Collateral Agent (for the benefit of the Secured Parties) and (v) will not violate or result in a default under any indenture, loan agreement or other material agreement or instrument binding upon any Credit Party or its assets, or give rise to a right thereunder to require any payment to be made by a Credit Party.
(b)  This Amendment has been duly authorized, executed and delivered by it and each of this Amendment and the Credit Agreement, as amended hereby, constitutes its legal, valid and binding obligation, enforceable against such Credit Party in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
(c)  The representations and warranties made by the Credit Parties in the Credit Agreement and the other Credit Documents shall (i) with respect to representations and warranties that contain a materiality qualification or are qualified by Material Adverse Effect, be true and correct and (ii) with respect to representations and warranties that do not contain a materiality qualification and are not qualified by Material Adverse Effect, be true and correct in all material respects, in each case as of the Amendment Effective Date as if made on and as of such date, except for any representation or warranty made as of an earlier date, which representation and warranty shall (x) with respect to representations and warranties that contain a materiality qualification or are qualified by Material Adverse Effect, be true and correct as of such earlier date and (y) with respect to representations and warranties that do not contain a materiality qualification and are not qualified by Material Adverse Effect, be true and correct in all material respects as of such earlier date.
(d)  At the time of and immediately after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing on and as of the Amendment Effective Date.
SECTION 4.  Effectiveness.  This Amendment shall become effective as of the date first above written (the “Amendment Effective Date”) when (a) the Administrative Agent shall have received counterparts of this Amendment that, when taken together, bear the signatures of (i) the Company and each other Credit Party party hereto and (ii) Lenders comprising the Required Lenders immediately prior to the Amendment Effective Date, (b) each of the representations and warranties set forth in Section 3 hereof shall be true and correct and (c) the Administrative Agent shall have received payment of all fees and expenses required to be paid or reimbursed by the Company under or in connection with this Amendment, including those fees and expenses set forth in Section 9 hereof.
SECTION 5.  Reaffirmation.  Each of the Company and each other Credit Party hereby (a) reaffirms its obligations under the Credit Agreement and each other Credit Document to which it is a party, in each case as amended by this Amendment, (b) reaffirms all Liens on the Collateral which have been granted by it in favor of the Administrative Agent and/or the Collateral Agent (for the benefit of the Secured Parties) 

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pursuant to the Credit Documents and (c) acknowledges and agrees that the grants of security interests by and the guarantees of the Credit Parties contained in the Security Agreement and the other Security Documents are, and shall remain, in full force and effect immediately after giving effect to this Amendment.
SECTION 6.  Credit Agreement.  Except as expressly set forth herein, this Amendment (a) shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders, the Issuing Lenders, the Administrative Agent or any Credit Party under the Credit Agreement or any other Credit Document and (b) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Credit Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle any Credit Party to any future consent to, or waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Credit Document in similar or different circumstances.  After the Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Credit Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified hereby.  This Amendment shall constitute a “Credit Document” for all purposes of the Credit Agreement and the other Credit Documents.
SECTION 7.  Applicable Law; Waiver of Jury Trial.  THIS AMENDMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
(b)  EACH PARTY HERETO HEREBY AGREES AS SET FORTH IN SECTIONS 10.13 AND 10.16 OF THE CREDIT AGREEMENT (AS IN EFFECT ON THE DATE HEREOF) AS IF SUCH SECTIONS WERE SET FORTH IN FULL HEREIN. 
SECTION 8.  Counterparts; Amendment.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile transmission or other electronic imaging shall be effective as delivery of an original executed counterpart of this Amendment.  This Amendment may not be amended nor may any provision hereof be waived except pursuant to a writing signed by the Credit Parties, the Administrative Agent, the Issuing Lenders and the Lenders party hereto.  The words “execution”, “signed”, “signature”, “delivery” and words of like import in or relating to this Amendment and/or any documents to be signed 

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in connection with this Amendment and the transactions contemplated hereby shall be deemed to include Electronic Signatures (as defined below), deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature page, physical delivery thereof or the use of a paper-based recording system, as the case may be.  As used herein, “Electronic Signatures” means any electronic symbol or process attached to, or associated with, any contract or other record and adopted by a person with the intent to sign, authenticate or accept such contract or record.
SECTION 9.  Fees and Expenses.
(a)  The Company hereby agrees to pay to the Administrative Agent on the Amendment Effective Date, for the account of each applicable party, all fees separately agreed to by the Company and Wells Fargo (or any of its Affiliates) in respect of this Amendment including any consent fees previously disclosed to the Lenders.
(b)  The Company agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this Amendment to the extent required under Section 10.5(a) of the Credit Agreement.
SECTION 10.  Headings.  The Section headings used herein are for convenience of reference only, are not part of this Amendment and are not to affect the construction of, or to be taken into consideration in interpreting, this Amendment.

[Signature Pages Follow]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first written above.

						
	ITRON, INC.
	By

	

	/s/ JOEL VACH

	

	Name: Joel Vach
	

	Title: Director    

						
	ITRON NETWORKED SOLUTIONS, INC.
	By

	

	/s/ JOEL VACH

	

	Name: Joel Vach
	

	Title: Director    

						
	ITRON METERING SOLUTIONS LUXEMBOURG
	By

	

	/s/ CHRISTOPHER W. HARTMAN

	

	Name: Christopher W. Hartman
	

	Title: Manager

						
	ITRON GLOBAL
	By

	

	/s/ CHRISTOPHER W. HARTMAN
	

	Name: Christopher W. Hartman
	

	Title: Manager

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent and a Lender

	By

	

	/s/ JIM TEICHMAN

	

	Name: Jim Teichman
	

	Title: Senior Vice President

	

	

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	JP MORGAN CHASE, N.A.
	
	
	By
		/s/ LYNN BRAUN
	Name: Lynn Braun

	Title: Executive Director

For institutions that require a second signature:

						
	
	By
		
	Name:

	Title:

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	U.S. BANK NATIONAL ASSOCIATION
	
	
	By
		/s/ STEVEN L. SAWYER
	Name: Steven L. Sawyer

	Title: Senior Vice President

For institutions that require a second signature:

						
	
	By
		
	Name:

	Title:

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	ING BANK N.V., DUBLIN BRANCH
	
	
	By
		/s/ CORMAC LANGFORD
	Name: Cormac Langford

	Title: Director

For institutions that require a second signature:

						
	
	By
		/s/ SEAN HASSETT
	Name: Sean Hassett

	Title: Director

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	CITIZENS BANK, N.A.
	
	
	By
		/s/ EARL KWAK
	Name: Earl Kwak

	Title: Senior Vice President

For institutions that require a second signature:

						
	
	By
		
	Name:

	Title:

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	HSBC BANK USA, NATIONAL ASSOCIATION, AS A LENDER
	
	
	By
		/s/ MARY BETH DAM
	Name: Mary Beth Dam

	Title: SVP, 22710

For institutions that require a second signature:

						
	
	By
		
	Name:

	Title:

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	BMO HARRIS BANK N.A.
	
	
	By
		/s/ ANDREW BERRYMAN
	Name: Andrew Berryman

	Title: Director

For institutions that require a second signature:

						
	
	By
		
	Name:

	Title:

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	CITIBANK, N.A.
	
	
	By
		/s/ HANS LIN
	Name: Hans Lin

	Title: Director

For institutions that require a second signature:

						
	
	By
		
	Name:

	Title:

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	FIFTH THIRD BANK, NATIONAL ASSOCIATION
	
	
	By
		/s/ SHANE JOHNSON
	Name: Shane Johnson

	Title: Executive Director

For institutions that require a second signature:

						
	
	By
		
	Name:

	Title:

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	PNC BANK, NATIONAL ASSOCIATION
	
	
	By
		/s/ LARRY JACKSON
	Name: Larry Jackson

	Title: SVP

For institutions that require a second signature:

						
	
	By
		
	Name:

	Title:

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	TD BANK, N.A., AS A LENDER
	
	
	By
		/s/ BERNADETTE COLLINS
	Name: Bernadette Collins

	Title: Senior Vice President

For institutions that require a second signature:

						
	
	By
		
	Name:

	Title:

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	MUFG UNION BANK, N.A.
	
	
	By
		/s/ MENG ZHANG
	Name: Meng Zhang

	Title: Vice President

For institutions that require a second signature:

						
	
	By
		
	Name:

	Title:

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	BNP PARIBAS
	
	
	By
		/s/ GEORGE KO
	Name: George Ko

	Title: Director

For institutions that require a second signature:

						
	
	By
		/s/ THEODORE OLSON
	Name: Theodore Olson

	Title: Managing Director

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	BANK OF THE WEST
	
	
	By
		/s/ LENI WELSCH
	Name: Leni Welsch

	Title: Director, Market Manager

For institutions that require a second signature:

						
	
	By
		
	Name:

	Title:

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]

						
	LENDERS

SIGNATURE PAGE TO AMENDMENT NO. 4 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JANUARY 5, 2018, AMONG ITRON, INC., THE FOREIGN BORROWERS AND GUARANTORS PARTY THERETO, THE LENDERS AND ISSUING LENDERS PARTY THERETO AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

	Name of Institution:
	
	
	KEYBANK NATIONAL ASSOCIATION
	
	
	By
		/s/ TAD L. STAINBROOK
	Name: Tad L. Stainbrook

	Title: Vice President

For institutions that require a second signature:

						
	
	By
		
	Name:

	Title:

[Amendment No. 4 to Second Amended and Restated Credit Agreement Signature Page]Document

Exhibit 10.36

Overview
The Itron Incentive Plan (“IIP”, or “Plan”) provides a cash award to eligible participants based on attainment of financial metrics and an assessment of individual performance.  The period of January 1st through December 31st (“Performance Period”) is used to establish metrics and measure results.  The Financial metrics are collectively referred to in the IIP document as (“Performance Metrics”).

The Performance metrics are established to measure the degree of business achievement during the Performance Period. The Company Performance metrics are set forth in Exhibit A (“2022 Itron Performance Metrics”) attached hereto and incorporated herein by this reference. Following the completion of the Performance Period, actual performance relative to the Performance metrics will be assessed.  Each participant’s individual performance will also be assessed and used to adjust their individual award payout through the application of an Individual Performance Factor (“IPF”).   Payouts (the “IIP Award”), if any, will be determined in accordance with the award formula as defined in Exhibit A. 

To the maximum extent permitted by the applicable law, the Plan shall apply on a global scale to all subsidiaries of Itron, Inc. worldwide.  If any of the provisions of the IIP contravene a mandatory law in a particular country, such mandatory law shall apply in that country.

Eligibility
Participation in the plan is reviewed annually and is based on the position that the employee holds at that time.  Final eligibility is determined by the SVP of Human Resources.

Except as set forth below, each IIP Participant must be an Eligible Employee as of the first day of the Performance Period and be actively employed by Itron during the Performance Period and on the date IIP awards, if any, are paid.  IIP Participants who do not actively work during the entire Performance Period will receive a reduced payout which will be pro-rated for the absence period, unless any such deductions are prohibited by applicable law or stated otherwise in this Plan.

Any employee who becomes an Eligible Employee as a result of a new hire (including as the result of an acquisition or merger) after the first day of a Performance Period may become eligible to participate in the Plan and receive a IIP Award.  The award will be pro-rated based on the number of calendar days that the employee qualified as an Eligible Employee during the Performance Period. Similarly, if during a Performance Period an Eligible Employee is transferred to another role for which different performance measures apply, his/her IIP Award, if any, will be calculated by taking into account the performance measures for each role.  The time will be pro-rated based on the actual time that the Eligible Employee spent in each role during the Performance Period.
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2022 ITRON INCENTIVE PLAN (IIP)

Any employee who becomes an Eligible Employee as a result of a promotion after the first day of a Performance Period may become eligible to participate in the Plan and receive an IIP Award.   The entire Performance Period shall be used as the basis for any payment under the Plan.  

Participants must be in a IIP eligible position on or before October 1st of the Performance Period in order to be eligible for payment under the Plan.  Final approval of IIP Participants and IIP award payments are approved by the Senior Vice President Human Resources and/or President & CEO as delegated by the Compensation Committee of the Itron Board of Directors.

Award Opportunities
Each IIP Participant shall have the opportunity to earn his/her IIP award based upon the achievement of predetermined Performance metrics, which are comprised of Performance Objectives and an assessment of a participant’s individual performance.  The Performance Period has an Overall Plan Threshold (“Threshold”), as defined in Exhibit A, which must be achieved in order for any of the Performance Objectives to be earned and paid.

If the overall EBITDA threshold as defined in Exhibit A is met for the period January 1st through December 31st Performance Period, the IIP Award will be considered for payment.  The Performance metrics are set forth in Exhibit A (“2022 Itron Performance Metrics”).  The definition of each metric and its measurement is provided in the Definitions section of this Plan which is attached hereto as Exhibit B (the “Definitions”) and are incorporated herein by this reference.  No Awards will be earned for any Performance metric of the Plan if the Overall Plan Threshold, as defined in Exhibit A, is not achieved.  Maximum payout percentages for each element of the 2022 Itron Performance metrics of the IIP are also set forth in Exhibit A.

The Plan also includes an Individual Performance Factor (“IPF”) that is applied based on the participant’s annual performance as defined in Exhibit A.  The Participant’s manager will assess the Participant’s individual performance and an IPF will be assigned reflecting the manager’s assessment by applying a multiplier (range of 0.0 – 1.5) against the calculated payout.  The calculated payout is determined based on how the plan has performed and applied to an individual’s target award. The IPF is then applied after the calculated payout is established.

Each IIP Participant shall be assigned a percentage of his or her base salary (“Target Percentage”) commensurate with their position’s organizational level that will be used in calculating the amount of his or her IIP Target Award, if any. The IIP Participant’s base salary and Target Percentage as of December 31st, 2022, will be used for purposes of the IIP calculation.  

Adjustments to Performance Objectives:  To the extent applicable, the Compensation Committee or Designee may adjust the Company financial results achieved during the Performance Period for the purposes of determining the attainment of Performance Objectives.  Such adjustments may include or exclude, without limitation, one or more of the following: foreign exchange rates, items that are extraordinary or unusual in nature or infrequent in occurrence, including one-time or non-recurring items; items related to a change in accounting principles under GAAP; items related to changes in law or regulatory requirements; items related to financing activities; expenses for restructuring or productivity initiatives; other non-operating items; items related to acquisitions, including transaction-related charges and amortization; items attributable to the business operations of any entity acquired by the Company during the Performance Period; items related to the disposal of a business or segment of a business; items related to discontinued operations that do not qualify as a segment of a business under GAAP; expenses related to natural disasters, pandemics, and other disasters; litigation related expenses; taxes; stock-based compensation; non-cash items; and any other items of significant income or expense which are determined to be appropriate adjustments.

Payouts
Final IIP Awards, if any, will be communicated and paid to the IIP Participants within a reasonable period after the end of the Performance Period and in any event on or before March 15th following the end of the Performance Period.  Any corrections or revisions to an IIP Participant’s IIP Award must be 
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CONFIDENTIAL

2022 ITRON INCENTIVE PLAN (IIP)

requested by the IIP Participant or his/her manager before May 1st of the year in which the IIP Award is paid. 

Tax Consequences
The Company shall have the right to deduct applicable taxes from any IIP Award and withhold, at the time of delivery of the IIP Award, if any, under the IIP, an appropriate amount for payment of taxes required by applicable law or to take such other action as may be necessary or advisable in the opinion of the Company to satisfy all tax withholding obligations of the IIP Participants.

Section 409A. The IIP is intended to satisfy the short-term deferral exception to the application of Internal Revenue Code Section 409A (26 U.S. Code § 409A).  To the extent any provision of the IIP becomes subject to Internal Revenue Code Section 409A and the applicable regulations and guidance issued thereunder, it shall be construed, and payments made hereunder, as the Compensation Committee or Designee deems necessary to comply with Internal Revenue Code Section 409A. 

Changes in Employment / Earning of Award

Termination of Employment

Death, Disability & Retirement

IIP Participants whose employment relationship with Itron terminates as a result of death, disability, or retirement will be eligible to earn a prorated IIP Award based on the actual IIP Award payouts.  In such case, the IIP Award, if any, will be paid at the time when other IIP Participants receive their respective IIP Awards, if any.  For the purposes of the IIP, “retirement” in the United States shall mean the earlier of the age 65 or the age 55 with at least 10 years of service with Itron.  “Retirement” in other jurisdictions/locations shall be determined in accordance with the applicable provisions of the law in the country of employment of the IIP Participant.  For those IIP Participants whose employment terminates as a result of death, the IIP Award, if any, will be issued to the employee’s estate, unless required otherwise by applicable law. 

Reductions in Force

After the Completion of the Performance Period:  Unless otherwise required by mandatory provisions of local law, in the event an IIP Participant’s employment with Itron terminates due to a reduction in force after the completion of the Performance Period but prior to the payout of the IIP Award, the IIP Participant will be entitled to receive the IIP Award, if and when any such IIP Award is earned, approved by the Compensation Committee of the Board of Directors or designee, and payable in accordance with the terms of this Plan. The IIP Award, if any, will be paid at the time when other IIP Participants receive their respective IIP Awards.

Prior to the Completion of the Performance Period:  Unless otherwise required by mandatory provisions of local law, in the event an IIP Participant’s employment with Itron terminates due to a reduction in force prior the completion of the Performance Period, the IIP Participant will not be entitled to receive any portion of the IIP Award for the Performance Period.

All Other Types of Terminations or Resignations:  IIP Participants who voluntarily resign or whose employment is terminated for any reason other than death, disability or retirement prior to the distribution of the IIP Award, if any, shall not be eligible to earn or receive an IIP Award, unless required by mandatory provisions of local law. In those countries where payment of a prorated IIP Award is required when an IIP Participant’s employment is terminated for reasons other than death, disability, or retirement prior to the distribution of the IIP Award, the IIP Participant will be eligible to earn an IIP Award on a prorated basis depending on the actual number of days employed during the Performance Period by the IIP Participant during the Performance Period.  In such case, the IIP Award, if any, will be due and payable only upon completion of the Performance Period, and will be calculated based on the 
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actual results, achievement of the Performance Objectives as determined upon completion of the Performance Period and application of the Individual Performance Factor, in accordance with the Plan and the Award Formula.  Determination of the Individual Performance Factor will be based upon the performance assessment completed and documented on or around the last date of employment of the IIP Participant.  All IIP Awards and payouts are subject to approval of the Compensation Committee or Designee. 

Performance Period
Following the commencement of any Performance Period or any designated fiscal period or period of service, the administrator will (a) designate the IIP Participant to receive such award, (b) select the Performance Criteria (as defined in the MIP) applicable to the Performance Period, (c) establish the performance goals (and any exclusions), and amounts of such awards, as applicable, which may be earned for such Performance Period based on the Performance Criteria, and (d) specify the relationship between Performance Criteria and the performance goals and the amounts of such awards, as applicable, to be earned by each Participant for such Performance Period. 
Following the completion of the Performance Period, the administrator will certify whether and the extent to which the applicable performance goals have been achieved for such Performance Period.
Notwithstanding anything to the contrary as set forth herein, as set forth in Exhibit A, the administrator will approve an initial Performance Criteria and performance goal(s) that must be achieved in order to fund any bonus payments for Participants (the “Threshold Goal”).  If the Threshold Goal is not achieved, then no payments shall be payable to any IIP Participant for the applicable Performance Period.  If the Threshold Goal is achieved, the bonus pool will fund at the annual operating level and in the course of determining payouts, the administrator may make performance-based adjustments.

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Other Conditions
Eligibility for, or actual participation in, the IIP shall not, and is in no way intended to, create an agreement of employment for a definite term.  Nothing herein shall, or is intended to, (i) obligate the Company to offer any employee participation in the IIP or any other management incentive program or similar arrangement in the future, and/or (ii) act as a modification of any employee’s existing terms and conditions of employment. Except as expressly set forth herein, the IIP shall be subject to and administered in accordance with the terms and conditions of the IIP.

Governance
This document is intended only as a summary of the shareholder approved IIP Plan.  The Compensation Committee or Designee shall be responsible for the administration and governance of the Plan. The decisions made by the Compensation Committee or Designee shall be conclusive and binding on all IIP Participants.

Amendment, Modification, Payments or Termination of the Plan
Itron reserves the right to amend, modify, payments, or terminate the Plan at any time at its sole discretion.  

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Exhibit A

2022 Itron Performance Metrics

Overall Plan Threshold 

The Total Company Adjusted EBITDA dollar threshold must be achieved before any portion of the 2022 IIP is payable.

						
	Performance Objectives	Weighting
	Payout % Based on Financial Objective Attainments
	All Segments, Total Company, Consolidated Adjusted EBITDA $	60%
	All Segments, Total Company, Consolidated Revenue $	30%
	All Segments, Total Company, Free Cash Flow	10%
	TOTAL	100%

Final determination of the IIP Award and its payout are subject to the approval of the Compensation Committee or Designee.

Threshold Goal

The “Threshold” goal for 2022 is 70% of EBITDA dollars at metric performance.  Notwithstanding the foregoing, the Threshold Goal described above must be achieved in order for any payments to be made to Participants under the Plan.

Final determination of the IIP Award and its payout are subject to the approval of the Compensation Committee or Designee.

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Exhibit B

Definitions

PERFORMANCE PERIOD  
January 1, 2022 through December 31, 2022

THRESHOLD

Overall Plan Threshold
A financial threshold of Total Company Adjusted EBITDA dollar attainment is pre-determined for the Financial Objective Performance Period.  This established threshold must be achieved in order for any of the Performance Objectives of the Plan to be earned.

FINANCIAL OBJECTIVES

Total Company Consolidated Adjusted EBITDA 
Total Company Adjusted EBITDA (GAAP Net Income or loss minus interest income, plus interest expense, plus depreciation and amortization, plus restructuring expense, plus acquisition-related expenses plus goodwill impairment and excluding income tax provisions or benefits).

Total Company Consolidated Revenue
Total Company Consolidated Revenues as recognized in accordance with U.S. generally accepted accounting principles (US GAAP).

    Total Company Free Cash Flow
Total Company Free Cash Flow is defined as GAAP Operating Cash Flow minus CAPEX spend

PERFORMANCE OBJECTIVES

The elements of Financial Objectives are collectively referred to as the Performance Objectives.

OTHER

Individual Performance Factor (IPF)
An annual assessment of the Participant’s performance by the Participant’s manager.  The Individual Performance Factor is applied to the calculated Performance Objectives award result and will vary by each participant based on their individual performance. The IPF can range from zero (0) to one point five (1.5).

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