Document:

hw_Ex10_60

		

			 

		

		
			Exhibit 10.60
		

		
			EMPLOYMENT AGREEMENT
		

		
			This amended and restated employment agreement (“Agreement”) is entered into effective as of August 1, 2016 (“Amendment Effective Date”) by and between Kirk A. Benson (the “Executive”) and Headwaters Incorporated, a Delaware corporation (the “Company”).  This Agreement supersedes the terms of the employment agreement between the Executive and the Company dated April 1, 2010, as amended through June 23, 2014 (the “Prior Agreement”).
		

			
	
			
				 1.
			Duties and Scope of Employment.

			
	
			
				 (a)
			Position.  For the term of his employment under this Agreement, the Company agrees to continue to employ the Executive in the position of Chairman of the Board and Chief Executive Officer, and Executive agrees to accept such continued employment.  The Executive shall report to the Company’s Board of Directors (the “Board”).

			
	
			
				 (b)
			Obligations of the Executive.  During his employment, the Executive shall devote his full business efforts and time to the Company, consistent with the position of Chairman and Chief Executive Officer and with duties assigned by the Board.  During his employment, without the prior written approval of the Board, the Executive shall not render services in any capacity to any other person or entity and shall not act as a sole proprietor or partner of another entity or as a shareholder owning more than five percent of the stock of any other corporation; provided that the Executive may devote a reasonable amount of time to charitable, educational, civic, political, personal investment and family business activities so long as such activities do not materially conflict with the performance of his duties under this Agreement.  The Executive shall comply with the Company’s policies and rules, as they may be in effect from time to time during his employment.

			
	
			
				 (c)
			No Conflicting Obligations.  The Executive represents and warrants to the Company that he is under no obligations or commitments, whether contractual or otherwise, that are inconsistent with or in conflict with his obligations under this Agreement.

			
	
			
				 (d)
			Term of Employment.  Subject to the provisions of Section 6(c) below, Executive’s employment under this Agreement shall continue until December 31, 2018 (the “Retirement Date”), unless it is terminated earlier either by the Executive or the Company (the “Term”).

			
	
			
				 2.
			Cash, Incentive and Supplemental Retirement Compensation.

			
	
			
				 (a)
			Base Salary.  The Company shall continue to pay the Executive as compensation for his services an annual base salary at the rate of $700,000 per year in accordance with standard Company payroll procedures, subject to normal payroll deductions and deductions authorized by the Executive.  Such base salary shall be subject to annual review by the Compensation Committee of the Board of Directors (the “Compensation Committee”).

			
	
			
				 (b)
			Short Term Incentive Bonuses.  The Executive shall be eligible to be considered for annual incentive bonuses.  Such bonuses shall be awarded based on objective or subjective criteria established in advance by the Board or Compensation Committee, in its sole discretion.  Any and all awards will be approved by the Compensation Committee. 

		
			 
		

		
			 
		

		 

 

		

			 

		

			
	
			
				 (c)
			Long Term Incentive Compensation.  The Executive shall be eligible to participate in long term cash and equity incentive plans (the “LTIP Plans”) for corporate executives of the Company adopted by the Board.  The Executive’s participation in long term incentive plans shall be in accordance with the terms and conditions of such plans; provided, however, that if Executive continues in employment through the Retirement Date, all outstanding unpaid awards under the LTIP Plans for which the first year’s performance period has been completed as of the Retirement Date shall remain eligible to vest and be paid on the otherwise applicable dates, notwithstanding the Executive’s termination of employment on or after the Retirement Date, but only to the extent otherwise earned under the applicable performance criteria regardless of any provisions in the LTIP Plans or awards to the contrary. 

			
	
			
				 (d)
			Financial, Tax, and Estate Planning.  During the Term of the Executive’s employment, the Company will reimburse the Executive for fees and expenses related to personal financial planning, tax planning and estate planning, an amount not to exceed $10,000.00 for each twelve (12) month period.  The Executive shall present invoices for such planning services stated above to the Chairman of the Compensation Committee for approval within thirty (30) days of receipt of invoices for such services.  Reimbursement will occur through normal Company procedures, and no later than 2‐1/2 months after the end of the calendar year (or if later, the Company’s tax year) in which the expense is incurred.

			
	
			
				 (e)
			Supplemental Retirement Compensation.  During the Term of the Agreement, the Company shall credit an annual supplemental retirement contribution on behalf of the Executive to an unfunded bookkeeping account (“Retirement Account”), in an amount equal to (i) 72.5% of his then current base salary for each fiscal year or partial fiscal year ending during the Term through March 31, 2017 and (ii) 42.5% of his then current base salary for the fiscal year or partial fiscal year ending March 31, 2018.  Each contribution shall be made on each March 31 during the Term including the payment for March 31, 2018.

			
	
			
				 (1)
			Until full payment has been made to Executive or his estate, the Retirement Account shall be credited with a 7% annual interest rate, compounded annually, or if elected by the Executive, shall instead be credited with income or debited with loss based on the hypothetical investment of the account in accordance with the Executive’s investment elections, which shall be made in accordance with such procedures (including default investment elections) as shall be determined by the Compensation Committee from time to time.  Unless otherwise provided by the Compensation Committee, the Executive may elect from among the investment funds offered from time to time under the Company’s 401(k) plan.  The amounts allocated to the Retirement Account (the “Retirement Benefit”) shall be paid to the Executive in a single lump sum on the first regular payroll date (but no later than thirty days) following the Executive’s termination of employment (for any reason), subject to the provisions of Section 8 below applicable to deferred compensation subject to Section 409A of the Internal Revenue Code, as amended (the “Code”).  In the event of the Executive’s death, any remaining Retirement Account balance shall be paid in a single lump sum, within thirty (30) days thereafter, to his designated beneficiary, or if no written beneficiary designation of a surviving beneficiary has been received by the Compensation Committee prior to his death, to his estate.  The Executive shall be entitled to receive only the 

		
			
		

		 

		

			2

		

 

		
			amounts credited to the Retirement Account as of the date of termination of employment and, in the case of any Additional Retirement Amount, pursuant to Section 5(b)(6).
		

			
	
			
				 (2)
			The Retirement Benefit shall be in addition to any other employee or executive retirement benefits or contributions to which the Executive may be entitled under any other plan maintained by the Company.  The Executive’s right to receive the Retirement Benefit is nontransferable, and the Executive shall not assign, transfer, or otherwise encumber any benefits payable hereunder except for a properly executed written beneficiary designation.  Any attempt to transfer or assign such benefits shall be null and void, and shall terminate the Company’s obligations hereunder.  Except as set forth below in Section 2(e)(3) of this Agreement, the Company shall have no obligation to set aside cash or assets to fund the Retirement Benefit.  Neither the Executive nor his beneficiary shall have any rights against the Company with respect to any portion of the Retirement Account except as a general unsecured creditor.  Neither the Executive nor his beneficiary shall have any interest in the Retirement Account until the Executive or his beneficiary actually receives payment thereof.   Any assets, whether cash or investments, which the Company may set aside to meet its deferred obligation under this Section 2(e) shall at all times remain the property of the Company, and neither the Executive nor his beneficiary shall under any circumstances acquire any property interest in any specific assets of the Company.  Subject to the terms and conditions of this Agreement, the Compensation Committee has discretionary authority to interpret and administer the terms of the Retirement Benefit, and all determinations, interpretations, rules and decisions of the Compensation Committee and any person to whom the Compensation Committee delegates duties or responsibilities shall be conclusive and binding upon all persons having or claiming to have any interest or right with respect to the Retirement Benefit, including the Executive.  Unless otherwise provided by the Compensation Committee, the claims procedures applicable under the Company’s 401(k) plan shall apply to any benefit claim or appeal with respect to the Retirement Benefit. 

			
	
			
				 (3)
			Upon a Change in Control (as defined below), the Company shall establish a grantor (“rabbi”) trust for the full amount then credited to the Retirement Account.  The assets of such trust shall be used exclusively and irrevocably to provide the Retirement Benefit to the Executive pursuant to the provisions of this Section 2(e) (subject, however, to the claims of the general creditors of the Company); provided, however, that the establishment of such a trust will not render this Agreement other than “unfunded” as that term is used in Sections 201(2), 301(a)(3), 401(a)(1), and 4021(a)(6) of the federal Employee Retirement Income Security Act (ERISA).  Upon the establishment of such trust, and within sixty (60) days following each March 31st thereafter, the Company shall deposit in the trust an amount of cash or marketable securities (other than securities issued by the Company or any of its current or future affiliates) sufficient so that the total amount so deposited in the trust is equal in value to the lump sum payment that would be payable to the Executive if on the date such trust is established, and on the last day of each of the Company’s fiscal years thereafter, the Executive’s employment had terminated.  For purposes of this Agreement, a “Change in Control” shall mean a Change in Control as defined in the Executive Change in Control Agreement between the Executive and the Company effective as of September 30, 2006 and amended on August 5, 2011 (the “Change in Control Agreement”).

		
			
		

		 

		

			3

		

 

			
	
			
				 (f)
			Stock Options, SARs and Other Equity Grants.  Upon (i) the Executive’s retirement on or after the Retirement Date, (ii) the termination of the Executive’s employment during the Term of this Agreement by the Company without Cause (as defined below), by the Executive for Good Reason (as defined below), or by reason of the Executive’s death or disability, or (iii) a Change in Control, the Executive’s stock options and stock appreciation rights which have been granted on or after the execution of this Agreement shall remain exercisable for a period of five (5) years following the termination of the Executive’s employment or until the expiration date stated in the Executive’s grant notice for such equity awards, whichever period is shorter, notwithstanding the provisions of the applicable equity award agreements; provided that the exercise period shall in no event expire prior to three (3) months following the termination of the Extended Term (as defined below) or, if earlier, the final expiration date stated in the Executive’s grant notice for such equity awards.  All stock options, SARs and other equity grants during the Term shall continue to vest during the Extended Term. 

		
			(g)Vacation and Employee Benefits.  During his employment, the Executive shall be eligible for paid vacations in accordance with the Company’s vacation or paid time off policy, as it may be amended from time to time.  The Executive shall be eligible to participate in the employee benefit plans maintained by the Company from time to time, including life, medical, disability, and dental insurance plans and 401(k) plan, subject to the applicable terms and conditions of the plan in question, and subject to the determinations of any person or committee administering such plan.  During the Term, the Executive shall also be entitled to any other perquisites that the Company makes available to its executive officers, including under the Company’s vehicle policy.
		

			
	
			
				 3.
			Business Expenses.  During his employment, the Executive shall be entitled to reimbursement by the Company for such customary, ordinary and necessary business expenses as are incurred by him in the performance of his duties and activities associated with promoting or maintaining the business of the Company, including the Executive’s charitable activities approved by the Board.  All expenses as described in this Section 4 shall be reimbursed only upon presentation by the Executive of such documentation as may be reasonably necessary to substantiate that all such expenses were incurred in the performance of his duties in accordance with the Company’s policies.

			
	
			
				 4.
			Employment at Will.  The Executive’s employment with the Company shall be “at will,” meaning that either the Executive or the Company shall be entitled to terminate the Executive’s employment and this Agreement at any time for any reason, with or without cause.  Termination by the Company or by the Executive shall be made in writing.

			
	
			
				 5.
			Termination of Employment.

			
	
			
				 (a)
			Termination for any Reason.  In the event that the Executive’s employment with the Company is terminated for any reason (including Cause, as defined below), then the Executive (or his estate, if applicable) shall be entitled to payment of accrued but unpaid salary, vacation pay and allowable expenses through the date of the termination of his employment.  In addition, the Company will pay the Executive any amounts and provide any benefits to which the Executive is entitled under any Company benefit plan as of his termination of employment in accordance with the provisions of such plan.

		
			
		

		 

		

			4

		

 

			
	
			
				 (b)
			Termination Without Cause or for Good Reason.  In the event that the Executive’s employment is terminated by the Company without Cause or is terminated by the Executive for Good Reason during the Term of this Agreement, other than in connection with a Change in Control pursuant to which the Executive would be eligible for severance benefits under the Change in Control Agreement (in which event the Executive will not receive severance benefits under this Section 5(b)), then, provided that the Executive executes and delivers within forty‐five (45) days of termination (or such shorter period as the Company may require) an effective release in a form to be provided by the Company with terms substantially as set forth in the attached Exhibit 2 (the “Release”), and subject to Section 7(d) of this Agreement and the Executive’s compliance with the provisions of Sections 8 and 10 of this Agreement:

			
	
			
				 (1)
			Cash Severance.  The Executive shall be entitled to payment of an aggregate amount in cash equal to the product of two (2) multiplied by the sum of (i) the Executive’s annual base salary at the rate in effect as of his termination of employment, plus (ii) the greater of (A) the Executive’s target annual incentive bonus for the fiscal year in which the termination of employment occurs, or (B) the higher of the actual bonus awarded to the Executive for either of the two preceding fiscal years of the Company most recently ended prior to the Executive’s termination of employment, which amount shall be payable in twenty‐four (24) equal monthly installments, commencing sixty (60) days following the Executive’s termination of employment.

			
	
			
				 (2)
			Bonus.  The Executive shall be entitled to payment of a prorated portion of the annual incentive bonus otherwise earned under the terms of the applicable award for the fiscal year in which the termination of employment occurs, payable when such awards would otherwise be paid.  

			
	
			
				 (3)
			COBRA.  If the Executive so elects and pays to continue health insurance under Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), then starting the next calendar month after the employment termination date, the Executive will be reimbursed on a monthly basis in an amount equal to the monthly amount the Company was paying as the company‐portion of premium contributions for health coverage for the Executive and the Executive’s eligible dependents immediately before the Executive’s termination of employment, until the earlier of: (i) the end of the twelve‐month period following the Executive’s termination of employment or (ii) the date the Executive or the Executive’s eligible dependent loses eligibility for COBRA continuation coverage.  Any increase in the premium contribution and/or in the number of covered dependents by the Executive during this time will be at the Executive’s own expense.  The period of such Company‐reimbursed COBRA continuation coverage shall be considered part of the Executive’s (and the Executive’s eligible dependents’) COBRA coverage entitlement period.  The Executive will be solely responsible for timely electing such continuation coverage for the Executive and the Executive’s eligible dependents.

			
	
			
				 (4)
			Life Insurance.  The Executive shall continue to be covered at the Company’s expense in the Company’s life and accident insurance plans for twelve (12) months following the employment termination date subject to the terms of such plans as then in effect. 

		
			
		

		 

		

			5

		

 

			
	
			
				 (5)
			Equity Compensation.  Unless otherwise set forth in the Executive’s equity award agreement and agreed to by the Executive, all Company equity awards shall become fully vested and exercisable. 

			
	
			
				 (6)
			Any amount attributable to any Additional Retirement Amount through the Retirement Date that would have been paid had Executive’s employment not terminated pursuant to this Section 5(b). 

		
			For the avoidance of doubt, the severance benefits described in this Section 5(b) are not payable in the event that the Executive’s employment is terminated on or after the Retirement Date.
		

			
	
			
				 (c)
			Extended Term.  On or after the Retirement Date, the Executive’s employment as an officer of the Company will terminate, but the Executive will continue in employment as a non-executive employee and provide advice and assistance concerning matters that are within the scope of the Executive’s knowledge and expertise upon the request of the Company for the three (3) year period following the expiration of the Term (the “Extended Term”).  The Executive shall be required to provide such services for a period of time equal to the lesser of (i) approximately twenty percent (20%) of the level of service he had performed as an employee, or (ii) such period of time as may be necessary to ensure that the Executive will be treated as having incurred a “separation from service” pursuant to Section 409A of the Code upon the expiration of the Term.  As sole consideration for the services during the Extended Term, the Executive shall receive annual compensation equal to $300,000, payable in accordance with the Company’s normal payroll practices and procedures.  The provisions of Sections 2(a) through (e) of the Agreement regarding compensation and benefits during the Term shall not apply during the Extended Term, and Executive shall not be entitled to the severance benefits described in Section 5(b) of the Agreement upon any termination of employment during the Extended Term provided that Executive shall be entitled to receive in one lump sum amount any Additional Retirement Amount described in Section 5(b)(6).  The Executive’s employment shall be treated as having terminated on the expiration of the Term for purposes of the Change in Control Agreement (other than by reason of an Involuntary Termination without Cause or Voluntary Termination For Good Reason, as such terms are defined therein), notwithstanding his continued employment during the Extended Term.  In addition, the Retirement Benefit payable upon termination of employment pursuant to Section 2(e)(1) will remain payable upon the expiration of the Term, notwithstanding the Executive’s continued employment during the Extended Term, provided the Executive has incurred a “separation from service” within the meaning of Section 409A of the Code at such time.  The Company may terminate the Executive’s employment during the Extended Term only for Cause, as defined herein, or as the result of the Executive’s death.

			
	
			
				 6.
			Definitions.

			
	
			
				 (a)
			Definition of “Cause”.  For all purposes under this Agreement, “Cause” shall mean:

			
	
			
				 (1)
			engaging in willful misconduct against the Company that is materially injurious to the Company; provided that any action undertaken with a 

		
			
		

		 

		

			6

		

 

		
			reasonable and good faith belief that it is in the best interests of the Company shall not constitute willful misconduct for purposes of this clause (1);
		

			
	
			
				 (2)
			engaging in any activity that is a conflict of interest or competitive with the Company;

			
	
			
				 (3)
			engaging in any act of fraud or dishonesty that is materially injurious to the Company or any of its affiliated companies or any material breach of federal or state securities or commodities laws or regulations;

			
	
			
				 (4)
			engaging in an act of assault or other acts of violence in the workplace;

			
	
			
				 (5)
			repeated harassment of any individual in the workplace based on age, gender, or other protected status or class or violation of any policy of the Company regarding harassment that is materially injurious to the Company or any of its affiliated companies; or

			
	
			
				 (6)
			conviction, guilty plea or plea of nolo contendere for any felony crime;

		
			provided, however, that upon the Board or the General Counsel of the Company obtaining knowledge of any of the foregoing conditions, the Company must provide written notice to the Executive of the existence of any of the foregoing conditions (1) through (6) within sixty (60) days of the knowledge of the existence of the condition, and if the Executive has the ability and in fact cures the condition and harm caused thereby within thirty (30) days following the written notice, Cause shall be deemed not to exist.
		

			
	
			
				 (b)
			Definition of “Good Reason”.  For all purposes under this Agreement, “Good Reason” shall mean any one of the following without the Executive’s consent:

			
	
			
				 (1)
			a demotion or any action by the Company which results in material diminution of the Executive’s position (including removal from his position as the Company’s Chief Executive Officer or Chairman of the Board, provided that the Executive’s cessation of service as Chairman of the Board as a result of legislative or regulatory requirements or as a result of mutual agreement between the Company and the Executive that such cessation of service is in the best interests of the Company shall not constitute Good Reason for purposes of this Agreement), reporting relationship, authority, duties or responsibilities (other than changes permitted by this Agreement or any insubstantial action not taken in bad faith);

			
	
			
				 (2)
			a requirement that the Executive report to work more than 50 miles from the Company’s existing headquarters (not including normal business travel required of the Executive’s position);

			
	
			
				 (3)
			a material reduction in the Executive’s base salary or benefits (unless such reduction in base salary or benefits applies generally to executives of the Company); or

		
			
		

		 

		

			7

		

 

			
	
			
				 (4)
			a material breach by the Company of its obligations hereunder;

		
			provided, however, that the Executive must provide written notice to the Board of Directors of the Company of the existence of any of the foregoing conditions (1) through (4) within sixty (60) days of the initial existence of the condition, and if the Company cures the condition within thirty (30) days following the written notice, or if the Executive fails to terminate employment within six (6) months following the initial existence of the condition constituting Good Reason, Good Reason shall be deemed not to exist.
		

			
	
			
				 (c)
			Definition of “Restricted Period”.  For all purposes under this Agreement, “Restricted Period” means the period of twenty‐four (24) months following termination of the Executive’s employment or service with the Company.

			
	
			
				 7.
			Code Section 409A Compliance.

			
	
			
				 (a)
			To the fullest extent applicable, amounts and other benefits payable under this Agreement, and amounts and benefits payable under any other agreements or plans referenced in this Agreement, are intended to be exempt from the definition of “nonqualified deferred compensation” under Section 409A of the Code in accordance with one or more of the exemptions available under the final Treasury regulations promulgated under Section 409A.  In this regard, each payment under Section 6(b) of this Agreement shall be deemed a separate payment for purposes of Code Section 409A.  To the extent that any such amount or benefit is or becomes subject to Section 409A due to a failure to qualify for an exemption from the definition of nonqualified deferred compensation in accordance with such final Treasury regulations, this Agreement is intended to comply with the applicable requirements of Section 409A with respect to such amounts or benefits.  This Agreement shall be interpreted and administered to the extent possible in a manner consistent with the foregoing statement of intent, and any ambiguity as to its compliance with Section 409A will be read in such a manner so that all payments hereunder comply with Section 409A of the Code.

			
	
			
				 (b)
			Notwithstanding anything in this Agreement or elsewhere to the contrary, if the Executive is a “specified employee” as determined by the Compensation Committee on the date of “separation from service” (as such terms are defined for purposes of Code Section 409A), and the Company reasonably determines that any amount or other benefit payable under this Agreement on account of such separation from service constitutes nonqualified deferred compensation that will subject the Executive to “additional tax” under Section 409A(a)(1)(B) of the Code (together with any interest or penalties imposed with respect to, or in connection with, such tax, a “409A Tax”) with respect to the payment of such amount or the provision of such benefit if paid or provided at the time specified in the Agreement, then the payment or provision thereof shall be postponed to the first business day of the seventh month following the date of termination or, if earlier, the date of the Executive’s death (the “Delayed Payment Date”).  The Executive and the Company may agree to take other actions to avoid the imposition of a 409A Tax at such time and in such manner as permitted under Section 409A.  In the event that this Section 7 requires a delay of any payment, such payment shall be accumulated and paid in a single lump sum on the Delayed Payment Date, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.  In addition, the provisions of this Agreement which require the 

		
			
		

		 

		

			8

		

 

		
			commencement of payments subject to Section 409A upon a termination of employment shall be interpreted to require that the Executive have a “separation from service” with the Company as defined for purposes of Code Section 409A.
		

			
	
			
				 (c)
			To the extent the Company is required pursuant to this Agreement to reimburse fees or expenses incurred by the Executive, and such reimbursement is taxable as compensation to the Executive, the Company shall reimburse any such eligible fees or expenses no later than 2‐1/2 months after the end of the calendar year in which the fees or expenses were incurred (or if later, 2‐1/2 months after the end of the Company’s taxable year in which the fees or expenses were incurred), subject to any earlier required deadline for payment otherwise applicable under this Agreement.  Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in‐kind benefit under this Agreement is determined to be subject to Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in‐kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses), in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which the Executive incurred such expenses, and in no event shall any right to reimbursement or the provision of any in‐kind benefit be subject to liquidation or exchange for another benefit.  

		
			(d)The provisions of this Section 7 shall also apply to all payments and benefits that may be provided under the Change in Control Agreement, notwithstanding any provision to the contrary contained therein, if required in order to comply with Section 409A.   In addition to the provisions set forth in subsections (a) through (c) above: (i) the cash severance payable under the Change in Control Agreement shall be paid at the same time and in the same form provided under this Agreement for severance payable under Section 5(b) (that is, in installments over twenty‐four (24) months rather than a lump sum) unless the Executive’s separation from service occurs within twelve (12) months following the effective date of the closing of the Change in Control and the Change in Control qualifies as a “change in control event” as defined in Treasury Regulation Section 1.409A‐3(i)(5); (ii) if the Executive’s separation from service does occur within twelve (12) months following the effective date of the closing of the Change in Control and the Change in Control qualifies as a “change in control event” as defined in Treasury Regulation Section 1.409A‐3(i)(5), then the cash severance payable to the Executive under Section 1(b)(1) of the Change in Control Agreement shall be paid on the sixtieth (60th) day following his separation from service (subject to Section 7(b)) provided the Executive has fulfilled the conditions for payment of the cash severance under the Change in Control Agreement (including that the Release of Claims as defined therein shall have become effective) on or before such date (and shall not be paid otherwise); and (iii) any reimbursement of taxes required to be made by the Company under the Change in Control Agreement shall be made by the end of the calendar year next following the calendar year in which the Executive remits the related taxes.  If the payment of cash severance has commenced pursuant to Section 5(b)(1) of this Agreement before the occurrence of a Change in Control that results in the Executive’s eligibility for severance benefits under the Change in Control Agreement, then the payment of cash severance shall be governed by the Change in Control Agreement rather than Section 5(b)(1) of this Agreement, and any adjustment to reflect an underpayment or overpayment of the amount that otherwise would have been due before the Change in Control 
		

		
			
		

		
			

		 

		

			9

		

 

pursuant to the Change in Control Agreement shall be applied to the first installment due after the Change in Control Agreement, proceeding in chronological order thereafter as necessary.  
		

			
	
			
				 8.
			Employment and Post‐Termination Covenants.  By accepting the terms of this Agreement, and as a condition for the termination payments and benefits described in Section 5, the Executive hereby agrees to the following covenants in addition to any obligations the Executive may have by law and makes the following representations:

			
	
			
				 (a)
			Confidentiality.  The Executive acknowledges that, in connection with his employment by the Company, the Executive will have access to trade secrets of the Company and its affiliated companies and other information and materials which the Company desires to keep confidential, including customer lists, supplier lists, financial statements, business records and data, marketing and business plans, and information and materials relating to the Company’s services, products, methods of operation, key personnel, proprietary software and other proprietary intellectual property and information disclosed to the Company by third parties to which the Company owes a duty of nondisclosure (collectively, the “Confidential Information”); provided, however, that Confidential Information does not include information which (i) is or becomes publicly known other than as a result of the Executive’s actions in violation of this Agreement; (ii) is or becomes available to the Executive from a source (other than the Company or its affiliated companies) that the Executive reasonably believes is not prohibited from disclosing such information to the Executive by a contractual or fiduciary obligation to the Company, (iii) has been made available by the Company or its affiliated companies, directly or indirectly, to a non‐affiliated third party without obligation of confidentiality; (iv) the Executive is obligated to produce as a result of a court order or pursuant to governmental action or proceeding, provided that the Executive gives the Company prompt written notice of such requirement prior to such disclosure and assistance in obtaining an order protecting such Confidential Information from public disclosure; or (v) business knowledge the Executive has acquired unrelated to any specific proprietary information relating to the Company.  The Executive further acknowledges that the Company’s Confidential Information has economic value by virtue of the fact that it is not generally known by Competitors (as defined below) or in the industry at large.  The Executive therefore covenants and agrees that, both during and after the term of his employment with the Company, he will keep secret all Confidential Information and will not disclose, reveal, divulge or otherwise make known any Confidential Information to any person (other than the Company or its employees or agents in the course of performing his duties hereunder) or use any Confidential Information for his own account or for the benefit of any other individual or entity, except with the prior written consent of the Company.

			
	
			
				 (b)
			Ownership of Intellectual Property.  The Executive agrees that all inventions, copyrightable material, software, formulas, trademarks, trade secrets and the like which are developed or conceived by the Executive in the course of his employment by the Company or on the Company’s time or property (collectively, the “Intellectual Property”) shall be disclosed promptly to the Company and the Company shall own all right, title and interest in and to the Intellectual Property.  The parties expressly agree that any and all of the Intellectual Property developed by the Executive shall be considered works made‐for‐hire for the Company pursuant to the United States Copyright Act of 1976, as amended from time to time.  In order to ensure that the Company shall own all right, title and interest in and to the Intellectual Property in the event that any of the Intellectual Property is not deemed a work made‐for‐hire (as defined in the 

		
			
		

		 

		

			10

		

 

		
			Copyright Act of 1976) and in any other event, the Executive hereby sells and assigns all right, title and interest in and to all such Intellectual Property to the Company, and the Executive covenants and agrees to affix to the Intellectual Property appropriate legends and copyright notices indicating the Company’s ownership of all Intellectual Property and all underlying documentation to the extent reasonably appropriate, and shall execute such instruments of transfer, assignment, conveyance or confirmation as the Company reasonably considers necessary to transfer, confirm, vest, perfect, maintain or defend the Company’s right, title and interest in and to the Intellectual Property throughout the world.  The Executive’s obligation under this Section 9(b) to assign to the Company inventions created or conceived by him shall not apply to an invention that he developed entirely on his own time without using the Company’s equipment, supplies, facilities, or trade secret information, provided that those inventions (i) do not or did not relate directly, at the time of conception or reduction to practice of the invention, to the Company’s business as conducted at such time or actual or demonstrably anticipated research or development of the Company; and (ii) do not or did not result from any work performed by him for the Company.
		

			
	
			
				 (c)
			Non‐Solicitation.  The Executive agrees that during the Restricted Period, he shall not solicit the services or employment or engage the services or employ anyone who is then (or who was within the six months prior thereto) an employee of the Company or its affiliated companies.   

			
	
			
				 (d)
			Non‐Competition.  The Executive acknowledges and agrees that, by virtue of his position with the Company, and the sensitive nature of the Confidential Information, business strategies and plans to which he has been and will be privy during the course of his employment, his work for a Competitor of the Company after leaving the Company’s employ would pose a material threat to the Company’s competitive position.  Moreover, the Executive acknowledges and agrees that it would be impossible for him to segregate his knowledge of the Company’s Confidential Information from his memory, such that he could guarantee that he would not be making use of, whether intentionally or unintentionally, directly or indirectly, such knowledge in the course of his work for a Competitor.  Given this understanding, the Executive agrees that there must be a period of time following the termination of his employment or service with the Company during which he must not work for a Competitor, in order to ensure the protection of the Company’s Confidential Information.  The Executive agrees that the Restricted Period is reasonable and necessary to accomplish this protection, and accordingly, during the Restricted Period, the Executive agrees not to compete directly or indirectly by becoming a principal, partner, shareholder, equity holder, limited liability company member, agent, officer, other employee, advisor, consultant, member of a board of directors, or by becoming interested in any other capacity, with any business that competes anywhere in the United States with any activity of the Company or its affiliates conducted at any time during the two years prior to termination, or conducted during the six months period following the termination, as a result of plans initiated prior to such termination, including acquisitions (collectively, “Competitors”).

			
	
			
				 (e)
			Authorization to Work for the Company.  The Executive represents that he is legally authorized to work in the United States and that his employment with the Company shall not constitute a violation of any contractual or other legal obligation he may have to another entity or employer.

		
			
		

		 

		

			11

		

 

			
	
			
				 (f)
			Return of Company Property.  Upon the termination of the Executive’s employment or service with the Company, or as earlier requested by the Company, the Executive agrees to return to the Company all Company documents (and all copies thereof) and other Company property in the Executive’s possession or control, including, but not limited to, Company files, correspondence, memos, notebooks, notes, drawings, records, business plans and forecasts, financial information, specifications, computer recorded information, tangible property and equipment, credit cards, entry cards, identification badges and keys; and any materials of any kind that contain or embody any proprietary or confidential information of the Company (and all reproductions thereof in whole or in part) (collectively, the “Company Property”).  The Executive agrees to conduct a good faith and diligent search of the Executive’s belongings in advance of the aforementioned deadline to ensure the Executive’s compliance with the provisions of this Section 8.

			
	
			
				 (g)
			Consequences of Breach.   The Executive agrees that the restrictions specified in this Section 8 are reasonable and necessary to protect the Confidential Information and goodwill of the Company and its affiliated companies and are intended to operate for the entire period specified and within the geographical area specified above.  The Executive further agrees that abiding by the restrictions specified in this Section 8 will not materially impinge in his ability to make a living and to support himself and his family.  The Executive further acknowledges and agrees that the Executive will not object to the Company or its affiliated companies, or any of their respective successors in interest, defending the enforceability of this Section 8.  The parties to this Agreement agree that (i) if the Executive breaches the provisions set forth in this Section 8, the damage to the Company may be substantial, although difficult to ascertain, and money damages will not afford the Company an adequate remedy, (ii) if the Executive is in breach of any provision of this Section 8 or threatens a breach of any provision of this Section 8, the Company shall be entitled, in addition to all other rights and remedies as may be provided by law, to seek specific performance and injunctive and other equitable relief to prevent or restrain a breach of any provision of this Section 8.  The Executive further acknowledges that he is voluntarily and knowingly agreeing to the post‐termination restrictions described in this Section 8 in consideration of the termination payments and benefits described in Section 5, and that the Company shall have no obligation to provide such termination payments or benefits if the Executive breaches any provision of this Section 8.

			
	
			
				 9.
			Binding on Successors.  This Agreement may be assigned by the Company to a successor by merger, acquisition, consolidation or otherwise to the business formerly carried on by the Company and shall be binding upon the Company and any entity which is a successor by merger, acquisition, consolidation or otherwise to the business formerly carried on by the Company, or an affiliate of any such entity, and becomes the Executive’s employer by reason of (or as the direct result of) any direct or indirect sale or other disposition of the Company or substantially all of the assets of the business currently carried on by the Company, without regard to whether or not such person actively adopts this Agreement.

			
	
			
				 10.
			Arbitration.  The parties agree that any future disputes between the Executive and the Company under this Agreement including but not limited to disputes relating to the Release shall be resolved by binding arbitration, except where the law specifically forbids the use of arbitration as a final and binding remedy as provided below, except as provided in Section 10(g) below.

		
			
		

		 

		

			12

		

 

			
	
			
				 (a)
			The complainant shall provide the other party a written statement of the claim.  Such statement shall identify any supporting witnesses or documents and the relief requested.

			
	
			
				 (b)
			The respondent shall furnish a statement of the relief, if any, that it is willing to provide, and identifying supporting witnesses or documents.  If the matter is not resolved, the parties agree to submit their dispute to a non‐binding mediation paid for by the Company; provided, however, that if the amount in dispute is $50,000 or less, this step may be waived at the election of either party.

			
	
			
				 (c)
			If the matter is not resolved, the parties agree that the dispute shall be resolved by binding arbitration pursuant to the commercial arbitration rules of the International Institute for Conflict Prevention and Resolution (“CPR”), including any provisions thereof pertaining to discovery.  If the parties are not able to agree upon the selection of an arbitrator, an arbitrator shall be selected according to the applicable procedures established by the CPR.

			
	
			
				 (d)
			The arbitrator shall have the authority to determine whether the conduct complained of in Section 10(a) violates the complainant’s rights under this Agreement and, if so, to grant any relief authorized by law; subject to the provisions of Section 10(g) below.  The arbitrator shall not have the authority to modify, change or refuse to enforce any lawful term of this Agreement and the Release.

			
	
			
				 (e)
			The Company shall pay for the arbitrator’s fees, while each party shall pay its own attorneys’ fees.

			
	
			
				 (f)
			Arbitration shall be the exclusive final remedy for any dispute between the parties under this Agreement and disputes involving claims for discrimination or harassment (such as claims under the Fair Employment and Housing Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, or the Age Discrimination in Employment Act), wrongful termination, breach of contract, breach of public policy, physical or mental harm or distress or any other disputes, and the parties agree that no dispute shall be submitted to arbitration where the complainant has not complied with the preliminary steps provided for in Sections 10(a) and (b) above.

			
	
			
				 (g)
			The parties agree that the arbitration award shall be enforceable in any court having jurisdiction to enforce this Agreement and the Release, so long as the arbitrator’s findings of fact are supported by substantial evidence on the whole and the arbitrator has not made errors of law; provided, however, that either party may bring an action in a court of competent jurisdiction, regarding or related to matters involving the Company’s confidential, proprietary or trade secret information, or regarding or related to inventions that the Executive may claim to have developed prior to or after joining the Company, seeking preliminary injunctive relief in court to preserve the status quo or prevent irreparable injury before the matter can be heard in arbitration.

			
	
			
				 (h)
			The arbitration shall be held at a location within Salt Lake City, Utah, unless the parties mutually agree to a different location for the arbitration.

			
	
			
				 (i)
			If the Executive wishes to contest or dispute a termination for Cause by the Company, or any failure to make payments claimed to be due hereunder, the Executive must 

		
			
		

		 

		

			13

		

 

		
			give written notice of such dispute within ninety (90) calendar days of receiving a notice of termination.  The Executive may, at either the Executive’s or the Company’s option, be suspended from all duties during the pendency of such a contest or dispute.  If the Executive prevails in any such contest or dispute, the Company or its successor or assign shall thereupon be liable for the full amounts due under Section 5 as of the date of termination after adjustments for amounts already paid.
		

			
	
			
				 11.
			Indemnification.  The Company has entered into an indemnification agreement with the Executive, which agreement is incorporated by reference.

			
	
			
				 12.
			Withholding Taxes.  All payments made under this Agreement shall be subject to reduction to reflect taxes or other charges required to be withheld by law.

			
	
			
				 13.
			Choice of Law and Severability; Jurisdiction and Venue.  This Agreement shall be deemed to have been entered into and shall be construed and enforced in accordance with the laws of the State of Utah irrespective of any conflicts of law analysis.  If any provision of this Agreement becomes or is deemed invalid, illegal or unenforceable in any applicable jurisdiction by reason of the scope, extent or duration of its coverage, then such provision shall be deemed amended to the minimum extent necessary to conform to applicable law so as to be valid and enforceable or, if such provision cannot be so amended without materially altering the intention of the parties, then such provision shall be stricken and the remainder of this Agreement shall continue in full force and effect.  If any provision of this Agreement is rendered illegal by any present or future statute, law, ordinance or regulation (collectively the “Law”), then such provision shall be curtailed or limited only to the minimum extent necessary to bring such provision into compliance with the Law.  All the other terms and provisions of this Agreement shall continue in full force and effect without impairment or limitation.  Subject to the mandatory arbitration provided in Section 9 above, jurisdiction and venue in any action to enforce any arbitration award or to enjoin any action that violates the terms of this Agreement shall be in the state and federal courts serving the locality of Salt Lake City, Utah.

			
	
			
				 14.
			Miscellaneous.

			
	
			
				 (a)
			This Agreement constitutes the complete, final and exclusive embodiment of the entire agreement between the Executive and the Company with regard to the terms and conditions of the Executive’s employment with the Company and the Executive’s anticipated termination of employment and supersedes all prior agreements with respect thereto, including without limitation the Prior Agreement; provided, however, that the Change in Control Agreement shall remain in effect and shall not be superseded by this Agreement except as expressly provided herein.  It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations and any other written or oral statements concerning the Executive’s rights to any compensation, equity, or benefits from the Company, its predecessors or successors in interest.

			
	
			
				 (b)
			This Agreement may not be modified or amended except in a writing signed by both the Executive and an authorized member of the Board (other than the Executive).  This Agreement shall bind the heirs, personal representatives, successors and assigns of both the 

		
			
		

		 

		

			14

		

 

		
			Executive and the Company, and inure to the benefit of both the Executive and the Company, their heirs, successors and assigns.  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. Headings and subheadings in this Agreement are solely for convenience and do not constitute terms of this Agreement.
		

			
	
			
				 (c)
			This Agreement may be signed in counterparts and the counterparts taken together shall constitute one agreement.  Facsimile or photocopied signatures shall be deemed as effective as original signatures.

			
	
			
				 (d)
			Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid.  In the case of the Executive, mailed notices shall be addressed to him at the home address that he most recently communicated to the Company in writing.  In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary with a copy to Chairman of the Compensation Committee.

		
			IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized Chairman of the Compensation Committee, as of this 23rd day of June 2014.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						EXECUTIVE

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/ Kirk A. Benson

				
	
					
						 

					
					
						Kirk A. Benson

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						HEADWATERS INCORPORATED

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Malyn K. Malquist

				
	
					
						 

					
					
						 

					
					
						Malyn K. Malquist

				
	
					
						 

					
					
						Title:

					
					
						Chairman, Compensation Committee

				

		
			 
		

		
			
		

		
			

		 

		

			15

		

 

EXHIBIT 2
		

		
			GENERAL RELEASE LANGUAGE
		

		
			Executive agrees, for himself, his spouse, heirs, executor or administrator, assigns, insurers, attorneys and other persons or entities acting or purporting to act on his behalf (the “Executive’s Parties”), to irrevocably and unconditionally release, acquit and forever discharge the Company, its parent, affiliates, subsidiaries, directors, officers, employees, shareholders, partners, agents, representatives, predecessors, successors, assigns, insurers, attorneys, benefit plans sponsored by the Company and said plans’ fiduciaries, agents and trustees (the “Company’s Parties”), from any and all actions, cause of action, suits, claims, obligations, liabilities, debts, demands, contentions, damages, judgments, levies and executions of any kind, whether in law or in equity, known or unknown, which the Executive’s Parties have, have had, or may in the future claim to have against the Company’s Parties by reason of, arising out of, related to, or resulting from Executive’s employment with the Company or the termination thereof.  This release specifically includes without limitation any claims arising in tort or contract, any claim based on wrongful discharge, any claim based on breach of contract, any claim arising under federal, state or local law prohibiting race, sex, age, religion, national origin, handicap, disability or other forms of discrimination, any claim arising under federal, state or local law concerning employment practices, and any claim relating to compensation or benefits.  This specifically includes, without limitation, any claim which the Executive has or has had under Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act, as amended, the Americans with Disabilities Act, as amended, and the Employee Retirement Income Security Act of 1974, as amended.  It is understood and agreed that the waiver of benefits and claims contained in this section does not include a waiver of (i) any indemnification rights the Executive has pursuant to the Company bylaws, agreements, or Board of Director resolutions in effect on the date of this Release and any fiduciary insurance plans in effect on the date of this release or thereafter, (ii) any payments in connection with this Agreement or the Change in Control Agreement, or (iii) the right to payment of any vested, nonforfeitable benefits to which the Executive or a beneficiary of the Executive may be entitled under the terms and provisions of any employee benefit plan of the company which have accrued as of the separation date and does not include a waiver of the right to benefits and payment of consideration to which Executive may be entitled under this Agreement or any of the agreements contemplated hereby (including the indemnification agreement and the stock option agreements).  Executive acknowledges that he is only entitled to the severance benefits and compensation set forth in this Agreement, and that all other claims for any other benefits or compensation are hereby waived, except those expressly stated in the preceding sentence.
		

		
			The Company agrees to irrevocably and unconditionally release, acquit and forever discharge Executive from any and all actions, cause of action, suits, claims, obligations, liabilities, debts, demands, contentions, damages, judgments, levies and executions of any kind, whether in law or in equity, known or unknown, which the Company has, has had, or may in the future claim to have against the Executive, liability for which the Company would otherwise be obligated to indemnify the Executive under Delaware law, the Certificate of Incorporation of the Company, the bylaws of the Company, or the Executive’s indemnification agreement with the Company by reason of, arising out of, related to, or resulting from Executive’s employment with the Company 
		

		
			
		

		
			

		 

		

			16

		

 

or the termination thereof (the “Company’s Release”), provided that (i) Executive shall have acted in good faith and in a manner that Executive reasonably believed to be in or not opposed to the best interest of the Company, and shall not have engaged in willful misconduct or breach of an agreement with the Company; and (ii) the Company’s Release shall not extend to any acts or omissions of the Executive for which the Company would be prohibited from indemnifying the Executive under Delaware Law,  the provisions of the Certificate of Incorporation, or  the Bylaws of the Company then in effect or which would excuse, negate, or invalidate the obligations of the insurer under any director and officer liability policy procured by the Company and covering the Executive.
		

		 

		

			17Exhibit
4.3

 

STONERIDGE, INC.

 

2016 LONG-TERM
INCENTIVE PLAN

 

SECTION
1.       Purpose; Definitions.

 

The purpose of the Stoneridge, Inc. 2016 Long-Term Incentive
Plan (the “LTIP”) is to enable Stoneridge, Inc. (the “Company”) and its Subsidiaries (as defined below)
to attract, retain and reward key employees of the Company and of its Subsidiaries and to strengthen the mutuality of interests
between those employees and the Company’s shareholders by offering such employees equity or equity-based incentives thereby
increasing their proprietary interest in the Company’s business and enhancing their personal interest in the Company’s
success.

 

For purposes of the LTIP, the following terms are defined as
follows:

 

(a)          “Award”
means any award of Stock Options, Restricted Shares, Restricted Share Units, Performance Shares, Performance Share Units, Deferred
Shares, Share Purchase Rights, Share Appreciation Rights or Other Share-Based Awards under the LTIP.

 

(b)         
“Board” means the Board of Directors of the Company.

 

(c)          “Cause”
means, unless otherwise provided by the Committee, (i) “Cause” as defined in any Individual Agreement to which
the participant is a party, or (ii) if there is no such Individual Agreement or if it does not define Cause:

 

(1)         misappropriation
of funds from the Company or dishonesty in the course of fulfilling the participant’s employment duties;

 

(2)         conviction
of a felony;

 

(3)         commission
of a crime or act or series of acts involving moral turpitude;

 

(4)         commission
of an act or series of acts of dishonesty that are materially inimical to the best interests of the Company;

 

(5)         breach
of any material term of an employment agreement, if any;

 

(6)         willful
and repeated failure to perform the duties associated with the participant’s position, which failure has not been cured within
thirty (30) days after the Company gives notice thereof to the participant; or

 

(7)         failure
to cooperate with any Company investigation or with any investigation, inquiry, hearing or similar proceedings by any governmental
authority having jurisdiction over the participant or the Company.

 

     

     

    

 

The Committee shall, unless otherwise provided in an
Individual Agreement with the participant, have the sole discretion to determine whether “Cause” exists, and its determination
shall be final.

 

(d)          “Change
in Control” has the meaning set forth in Section 11(b).

 

(e)          “Change
in Control Price” has the meaning set forth in Section 11(d).

 

(f)          “Code”
means the Internal Revenue Code of 1986, as amended, and any lawful regulations or other lawful guidance promulgated thereunder.
Whenever a reference is made to a specific Code Section, such reference shall be deemed to include any successor Code Section having
the same or similar purpose.

 

(g)          “Committee”
means the Committee referred to in Section 2 of the LTIP.

 

(h)          “Company”
means Stoneridge, Inc., an Ohio corporation, or any successor corporation.

 

(i)           “Deferred
Shares” means an Award of the right to receive Shares at the end of a specified deferral period granted pursuant to Section
7.

 

(j)           “Disability”
generally means a permanent and total disability as defined in Section 22(e)(3) of the Code. However, if Section 409A of the Code
applies, a special definition may be applicable.

 

(k)          “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(l)           “Fair
Market Value” means, as of a given date (in order of applicability): (i) the closing price of a Common Share on the principal
exchange on which the Common Shares are then trading, if any, on the day immediately prior to such date, or if Common Shares were
not traded on the day previous to such date, then on the next preceding trading day during which a sale occurred; or (ii) if Common
Shares are not traded on an exchange but are quoted on NASDAQ or a successor quotation system, (A) the last sale price (if Common
Shares are then listed as a National Market Issue under the NASD National Market System) or (B) if Common Shares are not then so
listed, the mean between the closing representative bid and asked prices for Common Shares on the day previous to such date as
reported by NASDAQ or such successor quotation system; or (iii) if Common Shares are not publicly traded on an exchange and not
quoted on NASDAQ or a successor quotation system, the mean between the closing bid and asked prices for Common Shares, on the day
previous to such date, as determined in good faith by the Committee; or (iv) if Common Shares are not publicly traded, the fair
market value established by the Committee acting in good faith.

 

(m)         “Incentive
Stock Option” means any Stock Option intended to be and designated as, and that otherwise qualifies as, an “Incentive
Stock Option” within the meaning of Section 422 of the Code.

 

    	 	2	 

     

    

 

(n)          “Individual
Agreement” means an employment or similar agreement between a participant and the Company or one of its Subsidiaries.

 

(o)          “LTIP”
means the Stoneridge, Inc. 2016 Long-Term Incentive Plan, as amended from time to time.

 

(p)          “Non-Employee
Director” has the meaning set forth in Section 16 of the Exchange Act, or any successor definition adopted by the Securities
and Exchange Commission (the “Commission”).

 

(q)          “Non-Qualified
Stock Option” means any Stock Option that is not an Incentive Stock Option.

 

(r)          “Other
Share-Based Awards” means an Award granted pursuant to Section 11 that is valued, in whole or in part, by reference
to, or is otherwise based on, Shares.

 

(s)          “Outside
Director” has the meaning set forth in Section 162(m) of the Code.

 

(t)          “Performance
Shares” has the meaning set forth in Section 10.

 

(u)          “Performance
Share Units” has the meaning set forth in Section 10.

 

(v)         “Restricted
Shares” means an Award of Shares that is granted pursuant to Section 6 and is subject to restrictions.

 

(w)        “Restricted
Share Units” means an Award of Restricted Share Units that is granted pursuant to Section 6 and is subject to restrictions.

 

(x)          “Section
16 Participant” means a participant under the LTIP who is then subject to Section 16 of the Exchange Act.

 

(y)          “Shares”
means the Common Shares, without par value, of the Company.

 

(z)          “Share
Appreciation Right” means an Award of a right to receive an amount from the Company that is granted pursuant to Section
9.

 

(aa)       “Stock
Option” or “Option” means any option to purchase Shares (including Restricted Shares and Deferred
Shares, if the Committee so determines) that is granted pursuant to Section 5.

 

(bb)       “Share
Purchase Right” means an Award of the right to purchase Shares that is granted pursuant to Section 8.

 

(cc)       “Subsidiary”
means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company if each of the corporations
(other than the last corporation in the unbroken chain) owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in that chain. For purposes of Section 409A of the Code “at least 50%”
is to be used instead of “at least 80%” in applying the tests to determine whether a corporation is a service recipient.

 

    	 	3	 

     

    

 

SECTION
2.       Administration.

 

The LTIP shall be administered by the Compensation Committee
of the Board or such other committee authorized by the Board to administer the LTIP (the “Committee”), or absent the
Committee, the full Board. The Committee shall consist of not less than three directors of the Company all of whom shall be Outside
Directors, Non-Employee Directors and Independent Directors (as defined by the listing standards of the NYSE if the Company’s
Shares are traded on the New York Stock Exchange). Those directors shall be appointed by the Board and shall serve as the Committee
at the pleasure of the Board.

 

The Committee shall have full power to interpret and administer
the LTIP and full authority to select the individuals to whom Awards will be granted and to determine the type and amount of any
Awards to be granted to each participant, the consideration, if any, to be paid for any Awards, the timing of any Awards, the terms
and conditions of any Award granted under the LTIP, and the terms and conditions of the related agreements that will be entered
into with participants. As to the selection of and grant of Awards to participants who are not executive officers of the Company
or any Subsidiary or Section 16 Participants, the Committee may delegate its responsibilities to members of the Company’s
management in a manner consistent with applicable law and provided that such participant’s compensation is not subject to
the limitations of Section 162(m) of the Code.

 

The Committee shall have the authority to adopt, alter and repeal
such rules, guidelines and practices governing the LTIP as it shall, from time to time, deem advisable; to interpret the terms
and provisions of the LTIP and any Award issued under the LTIP (and any agreements relating thereto); to direct employees of the
Company or other advisors to prepare such materials or perform such analyses as the Committee deems necessary or appropriate; and
otherwise to supervise the administration of the LTIP.

 

Any interpretation or administration of the LTIP by the Committee,
and all actions and determinations of the Committee, shall be final, binding and conclusive on the Company, its shareholders, Subsidiaries,
affiliates, all participants in the LTIP, their respective legal representatives, successors and assigns, and all persons claiming
under or through any of them. No member of the Board or of the Committee shall incur any liability for any action taken or omitted,
or any determination made, in good faith in connection with the LTIP.

 

SECTION
3.       Shares Subject to the LTIP.

 

(a)          Aggregate
Shares Subject to the LTIP. Subject to adjustment as provided in Section 3(c), the total number of Shares reserved and available
for Awards under the LTIP is 1,800,000, pursuant to which the maximum number of Shares which may be issued subject to Incentive
Stock Options is 250,000. Any Shares issued hereunder may consist, in whole or in part, of authorized and unissued shares or treasury
shares.”

 

    	 	4	 

     

    

 

(b)          Forfeiture
or Termination of Awards of Shares and Recycling. If any Shares subject to any Award granted hereunder are forfeited or an
Award otherwise terminates or expires without the issuance of Shares, the Shares subject to that Award shall again be available
for distribution in connection with future Awards under the LTIP as set forth in Section 3(a), unless the participant who had been
awarded those forfeited Shares or the expired or terminated Award has theretofore received dividends or other benefits of ownership
with respect to those Shares. For purposes hereof, a participant shall not be deemed to have received a benefit of ownership with
respect to those Shares by the exercise of voting rights or the accumulation of dividends that are not realized because of the
forfeiture of those Shares or the expiration or termination of the related Award without issuance of those Shares. However, the
following Shares shall not be available for issuance under the LTIP: (i) Shares not issued due to a net settlement of a Stock Option
or Share Appreciation Right; (ii) Shares used to pay the exercise price or for withholding purposes such as for Stock Options or
Stock Appreciation Rights; (iii) Shares which the Company may repurchase on the open market with proceeds from a Stock Option exercise;
(iv) Shares delivered to the Company to satisfy withholding requirements for Restricted Shares; or (v) other Shares acquired or
retained in similar fashion.

 

(c)          Adjustment.
In the event of any dividend (other than a regular cash dividend) or other distribution (whether in the form of cash, Shares, other
securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation,
acquisition, split-up, spinoff, combination, repurchase, liquidation, dissolution, or sale, transfer, exchange or other disposition
of all or substantially all of the assets of the Company, or exchange of Shares or other securities of the Company, issuance of
warrants or other rights to purchase Shares or other securities of the Company, or other similar corporate transaction or event
(an “Event”), and in the Committee’s opinion, such Event affects the Shares such that an adjustment is determined
by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to
be made available under the LTIP or with respect to an Award, then the Committee shall, in such manner as it may deem equitable,
including, without limitation, adjust any or all of the following: (i) the number of Shares (or other securities or property) with
respect to which Awards may be granted or awarded; (ii) the number of Shares (or other securities or property) subject to outstanding
Awards; (iii) the grant or exercise price with respect to any Award; and (iv) the applicable limitations for grants to a participant
under Section 3. The Committee determination under this Section 3(c) shall be final, binding and conclusive. Any such adjustment
made to an Incentive Stock Option shall be made in accordance with Section 424(a) of the Code and any adjustment to any other Award
that is subject to Section 409A of the Code shall be made in accordance with Section 409A of the Code, unless otherwise determined
by the Committee, in its sole discretion.

 

    	 	5	 

     

    

 

Upon the occurrence of an Event
in which outstanding Awards are not to be assumed or otherwise continued following such an Event, the Committee may, in its discretion,
terminate any outstanding Award without a participant’s consent and (i) provide for either the purchase of any such Award
for an amount of cash equal to the amount that could have been attained upon the exercise of such Award or realization of the participant’s
rights had such Award been currently exercisable or payable or fully vested (or without any payment if the Fair Market Value of
one Share on the date of the Event is less than the per share exercise price of a Stock Option or Share Appreciation Right) or
the replacement of such Award with other rights or property selected by the Committee in its sole discretion and/or (ii) provide
that such Award shall be exercisable (whether or not vested) as to all shares covered thereby for at least 10 days prior to such
Event.

 

The existence of the LTIP, Award
agreements and the Awards granted hereunder shall not affect or restrict in any way the right or power of the Company or the shareholders
of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital
structure or its business, any merger or consolidation of the Company, any issue of stock or of options, warrants or rights to
purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Shares
or the rights thereof or which are convertible into or exchangeable for Shares, or the dissolution or liquidation of the Company,
or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar
character or otherwise.

 

(d)          Annual
Award Limit. No participant may be granted Stock Options, Share Appreciation Rights or other Awards, including any Performance
Shares (whether or not subject to Section 162(m) of the Code), under the LTIP with respect to an aggregate of more than 400,000
Shares (subject to adjustment as provided in Section 3(c) hereof) during any one calendar year or with respect to the following
(subject to adjustment as provided in Section 3(c)) during any one calendar year:

 

(1)         Cash,
including Restricted Share Units with performance criteria and goals and Performance Share Units - $1,500,000;

 

(2)         Full
value share awards (e.g. Restricted Shares, Restricted Share Units, Performance Shares or Deferred Shares) – 400,000 Shares;
and

 

(3)         Stock
Options (Incentive Stock Options and Non-Qualified Stock Options) and Share Appreciation Rights – 100,000 Shares.

 

SECTION
4.       Eligibility.

 

Grants may be made from time to time to those officers and other
key employees of the Company who are designated by the Committee in its sole and exclusive discretion. Eligible persons may include,
but shall not necessarily be limited to, officers and key employees of the Company and any Subsidiary; however, Stock Options intended
to qualify as Incentive Stock Options shall be granted only to eligible persons while actually employed by the Company or a Subsidiary.
The Committee may grant more than one Award to the same eligible person. No Award shall be granted to any eligible person during
any period of time when such eligible person is on a leave of absence.

 

    	 	6	 

     

    

 

SECTION
5.       Stock Options.

 

(a)          Grant.
Stock Options may be granted alone, in addition to or in tandem with other Awards granted under the LTIP or cash awards made
outside the LTIP. The Committee shall determine the individuals to whom, and the time or times at which, grants of Stock Options
will be made, the number of Shares purchasable under each Stock Option, and the other terms and conditions of the Stock Option
in addition to those set forth in Sections 5(b) and 5(c). Any Stock Option granted under the LTIP shall be in such form as the
Committee may from time to time approve.

 

Stock Options granted under the
LTIP may be of two types which shall be indicated on their face: (i) Incentive Stock Options and (ii) Non-Qualified Stock Options.
Subject to Section 5(c) hereof, the Committee shall have the authority to grant to any participant Incentive Stock Options, Non-Qualified
Stock Options or both types of Stock Options.

 

(b)          Terms
and Conditions. Options granted under the LTIP shall be evidenced by an agreement (“Option Agreements”), shall
be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with
the terms of the LTIP, as the Committee shall deem desirable:

 

(1)         Option
Price. The option price per share of Shares purchasable under a Non-Qualified Stock Option or an Incentive Stock Option shall
be determined by the Committee at the time of grant and shall be not less than 100% of the Fair Market Value of the Shares at the
date of grant (or, with respect to an Incentive Stock Option, 110% of the Fair Market Value of the Shares at the date of grant
in the case of a participant who at the date of grant owns Shares possessing more than 10% of the total combined voting power of
all classes of stock of the Company or its parent or Subsidiary corporations (as determined under Sections 424(d), (e) and (f)
of the Code)).

 

(2)         Option
Term. The term of each Stock Option shall be determined by the Committee and may not exceed ten years from the date the Option
is granted (or, with respect to an Incentive Stock Options, five years in the case of a participant who at the date of grant owns
Shares possessing more than 10% of the total combined voting power of all classes of stock of the Company or its parent or Subsidiary
corporations (as determined under Sections 424(d), (e) and (f) of the Code)).

 

    	 	7	 

     

    

 

(3)         Exercise.
Stock Options shall be exercisable at such time or times and shall be subject to such terms and conditions as shall be determined
by the Committee at grant; but, except as provided in Section 5(b)(6) and Section 11, unless otherwise determined by the Committee
at or after grant, no Stock Option shall be exercisable prior to one year following the date of grant. If any Stock Option is exercisable
only in installments or only after specified exercise dates, the Committee may waive, in whole or in part, such installment exercise
provisions, and may accelerate any exercise date or dates, at any time at or after grant based on such factors as the Committee
shall determine, in its sole discretion.

 

(4)         Method
of Exercise. Subject to any installment exercise provisions that apply with respect to any Stock Option, and the six-month
and one day holding period set forth in Section 5(b)(3), a Stock Option may be exercised in whole or in part, at any time during
the Option period, by the holder thereof giving to the Company written notice of exercise specifying the number of Shares to be
purchased.

 

That notice shall be accompanied
by payment in full of the Option price of the Shares for which the Option is exercised, in cash or mature Shares or by check or
such other instrument as the Committee may accept. The value of each such Share surrendered or withheld shall be 100% of the Fair
Market Value of the Shares on the date the option is exercised.

 

No Shares shall be issued on an
exercise of an Option until full payment has been made. A participant shall not have rights to dividends or any other rights of
a shareholder with respect to any Shares subject to an Option unless and until the participant has given written notice of exercise,
has paid in full for those Shares, has given, if requested, the representation described in Section 15(a) and those Shares have
been issued to him.

 

(5)         Non-Transferability
of Options. No Stock Option shall be transferable by any participant other than by will or by the laws of descent and distribution
or pursuant to a qualified domestic relations order (as defined in the Code or the Employee Retirement Income Security Act of 1974,
as amended) except that, if so provided in the Option Agreement, the participant may transfer without consideration the Option,
other than an Incentive Stock Option, during the participant’s lifetime to one or more members of the participant’s
family, to one or more trusts for the benefit of one or more of the participant’s family, or to a partnership or partnerships
of members of the participant’s family, or to a charitable organization as defined in Section 501(c)(3) of the Code, provided
that the transfer would not result in the loss of any exemption under Rule 16b-3 of the Exchange Act with respect to any Option.
The transferee of an Option will be subject to all restrictions, terms and conditions applicable to the Option prior to its transfer,
except that the Option will not be further transferable by the transferee other than by will or by the laws of descent and distribution.

 

    	 	8	 

     

    

 

(6)         Termination
of Employment.

 

(i)          Termination
by Death. Subject to Sections 5(b)(3) and 5(c), if any participant’s employment with the Company or any Subsidiary terminates
by reason of death, any Stock Option held by that participant shall become immediately and automatically vested and exercisable.
If termination of a participant’s employment is due to death, then any Stock Option held by that participant may thereafter
be exercised for a period of two years (or with respect to an Incentive Stock Option, for a period of one year) (or such other
period as the Committee may specify at grant) from the date of death. Notwithstanding the foregoing, in no event will any Stock
Option be exercisable after the expiration of the option period of such Option. The balance of the Stock Option shall be forfeited
if not exercised within two years (or one year with respect to Incentive Stock Options).

 

(ii)         Termination
by Reason of Disability. Subject to Sections 5(b)(3) and 5(c), if a participant’s employment with the Company or any
Subsidiary terminates by reason of Disability, any Stock Option held by that participant shall become immediately and automatically
vested and exercisable. If termination of a participant’s employment is due to Disability, then any Stock Option held by
that participant may thereafter be exercised by the participant or by the participant’s duly authorized legal representative
if the participant is unable to exercise the Option as a result of the participant’s Disability, for a period of two years
(or with respect to an Incentive Stock Option, for a period of one year) (or such other period as the Committee may specify at
grant) from the date of such termination of employment; and if the participant dies within that two-year period (or such other
period as the Committee may specify at or after grant), any unexercised Stock Option held by that participant shall thereafter
be exercisable by the estate of the participant (acting through its fiduciary) for the duration of the two-year period from the
date of that termination of employment. Notwithstanding the foregoing, in no event will any Stock Option be exercisable after the
expiration of the option period of such Option. The balance of the Stock Option shall be forfeited if not exercised within two
years (or one year with respect to Incentive Stock Options).

 

(iii)        Termination
for Cause. Unless otherwise determined by the Committee at or after the time of granting any Stock Option, if a participant’s
employment with the Company or any Subsidiary terminates for Cause, any unvested Stock Options will be forfeited and terminated
immediately upon termination and any vested Stock Options held by that participant shall terminate 30 days after the date employment
terminates. Notwithstanding the foregoing, in no event will any Stock Option be exercisable after the expiration of the option
period of such Option. The balance of the Stock Option shall be forfeited.

 

    	 	9	 

     

    

 

(iv)        Other
Termination. Unless otherwise determined by the Committee at or after the time of granting any Stock Option, if a participant’s
employment with the Company or any Subsidiary terminates for any reason other than death, Disability or for Cause, all Stock Options
held by that participant shall thereupon terminate six months after the date employment terminates (or three months in the case
of Incentive Stock Options). Notwithstanding the foregoing, in no event will any Stock Option be exercisable after the expiration
of the option period of such Option. The balance of the Stock Option shall be forfeited.

 

(v)         Leave
of Absence. In the event a participant is granted a leave of absence by the Company or any Subsidiary to enter military service
or because of sickness, the participant’s employment with the Company or such Subsidiary will not be considered terminated,
and the participant shall be deemed an employee of the Company or such Subsidiary during such leave of absence or any extension
thereof granted by the Company or such Subsidiary. Notwithstanding the foregoing, in the case of an Incentive Stock Option, a leave
of absence of more than three months will be viewed as a termination of employment unless continued employment is guaranteed by
contract or statute.

 

(c)          Incentive
Stock Options. Notwithstanding Sections 5(b)(5) and (6), an Incentive Stock Option shall be exercisable by (i) a participant’s
authorized legal representative (if the participant is unable to exercise the Incentive Stock Option as a result of the participant’s
Disability) only if, and to the extent, permitted by Section 422 of the Code and (ii) by the participant’s estate, in the
case of death, or authorized legal representative, in the case of Disability, no later than ten years from the date the Incentive
Stock Option was granted (in addition to any other restrictions or limitations that may apply). Anything in the LTIP to the contrary
notwithstanding, no term or provision of the LTIP relating to Incentive Stock Options shall be interpreted, amended or altered,
nor shall any discretion or authority granted under the LTIP be exercised, so as to disqualify the LTIP under Section 422 of the
Code, or, without the consent of the participants affected, to disqualify any Incentive Stock Option under such Section 422 or
any successor section thereto.

 

    	 	10	 

     

    

 

SECTION
6.       Restricted Shares and Restricted Share Units.

 

(a)          Grant.
Restricted Shares may be issued alone, in addition to or in tandem with other Awards under the LTIP or cash awards made outside
the LTIP. The Committee shall determine the individuals to whom, and the time or times at which, grants of Restricted Shares will
be made, the number of Restricted Shares to be awarded to each participant, the price (if any) to be paid by the participant (subject
to Section 6(b)), the date or dates upon which Restricted Share Awards will vest and the period or periods within which those Restricted
Share Awards may be subject to forfeiture, and the other terms and conditions of those Awards in addition to those set forth in
Section 6(b).

 

The Committee may condition the vesting of Restricted
Shares upon the attainment of specified performance goals or such other factors as the Committee may determine in its sole discretion.

 

(b)          Terms
and Conditions. Restricted Shares awarded under the LTIP shall be subject to the following terms and conditions and such additional
terms and conditions, not inconsistent with the provisions of the LTIP, as the Committee shall deem desirable. A participant who
receives a Restricted Share Award shall not have any rights with respect to that Award, unless and until the participant has executed
an agreement evidencing the Award in the form approved from time to time by the Committee and has delivered a fully executed copy
thereof to the Company, and has otherwise complied with the applicable terms and conditions of that Award.

 

(1)         The
purchase price (if any) for Restricted Shares shall be determined by the Committee at the time of grant.

 

(2)         Awards
of Restricted Shares must be accepted by executing a Restricted Share Award agreement and paying the price (if any) that is required
under Section 6(b)(1).

 

(3)         The
Committee shall determine in its discretion the manner of delivery of Restricted Shares subject to a Restricted Share Award. Such
delivery may be in the form of one or more Share certificates, an electronic account entry into a new or existing account, or any
other means the Committee in its discretion shall deem appropriate. If one or more physical certificates are issued, the certificate(s)
shall be registered in the name of the participant and shall bear an appropriate legend referring to the terms, conditions and
restrictions applicable to the Award.

 

(4)         If
the Committee determines that delivery should be in the form of one or more Share certificates, the Committee shall require that
the stock certificates evidencing such Restricted Shares be held in custody by the Company until the restrictions thereon shall
have lapsed, and that, as a condition of any Restricted Share Award the participant shall have delivered to the Company a stock
power, endorsed in blank, relating to the Shares covered by that Award.

 

    	 	11	 

     

    

 

(5)         Subject
to the provisions of this LTIP and the Restricted Share Award agreement, during a period set by the Committee commencing with the
date of any Award (the “Restriction Period”), the participant shall not be permitted to sell, transfer, pledge, assign
or otherwise encumber the Restricted Shares covered by that Award. The Restriction Period shall not be less than one year in duration
(“Minimum Restriction Period”) unless otherwise determined by the Committee at the time of grant. Subject to these
limitations and the Minimum Restriction Period requirements, the Committee, in its sole discretion, may provide for the lapse of
such restrictions in installments and may accelerate or waive such restrictions, in whole or in part, based on service, performance
or such other factors and criteria as the Committee may determine, in its sole discretion.

 

(6)         Except
as provided in this Section 6(b)(6), Section 6(b)(5) and Section 6(b)(7) the participant shall have, with respect to the Restricted
Shares awarded, all of the rights of a shareholder of the Company, including the right to vote the Shares, and the right to receive
any dividends. The Committee, in its sole discretion, as determined at the time of an Award, may require the payment of cash dividends
to be deferred and subject to forfeiture and, if the Committee so determines, reinvested, subject to Section 15(f), in additional
Restricted Shares to the extent Shares are available under Section 3, or otherwise reinvested. Unless the Committee or Board determines
otherwise, Share dividends issued with respect to Restricted Shares shall be treated as additional Restricted Shares that are subject
to the same restrictions and other terms and conditions that apply to the Shares with respect to which such dividends are issued.

 

(7)         No
Restricted Shares shall be transferable by a participant other than by will or by the laws of descent and distribution or pursuant
to a qualified domestic relations order (as defined in the Code or the Employee Retirement Income Security Act of 1974, as amended)
except that, if so provided in the Restricted Share Agreement, the participant may transfer without consideration the Restricted
Shares during the participant’s lifetime to one or more members of the participant’s family, to one or more trusts
for the benefit of one or more of the participant’s family, to a partnership or partnerships of members of the participant’s
family, or to a charitable organization as defined in Section 501(c)(3) of the Code, provided that the transfer would not result
in the loss of any exemption under Rule 16b-3 of the Exchange Act with respect to any Restricted Shares. The transferee of Restricted
Shares will be subject to all restrictions, terms and conditions applicable to the Restricted Shares prior to its transfer, except
that the Restricted Shares will not be further transferable by the transferee other than by will or by the laws of descent and
distribution.

 

(8)         Unless
otherwise determined by the Committee at or after the time of granting any Restricted Shares, if a participant’s employment
with the Company or any Subsidiary terminates by reason of death, any Restricted Shares held by such participant shall thereupon
vest and all restrictions thereon shall lapse.

 

    	 	12	 

     

    

 

(9)         Unless
otherwise determined by the Committee at or after the time of granting any Restricted Shares, if a participant’s employment
with the Company or any Subsidiary terminates by reason of Disability, any Restricted Shares held by such participant shall thereupon
vest and all restrictions thereon shall lapse.

 

(10)       Unless
the Committee determines otherwise at any time, in the event of the participant’s termination of employment during the vesting
period for a reason other than due to death or Disability (and other than for Cause), then upon such termination, the amount of
the participant’s Restricted Shares shall be adjusted. The revised Awards shall be determined by multiplying the amount of
the Restricted Shares by the number of months the participant worked at least one day during the respective vesting period divided
by the number of months in the vesting period, to be paid, if at all, at the same time and under the same terms that such outstanding
Restricted Shares would otherwise be paid; provided, however, if the participant is not retirement eligible and terminates
employment voluntarily during the vesting period for a grant of Restricted Shares, then such Award shall be cancelled upon such
termination. A termination shall be deemed to be voluntary if it is recorded as such on the records of the Company, as determined
by the Company in its sole discretion.

 

(c)          Restricted
Share Units. In lieu of or in addition to Restricted Shares, the Committee may grant Restricted Share Units under such terms
and conditions as shall be determined by the Committee. Restricted Share Units shall be subject to the same terms and conditions
under this LTIP as Restricted Shares except as otherwise provided in this LTIP or as otherwise provided by the Committee. Except
as otherwise provided by the Committee, a Restricted Share Unit Award shall be settled and pay out promptly upon vesting (to the
extent permitted by Section 409A of the Code), and the participant holding such Restricted Share Units shall receive, as determined
by the Committee, Shares equal to the number of such Restricted Share Units as to which restrictions lapse, or cash equal to the
Fair Market Value of the number of Shares underlying such Restricted Share Units as of the settlement date. Restricted Share Units
shall not be transferable and shall have no voting rights. If determined by the Committee, a dividend equivalent in an amount equal
to the dividend payable on one Share may be made to a participant for each Restricted Share Unit held by such participant on the
record date for the dividend. Such dividend equivalent, if any, shall only be paid on the number of Restricted Share Units actually
distributed and such payment shall be made when the related Restricted Share Units are distributed.

 

    	 	13	 

     

    

 

SECTION
7.       Shares.

 

(a)          Grant.
Deferred Shares may be awarded alone, in addition to or in tandem with other Awards granted under the LTIP or cash awards made
outside the LTIP. The Committee shall determine the individuals to whom, and the time or times at which, Deferred Shares shall
be awarded, the number of Deferred Shares to be awarded to any participant, the duration of the period (the “Deferral Period”)
during which, and the conditions under which, receipt of the Shares will be deferred, and the other terms and conditions of the
Award in addition to those set forth in Section 7(b).

 

The Committee may condition the
grant of Deferred Shares upon the attainment of specified performance goals or such other factors as the Committee shall determine,
in its sole discretion.

 

(b)          Terms
and Conditions. Deferred Share Awards shall be subject to the following terms and conditions and shall contain such additional
terms and conditions, not inconsistent with the terms of the LTIP, as the Committee shall deem desirable:

 

(1)         The
purchase price for Deferred Shares shall be determined at the time of grant by the Committee. Subject to the provisions of the
LTIP and the Award agreement referred to in Section 7(b)(8), Deferred Share Awards may not be sold, assigned, transferred, pledged
or otherwise encumbered during the Deferral Period. At the expiration of the Deferral Period (or the Elective Deferral Period referred
to in Section 7(b)(7), when applicable), stock certificates shall be delivered to the participant, or his legal representative,
for the Shares covered by the Deferred Share Award. The Deferral period applicable to any Deferred Share Award shall not be less
than one year (“Minimum Deferral Period”).

 

(2)         Unless
otherwise determined by the Committee at the time of grant, amounts equal to any dividends declared during the Deferral Period
with respect to the number of Shares covered by a Deferred Share Award will be paid to the participant currently, or deferred and
deemed to be reinvested in additional Deferred Shares, or otherwise reinvested, all as determined by the Committee, in its sole
discretion, at the time of the Award.

 

(3)         No
Deferred Shares shall be transferable by a participant other than by will or by the laws of descent and distribution or pursuant
to a qualified domestic relations order (as defined in the Code or the Employee Retirement Income Security Act of 1974, as amended)
except that, if so provided in the Deferred Shares Agreement, the participant may transfer without consideration the Deferred Shares
during the participant’s lifetime to one or more members of the participant’s family, to one or more trusts for the
benefit of one or more of the participant’s family, to a partnership or partnerships of members of the participant’s
family, or to a charitable organization as defined in Section 501(c)(3) of the Code, provided that the transfer would not result
in the loss of any exemption under Rule 16b-3 of the Exchange Act with respect to any Deferred Shares. The transferee of Deferred
Shares will be subject to all restrictions, terms and conditions applicable to the Deferred Shares prior to its transfer, except
that the Deferred Shares will not be further transferable by the transferee other than by will or by the laws of descent and distribution.

 

    	 	14	 

     

    

 

(4)         Unless
otherwise determined by the Committee at the time of granting any Deferred Shares, if a participant’s employment by the Company
or any Subsidiary terminates by reason of death, any Deferred Shares held by that participant shall thereafter vest and any restrictions
shall lapse.

 

(5)         Unless
otherwise determined by the Committee at the time of granting any Deferred Shares, if a participant’s employment by the Company
or any Subsidiary terminates by reason of Disability, any Deferred Shares held by that participant shall thereafter vest and any
restrictions shall lapse.

 

(6)         Unless
otherwise determined by the Committee at the time of granting any Deferred Share Award, if a participant’s employment by
the Company or any Subsidiary terminates for any reason other than death or Disability, all Deferred Shares held by such participant
which are unvested or subject to restriction shall thereupon be forfeited.

 

(7)         A
participant may elect to further defer receipt of a Deferred Share Award (or an installment of an Award) for a specified period
or until a specified event (the “Elective Deferral Period”), subject in each case to the Committee’s approval
and the terms of this Section 7 and such other terms as are determined by the Committee, all in its sole discretion. Subject to
any exceptions approved by the Committee, such election may be made only if and to the extent permitted and in accordance with
Section 409A of the Code.

 

(8)         Each
such Award shall be confirmed by, and subject to the terms of, a Deferred Share Award agreement evidencing the Award in the form
approved from time to time by the Committee.

 

SECTION
8.       Share Purchase Rights.

 

(a)          Grant.
Share Purchase Rights may be granted alone, in addition to or in tandem with other Awards granted under the LTIP or cash awards
made outside the LTIP. The Committee shall determine the individuals to whom, and the time or times at which, grants of Share Purchase
Rights will be made, the number of Shares which may be purchased pursuant to the Share Purchase Rights, and the other terms and
conditions of the Share Purchase Rights in addition to those set forth in Section 8(b). The Shares subject to the Share Purchase
Rights must be purchased at the Fair Market Value of such Shares on the date of grant. Subject to Section 8(b) hereof, the Committee
may also impose such forfeiture or other terms and conditions as it shall determine, in its sole discretion, on such Share Purchase
Rights or the exercise thereof.

 

    	 	15	 

     

    

 

Each Share Purchase Right Award
shall be confirmed by, and be subject to the terms of, a Share Purchase Rights Agreement which shall be in form approved by the
Committee.

 

(b)          Terms
and Conditions. Share Purchase Rights may contain such additional terms and conditions not inconsistent with the terms of the
LTIP as the Committee shall deem desirable and shall generally be exercisable for such period as shall be determined by the Committee.
However, Share Purchase Rights granted to Section 16 Participants shall not become exercisable earlier than one year after the
grant date. Share Purchase Rights shall not be transferable by a participant other than by will or by the laws of descent and distribution.

 

SECTION
9.       Share Appreciation Rights.

 

(a)          Grant.
Share Appreciation Rights may be granted in connection with all or any part of an Option. Share Appreciation Rights may be exercised
in whole or in part at such times under such conditions as may be specified by the Committee in the participant’s Option
Agreement.

 

(b)          Terms
and Conditions. The following terms and conditions will apply to all Share Appreciation Rights that are granted in connection
with Options:

 

(1)         Rights.
Share Appreciation Rights shall entitle the participant, upon exercise of all or any part of the Share Appreciation Rights, to
surrender to the Company unexercised, that portion of the underlying Option relating to the same number of Shares as is covered
by the Share Appreciation Rights (or the portion of the Share Appreciation Rights so exercised) and to receive in exchange from
the Company an amount equal to the excess of (x) the Fair Market Value, on the date of exercise, of the Shares covered by the surrendered
portion of the underlying Option over (y) the exercise price of the Shares covered by the surrendered portion of the underlying
Option. The Committee may limit the amount that the participant will be entitled to receive upon exercise of the Share Appreciation
Right.

 

(2)         Surrender
of Option. Upon the exercise of the Share Appreciation Right and surrender of the related portion of the underlying Option,
the Option, to the extent surrendered, will not thereafter be exercisable. The underlying Option may provide that such Share Appreciation
Rights will be payable solely in cash.

 

(3)         Exercise.
In addition to any further conditions upon exercise that may be imposed by the Committee, the Share Appreciation Rights shall be
exercisable only to the extent that the related Option is exercisable, except that in no event will a Share Appreciation Right
held by a Section 16 Participant be exercisable prior to one year after it is awarded even though the related Option is or becomes
exercisable, and each Share Appreciation Right will expire no later than the date on which the related Option expires. A Share
Appreciation Right may be exercised only at a time when the Fair Market Value of the Shares covered by the Share Appreciation Right
exceeds the exercise price of the Shares covered by the underlying Option.

 

    	 	16	 

     

    

 

(4)         Method
of Exercise. Share Appreciation Rights may be exercised by the participant’s giving written notice of the exercise to
the Company, stating the number of Share Appreciation Rights the participant has elected to exercise and surrendering the portion
of the underlying Option relating to the same number of Shares as the number of Share Appreciation Rights elected to be exercised.

 

(5)         Payment.
The manner in which the Company’s obligation arising upon the exercise of the Share Appreciation Right will be paid will
be determined by the Committee and shall be set forth in the participant’s Option Agreement. The Committee may provide for
payment in Shares or cash, or a fixed combination of Shares or cash, or the Committee may reserve the right to determine the manner
of payment at the time the Share Appreciation Right is exercised. Shares issued upon the exercise of a Share Appreciation Right
will be valued at their Fair Market Value on the date of exercise.

 

SECTION
10.     Performance Shares and Performance Share Units.

 

(a)          Grant.
Subject to the terms of the LTIP, Performance Shares and Performance Share Units may be granted to eligible employees at any time
and from time to time, as determined by the Committee. Subject to Sections 3, 4 and 10(c), the Committee shall have complete discretion
in determining the number of Performance Shares and/or Performance Share Units awarded to each participant and the terms and conditions
of each such Award.

 

(b)          Terms
and Conditions.

 

(1)         A
Performance Share or Performance Share Unit is equivalent in value to a Share.

 

(2)         The
Committee may denominate a Performance Share Unit Award in dollars instead of Performance Share Units.

 

(c)          Performance
Goals. For each Award of Performance Shares or Performance Share Units, the Committee shall establish performance goals for
the Company, its Subsidiaries, and/or divisions of any of foregoing, using the performance criteria. Unless previously canceled
or reduced, Performance Shares and Performance Share Units which may not be converted because of failure in whole or in part to
satisfy the relevant performance goals or for any other reason shall be canceled without further action by the Committee at the
time they would otherwise be distributable.

 

(d)          Dividend
Equivalents on Performance Shares. If determined by the Committee, a dividend equivalent in an amount equal to the dividend
payable on one Share may be made to a participant for each Performance Share held by such participant on the record date for the
dividend. Such dividend equivalent, if any, shall only be paid on the number of Performance Shares actually distributed and such
payment shall be made when the related Performance Shares are distributed.

 

    	 	17	 

     

    

 

(e)          Form
and Timing of Payment of Performance Shares and Performance Share Units. As soon as practicable after the applicable performance
period has ended and all other conditions (other than Committee actions) to conversion and distribution of a Performance Share
and/or Performance Share Unit Award have been satisfied (or, if applicable, at such other time determined by the Committee at or
before the establishment of the performance goal), the Committee shall determine whether and the extent to which the Performance
Goals were met for the applicable Performance Shares and Performance Share Units and shall certify such results in a manner consistent
with the provisions of the performance-based compensation exception provisions of the Section 162(m) of the Code. If performance
goals have been met, then the number of Performance Shares and Performance Share Units to be converted into Shares and/or cash
and distributed to the participants shall be determined in accordance with the performance goals for such Awards, subject to any
limits imposed by the Committee. Payment of Performance Shares and Performance Share Units shall be made in a single lump sum in
cash and/or Shares, as soon as reasonably administratively possible following the determination of the number of Shares and/or
amount of cash to which the participant is entitled but not later than the 15th day of the third month following the
end of the applicable performance period. Performance Shares and Performance Share Units will be distributed to participants in
the form of cash or Shares, or a combination of cash and Shares, as determined by the Committee. At any time prior to the distribution
of the Performance Shares and/or Performance Share Units, unless otherwise provided by the Committee or prohibited by this LTIP
(such as in the case of a Change in Control), the Committee shall have the authority to reduce or eliminate the number of Performance
Shares or Performance Share Units to be converted and distributed or to cancel any part or all of a grant or award of Performance
Shares or Performance Share Units.

 

For the purpose of converting Performance
Shares into cash and distributing the same to the holders thereof (or for determining the amount of cash to be deferred), the value
of a Performance Share shall be the Fair Market Value of a Share on the date the Committee authorizes the payout of Awards. Performance
Shares to be distributed in the form of Shares will be converted at the rate of one (1) Share per Performance Share.

 

(f)          Termination
of Employment Due to Death or Disability. In the event of the participant’s termination of employment by reason of death
or Disability during a performance period, the participant shall receive a lump sum payout, in cash and/or Shares as determined
by the Committee, of the related outstanding Performance Shares and Performance Share Units calculated as if all unfinished performance
periods had ended with one hundred percent (100%) of the performance goals achieved at target level, valued as of the first business
day of the calendar year following the date of termination of employment and payable as soon thereafter as reasonably possible
but not later than the 15th day of the third month after the end of the calendar year in which such death or Disability occurred.
Where the amount or part of dividend equivalents is determined by the number of Performance Shares that are paid out or is otherwise
determined by a performance measure, and the related performance period for the dividend equivalents was not completed at death
or Disability, then the dividend equivalents will be calculated as though one hundred percent (100%) of the goals were achieved
at target level and paid as soon as reasonably possible.

 

    	 	18	 

     

    

 

(g)          Termination
of Employment for Other than Death or Disability. Unless the Committee determines otherwise at any time, in the event of the
participant’s termination of employment during the performance period for a reason other than due to death or Disability
(and other than for Cause), then upon such termination, the amount of the Participant’s Performance Shares and number of
Performance Share Units shall be adjusted. The revised Awards shall be determined by multiplying the amount of the Performance
Shares and the number of Performance Share Units, as applicable, by the number of months the participant worked at least one day
during the respective performance period divided by the number of months in the performance period, to be paid, if at all, at the
same time and under the same terms that such outstanding Performance Shares or Performance Share Units would otherwise be paid;
provided, however, if the participant is not retirement eligible and terminates employment voluntarily during the Performance
Period for a grant of Performance Shares or Performance Share Units, then such Award shall be cancelled upon such termination.
A termination shall be deemed to be voluntary if it is recorded as such on the records of the Company, as determined by the Company
in its sole discretion.

 

(h)          Termination
of Employment for Cause. In the event of the termination of employment of a participant by the Company for Cause, all Performance
Shares and Performance Share Units shall be forfeited by the participant to the Company.

 

(i)          Non-transferability.
Performance Shares and Performance Share Units may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated.

 

SECTION
11.     Other Share-Based Awards.

 

(a)          Grant.
Other Awards of Shares and other Awards that are valued, in whole or in part, by reference to, or are otherwise based on, Shares,
including, without limitation, performance shares, phantom shares or units, convertible preferred shares, convertible debentures,
exchangeable securities, and Share Awards or options valued by reference to Book Value or subsidiary performance, may be granted
alone, in addition to or in tandem with other Awards granted under the LTIP or cash awards made outside of the LTIP.

 

    	 	19	 

     

    

 

At the time the Shares or Other
Share-Based Awards are granted, the Committee shall determine the individuals to whom and the time or times at which such Shares
or Other Share-Based Awards shall be awarded, the number of Shares to be used in computing an Award or which are to be awarded
pursuant to such Awards, the consideration, if any, to be paid for such Shares or Other Share-Based Awards, and all other terms
and conditions of the Awards in addition to those set forth in Section 11(b). The Committee will also have the right, at its sole
discretion, to settle such Awards in Shares, Restricted Shares or cash in an amount equal to then current value of the Shares or
Other Share-Based Awards.

 

(b)          Terms
and Conditions. Other Share-Based Awards shall be subject to the following terms and conditions and shall contain such additional
terms and conditions, not inconsistent with the terms of the LTIP, as the Committee shall deem desirable.

 

(1)         Subject
to the provisions of this LTIP and the Award agreement referred to in Section 11(b)(5) below, Shares awarded or subject to Awards
made under this Section 10 may not be sold, assigned, transferred, pledged or otherwise encumbered prior to the date on which the
Shares are issued, or, if later, the date on which any applicable restriction, performance, holding or deferral period or requirement
is satisfied or lapses. All Shares or Other Share-Based Awards granted under this Section 11 shall be subject to a minimum holding
period (including any applicable restriction, performance and/or deferral periods ) of one year (“Minimum Holding Period”).

 

(2)         Subject
to the provisions of this LTIP and the Award agreement and unless otherwise determined by the Committee at the time of grant, the
recipient of an Other Share-Based Award shall be entitled to receive, currently, interest or dividends with respect to the number
of Shares covered by the Award, as determined at the time of the Award by the Committee, in its sole discretion, and the Committee
may provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested.

 

(3)         Subject
to the Minimum Holding Period, any Other Share-Based Award and any Shares covered by any such Award shall vest or be forfeited
to the extent, at the times and subject to the conditions, if any, provided in the Award agreement, as determined by the Committee,
in its sole discretion.

 

(4)         In
the event of the participant’s Disability or death, or in cases of special circumstances, the Committee may, in its sole
discretion, waive, in whole or in part, any or all of the remaining limitations imposed hereunder or under any related Award agreement
(if any) with respect to any part or all of any Award under this Section 11, provided that the Minimum Holding Period requirement
may not be waived, except in case of a participant’s death.

 

(5)         Each
Award shall be confirmed by, and subject to the terms of, an agreement or other instrument evidencing the Award in the form approved
from time to time by the Committee, the Company and the participant.

 

    	 	20	 

     

    

 

(6)         Shares
(including securities convertible into Shares) issued on a bonus basis under this Section 11 shall be issued for no cash consideration.
Shares (including securities convertible into Shares) purchased pursuant to a purchase right awarded under this Section 11 shall
bear a price of at the Fair Market Value of the Shares on the date of grant. The purchase price of such Shares, and of any Other
Share-Based Award granted hereunder, or the formula by which such price is to be determined, shall be fixed by the Committee at
the time of grant.

 

(7)         In
the event that any “derivative security, “ as defined in Rule 16a-1(c) (or any successor thereof) promulgated by the
Securities and Exchange Commission under Section 16 of the Exchange Act, is awarded pursuant to this Section 11 to any Section
16 Participant, such derivative security shall not be transferable other than by will or by the laws of descent and distribution.

 

SECTION
12.     Change In Control Provision.

 

(a)          Impact
of Event. Unless otherwise provided in an Award agreement, following the effective date of a Change in Control as defined in
Section 12(b) in which outstanding Awards are not terminated in accordance with Section 3(c) of the LTIP and are assumed or substituted
for by the successor company (or in which the Company is the ultimate parent corporation and continues the Award), if a participant’s
continuous service with such successor company (or the Company) or a subsidiary thereof terminates within 24 months following such
Change in Control (or such other period set forth in the Award agreement, including prior thereto if applicable) and under the
circumstances specified in the Award agreement, the following shall apply:

 

(1)         Any
Stock Options awarded under the LTIP not previously exercisable and vested shall become fully exercisable and vested upon either:
(i) the involuntary termination of employment of the participant by the Company other than for Cause or (ii) the voluntary termination
of employment by the participant for a Good Reason;

 

(2)         Any
Share Appreciation Rights shall become immediately exercisable upon either: (i) the involuntary termination of employment of the
participant by the Company other than for Cause or (ii) the voluntary termination of employment by the participant for a Good Reason;

 

(3)         The
restrictions applicable to any Restricted Shares or Restricted Share Units, Performance Shares or Performance Share Units, Deferred
Shares, Share Purchase Rights and Other Share-Based Awards shall lapse and such Shares and Awards shall be deemed fully vested
upon either: (i) the involuntary termination of employment of the participant by the Company other than for Cause or (ii) the voluntary
termination of employment by the participant for a Good Reason; and

 

    	 	21	 

     

    

 

(4)         Unless
otherwise determined by the Committee, the payout of Performance Shares and Performance Share Units shall be determined exclusively
by the attainment of the Performance Goals established by the Committee, which may not be modified after the Change in Control,
and the Company shall not have the right to reduce the Awards after the Change in Control for any other reason.

 

(5)         Notwithstanding
any provision of this Section 12(a) to the contrary, any Award which is subject to Section 409A of the Code shall be settled in
accordance with the terms of the grant without regard to the Change in Control unless the Change in Control also constitutes a
“change in control event” within the meaning of Section 409A of the Code and such termination of employment occurs
within two years after such Change in Control.

 

(b)          Definition
of Change in Control. For purposes of Section 12(a), a “Change in Control” means the occurrence of any of the following:
(i) the Board or shareholders of the Company approve a consolidation or merger that results in the shareholders of the Company
immediately prior to the transaction giving rise to the consolidation or merger owning less than 50% of the total combined voting
power of all classes of stock entitled to vote of the surviving entity immediately after the consummation of the transaction giving
rise to the merger or consolidation; (ii) the Board or shareholders of the Company approve the sale of substantially all of the
assets of the Company or the liquidation or dissolution of the Company; (iii) any person or other entity (other than the Company
or a Subsidiary or any Company employee benefit plan (including any trustee of any such plan acting in its capacity as trustee))
purchases any Shares (or securities convertible into Shares) pursuant to a tender or exchange offer without the prior consent of
the Board, or becomes the beneficial owner of securities of the Company representing 35% or more of the voting power of the Company’s
outstanding securities; or (iv) during any two-year period, individuals who at the beginning of such period constitute the entire
Board cease to constitute a majority of the Board, unless the election or the nomination for election of each new director is approved
by at least two-thirds of the directors then still in office who were directors at the beginning of that period. For purposes of
Awards subject to Section 409A of the Code, Change in Control means a Change in Control as defined above which is also a “change
in control event” within the meaning of such Section 409A.

 

(c)          Definition
of Good Reason. For purposes of Section 12(a), a participant will be considered to have terminated employment for “Good
Reason” if such termination is due to any one or more of the following listed conditions (with each occurrence of such a
condition being considered a separate Good Reason) within two years following a Change in Control provided that the participant
terminates employment within two years following the initial occurrence of such condition and provided further that the participant
provides notice to the Company of such condition within 90 days following the initial occurrence of such condition and gives the
Company at least 30 days to cure such condition:

 

    	 	22	 

     

    

 

(1)         A
material diminution in the participant’s base compensation.

 

(2)         A
material diminution in the participant’s authority, duties, or responsibilities.

 

(3)         A
material diminution in the authority, duties, or responsibilities of the supervisor to whom the participant is required to report,
including a requirement that a participant report to a corporate officer or employee instead of reporting directly to the Board.

 

(4)         A
material diminution in the budget over which the participant retains authority.

 

(5)         A
material change in the geographic location at which the participant must perform the services.

 

(6)         Any
other action or inaction that constitutes a material breach by the Company of the agreement under which the participant provides
services.

 

SECTION
13.     Form and Timing of Payment Under Awards; Deferrals.

 

Subject to the terms of the LTIP and any applicable Award agreement
(as may be amended pursuant to Section 14 hereof), payments to be made by the Company or a Subsidiary upon the exercise of an Option
or other Award or settlement of an Award may be made in such forms as the Committee shall determine, including, without limitation,
cash, Shares, other Awards or other property, and may be made in a single payment or transfer or in installments; provided, however,
that settlement in other than Shares must be authorized by the applicable Award agreement. The settlement of any Award may be accelerated
and cash paid in lieu of Shares in connection with such settlement; provided, however, that settlement in cash must be authorized
by the applicable Award agreement. The acceleration of any Award that does not result in a cash settlement must also be authorized
by the applicable Award agreement. If and to the extent permitted by and in accordance with Section 409A of the Code, installment
or deferred payments may be required by the Committee or permitted at the election of the participant on terms and conditions approved
by the Committee, including without limitation the ability to defer awards pursuant to any deferred compensation plan maintained
by the Company, a Subsidiary. Payments may include, without limitation, provisions for the payment or crediting of a reasonable
interest rate on installment or deferred payments or other amounts in respect of installment or deferred payments denominated in
Shares.

 

SECTION
14.     Reimbursement of Company for Unearned or Ill-Gotten Gains.

 

Regardless of any other provisions of this LTIP or of any Award
agreement, and to the extent permitted by applicable law, if the Company is required to prepare an accounting restatement due to
the material noncompliance of the Company with any financial reporting requirement under the securities laws, the Committee shall
apply the Company’s Clawback Policy as in effect at the time of such restatement to Awards under the LTIP.

 

    	 	23	 

     

    

 

SECTION
15.     Amendments and Termination.

 

The Board may at any time, in its sole discretion, amend, alter
or discontinue the LTIP, but no such amendment, alteration or discontinuation shall be made that would (i) impair the rights of
a participant under an Award theretofore granted, without the participant’s consent, or (ii) require shareholder approval
under any applicable law, rule, regulation or listing standard of an exchange or market on which the Shares are listed and/or traded,
unless such shareholder approval is received. The Company shall submit to the shareholders of the Company for their approval any
amendments to the LTIP which are required by Section 16 of the Exchange Act or the rules and regulations thereunder, or Section
162(m) of the Code, or the listing standards of an exchange or market on which the Shares are listed and/or traded to be approved
by the shareholders.

 

The Committee may at any time, in its sole discretion, amend
the terms of any Award, but no such amendment shall be made that would impair the rights of a participant under an Award theretofore
granted, without the participant’s consent; nor shall any such amendment be made which would make the applicable exemptions
provided by Rule 16b-3 under the Exchange Act unavailable to any Section 16 Participant holding the Award without the participant’s
consent.

 

Subject to the above provisions, the Board shall have all necessary
authority to amend the LTIP to clarify any provision or to take into account changes in applicable securities and tax laws and
accounting rules, as well as other developments.

 

SECTION
16.     Unfunded Status of LTIP.

 

The LTIP is intended to constitute an “unfunded”
plan for incentive and deferred compensation. With respect to any payments not yet made to a participant by the Company, nothing
contained herein shall give that participant any rights that are greater than those of a general creditor of the Company. The adoption
of the LTIP and any reservation of Shares or cash amounts by the Company to discharge its obligations hereunder shall not be deemed
to create a trust or other funded arrangement. Neither a participant nor the participant’s permitted transferees or estate
shall have any other interest in any assets of the Company by virtue of the LTIP. Notwithstanding the foregoing, the Company shall
have the right to implement or set aside funds in a grantor trust, subject to the claims of the Company’s creditors or otherwise,
to discharge its obligations under the LTIP.

 

SECTION
17.     General Provisions.

 

(a)          Participant
Representation. The Committee may require each participant acquiring Shares pursuant to an Award under the LTIP to represent
to and agree with the Company in writing that the participant is acquiring the Shares without a view to distribution thereof. The
certificates for any such Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer.

 

All Shares or other securities delivered
under the LTIP shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the
rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Shares are
then listed, and any applicable federal or state securities laws, and the Committee may cause a legend or legends to be put on
any certificates for those Shares to make appropriate reference to such restrictions.

 

    	 	24	 

     

    

 

(b)          Other
Arrangements. Nothing contained in this LTIP shall prevent the Board from adopting other or additional compensation arrangements,
subject to shareholder approval if such approval is required, and such arrangements may be either generally applicable or applicable
only in specific cases.

 

(c)          No
Right to Employment. Neither the adoption of the LTIP, nor its operation, nor any document describing, implementing or referring
to the LTIP, or any part thereof, shall confer upon any participant under the LTIP any right to continue in the employ, or as a
director, of the Company or any Subsidiary, or shall in any way affect the right and power of the Company or any Subsidiary to
terminate the employment, or service as a director, of any participant under the LTIP at any time with or without assigning a reason
therefor, to the same extent as the Company or any Subsidiary might have done if the LTIP had not been adopted.

 

(d)          Transfers.
For purposes of this LTIP, a transfer of a participant between the Company and its Subsidiaries shall not be deemed a termination
of employment.

 

(e)          Taxes.
No later than the date as of which an amount first becomes includable in the gross income of the participant for federal income
tax purposes with respect to any award under the LTIP, the participant shall pay to the Company, or make arrangements satisfactory
to the Committee regarding the payment of, any federal, state or local taxes or other items of any kind required by law to be withheld
with respect to that amount. Subject to the following sentence, unless otherwise determined by the Committee, withholding obligations
may be settled with Shares, including unrestricted Shares previously owned by the participant or Shares that are part of the Award
that gives rise to the withholding requirement. Notwithstanding the foregoing, any right by a Section 16 Participant to elect to
settle any tax withholding obligation with Shares that are part of an Award must be set forth in the agreement evidencing the Award
or be approved by the Committee, in its sole discretion. The obligations of the Company under the LTIP shall be conditional on
those payments or arrangements and the Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct
any such taxes from any payment of any kind otherwise payable to the participant. Shares withheld by, or otherwise remitted to,
the Company to satisfy a participant’s tax withholding obligations upon the lapse of restrictions on Restricted Shares or
the exercise of Options or Share Appreciation Rights granted under the LTIP or upon any other payment or issuance of shares under
the LTIP will not be available for the use of new awards under the LTIP.

 

    	 	25	 

     

    

 

(f)          Adequacy
of Shares. The actual or deemed reinvestment of dividends in additional Restricted Shares (or in Deferred Shares or other types
of Awards) at the time of any dividend payment shall be permissible only if sufficient Shares are available under Section 3 for
such reinvestment (taking into account then outstanding Stock Options, Share Purchase Rights and other LTIP Awards).

 

(g)          Governing
Law. The LTIP, all Awards made and actions taken thereunder and any agreements relating thereto shall be governed by and construed
in accordance with the laws of the State of Ohio.

 

(h)          Plan
Controls. All agreements entered into with participants pursuant to the LTIP shall be subject to the LTIP.

 

(i)           Awards
May Vary. The provisions of Awards need not be the same with respect to each participant.

 

(j)           Section
409A of the Code. In the event that an Award granted pursuant to the LTIP shall constitute “non-qualified deferred compensation”
within the meaning of Section 409A of the Code, the terms of the LTIP as they apply to such Award shall be interpreted to comply
with Section 409A of the Code. To the extent that an Award which is subject to Section 409A shall be payable to a participant who
is a “specified employee” on account of his “separation from service” as such terms are defined in Section
409A, such payment shall not occur until the date which is six (6) months and one (1) day after the participant’s separation
from service. To the extent applicable, it is intended that the LTIP and all Awards hereunder comply with the requirements of Section
409A of the Code, and the LTIP and all Award agreements shall be interpreted and applied by the Committee in a manner consistent
with this intent in order to avoid the imposition of any additional tax under Section 409A of the Code. In the event that any provision
of the LTIP or an Award agreement is determined by the Committee to not comply with the applicable requirements of Section 409A
of the Code, the Committee shall have the authority to take such actions and to make such changes to the LTIP or an Award agreement
as the Committee deems necessary to comply with such requirements, provided that no such action shall adversely affect any outstanding
Award without the consent of the affected participant. Notwithstanding the foregoing or anything elsewhere in the LTIP or an Award
agreement to the contrary unless the Committee shall otherwise expressly provide, if Section 409A applies the term “disability”
shall have the meaning given to such term under Section 409A and the regulations and guidance issued thereunder. The Company makes
no guarantee concerning tax treatment and the participant will be solely responsible for any taxes incurred.

 

(k)          Foreign
Jurisdictions. The Committee may adopt, amend and terminate such arrangements and grant such Awards, not inconsistent with
the intent of the LTIP, as it may deem necessary or desirable to comply with any tax, securities, regulatory or other laws of other
jurisdictions with respect to Awards that may be subject to such laws. The terms and conditions of such Awards may vary from the
terms and conditions that would otherwise be required by the LTIP solely to the extent the Committee deems necessary for such purpose.
Moreover, the Board may approve such supplements to or amendments, restatements or alternative versions of the LTIP, not inconsistent
with the intent of the LTIP, as it may consider necessary or appropriate for such purposes, without thereby affecting the terms
of the LTIP as in effect for any other purpose.

 

    	 	26	 

     

    

 

(l)           Substitute
Awards in Corporate Transactions. Nothing contained in the LTIP shall be construed to limit the right of the Committee to grant
Awards under the LTIP in connection with the acquisition, whether by purchase, merger, consolidation or other corporate transaction,
of the business or assets of any corporation or other entity. Without limiting the foregoing, the Committee may grant Awards under
the LTIP to an employee or director of another corporation who becomes an eligible person pursuant to Section 4 of the LTIP by
reason of any such corporate transaction in substitution for awards previously granted by such corporation or entity to such person.
The terms and conditions of the substitute Awards may vary from the terms and conditions that would otherwise be required by the
LTIP solely to the extent the Committee deems necessary for such purpose. Unless otherwise determined by the Committee, such substitute
Award shall not be deemed to deplete the number of Shares available for Awards pursuant to Section 3 nor reduce the number of Shares
under the term of the Plan.

 

(m)         Performance
Objectives and Business Criteria. For purposes of Restricted Shares, Restricted Share Units, Performance Shares, Performance
Share Units, Deferred Shares, Share Purchase Rights, Share Appreciation Rights and Other Share-Based Awards granted pursuant to
the LTIP that are intended to qualify as “performance-based” compensation under Section 162(m) of the Code and for
which establishment of performance objectives is appropriate, the performance objectives shall be based on the performance of the
Company, one or more of its Subsidiaries or affiliates, one or more of its units or divisions and/or the individual over the term
of the award period designed by the Committee. The Committee may use one or more of the following business (or substantially similar)
criteria to establish performance objectives for each participant: increase in net sales; pretax income before allocation of corporate
overhead and bonus; operating profit; net working capital; earnings per share; net income; revenue growth; attainment of division,
group or corporate financial goals; return on shareholders’ equity; return on assets; other return measures (including, but
not limited to, return on capital, invested capital, or average equity); cash flow (including, but not limited to, operating cash
flow, free cash flow, cash generation, cash flow return on equity, and cash flow return on investment); capital and liquidity ratios;
attainment of strategic and operational initiatives; attainment of one or more specific and measurable individual strategic goals;
appreciation in or maintenance of the price of the Company’s common shares; increase in market share; gross profits; total
return to shareholders; earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; comparisons
with various stock market indices or peer performance; or achievement of safety, succession planning; sustainability, Share price
or talent development objectives or reductions in labor or material costs. The performance objective for any participant shall
be sufficiently specific that a third party having knowledge of the relevant facts could determine whether the objective is met;
and the outcome under the performance objective shall be substantially uncertain when the Committee establishes the objective.
Performance objectives may include or exclude losses from discontinued operations, restatements and accounting changes and other
unplanned special charges such as restructuring expenses, acquisitions, acquisition expenses, including expenses related to goodwill
and other intangible assets, share offerings and share repurchases, provided that in the case of an Award intended to qualify for
the exemption from the limitation on deductibility imposed by Section 162(m) of the Code that is set forth in Section 162(m)(4)(C)
of the Code, such inclusion or exclusion shall be made in compliance with Section 162(m) of the Code. The Committee may modify,
amend or otherwise adjust the performance objectives specified for outstanding performance-based Award if it determines that an
adjustment would be consistent with the objectives of the LTIP and taking into account the interests of the participants and the
Company’s shareholders and such adjustment complies with the requirements of Section 162(m) of the Code, to the extent applicable,
unless the Committee indicates a contrary intention. The types of events which could cause an adjustment in the performance objectives
include, without limitation, accounting changes which substantially affect the determination of performance objectives, changes
in applicable laws or regulations which affect the performance objectives, and divisive corporate reorganizations, including spin-offs
and other distributions of property or capital stock.

 

    	 	27	 

     

    

 

SECTION
18.     Shareholder Approval; Effective Date of LTIP.

 

This 2016 Long-Term Incentive Plan was adopted by the Board
of Directors on March 28, 2016, and is subject to the approval by the holders of the Company’s outstanding Shares, in accordance
with applicable law and the listing standards of the New York Stock Exchange. This 2016 Long-Term Incentive Plan will become effective
on the date of such shareholder approval.

 

SECTION
19.     Term of LTIP.

 

No Award shall be granted pursuant to the LTIP on or after May
10, 2026, but Awards granted prior to such date may extend beyond that date.

 

    	 	28

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}]]