Document:

Sun Hydraulics Corporation 2011 Equity Incentive Plan

 Exhibit 4.1 
 SUN HYDRAULICS CORPORATION 
 2011 EQUITY INCENTIVE PLAN 

SUMMARY OF PLAN. 
  

	•	 	 The purpose of the Equity Incentive Plan is to promote the Corporation’s growth and profitability by 

 

	 	•	 	 providing participants additional incentives to achieve long-term corporate objectives, 

 

	 	•	 	 helping attract and retain officers, employees and directors of outstanding competence, and 

 

	 	•	 	 providing such individuals the opportunity to acquire direct or indirect equity interests in the Corporation. 

 

	•	 	 The Board of Directors will administer the Plan and may delegate that responsibility to the Compensation Committee or other Board committee that meets
specified independence criteria. 

  

	•	 	 Officers, employees and directors of the Corporation and its subsidiaries are eligible to participate in the Plan. 

 

	•	 	 Awards may be made in shares of restricted or unrestricted common stock of the Corporation, or as stock appreciation rights, restricted stock units or
other equity-based units. 

  

	•	 	 No more than 1,000,000 shares or other equity units may be awarded under the Plan, and no individual may be granted more than 100,000 shares or units
during any one year. 

  

	•	 	 Awards will be evidenced by a Grant Agreement setting forth the terms of the award, including any conditions on vesting, transfer, forfeiture or other
incidents of ownership established by the Board. 

  

	•	 	 The Board may accelerate vesting or exercise dates, pay cash in exchange for cancellation of outstanding awards or may other adjustments or amendments
in the event of a pending change of control of the Corporation or in other circumstances. 

  

	•	 	 No awards may be granted after September 9, 2021. 

 

	•	 	 The Plan must be approved by the Corporation’s shareholders at the 2012 Annual Meeting. All Awards granted under the Plan prior to the 2012 Annual
Meeting are subject to approval of the Plan by the shareholders at that meeting. 

 I. PURPOSE. 

The purpose of this Sun Hydraulics Corporation 2011 Equity Incentive Plan is to promote the growth and profitability of Sun Hydraulics
Corporation (the “Corporation”) by (i) providing officers, employees and directors of the Corporation and of its subsidiaries with additional incentives to achieve long-term corporate objectives, (ii) assisting the Corporation
and its subsidiaries in attracting and retaining officers, employees and directors of outstanding competence, and (iii) providing such officers, employees and directors with an opportunity to acquire an equity interest (direct or indirect) in
the Corporation. 

 The Plan has been approved by the Corporation’s Board on September 9, 2011, and
the Plan is subject to approval by the shareholders of the Corporation at the Corporation’s 2012 Annual Meeting of Shareholders. All Awards granted under this Plan prior to the date of the 2012 Annual Meeting shall be expressly subject to
approval of the Plan by the shareholders at that Annual Meeting. 
 II. DEFINITIONS. 

The following terms shall have the meanings shown: 
 2.1 “Award” shall mean a grant of Restricted Shares, Restricted Stock Units, Stock Appreciation Rights, or any other stock-based compensation awarded under this Plan.

 2.2 “Board” means the Board of Directors of the Corporation. 

2.3 “Change of Control” means the occurrence of any of the following events: 

(a) any person becomes, after the effective date of this Plan, the “beneficial owner” (as defined in Rule 13d-3 promulgated
under the Exchange Act), directly or indirectly, of securities of the Corporation representing 30% or more of the combined voting power of the Corporation’s then outstanding securities in a transaction that qualifies as a “change in
ownership” or “change in effective control” under Treasury Regulation Section 1.409A-3(i)(5); 
 (b)
individuals who constitute the Board on the effective date of the Plan cease, for any reason, to constitute at least a majority of the Board in a manner that qualifies as a “change in effective control” under Treasury Regulation
Section 1.409A-3(i)(5), provided, however, that any person becoming a director subsequent to the effective date of the Plan who was nominated for election by at least 66-2/3% of the Board as constituted on the effective date of the Plan (other
than the nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest, relating to the election of the Board, as such terms are used in Rule 14a-11 of the Regulation 14A promulgated
under the Exchange Act) shall be, for purposes of this Plan, considered a member of the Board as constituted on the effective date of the Plan; or 
 (c) The consummation of a merger or consolidation of the Corporation, other than a merger or consolidation in which the Shareholders of the Corporation immediately prior to the merger or the consolidation
continue to hold (either directly or indirectly) at least 51% or more of the combined voting power of the Corporation or surviving entity immediately after the merger or consolidation with another entity; or 

(d) a sale of substantially all of the assets of the Corporation to one or more unrelated businesses (other than to a corporation more
than 50% of which is controlled by, or under common control with, the Corporation) in a transaction that qualifies as a “change in ownership of a substantial portion of assets” under Treasury Regulation Section 1.409A-3(i)(5)(vii), or
an agreement to liquidate or dissolve the Corporation. 
 2.4 “Code” means the Internal Revenue
Code of 1986, as the same shall be amended from time to time. 

  
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 2.5 “Common Stock” means the common stock, par value $.001 per share, of
the Corporation, except as provided in Section 6.2 of the Plan. 
 2.6 “Covered Employee”
means a “covered employee” within the meaning of Section 162(m)(3) of the Code, Treasury Regulation Section 1.162-27 or any successor thereto. 
 2.7 “Date of Grant” means the date specified by the Board on which an Award shall become effective, which shall not be earlier than the date on which the Board takes action with respect
thereto. 
 2.8 “Fair Market Value” means the last sale price of the Common Stock as reported on the NASDAQ
National Market (or any other exchange or quotation system, if applicable) on the date specified; or if no sales occurred on such day, at the last sale price reported for the Common Stock; but if there should be any material alteration in the
present system of reporting sales prices of such Common Stock, or if such Common Stock should no longer be listed on the NASDAQ National Market (or other exchange or quotation system), or if the last sale price reported shall be on a date more than
30 days from the date in question, the market value of the Common Stock as of a particular date shall be determined in such a method as shall be specified by the Board. 
 2.9 “Grant Agreement” means a written agreement between the Corporation and a Participant who has been granted an Award under this Plan. 

2.10 “Non-employee Director” means a member of the Board who is not an employee of the Corporation or any Subsidiary.

 2.11 “Participant” means any officer, employee or director of the Corporation or a Subsidiary who has been
granted an Award under this Plan. 
 2.12 “Plan” means this Sun Hydraulics Corporation 2011 Equity Incentive
Plan, as the same may be amended from time to time. 
 2.13 “Restriction Period” means a period of time
beginning on the date of an Award of Restricted Shares and ending on such date as shall be determined by the Board pursuant to Section 6.3 hereof with respect to such Award. 

2.14 “Rule 16b-3” means Rule 16b-3 promulgated by the Securities and Exchange Commission under Section 16 of the
Securities Exchange Act of 1934, as amended from time to time. 
 2.15 “Subsidiary” means any corporation (or
any similar entity organized under foreign law) which, on the date of determination, qualifies as a subsidiary corporation of the Corporation under Section 425(f) of the Code. 
 III. ELIGIBILITY. 
 3.1 Participation. The Board may grant Awards under
this Plan to any officer or employee of the Corporation or of any Subsidiary of the Corporation. In granting such Awards and determining their form and amount, the Board shall give consideration to the functions and responsibilities of the
individual, his or her potential contributions to profitability and sound growth of the Corporation and such other factors as the Board may, in its discretion, deem relevant. 
 3.2 Directors. Members of the Board who are officers or employees of the Corporation or of a Subsidiary shall be eligible for Awards under this Plan on the same terms as other officers or
employees. Other members of the Board of the Corporation or of any Subsidiary of the Corporation shall be eligible for Awards, except to such extent as may otherwise be established by the Board and the Board’s policies on compensation of
Non-Employee Directors. 

  
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 IV. AWARDS AVAILABLE UNDER THE PLAN. 

The Board may, in its discretion, grant the following types of Awards under the Plan on a stand alone, combination or tandem basis:

 (a) Stock Appreciation Rights. A right to receive the excess of the Fair Market Value of a share of Common Stock on
the date the Stock Appreciation Right is exercised over the Fair Market Value of a share of Common Stock on the date the Stock Appreciation Right was granted, payable in shares of Common Stock, in cash or a combination of Common Stock and cash, in
accordance with the terms of the Award. 
 (b) Restricted Share Awards. A transfer of shares of Common Stock to a
Participant, subject to such restrictions on transfer or other incidents of ownership, and to such risks of forfeiture for such periods of time as the Board may determine. 
 (c) Stock Awards. An unrestricted transfer of ownership of shares of Common Stock. 
 (d) Restricted Stock Unit. A right to receive shares of Common Stock at a future date, subject to the satisfaction of such conditions as may be established by the Board and set forth in the
Participant’s Grant Agreement. 
 (e) Dividend or Dividend Equivalent Right. A right to receive dividends or their
equivalent in value, equal to the amount of the dividend actually paid with respect to one share of Common Stock, which shall be payable in Common Stock, cash or in a combination of Common Stock and cash with respect to any new or previously
existing Award, as the Committee shall determine. 
 (f) Other Stock Awards. Other Stock Awards which are related to or
serve a similar function to those Awards set forth in this Article IV. 
 Each Award shall be evidenced by a Grant Agreement in
such form and containing such terms and conditions not inconsistent with the provisions of the Plan as the Board from time to time shall approve. 
 V. RESTRICTED SHARE AWARDS. 
 5.1 Restricted Share Awards and Certificates.
The Board may, in its discretion, award Restricted Shares to any officer, employee or director of the Corporation or a Subsidiary, subject to the following express terms and conditions, and to such other terms and conditions, not inconsistent with
the terms of this Plan. The Board shall determine the price, if any, to be paid by the Participant for the Restricted Shares. Upon the execution of the Grant Agreement by the Participant, and the payment of the purchase price for the Restricted
Shares set forth therein, if any, the Board shall cause the Corporation to issue the Restricted Shares in book entry form or by issuing a certificate or certificates for such Restricted Shares, in either case registered in the name of the
Participant. During the Restriction Period (as defined in Section 5.3(a)), book entries for the Restricted Shares shall bear a notation and certificates representing the Restricted Shares shall bear a restrictive legend, to the effect that
ownership of the Restricted Shares, and the enjoyment of all rights appurtenant thereto, are subject to the restrictions, terms and conditions provided in the Plan and the applicable Grant Agreement. Any securities issued as stock dividends during
the Restriction Period with respect to such Restricted Shares shall bear a restrictive notation or legend, as applicable. If stock certificates are issued, such certificates shall be deposited with the Corporation, together with stock powers or
other instruments of assignment, each endorsed in blank, which will permit transfer to the Corporation of all or any portion of the Restricted Shares that shall be forfeited or that shall not become vested in accordance with the Plan and the
applicable Grant Agreement. 

  
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 5.2 Rights as a Shareholder. A Participant granted an Award of Restricted Shares
shall not be deemed to have become a shareholder of the Corporation, or to have any rights with respect to such Restricted Shares, until and unless such Participant shall have executed a Grant Agreement evidencing the Award and delivered a fully
executed copy thereof to the Corporation and otherwise complied with the then applicable terms and conditions of such Award, including, but not limited to the payment of all cash consideration, if any. Thereafter, the Restricted Shares shall
constitute issued and outstanding shares of Common Stock for all corporate purposes and, except as provided below and in Section 5.3, the Participant shall have with respect to the Restricted Shares all of the rights of a shareholder of the
Corporation, including the right to vote such Restricted Shares, to receive and retain all regular cash dividends paid or distributed on such Restricted Shares and to exercise all other rights, powers and privileges of a holder of Common Stock with
respect to such Restricted Shares, with the exception that (i) the Participant will not be entitled to delivery of the stock certificate or certificates representing such Restricted Shares until the Restriction Period shall have expired and all
other vesting requirements, if any, with respect thereto shall have been fulfilled; (ii) the Corporation will retain custody of any stock certificate or certificates issued for the Restricted Shares during the Restriction Period;
(iii) other than regular cash dividends and such other distributions as the Board may in its sole discretion designate, the Corporation will retain custody of all distributions made or declared with respect to the Restricted Shares (and such
retained dividends will be subject to the same restrictions, terms and conditions as are applicable to the Restricted Shares) until such time, if ever, as the Restricted Shares with respect to which such retained dividends shall have been made, paid
or declared shall have become vested, and such retained dividends shall not bear interest or be segregated in separate accounts; (iv) the Participant may not sell, assign, transfer, pledge, exchange, encumber or dispose of the Restricted Shares
during the Restriction Period; and (v) a breach of any restrictions, terms or conditions provided in the Plan or established by the Board with respect to any Restricted Shares will cause a forfeiture of such Restricted Shares and any Retained
Distributions with respect thereto. 
 5.3 Restrictions and Forfeitures. Restricted Shares awarded to a Participant
pursuant to this Article VI shall be subject to the following restrictions and conditions: 
 (a) During such Restriction
Period, if any, as may be set by the Board, in its discretion, the Participant will not be permitted to sell, transfer, pledge or assign the Restricted Shares awarded to him or her. The Board may prescribe such restrictions, terms and conditions
applicable to the vesting of such Restricted Shares during the Restricted Period, in addition to those provided in this Plan, and may provide for the lapse of such restrictions in installments, as it deems appropriate. 

(b) Subject to the provisions of Section 5.3(c), upon termination of the Participant’s employment during the Restriction Period
under such circumstances and upon such terms and conditions as shall be determined by the Board and set forth in the applicable Grant Agreement, all Restricted Shares with respect to which the restrictions have not yet expired shall be forfeited to
the Corporation or repurchased by the Corporation. 
 (c) In the event of a Participant’s retirement, permanent total
disability, or death, or in cases of special circumstances, the Board may, in its sole discretion, when it finds that a waiver would be in the best interests of the Corporation, waive in whole or in part any or all remaining restrictions with
respect to such Participant’s Restricted Shares. 

  
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 (d) Any attempt to dispose of Restricted Shares in a manner contrary to the restrictions set
forth herein shall be ineffective. 
 5.4 Completion of Restriction Period. Upon the completion of the Restriction
Period, if any of the applicable restrictions, terms and conditions for vesting of all or part of the Restricted Shares, shall not have been satisfied in accordance with the terms of the applicable Grant Agreement, the unvested Restricted Shares
(and any retained dividends with respect thereto) shall be forfeited by the Participant to the Corporation and the Participant shall not thereafter have any rights (including dividend and voting rights) with respect to such Restricted Shares (and
retained dividends, if any). 
 VI. STOCK APPRECIATION RIGHTS AND OTHER STOCK AWARDS 

6.1 Stock Appreciation Rights. The Board may, in its discretion, grant one or more Participants Stock Appreciation Rights either
(a) in connection with stock options granted to the Participant under any stock plan of the Corporation (“Tandem SAR”), (b) in connection with all or part of any Award granted under the Plan or at any subsequent time during the
term of such award, or (c) without regard to any stock option or other award. 
 Tandem SARs shall entitle the Participant
holding the related stock option, upon exercise, in whole or in part, of the SARs, to receive payment in the amount and form determined pursuant to Section 6.1(c) below. Tandem SARs may be exercised only to the extent that the related stock
option has not been exercised. The exercise of Tandem SARs shall result in a pro rata surrender of the related stock option to the extent that the Tandem SARs have been exercised. 

The grant of SARs to a Participant shall be evidenced either by a separate Grant Agreement or by including provisions with respect to
such SARs in the Grant Agreement for the Participant’s stock option in a form approved by the Board. Such SARs shall be subject to the following express terms and conditions and to such other terms and conditions, not inconsistent with the
terms of the Plan, which the Board may deem appropriate. 
 (a) Tandem SARs related to a stock option shall be exercisable at
such time or times and to the extent, but only to the extent, that the stock option to which they relate shall be exercisable. 

(b) SARs (and any stock option related thereto) shall in no event be exercisable before the expiration of one year from the Date of
Grant, except as may be set forth in the Participant’s Grant Agreement, including, without limitation, with respect to retirement after age 65, disability or death of a Participant, or a Change in Control. SARs shall be exercisable for such
period as the Board shall determine, but for not more than ten years from the Date of Grant thereof. 
 (c) Upon exercise of
SARs, the Participant shall be entitled to receive an amount equal in value to the excess of (i) the Fair Market Value of one share of Common Stock on the date of exercise over (ii) the Exercise Price of the SAR on the Date of Grant, or in
the case of a Tandem SAR, the Exercise Price of the related stock option, multiplied by the number of shares in respect of which the SARs shall have been exercised. Such amount shall be paid in the form of cash, shares of Common Stock, other
property, or any combination thereof, as determined by the Board. 
 (d) In no event shall a SAR be exercisable at a time when
the Exercise Price of the underlying stock option is greater than the Fair Market Value of the shares subject to the related stock option. 

  
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 (e) The exercise price of a SAR shall not be less than 100% of the Fair Market Value of a
share of Common Stock on the Date of Grant. 
 6.2 Other Stock Awards. The Board may, in its discretion, grant awards of
shares of Common Stock and other awards that are valued in whole or in part by reference to, or are otherwise based on, shares of Common Stock or other property (“Other Stock Awards”) to Participants, either alone or in addition to other
awards granted under the Plan. Other Stock Awards shall be paid only in shares of Common Stock. Subject to the provisions of the Plan, the Board shall have sole and complete discretion to determine the individuals to whom and the time or times at
which such Other Stock Awards shall be made, the number of shares of Common Stock to be granted pursuant to such Other Stock Awards, and all other conditions of the Other Stock Awards. 
 VII. CHANGE IN CONTROL TRANSACTIONS. 
 In the event of a pending Change in
Control, the Board may, in its sole discretion, take any one or more of the following actions with respect to any one or more Participants: 
 (a) Accelerate the exercise dates or vesting dates of any outstanding Awards; 

(b) Make outstanding Restricted Shares, Restricted Stock Units, Stock Appreciation Rights or Other Stock Awards fully vested and
exercisable; 
 (c) Grant a cash bonus award to any of the holders of outstanding Awards; 

(d) Pay cash to any or all Participants in exchange for the cancellation of their outstanding Awards; or 

(e) Make any other adjustments or amendments to the Plan and outstanding Awards. 

If the Common Stock is registered under the Securities Exchange Act of 1934, any such action with respect to any named executive officer of the
Corporation or other Covered Employee shall be effective only if it is approved by the Compensation Committee and the Committee is comprised exclusively of outside directors within the meaning of section 162(m) of the Code 

In exercising its authority under this Section VII, the Board or Compensation Committee shall have no duty to apply any action taken under this Section
uniformly to all Participants, and may choose, in its sole discretion, whether or not the Awards granted to any particular Participant will be affected (subject to any pre-existing provisions in the Participant’s Grant Agreement or employment
agreement with the Corporation requiring accelerated vesting upon a Change in Control). 
 VIII. LIMITATION ON SHARES OF COMMON STOCK.

 8.1 Aggregate Limitation on Shares Available Under Plan. 

(a) Shares of Common Stock which may be issued pursuant to Awards granted under the Plan may be either authorized and unissued shares of
Common Stock or Common Stock held by the Corporation as treasury stock. The number of shares of Common Stock reserved for issuance under this Plan shall not exceed 1,000,000 shares of Common Stock, subject to such adjustments as may be made pursuant
to Section 8.2. 

  
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 (b) To the extent that shares of Common Stock subject to an outstanding Award are not issued
by reason of the forfeiture, termination, surrender, cancellation or expiration while unexercised of such Award, by reason of the tendering or withholding of shares (by either actual delivery or by attestation) to pay all or a portion of the
purchase price or to satisfy all or a portion of the tax withholding obligations relating to such an Award under the Plan, by reason of being settled in cash in lieu of Common Stock or settled in a manner such that some or all of the shares covered
by the Award are not issued to a Participant, then such shares shall immediately again be available for issuance under the Plan. 
 (c) The Board may from time to time adopt and observe such procedures concerning the counting of shares against the Plan maximum as it may deem appropriate. 

8.2 Adjustments of Stock. In the event of any change or changes in the outstanding Common Stock of the Corporation by reason of
any stock dividend, recapitalization, reorganization, merger, consolidation, split-up, combination or any similar transaction, the Board shall adjust the number of shares of Common Stock which may be issued under this Plan and make any and all other
adjustments deemed appropriate by the Board in such manner as the Board determine to be appropriate to prevent substantial dilution or enlargement of the rights granted to the Participants. 

8.3 Limitation on Grants to Individual Participants. Subject to adjustment pursuant to Section 8.2, the maximum number of
shares of Common Stock that may be covered by Awards granted under the Plan to any single Participant during any one calendar year shall be 100,000 shares; provided, any Awards or portion of Awards that are cancelled or repriced shall continue to be
counted in determining such maximum aggregate number of shares of Common Stock that may be granted to any single Participant. If a Stock Appreciation Rights Award is granted in tandem with a stock option, such that the exercise of the stock option
with respect to a share of Common Stock cancels the tandem Stock Appreciation Right with respect to such share, the tandem stock option and Stock Appreciation Right Award with respect to each share of Common Stock shall be counted as covering but
one share of Common Stock for purposes of applying the limitations of this Section 8.3. 
 IX. MISCELLANEOUS. 

9.1 General Restriction. Any Award granted under this Plan shall be subject to the requirement that, if at any time the Board
shall determine that any registration of the shares of Common Stock, or any consent or approval of any governmental body, or any other agreement or consent, is necessary as a condition of the granting of an Award, or the issuance of Common Stock in
satisfaction thereof, such Common Stock will not be issued or delivered until such requirement is satisfied in a manner acceptable to the Board. 
 9.2 Withholding Taxes. 
 (a) The Corporation shall have the right to
require participating employees to remit to the Corporation an amount sufficient to satisfy any federal, state and local withholding tax requirements prior to the delivery of any shares of Common Stock pursuant to Awards under the Plan. 

(b) The Corporation shall have the right to withhold from payments made in cash to a Participant under the terms of the Plan, an amount
sufficient to satisfy any federal, state and local withholding tax requirements imposed with respect to such cash payments. 

(c) Amounts to which the Corporation is entitled pursuant to Section 10.2(a) or (b), may be, at the election of the Participant and
with the approval of the Board, either (i) paid in cash, or (ii) withheld from the Participant’s salary or other compensation payable by the Corporation, including cash payments made under this Plan. 

  
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 (d) At the discretion of the Board, the Corporation may instead make a loan to the
Participant in an amount not to exceed the grossed up amount of any Federal and state taxes payable in connection with the vesting of an Award, or the delivery of shares under the Award, for the purpose of assisting such Participant to pay the
payroll taxes associated with the Award. Any such loan may be secured by the shares of Common Stock issued to the Participant or other collateral deemed adequate by the Board and will comply in all respects with all applicable laws and regulations.
The Board may adopt policies regarding eligibility for such loans, the maximum amounts thereof and any terms and conditions not specified in the Plan upon which such loans will be made. In no event shall such a loan be made to any named executive
officer, nor shall the interest rate be lower than the minimum rate at which the Internal Revenue Service would not impute additional taxable income to the Participant. 
 9.3 Payments by Participants. The Board may determine that any payment which may be due from a Participant pursuant to the terms of an Award under this Plan may be payable: (i) via personal
check, bank draft, money order, certified check, or cashier’s check payable to the order of the Corporation or by money transfers or direct account debits; (ii) a copy of irrevocable instructions to a broker to promptly deliver to the
Corporation the amount of proceeds from a sale of shares equal to the exercise price or other payment, or (iii) such other method of payment as may be expressly approved by the Board. To facilitate the foregoing, the Corporation may enter into
agreements for coordinated procedures with one or more brokerage firms; provided, such payment pursuant to clause (iii) shall be subject to compliance with Federal Reserve Board Regulation T, federal and state securities laws and trading
policies established by the Corporation and applicable to the Participant. 
 9.4 No Right to Employment. Nothing in this
Plan or in any Grant Agreement entered into pursuant to it shall confer upon any Participant the right to continue in the employment of the Corporation or affect any right which the Corporation may have to terminate the employment of such
Participant. 
 9.5 Non-Uniform Determinations. The Compensation Committee’s determinations under this Plan
(including without limitation its determinations of the persons to receive Awards, the form, amount and timing of such Awards and the terms and provisions of such Awards) need not be uniform and may be made by it selectively among Participants who
receive, or are eligible to receive, Awards under this Plan, whether or not such Participants are similarly situated. 
 9.6
Fractional Shares. The Corporation shall not be required to issue any fractional Common Shares pursuant to this Plan. The Board or Compensation Committee may provide for the elimination of fractions or for the settlement thereof in cash.

 9.7 Compliance with Code Section 409A. To the extent that any Awards of stock options, Stock Appreciation Rights
or Restricted Shares might otherwise be treated as deferred compensation subject to the requirements of Code Section 409A, it is intended that such Awards shall be interpreted and administered in a manner consistent with the requirements to
qualify for the exemptions for stock rights under Treasury Regulation Section 1.409A-1(b)(5). To the extent any other Awards under the Plan are subject to the requirements of Code Section 409A and cannot qualify as “stock right”
exempt from Code Section 409A, it is intended that such Awards shall be construed and administered, to the fullest extent possible, to be in compliance with Code Section 409A. 

9.8 Transferability of Awards. Except as provided below, and except as otherwise authorized by the Board in the Participant’s
Grant Agreement, no Award and no shares of Common Stock subject to Awards that have not been issued or as to which any applicable restriction has not lapsed, may be sold, assigned, transferred, pledged or otherwise encumbered, other than by will or
the laws of descent and distribution, or pursuant to a qualified domestic relations order, and such award may be exercised during the life of the Participant only by the Participant or the Participant’s guardian or legal representative.
Notwithstanding the foregoing, the Board may, in its discretion, permit a Participant to transfer all or a portion of his or her stock options to members of his or her immediate family, to trusts established for the benefit of members of his or her
immediate family, or to family limited partnerships in which the Participant and immediate family members are the only partners, provided that the Participant may receive no consideration for such transfers, and that such transferred award shall be
subject to all of the terms and conditions of the Plan and the Grant Agreement relating to the transferred award. 

  
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 X. ADMINISTRATION. 
 10.1 The Plan shall be administered by the Board. Notwithstanding the preceding sentence, the Board may delegate its authority under this Plan to the Compensation Committee or to any other Committee of
the Board consisting of at least two Board members who each qualify as (i) a “non-employee director” within the meaning of Rule 16b-3, (ii) an “outside director” within the meaning of Section 162(m) of the Code and
the regulations thereunder (or any successor law or regulation), and (iii) an “independent director” as such term is defined or used by the rules of the NASDAQ Stock Market or any other exchange on which Common Stock is listed. The
members of any such Committee shall serve at the pleasure of the Board. 
 10.2 Except as provided in Section 3.2, the
Board shall have the authority, in its sole discretion, from time to time: 
 (a) to grant Awards to officers, employees and
directors of the Corporation and of Subsidiaries of the Corporation, as provided for in this Plan; 
 (b) to prescribe such
limitations, restrictions and conditions upon any such Awards as the Board shall deem appropriate; 
 (c) to accelerate the
vesting of Restricted Shares or other Awards, as it may deem appropriate; 
 (d) to amend the relevant Grant Agreements with the
consent of the affected Participants, including amending such agreements to amend vesting schedules, as it may deem to be desirable; and 
 (e) to interpret the Plan, to adopt, amend and rescind rules and regulations relating to the Plan, and to make all other determinations and to take all other action necessary or advisable for the
implementation and administration of the Plan. 
 10.3 All actions taken by the Board shall be final, conclusive and binding
upon any eligible Participant. No member of the Board, the Compensation Committee or other Board Committee shall be liable for any action taken or decision made in good faith relating to the Plan or any award thereunder. 

XI. AMENDMENT AND TERMINATION. 

11.1 Amendment or Termination of the Plan. The Board may at any time and may from time to time amend this Plan as it may deem
advisable; provided, however the Board shall obtain shareholder approval of any amendment for which shareholder approval is required under the shareholder approval requirements imposed on the Corporation by the Listing Rules of any stock exchange on
which the Common Stock is listed, including an amendment which would (i) increase the aggregate number of shares of Common Stock which may be issued under this Plan (other than increases permitted under Section 8.2), or (ii) extend
the term of this Plan. The amendment of this Plan shall not, without the consent of the affected Participant, affect such Participant’s rights under an Award previously granted. 

  
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 11.2 Term of Plan. No Awards shall be granted under the Plan after September 9,
2021, the tenth anniversary of the date on which the Plan became effective. 
 XII. NON-EXCLUSIVITY OF THE PLAN. Neither the adoption of the
Plan by the Board nor the submission of the Plan to the shareholders of the Corporation for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable,
including, without limitation, the granting of stock options and the awarding of stock and/or cash, and such arrangements may be either generally applicable or applicable only in specific cases. 

XIII. GOVERNING LAW. The Plan shall be governed by, and construed in accordance with, the laws of the State of Florida. 

Adopted by the Board of Directors on September 9, 2011 

  
 - 11 -Form of Performance Restricted Stock Equivalent Award Agreement

 Exhibit 10.2 
 PERFORMANCE RESTRICTED STOCK EQUIVALENT AWARD AGREEMENT 
 In consideration
of the mutual covenants contained herein, Energizer Holdings, Inc. (“Company”), and
                                        
(“Recipient”) hereby agree as follows: 
 ARTICLE I 

COMPANY COVENANTS 

Company hereby covenants: 
  

	1.	Award. 

 The Company,
pursuant to its 2009 Incentive Stock Plan (the “Plan”), grants to Recipient a Restricted Stock Equivalent Award of                     
restricted common stock equivalents (“Performance Equivalents”). This Award Agreement is subject to the provisions of the Plan and to the following terms and conditions. 

 

	2.	Vesting; Payment. 

 Vesting of the Performance Equivalents is contingent upon achievement of performance targets with respect to the Company’s CAGR for the period from September 30,
             through September 30,              [3-year period] (the “Measurement Period”). As indicated in the
following chart, a number of Performance Equivalents equal to         % of the total Performance Equivalents granted, as set forth in Paragraph 1 above, will vest on the date that the Company publicly releases
earnings results for the third fiscal year of the Measurement Period (the “Vesting/Payment Date”) only if         % CAGR is achieved for the Measurement Period, increasing proportionately, in
1/10th of one percent increments, up to
        % of the total Performance Equivalents granted if         % or greater CAGR is achieved for that period. By way of example, the following percentages will vest
at the specific CAGR targets noted below. Fractional Performance Equivalents vesting will be rounded up to the nearest whole number. 
  

			
	 CAGR
	 	 Percentage

Vesting

 
  
  

 
 Upon vesting, as described above, each earned Performance
Equivalent will convert, at that time into one share of the Company’s $.01 par value Common Stock (“Common Stock”), 

 
which will be issued to the Recipient. Such shares of Common Stock shall be issued on, or as soon as practicable after, the Vesting/Payment Date, but not later than December 31 following
such Vesting/Payment Date. Any Performance Equivalents which fail to vest as of the Vesting/Payment Date will be forfeited and the Recipient will have no further rights with respect thereto. 

 

	3.	Additional Cash Payment. 

Additional cash payments equal to the amount of dividends, if any, which would have been paid to the Recipient had shares of Common Stock
been issued in lieu of the vesting Performance Equivalents, will be paid, solely with respect to the number of Performance Equivalents vesting as of the Vesting/Payment Date, on or after such Vesting/Payment Date, but not later than the
December 31 following such Vesting/Payment Date. No interest shall be included in the calculation of such additional cash payment. 
  

	4.	Acceleration. 

Notwithstanding the provisions of paragraph 2 above, all Performance Equivalents granted to the Recipient will immediately vest, convert
into shares of Common Stock and be paid to the Recipient, his or her designated beneficiary, or his or her legal representative, in accordance with the terms of the Plan, in the event of: 

 

	 	(a)	the Recipient’s death; or 

  

	 	(b)	Recipient’s involuntary Termination of Employment, by reason of continuing disability, immediately following exhaustion of short-term disability benefits.

 In the event of acceleration because of the occurrence of one of the two events above, the shares of Common
Stock into which the Performance Equivalents convert will be issued, and related payments, if any, shall be paid, no later than (i) the 15th day of the third calendar month following such event, or (ii) a date after such event, but not later than the
December 31st immediately following such event.

  

	5.	Acceleration Upon a Change of Control of Company. 

 Notwithstanding the provisions of paragraph 2 above, if a Change of Control occurs at or within eighteen (18) months following the date of this Award Agreement, 50% of the total Performance
Equivalents granted will immediately vest and convert into shares of Common Stock. If the Change of Control occurs more than eighteen (18) months following the date of this Award Agreement, but before the Vesting/Payment Date, the Performance
Equivalents which will immediately vest and convert into Common Stock will be the greater of: 
  

	 	(a)	50% of the total Performance Equivalents granted, or 

  

	 	(b)	the percentage of total Performance Equivalents granted which would have vested under paragraph 2 above if the Company’s CAGR on the Vesting/Payment Date was the
actual annualized CAGR, calculated on a trailing four quarters basis, for the period between September 30,              and the last fiscal quarter end prior to the Change of Control
for which Company financial results were publicly disclosed. 

  
 2 

 Any such shares of Common Stock which are issued as a result of such acceleration and
vesting of Performance Equivalents upon a Change of Control shall be issued, and related payments, if any, shall be paid, to Recipient no later than (i) the 15th day of the third calendar month after the Change of Control, or (ii) a date after the Change of Control, but not
later than the December 31st immediately following
the Change of Control. 
 In the event of a Change of Control, any unvested Performance Equivalents which do not vest as described in this
paragraph shall be forfeited. 
  

	6.	Forfeiture. 

 All rights
in and to any and all Performance Equivalents granted pursuant to this Award Agreement, and to any shares of Common Stock into which they would convert, which have not vested by the Vesting/Payment Date, as described in paragraph 2 above, or as
described in paragraphs 4 and 5 above, shall be forfeited. In addition, all rights in and to any and all Performance Equivalents granted pursuant to this Award Agreement which have not vested in accordance with the terms hereof, and to any shares of
Common Stock into which they would convert, shall be forfeited upon 
  

	 	(a)	the Recipient’s voluntary or involuntary Termination of Employment, other than an involuntary Termination of Employment, by reason of continuing disability,
immediately following exhaustion of short-term disability benefits; 

  

	 	(b)	a determination by the Committee that the Recipient engaged in competition with the Company or other conduct contrary to the best interests of the Company in violation
of Article II of this Agreement; or 

  

	 	(c)	as described in paragraph 5 above. 

  

	7.	Shareholder Rights; Adjustment of Equivalents. 

 Recipient shall not be entitled, prior to the conversion of Performance Equivalents into shares of Common Stock, to any rights as a shareholder with respect to such shares of Common Stock, including the
right to vote, sell, pledge, transfer or otherwise dispose of the shares. Recipient shall, however, have the right to designate a beneficiary to receive such shares of Common Stock under this Award Agreement, subject to the provisions of Section V
of the Plan. The number of Performance Equivalents credited to Recipient shall be adjusted in accordance with the provisions of Section VI(F) of the Plan. 

  
 3 

	8.	Other. 

 The Company
reserves the right, as determined by the Nominating and Executive Compensation Committee of the Board of Directors of the Company (the “Committee”), to convert this Award Agreement to a substantially equivalent award and to make any other
modification it may consider necessary or advisable to comply with any applicable law or governmental regulation, or to preserve the tax deductibility of any payments hereunder. Shares of Common Stock shall be withheld in satisfaction of federal,
state, and local or other international withholding tax obligations arising upon the vesting of Equivalents. Shares of Common Stock tendered as payment of required withholding shall be valued at the Fair Market Value of the Company’s Common
Stock on the date such withholding obligation arises. 
  

	9.	Delayed Payment Upon Termination of Employment. 

 Subject to the provisions of this Award concerning acceleration and payment upon death or involuntary Termination of Employment immediately following exhaustion of short-term disability benefits, a
payment on account of Termination of Employment may not be made until at least six months after such Termination of Employment. Any payment otherwise due in such six month period shall be suspended and become payable at the end of such six month
period. 
  

	10.	Definitions. 

 Affiliates shall
mean all entities within the controlled group that includes the Company, as defined in Code Sections 414(b) and 414(c) and the regulations thereunder, provided that the language “at least 50 percent” shall be used instead of “at least
80 percent” each place it appears in such definition. 
 Change of Control shall mean the following: 

 

	 	(i)	The acquisition by one person, or more than one person acting as a group, of ownership of stock (including Common Stock) of the Company that, together with stock held
by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company. Notwithstanding the above, if any person or more than one person acting as a group, is considered to own more than
50% of the total fair market value or total voting power of the stock of the Company, the acquisition of additional stock by the same person or persons will not constitute a Change of Control; or 

 

	 	(ii)	A majority of the members of the Company’s Board of Directors is replaced during any twelve-month period by directors whose appointment or election is not endorsed
by a majority of the members of the Company’s Board of Directors before the date of the appointment or election. 

 Persons
will not be considered to be acting as a group solely because they purchase or own stock of the same corporation at the same time, or as a result of the same public offering. However, persons will be considered to be acting as a group if they are
owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. 

  
 4 

 This definition of Change of Control shall be interpreted in accordance with, and in a manner that will
bring the definition into compliance with, the regulations under Section 409A of the Internal Revenue Code. 
 CAGR
shall mean the Company’s compound annual growth rate in earnings per share (as publicly reported by the Company) for the applicable measurement period, rounded to the nearest whole percentage. For purposes of the calculation of CAGR, the
determination of annual earnings per share will be based on all-inclusive GAAP results, adjusted only for certain unusual items: 
  

	 	•	 	 extraordinary dividends; 

  

	 	•	 	 stock split-ups; stock dividends or distributions; 

  

	 	•	 	 recapitalizations; 

  

	 	•	 	 any merger of the Company with another corporation; 

  

	 	•	 	 any consolidation of the Company and another corporation into another corporation; 

 

	 	•	 	 any separation of the Company or its business units (including a spin-off or other distribution of stock or property by the Company);

  

	 	•	 	 any reorganization of the Company (whether or not such reorganization comes within the definition of such term in Code Section 368);

  

	 	•	 	 any partial or complete liquidation by the Company; or sale of all or substantially all of the assets of the Company; 

 

	 	•	 	 unusual or non-recurring accounting impacts or changes in accounting standards or treatment; 

 

	 	•	 	 unusual or non-recurring accounting treatments related to an acquisition by the Company completed during the period of the award;

  

	 	•	 	 unusual or non-recurring non-cash asset impairment, such as non-cash write-downs of goodwill or tradenames; and 

 

	 	•	 	 any other extraordinary corporate event which causes an unusual or non-recurring accounting impact. 

In addition, on or before December 28,             , the Committee, in its sole
discretion, may adjust the             base earnings per share number utilized to determine CAGR for the Measurement Period in order to reflect non-GAAP adjustments which it deems
appropriate. In the event of such adjustments, the Company will send a notice to Recipient indicating the base earnings per share utilized by the Committee, which base shall be binding upon the Company and Recipient for purposes of this Agreement.

 Termination of Employment shall mean a “separation from service” with the Company and its Affiliates, as such term is
defined in Code Section 409A and the regulations thereunder. 

  
 5 

 ARTICLE II 

RECIPIENT COVENANTS 

Recipient hereby covenants: 
 1.
Confidential Information. 
 By executing this Award Agreement, I agree that I shall not, directly or indirectly, use,
make available, sell, disclose or otherwise communicate to any person, other than in the course of my assigned duties and for the benefit of the Company, either during the period of my employment or at any time thereafter, any nonpublic, proprietary
or confidential information, knowledge or data relating to the Company, any of its affiliates, or their businesses, which I shall have obtained during my employment by the Company or an affiliate. The foregoing shall not apply to information that
(a) was known to the public prior to its disclosure to me; (b) becomes known to the public subsequent to disclosure to me through no wrongful act or mine or any of my representatives; or (c) I am required to disclose by applicable
law, regulation or legal process (provided that I provide the Company with prior notice of the contemplated disclosure and reasonably cooperate with the Company at its expense in seeking a protective order or other appropriate protection of such
information). Notwithstanding clauses (a) or (b) of the preceding sentence, my obligation to maintain such disclosed information in confidence shall not terminate if only portions of the information are in the public domain. 

2. Non-Competition. 
 By
executing this Award Agreement, I acknowledge that my services are of a unique nature for the Company that are irreplaceable, and that my performance of such services for a competing business will result in irreparable harm to the Company and its
affiliates. Accordingly, during my employment with the Company or any affiliate and for the [one (1)/two (2)]* year period thereafter, I agree that I will not, directly or indirectly, own, manage, operate, control, be employed by (whether as an
employee, consultant, independent contractor or otherwise, and whether or not for compensation) or render services to any person, firm, corporation or other entity, in whatever form, engaged in any business of the same type as any business in which
the Company or any of its affiliates is engaged on the date of termination or in which they have proposed, on or prior to such date, to be engaged in on or after such date and in which I have been involved to any extent (on other than a de minimus
basis) at any time during the one (1) year period ending with my date of termination, in any locale of any country in which the Company or any of its affiliates conducts business. This subsection shall not prevent me from owning not more than
one percent of the total shares of all classes of stock outstanding of any publicly held entity engaged in such business. I agree that the foregoing restrictions are reasonable, necessary, and enforceable for the protection of the goodwill and
business of the Company. 
 3. Non-Solicitation. 
 During my employment with the Company or an affiliate and for the two (2) year period thereafter, I agree that I will not, directly or indirectly, individually or on behalf of any other person, firm,
corporation or other entity, knowingly solicit, aid or induce (a) any employee of the Company or any affiliate to leave such employment in order to accept employment with or 

  
 6 

 
render services to or with any other person, firm, corporation or other entity unaffiliated with the Company or knowingly take any action to hire or to materially assist or aid any other person,
firm, corporation or other entity in identifying or hiring any such employee, or (b) any customer of the Company or any affiliate to purchase goods or services then sold by the Company or any affiliate from another person, firm, corporation or
other entity or assist or aid any other persons or entity in identifying or soliciting any such customer. I agree that the foregoing restrictions are reasonable, necessary, and enforceable in order to protect the Company’s trade secrets,
confidential and proprietary information, goodwill, and loyalty. 
 4. Non-Disparagement. 

I agree not to make any statements that disparage the Company or its affiliates or their respective employees, officers, directors,
products or services, and the Company, by its execution of this Award Agreement agrees that it and its affiliates and their respective executive officers and directors shall not make any such statements regarding me. Notwithstanding the foregoing,
statements made in the course of sworn testimony in administrative, judicial or arbitral proceedings (including, without limitation, depositions in connection with such proceedings) shall not be subject to this subsection. 

5. Reasonableness. 
 In
the event any of the provisions of this Article II shall ever be deemed to exceed the time, scope or geographic limitations permitted by applicable laws, then such provisions shall be reformed to the maximum time, scope or geographic limitations, as
the case may be, permitted by applicable laws. 
 6. Equitable Relief. 

 

	 	(a)	I acknowledge that the restrictions contained in this Article II are reasonable and necessary to protect the legitimate interests of the Company and its affiliates,
that the Company would not have granted me this Award Agreement in the absence of such restrictions, and that any violation of any provisions of this Article II will result in irreparable injury to the Company and its affiliates. By agreeing to
accept this Award Agreement, I represent that my experience and capabilities are such that the restrictions contained herein will not prevent me from obtaining employment or otherwise earning a living at the same general level of economic benefit as
is currently the case. I further represent and acknowledge that I have been advised by the Company to consult my own legal counsel in respect of this Award Agreement, and I have had full opportunity, prior to agreeing to accept this Award Agreement,
to review thoroughly its terms and provisions with my counsel. 

  

	 	(b)	I agree that the Company shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual damages, as well as an equitable
accounting of all earnings, profits and other benefits arising from any violation of this Article II, which rights shall be cumulative and in addition to any other rights or remedies to which the Company may be entitled. 

  
 7 

	 	(c)	I irrevocably and unconditionally consent to the service of any process, pleadings notices or other papers in a manner permitted by law. 

 

	7.	Waiver; Survival of Provisions. 

 The failure by the Company to enforce at any time any of the provisions of this Article II or to require at any time performance by me of any provisions hereof, shall in no way be construed to be a
release of me or waiver of such provisions or to affect the validity of this Award Agreement or any part hereof, or the right of the Company thereafter to enforce every such provision in accordance with the terms of this Award Agreement. The
obligations contained in this Article II shall survive the termination of my employment with the Company or any affiliate and shall be fully enforceable thereafter. 
 ARTICLE III 
 OTHER AGREEMENTS 

 

	1.	Governing Law.  

All questions pertaining to the validity, construction, execution, and performance of this Award Agreement shall be construed in
accordance with, and be governed by, the laws of the State of Missouri, without giving effect to the choice of law principles thereof. 
  

	2.	Notices. 

 Any notices
necessary or required to be given under this Award Agreement shall be sufficiently given if in writing, and personally delivered or mailed by registered or certified mail, return receipt requested, postage prepaid, to the last known addresses of the
parties hereto, or to such other address or addresses as any of the parties shall have specified in writing to the other party hereto. 
  

	3.	Entire Agreement. 

 This
Award Agreement constitutes the entire agreement of the parties hereto with respect to the matters contained herein, and no modification, amendment, or waiver of any of the provision of this Award Agreement shall be effective unless in writing and
signed by all parties hereto. This Award Agreement constitutes the only agreement between the parties hereto with respect to the matters herein contained. 
  

	4.	Waiver.  

 No
change or modification of this Award Agreement shall be valid unless the same is in writing and signed by all the parties hereto. No waiver of any provision of this Award Agreement shall be valid unless in writing and signed by the party against
whom it is sought to be enforced. 
  

	5.	Counterparts; Effect of Recipient’s Signature. 

 This Award Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same agreement and shall

  
 8 

 
become effective when one or more counterparts have been signed by each of the parties and delivered to the other party, it being understood that both parties need not sign the same counterpart.
The provisions of this Award Agreement shall not be valid and in effect until such execution by both parties. By the execution of this Award Agreement, Recipient signifies that Recipient has fully read, completely understands, and voluntarily agrees
with this Award Agreement consisting of nine (9) pages and knowingly and voluntarily accepts all of its terms and conditions. 
  

	6.	Effective Date. 

 This
Award Agreement shall be deemed to be effective as of the date executed. 
 IN WITNESS WHEREOF, the Company duly executed this
Award Agreement as of                     ,
                    , and Recipient duly executed it as of
                    ,                     .

  

							
	ACKNOWLEDGED AND ACCEPTED:	 		 	ENERGIZER HOLDINGS, INC.
				
	  
	 		 	By:	 	 
	Recipient	 		 		 	
		 		 		 	

  

	*	[Two years to be inserted in the agreement of the Chief Executive Officer, one year in the agreement of other executives.] 

  
 9

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