Document:

Document

HOSTESS BRANDS, INC.
2016 EQUITY INCENTIVE PLAN

PERFORMANCE SHARE UNIT AWARD AGREEMENT

Cover Sheet

Hostess Brands, Inc., a company incorporated under the laws of the State of Delaware (“Company”), hereby grants an award of performance share units (“PSUs”) to the individual named below.  The terms and conditions of the PSUs are set forth in this cover sheet (“Cover Sheet”), in the attached Performance Share Award Agreement (the “Agreement”) and in the Hostess Brands, Inc. 2016 Equity Incentive Plan (the “Plan”).  All capitalized terms used but not defined in this Cover Sheet and the Agreement will have the meanings ascribed to such terms in the Plan.

									
	Granted to:		
	Date of Grant:		
	Performance Period:		
	Performance Metric:		Relative TSR (as defined in Exhibit A)
	Target Number of PSUs:		

															
	Performance Goal:			Company's Relative TSR Rank	Number of PSUs that vest
			Maximum*		
			Target		
			Threshold or below		
				*If the Company's TSR for the Performance Period is negative, the maximum number of PSUs that vest will be limited to the target number of PSUs, as described in Exhibit A

	Vesting Date:				

By signing this Cover Sheet, you agree to all of the terms and conditions described in this Cover Sheet, in the Agreement and in the Plan.  If you do not sign and return this Cover Sheet within 60 days of the Date of Grant, the Company will have the right to rescind this Award. 

												
	Signature:		Date:	

  
HOSTESS BRANDS, INC.

    
By:                
Name:    
Title:    

			
	

HOSTESS BRANDS, INC.
PERFORMANCE SHARE AWARD AGREEMENT

Right to Shares    The award of PSUs represents your right to receive, and the Company’s obligation to issue, one share of the Company’s Class A Common Stock (a “Share”) for each PSU that is or becomes a Vested PSU (as described below) on the Vesting Date, subject to the terms of this Agreement.  Such issuance will occur as soon as practicable following the date the Committee certifies the extent to which Performance Goal has been satisfied, determined in accordance with Exhibit A attached hereto, but no later than 70 days following the Vesting Date.  Notwithstanding the foregoing, the Company will not permit the issuance of Shares at a time when such issuance would violate any law, rule, regulation or Company policy, as determined by the Company.
        
Vested PSUs    The number of PSUs, if any, that become Vested PSUs will be determined, based on the extent to which the Performance Goal, as set forth in the Cover Sheet, has been achieved for the Performance Period, as determined in accordance with Exhibit A and certified by the Committee, subject in all cases, to your continued employment through the Vesting Date.  If actual performance is equal to or below the threshold Performance Goal for the Performance Period, then no PSUs will become Vested PSUs for the Performance Period.  If the target Performance Goal has been achieved for the Performance Period, then the target number of PSUs for the Performance Period, as set forth on the Cover Sheet, will become Vested PSUs for the Performance Period.  If the maximum Performance Goal (or greater) has been achieved for the Performance Period, then the maximum number of PSUs for the Performance Period, as set forth on the Cover Sheet, will become Vested PSUs for the Performance Period.  If actual performance falls between the threshold Performance Goal and the target Performance Goal, or between the target Performance Goal and the maximum Performance Goal, the number of PSUs that become Vested PSUs will be determined by linear interpolation between the respective performance inflection points.  Notwithstanding the foregoing, if actual performance exceeds the target Performance Goal, the number of PSUs that become Vested PSUs will be subject to the Maximum Cap described in Exhibit A.
        
Performance Metric    As set forth in the Cover Sheet, the Performance Metric shall be Relative TSR, as defined and further described in Exhibit A.
        
Vesting; Forfeiture    On the Vesting Date, your right to issuance of the Shares underlying any PSUs that are Vested PSUs as of the Vesting Date shall become vested and nonforfeitable.  Should your employment with the Company and its Subsidiaries terminate for any reason prior to the Vesting Date, all PSUs will be forfeited and you will have no right to the issuance of any Shares hereunder.  Notwithstanding the foregoing and except as provided below in connection with a Change in Control, if such termination is other than (i) by you voluntarily without Good Reason or (ii) by the Company for Cause, and in either case, the date of your termination of employment is at least one year following the Date of Grant, the date of such termination will be treated as if it were the Vesting Date, and you will be entitled to issuance of a number of Shares underlying any PSUs that would become Vested PSUs determined as if the Performance Period ended on the Performance Measurement Date, and the number of PSUs as set forth in the Cover Sheet was prorated to reflect the shortened vesting period, but your rights in respect of any additional PSUs will be forfeited.  For purposes of this Agreement, “Performance Measurement Date” means the date on or preceding your employment termination date as of which the Company most recently received a report from its third-party advisors indicating its Relative TSR Rank determined in accordance with Exhibit A; provided that, the Company shall receive such report no less frequently than annually.  Issuance of shares underlying Vested PSUs determined in accordance with this paragraph shall occur within 70 days following your termination of employment.
        
Termination for Cause; Breach of any Continuing Obligation; Recoupment        

If your employment is terminated for Cause or if you breach any restrictive covenant under any agreement between you and the Company or its Subsidiaries, the PSUs, whether or not vested, will immediately terminate.
    
			
	DB1/ 126966973.2

In addition, if at any time within one year after the date on which you receive payment in respect of the PSUs (whether in the form of cash or Shares), (a) your employment is terminated for Cause or (b) after termination of your employment for any reason, the Committee determines in its discretion either that (i) during your period of employment, you engaged in an act or omission that would have warranted termination of your employment for Cause or (ii) after termination of your employment, you engaged in conduct that violated any continuing obligation or duty in respect of the Company or any Subsidiary (including any breach of any restrictive covenant under any agreement between you and the Company or any Subsidiary), then, subject to applicable law, upon notice from the Company, you shall repay to the Company any cash or Shares you received pursuant to the PSUs, or if you disposed of any such Shares, the Fair Market Value of such Shares as of the date of disposition.

Nothing in this Agreement shall limit the Company’s right of recoupment pursuant to Section 13 of the Plan, including recoupment of payments pursuant to the Company’s compensation recovery, “clawback” or similar policy, as may be in effect from time to time.
        
Change of Control    Notwithstanding the foregoing:

(A) If there occurs a Change of Control prior to the last day of the Performance Period, and this Award does not continue or is not assumed by an acquiror, then the date of such Change of Control will be treated as if it were the Vesting Date, and you will be entitled to issuance of a number of Shares underlying any PSUs that would become Vested PSUs determined as if the Performance Period ended on the date of the Change of Control, and the number of PSUs as set forth in the Cover Sheet was prorated to reflect the shortened vesting period. Issuance of shares underlying Vested PSUs determined in accordance with this subsection (A) shall occur within 70 days following the Change of Control; and

(B) If there occurs a Change of Control prior to the last day of the Performance Period, and this Award continues or is assumed by an acquiror, and you experience a Change in Control Termination as defined by the HB Key Executive Severance Benefit Plan, as in effect at the time of your termination of employment, or your employment is otherwise terminated by the Company for any reason other than Cause, then the number of PSUs that become Vested PSUs as of the date of such termination shall be equal to the target number of PSUs, as set forth on the Cover Sheet.  Issuance of shares underlying Vested PSUs determined in accordance with this subsection (B) shall occur within 70 days following your termination of employment.

For purposes of the foregoing, this Award shall not be treated as continued or assumed unless it is continued or assumed on a substantially equivalent basis, including, without limitation, continuation or assumption of the Performance Metric and Performance Goals.
        
Taxes    You are solely responsible for the satisfaction of all taxes and penalties that may arise in connection with the award or settlement of the PSUs.  At the time of taxation, the Company shall have the right to deduct from other compensation, or to withhold Shares in an amount equal to the federal (including FICA), state, local and foreign taxes and other amounts as may be required by law to be withheld with respect to the PSUs.  If Shares are withheld, the value of the Shares withheld may not exceed the minimum applicable tax withholding amount (except as otherwise determined by the Committee in its sole discretion).  By accepting this Award, you expressly consent to the withholding of Shares or other amounts payable to you.
        
Restrictions on Resale/ Company Policies         

By signing this Agreement, you agree not to sell any Shares received hereunder at a time when applicable laws, regulations or Company policies prohibit a sale.  Any Shares issued hereunder, and any cash proceeds realized from the sale of such Shares will be subject to all share retention, trading, and other policies that may be implemented by the Committee or the Board from time to time. 
    
			
	DB1/ 126966973.2

        
Transfer of right to receive PSUs        

You cannot transfer or assign your PSUs.  For instance, you may not sell your right to PSUs or use such right as security for a loan.  If you attempt to do any of these things, your Award will immediately become invalid.  

Regardless of any marital property settlement agreement, the Company or a securities broker, as applicable, is not obligated to recognize your former spouse’s interest in your right to PSUs in any way.
        
Stockholder Rights     You, or your estate or heirs, have no rights as a stockholder of the Company in respect of PSUs, unless and until the underlying Shares are issued.  No adjustments are made for dividends or other rights if the applicable record date occurs before Shares are issued, except as described in the Plan.  However, to the extent you hold PSUs on the record date any cash dividend is declared on Shares, you will receive a dividend equivalent right (“DER”).  A DER is a right to an amount, per PSU held, equal to the amount of the cash dividend declared and paid in respect of one Share.  DERs will be credited in the form of additional PSUs, with the number of PSUs based on the Fair Market Value of a Share as of the date the dividend is paid (rounded down to the nearest whole Share).  DERs will be subject to the same vesting and other conditions as the PSUs.  If and to the extent that the underlying PSUs are forfeited, all related DERs shall also be forfeited.  DERs will be paid at the same time the underlying PSUs are settled if and to the extent that the underlying PSUs vest and become payable.
        
No Right to Continued Employment        

Neither the grant of this Award, nor any other action taken hereunder shall be construed as giving you the right to be retained in the employ or service of the Company or any of its Subsidiaries (for the vesting period or any other period of time) nor interfere in any way with the Company’s right to terminate your employment.
        
Applicable Law and Arbitration        

This Agreement will be subject to and interpreted in accordance with the laws of the State of Delaware, without reference to the principles of conflicts of laws, and applicable Federal or other securities laws.  Any dispute, controversy or claim arising out of or relating to the Plan or this Agreement that cannot be resolved by you on the one hand and the Company on the other, shall be submitted to arbitration in accordance with the terms of the Plan.
        
Certain Definitions    For purposes of this Agreement, “Cause” and “Good Reason” shall have the meanings set forth in the Employment Agreement between you and Hostess Brands, LLC entered into on April 12, 2018, as amended by First Amendment to Employment Agreement dated as of August 1, 2018.
        
Delivery of Documents        

The Company may, in its sole discretion, decide to deliver any documents related to this Award or other Awards granted to you under the Plan by electronic means.  By signing the Cover Sheet, you consent to receive all documents related to this Award or other Awards granted to your under the Plan by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
        
Amendment    The terms and conditions of this Agreement and the PSUs may be amended by the Committee or the Board as permitted by the Plan.

The Plan and Other Agreements        

The text of the Plan and any amendments thereto are incorporated in this Agreement by reference.
    
			
	DB1/ 126966973.2

This Agreement, the Cover Sheet and the Plan constitute the entire understanding between you and the Company regarding the PSUs.  Any prior agreements, commitments or negotiations concerning the PSUs are superseded.  In the event there is any express conflict between this Agreement, the Cover Sheet and the terms of the Plan, the terms of the Plan shall govern.

By signing the Cover Sheet of this Agreement, you agree to all of the terms and conditions described above and in the Plan and evidence your acceptance of the powers of the Committee of the Board of Directors of the Company that administers the Plan.
    
			
	DB1/ 126966973.2

HOSTESS BRANDS, INC.
2016 EQUITY INCENTIVE PLAN
PERFORMANCE SHARE UNIT AWARD AGREEMENT

Exhibit A

The PSUs will vest based on the Company’s total shareholder return (“TSR”) for the Performance Period compared to the TSR of the companies in the S&P Composite 1500 Packaged Foods and Meats Sub Index (the “Peer Group Companies”) for the Performance Period (the “Relative TSR”), subject to the Maximum Cap described below.

TSR for the Company and each Peer Group Company for the Performance Period shall be calculated as follows:

•the (x) Average Final Price minus the Average Initial Price, plus Reinvested Dividends, divided by (y) the Average Initial Price.

•The “Average Initial Price” is equal to the average closing price of a share of such company’s stock during the 20 trading day period ending immediately prior to the first day of the Performance Period.

•The “Average Final Price” is equal to the average closing price of a share of such company’s stock during the last 20 trading days in the Performance Period.

•“Reinvested Dividends” shall be calculated by multiplying (x) the aggregate number of shares of each company’s stock (including fractional shares) that could have been purchased during the Performance Period had each cash dividend paid on a single share during the Performance Period been immediately reinvested in additional shares of such company’s stock (or fractional shares) at the closing price per share of such company’s stock on the applicable dividend payment date by (y) the average daily closing price per share of such company’s stock calculated for the last 20 trading days in the Performance Period.  

At the end of the Performance Period, the Company’s TSR and the TSR of each of the Peer Group Companies will be ranked from highest to lowest (for clarity, the Company’s TSR will be excluded from the comparator set for ranking).  The number of PSUs that vest will be determined based on the Company’s Relative TSR as follows:
									
	Performance	Company Relative TSR Rank	Number of PSUs that Vest
	Maximum		
	Target		
	Threshold or below		

If the Company’s Relative TSR rank is between the threshold Performance Goal and the target Performance Goal or between the target Performance Goal and the maximum Performance Goal, the number of Vested PSUs will be determined by linear interpolation between the respective performance inflection points.
Notwithstanding anything in this Exhibit A or the Agreement to the contrary, if the Company’s TSR for the Performance Period (as calculated in accordance with the formula set forth above) is a negative number, the number of PSUs that vest shall not exceed the target number of PSUs (regardless of whether the Company’s Relative TSR rank is between the target Performance Goal and the maximum Performance Goal), as set forth on the Cover Sheet (such limitation, the “Maximum Cap”).
Any PSUs that do not vest on the Vesting Date shall be forfeited.
    
			
	DB1/ 126966973.2

For the avoidance of doubt, the Peer Group Companies shall consist of the following companies, which are the companies in the S&P Composite 1500 Packaged Foods and Meats Sub Index as of the first day of the Performance Period.

B&G Foods, Inc.
Calavo Growers, Inc.
Cal-Maine Foods, Inc.
Campbell Soup Company
Conagra Brands, Inc.
Flowers Foods, Inc.
General Mills, Inc.
Hormel Foods Corporation
J & J Snack Foods Corp.
John B. Sanfilippo & Son, Inc.
Kellogg Company
Lamb Weston Holdings, Inc.
Lancaster Colony Corporation
McCormick & Company, Incorporated
Mondelez International, Inc.
Pilgrim's Pride Corporation
Post Holdings, Inc.
Sanderson Farms, Inc.
Seneca Foods Corporation
The Hain Celestial Group, Inc.
The Hershey Company
The J. M. Smucker Company
The Kraft Heinz Company
The Simply Good Foods Company
Tootsie Roll Industries, Inc.
TreeHouse Foods, Inc.
Tyson Foods, Inc.

•In the event of a merger, acquisition or business combination transaction of a Peer Group Company during the Performance Period in which such Peer Group Company is the surviving entity and remains publicly traded, the surviving entity shall remain a Peer Group Company.  Any entity involved in the transaction during the Performance Period that is not the surviving company shall no longer be a Peer Group Company.

•In the event of a merger, acquisition or business combination transaction of a Peer Group Company, a “going private” transaction or other event involving a Peer Group Company or the liquidation of a Peer Group Company (other than a bankruptcy as described below), in each case during the Performance Period and where the Peer Group Company is not the surviving entity or is no longer publicly traded, such Peer Group Company shall no longer be a Peer Group Company.

•Notwithstanding the foregoing, in the event of a bankruptcy of a Peer Group Company during the Performance Period where the Peer Group Company is not publicly traded at the end of the Performance Period, such Peer Group Company shall remain a Peer Group Company but shall be deemed to be ranked last among all Peer Group Companies.

    
			
	DB1/ 126966973.2Document

Hostess Brands, Inc. Incentive Compensation Plan for Exempt Employees

Introduction
The Hostess Brands, Inc. (the “Company”) Incentive Compensation Plan for Exempt Employees (the “Plan”) provides the opportunity for compensation in addition to base salary to designated employees. The Plan is designed to motivate Participants (as defined below) to grow the business through increased sales, profitability and valuable contribution within their area of expertise. While employees play many different roles within the Company, the Company will only be successful if all employees are focused on achieving common goals, strive individually for functional excellence in their assigned roles and contribute to organizational excellence as a team. Participants may receive incentive compensation under the Plan (“Incentive Comp”) if the Company and Participants achieve certain designated results (the “Metric(s)”). The four Metrics under the Plan are EBITDA, Net Revenue, Free Cash Flow and Strategic Goals.  EBITDA, Net Revenue and Free Cash Flow Metrics will be approved by the Talent and Compensation Committee (the “Committee”).

Administration
•The Plan will be administered by the Committee, which will have the full power and authority to interpret and administer the Plan. All decisions and determinations of the Committee shall be final, conclusive and binding. The Committee may delegate such duties or responsibilities to an officer of the Company as it deems desirable.

•The Plan year begins on January 1st and ends on December 31st. Except as otherwise set forth herein, the calculation of any Incentive Comp payments will be based on a Participant’s Incentive Comp level (defined as a percentage of base salary) and base salary at the end of the Plan year. Participants are assigned an Incentive Comp level based on their position or specified in their offer letter. For example, if a Participant’s base salary at the end of the Plan year is $100,000 and that employee has a 20% Incentive Comp level, the Incentive Comp target for that Participant would be $100,000 x 20% or $20,000.

•The Committee shall determine the extent to which EBITDA, Net Revenue and Free Cash Flow Metrics are achieved.

Funding 
•    Attainment of not less than 93% of the Company’s Annual Operating Plan (“AOP”) established EBITDA must be achieved in order to establish funding for Incentive Comp payments under any Metric to occur (“EBITDA Funding”). If EBITDA Funding is achieved, the Plan will fund 50% based on EBITDA and 50% based on Net Revenue Metrics.   Funding for each of these Metrics is independent and will be calculated based on the schedule below.

•The EBITDA and Net Revenue Metrics will fund on the following schedule, subject to the Company’s discretion, as described below:

1

						
	% of EBITDA/Net Revenue  Achieved
	% Funded
	Below 93%	0%
	93%	40%
	94%	50%
	95%	60%
	96%	65%
	97%	75%
	98%	85%
	99%	95%
	100%	100%
	-	-
	105%	150%
	-	-
	110%	200%

Plan will fund incrementally at the rate 10% for every 1% of EBITDA or Net Revenue achieved over 100%, up to a total funding of 200% performance against AOP.

Allocation and Payout 
•For purposes of determining a Participant’s Incentive Comp, Plan Metrics will be weighted as follows:

•35% - EBITDA
•35% - Net Revenue
•10% Free Cash Flow 
•20% - Strategic Goals (functional or individual goals as applicable)

•The possible allocation and payout for each of the EBITDA, Net Revenue and Free Cash Flow Metrics will be based on the following schedule: 

						
	

% Achieved
	% Possible Allocation/Payout
	Below 93%	0%
	93%	40%
	94%	50%
	95%	60%
	96%	65%
	97%	75%
	98%	85%
	99%	95%
	100%	100%
	-	-
	105%	150%
	-	-
	110%	200%

Possible allocation and payout will increase 10% for every 1% of the applicable metric achieved over 100%, up to a total payout of 200% performance against AOP.

•The Strategic Goals Metric will be based on actual performance against established goals, such as revenue growth, cost control, environmental, social, and governance (“ESG”) metrics, case or dollar volume, specific tasks to be accomplished, etc.

◦Maximum of 3 goals are set by the functional Manager near the start of the Plan year, with the weighting of each Strategic Goal as determined by the Company in its sole discretion.

2

•Notwithstanding any term or condition contained in this Plan to the contrary,

◦The Committee may adjust the performance results for any Metric on account of extraordinary items or other events, as the Committee deems appropriate.

◦Any and all Incentive Comp payouts under this Plan will be determined by the Company in its sole discretion. The Company may adjust Incentive Comp payouts up or down (or reduce or eliminate any Participant’s Incentive Comp payout) on account of overall individual or functional team performance, regardless of the extent to which any Metric has been achieved (“Incentive Comp Adjustments”); provided, however, that any Incentive Comp Adjustments for Senior Vice Presidents and above must be approved by the Committee.  Company achievement of the EBITDA, Net Revenue or Free Cash Flow Metrics does not guarantee payment hereunder to any Participant.

◦In the event that EBITDA Funding is not achieved, thereby disallowing funding under the Plan, the CEO may recommend to the Committee, for its approval, that a pool equal to up to 10% of target Incentive Comp, be distributed to deserving employees, at the discretion of the CEO or, in the case of executive officers, the Committee, at the time Incentive Comp payments would otherwise be paid pursuant to this Plan. In no event shall this provision result in the payment of more than 100% of the target Incentive Comp to any single Participant.

Re-Allocation
Any Funded Amounts that are not paid to Participants due to a Participant’s failure to achieve Strategic Goals Metrics or due to Incentive Comp Adjustments (the “Un-Allocated Funds”) may be re-allocated by the Chief Executive Officer (“CEO”) (or others within the Company as delegated by the CEO) to other Participants who met or exceeded expectations during the Plan year; provided, however, that, no Participant may receive a payout of greater than 200% of such Participant’s target Incentive Comp opportunity under the Plan in any Plan year; and provided further that any re-allocation of Un-Allocated Funds to Senior Vice Presidents or above must be approved by the Committee.
 
Eligibility
For purposes of the Plan, “Participants” means employees who are designated as full time (30 hours or more), exempt (salaried), are in a position that has been designated as eligible for Incentive Comp under this Plan and do not participate in any other annual incentive compensation plan.

Employees are eligible to participate in the Plan if they meet the following criteria:

•Employees who commence employment or are promoted to an eligible position after January 1st and prior to October 1st of a Plan year will be eligible to participate in the Plan for that year.  Incentive Comp will be pro-rated based upon their service date.
•Employees who remain employed by the Company but are transferred out of an eligible position on or before June 30th are not eligible to receive an Incentive Comp payment under the Plan for the year of transfer. Employees who are transferred out of an eligible position after June 30th will continue to be eligible to receive an Incentive Comp payment for the year of transfer, based on the portion of the Plan year the employee was employed in an eligible position.

•Employees hired or promoted from a non-Incentive Comp eligible position to an Incentive Comp eligible position on or after October 1 of a Plan year will not be eligible for Incentive Comp for that year.

•An Employee must be an active employee of the Company and on the payroll as of the date on which the applicable Incentive Comp is paid. For the avoidance of doubt, Funded Amounts previously identified and accrued (in the Plan year financial statements) for Participants who terminate employment after December 31 of a Plan year, but before the payout date, can be pooled for re-allocation with the Unallocated Funds. 

•As consideration for being eligible for receipt of Incentive Comp in any Plan year, an employee must have executed and delivered to the Company a mutually agreed form of Confidentiality Agreement and any other agreement requested by the Company in connection with such employee’s employment.

Eligible Income
•Any sums paid to a Participant that are other than base salary payments will not be included in an Incentive Comp payment calculation.

3

•The Incentive Comp payment will be pro-rated for any approved unpaid leave of absence lasting 4 consecutive weeks or more, to the extent permitted by law.

•If during a Plan year, an employee becomes Incentive Comp eligible after January 1st and prior to October 1st, or changes from Incentive Comp eligible to non-Incentive Comp eligible after June 30th, actual salary for the period of employment, while in an Incentive Comp eligible position, paid during the Plan year will be the salary used for Incentive Comp calculation purposes. Thus, a person who has been hired at a base salary of $100,000 on September 30 and was paid $25,000 in salary (1/4 of base salary for working 1/4 of the year) during the Plan year and had a 20% Incentive Comp level, assuming 100% of each Metric is achieved, would be eligible for an Incentive Comp payment of $25,000 x 20% or $5,000 for the short year.

Payment of Incentive Comp under the Plan
Incentive Comp will be paid, if at all, after completion of the audit by the Company’s independent auditor of the annual financial statements for the applicable Plan year, which the Company anticipates, but cannot ensure, will be around the middle of March of the successive year.

Amendment and Termination of the Plan
The Company reserves the right to amend, modify, suspend or terminate this Plan in whole or in part at any time without advance notice to or prior approval of the Plan Participants. Eligibility for participation in the Plan in one year does not confer upon any participant eligibility to participate in any subsequent year.

Additional Information
•Incentive Comp payments will not be treated as compensation for purposes of any of the Company’s employee benefit plans or programs, unless otherwise provided in such employee benefit plan or program.

•Participation in the Plan is not a guarantee of any particular level of compensation or of
continued employment for any period. Nothing in the Plan interferes with the Company’s right to terminate any employee’s employment for any reason or no reason at any time.

•The Company will withhold from any payments under the Plan an amount to satisfy applicable federal, state and local tax withholding requirements. Payments under the Plan are intended to be exempt from or comply with Section 409A of the Internal Revenue Code. However, the Company shall not be liable for any taxes, penalties, interest or other expenses that may be incurred by a participant on account of non-compliance with Section 409A of the Code.

•The Plan will be construed, administered and governed in all respect in accordance with the laws of the State of Delaware, without reference to principles of conflicts of laws.

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00341-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00341-of-00352.parquet"}]]