Document:

layn-ex1024_1193.htm

 

Exhibit 10.24 

 

LAYNE CHRISTENSEN COMPANY
2006 EQUITY INCENTIVE PLAN

Performance Shares Agreement 

 

Date of Grant:_____________, 2017

 

Number of Performance Shares Granted:_______________

 

This Award Agreement dated ___________, 2017, is made by and between Layne Christensen Company, a Delaware corporation (the "Company"), and ___________________ ("Participant").

 

RECITALS:

A.Effective June 8, 2006, the Company's stockholders approved the Layne Christensen Company 2006 Equity Incentive Plan (the "Plan") pursuant to which the Company may, from time to time, grant Performance Shares to eligible Service Providers of the Company.

B.The Plan has been amended and restated several times and was most recently restated effective June 6, 2014.

C.Participant is a Service Provider of the Company or one of its Affiliates and the Company desires to encourage him/her to own Shares and to give him/her added incentive to advance the interests of the Company, and desires to grant Participant Performance Shares under the terms and conditions established by the Committee.

D.Any Performance Shares granted under this Award Agreement which become eligible to be settled may be settled in cash instead of through the issuance of Shares if, as determined by the Committee, there are not enough Shares available under the Plan's Maximum Share Limit for the Award to be settled in Shares.  

AGREEMENT:

In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

1.Incorporation of Plan.  All provisions of this Award Agreement and the rights of Participant hereunder are subject in all respects to the provisions of the Plan and the powers of the Committee therein provided.  Capitalized terms used in this Award Agreement but not defined shall have the meaning set forth in the Plan. 

	

	
2.Grant of Performance Shares.  Subject to the conditions and restrictions set forth in this Award Agreement and in the Plan, the Company hereby grants to Participant and credits to a separate account maintained on the books of the Company ("Account") that number of Performance Shares identified above opposite the heading "Number of Performance Shares Granted" (the "Performance Shares").  Each Performance Share shall represent Participant's conditional right to receive one Share (or, as described below, an amount of cash equal to the Fair Market Value of one Share) on the Performance Shares' "Settlement Date" if the applicable performance and time-vesting requirements set forth in this Award Agreement are satisfied.   Participant's interest in the 

DB02/0044919.0016/9902181.2 PA02

 

		
Account shall make him/her only a general, unsecured creditor of the Company.  Neither the Performance Shares nor Participant's rights thereto may be sold, transferred, gifted, bequeathed, pledged, assigned, or otherwise alienated or hypothecated, voluntarily or involuntarily.  The rights of Participant with respect to each Performance Share shall remain forfeitable at all times prior to the Settlement Date of such Performance Share. 

	

	
3.Settlement of Performance Shares.  

	
(i)
	
General.  Except as provided below, the Performance Shares shall be settled by delivering to Participant or his/her beneficiary, as applicable, a number of Shares equal to the Performance Shares then held by Participant which are vested in accordance with this Section 3. 

	
(ii)
	
Cash-Settled Performance Shares.  If, as determined by the Committee, there are not enough Shares available under the Plan's Maximum Share Limit for the Award to be settled in Shares, the Performance Shares may be settled through the payment of cash in which case each Performance Share represents Participant's conditional right to receive a cash payment on the Performance Share's Settlement Date if the applicable vesting requirements or other conditions set forth in this Award Agreement are satisfied.  The amount of any cash payment will be equal to the product of (a) the total number of Performance Shares vesting on the Settlement Date and being settled for cash and (b) the Fair Market Value of a Share on the Settlement Date.  

	
(iii)
	
Applicable Vesting Terms.  Except as specifically provided elsewhere under the Plan, the Performance Shares subject to this Award Agreement shall become vested and be settled on (or within the 60-day period following) _______________, 20201 (the "Settlement Date"), but only if, as of the Settlement Date (i) except in the case of the Participant's "Retirement" (as defined below), death, Disability or termination of employment following a Change in Control, Participant has, at all times from the Date of Grant, been a Service Provider to the Company, or one of its Affiliates, and (ii) the Performance Shares have not otherwise been cancelled.  If, as of the Settlement Date, the conditions set forth herein have been satisfied, the Performance Shares shall be eligible to vest and be settled on the Settlement Date as provided below. 

Performance Shares' Vesting Conditions ("Stock Price Goals")

	
 
	
•
	
33% of the Performance Shares shall vest on the Settlement Date if, during the three-year period commencing on the Date of Grant and ending on the Settlement Date, the trailing average closing price of the Company's common stock during any thirty (30) consecutive trading day period has been $__________ or greater; 

	
 
	
•
	
67% of the Performance Shares shall vest on the Settlement Date if, during the three-year period commencing on the Date of Grant and ending on the Settlement Date, the trailing average closing price of the Company's common stock during any thirty (30) consecutive trading day period has been $________ or greater; and 

	
 
	
•
	
100% of the Performance Shares shall vest on the Settlement Date if, during the three-year period commencing on the Date of Grant and ending on the Settlement Date, the trailing average closing price of the Company's common stock during any thirty (30) consecutive trading day period has been $______ or greater. 

	
	 

	
11 
	
 Third anniversary of Grant Date. 

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Except as provided below in Sections 4, 5 and 6, all Performance Shares are subject to cliff-vesting only and will vest, if at all and only in the above-described vesting percentages, on the Settlement Date. If, during the three-year period commencing on the Date of Grant and ending on the Settlement Date, the trailing average closing price of the Company's common stock during any thirty (30) consecutive trading day period has never exceeded $_______, then all Performance Shares shall be forfeited on the Settlement Date.   

	

	
4.Pro-Rata Vesting Upon Retirement or Termination by Company without Cause.  If, prior to the Settlement Date, Participant's position as a Service Provider to the Company or any of its Affiliates is terminated on account of the Participant's Retirement or on account of the Participant's employment with the Company being terminated without Cause, then none of the Performance Shares shall be forfeited upon such Retirement or termination without Cause, and, provided that one or more of the above Stock Price Goals is satisfied, on the Settlement Date, a number of Performance Shares equal to the Vesting Fraction (as defined below) multiplied by the number of Performance Shares that ultimately would have been settled on the Settlement Date if Participant had remained employed through the Settlement Date (rounded up to the nearest whole share) shall be settled and the remaining Performance Shares will be forfeited.  The "Vesting Fraction" shall be a fraction, the numerator of which shall be the number of days from the Date of Grant to the date of the Participant's Retirement or termination without Cause and the denominator of which shall be 1,095.  For purposes of this Agreement, "Retirement" means the Participant's termination from all employment after attaining the age of 60 and after having been employed by the Company or one of its Affiliates for five years or more.

5.Accelerated Settlement Upon Death or Disability.  If, prior to the Settlement Date, Participant's position as a Service Provider to the Company or any of its Affiliates is terminated on account of the Participant's death or Disability, then within 60 days of the Participant's death or Disability, a number of Performance Shares equal to the Vesting Fraction (as defined below) multiplied by 67% (Target) (rounded up to the nearest whole share) shall be settled and the remaining Performance Shares will be forfeited.  The "Vesting Fraction" shall be a fraction, the numerator of which shall be the number of days from the Date of Grant to the date of the Participant's death or Disability and the denominator of which shall be 1,095.  

6. Settlement Upon Termination by Company following a Change in Control.  If, prior to the Settlement Date, Participant's position as a Service Provider to the Company or any of its Affiliates is terminated by the Company without Cause within the two year period following a Change in Control, then none of the Performance Shares shall be forfeited upon such termination  and all of the Performance Shares that ultimately would have been settled on the Settlement Date if Participant had remained employed through the Settlement Date (rounded up to the nearest whole share) shall be settled (without any Vesting Fraction applied based on service during the performance period) and the remaining Performance Shares will be forfeited.  

7.Timing of Payment or Delivery of Shares.  Any payment of cash or delivery of Shares following the Settlement Date shall be made by the Company to Participant within the 60-day period following the Settlement Date.

8.Cancellation of Performance Shares.  Unless otherwise provided in Section 4, 5, or 6 above or in the Plan, if, prior to the Settlement Date, Participant's position as a Service Provider to the Company or any of its Affiliates is terminated for any other reason, including termination for Cause, Participant shall thereupon immediately forfeit any and all unsettled Performance Shares and Participant shall have no further rights under this Award Agreement.  For purposes of this Award 

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Agreement, the transfer of employment between the Company and any of its Affiliates (or between Affiliates) shall not constitute a termination of Participant's position as a Service Provider.    

	

	
9.Dividends and Voting.  Before any Performance Shares' Settlement Date, Participant shall be entitled to receive dividend equivalent payments for any dividends paid by the Company on Shares, whether payable in stock, in cash or in kind, or other distributions, declared as of a record date that occurs on or after the Date of Grant hereunder and prior to any cancellation of such Performance Shares, provided, however, that any such dividend equivalent payments shall be held in escrow by the Company and, be subject to the same rights, restrictions on transfer and vesting conditions applicable to the underlying Performance Shares.  Participant shall only be entitled to receive a payment of any accrued dividend equivalent payments on those Performance Shares that ultimately vest and are settled.  Any other dividend equivalent payments accrued will be  forfeited.  Participant will have no voting rights with respect to any of the Performance Shares.  Any payment relating to accrued dividend equivalent payments will be paid at the same time as the Shares are delivered pursuant to the settlement of the underlying Performance Shares.

10.Withholding with Stock.  Unless specifically denied by the Committee, Participant may elect to have applicable tax withholding liabilities, or any part thereof, satisfied by electing that the Company withhold from the settlement of Shares otherwise eligible to be issued pursuant to this Award Agreement, Shares having a value equal to applicable withholding liabilities, or portion thereof. The value of Shares to be withheld by the Company shall be based on the Fair Market Value of the Stock on the date that the amount of tax to be withheld is to be determined (the "Tax Date"), as determined by the Committee. Any such elections by Participant to have Shares withheld for this purpose will be subject to the following restrictions: 

(a)All elections must be made prior to the Tax Date; 

(b)All elections shall be irrevocable; and 

(c)If Participant is an officer or director of the Company within the meaning of Section 16 of the 1934 Act ("Section 16"), Participant must satisfy the requirements of such Section 16 and any applicable rules thereunder with respect to the use of Stock to satisfy such tax withholding obligation. 

11.Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Award Agreement.

12.Amendment.  Subject to Section 14, this Award Agreement may be amended only by a writing executed by the parties hereto which specifically states that it is amending this Award Agreement.

13.Governing Law.  The laws of the State of Delaware will govern the interpretation, validity and performance of this Award Agreement regardless of the law that might be applied under principles of conflicts of laws.

14.Section 409A Compliance.   It is the intent of the Company that all payments made under this Award Agreement will either be exempt from Section 409A of the Code and the Treasury regulations and guidance issued thereunder ("Section 409A") pursuant to the "short-term deferral" exemption or compliant with Section 409A.   Notwithstanding any provision of the Plan or this Award Agreement to the contrary, (i) this Award Agreement shall not be amended in any manner that would cause any amounts payable hereunder that are not subject to Section 409A to become subject thereto (unless they also are in compliance therewith), and the provisions of any purported amendment that may reasonably be expected to result in such non-compliance shall be of no force or effect with respect to this Award Agreement and (ii) the Company, to the extent it deems necessary 

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or advisable in its sole discretion, reserves the right, but shall not be required, to unilaterally amend or modify this Award Agreement to reflect the intention that all payments pursuant hereto qualify for exemption from or complies with Section 409A in a manner that as closely as practicable achieves the original intent of this Award Agreement and with the least reduction, if any, in overall benefit to a Participant to comply with Section 409A on a timely basis, which may be made on a retroactive basis, in accordance with regulations and other guidance issued under Section 409A.  Neither the Company nor the Board makes any representation that this Award Agreement shall be exempt from or comply with Section 409A and makes no undertaking to preclude Section 409A from applying to this Award Agreement.

 

15.Binding Effect.  Except as expressly stated herein to the contrary, this Award Agreement will be binding upon and inure to the benefit of the respective heirs, legal representatives, successors and assigns of the parties hereto.

This Award Agreement has been executed and delivered by the parties hereto.

The Company:Participant:

 

Layne Christensen Company

 

 

By:

      Michael J. Caliel, President and CEO_______________________

Address of Participant:

 

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DB02/0044919.0016/9902181.2 PA02layn-ex1025_1192.htm

 

Exhibit 10.25

 

Layne Christensen Company
Long-Term Incentive Plan 

 

 

 

 

Section I.Effective Date.  

 

This Layne Christensen Company Long-Term Incentive Plan (the "LTI Plan" or "Plan") is effective as of February 1, 2017.  This Plan supersedes and replaces the Layne Christensen Company Long-Term Incentive Compensation Plan in effect on February 1, 2015.

 

Section II.Purpose of Plan and plan overview.  

 

Layne Christensen Company ("Company") has created the LTI Plan to provide a general framework for the Company's Compensation Committee to use in determining annual equity incentive awards to selected employees ("Participants"). The LTI Plan is structured to provide incentive compensation consistent with the Company's pay philosophy.  Awards of equity under the LTI Plan relate to the Company's common stock ("Company Stock"), and are made pursuant to a separate, shareholder-approved Company equity plan (the "Company Equity Plan").  

 

During the first 90 days of each fiscal year (the "Award Year") the Company's Board of Directors (the "Board") will establish an annual equity pool ("Annual Equity Pool") for the LTI Plan. The Annual Equity Pool represents the total value of awards for the Award Year to be granted to LTI Plan participants.  The total value of each Annual Equity Pool may be based on and expressed as a percentage of the Company's market capitalization.  The Annual Equity Pool is allocated among eligible Participants based on each eligible Participant's long-term incentive target percentage ("LTI Percentage"), which is a percentage of a Participant's base salary in effect on LTI award determination date.  The product of each eligible Participant's LTI Percentage and base salary is that Participant's "LTI Target Opportunity." Each eligible Participant receives a grant from the Annual Equity Pool with an approximate value equal to that Participant's LTI Target Opportunity.  Such equity grant will be composed of a mix of one or more of the following equity awards, each in percentages as determined by the Committee: time-vested nonqualified stock option awards (a "Time-Vested Options"); time-vested restricted stock unit awards ("Time-Vested RSUs"); and performance-vested performance shares award ("Performance Shares"). The Committee may elect for the equity grant to not have any of one type of equity award (e.g., no Time-Vested Options) for a particular year but, collectively, the applicable Time-Vested Options, Time-Vested RSUs and Performance Shares award percentages shall total 100% of the Participant's LTI Target Opportunity and collectively, all such awards are referred to herein as the “LTI Awards.”  The term “Grant” or “Granting” as used herein shall refer to the Committee’s act of issuing or Granting the LTI Awards under the Company Equity Plan.

 

Section III.Administration.

 

The administration of this Plan shall be established and overseen by the Compensation Committee (the "Committee") of the Board.  Subject to the terms of the 

 

Company Equity Plan, the Committee, with the approval of the Board, shall have complete discretion to determine the terms of all LTI Awards, including the amount and vesting conditions thereof.  LTI Percentages shall initially be determined by the Chief Executive Officer ("CEO") of the Company, recommended by the CEO to the Committee, and, if recommended and approved by the Committee, approved by the Board.  The Board may accept or may elect to change any LTI Percentage for any eligible Participant.  The Committee shall have full power to delegate to one or more members of senior management of the Company, or a committee thereof, all or a part of the Committee's power and authority to calculate and track actual financial performance of one or more targeted goals and validation of other non-financial measures.  All audited financial results and any performance measurement related thereto will be presented to the Committee for review and approval and, if approved by the Committee, submitted for approval by the Board.  Subject to the approval of the Board, the Committee shall have the full power, in its sole discretion, to interpret, construe and administer this Plan and to adopt rules and regulations relating to this Plan.  Decisions made by the Board (or its designee) in good faith and in the exercise of its powers and duties hereunder shall be final and binding upon all parties concerned.  No member of the Board (or its designee) shall be liable to anyone for any action taken or decision made in good faith pursuant to the power or discretion vested in such member or the Board or any designee under this Plan.  

 

SECTION IV.Eligibility.

 

Eligibility for participation in this Plan is limited solely to those persons selected by the Committee and recommended for approval by the Board.  Eligibility shall initially be limited to the Company's executives and division presidents.  Selection as a Participant does not guarantee receipt of any LTI Award and participation for an Award Year does not entitle such person to be a Participant for any future Award Year.  Generally, the Board shall select and designate the Participants who will be eligible for an LTI Award for a specific Award Year no later than the ninetieth (90th) day of such Award Year; provided, however, the Board may, in its sole discretion be permitted to add new Participants at any time during such Award Year. 

 

SECTION V.Determination of Participant's target Lti Opportunity.

 

Subject to and in accordance with the conditions set forth in this Section V, for any Award Year the Board allocates the Annual Equity Pool by Granting any combination of Options, Restricted Stock and Performance Shares to selected Participants.  The manner in which each Award Year's Annual Equity Pool is allocated among Participants, and the  number of shares underlying the LTI Awards, shall be based upon each Participant's Target LTI Opportunity calculated as follows:

 

(A)First, each Participant's LTI Percentage will be determined based on the Participant's Title and position level in the Company and as determined by the Committee or the CEO; and

 

(B) Second, each Participant's LTI Target Opportunity will be determined by multiplying the Participant's LTI Percentage by the Participant's then current base salary. 

 

SECTION VI.Form and Timing of LTI awardS.

Each Participant's LTI Target Opportunity shall be converted into LTI Awards in accordance with this Section VI.  In all cases, a Participant must be employed by the Company or one of its subsidiaries on the date the LTI Awards for that Award Year are Granted (the "Grant Date") to be eligible to receive the LTI Awards.   

 

	
 
	
(A)
	
Shares Subject to LTI Awards.  For each Award Year:

 

(i)A Committee-determined percentage, if any, of each Participant's LTI Target Opportunity may be granted in the form of a Time-Vested Option.   To the extent a portion of a Participant's LTI Target Opportunity is granted in Time-Vested Options, the number of Shares covered by the Time-Vested Option shall be the quotient of (A) the Committee-determined percentage of the Participant's LTI Target Opportunity allocated for a Time-Vested Option Award, divided by (B) the Grant Date per share fair value (determined using a lattice valuation model selected by the Board or Committee) of a 10-year stock option to purchase a share of Company Stock with an exercise price equal to the closing price of the Company Stock on the date of grant of the LTI Awards.  The option exercise price for the Time-Vested Option shall, in all cases, be the "Fair Market Value" (as determined under the Company Equity Plan) of a share of Company Stock on the Time-Vested Option's Grant Date; 

 

(ii)A Committee-determined percentage, if any, of each Participant's LTI Target Opportunity shall be granted in the form of Time-Vested RSUs.  To the extent a portion of a Participant's LTI Target Opportunity is granted in Time-Vested RSUs, the number of Shares subject to the Time-Vested RSU award shall be the quotient of (A) the Committee-determined percentage of the Participants' LTI Target Opportunity allocated for a Time-Vested RSU Award, divided by (B) the Grant Date "Fair Market Value" (as determined under the Company Equity Plan) of a share of Company Stock on the Time-Vested RSU's Grant Date; and 

 

(iii)A Committee-determined percentage, if any, of each Participant's LTI Target Opportunity shall be granted in the form of Performance Shares.  To the extent a portion of a Participant's LTI Target Opportunity is granted in Performance Shares, the number of Performance Shares covered by the Performance Shares award shall be the quotient of (A) the Committee-determined percentage of the Participant's LTI Target Opportunity allocated for a Time-Vested Performance Share Award, divided by (B) the Grant Date per share value of a Performance Share award (as determined by the Board or Committee) as of the Performance Shares' Grant Date. 

 

All fractional Shares subject to any LTI Award may be rounded up or down as determined by the Board. 

 

(B)General Vesting/Payment Terms.  The LTI Awards shall become exercisable, vest and be settled as set forth below in this Section VI (B).  All LTI Awards will also be subject to the terms and conditions of the Company Equity Plan and the respective LTI Award agreement.  

 

(i)Time-Vested Option. Provided the Participant has remained continuously employed by the Company through the applicable vesting date, any Time-Vested Option 

award shall vest (i.e., become exercisable) in ratable 1/3 increments on the first, second and third anniversaries of the option's Grant Date. 

 

(ii)Time-Vested RSUs.  Provided the Participant has remained continuously employed by the Company through the applicable vesting date, any Time-Vested RSU's shall vest and be settled upon the earliest to occur of (a) the scheduled vesting dates determined by the Committee, or (b) subject to Section X(C) and as provided in the LTI Award Agreement, upon the Participant's death, disability, involuntary termination of employment, involuntary termination of employment following a Change in Control, or the Participant's termination from all employment with the Company after attaining the age of 60 and after having been employed by the Company or one of its affiliates for five years or more (a "Retirement").  Any Time-Vested RSUs shall remain nontransferable and subject to forfeiture restrictions until such vesting; provided, however, if upon a Participant's separation from service all or a portion of the Time-Vested RSUs would otherwise be forfeited, the Board may, in its sole discretion, agree to vest all or a portion of such Time-Vested RSUs if in its judgment the performance of Participant has warranted such vesting and/or such vesting is in the best interests of the Company.  Any such accelerated vesting and issuance of shares of Company Stock shall be subject to potential delay in accordance with Section X(C).   

 

(iii)Performance Shares.   Provided the Participant has remained continuously employed by the Company through the end of applicable three (3) year performance period upon which the payment of the Performance Shares will be based, any Performance Shares will vest and be payable based on the level of achievement of one or more performance goals eligible to be used for equity awards granted under a Company Equity Plan (the "Performance Goal") for such performance period, as set forth in the Performance Shares' award agreement.  As provided in the Performance Share's award agreement, exceptions to remaining continuously employed until the end of the applicable three (3) year performance period may be available on account of the Participant's Retirement, death, disability, involuntary termination of employment, or involuntary termination of employment following a Change in Control. 

 

(C)Other Equity Grants.Nothing in this Plan shall prevent or restrict the Board from making additional equity award grants to the extent permissible under the Company Equity Plan. 

 

SECTION VII.RIGHTS TO LTI BONUSES ARE UNSECURED.

 

A Participant's potential right to an LTI Award does not constitute an equity or other ownership interest in the Company.  The Company shall not be required to and shall not segregate any funds representing any LTI Award and nothing in this Plan shall be construed as providing for such segregation.  Nothing in this Plan and no action taken pursuant to its terms, shall create or be construed to create a trust or escrow account of any kind, or a fiduciary relationship between the Company, on the one hand, and a Participant, or any other person, on the other hand.  Participant has no preferred claim on, or any beneficial ownership in, any assets of the Company.

 

SECTION VIII.Amendment and Termination of Plan; Term of Plan.

 

The Board may, at any time or times, amend this Plan, pursuant to written resolution adopted by the Board.  The Board may, with respect to any Award Year, terminate this Plan by written resolution adopted by the Board.  In the event this Plan is terminated, no further LTI Awards will be Granted under this Plan except that all LTI Awards Granted before the termination of this Plan shall continue in accordance with this Plan until such LTI Award either becomes exercised, vested and payable, or is forfeited. 

 

SECTION IX.Non-Assignability.  

 

A Participant's rights pursuant to this Plan may not be transferred, alienated, assigned, pledged, hypothecated or otherwise disposed of other than by will or by the laws of descent and distribution.  If a Participant attempts to alienate, assign, pledge, hypothecate, or otherwise dispose of the Participant's rights to any LTI Award or any other right pursuant to this Plan, or in the event of any levy, attachment, execution, or similar process upon the right or interest conferred by this Plan, the Board may terminate all of the Participant's rights under this Plan and all LTI Awards granted to such Participant, and all of such Participant's rights under this Plan will thereupon become null and void.

 

SECTION X.Miscellaneous.

 

(A)The Company's obligation to make any payment, or deliver any shares of Company Stock, pursuant to this Plan shall be subject to the Participant's satisfaction of all applicable federal, state and local income and other tax withholding requirements. 

 

(B)Nothing in this Plan shall be construed to give any person any benefit, right or interest except as expressly provided herein, and nothing in this Plan shall be construed as establishing any right of continued employment by the Company.  

 

(C)Notwithstanding any provision in this Plan or any LTI Award to the contrary, this Plan and all LTI Awards shall be interpreted and administered in accordance with Section 409A of the Internal Revenue Code and regulations and other guidance issued thereunder.  For purposes of determining whether any payment made pursuant to this Plan or an LTI Award results in a "deferral of compensation" within the meaning of Treasury Regulation §1.409A-1(b), the Company shall maximize the exemptions described in such section, as applicable.  Any reference to a “termination of employment” or similar term or phrase shall be interpreted as a “separation from service” within the meaning of Section 409A and the regulations issued thereunder. If any deferred compensation payment is payable due to a "specified employee" under Section 409A on account of a separation from service for any reason other than death, then such payment shall be delayed for a period of six months and paid immediately following the expiration of such six month period.  A Participant or beneficiary, as applicable, shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on the Participant or beneficiary in connection with any payments to such Participant or beneficiary pursuant to this Plan, including but not limited to any taxes, interest and penalties under Section 409A, and neither the Company nor any of its subsidiaries shall have any obligation to indemnify or otherwise hold a Participant or beneficiary harmless from any and all of such taxes and penalties.   

 

(D)The provisions of this Plan, except where otherwise required by law, will be governed, construed, enforced, and administered in accordance with the laws of the State of Delaware.

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