EX-10.4 3 exhibit1042024performances.htm EX-10.4
Exhibit 10.4
L 3HAR R IS TECHN O LO G I ES, IN C. PERFOR M A N CE U N I T AW A RD AGRE E M ENT TER M S A N D C ONDITIONS
(A s of Fe b r u a r y 13, 2024)
1. P e r f orm a n c e Unit A w a rd – T e rms a nd Condi t ion s. P ursu a nt to the w r i t ten not i c e or letter of a w a rd (w h i c h may be in e le c tronic fo r m) (the “A w a r d No t ice”) f r om L3 Ha r ris T ec hnolog i e s, I n c. (the “Co mp a ny”) to the e mp l oy e e sp ec ifi e d in t he A wa rd Noti c e (the “E m p loye e”), the Company h a s gr a nted to the Employ ee, on the te r ms a nd c ondi t ions s e t fo r th in the A wa rd Notice a nd h e r e in (th e s e “T e r m s a n d Con d itio ns” a nd c ol l ec t i v e ly with the A wa rd Notice a nd the S tat e ment of P e r f orm a n c e G o a ls (a s d e fin e d b e low) r e la t e d the re t o, the “Ag r e e m e n t”), a nd und e r a nd o t h e r w ise subj ec t to the provisions of the Comp a ny’s 2015 Equity I n c e nt i ve P lan (a s may be a me n d e d f r om t i me to t i me, the “Pla n”), a P e r f or m a n c e Unit A wa rd (t h e “A wa r d”) of su c h number of p e r f orm a n c e uni t s sp ec ifi e d in the A w a rd Notice a s b e ing subj ec t t o the A wa rd (s u c h uni t s, a s may be a djus t e d in acc or d a n c e with S ec t i ons 1(c), 1(d), a nd 1(e) of t h e se T e rms a nd Condi t i o ns, the “P e r fo r m a n c e Un i ts”). At a ll t i mes, e a c h P e r f orm a n c e Unit sh a ll be e qu a l in v a lue to one s h a re o f c om m on stock,
$1.00 p a r v a lue p e r sh a re (the “Co mm on S to c k”), of the Comp a ny (a “Sh a r e”).
(a) A cce p t a n c e of A w a rd; P e r f orm a n c e P e rio d. The A wa rd must be ac c e pted by the Employ e e using the ac c e ptan c e method sp e c ifi e d by the Comp a ny (w hich may be in e le c tronic f o rm) with i n ninety (90) d a ys following the gr a nt d a te of the A w ar d (o r, if the Employ e e is on a Company-a ppro ve d le a ve of a b s e n c e f r om the Company a t a ny t i m e during su c h 9 0-d a y p e riod, then with i n nine t y (90) d a ys following the Employ ee’s r e turn to a c t i ve s e rvi c e with the Company f r om su c h le a ve of a bs e n c e), a nd if not so acce pted, the A w a rd a nd a ll P e r f orm a n c e Units subj ec t to the A w a rd sh a ll be a uto m a t i ca l l y fo r f e i t e d. F or purp o s e s of the A g r e e m e nt, the “P e r fo r m a n c e P er io d” i s the p e riod b e ginn i ng on c om m e n ce ment of the f i s ca l y ea r during whi c h the A w a rd is g r a nted a nd e nding on e xpir a t i on o f the fis ca l y e a r that is t w o (2) fis ca l y ea rs a f t e r the fis ca l y e a r during wh i c h the A w a rd is gr a nted (that is, a p e riod of thr e e (3) fis ca l y e a rs), unless a dif f e r e nt p e riod is s e t f orth a nd d e signat e d a s t h e P e r f o rm a n c e P e riod in t he A w a rd Notic e. The Bo a rd Com m i t tee may, i n acc or d a n c e with the P lan a nd to the e xtent p e rmit t e d by S ec t i on 409A of the Code (if a ppl i c a ble), a c ce le r a te the e xpi r a t i on of the P e r f orm a n c e P e riod a s to some or a ll of the P e r f or m a n c e Units a t any ti m e.
(b) P a yout of A wa rd. P rovid e d the A wa rd h a s not previously b ee n fo r f e i t e d, a s soon a s a dm i nis t r a t i v e ly pr ac t i ca b l e following the e xpir a t i on of the P e r f o rm a n c e Pe riod, but in no e v e nt lat e r than the 15 t h d a y of the th i rd mon t h fol l owing the e xpir a t i on of t he P e r f orm a n c e P e rio d, the Company sh a ll is s ue t o the Employ e e in a sing l e p a yment the number of S h a r e s und e rlying the P e r f orm a n c e Units to w hich the Employ e e is e nt i t l e d pursu a nt h e r e to, subj ec t to a ppl i ca ble withho l dings a nd s a t i sf ac t i on the re of (in c lud i ng retaining S h a r e s othe r wise is s u a bl e) a s provid e d in S ec t i on 13.2 of the P la n. U po n p a y ou t o f th e Aw a r d, t he Com p a n y s h a l l a t it s opt i o n c a us e t h e S h a r e s a s t o w h i c h t he E mploy e e i s e ntitl e d p u r s u a n t h e r e t o: (i) t o be re l ea s e d w ith o u t r e st r i c tio n on t ra n s f e r b y d e liv e r y t o th e c ustod y o f th e E mplo y e e o f a st o c k c e r ti f i ca te i n th e n a me of t he E m ploy e e o r hi s or h e r d e sign e e o r (i i) t o be c re di t e d w ithou t r e st r i c tio n o n t ra n s f e r to a book-e nt r y a c c oun t f or th e b e n e f i t o f t he E mp l o y e e or hi s or h e r d e sig n e e m a int a i n e d b y t h e Com p a ny’s st o c k t r a n s f e r a g e n t o r it s d e sig n ee.

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(c) S a t i sf ac t i on of P e r f or m a n c e Obj e c t i v e s. Ex ce pt a s othe r wise pro v i d e d h e r e in, t he p a yout of the A wa rd s h a ll be c ont i ng e nt upon the a t t a in m e nt d uring the P e r f o rm a n c e P e riod of the p e r f orm a n c e obje c t i v e s s e t fo r th in the S tat e ment of P e r f or m a n c e G o a ls (how e v e r d e signat e d) d e l i v e r e d o r made a v a i l a ble to the E m ployee a t the t i me of the A wa rd (the “S t a t e m e n t of P e r fo r m a n c e Goa l s”). S ubje c t to the a ppl ic a t i on of S ec t i on 4, the p a y o ut of the A w a rd s h a ll be d e t e rmin e d upon the e xpir a t i on of the Pe r f or m a n c e P e riod in a c c ord a n c e with the S tat e ment of P e r f orm a n c e G o a ls. The fin a l d e te r m i n a t i on of the p a yout of the A w a rd wi l l be a uthori z e d by the Bo a rd, the B o a rd Com m i t te e, or i t s d e signe e. Pe r f orm a n c e Units will be fo r f e i t e d (i) i f they a r e not ea rn e d a t the e nd of t he P e r f orm a n c e P e riod o r (ii) e x ce pt a s othe r wi s e provid e d h e r e in, if the Employ e e c ea s e s to be e mp l oy e d by the Company a t a ny t i me p rior to the e xpi r a t i on of t h e P e r f orm a n c e P e riod.
(d) Righ t s Du r ing P e r f orm a n c e P e rio d; Dividend Equiv a lent s. Du r ing the P e r f orm a n c e P e riod, the Employ e e sh a ll not h a ve a ny rights a s a sh a r e holder with r e sp ec t to the S h a r e s und e rlying the Pe r f orm a n c e Units. During the P e r f o rm a n c e P e riod, if the Company p a ys div i d e nds or mak e s other dis t ributions on the C o m m on S tock, the Empl o y e e sh a ll be e nt i t l e d to r e ce i v e f r om the Company a t the t i me of p a yout in r e sp e c t of the A w a rd di v idend e quival e nts f o r su c h div i d e nds or other dis t ribution s, e i t h e r in ca s h, in the ca se of a c a sh div i d e nd or ca sh dis t ribution, or other pr o p e rty, in the ca s e of a n o n-ca sh div i d e nd or no n-ca sh dis t ribution, a s a ppl i ca ble, in r e sp e c t of the number of S h a r e s u nd e rlying the P e r f orm a n c e Units to whi c h the Employ e e is e nt i t l e d pursu a nt h e r e t o, in eac h ca s e, subj e c t to a ppl ic a ble withho l dings a nd s a t i sf ac t i on the re of (i n c lud i ng r e taining S h a r e s othe r wise is s u a ble) a s prov i d e d in S ec t i on 13.2 of the P lan. No su c h div i d e nd e quiva l e nts will be p a id in r e s p ec t o f P e r fo r man c e Units that a re fo r f e i t e d o r c a n c e l l e d. N o in t e r e st sh a ll be p a id o n a ny su c h div i d e nd e qu i v a lent s. I f the number of the Company’s outs ta nding S h a r e s is c h a ng e d a s a r e sult of a stock div i d e nd, stock spl i t or t h e l i k e, without a ddi t ional c onsid e r a t i on to the Company, the P e r fo r m a n c e Un i ts subj ec t to the A w a rd sh a ll be a djus t e d to c o rr e spond to the c h a nge in the Company’s outs t a nd i ng S h a r e s. Upon the e xpir a t i on of the P e r f orm a n c e P e riod a nd p a yout of the A wa rd, the Employ e e may e x e r c i s e vot i ng rights and sh a ll be e nt i t l e d to r ec eive dividends a n d other dis t ributions with r e sp ec t t o the numb e r of Sha re s to whi c h the E mp l oy e e is entit l e d pu r su a nt h e r e to.
(e) Adjustment B a s e d on Ch a nge in Duties or T ra ns f e r of Employmen t. T h e number of P e r f orm a n c e Units subj ec t t o the A w a r d is b a s e d on t h e a ssu m p t ion t h a t t he Employ e e will c ont i nue to be a ss i g n e d to p e r f o rm subs t a nt ia l l y the s a me dut i e s thro u ghout the P e r f orm a n c e P e riod, a nd s u c h number of P e r fo r ma n c e Units may be r e d u ce d o r i n c r e a s e d by the Bo a rd or t h e Bo a rd Com m i t tee or i t s d e signee without fo r mal a mendm e nt of the Ag r e e ment to r e fl ec t a c h a n g e in a ss i gn e d dut i e s during the P e r f orm a n c e Pe riod. I n a ddi t ion, i f the Employ e e tr a n s f e r s e mp l oyment f r om one b usiness unit of the C ompany or a n A f f i l iate to a nother busin e ss unit or A f filiate during the Pe r f o rm a n c e Pe riod, the Employ e e sh a ll be e l i gib l e to r e ce ive t h e number o f P e r f orm a n c e Units d e t e r m i n e d by the Bo a rd or t h e Bo a rd Com m i t tee or i t s d e signee b a s e d upon su c h f a c tors a s t he Bo a rd or the Bo a rd Com m i t tee or i t s d e signe e, a s the ca se may b e, in i t s s o le disc re t i on may d ee m a p p rop r iat e.
2. P rohibition Ag a inst T ra nsf e r. Until the e xpir a t i o n of the P e r f o rm a n c e P e r iod a nd p a yout of the A w a rd, the A wa rd, the Pe r f orm a n c e Units subj ec t to the A w a rd, a ny in t e r e st in the S h a r e s r e l a ted the r e to, a n d the rights gr a nted un d e r these T e rms a nd Condi t ions a nd the Ag r ee ment a re not t r a nsf e r a ble e x ce pt by will or by the l a ws of d e s c e nt a nd dis t ribution in the e v e nt of the Employ ee’s d e a th. Wit h out l i m i t ing t he g e n e r a l i ty of the fo re going, e x c e p t as a f o r e s a id, un t il the

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e xpir a t i on of the P e r f orm a n c e P e riod a nd p a yout of the A wa rd, the A wa rd, the P e r f orm a n c e Units subj ec t to the A wa rd, a n y in t e r e st in the S h a r e s relat e d the re to, a nd the ri g hts gr a nted und e r these T e rms a nd Condi t ions a nd the Ag r ee ment may not be sold, e x c h a n g e d, a ss i gn e d, t r a nsf e r re d, pledg e d, hypothe c a ted, e n c umbe re d o r othe r wise dispos e d of, sh a ll not be a ss i gn a ble by op e r a t i on of la w, a nd s h a ll not be subj ec t to e x ec ut i on, a t ta c hment, c h a rg e, a l i e n a t i on or si m i l a r p ro c e ss. Any a t t e mpt to e f fe c t any of the fo re going s h a ll be null a nd void and w i t hout e f fe c t.
3. F or f e i t ure for T e rmin a t i o n of E mp l oyment; Ex ce p t i on s.
(a) Ex ce pt in the e v e nt the E mp l oy e e c e a s e s to be a n e mp l oy e e of the Company a s s e t fo r th in S ec t i on 3(b) (due to d ea t h, Dis a bi l i t y (a s d e fin e d b e low) or Oth e r Dis a bi l i t y (a s d e fin e d b e lo w)) or a s s e t fo r th in S ec t i on 4 (due to ce rt a in c i r c u ms t a n ce s in c onn ec t i on with a Ch a nge in Control of the Company that o cc urs following the gr a nt d a te of the A w a rd), it sh a ll be a c ondi t ion to t h e v e st i ng of P e r fo r man c e Units a nd t h e p a y m e nt o f S h a r e s following the e xpir a t i on of the P e r f o r man c e P e riod that the Employ e e sh a ll h a ve r e m a ined c ont i nuously in the e mp l oy of the Company through the e xpir a t i on of the fi r st fis ca l y e a r of t h e P e r f orm a n c e Pe riod (the “M i n i m u m V e sti n g P er io d”), a nd if the Min i mum V e st i ng P e riod is n ot s a t i sfi e d, the A wa rd a nd a ny Pe r f orm a n c e U n i t s or right to p a yment of S h a r e s sh a ll b e i m medi a tely a nd a uto m a t ic a l l y fo r f e i t e d upon the Employ ee’s te r m i n a t i on of e mp l oyment with the Compa n y. Ex ce pt in the e v e nt the Employ e e cea s e s to be a n e mp l oy e e of the C o mpany a s s e t fo r th in S ec t i on 3(b) (due to d ea th, Dis a bi l i t y or O t h e r Dis a bi l i t y) or a s s e t fo r th in S ec t i on 4 (due to ce rt a in c ir c ums t a n c e s in c onn ec t ion with a Ch a nge in C o ntrol of the Company that o cc urs following the gr a nt date of the A w a rd) or a s othe r wise pro v ided in t he A wa rd N ot i ce, if the Employ e e c e a s e s to be a n e mp l oy e e of the C ompany following s a t i sf a c t i on of the Min i mum V e st i ng P e riod but pri o r to t he e xpir a t i on of the P e r f orm a n c e Pe riod:
(i) for a ny r ea son oth e r than those d e s c rib e d in Se c t i on 3(a)(i i) (due to a Qualifying Early Retirement (as defined below) or an involuntary termination by the Company other than for Cause (as defined below)), Section 3(a)(iii) (due to a Qualifying Full Retirement (as defined below)), Se c t i on 3(b) or S ec t i on 4, a ll P e r f orm a n c e Units sub j ec t to the A wa rd sh a ll be i m medi a tely a nd a uto m a t i ca l l y fo r f e i t e d u pon su c h te r m i n a t i on of e mp l oyment;
(ii) due to (A) a Qualifying Early Retirement (as defined below) or (B) invo l unta r y te r m i n a t i on of e mp l oyment of t h e Employ e e by the Comp a ny other than for C a u s e (a s d e fi n e d b e lo w), but excluding an involuntary termination that would be deemed to fall within the definition of a Qualifying Full Retirement, the Employ e e sh a ll be e l i gib l e to r e c e ive a pr o-r a ta p ortion of the p a yout in r e sp ec t of the P e r f orm a n c e Units whi c h would h a ve b ee n made to t he Em p loyee und e r the A wa r d a t the e nd of the P e r f or m a n c e Pe riod d e te r m i n e d i n acc o rd a n c e with the p r ovis i ons of S ec t i on 1(c) h e r e of, a nd the r e m a in i ng p a yout a nd P e r f or m a n c e Units subj ec t to the A wa r d sh a ll be i m medi a tely a nd a uto m a t i ca l l y fo r f e i t e d. S u c h p ro-r a ta p o rtion sh a ll be m ea su r e d by a f r a c t i on, of whi c h the nume ra tor is the number of d a ys of the P e r f o r man c e P e riod during whi c h the Employ ee’s e mp l oyment c ont i nu e d, a nd the d e nom i n a tor is t he number o f d a ys of t h e P e r f o rm a n c e P e riod. The pr o-r a ta portion of t he p a yout in r e sp ec t of t he P e r f orm a n c e Units requir e d to be p a id und e r th i s S ec t i on 3(a)(ii) sh a ll be p a id t o the E mp l oy e e a t t he t i me sp ec ifi e d in S ec t i on 1(b); or

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(iii) due to a Qualifying Full Retirement (as defined below), the Employee shall be entitled to receive a payout in respect of the Performance Units subject to the Award that would h a ve b ee n made to t he Em p loyee und e r the A wa r d a t the e nd of the P e r f or m a n c e Pe riod d e te r m i n e d i n acc o rd a n c e with the p r ovis i ons of S ec t i on 1(c) h e r e of as though the Employee had continued employment through the end of the Performance Period and a t t he t i me sp ec ifi e d in S ec t i on 1(b).
(b) Ex ce pt in the e v e nt the E mp l oy e e c e a s e s to be a n e mp l oy e e of the Company a s set fo r th in S ec t i on 4 h e r e in (due to ce rt a in c ir c ums t a n ce s in c onn ec t i on with a Ch a nge i n Control of the Company that o cc u rs following the gr a nt d a te of the A w a r d), if the Employ e e c ea s e s to be a n e mp l oy e e of the Company p r ior to the e xpir a t i on of the Pe r f o rm a n c e P e riod (ir r e sp ec t i v e of the Min i mum V e st i n g P e riod) due to the Employ ee’s (i) d e a th, (ii) Dis a bi l i t y or (iii) Oth e r Dis a bi l i t y, in e ac h ca s e, prior to a Ch a nge in C ontrol co ve r e d in S ec t i on 4 h e r e in, the E mp l oy e e’s h e irs or b e n e fi c i a ri e s or the Emp l oy ee, a s a ppl i ca b le, sh a ll be fully v e sted i n, a nd e nt i t l e d to r e ce ive a p a yout in r e sp ec t of, a p ro-r a ta p o rtion of the number of P e r f orm a n c e Un i ts subj ec t to the A wa rd a t the ta r g e t lev e l of p e r f orm a n ce, a s s e t fo r t h in the A wa rd Notice a nd/or S tat e ment of P e r f orm a n c e Go a ls (su c h numbe r, the “Ta r g e t Nu m b e r” a nd su c h ta r g e t lev e l, the “Ta r g e t P er f o r m a n c e L e v e l”), a nd the r e maining p a yout a nd Pe r f orm a n c e Units subj ec t to the A w a rd sh a ll be i m medi a tely a nd a uto m a t i ca l l y fo r f e i t e d. S u c h pr o-r a ta portion sh a ll be me a sur e d by a f rac t i on, of whi c h the nume ra tor is the number of d a ys of the P e r f orm a n c e P e riod during whi c h the Employ ee’s e mp l oyment c ont i nu e d, a nd the d e nom i n a tor is the num b e r of d a ys of the origin a l P e r f orm a n c e P e riod. The P e r f orm a n c e P e riod sh a ll i m medi a tely e xpire upon the E mp l oy ee’s d ea th, Dis a bi l i t y or Oth e r Dis a bi l i t y, a s a ppl i ca b l e, with r e sp ec t to su c h p ro-r a ta portion of the T a rg e t Numb e r of P e r fo r man c e Units v e sted p u rsu a nt to t h e provisions of th i s S ec t i on 3(b), a nd the p a yout in r e sp e c t of su c h P e r f or m a n c e Units sh a ll be made a s so o n a s a dm i nis t r a t i v e ly pr a c t i ca b l e following the i m medi a te e xpir a t i on of the P e r f orm a n c e P e riod, but i n no e v e nt lat e r than si x ty (60) d a ys f ol l owing su c h i m medi a te e xpir a t i on of the P e r fo r ma n c e Pe riod.
(c) F or p u rpo s e s of t h e Ag re e men t:
(i) “Caus e” sh a ll h a v e the me a ning assigned to su c h te r m i n the P l a n. Any ac t, or f a i l u r e to ac t, b a s e d upon a uthority giv e n pursu a nt to a r e solu t ion duly a dopted by the Bo a r d or b a s e d on the a dvice o f c ouns e l for t h e Company sh a ll be c on c lus i v e ly pr e sumed to be don e, or om i t t e d to be don e, by the Employ e e in good f a i t h a nd in the b e st i n te re sts of the Company. A f t e r a Ch a nge in Control o f t h e Company that o cc urs f ol l owing the gr a nt d a te of the A w a rd, (A) in the c a se of a n e mp l oy e e who is a ppoin t e d or e le c ted by the Bo a rd a s a n o f f ic e r of the Company (a n “O f f ic e r”), C a use sh a ll not e x ist unless a nd unt i l t he Company h a s d e l i v e r e d to the Employ e e a c opy o f a r e solu t ion duly a dop t e d by thr e e-qu a r t e rs (3/4) of the e nt i re Bo a rd a t a me e t i ng of the Bo a rd ca l l e d a nd h e ld for su c h purp o se (a ft e r th i rty (3 0) d a ys’ not i c e to t h e Employ e e a nd a n oppo r tun i ty for the Employ ee, toget h e r with c ouns e l, to be h ea rd b e fo r e the Bo a rd), finding that in t h e good f a i t h opin i on of t he Bo a rd a n e v e nt s e t fo r th in the d e fini t ion of “C a us e” in the P lan h a s o cc u r r e d a nd s p ec ifyi n g the p a rti c ula r s t h e r e o f in d e tai l; a nd (B) the Company must not i fy t h e Employ e e of a ny e v e nt c onsti t ut i ng C a use with i n ninety (90) d a ys following the Company’s knowl e dge of i t s e xis t e n c e or su c h e v e nt sh a ll not c onsti t ute C a use und e r the Ag ree m e nt.

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(i i) “Disa b i l ity” me a ns a to t a l a nd p e rm a n e nt disabi l i t y during whi c h the Employ e e b ec omes e nt i t l e d to a dis a bi l i t y b e n e fit und e r Title II o f the Fe d e r a l S o c ial Se c urity A c t, a s a men d e d f r om t i me to t i me.
(ii i) “Oth e r Disa b i l ity” me a ns a to t a l a nd p e rm a n e nt disabili t y during whi c h the Employ e e is e n t i t l e d to r e ce ive disabili t y b e n e fits und e r t h e Company’s a ppl i ca b l e lon g- te r m disabili t y p lan or w o uld h a ve b ee n e nt i t l e d to r e ce i v e disabili t y b e n e fits und e r su c h lon g-te r m disabili t y plan h a d the E mp l oy e e p a rti c ipa t e d in su c h pl a n, whi c h to t a l a n d p e rm a n e nt di s a bi l i t y do e s not othe r wise c ome with i n the m ea ning of Dis a bi l i t y.
(iv) “Q u al i fying Early R e ti re m e nt” me a ns retirement after age sixty (60) with five (5) or more years of full-time service with the Company but prior to being eligible for a Qualifying Full Retirement; prov i d e d, that in order for any such retirement to be a Qualifying Early Retirement, the Emp l oy e e (A) h a s given w r i t ten no t ic e, in fo r m r e a so n a bly s a t i sf ac tory to the Company, to the Employ ee’s sup e rviso r, with a c opy to the Vi c e P r e sident, Chief Hum a n R e sour c e s O f fi ce r of the Company (o r, if the Employ e e is t h e Vi c e P r e si d e nt, Chief H uman R e sour c e s O f f i c e r of the Company, to the Chief Ex ec ut i ve O f fi c e r of the Company) that (1) sp ec ifi e s the Employ ee’s in t e nt to r e t i re f r om the Comp a ny a nd the p a rti c ular in t e nd e d d a te of such r e t i r e ment, whi c h must be a t l ea st s ix (6) mon t h s a ft e r the d a t e su c h w r i t t e n not i c e is given, a nd (2) h a s not b ee n pre ce d e d by not i c e f r om the Company to the Employ e e of the ac tual or i m p e nd i ng te r m i n a t i on of e mp l o y ment of the Employ e e by the Company; a nd (B) h a s r e main e d e mp l oy e d by the Company un ti l the ea rli e r of (x) the p a rti c ular in t e nd e d d a te of such r e t i r e ment sp e c ifi e d i n su c h not i c e (or su c h o ther d a te a s h a s b ee n mu t u a l l y a gr e e d in w riting b e tw e e n the Company a nd the Employ ee) or (y) the d a te on wh i c h the Employ e e c e a s e s to b e a n e mp l oy e e o f the Co m p a ny due to d ea th or D i s a bi l i ty or invo l unta r y te r m i n a t i on of e mp l oyment of the E mp l oy e e by t h e Company other than f o r C a use, in each case following the delivery of such notice.
(v) “Qualifying Full Retirement” means an Employee’s retirement or involuntary termination of employment by the Company for a reason other than Cause, in either case after the Employee has attained age sixty-five (65) with ten (10) or more years of full-time service with the Company (attainment of such age and years of service is referred to as “Full Retirement Eligible”); provided that in order for an Employee’s retirement (but not involuntary termination) to be a Qualifying Full Retirement, the Emp l oy e e (A) h a s given w r i t ten no t ic e, in fo r m r e a so n a bly s a t i sf ac tory to the Company, to the Employ ee’s sup e rviso r, with a c opy to the Vi c e P r e sident, Chief Hum a n R e sour c e s O f fi ce r of the Company (o r, if the Employ e e is t h e Vi c e P r e si d e nt, Chief H uman R e sour c e s O f f i c e r of the Company, to the Chief Ex ec ut i ve O f fi c e r of the Company) that sp ec ifi e s the Employ ee’s in t e nt to r e t i re f r om the Comp a ny a nd the p a rti c ular in t e nd e d d a te of such r e t i r e ment, whi c h must be a t l ea st s ix (6) mon t h s a ft e r the d a t e su c h w r i t t e n not i c e is given; a nd (B) h a s r e main e d e mp l oy e d by the Company un ti l the ea rli e r of (1) the p a rti c ular in t e nd e d d a te of such r e t i r e ment sp e c ifi e d i n su c h not i c e (or su c h o ther d a te a s h a s b ee n mu t u a l l y a gr e e d in w riting b e tw e e n the Company a nd the Employ ee) or (2) the d a te on wh i c h the Employ e e c e a s e s to b e a n e mp l oy e e o f the Co m p a ny due to d ea th or D i s a bi l i ty or invo l unta r y te r m i n a t i on of e mp l oyment of the E mp l oy e e by t h e Company other than f o r C a use, in each case following the delivery of such notice.

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4. Ch a nge in Control.
(a) Upon a Ch a nge in Control of the Company that o cc urs following the gr a nt d a te of the A wa rd but pr i or to the e nd of the P e r f orm a n c e P e rio d, the p e r f o rm a n c e obj e c t i v e s s e t fo r th in the S tat e ment of P e r f orm a n c e G o a ls sh a ll be c on c lus i v e ly d e e med to h a ve b ee n a t t a ined for the Pe r f orm a n c e Pe riod upon the o cc u r r e n c e of su c h Ch a n g e in Control a t the T a rg e t P e r f orm a n c e L e v e l und e r su c h p e r f orm a n c e obje c t ive s, or a t su c h gr e a ter lev e l of p e r f orm a n c e a s the Bo a rd, the Bo a rd C o m m i t tee or i t s d e signee may a uthori z e (su c h le v e l, a s so d e te r m i n e d, the “A t tain e d P e r fo r m a n c e L e v e l”), a nd the Min i mum V e st i ng P e riod sh a ll not a ppl y. The p a y out of the Pe r f orm a n c e Units sh a ll b e p a id to the E mp l oy e e a t t h e t i me sp e c ifi e d in Se c t i on 1(b); provid e d, how e v e r, that, following su c h Ch a nge in Control but prior to the e nd of the P e r f o rm a n c e P e riod, if the Employ e e c ea s e s to be a n e mp l oy e e of the Com p a ny due to:
(i) the Employ ee’s (A) d e a th, (B) Disability, (C) Other Disability, (D) involuntary termination of employment by the Company other than for Cause, (E) voluntary termination of employment by the Employee for Good Reason, (F) Qualifying Early Retirement or (G) Qualifying Full Retirement, the Performance Period shall immediately expire upon su c h termination, a nd the p a yout of the P e rf orm a n c e Units a t s u c h Attain e d P e r f o rm a n c e L e v e l sh a ll b e v e sted i m medi a tely a nd sh a ll be p a id a s soon a s a dm i nis t r a t i v e ly pr a c t i c a ble following su c h termination, but in no e v e nt lat e r than six t y (60) d a ys th e re a ft e r; and
(ii) the Employ ee’s (A) r e signation for a reason other than Good Reason or (B) t e r m i n a t i on for C a us e, t h e p a yout of the A w a rd sh a l l be f or fe i t e d.
Notwithstanding a nyth i ng in these T e rms a nd C o ndi t ions or the Ag r ee m e nt to the c ontr a ry, (x) if the Employ ee’s e mp l oyment is te r m i n a ted by the Company other than for C a us e, Dis a bi l i t y or Oth e r Dis a b i l i t y with i n si x ty (60) d a ys prior to a Ch a nge in C o ntrol of the Company that o cc urs following the gr a nt d a te of the A w a rd, a nd the Emplo y e e re a so n a bly d e monstr a tes that su c h te r m i n a t i on w a s a t the r e qu e st or sugg e st i on of a th i rd p a rty who h a s ind i ca ted a n in t e nt i on or tak e n steps r e a so n a bly ca lcul a ted to e f f ec t s u c h a Ch a nge in Control (a “T h ird Pa r t y”) a nd su c h a Ch a nge in Control invo l v i ng su c h Third P a rty o cc urs, then for a ll purp o s e s of these T e rms a nd Condi t ions a nd the Ag ree ment, the d a te of su c h Ch a nge in Control sh a ll me a n the d a te i m medi a tely prior to the d a te of su c h t e rmin a t i on of e mp l oymen t; a nd (y) i f a Ch a nge in Control of the Company o c c urs f ol l owing the gr a nt d a t e o f the A w a rd a nd the C o mpany or i t s su c c e ssor do e s not a ssu m e or c ont i nu e, or subs t i t ute e quiva l e nt s ec urities fo r, the Per fo r man c e Units, then the P e r f orm a n c e Pe riod sh a ll i m medi a tely e xpire u pon the e f f ec t i ve d a te of t he Ch a nge in Contro l, a nd the p a yout of the P e r f orm a n c e Units a t the Attain e d P e r f orm a n c e L e v e l sh a ll be v e sted i m medi a tely a nd sh a ll be p a id a s soon a s a dm i nis t r a t i v e ly pr a c t i ca ble following su c h e xpir a t i on of the Pe r fo r ma n c e P e riod, but i n no e v e nt l a ter than six t y (6 0) d a ys th e re a ft e r.
Any p a yout pursu a nt to t his S ec t i on 4 sh a ll be s u bje c t to a ppl i ca ble withho l dings a nd s a t i sf a c t i on the re o f (i n c lud i ng r e taining S h a r e s othe r wise is s u a b l e) a s p r ovided in S ec t i on 13.2 of the P lan.
(b) F or p u rpos e s o f t h e A gr e e men t, “Good R e a s o n” me a ns, without the Employ ee’s e xp r e ss w r i t t e n c ons e nt, the o cc u r r e n c e of a ny o f the following e v e nts a ft e r a Ch a n g e in Control of the Comp a ny that o cc urs following the gr a nt d a te of the A w a rd: (i) if the Employee is a n O f fi c e r i m medi a tely p r ior to such Ch a nge in C ontro l, (A) a ny mat e ri a l l y a dv e rse di m inu t ion

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of the Employ ee’s posit i on(s), dut i e s, r e spons i bi l i t ies or status with the Company a s in e f f e c t i m medi a tely prior to su c h Ch a nge in Control or (B) a mat e ri a l a d v e rse c h a nge in the Employ ee’s r e porting r e spons i bi l i t ies, t i t l e s or of f ic e s with the Company a s in e f fec t i m medi a tely prior to su c h Ch a nge in Control; (i i) a r e du c t i on b y the Company in the Employ ee’s r a te of a nnu a l b a se s a la r y, a nnu a l ta r g e t c a sh inc e n t ive bonus oppo r tun i ty or a nnu a l ta r g e t lon g-t e rm inc e nt i ve oppo r tun i ty (including a ny a dv e r s e c h a nge in the f o rmula for su c h a nn u a l ta r g e t ca sh inc e nt i ve bonus oppo r tun i ty a nd/or a nnu a l ta r g e t lon g-te r m inc e nt i ve oppo r tun i t y) a s in e f f ec t i m medi a tely pr i or to su c h Ch a nge in Control or a s the s a me may be i n c r e a s e d f r om t i me to t i me the rea ft e r; or (iii) a ny r e quir e ment o f the Company that the Employ e e (A) be b a s e d a nyw h e r e more than fi f ty (50) m i les f r om the f ac i l i t y wh e r e the Employ e e is lo c a ted a t t he t i me of su c h Ch a n g e i n Control or (B) tr a v e l on Company busin e ss to a n e xtent subs t a nt i a l l y g r ea ter t h a n the tr a v e l obl i g a t i ons of the Employ e e i m medi a tely p r ior to such Ch a nge in C ontrol.
Any e v e nt o r c ondi t ion d e s c rib e d in th i s S ec t i on 4(b) whi c h o cc u rs p r ior to a Ch a nge in Control of the Company that o c c urs following the gr a nt d a te o f t he A w a r d, but w a s a t the r e q u e st or sugg e st i on of a Third Pa rty who e f fe c tuat e s su c h Ch a nge in C ontrol, sh a ll c onsti t ute Good R ea son following su c h Ch a nge in Control f or purp o s e s of the s e T er ms a nd Condi t ions a n d the Ag ree m e nt notwi t hstanding that it o cc ur re d prior to su c h Ch a nge in Control. An iso l a ted, insubstantial a nd inadv er tent ac t i on ta k e n in good f a i t h a n d whi c h is r e m e died by the Company with i n fi f te e n (15) d a ys a ft e r r e c e ipt of not i c e t h e r e of given by t h e Emplo y e e s h a ll not c onsti t ute Good R ea son. The Employ e e must provide not ic e of t e rmin a t i on of e mp l oyment with i n ninety (90) d a ys of the Employ e e’s kno w ledge of a n e v e n t constitu t ing Good R ea s on or su c h e v e nt sh a ll not consti t ute G ood R ea son und e r th e se T e rms a n d Condi t ions and the Ag ree ment.
Notwithstanding the fo re going, in the e v e nt of a M e rg e r of Equ a ls T r a ns a c t i on that othe r wise c onsti t utes a Ch a nge in Control, the Bo a rd Com m i t tee may d e te r m i ne prior to the c onsummation of su c h tr a ns ac t i on to n a r r ow or e l i m i n a te the Good R ea son trigg e rs s e t fo r th a bov e. F or th i s purp o s e, a “M er g e r of E qu als T r a n sa c tio n” me a ns a me r g e r, c onsolidation, sh a r e e x c h a n g e or si m i l a r fo r m of c orpo ra te r e o rg a n i za t i on of the Company o r a ny su c h type of tr a ns ac t i on invo l ving the Company or a ny of i t s S ubsidia r ies that r e qui r e s the a p p rov a l of the Company’s sh a r e holde r s (w h e ther f o r su c h tr a n s ac t i on or the is s u a n c e of s ec urities in the tr a ns ac t i on or othe r wis e) (a “B u si n e ss C o mb i n a tio n”) wh e re (A) more t h a n 40% of the to t a l vot i ng pow e r of t h e c o mpany r e sul t ing f r om s u c h Business Comb i n a t i on (in c lud i ng, without l i m i tation, a ny c ompany whi c h dir ec t l y or ind i re c t l y h a s b e n e fi c i a l own e rship of 100% of the Company’s then-outs t a nding s ec uriti e s e l i gib l e to vote for the e le c t i on of the Bo a rd (the “Co mp a n y Vo t i n g S ec u r iti e s”)) e l i gib l e to e l e c t dir ec tors o f su c h c ompany is r e p r e s e nted by sh a r e s t h a t w e re Comp a ny Voting S ec urities i m medi a tely prior to su c h Business Comb i n a t i on (e i t h e r by r e maining outs t a nding or b e ing c onv e rt e d), a nd su c h vot i ng pow e r is in subs t a n t ially the s a me prop o rtion a s the v o t i ng pow e r of su c h Company Voting S ec urities i m medi a tely prior to su c h Business Comb i n a t i on, (B) no p e rson (oth e r than a ny publ i c ly tr a d e d hold i ng c om p a ny r e sul t ing f r om su c h Business Co m bination, or a ny e mp l oy e e b e n e fit plan sponsor e d or maintain e d by the Company (or t h e c o m p a ny r e sul t ing f r om su c h Business Comb i n a t i on)) b ec omes the b e n e fi c ial own e r, dir ec t l y or ind i re c t l y, of 20% or more of t he to t a l v ot i ng pow e r of the outs t a nding vot i n g s ec urities e l i gib l e to e le c t dir ec tors of the c ompany r e sul t ing f r om su c h Business Comb i n a t i on, a nd (C) a t l ea st 50% of the m e mbe r s of the bo a rd of di rec tors of the c omp a ny r e sul t ing f r om su c h Business Comb i n a t i on w e re In c umbent Dir e c t o rs (a s d e fin e d in the following c laus e) a t the t i me of the Bo a r d’s a ppro v a l of the e x ec ut i on of t h e in i t i a l a gr e e ment p roviding for su c h Business

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Comb i n a t i on; a nd “I n cu mb e n t Di rec to r s” m ea ns ind i viduals who, on J a nu a ry 1, 2020, c onsti t ute the Bo a rd, p rovid e d that a ny p e rson b ec om i ng a dir ec tor sub s e qu e nt to J a nu a ry 1, 2020, whose a ppoin t ment, e le c t i on or nom i n a t i on for e l e c t i on w a s a p p rov e d by a vote of a t l e a st tw o-th i rds of the I n c um b e nt Dir e c tors who r e main on the Bo a rd (e i t h e r by a sp e c ific vote or by a ppro va l of the proxy stat e ment of the C ompany in whi c h su c h p e rson is n a med a s a nom i n e e for dir ec t o r, without obje c t i on to su c h nom i n a t i on) sh a ll a lso be d e e med to be a n I n c umb e nt Dir e c tor; provi d e d, how e v er, t h a t no ind i vidual in i t i a l l y e le c ted, a ppo i nted or nom i n a ted a s a d i r e c tor o f the Company a s a r e sult of a n ac tual or publ i c ly thr ea ten e d e le c t i on c ontest with r e sp ec t to dir ec tors or a ny other ac tual or publ i c ly thr e a t e n e d sol i c i t a t i on of proxi e s or c ons e nts by or on b e h a lf of a ny p e rson other than the Bo a rd sh a ll be d ee med to be a n I n c umb e nt Dir ec tor.
5. P rot ec t i ve Cov e n a nt s. In c onsid e r a t i on of, a mong other th i ngs, the g r a n t of the A wa rd to the Employ ee, the Employ e e ac knowl e d g e s a nd a gre e s, by acce p t a n c e of the A w a rd, to the f ol l owing p r ovis i ons:
(a) Non-S ol i c i t a t i o n. Du r i n g the P rot ec t i ve Cov e n a nt P e rio d, the Em p loyee sh a ll not, dir ec t l y or in d ir ec t l y, ind i vidually or on b e h a lf of a ny other e mp l oy e r or a ny oth e r busin e ss, p e rson or e nt i t y: (i) r e c ruit, induc e, S ol i c it or a t t e mpt to r e c ruit, induce or S ol i c it a ny I ndiv i du a l Employ e d by the Company to te r m i n a te, a b a ndon o r o the r wi s e le a ve o r discontinue e mp l oyment with the Company; or (ii) hi r e or c a use or a ss i st a ny I ndiv i d u a l Employ e d by the Company to b ec ome e m ployed by or provide s e rvi ce s to a ny ot h e r bus i n e ss, p e rson or e nt i ty wh e ther a s a n e mp l oy e e, c onsultant, c ontr ac t or o r othe r wis e.
(b) Custo m e r a nd P otential Custo m e r Non-I n t e r f e r e n c e. Du r ing t he P rot ec t i ve
Cov e n a nt P e riod, the Employ e e sh a ll not, dir ec t l y or ind i r e c t l y, ind i vidually or (i) on b e h a lf of a ny other e mp l oy e r or a ny other busin e ss, p e rson o r e nt i ty, e nt i c e, induc e, S ol i c it or a t t e mpt or p a rti c ipate in e nt i c ing, i n du c ing or S ol i c i t ing, a ny Custo m e r or P otential Custo m e r of the Company to cea se o r r e d u c e or ref ra in f r om doing busin e ss with the Company; o r (ii) on b e h a lf o f a ny Competi t ive Business, e nt i ce, i ndu ce, S ol i c it or a t t e mpt or p a rti c ipate in e nt i c ing, inducing or S ol i c i t ing, or acce pt or a t t e mpt or p a rti c ipa t e in a cc e pt i ng, busin e ss f r om a ny Custo m e r or P otential Custo m e r of the Cov e r e d Unit(s).
(c) Non-Competi t io n. Du r i ng the P rot ec t i ve Cov e n a nt P e r i od, the Employ e e sh a ll not, dir ec t l y or i n dir ec t l y, a s a n e mp l oy ee, indep e nd e nt c ontr a c tor, c onsultant, of f ic e r, dir ec tor, ma n a g e r, prin c i p a l, lend e r or investor e ng a ge or othe r wise p a rt i c ipate in a ny ac t i vi t ies with, or provide s e rvi c e s to, a Competi t ive Busin e ss, without the prior w r i t ten c ons e nt of the V i c e P r e sident, Chief Hum a n R e sour ce s O f f i c e r of the Company or other d e signat e d e x ec ut i ve o f fi c e r of the Company (w h i c h c ons e nt sh a ll be a t su c h o f fi ce r’s disc r e t i on to give or withho l d). Nothing in th i s S ec t i on 5(c) sh a ll p r e c lude t h e Employ e e f r o m owning up to 1% of t h e e qui t y in a ny publ i c ly tr a d e d c ompany.
(d) No Disp a r a g e ment or D e triment a l Com m e nt s. Du r ing the Employ e e’s e mp l oyment with the Company a nd th e r e a ft e r, t h e Employ e e sh a ll not, di r e c t l y or i ndir ec t l y, ma k e or publ i sh, or ca use to b e made or publ i sh e d, a ny s t a tem e nt, obs e r v a t i on or o pin i on, wh e ther v e rb a l or w r i t ten, t h a t c ritici ze s, dispa ra g e s, d e f a mes or othe r wi s e i m pugns o r re a son a bly may be in t e rp re ted to c ritici ze, d i sp a r a g e, d e f a me or i m pugn, the c h a r a c t e r, in t e gri t y or r e pu t a t i on of the Company or i t s prod uc ts, goods, sys t e ms or s e rvi ce s, or i t s c ur re nt or f or mer dir ec tors, o f fi ce rs,

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e mp l oy ee s, a g e nts, su c ce ssors or a ss i gn s. Nothi n g in th i s S ec t i on 5(d) is in t e nd e d or should be c onstru e d to pr e v e nt the Employ e e f r om providing truthful testi m ony or i n fo r mation to a ny p e rson or e nt i ty a s r e qu i r e d by l a w or fidu c i a ry dut i e s or a s may be n e ce ssa r y in t he p e r f orm a n c e of t h e Employ ee’s duties in co n n ec t i on wi t h the E mp l oy ee’s e mp l oyment with t h e Company.
(e) Confid e nt i a l i t y. Du r ing the Employ ee’s e mp l oyment with the Company a nd the r ea ft e r, the Employ e e sh a ll not u s e or d i s c lose, e x ce pt on b e h a lf of the Company a nd pursu a nt to a nd in c om p l i a n c e with i t s dir ec t i on a nd pol i c ies, a ny Confi d e nt i a l I n fo r mation of (i) the Company o r (i i) a ny th i rd p a rty re ce ived b y the Company whi c h t h e Company is ob l igat e d to k ee p c onfid e nt i a l. This S ec t i on 5(e) will a pply i n a ddi t ion to, a nd not in d e rog a t i on of, a ny ot h e r c onfid e nt i a l i ty or no n-disclosure a g r ee ment that may e xis t, now or in t h e futu re, b e t w ee n the Employ e e a nd the Com p a n y.
(f) Con s ide ra t i on a nd A c k n owl e dgmen t. The Employ e e a c knowl e dg e s a nd a gr e e s to e a c h of the fol l owing: (i) the Employ e e’s ac c e ptan c e of t h e A w a r d a nd p a rti c ipation in the P lan is volun t a ry; (ii) the b e n e fits a nd rights provid e d by the Ag ree m e nt a nd P lan a re wholly disc re t i on a ry a nd, a l t hough provid e d by the C ompany, do not c onsti t ute r e gul a r or p e riodic p a yments; (iii) the b e n e fits a nd c ompens a t i on pro v ided und e r the Ag r e e me n t a re in a ddi t ion to the b e n e fits a nd c ompens a t i o n that othe r wise a r e or w ould be a v a i l a ble to the E mp l oy e e in c on n ec t i on with the Employ ee’s e m ploy m e nt with the Co m p a ny a nd the gr a nt of t h e A wa rd is e xpr e ss l y c ont i ng e nt upon t he Employ ee’s a g r e e m e nt wi t h the Company c ontain e d i n S ec t i o n s 5 a nd 6; (iv) the s c ope a nd du r a t i on of the r e str i c t i ons i n S ec t i on 5 a r e f a ir a nd re a son a b l e; (v) if a ny p rovisions of S ec t i o n s 5(a), (b), (c), (d) o r (e), or a ny p a rt t h e r e of, a re h e ld to b e u n e nfo r c ea ble, the c ourt making su c h d e te r m i n a t i on sh a ll h a ve the p o w e r to r e vise or mod i fy s u c h provision to make it e n f orc ea ble to the maximum e xtent p e rmit t e d b y a ppl i ca ble law a nd, in i t s r e vised or mod i fi e d fo r m, su c h provision sh a ll then be e nfo r c ea ble, a nd if the provision is not ca p a ble of b e ing mod i fi e d or r e vised so that it is e n fo rc e a ble, it sh a ll be e x c ised f r om these T e rms a nd Condi t ions w i thout a f f e c t i ng the e nfo r c e a bi l i t y of the r e maining provis i ons; a nd (vi) the t i me p e r i od of the Employ ee’s obl i g a t i ons und e r S ec t i o n s 5(a), (b) a nd (c) sh a ll be e xtend e d by a p e riod e q u a l to the length of a ny br e ac h o f those o b l i g a t i ons by the Employ ee, in a ddi t ion to a ny a nd a ll o t h e r r e med i e s provid e d by these T e rms a nd Co n di t ions or othe r wise a v a i lable to the Company a t law or in e qui t y. The Employ e e fu r ther un d e r s tands a nd ac knowl e d g e s that noth i ng c ontain e d in the Ag ree me n t l i m i ts the Employ ee’s a bi l i t y (1) to r e port poss i ble vio l a t ions of law or r e gulation to, or file a c h a r g e or c omp l a int with, the S e c urities a nd Ex c h a n g e C o m m is s ion, the Equ a l Employment Oppo r tun i t y Com m is s ion, the N a t i o n a l L a bor R e lations B o a rd, the O cc u p a t i on a l S a f e ty a nd H ea l t h Admin i str a t i on, the D e p a rtm e nt of Jus t i c e, the Congr e ss, a ny Insp ec tor G e n e r a l, o r a ny other Fe d e r a l, state or loc a l gov e rnm e ntal a g e n c y or c om m is s ion (“Gove r n me n t Ag e n c ie s”); (2) to c om m unic a te with a ny Gov e rnm e nt A g e n c ies o r othe r wise p a rti c ipate i n a ny investig a t i on or pro c ee ding t h a t may be c ondu c ted by a ny Go v e r n ment Ag e n c y, including providing do c uments or other info r mation, without not i c e to the C o mpany; or (3) und e r a ppl i ca b l e United S tat e s Fe d e r a l law to (x) disclose in c o n fid e n c e t r a de s e c r e ts to F e d e r a l, stat e, a nd loc a l g o v e rnm e nt of f ic i a ls, or to a n a t t orn e y, for the s o le purp o se of r e p o rting or investig a t i ng a suspe c ted vio l a t i on of law or (y) disclose tr a d e s e c r e ts in a do c ument fil e d in a la w suit or other proc ee di n g, but only if the filing is m a de und e r s e a l and p r ote c ted f rom public disc l osur e.
(g) D e finit i on s. F or purp o s e s of S ec t i on 5 of the s e T e rms a nd Condi t ions, the following d e finit i ons shall apply:

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(1) “Co mp eti t ive B u si n e s s” me a ns a ny busin e ss, p e r son or e nt i ty that is e ng a g e d, or planning or c ontemplating to e ng a ge with i n a p e riod of tw e lve (12) mon t hs, in a ny busin e ss ac t i vi t y that is c ompeti t ive with the bu s iness a nd busin e ss ac t i v i t i e s e ng a g e d in by the C ov e r e d Unit(s).
(2) “Confi d e n tial I n fo r m atio n” me a ns c onfid e nt i a l, prop r iet a ry o r tr a de s ec r e t info r mation, wh e ther or not ma r k e d o r othe r wi s e d e signa t e d a s c onfid e nt i a l, wh e th e r in do c ument, e le c tronic or other fo r m, a nd includ e s, but is n o t l i m i t e d to, i nfo r mation that is n o t publ i c ly known r e g a rd i ng fin a n ce s, busin e ss a nd ma r k e t i ng plans, prop o s a ls, proj ec t i ons, fo re c a st s, e xis t ing a nd p rosp ec t i ve c usto m e rs, v e ndor identi t ies, e mp l oy e e s a nd c ompens a t i on, dr a wings, manu a ls, inventions, p a tent a ppl i ca t i o n s, p r o ce ss a nd f a bri c a t i on info r mation, r e s ea rch plans a nd r e sul t s, c omp u ter prog r a ms, d a ta b a s e s, softw a re flow c h a rts, s p ec ifi ca t i ons, t e c hnic a l d a ta, s c ientific a n d te c hn i ca l i nfo r mation, t e st r e su l ts and m a rk e t s t udies.
(3) “Co mp a ny” me a ns, a nd sh a ll be d ee med to include, the Company a nd a ny S ubsidia r y.
(4) “Cov e r e d Un i t(s)” m e a n s: (i) during the p e riod o f the Employ ee’s e mp l oyment with the C ompany, eac h busin e ss unit of the Company; a nd (ii) following the Employment T e rmin a t i on D a t e, eac h busin e ss un i t of the Co m p a ny in o r f o r w hich the Employ e e w a s e mp l oy e d or to whi c h the Employ e e provid e d s e rvi ce s or a bout whi c h the Employ e e obtain e d or h a d ac c e ss to Confid e nt i a l I n fo r mation, in e a c h ca se of th i s c l a use (ii) a t a ny t i me with i n the tw e nty-four (2 4)-mon t h p e riod prior to the Employment T e rmin a t i on D a t e. The Employ e e ac knowl e d g e s a nd a g r e e s that if the Employ e e is or w a s e mp l oy e d a t a s e gment lev e l, the Employ e e is providing o r h a s provi d e d s e rvi ce s to a nd fo r, a nd h a s ob t a ined a nd h a s or h a d a c ce ss to Confid e nt i al I nfo r mat i on a bout, e ac h busin e ss unit of su c h s e g m e nt; a n d if the Employ e e is or w a s e mp l oy e d a t the c o rpo ra te/h e a dqu a r t e rs le v e l, the Employ e e is providing or h a s provid e d s e rvi ce s to a nd fo r, a nd h a s obtain e d a nd h a s or h a d acce ss to Confid e nt i a l In f o r mation a bout, eac h busin e ss un i t of the Company.
(5) “Custo m er” me a ns, with r e sp ec t to the Compa n y or the C ov e r e d Unit(s), a s the c a se may b e, a ny busin e ss, p e rson or e nt i ty who pur c h a s e d a ny prod uc ts, goods, sys t e ms or s e rvi ce s f r om the Company o r s u c h C ov e r e d Unit(s) a t a ny t i me during t h e p r e c e ding tw e nty-four (24) mon t hs (o r, if a ft e r the Employment T e rmin a t i on D a te, the last tw e nt y-four (2 4) mon t hs of the Employ ee’s e mp l oyment with the Company) a nd e i t h e r with whom the Employ e e d ea lt in the c our s e o f p er fo r m i ng the Employ e e’s job dut i e s for the Comp a ny or a bout whom t h e Employ e e h a s or h a d C o nfid e nt i a l I nfo r mation.
(6) “E mp lo y m e n t T er m i n a tion Da t e” me a ns the d a te of t e rmin a t ion of the Emp l oy ee’s e mp l oyment with t he Company, volun t a rily or involun t a rily, for a ny r ea son.
(7) “I nd iv i d u al E m p loyed b y the Co m p a n y” me a ns a ny e mp l oy e e of the Company with whom the Employ e e d ea lt in the c ourse of p e r f o rming the Employ ee’s job dut i e s a t any t i me dur i ng the pr e ce ding tw e l v e (12) mon t hs (o r, if a ft e r the Employment T e rmin a t i on D a te, the l a st tw e lve (12) mon t hs of t h e Employ ee’s e mp l oym e nt with the Company).

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(8) “Po te n tial Custo m e r” me a ns, with r e sp e c t to the Company or the Cov e r e d Unit(s), a s t he ca se may b e, a ny busin e ss, p e rson or e nt i ty ta r g e ted during the pr e ce ding tw e lve (12) months (o r, i f a ft e r the Employment T e rmin a t i on D a te, the l a st tw e lve (12) months of the Employ ee’s e mp l oyment with the Company) a s a c usto m e r to pur c h a se a ny prod uc t s, goods, sys t e ms or s e rvi ce s f rom the Company or su c h Cov e r e d Unit(s) a nd (i) wi t h whom the Employ e e h a d dir e c t or ind i r e c t c o nta c t, (ii) for whom the Employ e e p a rti c ipat e d i n the d e v e lop m e nt or e x ec ut i on of the plan to s e ll prod uc ts, goods, sys te ms or s e r vi c e s of the C o mpany or su c h Cov e r e d Unit(s), or (i i i) a bout w h om t he Employ e e othe r w ise h a s or h a d Confid e nt i a l I n fo r mation.
(9) “P r o t ec tive Cov e n a n t P er io d” me a ns the p e riod of the Employ ee’s e mp l oyment with the Company a nd the tw e lve (12)-mon t h p e riod foll o wing the Employment T e rmin a t i on D a te.
(10) “S ol i c it” a nd “S ol i c i t i ng” me a n a ny dir e c t or ind i r e c t c om m unic a t i on of a ny kind, r e g a rdl e ss of who in i t i a tes i t, that in a ny w a y inv i tes, a dvises, e n c our a g e s or r e q u e sts a n y p e rson to take or r e f r a in f r om taking a ny ac t i ons; provid e d, for purp o s e s of S ec t i on 5(a), the t e r m “S ol i c i t” e x c ludes the pla ce m e nt of g e n e r a l a dv e rtisem e nts inv i t i ng a ppl i ca t i ons for e mp l o y me n t that a re not t a rg e t e d to e mp l oy ee s of the C o mpany g e n e r a l l y or a ny sp ec ific e mp l oy e e s of the Company.
6. R e medi e s for Bre ac h of S ec t i on 5.
(a) F or f e i t ure a nd C la w b a c k. The Employ e e a gr e e s, by acce pta n c e of the A wa rd, that if the Empl o y e e b r e a c h e s a ny p rovision of Se c t io ns 5(a), (b), (c), (d) o r (e), in a ddi t ion to a ny a nd a ll oth e r r e m e dies a v a i l a ble to the C o mpany, (i) the A w a rd a n d a ll P e r f orm a n c e Units subj ec t to the A w a rd a nd a ny rights with r e s p ec t t o the A w a rd a nd s u c h Pe r f orm a n c e Units sh a ll upon w r i t ten not i c e (whi c h may be in e le c tronic f orm) i m medi a tely be f o r f e i t e d a nd te r m i n a t e a nd be ca n ce l l e d; a nd (ii) the Company sh a ll h a ve t he right upon w r i t ten n o t i c e (w hich m a y be in e le c tronic fo r m) to r e c l a im a nd r e ce ive f r om the Employ e e a ll S h a r e s a nd ca sh, a s a ppl i ca ble, is s u e d or p a id to the Employ e e in r e sp e c t of the P e r f orm a n c e Units purs u a nt to S ec t i on 1 a bov e, or to the e xtent the Emp l oy e e h a s tr a ns f e r r e d su c h S h a r e s, the Fa ir M a rk e t V a lue the re o f (a s of the d a te su c h S h a r e s w e r e t r a nsf e r r e d by t h e Emplo y e e) in ca sh a nd a ny su c h r e turn o f S h a r e s or p a yment of ca sh by the Employ e e whi c h r e quir e s a c t i on on the p a rt of the E mp l oy e e sh a ll be made with i n five (5) busin e ss d a ys following r e c e ipt of w r i t ten d e mand th e r e fo r e.
(b) F orum. T h e Employ e e a gr e e s, by a c ce pta n c e o f t h e A w a rd, that a ny jud i c ial ac t i on brou g ht with r e sp e c t to the provisions of S e c t i o n s 5 or 6 of these T e r m s a nd Condi t ions may be fil e d in the United S tat e s Distri c t Court for the Middle Distri c t of F lori d a or in t he Cir c uit Court of Br e v a rd County, F lor i da a nd h e r e by c ons e nts t o the jurisd i c t i on of su c h c ourts a nd w a ives a ny obje c t i on h e/she m a y n o w or h e r ea ft e r h a v e to su c h v e nu e.
(c) Ch a nge in Contro l. I f a Ch a nge in Control of the Company o cc u r s following the gr a nt d a te of the A wa rd a nd the E mp l oy e e cea s e s th e r e a ft e r to be a n e mp l oy e e of the Company in a c ir c u m stan c e s e t fo r th in Se c t i on 4 of these T e rms a nd C o ndi t ion s, the provisions of Se c t i ons 5 a nd 6 sh a ll i m medi a tely te r m i n a te a n d be of no fu r t h e r f o r c e a nd e f f e c t.

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7. S ec urities L a w R e quir e m e nt s. The Company s h a ll not be r e qui r e d to is s ue S h a r e s pursu a nt to the A wa rd, to the e xtent r e quir e d, unle s s a nd unt i l (a) su c h S h a res h a ve b ee n duly l i sted upon eac h stock e x c h a n g e on whi c h the Compan y’s Com m on S tock is th e n r e gis t e r e d; a nd (b) a r e gis t r a t i on stat e ment u n d e r the S ec u rities A c t of 193 3, a s a mend e d, with r e sp ec t to su c h S h a r e s is t h e n e f f e c t i v e.
8. Bo a rd Com m i t tee Admin i str a t i o n. The Bo a rd Com m i t t e e sh a ll h a ve a uthority, subj ec t to the e xp r e ss pr o vis i ons of the P lan a s in e f fec t f r om t i me to t i me, to c onstrue the s e T e rms a nd Condi t ions a nd the Ag ree m e nt a nd the P l a n, to e stabli s h, a mend a nd r e s c ind rul e s a nd r e gulations r e lating to the P lan, a nd to make a ll ot h e r d e te r m i n a t i ons in the judg m e nt of the Bo a rd Com m i t tee n ece ssa r y or d e sir a ble for the a dm i nis t r a t i on of the P lan. The Bo a rd Com m i t tee may c or r e c t a ny d e f ec t or s u pply a ny om i ss i on or r e c on c i l e a ny inconsis t e n c y in these T e rms a nd Condi t i o ns a nd the Ag re e ment in the mann e r a nd t o the e xtent it sh a ll d ee m e xp e dient to ca r ry the P lan into e f f e c t, and it s h a ll be the sole a nd fi n a l j udge of su c h e x p e dien c y.
9. I mp a c t of R e stat e ment of F inan c i a l S tat e ments upon A wa rd s. I f a ny of the Company’s fin a n c ial sta t e ments a re r e stat e d, a s a r e sult of e r ro r s, om i ss i ons, or f ra ud, t h e Bo a rd Com m i t tee may (in i t s s ole disc re t i on, but ac t i ng in good f a i t h) dir ec t that the Company r e c ov e r a ll or a p o rtion of a ny A w a rd or p a yment ma d e to the E mp l oy e e with r e s p e c t t o a ny fis c a l y e a r of the Company the fin a n c ial r e sul t s of whi c h a re n e g a t i v e ly a f f ec ted by s u c h r e stat e ment. The a mount to be re c ov e r e d sh a ll be the a mount by whi c h the a f f e c ted A w a r d or p a yment e x c e e d e d the a mount that would h a ve b ee n p a y a ble h a d t he fin a n c ial stat e ments b ee n in i t i a l l y fil e d a s r e stat e d, or a ny gre a ter o r less e r a mount (in c lud i ng, but not l i m i ted to, the e nt i re A wa r d) that the Bo a rd Com m i t tee sh a ll d e te r m i n e. The Bo a rd Com m i t tee sh a ll d e te r m i ne wh e ther the Company sh a ll e f fec t a ny su c h r e c ov e ry by: (a) s e e king rep a yment f r om the Employ e e; (b) r e du c ing the a mount that would o the r wise be p a y a ble to the E mp l oy e e und e r a ny c ompens a tory plan, prog ra m or a r ra n g e ment maintain e d by the Company, a S u bsid i a ry or a ny of i t s A f filiat e s; (c) withho l ding p a yment of futu r e inc r ea s e s in c ompens a t i on (in c lud i ng the p a yment of a n y disc re t i on a ry bonus a moun t) or gr a nts of c o mpens a tory a w a rds that would othe r wise h a ve b e e n made in a c c ord a n c e with the Company’s oth e r w ise a ppl i ca ble c ompe n s a t i on pr a c t i ce s; or (d) a ny c omb i n a t i on of the fo re going or oth e r w ise (s ubje c t, in eac h o f sub c la u se (a), (b) a nd (c), to a p p l i ca ble la w, including without l i m i t a t i on, S ec t i on 409A of the Cod e, a nd the te r ms a nd c ondi t ions of the a ppl i ca ble plan, prog ra m o r a r ra n g e me n t). This Se c t i on 9 s h a ll be a no n-e x c lus i ve r e m e dy a nd noth i ng in th i s S ec t i on 9 sh a ll pr e c lude t he Company f r om pursuing a ny other a ppl i ca b l e r e medi e s a v a i l a ble to i t, wh e ther in addit i on to, or in l i e u of this S ec t i on 9.
10. I n c orpo r a t i on of P lan P r o vi s ion s. Th e se T e rms a n d Condi t ions a nd the Ag r ee ment a re m a de p u rsu a nt to t h e P lan, the provisions o f whi c h a r e h e r e by i n c o rpo ra ted by r e fer e n c e. C a pi t a l i ze d te r ms not o t h e r w ise d e fin e d h e r e in sh a ll h a ve the m ea nings s e t f orth f or su c h te r ms i n the P lan. I n t h e e v e nt o f a c onfli c t b e tw ee n t h e te r ms of these T e rms a n d Condi t ions a nd the Ag ree ment a nd the P l a n, the t e rms of the P l a n sh a l l gove r n.
11. Comp l ian c e with S ec t i on 409A of the Co d e. T he Ag r e e ment a nd the P lan a re in t e nd e d to be e x e mpt fr om the pro v is i ons of S e c t i on 409A of the Code to the maximum e xtent p e rmit t e d by a ppl i ca ble la w. To the e xtent a ppl i ca ble, it is in t e nd e d that t he Ag ree ment a nd the P lan c omp l y with the p rovisions of S ec t i on 4 0 9A of t h e Cod e, so that the income inclusion provisions of S ec t i on 4 0 9A(a)(1) of the Code do not a pply to t he Employ e e. For purposes of complying with Section 409A of the Code, the Award shall be treated as payable upon the later

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to occur of (A) the date on which the Award ceases to be subject to a substantial risk of forfeiture and (B) the earliest of (x) the last day of the Performance Period, (y) the Employee’s separation from service and (z) the Employee’s death. The Ag ree ment a nd the P lan sh a ll be a dm i n i ste re d a nd in t e rp r e ted in a mann e r c onsistent with th i s in t e nt, a nd a ny provision that would ca u se the Ag r ee ment o r the P lan to f a il to s a t i sfy S e c t i on 409A of the Code sh a ll h a ve no fo r c e a nd e f f e c t unt i l a mend e d to c omp l y with S ec t i on 409A of the Code (whi c h a mendm e nt may be r e t r o ac t i ve to the e xtent p e r m i t ted by S ec t i on 409A of the Code a nd may be made by the Company w i t hout the c ons e nt of the Empl o y ee). I f t h e A w a r d is subj ec t to S ec t i on 409A of the Code, a r e t i r e ment or t e rmin a t i on of e mp l oyment sh a ll not be d ee m e d to o c c ur f o r purp o s e s of a ny provisi o n of the A g r e e ment p ro v id i ng for the p a yment o f a ny a moun t s upon or following r e t i r e ment or t e rm i n a t i on of e mp l oym e nt unless su c h r e t i r e ment or te r m i n a t i on is a lso a “s e p a r a t i on f r om s e rvi c e” with i n the me a ning of S ec t i on 409A of the Cod e, a nd for purp o s e s o f a ny su c h provision in the Ag ree ment, r e fer e n c e s to a “te r m i n a t i on,” “te r m i n a t i on of e mp l oyme n t,” “r e t i r e,” “r e t ir e ment” or l i ke te r ms sh a ll me a n “s e p a r a t i on f r om s e rv i ce.” Notwithstanding a nyth i ng in the Ag r e e m e nt to the c ontr a ry, if t h e A wa rd is subj ec t to S ec t i on 409A of the Cod e, a nd if t h e Employ e e is a “S p ec ifi e d Employ e e” (with i n the me a ning of t h e Company’s S p e c ifi e d Employ e e P ol i c y for 40 9 A A r r a ng e ments) a s of t he d a te the Employ e e ce a s e s to be a n e mp l oy e e of the Company, then s u c h p a yout sh a ll be d e la y e d unt i l a nd made duri n g the s e v e nth ca lend a r mon t h following the ca le nd a r month during wh i c h the E mp l oy e e c e a s e d to be a n e mp l oy e e o f the Company (o r, if ea rli e r, the ca l e nd a r mon t h following the c a lend a r mon t h of the Employ e e’s d ea th), to the e xtent r e q uir e d by S ec t i on 409A o f the Cod e. Notwithsta n ding the fo re going, no p a rti c ular tax r e sult f o r the Employ e e with r e sp e c t to a ny income r ec ogni z e d by the Employ e e in c onn ec t i on with the Ag r ee ment is g u a r a nt e e d, a n d the Employ e e solely s h a ll be r e spons i ble f o r a ny tax e s, p e n a l t ies or in t e r e st i m pos e d on the Employ e e in c onn e c t i on with the Ag ree ment. R e f e r e n c e to S ec t i on 409A of the Code will a l so include a ny prop o s e d, tempo ra ry or fin a l r e gulations, or a ny other guidan ce, promulga t e d with r e sp ec t to su c h S ec t i on by the U.S. D e p a rtm e nt of t h e T r e a s ury o r the I nt e rn a l R e v e n ue S e rvi ce.
12. D a ta P riv ac y; El e c tronic D e l i v e r y. By a c ce pta n c e of the A w a rd, t h e E mp l oy e e ac knowl e d g e s a nd a g r e e s that: (a) d a ta, includi n g the Employ ee’s p e rs o n a l d a ta, n e c e ssa r y to a dm i nis t e r the Ag ree m e nt may be e x c h a ng e d a mong the Company a nd i t s S ubs i d ia r ies a nd a f f i l iat e s a s n ece s s a ry, a n d with a ny v e ndor e ng a g e d by the Company to a ss i st in the a dm i nis t r a t i on of e qui t y a w a rds; a nd (b) unless a nd unt i l r e vok e d in w r i t ing by the Emp l oy ee, info r mation a nd mat e ri a ls in c on n ec t i on with the Ag r ee ment o r a ny a w a rds un d e r t h e P lan, including, but not l i m i ted to, a ny prosp ec t u s e s a nd plan do c ument, may be provi d e d by m e a ns of e l e c tronic d e l i v e ry (in c lud i ng by e-mail, by w e b site a c ce ss and/or by f a c si m i l e).
13. Mi s ce l l a n e ou s. Th e se T e rms a nd Condi t ions a nd t h e other portions of the Ag ree ment: (a) sh a ll be bind i ng upon a nd inure t o the b e n e fit of a ny su cce ssor of the Company; (b) sh a ll be gov e r n e d by the la w s of the S tate of D e la w a re a nd a ny a ppl ic a ble la w s o f the United S tat e s; a nd (c) e x c e pt a s p e rmit t e d und e r Se c t i ons 3.2, 12 a nd 13.6 o f the P lan a nd S ec t i o n s 1(e),
8 a nd 11 of these T e rms a nd Condi t ion s, may n o t be a mend e d in a mann e r that would mat e ri a l l y i m p a ir the rights of the Employ e e without the w r i t ten c ons e nt of both the Company a nd the Employ ee. The Ag ree m e nt sh a ll not in a ny w a y i nte r f e r e with or l i m i t the right of the Company or a ny S ubsidia r y to te r m i n a te the Employ ee’s e mp l oyment or s e rvi c e w i th the Company or a ny S ubsidia r y a t a ny t i me, a nd no c ontr ac t o r right o f e mp l oyment sh a ll be i mp l ied by these T e rms a nd Condi t ions a nd the Ag ree ment of whi c h th e y fo r m a p a rt. F or purp o s e s of these T e rms a nd

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Condi t ions and the Ag r e e ment, (i) e mp l oyment by the Company or a ny S u bsid i a ry or a su c c e ssor to the Company sh a ll b e c onsid e r e d e mp l oym e nt by the Company, a nd (ii) the c los i ng of a divestiture or other s a le of a ssets or a busin e ss of the Company or a ny S ubsidia r y (re g a rdl e ss of tr a ns ac t i on stru c tu r e) t h a t r e sul t s in the Employ e e no lo n g e r b e ing e mp l o y e d by the Company o r a ny S ubsidia r y sh a l l, for purp o s e s of S ec t i on 3(a)(i i)(B) a nd S ec t i on 4(a)(ii)(A) of these T e rms a nd Condi t ions, be tr ea t e d a s a n invo l unta r y te r m i n a t i on of e mp l oyment of the Employ e e by the Company other than for C a use (f or a voidan c e of doubt, e v e n if the Employ e e r e t a ins the s a me e mp l oyment posit i on wi t h the ac quir e r following su c h c los i ng); a nd (iii) r e f e r e n c e s to “te r m i n a t i on of e mp l oyment,” “ce s s a t i on of e mp l oyment,” “cea s e s to be e mp l oy e d,” “c e a s e s to be a n Employ ee” or si m i l a r p hr a s e s sh a ll me a n the l a st d a y ac tually wo r k e d (a s d e te r m i n e d by t h e Company), a nd sh a ll not include a ny not i c e p e riod or a ny p e riod of s e v e r a n c e or s e p a r a t i on p a y or p a y c ont i nu a t i on (w h e t h e r r e qui r e d by law o r c ust o m or othe r wise p rovid e d) following the last d a y ac tually w o rk e d, to t h e e xtent c onsistent with the a ppl i ca ble r e qui r e ments of S ec t i on 409A of the Cod e; provid e d, how e v e r, that if the Company t e rmin a tes the Employ ee’s e mp l oyment a s a r e sult of the Employ e e’s Dis a b i l i t y or Oth e r D i s a bi l i t y or a s a r e sult of the Employ ee’s f a i l ure to r e turn to wo r k wh e n the Empl o y e e do e s not h a v e, or no l ong e r h a s, a Dis a bi l i t y or Oth e r Dis a bi l i ty, then the last d a y ac tually wo r k e d sh a ll me a n the d a y o f su c h te r m i n a t i o n, to the e xtent c onsistent with the a ppl i ca ble r e quir e m e nts of S ec t i on 409A of t h e Cod e. I f the A wa rd is a ssu m e d or a n e w a w a rd is subs t i t uted the re for in a ny c orpo ra te r e or g a niz a t i on (in c lud i ng, but not l i m i t e d to, a ny tr a ns ac t i on of the type ref e r r e d to in S ec t i on 424(a) o f the Cod e), e mp l oyment by su c h a s sum i ng or subs t i t ut i n g c orpo ra t i on o r by a p a r e n t c orpo r a t i on or subs i dia r y the re o f sh a ll b e c onsid e r e d f o r a ll purp o s e s o f the A w a rd to b e e mp l oyment by the Company.

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