ConocoPhillips Company
05/06/2021 | Press release | Distributed by Public on 05/07/2021 01:13
Quarterly Report (SEC Filing - 10-Q)
Exhibit 10.1
1
January 1, 2021
RETENTIONGRANTAGREEMENT
EmployeeName:
ID Number:
Payroll Country:
Numberof Restricted Stock UnitsGranted:
Grant Date:
Grant Price:
Vesting Schedule:
Thisgrant vestsone-half of the awardon the first anniversaryof the Grant Dateand
theremainderonthesecondanniversaryoftheGrantDate,subjecttotheEmployee'scontinued
employment through the applicablevesting date,or the Employee's earlier termination bytheCompany
without Causeor by the Employee for Good Reason(as thoseterms are defined in the Further Terms and
Conditions below).
Further Termsand Conditions
1.
Type and Size of Grant
.Subject to the2014 Omnibus Stockand PerformanceIncentivePlan(the
Plan)andthisAgreement,theCompanygrantstotheemployeenamedabove(theEmployee)
RestrictedStock Units,the number of whichis set forth above.
2.
Grant Date, Price, and Plan
.The GrantDate andthe Grant Price areas setforthabove.Awards
are madeunder the Plan.ThisAward is made in lieu of abonus.
3.
Vesting,Restrictions, Forfeiture,and Lapse ofRestrictions
.The Restricted Stock Units subject
hereto may becanceled or forfeited asset forth herein.Except asotherwise notedin this Agreement,
thefollowingsummarytabledescribes restrictionsandterms,forfeiture,andlapse ofrestrictions,
subject to the moredetailed provisionsset forth below:
Exhibit 10.1
2
SummaryTable
Summary of TerminationRules
Status
Termination
Date
Forfeiture or Lapsingof Restrictions
Layoff
Any date after
Grant Date
Restrictions lapseonTerminationdate
Disability
Any date after
Grant Date
Restrictions lapseonTerminationdate
Death
Any date after
Grant Date
Restrictions lapseonTerminationdate
Divestitures,outsourcing,and
moves to joint ventures
Any date after
Grant Date
Canceled upon Termination,unlessapproved
otherwise
Without Cause
Any date after
Grant Date
Restrictions lapseonTerminationdate
Good Reason
Any date after
Grant Date
Restrictions lapseonTerminationdate
All other Terminations
To the extent
vested
Restrictions lapseonvestingdate,
To the extent not
vested
Canceled upon Termination
(a)
Vesting.The RestrictedStock Units grantedunder this Agreementshall vest as set forth inthe
VestingSchedule above.Allvesting shallbeinwholeshares, andfractionsshall berounded
down to nearestwhole share.
(b)
Restrictionsand Terms.
(i)
TheAwardshallbeheldinescrowbytheCompanyuntilthelapsing ofrestrictions
placed uponthe Award.TheEmployee shall nothave theright to sell, transfer, assign, or
otherwisedisposeofRestrictedStockUnitsgrantedintheAwarduntiltheescrow is
terminated.Exceptassetforthbelow,theAwardshallbeforfeitedandtherelated
RestrictedStock Units canceledupon the Employee's Termination of Employmentwith
the Companyprior to vesting inaccordancewith paragraph (a) above.Restrictions shall
lapse on theRestrictedStock Units asthey becomevested in accordancewith paragraph
(a) above.Restrictionsshall lapseon the Restricted StockUnits grantedin the Awardon
the day following the Employee's Termination of Employmentwith the Company, if the
Awardhasnotbeencanceledpriortothatday.Uponthelapsing ofrestrictions,the
number of sharesof unrestricted Stock equalto the numberof sharesof Restricted Stock
Unitsforwhichtherestrictionshavesolapsedshall beregisteredintheEmployee's
name,andtherelatedsharesofRestrictedStockUnitsshallbecanceled;provided,
however,thatinplaces whereitis determinedbytheAdministrator thatpayout in the
form of unrestricted Stock isprohibited by law, regulation, or decree,or where thecost of
legalcompliance toissue theunrestrictedStockwouldbeunreasonably expensive, the
FairMarket Valueof such unrestricted Stockshall be paid incash instead of settlement
oftheAwardinunrestrictedStock.Cash payouts are only permittedwhere such legal
restrictions exist.Settlementof the Award in unrestricted Stockor cash payout,ifany,
shall bemade whentherestrictionslapse, but inany event, shall bemade no laterthan
March 15 of the yearfollowing the year inwhich suchrestrictions lapse.
(ii)
RestrictedStock Units donot have any voting rightsor other rights generallyassociated
with
Stockand
aremerelyanobligationoftheCompanytomakesettlementin
accordancewiththetermsandconditionsapplicabletosuchRestrictedStockUnits.
RestrictedStock Units shall accruea dividend equivalentat such timesas a cash dividend
ispaidontheStockoftheCompany,whichdividendequivalent shallbecreditedas
Exhibit 10.1
3
reinvested inadditional RestrictedStock Units asof the datesuch dividends arepayable,
andsuchRestrictedStockUnitsshallbesubjecttothesetermsandconditions.The
numberofRestrictedStockUnitsacquiredthroughthisreinvestmentofdividend
equivalents shallbecalculated usingtheFairMarket Valueat the timeof the dividend
equivalent isaccrued.Restricted StockUnits acquiredfrom dividend equivalentsshall be
paid at the time andin the mannerof settlement ofthe RestrictedStock Units asset forth
in section 3(b)(i).
(c)
Termination of Employment.
(i)
GeneralRuleforTermination.If,priortothedate onwhichinaccordance withthe
schedulesetforthintheAward,theEmployee'semploymentwithaParticipating
Companyshallbeterminatedforanyreason exceptdeath,Disability,orLayoff,any
RestrictedStock Units remainingin escrowpursuant to suchAward shall be canceled and
all rights thereunder shallcease; provided thatthe Authorized Party may, in itsor his sole
discretion,determinethatalloranyportionofanAwardshall notbecanceled due to
Termination of Employment.
(ii)
Layoff.If,afterthedatetheAwardisgranted,theEmployee's employmentwitha
Participating Company shallbe terminated byreason of Layoff, the Employeeshall retain
allrightsprovidedbytheAwardatthetimeofsuchTerminationof Employment.In
suchcase,therestrictionsontheAwardshall lapseonthedate ofTerminationofthe
Employee from the employ of theCompany andits subsidiaries,and settlement shallbe
made in accordancewith the settlementprovisions above.
(iii)
Disability
.
If,aftert
hedatetheAwardisgranted,
the
Employee
shallterminate
employmentfollowingDisabilityof the Employee,the Employeeshall retain all rights
provided by theAward at the time of such Termination of Employment.In suchcase, the
restrictions on theAward shall lapse on thedate of Termination of Employment from the
employ of theCompany andits subsidiaries,and settlement shallbe made in accordance
with the settlementprovisions above.
(iv)
Death.If, after the date anAward is granted, the Employee shalldie while inthe employ
of a Participating Company
,
or after Termination of Employmentby reasonof Disability,
orLayoff (andpriorto the cancellation ofthe Award),the executor oradministrator of
the estate of theEmployee or the personor personsto whom theAward shallhavebeen
validlytransferredbytheexecutorortheadministratorpursuantto willor the laws of
descent and distributionshall havethe right to settlementof the Award to the sameextent
the Employee would have,had the Employeenot died.In suchcase, therestrictionson
theAwardshalllapseuponthedeterminationofdeathbytheAdministrator,and
settlement shallbe made in accordancewith the settlementprovisions above.No transfer
ofanAward,oroftheunrestrictedStockorotherproceedsofanAward,bythe
Employee by will or bythe lawsof descent anddistribution shall beeffective to bindthe
Company unlessthe Administrator shallhave beenfurnished with written noticethereof
and a copy ofthe will andsuch other evidenceas the Administrator maydeem necessary
to establish thevalidity of the transferand theacceptanceby the transferee or transferees
of the termsand conditionsof such Award.
(v)
Transfers andLeaves.Transferofemployment between ParticipatingCompanies shall
not constitute Termination of Employment for the purposeof any Award grantedunder
the Program.Whether anyleave of absenceshall constituteTermination of Employment
forthepurposes ofanyAwardgrantedundertheProgramshall bedeterminedby the
Administrator,in each case in accordance with applicable law andby application ofthe
policies andprocedures adoptedby the Company inrelation to suchleave of absence.
(vi)
Divestiture,Outsourcing,orMovetoJointVenture.If,afterthedate theAwardis
granted, the Employee ceasesto be employed byParticipating Company asa resultof (a)
theoutsourcingofafunction,(b)thesale ortransferofalloraportionofthe equity
interestofsuchParticipatingCompany(removingitfromthecontrolledgroupof
companiesof which theCompany is apart), (c) the saleof all or substantiallyallofthe
Exhibit 10.1
4
assets of suchParticipating Company toanother employer outsideof the controlled group
ofcorporations(whethertheEmployeeis offeredemployment oraccepts employment
withtheotheremployer),(d)theTerminationoftheEmployeebyaParticipating
Company followedbyemploymentwithinareasonable timewithacompany or other
entity in whichthe Companyowns, directly or indirectly, at least a50% interest, priorto
exerciseof an Award,or (e) any other saleof assetsdetermined by theAuthorizedParty
to be considered adivestiture under thisprogram, the Authorized Party may, in its orhis
sole discretion, determine that allor a portion of anysuch Award shallnotbecanceled.
In such cases,the restrictions on theAward shall lapse on thedate of Terminationofthe
Employee from the employ of theCompany andits subsidiaries,and settlement shallbe
made in accordancewith thesettlement provisionsabove.
(vii)
TerminationwithoutCause.If,after thedate the Awardis granted, theCompany shall
terminateemploymentoftheEmployeewithoutCause,theEmployeeshall retainall
rights provided by theAward at the time of suchTermination of Employment.Insuch
case, the restrictionson the Award shalllapse on thedate of Termination of Employment
fromtheemployoftheCompany anditssubsidiaries, andsettlement shall be made in
accordancewith the settlementprovisions above;provided, however, that the Employee
shall notbe entitled to the vestingfor Termination without Causedescribed hereinunless
theEmployeefirstexecutes awrittenrelease substantiallyin the formprovided by the
Company and, tothe extentsuch releaseis revocable by itsterms, only if theEmployee
does notrevokeit,whichsuch release must be executed and deliveredto the Company
within 30 daysof the Employee's Termination.
(viii)
TerminationwithGoodReason.If,after thedate the Awardis granted, theEmployee
shallterminateemploymentfor
GoodReason,
the
Employee
shallretainallrights
provided by theAward at the time of such Termination of Employment.In suchcase, the
restrictions on theAward shall lapse on thedate of Termination of Employment from the
employ of theCompany andits subsidiaries,and settlement shallbe made in accordance
with the settlementprovisions above;provided, however, that the Employee shall notbe
entitledtothevestingforGoodReasondescribedhereinunlesstheEmployeefirst
executes awritten releasesubstantiallyin the form provided by the Companyand, tothe
extentsuch releaseis revocablebyitsterms,onlyiftheEmployeedoes not revoke it,
which such releasemust be executedand deliveredto the Companywithin 30 days of the
Employee's Termination.
(ix)
Changeof Control.Upon aChangeof Control, the following shallapply to anyAward:
(1)
Each Employee shallimmediately becomefully vested insuch Award that is not
assumed by, or substituted for, by an acquirer inconnection withtheChangeof
Control, and suchAward shall not thereafter be forfeitable for anyreason, except
as set forth in Section 3(c).
(2)
WithregardtoanyotherAward,each Employeeshall becomefullyvested in
such Award upon incurring a Severancefollowing such Changeof Control,and
such Award shall not thereafter beforfeitable for any reason, exceptas setforth
in Section 3(c).
(3)
In the eventof vesting of an Award pursuant toeither Section 3(ix)(1) or Section
3(ix)(2),all restrictions andother limitationsapplicable toany RestrictedStock
granted in anyAward shall lapse.With regard to suchRestrictedStock,itshall
becomefreeofallrestrictionsandbecome transferable.Withregardtosuch
RestrictedStockUnits,allrestrictionsandotherlimitationsapplicable tothe
RestrictedStockUnits shall lapseand the RestrictedStock Units shallbesettled
inunrestrictedStockorcash atthesame timesanduponthesame events as it
wouldotherwise havebeen madeinaccordance withthesettlement provisions
above.
(x)
Notwithstandinganythinghereintothecontrary,intheevent thatthisAwardorthe
dividendequivalentsassociated withthisAwardareincludibleinincomepursuantto
Exhibit 10.1
5
section409AoftheInternalRevenueCode,settlementoftheAwardoranyother
distributionhereunderdueto
S
e
parationfrom
S
ervicewiththeCompany
and
its
subsidiariesshallnotbemadetoa'specifiedemployee'(asthattermisdefinedin
section 409A(a)(2)(B)(i))priorto six months afterthe specified employee'sSeparation
from Service from the Company andits subsidiaries(or, if earlier,the dateof death of the
specified employee).
(d)
Detrimental Activities,Suspensionof Award,and RequiredRecoupment.
(i)
If the Authorized Party determinesthat, subsequentto the grant of anyAward but prior to
any Change of Control, theEmployee hasengaged oris engagingin any activitywhich,
in the sole judgmentof the Authorized Party, is or maybe detrimental tothe Companyor
asubsidiary,theAuthorizedPartymaycancelallorpartoftheRestricted Stockor
Restricted StockUnits heldin escrow pursuant tothe Awardor Awardsgranted to that
Employee.Upon anyChangeof Control, the Authorized Partymay cancelall or partof
theRestrictedStockorRestrictedStockUnitsheldinescrow pursuanttotheAward
grantedtotheEmployeeonlyuponadeterminationbytheAuthorizedPartythatthe
Employee hasgiven the CompanyCause for suchcancellation.
(ii)
IftheAuthorizedParty,initsorhissolediscretion,determinesthatthelapsingof
restrictions on RestrictedStock or RestrictedStock Units heldin escrowpursuanttoany
Awardhas thepossibility ofviolatinganylaw,regulation,ordecree pertainingto the
Company,any of itssubsidiaries, or the Employee,the Authorized Partymay freeze or
suspend the Employee's right to settlementor payout of theAward until such time as the
lapse of restrictions wouldno longer, in the solediscretion of theAuthorized Party,have
the possibilityof violating suchlaw, regulation, or decree.
(iii)
Notwithstanding anythinghereintothecontrary,anyAwardis subject to forfeitureor
recoupment, in whole orin part, under applicablelaw, including the Sarbanes-Oxley Act
and the Dodd-Frank Act.
4.
Assignmentof Award upon Death
.Rights underthe Plansand thisAgreement cannotbe assigned
or transferred other than by(i) will or (ii) the lawsof descentand distribution.
5.
TaxWithholding
.Inallcases theEmployeewillberesponsible topay all requiredwithholding
taxes associatedwith the Award.Should a withholding taxobligationarise withregard to the Award
or the lapsingof restrictions onRestrictedStock Units grantedin the Award, the withholding tax may
besatisfiedbywithholdingsharesofStock.Thevalueoftheshares ofStockwithheldforthis
purposeshall
beconsistentwith
applicablelawsandregulations.W
hennecessary,lapsingof
restrictionsmaybe accelerated by the AuthorizedParty tothe extent necessary to provide shares of
Stock to satisfyany withholding tax obligation.Thiswithholding tax obligationincludes, butisnot
limited to, federal, state,and localtaxes, including applicablenon-U.S. taxes.
6.
ShareholderRightsforRestrictedStockUnits
.TheEmployeeshallnothave therightsofa
shareholder untiltheRestricted Stock Unit has been canceled and ownership ofshares of Stock has
been transferred tothe Employee.As describedabove, the Companymay paydividend equivalents
with regard to RestrictedStock Units incertain circumstances.
7.
Certain Adjustments
.In theeventcertaincorporatetransactions,recapitalizations,or stocksplitsoccur
while RestrictedStockor RestrictedStockUnitsare outstanding,theGrantPriceandthenumberof
sharesof RestrictedStockOptionSharesor RestrictedStockUnitsshall becorrespondinglyadjusted.
8.
RelationshiptothePlan
.Inadditiontothetermsandconditions describedinthisAgreement,
Awardsaresubject toallotherapplicable provisionsofthe Plan.The decisions of the Committee
withrespecttoquestionsarisingastotheinterpretationofthePlanorthisAgreementandas to
findings of fact shallbe final, conclusive, andbinding.
9.
NoEmploymentGuarantee
.NoprovisionofthisAgreementshallconferanyrightuponthe
Employee to continuedemployment with anyParticipating Company.
Exhibit 10.1
6
10.
GoverningLaw
.This Agreementshall be governed byand construed and enforced inaccordance
with the laws ofthe State ofDelaware.
11.
Amendment
.WithouttheconsentoftheEmployee,thisAgreementmaybeamendedor
supplemented(i) to cure anyambiguity or to correct orsupplement anyprovision herein whichmay
bedefectiveorinconsistentwithanyotherprovisionherein,or(ii)toaddtothecovenants and
agreements ofthe Companyfor the benefit of anEmployee or to addto the rightsof an Employeeor
tosurrenderanyrightorpowerreservedtoorconferredupontheCompany inthisAgreement,
provided,ineach case,thatsuch changes orcorrectionsshall notadversely affect the rightsof the
Employee with respectto the grantof an Award evidencedhereby without theEmployee'sconsent,
or (iii) to make suchother changesas the Company, upon adviceof counsel, determinesare necessary
or advisablebecause of theadoption or promulgation of, or changein or of theinterpretation of,any
law or governmentalrule or regulation, includingany applicablefederal or state securitiesor tax laws.
Exhibit 10.1
7
DEFINITIONS
Capitalized termsnot defined belowshall have themeanings set forthin the Plan.
'AuthorizedParty'
means the personwho isauthorized to approvean Award, exercise discretion, or take
action under theAdministrative Procedure for the RestrictedStock Program andpursuant to theProgram.
With regard to Senior Officers, the Committeeis theAuthorized Party.With regard to other Employees,
the Chief ExecutiveOfficer is the AuthorizedParty,although the Committeemay actconcurrently asthe
Authorized Party.
'Award'
means theRestricted StockUnits grantedtotheEmployeepursuanttotheforegoingterms,
conditions, and limitations.
'Cause'
means 'Cause'
as that term isdefined in theKey Employee Changein Control SeverancePlan
of ConocoPhillips appliedas if anEmployee were aparticipant under suchplan
.
'Change of Control'
has themeaning set forth in AttachmentA to theseTerms and Conditions.
'Committee'
meansthe CompensationCommittee of theBoard of Directorsof the Company.
'Company'
meansConocoPhillips aDelaware corporation.
'Disability'
meansa disability for which theemployee inquestion hasbeen determinedto be entitledto
either (i) benefits underthe applicableplan of long-term disability of theCompany or itssubsidiariesor
(ii)disabilitybenefitsundertheSocialSecurityAct.Intheabsence ofanysuch determination,the
Authorized Party may makea determination that theemployee hasa Disability.
'Fair MarketValue'
means, as of aparticular date, the meanbetween thehighest and lowestsalesprice
pershareofsuchStockontheconsolidatedtransactionreportingsystemfortheprincipalnational
securitiesexchange on whichshares of Stock arelisted onthat date, or, if there shallhavebeennosuch
sale so reportedon that date,on the nextpreceding dateon which sucha sale was so reported,or,atthe
discretion of theCommittee, the priceprevailing on theexchangeat adesignatedtime.
'GoodReason'
means'Good Reason'
as that term isdefined in theKey Employee Change inControl
Severance Planof ConocoPhillips appliedas if anEmployee were aparticipant under suchplan
.
'GrantPrice'
meanstheFairMarket Valueforoneshare ofStockas ofthedate ofthegrantofan
Award.Grant price isnot adjustedfor any restrictions applicableto the Award.
'Key EmployeeChange in ControlSeverancePlan of ConocoPhillips'
means theplan of thatname (or
a successor planto the planof that name) ineffect on anapplicable Changeof Control.If no plan of that
name (or successorplan to theplan of thatname) is in effect on anapplicable Changeof Control, itshall
mean instead theplan of thatname in effecton the date of theAward.
'Layoff'
meansanapplicableTerminationofEmploymentduetolayoffundertheConocoPhillips
Severance PayPlan, the ConocoPhillips ExecutiveSeverance Plan, or theConocoPhillipsKey Employee
Changein Control Severance Plan, or layoff or redundancyunder any similarlayoff or redundancyplan
which theCompany or its subsidiariesmay adopt from timeto time.If all or any portion ofthebenefits
undertheredundancyorlayoffplanarecontingentontheemployee'ssigningageneralreleaseof
liability,such Terminationshall notbeconsidered asa 'Layoff' forpurposes of this Awardunless the
employee executesand does not revokea general release of liability,acceptable to the Company,under
thetermsofsuch layofforredundancy plan.Inordertobeconsidered alayoffforpurposes ofthis
Award, the Termination of Employment must alsobe considereda Separation fromService.
'ParticipatingCompany'
includesConocoPhillipsandits100%ownedsubsidiaries, includingboth
those directlyowned andthose owned through subsidiaries,whoseparticipation hasbeen approvedby the
Authorized Party.
Exhibit 10.1
8
'Restricted StockUnit'
means aunit equal toone share of Stock(as determinedby the AuthorizedParty)
that is subjectto forfeiture provisions or that hascertain restrictionsattached tothe ownershipthereof.
'Senior Officer'
means theChairman of theBoard, the CEO, allother executive officers of theCompany
(determinedinaccordancewiththeCompany'scustom andpractice pursuanttosection 16(b)ofthe
Securities ExchangeAct of 1934, asamended), all other employeesof the Companywho reportdirectly
to the CEOand whose salarygrade is 23 or higher, and allother employeesof the Companywhosesalary
grade is 26 or higher.
'SeparationfromService'
means 'separation from service' as that termis used in section 409A ofthe
Internal RevenueCode.
'Severance'
means 'Severance' as that term is defined in the Key Employee Change in Control
SeverancePlan of ConocoPhillips applied as if an Employee were a participant under suchplan
andshallalsoincorporatethemeaningoftheterm'Cause'containedinthedefinitionof
'Severance'in such plan but shall substitute the definition of 'Good Reason' containedinthis
InducementGrant Agreement for the definition of 'Good Reason' contained in such plan.
'Stock'
meansshares of common stockof the Company, par value$.01.Stock may alsobe referred to as
'Common Stock.'
'Termination'
and'
TerminationofEmployment'
eachmeancessationofemploymentwiththe
ParticipatingCompanies, determinedinaccordance withthepolicies and practices ofthe Participating
Company for whomthe Employee waslast performing services.
Exhibit 10.1
9
Attachment A
Change of Control
The following definitionsapply to theChange ofControl provisionin Section 10of the Plan.
'Affiliate' shall havethe meaningascribed to suchterm in Rule12b-2 of the General
Rules and Regulationsunder the ExchangeAct, asin effect at the time of determination.
'Associate'shall mean, with reference toany Person, (a) any corporation,firm,
partnership, association, unincorporatedorganization or otherentity(other than the Companyor a
subsidiary of theCompany) of whichsuch Personis an officer or general partner (or officeror general
partner of a generalpartner) or is, directly or indirectly, the BeneficialOwner of 10% ormore of any class
of equity securities,(b) any trust or other estatein which suchPerson has asubstantial beneficial interest
or as to whichsuch Person servesas trustee or ina similar fiduciary capacityand (c) any relativeor
spouse of suchPerson, or any relative ofsuch spouse,who has the samehome as such Person.
'Beneficial Owner'shall mean,with reference toany securities,any Personif:
(a)
suchPersonoranyofsuchPerson'sAffiliatesandAssociates,directlyor
indirectly,isthe'beneficialowner'of(asdeterminedpursuanttoRule 13d-3ofthe
GeneralRulesandRegulationsundertheExchangeAct,asineffectatthetimeof
determination)suchsecuritiesorotherwisehastherighttovoteordisposeofsuch
securities;
(b)
suchPersonoranyofsuchPerson'sAffiliatesandAssociates,directlyor
indirectly,hastheright orobligationtoacquiresuchsecurities(whethersuchright or
obligation is exercisableor effective immediately or onlyafter the passage of time orthe
occurrenceofanevent)pursuanttoanyagreement,arrangementorunderstanding
(whetherornotinwriting) oruponthe exerciseofconversionrights, exchangerights,
other rights, warrants or options,or otherwise; provided, however, that a Person shall not
bedeemedtheBeneficialOwnerof,orto'beneficiallyown,'(i) securitiestendered
pursuanttoatenderorexchangeoffermadebysuchPersonor anyofsuchPerson's
AffiliatesorAssociatesuntilsuchtenderedsecuritiesareacceptedforpurchaseor
exchangeor (ii) securities issuable upon exercise of Exempt Rights; or
(c)
suchPersonoranyofsuchPerson'sAffiliatesorAssociates(i) hasany
agreement,arrangementorunderstanding(whetherornotinwriting)withanyother
Person (or any Affiliateor Associate thereof) that beneficially owns suchsecuritiesfor
thepurposeofacquiring,holding,voting(exceptassetforthintheprovisoto
subsection(a) of this definition) or disposing of such securities or (ii)isamemberofa
group (as that term is used in Rule 13d-5(b) of the General Rules and Regulationsunder
the Exchange Act) that includesany other Person that beneficially owns such securities;
provided,however, that nothing in this definition shall cause a Person engaged in business as an
underwriterof securitiesto be the Beneficial Owner of, or to 'beneficially own,' any securities
acquiredthrough such Person'sparticipation in good faith in a firm commitment underwriting
until the expiration of40 days after the date of such acquisition.For purposes hereof, 'voting' a
security shall includevoting, granting a proxy,consenting, or making a request or demand
relating to corporateaction (including, without limitation, a demand for a shareholder list, to call
a shareholdermeeting or to inspect corporate books and records) or otherwise giving an
authorization(within the meaning of section 14(a) of the Exchange Act) in respect of such
security.
Exhibit 10.1
10
The terms 'beneficiallyown' and'beneficially owning'shall havemeanings thatare
correlative to thisdefinition of the term 'BeneficialOwner.'
'Board' shall havethe meaningset forth in the Plan.
'Change of Control' shallmean anyof the following occurring onor after the Grant
Date:
(a)
any Person (otherthan an Exempt Person) shall become the Beneficial Owner
of 20%or more of the shares of Common Stock then outstanding or 20% or moreofthe
combinedvoting power of the VotingStock of the Company then outstanding; provided,
however,thatnoChangeofControlshallbedeemedtooccurforpurposesofthis
subsection(a)ifsuchPersonshall becomea BeneficialOwnerof20%or moreofthe
shares ofCommon Stock then outstanding or 20% or more of the combined voting power
oftheVotingStockoftheCompanythenoutstandingsolelyasaresultof(i)any
acquisitiondirectly from the Company or (ii) any acquisitionby a Personpursuanttoa
transactionthat complies with clauses (i), (ii), and (iii)of subsection(c) of this definition;
(b)
individualswho, as of the Grant Date, constitute the Board (the'Incumbent
Board')ceaseforanyreasontoconstituteatleastamajorityofthe Board;provided,
however,thatanyindividualbecominga directorsubsequentto theGrant Datewhose
election, or nominationfor election by the Company's shareholders, was approvedbya
vote of at least a majority of the directorsthen comprising the Incumbent Boardshallbe
consideredas though such individual were a member of the Incumbent Board; provided,
further,that there shall be excluded, for this purpose, any such individualwhoseinitial
assumptionof office occurs as a result of any actual or threatened electioncontestwith
respect to the election or removalof directors or other actual or threatened solicitationof
proxies or consentsby or on behalf of a Person other than the Board;
(c)
theCompanyshallconsummateareorganization,merger,statutoryshare
exchange,consolidation,orsimilartransactioninvolvingtheCompanyoranyofits
subsidiariesorsaleorotherdispositionofallorsubstantiallyalloftheassetsofthe
Company,or the acquisition of assets or securities of another entity by theCompanyor
any ofits subsidiaries (a 'BusinessCombination'), in each case, unless, followingsuch
Business Combination,(i) 50% or more of the then outstanding shares of commonstock
ofthecorporation,orcommonequitysecuritiesofan entityotherthana corporation,
resultingfromsuchBusinessCombinationandthe combinedvoting powerofthe then
outstandingVotingStockofsuchcorporationorotherentityarebeneficiallyowned,
directlyorindirectly,by allor substantiallyall ofthe Personswhowere theBeneficial
OwnersoftheoutstandingCommonStockimmediatelypriortosuchBusiness
Combinationin substantially the same proportions as their ownership, immediately prior
tosuchBusinessCombination,oftheoutstandingCommonStock,(ii) noPerson
(excluding anyExempt Person or any Person beneficially owning, immediatelypriorto
such BusinessCombination, directly or indirectly,20% or more oftheCommonStock
then outstandingor 20% or more of the combined voting power of theVotingStockof
the Companythen outstanding) beneficially owns, directly or indirectly, 20% or moreof
thethenoutstandingsharesofcommonstockofthecorporation,orcommonequity
securities ofan entity other than a corporation,resulting from such Business Combination
or the combinedvoting power of the then outstanding VotingStock of such corporation
or other entity,and (iii) at least a majority of the membersof the board of directors of the
corporation,orthebodywhichismostanalogoustotheboardofdirectorsofa
corporationifnotacorporation,
resultingfromsuchBusinessCombinationwere
Exhibit 10.1
11
membersof the Incumbent Boardat the time of the initial agreement or initial actionby
the Board providingfor such Business Combination; or
(d)
theshareholdersoftheCompanyshallapproveacompleteliquidationor
dissolutionof the Company unless such liquidation or dissolution is approved as part of a
transactionthat complies with clauses (i), (ii), and (iii)of subsection(c) of this definition.
'Common Stock'shall havethe meaning setforth in the Plan.
'Company'shall have themeaning set forth in thePlan.
'Exchange Act' shallmean theSecurities ExchangeAct of 1934, asamended.
'Exempt Person' shallmean anyof the Company, any entitycontrolled by theCompany,
any employeebenefit plan (or relatedtrust) sponsoredor maintained bythe Companyor any entity
controlled by theCompany, and any Personorganized, appointed, or establishedby the Companyfor or
pursuant to theterms of anysuch employee benefitplan.
'Exempt Rights'shall meanany rights to purchaseshares of CommonStock or other
VotingStock of the Companyif at thetime of the issuancethereof suchrights are notseparablefrom such
Common Stock or otherVotingStock (
i.e.
, arenot transferable otherwisethan in connectionwith a
transfer of the underlying CommonStock or other Voting Stock), exceptupon the occurrenceof a
contingency, whether suchrights existas of the Grant Dateor are thereafter issuedby the Companyas a
dividend on sharesof Common Stock orother Voting Securities or otherwise.
'Person' shallmean any individual, firm, corporation, partnership,association, trust,
unincorporated organization, or otherentity.
'Voting Stock' shall mean, (i) with respectto a corporation, all securitiesof such
corporation of any classor series that areentitled to votegenerally in theelection of, or to appoint by
contract, directors of suchcorporation (excluding any classor seriesthat would beentitled soto vote by
reason of theoccurrence of anycontingency, so long as such contingencyhas notoccurred) and (ii) with
respect to an entitywhich isnot a corporation, all securitiesof any classor series that areentitled to vote
generally in theelection of, or to appointby contract, membersof the bodywhich ismost analogousto
the board of directorsof a corporation.