APPENDIX B
(x) to determine whether and to what extent an adjustment is required under Section 10 of this Plan;
(xi) to interpret and construe this Plan, any rules and regulations under this Plan and the terms and conditions of any Award granted hereunder, and to
make exceptions to any such provisions in good faith and for the benefit of the Company; and
(xii) to make all other determinations deemed necessary
or advisable for the administration of this Plan.
(c) Notwithstanding anything contained in this Plan, the Plan Administrator may not:
(i) grant any Option or SAR in substitution for an outstanding Option or SAR except as provided in Section 10(b);
(ii) reduce the exercise price of an outstanding Option or SAR, whether through amendment, cancellation or replacement of such Option or SAR, unless such
reduction is approved by the shareowners of the Company;
(iii) cancel any outstanding Option or SAR in exchange for cash, except as provided in
Section 10, unless such cancellation is approved by the shareowners of the Company;
(iv) grant any Award for Shares with a vesting schedule of
less than one year, with ratable vesting only permitted following the one year anniversary of grant, except in the case of a participants death or Disability, Retirement or involuntary termination by the Company other than for cause;
(v) lapse or waive restrictions applicable to any Restricted Stock Award, Restricted Unit Award, Performance Share Award, Performance Unit Award or other
Award except in the case of death, Disability, Retirement or involuntary termination by the Company without cause; or
(vi) grant any Share Award or
Stock Unit Award to any officer or director of the Company except in lieu of salary or cash bonus.
(d) The limitations of Sections 3(c)(iv), (v),
and (vi) shall not apply to Awards for up to five percent of the Shares available under the Plan, as of the effective date of the Plan, granted by a Committee composed entirely of independent directors (under all definitions of
independence then applicable to the Company).
(e) In the event of an involuntary termination of an Employee, other than as a result of cause, where
such Employee satisfies one or more of the conditions set forth in the definition of Retirement, then, unless otherwise set forth in an Award agreement, such Award and this Plan shall be interpreted based on the Retirement of such Employee (rather
than based on an involuntary termination). In the event of an involuntary termination of an Employee for cause, then, notwithstanding the fact that the Employee may satisfy the definition of Retirement, all outstanding Awards and this Plan shall be
interpreted based upon an involuntary termination for cause, and not based upon Retirement.
(f) Except as specifically provided in this Plan, no
action of the Plan Administrator shall deprive any person without such persons consent of any rights theretofore granted pursuant hereto.
(g)
All decisions, determinations and interpretations of the Plan Administrator shall be final and binding on all Participants.
Section 4.
Shares Subject to the Plan.
(a) The aggregate number of Shares which may be issued pursuant to the Plan is the sum of (i) the number of
Shares available under the Plan immediately prior to shareowner approval of the Plan (as of August 15, 2020, 1,177,584 Shares were available), subject to the counting, adjustment and substitution provisions of the Plan and (ii) 7,280,000
Shares, all of which may be issued as Incentive Stock Options. The aggregate number of Shares available with respect to Awards under the Plan shall be reduced by (i) one (1) Share for
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| KENNAMETAL INC. 2020 Proxy Statement
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