Document:

exv10w8

 

Exhibit 10.8

TERMS AND CONDITIONS

PERFORMANCE-BASED

RESTRICTED STOCK UNITS GRANTED IN 2005

UNDER STOCK PERFORMANCE PLAN

Amended January 1, 2007

 

 

STOCK PERFORMANCE PLAN

TERMS AND CONDITIONS OF

PERFORMANCE VESTED RESTRICTED STOCK UNITS

GRANTED IN 2005

	1.	 	GRANT
	 
	 	 	You (hereinafter “grantee”) were granted performance-based restricted DuPont common stock
units (“units”) effective February 2, 2005.
	 
	2.	 	PERFORMANCE PERIOD – 2005-2007 
	 
	 	 	For a period of time from the effective date of the grant to the payout date (to be
designated by DuPont following the evaluation of the performance metrics at the conclusion
of the three-year performance period) (“restriction period”), grantee may not sell, gift, or
otherwise transfer or dispose of any of the units.
	 
	 	 	If grantee remains a DuPont employee at the end of the restriction period, the number of
units vested, if any, will become shares of DuPont common stock and, subject to other
provisions of these terms and conditions, grantee shall be entitled to full ownership of
such shares with all associated rights of ownership, including but not limited to the
ability to sell, gift, or otherwise transfer the shares.
	 
	 	 	In connection with each grant, the Compensation Committee shall establish performance
metrics and a measurement process to evaluate the metrics, which will determine the number
of shares, if any, a grantee will receive at the conclusion of the restriction period.
	 
	 	 	The metrics associated with this grant for performance period 2005-2007 are Revenue Growth
and Return on Investors Capital.
	 
	 	 	Revenue Growth — Sales/Revenue as reported in company filings and adjusted for “major
acquisitions/divestitures”, but only if the aggregate of major acquisitions/divestitures
totals 15% or more of total revenue in a fiscal year. A “major acquisition/divestiture” is
defined as one that accounts for at least 5% of total revenue. Measurement approach:
point-to-point Compound Annual Growth Rate.
	 
	 	 	Return on Investors Capital (ROIC) — As calculated for DuPont’s Variable Compensation plan.
	 
	 	 	Numerator: net income from continuing operations including minority interest income
before (as itemized on the income statement): extraordinary items, special items, after-tax
interest expense, and preferred dividends.

	 
	 	 	
Denominator: 5-quarter average total investors capital (total debt, shareholders
equity, and minority interest liability).
	 
	 	 	Measurement approach: For 2005 and 2006, ROIC results will be based on DuPont’s performance
relative to the peer group. For 2007, DuPont’s performance will be based on an absolute
target.
	 
	 	 	The measurement of these metrics will be based on revenue growth comparing DuPont’s
performance relative to the performance of a peer group (as established by the Compensation
Committee) and a combination of relative and absolute ROIC target.
	 
	 	 	Utilizing the matrix table below, the Compensation Committee will determine the appropriate
performance factor based on an assessment of DuPont’s performance in relative revenue growth
as a percentile of the peer group and based on the appropriate ROIC target.

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	2005 and	 	2007	 	DuPont Annualized Revenue Growth vs. Peers
	2006	 	ROIC Result	 	 	 	25th to	 	40th to	 	60th to	 	 
	Current vs.	 	as of	 	<25th	 	40th	 	60th	 	75th	 	> 75th
	Peers	 	12/31/2007	 	Percentile	 	Percentile	 	Percentile	 	Percentile	 	Percentile
	>75th Percentile
	 	>18%	 	50%	 	90%	 	135%	 	165%	 	200%
	60th to 75th
Percentile
	 	17% - 17.9%	 	   0%	 	65%	 	110%	 	135%	 	165%
	40th to 60th
Percentile
	 	15.5% - 16.9%	 	   0%	 	40%	 	  90%	 	110%	 	135%
	25th to 40th
Percentile
	 	13% - 15.49%	 	   0%	 	25%	 	  40%	 	  65%	 	  90%
	<25th Percentile
	 	<12.9%	 	   0%	 	   0%	 	     0%	 	     0%	 	     0%

	 	 	Example:

3-year Annualized Revenue Growth relative to the Frame falls between the 40th and
60th percentile, e.g., 54th percentile.
	 
	 	 	ROIC results at the 46th percentile versus the peer group for 2005 and 2006, and
at 17.0% for 2007 would yield the following results.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Payout Percent	 	 
	 	 	 	 	 	 	from Matrix	 	 
	 	 	 	 	 	 	above (Revenue	 	 
	 	 	 	 	 	 	Result @	 	 
	 	 	 	 	 	 	40th to 60th	 	 
	Year	 	ROIC Result	 	percentile)	Weight
	 
	2005 and 2006

	 	40th to
60th
Percentile versus
peer group
	 	 	90	%	 	2/3
	2007

	 	 	17.0	%	 	 	110	%	 	1/3
	 
	 

	 	Payout Percent
	 	 	96.66	%	 	 

	 	 	The resulting performance factor from the above table will be applied as a multiplier to the
number of performance-based restricted stock units granted to each participant. For
example, a performance factor of 110% would be applied to a grant of 100 units to yield 110
resulting units, which would be converted to 110 shares of DuPont common stock.
	 
	 	 	There will be no interpolation of results. Should a percentile measure straddle two boxes
in the matrix table, the Compensation Committee, in its sole discretion, will determine
which performance factor to award.
	 
	3.	 	FORFEITURE
	 
	 	 	If grantee’s employment with DuPont terminates for any reason, including, but not limited
to, resignation, prior to the expiration of the applicable restriction period, all rights to
the units and all amounts in grantee’s account shall be forfeited, except as otherwise may
be specifically provided in these terms and conditions.

-3-

 

	 	 	At any time during the restriction period, all amounts in grantee’s account shall be
forfeited if the Compensation Committee, after a hearing at which grantee shall be entitled
to be present, shall find that grantee has willfully engaged in activity which is harmful to
the interest of any plan company.
	 
	4.	 	DIVIDEND EQUIVALENTS
	 
	 	 	An amount equal to any cash dividends (or the fair market value of dividends paid in
property other than dividends payable in DuPont common stock) payable on the total number of
shares represented by the total number of outstanding units (including whole and fractional
units) in grantee’s account will be allocated to grantee’s account in the form of units
based upon the stock price on the dividend payment date. Any stock dividends payable on
such number of shares will be allocated in the form of whole and fractional units. The
stock price shall be the closing price of DuPont common stock as reported on the Composite
Tape of the New York Stock Exchange.
	 
	 	 	Dividend equivalent units will be determined at the end of the performance period and
credited to the grantee’s account at that time based on the performance adjusted number of
units in the grantee’s account. Dividend equivalent units will be calculated by taking the
final performance adjusted number of units and calculating the dividend equivalent units for
the first dividend payment date during the performance period. The number of dividend
equivalent units from the first dividend payment date will be added to the total number of
units used to calculate the dividend equivalent units for the next dividend payment date.
This process will be continued for each subsequent dividend payment date during the
performance period until the total cumulative number of dividend equivalent units is
determined.
	 
	5.	 	PAYMENT FROM GRANTEE’S ACCOUNT
	 
	 	 	Units shall be paid as soon as practical, in no event later than two and a half months after
the later of the end of DuPont’s taxable year or the end of the grantee’s taxable year in
which the units vest, in one share of DuPont common stock for each unit, except that a cash
payment will be made for any fraction of a unit remaining in the grantee’s account. Such
fractional unit will be valued based on the fair market value (the average of the high and
low prices on the NYSE Composite Transactions Tape) of the shares on the effective date of
payment.
	 
	6.	 	PAYMENT IN EVENT OF RETIREMENT, DISABILITY, TERMINATION FOR LACK OF WORK, DIVESTITURE TO
AN ENTITY LESS THAN 50% OWNED BY DUPONT OR DEATH
	 
	 	 	In the event grantee retires, becomes disabled, as such term is defined in applicable
benefit plans (“disability”), is terminated for lack of work, as such term is defined in
applicable benefit plans (“termination for lack of work”), is terminated due to a
divestiture to an entity which is less than 50% owned by DuPont or dies, all units in
grantee’s account will be paid at the conclusion of the restriction period as described in
paragraph 2 above provided grantee’s retirement, disability, termination (as described in
this paragraph) or death, occurs at least six months after the grant date and provided
further that grantee was an active employee of a plan company through the date of
retirement, death, disability or termination. Units in grantee’s account will be pro-rated
based on the number of months the individual was employed by DuPont during the three-year
performance period. In the event payment under this provision shall give rise to
application of section 409A of the Internal Revenue Code, then not withstanding any other
aspect of these Terms and Conditions, in no event shall units be paid earlier than six
months after separation from employment of a “specified employee” as that term is defined
within section 409A of the Internal Revenue Code. If grantee’s death, disability,
retirement or termination occurs prior to expiration of the six-month period following the
grant date, all units shall be forfeited.
	 
	 	 	In the event of grantee’s death, all units in grantee’s account will be paid to the
person(s) specified in the last beneficiary designation form filed with the Company. If no
designation form has been completed or if the designated beneficiary shall have predeceased
grantee, the balance in grantee’s account shall be paid promptly to grantee’s estate.

-4-

 

	7.	 	SATISFYING WITHHOLDING WITH DUPONT COMMON STOCK
	 
	 	 	Shares of DuPont common stock will be automatically used to satisfy withholding for federal,
state, and local taxes unless grantee is a Section 16 officer. The number of shares withheld
by the Company to satisfy withholding taxes shall be determined based on the fair market
value (the average of the high and low prices on the NYSE-Composite Transactions Tape) of
the shares on the date for determining the amount of withholding tax due. Federal, state,
and local withholding cannot exceed statutory requirements.
	 
	 	 	If the grantee is a Section 16 officer or director, because of SEC requirements, any
election to use share withholding is subject to certain restrictions and requirements. In
general, the granteee must make an irrevocable election at least six months prior to the
vesting date or within one of the four ten-day window periods per year. The terms and
conditions applicable to use of share withholding by Section 16 officers are attached hereto
as Exhibit A.
	 
	 	 	In the event of changes in relevant law or circumstances, the Compensation Committee may
modify the terms and conditions of this paragraph 7, including discontinuing share
withholding.
	 
	8.	 	ADJUSTMENTS
	 
	 	 	In the event of any stock dividend, split-up, reclassification or other change in
capitalization, an equitable adjustment will be made as indicated in Article XII of the
Stock Performance Plan in the number of units in grantee’s account.
	 
	9.	 	INTERPRETATION
	 
	 	 	The decision of the Compensation Committee with respect to any question arising as to the
interpretation of the Stock Performance Plan as it affects this grant of restricted DuPont
common stock units, or as to interpretation of these terms and conditions, shall be final,
conclusive and binding.
	 
	10.	 	NO ACQUIRED RIGHTS
	 
	 	 	This grant is made at the discretion of the Company, and should not be construed to imply an
entitlement to any future grants of a like or different nature.
	 
	11.	 	INCORPORATION OF STOCK PERFORMANCE PLAN
	 
	 	 	In addition to the terms and conditions set forth above, which are fixed by the Compensation
Committee in accordance with Article VI, paragraph 4 of the Stock Performance Plan, this
grant is also subject to the other applicable provisions of the Stock Performance Plan.

-5-

 

EXHIBIT A

TERMS AND CONDITIONS FOR USING SHARES TO SATISFY

WITHHOLDING TAX ON RESTRICTED STOCK UNITS

A Section 16 officer or director may elect to use shares of DuPont common stock to satisfy federal,
state and local tax withholding requirements in connection with the vesting of restricted stock
units. No shares may be withheld in excess of statutory requirements.

	1.	 	An election to use shares to satisfy amounts required to be withheld pursuant to applicable
federal, state and local tax laws in connection with the vesting of restricted stock units is
irrevocable. No election may be made with respect to restricted stock units prior to six
months after the grant date.
	 
	2.	 	An election to use shares to satisfy tax-withholding requirements is subject to the
disapproval of the Compensation Committee.
	 
	3.	 	Shares used to satisfy withholding may either be restricted stock unit shares otherwise
issuable pursuant to the vesting of the restricted stock unit grant or shares already owned
which are tendered to the Company. The Section 16 officer or director must unconditionally
agree to tender the appropriate number of shares to the Company if the amount of withholding
tax is determined after the vesting date of the restricted stock units. When shares already
owned are used to satisfy withholding, the grantee must have owned such shares for at least
six months.
	 
	4.	 	When the Section 16 officer or director elects to use shares to satisfy withholding, the
election must be made on a date six months or more prior to the vesting date, or during a
ten-day window period prior to or coincident with the vesting date. *
	 
	5.	 	The number of shares withheld by the Company or tendered by the Section 16 officer or
director to satisfy the withholding tax requirement shall be determined based on the fair
market value (the average of the high and low prices on the NYSE-Composite Transactions Tape)
of the shares on the date for determining the amount of withholding tax due.

 

			
	*	 	There are four ten-day window periods a year. They commence on the third business day
following the date the Company announces its quarterly and annual sales and earnings and end
on the twelfth business day following such date.

-6-exv10w9

 

Exhibit 10.9

TERMS AND CONDITIONS

PERFORMANCE-BASED

RESTRICTED STOCK UNITS GRANTED IN 2006

UNDER STOCK PERFORMANCE PLAN

Amended January 1, 2007

 

 

STOCK PERFORMANCE PLAN

TERMS AND CONDITIONS OF

PERFORMANCE VESTED RESTRICTED STOCK UNITS

GRANTED IN 2006

	1.	 	GRANT
	 
	 	 	You (hereinafter “grantee”) were granted performance-based restricted DuPont common stock
units (“units”) effective February 1, 2006.
	 
	2.	 	PERFORMANCE PERIOD – 2006-2008 
	 
	 	 	For a period of time from the effective date of the grant to the payout date (to be
designated by DuPont following the evaluation of the performance metrics at the conclusion
of the three-year performance period) (“restriction period”), grantee may not sell, gift, or
otherwise transfer or dispose of any of the units.
	 
	 	 	If grantee remains a DuPont employee at the end of the restriction period, the number of
units vested, if any, will become shares of DuPont common stock and, subject to other
provisions of these terms and conditions, grantee shall be entitled to full ownership of
such shares with all associated rights of ownership, including but not limited to the
ability to sell, gift, or otherwise transfer the shares.
	 
	 	 	In connection with each grant, the Compensation Committee shall establish performance
metrics and a measurement process to evaluate the metrics, which will determine the number
of shares, if any, a grantee will receive at the conclusion of the restriction period.
	 
	 	 	The metrics associated with this grant for performance period 2006-2008 are Revenue Growth
and Return on Invested Capital.
	 
	 	 	Revenue Growth — Sales/Revenue as reported in company filings and adjusted for “major
acquisitions/divestitures”, but only if the aggregate of major acquisitions/divestitures
totals 15% or more of total revenue in a fiscal year. A “major acquisition/divestiture” is
defined as one that accounts for at least 5% of total revenue. Measurement approach:
point-to-point Compound Annual Growth Rate.
	 
	 	 	Return on Invested Capital (ROIC) — As calculated for DuPont’s Variable Compensation plan.
	 
	 	 	Numerator: net income from continuing operations including minority interest income
before (as itemized on the income statement): extraordinary items, special items, after-tax
interest expense, and preferred dividends.

	 
	 	 	
Denominator: 5-quarter average total invested capital (total debt, shareholders
equity, and minority interest liability).
	 
	 	 	Measurement approach: For 2006, ROIC results will be based on DuPont’s performance relative
to the peer group. For 2007 and 2008, DuPont’s performance will be based on an absolute
target.
	 
	 	 	The measurement of these metrics will be based on revenue growth comparing DuPont’s
performance relative to the performance of a peer group (as established by the Compensation
Committee) and a combination of relative and absolute ROIC target.
	 
	 	 	Utilizing the matrix table below, the Compensation Committee will determine the appropriate
performance factor based on an assessment of DuPont’s performance in relative revenue growth
as a percentile of the peer group and based on the appropriate ROIC target.

-2-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2007	 	2008	 	 
	 	 	ROIC	 	ROIC	 	DuPont Annualized Revenue Growth vs. Peers
	2006	 	Result as	 	Result as	 	 	 	25th to	 	40th to	 	60th to	 	 
	Current	 	of	 	of	 	<25th	 	40th	 	60th	 	75th	 	> 75th
	vs. Peers	 	12/31/2007	 	12/31/2008	 	Percentile	 	Percentile	 	Percentile	 	Percentile	 	Percentile
	>75th Percentile
	 	>18%	 	>19%	 	50%	 	90%	 	135%	 	165%	 	200%
	60th to 75th
Percentile
	 	17% - 17.9%	 	18% - 18.9%	 	   0%	 	65%	 	110%	 	135%	 	165%
	40th to 60th
Percentile
	 	15.5% - 16.9%	 	16.5% - 17.9%	 	   0%	 	40%	 	  90%	 	110%	 	135%
	25th to 40th
Percentile
	 	13% - 15.49%	 	14% - 16.49%	 	   0%	 	25%	 	  40%	 	  65%	 	  90%
	<25th Percentile
	 	<12.9%	 	<13.9%	 	   0%	 	   0%	 	     0%	 	     0%	 	     0%

	 	 	Example:

3-year Annualized Revenue Growth relative to the Frame falls between the 40th and
60th percentile, e.g., 56th percentile.
	 
	 	 	ROIC results at the 46th percentile versus the peer group for 2006, at 16.0% for
2007; and at 18.0% for 2008 would yield the following performance factor.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Payout Percent from
	 	 	 	 	 	 	Matrix above (Revenue
	 	 	 	 	 	 	Result @
	Year	 	ROIC Result	 	40th to 60th percentile)
	 
	2006

	 	40th to
60th
Percentile versus
peer group
	 	 	90	%
	 
	 	 	 	 	 	 	 	 
	2007

	 	 	16.0	%	 	 	90	%
	 
	 	 	 	 	 	 	 	 
	2008

	 	 	18.0	%	 	 	110	%
	 
	 	 	 	 	 	 	 	 
	 
	 

	 	Payout Percent
	 	 	96.67	%

	 	 	The resulting performance factor from the above table will be applied as a multiplier to the
number of performance-based restricted stock units granted to each participant. For
example, a performance factor of 110% would be applied to a grant of 100 units to yield 110
resulting units, which would be converted to 110 shares of DuPont common stock.
	 
	 	 	There will be no interpolation of results. Should a percentile measure straddle two boxes
in the matrix table, the Compensation Committee, in its sole discretion, will determine
which performance factor to award.
	 
	3.	 	FORFEITURE
	 
	 	 	If grantee’s employment with DuPont terminates for any reason, including, but not limited
to, resignation, prior to the expiration of the applicable restriction period, all rights to
the units and all amounts in grantee’s account shall be forfeited, except as otherwise may
be specifically provided in these terms and conditions.

-3-

 

	 	 	At any time during the restriction period, all amounts in grantee’s account shall be
forfeited if the Compensation Committee, after a hearing at which grantee shall be entitled
to be present, shall
find that grantee has willfully engaged in activity which is harmful to the interest of any
plan company.
	 
	4.	 	DIVIDEND EQUIVALENTS
	 
	 	 	An amount equal to any cash dividends (or the fair market value of dividends paid in
property other than dividends payable in DuPont common stock) payable on the total number of
shares represented by the total number of outstanding units (including whole and fractional
units) in grantee’s account will be allocated to grantee’s account in the form of units
based upon the stock price on the dividend payment date. Any stock dividends payable on
such number of shares will be allocated in the form of whole and fractional units. The
stock price shall be the closing price of DuPont common stock as reported on the Composite
Tape of the New York Stock Exchange.
	 
	 	 	Dividend equivalent units will be determined at the end of the performance period and
credited to the grantee’s account at that time based on the performance adjusted number of
units in the grantee’s account. Dividend equivalent units will be calculated by taking the
final performance adjusted number of units and calculating the dividend equivalent units for
the first dividend payment date during the performance period. The number of dividend
equivalent units from the first dividend payment date will be added to the total number of
units used to calculate the dividend equivalent units for the next dividend payment date.
This process will be continued for each subsequent dividend payment date during the
performance period until the total cumulative number of dividend equivalent units is
determined.
	 
	5.	 	PAYMENT FROM GRANTEE’S ACCOUNT
	 
	 	 	Units shall be paid during the calendar year following the end of the performance period, in
one share of DuPont common stock for each unit, except that a cash payment will be made for
any fraction of a unit remaining in the grantee’s account. Such fractional unit will be
valued based on the fair market value (the average of the high and low prices on the
NYSE-Composite Transactions Tape) of the shares on the effective date of payment.
	 
	6.	 	PAYMENT IN EVENT OF RETIREMENT, DISABILITY, TERMINATION FOR LACK OF WORK, DIVESTITURE TO
AN ENTITY LESS THAN 50% OWNED BY DUPONT OR DEATH
	 
	 	 	In the event grantee retires, becomes disabled, as such term is defined in applicable
benefit plans (“disability”), is terminated for lack of work, as such term is defined in
applicable benefit plans (“termination for lack of work”), is terminated due to a
divestiture to an entity which is less than 50% owned by DuPont or dies, subject to the
conditions of paragraph 2, all units in grantee’s account will be paid at the conclusion of
the restriction period as described in paragraph 2 above provided grantee’s retirement,
disability, termination (as described in this paragraph) or death, occurs at least six
months after the grant date and provided further that grantee was an active employee of a
plan company through the date of retirement, death, disability or termination. Units in
grantee’s account will be pro-rated based on the number of months the individual was
employed by DuPont during the three-year performance period. In the event payment under
this provision shall give rise to application of section 409A of the Internal Revenue Code,
then not withstanding any other aspect of these Terms and Conditions, in no event shall
units be paid earlier than six months after separation from employment of a “specified
employee” as that term is defined within section 409A of the Internal Revenue Code. If
grantee’s death, disability, retirement or termination occurs prior to expiration of the
six-month period following the grant date, all units shall be forfeited.
	 
	 	 	In the event of grantee’s death, all units in grantee’s account will be paid to the
person(s) specified in the last beneficiary designation form filed with the Company. If no
designation form has been completed or if the designated beneficiary shall have predeceased
grantee, the balance in grantee’s account shall be paid promptly to grantee’s estate.

-4-

 

	7.	 	SATISFYING WITHHOLDING WITH DUPONT COMMON STOCK
	 
	 	 	Shares of DuPont common stock will be automatically used to satisfy withholding for federal,
state, and local taxes unless grantee is a Section 16 officer. The number of shares withheld
by
the Company to satisfy withholding taxes shall be determined based on the fair market value
(the average of the high and low prices on the NYSE-Composite Transactions Tape) of the
shares on the date for determining the amount of withholding tax due. Federal, state, and
local withholding cannot exceed statutory requirements.
	 
	 	 	If the grantee is a Section 16 officer or director, because of SEC requirements, any
election to use share withholding is subject to certain restrictions and requirements. In
general, the grantee must make an irrevocable election at least six months prior to the
vesting date or within one of the four ten-day window periods per year. The terms and
conditions applicable to use of share withholding by Section 16 officers are attached hereto
as Exhibit A.
	 
	 	 	In the event of changes in relevant law or circumstances, the Compensation Committee may
modify the terms and conditions of this paragraph 7, including discontinuing share
withholding.
	 
	8.	 	ADJUSTMENTS
	 
	 	 	In the event of any stock dividend, split-up, reclassification or other change in
capitalization, an equitable adjustment will be made as indicated in Article XII of the
Stock Performance Plan in the number of units in grantee’s account.
	 
	9.	 	INTERPRETATION
	 
	 	 	The decision of the Compensation Committee with respect to any question arising as to the
interpretation of the Stock Performance Plan as it affects this grant of restricted DuPont
common stock units, or as to interpretation of these terms and conditions, shall be final,
conclusive and binding.
	 
	10.	 	NO ACQUIRED RIGHTS
	 
	 	 	This grant is made at the discretion of the Company, and should not be construed to imply an
entitlement to any future grants of a like or different nature.
	 
	11.	 	INCORPORATION OF STOCK PERFORMANCE PLAN
	 
	 	 	In addition to the terms and conditions set forth above, which are fixed by the Compensation
Committee in accordance with Article VI, paragraph 4 of the Stock Performance Plan, this
grant is also subject to the other applicable provisions of the Stock Performance Plan.

-5-

 

EXHIBIT A

TERMS AND CONDITIONS FOR USING SHARES TO SATISFY

WITHHOLDING TAX ON RESTRICTED STOCK UNITS

A Section 16 officer or director may elect to use shares of DuPont common stock to satisfy federal,
state and local tax withholding requirements in connection with the vesting of restricted stock
units. No shares may be withheld in excess of statutory requirements.

	1.	 	An election to use shares to satisfy amounts required to be withheld pursuant to applicable
federal, state and local tax laws in connection with the vesting of restricted stock units is
irrevocable. No election may be made with respect to restricted stock units prior to six
months after the grant date.
	 
	2.	 	An election to use shares to satisfy tax-withholding requirements is subject to the
disapproval of the Compensation Committee.
	 
	3.	 	Shares used to satisfy withholding may either be restricted stock unit shares otherwise
issuable pursuant to the vesting of the restricted stock unit grant or shares already owned
which are tendered to the Company. The Section 16 officer or director must unconditionally
agree to tender the appropriate number of shares to the Company if the amount of withholding
tax is determined after the vesting date of the restricted stock units. When shares already
owned are used to satisfy withholding, the grantee must have owned such shares for at least
six months.
	 
	4.	 	When the Section 16 officer or director elects to use shares to satisfy withholding, the
election must be made on a date six months or more prior to the vesting date, or during a
ten-day window period prior to or coincident with the vesting date. *
	 
	5.	 	The number of shares withheld by the Company or tendered by the Section 16 officer or
director to satisfy the withholding tax requirement shall be determined based on the fair
market value (the average of the high and low prices on the NYSE-Composite Transactions Tape)
of the shares on the date for determining the amount of withholding tax due.

 

			
	*	 	There are four ten-day window periods a year. They commence on the third business day
following the date the Company announces its quarterly and annual sales and earnings and end
on the twelfth business day following such date.

-6-

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