Document:

Exhibit 10.38

 

Summary of Unwritten Compensation
Arrangements

Applicable to Named Executive Officers of Overstock.com, Inc.

 

The
Company is not a party to any written employment agreement with any of its
named executive officers.

 

Effective
January 1, 2009, the Company pays each of its named executive officers (as
defined in Item 402(a)(3) of Regulation S-K), other than its
President and its Chief Executive Officer, base salaries of $200,000 annually.
Effective January 1, 2009, the Company pays its President, Jonathan E.
Johnson III, a base salary of $250,000 annually. The Company does not pay its
Chief Executive Officer, Patrick M. Byrne, any base salary.

 

The
Company did not pay any of its named executive officers any bonus for 2008. On February 17,
2009, the Compensation Committee of the Board of Directors of the Company
approved a Company-wide 2009 bonus pool equal to 30% of the improvement in
contribution achieved in 2009 over 2008; subject to the authority of the
Compensation Committee to determine the employees or classes or other groups of
employees, if any, who may participate in any bonus payment. The named
executive officers are eligible to participate in the 2009 bonus pool. Bonus
pool payments, if any, are expected to be made in early 2010.

 

On January 13,
2009, the Compensation Committee of the Board of Directors of the Company
approved restricted stock awards under the Company’s 2005 Equity Incentive Plan
as follows:

 

	
  Name and Title

  	
   

  	
  Restricted

  Stock Units(1)

  	
   

  
	
  Patrick M.
  Byrne, Chief Executive Officer

  	
   

  	
  20,000

  	
   

  
	
  Jonathan E.
  Johnson III, President

  	
   

  	
  15,600

  	
   

  
	
  Stormy Simon,
  Senior Vice President, Marketing and Customer Care

  	
   

  	
  16,000

  	
   

  
	
  David Chidester,
  Senior Vice President, Finance(2)

  	
   

  	
  5,000

  	
   

  
	
  Stephen Tryon,
  Senior Vice President, Logistics and Talent

  	
   

  	
  14,000

  	
   

  

 

(1)                                 Each
restricted stock unit represents a contingent right to receive one share of
Overstock.com, Inc. common stock. The restricted stock units vest as to
25% at the close of business on the first anniversary of the date of grant, 25%
at the second anniversary of the date of grant , and the remaining 50% at the
third anniversary of the date of grant. Vested shares will be delivered
promptly after the restricted stock units vest.

 

 (2)                              Mr. Chidester
formerly served as the Company’s Senior Vice President, Finance but as of  December 31, 2008 serves as the Company’s
Senior Vice President, Internal Reporting and Information.Exhibit 10.1

 

ABBOTT LABORATORIES

PERFORMANCE RESTRICTED STOCK AGREEMENT

 

This
Performance Restricted Stock Agreement (the “Agreement”), made on «DateAwded» (the “Grant Date”), between
Abbott Laboratories, an Illinois corporation (the “Company”), and «Name» (the “Employee”), provides for the
grant by the Company to the Employee of a Performance Restricted Stock Award
(the “Award”) under section 10 of the Company’s 1996 Incentive Stock Program
(the “Program”).  This Agreement incorporates and is subject to the
provisions of the Program.  To the extent
not defined herein, capitalized terms shall have the same meaning as in the
Program, and in the event of any inconsistency between the provisions of this
Agreement and the provisions of the Program, the Program shall control.

 

The
terms and conditions of the Award are as follows:

 

1.       Grant of Shares.  Pursuant to action of the Compensation
Committee of the Board of Directors of the Company, and in consideration of
valuable services heretofore rendered and to be rendered by the Employee to the
Company and of the agreements hereinafter set forth, the Company has granted to
the Employee «NoShares12345»
Shares.  The Shares shall be issued from the Company’s available treasury
shares.  The Employee shall have all the rights of a shareholder with
respect to the Shares, including the right to vote and to receive all dividends
or other distributions paid or made with respect to the Shares.  However,
the Shares (and any securities of the Company which may be issued with the
respect to the Shares by virtue of any stock split, combination, stock dividend
or recapitalization, which securities shall be deemed to be “Shares” hereunder)
shall be subject to all the restrictions hereinafter set forth.

 

2.       Restriction.  Until the restriction imposed by this Section 2
(the “Restriction”) has lapsed pursuant to Section 3 or 4 below, the
Shares shall not be sold, exchanged, assigned, transferred, pledged or
otherwise disposed of, and shall be subject to forfeiture as set forth in Section 5
below.

 

3.       Lapse
of Restriction Based on Performance.  The
restrictions on one-third of the total number of Shares will lapse and have no
further force on the last business day of February, 2010, provided that the
Company’s prior year Return on Equity is a minimum of 18 percent; the
restrictions on an additional one-third of the total number of Shares will
lapse and have no further force on the last business day of February, 2011,
provided that the Company’s prior year Return on Equity is a minimum of 18
percent; the restrictions on the remaining one-third of the total number of
Shares will lapse and have no further force on the last business day of
February, 2012, provided that the Company’s prior year Return on Equity is a
minimum of 18 percent.  Notwithstanding the foregoing, any remaining
Shares that have not previously vested in 2010, 2011 or 2012 shall remain
outstanding and shall vest on the last business day of February, 2013 and/or
2014, provided that the Company’s prior year Return on Equity is a minimum of
18 percent, and provided further that no more than one-third of the Shares will
vest in any one year.

 

4.       Retirement.  The Restriction shall continue to apply (and
may lapse in accordance with the provisions of Section 3 above) in the
event that the 

 

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Employee’s employment with the Company and its
Subsidiaries is terminated by the Employee due to retirement.

 

5.       Lapse
of Restriction Due to Death or Disability. 
The Restriction shall lapse and have no further force or effect upon the
date of the Employee’s death or disability. For purposes of this Agreement, the term “disability” shall mean the
Employee’s disability as defined in subsection 4.1(a) of the Abbott
Laboratories Extended Disability Plan for twelve consecutive months.  Once the Employee has been disabled as
defined in this Section for twelve consecutive months, the disability
shall be deemed to have occurred on the first day of such twelve-month period.

 

6.       Forfeiture
of Shares.  In the event of termination
of the Employee’s employment with the Company and its Subsidiaries, other than
under the circumstances described in Section 4 or Section 5 above,
(including without limitation due to the Employee’s voluntary resignation
(other than due to retirement) or involuntary discharge for cause), any Shares
with respect to which the Restriction has not lapsed as of the date of
termination shall be forfeited as of the date of termination, without
consideration to the Employee or the Employee’s executor, administrator,
personal representative or heirs (“Representative”), provided, however, that in
the event that the Employee is involuntarily discharged by the Company and its
Subsidiaries other than for cause, the Company shall have the authority (but
not the obligation) to act, in its sole discretion, to accelerate the lapse of
the Restriction set forth in Section 3 above in whole or in part and to
cause some or all of the Shares that have not previously been paid out on a
Delivery Date set forth in Section 3 above to be settled in the form of
Shares on the date of such involuntary discharge.  The term discharge “for cause” shall have the
meaning given that term by Section 9.

 

7.       Withholding
Taxes.  The Employee may satisfy any
federal, state, local or foreign taxes arising from delivery of the Shares
pursuant to Section 3, 4, or 5 above by (i) tendering a cash payment,
(ii) having the Company withhold Shares from the Shares to be delivered to
satisfy the minimum applicable withholding tax, (iii) tendering Shares
received in connection with the Award back to the Company, or (iv) delivering
other previously acquired Shares having a Fair Market Value approximately equal
to the amount to be withheld.  The
Company shall have the right and is hereby authorized to withhold from the
Shares deliverable to the Employee pursuant to Section 3, 4, or 5 above or
from any other compensation or other amount owing to the Employee such amount
as may be necessary in the opinion of the Company to satisfy all such taxes, requirements
and withholding obligations.  If the
Company withholds from the Shares for tax purposes, the Employee is deemed to
have been issued the full number of Shares underlying the Award,
notwithstanding that a number of the Shares are held back solely for the
purpose of satisfying any such taxes, requirements and withholding obligations.

 

8.       No Right to Continued Employment.  Neither the Program nor this Agreement shall
confer upon the Employee the right to continue in the employ or service of the
Company or any Subsidiary, to be entitled to any remuneration or benefits not
set forth in the Program or this Agreement or 

 

2

 

other agreement, or to interfere with or
limit in any way the right of the Company or any such Subsidiary to terminate
the Employee’s employment or service  or
to exercise any of the other rights of the Company or its Subsidiaries under
the Agreement.

 

9.       Discharge
for Cause.  The term discharge “for cause”
shall mean termination of the Employee’s employment with the Company and its
Subsidiaries for (A) the Employee’s failure to substantially perform the
duties of the Employee’s employment (other than any such failure resulting from
the Employee’s disability); (B) material breach by the Employee of the
terms and conditions of the Employee’s employment; (C) material breach by
the Employee of business ethics; (D) an act of fraud, embezzlement or
theft committed by the Employee in connection with the Employee’s duties or in
the course of the Employee’s employment; or (E) wrongful disclosure by the
Employee of secret processes or confidential information of the Company or its
Subsidiaries.

 

10.     Voting
Rights; Payment of Dividends.  While the
Restriction is in effect, the Employee shall be entitled to vote the Shares
granted hereunder and shall be entitled to receive dividends paid on Shares to
the same extent and on the same date paid to the Company’s shareholders.

 

11.     Compliance
with Applicable Laws and Regulations. 
Notwithstanding any other provision of the Program or this Agreement to
the contrary, the Company shall not be required to issue or deliver any Shares
pursuant to Section 3, 4, or 5 above pending compliance with all
applicable federal and state securities and other laws (including any
registration requirements or tax withholding requirements) and compliance with
the rules and practices of any stock exchange upon which the Company’s
Shares are listed.

 

12.     Data
Privacy.  This grant of Shares shall be
interpreted to effect the original intent of the Company as closely as possible
to the fullest extent permitted by applicable law (including, without
limitation, any laws governing data privacy). 
If any condition or provision of this grant is invalid, illegal, or
incapable of being enforced under any applicable law or regulation governing
data privacy, including the privacy laws and regulations of the European
Economic Area, all other conditions and provisions of the Shares shall
nevertheless remain in full force and effect. 
By accepting this grant, the Employee voluntarily and unambiguously
acknowledges and consents to the collection, use, processing and transfer of
Personal Data (defined below) as described in this paragraph, in electronic or
other form.  The Employee is not obliged
to consent to such collection, use, processing and transfer of Personal
Data.  However, failure to provide the
consent may affect the Employee’s ability to participate in the Program.  The Employee understands that the Company and
its Subsidiaries hold certain personal information about the Employee,
including, but not limited to, the Employee’s name, home address and telephone
number, date of birth, social security number or other employee identification
number, salary, nationality, job title, the number of Shares (if any) owned by
the Employee, whether the Employee is a member of the Board of Directors of the
Company or of any of its Subsidiaries, details of all stock options or any
other entitlement to Shares awarded, canceled, purchased, vested, unvested or outstanding
in the 

 

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Employee’s favor for the purpose of managing
and administering the Program or this grant (collectively “Personal Data”).  The Employee understands that the Company and
its Subsidiaries will transfer Personal Data amongst themselves as necessary
for the purpose of implementation, administration and management of the
Employee’s participation in the Program, and the Company and/or any of its
Subsidiaries may each further transfer Personal Data to any third parties
assisting the Company in the implementation, administration and management of
the Program, including UBS or such other stock plan service provider as may be
selected by the Company in the future. 
These recipients may be located in the European Economic Area, or
elsewhere throughout the world, such as the United States and the recipients’
country (e.g., the United States) may have different data privacy laws and
protections than the Employee’s country. 
The Employee understands that the Employee may request a list with the
names and addresses of any potential recipients of the Personal Data by
contacting the local human resources representatives.  The Employee hereby authorizes the Company
and its Subsidiaries to receive, possess, use, retain and transfer the Personal
Data, in electronic or other form, for the purposes of implementing,
administering and managing the Employee’s participation in the Program,
including any transfer of such Personal Data as may be required for the administration
of the Program and/or the subsequent holding of Shares on the Employee’s behalf
to a broker or other third party with whom the Employee may elect to deposit
any Shares acquired pursuant to the Program. 
The Employee understands that Personal Data will be held only as long as
is necessary to implement, administer and manage the Employee’s participation
in the Program.  The Employee may, at any
time, review Personal Data, request additional information about the storage
and processing of Personal Data, and require any necessary amendments to
it.  The Employee may, at any time,
withdraw the consents herein, in any case without cost, in writing by
contacting the Company; however, withdrawing the Employee’s consent may affect
the Employee’s ability to participate in the Program.

 

13.     Succession.  This Agreement shall be binding upon and
operate for the benefit of the Company and its successors and assigns, and the
Employee and the Employee’s Representative.

 

14.     Section 409A.  To the extent
applicable, it is intended that this Agreement comply with, or be exempt
from, the provisions of Code Section 409A. 
The Agreement will be administered and interpreted in a manner
consistent with this intent, and any provision that would cause the Agreement
to fail to satisfy Code Section 409A will have no force and effect until
amended to comply therewith (which amendment may be retroactive to the extent
permitted by Code Section 409A). 
Notwithstanding anything contained herein to the contrary, for all
purposes of this Agreement, the Employee shall not be deemed to have had a
termination of service unless the Employee has incurred a separation from
service as defined in Treasury Regulation §1.409A-1(h) and, to the extent
required to avoid accelerated taxation and/or tax penalties under Code Section 409A
and applicable guidance issued thereunder, amounts that would otherwise be
payable pursuant to the Agreement during the six-month period immediately
following the Employee’s termination of service (including retirement) shall
instead be paid 

 

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on the first business day after the date that is
six months following the Employee’s termination of service (or upon the
Employee’s death, if earlier).  For purposes
of this Agreement, “disability” shall mean, as of a particular date, the
Employee is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than twelve months, eligible to receive
income replacement benefits under the terms of the Abbott Laboratories Extended
Disability Plan (“EDP”) or, for an Employee whose employer does not participate
in the EDP, such similar accident and health plan, providing income replacement
benefits, in which the Employee’s employer participates, for a period of at
least six months.

 

15.     Severability.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, and each other provision of the
Agreement shall be severable and enforceable to the extent permitted by
law.  To the extent a court or tribunal
of competent jurisdiction determines that any provision of this Agreement is
invalid or unenforceable, in whole or in part, the Company, in its sole
discretion, shall have the power and authority to revise or strike such
provision to the minimum extent necessary to make it valid and enforceable to
the full extent permitted under local law.

 

16.     Governing Law. 
This Agreement shall be governed by and construed in accordance with the
laws of the State of Illinois without giving effect to the conflict of laws
principles thereof.

 

IN WITNESS
WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer as of the grant date above set forth.

 

 

	
   

  	
   

  	
  ABBOTT LABORATORIES

  
	
   

  	
   

  
	
   

  	
  By

  	
  

  
	
   

  	
   

  
	
   

  	
   

  	
  Miles D. White

  
	
   

  	
   

  	
  Chairman and Chief Executive Officer

  
				

 

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