Document:

Form of Stock Option Agreement

 Exhibit 10.1 
  
 TERMS AND CONDITIONS 
 EXECUTIVE STOCK OPTION 
 NORTHERN TRUST CORPORATION 2002 STOCK PLAN 
 GRANT DATE:                 , 200    

  
 1. Governing Documents. Your stock option grant is
subject to the provisions of the Northern Trust Corporation 2002 Stock Plan (the “Plan”) and the stock option notice (the “Option Notice”). Your stock option grant is also subject to the “Addendum to Award Agreements under
the Plan,” which Addendum shall be deemed to be an integral part of these Terms and Conditions. The Option Notice and these Terms and Conditions constitute the “Stock Option Agreement” as defined in the Plan. If there is any conflict
between the information in the Stock Option Agreement and the Plan, the Plan will govern. These Terms and Conditions apply to non-qualified stock options and incentive stock options issued under the Plan. 
  
 2. Amendments. The Compensation and Benefits Committee of the Board of
Directors (the “Committee”) may amend the terms of the Plan or the Stock Option Agreement at any time, except that any amendment that adversely affects your rights in any material way requires your written consent. 
  
 3. Exercise Limitations. Your stock option is exercisable from and after
the vesting date(s) set forth on the Option Notice until the ten (10)-year anniversary of the date the option was granted (the “Expiration Date”), except as provided below: 
  

	 	•	 	Change in Control. Your stock option (whether vested or unvested) becomes vested and exercisable from and after the date of a “Change in Control” of the
Corporation as defined in the Plan. Please see “Other Termination of Employment” below for additional provisions relating to a “Change in Control.” 

  

	 	•	 	Death. If you die while employed, your stock option (whether vested or unvested) becomes vested and exercisable as of the date of your death and may be exercised by
your beneficiary at any time until the earlier of (a) five (5) years following your death and (b) the Expiration Date. If you do not name a beneficiary (or your beneficiary dies before you), your stock option will pass to the following persons in
the order indicated: 

  

	 	•	 	Your spouse; if none, then, 

  

	 	•	 	Your children (in equal amounts); if none, then, 

  

	 	•	 	Your parents (in equal amounts); if none, then, 

  

	 	•	 	Your brothers and sisters (in equal amounts); if none, then, 

  

	 	•	 	Your estate. 

  

	 	•	 	 Retirement. If you retire, your stock option continues to vest in accordance with its terms, and, once vested, it may be exercised at any time until
the earlier of (a) 

 
five (5) years following the effective date of your retirement and (b) the Expiration Date. You should be aware that an unexercised incentive stock option
automatically converts into a non-qualified stock option three (3) months after termination of employment due to retirement. The terms “retire” and “retirement” mean retirement occurring by reason of your having qualified for a
Normal, Early, or Postponed Retirement Pension under The Northern Trust Company Pension Plan. 
  

	 	•	 	Disability. If you become disabled while employed, your stock option (whether vested or unvested) becomes vested and exercisable upon your disability and may be
exercised at any time until the earlier of (a) five (5) years following your disability, and (b) the Expiration Date. The terms “disabled” and “disability” mean that you have been receiving short-term and long-term disability
benefits under Northern Trust’s Managed Disability Program for twelve (12) consecutive months, at which date you are terminated from the Plan. You should be aware that an unexercised incentive stock option may automatically convert into a
non-qualified stock option three months after termination from the Plan due to disability pursuant to the applicable provisions of the Internal Revenue Code relating to incentive stock options. 

  

	 	•	 	Severance. If your employment is terminated under circumstances that entitle you to severance benefits under the Northern Trust Corporation Severance Plan (the
“Severance Plan”), and you have executed and not revoked a settlement agreement, waiver and release under the Severance Plan (a “Release”), your stock option (whether vested or unvested) becomes vested and exercisable as of the
date of your termination of employment and may be exercised at any time until the earlier of (a) one-hundred and eighty (180) days following your termination of employment under the Severance Plan and (b) the Expiration Date. If you are eligible for
a Normal, Early, or Postponed Pension Retirement Pension upon termination of employment under the Severance Plan, your stock option (whether vested or unvested) becomes vested and exercisable as of the date of your termination of employment and may
be exercised at any time until the earlier of (a) five (5) years following the effective date of your retirement and (b) the Expiration Date. You should be aware that an unexercised incentive stock option automatically converts into a non-qualified
stock option three (3) months after termination of employment. 

  

	 	•	 	Special Circumstances. If (a) on the date of grant, you are a Management Committee member, and (b) on the date of your termination of employment, you are age 55 or
older and have a minimum of 10 years of employment with the Corporation or its subsidiaries, then your stock option continues to vest in accordance with its terms, and, once vested, it may be exercised at any time until the earlier of (i) five (5)
years following the date of your termination of employment and (ii) the Expiration Date. 

  

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	 	•	 	Other Termination of Other Termination of Employment. Except as set forth below, if (a) your employment terminates for any reason other than death, retirement or a
severance under the Severance Plan for which you have executed and not revoked a Release, and (b) you are not terminated from the Plan due to disability pursuant to the “Disability” provisions described above, your stock option, if
vested as of the date of your termination of employment, may be exercised at any time until the earlier of (i) three (3) months following the date of your termination of employment and (ii) the Expiration Date. Your stock option, if
unvested as of the date of your termination of employment, expires as of the date of your termination of employment. A termination of employment shall not be deemed to occur by reason of your transfer between the Corporation and a subsidiary
of the Corporation or between two subsidiaries of the Corporation. The post-termination exercise provision of this sub-paragraph shall apply to you if you become a consultant to the Corporation or a subsidiary of the Corporation upon termination of
your employment from the Corporation or a Subsidiary of the Corporation. Notwithstanding the foregoing, if, within the two-year period following a Change in Control, (A) your employment by the Corporation or a subsidiary of the Corporation is
terminated for any reason other than death, retirement or a severance under the Severance Plan for which you have executed and not revoked a Release, and (B) you are not terminated from the Plan due to disability pursuant to the
“Disability” provisions described above, then (except as may otherwise be specified in an Employment Security Agreement between you and the Corporation), your stock option may be exercised at any time until the earlier of (I) six (6)
months following the date of your termination of employment, and (II) the Expiration Date. 

  
 4. Re-Employment. If, after your termination of employment, you are re-employed by the Corporation or one of its subsidiaries, upon your return you will be considered a new hire. Options that
previously expired upon your termination of employment remain expired and are not reinstated. 
  
 5. Exercise of Options. 
  

	 	•	 	How to Exercise. You may exercise your stock option by contacting Retirement Passport through the H.R. Service Center at (800) 807-0302. For inquiry or modeling, you
can use Your Benefits Resources online. You may access Your Benefits Resources online through the People Place on nside northern by selecting My Place followed by the Retirement and Stock Option Plans link. 

  

	 	•	 	Black-out Period. Due to federal securities law concerns, the Corporation has a “black-out” policy which restricts any exercise of your stock option around
quarterly corporate earnings announcements. Please refer to the “Statement of Confidential Information and Securities Trading” for further information about the Corporation’s black-out policy. You may access this document online
through nside northern. From the homepage click on Corporate, and then Corporate Policies. 

  

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 6. Nontransferability. Your stock option is not transferable other than as provided in these Terms
and Conditions, except that you, with the prior approval of the Committee, may transfer a non-qualified stock option (but not an incentive stock option) under certain circumstances and subject to the terms and conditions of the Plan and such limits
as the Committee may establish, and the transferee shall remain subject to all the terms and conditions applicable to the non-qualified stock option prior to the transfer. Your stock option (whether a non-qualified stock option or an incentive stock
option) is exercisable, during your lifetime, only by you or your personal representative. Additional written information regarding the mechanics and consequences of transferring a non-qualified stock option is available from the Corporate
Secretary. You should request and review this information prior to making a request to transfer a non-qualified stock option. 
  
 7. Delivery of Shares. Delivery of shares of common stock upon exercise of your stock option is subject to the withholding of all applicable taxes.
At your election, any withholding tax obligation shall be satisfied by the Corporation’s withholding of a portion of the shares otherwise distributable to you at a rate acceptable to the Corporation or by your delivery of previously acquired
shares that are “mature” (meaning that the shares have been held by you for more than six months) to the Corporation, up to the maximum federal rate. Payment of federal income taxes may be accomplished through a combination of withholding
of shares and delivery of previously acquired shares that are “mature.” If at any time the Corporation shall be advised by its counsel that the shares deliverable upon an exercise of the option must be accompanied or preceded by a
prospectus meeting the requirements of the Securities Act of 1933 or any State securities law, or that the Corporation must comply with the rules of any securities exchange on which its common stock is traded, the Corporation will use its reasonable
best efforts to deliver such prospectus and to comply with the rules of such securities exchange not later than a reasonable time following the exercise of the option, but the delivery of shares by the Corporation may be deferred until such
prospectus is available or the Corporation complies with the rules of such securities exchange. As an option holder, you have no interest in the shares covered by the option until the shares are actually issued. 
  
 8. No Contract of Employment. The option grant shall not be deemed to
obligate the Corporation or any of its subsidiaries to continue your employment for any particular period, nor is employment guaranteed for the length of the vesting schedule set forth in the Option Notice. 
  
 9. Taxes. Please refer to the “Summary Description of the Northern
Trust Corporation 2002 Stock Plan” for a description of the U.S. federal income tax consequences affecting non-qualified stock options and incentive stock options. 
  
 10. Applicable Law. All questions pertaining to the validity, construction and administration of the Plan and the stock
option grants to which the Option Notice and these Terms and Conditions apply shall be determined in conformity with the laws of the State of Illinois, without regard to the conflict of law provisions of any state. 
  

 -4-Form of Stock Award Agreement

 Exhibit 10.2 
  
 STOCK AWARD AGREEMENT UNDER THE 
 NORTHERN TRUST CORPORATION 2002 STOCK PLAN 
  
 This Agreement is entered into as of the      day of                     ,
200    , between Northern Trust Corporation (“Northern”) and                     
(“Participant”). 
  
 The Northern Trust Corporation 2002 Stock Plan
(“Plan”) provides, in Section 9 of the Plan, for the granting of Stock Awards to participating employees of Northern or its Subsidiaries (collectively, the “Corporation”), as approved by the Compensation and Benefits Committee
(“Committee”) of the Board of Directors of Northern. 
  
 In exercise of
its discretion under the Plan, the Committee has determined that the Participant should participate in the Plan and receive a Stock Award under Section 9 of the Plan, and, accordingly, Northern and the Participant hereby agree as follows:

  

	1.	Grant. Northern hereby grants to the Participant a Stock Award of _____ shares of Common Stock (the “Stock Award Shares”), subject to the terms and conditions of
the Plan and this Agreement. A Stock Award is the right, subject to the terms and conditions of the Plan and this Agreement, to receive a distribution of the Stock Award Shares pursuant to Paragraph 6 of this Agreement. 

  

	2.	Forfeiture. The Stock Award Shares granted to the Participant pursuant to this Agreement shall be forfeited and revert to Northern if prior to the date on which the Stock
Award Shares vest pursuant to Paragraph 5 of this Agreement, (i) the Participant violates the non-competition provision of Paragraph 7 of this Agreement, or (ii) except as described in Paragraph 5 of this Agreement, the Participant’s employment
with the Corporation terminates. 

  

	3.	Stock Certificates. Certificates of the Stock Award Shares shall be issued in the Participant’s name and shall be held by the Secretary of Northern until such time as:
(i) the Stock Award Shares are forfeited, or (ii) the Stock Award Shares vest. 

  

	4.	Rights as Stockholder. The Participant shall be entitled to the right of a stockholder, with respect to the Stock Award Shares, to vote such Stock Award Shares. Northern
shall maintain an account (“Account”) for the Participant which shall reflect the cash balance of any dividends and other distributions paid by Northern with respect to such Stock Award Shares, as increased by application of any interest
factors as may be determined by the Committee, that the Participant is eligible to receive in distribution pursuant to Paragraph 5. 

  

	5.	Vesting. The Participant’s Stock Award Shares and the portion of the Account attributable to the Stock Award Shares shall become vested in accordance with the vesting
schedule attached as Exhibit A to this Agreement, subject to (i) earlier prorated vesting in accordance with Paragraph 8 of this Agreement upon the Participant’s death, Retirement or Disability (each as defined below), (ii) earlier full
vesting in the event of a Change in Control of Northern (as defined in the Plan), or (iii) a determination by the Committee in its sole discretion that earlier prorated or full vesting is appropriate. If the Participant’s employment with the
Corporation 

 terminates for any reason other than as set forth above in this Paragraph 5, the Participant’s Stock
Award shares that have not yet vested shall be forfeited and revert to Northern on such termination date. Northern shall have no further obligation to the Participant under this Agreement following the Participant’s forfeiture of the Stock
Award Shares. 
  
 For purposes of this Agreement,
“Retirement” means retirement occurring by reason of the Participant having qualified for Normal, or Postponed Retirement under The Northern Trust Company Pension Plan. 
  
 For purposes of this Agreement, “Disability” means a disability that continues for a period of 12 months or more
as defined by Northern Trust’s Managed Disability Program. 
  

	6.	Distribution. Except as provided below in this Paragraph 6, the Participant shall become entitled to the distribution of the Participant’s Stock Award Shares and the
portion of the Account attributable to such Stock Award Shares on the Applicable Date(s) for the Stock Award Shares, and such distribution shall be made to the Participant as soon as practicable thereafter. 

  
 In the event of the Participant’s death, the Participant’s
beneficiary or beneficiaries shall become entitled to the distribution of the Participant’s Stock Award Shares and the portion of the Account attributable to such Stock Award Shares on the Applicable Date immediately after the
Participant’s death, and such distribution shall be made (i) as soon as practicable thereafter or on such other date designated by the Participant or the Participant’s beneficiary, but no later than two years after the death of the
Participant, and (ii) to such beneficiary or beneficiaries and in such proportions as the Participant may designate in writing, and in the absence of a designation, to the following persons in the order indicated below: 
  

	 	•	 	The Participant’s spouse; if none, then, 

  

	 	•	 	The Participant’s children (in equal amounts); if none, then, 

  

	 	•	 	The Participant’s parents (in equal amounts); if none, then, 

  

	 	•	 	The Participant’s brothers and sisters (in equal amounts); if none, then, 

  

	 	•	 	The Participant’s estate. 

  
 In the event of the Participant’s Retirement or Disability, the Participant shall become entitled to the distribution of the Participant’s Stock
Award Shares and the portion of the Account attributable to such Stock Award Shares Account on the Applicable Date immediately after the Participant’s Retirement or Disability. 
  
 No distribution shall be made prior to the first date when the Stock Award Shares and the portion of the Account
attributable to such Shares may be distributed to the Participant without penalty or forfeiture under federal or state laws or regulations governing short-swing trading of securities. In determining whether a distribution would result in such a
penalty or forfeiture, Northern may rely upon information reasonably available to it or upon representations of the Participant’s legal or personal representative. 
  

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 For purposes of this Agreement, “Applicable Date” means the first trading day following the
corresponding vesting date under Paragraph 5 on which Northern’s trading blackout is not in effect for the Participant, or such other date as the Committee or the Executive Vice President of Human Resources may determine. 
  

	7.	Restricted Activity. Despite anything to the contrary in Paragraph 5 or 6 of this Agreement, the Participant’s Stock Award Shares and the portion of the Account
attributable to such Stock Award Shares that have not yet vested shall be forfeited and Northern shall have no obligation to distribute the Stock Award Shares and the portion of the Account attributable to such Stock Award Shares to the Participant
(or the Participant’s beneficiary) pursuant to Paragraph 6, if the Participant, at any time since the date of this Agreement, has engaged as an employee, owner (other than as holder or beneficial owner of less than 10% of the outstanding shares
of any corporation the shares of which are publicly traded), consultant, or otherwise, without the written consent of Northern, in any line of business which is the same as any line of business then carried on by the Corporation, unless as an
employee, consultant or agent of the Corporation. A consent must be requested in advance in writing by the Participant and may be given upon authorization of the Committee and be subject to such terms and conditions as the Committee shall deem
advisable. If the Participant shall have so engaged in any such business without such written consent, the Participant’s Stock Award Shares and the portion of the Account attributable to such Stock Award Shares that have not yet vested shall be
forfeited by Northern by notice in writing to the Participant at any time within the thirty-day period following the date that the Corporation acquires knowledge of the Participant’s violation of this non-competition provision.

  

	8.	Proration. The Participant shall cease to participate in the Plan under this Agreement as of the date of the Participant’s death, Disability or Retirement. If the
Participant’s death, Disability or Retirement occurs prior to the end of the vesting period (the “Vesting Period”) on the vesting schedule attached as Exhibit A to this Agreement, the Participant shall have credited, and be
deemed vested in, a number of Stock Award Shares and the portion of the Account attributable to such Stock Award Shares as determined by multiplying the number of Stock Award Shares which would have been distributable to the Participant and the
portion of the Account attributable to such Stock Award Shares which would have been credited to the Participant’s Account if the Participant had participated in the Plan under this Agreement for the full Vesting Period, by the ratio of the
number of full calendar months of the Participant’s participation during the Vesting Period to the number of full calendar months during the Vesting Period. The interest factor to be used in making this determination shall be the interest
factor in effect at the time of death, Disability or Retirement, as the case may be. 

  

	9.	Delivery of Certificates. Despite the provisions of Paragraph 3, 5 and 6, Northern shall not be required to issue or deliver any certificates for shares of Common Stock
pending compliance with applicable federal and state securities laws (including any registration required) and compliance with applicable stock exchange rules and practices. Northern shall use its reasonable efforts to cause compliance with those
laws, rules and practices. 

  

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	10.	No Right to Employment. Nothing in the Plan or this Agreement shall be construed as creating any right in the Participant to continued employment or as altering or amending
the existing terms and conditions of employment of the Participant except as otherwise specifically provided in this Agreement. 

  

	11.	Nontransferability. No interest hereunder of the Participant is transferable except as provided in this Agreement. 

  

	12.	Withholding. Northern shall have the right to deduct from any distribution made hereunder in cash any sum required to be withheld by Northern for federal, state or local
taxes. In the case of any distribution made hereunder in shares of Common Stock, Northern requires as a condition of distribution that the Participant or the Participant’s beneficiary pay Northern the amount which Northern determines to be
required to be withheld for federal, state or local taxes. Unless the Participant otherwise elects, the tax withholding obligation with respect to the shares of Common Stock shall be satisfied by Northern’s withholding a portion of such shares
otherwise distributable to the Participant. The Participant may elect to satisfy the tax withholding obligation by the delivery to Northern of shares of Common Stock acceptable to the Corporation. Any shares withheld or delivered shall be valued at
their fair market value as of the date of withholding and delivery. 

  

	13.	Administration. The Plan is administered by the Committee. The rights of the Participant hereunder are expressly subject to the terms and conditions of the Plan (including
continued shareholder approval of the Plan), together with such guidelines as have been or may be adopted from time to time by the Committee. The Participant hereby acknowledges receipt of a copy of the Plan. 

  

	14.	Interpretation. Any interpretation by the Committee of the terms and conditions of the Plan, this Agreement or any guidelines shall be final. This Agreement shall be
construed under the laws of the State of Illinois. Capitalized terms not defined in this Agreement shall have the meanings assigned to them in the Plan. 

  

	15.	Sole Agreement. This Agreement, together with (a) the “Addendum to Award Agreements under the Plan” that is attached hereto and made an integral part hereof and (b)
the Plan, is the entire Agreement between the parties hereto, all prior oral and written representations being merged herein. No amendment or modification of the terms of this Agreement shall be binding on either party unless reduced to writing and
signed by the party to be bound. This Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective successors. 

  

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 IN WITNESS WHEREOF, the Participant and Northern Trust Corporation by its duly authorized officer have signed this
Agreement the day and year first written above. 
  

			
	 Northern Trust Corporation

		
	 By:
	 	  

	 Its:
	 	 Chairman and Chief Executive Officer

	
	  

	 Participant

  

 -5- 

 Exhibit A 
  

Your stock award will vest according to the following schedule: 
  

			
	 Vesting Date

	  	 Vesting Percentage

  

 A-1

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