Document:

Prepared by R.R. Donnelley Financial -- Amendment No. 4 to the Procurement Agreement

 CONFIDENTIAL 
  
 Exhibit 10.5 
  
 [CONFIDENTIAL TREATMENT REQUESTED] /*/ INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS
BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  
 AMENDMENT 4 
 To GENERAL AGREEMENT #20001130.2.C

 BETWEEN 
 AVICI SYSTEMS INC. AND
AT&T CORP. 
  
 This Amendment Number 4 (“Amendment” or Contract No.
20001130.2.A.4) is made effective on the 22nd day of September 2004 (the “Effective Date”) by and between Avici Systems Inc. (“Supplier”), a Delaware corporation, having a place of business at 101 Billerica Avenue, North
Billerica, MA 01862-1256 and AT&T Corp., (“Company”), a New York corporation, having a place of business at One AT&T Way, Bedminster, NJ 07921 to amend General Agreement #20001130.2.C dated December 21, 2000, as previously amended,
(“Agreement”) between Company and Supplier. 
  
 NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Company and Supplier agree as follows: 
  
 1. Replace “Exhibit F – Hardware, Software and Services, Pricing and Discounts”. 
  
 “Exhibit F – Hardware, Software and Services, Pricing and Discounts” is hereby deleted and replaced in its
entirety with the new “Exhibit F – Hardware, Software and Services, Pricing and Discounts”, which is attached hereto and made a part hereof. 
  
 2. Amend Date in Section 1.4 “Duration”. 
  
 The date “December 31, 2003” in Section 1.4 Duration is hereby deleted and replaced with the new date “December 31, 2009”. 

 
 3. Amend Contact Information in Section 1.5 “Notices”. 
  
 The contact information following the word “Attention” under both
Company and Supplier in Section 1.5 is hereby deleted and replaced with “General Counsel” under Supplier and “Scott Allan” under Company. The street address for Company is also hereby deleted and replaced with “One AT&T
Way.” 
  
 4. Amend DPM Numbers in Section 5.4 “Liquidated
Damages/Late Delivery/Cancellations” 
  
 The first
sentence in Section 5.4(a) is hereby deleted in its entirety and replaced with the following sentence: 
  
 “Supplier acknowledges that a Major Network Outage [CONFIDENTIAL TREATMENT REQUESTED] /*/will cause damage to Company in an amount impossible to ascertain at the time of this Agreement. 
  
 5. Delete Exhibit H, and replace with New Exhibit H1 “Release Planning Process”
and Exhibit H2 “Company Certification Process”. 
  
 “Exhibit H
– New Product Milestones” is hereby deleted and replaced in its entirety with the new “Exhibit H1 – Release Planning Process”, and “Exhibit H2 – Company Certification Process” which is attached hereto
and made a part hereof. 

 6. Amend 5.8.1 “New Product/Feature Delivery Requirements” and 5.8.1 (a) Value of New Product and Limitation
of Liability 
  
 Sections 5.8.1 and 5.8.1(a) are hereby
deleted in their entirety and replaced with the following two paragraphs: 
  
 “5.8.1 Supplier shall meet the new product / feature delivery milestones as may be agreed in accordance with the Release Commitment Letter (“RCL”) process set forth in Exhibits, H1 Release Planning Process and H2 Company
Certification Process, each attached hereto (“Milestones”) concerning the additions of new products, features or capabilities as defined in the RCL’s (“New Products”). The Parties agree that no more than [CONFIDENTIAL
TREATMENT REQUESTED] /*/committed New Products may be outstanding under such RCL’s in any [CONFIDENTIAL TREATMENT REQUESTED] /*/and further agree that for purposes of this Article the value (“Value”) of each New Product is deemed to
be [CONFIDENTIAL TREATMENT REQUESTED] /*/per New Product. This section or the RCL are not intended to be a commitment by Company to purchase any New Product. 
  
 In the event Supplier fails to deliver applicable New Products by such Milestones, or within [CONFIDENTIAL TREATMENT REQUESTED] /*/thereafter (“Cure Period”),
substantially in conformance, as subsequently verified by Company, with the functionality set out in the applicable specifications identified in the applicable RCL, Company may invoke the following remedy as its remedy for such failure to deliver:

  

	 	(a)	If Supplier has not delivered the substantially conforming New Product(s), as subsequently verified by Company, for each [CONFIDENTIAL TREATMENT REQUESTED] /*/such delivery of New
Product is delayed after the close of the Cure Period, Supplier will pay to [CONFIDENTIAL TREATMENT REQUESTED] /*/of the Value of the affected New Product(s) not being delivered, [CONFIDENTIAL TREATMENT REQUESTED] /*/, not to exceed [CONFIDENTIAL
TREATMENT REQUESTED] /*/for up to a [CONFIDENTIAL TREATMENT REQUESTED] /*/which has been mutually agreed to, provided that the total aggregate cap on such late delivery remedy shall be [CONFIDENTIAL TREATMENT REQUESTED] /*/ in any calendar year
without regard to number of New Products committed. It is agreed that such sum shall be deemed to represent, without further proof, damages actually sustained by Company by reason of such delay, and not a penalty. 

  
 7. Amend Number of Training Days in Section 6.2 “Training”. 
  
 The number [CONFIDENTIAL TREATMENT REQUESTED] /*/in Section 6.2 Training is
hereby deleted and replaced with [CONFIDENTIAL TREATMENT REQUESTED] /*/. 
  
 8.
Add New Clause 1.7 entitled “eProcurement Credit” 
  
 If
Company places an order of [CONFIDENTIAL TREATMENT REQUESTED] /*/ net of all discounts, during the period commencing on or after July 1, 2004 but no later than December 31, 2004, then Supplier shall provide [CONFIDENTIAL TREATMENT
REQUESTED] /*/. 
  
 9. Add New Exhibit I entitled “Network Security
Clauses”  
  
 Is hereby added as Exhibit I. 

 

 - 2 - 

 IN WITNESS WHEREOF, the Supplier and Company have caused this Amendment to be executed by their duly authorized
representatives identified below. 
  

			
	AVICI SYSTEMS INC.	  	AT&T CORP.
	 /s/ Steven B. Kaufman

 (Signature)
	  	 /s/ Stephen M. Brazzell

 (Signature)

		
	 Steven B. Kaufman

 (Name Print)
	  	 Stephen M. Brazzell

 (Name Print)

		
	 President, CEO

 (Title)
	  	 VP-Corporate Services

 (Title)

		
	 September 22, 2004

 (Date)
	  	 September 22, 2004

 (Date)

  

 - 3 - 

 EXHIBIT F 
  

HARDWARE, SOFTWARE AND SERVICES, PRICING AND DISCOUNTS 
  

Product Discount: 
  
 [CONFIDENTIAL TREATMENT REQUESTED] /*/. 
  

 - 4 - 

 EXHIBIT H1 
 RELEASE PLANNING PROCESS 
  
 Supplier and
Company agree to follow the Release Planning and Feature Request Process (the “Process”) as outlined in this Exhibit XX for the purpose of Supplier delivery and Company testing of all
             Deliverables. The implementation of this Process will benefit both parties through continued communication, timely delivery of
             Deliverables, and solid focus on quality improvements. This Exhibit H1 provides a general framework for the Process that may be later customized by the parties.
Upon execution of the Agreement, Supplier and Company will designate appropriate representatives to support this Process. 
  
 “Release Planning” is [CONFIDENTIAL TREATMENT REQUESTED] /*/. 
  

 - 5 - 

 EXHIBIT H2 
 COMPANY CERTIFICATION PROCESS 
  
 This
Exhibit, Company Certification Process, is hereby attached to and made a part of this Agreement and shall document the process used by Company (and supported by Supplier) to test and certify Supplier’s Deliverable. 
  
 [CONFIDENTIAL TREATMENT REQUESTED] /*/ 
  

 - 6 - 

 EXHIBIT I 
 ADDITIONAL INFORMATION SECURITY REQUIREMENTS 
  
 In addition to the clause(s) listed in General Agreement Number 20001130.2.C, dated December 21, 2000 and its corresponding Amendments, set forth below are the minimum information security
requirements that Supplier, at its sole cost and expense, shall implement to protect the confidentiality, integrity, and availability of AT&T Information under this Agreement. 
  
 AT&T may, at its sole discretion, from time to time supplement these security requirements with
additional security requirements. 
  
 Supplier
shall: 
  
 A. Establish, implement, and document security policies, processes,
and procedures (“Security Policies and Procedures”) in accordance with commercial industry standards. Supplier shall provide copies of such Security Policies and Procedures to AT&T upon AT&T’s request. AT&T may review and
recommend reasonable changes, and Supplier shall amend its Security Policies and Procedures in accordance with such recommendations. Neither such review, nor any such recommendations, shall constitute an AT&T validation or endorsement of
Supplier’s Security Policies and Procedures, and Supplier shall bear sole responsibility for its Security Policies and Procedures. 
  
 B. Permit AT&T and/or its designated agent(s) to perform, at the expense of AT&T, up to two (2) security assessments per year that shall include, but not be
limited to: the review of Security Policies and Procedures; on-site assessment of physical security arrangements; network, system, and application vulnerability scanning; and penetration testing. Such assessments will be conducted at a time mutually
agreed upon between the parties. AT&T will provide Supplier with a copy of its security assessment results, and the parties agree to meet in good faith within thirty (30) days from delivery of the assessment to resolve any deficiencies
identified and implement agreed upon corrections within sixty (60) days of such meeting. 
  
 C. Upon expiration or termination of the Services, Work and/or this Agreement or at any time upon request of AT&T, provide AT&T with original and all copies of (i) all AT&T Information provided by AT&T
to, or maintained by, Supplier under this Agreement and (ii) all backup and archival media containing AT&T Information. Supplier shall use mutually agreed data destruction processes to eliminate all AT&T Information from the Supplier’s
systems and applications within 30 days of such expiration or termination or AT&T request. Supplier shall provide AT&T with written certification of the destruction of AT&T Information in accordance with such processes.

  
 D. Upon termination of Supplier’s employees or agents and/or termination
or expiration of the Services, Work and/or this Agreement, or at any time upon request of AT&T, Supplier shall immediately remove all unnecessary user and system accounts and access to such accounts (e.g., Systems IDs, PINs, access codes) from
each system used by Supplier to provide Services or Work under this Agreement. Additionally, Supplier shall manage an inventory of all System IDs, PINs, access codes, etc. (“System IDs”) issued to Supplier’s employees and agents, and
shall immediately delete any such System IDs when a Supplier employee or agent resigns, is terminated, or is no longer performing Services or Work for AT&T under this Agreement (notwithstanding that such employee or agent has transferred to
another non-Agreement work assignment for AT&T). 
  
 E. Initiate and maintain
strict building security for facilities owned, operated, or contracted by Supplier for the protection of AT&T Information while in Supplier’s control, including maintaining secure facilities for all workstations, servers, network equipment,
etc. used to provide Services under this Agreement, and shall limit access to operating areas, systems and information to those with a need for such access. When database/system storage is required to maintain all AT&T Information including, but
not limited to, backup and archival media, Supplier shall store such AT&T Information generated or received in the performance of Services in a secure database/system environmentally controlled storage areas owned, operated, or contracted for by
Supplier. 
  
 F. Maintain and update anti-virus software and malicious code
detection and protection product(s) at the latest available software and signature levels and run on a real-time or daily basis to prevent potential interruptions to the production applications (e.g., workstations, servers and network equipment)
used to provide Services under this 
  

 - 7 - 

 Agreement. Supplier shall immediately advise AT&T, either verbally or in writing (in a format approved or
provided by AT&T), upon reasonable suspicion or actual knowledge that a virus or other malicious code is present in Supplier’s systems and/or software which could affect the Services or damage, destroy, reveal or alter AT&T’s
information in any manner. 
  
 G. In the event of a security incident, including
but not limited to a computer security incident (e.g., hacker or attempted hacker activity or the introduction or attempted introduction of a virus or malicious code) involving the networks, systems, or applications used to provide Services or Work
under this Agreement, Supplier shall, in addition to providing AT&T with immediate notice, provide AT&T (i) with regular status updates including but not limited to actions taken to resolve the incident at mutually agreed intervals or times
for the duration of the incident, and (ii) within ten business days of the closure of the incident, a written report describing the incident, actions taken by Supplier during its response thereto, and Supplier’s plans for future actions to
prevent a similar incident from occurring in the future. For the purposes of sections (D) and (F) above and this section (G), all forms of the word “immediate” shall mean as soon as possible but in no event longer than 24 hours from, as
applicable, Supplier’s formation of a reasonable suspicion or having actual knowledge, or Supplier’s discovery of a security incident; and 
  
 H. For each system used to provide Services or Work under this Agreement, provide to AT&T upon request the security logs and other documentation related to material
security incidents, vulnerabilities and threats. 
  

 - 8 -Form of Award Agreement for NFS 1996 Long-Term Equity Compensation Plan

 Exhibit 10.1 
  
 THIRD AMENDED AND RESTATED 
 NATIONWIDE FINANCIAL SERVICES, INC. 
 1996 LONG-TERM EQUITY COMPENSATION PLAN 
  
 NVA Target Award Opportunity 
 And Stock Option Award 
  

			
	 	  	                                        
                                        
                                        
                                        
             Date

	 Name
	  	 
	 Address
	  	 
	 Address
	  	 

  
 Dear Name: 

 
 Congratulations on your selection as a Participant in the Third Amended
and Restated Nationwide Financial Services, Inc. 1996 Long-Term Equity Compensation Plan (the “Plan”) and your receipt under the Plan of an NVA Target Award Opportunity and a Stock Option Award. 
  
 This agreement, which includes Annexes A and B hereto (the “Award
Agreement”), together with the Plan (available on the Human Resources/Executive Performance and Rewards Services Website), provides a complete detail of your rights with respect to your NVA Target Award Opportunity and your Stock Option Award.
If there is any inconsistency between the terms of this agreement and the terms of the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement. All capitalized terms used in this Award Agreement
have the same meaning as in the Plan, unless otherwise defined in this Award Agreement. 
  
 You are being asked to read and understand your rights under the Plan, this Award Agreement (including Annex A and B attached), and the terms and conditions which may limit your rights under your Award Opportunities.

  
 Please sign and return the attached signature page as acceptance of your
participation in the Plan by [date], 2004. 

 Following are the key terms of your NVA Target Award Opportunity and your Stock Option Award: 

 

			
	 NVA Target Award Opportunity

	  	 Stock Option Award

		
	 NVA Performance Period:
	  	Option Type: [Incentive] [Non-Qualified]
		
	 Target NVA Award:* $
	  	Date of Grant:             , 200    
		
	 	  	Number of Shares:                     
		
	 	  	Exercise Price: $             per share
		
	 	  	Option Term:

	*	 This is the amount that will be credited to your “NVA Award Bank” (described in Annex A) if target levels of NVA (described in Annex A) performance
are achieved over the NVA Performance Period. As described in Annex A hereto, your NVA Award Bank will be credited (or debited) based on actual NVA performance and there is no guaranty that the Target NVA Award will be achieved.

	**	 As described in Annex B hereto, your Stock Option Award may expire sooner if your employment terminates. 

  
 Further terms and conditions applicable to your NVA Target Award Opportunity
and Stock Option Award are set forth in the Plan and Annexes A and B hereto, each of which is an integral part of this Award/Opportunity Agreement. 
  
 Please refer any questions you may have regarding your NVA Target Award Opportunity or Stock Option Award to Linda Enderle, Director, Performance &
Rewards Administration at (614) 677-5527. Once again, congratulations on receipt of your NVA Target Award Opportunity and Stock Option Award. 
  
 Sincerely, 
  
 Nationwide Financial Services, Inc. 
  
 Terri L. Hill 
 Executive Vice President-Chief Administrative Officer 

 Please acknowledge your agreement to participate in the Plan, to accept your NVA Target Award Opportunity
and Stock Option Award, and to abide by all of the governing terms and conditions of the Plan and this Award Agreement, by signing the following representation: 
  
 Agreement to Participate 
  
 By signing a copy of this Award Agreement and returning it to Linda Enderle, Performance & Rewards
Administration (1-26-11), I acknowledge that I have read the Plan and this Award Agreement (including Annexes A and B hereto), and that I fully understand all of my rights under the Plan and this Award Agreement (including Annexes A and B hereto),
as well as all of the terms and conditions which may limit my rights under my NVA Target Award Opportunity and my Stock Option Award. Without limiting the generality of the preceding sentence, I understand that my rights under my NVA Target Award
Opportunity and my Stock Option Award may be adversely affected if my employment terminates during the Performance Period. 
  

			
	
	  	

	 [Participant’s Name] (please print)
	  	 Participant’s Signature

  
 Please note: Sign
and return one copy of this Award Agreement to Linda Enderle, Performance & Rewards Administration (1-26-11) and retain one copy for your records. 

 ANNEX A 
  
 NVA Target Award Opportunity 
  
 It is understood and agreed that the NVA Target Award Opportunity evidenced by the Award Agreement to which this is annexed is subject to the following
additional terms and conditions. 
  

	1.	 Overview of Your NVA Target Award Opportunity. As described below, your NVA Target Award Opportunity provides you with an opportunity to have your NVA
Award Bank credited (or debited) based on the Enterprise’s NVA performance over the NVA Performance Period, and to receive a distribution equal to 1/3 of any positive balance in your NVA Award Bank after the close of the NVA Performance Period.

  

	 	a)	 NVA Award Bank. The Company will maintain a bookkeeping account in your name (your “NVA Award Bank”) and, based on the Enterprise’s NVA
performance over the NVA Performance Period, will credit (or debit) your NVA Award Bank as soon as practicable after the last day of the NVA Performance Period in accordance with the following formulas: 

  

	 	i)	 NIACC: 

  

												
	 NIACC
	  	=	  	50	%	 	x	  	Target	  	 x    [Actual Return Rate]
                         10%

  

	 	ii)	 CHANGE IN NIACC: 

  

												
	 CHANGE IN NIACC
	  	=     50	%	 	x	  	Target	  	x	  	 [1 + (3 x (change in NIACC)) - (.5% x Year-End Capital)]

	 	  	 	 	 	 	  	 	  	 	  	                                     Hurdle Net
Income

  

							
	 iii)     
	 	 “Actual Return Rate”
	  	=	  	 Adjusted GAAP Net Income

	 	 	 	  	 	  	 Average CapitalYear1

  

	 	iv)	 “Hurdle Net Income” = 10% x Average Capital Year1 

  
 You will be notified of the Enterprise’s NVA and NIACC performance as soon as practicable after the last day of the NVA Performance Period. 

	 	b)	 Determination of NVA Performance. NVA performance will be determined by the Committee based on the following metrics: 

  

	 	i)	 NIACC. NIACC is measured based on the incremental change in Enterprise value created by the current year’s economic results, as follows:

  
 NIACC = adjusted GAAP net income - [average
adjusted GAAP capital x 10%] 
  
 Target NIACC
performance is achieved if NIACC equals zero. 
  

	 	ii)	 CHANGE IN NIACC. Change in NIACC is measured based on the change in NIACC from one year to the next during the NVA Performance Period, as follows:

  
 Change in NIACC = NIACC Year1 - NIACC Year0 
  
 Target CHANGE IN
NIACC is achieved if CHANGE IN NIACC multiplied by three (3) equals one-half of one percent (0.5%) times the year-end capital. 
  

	 	c)	 Distribution. Subject to Section 2 below, you will receive a distribution in cash, in an equity vehicle consisting of Shares having a Fair Market Value
equal to such cash amount, or part in cash and part in an equity vehicle consisting of Shares (as determined by the Committee in its sole discretion) equal to 1/3 of any positive balance in your NVA Award Bank (less applicable tax withholding) as
soon as practicable after the Committee credits (or debits) your NVA Award Bank pursuant to subsection 1(a) above. 

  
 No distribution will be made if, after the credit (or debit) is made to your NVA Award Bank pursuant to subsection 1(a) above, your NVA
Award Bank has a negative balance; however, in no event will you be obligated to make a payment to the Company (or repay an amount previously distributed) because of a negative balance in your NVA Award Bank. 
  
 Your NVA Award Bank, reduced by any distribution made
pursuant to this subsection 1(c), will be carried forward and added to the next NVA Target Award Opportunity that you receive. 
  

	2.	 Termination. If your employment terminates prior to the last day of the NVA Performance Period, the Company’s obligation to make a contribution to
your NVA Award Bank pursuant to subsection 1(a) above and your right to receive a distribution pursuant to subsection 1(c) above shall be as follows: 

  

	 	a)	 Termination of Employment due to Death, Disability or Retirement. If your employment is terminated during the NVA Performance Period by reason of
your death, Disability or Retirement, a pro-rata award for the NVA 

 Performance Period will be credited (or debited) to your NVA Award Bank (as determined by
the Committee in its sole discretion) and 1/3 of any positive balance in your NVA Award Bank (less applicable tax withholding) will be distributed on or as soon as practicable after January 1, 2005. The remaining 2/3 positive balance, if any, in
your NVA Award Bank (less applicable tax withholding) will be distributed in equal amounts at the same time distributions are made to other participants in 2006 and 2007 following the close of the 2005 and 2006 NVA Performance Periods. However,
payment from the NVA Award Bank may be accelerated if your termination of employment is due to your death and the beneficiary of your Award is the your estate. The executor or other authorized representative of your estate may request acceleration
of the distribution method otherwise applicable pursuant to this Award Agreement. 
  

	 	b)	 Termination of Employment for Other Reasons. At the sole discretion of the Committee, upon your termination of employment by reason of dismissal
for the convenience of the Company or an Affiliate or your termination of employment (other than your Retirement) coincident with the receipt of benefits under a funded or unfunded retirement plan or arrangement of the Company or an Affiliate, the
Committee can make a prorated credit (or debit) to your NVA Award Bank and may allow you to receive a prorated distribution therefrom based on the portion of the NVA Performance Period that you were employed 

  

	3.	 Retirement. For purposes of your NVA Target Award Opportunity, “Retirement” shall mean termination of your employment with the Company on or
after the date on which you shall have: 

  

	 	a)	 Attained Normal Retirement Age; 

  

	 	b)	 Attained age 55 and completed 180 Months of Vesting Service; or 

  

	 	c)	 Attained age 62 and completed 60 Months of Vesting Service, whichever is earliest. 

  
 For purposes of this Section 3, Normal Retirement Age and
Months of Vesting Service shall have the meanings assigned to them in the Nationwide Retirement Plan. 
  

	4.	 Cause. For purposes of your NVA Target Award Opportunity, “Cause” shall mean (a) willful misconduct on your part that is materially detrimental
to the Company; or (b) your conviction of a felony or crime involving moral turpitude; provided, however, that if you have entered into an employment agreement that is binding as of the date of employment termination, and if such employment
agreement defines “Cause,” such definition of “Cause” shall apply. “Cause” under either (a) or (b) shall be determined in good faith by the Committee in its sole discretion. 

	5.	 Tax Withholding. The Company shall have the power and right to deduct or withhold, or require you to remit to the Company, an amount sufficient to satisfy
applicable federal, state, and local tax withholding obligations arising with respect to any payment associated with your NVA Target Award Opportunity. With respect to the minimum statutory tax withholding required in connection with the
distribution of any Shares under your NVA Target Award Opportunity, you may elect to satisfy such withholding requirement by having the Company withhold Shares in accordance with Section 17.2 of the Plan. In addition, Shares having a Fair Market
Value equal to the minimum statutory withholding (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes) that could be imposed on the transaction shall automatically be withheld from your NVA Target
Award Opportunity if and to the extent you fail to timely remit the Company an amount sufficient to satisfy (or fail to make arrangements with the Company for the timely satisfaction of) applicable tax withholding obligations.

  

	6.	 Deferrals. Subject to the terms and conditions of the Nationwide nonqualified deferred compensation plan in which you are eligible to participate, you may
elect to defer receipt of a portion of any award that you would otherwise receive under your NVA Target Award Opportunity. 

 ANNEX B 
  
 Stock Option Award 
  
 It is understood and agreed that the Stock Option Award evidenced by the Award Agreement to which this is annexed is subject to the following additional
terms and conditions. 
  

	1.	 Vesting and Exercise of Your Stock Option Award. Your Stock Option Award does not provide you with any rights or interest therein until it vests and
becomes exercisable. Your Stock Option Award will vest and become exercisable as follows: 

  

	a)	 [Percentage/ratio/amount] of your Stock Option Award shall become vested and exercisable on [each of the first, second, third] anniversarie(s) of the Date of
Grant, provided you have continued in the employment of the Company or an Affiliate through such anniversary dates; 

  

	b)	 Upon your termination of employment due to death, Disability or Retirement, any unvested portion of your Stock Option Award shall vest and become exercisable;
and 

  

	c)	 At the sole discretion of the Committee, upon your termination of employment by reason of dismissal for the convenience of the Company or an Affiliate or your
termination of employment (other than your Retirement) coincident with the receipt of benefits under a funded or unfunded retirement plan or arrangement of the Company or an Affiliate, any unvested portion of your Stock Option Award shall vest and
become exercisable. 

  

	2.	 How to Exercise. Your Stock Option Award may be exercised by written notice to the Company’s Performance & Rewards Administration department,
specifying the number of Shares you then desire to purchase, which may not be fewer than twenty-five (25), together with provision for payment of the Exercise Price. Subject to such limitations as the Committee may impose (including prohibition of
one or more of the following payment methods), payment of the Exercise Price may be made by (a) check payable to the order of Nationwide Financial Services, Inc., for an amount in United States dollars equal to the aggregate Exercise Price of such
Shares, (b) tendering to the Company Shares of Common Stock having an aggregate Fair Market Value (as of the trading date immediately preceding the date of exercise) equal to such Exercise Price, (c) broker-assisted exercise, or (d) a combination of
such methods. 

  
 As soon as
practicable after receipt of such written notification, payment of the Exercise Price and satisfaction of applicable tax withholding obligations, the Company shall issue or transfer to you the number of Shares with respect to which your Stock Option
Award is exercised and shall deliver to you a certificate or certificate thereof, registered in your name. 

	3.	 Who Can Exercise. During your lifetime, your Stock Option Award shall be exercisable only by you. Your Stock Option Award may not be transferred or
assigned except by will or the laws of descent and distribution. 

  

	4.	 Termination of Your Stock Option Award. If your employment terminates during the Option Term, any portion of your Stock Option Award that is not (and does
not become) vested and exercisable on the date your employment terminates shall immediately terminate and be of no force or effect. Any portion of your Stock Option Award that is (or becomes) vested and exercisable on the date your employment
terminates shall continue to be exercisable until your Stock Option Award terminates in accordance with the following: 

  

	 	a)	 If your employment terminates during the Option Term by reason of death or Disability, the vested portion of your Stock Option Award will terminate and have no
force or effect upon the earlier of one (1) year after the date of death or Disability or the expiration of the Option Term; 

  

	 	b)	 If your employment terminates during the Option Term by reason of Retirement, the vested portion of your Stock Option Award will terminate and have no force or
effect upon the earlier of five (5) years after the date of Retirement or the expiration of the Option Term; 

  

	 	c)	 If your employment terminates during the Option Term due to your dismissal for the convenience of the Company or an Affiliate, the vested portion of your Stock
Option Award will terminate and have no force or effect upon the earlier of three (3) months after the date of termination of employment (or such longer period as may be determined in the sole discretion of the Committee) or the expiration of the
Option Term; 

  

	 	d)	 If your employment terminates during the Option Term for any other reason, the vested portion of your Stock Option Award will terminate and have no force or
effect upon the earlier of three (3) months after the date of termination of employment or the expiration of the Option Term; and 

  

	 	e)	 If you continue in the employ of the Enterprise through the Option Term, the vested portion of your Stock Option Award will terminate and have no force or effect
upon the expiration of the Option Term. 

  

	5.	 Retirement. For purposes of this Stock Option Award, “Retirement” shall mean your termination of employment on or after the date on which you
shall have: 

  

	 	a)	 Attained Normal Retirement Age; 

  

	 	b)	 Attained age 55 and completed 180 Months of Vesting Service; or 

  

	 	c)	 Attained age 62 and completed 60 Months of Vesting Service, whichever is earliest. 

 For purposes of this Section 5, Normal Retirement Age and Months of Vesting Service shall
have the meanings assigned to them in the Nationwide Retirement Plan. 
  

	6.	 Cause. For purposes of this Stock Option Award, “Cause” shall mean (a) willful misconduct on your part that is materially detrimental to the
Company; or (b) your conviction of a felony or crime involving moral turpitude; provided, however, that if you have entered into an employment agreement that is binding as of the date of employment termination, and if such employment agreement
defines “Cause,” such definition of “Cause” shall apply. “Cause” under either (a) or (b) shall be determined in good faith by the Committee in its sole discretion. 

  

	7.	 Tax Withholding. The Company shall have the power and right to deduct or withhold, or require you to remit to the Company, an amount sufficient to satisfy
applicable deferral, state, and local taxes withholding obligations arising with respect to your Stock Option Award. With respect to the minimum statutory tax withholding required in connection with the exercise of your Stock Option Award, you may
elect to satisfy such withholding requirement by having the Company withhold Shares in accordance with Section 17.2 of the Plan. In addition, Shares having a Fair Market Value equal to the minimum statutory withholding (based on minimum statutory
withholding rates for federal and state tax purposes, including payroll taxes) that could be imposed shall automatically be withheld upon exercise of your Stock Option Award if and to the extent you fail to timely remit the Company an amount
sufficient to satisfy (or fail to make arrangements with the Company for the timely satisfaction of) applicable tax withholding obligations. 

  

	8.	 Deferral. Subject to the terms and conditions of the Nationwide nonqualified deferred compensation plan in which you are eligible to participate, you may
elect to defer receipt of a portion of any Shares that you would otherwise receive upon exercise of your Stock Option Award.

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