Document:

Form of Incentive Stock Option Award Notice

 Exhibit 10b1 
  

			
	 	 	NOTICE OF INCENTIVE
STOCK OPTION AWARD

  
 [Date] 
  

			
	 Company: (Company)
	  	Date(s) First Exercisable:
	 Date of Grant: [Date of Grant]
	  	 Number – [ 1/3 of
shares vest 1 yr. after grant date]

	 No. of Shares: (Number)
	  	 Number – [ 1/3 of
shares vest 2 yrs. after grant date]

	 Option Price per Share: [Exercise Price – fair market value of stock at Grant Date]
	  	 Number – [ 1/3 of
shares vest 3 yrs. after grant date]

  
 PERSONAL AND CONFIDENTIAL 
  
 (Name and Address) 
  
 Dear (Name): 
  
 We are pleased to inform you that as a key employee of the company referred to above you have been granted an Incentive Stock Option under
the Fortune Brands, Inc. 2003 Long-Term Incentive Plan, as amended (the “Plan”). 
  
 These options are granted under and governed by the Plan and the Incentive Stock Option Terms and Conditions (the “Terms”). For your information, we have attached to this notice the following documents: (1)
the Terms, (2) the Plan, (3) the Plan Prospectus, (4) the Prospectus Supplement and (5) Notice of Exercise of Stock Option and Notice of Exercise of Limited Right forms. You should review these documents carefully in order to fully understand how
your option operates and your rights as an option recipient. 
  
 Under the
terms of the 2003 Plan, you do not need to sign and return, or otherwise acknowledge your receiving, this notice. If you have any questions about your options, please contact Grace Cherico, Stock Plans Administrator, at (847) 484-4423.

  
 Sincerely yours, 
  

	
	FORTUNE BRANDS, INC.
	
	 /s/ Christopher J. Klein

	 Senior Vice President - Strategy
 and Corporate Development

  

  
 INCENTIVE STOCK OPTION

 TERMS AND CONDITIONS 
  
 As a participant in the 2003 Long-Term Incentive Plan (the Plan), you will be able to purchase shares of Common Stock of Fortune Brands, Inc. (Fortune). Subject to the
terms and conditions below, the minimum amount that may be purchased at any one time is 50 shares unless you have fewer remaining shares covered by your option. 
  

The date of the grant, the maximum number of shares the option entitles you to purchase, the option price per share and the date or dates on which the option will
ordinarily be first exercisable are listed at the top of your Notice of Incentive Stock Option Award. The option is intended (but not guaranteed) to be an incentive stock option within the meaning of Section 422 of the Internal Revenue Code.

  
 1. Exercise. 
  
 (a) Except as provided in this paragraph 1 and paragraphs 3, 4, 5 and 9, the
option shall be exercisable during the period beginning on the date or dates set forth under the heading “Date(s) First Exercisable” in the Notice of Incentive Stock Option Award and ending ten years from the date of grant (its expiration
date). During this period, the option is exercisable in whole or in part from time to time in amounts of not less than 50 shares (except that if you have fewer than 50 shares remaining covered by the option, the option may be exercised for the full
number of remaining shares). 
  
 (b) The option shall not become
exercisable unless you remain employed by Fortune or one of its subsidiaries for one year from the date of grant, except in the event of your death and except as provided in paragraph 9. 
  
 2. Transferability of Option. The option shall not be transferable by you except in the event of your death. During
your lifetime the option shall be exercisable only by you. 
  
 3.
Death. If your employment by Fortune or an entity in which Fortune has an equity interest terminates by reason of your death, the option may immediately be exercised in full and shall continue to be exercisable in full until its expiration
date. 
  
 4. Retirement. If your employment by Fortune or
an entity in which Fortune has an equity interest terminates by reason of disability or Retirement (as defined below), provided that you have remained in the employ of Fortune or an entity in which Fortune has an equity interest for one year from
the date of grant, the option shall become immediately exercisable in full and shall continue to be exercisable in full until its expiration date. For purposes of this paragraph, Retirement means either (a) termination of employment on or after
attaining age 55 and completion of at least ten years of service with Fortune or an entity in which Fortune has an equity interest, provided that Retirement shall not include termination of employment by reason of failure to maintain work
performance standards, violation of company policies or dishonesty or other misconduct prejudicial to the company, or (b) retirement under Section 3(b) of the Fortune Brands, Inc. Supplemental Plan. 
  

 5. Termination of Employment. If your employment by Fortune or a entity in which Fortune has an
equity interest terminates other than in the circumstances referred to in paragraphs 3 and 4, any portion of the option that is not yet exercisable shall not thereafter become exercisable and any portion of the option that is exercisable shall
terminate and cease to be exercisable three months from the date of your termination from employment, except as otherwise provided in paragraph 9; provided that in no event shall the option be exercisable after the expiration of ten years from the
date of grant. For the purpose of these terms and conditions, your employment by an entity in which Fortune has an equity interest shall be considered terminated on the date on Fortune sells or otherwise divests its equity interest in your employer.

  
 6. Stock Exchange Listing. Fortune is not obligated to
deliver any shares until they have been listed on each stock exchange on which Fortune’s common stock is listed and until Fortune is satisfied that all applicable laws and regulations have been met. Fortune agrees to use its best efforts to
list the shares and meet all legal requirements so that the shares can be delivered. No fractional shares will be delivered. 
  
 7. Transfer of Employment; Leave of Absence. For the purposes of your option, (a) if you transfer between Fortune and an entity in which Fortune
has an equity interest or from one entity in which Fortune has an equity interest to another entity in which Fortune has an equity interest, without an intervening period, it will not be considered a termination of employment, and (b) any leave of
absence granted in writing will not constitute an interruption in your employment. 
  
 8. Adjustments. 
  
 (a) In
the event of any merger, consolidation, stock or other non-cash dividend, extraordinary cash dividend, split-up, spin-off, combination or exchange of shares, reorganization or recapitalization or change in capitalization, or any other similar
corporate event, the number and kind of shares that are subject to the option and the option price per share immediately prior to such event may be proportionately and appropriately adjusted, without increase or decrease in the aggregate option
price. 
  
 (b) The determination of the committee of the Board of
Directors of Fortune administering the Plan (the Committee) as to the terms of any adjustment is binding and conclusive upon you and any other person who is entitled to exercise the option. 
  
 9. Change in Control of Fortune. 
  
 (a) In the event of a Change in Control (as defined in the attached Plan),
your option, if it is not then immediately exercisable in full and provided that it has not expired, shall become immediately exercisable in full and shall remain exercisable in full. In addition, under certain circumstances as described in Section
12(b) of the attached Plan, you may have the right to receive cash instead of exercising your option. This right, called a Limited Right, may be automatically exercised under certain circumstances described in the attached Plan. You will be informed
of any Change in Control. 
  
 (b) Notwithstanding paragraphs 1(b),
3, 4 and 5, the provisions of this paragraph 9(b) will be applicable in the event of a termination of your employment during the 60-day period following a Change in Control. Your option shall not terminate or cease 

  

 
to be exercisable as a result of the termination of your employment during this period, but shall be exercisable in full throughout it; provided, however,
that in no event shall your option be exercisable after ten years from its date of grant. However, in the event that on the date of termination you have not held your option for more than six (6) months, the preceding sentence shall apply only if
your employment has been terminated other than for just cause (as defined below) or you have voluntarily terminated your employment for certain reasons: (i) because you in good faith believe that as a result of the Change in Control you are unable
effectively to discharge your duties or the duties of the position you occupied immediately prior to the Change in Control, or (ii) because of a reduction in your aggregate compensation or in your aggregate benefits below that in effect immediately
prior to the Change in Control. For purposes of this paragraph, termination shall be for “just cause” only if it is based on fraud, misappropriation or embezzlement on your part which results in a final conviction of a felony. Nothing in
this paragraph 9(b) limits any rights otherwise provided in the event of your death, disability or Retirement (as defined in paragraph 4 above), or your right to exercise your option following a termination of employment as provided in paragraph 5.

  
 10. Stockholder Rights. Neither you nor any other
person shall have any rights of a stockholder as to shares under the option until, after proper exercise of the option, such shares shall have been recorded on Fortune’s official stockholder records as having been issued or transferred.

  
 11. Notice of Exercise. Subject to these terms and
conditions, the option may be exercised, by a written notice of exercise on a form approved by the Committee that (i) is signed by the person or persons exercising the option, (ii) is delivered to the Stock Plans Administrator of Fortune, 300 Tower
Parkway, Lincolnshire, Illinois (or to such other person and place as Fortune may specify in writing), (iii) signifies election to exercise the option as indicated in the notice of exercise, (iv) states the number of shares as to which the option is
being exercised, and (v) unless otherwise provided in the notice of exercise, is accompanied by payment in full of the option price of such shares. The notice of exercise may be delivered by facsimile transmission. Any notice of exercise delivered
as required by this paragraph will be effective only in accordance with the provisions of and to the extent set forth in the notice of exercise. If a properly executed notice of exercise is not delivered to the Stock Plans Administrator (or other
person designated by Fortune), by the applicable expiration date specified in paragraphs 3, 4, 5 and 9, the notice will be deemed null and void and of no effect. If notice of exercise of the option is given by a person other than you, Fortune may
require as a condition to exercising the option that appropriate proof of the right of such person to exercise the option be submitted to Fortune. Certificates for any shares purchased upon exercise will be issued and delivered as soon as
practicable. 
  
 12. Exercise of Limited Right. In the
event a Limited Right referred to in paragraph 9 becomes exercisable, it shall be exercised in whole or in part by giving written notice of such exercise, on a form approved by the Committee, to the Stock Plans Administrator (or other person
designated by Fortune). No written notice is required if the Limited Right is automatically exercised as provided in Section 12(b) of the attached Plan. The exercise will be effective as of the date specified in the notice of exercise, but not
earlier than the date the notice is actually received by the Stock Plans Administrator. The notice must be actually received by the Stock Plans Administrator by no later than the close of business on the last day of the applicable Limited Right
Exercise Period, as defined in the attached Plan (or the date the related option expires, whichever is earlier). 
  

 13. Payment of Option Price. You may pay the option price for shares (i) in cash, (ii) by the
delivery of shares of Fortune Common Stock that have been held by you for at least one year and that have a total market value equal to the option price, or (iii) by a combination of cash and such shares that have been held by you for a period of at
least one year and that have a total market value which, together with such cash, equals the option price. The “market value” of shares or per share of Fortune Common Stock as of any date means the value determined by reference to the
closing price of a share of Fortune Common Stock as finally reported on the New York Stock Exchange for the trading day next preceding such date. You may also pay the option price from the proceeds of the sale of shares covered by the option, called
a cashless exercise, to the extent provided in the notice of exercise referred to in paragraph 11. 
  
 14. Tax Withholding. You agree to notify the Stock Plans Administrator in the event the shares acquired by you upon exercise of any portion of your
option are sold or otherwise disposed of within one year from the date of exercise. If and to the extent Federal income tax withholding (and state and local income tax withholding, if applicable) may be required by the Company in respect of taxes on
income realized by you upon or after exercise of any portion of the option, or upon disposition of the shares acquired thereby, the Company may withhold such required amounts from your future paychecks or may require that you deliver to the Company
the amounts to be withheld. In addition, you may pay the minimum required Federal income tax withholding (and state and local income tax withholding, if applicable) by electing either to have the Company withhold a portion of the shares of Common
Stock otherwise issuable upon exercise of the option, or to deliver other shares of Common Stock owned by you, in either case having a fair market value (on the date that the withholding amount is to be determined) of the minimum amount required to
be withheld, provided that the election shall be irrevocable and shall be subject to such rules as the Committee may adopt. You may also arrange to have any tax (or taxes) paid directly to the Company on your behalf from the proceeds of the sale of
Common Stock to the extent provided in the notice of exercise referred to in paragraph 11.Form of Performance Award Notice

 Exhibit 10c1 
  
 NOTICE OF PERFORMANCE STOCK AWARD 
  
 [Date] 
  
 Company: [Company Name] 
 Minimum Performance Award [Three-Year Period]:
             Shares* 
 Target Performance Award [Three-Year Period]:
             Shares 
 Maximum Performance Award [Three-Year Period]:
             Shares** 
 Date of Grant: [Grant Date] 
  
 PERSONAL AND CONFIDENTIAL 
  
 (Name and Address) 
  
 Dear (Salutation): 
  
 We are pleased to inform you that, as a key employee of the company referred to above, you have been granted a performance award by the Compensation and Stock Option
Committee of the Board of Directors under the Fortune Brands, Inc. 2003 Long-Term Incentive Plan (the “Plan”). 
  
 The award is granted under and governed by the Plan and the Performance Stock Award Terms and Conditions (the “Terms”). Your performance award will be comprised
of shares of Common Stock of Fortune Brands, Inc., although, if you qualify under the Terms, you may be eligible to receive your award in the form of cash. 
  
 Your award is based on the achievement by Fortune Brands and its consolidated subsidiaries of the average per share targets set forth in the attached Matrix. The minimum
and maximum average return on equity and earnings per share targets for the performance period are also set forth in the attached Matrix. 

	*	Minimum performance goals for performance period must be met in order for minimum performance award to be paid. 

  

	**	Maximum performance goals for performance period must be met in order for maximum performance award to be paid. 

  

 For your information, we have attached to this notice the following documents: (1) the Terms, (2) the Plan, and (3) the
Matrix. You should review these documents carefully in order to fully understand how your award operates and your rights as an award recipient. 
  
 Under the terms of the Plan, you do not need to sign and return, or otherwise acknowledge your receiving, this notice. If you have any questions about your
award, please contact Grace Cherico, Stock Plans Administrator, at (847) 484-4423. 
  
 Sincerely yours, 
  

	
	FORTUNE BRANDS, INC.
	
	 /s/ Christopher J. Klein

	 Senior Vice President - Strategy
 and Corporate Development

  

  
 PERFORMANCE STOCK
OPTION 
 TERMS AND CONDITIONS 
  

You have been granted a performance stock award under the 2003 Long-Term Incentive Plan (the Plan). 
  
 The date of the grant, the minimum performance award, the target performance award and the maximum performance award are listed at the top
of your Notice of Performance Stock Award. The average per share targets and the minimum and maximum average return on equity and earnings per share targets for the performance period are set forth in the Matrix attached to you Notice of Performance
Stock Award. 
  
 1. Number of Shares Payable Pursuant to Award;
Payment in Cash. Subject to the provisions of paragraphs 5 through 13 hereof, the number of shares of Common Stock of Fortune Brands, Inc. (“Fortune”) payable to you pursuant to your award shall be determined as follows: 
  
 (a) If the Average Consolidated Return on Equity and
Cumulative Earnings Per Share (as determined pursuant to paragraph 2) of Fortune and its consolidated subsidiaries (the “Company”) for the relevant performance period equals the relevant minimum goal for that performance period as set
forth in the attached Matrix, the number of shares payable to you will be your minimum performance award set forth on the first page of this letter. 
  
 (b) If the Average Consolidated Return on Equity and Cumulative Earnings Per Share (as determined pursuant to paragraph 2) of the Company
for the relevant performance period equals or exceeds the relevant maximum goal for that performance period as set forth in the attached Matrix, the number of shares payable to you will be your maximum performance award set forth on the first page
of this letter. 
  
 (c) If the Average
Consolidated Return on Equity and Cumulative Earnings Per Share (as determined pursuant to paragraph 2) of the Company for the relevant performance period exceeds the relevant minimum goal for that performance period, but is less than the relevant
maximum goal for that performance period, the number of shares payable to you will be interpolated between the goals set forth in the attached Matrix within the range in which the Average Consolidated Return on Equity and Cumulative Earnings Per
Share falls. 
  
 (d) No shares shall be payable
for any performance period if the relevant Average Consolidated Return on Equity and Cumulative Earnings Per Share (as determined pursuant to paragraph 2) for that performance period is less than the relevant minimum goal for that performance
period. 
  

 Subject to the provisions of paragraphs 5 through 13, the shares of Common Stock of Fortune payable to
you pursuant to this performance award with respect to any performance period shall be paid by Fortune as soon as practicable after the end of that performance period and after receipt of the accountants’ letter for that performance period
pursuant to paragraph 14 hereof. 
  
 Notwithstanding anything in
this Agreement to the contrary, you may elect to receive cash rather than shares of Fortune stock if at the time of the election (which must be made during the seven days after the date on which the exact award amount, if any, is determined by the
Committee) you meet the stock ownership goal set forth in the Company’s Executive Stock Ownership Guidelines for your position. If you elect to receive a cash award, you will receive an amount equal to the number of shares of Fortune Common
Stock that would be otherwise deliverable to you under the Performance Award multiplied by the mean between the highest and lowest selling prices for such stock as reported on the New York Stock Exchange Composite Transactions Reporting System on
the date the Compensation and Stock Option Committee determines the exact amount of the Award, if any. 
  
 2. Determination of Average Consolidate Return on Equity and Cumulative Earnings Per Share. “Average Consolidated Return on Equity” for
any performance period means the average of the return on equity of the Company during each year of that performance period, which for each such year shall be determined by dividing (x) the net income of the Company for that year, as adjusted to
exclude any dividends on preferred stock of Fortune during that year, by (y) the average of the common stockholders’ equity of the Company at the beginning and at the end of that year. “Cumulative Earnings Per Share” means the
cumulative diluted earnings per share of Fortune during the performance period, adjusted to eliminate restructuring and other nonrecurring charges and credits (including all related costs and expenses). 
  
 3. Dividend Equivalents. Subject to the provisions of paragraphs 5, 6,
7, 9, 11, 12 and 13, with respect to the performance period you shall be paid, on the date of payment of any shares with respect to the performance period pursuant to paragraph 1, a cash Dividend Equivalent that is equal to the amount of the cash
dividends that would have been declared on that number of shares actually paid to you if such shares had been issued and outstanding on any record date for the payment of any cash dividends on Common Stock of Fortune during the performance period
and prior to the date of payment of such shares. Such Dividend Equivalent shall be paid, subject to paragraph 16, on the date of payment of such shares pursuant to paragraph 1. Payment of any Dividend Equivalent shall be made by delivery to you of a
check of Fortune in the amount of such Dividend Equivalent or in such other manner as is determined by the committee of the Board of Directors of Fortune administering the Plan (which committee is herein called the Committee and which, on the date
hereof, is the Compensation and Stock Option Committee). 
  
 4.
Transferability of Award. This performance award shall not be transferable by you otherwise than by will or by the laws of descent and distribution. 
  
 5. Termination of Employment for Death, Disability, Retirement or Elimination of Position. If your employment by the Company terminates during any
performance period by reason of your death, disability, retirement under a retirement plan of the Company or the elimination of your position, you will be entitled to receive as soon as practicable after the end of that performance period and after
receipt of the accountants’ letter for that performance period pursuant to paragraph 14 a payment of the number of shares of Common Stock, if any, that would otherwise be payable pursuant to paragraph 1. Also in the event of such a termination
of employment, you will be paid, on the date of payment of any shares paid pursuant to the preceding sentence, the Dividend Equivalents that would have been declared on that number of shares actually paid to you if such shares had been issued and
outstanding on any record date during the performance period and prior to the date of payment of such shares, and you will not be entitled to be credited with or to receive any other Dividend Equivalents. 
  

 6. Termination of Employment for Other Reasons. Except as otherwise provided in paragraphs 9
through 13 hereof, if your employment by the Company terminates during a performance period other than by reason of your death, disability, retirement under a retirement plan of the Company or the elimination of your position, you will not be
entitled to any payment of shares pursuant to paragraph 1 with respect to that performance period and will not be entitled to receive payment pursuant to paragraph 3 of any Dividend Equivalent. 
  
 7. Forfeiture of Award for Detrimental Activity. If you engage in
detrimental activity (as defined in this paragraph 7) at any time (whether before or after termination of your employment), you will not be entitled to any payment of shares or Dividend Equivalents hereunder and you will forfeit all rights with
respect thereto. For purposes of this paragraph 7, “detrimental activity” shall mean willful, reckless or grossly negligent activity that is determined by the Committee to be detrimental to or destructive of the business or property of the
Company. Any such determination of the Committee shall be final and binding for all purposes hereof. Notwithstanding the foregoing, no payment hereunder shall be forfeited or become not payable by virtue of this paragraph 7 on or after the date of a
Change in Control (as defined in the Plan). 
  
 8. Stock
Exchange Listing; Fractional Shares. Fortune shall not be obligated to deliver any shares until they have been listed (or authorized for listing upon official notice of issuance) upon each stock exchange upon which are listed outstanding shares
of the same class as that of the shares subject to the award and until there has been compliance with such laws or regulations as Fortune may deem applicable. Fortune agrees to use its best efforts to effect such listing and compliance. No
fractional shares (or any cash payment in lieu thereof) will be delivered and the number of shares to be delivered will be rounded up or down to the nearest whole share. 
  
 9. Transfer of Employment; Leave of Absence. For the purposes of this Agreement, (a) a transfer of your employment
from Fortune to a subsidiary or vice versa, or from one subsidiary to another, without an intervening period, shall not be deemed a termination of employment, and (b) if you are granted in writing a leave of absence, you shall be deemed to have
remained in the employ of Fortune or a subsidiary during such leave of absence. 
  
 10. Investment Representations. Prior to each issuance of shares of Common Stock payable hereunder, you shall make such representations as may be required by the Committee to the effect that such shares are to
be held for investment purposes and not with a view to or for resale or distribution except in compliance with the Securities Act of 1933, as amended (the “Securities Act”), and shall, if required by the Committee, give a written
undertaking to Fortune in form and substance satisfactory to the Committee that you will not publicly offer or sell or otherwise distribute such shares other than (a) in the manner and to the extent permitted by Rule 144 promulgated by the
Securities and Exchange Commission under the Securities Act, (b) pursuant to any other exemption from the registration provisions of the Securities Act or (c) pursuant to an effective registration statement thereunder. 
  
 11. Adjustments. (a) In the event of any merger, consolidation, stock
or other non-cash dividend, extraordinary cash dividend, split-up, spin-off, combination or exchange of shares, reorganization or recapitalization or change in capitalization, changes in accounting, tax or legal rules, or any other similar corporate
event, the number and kind of shares that are covered by your award (including, in the case of any such event other than an extraordinary cash dividend, the number of shares in respect of which Dividend Equivalents may be credited and paid pursuant
to paragraph 3) immediately prior to such event may be proportionately and appropriately adjusted. 
  
 (b) Adjustments (which may be increases or decreases) may be made by the Committee in the Average Consolidated Return on Equity and Cumulative Earnings
Per Share targets to 

  

 
take into account changes in law and accounting and tax rules and to make such adjustments as the Committee deems necessary or appropriate to reflect the
inclusion or exclusion of the impact of extraordinary or unusual items, events or circumstances, including, without limitation, acquisitions or divestitures by or other material changes in the Company, provided that no adjustment shall be made which
would result in an increase in your compensation if your compensation is subject to the limitation on deductibility under Section 162(m) of the Internal Revenue Code, as amended, or any successor provision, for the year with respect to which the
adjustment occurs. The Committee also may adjust the performance goals and measurements applicable to Performance Awards and thereby reduce the amount to be received by any Participant pursuant to such Awards if and to the extent that the Committee
deems it appropriate, provided that no such reduction shall be made on or after the date of a Change in Control (as defined the Plan). 
  
 (c) The determination of the Committee as to the terms of any adjustment made pursuant to this paragraph 11 shall be binding and conclusive upon you and
any other person or persons who are at any time entitled to receipt of any payment pursuant to the award. 
  
 12. Change in Control of Fortune. (a) Notwithstanding any other provision hereof, in the event that your employment is terminated on or after a
Change in Control (as defined in the Plan) (i) by the Company other than for just cause (as defined in paragraph 12(b)) or (ii) by you because you in good faith believe that as a result of the Change in Control you are unable effectively to
discharge your duties or the duties of the position you occupied immediately prior to the Change in Control or because of a diminution in your aggregate annual compensation or in your aggregate benefits below that in effect immediately prior to the
Change in Control, your award shall become nonforfeitable and shall be paid out on the date your employment is so terminated (x) as if each performance period hereunder had been completed or satisfied and as if the Average Consolidated Return on
Equity and Cumulative Earnings Per Share for the Company for each performance period were sufficient to enable a payment to you pursuant to paragraph 1(c) of the number of shares that is equal to the mean of the minimum and maximum performance award
set forth herein with respect to that performance period, but (y) pro rated for the portion of the performance period that elapsed prior to the termination of employment. Also in the event of such a termination of your employment, you will be
entitled to receive payment pursuant to paragraph 3 of any Dividend Equivalent that would have been declared, in respect of the shares you receive, during the performance period and prior to the date of payment of such shares, but will not be
entitled to be credited with or to receive any other Dividend Equivalents. 
  
 (b) For purposes of paragraph 12(a), termination shall be for “just cause” only if such termination is based on fraud, misappropriation or embezzlement on your part which results in a final conviction of a
felony.  
  
 13. Divestiture; Termination of Plan.
(a) In the event that your principal employer is a subsidiary of Fortune that ceases to be such, then your employment shall be deemed to be terminated for all purposes hereof as of the date on which your principal employer ceases to be a subsidiary
of Fortune (herein called the Divestiture Date) and your award shall become nonforfeitable and shall be paid out on the Divestiture Date (x) as if the performance period hereunder had been completed or satisfied and as if the Average Consolidated
Return on Equity and Cumulative Earnings Per Share for the Company for that performance period were sufficient to enable a payment to you pursuant to paragraph 1(c) of the number of shares that is equal to the mean of the minimum and maximum
performance award set forth herein with respect to the performance period, but (y) pro rated for the portion of the performance period that elapsed prior to the Divestiture Date, all as determined by the Committee. Also in the event of such a deemed
termination of employment, you will be entitled to receive payment pursuant to paragraph 4 hereof of any Dividend Equivalent that would have been declared, in respect of 

  

 
the shares you receive, during the performance period and prior to the Divestiture Date, but will not be entitled to be credited with or to receive any other
Dividend Equivalents. 
  
 (b) In the event of a termination of the
Plan as provided therein, then your employment shall be deemed to be terminated for all purposes hereof as of the date of termination of the Plan and the provisions of paragraph 13(a) will apply to your award with the same effect as if the date of
termination of the Plan were a Divestiture Date. 
  
 14.
Accountants’ Letter. As soon as practicable after the end of each performance period, the Committee shall obtain a letter from the independent certified public accountants who have examined the consolidated financial statements of the
Company for the last year of the performance period to the effect that they have reviewed the determination for the performance period of the Average Consolidated Return on Equity and Cumulative Earnings Per Share of the Company and that in their
opinion such determination has been made in accordance with paragraph 2. 
  
 15. Stockholder Rights. Neither you nor any other person shall have any rights of a stockholder as to shares until such shares shall have been recorded on Fortune’s official stockholder records as having
been issued or transferred. 
  
 16. Tax Withholding. Upon
any payment to you of shares of Common Stock hereunder or upon any payment to you of any Dividend Equivalents hereunder, Federal income and other tax withholding (and state and local income tax withholding, if applicable) may be required by the
Company in respect of taxes on income realized by you. The Company may withhold such required amounts from your future paychecks or from, if applicable, such Dividend Equivalents or may require that you deliver to the Company the amounts to be
withheld. In addition, upon any payment to you of shares hereunder, you may pay any Federal income and other tax withholding (and any state and local income tax withholding, if applicable) by electing either to have the Company withhold a portion of
the shares of Common Stock otherwise deliverable to you, or to deliver other shares of Common Stock owned by you, in either case having a fair market value (on the date that the amount of tax you have elected to have withheld is to be determined) of
the amount to be withheld, provided that the election shall be irrevocable and shall be subject to such rules as the Committee may adopt with respect thereto. 
  

17. Governing Law. This agreement and the award provided for hereunder shall be governed by and construed in accordance with the laws of the
State of Delaware.

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