Document:

Exhibit 10.2

 

 

WHOLE FOODS

 

EXECUTIVE RETENTION PLAN

AND NON-COMPETE ARRANGEMENT

 

 

Effective May 20, 2010

 

 

TABLE OF CONTENTS

 

WHOLE FOODS EXECUTIVE RETENTION
PLAN AND NON-COMPETE ARRANGEMENT

 

	
  ARTICLE I PREAMBLE AND PURPOSE

  	
   

  	
  1

  
	
  1.1

  	
  Preamble

  	
   

  	
  1

  
	
  1.2

  	
  Purpose

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II DEFINITIONS AND
  CONSTRUCTION

  	
   

  	
  2

  
	
  2.1

  	
  Definitions

  	
   

  	
  2

  
	
  2.2

  	
  Construction

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III NON-COMPETE BENEFITS

  	
   

  	
  9

  
	
  3.1

  	
  Non-Compete Benefits

  	
   

  	
  9

  
	
  3.2

  	
  Remedies for Violation of Restrictive Covenants

  	
   

  	
  10

  
	
  3.3

  	
  Death or Disability of Covered Executive

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV EMPLOYMENT AND
  BENEFITS AFTER A CHANGE IN CONTROL

  	
   

  	
  12

  
	
  4.1

  	
  COC Employment Period

  	
   

  	
  12

  
	
  4.2

  	
  Terms of Employment

  	
   

  	
  12

  
	
  4.3

  	
  Termination

  	
   

  	
  15

  
	
  4.4

  	
  Obligations of the Employer in Connection with a Change of
  Control

  	
   

  	
  15

  
	
  4.5

  	
  Death

  	
   

  	
  16

  
	
  4.6

  	
  Disability

  	
   

  	
  17

  
	
  4.7

  	
  Termination for Cause; Termination Other Than for Good
  Reason

  	
   

  	
  17

  
	
  4.8

  	
  Rabbi Trust

  	
   

  	
  17

  
	
  4.9

  	
  Legal Fees

  	
   

  	
  18

  
	
  4.10

  	
  Non-Exclusivity of Rights

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V ADMINISTRATION

  	
   

  	
  20

  
	
  5.1

  	
  The Plan Administrator

  	
   

  	
  20

  
	
  5.2

  	
  Powers of Plan Administrator

  	
   

  	
  20

  
	
  5.3

  	
  Appointment of Daily Administrator

  	
   

  	
  20

  
	
  5.4

  	
  Duties of Daily Administrator

  	
   

  	
  20

  
	
  5.5

  	
  Indemnification of Plan Administrator and Daily
  Administrator

  	
   

  	
  22

  
	
  5.6

  	
  Claims for Benefits

  	
   

  	
  22

  
	
  5.7

  	
  Arbitration

  	
   

  	
  23

  
	
  5.8

  	
  Receipt and Release of Necessary Information

  	
   

  	
  24

  
	
  5.9

  	
  Overpayment and Underpayment of Benefits

  	
   

  	
  25

  
	
  5.10

  	
  No Mitigation

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI AMENDMENT AND
  TERMINATION OF THE PLAN

  	
   

  	
  26

  
	
  6.1

  	
  Continuation

  	
   

  	
  26

  
	
  6.2

  	
  Amendment of Plan

  	
   

  	
  26

  
	
  6.3

  	
  Termination of Plan

  	
   

  	
  26

  
	
  6.4

  	
  Termination of Affiliated Company’s Participation

  	
   

  	
  26

  
	
  6.5

  	
  409A Compliance

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII MISCELLANEOUS

  	
   

  	
  28

  
	
  7.1

  	
  No Reduction of Employer Rights

  	
   

  	
  28

  

 

I

 

	
  7.2

  	
  Successor to the Company

  	
   

  	
  28

  
	
  7.3

  	
  Provisions Binding

  	
   

  	
  28

  
	
  7.4

  	
  Governing Law

  	
   

  	
  28

  
	
  7.5

  	
  Notice

  	
   

  	
  28

  
	
  7.6

  	
  Severability

  	
   

  	
  29

  
	
  7.7

  	
  Counterparts and Electronic Signatures

  	
   

  	
  29

  
	
  7.8

  	
  Withholding

  	
   

  	
  29

  
	
  7.9

  	
  No Waiver

  	
   

  	
  29

  

 

II

 

WHOLE FOODS EXECUTIVE RETENTION
PLAN AND NON-COMPETE ARRANGEMENT

 

ARTICLE I

PREAMBLE AND PURPOSE

 

1.1                               Preamble.  Whole Foods
Market, Inc., a Texas Corporation (the “Company”) adopted the Whole Foods Executive
Retention Plan (the “Plan”)
effective as of May 20, 2010, in order to induce its executives’, and those of
its Affiliated Companies, as defined in Article II, to enter into certain
non-competition arrangements, compliance with the confidentiality provisions
and restrictive covenants set forth in the Plan Agreements (as defined below),
and to provide protection to such executives in the event of a Change of
Control as defined in Article II.   By
this instrument, the Company desires to amend and restate the Plan effective
May 20, 2010 to change the name of the Plan to the “Whole Foods Executive
Retention Plan and Non-Compete Arrangement” and to clarify the conditions under
which the Non-Compete Payment, as defined in Article II, will be made.

 

The
Company may adopt one or more domestic trusts to serve as a possible source of
funds for the payment of benefits under the Plan.

 

1.2                               Purpose.  Through the
Plan, the Company intends to permit the deferral of compensation and to provide
additional benefits to a select group of management or highly compensated
employees of the Company and its Affiliated Companies.  Accordingly, it is intended that the Plan
will not constitute a “qualified plan” subject to the limitations of section
401(a) of the Internal Revenue Code of 1986, as amended, nor will it constitute
a “funded plan,” for purposes of such requirements.  It also is intended that the Plan will
qualify as a “pension plan” within the meaning of section 3(2) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”)
that is exempt from the participation and vesting requirements of Part 2 of
Title I of ERISA, the funding requirements of Part 3 of Title I of ERISA, and
the fiduciary requirements of Part 4 of Title I of ERISA by reason of the
exclusions afforded plans that are unfunded and maintained by an employer
primarily for the purpose of providing deferred compensation for a select group
of management or highly compensated employees.

 

End
of Article I

 

1

 

ARTICLE II

DEFINITIONS AND
CONSTRUCTION

 

2.1                               Definitions.  When a word
or phrase appears in this Plan with the initial letter capitalized, and the
word or phrase does not commence a sentence, the word or phrase will generally
be a term defined in this Section 2.1. 
The following words and phrases with the initial letter capitalized will
have the meaning set forth in this Section 2.1, unless a different meaning is
required by the context in which the word or phrase is used.

 

(a)                                  “Accrued
Obligations” has the meaning set forth in Section 4.4(a)(i)(A).

 

(b)                                 “Affiliated
Company” means a corporation that is a member of a controlled group
of corporations (as defined in section 414(b) of the Code) that includes the
Company, any trade or business (whether or not incorporated) that is in common
control (as defined in section 414(c) of the Code) with the Company, or any
entity that is a member of the same affiliated service group (as defined in
section 414(m) of the Code) as the Company.

 

(c)                                  “Annual Base
Salary” has the meaning in Section 4.2(b)(i).

 

(d)                                 “Annual Bonus”
has the meaning in Section 4.2(b)(ii).

 

(e)                                  “Board”
means the Board of Directors of the Company.

 

(f)                                    “Cause”
means:

 

(i)            the willful and
continued failure of the Covered Executive to perform substantially his or her
duties with the Company or any Affiliated Company (other than any such failure
resulting from incapacity due to physical or mental illness or following the
Covered Executive’s delivery of a Notice of Termination for Good Reason), after
a written demand for substantial performance is delivered to the Covered
Executive by the Board or the Chief Executive Officer of the Company that
specifically identifies the manner in which the Board or the Chief Executive
Officer of the Company believes that the Covered Executive has not
substantially performed the Covered Executive’s duties, or

 

(ii)           the willful
engaging by Covered Executive in illegal conduct or gross misconduct that is
materially and demonstrably injurious to the Company.

 

Provided
however, for purposes of defining “Cause”, no act, or failure to act, on the
part of the Covered Executive will be considered “willful” unless it is done,
or omitted to be done, by the Covered Executive in bad faith or without
reasonable belief that the Covered Executive’s action or omission was in the
best interests of the Company. 
Furthermore, any act, or failure to act, based upon (A) authority given
pursuant to a resolution duly adopted by the Board, or if the Company is not
the ultimate parent corporation of the Affiliated Companies and is not
publicly-traded, the board of directors of the ultimate parent of the Company
(the “Applicable Board”), (B) the
instructions of the Chief Executive Officer of the Company or a senior officer
of the Company, or (C) the advice of counsel for the 

 

2

 

Company
will be conclusively presumed to be done, or omitted to be done, by the Covered
Executive in good faith and in the best interests of the Company.

 

Any
termination by the Employer for Cause will be communicated by the Employer
through a Notice of Termination to the Covered Executive given in accordance
with Section 7.5.  The failure by the
Employer to set forth in the Notice of Termination any fact or circumstance
that contributes to a showing of Cause will not waive any right of the Employer
hereunder or preclude the Employer from asserting such fact or circumstance in
enforcing the Employer’s rights hereunder

 

The
cessation of employment of the Covered Executive will be deemed to be not for
Cause unless and until there has been delivered to the Covered Executive a copy
of a resolution duly adopted by the affirmative vote of not less than
three-quarters of the entire membership of the Applicable Board (excluding the
Covered Executive, if the Covered Executive is a member of the Applicable
Board) at a meeting of the Applicable Board called and held for such purpose
(after reasonable notice is provided to the Covered Executive and the Covered
Executive is given an opportunity, together with counsel for the Covered
Executive, to be heard before the Applicable Board), finding that, in the good
faith opinion of the Applicable Board, the Covered Executive is guilty of the
conduct described in Section 2.1(f)(i) or (ii) of this definition of “Cause”,
and specifying the particulars thereof in detail.

 

(g)                                 “Change of
Control” means the occurrence of any of the following:

 

(i)                                     Any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”))
(a “Person”) becomes the beneficial owner
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty
percent (20%) or more of either (A) the then-outstanding shares of common stock
of the Company (the “Outstanding Company
Common Stock”), or (B) the combined
voting power of the then-outstanding voting securities of the Company entitled
to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that, for purposes
of this definition of Change of Control, the following acquisitions will not
constitute a Change of Control:  (1) any
acquisition directly from the Company, (2) any acquisition by the Company, (3)
any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any Affiliated Company, or (4) any acquisition
pursuant to a transaction that complies with paragraphs (1) (2) or (3) of this
definition;

 

(ii)                                  Individuals who, as of the
date hereof, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose
election, or nomination for election by the Company’s shareholders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board will be considered as though such individual was a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose
initial 

 

3

 

assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board;

 

(iii)                               Consummation of a
reorganization, merger, statutory share exchange or consolidation or similar
transaction involving the Company or any of its subsidiaries, a sale or other
disposition of all or substantially all of the assets of the Company, or the
acquisition of assets or stock of another entity by the Company or any of its
subsidiaries (each, a “Business Combination”),
in each case unless, following such Business Combination, (A) all or
substantially all of the individuals and entities that were the beneficial
owners of the Outstanding Company Common Stock and the Outstanding Company
Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than fifty percent (50%) of the
then-outstanding shares of common stock (or, for a non-corporate entity,
equivalent securities) and the combined voting power of the then-outstanding
voting securities entitled to vote generally in the election of directors (or,
for a non-corporate entity, equivalent governing body, as the case may be), of
the entity resulting from such Business Combination (including, without
limitation, an entity that, as a result of such transaction, owns the Company
or all or substantially all of the Company’s assets either directly or through
one or more subsidiaries) in substantially the same proportions as their
ownership immediately prior to such Business Combination of the Outstanding
Company Common Stock and the Outstanding Company Voting Securities, as the case
may be, (B) no Person (excluding any corporation resulting from such Business
Combination or any employee benefit plan (or related trust) of the Company or
such corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, twenty percent (20%) or more of, respectively, the
then-outstanding shares of common stock of the corporation resulting from such
Business Combination or the combined voting power of the then-outstanding
voting securities of such corporation, except to the extent that such ownership
existed prior to the Business Combination, and (C) at least a majority of the
members of the board of directors (or, for a non-corporate entity, equivalent
governing body) of the entity resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial
agreement or of the action of the Board providing for such Business
Combination; or

 

(iv)                              Approval by the shareholders
of the Company of a complete liquidation or dissolution of the Company.

 

(h)                                 “Change of
Control Period” means the period commencing on the Effective Date
and ending on the third anniversary of the date of a Change of Control.

 

(i)                                     “COBRA”
means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

4

 

(j)                                     “COC
Effective Date” means the first date during the Change of Control
Period on which a Change of Control occurs. 
Notwithstanding anything in the Plan to the contrary, if a Change of
Control occurs and if the Covered Executive’s employment with the Employer is
terminated prior to the date on which the Change of Control occurs, and if it
is reasonably demonstrated by the Covered Executive that such termination of
employment (i) was at the request of a third party that has taken steps
reasonably calculated to effect a Change of Control, or (ii) otherwise arose in
connection with or anticipation of a Change of Control, then “COC Effective Date” means the date immediately prior to the
date of such termination of employment.

 

(k)                                  “COC
Employment Period” means the period commencing on the COC Effective
Date and ending on the second anniversary of the COC Effective Date.

 

(l)                                     “Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

(m)                               “Company”
means Whole Foods Market, Inc., a Texas Corporation.

 

(n)                                 “Compensation
Committee” means the Compensation Committee of the Board.

 

(o)                                 “Covered
Executive” means any Executive of the Employer who is designated as
a Covered Executive by the Compensation Committee.  A Covered Executive will not cease to be a
Covered Executive by reason of his or her transfer to comparable positions with
the Affiliated Companies and the Covered Executive will continue to participate
in the Plan pursuant to the terms hereof.

 

(p)                                 “Daily
Administrator” means the individual or entity appointed by the Plan
Administrator to handle the day-to-day administration of the Plan.  If the Plan Administrator does not appoint an
individual or entity to serve as the Daily Administrator, the Plan Administrator
will be the Daily Administrator.

 

(q)                                 “Date of
Termination” means:

 

(i)            if the Covered
Executive’s employment is terminated by the Employer for Cause, or by the
Covered Executive for Good Reason, the date of receipt of the Notice of
Termination or such later date specified in the Notice of Termination, as the
case may be,

 

(ii)           if the Covered
Executive’s employment is terminated by the Employer other than for Cause, the
date on which the Employer notifies the Covered Executive of such termination,

 

(iii)          if the Covered
Executive resigns without Good Reason, the date on which the Covered Executive
notifies the Employer of such termination, and

 

(iv)          if the Covered
Executive’s employment is deemed to be terminated by reason of death, the date
of death of Executive.

 

Notwithstanding
the foregoing, in no event will the Date of Termination with respect to clauses
(i), (ii) or (iii) occur until Executive experiences a “separation 

 

5

 

from
service” within the meaning of Section 409A of the Code, and notwithstanding
anything contained herein to the contrary, the date on which such separation
from service takes place will be the “Date of Termination.”

 

An
Executive who transfers employment among the Affiliated Companies will not
incur a “separation from service” within the meaning of Section 409A of the
Code.

 

(r)                                    “Delayed
Payment Date” means the first business day after the date that is
six (6) months following Executive’s “separation from service” within the
meaning of Section 409A of the Code.

 

(s)                                  “Disability”
means the inability of the Covered Executive to engage in any substantial
gainful activity similar to his or her current position by reason of a mental
or physical impairment expected to result in death or last for at least twelve
(12) months, or the Covered Executive, because of such a condition, is
receiving income replacement benefits for at least three months under an
accident or health plan covering the Employer’s employees.

 

(t)                                    “Effective
Date” means May 20, 2010.

 

(u)                                 “Employer”
means the Company and each Affiliated Company that has adopted the Plan as a
participating employer.  Unless provided
otherwise by the Compensation Committee or the Board, all Affiliated Companies
will be participating employers in the Plan. 
Each such Affiliated Company may evidence its adoption of the Plan
either by a formal action of its governing body or taking administrative
actions with respect to the Plan on behalf of its Covered Executives (e.g., communicating the terms of the Plan, etc.).  An entity will cease to be a participating
employer as of the date such entity ceases to be an Affiliated Company.

 

(v)                                 “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time.

 

(w)                               “Executive” means each
select member of management or highly compensated employee receiving
remuneration, or who is entitled to remuneration, for services rendered to the
Employer, in the legal relationship of employer and employee.  The term “Executive” does not include a
consultant, independent contractor or leased employee even if such consultant,
leased employee or independent contractor is subsequently determined by the
Employer, the Internal Revenue Service, the Department of Labor or a court of
competent jurisdiction to be a common law employee of the Employer.

 

(x)                                   “Good Reason”
means:

 

(i)            the assignment
to the Covered Executive of any duties inconsistent in any respect with the
Covered Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities, or any action by the
Employer that results in a diminution in such position, authority, duties or
responsibilities (whether or not occurring solely as a result of the Company’s
ceasing to be a publicly traded entity), excluding 

 

6

 

for this purpose an isolated, insubstantial and inadvertent action not
taken in bad faith and that is remedied by the Employer promptly after receipt
of notice thereof given by the Covered Executive;

 

(ii)           after a COC Effective
Date, any failure by the Employer to comply with any of the provisions of
Section 4.2(b), other than an isolated, insubstantial and inadvertent failure
not occurring in bad faith and that is remedied by the Employer promptly after
receipt of notice thereof given by the Covered Executive;

 

(iii)          after a COC
Effective Date the Employer’s requiring Executive (A) to be based at any office
or location other than as provided in Section 4.2(a)(i)(B), or (B) to be based
at a location other than the principal executive offices of the Employer if the
Covered Executive was employed at such location immediately preceding the COC
Effective Date;

 

(iv)          after a COC
Effective Date any purported termination by the Employer of the Covered
Executive’s employment otherwise than as expressly permitted by this Plan; or

 

(v)           any other
action or inaction that constitutes a material breach by the Employer or a
successor of this Plan, including any failure by the Employer to comply with
and satisfy Section 7.2.

 

For
purposes of this definition, after a COC Effective Date any good faith
determination of Good Reason made by the Covered Executive will be conclusive;
furthermore, the Covered Executive’s mental or physical incapacity following
the occurrence of an event described above in clauses (i) through (v) will not
affect the Covered Executive’s ability to terminate employment for Good Reason
and the Covered Executive’s death following delivery of a Notice of Termination
for Good Reason will not affect the Covered Executive’s estate’s entitlement to
severance payments benefits provided hereunder upon a termination of employment
for Good Reason.

 

Any
termination by the Covered Executive for Good Reason, will be communicated by
the Covered Executive through a Notice of Termination to the Employer given in
accordance with Section 7.5.  The failure
by the Covered Executive to set forth in the Notice of Termination any fact or
circumstance that contributes to a showing of Good Reason will not waive any
right of the Covered Executive hereunder or preclude the Covered Executive from
asserting such fact or circumstance in enforcing the Covered Executive’s rights
hereunder.

 

(y)                                 “Interest”
means the applicable federal rate provided for in Section 7872(f)(2)(A) of the
Code determined as of the Date of Termination.

 

(z)                                   “Non-Compete Benefits” means the benefits described in Article III of the Plan including, but not limited to, the
Non-Compete Payments described therein.

 

(aa)                            “Non-Compete Payment” and “Non-Compete Payments” has the meaning assigned to each in
Section 3.1(a) of the Plan.

 

7

 

(bb)                          “Notice of Termination” means a
written notice that (i) indicates the specific termination provision in this
Plan relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination
of the Covered Executive’s employment under the provision so indicated, and
(iii) if the Date of Termination (as defined herein) is other than the date of
receipt of such notice, specifies the Date of Termination (which Date of
Termination will be not more than thirty (30) days after the giving of such
notice).

 

(cc)                            “Plan Administrator” means the
individual or committee appointed by the Company to administer the Plan.  If the Company does not appoint an individual
or committee to serve as the Plan Administrator, the Company will be the Plan
Administrator.

 

(dd)                          “Plan” means the Whole Foods
Executive Retention Plan and
Non-Compete Arrangement as set forth herein and as the same may be
amended from time to time.

 

(ee)                            “Plan Agreement” means the written
agreement between a Covered Executive and the Plan Administrator, on behalf of
the Employer substantially in the form attached hereto in Appendix A.  This form Plan Agreement may differ with
respect to a Covered Executive as determined by the Compensation Committee in
its sole and absolute discretion.  Each
Plan Agreement will form a part of the Plan with respect to the affected
Covered Executive.

 

(ff)                                “Plan Year” means the fiscal year
of the Plan, which will commence on January 1 each year and end on December 31
of such year.  The initial Plan Year will
be a short plan year beginning on May 20, 2010 and ending on December 31, 2010.

 

(gg)                          “Pro Rata Bonus” has the meaning
assigned in Section 4.4(a)(iii).

 

(hh)                          “Specified Employee” means a “specified
employee” within the meaning of section 409A of the Code (as determined in
accordance with the methodology established by the Employer as in effect on the
Date of Termination).

 

(ii)                                  “Trustee” means a nationally
recognized financial institution appointed by the Company to serve as trustee
of the Trust.

 

(jj)                                  “Trust” means the “rabbi trust” to
be established by the Company pursuant to Section 4.8.

 

2.2                               Construction.  Headings and subheadings are for the purpose
of reference only and are not to be considered in the construction of the
Plan.  The pronouns “he,” “him” and “his”
used in the Plan will also refer to similar pronouns of the female gender
unless otherwise qualified by the context.

 

End of Article II

 

8

 

ARTICLE III

NON-COMPETE BENEFITS

 

3.1                               Non-Compete Benefits.  If at any time after the earlier to occur of a Change of Control or March 1,
2012, the Covered Executive’s employment is terminated either (i) by the
Employer other than for Cause, or (ii) except to the extent limited by the applicable Plan Agreement, by
the Covered Executive, then, subject to the Covered
Executive’s compliance with the confidentiality provisions and restrictive
covenants in the Plan Agreement and execution, within forty-five (45) days
following the Date of Termination, of the Waiver and Release, in the
form substantially similar to the form attached hereto as Exhibit A,
in addition to the other rights set forth herein the Covered Executive will be
entitled to the following Non-Compete Benefits:

 

(a)                                  Non-Compete Payment.  To the extent not limited
below and to the extent the Covered Executive continues to comply with the
terms of the Plan and the applicable Plan Agreement, the Employer will make up
to ten (10) semi annual payments to the Covered Executive each in an
amount equal to the amount set forth in Section 1 of the Covered Executive’s
Plan Agreement divided by ten (10) (each a “Non-Compete  Payment,” and together, the “Non-Compete  Payments”).  The first such Non-Compete Payment will be
made on a date which is six (6) months and one (1) day after the Date
of Termination.  Each of the additional
Non-Compete Payments will be made six (6) months after the date of the
last such payment.  The Employer will
withhold from any amounts or benefits due to Executive under this Article III
such United States federal, state or local or foreign taxes as are required to
be withheld pursuant to any applicable law or regulation.

 

Notwithstanding the above, in the event the Covered Executive voluntarily leaves the
Employer’s employment before the Total Benefit Date (as defined in the Covered
Executive’s Plan Agreement) set forth in Section 1 of the Covered
Executive’s Plan Agreement, the amount, if any, paid to the Covered Executive
for each of the Non-Compete Payments will be adjusted as set forth below;
provided however, if Executive leaves the Employer’s employment with Good
Reason, no adjustment shall be made to reduce any such payment that becomes
due; otherwise, depending on the length of time preceding the Date of
Termination the Covered Executive has held his or her current position or one
or more of several other designated positions as set forth in Section 1 of
the Covered Executive’s Plan Agreement, the Non-Compete Payments will be
adjusted as follows:

 

	
  YEARS IN POSITION

  	
   

  	
  ADJUSTMENT TO
  NON-COMPETE PAYMENT

  
	
  Fewer than 11

  	
   

  	
  reduced to zero

  
	
  11 or greater but fewer than 12

  	
   

  	
  20% of original amount will be paid

  
	
  12 or greater but fewer than 13

  	
   

  	
  40% of original amount will be paid

  
	
  13 or greater but fewer than 14

  	
   

  	
  60% of original amount will be paid

  

 

9

 

	
  14 or greater but fewer than 15

  	
   

  	
  80% of original amount will be paid

  
	
  15 or greater

  	
   

  	
  No adjustment will be made

  

 

(b)                                 Equity Compensation.  Unless
otherwise specified in an applicable award agreement, all stock options that
have been granted to the Covered Executive by the Employer will become vested
and immediately exercisable, and will remain exercisable until the earlier of (i) the fifth (5th) anniversary of the Date
of Termination, or (ii) the original expiration date of the applicable
stock option (other than by reason of termination of employment). Unless
otherwise specified in an applicable award agreement, all restricted stock,
restricted stock units and other similar awards will also immediately vest.

 

(c)                                  COBRA Coverage.  The Employer will reimburse the Covered
Executive on a monthly basis for COBRA premiums paid by the Covered Executive
for continuation of medical, dental and vision benefits under the Company’s
group health plans to the Covered Executive and his or her eligible family
members for a period commencing on the date the Covered Executive’s group
health coverage would otherwise terminate by reason of his or her termination
of employment and terminating on the earlier of (i) the
eighteenth (18th) month anniversary of the Date of Termination, or (ii) the
Covered Executive’s obtaining similar health benefit coverage, with no
pre-existing condition exclusions applicable to the Covered Executive after
taking into account the rules regarding creditable health coverage, via
employment with a new employer; provided, that the Covered Executive and/or his
eligible family members timely elect COBRA and provide evidence of the payment
of the monthly COBRA premium.  The
Covered Executive will be obligated to notify the Daily Administrator within
thirty (30) days of the date he or she secures similar health coverage, in
which case the Employer’s obligation to reimburse the Covered Executive for such
COBRA premium payments will cease, but the Covered Executive and/or his or her
family members may, at their option, elect to continue to receive continued
medical, dental and vision benefits under the Company’s group health plan
pursuant to COBRA for the remainder of the applicable COBRA continuation period
at their own expense in accordance with the eligibility requirements of COBRA.

 

3.2                               Remedies for Violation of Restrictive Covenants.  The Employer’s only
remedies for the Covered Executive’s failure to comply with the restrictive
covenants set forth in Section 2(b)(i) of the Plan Agreement
(relating to the covenant not to compete) will be termination for Cause, if
applicable, and to cease to provide any and all Non-Compete Benefits described
in this Article III (including, without limitation, the Employer’s ceasing
to provide any and all Non-Compete Payments otherwise payable under Section 3.1(a)).
The Employer’s only remedies for the Covered Executive’s failure to comply with
the confidentiality provisions and the other restrictive covenants in the Plan
Agreement (i.e., the covenants other than the covenant not to compete described
in the preceding sentence) will be termination for Cause, if applicable, the
injunctive relief described in Section 5 of the Plan Agreement, if
applicable, and to cease to provide any and all Non-Compete Benefits described
in this Article III (including, without limitation, the Employer’s ceasing
to provide any and all Non-Compete Payments otherwise payable under Section 3.1(a)).

 

10

 

3.3                               Death or Disability of Covered Executive.  Notwithstanding anything
else in this Article III, in the event of Covered Executive’s death or
Disability, this Article III will be effective as of the Effective Date
(without giving effect to the March 1, 2012 delayed date), the Waiver and
Release will be deemed to have been signed by the Covered Executive after a
termination without Cause, the Covered Executive will be deemed to have
complied with the confidentiality provisions and restrictive covenants set
forth in the Plan Agreement and the Employer will make the associated payments
provided for in this Article III to the Covered Executive or his or her
estate.

 

End of Article III

 

11

 

ARTICLE IV

EMPLOYMENT AND BENEFITS AFTER A CHANGE IN CONTROL

 

4.1                               COC Employment Period.  The Employer agrees to
continue to employ the Covered Executive, subject to the terms and conditions
of the Plan, for the COC Employment Period. 
The COC Employment Period will terminate upon Executive’s termination of
employment for any reason; subject to the terms of this Article IV.

 

4.2                               Terms of Employment.

 

(a)                                  Position and Duties.

 

(i)                                     Scope and Location.
During the COC Employment Period, (A) the Covered Executive’s position
(including status, offices, titles and reporting requirements), authority,
duties and responsibilities will be at least commensurate in all respects with
the most significant of those held, exercised and assigned to the Covered
Executive at any time during the one hundred and twenty (120)-day period
immediately preceding the COC Effective Date, (B) the Covered Executive’s
services will be performed at the office where the Covered Executive was
employed immediately preceding the COC Effective Date or at any other location
less than thirty-five (35) miles from such office, and (C) the Covered
Executive will not be required to travel on Employer business to a
substantially greater extent than required during the one hundred and twenty
(120)-day period immediately prior to the COC Effective Date.

 

(ii)                                  Additional Positions.  During the COC Employment Period, and
excluding any periods of paid time off or sabbatical to which the Covered
Executive is entitled, the Covered Executive agrees to devote reasonable
attention and time during normal business hours to the business and affairs of
the Employer and, to the extent necessary to discharge the responsibilities
assigned to the Covered Executive hereunder, to use the Covered Executive’s
reasonable best efforts to perform faithfully and efficiently such
responsibilities.  During the COC
Employment Period, it will not be a violation of this Article IV for the
Covered Executive to (A) serve on corporate, civic or charitable boards or
committees, (B) deliver lectures, fulfill speaking engagements or teach at
educational institutions and (C) manage personal investments, so long as
such activities do not significantly interfere with the performance of the
Covered Executive’s responsibilities as an Executive in accordance with this Article IV.  It is expressly understood and agreed that,
to the extent that any such activities have been conducted by the Covered
Executive prior to the COC Effective Date, the continued conduct of such
activities (or the conduct of activities similar in nature and scope thereto)
subsequent to the COC Effective Date will not thereafter be deemed to interfere
with the performance of the Covered Executive’s responsibilities to the
Employer.

 

(b)                                 Compensation.

 

(i)                                     Base Salary.  During the COC
Employment Period, the Covered Executive will receive an annual base salary
(the “Annual Base Salary”)

 

12

 

at an annual rate at least equal to
twenty-six (26) times the highest bi-weekly base salary rate applicable to the
Covered Executive by the Company and the Affiliated Companies in respect of the
one (1)-year period immediately preceding the month in which the COC Effective
Date occurs.  The Annual Base Salary will
be paid pursuant to the Employer’s normal payroll practices at such intervals
as the Employer pays Executive salaries generally.  During the COC Employment Period, the Annual
Base Salary will be reviewed at least annually, beginning no more than 12 months
after the last salary increase awarded to Executive prior to the COC Effective
Date.  Any increase in the Annual Base
Salary will not serve to limit or reduce any other obligation to the Covered
Executive under this Article IV. 
The Annual Base Salary will not be reduced after any such increase and
the term “Annual Base Salary” will refer to the
Annual Base Salary as so increased.

 

(ii)                                  Annual Bonus.  In addition to the Annual Base Salary, the
Covered Executive will be awarded, for each fiscal year ending during the COC
Employment Period, an annual bonus (the “Annual Bonus”)
in cash according to the same formula used to calculate the Covered Executive’s
last bonus paid prior to the COC Effective Date.  Notwithstanding the prior
sentence, if  any comparable bonus under the
Employer’s successor bonus plan or arrangement would result in a higher payment
to the Covered Executive, the Covered Executive will instead receive such bonus
amount as her/his “Annual Bonus”.  Each such Annual Bonus will be paid no later
than two and a half months after the end of the fiscal year for which the
Annual Bonus is awarded and determined to be payable, unless Executive elects
to defer the receipt of such Annual Bonus pursuant to an arrangement that meets
the requirements of section 409A of the Code.

 

(iii)                               Long-Term Cash and Equity Incentives, Savings and
Retirement Plans.  During the COC
Employment Period, the Covered Executive will be entitled to participate in all
long-term cash incentive, equity incentive, savings and retirement plans,
practices, policies, and programs applicable generally to other peer
Executives, but in no event will such plans, practices, policies and programs
provide the Covered Executive with incentive opportunities (measured with
respect to both regular and special incentive opportunities, to the extent, if
any, that such distinction is applicable), savings opportunities and retirement
benefit opportunities, in each case, less favorable, in the aggregate, than the
most favorable of those provided by the Employer to the Covered Executive under
such plans, practices (including without limitation, the Company’s annual stock
option grant), policies and programs as in effect at any time during the one
hundred and twenty (120)-day period immediately preceding the COC Effective
Date or, if more favorable to the Covered Executive, those provided generally
at any time after the COC Effective Date to other peer Executives.

 

(iv)                              Welfare Benefit Plans.  During
the COC Employment Period, the Covered Executive and/or the Covered Executive’s
family, as the case may be, will be eligible for participation in and will
receive all benefits under welfare

 

13

 

benefit plans, practices, policies
and programs provided by the Employer (including, without limitation, medical,
dental, vision, disability, employee life, group life, accidental death and
travel accident insurance plans and programs) to the extent applicable
generally to other peer Executives, but in no event will such plans, practices,
policies and programs provide the Covered Executive with benefits that are less
favorable, in the aggregate, than the most favorable of such plans, practices,
policies and programs in effect for the Covered Executive at any time during
the one hundred and twenty (120)-day period immediately preceding the COC
Effective Date or, if more favorable to Executive, those provided generally at
any time after the COC Effective Date to other peer Executives.

 

(v)                                 Expenses.  During the COC Employment Period, the Covered
Executive will be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Covered Executive in accordance with the most
favorable policies, practices and procedures of the Employer in effect for
Executive at any time during the one hundred and twenty (120)-day period
immediately preceding the COC Effective Date or, if more favorable to the
Covered Executive, as in effect generally at any time thereafter with respect
to other peer Executives.

 

(vi)                              Fringe Benefits.
 During the COC Employment Period, the
Covered Executive will be entitled to fringe benefits in accordance with the
most favorable plans, practices, programs and policies of the Employer in
effect for the Covered Executive at any time during the one hundred and twenty
(120)-day period immediately preceding the COC Effective Date or, if more
favorable to the Covered Executive, as in effect generally at any time
thereafter with respect to other peer Executives.

 

(vii)                           Office and Support Staff.  During the COC Employment
Period, the Covered Executive will be entitled to an office or offices of a
size and with furnishings and other appointments, and to an exclusive personal
administrative assistant and other assistance, at least equal to the most
favorable of the foregoing provided to the Covered Executive by the Employer at
any time during the one hundred and twenty (120)-day period immediately
preceding the COC Effective Date or, if more favorable to the Covered
Executive, as provided generally at any time thereafter with respect to other
peer Executives. The Covered Executive will be entitled to pick his or her own
administrative assistant.

 

(viii)                        Paid Time Off.  During the COC Employment Period, the Covered
Executive will be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Employer as in effect
for the Covered Executive at any time during the one hundred and twenty
(120)-day period immediately preceding the COC Effective Date or, if more
favorable to the Covered Executive, as in effect generally at any time
thereafter with respect to other peer Executives.

 

14

 

4.3                               Termination.

 

(a)                                  Death.  The Covered Executive’s employment will
terminate automatically if the Covered Executive dies during the COC Employment
Period.

 

(b)                                 Termination With or without Cause or by Reason of
Disability.  Subject to the other terms of the Plan
(including, without limitation, payment of certain amounts to the Covered
Executive), the Employer may terminate the Covered Executive’s employment
during the COC Employment Period with or without Cause.

 

4.4                               Obligations of the Employer in Connection with a
Change of Control.

 

(a)                                  Termination Payments.  If, during the COC
Employment Period the Employer terminates the Covered Executive’s employment
other than for Cause or Death, or the Covered Executive terminates employment
for Good Reason then the Covered Executive will be entitled to the following:

 

(i)                                     Cash Payments:  The Employer will pay to the Covered
Executive, in a lump sum in cash within thirty (30) days after the Date of
Termination, the aggregate of the following amounts:

 

(A)                              the sum of (1) the Covered Executive’s Annual Base Salary
through the Date of Termination to the extent not previously paid, (2) the
Covered Executive’s business expenses that are reimbursable pursuant to Section 4.2(b) but
have not been reimbursed by the Employer as of the Date of Termination; (3) the
Covered Executive’s Annual Bonus for the fiscal year immediately preceding the
fiscal year in which the Date of Termination occurs, if such bonus has not been
paid as of the Date of Termination; (4) any accrued paid time off to the
extent not theretofore paid (the sum of the amounts described in subclauses
(1), (2), (3) and (4), the “Accrued Obligations”)
provided, that notwithstanding the foregoing, if the Covered Executive has made
an irrevocable election under any deferred compensation arrangement subject to
section 409A of the Code to defer any portion of the annual bonus described in
clause (3) above, then for all purposes of this Article IV
(including, without limitation, Sections 4.5 through 4.7)), such deferral
election, and the terms of the applicable arrangement will apply to the same
portion of the amount described in such clause (3), and such portion will not
be considered as part of the “Accrued Obligations”
but will instead be an “Other Benefit”
(as defined in Section 4.10 below;

 

(B)                                the amount equal to the product of (1) three,  and (2) the sum of (x) the Covered Executive’s
Annual Base Salary and (y) the average of the last three annual bonuses
paid to the Covered Executive; and

 

(ii)                                  Non-Compete Benefits:  Subject to the other terms of the Plan,
including the requirement that Executive comply with the restrictive covenants
in

 

15

 

the Plan Agreement and execute a
Waiver and Release, the Employer will provide the payments and benefits set
forth in Article III.

 

Notwithstanding the foregoing provisions of
Section 4.4(a)(i), in the event that the Covered Executive is a Specified
Employee, amounts that would otherwise be payable and benefits that would
otherwise be provided under Section 4.4(a)(i) during the six
(6)-month period immediately following the Date of Termination (other than the
Accrued Obligations) will instead be paid, with Interest, on any delayed
payment on the Delayed Payment Date; provided, however, that
if the Covered Executive dies following the Date of Termination but prior to
the Delayed Payment Date, such amounts will be paid to the personal
representative of the Covered Executive’s estate within thirty (30) days
following the Covered Executive’s death.

 

(iii)                               Pro Rata Bonus.  “Pro Rata Bonus”
means an amount equal to the product of (i) the Covered Executive’s annual
bonus during year in which the COC Effective Date occurs, if any, and (ii) a
fraction, the numerator of which is the number of days in such year through the
Date of Termination and the denominator of which is three hundred and sixty
five (365).  The Pro Rata Bonus will be
paid at the same time and form specified in the applicable annual incentive
plan.  Notwithstanding the foregoing, in
the event that the successor to the Company by reason of the Change of Control
fails to assume the Company’s annual incentive plan in effect on the COC
Effective Date, and irrespective of whether Executive incurs a termination of
employment, dies or becomes Disabled, Executive will be entitled to receive a
lump sum cash payment in an amount equal to the target bonus specified in the
Company’s annual incentive plan, or if the plan does not specify a target, the
amount which would be payable based on the Company’s forecasted results for
such period established prior to the Change of Control (the “Target Bonus”), subject to applicable withholding for income
and employment taxes.  Such Target Bonus
will be paid within five (5) business days following the date of the
Change of Control provided that amounts payable under the annual incentive plan
are exempt from Section 409A of the Code by reason of the short-term
deferral rule; otherwise, the Target Bonus will be paid at the time such amount
would have otherwise been paid had the annual incentive plan remained in effect
for the remainder of the year in which occurs the COC Effective Date.

 

(iv)                              Other Benefits:  except as otherwise set forth in the last
sentence of Section 4.10, to the extent not theretofore paid or provided,
the Employer will timely pay or provide to Executive any Other Benefits in
accordance with the terms of the underlying plans or agreements.

 

4.5                               Death.  If the Covered Executive dies during the COC
Employment Period, the Employer will provide Executive’s estate or
beneficiaries with all payments due to the Covered Executive as though Executive
had left the employment of the Employer with Good Reason on the date of the
Covered Executive’s death (other than with respect to the application of the
Delayed Payment).  All such payments will
be paid by the Employer to the Covered Executive’s estate or beneficiary, as
applicable, in a lump sum

 

16

 

in cash within thirty (30) days of
the date of the Covered Executive’s death (the “deemed Date
of Termination”).  With
respect to the provision of the Other Benefits, the term “Other Benefits” for
the purposes of this Section 4.5 will include, without limitation, and the
Covered Executive’s estate and/or beneficiaries will be entitled to receive,
benefits at least equal to the most favorable benefits provided by the Employer
to the estates and beneficiaries of peer Executives under such plans, programs,
practices and policies relating to death benefits, if any, as in effect with
respect to other peer Executives and their beneficiaries at any time during the
one hundred and twenty (120)-day period immediately preceding the COC Effective
Date or, if more favorable to the Covered Executive’s estate and/or
beneficiaries, as in effect on the date of the Covered Executive’s death with
respect to other peer Executives of the and their beneficiaries.

 

4.6                               Disability.  If the Covered Executive’s employment is
terminated by the Employer during the COC Employment Period by reason of the
Covered Executive’s Disability, the Covered Executive will be treated as though
the Covered Executive had left the employment of the Employer with Good Reason
as of the Date of Termination.  Except as
otherwise provided herein, all payments will be paid by the Employer to the
Covered Executive in accordance with Section 4.4(a).  With respect to the provision of the Other
Benefits, the term “Other Benefits” for the purposes of this Section 4.6
will include, and the Covered Executive will be entitled to receive (after the
Employer’s termination of the Covered Executive’s employment), disability and
other benefits at least equal to the most favorable of those generally provided
by the Employer to disabled Executives and/or their families in accordance with
such plans, programs, practices and policies relating to disability, if any, as
in effect generally with respect to other peer Executives and their families at
any time during the one hundred and twenty (120)-day period immediately
preceding the COC Effective Date or, if more favorable to the Covered Executive
and/or the Covered Executive’s family, as in effect at any time thereafter
generally with respect to other peer Executives and their families.

 

4.7                               Termination for Cause; Termination Other Than for
Good Reason.  If the Covered Executive’s employment is terminated for Cause
during the COC Employment Period, the Employer will provide the Covered
Executive with the Covered Executive’s Annual Base Salary through the Date of
Termination, payment for accrued but unused paid time off, and the timely
payment or delivery of the Other Benefits (disregarding the proviso set forth
in Section 4.4(a)(i)(A) regarding the deferral of the Annual Bonus),
but no Pro Rata Bonus will be paid to the Covered Executive and the Employer
will have no other severance obligations under Article IV of the Plan;
provided however, the Covered Executive may still receive any payment to which
he or she is entitled under another Article of the Plan.  If the Covered Executive voluntarily
terminates employment during the COC Employment Period, excluding a termination
for Good Reason, the Employer will provide to Executive the Accrued Obligations
and the Pro Rata Bonus and the timely payment or delivery of the Other
Benefits, subject to the proviso set forth in Section 4.4(a)(i)(A) to
the extent applicable, and will have no other severance obligations under Article IV
of the Plan; provided however, that Covered Executive may still receive any
payment to which he or she is entitled under another Article of the
Plan.  In such case, all the Accrued
Obligations will be paid to the Covered Executive in a lump sum in cash within
thirty (30) days of the Date of Termination and the Pro Rata Bonus will be paid
pursuant to the terms of Section 4.4(a)(iii).

 

4.8                               Rabbi Trust.  After any COC Effective Date, to the extent
the payments to be provided to Executive under Section 4.4(a)(i) are not
to be paid until the Delayed Payment Date

 

17

 

and/or there are payments due under
Section 3.1(a) then within five (5) business days of Executive’s Date
of Termination, the Company will deliver cash, in an amount equal to the
aggregate of the cash amounts due under Article III, which is not
immediately payable, and Article IV, which is payable on a Delayed Payment
Date (plus the estimated Interest), to a Trust to be held by the Trustee
pursuant to the terms of the Trust agreement entered into between the Company
and the Trustee prior to the COC Effective Date; provided,
however, that the Trust will not be funded if the funding thereof
would result in taxable income to Executive by reason of section 409A(b) of
the Code; and provided, further, in no event will
any Trust assets at any time be located or transferred outside of the United
States, within the meaning of section 409A(b) of the Code.  Any fees and expenses of the Trustee will be
paid by the Company.  The Trustee may not
be removed by the Company during the five (5)-year period following the Change
of Control.

 

4.9                               Legal Fees.  At anytime after a COC Effective date through
the Covered Executive’s remaining lifetime (or, if longer, through the 20th anniversary of the COC
Effective Date), and regardless of whether or not the Plan has been terminated,
the Employer agrees to pay as incurred (within ten (10) days following the
Employer’s receipt of an invoice from the Covered Executive) to the full extent
permitted by law, all legal fees and expenses that the Covered Executive may
reasonably incur as a result of any contest (regardless of the outcome thereof)
by the Employer, the Covered Executive or others of the validity or
enforceability of, or liability under, any provision of the Plan, the Plan
Agreement or the Waiver and Release, or any guarantee of performance thereof
(including, without limitation, as a result of any contest by the Covered
Executive about the amount of any payment pursuant to the Plan), plus, in each
case, Interest determined as of the date such legal fees and expenses were
incurred.  In order to comply with
section 409A of the Code, in no event will the payments by the Employer under
this Section 4.9 be made later than the end of the calendar year next
following the calendar year in which such fees and expenses were incurred, provided, that the Covered Executive submits an invoice for
such fees and expenses at least ten (10) days before the end of the calendar
year next following the calendar year in which such fees and expenses were
incurred.  The amount of such legal fees
and expenses that the Employer is obligated to pay in any given calendar year
will not affect the legal fees and expenses that the Employer is obligated to
pay in any other calendar year, and the Covered Executive’s right to have the
Employer pay such legal fees and expenses may not be liquidated or exchanged
for any other benefit.

 

4.10                        Non-Exclusivity of Rights.  Nothing in the Plan will
prevent or limit the Covered Executive’s continuing or future participation in
any plan, program, policy or practice provided by the Employer and for which
the Covered Executive may qualify, nor will anything herein limit or otherwise
affect such rights as the Covered Executive may have under any other contract
or agreement with the Employer.  Amounts
that are vested benefits or that the Covered Executive is otherwise entitled to
receive under any plan, policy, practice or program of or any other contract or
agreement with the Employer at or subsequent to the Date of Termination (“Other Benefits”) will be payable in accordance with such
plan, policy, practice or program or contract or agreement, except as
explicitly modified by the Plan.  Without
limiting the generality of the foregoing, the Covered Executive’s resignation
under the Plan, with or without Good Reason, will in no way affect Executive’s
ability to terminate employment by reason of Executive’s “retirement” under any
compensation and benefits plans, programs or arrangements of the Employer,
including without limitation any retirement or pension plans or arrangements

 

18

 

or to be eligible to receive
benefits under any compensation or benefit plans, programs or arrangements of
the Employer, including without limitation any retirement or pension plan or
arrangement of the Employer or substitute plans adopted by the Company or its
successors, and any termination which otherwise qualifies as Good Reason will
be treated as such even if it is also a “retirement” for purposes of any such
plan.  Notwithstanding the foregoing, if
Executive receives payments and benefits pursuant to Article IV, Executive
will not be entitled to any severance pay or benefits under any severance plan,
program or policy of the Employer, unless otherwise specifically provided
therein in a specific reference to the Plan; provided however, that the Covered
Executive will be entitled to receive Non-Compete Payments and the benefits set
forth in Article III, subject to applicable requirements.

 

End of Article IV

 

19

 

ARTICLE V

ADMINISTRATION

 

5.1                               The Plan Administrator.  The overall
administration of the Plan will be the responsibility of the Plan
Administrator.

 

5.2                               Powers of Plan Administrator.  The Plan Administrator
will have sole and absolute discretion regarding the exercise of its powers and
duties under the Plan.  In order to
effectuate the purposes of the Plan, the Plan Administrator will have the
following powers and duties:

 

(a)                                  To appoint the Daily Administrator;

 

(b)                                 To review and render decisions respecting a denial of a claim for
benefits under the Plan;

 

(c)                                  To construe the Plan and to make equitable adjustments for any
mistakes or errors made in the administration of the Plan; and

 

(d)                                 To determine and resolve, in its sole and absolute discretion, all
questions relating to the administration of the Plan and any trust established
to secure the assets of the Plan:

 

(i)            when
differences of opinion arise between the Company, an Affiliate, the Daily
Administrator, the trustee, a Covered Executive, or any of them, and

 

(ii)           whenever
it is deemed advisable to determine such questions in order to promote the
uniform and nondiscriminatory administration of the Plan for the greatest
benefit of all parties concerned.

 

The foregoing list of express powers is
not intended to be either complete or conclusive, and the Plan Administrator
will, in addition, have such powers as it may reasonably determine to be
necessary or appropriate in the performance of its powers and duties under the
Plan.

 

5.3                               Appointment of Daily Administrator.  The Plan Administrator
will appoint the Daily Administrator, who will have the responsibility and duty
to administer the Plan on a daily basis. 
The Plan Administrator may remove the Daily Administrator with or
without cause at any time.  The Daily
Administrator may resign upon written notice to the Plan Administrator.

 

5.4                               Duties of Daily Administrator.  The Daily Administrator
will have sole and absolute discretion regarding the exercise of its powers and
duties under the Plan.  The Daily Administrator
will have the following powers and duties:

 

(a)                                  To enter into, on behalf of the Employer, a Plan Agreement with an
Executive who is deemed a Covered Executive;

 

(b)                                 To direct the administration of the Plan in accordance with the
provisions herein set forth;

 

20

 

(c)                                  To adopt rules of procedure and regulations necessary for the
administration of the Plan, provided such rules are not in consistent with the
terms of the Plan;

 

(d)                                 To determine all questions with regard to rights of Covered
Executives and beneficiaries under the Plan including, but not limited to,
questions involving eligibility of an Executive to participate in the Plan and
the amount of a Covered Executive’s benefits;

 

(e)                                  To make all final determinations and computations concerning the
benefits to which the Covered Executive or his estate is entitled under the
Plan;

 

(f)                                    To enforce the terms of the Plan and any rules and regulations
adopted by the Plan Administrator;

 

(g)                                 To review and render decisions respecting a claim for a benefit
under the Plan;

 

(h)                                 To furnish the Employer with information that the Employer may
require for tax or other purposes;

 

(i)                                     To engage the service of counsel (who may, if appropriate, be
counsel for the Employer), actuaries, and agents whom it may deem advisable to
assist it with the performance of its duties;

 

(j)                                     To prescribe procedures to be followed by Covered Executives in
obtaining benefits;

 

(k)                                  To receive from the Employer and from Covered Executives such
information as is necessary for the proper administration of the Plan;

 

(l)                                     To create and maintain such records and forms as are required for
the efficient administration of the Plan;

 

(m)                               To make all initial determinations and computations concerning the
benefits to which any Covered Executive is entitled under the Plan;

 

(n)                                 To give the trustee of any trust established to serve as a source
of funds under the Plan specific directions in writing with respect to:

 

(i)            making
distribution payments, giving the names of the payees, specifying the amounts
to be paid and the time or times when payments will be made; and

 

(ii)           making
any other payments which the trustee is not by the terms of the trust agreement
authorized to make without a direction in writing by the Daily Administrator;

 

(o)                                 To comply with all applicable lawful reporting and disclosure
requirements of ERISA;

 

21

 

(p)                                 To comply (or transfer responsibility for compliance to the
trustee) with all applicable federal income tax withholding requirements for
benefit distributions; and

 

(q)                                 To construe the Plan, in its sole and absolute discretion, and
make equitable adjustments for any errors made in the administration of the
Plan.

 

The foregoing list of express duties is
not intended to be either complete or conclusive, and the Daily Administrator
will, in addition, exercise such other powers and perform such other duties as
it may deem necessary, desirable, advisable or proper for the supervision and
administration of the Plan.

 

5.5                               Indemnification of Plan Administrator and Daily
Administrator.  To the extent not covered by insurance, or if
there is a failure to provide full insurance coverage for any reason, and to
the extent permissible under corporate by-laws and other applicable laws and
regulations, the Employer agrees to hold harmless and indemnify the Plan
Administrator and Daily Administrator against any and all claims and causes of
action by or on behalf of any and all parties whomsoever, and all losses
therefrom, including, without limitation, costs of defense and reasonable
attorneys’ fees, based upon or arising out of any act or omission relating to
or in connection with the Plan other than losses resulting from the Plan
Administrator’s or any such person’s commission of fraud or willful misconduct.

 

5.6                               Claims for Benefits.

 

(a)                                  Initial Claim.  In the event that a Covered Executive or his
estate (a “claimant”) claims to be eligible
for benefits, or claims any rights under the Plan or seeks to challenge the
validity or terms of the Waiver and Release described in Section 3.1, such
claimant must complete and submit such claim forms and supporting documentation
as will be required by the Daily Administrator, in its sole and absolute
discretion.  Likewise, any claimant who
feels unfairly treated as a result of the administration of the Plan, must file
a written claim, setting forth the basis of the claim, with the Daily
Administrator.  In connection with the
determination of a claim, or in connection with review of a denied claim, the
claimant may examine the Plan, and any other pertinent documents generally
available to Covered Executives that are specifically related to the claim.

 

A written notice of the disposition of any
such claim will be furnished to the claimant within ninety (90) days after the
claim is filed with the Daily Administrator. 
Such notice will refer, if appropriate, to pertinent provisions of the
Plan, will set forth in writing the reasons for denial of the claim if a claim is
denied (including references to any pertinent provisions of the Plan) and,
where appropriate, will describe any additional material or information
necessary for the claimant to perfect the claim and an explanation of why such
material or information is necessary.  If
the claim is denied, in whole or in part, the claimant will also be notified of
the Plan’s claim review procedure and the time limits applicable to such
procedure, including the claimant’s right to arbitration following an adverse
benefit determination on review as provided below.  All benefits provided in the Plan as a result
of the disposition of a claim will be paid as soon as practicable following
receipt of proof of entitlement, if requested.

 

22

 

(b)                                 Request for Review.  Within ninety (90) days after receiving
written notice of the Daily Administrator’s disposition of the claim, the
claimant may file with the Plan Administrator a written request for review of
his claim.  In connection with the
request for review, the claimant will be entitled to be represented by counsel
and will be given, upon request and free of charge, reasonable access to all
pertinent documents for the preparation of his claim.  If the claimant does not file a written request
for review within ninety (90) days after receiving written notice of the Daily
Administrator’s disposition of the claim, the claimant will be deemed to have
accepted the Daily Administrator’s written disposition, unless the claimant was
physically or mentally incapacitated so as to be unable to request review
within the ninety (90) day period.

 

(c)                                  Decision on Review.  After receipt by the Plan Administrator of a
written application for review of his claim, the Plan Administrator will review
the claim taking into account all comments, documents, records and other
information submitted by the claimant regarding the claim without regard to
whether such information was considered in the initial benefit
determination.  The Plan Administrator
will notify the claimant of its decision by delivery or by certified or
registered mail to his last known address.

 

A decision on review of the claim will be
made by the Plan Administrator at its next meeting following receipt of the
written request for review.  If no meeting
of the Plan Administrator is scheduled within forty-five (45) days of receipt
of the written request for review, then the Plan Administrator will hold a
special meeting to review such written request for review within such
forty-five (45) day period.  If special
circumstances require an extension of the forty-five (45) day period, the Plan
Administrator will so notify the claimant and a decision will be rendered
within ninety (90) days of receipt of the request for review.  In any event, if a claim is not determined by
the Plan Administrator within ninety (90) days of receipt of written submission
for review, it will be deemed to be denied.

 

The decision of the Plan Administrator
will be provided to the claimant as soon as possible but no later than five (5)
days after the benefit determination is made. 
The decision will be in writing and will include the specific reasons
for the decision presented in a manner calculated to be understood by the
claimant and will contain references to all relevant Plan provisions on which
the decision was based.  Such decision
will also advise the claimant that he may receive upon request, and free of
charge, reasonable access to and copies of all documents, records and other information
relevant to his claim and will inform the claimant of his right to arbitration
in the case of an adverse decision regarding his appeal.  The decision of the Plan Administrator will
be final and conclusive.

 

5.7                               Arbitration.  In the event the claims review procedure
described in Section 5.6 of the Plan does not result in an outcome thought by
the claimant to be in accordance with the Plan document, he may appeal such
decision prior to a Change of Control to a third party neutral arbitrator.  These arbitration provisions as a final
dispute resolution mechanism will be elective on the part of the Covered
Executive on and after a Change of Control (i.e, the
Covered Executive may pursue legal action in a court of law in lieu of an
appeal to any arbitrator).  The claimant
must appeal to an arbitrator (or pursue legal action in a court of law) within
sixty (60) days after receiving the Plan Administrator’s denial or deemed
denial of his request for review and before bringing suit in court.  The

 

23

 

arbitration will be conducted
pursuant to the American Arbitration Association (“AAA”)
Rules on Employee Benefit Claims.

 

The arbitrator will be mutually selected
by the claimant and the Plan Administrator from a list of arbitrators who are
experienced in nonqualified deferred compensation plan benefit matters that is
provided by the AAA.  If the parties are
unable to agree on the selection of an arbitrator within ten days of receiving
the list from the AAA, the AAA will appoint an arbitrator.  The arbitrator’s review will be limited to
interpretation of the Plan document in the context of the particular facts
involved.  The claimant, the Plan
Administrator and the Employer agree to accept the award of the arbitrator as binding,
and all exercises of power by the arbitrator hereunder will be final,
conclusive and binding on all interested parties, unless found by a court of
competent jurisdiction, in a final judgment that is no longer subject to review
or appeal, to be arbitrary and capricious. 
The claimant, Plan Administrator and the Employer agree that the venue
for the arbitration will be in Austin, Texas. 
The costs of arbitration will be paid by the Employer and all legal fees
and expenses reasonably incurred by the claimant will be reimbursed pursuant to
Section 4.9 (or if inapplicable, such fees and expenses will be incurred by the
claimant except to the extent the arbitrator may require the Employer to
reimburse the claimant for all or a portion of such amounts).

 

The following discovery may be conducted
by the parties: interrogatories, demands to produce documents, requests for
admissions and oral depositions.  The
arbitrator will resolve any discovery disputes by such pre-hearing conferences
as may be needed.  The Employer, Plan
Administrator and claimant agree that the arbitrator will have the power of
subpoena process as provided by law. 
Disagreements concerning the scope of depositions or document
production, its reasonableness and enforcement of discovery requests will be
subject to agreement by the Employer and the claimant or will be resolved by
the arbitrator.  All discovery requests
will be subject to the proprietary rights and rights of privilege and other
protections granted by applicable law to the Employer and the claimant and the
arbitrator will adopt procedures to protect such rights.  With respect to any dispute, the Employer,
Plan Administrator and the claimant agree that all discovery activities will be
expressly limited to matters directly relevant to the dispute and the
arbitrator will be required to fully enforce this requirement.

 

The arbitrator will have no power to add
to, subtract from, or modify any of the terms of the Plan, or to change or add
to any benefits provided by the Plan, or to waive or fail to apply any
requirements of eligibility for a benefit under the Plan.  Nonetheless, the arbitrator will have
absolute discretion in the exercise of its powers in the Plan.  Arbitration decisions will not establish
binding precedent with respect to the administration or operation of the Plan.

 

5.8                               Receipt and Release of Necessary Information.  In implementing the terms
of the Plan, the Plan Administrator and Daily Administrator, as applicable,
may, without the consent of or notice to any person, release to or obtain from
any other insuring entity or other organization or person any information, with
respect to any person, which the Plan Administrator or Daily Administrator
deems to be necessary for such purposes. 
Any Covered Executive or estate claiming benefits under the Plan will furnish
to the Plan Administrator or Daily Administrator, as applicable, such
information as may be necessary to determine eligibility for and amount of
benefit, as a condition of claiming and receiving such benefit.

 

24

 

5.9                               Overpayment and Underpayment of Benefits.  The Daily Administrator
may adopt, in its sole and absolute discretion, whatever rules, procedures and
accounting practices are appropriate in providing for the collection of any
overpayment of benefits.  If a Covered
Executive or his estate receives an underpayment of benefits, the Daily
Administrator will direct that payment be made as soon as practicable to make
up for the underpayment.  If an
overpayment is made to a Covered Executive or his estate, for whatever reason,
the Daily Administrator may, in its sole and absolute discretion, withhold
payment of any further benefits under the Plan until the overpayment has been
collected or may require repayment of benefits paid under the Plan without regard
to further benefits to which the Covered Executive or his estate may be
entitled.

 

5.10                        No Mitigation.  The Employer’s obligation to make the
payments provided for under the Plan and otherwise to perform its obligations
hereunder will not be affected by any set-off, counterclaim, recoupment,
defense, or other claim, right or action that the Employer may have against the
Covered Executive or others.  In no event
will the Covered Executive be obligated to seek other employment or take any
other action by way of mitigation of the amounts payable to Executive under any
of the provisions of the Plan, and except as specifically provided in Section
3.1(c) regarding COBRA coverage, such amounts will not be reduced whether or
not the Covered Executive obtains other employment.

 

End of Article V

 

25

 

ARTICLE VI

AMENDMENT AND TERMINATION OF THE PLAN

 

6.1                               Continuation.  The Company currently intends to continue the
Plan indefinitely. However, if the Plan is discontinued, the Company assumes no
contractual obligation beyond the obligations due to each Executive under the
Plan and their respective Plan Agreements which were executed prior to such
discontinuance.

 

6.2                               Amendment of Plan.  The Company, through an action of the Board
reserves the right in its sole and absolute discretion to amend the Plan in any
respect at any time; provided, however, that except as required to comply with
section 409A of the Code or other applicable law, no amendment to the Plan will
be made that reduces or diminishes the rights of any Covered Executive as set
forth in the Covered Executive’s Plan Agreement without the Covered Executive’s
written consent.  In the event of a
Change of Control, no amendment may be made to the Plan within twenty four (24)
months following a Change of Control without the consent of the affected
Covered Executives.

 

6.3                               Termination of Plan.  The Company, through an
action of the Board, may terminate or suspend the Plan in whole or in part at
any time subject to the same rules regarding the amendment of the Plan in
Section 6.2 (i.e., no Covered Executive’s Plan
Agreement may be terminated without the Covered Executive’s written consent and
the Plan may not be terminated within twenty four (24) months following a Change
of Control without the consent of the affected Covered Executives).

 

6.4                               Termination of Affiliated Company’s Participation.  The Company may terminate
an Affiliated Company’s participation in the Plan at any time by an action of
the Compensation Committee and providing written notice to the Affiliated
Company; provided, however, no such termination shall be allowed to negatively
impact a Covered Executive’s rights to the benefits described in the Plan and
the Covered Executive’s Plan Agreement that is in effect at the time of such
termination.  The effective date of any
such termination will be the later of the date specified in the notice of the
termination of participation or the date on which the Daily Administrator can
administratively implement such termination.

 

6.5                               409A Compliance.  The Plan is intended to comply with the
requirements of section 409A of the Code or an exemption or exclusion therefrom
and will in all respects be administered in accordance with section 409A of the
Code.  In the event that the Company
determines that a provision of the Plan does not comply with section 409A of
the Code, the Company may modify the Plan, in the least restrictive manner
necessary and without any diminution in the value of the payments to the
Covered Executive, in order to cause the provisions of the Plan to comply with
the requirements of section 409A of the Code, so as to avoid the imposition of
taxes and penalties on the Covered Executive pursuant to section 409A of the
Code. Based on existing guidance under section 409A of the Code, the Company
believes and intends that the Non-Compete Payment under Section 3.1(a) and the
Change of Control payment under Section 4.4(a)(i)(B) constitute separate
amounts of deferred compensation under Section 409A of the Code and, as such,
they may each have a separate time and form of payment under Treasury
Regulation §1.409A-3(c).  However, in the
event that subsequent guidance issued under section 409A indicates that this is
not the case and the Non-Compete Payment and the Change of Control payment
under Section 4.4(a)(i)(B) must

 

26

 

be treated as a single payment, the
Change of Control payment will be paid at the same time and in the same form as
the Non-Compete Payment.

 

End of Article VI

 

27

 

ARTICLE VII

MISCELLANEOUS

 

7.1                               No Reduction of Employer Rights.  Except as provided in
Article IV, nothing contained in the Plan will be construed as a contract of
employment between the Employer and a Covered Executive, or as a right of any
Covered Executive to continue in the employment of the Employer, or as a
limitation of the right of the Employer to discharge any of its Covered
Executives, with or without cause.

 

7.2                               Successor to the Company.  The Company will require
any successor or assign (whether direct or indirect, by purchase, exchange,
lease, merger, consolidation, or otherwise) to all or substantially all of the
property and assets of the Company and its Affiliated Companies taken as a
whole, to expressly assume the Plan and to agree to perform under the Plan in
the same manner and to the same extent that the Company and its Affiliated
Companies would be required to perform it if no such succession had taken
place.

 

7.3                               Provisions Binding.  All of the provisions of the Plan will be
binding upon the Company and its Affiliated Companies and any successor to the
Company or any such Affiliated Company. 
Likewise, the provisions of the Plan will be binding upon all persons
who will be entitled to any benefit hereunder, their heirs and personal
representatives.

 

7.4                               Governing Law.  Except to the extent pre-empted by ERISA or
other applicable federal law, the Plan will be governed by and construed in
accordance with the laws of the State of Texas, without reference to principles
of conflict of laws.

 

7.5                               Notice.  All notices and other communications under
the Plan must be in writing and given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

 

(a)                                  Covered Executive.  For notice to the Covered Executive:

 

At the most recent address on file at the
Employer.

 

(b)                                 For the Company and Administrators:  For notice to the
Company, Plan Administrator or Daily Administrator:

 

Whole Foods Market, Inc.

550 Bowie St.

Austin, TX 78703

 

Notice to the Company should be directed
to the attention of the General Counsel.

 

(c)                                  Alternate Address.  If either party provides written notice to
the other in accordance with this Section 7.5, of an alternate address, such
address will be used instead of the addresses specified in clauses (a) or (b).

 

(d)                                 Effective Date.  Notice and communications will be effective
when actually received by the addressee.

 

28

 

7.6                               Severability.  The invalidity or unenforceability of any
provision of the Plan will not affect the validity or enforceability of any
other provision of the Plan.

 

7.7                               Counterparts and Electronic Signatures.  Each Plan Agreement may
be executed in several counterparts, all of which taken together shall
constitute one single agreement. 
Signatures may be made and delivered electronically.

 

7.8                               Withholding.  The Company may withhold from any amounts
payable under the Plan such United States federal, state or local or foreign
taxes as will be required to be withheld pursuant to any applicable law or
regulation.

 

7.9                               No Waiver.  The Covered Executive’s or the Employer’s
failure to insist upon strict compliance with any provision of the Plan or the
failure to assert any right the Covered Executive or the Employer have
hereunder, including, without limitation, the right of the Covered Executive to
terminate employment for Good Reason, will not be deemed to be a waiver of such
provision or right or any other provision or right of the Plan.

 

End of Article VII

 

29

 

IN WITNESS WHEREOF,
this Whole Foods Executive Retention Plan  and Non-Compete Arrangement has been
executed on this       day of                         ,
2010, effective as of May 20, 2010, except as specifically provided otherwise
herein.

 

 

	
   

  	
  WHOLE FOODS MARKET, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  John P. Mackey

  
	
   

  	
   

  	
  Co-Chief Executive Officer

  

 

30

 

APPENDIX
A

 

PLAN
AGREEMENTS

 

Section 2.1(ee) of the Whole Foods
Executive Retention Plan and
Non-Compete Arrangement  (the “Plan”) provides that each Covered Executive will enter into
an Plan Agreement which sets forth the terms and conditions of his benefits
under the Plan and a form copy of such agreement will be attached to the Plan
as Appendix A.

 

A-1

 

WHOLE
FOODS EXECUTIVE RETENTION PLAN

AND NON-COMPETE ARRANGEMENT AGREEMENT

 

THIS EXECUTIVE RETENTION PLAN AND NON-COMPETE ARRANGEMENT AGREEMENT
(“Plan  Agreement”)
is made as of           20   
by and between the Plan Administrator of the Whole Foods Executive Retention
Plan and Non-Compete Arrangement  (the “Plan”)
on behalf of Whole Foods Market Services, Inc. (the “Employer”),
and                                  
(the “Covered Executive”).  This Plan Agreement supersedes and replaces
any existing agreement entered into between the Employer and the Covered
Executive under the Plan and any existing severance, change in control or
similar agreement in effect between the Employer and the Covered Executive and
represents the entire agreement of the parties concerning the subject matter
herein.  Capitalized terms used in this
Plan Agreement that are not defined herein will have the meaning set forth in
the Plan.

 

1.                                      Non-Compete Benefits.

 

(a)                                  Non-Compete Payment.  The amount of the total of all Non-Compete
Payments payable to the Covered Executive under Section 3.1(a) of the
Plan will equal up to                                         
($            )(so long as the Covered Executive complies
with the terms of this Plan Agreement); provided, this amount will be
adjusted to reflect the increase, if any, in the Consumer Price Index (as
defined below) that has occurred during the period beginning on the date of
this Plan Agreement and ending as of the close of the month immediately
preceding the month in which the Covered Executive’s employment is terminated
in accordance with Section 3.1(a) of the Plan; [and further provided,
that the amount of the Non-Compete Payment payable upon a voluntary termination
of employment for a reason other than
Good Reason, Disability or death  will
be subject to Section 1(d) of this Plan Agreement]*.

 

For the
avoidance of doubt, on the date of this Plan Agreement, the Company and the
Covered Executive agree that the Covered Executive has continuously served in
one or more of the positions referenced in Section 3.1(a) of the Plan
from             ;
therefore, for any Date of Termination occurring on or after [15 Years following start date] (the “Total
Benefit Date”), no adjustments to any Non-Compete Payment otherwise
due shall be made pursuant to the terms of the table in Section 3.1(a) of
the Plan.

 

For purposes of Section 1
of this Plan Agreement, the term “Consumer Price Index”
means the Consumer Price Index for all Urban Consumers published by the United
States Bureau of Labor Statistics, or the supplement or successor thereto if
publication of such index should be discontinued.

 

(b)                                 Equity Compensation.  [Subject to the provisions of Section 1(d) of
this Plan Agreement,]* applicable
equity compensation granted to the Covered Executive shall be vested and be
exercisable pursuant to the provisions of Section 3.1(b) of

 

[*These
provisions apply only to the Company’s Co-Chief Executive Officers (other than
John Mackey), Chief Financial Officer and the two other most highly compensated
executive officers of the Company for fiscal 2009.

 

A-2

 

the
Plan (so long as the Covered Executive
complies with the terms of this Plan Agreement).

 

(c)                                  COBRA Coverage.  [Subject to the
provisions of Section 1(d) of this Plan Agreement,]* the Covered Executive shall be entitled to reimbursement
of COBRA premiums pursuant to the provisions of Section 3.1(c) of the
Plan (so long as the Covered Executive
complies with the terms of this Plan Agreement).

 

(d)                                 [Voluntary Termination of Employment.  In the event that the Covered Executive voluntarily
terminates employment with the Company for a reason other than Good Reason,
Disability or death, the Non-Compete Benefits otherwise due and payable shall
not be due and payable in connection with such termination, and instead the
benefits payable, if any, will consist of those benefits described in Sections
1(a), 1(b) and 1(c) of this Plan Agreement but in such amounts as are
negotiated between either one of the two Co-Chief Executive Officers of the
Company and the Covered Executive and documented in a signed writing (the “Negotiated Benefits” which benefits will be
deemed to be Non-Compete Benefits described herein); provided, however that for
purposes of such negotiation the benefits cannot exceed the maximum provided
for in the case of a termination for “Good Reason” under Sections 1(a), 1(b) and
1(c) of this Plan Agreement. 
Notwithstanding the foregoing, if either of the two Co-Chief Executive
Officers of the Company as of the date of this Agreement are involuntarily
terminated or if both of the Co-Chief Executive Officers die and/or otherwise
terminate employment with the Company within forty-five (45) days of each other
(including the situations in which: both die; each person’s employment is
terminated, and one person dies and the other person’s employment is terminated)
and the Covered Executive terminates employment with the Company after the
occurrence of the applicable event(s), the Negotiated Benefits will not be
payable and the amount of Non-Compete Benefits determined under Section 1(a),
(b) and (c) of this Plan Agreement, without regard to this Section 1(d),
shall be payable to the Covered Executive.]*
[In the event that the Covered Executive voluntarily terminates
employment with the Company for a reason other than Good Reason, Disability or
death, the Non-Compete Benefits otherwise due and payable shall not be due and
payable in connection with such termination, and instead the benefits payable,
if any, will consist of those benefits described in Sections 1(a), 1(b) and
1(c) of this Plan Agreement but in such amounts as are negotiated between
the other Co-Chief Executive Officer of the Company and the Covered Executive
(the “Negotiated Benefits” which
benefits will be deemed to be Non-Compete Benefits described herein); provided,
however, that for purposes of such negotiation the benefits cannot exceed the
maximum provided for in the case of a termination for “Good Reason” under
Sections 1(a), 1(b) and 1(c) of this Plan Agreement.  Notwithstanding the foregoing, if the other
of the two Co-Chief Executive Officers of the Company as of the date of this
Agreement dies or terminates employment with the Company for any reason and the
Covered Executive terminates his employment with the Company after the
occurrence of such event, Negotiated Benefits will not be

 

[*These
provisions apply only to the Company’s Co-Chief Executive Officers (other than
John Mackey), Chief Financial Officer and the two other most highly compensated
executive officers of the Company for fiscal 2009.

 

A-3

 

payable and the amount of Non-Compete Benefits
determined under Section 1(a), (b) and (c) of this Plan
Agreement, without regard to this Section 1(d), shall be payable to the
Covered Executive.]#

 

2.                                      Confidentiality and Restrictive Covenants.  As a condition of
receiving the Non-Compete Benefits under Article III of the Plan, as set
forth in Section 1 of this Plan Agreement [including
the Negotiated Benefits that may be payable in the event of the Covered
Executive’s voluntary termination of employment]*,
the Covered Executive agrees to comply with the following confidentiality
provisions and restrictive covenants:

 

(a)                                  Confidentiality Provisions.

 

(i)                                     Definition of Confidential Information. “Confidential Information” means
the existence this Plan Agreement, including all its material terms.  “Confidential Information”
also means any information or material (A) generated or collected by, or
utilized in the operations of, the Employer that relates to the actual or
anticipated business or research and development conducted by or on behalf of
the Employer, or (B) suggested by or resulting from any task assigned to
the Covered Executive or work performed by the Covered Executive for or on
behalf of the Employer, including, for example and without limitation,
information and materials relating or pertaining to the Employer’s financial
performance, financial statements and reports, financial projections,
accounting methods and information, business plans, strategic plans, plans
regarding the Employer’s future growth, development and projects, marketing
plans and strategies, sales methods and strategies, products, pricing
strategies, price lists, vendor lists, vendor information (including, without
limitation, their history of dealings with the Employer), employee files,
employee compensation, skills, performance and qualifications of the Employer’s
personnel, trade secrets, inventions (whether patented or unpatented),
copyrights, service marks, know-how, computer programs, computer code and
related documentation, processes, methods, formulas, research, development,
licenses, permits, and compilations of any of the foregoing information
relating to the actual or anticipated business of the Employer.  Confidential Information does not include
information that properly and lawfully has become generally known to the public
other than as a result of any act or omission by any Covered Executive.

 

Confidential Information also includes
information that belongs to the Employer’s vendors and customers and is not
generally known to the public.  This
includes information that could be used by clients’ competitors to gain an
advantage in the market; client’s marketing plans, business plans, customer
lists/data, organizational structure, pricing, financial data, budgeting and
reporting.

 

[*These
provisions apply only to the Company’s Co-Chief Executive Officers (other than
John Mackey), Chief Financial Officer and the two other most highly compensated
executive officers of the Company for fiscal 2009.

 

#These
provisions apply only to the Company’s Co-Chief Executive Officers (other than
John Mackey).]

 

A-4

 

(ii)                                  Promise to Provide Confidential Information.  The Employer promises
that it will, throughout the course of the Covered Executive’s employment with
the Employer, provide the Covered Executive with Confidential Information.  The Covered Executive acknowledges that the
Employer has invested substantial time, money and effort in developing its Confidential
Information, that this Confidential Information is a valuable, special and
unique asset of the Employer, that the Employer would sustain great loss if
such information were improperly used or disclosed, and that the protection and
maintenance of the Employer’s Confidential Information constitute legitimate
interests to be protected by the Company by the covenants set forth in this Section 2.2.

 

(iii)                               Nondisclosure of Confidential Information.  During the Covered
Executive’s employment with the Employer and at any time thereafter, the
Covered Executive will preserve in strictest confidence, and will not disclose,
copy or take away, either directly or indirectly, or use for the Covered
Executive’s own benefit or the benefit of any third party, any Confidential
Information of the Employer or any confidential or proprietary information or
material received by the Employer from third parties, except as required in the
ordinary course of the Covered Executive’s employment for the benefit of the
Employer.  With respect to other employees
of any Employer or its affiliates (including all parent companies and all
wholly or partially owned subsidiaries), unless approved by a member of the
Employer’s Executive Team, the Covered Executive agrees that he/she will only
discuss this Plan Agreement with the following persons: any Executive Team
Member, the Senior Global Vice President and/or the General Counsel or another
attorney for the Employer. 
Notwithstanding the above, the Covered Executive has the right to
discuss the terms of this Plan Agreement with outside legal counsel,
accountants and other persons who are not employed with an Employer entity and
who have a need to know in order to assist the Covered Executive with the
enforcement and/or protection of any legal right.

 

(iv)                              Return of Confidential Information.  At the end of the Covered
Executive’s employment with the Employer, the Covered Executive agrees to
search for and return to the Employer all property belonging to the Employer
including any documents, records, electronic data, and tangible items and
materials containing or embodying any Employer information or Employer
Confidential Information—whether such information was prepared by the Covered
Executive or by others, and whether such information exists as hard copy or in
electronic form on a Employer-issued computer device, a personal computer
device or any other electronic device. 
All documents, records, computer programs, electronic data, and tangible
items and materials containing or embodying any Confidential Information, including
all copies thereof, whether prepared by the Covered Executive or by others,
will immediately be returned to the Employer upon termination of the Covered
Executive’s employment with the Employer (voluntary or otherwise), or at any
time upon the Employer’s request.  The
Covered Executive understands and agrees that the Covered Executive’s
obligation to maintain the

 

A-5

 

confidentiality of Confidential
Information remains even after the Covered Executive’s employment with the
Employer ends and continues for so long as such Confidential Information
remains not generally known to the public through no fault or breach of this
Plan Agreement by the Covered Executive. 
Notwithstanding the above, the Covered Executive has the right to keep a
copy of the Plan Agreement.

 

(b)                                 Restricted Covenants.  In consideration of the
Employer’s promise to provide Confidential Information and other good and
valuable consideration, the receipt and sufficiency thereof is hereby
acknowledged, the Covered Executive agrees as follows:

 

(i)                                     Covenant Not to Compete.  During the Covered
Executive’s employment with the Employer or its affiliates, including all
parent companies and all wholly or partially owned subsidiaries (collectively,
the “Employer Entities” for purposes of this
Section 2(b)(i)), other than with respect to the Employer Entities, the
Covered Executive will refrain from participating in, providing services to,
planning or organizing any business that is in the business of retail food
service, retail grocery sales or retail grocery distribution.  During the Covered Executive’s employment
and, in the event the Covered Executive is eligible for and elects to receive
the Non-Compete Benefits payable pursuant to Article III, for a period of
five (5) years following the termination of the Covered Executive’s
employment (such additional period, the “Restricted Period”),
the Covered Executive will not, in any geographic region in which any of the
Employer Entities then does business, directly or indirectly, perform
management level services for, consult with or sit on the board of directors
(or similar body)  of any business
competitive with the Employer Entities including any company in the business of
retail food service, retail grocery sales or retail grocery distribution.

 

(ii)                                  Nonsolicitation of Team Members.  During the Covered
Executive’s employment and, in the event the Covered Executive is eligible for
and elects to receive the Non-Compete Benefits payable pursuant to Article III,
the Restricted Period, the Covered Executive will not, on the Covered Executive’s
own behalf or on behalf of any other person, have any contact with a person who
is, during such time frame, an employee of a Employer entity, for the purpose
of discussing that person’s leaving such employment.  The Covered Executive will not, during the
Restricted Period, in any other manner attempt, directly or indirectly, attempt
to hire any employee of an Employer entity or to influence, induce or encourage
any employee of an Employer entity to leave the employment of the Employer.

 

(iii)                               Nondisparagement.
The Covered Executive agrees that the Covered Executive will not disparage the
Employer or one or more of its affiliates (including any parent companies and
any wholly or partially owned subsidiaries), the Board, the Employer’s
executives, the Employer’s employees and the Employer’s products or services
during the term of this Plan Agreement and thereafter.  For purposes of this Plan Agreement,
disparagement does not include (A) compliance with legal

 

A-6

 

process or subpoenas to the extent
only truthful statements are rendered in such compliance attempt, (B)
statements in response to an inquiry from a court or regulatory body, or (C)
statements or comments in rebuttal of media stories or alleged media stories.

 

(iv)                              Termination and
Forfeiture.  If during the Covered Executive’s employment
with the Employer, the Covered Executive materially violates any of the
covenants and restrictions contained in this Plan Agreement, such action may be
grounds for the termination of the Covered Executive’s employment for
Cause.  If the Covered Executive is
eligible for and elects to receive the Non-Compete Benefits payable pursuant to
Article III of the Plan and during the Restricted Period the Covered Executive
violates any of the covenants and restrictions contained in this Plan
Agreement, the Covered Executive will forfeit the right to any and all future
Non-Compete Benefits.  The provisions of
this Plan Agreement are in addition to any forfeiture provisions of other Employer
plans, programs or agreements applicable to the Covered Executive. The Covered
Executive specifically recognizes and affirms that the restrictive covenants
set forth in this Plan Agreement are a material part of this Plan Agreement
without which the Employer would not have entered into this Plan Agreement.

 

(v)                                 Representations.
The Covered Executive has carefully read and considered the provisions of
Paragraphs 2(b)(i) through (iv) of this Plan Agreement and agrees that the
restrictions set forth therein, including, but not limited to, the time period
and geographic area of the restrictions and the scope of activities restricted
are fair and reasonable and are supported by sufficient and valid
consideration, and that these restrictions do not impose any greater restraint
than is necessary to protect the goodwill and other legitimate business
interests of the Employer, its officers, directors, shareholders and other
employees. The Covered Executive acknowledge that the covenants and agreements
in Paragraphs 2(b)(i) through (iv) of this Plan Agreement are ancillary to and
a part of an otherwise enforceable agreement entered into at the time these
covenants are made, namely, the agreement concerning provision and
confidentiality of Confidential Information. The Covered Executive acknowledges
that the Covered Executive’s agreement to be bound by the restrictive covenants
set forth in Paragraphs 2(b)(i) through (iv) of this Plan Agreement is a
concurrent and material inducement for the Employer (A) to enter into the
ancillary terms of this Plan Agreement, (B) to continue the Covered Executive’s
employment, and (C) to provide the Covered Executive with the promises and
consideration set forth in this Plan Agreement. 
The Covered Executive agrees that each ancillary agreement set forth in
this Plan Agreement, is otherwise enforceable and independently sufficient to
support all of the protective covenants in Paragraphs 2(b)(i) through (iv) of
this Plan Agreement. The Covered Executive acknowledges that these restrictions
will not prevent the Covered Executive from obtaining gainful employment in the
Covered Executive’s occupation or field of expertise or cause the Covered
Executive undue hardship and that there are numerous other employment

 

A-7

 

and business opportunities
available to the Covered Executive that are not affected by these restrictions.

 

(vi)                              Reformation.  Should an arbitrator or court determine that
the scope of any of the covenants contained in Paragraphs 2(b)(i) through (iv)
of this Plan Agreement exceed the maximum restrictiveness such arbitrator or
court deems reasonable and enforceable, the parties intend that the arbitrator
or court should reform, modify and enforce the provision to such narrower scope
as it determines to be reasonable and enforceable.  Any reduction in the Restricted Period will
concomitantly reduce the obligation to provide the Non-Compete Benefits to the
duration of the revised Restricted Period.

 

(vii)                           Election.  If at any time the Covered Executive elects
not to receive the Non-Compete Benefits, then the Employer agrees it will not
enforce this Paragraph 2(b) during the portion of the Restriction Period
occurring after such election in exchange for the Covered Executive’s commitment
to not seek any or addition, as applicable, Non-Compete Benefits, including,
without limitation, any additional Non-Compete Payment.

 

3.                                      Change in Control Benefits.  In the event of a Change
of Control, the Covered Executive will also be entitled to the rights and
benefits set forth in Article IV of the Plan, as in effect on the date of this
Plan Agreement, including the termination payment described in Section 4.4(a)
and subject to the Covered Executive’s satisfaction of the terms and conditions
that are required to receive such benefits.

 

4.                                      Dispute Resolution.  Any dispute or claim for benefits under the
Plan must be resolved through the claims procedure set forth in Article V of
the Plan which procedure, prior to a Change of Control culminates in binding
arbitration, if elected by the Covered Executive.  By accepting the benefits provided under the
Plan, the Covered Executive hereby agrees to binding arbitration as the final
means of dispute resolution (if the Covered Executive elects to pursue binding
obligation) with respect to the Plan prior to a Change of Control.

 

5.                                      Injunctive Relief.  Notwithstanding anything contained in the
Plan or Section 4 to the contrary, if the Covered Executive breaches, or
threatens to commit a breach of, any of the restrictive covenants of Section
2(b) of this Plan Agreement (other than the restrictive covenants set forth in
Section 2(b)(i)), the Company will also have the right and remedy to seek from
any court of competent jurisdiction specific performance of such provisions or
injunctive relief against any act which would violate any of Section 2(b) of
this Plan Agreement, it being acknowledged and agreed that any such breach or
threatened breach will cause irreparable injury to the Company.  The Company and the Covered Executive (a)
agree that any suit, action or legal proceeding permitted by this Section 5 may
be brought in the courts of record of the State of Texas in Travis County or
the court of the United States, Western District of Texas; (b) consent to the jurisdiction
of each such court in any suit, action or proceeding permitted by this Section;
and (c) waive any objection that they may have to the laying of venue of any
such suit, action or proceeding permitted by this Section 5 in any of such
courts.

 

6.                                      Plan Incorporated by Reference. The Plan is hereby incorporated into and made a part of this
Plan Agreement as though set forth in full herein.  The parties will be bound by

 

A-8

 

and have the benefit of each and
every provision of the Plan, as amended from time to time.

 

7.                                      Amendment.  This Plan Agreement may be amended at any time by the mutual
agreement of the parties; provided, that no such amendment will be effective
unless evidenced by a written instrument executed by both the Employer
and the Covered Executive.

 

IN WITNESS WHEREOF,
the parties hereto have entered into this Plan Agreement on            ,
20   .

 

 

	
  COVERED EXECUTIVE

  	
   

  	
  PLAN ADMINISTRATOR

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WHOLE FOODS MARKET, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
  John P. Mackey

  
	
  Title:

  	
   

  	
   

  	
   

  	
  Co-Chief Executive Officer

  

 

A-9

 

EXHIBIT
A

 

WAIVER
AND RELEASE

 

In exchange for the payment to me of the
Non-Compete Benefits described in Article III of the Whole Foods Executive
Retention Plan and Non-Compete
Arrangement (the “Plan”), the
terms of which I understand are incorporated herein by reference, which
Non-Compete Benefits are in addition to any remuneration or benefits to which I
am already entitled, I agree to the following restrictive covenants and to
waive all of my claims against and release (a) Whole Foods Market, Inc. and its
predecessors, successors and assigns (collectively referred to as “WFMI”), (b) all of the affiliates (including all parent
companies and all wholly or partially owned subsidiaries) of WFMI and their
directors, officers, employees, agents, insurers, predecessors, successors and
assigns (collectively referred to as the “Affiliates”),
and (c) WFMI and its Affiliates’ (collectively referred to as the “Company”) employee benefit plans and the fiduciaries and
agents of said plans (collectively referred to as the “Benefit
Plans”) from any and all claims, demands, actions, liabilities and
damages arising out of or relating in any way to my employment with or
separation from employment with the Company other than amounts due pursuant to
Section 4.4 of the Plan and rights and benefits I am entitled to under the
Benefit Plans.  (WFMI, its Affiliates and
the Benefit Plans are sometimes hereinafter collectively referred to as the “Released Parties”).

 

I understand that signing this Waiver and Release
is an important legal act.  I acknowledge
that I am hereby advised in writing to consult an attorney before signing this
Waiver and Release.  I understand that,
in order to be eligible for the Non-Compete Payment, I must sign (and return to
the Company) this Waiver and Release.  I
acknowledge that I have been given at least [21] days to consider whether to
accept the Non-Compete Payment and therefore execute this Waiver and Release.

 

In exchange for the payment to me of the
Non-Compete Benefits, (i) I agree not to pursue a legal claim in any local,
state and/or federal court regarding or relating in any way to my employment
with or separation from employment with the Company, and (ii) I knowingly and
voluntarily waive all claims and release the Released Parties from any and all
claims, demands, actions, liabilities, and damages, whether known or unknown,
arising out of or relating in any way to my employment with or separation from
employment with the Company, except to the extent that my rights are vested
under the terms of any employee benefit plans sponsored by the Company
(including, without limitation, the Plan and any related agreements thereunder)
and except with respect to such rights or claims as may arise after the date
this Waiver and Release is executed.

 

This Waiver and Release includes, but is
not limited to, claims and causes of action under:  Title VII of the Civil Rights Act of 1964, as
amended; the Age Discrimination in Employment Act of 1967, as amended,
including the Older Workers Benefit Protection Act of 1990; the Civil Rights
Act of 1866, as amended; the Civil Rights Act of 1991; the Americans with
Disabilities Act of 1990; the Workers Adjustment and Retraining Notification
Act of 1988; the Pregnancy Discrimination Act of 1978; the Employee Retirement
Income Security Act of 1974, as amended; the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended; the Family and Medical Leave Act of 1993;
the Fair Labor Standards Act; the Occupational Safety and Health Act; the Texas
Labor Code §21.001 et. seq.; the Texas Labor Code; claims in connection with
workers’ compensation, retaliation or “whistle blower” statutes; and/or
contract, tort, defamation, slander, wrongful termination or any other state or
federal regulatory, statutory

 

A-10

 

or common law.  Notwithstanding the above, I further
acknowledge that I am not waiving and am not being required to waive any right
that cannot be waived under law (including, without limitation, the right to
file an administrative charge or participate in an administrative investigation
or proceeding); provided that I disclaim and waive any right to share or participate
in any monetary award resulting from the prosecution of such charge or
investigation or proceeding.

 

Further, I expressly represent that no
promise or agreement which is not expressed in this Waiver and Release has been
made to me in executing this Waiver and Release, and that I am relying on my
own judgment in executing this Waiver and Release, and that I am not relying on
any statement or representation of the Company or any of its agents.  I agree that this Waiver and Release is
valid, fair, adequate and reasonable, is with my full knowledge and consent,
was not procured through fraud, duress or mistake and has not had the effect of
misleading, misinforming or failing to inform me.  I acknowledge and agree that the Company will
withhold minimum amount of any taxes required by federal or state law from the
Non-Compete Benefits otherwise payable to me.

 

Notwithstanding the foregoing, I do not
release and expressly retain (A) all rights to indemnity, contribution, and a
defense, and directors and officers and other liability coverage and third
party insurance coverage that I may have under any statute, the bylaws of the
Company or by other agreement; and (B) the right to any, unpaid reasonable
business expenses and any accrued benefits payable under any Company welfare
plan or tax-qualified plan.

 

I acknowledge that payment of the
Non-Compete Benefits is not an admission by any one or more of the Released
Parties that they engaged in any wrongful or unlawful act or that they violated
any federal or state law or regulation. 
I acknowledge that the Company has not promised me continued employment
or represented to me that I will be rehired in the future.  I acknowledge that my employer and I
contemplate an unequivocal, complete and final dissolution of my employment
relationship.  I acknowledge that this
Waiver and Release does not create any right on my part to be rehired by the
Company, and I hereby waive any right to future employment by the Company.

 

I understand that for a period of seven
(7) calendar days following the date that I sign this Waiver and Release, I may
revoke my acceptance of this Waiver and Release, provided that my written
statement of revocation is received on or before that seventh day by [Name and/or Title], [address], facsimile number:                     ,
in which case the Waiver and Release will not become effective.  If I timely revoke my acceptance of this
Waiver and Release, the Company will have no obligation to provide the
Non-Compete Benefits to me.  I understand
that failure to revoke my acceptance of the offer within seven (7) calendar
days from the date I sign this Waiver and Release will result in this Waiver
and Release being permanent and irrevocable.

 

Should any of the provisions set forth in
this Waiver and Release be determined to be invalid by a court, agency or other
tribunal of competent jurisdiction, it is agreed that such determination will
not affect the enforceability of other provisions of this Waiver and
Release.  I acknowledge that this Waiver
and Release sets forth the entire understanding and agreement between me and
the Company concerning the subject matter of this Waiver and Release and
supersede any prior or contemporaneous oral and/or written agreements or
representations, if any, between me and the Company.

 

A-11

 

I acknowledge that I have read this Waiver
and Release have had an opportunity to ask questions and have it explained to
me, I am signing this Waiver and Release knowingly and voluntarily and with the
advice of any attorney I have retained to advise me with respect to it, and
that I understand that this Waiver and Release will have the effect of
knowingly and voluntarily waiving any action I might pursue, including breach
of contract, personal injury, retaliation, discrimination on the basis of race,
age, sex, national origin, or disability and any other claims arising prior to
the date of this Waiver and Release.

 

I represent that I am not aware of any
claim by me other than the claims that are released in this Waiver and
Release.  By execution of this document,
I do not waive or release or otherwise relinquish any legal rights I may have
which are attributable to or arise out of acts, omissions, or events of the
Company which occur after the date of the execution of this Waiver and Release.

 

 

	
   

  	
   

  
	
  Covered Executive’s Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Covered Executive’s Printed Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Covered Executive’s Signature Date

  	
   

  

 

A-12Exhibit 10.21

 

OCCAM NETWORKS, INC.

 

AMENDMENT TO INDEMNIFICATION
AGREEMENT

 

THIS
AMENDMENT TO INDEMNIFICATION AGREEMENT (this “Amendment”) is entered
into as of August     , 2010 by and between Occam Networks,
Inc., a Delaware corporation (the “Company”) and                              
(“Indemnitee”).

 

WHEREAS,
the Company and Indemnitee are parties to an Indemnification Agreement (the “Agreement”);

 

WHEREAS,
the Company and Indemnitee desire to amend the Agreement as hereinafter set
forth;

 

WHEREAS,
pursuant to Section 10 of the Agreement, the Agreement may be amended by a
writing executed by the Company and Indemnitee; and

 

WHEREAS,
unless otherwise defined in this Amendment, capitalized terms used in this
Amendment shall have the meaning ascribed to them in the Agreement.

 

NOW,
THEREFORE, for and in consideration of the foregoing and of the mutual
covenants and agreements hereinafter set forth, the parties hereto agree as
follows:

 

1.             Amendment to
Section 2 of the Agreement.  Section 2 of the Agreement is hereby amended
by inserting a new Section 2(g) that reads in its entirety as follows:

 

“(g)         Primary
Responsibility.   The Company acknowledges that
Indemnitee has certain rights to indemnification and advancement of expenses
provided by                      
and certain affiliates thereof (collectively, the “Secondary Indemnitors”).
The Company agrees that, as between the Company and the Secondary Indemnitors,
the Company is primarily responsible for amounts required to be indemnified or
advanced under the Company’s certificate of incorporation or bylaws or this
Agreement and any obligation of the Secondary Indemnitors to provide
indemnification or advancement for the same amounts is secondary to those
Company obligations. The Company waives any right of contribution or
subrogation against the Secondary Indemnitors with respect to the liabilities
for which the Company is primarily responsible under this Section 2(g). In the
event of any payment by the Secondary Indemnitors of amounts otherwise required
to be indemnified or advanced by the Company under the Company’s certificate of
incorporation or bylaws or this Agreement, the Secondary Indemnitors shall be
subrogated to the extent of such payment to all of the rights of recovery of
Indemnitee for indemnification or advancement of expenses under the Company’s
certificate of incorporation or bylaws or this Agreement or, to the extent such
subrogation is unavailable and contribution is found to be the applicable
remedy, shall have a right of contribution with respect to the amounts paid.
The Secondary Indemnitors are express third-party beneficiaries of the terms of
this Section 2(g).”

 

 

2.             Amendment to
Section 18 of the Agreement.  The Company’s address set forth in Section 18
of the Agreement is hereby amended and restated in its entirety as follows:

 

Occam
Networks, Inc.

6868
Cortona Drive

Santa
Barbara, California 93117

Attention:
Chief Executive Officer

 

3.             Miscellaneous.

 

(a)           Governing Law.  This Amendment shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware
applicable to contracts made and to be performed in such State without giving
effect to its principles of conflicts of laws. 
The Company and Indemnitee hereby irrevocably and unconditionally (i)
agree that any action or proceeding arising out of or in connection with this
Amendment may be brought in the Delaware Court of Chancery, (ii) consent to
submit to the jurisdiction of the Delaware Court of Chancery for purposes of
any action or proceeding arising out of or in connection with this Amendment,
(iii) waive any objection to the laying of venue of any such action or
proceeding in the Delaware Court of Chancery, and (iv) waive, and agree not to
plead or to make, any claim that any such action or proceeding brought in the
Delaware Court of Chancery has been brought in an improper or inconvenient
forum.

 

(b)           Binding Effect.  This Amendment shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto and their
respective successors (including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business
and/or assets of the Company), assigns, spouses, heirs and personal and legal
representatives.

 

(c)           Continuing Agreement.  Except as specifically amended hereby, all of
the terms of the Agreement shall remain and continue in full force and effect
and are hereby confirmed in all respects.

 

(d)           Execution in Counterparts.  This Amendment may be executed by facsimile
signature and in any number of counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

 

(e)           Amendment of this Amendment.  No supplement, modification or amendment of
this Amendment shall be binding unless executed in writing by both of the
parties hereto.  No waiver of any of the
provisions of this Amendment shall be binding unless in the form of a writing
signed by the party against whom enforcement of the waiver is sought, and no
such waiver shall operate as a waiver of any other provisions hereof (whether
or not similar), nor shall such waiver constitute a continuing waiver.  Except as specifically provided herein, no
failure to exercise or any delay in exercising any right or remedy hereunder
shall constitute a waiver thereof.

 

[Remainder of Page
Intentionally Left Blank]

 

2

 

IN WITNESS WHEREOF, the undersigned have duly executed this Amendment,
or have caused this Amendment to be duly executed on their behalf, as of the
date first written above.

 

 

	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
  OCCAM
  NETWORKS, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEMNITEE,

  
	
   

  	
  an
  individual

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Indemnitee

  
	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
				

 

[Amendment to
Indemnification Agreement]

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]