Document:

EX-10.5

 Exhibit 10.5 

PFENEX INC. 
 EXECUTIVE
EMPLOYMENT AGREEMENT 
 This Executive Employment Agreement (the “Agreement”) is entered into by and
between Pfenex Inc. (the “Company”), and Martin Brenner (“Executive”). This Agreement will be effective as the date Executive commences employment with the Company (the “Effective Date”). It is
expected that the Effective Date will be March 18, 2019. 
 1.        
Duties and Scope of Employment. 
 (a)         Positions and
Duties. Effective as of the Effective Date, Executive will serve as the Company’s Sr. Vice President, Chief Scientific Officer. Executive will render such business and professional services in the performance of Executive’s duties,
consistent with Executive’s position within the Company, as will reasonably be assigned to Executive by the Company’s Chief Executive Officer. The period of Executive’s employment under this Agreement is referred to herein as the
“Employment Term.” 
 (b)         Obligations. During the
Employment Term, Executive will perform Executive’s duties faithfully and to the best of Executive’s ability and will devote Executive’s full business efforts and time to the Company. For the duration of the Employment Term, Executive
agrees not to actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the Company’s board of directors (the “Board”), except as provided
in Schedule 1. 
 2.         At-Will
Employment. The parties agree that Executive’s employment with the Company will be “at-will” employment and may be terminated at any time with or without Cause or notice. Executive
understands and agrees that neither Executive’s job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or
otherwise, of Executive’s employment with the Company. However, as described in this Agreement, Executive may be entitled to severance benefits depending on the circumstances of Executive’s termination of employment with the Company. 

3.         Compensation. 

(a)         Base Salary. Effective as of the Effective Date, the Company will
pay Executive an annual salary of $360,000.00 as compensation for Executive’s employment services to the Company (the “Base Salary”). The Base Salary will be paid periodically in accordance with the Company’s normal
payroll practices and be subject to the usual, required withholdings. Executive’s annual salary will be subject to review and adjustments as may be made based upon the Company’s normal performance review practices. The Company may modify
job titles, salaries and benefits from time to time as it deems necessary. 

 (b)         Relocation Bonus;
Temporary Living Expenses; Airline Expenses. Executive will receive a one-time cash relocation bonus of $100,000, less applicable withholdings, payable on the first Company payroll date following the
Effective Date (the “Relocation Bonus”). In addition, the Company will pay or otherwise reimburse Executive for the actual, reasonable expenses incurred by Executive through the date that is 3 months following the Effective Date,
for temporary lodging in the San Diego Metropolitan area and commercial airline tickets for Executive and his spouse (not to exceed 15 airline trips in total), in each case, to commute from their current home to San Diego (all such incurred
expenses, the “Relocation Expenses”), provided that Executive provides substantiation for all Relocation Expenses in accordance with the Company’s expense reimbursement policy within 45 days of the date they are incurred and,
with respect to any reimbursement, the Company reimburses the Relocation Expenses within 30 days of the date Executive submits the substantiation and makes the request for reimbursement. The payment of the Relocation Bonus and any substantiated
Relocation Expenses is subject to Executive remaining employed through the payment date. Notwithstanding the foregoing, if, (i) prior to the second anniversary of the Effective Date, Executive’s employment with the Company terminates by
reason of the Executive’s voluntary resignation other than for Good Reason or the Company’s termination for Cause, or (ii) prior to 180 days following the Effective Date Executive does not relocate to the San Diego Metropolitan area
(the earlier of such dates, the “Measurement Date”), then, Executive must repay the gross amount of the Relocation Bonus plus any paid Relocation Expenses to the Company within 30 days of earlier of the Measurement Date, and
Executive will not be entitled to any additional amount of the Relocation Bonus or the Relocation Expenses. 
 (c)
        Target Bonus. Executive will be eligible to receive an annual discretionary bonus of up to thirty-five percent (35%) of Executive’s Base Salary upon achievement of performance objectives to
be determined by the Board in its sole discretion (the “Target Bonus”). The Target Bonus will be prorated for the calendar year in which Executive commences employment based on the number of days Executive is employed with the
Company in the calendar year. The Target Bonus, or any portion thereof, will be paid, less applicable withholdings, as soon as practicable after the Board determines that the Target Bonus has been earned, but in no event shall the Target Bonus be
paid after the later of (i) the fifteenth (15th) day of the third (3rd) month following the close of the Company’s fiscal year in
which the Target Bonus is earned or (ii) March 15 following the calendar year in which the Target Bonus is earned. Executive’s Target Bonus will be subject to review and adjustments as may be made based upon the Company’s normal
performance review practices. 
 (d)         Stock Option. Subject to the
approval of the Board (or a committee thereof), Executive will be granted a stock option to purchase 82,000 shares of the Company’s common stock at an exercise price per share equal to the fair market value on the date of grant (the
“Option”). Subject to the accelerated vesting provisions set forth herein, the Option will vest as to 25% of the shares subject to the Option one (1) year after the Effective Date, and as to 1148th of the shares subject to the
Option monthly thereafter on the same day of the month as the Effective Date (and if there is no corresponding day, the last day of the month), so that the Option will be fully vested and exercisable four (4) years from the Option’s date
of grant, subject to Executive continuing to provide services to the Company through the relevant vesting dates. Except as provided herein, the Option 

  
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 will be subject to the terms and conditions of an equity incentive plan and related stock option
agreement approved by the Board (or a committee thereof), including vesting requirements (collectively, the “Equity Documents”). No right to any stock is earned or accrued until such time that vesting occurs, nor does the grant
confer any right to continue vesting or employment. 
 4.         Employee
Benefits. During the Employment Term, Executive will be entitled to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other senior executives of the Company. The Company
reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time. 

5.         Business Expenses. The Company will reimburse Executive for
reasonable travel, entertainment or other expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in
effect from time to time. Nothing in this Section 5 shall impact the expense reimbursement set forth in Section 3(b). 

6.         Severance. 

(a)         Termination for other than Cause, Death or Disability Apart from a
Change of Control. If, outside of the Change of Control Period, (i) the Company (or any parent or subsidiary or successor of the Company) terminates Executive’s employment with the Company other than for Cause, death or Disability, or
(ii) the Executive resigns from such employment for Good Reason, then, subject to Section 7, Executive will be entitled to receive: 

(i)         continuing payments of severance pay for a period of nine (9) months
at a rate equal to (x) the sum of (A) seventy-five percent (75%) of Executive’s Base Salary rate, as then in effect, plus (B) the sum of all performance bonuses paid to Executive for the Company’s fiscal year
immediately preceding the fiscal year in which Executive’s termination of employment occurs divided by (y) nine (9). The severance will be paid, less applicable withholdings, in installments over the severance period described
herein with the first payment to commence on the sixty-first (61st) day following Executive’s termination of employment (and include any severance payments that otherwise would have been paid to Executive within the sixty (60) days
following Executive’s termination date), with any remaining payments paid in accordance with the Company’s normal payroll practices for the remainder of the severance period following Executive’s termination of employment (subject to
any delay as may be required by Section 7(c)). 
 (ii)         if Executive
elects continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) within the time period prescribed pursuant to COBRA for Executive and Executive’s eligible dependents,
then the Company will provide Executive for the COBRA premiums for such coverage (at the coverage levels in effect immediately prior to Executive’s termination) until the earlier of (A) a period of nine (9) months from the date of
termination or (B) the date upon which Executive and/or Executive’s eligible dependents are no longer eligible for COBRA continuation coverage. Notwithstanding the first sentence of this Section 6(a)(ii), if the Company determines in
its sole discretion that it cannot provide the foregoing benefit without potentially violating, or being subject to an excise tax under, 

  
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 applicable law (including, without limitation, Section 2716 of the Public Health Service
Act), the Company will in lieu thereof provide to Executive a taxable monthly payment, payable on the last day of a given month (except as provided by the following sentence), in an amount equal to the monthly COBRA premium that Executive would be
required to pay to continue the group health coverage for Executive and/or Executive’s eligible dependents in effect on the termination of employment date (which amount will be based on the premium for the first month of COBRA coverage), which
payments will be made regardless of whether Executive and/or Executive’s eligible dependents elect COBRA continuation coverage and will commence on the month following Executive’s termination of employment and will end on the earlier of
(x) the date upon which Executive obtains other employment or (y) the date the Company has paid an amount equal to nine (9) payments. Any such taxable monthly payments that otherwise would have been paid to Executive within the sixty
(60) days following Executive’s termination date instead will be paid on the sixty-first (61st) day following Executive’s termination of employment, with any remaining payments paid as provided in the prior sentence (subject to any
delay as may be required by Section 7(c)). 
 (b)         Termination for
other than Cause. Death or Disability or Resignation by Executive for Good Reason Related to a Change of Control. If, within the Change of Control Period (i) the Company (or any parent or subsidiary or successor of the Company) terminates
Executive’s employment with the Company other than for Cause, death or Disability, or (ii) the Executive resigns from such employment for Good Reason, then, subject to Section 7, Executive will be entitled to receive: 

(i)         a lump sum payment equal to one hundred and fifty percent (150%) of the
sum of: (A) Executive’s Base Salary, as then in effect, or if greater, at the level in effect immediately prior to the Change of Control, plus (B) Executive’s Target Bonus in effect for the fiscal year in which
Executive’s termination of employment occurs. The severance will be paid, less applicable withholdings, on the sixty-first (61st) day following Executive’s termination of employment in accordance with the Company’s normal payroll
practices (subject to any delay as may be required by Section 7(c)). For the avoidance of doubt, if (x) Executive incurred a termination of employment prior to a Change of Control that qualifies Executive for severance payments under
Section 6(a)(i); and (y) a Change of Control occurs within the three (3)-month period following Executive’s termination of employment that qualifies Executive for the superior benefits under this Section 6(b)(i), then Executive
shall be entitled to a lump-sum payment of the amount calculated under this Section 6(b)(i), less amounts already paid under Section 6(a)(i). 

(ii)         if Executive elects continuation coverage pursuant to COBRA within the
time period prescribed pursuant to COBRA for Executive and Executive’s eligible dependents, then the Company will provide Executive for the COBRA premiums for such coverage (at the coverage levels in effect immediately prior to Executive’s
termination) until the earlier of (A) a period of eighteen (18) months from the date of termination or (B) the date upon which Executive and/or Executive’s eligible dependents are no longer eligible for COBRA continuation
coverage; and 
 (iii)         accelerated vesting as to one hundred percent (100%)
of Executive’s then-outstanding equity awards to acquire Company common stock. 

  
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 (c)         Termination for Cause,
Death or Disability; Resignation without Good Reason. If Executive’s employment with the Company (or any parent or subsidiary or successor of the Company) terminates voluntarily by Executive (except upon resignation for Good Reason), for
Cause by the Company or due to Executive’s death or Disability, then (i) all vesting will terminate immediately with respect to Executive’s outstanding equity awards, (ii) all payments of compensation by the Company to Executive
hereunder will terminate immediately (except as to amounts already earned), and (iii) Executive will    only    be eligible    for severance benefits in accordance with the
Company’s established policies, if any, as then in effect. 
 (d)        
Exclusive Remedy. In the event of a termination of Executive’s employment with the Company (or any parent or subsidiary or successor of the Company), the provisions of this Section 6 are intended to be and are exclusive and in lieu
of any other rights or remedies to which Executive or the Company may otherwise be entitled, whether at law, tort or contract, in equity, or under this Agreement, including any prior employment agreements entered into between the Company and
Executive. Executive will be entitled to no severance or other benefits upon termination of employment with respect to acceleration of award vesting or severance pay other than those benefits expressly set forth in this Section 6. 

7.         Conditions to Receipt of Severance; No Duty to Mitigate. 

(a)         Separation Agreement and Release of Claims. The receipt of any
severance pursuant to Section 6(a) or (b) will be subject to Executive signing and not revoking a separation agreement and release of claims in a form reasonably satisfactory to the Company (the “Release”) and provided
that such Release becomes effective and irrevocable no later than sixty (60) days following the termination date (such deadline, the “Release Deadline”). If the Release does not become effective and irrevocable by the Release
Deadline, Executive will forfeit any rights to severance or benefits under this Agreement. In no event will severance payments or benefits be paid or provided until the Release becomes effective and irrevocable. 

(b)         Reserved. 

(c)         Section 409A. 

(i)         Notwithstanding anything to the contrary in this Agreement, no severance
pay or benefits to be paid or provided to Executive, if any, pursuant to this Agreement that, when considered together with any other severance payments or separation benefits, are considered deferred compensation under Code Section 409A, and
the final regulations and any guidance promulgated thereunder (“Section 409A”) (together, the “Deferred Payments”) will be paid or otherwise provided until Executive has a “separation from service” within
the meaning of Section 409A. Similarly, no severance payable to Executive, if any, pursuant to this Agreement that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section l.409A- 1(b)(9) will be payable until
Executive has a “separation from service” within the meaning of Section 409A. 

  
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 (ii)         Notwithstanding anything to
the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s termination (other than due to death), then the Deferred Payments that are payable within the
first six (6) months following Executive’s separation from service, will become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation from
service. All subsequent Deferred Payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following Executive’s
separation from service, but prior to the six (6) month anniversary of the separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of
Executive’s death and all other Deferred Payments will be payable in accordance with the payment schedule applicable to each payment or benefit. Each payment and benefit payable under this Agreement is intended to constitute a separate payment
for purposes of Section l.409A-2(b)(2) of the Treasury Regulations. 

(iii)         Any amount paid under this Agreement that satisfies the requirements of
the “short-term deferral” rule set forth in Section l.409A-l(b)(4) of the Treasury Regulations will not constitute Deferred Payments for purposes of clause (i) above. 

(iv)         Any amount paid under this Agreement that qualifies as a payment made as
a result of an involuntary separation from service pursuant to Section l .409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit (as defined below) will not constitute
Deferred Payments for purposes of clause (i) above. 
 (v)         The
foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any
ambiguities herein will be interpreted to so comply. The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid
imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A. Executive agrees and acknowledges that the Company makes no representations or warranties with respect to the application of
Section 409A and other tax consequences to any payments hereunder and, by the acceptance of any such payments, Executive agrees to accept the potential application of Section 409A and the other tax consequences of any payments made
hereunder. 
 (d)         Confidential Information Agreement.
Executive’s receipt of any payments or benefits under Section 6 will be subject to Executive continuing to comply with the terms of Confidential Information Agreement (as defined in Section 10). 

(e)         No Duty to Mitigate. Executive will not be required to mitigate
the amount of any payment contemplated by this Agreement, nor will any earnings that Executive may receive from any other source reduce any such payment. 

  
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 8.         Definitions. 

(a)         Cause. For purposes of this Agreement, “Cause” is
defined as (i) the willful failure, disregard, or refusal by Executive to perform the services hereunder or follow the reasonable instructions of the Board; provided, however, that any willful failure, disregard, or refusal by Executive
to perform the services hereunder that can reasonably be cured shall not constitute Cause unless cure is not effected, as determined in good faith by the Board, within thirty (30) days after notice thereof is received by the Executive from the
Company; (ii) any willful or grossly negligent act by the Executive having the effect of injuring, in a material way (whether financial or otherwise) as determined in good faith by the Board, the business or reputation of the Company or any of
its subsidiaries or affiliates; (iii) Executive’s conviction of, guilty plea, or plea of nolo contendere to any felony or a misdemeanor involving moral turpitude; (iv) the determination by the Company, after a reasonable and good
faith investigation by the Company following a written allegation by an employee of the Company, that the Executive engaged in some form of harassment prohibited by law (including, without limitation, age, sex, disability, or race discrimination)
unless Executive’s actions were specifically directed by the Board; or (v) material breach by the Executive of any provision of this Agreement or any Confidential Information Agreement. 

(b)         Change of Control. For purposes of this Agreement,
“Change of Control” means the occurrence of any of the following events: 

(i)         a change in the ownership of the Company which occurs on the date that
any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting
power of the stock of the Company; provided, however, that for purposes of this subsection, the acquisition of additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of the
Company will not be considered a Change in Control; or 
 (ii)         a change in
the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons)
assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided,
however, that for purposes of this subsection (iii), the following will not constitute a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s
stockholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock, (2) an
entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of
all the outstanding stock of the Company or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (8)(b)(iii). For purposes of this
subsection (iii), gross fair market value means the value of the assets of the Company, or the 

  
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 value of the assets being disposed of, determined without regard to any liabilities associated
with such assets. 
 For purposes of this definition, persons will be considered to be acting as a group if they are owners
of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. 

Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a
change in control event within the meaning of Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and Internal Revenue Service guidance that has been promulgated or may be
promulgated thereunder from time to time. 
 Further and for the avoidance of doubt, a transaction will not constitute a
Change in Control if: (i) its sole purpose is to change the state of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the
Company’s securities immediately before such transaction. 
 (c)        
Change of Control Period. For purposes of this Agreement, “Change of Control Period” means the period that begins three (3) months prior to a Change of Control and ends twelve (12) months following a Change of
Control. 
 (d)         Code. For purposes of this Agreement,
“Code” means the Internal Revenue Code of 1986, as amended. 

(e)         Disability. For purposes of this Agreement,
“Disability” means that Executive has been unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment for a period of ninety (90) consecutive days or more, or more
than one hundred and eighty (180) days within any twelve (12)-month period, in each case, determined by the Board and, if reasonable accommodation is required by law, after any reasonable accommodation. 

(f)         Good Reason. For the purposes of this Agreement, “Good
Reason” means Executive’s resignation within thirty (30) days following the expiration of any Company cure period (discussed below) following the occurrence of one or more of the following, without Executive’s express written
consent: (i) a material breach of any provision of this Agreement by the Company; (ii) any material reduction by the Company of Executive’s duties, responsibilities, or authority; (iii) a material relocation of the Company’s
principal place of business of Executive outside of the San Diego Metropolitan area; or (iv) a material diminution in Executive’s annual base salary. Executive will not resign for Good Reason without first providing the Company with
written notice of the acts or omissions constituting the grounds for “Good Reason” within ninety (90) days of the initial existence of the grounds for “Good Reason” and a reasonable cure period of not less than thirty
(30) days following the date the Company receives such notice during which such condition must not have been cured. 

  
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 (g)         Section 409A
Limit. For purposes of this Agreement, “Section 409A Limit” will mean two (2) times the lesser of: (i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the
Executive’s taxable year preceding the Executive’s taxable year of Executive’s separation from service as determined under Treasury Regulation Section 1.409A-l(b)(9)(iii)(A)(l) and any
Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(l 7) of the Internal Revenue Code for the year in which
Executive’s separation from service occurred. 
 9.         Limitation on
Payments. In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (the “Payments”) (i) constitute “parachute payments” within the meaning of Section 280G
of the Code and (ii) but for this Section 9, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s Payments will be either: 

(a)         delivered in full, or 

(b)         delivered as to such lesser extent which would result in no portion of
such severance benefits being subject to the excise tax under Section 4999 of the Code, 
 whichever of the foregoing amounts, taking
into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of Payments,
notwithstanding that all or some portion of such Payments may be taxable under Section 4999 of the Code. If a reduction in the Payments constituting “parachute payments” is necessary so that no portion of such Payments is subject to
the excise tax under Section 4999 of the Code, the reduction shall occur in the following order: (1) reduction of the cash severance payments; (2) cancellation of accelerated vesting of equity awards; and (3) reduction of continued
employee benefits. In the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of Executive’s equity awards. 

A nationally recognized certified professional services firm selected by the Company, the Company’s legal counsel or such
other person or entity to which the parties mutually agree (the “Firm”) shall perform the foregoing calculations related to the Excise Tax. The Company shall bear all expenses with respect to the determinations by the Firm required
to be made hereunder. For purposes of making the calculations required by this Section, the Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the
application of Code Sections 280G and 4999. The Company and Executive will furnish to the Firm such information and documents as the Firm may reasonably request in order to make a determination under this Section. The Firm engaged to make the
determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within fifteen (15) calendar days after the date on which Executive’s right to the severance benefits or
other payments is triggered (if requested at that time by the Company or Executive) or such other time as requested by the Company or Executive. 

  
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 Any good faith determinations of the Firm made hereunder shall be final, binding, and conclusive
upon the Company and Executive. 
 10.         Confidential Information.
Executive agrees to execute and comply with the Company’s At-Will Employment, Confidential Information, Invention Assignment, and Arbitration Agreement (the “Confidential Information
Agreement”) concurrently with the execution of this Agreement and agrees to abide by the Company’s rules and standards. Executive understands that Executive must disclose to the Company any and all agreements relating to
Executive’s prior employment that may affect Executive’s eligibility to be employed by the Company or limit the manner in which Executive may be employed. It is the Company’s understanding that any such agreements will not prevent
Executive from performing the duties of Executive’s position and Executive represents that such is the case. Executive agrees not to bring any third party confidential information to the Company, including that of Executive’s former
employers, and that in performing Executive’s duties for the Company, Executive will not in any way utilize any such information. 

11.         Reserved. 

12.         Assignment. This Agreement will be binding upon and inure to the
benefit of (a) the heirs, executors and legal representatives of Executive upon Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of
this Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or
substantially all of the assets or business of the Company. None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution.
Any other attempted assignment, transfer, conveyance or other disposition of Executive’s right to compensation or other benefits will be null and void. 

13.         Notices. All notices, requests, demands and other communications
called for hereunder will be in writing and will be deemed given (i) on the date of delivery if delivered personally, (ii) one (1) day after being sent by a well established commercial overnight service, or (iii) four (4) days after
being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing: 

If to the Company: 

Pfenex 

10790 Roselle St. 

San Diego, CA 92121 

Attn: Chief Executive Officer 

If to Executive: 

at the last residential address known by the Company. 

  
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 14.         Severability. In the
event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said provision. 

15.         Arbitration. Executive agrees that any and all controversies,
claims, or disputes with anyone (including the Company and any employee, officer, director, stockholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from Executive’s service to
the Company, shall be subject to arbitration in accordance with the arbitration provisions of the Confidential Information Agreement. 

16.         Integration. This Agreement, along with the Confidential
Information Agreement and the Equity Documents, represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral. With respect to
equity awards granted on or after the date of this Agreement, the acceleration of vesting provisions provided herein will apply to such equity awards except to the extent the applicable equity award agreement expressly supersedes this Agreement.
This Agreement may be modified only by agreement of the parties by a written instrument executed by the party that is designated as an amendment to this Agreement. 

17.         Waiver of Breach. The waiver of a breach of any term or provision
of this Agreement, which must be in writing, will not operate as or be construed to be a waiver of any other previous or subsequent breach of this Agreement. 

18.         Headings. All captions and section headings used in this Agreement
are for convenient reference only and do not form a part of this Agreement. 
 19.
        Tax Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable taxes. 

20.         Governing Law. This Agreement will be governed by the laws of the
State of California (with the exception of its conflict of laws provisions). 

21.         Acknowledgment. Executive acknowledges that Executive has had the
opportunity to discuss this matter with and obtain advice from Executive’s private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily
entering into this Agreement. 
 22.         Counterparts. This Agreement may
be executed in counterparts, and each counterpart will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned. 

  
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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case
of the Company by their duly authorized officers, as of the day and year first above written. 
 COMPANY: 

PFENEX, INC. 
  

									
	 By:
	 	 /s/ Evert B. Schimmelpennink
	 		 	 Date:
	  	 March 5, 2019

	 Evert B. Schimmelpennink
	 		 		  	
	 Chief Executive Officer, President and Secretary
	 		 		  	

 EXECUTIVE. 
  

									
	 By:
	 	 /s/ Martin Brenner
	 		  	 Date:
	  	 March 6, 2019

	 Martin Brenner
	 		  		  	

 [SIGNATURE PAGE TO EXECUTIVE EMPLOYMENT AGREEMENT] 

  
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 SCHEDULE 1 

[TO BE COMPLETED BY EXECUTIVE, IF APPLICABLE] 

N/A 

  
 -13-Exhibit

Exhibit 10.3

THE HAIN CELESTIAL GROUP, INC.
PERFORMANCE UNITS AGREEMENT 

This Performance Units Agreement (this “Agreement”) is made and entered into as of [l] (the “Grant Date”) by and between The Hain Celestial Group, Inc., a Delaware corporation (the “Company”) and [l] (the “Participant”). 
WHEREAS, the Company has adopted The Hain Celestial Group, Inc. 2019 Equity Inducement Award Program (the “Plan”), the provisions of which are incorporated herein by reference;  
WHEREAS, as an inducement to the Participant to commence employment with the Company, the Board of Directors of the Company (the “Board of Directors”) has determined that it is in the best interests of the Company and its shareholders to grant the award of Performance Units (as defined herein) provided for herein;
WHEREAS, the [Board of Directors] has determined that it is in the best interests of the Company and its shareholders that certain terms and conditions applicable to the Performance Units be consistent with the terms and conditions set forth in the Inducement Award Agreement, dated November 6, 2018, between the Company and the Chief Executive Officer of the Company (the “CEO Award”); and
WHEREAS, it is intended that the award of Performance Units comply with the exemption from the stockholder approval requirement for “inducement grants” provided under Rule 5635(c)(4) of the NASDAQ Listing Rules.

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

1.DEFINITIONS AND CONSTRUCTION.
1.1    Definitions.  Unless otherwise defined herein, capitalized terms shall have the meaning set forth in the Plan (the “Applicable Plan Provisions”).  
1.2    Construction.  Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

Exhibit 10.3

2.ADMINISTRATION.
In accordance with Section 5 of the Plan (and by reference to Section 3 of The Hain Celestial Group, Inc. Amended and Restated 2002 Long Term Incentive and Stock Award Plan), all questions of interpretation concerning this Agreement shall be determined by the Compensation Committee of the Board of Directors (the “Compensation Committee”).  All determinations by the Compensation Committee made reasonably and in good faith shall be final and binding upon all persons having an interest in the Award.   
3.THE AWARD.
3.1    Grant of Units.  On the Grant Date, subject to the provisions of this Agreement, the Participant has been granted a right (the “Units”) to receive Shares based on the terms and conditions set forth in this Agreement, which will be earned and vested (or not) as set forth in Section 4.  The Participant will receive a grant of a number of Units for fiscal years 2019-2021 as set forth in Section 4, subject to adjustment for dividends.  The number of Units that may become Vested Units are set forth in Section 4, all subject to adjustment as provided in Section 8.  Each Unit represents a right to receive one (1) Share on the Settlement Date (as defined below).
3.2    No Monetary Payment Required.  The Participant is not required to make any monetary payment (other than applicable tax withholding, if any) as a condition to receiving the Units or Shares issued upon settlement of the Units, the consideration for which shall be past services actually rendered and/or future services to be rendered to the Company and/or its Subsidiaries for its benefit.  Notwithstanding the foregoing, if required by applicable state corporate law, the Participant shall furnish consideration in the form of cash or past services rendered to the Company or for its benefit having a value not less than the par value of the Shares issued upon settlement of the Units.
4.VESTING OF UNITS.
4.1    General.  Subject to the Participant’s continued employment or other service with the Company or its Subsidiaries through the last day of the Performance Period (as defined below), a Non-Change in Control Qualifying Termination or a Change in Control Qualifying Termination, as defined in Section 4.3, the maximum number of Units that may be earned (the “Performance Units”) shall be based upon the TSR (as defined below), using the Initial Share Price (as defined below) for the Performance Period (as defined below). For illustrative purposes only, the following schedule sets forth the number of Performance Units, assuming no dividend payments, that the Participant may be eligible to earn based on achievement of various TSR performance levels:

Exhibit 10.3

	
			
	Compound annual TSR over Performance Period
	Illustrative Target Share Price

	

Number of Performance Units

	At least 15% but below 20%

	$39.74
	[l]

	At least 20% but below 25%
	$45.15
	[l]

	At least 25% but below 30%
	$51.04
	[l]

	At least 30% but below 35%
	$57.41
	[l]

	At least 35%
	$64.29
	[l]

The maximum award that may be achieved shall be [l] Performance Units and no Performance Units will vest if the TSR over the Performance Period is below 15%.  
In addition to the performance vesting requirements described above, the Performance Units shall be subject to the time-based vesting requirements set forth in Section 4.3 below.  
4.2    Performance Based Vesting - Determination of 3-Year Compound Annual Total Shareholder Return.   Compound Annual Total Shareholder Return (“TSR”) means the compound annual growth rate over the Performance Period, expressed as a percentage, from the Initial Share Price to the Ending Average Share Price, plus reinvested dividends over the Performance Period, subject to the following definitions and parameters associated with the calculation:     
		
	•
	“Cause” has the meaning set forth in the Change in Control Agreement between the Company and the Participant (the “Change in Control Agreement”) or if none, the employment agreement between the Company and the Participant, in each case, then in effect, or if the Participant is not party to any such agreement or such term is not defined in any such agreement then “Cause” shall mean the occurrence of any of the following events: (i) any material violation by the Participant of any law or regulation applicable to the Company or its Affiliates; (ii) the Participant’s commission of, plea of guilty or nolo contendere to, or indictment for, a felony or any other crime involving moral turpitude; (iii) the Participant’s commission of an act of personal dishonesty in connection with the Company or any other entity having a business relationship with the Company; (iv) any breach by the Participant of any written agreement between the Company and the Participant, or the terms of the Participant’s service as an employee of the Company, including, without limitation, the breach of any written non-competition, non-solicitation, invention assignment, confidentiality or similar written restrictive covenants; (v) the Participant’s violation of the written policies of the Company, commission of sexual harassment, or any other conduct causing the Company or any of its Affiliates public disgrace or disrepute or economic harm; (vi) reporting to work under the influence of alcohol or illegal drugs or the use of illegal drugs (whether or not at the workplace); or (vii) a willful failure to substantially perform the Participant’s duties and obligations to the Company and its Subsidiaries, other than failure resulting from complete or partial incapacity due to physical or mental illness or impairment; provided, that clause (vii) shall constitute “Cause” only if the Participant fails to cure 

Exhibit 10.3

such event (if curable) within ten (10) business days after receipt from the Company of written notice specifying the Participant’s actions that constitute Cause.
		
	•
	“Date of Determination” will mean the earlier of (A) the effective date of a Change in Control; (B) the Participant’s Non-Change in Control Qualifying Termination; or (C) November 6, 2021, consistent with the CEO Award.

		
	•
	“Disability” has the meaning set forth in the Change in Control Agreement between the Company and the Participant or if none, the employment agreement between the Company and the Participant, in each case, then in effect, or if the Participant is not party to any such agreement or such term is not defined in any such agreement then “Disability” shall mean the permanent and total disability of the Participant within the meaning of Section 22(e)(3) of the Code.

		
	•
	“Ending Average Share Price” will mean the average of the daily closing prices per share of the Company’s common stock, as reported on the stock exchange or market on which such stock is listed, for the 60 trading days ending on and including the applicable Date of Determination, except that in the event of a Change in Control, the Ending Average Share Price will be equal to the value of the consideration paid or exchanged for a Share pursuant to the terms of the Change in Control.  For avoidance of doubt, in the event of a Change in Control, the Ending Average Share Price will not be based on the average of the daily closing prices on the 60 trading days ending on the Date of Determination as described above.

		
	•
	“Good Reason” has the meaning set forth in the Change in Control Agreement between the Company and the Participant or if none, the employment agreement between the Company and the Participant, in each case, then in effect, or if the Participant is not party to any such agreement or such term is not defined in any such agreement then “Good Reason” shall mean the occurrence of any of the following events, without the express written consent of the Participant: (i) a material diminution in the Participant’s duties or responsibilities, excluding for this purpose any diminution during any period of the Participant’s incapacity or Disability, so long as such diminution ceases upon the cessation of the Participant’s incapacity or Disability; (ii) the relocation or transfer of the Participant’s principal office to a location that increases the Participant’s one-way commute from the Participant’s residence by more than fifty (50) miles; or (iii) a reduction in the Participant’s annual base salary; provided, that the Participant may not terminate the Participant’s employment for Good Reason unless: (a) the Participant provides the Board with written notice of the event constituting Good Reason within thirty (30) days following the Participant’s initial knowledge of such event, which notice shall specify the facts and circumstances constituting Good Reason, (b) the Company fails to cure such event within thirty (30) days following receipt by the Board of such written notice, and (c) the Participant actually resigns for Good Reason no later than thirty (30) days following the expiration of such thirty (30) day cure period.

		
	•
	“Initial Share Price” will mean the closing stock price on November 6, 2018 of $26.13, consistent with the CEO Award.

		
	•
	“Performance Period” will mean the period beginning on November 6, 2018 and ending on the Date of Determination, consistent with the CEO Award.

Exhibit 10.3

Dividends that have an ex-dividend date during the Performance Period shall be included in the calculation assuming the reinvestment of such dividends as of the applicable ex-dividend date, and dividends shall include the per share value of any cash or stock dividends, including the per share value as determined in good faith by the Company’s Board of Directors of a dividend issued in any Company spin-off of assets or subsidiary stock. 
Notwithstanding the foregoing, if the Participant has a Non-Change in Control Qualifying Termination, Change in Control Qualifying Termination, or if a Change in Control occurs prior to November 6, 2019, TSR will be computed as if the Date of Determination were November 6, 2019.  For avoidance of doubt, if the Participant has a Non-Change in Control Qualifying Termination, Change in Control Qualifying Termination, or if a Change in Control occurs prior to November 6, 2019, the Performance Period shall be treated as one year for purposes of computing TSR.  
The Compensation Committee shall determine the TSR in its sole discretion. 
4.3    Time-Based Vesting. Subject to the performance vesting requirements set forth in Section 4.1, the Performance Units shall become vested and earned (the “Vested Units”) on the following vesting dates (each such date a Vesting Date):
(a)    If the Participant remains in the continuous employment or other service relationship with the Company through November 6, 2021 (including on or after a Change in Control), 100% of the Performance Units as determined pursuant to Section 4.1 shall be vested on November 6, 2021; and
(b)    In the event that the Participant experiences a termination prior to November 6, 2021, the Performance Units shall be treated as follows:
(i.)    In the event that the Participant’s service is terminated by reason of death or Disability prior to a Change in Control (each  of which shall be a “Non-Change in Control Qualifying Termination”), then the number of Performance Units that will be vested on the Non-Change in Control Qualifying Termination date will be prorated based on the number of full calendar months the Participant spent on the active payroll during the Performance Period, divided by 36 months.

(ii.)    If, prior to a Change in Control, the Participant’s service is terminated for any reason other than the foregoing, including by the Company without Cause or, by the Participant for Good Reason, the Performance Units shall be immediately forfeited and cancelled without consideration.

(c)    In the event that the Participant’s service is terminated by the Company without Cause, by the Participant for Good Reason or by reason of death or Disability 

Exhibit 10.3

on or after a Change in Control (each of which shall be a “Change in Control Qualifying Termination”), then the number of Performance Units that will be vested on the date of the Change In Control Qualifying Termination will be prorated as follows:
(i.)    If the Participant has a Change In Control Qualifying Termination on or after a Change in Control, and such qualifying termination occurs on or prior to the first anniversary of the Grant Date the number of Performance Units that will vest as calculated based on performance and as determined pursuant to Section 4.1 will be multiplied by 1/3;

(ii.)    If the Participant has a Change In Control Qualifying Termination on or after a Change in Control, and such qualifying termination occurs after the first anniversary of the Grant Date but on or prior to the second anniversary of the Grant Date, the number of Performance Units that will vest as calculated based on performance and as determined pursuant to Section 4.1 will be multiplied by 2/3; and

(iii.)    If the Participant has a Change In Control Qualifying Termination on or after a Change in Control, and such qualifying termination occurs after the second anniversary of the Grant Date, no proration will be applied to the Performance Units and 100% of the Performance Units as determined pursuant to Section 4.1 shall be vested.  

(iv.)    For the avoidance of doubt, if the Participant’s service is terminated for any reason other than the foregoing, the Units shall be immediately forfeited and cancelled without consideration. 

4.4    Definition of Change in Control.  Change in Control for purposes of this Agreement has the meaning set forth in the Change in Control Agreement between the Company and the Participant or if none, the employment agreement between the Company and the Participant, in each case, then in effect, or if the Participant is not party to any such agreement or such term is not defined in any such agreement then “Change in Control” shall mean the occurrence of:
(a)    the acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of the combined voting power of the then outstanding voting securities of the Company; provided, however, that for purposes of this clause (1), the following acquisitions shall not constitute a Change of Control: (A) any issuance of voting securities of the Company directly from the Company that is approved by the Incumbent Board (as defined below), or (B) any acquisition of voting securities of the Company 

Exhibit 10.3

by any Person pursuant to a Business Combination (as defined below) that complies with clauses (A), (B) and (C) of clause (3) below; or
(b)    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 member of the Board (a “Director”) subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least two-thirds of the Directors then comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection to such nomination) shall be deemed to have been a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest (within the meaning of Rule 14a-11 of the Exchange Act) 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; or
(c)    consummation of a reorganization, merger or consolidation, a sale or other disposition of all or substantially all of the assets of the Company, or other transaction (each, a “Business Combination”), unless, in each case, immediately following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners of voting securities of the Company immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the combined voting power of the then outstanding voting securities of the entity resulting from such Business Combination (including, without limitation, an entity which 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 relative to each other as their ownership immediately prior to such Business Combination, (B) no Person (other than such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 50% or more of the combined voting power of the then outstanding voting securities of the entity resulting from such Business Combination and (C) at least a majority of the members of the board of directors 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
(d)    the stockholders of the Company approve a complete liquidation or dissolution of the Company.
(e)    “Person” shall have the meaning ascribed thereto in Section 3(a)(9) of the Exchange Act, as modified, applied and used in Sections 13(d) and 14(d) thereof; provided, however, a Person shall not include (i) the Company or any of its Subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Subsidiaries (in its capacity as such), (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation or other entity owned, directly or indirectly, by the stockholders of the Company in substantially the same character and proportions as their ownership of voting securities of the Company.

Exhibit 10.3

5.DIVIDENDS CREDITED ON THE UNITS. 
5.1    The Vested Units will earn dividend equivalents in the form of additional Units.  Specifically, as of each dividend payment date for Company common stock during the period beginning on the Grant Date and ending on the Vesting Date, the Participant’s account will be credited with additional Units (“Dividend Equivalent Units”) equal in number to the number of shares of Company common stock that could be bought with the cash dividends that would be paid on the Vested Units if each Unit were a Share.  The number of Units that results from the calculation will be to two decimal places.
5.2    The number of shares of Company common stock that could be bought with the cash dividends will be calculated based on the “Fair Market Value” of Company common stock on the applicable dividend payment date.  For purposes of this Agreement, “Fair Market Value” here means the average of the high and the low per share trading prices for Company common stock as reported in The Wall Street Journal for the specific dividend payment date, or in such other source as the Company deems reliable.
5.3    Dividend Equivalent Units will vest at the same time and in the same manner as the Vested Units with which they are associated.  
6.SETTLEMENT OF THE AWARD.
6.1    Issuance of Shares of Stock.  Subject to the provisions of Section 6.3 below, within 30 days of the Vesting Date (the “Settlement Date”), the Company shall issue to the Participant in settlement of the Vested Units, the number of Shares equal to the Vested Units, and all Units will terminate and cease to be outstanding upon such issuance of the Shares.
6.2    Beneficial Ownership of Shares; Certificate Registration.  The Participant hereby authorizes the Company, in its sole discretion, to deposit for the benefit of the Participant with any broker with which the Participant has an account relationship of which the Company has notice any or all shares acquired by the Participant pursuant to the settlement of the Award.  Except as provided by the preceding sentence, a certificate for the shares as to which the Award is settled shall be registered in the name of the Participant, or, if applicable, in the names of the heirs of the Participant.
6.3    Restrictions on Grant of the Award and Issuance of Shares.  The grant of the Award and issuance of Shares upon settlement of the Award shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities and issuance of the Shares may be delayed where the Company reasonably anticipates that the making of the payment will violate Federal securities law or other applicable law; provided that the payment is made at the earliest date at which the Company reasonably anticipates that the making of the payment will not cause such violation.
6.4    Retention of Shares. The Participant must hold any Shares (net of any Shares withheld to pay applicable taxes) earned pursuant to a Vested Unit until the earlier of (a) the first anniversary of the Settlement Date, (b) a Non-Change in Control Qualifying Termination or Change 

Exhibit 10.3

in Control Qualifying Termination of the Participant’s employment or other service relationship with the Company, or (c) a Change in Control. In furtherance of the foregoing, until the earlier of the foregoing dates, the Shares delivered hereunder will be subject to such stop transfer orders and other restrictions as the Compensation Committee may deem advisable under the Plan or the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed, any applicable federal or state laws and any agreement with, or policy of the Company or the Compensation Committee to which the Participant is a party or subject, and the Compensation Committee may cause orders or designations to be placed upon the books and records of the Company’s transfer agent to make appropriate reference to such restrictions. 
7.TAX IMPLICATIONS.
7.1    In General.  The Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy the federal, state, local and foreign tax (including any social insurance) withholding obligations of the Company (or its Affiliate or Subsidiary), if any, which arise in connection with the Award, the vesting of Units or the issuance of Shares in settlement thereof (the “Tax Liability”). These requirements may change from time to time as laws or interpretations change.  Regardless of the Company’s (or its Affiliate’s or Subsidiary’s) actions in this regard, the Participant hereby acknowledges and agrees that the Tax Liability shall be the Participant’s responsibility and liability.  
7.2    Withholding in Shares.  The Company may require the Participant to satisfy all or any portion of tax withholding obligations by deducting from the Shares otherwise deliverable to the Participant in settlement of the Award a number of whole Shares having a fair market value, as determined by the Company as of the date on which the tax withholding obligations arise, not in excess of the amount of such tax withholding obligations determined by the applicable maximum statutory withholding rates.
8.ADJUSTMENTS FOR CHANGES IN CAPITAL STRUCTURE. The Compensation Committee shall make adjustments in accordance with the Plan (by reference to Section 4(d) of The Hain Celestial Group, Inc. Amended and Restated 2002 Long Term Incentive and Stock Award Plan). 
9.RIGHTS AS A STOCKHOLDER, DIRECTOR, EMPLOYEE OR CONSULTANT.  The Participant shall have no rights as a stockholder with respect to any Performance Units until the date of the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date the Shares are issued, except as provided in Sections 5 and 8.  If the Participant is an Employee, the Participant understands and acknowledges that, except as otherwise provided in a separate, written employment agreement between the Company and the Participant, the Participant’s employment is “at will” and is for no specified term.  Nothing in this Agreement shall confer upon the Participant any right to continue in the service of the Company or any Subsidiary or interfere in any way with any right of such entities to terminate the Participant’s service at any time.

Exhibit 10.3

10.MISCELLANEOUS PROVISIONS.
10.1    Termination or Amendment.  The Board may terminate or amend the Plan or this Agreement at any time; provided, however, that no such termination or amendment may adversely affect the Participant’s rights under this Agreement without the consent of the Participant unless such termination or amendment is necessary to comply with applicable law or government regulation, including, but not limited to, Section 409A of the Code.  No amendment or addition to this Agreement shall be effective unless in writing.
10.2    Nontransferability of the Award.  Prior to the issuance of Shares on the applicable Settlement Date, neither this Award nor any Units subject to this Award shall be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution.  All rights with respect to the Award shall be exercisable during the Participant’s lifetime only by the Participant or the Participant’s guardian or legal representative.
10.3    Further Instruments.  The parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.
10.4    Binding Effect.  This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the Participant and the Participant’s heirs, executors, administrators, successors and assigns.
10.5    Delivery of Documents and Notices.  Any document relating to participation in the Plan or any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address, if any, provided for the Participant by the Company, or upon deposit in the U.S. Post Office or foreign postal service, by registered or certified mail, or with a nationally recognized overnight courier service, with postage and fees prepaid, addressed to the other party at the address shown below that party’s signature hereto or at such other address as such party may designate in writing from time to time to the other party.
(a)    Description of Electronic Delivery.  The Plan documents, which may include but do not necessarily include: the Plan, this Agreement, the Plan’s prospectus, and any reports of the Company provided generally to the Company’s stockholders, may be delivered to the Participant electronically.  In addition, the Participant may deliver electronically the Agreement to the Company or to such third party involved in administering the Plan as the Company may designate from time to time.  Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other means of electronic delivery specified by the Company.

Exhibit 10.3

(b)    Consent to Electronic Delivery and Execution.  The Participant acknowledges that the Participant has read Section 10.5 of this Agreement and consents to the electronic delivery of the Plan documents, as described in Section 10.5(a).  The Participant acknowledges that he or she may receive from the Company a paper copy of any documents delivered electronically at no cost to the Participant by contacting the Company by telephone or in writing.  The Participant further acknowledges that the Participant will be provided with a paper copy of any documents if the attempted electronic delivery of such documents fails.  Similarly, the Participant understands that the Participant must provide the Company or any designated third party administrator with a paper copy of any documents if the attempted electronic delivery or execution of such documents fails.  The Participant may revoke his or her consent to the electronic delivery of documents described in Section 10.5(a) or may change the electronic mail address to which such documents are to be delivered (if Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail.  Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents described in Section 10.5(a).  Electronic execution of this Agreement shall have the same binding effect as a written or hard copy signature and accordingly, shall bind the Participant and the Company to all of the terms and conditions set forth in the Applicable Plan Provisions and this Agreement.
10.6    Integrated Agreement.  This Agreement and the Applicable Plan Provisions shall constitute the entire understanding and agreement of the Participant and the Company with respect to the subject matter contained herein or therein and supersedes any prior agreements, understandings, restrictions, representations, or warranties between the Participant and the Company with respect to such subject matter other than those as set forth or provided for herein or therein.  To the extent contemplated herein or therein, the provisions of the Agreement shall survive any settlement of the Award and shall remain in full force and effect.
10.7    Section 409A. This Agreement and the Units granted hereunder are intended to fit within the “short-term deferral” exemption from Section 409A of the Code as set forth in Treasury Regulation Section 1.409A-1(b)(4).  In administering this Agreement, the Company shall interpret this Agreement in a manner consistent with such exemption.  Notwithstanding the foregoing, if it is determined that the Units fail to satisfy the requirements of the short-term deferral rule and are otherwise deferred compensation subject to Section 409A, and if you are a “Specified Employee” (within the meaning set forth Section 409A(a)(2)(B)(i) of the Code) as of the date of your separation from service (within the meaning of Treasury Regulation Section 1.409A-1(h)), then the issuance of any shares that would otherwise be made upon the date of the separation from service or within the first six (6) months thereafter will not be made on the originally scheduled date(s) and will instead be issued in a lump sum on the date that is six (6) months and one day after the date of the separation from service, but if and only if such delay in the issuance of the shares is necessary to avoid the imposition of additional taxation on you in respect of the shares under Section 409A of the Code.  Each installment of shares that vests is intended to constitute a “separate payment” for purposes of Section 409A of the Code and Treasury Regulation Section 1.409A-2(b)(2).     

Exhibit 10.3

10.8    Applicable Law.  This Agreement shall be governed by the laws of the State of New York as such laws are applied to agreements between New York residents entered into and to be performed entirely within the State of New York.
10.9    Severability.  If any term or provision of this Agreement or the application thereof to any Participant or circumstance shall to any extent be invalid or unenforceable, such provision will be modified, rewritten or interpreted to include as much of its nature and scope as will render it enforceable.  If it cannot be so modified, rewritten or interpreted to be enforceable in any respect, it will not be given effect and the remainder of this Agreement, or the application of such term or provision to Participants or circumstances other than those held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.
10.10    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  
10.11    Acceptance.  By signing the Agreement, the Participant: (a) acknowledges receipt of and represents that the Participant has read and is familiar with this Agreement and the Applicable Plan Provisions , (b) accepts the Award subject to all of the terms and conditions of this Agreement and the Applicable Plan Provisions and (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under this Agreement except as otherwise provided in this Agreement.  The Participant acknowledges that there may be adverse tax consequences upon the vesting or settlement of the Units or disposition of the underlying shares and that the Participant has been advised to consult a tax advisor prior to such vesting, settlement or disposition.

Exhibit 10.3

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

	
		
	 
	THE HAIN CELESTIAL GROUP, INC.

	 
	

By:                                                      
Name:  
Title:    

	 
	Address:  

	 
	 

	
		
	 
	 

	 
	By:                                                
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	Address:

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