Document:

EX-10.2

 Exhibit 10.2 

WALGREENS BOOTS ALLIANCE, INC. 

EMPLOYEE STOCK PURCHASE PLAN 

(As amended and restated effective December 31, 2014) 

 WALGREENS BOOTS ALLIANCE, INC. 

EMPLOYEE STOCK PURCHASE PLAN 

Walgreen Co. (“Walgreens”) previously maintained the Walgreen Co. 1982 Employees Stock Purchase Plan which was amended and restated
in the form of the Walgreen Co. Employee Stock Purchase Plan effective July 1, 2014 (the “Plan”). On December 31, 2014, a reorganization of Walgreens into a holding company structure (the “Reorganization”) was
completed. Pursuant to the Reorganization, Walgreens became a wholly owned subsidiary of a new Delaware corporation named Walgreens Boots Alliance, Inc. (the “Company”). In connection with the Reorganization, the Plan and all Options then
outstanding under the Plan were assumed by the Company. Accordingly, the Plan is hereby amended and restated as set forth herein, effective as of December 31, 2014, in order to reflect its assumption by the Company. This plan document sets
forth the terms and conditions of the Plan. 
 1. Definitions. Whenever used in the Plan, the words and phrases defined in this
Section 1 shall have the following meaning unless a different meaning is clearly required by the context of the Plan, and when the defined meaning is intended the term is capitalized. 

 

	 	(a)	“Administrator” means the person or persons who are designated by the Committee to performing Plan administrative functions on behalf of the Committee. 

 

	 	(b)	“Authorization Form” means an Employee’s payroll deduction authorization form, containing such terms and provisions as may be authorized by the Administrator, and in such paper or electronic form
as may be prescribed by the Administrator. 

  

	 	(c)	“Board of Directors” or “Board” means the Board of Directors of the Company. 

  

	 	(d)	“Code” means the Internal Revenue Code of 1986, as amended, and the regulations issued thereunder. 

  

	 	(e)	“Committee” means the Compensation Committee of the Board of Directors. Members of the Committee shall not be eligible to participate in the Plan. 

 

	 	(f)	“Company” means Walgreens Boots Alliance, Inc., a Delaware corporation. 

  
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	 	(g)	“Compensation” means for any Participant, the largest of (i) his or her then base salary rate annualized plus the amount of any Company bonus earned by the Participant in the immediately preceding
calendar year, (ii) total earnings projected to be reported on Internal Revenue Service form W-2 for the current calendar year by using actual year-to-date W-2 earnings plus the remaining months of the calendar year projected on the same basis
as the most recent month’s W-2 base salary, and (iii) the earnings amount that would be applicable to him or her under Federal Minimum Wage laws for the current calendar year. 

 

	 	(h)	“Date of Grant” shall be the first day of each Option Period. 

  

	 	(i)	“Employee” means an employee of an Employer who meets the eligibility requirements in Section 6 of this Plan. 

  

	 	(j)	“Employer” or “Participating Employer” means the Company and all U.S. and Puerto Rico Subsidiaries of the Company, except to the extent any such Subsidiary has been designated by the
Board or the Committee as not a Participating Employer under the Plan. 

  

	 	(k)	“Option” or “Options” means a right or rights to purchase Stock under the Plan. 

  

	 	(l)	“Option Period” means the one-month period commencing on the day following the last trading day of any calendar month and ending on the last trading day of the next succeeding calendar month.

  

	 	(m)	“Participant” means any Employee who has been granted an Option under the Plan and has elected to participate in the Plan in accordance with Section 7 of this Plan. 

 

	 	(n)	“Plan” means the Walgreens Boots Alliance, Inc. Employee Stock Purchase Plan (formerly the Walgreen Co. Employee Stock Purchase Plan), as amended and restated effective December 31, 2014, as it may
be further amended and in effect from time to time. 

  

	 	(o)	“Purchase Date” with respect to purchase made pursuant to the payroll deductions described under Section 7 of this Plan, means the last trading day of each month in which any payroll deductions are
made under the Plan; with respect to purchases made pursuant to a cash contribution as described in Section 7 of this Plan, means the date on which the Employee exercises his or her option to purchase Stock under the Plan. 

  
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	 	(p)	“Purchase Price” means the purchase price of Stock determined under Section 10 of this Plan. 

  

	 	(q)	“Stock” means the common stock of the Company, par value $0.01 per share. 

  

	 	(r)	“Subsidiary” means a corporation 50% or more of which the voting stock of which is owned either directly or indirectly by the Company. 

2. Effective Date. This Plan was originally established effective as of October 13, 1982, and has subsequently been amended from
time to time. This amended and restated Plan is hereby effective as of December 31, 2014. 
 3. Purpose. The Plan is designed to
assist Employees of the Company and its designated Subsidiaries in acquiring the Company’s Stock as an investment over a period of years on discounted and tax-advantageous bases. 

4. Administration. The Plan is administered by the Committee, which consists of three or more members who are appointed by and serve at
the discretion of the Board. Members of the Committee are not employees of the Company and are therefore not eligible to participate in the Plan. 
 The
Committee has the general responsibility for maintaining and operating the Plan and the authority to construe and interpret the Plan and any agreement or instrument entered into under the Plan and to establish, amend, or waive rules and regulations
for the Plan’s administration. Further, the Committee shall make all other determinations which may be necessary or advisable for the administration of the Plan. The Committee may delegate its authority to such person or persons as it may deem
appropriate, including officers or other employees of the Company. References in this document to the “Administrator” shall mean the person or persons who are performing Plan administrative functions on behalf of the Committee. The Company
will pay all expenses of administering the Plan, including brokerage commissions for stock purchases under the Plan. 
 5. Shares Subject
to the Plan. The maximum aggregate number of shares of Stock for which Options may be granted to all participants under the Plan is 94,000,000. Shares of Stock under the Plan may consist of shares purchased

  
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in the open market by the Administrator on behalf of the Plan and its participants or authorized but unissued shares or shares reacquired by the Company. Shares of Stock represented by any
unexercised portion of any terminated Option granted under the Plan may again be subject to Options granted under the Plan. 
 6.
Eligibility. Any Employee who has completed 90 days of employment with the Employer and who, at the time the Employee seeks to participate in the Plan pursuant to this Section 7, works an average of at least 20 hours per week (pursuant
to the measurement approach set by the Administrator), shall be eligible to become a Participant in the Plan, in accordance with such rules as may be prescribed by the Committee; provided, that any Employee who is a citizen or resident of a foreign
jurisdiction may be excluded from participating in the Plan to the extent permitted by section 423 of the Code and the regulations issued thereunder. 

No Employee may be granted an Option hereunder if immediately after the Option is granted such Employee owns 5% or more of the total combined voting power or
value of the stock of the Company or any Subsidiary. For the purposes thereof, the attribution rules of section 425(d) of the Code shall apply in determining the Stock ownership of an Employee, and the Stock which he may purchase under
outstanding options under any plan maintained by the Company shall be treated as Stock owned by the Employee. 
 7. Participation. A
person who is an Employee on the first day of an Option Period may become a Participant in the Plan by completing and forwarding an Authorization Form to the Administrator. The form will authorize regular payroll deductions from the Employee’s
pay checks. An Employee may also become a Participant by making periodic cash contributions to the extent permitted by the Committee; provided, however, that in no event shall the combined total payroll deductions and cash contributions annually
exceed 25% of the Participant’s Compensation. 
 Notwithstanding the foregoing, no Employee may be granted an Option which permits his rights to
purchase Stock under this Plan and any other tax qualified employee Stock purchase plan of the Company and its subsidiaries to accrue at a rate which exceeds $25,000 of fair market value (as determined under Section 10 of the Plan) of such
Stock for each calendar year in which the Option is outstanding at any time. 

  
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 8. Payroll Deductions and Cash Contributions. An Employee may, in accordance with the
rules adopted by the Committee or the Administrator, authorize a payroll deduction of any whole percentage from 1% to 25% of his or her base salary each pay period; provided, however, that a Participant’s payroll deduction shall be at least in
a minimum amount established in accordance with the rules adopted by the Committee or the Administrator. 
 An Employee may, in accordance with the rules
adopted by the Committee, make a cash contribution once per Option Period; provided, however, that each such cash contribution shall be no less than $250. 

Prior to January 8, 2014, Employees were permitted to apply to the Company for loans for the purpose of making cash contributions to acquire Stock as
provided in Section 7 of this Plan. At no time shall the total principal amount outstanding on any loans granted to an Employee pursuant to this Plan exceed 50% of the Employee’s then current base salary rate annualized. Such loans shall
be at such terms, rates, and conditions (including repayment provisions) as may be determined from time to time by the Committee. 
 Effective
January 8, 2014, loans described in the preceding paragraph are longer provided by the Company. Loans outstanding as of January 8, 2014, shall continue to be repaid in accordance with their repayment terms. 

9. Deduction Changes and Discontinuance. A Participant may increase, decrease or discontinue his or her payroll deduction at any time
by filing a new Authorization Form with the Administrator. The foregoing is subject to any timing or frequency restrictions that may be imposed on a uniform basis by the Committee or the Administrator. 

10. Purchase Price. The Purchase Price of Stock purchased pursuant to the exercise of an Option for any Option Period shall be equal to
90% of the closing market price of the Company’s Stock on the NASDAQ Stock Market on the Purchase Date for such Option Period. The Purchase Price for any Option exercised hereunder shall in no event be less than the lesser of $1.00 per share,
or 90% of the closing market price of the Company’s Stock on the Grant Date. 

  
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 11. Manner of Purchasing Stock. With respect to those Employees who have authorized
regular payroll deductions, the Administrator shall establish an account in the name of each Participant in the Plan. A Participant’s payroll deduction shall be credited to his or her account, shall be accumulated in such account without
interest and shall be applied as of each Purchase Date to purchase at the Purchase Price for such date the maximum number of whole and fractional shares of Stock that may be purchased with such funds. Funds in the Participant’s account may not
be withdrawn except as provided in Section 14. 
 If a Participant’s account contains sufficient funds to purchase shares of Stock as of any
Purchase Date, he or she shall be deemed to have exercised an Option to purchase Stock at the Purchase Price for such date. As of the Purchase Date, a Participant’s entitlement to such share or shares of Stock shall be appropriately noted on
the records of the Administrator. To the extent that an Option is not exercised between the Date of Grant and the end of an Option Period, the Option shall terminate. 

With respect to a cash contribution, the Administrator shall purchase at the Purchase Price for the applicable Purchase Date the maximum number of whole
shares of Stock that may be purchased with such cash contribution. As of the Purchase Date, a Participant’s entitlement to such shares of Stock so acquired shall be appropriately noted on the records of the Administrator. 

Upon any purchase of Stock in the open market pursuant to the Plan, the Company shall pay all additional costs of acquiring such Stock. 

In no event shall the number of shares of Stock purchased by any Participant for any Option Period exceed 5,000, or such other maximum number of shares as may
be designated by the Committee from time to time. 
 12. Issuance of Stock Certificates and Shareholders Rights. The Administrator
shall establish procedures for the shares of Stock purchased by each Participant to be issued to such Participant by the Company in book 

  
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entry form, in a brokerage account, in stock certificate form or such other acceptable method of issuance. None of the rights or privileges of a shareholder of the Company shall exist with
respect to Stock purchased under the Plan unless and until the Participant shall become the beneficial owner of such Stock on the records of the Company. The Company shall have the right and shall be authorized to retain, as collateral, any Stock
purchased with a cash contribution for which an Employee has received a loan for the purchase of Stock pursuant to Section 8 of the Plan. 
 If a
Participant has an outstanding loan for the purchase of Stock pursuant to Section 8 of the Plan, the Administrator may apply dividends paid on such Stock to pay off the outstanding principal and any accrued interest on such loan. Cash dividends
paid on all other shares of Stock accruing to a Participant’s account under the Plan shall be paid to the Participant in cash, unless the Participant elects to have the Administrator reinvest such dividends through the purchase of Stock at the
prevailing market price on the open market. 
 13. Registration of Stock. Stock issued hereunder, will be registered only in the name
of the Participant, or, if his or her Authorization Form so specifies, in the name of the Participant and any other person as joint tenants with right of survivorship. No other names may be included in the Stock registration. 

14. Rights on Retirement, Death, or Termination of Employment. In the event of a Participant’s retirement, death, or other
termination of employment, the balance in his or her account shall be distributed to the Participant, or in the event of death (i) to the executor or administrator of the Participant’s estate, or (ii) if none, to the
Participant’s heirs in accordance with the laws of descent and distribution. 
 15. Rights Not Transferable. Rights and Options
granted under this Plan are not transferable by the Participant other than by will or by the laws of descent and distribution, and are exercisable only by the Participant during his or her lifetime. 

  
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 16. Changes in Capitalization. In the event of any change (increase or decrease) in the
outstanding shares of Company Stock by reason of a stock dividend, recapitalization, merger, consolidation, stock split, split up, spin off, combination or exchange of shares, reorganization, liquidation, or other change in corporate capitalization,
the aggregate number and class of shares of Stock available under this Plan, the number and class of shares of Stock subject to each outstanding Option, the Purchase Price for each Option and the other limits set forth in this Plan in the form of
shares of Stock or Purchase Price shall be appropriately and proportionately adjusted by the Committee to prevent dilution or enlargement of rights and preserve the value of outstanding awards; provided that fractional shares of Stock shall be
rounded to the nearest whole share. The Committee’s determination shall be final and conclusive. 
 17. No Purchase of Stock by
Company. The Company will be under no obligation to repurchase from any Participant any shares of Stock he or she has acquired under the Plan. 

18. Amendment of the Plan. The Board of Directors may at any time, or from time to time, amend the Plan in any respect, including but
not limited to any amendments as may be necessary or advisable to maintain the Plan as an employee stock purchase plan meeting the requirements of section 423 of the Code and the regulations issued thereunder; provided, however, that without
the approval of a majority of the shares of Stock of the Company then issued and outstanding and entitled to vote, no amendment or modification may become effective if shareholder approval is required to enable the Plan to satisfy any applicable
federal or state statutory or regulatory requirements or applicable exchange listing requirements. 
 19. Termination of the Plan.
While it is intended that the Plan remain in effect indefinitely, the Board of Directors may terminate the Plan at any time in its discretion. The Plan shall be terminated by the Board of Directors if at any time the number of shares of Stock
authorized for purposes of the Plan is not sufficient to meet all purchase requirements and the number of authorized shares is not increased to meet all prior purchase requirements at the next annual meeting of shareholders. 

  
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 Upon termination of the Plan, the Administrator shall give notice thereof to Participants, and shall terminate
all payroll deductions and apportion the remaining available shares of Stock among Participants for purchase in accordance with the Plan in such manner as the Administrator may deem equitable. Cash balances in Participants’ accounts shall be
refunded promptly. 
 20. Listing, Registration, and Qualification of Shares. The granting of Options for, and the sale of delivery
of, Stock under the Plan, shall be subject to the effecting by the Company of any listing, registration, or qualification of the shares subject to that Option upon any securities exchange or under any federal or state law, or the obtaining of the
consent or approval of any governmental regulatory body deemed necessary or desirable for the issue or purchase of the shares covered. 

21. Employment Rights. Neither the establishment of the Plan, nor the grant of any Options thereunder nor the exercise thereof shall be
deemed to (a) give to an Employee the right to be retained in the employ of the Employer (b) interfere with the right of the Employer to discharge any Employee at any time, (c) give to the Employer the right to require the Employee to
remain in its employ, or (d) interfere with the Employee’s right to sever his employment at any time. 

  
 -9-EX-10.3

 Exhibit 10.3 

WALGREENS BOOTS ALLIANCE, INC. EXECUTIVE 

DEFERRED PROFIT-SHARING PLAN 

(As Amended and Restated Effective December 31, 2014) 

 TABLE OF CONTENTS 

 

							
	 	    	 	  	Page	 
			
	 ARTICLE I
	    	 INTRODUCTION
	  	 	1	  
	 1.1.
	    	 Name and Purpose
	  	 	1	  
	 1.2.
	    	 Effective Date and Plan Year
	  	 	1	  
			
	 ARTICLE II
	    	 DEFINITIONS
	  	 	1	  
			
	 ARTICLE III
	    	 ELIGIBILITY AND PARTICIPATION
	  	 	2	  
	 3.1.
	    	 Eligibility
	  	 	2	  
	 3.2.
	    	 Status under ERISA
	  	 	3	  
			
	 ARTICLE IV
	    	 DEFERRAL OF COMPENSATION
	  	 	3	  
	 4.1.
	    	 Participant Deferral Credits
	  	 	3	  
	 4.2.
	    	 Deferral Elections
	  	 	3	  
	 4.3.
	    	 Vesting
	  	 	3	  
			
	 ARTICLE V
	    	 EMPLOYER PROFIT-SHARING CREDITS
	  	 	3	  
	 5.1.
	    	 Amount of Employer Profit Sharing Credits
	  	 	3	  
	 5.2.
	    	 Vesting
	  	 	4	  
			
	 ARTICLE VI
	    	 PLAN ACCOUNTING
	  	 	4	  
	 6.1.
	    	 Accounts
	  	 	4	  
	 6.2.
	    	 Adjustments to Participant Accounts
	  	 	4	  
			
	 ARTICLE VII
	    	 PAYMENT OF BENEFITS
	  	 	5	  
	 7.1.
	    	 Payment of Account Balances
	  	 	5	  
	 7.2.
	    	 Time and Manner of Payment of Grandfathered Account
	  	 	5	  
	 7.3.
	    	 Time and Manner of Payment of Non-Grandfathered Account
	  	 	5	  
	 7.4.
	    	 Effect on Other Benefit Plans
	  	 	7	  
	 7.5.
	    	 Facility of Payment
	  	 	7	  
	 7.6.
	    	 Effect of Payment
	  	 	7	  
	 7.7.
	    	 Withholding for Taxes
	  	 	7	  
			
	 ARTICLE VIII
	    	 ADMINISTRATION
	  	 	8	  
	 8.1.
	    	 Administration
	  	 	8	  
	 8.2.
	    	 Claims Procedures
	  	 	8	  
			
	 ARTICLE IX
	    	 AMENDMENT AND TERMINATIONS
	  	 	8	  
	 9.1.
	    	 Amendment or Termination
	  	 	8	  
			
	 ARTICLE X
	    	 MISCELLANEOUS
	  	 	8	  
	 10.1.
	    	 Non-Alienation
	  	 	8	  
	 10.2.
	    	 Employment Rights
	  	 	8	  
	 10.3.
	    	 Trust Fund
	  	 	9	  

  
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 TABLE OF CONTENTS 

(continued) 
  

							
	 	    	 	  	Page	 
			
	 10.4.
	    	 Successors
	  	 	9	  
	 10.5.
	    	 Controlling Law
	  	 	9	  
	 10.6.
	    	 Severability
	  	 	9	  
	 10.7.
	    	 Section 409A
	  	 	9	  

  
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 WALGREENS BOOTS ALLIANCE, INC. EXECUTIVE 

DEFERRED PROFIT-SHARING PLAN 

(As Amended and Restated Effective December 31, 2014) 

ARTICLE I 
 INTRODUCTION

 1.1. Name and Purpose. Walgreen Co. (“Walgreens”) established the Walgreen Co. Executive Deferred Profit
Sharing Plan (the “Plan”), effective January 1, 1990, for the benefit of eligible employees. The Plan was amended and restated in its entirety effective January 1, 2003, was further amended effective as of January 1, 2005 and January 1,
2008, was again amended and restated in its entirety effective as of January 1, 2012, and was further amended effective as of January 1, 2013 and to be effective as of January 1, 2015. On December 31, 2014, a reorganization of Walgreens into a
holding company structure (the “Reorganization”) was completed. Pursuant to the Reorganization, Walgreens became a wholly owned subsidiary of a new Delaware corporation named Walgreens Boots Alliance, Inc. (the “Company”). In
connection with the Reorganization, the Plan was assumed by the Company, and the Plan is hereby further amended and restated in its entirety, effective as of December 31, 2014, as set forth herein in order to reflect such assumption. The purpose of
the Plan, as amended and restated herein, is to provide eligible employees with the opportunity to defer compensation on a pre-tax basis, and to receive Employer Profit-Sharing Credits. 

1.2. Effective Date and Plan Year. The Effective Date of the amended and restated Plan is December 31, 2014. The Plan shall be
administered on a calendar year basis (the “Plan Year”). 
 ARTICLE II 

DEFINITIONS 
 2.1.
“Account” means the recordkeeping account established by the Administrators pursuant to Article VI to record a Participant’s accrued benefit under the Plan. 

2.2. “Administrators” means the persons appointed to administer the Plan pursuant to Section 8.1. 

2.3. “Code” means the Internal Revenue Code of 1986, as amended, and the regulations issued thereunder. 

2.4. “Deferral Credits” means the portions of a Participant’s base salary and/or bonus, if any, that he or she
elects to defer under Article IV. 

  
 1 

 2.5. “Deferral Election” means an election by a Participant to defer base
salary and/or bonuses in accordance with the provisions of Article IV. 
 2.6. “Earnings Gains and Losses” means the
amount of earnings, gains, losses and expenses debited or credited to a Participant’s Account pursuant to Section 6.2. 
 2.7.
“Employee Deferral Subaccount” means the portion of a Participant’s Account consisting of Deferral Credits and Earnings Gains and Losses thereon. 

2.8. “Employer Profit-Sharing Credits” means the amounts credited to a Participant’s Employer Profit-Sharing
Subaccount pursuant to Article V. 
 2.9. “Employer Profit-Sharing Subaccount” means the portion of a
Participant’s Account consisting of Employer Profit-Sharing Credits and Earnings Gains and Losses thereon. 
 2.10.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations issued thereunder. 

2.11. “Grandfathered Account” means the portion of a Participant’s Account that were credited to the Account and
became fully vested prior to January 1, 2005. 
 2.12. “Non-Grandfathered Account” means the portion of a
Participant’s Account that is not a Grandfathered Account. 
 2.13. “Plan Year” means the calendar year. 

2.14. “Profit-Sharing Plan” means the Walgreen Profit-Sharing Retirement Plan, as amended and restated effective
January 1, 2010, and as further amended from time to time. 
 2.15. “Profit-Sharing Plan Compensation
Limitation” means the limitation imposed by Section 401(a)(17) of the Code on the amount of a Participant’s compensation that may be taken into account under the Profit-Sharing Plan. 

ARTICLE III 
 ELIGIBILITY
AND PARTICIPATION 
 3.1. Eligibility. Each employee of the Company or one of its subsidiaries who is eligible to
participate in the Profit-Sharing Plan shall be eligible to become a Participant in the Plan if the employee’s “Salary Conversion Contributions” under Section 4.1 of the Profit-Sharing Plan are limited by the Profit-Sharing Plan
Compensation Limitation – or would be so limited if participating in the Profit-Sharing Plan. Effective January 1, 2013, solely for purposes of determining Plan eligibility, prior Plan Year contributions to this Plan are included in a
Participant’s compensation to determine whether the Participant has met the Profit-Sharing Plan Compensation Limitation. 

  
 2 

 3.2. Status under ERISA. The Plan is an unfunded plan maintained primarily to
provide deferred compensation benefits for a select group of “management or highly-compensated employees” within the meaning of Sections 201, 301, and 401 of ERISA, and therefore is exempt from the provisions of Parts 2, 3 and 4 of Title I
of ERISA. The Board of Directors of the Company may terminate the Plan or remove certain employees as Participants if it is determined by the United States Department of Labor, a court of competent jurisdiction, or an opinion of counsel, that the
Plan constitutes an employee pension benefit plan within the meaning of Section 3(2) of ERISA which is not so exempt. 
 ARTICLE IV

 DEFERRAL OF COMPENSATION 

4.1. Participant Deferral Credits. A Participant may elect to defer under the Plan by filing a Deferral Election in accordance
with Section 4.2. The amount of such deferral shall not be in excess of 50 percent of the Participant’s base salary (as in effect at the time the election is made) and 85 percent of the Participant’s annual bonus. Deductions will be
made pursuant to such Deferral Election during the Plan Year. The deferral applicable to base pay shall be reduced in substantially equal amounts from the base salary otherwise periodically payable to the Participant over the Plan Year (or over a
portion of such Plan Year as deemed administratively practicable). All Deferral Credits shall be credited to the Participant’s Employee Deferral Subaccount. 

4.2. Deferral Elections. A Participant’s Deferral Election shall be in writing (or by electronic means established by the
Administrators), and must be made during the election period established by the Administrators which period shall end no later than the day preceding the first day of the Plan Year in which the base salary or bonus is earned. An employee who first
becomes a Participant in the Plan on or after the first day of a Plan Year may make a Deferral Election within 30 days after he or she first becomes a Participant, if and to the extent permitted by Code Section 409A; provided, however, that
such Deferral Election shall only apply to base salary and bonuses earned after the Participant’s Deferral Election is received by the Administrators. All Deferral Elections shall become irrevocable as of the end of the deferral election
period. 
 4.3. Vesting. A Participant shall at all times be 100 percent vested in amounts credited to his or her Employee
Deferral Subaccount. 
 ARTICLE V 

EMPLOYER PROFIT-SHARING CREDITS 

5.1. Amount of Employer Profit Sharing Credits. For each Plan Year, each Participant’s Employer Profit-Sharing Subaccount
shall be credited with the sum of the following amounts: 
  

	 	(a)	the additional amount that would have been allocated to the Participant’s “Employer Contribution Account” under the Profit-Sharing Plan (including a share of certain deemed forfeitures) if the
Profit-Sharing Plan Compensation Limitation did not apply; and 

  

	 	(b)	such additional amount as determined each year by resolution of the Company’s Board of Directors (or its delegate) to each Participant who qualifies for such additional credit based on the criteria set forth in
such resolution. 

  
 3 

 For purposes of the foregoing calculations and credits for Plan Year 2015 and subsequent Plan Years, it shall be
assumed that the Participant contributes the maximum annual amount permissible under the Profit-Sharing Plan, regardless of the Participant’s actual contribution level, if any. 

5.2. Vesting. A Participant shall be vested in his or her Employer Profit-Sharing Subaccount to the same extent as the
Participant is vested in his or her Employer Contribution Account under the Profit-Sharing Plan. 
 ARTICLE VI 

PLAN ACCOUNTING 
 6.1.
Accounts. The Company shall establish and maintain, or cause to be established and maintained, a recordkeeping account (the “Account”) in the name of each Participant, which Account shall be comprised of the Employee Deferral
Subaccount and the Employer Profit-Sharing Subaccount. A Participant’s Account shall at all times be reflected on the Company’s books as a general unsecured and unfunded obligation of the Company, and the Plan shall not give any person any
right or security interest in any asset of the Company or any subsidiary of the Company nor shall it imply any trust or segregation of assets by the Company or any subsidiary of the Company. 

6.2. Adjustments to Participant Accounts. 
  

	 	(a)	General. The amounts credited to a Participant’s Account shall be adjusted to reflect the Earnings Gains and Losses that would have been debited or credited to such amounts had they been allocated to the
Participant’s accounts under the Profit-Sharing Plan and invested in the same manner as such accounts are invested thereunder (or under the applicable Profit-Sharing Plan default investment fund, if no investment elections are made by the
Participant under the Profit-Sharing Plan). Such adjustment shall be determined by the Administrators, and their determination shall be final and conclusive. 

  

	 	(b)	Timing of Adjustments and Credits. All credits and adjustments to a Participant’s Account shall be made within reasonable proximity to the dates such credits and adjustments would have been made if they were
effected under the Profit-Sharing Plan. 

  
 4 

 ARTICLE VII 

PAYMENT OF BENEFITS 
 7.1.
Payment of Account Balances. A Participant who incurs a separation from service with the Company, dies or becomes disabled shall be entitled to payment of the vested portion of his or her Account at the time and in the manner provided
in Section 7.2 below. For purposes of this Article VII, the terms ‘separation from service’ and ‘disabled’ shall have the meanings set forth in Code Section 409A. If a Participant is not 100 percent vested in his or her
Employer Profit-Sharing Subaccount at the time of the distribution event, the non-vested portion shall be forfeited. 
 7.2. Time and
Manner of Payment of Grandfathered Account Balances. The Administrators, in their sole discretion, shall determine the time and manner in which a Participant’s Grandfathered Account balance shall be distributed, which may include the
methods permitted under the Profit-Sharing Plan. 
 7.3. Time and Manner of Payment of Non-Grandfathered Account Balances.

  

	 	(a)	Following a Participant’s separation from service or disability, distribution of the portion of the Participant’s Non-Grandfathered Account credited to his or her Employer Profit-Sharing Subaccount shall be
made as follows: 

  

	 	(i)	If the portion of the Participant’s Non-Grandfathered Account balance credited to his or her Employer Profit-Sharing Subaccount (without taking into account any Company matching contributions credited following
separation from service, death or disability) is less than the Lump-Sum Threshold (as defined below), then such portion of the Participant’s Non-Grandfathered Account shall be paid to the Participant (or in the event of the Participant’s
death, to his or her designated beneficiary) in one lump sum as of the date of the distribution event, or as soon as practicable thereafter, but in no event later than the later of (i) the last day of the calendar year in which the distribution
event occurs, or (ii) the date which is 2-1/2 months following the distribution event. 

  

	 	(ii)	 If the portion of the Participant’s Non-Grandfathered Account balance credited to his or her Employer Profit-Sharing Subaccount (without taking
into account any Company matching contributions credited following separation from service, death or disability) is equal to or greater than the Lump-Sum Threshold (as defined below), then such portion of the Participant’s Non-Grandfathered
Account shall be paid to the Participant (or in the event of the Participant’s death, to his or her designated beneficiary) in monthly installments beginning on the date of the distribution event, or as soon as practicable thereafter, but in no
event later than the later of 

  
 5 

	 	
(i) the last day of the calendar year in which the distribution event occurs, or (ii) the date which is 2-1/2 months following the distribution event. Each monthly installment shall equal
the Lump-Sum Threshold divided by 12. 

  

	 	(iii)	For purposes of this Section 7.3(a), “Lump-Sum Threshold” shall equal $50,000 if the Participant is age 55 or older or shall equal $100,000 if the Participant is under age 55; provided that, beginning in
2007, these $50,000 and $100,000 thresholds shall be increased each year by $2,000 and $4,000, respectively. For purposes of this Section 7.3(a), the determination of which Lump-Sum Threshold amount shall apply and the comparison of this
Threshold to the Participant’s Account balance shall be made as of the date of the distribution event. 

  

	 	(b)	Following a Participant’s separation from service or disability, distribution of the portion of the Participant’s Non-Grandfathered Account that is credited to his or her Employee Deferral Subaccount shall be
made in accordance with one of the following options, as elected by the Participant: 

  

	 	(i)	A single lump-sum payment, to be made as soon as practicable following the date of the Participant’s separation from service or disability; or 

 

	 	(ii)	Annual installments over a period of 5, 10, 15 or 20 years, as elected by the Participant, with the first installment being calculated as soon as practicable following the Plan Year in which such separation from service
or disability occurs, and payment made as soon as practicable thereafter, except as provided below with respect to subsequent changes. A Participant may make a distribution election under this Subsection 7.3(b) at the time the Participant makes his
or her Deferral Election under Section 4.2; provided, however, that if no such election is made, the Participant shall be deemed to have elected payment under paragraph (b)(i) above. Once made, the Participant may subsequently change his or her
election to an allowable alternative payout period by submitting a new election form to the Administrators, provided that any such new election form (i) shall be made at least 12 months in advance of the originally-scheduled distribution date
and may not take effect for at least 12 months after the date the new election is made, (ii) shall not accelerate the time or schedule of any payment, except as permitted under Treasury regulations, and (iii) except with respect to
distributions on account of death or disability, shall provide for an additional deferral period that is not less than 5 years from the date distribution would have otherwise been made. 

  
 6 

	 	(c)	Notwithstanding any provision of the Plan to the contrary, if a Participant is deemed to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any
payment under the Plan on account of the participant’s separation from service (for reasons other than death or disability), then, to the extent required by Code Section 409A, such payment or benefit shall not be made or provided until the
date which is the earlier of (i) the day after the expiration of the six (6)-month period measured from the date of such separation from service, and (ii) the date of the Participant’s death. Upon the expiration of the six-month delay
period, all payments delayed pursuant to this provision shall be paid to the Participant in a lump sum without interest, and all remaining payments due under this Plan shall be paid or provided in accordance with the normal payment dates specified
for them. 

  

	 	(d)	If a Participant dies prior to the time that his or her entire Account has been distributed, such Account, or remaining Account balance, shall be distributed to the Participant’s Beneficiary in a lump sum as soon
as practicable following the Participant’s death. 

 7.4. Effect on Other Benefit Plans. Amounts credited
to or paid from the Employer Profit-Sharing Subaccount of the Plan shall not be considered to be compensation for the purposes of any qualified plan maintained by the Company or any subsidiary of the Company. The treatment of such amounts under
other employee benefit plans or programs shall be determined pursuant to the provisions of such plans or programs. 
 7.5. Facility of
Payment. If the Participant or his or her beneficiary is entitled to payments under the Plan and in the opinion of the Administrators such person becomes in any way incapacitated so as to be unable to manage his or her financial affairs, the
Company may make payments to the Participant’s or beneficiary’s legal representative or similar person, to a custodian under the Uniform Gifts or Transfers to Minors Act of any state, or in such other manner for the benefit of the
Participant or beneficiary that the Trustees consider advisable. Any payments made in accordance with the preceding sentence shall be a full and complete discharge of any liability for such payment hereunder. Upon a Participant’s death, payment
under the Plan shall be made to the beneficiary or beneficiaries for such Participant under the Profit-Sharing Plan. Any payments made in accordance with the preceding sentences shall be a full and complete discharge of any liability for such
payments hereunder. 
 7.6. Effect of Payment. The full payment of a Participant’s benefit under the Plan shall
completely discharge all obligations on the part of the Company to the Participant (and the Participant’s beneficiary) with respect to the operation of the Plan, and the Participant’s (and Participant’s beneficiary’s) rights
under the Plan shall terminate. 
 7.7. Withholding for Taxes. The Company may withhold from any payment made by it under the
Plan such amount or amounts as may be required for purposes of complying with the tax withholding or other provisions of the Code or the Social Security Act or any state’s income tax act or for purposes of paying any estate, inheritance or
other tax attributable to any amounts payable hereunder. 

  
 7 

 ARTICLE VIII 

ADMINISTRATION 
 8.1.
Administration. The Plan shall be administered by the Trustees of the Profit-Sharing Plan, who will have, to the extent appropriate, the same powers, rights, duties, obligations and indemnity with respect to the Plan as they do with
respect to the Profit-Sharing Plan. Consistent with such rights under the Profit-Sharing Plan, each determination provided for under the Plan shall be made by the Administrators under such procedures as may from time to time be prescribed by them,
and shall be made in their absolute discretion. Any such determination shall be conclusive on all persons. 
 8.2. Claims
Procedures. If a Participant or his or her beneficiary is denied all or a portion of an expected benefit under the Plan for any reason, he or she may file a claim (and thereafter appeal any denied claim) in accordance with the procedures set
forth in the Summary Plan Description for the Profit-Sharing Plan, which are incorporated by reference herein for this purpose. 
 ARTICLE
IX 
 AMENDMENT AND TERMINATIONS 

9.1. Amendment or Termination. The Company may, in its sole discretion, terminate or amend the Plan at any time. No such
termination or amendment shall change the then existing credits to or adjustments of a Participant’s Account or alter his or her right to receive a distribution thereof in accordance with Article VII; provided, however, that if the Company is
liquidated, it shall have the exclusive right to determine the value of each Participant’s Account, as of a date established by the Administrators and to pay any unpaid distributions in any manner which such Administrators determine to be just
and equitable. 
 ARTICLE X 

MISCELLANEOUS 
 10.1.
Non-Alienation. All rights and benefits under the Plan are personal to the Participant, and neither the Plan nor any right or interest of a Participant or any person arising under the Plan is subject to voluntary or involuntary
alienation, sale, transfer, or assignment without the Company’s consent. 
 10.2. Employment Rights. The Plan is not a
contract of employment, and participation in the Plan will not give any Participant the right to be retained in the employ of the Company or any subsidiary of the Company, nor any right or claim to any benefit under the Plan, unless the right or
claim has specifically accrued under the Plan. 

  
 8 

 10.3. Trust Fund. The Company shall be responsible for the payment of all benefits
provided under the Plan. At its discretion, the Company may establish one or more trusts, with such trustees as the Administrators may approve, for the purpose of assisting in the payment of such benefits. Although such a trust shall be irrevocable,
its assets shall be held for payment of all of the Company’s general creditors in the event of insolvency. To the extent any benefits provided under the Plan are paid from any such trust, the Company shall have no further obligation to pay
them. If not paid from the trust, such benefits shall remain the obligation of the Company. 
 10.4. Successors. Unless
otherwise agreed to, the Plan is binding on and will inure to the benefit of any successor to the Company, whether by way of merger, consolidation, purchase or otherwise. 

10.5. Controlling Law. The Plan shall be construed in accordance with the laws of the State of Illinois. 

10.6. Severability. If any provision of the Plan shall be found to be invalid or unenforceable by a court of competent
jurisdiction, the validity or enforceability of the remaining provisions of the Plan shall remain in full force and effect. 
 10.7.
Section 409A. To the extent that any portion of the Plan is subject to the rules under Code Section 409A, such portion of the Plan is not intended to result in acceleration of income recognition or imposition of penalty taxes
by reason of Code Section 409A, and the terms of such portion of the Plan shall be interpreted in a manner (and such portion of the Plan may be amended to the extent determined necessary or appropriate by the Company) to avoid such acceleration
and penalties. The Company may modify the time at which any Account balance will be vested or distributed if it determines that such modification may be necessary to avoid acceleration of tax or imposition of penalties under Code Section 409A.
For purposes of Code Section 409A, a right to receive installment payments pursuant to the Plan shall be treated as a right to receive a series of separate and distinct payments. Regardless of whether the Company modifies or fails to modify the
time at which any Account balance is vested or distributed, each Participant shall be solely liable for any taxes, penalties and interest (including without limitation those imposed under Code Section 409A) incurred with respect to all amounts
credited to the Participants under the Plan. 

  
 9

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