Document:

EX-10.3

 Exhibit 10.3 

Amendment 2021 to the LTIP 2020 
 In
consideration of the planned initial public offering and listing of the Company’s1 registered shares with a nominal value of CHF 0.10 each (Class A Shares) on the New York Stock Exchange
(“IPO”), Compensation Committee states that 
  

	 	•	 	 such IPO will qualify as a Listing in accordance with the rules of the LTIP 2020; 

 

	 	•	 	 a Listing constitutes an Exit Event and leads to a full vesting of the Options granted under the LTIP 2020;

  

	 	•	 	 the number of Options vested is determined based on the level of achievement of IRR at Exit in accordance with
Annex 1 of the LTIP 2020; 

  

	 	•	 	 upon occurrence of an Exit Event, Option Grants may be accelerated and the terms and conditions of the LTIP 2020
may be amended. 

 Therefore, the Compensation Committee proposes and the Board of Directors of the Company approves the following
decisions based on the rules of the LTIP 2020: 
  

	1.	 Vesting due to Exit 

In case of a successful IPO and in consideration of the IRR achievements reached, 100% of the Options granted under the LTIP 2020 shall vest no
later than 75 days since the first trading day (“Vesting Date”) and become Vested Options. Such vesting shall, however, solely apply to Participants whose employment with a Subsidiary has not been terminated as of the first trading
day (“IPO Date”). 
  

	2.	 Option Grants 

 

	2.1.	 Exercise Price 

Due to the listing of the Class A Shares at the New York Stock Exchange, the Exercise Price shall be switched from CHF into USD and fixed
at the exchange rate of 1 USD = 0.92 CHF. 
  

	2.2.	 Acceleration of Option Grant 2022 

 

	 	•	 	 The Option Grant scheduled for March 31, 2022 shall be accelerated to a date no later than 75 days since the
IPO Date; 

  

	 	•	 	 such Options shall be Vested Options as of the Granting Date; 

 

	 	•	 	 the Exercise Price shall be set at USD 7.73 for previous Participants, at USD 12.36 for Participants who joined
in 2021 (before July 1, 2021), and at the US Valuation Price for US Participants; 

  

	 	•	 	 Shares acquired upon exercise of Vested Options shall be subject to a
lock-up period until the first anniversary of the IPO Date. 

  

	1 	 Capitalized terms used in this amendment but not defined herein shall have the respective meaning assigned to
such terms in the LTIP 2020. 

	2.3.	 Acceleration of Option Grant 2023 

 

	 	•	 	 The Option Grant scheduled for March 31, 2023 shall be accelerated to a date no later than 75 days since the
IPO Date; 

  

	 	•	 	 such Options shall be Vested Options as of the Granting Date; 

 

	 	•	 	 the Exercise Price shall be set at USD 7.73 for previous Participants, at USD 12.36 for Participants who joined
in 2021 (before July 1, 2021), and at the US Valuation Price for US Participants; 

  

	 	•	 	 Shares acquired upon exercise of Vested Options shall be subject to a
lock-up period until the second anniversary of the IPO Date. 

  

	2.4.	 Acceleration of Option Grant 2024 

 

	 	•	 	 The Option Grant scheduled for March 31, 2023 shall be accelerated to December 2022; 

 

	 	•	 	 such Options shall be vested Options; 

 

	 	•	 	 the Exercise Price shall be set at USD 7.73 for previous Participants, at USD 12.36 for Participants who joined
in 2021 (before July 1, 2021), at the Valuation Price of the first trading day of the year 2022 for Participants of Group 4 and 5, and at the US Valuation Price for US Participants; 

 

	 	•	 	 Shares acquired upon exercise of Vested Options shall be subject to a
lock-up period until the third anniversary of the IPO Date. 

 Due to the changes in the capital
structure of the Company and the planned IPO, the Compensation Committee proposes and the Board of Directors of the Company approves the following amendments to the LTIP 2020 and the following adjustments to the terms of the Option Grants made under
the LTIP 2020: 
  

	3.	 Amendment to LTIP 2020 

 

	3.1.	 Section 1: Definitions 

 

			
	Class A Share	  	shall mean a registered common share of the Company with a nominal value of CHF 0.10.
		
	Class B Share	  	shall mean a registered share of the Company with a nominal value of CHF 0.01 (voting right share).
		
	IPO Date	  	shall mean the first trading day of the Class A Shares on a recognized stock exchange.
		
	Shares	  	shall mean the Class A Shares, Class B Shares or any or both of them (each a “Share”).

  
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	3.2.	 Section 3.3: Number of Options 

The maximum aggregate number of Shares which may be issued pursuant to all Options under the LTIP 2020 is 9,062,962
Class A Shares and 15,812,500 of Class B Shares of the Company (Class B Shares are exclusively reserved for Options to be granted to
the members of the Executive Committee). Any Options granted but forfeited in accordance with sections 9.1.1, 9.2.1 or 9.3.1 of the Plan or any Options granted but not vested according to section 5.3 of the Plan shall be forfeited and not
be reallocated to other or new Participants. 
  

	3.3.	 Section 5.2: Option Terms 

The Exercise Price of an Option shall be set by the Board of Directors and shall not be less than USD 7.73 for a
Class A Share and USD 0.77 for a Class B Share for all Participants; for US Participants, the Exercise Price shall in any case not be less than
the US Valuation Price applicable at the Granting Date. 
  

	3.4.	 Section 6.2: Cash Exercise 

Options exercised in cash shall be settled by way of issuance and transfer of Shares (subject to the rules and requirements of sections 6.3,
7 and 8 of this Plan) against full payment of (i) the Exercise Price and (ii) if requested by the Company, the applicable Tax Withholding. The Participant shall make these payments in cash no later than 5 days since the filing of the
notice of exercise. Alternatively, the Participant will be requested to sell the number of Shares necessary to capture the Tax Withholding. The (net number of) Shares shall be subject to the lock-up
period according to section 6.3 if any.  
  

	3.5.	 Section 6.3: Lock-up Period 

Unless specified otherwise in the individual Option Agreement, Shares acquired upon exercise of Vested Options shall be subject to the
following lock-up periods: 
  

			
	Shares acquired upon exercise of	  	Lock-up period
	Options granted on March 31, 2021	  	No lock-up
period2
	Accelerated Option Grant 2022	  	Lock-up period until the earlier of the first anniversary of the IPO Date or December 31,
2023
	Accelerated Option Grant 2023	  	Lock-up period until the earlier of the second anniversary of the
IPO Date or December 31, 2024
	Accelerated Option Grant 2024	  	Lock-up period until the earlier of the third anniversary of the IPO Date or
December 31, 2025

  

	2 	 The Shares acquired upon exercise of Options granted on March 31, 2021, will, however, be subject to the lock-up/market stand-off provisions as required by and agreed with the underwriter(s)/joint global coordinator(s). 

  
 3 

 Any other rules of the LTPP 2020 remain unchanged and shall continue to apply. 

 

	4.	 Adjustment of Option Grants made under the LTIP 2020 

The share capital increase by an increase of the nominal value of the Class A Shares of the Company from CHF 10.00 to CHF 125.00
per share, and of the Class B Shares of the Company from CHF 1.00 to CHF 12.50 and the subsequent share split whereby one registered share is split into 1,250 registered shares, i.e. one Class A Share with a nominal value of
CHF 125 is split into 1,250 Class A Shares with a nominal value of CHF 0.10 each, and one Class B Share with a nominal value of CHF 12.50 is split into 1,250 Class B Shares with a nominal value of CHF 0.01 each,
requires an adjustment of the number of Options by the factor 1,250 as well as an adjustment of the exercise price by the divisor 1,250. Therefore, the number of Options granted but not yet exercised under the LTIP 2020 shall be amended as
follows: 
  

	
	  

1 option (granted) = 1,250 options (adjusted)

 Furthermore, the Exercise Price of the granted Option shall be amended as follows: 

 

	
	  

Exercise Price CHF 8,884 = Exercise Price USD 7.73 (adjusted)

Exercise Price CHF 9,125 = Exercise Price USD 7.93 (adjusted)

 Furthermore, due to administrative and technical reasons, the Vesting Date shall be postponed at a date no
later than 75 days since the IPO Date (date to be set and communicated by the Compensation Committee). 
 Zurich, August 22, 2021 

 

					
	 /s/ David Allemann
	 	                	  	 /s/ Caspar Coppetti

	David Allemann	 		  	Caspar Coppetti
	Co-Chairman of the Board of Directors	 		  	Co-Chairman of the Board of Directors

  
 4EX-10.4

 Exhibit 10.4 

On Holding AG – LTIP 2018 
  

 
 ON HOLDING AG 

LONG TERM INCENTIVE PLAN 2018 
  

 
 Approved by the Board of Directors
on 
 23. July 2018 
 Zurich, 23. July 2018 

 

					
	 /s/ Caspar Coppetti
	 		 	 /s/ David Allemann

	Caspar Coppetti	 		 	David Allemann
	Chairman of the Board of Directors	 		 	Member of the Board of Directors

 List of Annexes: 
  

			
	Annex 1:	  	Exit Vesting Scale
	Annex 2:	  	Business Continuation Vesting Scale
	Annex 3:	  	Notice of exercise

 On Holding AG – LTIP 2018 
  

 
  

	1.	 Definitions 

Any capitalized terms used herein and not otherwise defined shall have the meaning ascribed to them in this section. 

 

	 Bad Leaver  
	shall mean a Participant (i) whose employment with a Subsidiary is terminated for Cause or (ii) whose employment with a Subsidiary is terminated and who is not qualifying as a Good or Medium Leaver. 

 

	 Board of Directors 
	shall mean the board of directors of the Company. 

  

	 Business Continuation  
	shall mean that as of January 1st, 2021, no Exit occurred and no Exit is scheduled for execution until March 31, 2021. 

 

	 Cause  
	shall mean (i) any material violation of law, (ii) grave misconduct or egregious acts (such as wilful disregard for company policy, falsifying records, stealing, violence, and similar acts or behaviour) which have occurred again after
formal written notice to the respective Participant, or (iii) a termination for cause according to art. 337 of the Swiss Codes of Obligations. 

  

	 Company  
	shall mean On Holding AG with registered seat in Zurich, Switzerland. 

  

	 Compensation Committee 
	shall mean the compensation committee of the Company as appointed by the Board of Directors, which administrates the LTIP 2018 pursuant to section 15 of the Plan. 

 

	 EBITDA  
	shall mean earnings before interest, taxes, depreciation and amortization. 

  

	 Exercise Price  
	shall mean the exercise price per Share for each Option granted under the LTIP 2018, as specified in section 5.2 of the Plan and by the Option Agreement. 

  

	 Exit 
	shall mean the occurrence an Exit Event. 

  

	 Exit Event 
	shall mean the completion of any one of the following events: (i) a Listing, (ii) a private sale of at least 40% of the Shares held by the current non-executive shareholders or (iii) one
current shareholder gains, whether directly or indirectly, ownership of more than 50% of the Company, (iv) a private sale of all or substantially all of the Company’s assets relevant for its business to a buyer, (v) a merger,
consolidation or demerger, or (vi) another reorganization with a similar result as (ii), (iii) or (iv). 

  
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 On Holding AG – LTIP 2018 
  

 
  

	 Fair Market Value 
	shall mean, with respect to one Share, the consideration paid per Share or allocated per Share in the Exit Event. 

  

	 Formula Value  
	shall mean, with respect to a Share for any purpose on a particular date, the value determined by the Compensation Committee in good faith by using the following valuation formula: [(2x capitalized earnings value) + net asset value] / 3
(at least, however, net asset value), whereby the capitalized earnings value shall be determined based on the audited financial accounts of the years (n) and (n-1), (n) weighting 2/3 and (n-1) weighting 1/3, capitalization factor 10%, divided by the total number of issued and outstanding Shares on a fully diluted basis. Valuations must be made based on the latest audited consolidated financial
statements of the On Group and shall be valid for six months following the year-end closing. For US Participants, it shall mean the Valuation Price. 

 

	 Good Leaver  
	shall mean a Participant whose employment with a Subsidiary is terminated (i) by the Subsidiary without Cause, (ii) due to death, (iii) Permanent Disability, or (iv) retirement at legal age. 

 

	 Granting Date  
	shall mean the date on which Options have been granted to a Participant pursuant to section 3 of the Plan. 

  

	 IRR 
	shall mean the internal rate of return based on the Share price of CHF 1,940.05 paid at the last financing round as of December 2017, on a fully diluted basis (including all granted and outstanding OEPP and Phantom Shares) at the occurrence of
an Exit. 

  

	 Listing  
	shall mean a listing of the Shares for trading on a recognized stock exchange (e.g., in connection with an initial public offering). 

  

	 LTIP 2018  
	shall mean this Long Term Incentive Plan 2018. 

  

	 Medium Leaver  
	shall mean a Participant whose employment with a Subsidiary is terminated by the Participant. 

  

	 Notification Date 
	shall mean the date when notice of termination of employment of a Participant is given by the Participant or the Subsidiary. 

  

	 On Group  
	shall mean On Holding AG and all its Subsidiaries. 

  
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 On Holding AG – LTIP 2018 
  

 
  

	 Option  
	shall mean a call option giving the right to the Participant to acquire one Share of the Company against payment of the Exercise Price. 

  

	 Option Agreement 
	shall mean a written agreement to be concluded between the Company and the Participant wherein the individual Share Option Grant is specified. 

  

	 Option Grant 
	shall mean a grant of Options to a Participant pursuant to the terms of the Plan. 

  

	 Participants 
	shall mean the members of the executive board of the On Group (Level 1 employees) and the members of the management team (Level 2 employees) that are participating in the LTIP 2018 (each a “Participant”).

  

	 Permanent Disability 
	shall mean the incapacity to perform a majority of work-related duties during at least six consecutive months and no reasonable expectation to returning to work, as a result of disability and as attested by qualified physician entrusted by the
Compensation Committee. 

  

	 Plan 
	shall mean the LTIP 2018. 

  

	 Share 
	shall mean a registered share of the Company with a nominal value of CHF 10.00. 

  

	 Shareholders Agreement  
	shall mean the shareholders’ agreement to be entered into by and between the shareholders of the Company, as amended from time to time. 

  

	 Subsidiary  
	shall mean any corporation in which the Company directly or indirectly owns stock representing 50% or more of the total combined voting power of all classes of stock (together “Subsidiaries”). 

 

	 Tax Withholding 
	shall mean any income taxes and/or social security contributions of the Participant which are due upon exercise of an Option or upon subsequent sale of a Share, if any, for which the Company or a Subsidiary has a withholding and payment
obligation by applicable Swiss or foreign law. 

  

	 Termination Date 
	shall mean the effective date of termination of employment of a Participant. 

  

	 US Participants 
	shall mean the Participants (i) who are or have been employed by or seconded to ON Inc. during the vesting period of the Options and/or (ii) who are subject to US income taxes due to their US citizenship. 

  
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 On Holding AG – LTIP 2018 
  

 
  

	 Valuation Price  
	shall mean price per Share as determined based on the annual 409A valuation of the Company in accordance with and for purposes of US tax laws. 

  

	 Vesting Date 
	shall mean the date on which Options vest in accordance to section 5.3 of the Plan. 

  

	 Vested Options 
	shall mean the number of Options which vested based on the applicable vesting scale of Annex 1 or 2 of the Plan, as determined by the Compensation Committee according to section 5.3 of the Plan. 

 

	2.	 Purpose 

The purpose of the LTIP 2018 is to retain highly qualified personnel, and to provide certain key employees with additional incentive to increase their efforts
on behalf and in the best interest of the Company and the On Group by giving them the opportunity to participate in the ownership of the Company by purchasing Shares through the Option rights. 

 

	3.	 Granting of Options 

Options may be granted to the Participants in accordance with the terms of the LTIP 2018. Each grant of Options shall be valid only if evidenced in a written
Option Agreement. 
 The maximum aggregate number of Shares for which Options may be granted under the LTIP 2018 shall be 18,000 Shares of the Company and
shall be divided into two groups as follows: 
  

					
	 Category
	  	 Total no of Shares
	  	 Grant schedule

			
	Group 1 Options	  	11,915 Shares of the Company	  	One time grant at inception of the LTIP 2018
			
	Group 2 Options	  	6,085 Shares of the Company	  	In three tranches (tranche a), b) and c)) with a minimum of 1,680 Options per tranche.

 Any Options forfeited in accordance to sections 9.1.1, 9.2.1, 9.3.1 or 11 of the Plan or any Options which did not vest
according to section 5.3 of the Plan will be forfeited and shall not be reallocated to other or new Participants. 
  

	4.	 Eligibility 

The criteria which have to be fulfilled by a Participant to be granted Options under the LTIP 2018 shall be set by the Board of Directors in its sole
discretion. 

  
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 On Holding AG – LTIP 2018 
  

 
  

Members of the executive board of the On Group (Level 1 employees) may be granted Group 1 Options only; members of the management team (Level 2 employees) may
be granted Group 2 Options only. 
 Option grants with respect to Group 1 Options have been determined concurrently with the inception of the LTIP 2018 by
the Board of Directors. 
  

	5.	 Option Terms 

  

	5.1.	 Issuance Price 

Group 1 and Group 2 Options shall be granted free of charge. 
  

	5.2.	 Exercise Price 

The Exercise Price of Group 1 and Group 2 Options shall be set at CHF 10.00. For US Participants, the Exercise Price shall be set at the Valuation Price
applicable at the Granting Date. 
  

	5.3.	 Vesting 

Group 1 and Group 2 Options shall vest on the earlier of the occurrence of an Exit or, in case of Business Continuation, on April 1, 2021. 

If vesting occurs due to an Exit, the Compensation Committee will determine the number of Options vested based on the vesting scale depending on the level of
achievement of IRR at Exit as set forth in Annex 1 of the Plan. 
 In case of Business Continuation, the Compensation Committee will determine the
number of Options vested based on the vesting scale depending on the level of achievement of net sales, gross profit and EBITDA as set forth in Annex 2 of the Plan, whereby net sales, gross profit and EBITDA shall be determined on the basis
of the audited consolidated financial statements 2020 of the On Group. 
  

	5.4.	 Exercise Period 

Vested Options (unless forfeited in accordance with sections 9.1.1, 9.2.1, 9.3.1 or 11 of the Plan), may be exercised until the fifth anniversary of the
Granting Date. 

  
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 On Holding AG – LTIP 2018 
  

 
  

	6.	 Exercise of Options 

 

	6.1.	 In General 

Vested Options may be fully or partially exercised by the relevant Participant by filing a written notice of exercise (see Annex 3) to the Company. 

In order to be valid, the completed notice of exercise must be received by the Company on or prior to the following dates: 

 

	(i)	 In any event: before the lapse of the Exercise Period; and 

 

	(ii)	 For Good Leavers: within 14 days after the Termination Date (or Vesting Date, if applicable); or

  

	(iii)	 For heirs: within 180 days since the Participant’s death; or 

 

	(iv)	 For Medium Leavers: within 14 days after the Termination Date. 

Options may be exercised in cash, as set out hereinafter. 
  

	6.2.	 Cash Exercise 

Options exercised in cash shall be settled by way of issuance and transfer of Shares (subject to the rules and requirements of sections 6.3, 7 and 8 of this
Plan) against full payment of (i) the Exercise Price and (ii) if requested by the Company, the applicable Tax Withholding. These payments shall be made in cash by the Participant not later than 30 days since the filing of the written
notice of exercise. 
  

	6.3.	 Lock-up Period 

 

	6.3.1.	 Group 1 Options 

Shares acquired upon exercise of Vested Group 1 Options shall be subject to the following lock-up periods: 

 

	 	•	 	 1/3 of the Shares shall not be subject to any lock-up period;

  

	 	•	 	 1/3 of the Shares shall be subject to a lock-up period until the earlier
of the first anniversary of the Vesting Date or December 31, 2021; 

  

	 	•	 	 1/3 of the Shares shall be subject to a lock-up period until the earlier
of the second anniversary of the Vesting Date or December 31, 2022. 

  

	6.3.2.	 Group 2 Options 

Shares acquired upon exercise of Vested Group 2 Options shall be subject to the following lock-up periods: 

 

	 	•	 	 Tranche a): the Shares shall not be subject to any lock-up period;

  
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 On Holding AG – LTIP 2018 
  

 
  

	 	•	 	 Tranche b): the Shares shall be subject to a lock-up period until the
earlier of the first anniversary of the Vesting Date or December 31, 2021; 

  

	 	•	 	 Tranche c): the Shares shall be subject to a lock-up period until the
earlier of the second anniversary of the Vesting Date or December 31, 2022. 

  

	7.	 Restrictions as to transferability of Awards and Shares 

No Options granted under the LTIP 2018 shall be sold, pledged, assigned, encumbered, transferred, or disposed of in any manner other than by will or
inheritance laws. 
 Upon exercise of Options, each Participant (or his/her heirs) will be required to become a party to the Shareholders Agreement and
shall, among other provisions, be bound to all restrictions as to the transferability of the Shares as stated therein. As a condition precedent for the transfer of Shares, the Participant (or his/her heirs) will be requested to execute a formal deed
of adherence in which he/she will declare adherence to the Shareholders Agreement and all terms thereof. 
 The Company in its sole discretion may decide to
list the Shares on any recognized stock exchange. In that event, all Shares issued to Participants (or their heirs) under the LTIP 2018 may be subject to customary limitations in terms of transferability of Shares
(lock-up/market stand-off) - in addition to the lock-up period of section 6.3 of the Plan - for a period following an initial
public offering of Shares as required by the underwriter(s)/joint global coordinator(s) or pursuant to applicable listing requirements or deemed appropriate by the Company and agreed with the underwriter(s)/joint global coordinator(s) in case of an
initial (or subsequent) public offering of Shares. 
  

	8.	 Deposit of Shares 

Shares acquired by the Participant (or his/her heirs) under the LTIP 2018 shall – if certificates are at all issued, which shall be at the option of the
Company – be duly endorsed in blank by the relevant Participant (or his/her heirs) and then be and remain deposited in the name and for the account of the Participant (or his/her heirs) either with the Company or at the election of the Company
with a third party chosen by the Company. The Company will bear the costs of such safekeeping. Upon occurrence of a listing of the Shares on a recognized stock exchange and upon lapse of the lock-up, if any,
such Shares may be released and transferred to the Participant’s personal deposit account upon request. 

  
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 On Holding AG – LTIP 2018 
  

 
  

	9.	 Effect of Termination of Employment 

In case of termination of employment between a Participant and a Subsidiary, the following rules shall apply: 

 

	9.1.	 Good Leaver 

  

	9.1.1.	 Options 

A Participant who qualifies as a Good Leaver shall 
  

	(i)	 Automatically and immediately forfeit 2/3 of his/her unvested Group 1 Options or all of his/her Group 2 Options
of tranche b) and c) without any indemnification, as of the Termination Date; and 

  

	(ii)	 Keep 1/3 of his/her unvested Group 1 Options or all of his/her Group 2 Options of tranche a) until the first
anniversary of the Termination Date. Thereafter, all unvested Group 1 Options or all unvested Group 2 Options of tranche a) shall be forfeited automatically, irrevocably and without indemnification to the Participant. If an Exit occurs within the 12-month period following the Termination Date, such retained Group 1 Options or Group 2 Options of tranche a) shall vest in accordance with section 5.3 and must be exercised within 14 days as of the Vesting Date.
Thereafter, all unexercised Vested Options shall be forfeited automatically, irrevocably and without indemnification to the Participant. 

  

	(iii)	 Keep his/her Vested Options which can be exercised within 14 days as of the Termination Date. In case of death
of the Participant, the heirs may exercise any Vested Options within 180 days from the Participant’s death. Thereafter, all unexercised Vested Options shall be forfeited automatically, irrevocably and without indemnification to the Participant.

  

	9.1.2.	 Shares 

A Participant who qualifies as a Good Leaver shall keep all his/her unrestricted Shares acquired under the LTIP 2018 prior to the Termination Date or due to
section 9.1.1 (ii). The Company (or any person or legal entity nominated by the Company) shall, however, have the right, but not the obligation, to purchase any Shares acquired under the LTIP 2018 which are still subject to a lock-up in accordance with section 6.3 as of the Termination Date at the lesser of the [Formula Value at the time of exercise of the Option and the Formula Value at the time of exercise of such purchase option] by
the Company (or any person or legal entity nominated by the Company). The term of such purchase option is limited to one calendar year as of the Participant’s Termination Date. 

 

	9.2.	 Medium Leaver 

 

	9.2.1.	 Options 

A Participant who qualifies as a Medium Leaver shall 
  

	(iv)	 Automatically and immediately forfeit all his/her unvested Options, without any indemnification, as of the
Termination Date; 

  
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 On Holding AG – LTIP 2018 
  

 
  

	(v)	 Keep his/her Vested Options which can be exercised within 14 days as of the Termination Date. Thereafter, all
unexercised Vested Options shall be forfeited automatically, irrevocably and without indemnification to the Participant. 

  

	9.2.2.	 Shares 

A Participant who qualifies as a Medium Leaver shall keep all his/her unrestricted Shares acquired under the LTIP 2018 prior to the Termination Date. The
Company (or any person or legal entity nominated by the Company) shall, however, have the right, but not the obligation, to purchase any Shares acquired under the LTIP 2018 which are still subject to a lock-up
in accordance with section 6.3 as of the Termination Date at the lesser of the [Formula Value at the time of exercise of the Option and the Formula Value at the time of exercise of such purchase option] by the Company (or any person or legal entity
nominated by the Company). The term of such purchase option is limited to one calendar year as of the Participant’s Termination Date. 
  

	9.3.	 Bad Leaver 

  

	9.3.1.	 Options 

A Participant who qualifies as a Bad Leaver shall automatically and immediately forfeit all his/her Options, whether vested or not, without any
indemnification, as of the Notification Date. 
  

	9.3.2.	 Shares 

The Company (or any person or legal entity nominated by the Company) shall have the right, but not the obligation, to purchase any Shares acquired under the
LTIP 2018 of a Bad Leaver at the lesser of the Exercise Price paid at the time of exercise of the Option and the Formula Value at the time of exercise of such purchase option by the Company (or any person or legal entity nominated by the Company).
The term of such purchase option is limited to one calendar year as of the Participant’s Termination Date. 
  

	10.	 Exit 

  

	10.1.	 Effect of an Exit 

 

	10.1.1.	 In General 

Upon the occurrence of an Exit, subject to any consent required under the Shareholders Agreement, the Compensation Committee may prescribe and amend the terms
and conditions for the vesting, exercise and settlement of any Options granted under the LTIP 2018, provided that such amendments are not materially adverse to the Participants and do not compromise the interests of the Participants. Such power and
discretion shall include, but not be limited to, the power and authority to (i) reduce 

  
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 On Holding AG – LTIP 2018 
  

 
  

or abolish lock-up periods and to (ii) modify the requirements and modality for the settlement of any Options
(including a cash settlement in case of a full Exit in an amount equal to the Fair Market Value minus the Exercise Price, subject to any Tax Withholding). 
  

	10.1.2.	 Participants, Good and Medium Leavers 

Upon the occurrence of an Exit Event, Participants, Good and Medium Leavers may sell or may be required to sell their Shares acquired under the LTIP 2018 in
accordance with the rules of the Shareholders’ Agreement at the Fair Market Value subject to any applicable Tax Withholding. 
  

	11.	 Business Continuation 

In the Business Continuation scenario, the shareholders of the Company shall be protected with a stop-loss clause requiring that a minimum of 5% IRR must be
achieved from 2018 to an Exit (until December 31, 2022 at the latest). If such achievement is missed in an Exit 
  

	(i)	 in 2021, Participants will immediately forfeit 2/3 of any Group 1 Options or all Group 2 Options of tranche b)
and c) without any indemnification; 

  

	(ii)	 in 2022, Participants will immediately forfeit 1/3 of any Group 1 Options or all Group 2 Options of tranche c)
without any indemnification. 

 Furthermore, the Company (or any person or legal entity nominated by the Company) shall have the right,
but not the obligation, to purchase from the Participant any Shares which are still subject to a lock-up according to section 6.3 as of the Exit at the lesser of the Exercise Price paid at the time of exercise
of the Option and the Fair Market Value at the time of exercise of such purchase option by the Company (or any person or legal entity nominated by the Company). The term of such purchase option is limited to 120 days as of the date of the Exit. 

 

	12.	 Changes in Capital Structure 

In the event of a change, other than a share capital increase, relating to the Shares through reclassification, recapitalization, subdivision, stock dividend,
stock split-up or otherwise in the Company’s corporate structure, the Compensation Committee shall, to the extent permissible by law, adjust the terms of the Options then outstanding to ensure that the
Participants receive in respect of each Option, upon exercise, the same value and type of stock that each Participant would have been entitled to receive without such change. 
  

	13.	 Taxation and Social Security 

Options may be subject to income tax and/or social security. In Switzerland, Options will be subject to Swiss income tax and Swiss social security
contributions upon exercise. A subsequent sale of the Shares acquired upon exercise may, depending on the individual circumstances and the amount of 

  
 11 

 On Holding AG – LTIP 2018 
  

 
  

the capital gain realized, trigger Swiss income tax and Swiss social security contributions as well. Swiss social security contributions legally due will be
borne by the Subsidiary and the relevant Participant in accordance with applicable law and regulations. 
 Depending on the Participant’s residence,
place of work or nationality, Options may be subject to income tax and/or social security contributions in jurisdictions other than Switzerland. Each Participant is responsible for a proper declaration and payment of his/her personal income taxes,
including capital gains taxes, if any, that may arise from participation in the LTIP 2018 in each relevant jurisdiction. 
  

	14.	 No Entitlements 

 

	14.1.	 No Right to Future Grants 

The participation in the LTIP 2018 shall not confer any right or entitlement to be granted any Options or awards in the future or to participate in any future
employee participation plan. 
  

	14.2.	 No Right to Continued Employment 

The LTIP 2018 does not constitute an employment agreement. Nothing contained herein shall modify the terms of the Participants’ respective employment or
restrict the Subsidiary’s right to terminate the employment of any Participant at any time, with or without Cause, or to adjust the compensation of any Participant. 
  

	15.	 Administration 

The LTIP 2018 shall be administrated by the Compensation Committee. 

The Compensation Committee is authorized and shall have full power and authority, subject to the provisions of the LTIP 2018, to establish such rules and
regulations as it may deem appropriate for the proper administration and operation of the LTIP 2018, and to make such determinations under, and such interpretations of, and to take such steps in connection with, the LTIP 2018 and the Options granted
thereunder as it may deem necessary or advisable. 
 The Compensation Committee’s decisions, determinations and interpretations shall be final and
binding on all Participants and any other holders of Options or Shares hereunder. 
  

	16.	 Amendment 

The Compensation Committee may make any amendments to the LTIP 2018 that may be necessary to comply with or conform to applicable laws. Furthermore, the
Compensation Committee shall have the power to modify the LTIP 2018 as necessary to conform to the Shareholders Agreement solely to the extent such modifications would not adversely affect a Participant. 

  
 12 

 On Holding AG – LTIP 2018 
  

 
  

	17.	 Confidentiality 

The LTIP 2018 is confidential to the business. The terms and conditions of the LTIP 2018 and any individual Option grant shall therefore be kept strictly
confidential (and may be shared only with the personal advisors of the Participant), unless disclosure is required by mandatory law. 
  

	18.	 Effective Date and Term of the LTIP 2018 

The LTIP 2018 has been approved by the Board of Directors on [DATE]. The LTIP 2018 shall be effective as of [DATE] and shall be valid until the later of
[December 31, 2022] or all Options granted under the LTIP 2018 have been exercised, or have been forfeited, or otherwise canceled or any purchase options of the Company have been exercised or lapsed. 

 

	19.	 Governing Law 

The LTIP 2018 shall be subject to and governed by substantive Swiss law. 

* * * 

  
 13 

					
	On Holding AG – LTIP 2018	  		  	

  
  

 
 ANNEX 1: Exit Vesting Scale 

Exit Vesting Scale LTIP 2018-2020 (both metrics within a line need to hold true for vesting to take place) 

 

					
	 achieved IRR on fully diluted basis

vs share price of CHF 1940.05
	  	 Realized actual share price at time

of exit
	  	 Vesting %

			
	IRR < 25%	  	n/a	  	0%
			
	IRR = 25%	  	n/a	  	40.0%
			
	IRR >25% & <35%	  	n/a	  	40% + (achieved IRR-25%)/1%*(8/3)%
			
	IRR = 35%	  	n/a	  	66.67%
			
	IRR >35% & <45%	  	£CHF3’900	  	66.67%
			
	IRR >35% & <45%	  	>CHF3’900	  	66.67% + (achieved IRR-35%)/1%*(10/3)%
			
	IRR 3 45%	  	£CHF3’900	  	66.67%
			
	IRR 3 45%	  	>CHF3’900 & £CHF4’600	  	66.67% + (realized actual share price in CHF at point of exit - CHF 3’900) * 0.048%
			
	IRR 3 45%	  	>CHF4’600	  	100% = 16’955 options (+max add’l. 1’045 options allocated to US participants on top to compensate for the higher strike price of the granted options)

  
 14 

 On Holding AG – LTIP 2018 
  

 
  

ANNEX 2: Business Continuation Vesting Scale 
 Business
Continuation Vesting Scale LTIP 2018-2020 (all three metrics within a line need to hold true for vesting to take place) 
  

							
	 Achieved Net Sales FY 2020

On Group
	  	 Achieved Gross Profit

Margin FY 2020 On Group
	  	 Achieved EBITDA margin FY 2020
On
Group
	  	 Vesting%

				
	CHF £260m	  	n/a	  	n/a	  	0.0%
				
	CHF 260m	  	351.2%	  	310%	  	40.0%
				
	CHF >260m & <306m	  	351.2%	  	310%	  	40% + (achieved Net Sales - 260m)/1m * 0.58%
				
	CHF >260m & £306m	  	£51.2%	  	310%	  	if achieved Gross Profit/0.512 > 260m, then vesting = 40% + (achieved Gross Profit/0.512 - 260m)/1m * 0.58%, otherwise no vesting
				
	CHF 306m	  	351.2%	  	310%	  	66.67%
				
	CHF >306m & <356m	  	351.2%	  	310%	  	66.67% + (achieved Net Sales - 306m)/1m * 0.67%
				
	CHF >306m & £356m	  	£51.2%	  	310%	  	if achieved Gross Profit/0.512 > 306m, then vesting = 66.67% + (achieved Gross Profit/0.512- 306m)/1m * 0.67%; if achieved Gross Profit/0.512
<306m & >260m, then vesting = 40% + (achieved Gross Profit/0.512 - 260m)/1m * 0.58%; otherwise no vesting
				
	CHF 3356m	  	351.2%	  	310%	  	100.0%
				
	CHF 3356m	  	£51.2%	  	310%	  	if achieved Gross Profit/0.512 >356m, then vesting = 100% = 16’955 options (+ max add’l. 1’045 options allocated to US participants only on top to compensate for the higher strike price of the
granted options); if achieved Gross Profit/0.512 <356m & >306m, then vesting = 66.67% + (achieved Gross Profit /0.512 - 306m)/1m * 0.67%; if achieved Gross Profit/0.512 <306m & >260m, then vesting = 40% +
(achieved Gross Profit/0.512 - 260m)/1m * 0.58%; otherwise no vesting

  
 15 

					
		  		  	

  
 EXERCISE NOTICE 

LONG TERM INCENTIVE PLAN 2018 

ON HOLDING AG 
  

 
 To be sent to the attention of the CFO of ON
Holding AG  
  

			
	Name and address of Participant:	 	  

		
		 	  

 Options to be exercised (please indicate): 
  

							
	 Option Category

(Group 1 or 2 Options)
	  	 Number of Options

to be exercised (a)
	  	 Exercise price per

Share in CHF (b)
	  	 Total Exercise Price in
CHF (c = a x b)

				
		  		  		  	

 Note: 
  

	i)	 The terms defined in the Long Term Incentive Plan 2018 of ON Holding AG have the same meaning when used herein.

  

	ii)	 Options exercised will be settled by way of issuance and transfer of Shares (subject to lock-up, if any, according to section 6.3 and deposit according to section 8 of the LTIP 2018) against full payment of (i) the Exercise Price and (ii) if requested by the Company, the applicable Tax
Withholding. Upon receipt of this notice of exercise, the Company will inform the Participant about the applicable Tax Withholding and provide the Participant with the payment details. Payment of the Exercise Price and Tax Withholding is due in cash
and not later than 30 days since the filing of this notice of exercise. 

  

	iii)	 As a condition precedent for the validity of the exercise of the Options hereunder and the issuance and
transfer of Shares, the Participant will be requested to execute a formal deed of adherence in which he/she will declare adherence to the Shareholders Agreement and all terms thereof. 

 

			
	Place/Date:	 	  

		
	Signature of Participant:

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