Document:

EX-10.10.19.9

Exhibit 10.19.6

AVERY DENNISON CORPORATION

RESTRICTED STOCK UNIT AGREEMENT

THIS AGREEMENT, dated * , is made by and between Avery Dennison Corporation, a Delaware
corporation, hereinafter referred to as the “Company,” and * , an employee of
Company or a Subsidiary of Company, hereinafter referred to as “Employee.”

WHEREAS, Company wishes to grant to Employee an Award of restricted stock units (“RSUs”) with
Dividend Equivalents (“DEs”) under the terms of the Employee Stock Option and Incentive Plan, as
amended and restated (“Plan); and

WHEREAS, the Compensation and Executive Personnel Committee of the Company’s Board of Directors
(hereinafter referred to as the “Committee”), appointed to administer the Plan, has determined that
it would be to the advantage and best interest of Company and its shareholders to grant the RSUs
with DEs (the “RSU Award”) provided for herein to Employee as an inducement to remain in the
service of Company or its Subsidiaries and as an incentive for increased efforts during such
service;

WHEREAS, the Committee has advised the Company of its determination and instructed the undersigned
officers to issue said RSU Award, as authorized under the Plan;

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, the receipt of which is hereby acknowledged, Company and Employee do hereby
agree as follows:

ARTICLE I – DEFINITIONS

Terms not defined herein shall have the meaning given in the Plan. Whenever the following
terms are used in this Agreement they shall have the meaning specified below unless the context
clearly indicates to the contrary.

1.1 Pronouns

The masculine pronoun shall include the feminine and neuter, and the singular and plural,
where the context so indicates.

1.2 Dividend Equivalents

Whenever dividends are paid or distributions made with respect to the Common Stock, Employee
shall be entitled to dividend equivalents (“Dividend Equivalents”) (in an amount equal in value to
the amount of the dividend paid or property distributed on a single share of Common Stock
multiplied by the number of Restricted Stock Units in Employee’s RSU account), which Dividend
Equivalents shall be credited as additional Restricted Stock Units (calculated by dividing the
Dividend Equivalent by the price of a single share of Company Stock and including any fractional
share) to the Employee’s RSU account as of the record date for such dividend or distribution.

ARTICLE II — TERMS OF AWARD

	2.1	 	RSU Award

In consideration of Employee’s agreement to remain in the employment of Company or its
Subsidiaries during the Restriction Period (defined below) and for other good and valuable
consideration, on the date hereof the Company grants to Employee a RSU Award representing
*            shares of the Company’s Common Stock, subject to the terms and conditions set
forth in this Agreement and the Plan. Each RSU shall represent one hypothetical share of Common
Stock of the Company. The RSU Award granted hereunder shall be held in the books and records of the
Company (or its designee) for the Employee’s RSU account. The RSU Award shall be subject to the
restrictions described herein and shall vest as set forth in this Agreement.

2.2 Restriction Period

(a) No portion of the RSU Award granted hereunder may be sold, transferred, assigned, pledged
or otherwise encumbered or disposed of by the Employee until the RSU Award becomes vested. The
period of time between the date hereof and the date the RSU Award becomes vested is referred to
herein as the “Restriction Period.” At the time the RSU Award vests, the RSUs and the DEs vest.

(b) After three fiscal years following the date the RSU Award was granted, the RSU Award will
vest on the date of the Committee’s certification (as described below), provided that the Company’s
return on total capital (“ROTC”) (as reported in the annual report to shareholders or other report)
for the most recently completed fiscal year equals or exceeds the sixty-seventh (67%) percentile of
the return on total capital for the peer group companies (as listed in the Company’s proxy
statement) for such third fiscal year (the “performance test”). (For example, the initial
performance test for vesting for the RSU Award granted in December 2005 will be based on the return
on total capital for 2008.)

To facilitate the peer group performance comparison needed to determine whether the RSU Award
vests, the figures for peer group companies return on total capital will be based upon the
twelve-month performance for each company in the peer group closest to the Company’s fiscal year
end, using the most recent publicly available financial information for such companies.

If the Company meets the performance test described above, all prior non-vested RSU Awards
eligible for vesting will vest on the date of the Committee’s certification that the Company has
met the performance test.

If the Company fails to meet the initial performance test described above, all prior
non-vested RSU Awards eligible for vesting will be subject to the same performance test following
the end of the next two fiscal years. If the Company fails to meet the performance test by the end
of the fifth fiscal year following the date of the grant, then the RSU Award will be forfeited.

(c) Subject to the provisions of this Agreement, if the Employee’s employment with the Company
is terminated for Cause or voluntary termination, the balance of the RSU Award, which has not
vested by the time of the Employee’s Termination of Employment, shall be forfeited by the Employee,
and ownership transferred back to the Company.

	 	 	 
	2.3

	 	Lapse of Restriction Period
	
 
	 	The Restriction Period shall lapse when the RSU Award is vested as set forth in this Agreement.
	2.4

	 	Change of Control; Good Reason

In the event of a Change of Control or a termination of Employee’s employment for Good Reason
(as defined in any employment agreement or related agreement with the Company), the restrictions in
this Agreement will lapse and be removed, and the RSU Award granted to Employee pursuant to this
Agreement will vest as of the date of such Change in Control or termination for Good Reason.

2.5 Death; Disability

If Employee’s employment with the Company or its Subsidiaries terminates by reason of
Employee’s death or Disability (as defined in any employment agreement or related agreement with
the Company, or in the absence of such agreement in the Plan) the restrictions imposed upon the RSU
Award granted to Employee pursuant to this Agreement will lapse and be removed, and the RSU Award
will vest as of the last date of Employee’s employment.

2.6 Retirement

RSU Awards, granted to employees participating in the Senior Executive or the Executive
Leadership Compensation Plans (annual bonus plans), who (i) retire under the Company’s retirement
plan, (ii) have worked for the Company for ten (10) or more years, and (iii) have a combination of
age and service with the Company of seventy five (75) or more, will vest as of the date of
Termination of Employment, provided that the Company has achieved the ROTC performance test
(described in Section 2.2 (b)) herein in at least 3 of the last 5 years before the year of
retirement.

2.7 Adjustments in RSU Award

In the event that the outstanding shares of the Common Stock are changed into or exchanged for
a different number or kind of shares of the Company or other securities of the Company by reason of
merger, consolidation, recapitalization, reclassification, stock split-up, stock dividend, or
combination of shares, the Committee or the Company shall make an appropriate and equitable
adjustment in the number and kind of the RSU Award granted hereunder. Such adjustment shall be
made with the intent that after the change or exchange of shares, the Employee’s proportionate
interest shall be maintained as before the occurrence of such event.

ARTICLE III – ISSUANCE OF COMMON STOCK; SHAREHOLDER RIGHTS

3.1 Conditions to and Issuance of Common Stock

The shares of Common Stock deliverable for the RSU Award, or any part thereof, may be either
previously authorized but unissued shares or issued shares that have then been reacquired by the
Company. Such shares shall be fully paid and nonassessable. The Company’s obligation to issue or
deliver any certificate or certificates for shares of stock shall be subject to satisfaction of all
of the following conditions:

(a) The admission of such shares to listing on all stock exchanges on which such class of
stock is then listed;

(b) The completion of any registration or other qualification of such shares under any state
or federal law, or under rulings or regulations of the Securities and Exchange Commission or any
other governmental regulatory body which the Committee or the Company shall, in its absolute
discretion, deem necessary or advisable;

(c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Committee or the Company shall, in its absolute discretion, determine to be
necessary or advisable;

(d) The receipt by the Company of full payment for all related taxes. The Employee shall be
liable for any and all taxes, including withholding taxes, arising out of this RSU Award or the
vesting of the RSU Award hereunder. The Employee may elect to satisfy such withholding tax
obligation by having the Company retain RSUs having a fair market value equal to the Company’s
minimum withholding obligations.

Subject to Section 4.5 below, the Company shall issue to the Employee the number of shares of
Common Stock represented by the number of vested RSU as soon as practical following the vesting of
same, but in no event later than two and one-half (2-1/2) months after the calendar year in which
the RSU vests, provided, however, that if one or more of the conditions set forth in subsections
(a) through (d) of this Section 3.1 have not been satisfied after such two and one-half month
period and the Committee or the Company determines that further delay would not result in the RSU’s
constituting “nonqualified deferred compensation” within the meaning of Section 409A of the
Internal Revenue Code of 1986, as amended (“Section 409A”), then such distribution may be further
delayed until the satisfaction of such condition or conditions, only for so long as such delay
continues not to result in the RSU’s constituting “nonqualified deferred compensation” in the
determination of the Committee or the Company. Such issuance of shares of Common Stock constitutes
payment of the vested RSU and shall satisfy the Company’s obligations under this Agreement.

3.2 Shareholder Rights

During the Restriction Period, the Employee shall not have the rights of a shareholder with
respect to the RSU Award granted hereunder except for the right to Dividend Equivalents on the
RSUs, provided, however, that dividends paid, if any, with respect to RSUs that have not vested at
the time of the dividend payment, shall be reflected in the books and records of the Company (or
its designee), and shall be subject to the same restrictions that apply to the corresponding RSUs.

ARTICLE IV – MISCELLANEOUS

4.1 Agreement Subject to Plan

The Agreement is subject to the terms of the Plan, and in the event of any conflict between
this Agreement and the Plan, the Plan shall control.

	 	 	 
	4.2

	 	Administration
	
 
	 	The Committee or the Company shall have the power to interpret the

Plan and this Agreement and to adopt such procedures for the

administration, interpretation and application of the Plan as are

consistent therewith and to interpret or revoke any such procedures.

Nothing in this Agreement or the Plan shall be construed to create or

imply any contract or right of continued employment between the Employee

and the Company (or any of its Subsidiaries).
	4.3

	 	Notices

Any notice to be given under the terms of this Agreement to the Company shall be addressed to
the Company in care of its Secretary and any notice to be given to the Employee shall be addressed
to him at the address given beneath his signature hereto. By a notice given pursuant to this
Section, either party may hereafter designate a different address for notices to be given to him.
Any notice that is required to be given to Employee shall, if Employee is then deceased, be given
to Employee’s Beneficiary or personal representative if such individual has previously informed the
Company of his status and address by written notice under this Section.

4.4 Titles

Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

4.5 Code Section 409A

The RSUs and DEs are not intended to constitute “nonqualified deferred compensation” within
the meaning of Section 409A and this Agreement shall be interpreted accordingly. However, if at
any time the Committee determines that the RSUs or DEs may be subject to Section 409A, the
Committee or the Company shall have the right, in its sole discretion, to amend this Agreement as
it may determine is necessary or desirable either for the RSUs and/or and DEs to be exempt from the
application of Section 409A or to satisfy the requirements of Section 409A. In order to comply
with the requirements of Section 409A, the Committee or the Company may in its sole discretion
delay the issuance and delivery of Common Stock to the Employee (as described in Section 3.1 (e)
herein), if the Employee is a “key employee” (as defined in Section 409A or in associated
regulations), for a period of six (6) months from the date of separation from service (for example,
in the event of a termination of employment for Good Reason or Retirement (as defined in the Plan
and referred to in Section 2.6 herein)).

4.6 Construction

This Agreement and the Plan and all actions taken thereunder shall be governed by and
construed in accordance with the laws of the State of Delaware, without reference to principles of
conflict of laws.

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.

Employee Avery Dennison Corporation

	 	 	 	 	 
	____ *
—
	 	By: *
	Address*:
	 	 	—	 
	________
	 	President and Chief Executive Officer
	____________________________
	 	By: *
	____________________________________
	 	 	—	 
	____________________________________
	 	Secretary

* Refer to attached Award Notice.

AVERY DENNISON CORPORATION

RESTRICTED STOCK UNIT AGREEMENT

THIS AGREEMENT, dated * , is made by and between Avery Dennison Corporation, a Delaware
corporation, hereinafter referred to as the “Company,” and * , an employee of
Company or a Subsidiary of Company, hereinafter referred to as “Employee.”

WHEREAS, Company wishes to grant to Employee an Award of restricted stock units (“RSUs”) with
Dividend Equivalents (“Des”) under the terms of the Employee Stock Option and Incentive Plan, as
amended and restated (“Plan); and

WHEREAS, the Compensation and Executive Personnel Committee of the Company’s Board of Directors
(hereinafter referred to as the “Committee”), appointed to administer the Plan, has determined that
it would be to the advantage and best interest of Company and its shareholders to grant the RSUs
with Des (the “RSU Award”) provided for herein to Employee as an inducement to remain in the
service of Company or its Subsidiaries and as an incentive for increased efforts during such
service;

WHEREAS, the Committee has advised the Company of its determination and instructed the undersigned
officers to issue said RSU Award, as authorized under the Plan;

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, the receipt of which is hereby acknowledged, Company and Employee do hereby
agree as follows:

ARTICLE I – DEFINITIONS

Terms not defined herein shall have the meaning given in the Plan. Whenever the following
terms are used in this Agreement they shall have the meaning specified below unless the context
clearly indicates to the contrary.

1.1 Pronouns

The masculine pronoun shall include the feminine and neuter, and the singular and plural,
where the context so indicates.

	1.2	 	Dividend Equivalents

Whenever dividends are paid or distributions made with respect to the Common Stock, Employee
shall be entitled to dividend equivalents (“Dividend Equivalents”) (in an amount equal in value to
the amount of the dividend paid or property distributed on a single share of Common Stock
multiplied by the number of Restricted Stock Units in Employee’s RSU account), which Dividend
Equivalents shall be credited as additional Restricted Stock Units (calculated by dividing the
Dividend Equivalent by the price of a single share of Company Stock and including any fractional
share) to the Employee’s RSU account as of the record date for such dividend or distribution.

ARTICLE II – TERMS OF AWARD

2.1 RSU Award

In consideration of Employee’s agreement to remain in the employment of Company or its
Subsidiaries during the Restriction Period (defined below) and for other good and valuable
consideration, on the date hereof the Company grants to Employee a RSU Award representing *
shares of the Company’s Common Stock, subject to the terms and conditions set forth in this
Agreement and the Plan. Each RSU shall represent one hypothetical share of Common Stock of the
Company. The RSU Award granted hereunder shall be held in the books and records of the Company (or
its designee) for the Employee’s RSU account. The RSU Award shall be subject to the restrictions
described herein and shall vest as set forth in this Agreement.

2.2 Restriction Period

(a) No portion of the RSU Award granted hereunder may be sold, transferred, assigned, pledged
or otherwise encumbered or disposed of by the Employee until the RSU Award becomes vested. The
period of time between the date hereof and the date the RSU Award becomes vested (at which time
Employee must be employed by the Company, except as provided in Section 2.4) is referred to herein
as the “Restriction Period.” At the time the RSU Award vests, the RSUs and the DEs vest.
Notwithstanding any other provision, the RSUs and DEs must be vested before the Company is
obligated to issue the shares of Common Stock as described in Section 3.1.

(b) After three fiscal years following the date the RSU Award was granted, the RSU Award will
vest on the date of the Committee’s certification (as described below), provided that the Company’s
return on total capital (“ROTC”) as reported in the annual report to shareholders (or other report)
for the most recently completed fiscal year equals or exceeds the sixty-seventh (67%) percentile of
the return on total capital for the peer group companies (as listed in the Company’s proxy
statement) for such third fiscal year (the “performance test”). (For example, the initial
performance test for vesting for the RSU Award granted in December 2006 will be based on the return
on total capital for 2009.)

To facilitate the peer group performance comparison needed to determine whether the RSU Award
vests, the figures for peer group companies return on total capital will be based upon the
twelve-month performance for each company in the peer group closest to the Company’s fiscal year
end, using the most recent publicly available financial information for such companies.

If the Company meets the performance test described above, all prior non-vested RSU Awards
eligible for vesting will vest on the date of the Committee’s certification that the Company has
met the performance test.

If the Company fails to meet the initial performance test described above, all prior
non-vested RSU Awards eligible for vesting will be subject to the same performance test following
the end of the next two fiscal years. If the Company fails to meet the performance test by the end
of the fifth fiscal year following the date of the grant, then the RSU Award will be forfeited.

(c) Subject to the provisions of this Agreement, if the Employee’s employment with the Company
is terminated for Cause or voluntary termination, the balance of the RSU Award, which has not
vested by the time of the Employee’s Termination of Employment, shall be forfeited by the Employee,
and ownership transferred back to the Company.

	 	 	 
	2.3

	 	Lapse of Restriction Period
	
 
	 	The Restriction Period shall lapse when the RSU Award is vested as set forth in this Agreement.
	2.4

	 	Change of Control; Good Reason

In the event of a Change of Control or a termination of Employee’s employment for Good Reason
(as defined in any employment agreement or related agreement with the Company), the restrictions in
this Agreement will lapse and be removed, and the RSU Award granted to Employee pursuant to this
Agreement will vest as of the date of such Change in Control or termination for Good Reason.

	2.5	 	Death; Disability

If Employee’s employment with the Company or its Subsidiaries terminates by reason of
Employee’s death or Disability (as defined in any employment agreement or related agreement with
the Company, or in the absence of such agreement in the Plan) the restrictions imposed upon the RSU
Award granted to Employee pursuant to this Agreement will lapse and be removed, and the RSU Award
will vest as of the last date of Employee’s employment.

	2.6	 	Retirement

RSU Awards, granted to employees participating in the Senior Executive or the Executive
Leadership Compensation Plans (annual bonus plans), who (i) retire under the Company’s retirement
plan, (ii) have worked for the Company for ten (10) or more years, and (iii) have a combination of
age and service with the Company of seventy five (75) or more, will vest as of the date of
Termination of Employment, provided that the Company has achieved the ROTC performance test
(described in Section 2.2 (b)) herein in at least 3 of the last 5 years before the year of
retirement.

2.7 Adjustments in RSU Award

In the event that the outstanding shares of the Common Stock are changed into or exchanged for
a different number or kind of shares of the Company or other securities of the Company by reason of
merger, consolidation, recapitalization, reclassification, stock split-up, stock dividend, or
combination of shares, the Committee or the Company shall make an appropriate and equitable
adjustment in the number and kind of the RSU Award granted hereunder. Such adjustment shall be
made with the intent that after the change or exchange of shares, the Employee’s proportionate
interest shall be maintained as before the occurrence of such event.

ARTICLE III – ISSUANCE OF COMMON STOCK; SHAREHOLDER RIGHTS

3.1 Conditions to and Issuance of Common Stock

The shares of Common Stock deliverable for the RSU Award, or any part thereof, may be either
previously authorized but unissued shares or issued shares that have then been reacquired by the
Company. Such shares shall be fully paid and nonassessable. The Company’s obligation to issue or
deliver any certificate or certificates for shares of stock shall be subject to satisfaction of all
of the following conditions:

(a) The admission of such shares to listing on all stock exchanges on which such class of
stock is then listed;

(b) The completion of any registration or other qualification of such shares under any state
or federal law, or under rulings or regulations of the Securities and Exchange Commission or any
other governmental regulatory body which the Committee or the Company shall, in its absolute
discretion, deem necessary or advisable;

(c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Committee or the Company shall, in its absolute discretion, determine to be
necessary or advisable;

(d) The receipt by the Company of full payment for all related taxes. The Employee shall be
liable for any and all taxes, including withholding taxes, arising out of this RSU Award or the
vesting of the RSU Award hereunder. The Employee may elect to satisfy such withholding tax
obligation by having the Company retain RSUs having a fair market value equal to the Company’s
minimum withholding obligations.

Subject to Section 4.5 below, the Company shall issue to the Employee the number of shares of
Common Stock represented by the number of vested RSUs as soon as practical following the vesting of
same, but in no event later than two and one-half (2-1/2) months after the calendar year in which
the RSUs vests, provided, however, that if one or more of the conditions set forth in subsections
(a) through (d) of this Section 3.1 have not been satisfied after such two and one-half month
period and the Committee or the Company determines that further delay would not result in the RSU’s
constituting “nonqualified deferred compensation” within the meaning of Section 409A of the
Internal Revenue Code of 1986, as amended (“Section 409A”), then such distribution may be further
delayed until the satisfaction of such condition or conditions, only for so long as such delay
continues not to result in the RSU’s constituting “nonqualified deferred compensation” in the
determination of the Committee or the Company. Such issuance of shares of Common Stock constitutes
payment of the vested RSUs and shall satisfy the Company’s obligations under this Agreement.

3.2 Shareholder Rights

During the Restriction Period, the Employee shall not have the rights of a shareholder with
respect to the RSU Award granted hereunder except for the right to Dividend Equivalents on the
RSUs, provided, however, that dividends paid, if any, with respect to RSUs that have not vested at
the time of the dividend payment, shall be reflected in the books and records of the Company (or
its designee), and shall be subject to the same restrictions that apply to the corresponding RSUs.

ARTICLE IV – MISCELLANEOUS

4.1 Agreement Subject to Plan

The Agreement is subject to the terms of the Plan, and in the event of any conflict between
this Agreement and the Plan, the Plan shall control.

4.2 Administration

The Committee or the Company shall have the power to interpret the Plan and this Agreement and
to adopt such procedures for the administration, interpretation and application of the Plan as are
consistent therewith and to interpret or revoke any such procedures. Nothing in this Agreement or
the Plan shall be construed to create or imply any contract or right of continued employment
between the Employee and the Company (or any of its Subsidiaries).

4.3 Notices

Any notice to be given under the terms of this Agreement to the Company shall be addressed to
the Company in care of its Secretary and any notice to be given to the Employee shall be addressed
to him at the address given beneath his signature hereto. By a notice given pursuant to this
Section, either party may hereafter designate a different address for notices to be given to him.
Any notice that is required to be given to Employee shall, if Employee is then deceased, be given
to Employee’s Beneficiary or personal representative if such individual has previously informed the
Company of his status and address by written notice under this Section.

4.4 Titles

Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

4.5 Code Section 409A

The RSUs and DEs are not intended to constitute “nonqualified deferred compensation” within
the meaning of Section 409A and this Agreement shall be interpreted accordingly. However, if at
any time the Committee determines that the RSUs or DEs may be subject to Section 409A, the
Committee or the Company shall have the right, in its sole discretion, to amend this Agreement as
it may determine is necessary or desirable either for the RSUs and/or and DEs to be exempt from the
application of Section 409A or to satisfy the requirements of Section 409A. In order to comply
with the requirements of Section 409A, the Committee or the Company may in its sole discretion
delay the issuance and delivery of Common Stock to the Employee (as described in Section 3.1 (e)
herein), if the Employee is a “key employee” (as defined in Section 409A or in associated
regulations), for a period of six (6) months from the date of separation from service (for example,
in the event of a termination of employment for Good Reason or Retirement (as defined in the Plan
and referred to in Section 2.6 herein)).

4.6 Construction

This Agreement and the Plan and all actions taken thereunder shall be governed by and
construed in accordance with the laws of the State of Delaware, without reference to principles of
conflict of laws.

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.

Employee Avery Dennison Corporation

	 	 	 
	     *

	 	By: *
	 

	 	 
	Address*:

     

     

     

	 	President and Chief Executive Officer

By: *

—

Secretary

• Refer to attached Award Notice.

AVERY DENNISON CORPORATION

RESTRICTED STOCK UNIT AGREEMENT

THIS AGREEMENT, dated * , is made by and between Avery Dennison Corporation, a Delaware
corporation, hereinafter referred to as the “Company,” and * , an employee of
Company or a Subsidiary of Company, hereinafter referred to as “Employee.”

WHEREAS, Company wishes to grant to Employee an Award of restricted stock units (“RSUs”) with
Dividend Equivalents (“DEs”) under the terms of the Employee Stock Option and Incentive Plan, as
amended and restated (“Plan); and

WHEREAS, the Compensation and Executive Personnel Committee of the Company’s Board of Directors
(hereinafter referred to as the “Committee”), appointed to administer the Plan, has determined that
it would be to the advantage and best interest of Company and its shareholders to grant the RSUs
with DEs (the “RSU Award”) provided for herein to Employee as an inducement to remain in the
service of Company or its Subsidiaries and as an incentive for increased efforts during such
service;

WHEREAS, the Committee has advised the Company of its determination and instructed the undersigned
officers to issue said RSU Award, as authorized under the Plan;

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, the receipt of which is hereby acknowledged, Company and Employee do hereby
agree as follows:

ARTICLE I – DEFINITIONS

Terms not defined herein shall have the meaning given in the Plan. Whenever the following
terms are used in this Agreement they shall have the meaning specified below unless the context
clearly indicates to the contrary.

1.1 Pronouns

The masculine pronoun shall include the feminine and neuter, and the singular and plural,
where the context so indicates.

1.2 Dividend Equivalents

Whenever dividends are paid or distributions made with respect to the Common Stock, Employee
shall be entitled to dividend equivalents (“Dividend Equivalents”) (in an amount equal in value to
the amount of the dividend paid or property distributed on a single share of Common Stock
multiplied by the number of Restricted Stock Units in Employee’s RSU account), which Dividend
Equivalents shall be credited as additional Restricted Stock Units (calculated by dividing the
Dividend Equivalent by the price of a single share of Company Stock and, including any fractional
share) to the Employee’s RSU account as of the record date for such dividend or distribution.

ARTICLE II — TERMS OF AWARD

2.1 RSU Award

In consideration of Employee’s agreement to remain in the employment of Company or its
Subsidiaries during the Restriction Period (defined below) and for other good and valuable
consideration, on the date hereof the Company grants to Employee a RSU Award representing
*            shares of the Company’s Common Stock, subject to the terms and conditions set
forth in this Agreement and the Plan. Each RSU shall represent one hypothetical share of Common
Stock of the Company. The RSU Award granted hereunder shall be held in [book-entry form in the
books and records] of the Company (or its designee) for the Employee’s RSU account. The RSU Award
shall be subject to the restrictions described herein and shall vest as set forth in the Award
Notice or as set forth in this Agreement.

2.2 Restriction Period

(a) No portion of the RSU Award granted hereunder may be sold, transferred, assigned, pledged
or otherwise encumbered or disposed of by the Employee until the RSU Award becomes vested. The
period of time between the date hereof and the date the RSU Award becomes vested is referred to
herein as the “Restriction Period.” At the time the RSU Award vests, the RSUs and the DEs vest.

(b) Subject to the provisions of this Agreement, if the Employee’s employment with the Company
is terminated for Cause or voluntary termination, the balance of the RSU Award, which has not
vested by the time of the Employee’s Termination of Employment, shall be forfeited by the Employee,
and ownership transferred back to the Company.

2.3 Lapse of Restriction Period

The Restriction Period shall lapse when the RSU Award is vested as set forth in the Award
Notice ( * years from the date of this Agreement) or as otherwise set forth in this Agreement.

2.4 Change of Control; Good Reason

In the event of a Change of Control or a termination of Employee’s employment for Good Reason
(as defined in any employment agreement or related agreement with the Company), the restrictions in
this Agreement will lapse and be removed, and the RSU Award granted to Employee pursuant to this
Agreement will vest as of the date of such Change in Control or termination for Good Reason.

2.5 Death; Disability

If Employee’s employment with the Company or its Subsidiaries terminates by reason of
Employee’s death or Disability (as defined in any employment agreement or related agreement with
the Company, or in the absence of such agreement in the Plan) the restrictions imposed upon the RSU
Award granted to Employee pursuant to this Agreement will lapse and be removed, and the RSU Award
will vest as of the last date of Employee’s employment.

2.6 Retirement

RSU Awards, granted to employees participating in the Senior Executive or the Executive
Leadership Compensation Plans (annual bonus plans), who (i) retire under the Company’s retirement
plan, (ii) have worked for the Company for ten (10) or more years, and (iii) have a combination of
age and service with the Company of seventy five (75) or more, will vest as of the date of
Termination of Employment.

2.7 Adjustments in RSU Award

In the event that the outstanding shares of the Common Stock are changed into or exchanged for
a different number or kind of shares of the Company or other securities of the Company by reason of
merger, consolidation, recapitalization, reclassification, stock split-up, stock dividend, or
combination of shares, the Committee or the Company shall make an appropriate and equitable
adjustment in the number and kind of the RSU Award granted hereunder. Such adjustment shall be
made with the intent that after the change or exchange of shares, the Employee’s proportionate
interest shall be maintained as before the occurrence of such event.

ARTICLE III – RSU CERTIFICATES; SHAREHOLDER RIGHTS

3.1 Conditions to and Issuance of Common Stock

The shares of Common Stock deliverable for the RSU Award, or any part thereof, may be either
previously authorized but unissued shares or issued shares that have then been reacquired by the
Company. Such shares shall be fully paid and nonassessable. The Company’s obligation to issue or
deliver any certificate or certificates for shares of stock shall be subject to satisfaction of all
of the following conditions:

(a) The admission of such shares to listing on all stock exchanges on which such class of
stock is then listed;

(b) The completion of any registration or other qualification of such shares under any state
or federal law, or under rulings or regulations of the Securities and Exchange Commission or any
other governmental regulatory body which the Committee or the Company shall, in its absolute
discretion, deem necessary or advisable;

(c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Committee or the Company shall, in its absolute discretion, determine to be
necessary or advisable;

(d) The receipt by the Company of full payment for all related taxes. The Employee shall be
liable for any and all taxes, including withholding taxes, arising out of this RSU Award or the
vesting of the RSU Award hereunder. The Employee may elect to satisfy such withholding tax
obligation by having the Company retain RSUs having a fair market value equal to the Company’s
minimum withholding obligations.

Subject to Section 4.5 below, the Company shall issue to the Employee the number of shares of
Common Stock represented by the number of vested RSUs on the first day of the seventh
(7th) calendar month beginning after the month in which the RSUs vest, except that in
the case of Retirement under Section 2.6, the RSUs shall be paid on the first day of the seventh
(7th) calendar month beginning after the Employee’s Termination of Employment. Such issuance of
shares of Common Stock constitutes payment of the vested RSU and shall satisfy the Company’s
obligations under this Agreement.

3.2 Shareholder Rights

During the Restriction Period, the Employee shall not have the rights of a shareholder with
respect to the RSU Award granted hereunder except for the right to Dividend Equivalents on the RSU,
provided, however, that dividends paid, if any, with respect to RSUs that have not vested at the
time of the dividend payment, shall be reflected in the books and records of the Company (or its
designee), and shall be subject to the same restrictions that apply to the corresponding RSUs.

ARTICLE IV – MISCELLANEOUS

4.1 Agreement Subject to Plan

The Agreement is subject to the terms of the Plan, and in the event of any conflict between
this Agreement and the Plan, the Plan shall control.

4.2 Administration

The Committee or the Company shall have the power to interpret the Plan and this Agreement and
to adopt such procedures for the administration, interpretation and application of the Plan as are
consistent therewith and to interpret or revoke any such procedures. Nothing in this Agreement or
the Plan shall be construed to create or imply any contract or right of continued employment
between the Employee and the Company (or any of its Subsidiaries).

4.3 Notices

Any notice to be given under the terms of this Agreement to the Company shall be addressed to
the Company in care of its Secretary and any notice to be given to the Employee shall be addressed
to him at the address given beneath his signature hereto. By a notice given pursuant to this
Section, either party may hereafter designate a different address for notices to be given to him.
Any notice that is required to be given to Employee shall, if Employee is then deceased, be given
to Employee’s Beneficiary or personal representative if such individual has previously informed the
Company of his status and address by written notice under this Section.

4.4 Titles

Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

4.5 Code Section 409A

The RSUs are intended to comply in all respects with Section 409A of the Internal Revenue Code
of 1986, as amended (“Section 409A”) and this Agreement shall be interpreted accordingly. However,
if at any time the Committee determines that the RSUs may not comply with all requirements of
Section 409A, the Committee shall have the right, in its sole discretion, to amend this Agreement
as it may determine is necessary or desirable for the RSUs to satisfy the requirements of Section
409A.

4.6 Construction

This Agreement and the Plan and all actions taken thereunder shall be governed by and
construed in accordance with the laws of the State of Delaware, without reference to principles of
conflict of laws.

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.

Employee Avery Dennison Corporation

	 	 	 
	*     

     

     

	 	

By: *
	 

	 	 
	Address*:

     

     

     

	 	President and Chief Executive Officer

By: *

—

Secretary

• Refer to attached Award Notice.

AVERY DENNISON CORPORATION

RESTRICTED STOCK UNIT AGREEMENT

THIS AGREEMENT, dated * , is made by and between Avery Dennison Corporation, a Delaware
corporation, hereinafter referred to as the “Company,” and * , an employee of
Company or a Subsidiary of Company, hereinafter referred to as “Employee.”

WHEREAS, Company wishes to grant to Employee an Award of restricted stock units (“RSUs”) with
Dividend Equivalents (“DEs”) under the terms of the Employee Stock Option and Incentive Plan, as
amended and restated (“Plan); and

WHEREAS, the Compensation and Executive Personnel Committee of the Company’s Board of Directors
(hereinafter referred to as the “Committee”), appointed to administer the Plan, has determined that
it would be to the advantage and best interest of Company and its shareholders to grant the RSUs
with DEs (the “RSU Award”) provided for herein to Employee as an inducement to remain in the
service of Company or its Subsidiaries and as an incentive for increased efforts during such
service;

WHEREAS, the Committee has advised the Company of its determination and instructed the undersigned
officers to issue said RSU Award, as authorized under the Plan;

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, the receipt of which is hereby acknowledged, Company and Employee do hereby
agree as follows:

ARTICLE I – DEFINITIONS

Terms not defined herein shall have the meaning given in the Plan. Whenever the following
terms are used in this Agreement they shall have the meaning specified below unless the context
clearly indicates to the contrary.

1.1 Pronouns

The masculine pronoun shall include the feminine and neuter, and the singular and plural,
where the context so indicates.

	1.2	 	Dividend Equivalents

Whenever dividends are paid or distributions made with respect to the Common Stock, Employee
shall be entitled to dividend equivalents (“Dividend Equivalents”) (in an amount equal in value to
the amount of the dividend paid or property distributed on a single share of Common Stock
multiplied by the number of Restricted Stock Units in Employee’s RSU account), which Dividend
Equivalents shall be credited as additional Restricted Stock Units (calculated by dividing the
Dividend Equivalent by the price of a single share of Company Stock and including any fractional
share) to the Employee’s RSU account as of the record date for such dividend or distribution.

ARTICLE II — TERMS OF AWARD

2.1 RSU Award

In consideration of Employee’s agreement to remain in the employment of Company or its
Subsidiaries during the Restriction Period (defined below) and for other good and valuable
consideration, on the date hereof the Company grants to Employee a RSU Award representing
*            shares of the Company’s Common Stock, subject to the terms and conditions set
forth in this Agreement and the Plan. Each RSU shall represent one hypothetical share of Common
Stock of the Company. The RSU Award granted hereunder shall be held in [book-entry form in the
books and records] of the Company (or its designee) for the Employee’s RSU account. The RSU Award
shall be subject to the restrictions described herein and shall vest as set forth in the Award
Notice or as set forth in this Agreement.

2.2 Restriction Period

(a) No portion of the RSU Award granted hereunder may be sold, transferred, assigned, pledged
or otherwise encumbered or disposed of by the Employee until the RSU Award becomes vested. The
period of time between the date hereof and the date the RSU Award becomes vested (at which time
Employee must be employed by the Company, except as provided in Section 2.4) is referred to herein
as the “Restriction Period.” At the time the RSU Award vests, the RSUs and the DEs vest.
Notwithstanding any other provision, the RSUs and DEs must be vested before the Company is
obligated to issue the shares of Common Stock as described in Section 3.1.

(b) Subject to the provisions of this Agreement, if the Employee’s employment with the Company
is terminated for Cause or voluntary termination, the balance of the RSU Award, which has not
vested by the time of the Employee’s Termination of Employment, shall be forfeited by the Employee,
and ownership transferred back to the Company.

2.3 Lapse of Restriction Period

The Restriction Period shall lapse when the RSU Award is vested as set forth in the Award
Notice ( * years from the date of this Agreement) or as otherwise set forth in this Agreement.

2.4 Change of Control; Good Reason

In the event of a Change of Control or a termination of Employee’s employment for Good Reason
(as defined in any employment agreement or related agreement with the Company), the restrictions in
this Agreement will lapse and be removed, and the RSU Award granted to Employee pursuant to this
Agreement will vest as of the date of such Change in Control or termination for Good Reason.

2.5 Death; Disability

If Employee’s employment with the Company or its Subsidiaries terminates by reason of
Employee’s death or Disability (as defined in any employment agreement or related agreement with
the Company, or in the absence of such agreement in the Plan) the restrictions imposed upon the RSU
Award granted to Employee pursuant to this Agreement will lapse and be removed, and the RSU Award
will vest as of the last date of Employee’s employment.

2.6 Retirement

RSU Awards, granted to employees participating in the Senior Executive or the Executive
Leadership Compensation Plans (annual bonus plans), who (i) retire under the Company’s retirement
plan, (ii) have worked for the Company for ten (10) or more years, and (iii) have a combination of
age and service with the Company of seventy five (75) or more, will vest as of the date of
Termination of Employment.

2.7 Adjustments in RSU Award

In the event that the outstanding shares of the Common Stock are changed into or exchanged for
a different number or kind of shares of the Company or other securities of the Company by reason of
merger, consolidation, recapitalization, reclassification, stock split-up, stock dividend, or
combination of shares, the Committee or the Company shall make an appropriate and equitable
adjustment in the number and kind of the RSU Award granted hereunder. Such adjustment shall be
made with the intent that after the change or exchange of shares, the Employee’s proportionate
interest shall be maintained as before the occurrence of such event.

ARTICLE III – RSU CERTIFICATES; SHAREHOLDER RIGHTS

3.1 Conditions to and Issuance of Common Stock

The shares of Common Stock deliverable for the RSU Award, or any part thereof, may be either
previously authorized but unissued shares or issued shares that have then been reacquired by the
Company. Such shares shall be fully paid and nonassessable. The Company’s obligation to issue or
deliver any certificate or certificates for shares of stock shall be subject to satisfaction of all
of the following conditions:

(a) The admission of such shares to listing on all stock exchanges on which such class of
stock is then listed;

(b) The completion of any registration or other qualification of such shares under any state
or federal law, or under rulings or regulations of the Securities and Exchange Commission or any
other governmental regulatory body which the Committee or the Company shall, in its absolute
discretion, deem necessary or advisable;

(c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Committee or the Company shall, in its absolute discretion, determine to be
necessary or advisable;

(d) The receipt by the Company of full payment for all related taxes. The Employee shall be
liable for any and all taxes, including withholding taxes, arising out of this RSU Award or the
vesting of the RSU Award hereunder. The Employee may elect to satisfy such withholding tax
obligation by having the Company retain RSUs having a fair market value equal to the Company’s
minimum withholding obligations.

Subject to Section 4.5 below, the Company shall issue to the Employee the number of shares of
Common Stock represented by the number of vested RSUs on the first day of the seventh
(7th) calendar month beginning after the month in which the RSUs vest except that in the
case of Retirement under Section 2.6, the RSUs shall be paid on the first day of the seventh (7th)
calendar month beginning after the Employee’s Termination of Employment. Such issuance of shares
of Common Stock constitutes payment of the vested RSUs and shall satisfy the Company’s obligations
under this Agreement.

3.2 Shareholder Rights

During the Restriction Period, the Employee shall not have the rights of a shareholder with
respect to the RSU Award granted hereunder except for the right to Dividend Equivalents on the RSU,
provided, however, that dividends paid, if any, with respect to RSUs that have not vested at the
time of the dividend payment, shall be reflected in the books and records of the Company (or its
designee), and shall be subject to the same restrictions that apply to the corresponding RSUs.

ARTICLE IV – MISCELLANEOUS

4.1 Agreement Subject to Plan

The Agreement is subject to the terms of the Plan, and in the event of any conflict between
this Agreement and the Plan, the Plan shall control.

4.2 Administration

The Committee or the Company shall have the power to interpret the Plan and this Agreement and
to adopt such procedures for the administration, interpretation and application of the Plan as are
consistent therewith and to interpret or revoke any such procedures. Nothing in this Agreement or
the Plan shall be construed to create or imply any contract or right of continued employment
between the Employee and the Company (or any of its Subsidiaries).

4.3 Notices

Any notice to be given under the terms of this Agreement to the Company shall be addressed to
the Company in care of its Secretary and any notice to be given to the Employee shall be addressed
to him at the address given beneath his signature hereto. By a notice given pursuant to this
Section, either party may hereafter designate a different address for notices to be given to him.
Any notice that is required to be given to Employee shall, if Employee is then deceased, be given
to Employee’s Beneficiary or personal representative if such individual has previously informed the
Company of his status and address by written notice under this Section.

4.4 Titles

Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

4.5 Code Section 409A

The RSUs are intended to comply in all respects with Section 409A of the Internal Revenue
Code of 1986, as amended (“Section 409A”) and this Agreement shall be interpreted accordingly.
However, if at any time the Committee determines that the RSUs may not comply with Section 409A,
the Committee shall have the right, in its sole discretion, to amend this Agreement as it may
determine is necessary or desirable for the RSUs to satisfy the requirements of Section 409A.

4.6 Construction

This Agreement and the Plan and all actions taken thereunder shall be governed by and
construed in accordance with the laws of the State of Delaware, without reference to principles of
conflict of laws.

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.

Employee Avery Dennison Corporation

	 	 	 
	*     

     

     

	 	

By: *
	 

	 	 
	Address*:

     

     

     

	 	President and Chief Executive Officer

By: *

—

Secretary

• Refer to attached Award Notice.

AVERY DENNISON CORPORATION

PERFORMANCE UNIT AGREEMENT

THIS AGREEMENT, dated * , is made by and between Avery Dennison Corporation, a Delaware
corporation, hereinafter referred to as the “Company,” and * , an employee of Company or a
Subsidiary of Company, hereinafter referred to as “Employee.”

WHEREAS, Company wishes to grant to Employee an Award of Performance Units (“PUs”) under the terms
of the Employee Stock Option and Incentive Plan, as amended and restated (“Plan); and

WHEREAS, the Compensation and Executive Personnel Committee of the Company’s Board of Directors
(hereinafter referred to as the “Committee”), appointed to administer the Plan, or the Company’s
Chief Executive Officer (“CEO”), has determined that it would be to the advantage and best interest
of Company and its shareholders to grant the PUs (the “PU Award”) to Employee as an inducement to
remain in the service of Company or its Subsidiaries and as an incentive for increased efforts
during such service;

WHEREAS, the Committee or the CEO has advised the Company of the PU Award and instructed that this
PU Award be issued;

NOW, THEREFORE, Company and Employee agree as follows:

ARTICLE I – DEFINITIONS

Terms not defined in this Agreement shall have the meaning given in the Plan.

ARTICLE II – TERMS OF AWARD

2.1 PU Award

As of the date of this Agreement, the Company grants to Employee a PU Award representing * a
right to receive shares of the Company’s Common Stock in the future, assuming that the Company’s
results at the end of the performance period produce 100% of the target performance, subject to the
terms and conditions set forth in this Agreement, the Award Notice and the Plan. Each PU Award
represents one hypothetical share of Common Stock of the Company at 100% target performance. The PU
Award shall be held on the books and records of the Company (or its designee) for the Employee’s PU
account but shall not represent an equity interest in the Company until such time as actual shares
shall be issued to the Employee. The PU Award shall be earned, vested and paid as set forth in
this Agreement.

2.2 Performance Period

(a) No portion of the PU Award may be sold, transferred, assigned, pledged or otherwise
encumbered by the Employee until the PU Award is earned and the shares are issued. Employee must
be employed by the Company from the date of this Agreement until the date that the PU Award is
earned and vested. The “Performance Period” shall be January 1, 2008 through December 31, 2010.
At the end of the Performance Period, , the specific number shares of Common Stock to be issued to
the Employee under the PU Award shall be determined based on the Company’s results during the
Performance Period, compared against the performance metrics (“Metrics”), approved by the Committee
(as modified by any adjustment items approved by the Committee), except as provided in Sections 2.3
through 2.5.

(b) Except as provided in Sections 2.3 through 2.5, the PU Award will be earned and vested on
the date of the Committee’s certification of results in 2011.

The three Metrics are: sales, cumulative economic value added, and relative total shareholder
return. For the peer group performance comparison needed to determine whether the portion of the
PU Award Metric related to total shareholder return (“TSR”) is earned, the TSR for the S&P 500
Industrials and Materials subsets will be used.

(c) Subject to the other provisions of this Agreement, if the Employee’s employment with the
Company is terminated, the PU Award, which has not been earned by the time of the Employee’s
Termination of Employment, shall be forfeited by the Employee.

2.3 Change of Control

In the event of a Change of Control, the PU Award granted to Employee pursuant to this
Agreement will be earned and vested at 100% target performance as of the date of such Change in
Control regardless of the Company’s actual performance.

2.4 Death; Disability

If Employee’s employment with the Company or its Subsidiaries terminates by reason of
Employee’s death or Disability (as defined in the Employee’s employment agreement or related
agreement with the Company, or in the absence of such agreement in the Plan) the PU Award will be
earned and vested based on a prorated time-based formula starting with the actual month of
service completed by the Employee during the Performance Period divided by the total months in the
original Performance Period (in this case 36) multiplied by the number of shares in the PU Award
assuming 100% target performance.

2.5 Retirement

PU Awards, granted to employees who retire under the Company’s pension plan, will be earned
and vested as of the date of termination based on a prorated time-based formula starting with the
actual month of service completed by the Employee during the Performance Period divided by the
total months in the original Performance Period (in this case 36) multiplied by the number of
shares in the PU Award assuming 100% target performance.

2.6 Adjustments in PU Award

In the event that the outstanding shares of the Common Stock are changed into or exchanged for
a different number or kind of shares of the Company or other securities of the Company by reason of
merger, consolidation, recapitalization, reclassification, stock split-up, stock dividend,
combination of shares, or other similar restructuring, the Committee or the Company shall make an
appropriate and equitable adjustment in the number and kind of shares represented by the PU Award
granted hereunder. Such adjustment shall be made with the intent that after the change or exchange
of shares, the Employee’s proportionate equity interest in the Company shall be maintained as it
was before the occurrence of such event.

ARTICLE III – ISSUANCE OF COMMON STOCK; SHAREHOLDER RIGHTS

3.1 Conditions to and Issuance of Common Stock

The shares of Common Stock deliverable for the PU Award, or any part thereof, may be either
previously authorized but unissued shares or issued shares that have then been reacquired by the
Company. Such shares shall be fully paid and nonassessable. The Company shall not be required to
issue or deliver any shares of stock for any PU Award prior to fulfillment of all of the following
conditions:

(a) The admission of such shares to listing on all stock exchanges on which such class of
stock is then listed;

(b) The completion of any registration or other qualification of such shares under any state
or federal law, or under rulings or regulations of the Securities and Exchange Commission or any
other governmental regulatory body which the Committee or the Company shall, in its absolute
discretion, deem necessary or advisable;

(c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Committee or the Company shall, in its absolute discretion, determine to be
necessary or advisable;

(d) The receipt by the Company of full payment or withholding for all related taxes. The
Employee shall be liable for any and all taxes, including withholding taxes, arising out of this PU
Award or the vesting of the PU Award hereunder. The Company or the Employee may elect to satisfy
such withholding tax obligation by having the Company retain PUs having a fair market value equal
to the Company’s minimum withholding obligations.

(e) Subject to Section 4.4 below, the Company shall issue via electronic transfer to the
Employee’s brokerage account the number of shares of Common Stock that are earned as determined
under Article II on the first day of the seventh (7th) calendar month beginning after
the month in which the PUs are earned and vested under the terms of this Agreement, except that in
the case of Retirement under Section 2.5, the PUs shall be paid on the first day of the seventh
(7th) calendar month beginning after the Employee’s Termination of Employment. Delivery
of these shares of Common Stock shall satisfy the Company’s obligations under this Agreement.

(f) The Employee shall establish an equity account with a broker designated by the Company
(currently Charles Schwab) so that the net shares from vested PUs (after withholding for applicable
taxes) may be electronically transferred to the Employee’s account.

3.2 Shareholder Rights

The Employee shall have no rights as a shareholder of the Company with respect to this PU
Award until shares are issued to the Employee and the Employee shall be no more than an unsecured
general creditor of the Company with no special or prior right to any assets of the Company for
payment of any obligations hereunder.

ARTICLE IV – MISCELLANEOUS

4.1 Agreement Subject to Plan

The Agreement is subject to the terms of the Plan, and in the event of any conflict between
this Agreement and the Plan, the Plan shall control.

4.2 Administration

The Committee or the Company shall have the power to interpret the Plan and this Agreement and
to adopt such procedures for the administration, interpretation and application of the Plan as are
consistent therewith and to interpret, modify or revoke any such procedures. Nothing in this
Agreement or the Plan shall be construed to create or imply any contract or right of continued
employment between the Employee and the Company (or any of its Subsidiaries).

4.3 Notices

Any notice to be given under the terms of this Agreement to the Company shall be addressed to
the Company in care of its Secretary and any notice to be given to the Employee shall be addressed
to him at the address given beneath his signature hereto. By a notice given pursuant to this
Section, either party may hereafter designate a different address for notices to be given. Any
notice that is required to be given to Employee shall, if Employee is then deceased, be given to
Employee’s Beneficiary or personal representative if such individual has previously informed the
Company of his status and address by written notice under this Section.

4.4 Code Section 409A

The PU Awards granted hereunder are intended to comply in all respects with Section 409A of
the Internal Revenue Code of 1986, as amended, (“Section 409A”) and this Agreement shall be
interpreted accordingly. However, if at any time the Committee or the Company determines that the
PUs may be subject to Section 409A, the Committee or the Company shall have the right, in its sole
discretion, to amend this Agreement as it may determine is necessary or desirable for the PUs to
satisfy the requirements of Section 409A.

4.5 Construction

This Agreement, the Award Notice and the Plan and all actions taken thereunder shall be
governed by and construed in accordance with the laws of the State of Delaware, without reference
to principles of conflict of laws. Titles are provided in this Agreement for convenience only and
shall not serve as a basis for interpretation or construction of this Agreement.

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties.

Employee Avery Dennison Corporation

	 	 	 
	*     

     

     

	 	

By: *
	 

	 	 
	Address*:

     

     

     

	 	President and Chief Executive Officer

By: *

—

Secretary

• Refer to attached Award Notice.

* Refer to attached Award NoticeEX-10.15.1

AVERY DENNISON CORPORATION

DIRECTOR EQUITY PLAN

Amended and Restated

	1.	 	Purpose; Eligibility

The Directors Equity Plan (formerly the 1988 Stock Option Plan for Non-Employee Directors), as
amended and restated, herein (the “Plan”) is effective as of January 1, 2008, and is intended to
attract and retain the services of experienced and knowledgeable non-employee directors of Avery
Dennison Corporation (the “Company”) for the benefit of the Company and its stockholders and to
provide additional incentive for such directors to continue to work for the best interests of the
Company and its stockholders. The individuals eligible to receive Awards (as defined below) under
the Plan shall be those individuals who are members of the Board of Directors of the Company (the
“Board”), who are not employees of the Company or any of its subsidiaries (each, a “Director”).

	2.	 	Stock Subject to the Plan

As of December 31, 2002, there were reserved for issuance upon the exercise of stock options
(“Options”) granted under the Plan 265,000 shares of Common Stock of the Company (the “Common
Stock”); as of December 31, 2002, there were 65,000 shares available for future Awards under the
Plan. As of the Effective Date, as defined in Paragraph 12 below, the aggregate number of shares
deliverable pursuant to Awards (as defined in Paragraph 4(a) below) under the Plan shall be
increased by 250,000 for a total of 515,000 shares. Shares of Common Stock issued under the Plan
may be authorized and unissued shares of Common Stock, previously outstanding shares of Common
Stock held as treasury shares, or treasury shares that have been transferred to and held in a
grantor trust of the Company. If any Option granted under the Plan shall expire or terminate for
any reason without having been exercised in full, the shares subject thereto shall again be
available for the purposes of issuance upon the exercise of Options granted under the Plan.

	3.	 	Administration

The Plan shall be administered by the Compensation and Executive Personnel Committee
(“Committee”) (or other committee of the Board as designated by the Board). Subject to the express
provisions of the Plan, the Board shall have authority to interpret the Plan, to prescribe, amend
and rescind rules and regulations relating to it, to determine the terms and provisions of Awards
(which shall comply with and be subject to the terms and conditions of the Plan) and to make all
other determinations necessary or advisable for the administration of the Plan; such determinations
of the matters referred to in this Paragraph 3 shall be conclusive.

	4.	 	Awards

(a) The following types of Awards may be made to Directors under the Plan: (i) Options
granted automatically pursuant to Paragraph 4(b); and (ii) Stock Units granted upon a Director’s
election as contemplated by Paragraph 4(c), and (iii) Stock Awards referred to in paragraph 4(d).

(b) During the term of the Plan, at every regular December meeting of the Board (or such other
Board meeting when annual grants of options are made to employees) each Director shall
automatically be granted an Option for 2,000 shares of Common Stock (subject to adjustment as
provided in Paragraph 8). Each individual who is newly elected as a Director shall also be
automatically granted an initial Option for 5,000 shares of Common Stock as of the date of his or
her election, subject to

adjustment as provided in Paragraph 8. An individual who is a member of the Board and an
employee of the Company or one of its subsidiaries and becomes a Director as a result of retiring
from such employment while remaining a member of the Board shall not receive an initial Option for
5,000 shares of Common Stock, but, to the extent he or she is otherwise eligible after becoming a
Director, shall receive annual Options pursuant to the first sentence of this Paragraph 4(b).
Directors who receive Options are sometimes referred to below as “Optionees.”

Each Option shall be evidenced by a written Stock Option Agreement (“Agreement”), which shall
be executed by the Optionee and an authorized officer of the Company and which shall contain such
other terms and conditions as the Board shall determine, consistent with the Plan.

Only non-qualified stock options (options, which do not qualify as “incentive stock options”
under Section 422A of the Internal Revenue Code of 1986, as amended (the “Code”)), shall be granted
under the Plan and such options shall comply in all respects to the requirements of Code Section
409A.

(c) The Company has established the Non-Employee Director Deferred Equity Compensation Program
(the “Deferred Equity Program”) under the Plan, pursuant to which Directors are permitted to elect
to receive, in lieu of cash meeting and retainer fees, “Stock Units” (each of which represents one
hypothetical share of Common Stock). The election to receive Stock Units in lieu of fees shall be
made in the calendar year prior to the year in which the associated services or performed, except
that the Company may allow a new Director to make an election within the first thirty days after
joining the Board to receive Stock Units in lieu of fees for services performed after the date of
such election. Stock Units granted pursuant to this Deferred Equity Program shall be paid to the
Director in the form of Common Stock within ninety (90) days of the Director’s “separation from
service” with the Company within the meaning of Code Section 409A. Whenever dividends are paid or
distributions made with respect to the Common Stock, the Director shall be entitled to dividend
equivalents in an amount equal in value to the amount of the dividend paid or property distributed
on a single share of Common Stock multiplied by the number of Stock Units credited to the
Director), which dividend equivalents shall be credited as additional Stock Units (calculated by
dividing the dividend equivalent by the price of a single share of Company Stock and including any
fractional share) to the Director’s account as of the last business day of each calendar quarter.
All Stock Units granted to any Directors under the Deferred Equity Program at any time on or after
the Effective Date, and all such additional shares, shall be settled with shares of Common Stock
issued pursuant to this Plan, subject to the limitation set forth in Paragraph 2 but in all events
within ninety (90) days after such Directors separation from service subject to compliance with all
requirements of Code Section 409A.

(d) The Board or Committee may also approve awards of stock or stock payments (“Stock Awards”)
to Directors as a portion of the directors’ compensation program, the payment of which Stock Awards
shall comply with all applicable requirements of Code Section 409A.

	5.	 	Additional Terms and Conditions of Options

(a) The per-share price (“Option Price”) to be paid for the Common Stock under each Option
shall be 100% of the Fair Market Value of a share of the Common Stock on the date such Option is
granted. Options granted may not be repriced. “Fair Market Value” of a share of Common Stock as
of a given date shall be (i) the mean between the highest and lowest selling price of a share of
Common Stock during normal business hours on the principal exchange on which shares of Common Stock
are then trading, if any, on such date, or if shares were not traded on such date, then the
weighted average of the means between the highest and lowest sales upon the nearest date before and
the nearest date after such valuation date; or (ii) if Common Stock is not traded on an exchange,
the mean between the closing representative bid and asked prices for the Common Stock during normal
business hours on such date as reported by NASDAQ or, if NASDAQ is not then in existence, by its
successor quotation system; or (iii) if Common Stock is not publicly traded, the Fair Market Value
of a share of Common Stock as established by the Board acting in good faith.

(b) Options shall become exercisable in installments of 50% of the number of shares initially
granted, commencing on the first anniversary of the grant date, such installments to be cumulative;
provided, however, that all Options held by a Director that are not yet exercisable on the date of
such director’s Retirement (as defined in Paragraph 5(d) below)at or after age seventy-two shall
become fully exercisable on that date. In no case may an Option be exercised as to fewer than 100
shares at anyone time (or the remaining shares covered by the Option if fewer than 100 during the
term of the Option). The term of each Option shall be ten (10) years from the date of grant
thereof, or such shorter period as is prescribed below in this Paragraph 5. Except as provided
below in this Paragraph 5, no Option may be exercised at any time when the Optionee is not a member
of the Board. In the event that an Option shall be exercised by any person or persons other than
the Optionee as permitted by Paragraph 7 below, appropriate proof of the right of such person or
persons to exercise the Option shall be provided to the Company.

(c) Any person exercising an Option or portion of an Option shall do so by delivering to the
Secretary or his office of all of the following:

(i) A written notice in a form supplied by the Secretary;

(ii) Full payment for the shares with respect to which the Option, or portion thereof,
is exercised in whole or in part by (A) cash; (B) certified or bank check or such other
instrument as the Company may accept; or (C) delivery (either by surrender of the shares or
by attestation) of shares unrestricted Common Stock already owned by the Optionee of the
same class as the Common Stock subject to the Stock Option (based on the Fair Market Value
of the Common Stock on the date the Stock Option is exercised); provided, however, that
such already-owned shares either were acquired by the Optionee in an open-market
transaction or have been held by the Optionee for at least six months at the time of
exercise; and

(iii) In the event that the Option shall be exercised by any person or persons other
than the Optionee, appropriate proof of the right of such person or persons to exercise the
Option.

(d) In the event that an Optionee shall cease to be a member of the Board, other than by
reason of retirement after age seventy-two (hereinafter “Retirement”) or death, he may exercise his
Options within three months after such termination, but not after the expiration of the Options, to
the extent of the number of shares exercisable by him at the date of termination of his membership
on the Board.

(e) In the event that an Optionee shall cease to be a member of the Board because of
Retirement, he may exercise his Options within sixty months after Retirement, but not after the
expiration of the Options, to the extent of the number of shares exercisable by him at the date of
Retirement.

(f) In the event of the death of an Optionee, any of his Options that were outstanding at the
time of his death that have not been previously terminated pursuant to the provisions of Paragraph
5(d) or 5(e) may be exercised at any time within twelve months of the date of the Optionee’s death,
but not after the expiration of the Option, to the extent of the number of shares exercisable by
the Optionee at the date of his death. Designation, revocation and redesignation of Beneficiaries
must be made by notice in writing in accordance with rules established by the Board or Committee
and shall be effective upon delivery of such notice to the Board.

(g) Nothing in the Plan or in any Option granted pursuant to the Plan shall confer on any
individual any right to continue as a member of the Board or interfere in any way with the right of
the Company to terminate his membership on the Board at any time.

	6.	 	Conditions to Issuance of Stock Certificates

(a) The Board may require each person purchasing or receiving shares of Common Stock pursuant
to an Award, as a condition to delivery of such shares, to represent to and agree with the Company
in writing that such person is acquiring the shares without a view to the distribution thereof and
to provide such other representations and such documents as the Board, in its absolute discretion,
deems necessary or appropriate to effect compliance with all applicable laws. Such shares may be
delivered in by book entry or in certificate form, with such legends or other notations as the
Board deems appropriate to reflect any restrictions on transfer.

(b) Notwithstanding any other provision of the Plan or any Agreement, the Company shall not be
required to issue or deliver any shares of Common Stock under the Plan prior to fulfillment of all
of the following conditions:

(i) Listing or approval for listing upon notice of issuance, of such shares on the New
York Stock Exchange, Inc., or such other securities exchange as may at the time be the
principal market for the Common Stock;

(ii) Any registration or other qualification of such shares under any state or federal
law or regulation, or the maintaining in effect of any such registration or other
qualification which the Board shall, in its absolute discretion upon the advice of counsel,
deem necessary or advisable;

(iii) Obtaining any other consent, approval, or permit from any state or federal
governmental agency, which the Board shall, in its absolute discretion after receiving the
advice of counsel, determine to be necessary or advisable;

(iv) The lapse of such reasonable period of time following the exercise of an Option
or the event that results in the delivery of such Shares, as the Board may establish from
time to time for reasons of administrative convenience; and

(v) The receipt by the Company of full payment (if any) for such shares and the
satisfaction of any tax withholding obligations relating thereto.

A Director shall not be, nor have any of the rights or privileges of, a stockholder of the
Company in respect of any shares of Common Stock that may become deliverable pursuant to the Plan
unless and until such shares have been delivered to the Director.

	7.	 	Transferability and Stockholder Rights of Holders of Awards

(a) Options granted under the Plan may be transferred to one or more Transferees (as defined
below) or to a Beneficiary (as defined below). Options may be exercised (i) during the Optionee’s
lifetime, only by the Optionee or a Transferee, and (ii) after the Optionee’s death, only by a
Transferee or a Beneficiary. “Transferee” shall mean “family members” as defined in the Securities
and Exchange Commission Release No. 33-7646 and 34-41109, who have acquired the Option through a
gift or a domestic relations order, and includes any child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person
sharing the employee’s household (other than a tenant or employee), a trust in which these persons
have more than fifty percent of the beneficial interest, a foundation in which these persons (or
the employee) control the management of assets, and any other entity in which these persons (or the
employee) own more than fifty percent of the voting interests.

(b) Other Awards granted under the Plan may not be transferred, except to a Beneficiary (as
defined below).

(c) Each Director shall be permitted to designate one or more Beneficiaries to receive his
Awards under the Plan upon his death, on such form and in accordance with such procedures as the
Board or Secretary may from time to time establish. If a Director dies at a time when he has no
Beneficiary designation in effect, his estate shall be his Beneficiary.

(d) References in the Plan to an Optionee or Director (other than such references that relate
to membership on the Board or termination thereof) shall be deemed to refer to a Transferee or
Beneficiary where appropriate.

	8.	 	Adjustments upon Changes in Common Stock

In the event of a stock dividend, stock split, reverse stock split, share combination,
recapitalization, merger, consolidation, acquisition of property or shares, separation, spinoff,
reorganization, stock rights offering, liquidation, sale of a subsidiary or similar event, the
Board or Committee shall make such adjustments (if any) as it deems appropriate and equitable, in
its discretion, to the following:

(a) the aggregate number of shares of Common Stock available under Paragraph 2;

(b) the number of shares subject to automatic Option grants under Paragraph 4;

(c) the number of shares of Common Stock covered by outstanding Awards;

(d) the option price of outstanding Options; and

(e) such other adjustments to outstanding Awards as the Board or Committee may determine to be
appropriate and equitable.

Such adjustments may include, without limitation, (i) the cancellation of outstanding Awards
in exchange for payments of cash, property or a combination thereof having an aggregate value equal
to the value of such Awards, as determined by the Committee in its sole discretion, and (ii) the
substitution of other property (including, without limitation, other securities) for the Stock
covered by outstanding Awards.

	9.	 	Change in Control

(a) Impact of Event. Notwithstanding any other provision of the Plan to the contrary, in the
event of a Change in Control, any Options outstanding as of the date such Change in Control is
determined to have occurred, and which are not then exercisable and vested, shall become fully
exercisable and vested, and shall remain exercisable until their expiration date notwithstanding
any termination of the Optionee’s membership on the Board.

(b) Definition of Change in Control. For purposes of the Plan, a “Change in Control” shall
mean “a change in the ownership or effective control,” or in “the ownership of a substantial
portion of the assets of” the Company within the meaning of Code Section 409A and shall include any
of the following events as such concepts are interpreted under Code Section 409A:

(i) the date on which a majority of members of the Company’s Board of Directors is
replaced during any twelve-month period by directors whose appointment or election is not
endorsed by a majority of the members of the Company’s Board of Directors before the date
of the appointment or election; or

(ii) the acquisition, by any one person, or by persons acting as a group, or by a
corporation owned by a group of persons that has entered into a merger, acquisition,
consolidation, purchase, stock acquisition, asset acquisition, or similar business
transaction with the Company, of:

	 	(a)	 	ownership of stock of the Company, that,
together with any stock previously held by such person or group,
constitutes more than fifty percent (50%) of either (i) the total
fair market value, or (ii) the total voting power of the stock of the
Company;

	 	(b)	 	ownership of stock of the Company
possessing thirty percent (30%) or more of the total voting power of
the Company, during the twelve-month period ending on the date of
such acquisition; or

	 	(c)	 	assets from the Company that have a total
gross fair market value equal to or more than forty percent (40%) of
the total gross fair market value of all of the assets of the Company
immediately before such acquisition, during the twelve-month period
ending on the date of such acquisition; provided, however, that any
transfer of assets to a related person as defined under Code Section
409A shall not constitute a Change of Control.

	10.	 	Amendment and Termination

Unless the Plan shall theretofore have been terminated as hereinafter provided, the Plan shall
terminate on, and no Awards shall be made after, January 31, 2010; provided, however, that such
termination shall have no effect on Awards granted prior thereto (and the provisions of the Plan
shall continue to apply thereto). The Board may amend, suspend or terminate the Plan at any time,
but no such amendment, suspension or termination shall impair the rights of Directors under Awards
previously granted without the Director’s consent. In addition, no such amendment shall be made
without the approval of the Company’s stockholders to the extent such approval is required by
applicable law or the rules of any exchange on which the Common Shares are then listed.
Notwithstanding the forgoing, the Company may unilaterally amend the Plan or any Award as necessary
to comply with the requirements of Code Section 409A.

	11.	 	Withholding

Upon the transfer of Common Stock as a result of the exercise of an Option or pursuant to
another Award, the Company shall have the right to retain or sell, without notice, sufficient
shares of stock (taken at their Fair Market Value, as defined in Paragraph 5(a) above, on the date
of exercise or transfer) to cover the amount of any tax required by any government to be withheld
or otherwise deducted and paid with respect to such payment, remitting any balance to the Director;
provided, however, that the Director shall have the right to provide the Company with the funds to
enable it to pay such tax.

	12.	 	Approval by Stockholders

The Plan was approved by the Company’s stockholders at the meeting of the stockholders held on
April 24, 2003. The Plan, as amended and restated herein, was approved by the Compensation and
Executive Personnel Committee of the Board and was ratified by the Board on December 4, 2008.

	13.	 	Titles; Gender

Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of the Plan. Whenever the masculine gender is used, it shall
include the feminine and neuter, and whenever a singular pronoun is used it shall include the
plural, unless the context clearly indicates otherwise.

	14.	 	Unfunded Status of Plan

It is presently intended that the Plan constitutes an “unfunded” plan for incentive and
deferred compensation. The Board may authorize the creation of trusts or other arrangements to
meet the obligations created under the Plan to deliver Common Stock or make payments; provided,
however, that unless the Committee otherwise determines, the existence of such trusts or other
arrangements is consistent with the “unfunded” status of the Plan.

	15.	 	Construction

This Plan and any Agreements hereunder shall be administered and interpreted under the laws of
the State of Delaware.

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